Q1 2027 Astral Ltd Earnings Call

August 12, 2026

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Operator 2: Ladies and gentlemen, good day, and welcome to Astral Limited Q1 FY27 Earnings Conference Call hosted by Equirus Securities. As a reminder, all participant lines will be in the listen only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing star then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Pranav Mehta from Equirus Securities. Thank you, and over to you, sir.

Operator: Ladies and gentlemen, good day, and welcome to Astral Limited Q1 FY2027 Earnings Conference Call hosted by Equirus Securities. As a reminder, all participant lines will be in the listen only mode, and there will be an opportunity for you to ask questions after the presentation concludes.

Speaker #2: Ladies and gentlemen, good day and welcome to Astral Limited Q1 FY27 earnings conference call, hosted by Aquarius Securities. As a reminder, all participant lines will be in listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes.

Speaker #2: Should you need assistance during this conference call, please signal an operator by pressing star, then zero, on your touch-tone phone. Please note that this conference is being recorded.

Operator: Should you need assistance during this conference call, please signal an operator by pressing star then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Pranav Mehta from Equirus Securities. Thank you, and over to you, sir.

Speaker #2: I now hand the conference over to Mr. Pranav Mehta from Aquarius Securities. Thank you, and over to you, sir.

Speaker #3: Yeah. Thank you, Pranav. Good evening, everyone. Thank you for joining this call. Today, from the management side, we have Mr. Sandeep Engineer, Chairman and Managing Director.

Pranav Mehta: Thank you, Palak. Good evening, everyone. Thank you for joining this call. Today from the management side, we have Mr. Sandeep Engineer, Chairman and Managing Director; Mr. Hiranand Savlani, ED and CFO; Mr. Kairav Engineer, Executive Director; and Mr. Saumya Engineer, CEO, Businesses and Piping Solutions. I will now hand over the call to Sandeep, sir, for his opening remarks. Over to you, sir.

Pranav Mehta: Thank you, Palak. Good evening, everyone. Thank you for joining this call. Today from the management side, we have Mr. Sandeep Engineer, Chairman and Managing Director; Mr. Hiranand Savlani, ED and CFO; Mr. Kairav Engineer, Executive Director; and Mr. Saumya Engineer, CEO, Adhesives and Paints Businesses. I will now hand over the call to Sandeep, sir, for his opening remarks. Over to you, sir.

Speaker #3: Mr. Hiranand Savlani, ED and CFO; Mr. Kairav Engineer, Executive Director; and Mr. Tommy Engineer, CEO. This is an— I'll now hand over the call to Sandeep sir for his opening remarks.

Speaker #3: Over to you, sir.

Speaker #4: Thank you. I welcome you all to the earnings call for Q1 FY27. As you all are aware, the polymer industry is passing through a volatile time.

Sandeep Engineer: Thank you. I welcome you all for the earning call Q1 FY27. As you all are aware, the polymer industry is passing through a volatile time. Prices are highly volatile and fluctuating. It was on the negative side in Q1. Due to that, the industry degrowth by approximately -10%. I am very happy to share that in spite of that, as usual, Astral is a company which always focuses on growth and at the same time on profitability. Which once again, we have demonstrated in this quarter with a flat volume growth against market reporting almost 10% negative. Also we have delivered a 10% value growth with an 18.9% EBITDA, which is one of the highest in the industry. This clearly suggests that Astral is continuously gaining market share from many years, and the journey is still continuing.

Sandeep Engineer: Thank you. I welcome you all for the earning call Q1 FY2027. As you all are aware, the polymer industry is passing through a volatile time. Prices are highly volatile and fluctuating. It was on the negative side in Q1. Due to that, the industry degrowth by approximately -10%. I am very happy to share that in spite of that, as usual, Astral is a company which always focuses on growth and at the same time on profitability.

Speaker #4: Prices are highly volatile and fluctuating. In any case, it was on the negative side in Q1. Due to that, the industry degrew by approximately negative 10%.

Speaker #4: But I'm very happy to share that, in spite of that, as usual, Astral is a company which always focuses on growth and, at the same time, on profitability.

Speaker #4: Once again, we have demonstrated this in the quarter with flat volume growth, while the market reported almost 10% negative. We also delivered 10% value growth with an 18.9% EBITDA, which is one of the highest in the industry.

Sandeep Engineer: Which once again, we have demonstrated in this quarter with a flat volume growth against market reporting almost 10% negative. Also we have delivered a 10% value growth with an 18.9% EBITDA, which is one of the highest in the industry. This clearly suggests that Astral is continuously gaining market share from many years, and the journey is still continuing.

Speaker #4: This clearly suggests that Astral is continuously gaining market share, for many years from many years, and the journey is still continuing. Now, let me take you through our all our verticals: plumbing, demand was overall weak in the industry, but because of decentralization of plants, our demand was very good, and we are taking market share in new geography, where we have started our new plants.

Sandeep Engineer: Now let me take you through all our verticals. Plumbing. Demand was overall weak in the industry, but because of decentralization of plants, our demand was very good, and we are taking market share in new geography where we have started our new plant. As you are aware, Astral has spent almost INR 1,500 in capex in last four to five years in all the verticals. Now it's the time to utilize the same and generate the cash flow from there. As communicated in the past, we have increased our product basket in last three to four years. This product basket is not only adding a good performance, but also is adding to a value performance. New product basket includes water tank, valves, fire sprinklers, O-PVC, PPTMC, low noise and other products. This has given Astral growth and healthy margins.

Speaker #4: As you are aware, Astral has spent almost ₹1,500 crores in CapEx over the last four to five years, across all verticals. Now it's time to utilize that investment and generate cash flow from it.

Speaker #4: As communicated in the past, we have increased our product basket over the years. And this product basket is not only adding good performance, but also is adding value performance.

Sandeep Engineer: As communicated in the past, we have increased our product basket in last three to four years. This product basket is not only adding a good performance, but also is adding to a value performance. New product basket includes water tank, valves, fire sprinklers, O-PVC, PPTMC, low noise and other products. This has given Astral growth and healthy margins.

Speaker #4: The new product basket includes water tanks, valves, fire sprinklers, OPVC, PTMT, low-noise pipes, and other products. This has given Astral growth and healthy margins.

Speaker #4: Our Kanpur and Hyderabad plants have geared up and are showing good growth in their respective geographies. Construction of our CPVC resin plant is ongoing.

Sandeep Engineer: Our Kanpur and Hyderabad plant have geared up and are giving good growth in their respective geographies. Our CPVC resin plant construction is going on as per the schedule, and we are expecting to complete it by December end. We will take the trial runs and finish the settlement and the product stabilization in Q4. Our state-of-art new valve production facility is up and fully running. We are also adding cast aluminum patch machines, which are under installation, and we are going to complete the same in mid-September. By end of September, all trials will be over and the commercial production of the same will be made. Bathware business is also slowly picking up, and more and more new projects and developers are getting added to the Astral brand. During the quarter, we have given a healthy growth in our bathware business by 18.1%. Our adhesive business.

Speaker #4: As per the schedule, we are expecting to complete it by the end of December. We will take the trial runs and finish the settlement and product stabilization in Q4.

Speaker #4: Our state of heart, new valve production facilities are and fully running. We are also adding PEX aluminum PEX machines, which are under installation, and we are going to complete the same in mid-September.

Sandeep Engineer: We are also adding cast aluminum patch machines, which are under installation, and we are going to complete the same in mid-September. By end of September, all trials will be over and the commercial production of the same will be made. Bathware business is also slowly picking up, and more and more new projects and developers are getting added to the Astral brand. During the quarter, we have given a healthy growth in our bathware business by 18.1%. Our adhesive business.

Speaker #4: And by the end of September, all trials will be over, and the commercial production of the same will begin. The bathware business is also slowly picking up, and more and more new projects and developers are getting added to the Astral brand.

Speaker #4: During the quarter, we have delivered healthy growth in our bathware business by 18.1%. Our adjacent business, this quarter, was once again an excellent quarter for the Adhesive India business.

Sandeep Engineer: The quarter was once again an excellent quarter for adhesive India business. We have delivered a robust growth of 24.9%. We are getting good response in rural and online business. At the same time, overseas business is also picking up well. I'm sure you must have seen that this vertical, which was continuously growing market share by entering into new geographies, new product introduction, and focus is on both rural and overseas market, as well as even the urban market. During the quarter, the margins were under pressure due to high cost of inventories and previous quarter inventories, which we had with previous quarters. But we are confident that by the year-end, not only we will achieve our targeted revenue, but also deliver the guided margins. The UK adhesive business.

Speaker #4: We have delivered robust growth of 24.9%. We are getting a good response in rural and online business. At the same time, overseas business is also picking up well.

Speaker #4: I'm sure you must have seen that this vertical, which was continuously growing market share by entering into new geographies and introducing new products, is focused on both rural and overseas markets, as well as even the urban market.

Speaker #4: During the quarter, margins were under pressure due to the high cost of inventories, including inventories carried over from the previous quarter. However, we are confident that by year end, we will not only achieve our targeted revenue but also deliver the guided margins.

Sandeep Engineer: During the quarter, the margins were under pressure due to high cost of inventories and previous quarter inventories, which we had with previous quarters. But we are confident that by the year-end, not only we will achieve our targeted revenue, but also deliver the guided margins. The UK adhesive business.

Speaker #4: The UK adhesive business, this business was passing through a tough time last year, but we took a quick bold decision, and we are happy to see a growth is the growth is coming back, and EBITDA margins are also showing signs of pickup and improvement.

Sandeep Engineer: This business was passing through a tough time last year, but we took a quick, bold decision, and we are happy to see that growth is coming back, and EBITDA margins are also showing signs of pickup and improvements. You can see the numbers that this quarter it has delivered a robust growth of 26% with an EBITDA of 4.9%. Paint business. First time after acquisition of Gem Paints, we are seeing a history high growth of 48.7% in this vertical. Not only that, we are at EBITDA breakeven point. We are at EBITDA breakeven. Paint business has delivered robust growth with all the six operating states and also new launches have given good response across the geography. DSS, the newly acquired specialty chemical company.

Speaker #4: You can see the numbers that this quarter, it has delivered a robust growth of 26%, with an EBITDA of 4.9%. The paint business, for the first time after acquisition of Jams, is seeing a historic high growth of 48.7% in this vertical, and not only that, we are at the EBITDA break-even point.

Sandeep Engineer: Paint business. First time after acquisition of Gem Paints, we are seeing a history high growth of 48.7% in this vertical. Not only that, we are at EBITDA breakeven point. We are at EBITDA breakeven. Paint business has delivered robust growth with all the six operating states and also new launches have given good response across the geography. DSS, the newly acquired specialty chemical company.

Speaker #4: We are at EBITDA break-even. The paint business has delivered robust growth across all six operating states, and our new launches have received a good response across the geography.

Speaker #4: DSS, the newly acquired specialty chemical company, we are happy to share that from the very first quarter, the newly acquired company not only is giving a quick start of revenue, but also an excellent EBITDA of 12.9%. We are expecting that to grow in the coming times, and the vertical will be delivering good value growth and excellent margins.

Sandeep Engineer: We are happy to share that from the very first quarter, the newly acquired company not only is giving quick start of revenue, but also an excellent EBITDA of 12.9%, and we are expecting that to grow in coming times, and the vertical will be delivering good value growth and excellent margin. With this, I am closing my initial remarks and let Mr. Hiranand Savlani take you through the finance performance of Q1.

Speaker #4: With this, I am closing my initial remarks, and let Mr. Hiranand Savlani take you through the financial performance of Q1.

Speaker #2: Good afternoon, everyone. Welcome all to our earnings call for Q1 FY27. Results are impressively in front of you; I just want to highlight the key numbers.

Hiranand Savlani: Good afternoon, everyone. Welcome all for our earning call for Q1 FY27. Result impressively are in front of you. I just want to highlight the key numbers. The vertical wide numbers are as under. Last year, Q1 plumbing business was INR 953 crore. Again, this year it is INR 1,050 crore, so registering a growth of 10.1%. Adhesive business India, last year it was INR 261 crore. This year it is INR 326 crore, so registering a growth of 24.8%. Adhesive business UK last year was INR 96 crore. This year it is INR 121 crore, registered a growth of 26%. Paint business, last year it was INR 50 crore. Now this year is INR 74.5 crore, registering a growth of 48.7%. DSS, already Sandeep has given the number. It is INR 6.7 crore with the EBITDA of INR 90 lakh.

Speaker #2: The vertical-wise numbers are as under: last year Q1, plumbing business was ₹953 crore. Again, this year it is ₹1,050 crore, so registering a growth of 10.1%.

Speaker #2: Adhesive business India last year, it was ₹261 crore. This year, it is ₹326 crore, registering a growth of 24.8%. Adhesive business UK last year was ₹96 crore.

Speaker #2: This year, it is ₹121 crore, registering a growth of 26%. The paint business last year was ₹50 crore; now, this year, it is ₹74.5 crore.

Speaker #2: Registering a growth of 48.7%. DSS, as Sandeep Bhai has already given the numbers, it is ₹6.7 crore, with an EBITDA of ₹90 lakh.

Speaker #2: So overall, if you see, the numbers are in line with what we had projected. And EBITDA percentage—I am giving you that as well. Q1 plumbing business last year, it was 16.4%.

Hiranand Savlani: Overall, if you see that the numbers are in line what we have projected, and EBITDA percentage also I am giving you. Q1 plumbing business last year it was 16.4%, now it is 18.9%. Adhesive business India, it was 14% last year, now it is 12.2%. Adhesive business UK, last year it was flat, 0.2%. Now it is 4.9%. Paint business, last year it was 1%, now it is 0.1%. So consolidated basis last year it was 14.3%, which is now 15.5%. So roughly about 1.2% kind of improvement into the EBITDA. As you all know, we are always believing in consistency in numbers and the profitable growth for the organization. I am very happy to share that this quarter also, we have delivered a very healthy 10.1% value growth in pipe and flat volume growth in pipe.

Speaker #2: Now, it is 18.9%. Adhesive business India was at 14% last year; now it is 12.2%. Adhesive business UK last year was flat at 0.2%.

Speaker #2: Now it is 4.9%. And the paint business last year was 1%; now it is 0.1%. So, consolidated wages last year were 14.3%, which is now 15.5%.

Speaker #2: So, roughly about a 1.2% improvement in EBITDA. As you all know, we always believe in consistency in numbers and in profitable growth for the organization.

Speaker #2: I'm very happy to share that this quarter also we have delivered a very healthy 10.1% value growth and flat volume growth.

Speaker #2: And again, the negative growth of industry by roughly 9% to 10%. In adhesive and paint also, we have registered a very robust consolidated growth of 29.5%.

Hiranand Savlani: Again, the negative growth of industry by roughly 9% to 10%. In adhesive and paint also, we have registered a very robust consolidated growth of 29.5%, in which adhesive was 25.2% and the paint was 48.7%. The overall Q1 value growth is 15.9%, and with the EBITDA margin of 15.5%. The key points to note here is that in the history, we have first time delivered a highest 48.7% growth in paint after acquisition of Gem Paints. As we guided in last call that we will be closing full year with 20% to 25% kind of growth, but with this kind of number in Q1, we are confident that we will be definitely crossing the guided mark number.

Speaker #2: In adhesive, it was 25.2%, and in paint it was 48.7%. The overall Q1 value growth is 15.9%, with an EBITDA margin of 15.5%. The key point to note here is that, in our history, for the first time we have delivered the highest 48.7% growth in paint after the acquisition of Jam.

Speaker #2: As we guided in last call, that we will be closing full year with 2025% kind of growth. But with these kind of number in Q1, we are confident that we will be definitely crossing the guided mark.

Speaker #2: Number. Further, you will be also notice that in all the vertical, whether it is a paint, whether it is a adhesive, or whether it is a plumbing, we are continuously gaining market share, which is always a good sign for any company.

Hiranand Savlani: Further, you will also notice that in all the vertical, whether it is a paint, whether it is adhesive, or whether it is a plumbing, we are continuously gaining market share, which is always a good sign for any company, and so it is for Astral. In pipe, one of the good things has come up for the industry, which is implementation of Minimum Import Price, which will make our life little easy because we are continuously seeing the volatility. Since last few years, a huge volatility in polymer price, particularly into the PVC. With this implementation of Minimum Import Price, this will reduce that sizably, and which is very good for the company as well as all of you to forecast the number. Demand scenario in pipe industry is very robust from July onward.

Speaker #2: And so it is for Astral. In Q1, one of the good things that has come up for the industry is the implementation of MIP.

Speaker #2: Which will make our life a little easy, because we are continuously seeing the volatility. Since the last few years, there has been huge volatility in polymer prices, particularly in PVC.

Speaker #2: Now, with this implementation of MIP, this will reduce the size sizably, which is very good for the company as well as all of you to forecast the numbers.

Speaker #2: Demand scenario in the pipe industry is very robust from July onward until yesterday. I can say, for four and a half months, we are into double-digit growth.

Hiranand Savlani: Till yesterday, I can say for 4 and a half months we are into the double-digit growth. You can understand the kind of extraordinary growth we have achieved in the month of July and the first 11 days of the current month. Which give us the confidence that what we have given the guidance of double-digit growth, so we will definitely going to achieve it on a full year basis. Since realizations are very high, which will give value growth of more than that is right now realization and the volume gap is 10%, and with this implementation of Minimum Import Price, we are of the view that the value gap will continue, and if that is the case, our value growth for the full year will be more than 20% in top line.

Speaker #2: So you can understand the kind of extraordinary growth we have achieved in the month of July and the first 12 days of the current month.

Speaker #2: Which give us the confidence that what we have given the guidance of double digit growth, so we will be definitely going to achieve on a full year basis.

Speaker #2: Since realizations are very high, which will give value growth of more than that. Right now, the realization and the volume gap is 10%.

Speaker #2: And with this implementation of MIP, we are of the view that the value gap will continue, and if that is the case, our value growth for the full year will be more than 20%.

Speaker #2: On the top line, as communicated by Sandeep Bhai, we are slowly coming back to our UK business growth path, as guided in the last phone call.

Hiranand Savlani: As communicated by Sandeep Engineer, we are slowly coming back to our UK business growth path as guided in the last earn call, which you can see in the number, and we are confident that by year-end, we will be coming to the normalcy what we have guided. We have guided the double-digit growth in top line. In the Q1 itself, we have delivered the 26% kind of growth, so we are confident that the UK will definitely going to surpass the double-digit mark. From Q3 onward, I think PEX-AL-PEX pipes, which Sandeep Engineer already discussed, is going to start contributing to the top line and the bottom line. This product is very well accepted in the Indian market, and it is a very high-value product and a high-margin product.

Hiranand Savlani: As communicated by Sandeep, we are slowly coming back to our UK business growth path as guided in the last earn call, which you can see in the number, and we are confident that by year-end, we will be coming to the normalcy what we have guided. We have guided the double-digit growth in top line. In the Q1 itself, we have delivered the 26% kind of growth, so we are confident that the UK will definitely going to surpass the double-digit mark. From Q3 onward, I think PEX-AL-PEX pipes, which Sandeep Engineer already discussed, is going to start contributing to the top line and the bottom line. This product is very well accepted in the Indian market, and it is a very high-value product and a high-margin product.

Speaker #2: Which you can see in the numbers, and we are confident that by year end, we will be coming to the normalcy that we have guided.

Speaker #2: We have guided the double digit growth in top line now in the first quarter itself, we have delivered the 26% kind of growth. So we are confident that the UK will definitely going to surpass the double digit mark.

Speaker #2: From Q3 onward, I think the aluminum tax, which Sandeep Bhai already discussed, is going to start contributing to the top line. And the bottom line, this product is very well accepted in the Indian market.

Speaker #2: And it is a very high-value product and a high-margin product. A few more products we are planning to launch in Q3, which we will communicate to you in our next earnings call.

Hiranand Savlani: Few more products we are planning to launch in Q3, which we will communicate to you in our next earning call, once they will be at the advanced stage of launch. Overall, industry environment is positive in all vertical, and we are confident that we will be delivering a healthy growth in the coming quarters also. With this, I want to thanks everyone and open the floor for the Q&A.

Speaker #2: One day, we will be at the advanced stage of launch. Overall, the industry environment is positive in all verticals, and we are confident that we will be delivering healthy growth in the coming quarters as well.

Speaker #2: With this, I want to thank everyone and open the floor for the Q&A.

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

Operator 2: Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may please press star and one on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, in order to ensure that management is able to address questions from all the participants in the conference call, please limit your question to three per participant. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Shravan Shah from Dolat Capital. Please proceed with your question.

Operator: Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may please press star and one on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, in order to ensure that management is able to address questions from all the participants in the conference call, please limit your question to three per participant. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Shravan Shah from Dolat Capital. Please proceed with your question.

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

Speaker #1: Ladies and gentlemen, in order to ensure that management is able to address questions from all participants on the conference call, please limit your questions to three per participant.

Speaker #1: Ladies and gentlemen, we'll wait for a moment while the question queue assembles. The first question is from the line of Shravan Shah from Daulat Capital.

Speaker #1: Please proceed with your question.

Shravan Shah: Hi, sir. First of all, congratulations on gaining the market share both in plumbing and adhesive. You have highlighted many things just to get more confidence on that front. Particularly on the guidance front. First, on the plumbing, we have mentioned that in four and a half months we have seen a double-digit growth. In Q1 when we have a flat growth, does that mean that only the April was where we have seen a significant, maybe a degrowth, and then the May and June must be a growth, and July, does that mean that we are seeing a kind of a 20% plus kind of a growth?

Speaker #2: Hi, sir. First of all, congratulations on gaining market share, sir, both in plumbing and adhesive. You have highlighted many, many things. Just to get more confidence on that front, particularly on the guidance front.

Speaker #2: So first on the plumbing, we have mentioned that in four and a half months, we have seen a double digit growth. So in Q1, when we have a flat growth, does that mean that the only the April was where we have seen a significant maybe a degrowth and then the May and June must be a growth and July does that mean that we are seeing a kind of a 20% plus kind of a growth?

Speaker #3: So your understanding is right, but I can make a small correction. The April numbers were not good for the entire industry, and particularly for Astral, because we implemented our new SAP HANA.

Hiranand Savlani: Your understanding is right, but little I can do the correction. The April number was not good for the entire industry, and particularly for Astral, because we implemented our new SAP HANA. Our business operation was practically shut for the dispatch for 10 days. Definitely, April was not good. But then May onward, we started growing very fast. In the month of July, we have registered a growth of 40% in volume, not 20%. Because of that, we are on a four and a half month basis, we are into the double digit.

Speaker #3: So our business operation was not practically stuck for the dispatch for 10 days. So definitely April was not good, but then May onward we started growing very fast.

Speaker #3: And in the month of July, we have registered a growth of 40% in volume, not 20%. So because of that, we are on a four, four and a half month basis, we are into the double digit.

Speaker #2: Okay. So then does this growth is just because the in Q1, because of whatever the volatility was there and now in last since the mid of the July 12, 13 rupees PVC prices have gone up and which is supporting.

Shravan Shah: Okay. Then does this growth is just because in Q1, because of whatever the volatility was there, and now since the mid of the July, INR 12, INR 13 PVC prices have gone up, and which is supporting so this quarter and maybe then the full year, can we see a mid 15% kind of a growth that is more likely kind achievable? At the same time, in terms of the margin, because we in plumbing are achieved to guide 16% to 18%, but this quarter also 18.9%. So what is the possibility that we should be doing a more than or maybe close to a 19% kind of a margin, given that now PVC prices are kind of up, and plus MIP would be supporting. I am trying to understand the upside risk.

Speaker #2: So this quarter and maybe then the full year, can we can we see a mid kind of a 15% kind of a growth that is a more likely kind of achievable?

Speaker #2: And at the same time, in terms of the margin, because we in plumbing to guide 16 to 18%, but this quarter also 18.9%. So what's the possibility that we should be doing a more than a or maybe a close to a 19% kind of a margin given that the now PVC prices are kind of up and plus MIP would be supporting.

Speaker #2: Though I'm trying to understand the upside risk.

Speaker #3: So, I think the way July and August have picked up, it looks like the demand has come up very sharply from the markets. One of the reasons was that dealers and distributors were destocked because prices were going down.

Hiranand Savlani: I think the way July and August has picked up, it looks that the demand has come up very sharply from the market. One of the reason was that dealers and distributor were de-stocked because prices were going down. Because of that, nobody was in a mood to keep the inventory. But now everyone is rushing to fill up the inventory. Secondly, because of MIP, now the dealer and distributor also have a confidence that from this price, polymer price is not going to go down at least. So downside is protected. So they are getting confidence, and they are filling their stock also.

Speaker #3: So, because of that, nobody was in the mood to keep inventory. But now, everyone is rushing to fill up the inventory. Secondly, because of MIP, now the dealer and distributor also have the confidence that from this price, polymer price is not going to go down, at least.

Speaker #3: So downside is protected. So they are getting confidence and they are filling their stock also. So that is giving us the confidence that the scenario will improve.

Hiranand Savlani: That's giving us the confidence that the scenario will improve. Thirdly, normally, whenever there is a Q1, it's so weak, a flat kind of number, then naturally the Q2 should be better. Last year, if you see, the pattern was similar, that Q1 was weak and then the Q2 we delivered close to about 20% kind of growth, volume growth. So similar pattern is getting repeated. I don't want to jump in at this stage and tell you that full year basis, we are going to deliver 15%, 20% volume or something. Let us wait for some more time. Let us finish the Q2 number, and then I think we will be hosting a call somewhere maybe in the month of November or so. By that time, we'll be having more clarity, so we will be in a position to upgrade our guidance.

Speaker #3: Thirdly, normally, whenever there is a first quarter—if it's a weak plate kind of number—then naturally, the second quarter should be better. Last year, if you see, the pattern was similar.

Speaker #3: That first quarter was weak, and then in the second quarter, we delivered close to about 20% kind of volume growth. So, a similar pattern is getting repeated.

Speaker #3: So, I don't want to jump in at this stage and tell you that for full-year wages we are going to deliver 15–20% volume or something.

Speaker #3: Let us wait for some more time. Let us finish the Q2 numbers, and then I think we will be hosting the call somewhere, maybe in the month of November or so.

Speaker #3: So, by the time we'll be having more clarity, we will be in a position to upgrade our guidance. But at this stage, we don't want to unnecessarily jump.

Hiranand Savlani: But at this stage, we don't want to unnecessarily jump. As far as your second question was relating to the margin, I think margins are pretty stable, and because of polymer volatility, 1% or 2% kind of plus minus will keep happening. So we will be definitely going to be in the range of 16% to 18%. If the market condition will be better like what is right now, because now polymer prices are going up. If this kind of scenario continue for a longer period, then there are probability that we may increase the margin. But right now, our guidance will remain to 16% to 18%. We will change our guidance, if needed, post Q2.

Speaker #3: As far as your second question relating to the margin, I think margins are pretty stable, and because of polymer volatility, a one or two percent plus or minus will keep happening.

Speaker #3: So we will definitely be in the range of 16 to 18. And if the market condition is better than what it is right now, because now polymer prices are going up, then if this kind of scenario continues for a longer period, then there is a probability that we may increase the margin.

Speaker #3: But right now, our guidance will remain at 16% to 18%. We will change our guidance if needed post-Q2.

Shravan Shah: Similarly, on the adhesive also, the significant growth, India 25% kind of a growth, and UK also 26%. Both we were having a kind of a 15%, 20% guidance for India and more than 10%. Are we revising right now or still there also the similar guidance and maybe post Q2 we will upgrade the guidance?

Speaker #2: And similarly on the adhesive also the significant growth India 25% kind of a growth and UK also 26. And both we were having a kind of a 15, 20% guidance for India and more than 10%.

Speaker #2: So, is there—are we revising right now or still there? Also, is the similar guidance, and maybe post-Q2 we will upgrade the guidance?

Hiranand Savlani: The chances are bright to revise upward, but at this stage, we do not want to do that thing because still we want to wait for some time, because we do not want to unnecessarily misguide the street based on the one quarter number or maybe four months number. Better we wait for the completion of Q2, and post that, if required, we will definitely change our guidance.

Speaker #3: So, the chances are bright to revise upward, but at this stage, we don't want to do that because we still want to wait for some time.

Speaker #3: Because we don't want to unnecessarily misguide the street based on the one-quarter number, or maybe four-month number. So, better we wait for the completion of Q2, and post that, if required, we will definitely change our guidance.

Shravan Shah: The India margin will be there. Obviously, this quarter was lower, 12.2%, but it will come back to 15%, 17% what we are.

Speaker #2: And the India margin will be there. Obviously, this quarter was lower at 12.2%, but it will come back to 15-17%. We are, we are, yes.

Shravan Shah: The India margin will be there. Obviously, this quarter was lower, 12.2%, but it will come back to 15%, 17% what we are.

Hiranand Savlani: Yeah. Absolutely. Yes. I think we already disclosed also in the press release also, that it will be back.

Speaker #3: Yes, yes. I think we have already disclosed this in the press release also, that it will be back.

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

Shravan Shah: Okay. Thank you, sir, and all the best.

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

Hiranand Savlani: Thank you, Soumya.

Hiranand Savlani: Thank you, Shravan.

Operator 2: Thank you, sir. Ladies and gentlemen, to ask a question, please press star and one now. Participants who wish to ask questions may please press star and one at this time. The next question is from the line of Praveen from PL Capital. Please proceed with your question.

Operator: Thank you, sir. Ladies and gentlemen, to ask a question, please press star and one now. Participants who wish to ask questions may please press star and one at this time. The next question is from the line of Praveen from PL Capital. Please proceed with your question.

Speaker #1: Thank you. Thank you, sir. Ladies and gentlemen, to ask a question, please press star one now. Participants who wish to ask questions may please press star one at this time.

Speaker #1: The next question is from the line of Praveen from PL Capital. Please proceed with your question.

[Analyst] (PL Capital): Thank you for the opportunity, and many congratulations for a good set of numbers. My first question is related to domestic Adhesive business. As you had already highlighted that the price hike has been implemented. How much has been absorbed in the market, and is there any further commodity inflation there to take a further price hike?

Praveen Sahay: Thank you for the opportunity, and many congratulations for a good set of numbers. My first question is related to domestic Adhesive business. As you had already highlighted that the price hike has been implemented. How much has been absorbed in the market, and is there any further commodity inflation there to take a further price hike?

Speaker #2: Thank you for the opportunity, and many congratulations on a good set of numbers. My first question is related to the domestic adhesive business. As you had already highlighted, the price hikes have been implemented, so how much has been absorbed in the market, and is there any further commodity inflation that would require a further price hike?

Kairav Engineer: Well, I think, Soumya here. I think overall the RM prices were upward of overall, I would say more than 15% to 16% rise was there. Exact figure, I will have to check. I can give you that. We did a price increase of half of that, around 6% to 7% to 8% price hike we had done across our boards, average. I think few things we had to absorb as a raw material expense, as a higher price, we had to absorb in Q1. I think with the RMs softening and overall cost coming down in Q2, there will be definitely a positive impact going forward for the Adhesive India business.

Saumya Engineer: Well, I think, Saumya here. I think overall the RM prices were upward of overall, I would say more than 15% to 16% rise was there. Exact figure, I will have to check. I can give you that. We did a price increase of half of that, around 6% to 7% to 8% price hike we had done across our boards, average. I think few things we had to absorb as a raw material expense, as a higher price, we had to absorb in Q1. I think with the RMs softening and overall cost coming down in Q2, there will be definitely a positive impact going forward for the Adhesive India business.

Speaker #3: So I think Saumya here. So I think overall the RM prices were upward of overall I would say more than 15, 16% rise was there exact figure I'll have to say.

Speaker #3: But I can give you that, you know, we did a price increase of half of that, so around 6 to 8 percent price hike we had done across our boards, on average.

Speaker #3: So I think a few things we had to observe were raw material expenses at a higher price. So we had to absorb that in Q1, but I think with the RM softening and overall cost coming down in Q2, I think there will definitely be a positive impact going forward for the Adhesive India business.

[Analyst] (PL Capital): Okay. Secondly, on the adhesive, only the international, out of your 26% of the growth, how much is the currency led?

Praveen Sahay: Okay. Secondly, on the adhesive, only the international, out of your 26% of the growth, how much is the currency led?

Speaker #2: Okay. Secondly, on the adhesive, only the international—out of your 26% of growth, how much is currency-led?

Speaker #3: I think close to about 8% to 10% is related to currency; the rest is on a constant currency basis.

Kairav Engineer: I think close to about 8% to 10% related to currency. Rest is on the constant currency.

Saumya Engineer: I think close to about 8% to 10% related to currency. Rest is on the constant currency.

Speaker #2: Okay. And in the adhesive DSS, the number is consolidated at $67 million.

[Analyst] (PL Capital): Okay. In the adhesive, DSS number is consolidated, INR 67 million.

Praveen Sahay: Okay. In the adhesive, DSS number is consolidated, INR 67 million.

Kairav Engineer: That is consolidated in paint, because it is a subsidiary of the paint business.

Saumya Engineer: That is consolidated in paint, because it is a subsidiary of the paint business.

Speaker #3: If that is consolidated in Paint, because it is a subsidiary of the Paint business.

[Analyst] (PL Capital): Got it, sir. Lastly, on the pipe and fitting, because you in the starting commentary, also mentioned about the Kanpur and Hyderabad, which is ramping up very good for you. So at what level of a utilization these two plants are running at, and because you have taken some capacity expansion in this quarter as well, some around 3,000 odd. So how has been the capacity for this, and at what level of utilization these are running at?

Praveen Sahay: Got it, sir. Lastly, on the pipe and fitting, because you in the starting commentary, also mentioned about the Kanpur and Hyderabad, which is ramping up very good for you. So at what level of a utilization these two plants are running at, and because you have taken some capacity expansion in this quarter as well, some around 3,000 odd. So how has been the capacity for this, and at what level of utilization these are running at?

Speaker #2: Got it. Got it. Lastly, on the pipe and cutting, because you—in the starting commentary—also mentioned about Kanpur and Hyderabad, which are ramping up very well for you.

Speaker #2: So, at what level of utilization are these two plants running at, and what are the—you know, because you have taken some capacity expansion in this quarter as well, some around 3,000-odd.

Speaker #2: So, how has the capacity been for this, and at what level of utilization are these?

Kairav Engineer: Kanpur has gotten a very good response in the local market. So the Kanpur plant is majority sold out. So very high utilization. But again, the Kanpur capacity is very small. We are planning to expand the Kanpur facility in the coming year to take care of the growing demand. Hyderabad, I think, will be operating at around the utilization of around 50%. But there also, we are slowly and gradually getting a foothold in that local domestic market. So we have enough land and space there to expand also, but the capacity is obviously higher than Kanpur, so that is why utilization point of view, you are seeing a slightly lower number.

Saumya Engineer: Kanpur has gotten a very good response in the local market. So the Kanpur plant is majority sold out. So very high utilization. But again, the Kanpur capacity is very small. We are planning to expand the Kanpur facility in the coming year to take care of the growing demand. Hyderabad, I think, will be operating at around the utilization of around 50%. But there also, we are slowly and gradually getting a foothold in that local domestic market. So we have enough land and space there to expand also, but the capacity is obviously higher than Kanpur, so that is why utilization point of view, you are seeing a slightly lower number.

Speaker #3: Kanpur has gotten a very good response in the local market. So the Kanpur plant is majorly sold out, and there is very high utilization.

Speaker #3: But again, the Kanpur capacity is very small. We are planning to expand the Kanpur facility in the coming year to take care of the growing demand.

Speaker #3: And Hyderabad, I think, will be operating at around 50% utilization. But there also, you know, we are slowly and gradually getting a foothold in that local domestic market.

Speaker #3: So, we have enough land and space there to expand also. But the capacity is obviously higher than Kanpur. So that is why, from a utilization point of view, you are seeing a slightly lower number.

Speaker #3: And capacity addition, whatever we have done, is basically we have just done some debottlenecking at the existing facilities, added some molds and some fitting machines, and PEX machine, and some other new product lines that we are developing.

Kairav Engineer: Capacity addition, whatever we have done is basically we have just done some debottlenecking at the existing facilities, added some molds and some fitting machines and PEX-AL-PEX machine and some other new product lines that we are developing. So substantially, no new facility work has happened.

Saumya Engineer: Capacity addition, whatever we have done is basically we have just done some debottlenecking at the existing facilities, added some molds and some fitting machines and PEX-AL-PEX machine and some other new product lines that we are developing. So substantially, no new facility work has happened.

Speaker #3: So, substantially, no new facility work has happened.

[Analyst] (PL Capital): Okay. Good to hear that. Last questions are related to the paint, because that is 48% of the growth. Can you give more color on how has been the volume growth or the geographical expansion which led the growth for you? If more color on that will help.

Praveen Sahay: Okay. Good to hear that. Last questions are related to the paint, because that is 48% of the growth. Can you give more color on how has been the volume growth or the geographical expansion which led the growth for you? If more color on that will help.

Speaker #2: Okay. Okay. Good to hear that. Last question, sir, related to the paint, because that's a 48% growth. Can you give more color on how the volume growth has been, or the geographical expansion that led to the growth for you? If you could provide more color on that, it will help.

Kairav Engineer: As our last guidance, we are not expanding into more states. The South states we will finish. We have finished three states in South. We have two more states in South, which we will finish when the time is right and when we feel it is right. In the West, we have opened the Gujarat, Rajasthan, and Maharashtra markets, three states. Now we are taking very conscious call in terms of understanding that how our bottom line is also going with our top line, and accordingly, we will invest more in states and more in manpower. But now it is getting this state stable and growing within this state. We are consolidating in this state, so that is a very positive sign that we are seeing around 48% growth from this existing states where we have opened.

Speaker #3: So, as per our last guidance, we are not expanding into more states. For the south states, we will finish. We have finished three states in the south.

Hiranand Savlani: As our last guidance, we are not expanding into more states. The South states we will finish. We have finished three states in South. We have two more states in South, which we will finish when the time is right and when we feel it is right. In the West, we have opened the Gujarat, Rajasthan, and Maharashtra markets, three states. Now we are taking very conscious call in terms of understanding that how our bottom line is also going with our top line, and accordingly, we will invest more in states and more in manpower. But now it is getting this state stable and growing within this state. We are consolidating in this state, so that is a very positive sign that we are seeing around 48% growth from this existing states where we have opened.

Speaker #3: We have two more states in the South which we will finish when the time is right, and when we feel it’s right. In the West, we have opened the Gujarat, Rajasthan, and Maharashtra markets—three states.

Speaker #3: So now we are taking a very conscious call in terms of understanding how our bottom line is also going along with our top line, and accordingly, we will invest more in states and more in manpower.

Speaker #3: But now it is getting these states stable and growing within these states. So we are consolidating in these states. That is a very positive sign, as we are seeing around 48% growth from these existing states where we have opened.

Speaker #3: So the acceptability is good, and the volume growth I think would be around 35 to 40%, I could put it. The rest, I think, would be the value growth due to the increase in the pricing of the products which we have taken.

Kairav Engineer: The acceptability is good, and the volume growth, I think, would be around 35% to 40%, I could put it. Rest would be, I think, the value growth due to the increase of the pricing of the products which we have taken.

Hiranand Savlani: The acceptability is good, and the volume growth, I think, would be around 35% to 40%, I could put it. Rest would be, I think, the value growth due to the increase of the pricing of the products which we have taken.

Speaker #2: Thank you so much, and all the best for the future. Thank you.

[Analyst] (PL Capital): Thank you so much, and all the best for future.

Praveen Sahay: Thank you so much, and all the best for future.

Kairav Engineer: Thank you.

Hiranand Savlani: Thank you.

Operator 2: Thank you. Thank you, sir. Ladies and gentlemen, to ask a question, please press star and one now. Participants who wish to ask questions, please press star and one at this time. The next question is on the line of Tejas Pradhan from Citigroup. Please proceed with your question.

Operator: Thank you. Thank you, sir. Ladies and gentlemen, to ask a question, please press star and one now. Participants who wish to ask questions, please press star and one at this time. The next question is on the line of Tejas Pradhan from Citigroup. Please proceed with your question.

Speaker #1: Thank you, sir. Ladies and gentlemen, to ask a question, please press star and one now. Participants who wish to ask questions may please press star and one at this time.

Speaker #1: The next question is from the line of Tejas Pradhan from Citi Group. Please proceed with your question.

Tejas Pradhan: Yeah. Hi, sir. In terms of volumes in the plumbing business, obviously you have done much better compared to the other players, right? Just to get some additional color on this thing, how much of this was a function of product mix or geo mix, and how much have you been probably more aggressive on pricing versus competition? Considering in April also you have the 10 days you mentioned you had lost because of the transaction at front, right? Despite that, the very strong performance on volumes.

Speaker #2: Yeah. Hi, sir. In terms of volumes in the plumbing business, obviously we have done much better compared to the other players, right? So just to get some additional color on this, how much of this was a function of product mix or geo mix, and how much has been from you probably being more aggressive on pricing versus competition?

Speaker #2: I mean, considering in April also you had 10 days you mentioned you had lost because of the transition as well, right? So despite that, there was a very strong performance on volumes.

Speaker #3: I think the product mix did not change much, because we are a more focused company on the plumbing side of the business. So, I don't think the product mix has changed.

Kairav Engineer: I think product mix has not changed much because we are more focused company on the plumbing side of the business. I do not think product mix has changed, and that is why you see that the margins are also pretty stable. Normally within the 16% to 18% we deliver, this time little more. So product side, I do not think any big change is there.

Hiranand Savlani: I think product mix has not changed much because we are more focused company on the plumbing side of the business. I do not think product mix has changed, and that is why you see that the margins are also pretty stable. Normally within the 16% to 18% we deliver, this time little more. So product side, I do not think any big change is there.

Speaker #3: And that is why you see that the margins are also pretty stable—normally within the 16 to 18 percent; we delivered this time a little more.

Speaker #3: So, on the product side, I don't see any big changes there.

Speaker #2: Right. By final pricing, I mean was there any more aggression in the quarter to achieve the volumes, or was there no change versus the historical?

Tejas Pradhan: Right. And on pricing, was there any probably more aggression in the quarter to achieve the volumes or no change versus the historical data?

Kairav Engineer: No. Actually, we are very blessed that we are getting a good set of distributors from the competitors who are willing to join us. A lot of network expansion has happened. So without sacrificing on the margin, we are able to deliver these numbers.

Hiranand Savlani: No. Actually, we are very blessed that we are getting a good set of distributors from the competitors who are willing to join us. A lot of network expansion has happened. So without sacrificing on the margin, we are able to deliver these numbers.

Speaker #3: No. Actually actually we are we are we are very blessed that we are taking the getting a good set of distributors from the competitors who are willing to join us.

Speaker #3: And so, a lot of network expansion has happened. So, without sacrificing on the margin, we are able to deliver these numbers.

Tejas Pradhan: Understood. Secondly, in the adhesives segment, in past quarter, you had some one-off branding expense. There is nothing of that sort in this quarter?

Speaker #2: Understood, understood. Thanks. And secondly, in the aggressive segment, last quarter you had some one-off branding expense. There is nothing of that sort in this quarter, right?

Speaker #3: No, not much in this part. Maybe routine branding costs will be there, definitely, but not one-of-a-kind.

Kairav Engineer: No, not much this quarter. Maybe routine branding cost will be there definitely, but not one-off kind of.

Hiranand Savlani: No, not much this quarter. Maybe routine branding cost will be there definitely, but not one-off kind of.

Tejas Pradhan: No one-off. Okay. Understood. Lastly, on the paints asset, roughly what would be your capacity utilization right now?

Speaker #2: No, none of. Okay, understood. And lastly, on the paint assets, roughly what would be your capacity utilization right now?

Kairav Engineer: Paint, we will be somewhere around 60% kind of utilization, 60% to 65%. Decorative might be

Hiranand Savlani: Paint, we will be somewhere around 60% kind of utilization, 60% to 65%. Decorative might be

Speaker #3: Paint, we will be somewhere around 60 percent kind of utilization, 60 to 65. Deco might be conscious.

Tejas Pradhan: After the growth that you have seen in the quarter time?

Speaker #2: After the volume, after the growth that you have seen in the quarter, right?

Kairav Engineer: Yeah. 30%, 35% kind of growth.

Hiranand Savlani: Yeah. 30%, 35% kind of growth.

Speaker #3: Yeah, yeah. Thirty to thirty-five percent kind of growth.

Tejas Pradhan: Okay. Understood. That's all.

Speaker #2: Okay. Understood. That's all.

Speaker #1: Thank you, sir. The next question is from the line of Indrajit Agarwal from CNSA. Please proceed with your question.

Operator 2: Thank you, sir. The next question is from the line of Indrajit Agrawal from CLSA. Please proceed with your question.

Operator: Thank you, sir. The next question is from the line of Indrajit Agrawal from CLSA. Please proceed with your question.

Indrajit Agrawal: Hi. Thank you for the chance. My first question is on ground end user demand. While we have seen a strong uptick in the months of, let us say, June and July, how much of it do you think is driven mostly by restocking, and how is the end use demand and which segments are actually contributing to this demand growth?

Speaker #4: Hi. Thank you for the chance. My first question is on ground end-user demand. While we have seen a strong uptick in the months of, let's say, June and July, how much of it do you think is driven mostly by restocking? And how is the end-use demand, and which segments are actually contributing to this demand growth?

Kairav Engineer: End use demand is robust. That is why you see that in the paint business, adhesive business, pipe business, bathware business, all business we have delivered robust numbers this quarter. Q2 also, this demand is continuing. So end user level demand, I do not see there is any sort of a major problem.

Hiranand Savlani: End use demand is robust. That is why you see that in the paint business, adhesive business, pipe business, bathware business, all business we have delivered robust numbers this quarter. Q2 also, this demand is continuing. So end user level demand, I do not see there is any sort of a major problem.

Speaker #3: End-use demand is robust. That is why you see that in the paint business, the adhesive business, the pipe business, the marker business—all businesses—we have delivered robust numbers this quarter.

Speaker #3: And Q2 also, this demand is continuing. So, at the end-user level, I don't see there being any sort of a major problem.

Speaker #4: So is it both from rural or urban, or is there anything to call out—that urban is growing stronger than rural, and that is why, probably, you have outperformed the industry?

Indrajit Agrawal: Is it both from rural or urban or anything to call out that urban is growing stronger than rural and that is why probably you have outperformed the industry?

Speaker #3: No. No. Across across the board only in the piping side the agri demand was bit muted. Otherwise overall all products are doing very well.

Kairav Engineer: No. Across the board. Only in the Piping Solutions side, the agri demand was bit muted. Otherwise, overall, all products are doing very well.

Hiranand Savlani: No. Across the board. Only in the Piping Solutions side, the agri demand was bit muted. Otherwise, overall, all products are doing very well.

Indrajit Agrawal: Sure. Lastly, any change in inventory number that has contributed to the margin in this quarter, whether inventory gain or loss?

Speaker #4: Sure. Lastly any change in inventory number that has contributed to the margin in this quarter whether inventory gain or loss?

Speaker #3: Not really.

Kairav Engineer: Not really.

Hiranand Savlani: Not really.

Speaker #4: All right. Thank you. That's all from my side.

Indrajit Agrawal: All right. Thank you. That is all from my side.

Speaker #3: Thank you.

Kairav Engineer: Thank you.

Hiranand Savlani: Thank you.

Speaker #1: Thank you, sir. Ladies and gentlemen, to ask a question, please press star and one now. Participants who wish to ask questions may please press star and one at this time.

Operator 2: Thank you, sir. Ladies and gentlemen, to ask a question, please press star and one now. Participants who wish to ask questions may please press star and one at this time. The next question is from the line of Sneha from Nuvama. Please proceed with your question.

Operator: Thank you, sir. Ladies and gentlemen, to ask a question, please press star and one now. Participants who wish to ask questions may please press star and one at this time. The next question is from the line of Sneha from Nuvama. Please proceed with your question.

Speaker #1: The next question is from the line of Sneha, from Nuvama. Please proceed with your question.

[Analyst] (Nuvama): Hi, good evening team, and congratulations on super strong numbers. Just a couple of questions from my end. While you already said there is no energy gain element, while the product mix largely remains same, what would have led to the margin improvement? Because if I look at it from year-over-year perspective, probably from last two to three years, if I look at current margins, they are at the most higher level, especially in Q1 attaining a 19% sort of margin. So what would have led to that? That is the first one.

Sneha Talreja: Hi, good evening team, and congratulations on super strong numbers. Just a couple of questions from my end. While you already said there is no energy gain element, while the product mix largely remains same, what would have led to the margin improvement? Because if I look at it from year-over-year perspective, probably from last two to three years, if I look at current margins, they are at the most higher level, especially in Q1 attaining a 19% sort of margin. So what would have led to that? That is the first one.

Speaker #2: Hi. Good evening. Team and congratulations on super strong numbers. Just a couple of questions my end. While you already said there is no inventory gain element while the product mix is not you know largely remains same.

Speaker #2: What would have led to the margin improvement? Because if I look at it from a bio perspective, probably from the last two to three years, if I look at current margins, they are at the highest levels.

Speaker #2: Especially in Q1 attaining like a 19 percent sort of margins. What would have led to that? That's the first one.

Hiranand Savlani: Well, mainly, if you see, Sneha, all our new plants, our O rates were very high because utilizations were very poor. Now with this kind of growth, what Kairav stated about both the new plant, that has supported us to improve our margin, mainly because of economy of scale of that particular two plants. Because all laboratory related cost, operator related cost, plant head related cost, all your fixed labor cost, all are going to be there whether you produce or not. So with this extra production, that has supported us to improve our margin.

Speaker #3: So mainly, if you see, Sneha, all our new plants—our overheads were very high because utilizations were very poor. Now, with this kind of growth, what you said about both the new plants has supported us to improve our margin.

Speaker #3: Mainly because of economy of scale of that particular two plants. Because all laboratory related cost operator related cost plant head related cost all your fixed labor cost all are going to be there whether you produce or not.

Speaker #3: So with this extra production that has supported us to improve our margin.

[Analyst] (Nuvama): Sir, but our volumes are actually flat year-over-year, right? I would have got the operating leverage part of it, but with volume being flat year-over-year, how does it work out? Or is it any plans for-

Sneha Talreja: Sir, but our volumes are actually flat year-over-year, right? I would have got the operating leverage part of it, but with volume being flat year-over-year, how does it work out? Or is it any plans for-

Speaker #2: Okay. But are volumes are actually flat bio right? That's that's the I mean I would have got the operating leverage part of it. But with volumes being flat bio how does it work out?

Speaker #2: Or is it any plants?

Speaker #3: No, basically I would like to add that in the first quarter, the agri demand was muted, so lesser sale of the agri product happened.

Hiranand Savlani: Basically, I would like to add that in the first quarter, the agri demand was muted, so lesser sale of the agri product happened. But rest of the products, which are plumbing products for us and value-added product for us, the sale was good. When you sell less of the agri type products, automatically the margin profile will improve because agri is having a much lower margin than the plumbing product.

Speaker #3: But rest of the products which are plumbing products for us and value added product for us the sale was good. So when you sell less of the agri type products automatically the margin profile will improve because agri is having a much lower margin than the plumbing product.

[Analyst] (Nuvama): Understood. That's precisely the product improvement change that we're talking about. What would have been the growth of CPVC this particular quarter and this entire PVC-

Sneha Talreja: Understood. That's precisely the product improvement change that we're talking about. What would have been the growth of CPVC this particular quarter and this entire PVC-

Speaker #2: Understood. So that's precisely the product improvement change that we are talking about. And what would have been the growth of CPVC this particular quarter in this entire PVC?

Hiranand Savlani: It's in the high single digit type.

Speaker #3: It's in a double it's in the it's in high single digit type.

[Analyst] (Nuvama): During the quarter?

Sneha Talreja: During the quarter?

Speaker #2: During the quarter.

Speaker #3: Yeah.

Hiranand Savlani: Yeah.

[Analyst] (Nuvama): That is helpful. Secondly, Bathware revenues, just a bookkeeping one, for this particular quarter.

Sneha Talreja: That is helpful. Secondly, Bathware revenues, just a bookkeeping one, for this particular quarter.

Speaker #2: That's helpful. Secondly, bathware revenues are just a bookkeeping one for this particular quarter.

Hiranand Savlani: Bathware, I think last year it was INR 24 crore. This year it is INR 28.7 crore.

Speaker #3: Bathware, I think last year it was ₹24 crore. This year, it is ₹28.7 crore.

Speaker #2: Understood, sir. Thank you. Thank you very much, sir. I'll get back to you. All the best, team.

[Analyst] (Nuvama): Understood, sir. Thanks a lot, sir. I will get back in queue.

Sneha Talreja: Understood, sir. Thanks a lot, sir. I will get back in queue.

Hiranand Savlani: Thank you.

[Analyst] (Nuvama): All the best, team.

Sneha Talreja: All the best, team.

Operator 2: Thank you, ma'am. The next question is from the line of Anup Parakh from Anand Rathi. Please proceed with your question.

Operator: Thank you, ma'am. The next question is from the line of Anu Parakh from Anand Rathi. Please proceed with your question.

Speaker #1: Thank you ma'am. The next question is from the line of Anup Parak from Anand Rathi. Please proceed with your question.

Anup Parakh: Yeah. Hi, sir. Just one question from my end. What was the CapEx amount spent in Q1 FY27, and what are we budgeting for FY27?

Anu Parakh: Yeah. Hi, sir. Just one question from my end. What was the CapEx amount spent in Q1 FY27, and what are we budgeting for FY27?

Speaker #2: Yeah. Hi sir. Just one question from my end. What was the KPS amount spent in Q1 FY27 and what are we budgeting for FY27?

Hiranand Savlani: I think this quarter we have spent INR 137 crore in CapEx in all the vertical put together.

Speaker #3: I think this quarter we have spent 137 crore rupees in KPS in all the vertical put together. Because even the CPVC plant work is in full scale.

Hiranand Savlani: I think this quarter we have spent INR 137 crore in CapEx in all the vertical put together.

Sandeep Engineer: Because even the CPVC plant working in full scale.

Speaker #3: So, if you want breakup, I can say close to about ₹87 crore we have spent in plumbing. Adhesive, we have spent around ₹29 crore.

Hiranand Savlani: If you want break up, I can say roughly about INR 87 crore we have spent in plumbing. ADAC we have spent around INR 29 crore. Sorry, INR 29 plus 3, so INR 32 crore. UK roughly about INR 2 crore, and then INR 16 crore on CPVC rigid plant.

Speaker #3: Sorry 29 plus 3. So 32 crore. UK roughly about 2 crore. And then 16 crore on CPVC resin plant.

Anup Parakh: For the budget for FY27?

Speaker #2: And for the budget for FY27?

Anu Parakh: For the budget for FY27?

Speaker #3: I think we have said 300 kind of level 3 to 350 kind of level will be there. Hello. Hello.

Hiranand Savlani: I think we have said 300 kind of level, 300 to 350 kind of level will be there.

Sandeep Engineer: Hello? Hello?

Speaker #2: Yes. Hello. Yes. Thank you.

Anup Parakh: Yes. Hello.

Anu Parakh: Yes. Hello.

Sandeep Engineer: Hello.

Anup Parakh: Yes. Thank you.

Anu Parakh: Yes. Thank you.

Speaker #1: Thank you ma'am.

Operator 2: Thank you, ma'am.

Operator: Thank you, ma'am.

Speaker #3: Okay.

Sandeep Engineer: Okay.

Speaker #1: The next. Ladies and gentlemen, to ask a question, please press star and one now. Participants who wish to ask questions, may please press star and one at this time.

Operator 2: Ladies and gentlemen, to ask a question, please press star and one now. Participants who wish to ask questions may please press star and one at this time. The next question is from the line of Shravan Shah from Dolat Capital. Please proceed with your question.

Operator: Ladies and gentlemen, to ask a question, please press star and one now. Participants who wish to ask questions may please press star and one at this time. The next question is from the line of Shravan Shah from Dolat Capital. Please proceed with your question.

Speaker #1: The next question is from the line of Shravan Shah from Daulat Capital. Please proceed with your question.

Shravan Shah: Sir, in Bathware now, for this quarter, is it a kind of an EBITDA positive? Because till last quarter we were kind of a breakeven.

Speaker #2: sir in bathware and now are we are we for this quarter is it a kind of a EBITDA positive because till last quarter we were kind of a break even?

Hiranand Savlani: Still we are at a breakeven.

Speaker #3: So still we are at a break even.

Hiranand Savlani: Still we are at a breakeven.

Shravan Shah: Okay. In the UK for full year in terms of the margin, we can say 8% to 10% kind of a margin we can build in?

Speaker #2: Okay. Okay. And and in in that UK for full year in terms of the margin now we can we can see a 8 to 10 percent kind of a a a margin we can build in.

Speaker #3: Yes. Yes. We are targeting that only.

Hiranand Savlani: Yes, we are targeting that only.

Shravan Shah: For Paint, how we can now see because the growth is there, so from Q2 itself, can we start seeing an EBITDA positive and what number one can look at, kind of a 6%, 7% kind of a number for full year EBITDA margin?

Speaker #2: And for paint how we can now now see because the growth is there so from Q2 itself can we start seeing a a a EBITDA positive and what number one can look at kind of a 6 7 percent kind of a number for full year EBITDA margin.

Hiranand Savlani: Last call we have guided that we will be delivering lower single digit EBITDA growth.

Speaker #3: Last quarter, we had guided that we would be delivering lower single-digit EBITDA growth.

Shravan Shah: Okay. That's it from my side. Thank you.

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

Speaker #1: Thank you sir. The next question is from the line of Durgesh Shukla from Incred Capital. Please proceed with your question.

Operator 2: Thank you, sir. The next question is from the line of Durgesh Shukla from Incred Capital. Please proceed with your question.

Operator: Thank you, sir. The next question is from the line of Durgesh Shukla from InCred Capital. Please proceed with your question.

Durgesh Shukla: Hello, sir. Thank you for the opportunity. Can we confirm your volume and EBITDA guidance?

Speaker #2: Hello, sir. Thank you for the opportunity. I just wanted to ask, can we reconfirm your volume and EBITDA guidance?

Hiranand Savlani: Volume and EBITDA guidance for plumbing?

Speaker #3: Volume and EBITDA guidance for plumbing.

Speaker #2: Yes.

Durgesh Shukla: Yes.

Speaker #3: So, we have given the guidance of minimum double-digit growth for volume, and for EBITDA we have given 16 to 18 percent.

Hiranand Savlani: We have given the guidance of minimum double digit growth.

[Analyst] (Nuvama): Okay.

Durgesh Shukla: Okay.

Hiranand Savlani: For volume, and EBITDA, we have given 16% to 18%.

Durgesh Shukla: Okay, sir. What about the paint sector?

Speaker #2: Okay. Okay sir. And what about the paint sector?

Hiranand Savlani: Paint?

Speaker #3: Paint. Paint we have given guidance of 20 to 25 percent kind of top line growth.

Durgesh Shukla: Yes.

Durgesh Shukla: Paint, we have given guidance of 20% to 25% kind of top line growth.

Hiranand Savlani: Paint, we have given guidance of 20% to 25% kind of top line growth.

Durgesh Shukla: Okay, top line.

Speaker #2: Okay. Top line.

Hiranand Savlani: Adhesive, we have given 15% to 20% kind of growth.

Speaker #3: And adhesive we have given 15 adhesive we have given 15 to 20 percent kind of growth.

Hiranand Savlani: Adhesive, we have given 15% to 20% kind of growth.

Durgesh Shukla: Okay. Any margin guidance on the same which you would like to give?

Speaker #2: Okay. And any margin guidance on the same which you would like to give?

Hiranand Savlani: Paint, we have given lower single-digit guidance, and adhesive we have given 15% kind of guidance.

Speaker #3: For Paint, we have given lower single-digit guidance. And for Adhesive, we have given around 15 percent guidance.

Speaker #2: Thank you sir so much. That's all from my side.

Durgesh Shukla: Thank you, sir, so much. That was from my side.

Speaker #3: Thank you.

Hiranand Savlani: Thank you.

Speaker #1: Thank you sir. The next question is from the line of Kesav Lahoti from IDFC Securities. Please proceed with your question.

Operator 2: Thank you, sir. The next question is from the line of Keshav Lahoti from IDFC Securities. Please proceed with your question.

Operator: Thank you, sir. The next question is from the line of Keshav Lahoti from HDFC Securities. Please proceed with your question.

Keshav Lahoti: Hello, hi. Thank you for the opportunity. Firstly, I am from IDFC Securities.

Keshav Lahoti: Hello, hi. Thank you for the opportunity. Firstly, I am from HDFC Securities.

Speaker #2: Hello. Hi. Thank you for the opportunity. Firstly, I'm from IDFC Securities—a small correction.

Operator 2: Sorry to interrupt, Keshav. May we request that you speak a little louder?

Operator: Sorry to interrupt, Keshav. May we request that you speak a little louder?

Speaker #1: Sorry to interrupt, Kesav sir. May we request that you speak a little louder?

Speaker #2: Am I audible? Yeah. Now.

Keshav Lahoti: Am I audible?

Operator 2: Yes.

Operator: Yes.

Hiranand Savlani: Yeah, yeah, you can proceed.

Speaker #3: Yeah. You can proceed.

Speaker #2: Am I audible?

Keshav Lahoti: Am I audible?

Speaker #3: Yeah. Yeah. You are audible.

Hiranand Savlani: Yeah. You are audible.

Speaker #2: Yeah. So I would say, firstly, I’m from IDFC Securities. The first question is, when you say July has been a 40 percent growth, is it that the market has been good, or possibly you would have gained more share in July—the rate at which you have been gaining market share?

Keshav Lahoti: I was saying, firstly, I am from IDFC Securities. The first question is, when you say July has been a 40% growth, is it the market has been good, or possibly you would have gained more share in July month, the trend at which you have been gaining market share?

Keshav Lahoti: I was saying, firstly, I am from HDFC Securities. The first question is, when you say July has been a 40% growth, is it the market has been good, or possibly you would have gained more share in July month, the trend at which you have been gaining market share?

Speaker #3: No market has been good, and we are gaining market share, so it's a combination of both. So you see the market share process gaining share—it's not on a one quarter basis. Over the last 10 years, continuously, every year we are gaining market share. If you pick up the last 10 years' numbers, every year we have grown market share.

Hiranand Savlani: No, market has been good, and we are gaining the market share. So it is a combination of both.

Keshav Lahoti: Good.

Hiranand Savlani: You see, the market share process, gaining share, it is not one quarter basis. Last 10 years continuously, every year we are gaining market share. You pick up the last 10 years' numbers. Every year we have grown market share.

Keshav Lahoti: Okay.

Speaker #3: So that is an ongoing process because we are continuously adding our new location new geographies new products so that exercise is still continued and will continue for some more time.

Hiranand Savlani: That is an ongoing process because we are continuously adding our new location, new geographies, new products. That exercise is still continuing and will continue for some more time.

Keshav Lahoti: Understood.

Speaker #2: Understood. Got it. Hello. And sir on the inventory how is the channel inventory right now? Secondly when PVC prices have declined this quarter still we have not seen inventory loss why is that so and secondly Q2 should we have a good inventory gain as PVC prices has been in a upswing?

Operator 2: Hello.

Operator: Hello.

Keshav Lahoti: Sorry. Hello. Sir, on the inventory, how is the channel inventory right now? Secondly, when PVC prices have declined this quarter, still we have not seen inventory loss. Why is that so? Secondly, Q2, should we have a good inventory gain as PVC prices has been in an upswing?

Hiranand Savlani: See, it depends on what price you are buying your inventory. Based on that, inventory gain and loss will be decided. Secondly, how much is the contribution from your value-added product is there. If your contribution from value-added product is also increasing, inventory loss, little bit here and there is not considered. I think Q2, very difficult to say at this stage because still lot of time to come, but it looks that prices are continuously going up. But everyone is sitting with a low growth, so everyone is passing on support to the market. We have to see how much we have to give the support to the market, and based on that, the volume will be decided. Based on that, the inventory gain will be there or not, that will be decided by the end of the quarter.

Speaker #3: So see, it depends at what price you are buying your inventory. Based on that, inventory gain and loss will be decided. And secondly, how much is the contribution from your value-added product.

Speaker #3: So if your contribution from value added product is also increasing so inventory loss little bit here and there is not considered. So I think Q2 very difficult to say at this stage because still lot time to come but it looks that prices are continuously going up but everyone is sitting with a low growth so everyone is passing on support to the market.

Speaker #3: So, we have to see how much support we need to give to the market, and based on that, the volume will be decided. Based on that, the inventory gain will be there or not; that will be decided by the end of the quarter.

Speaker #3: So I think too early to say but one more thing is also going on in the industry which can also be materialized in the near term it looks like that government is also seriously thinking for the value added duty also on the Chinese product.

Hiranand Savlani: I think too early to say. But one more thing is also going on in the industry, which can also be materialized in the near term. It looks like that government is also seriously thinking for the value-added duty also on the Chinese product. Like Minimum Import Price there, the similar kind of anti-dumping kind of duty kind of value-added thing is also going on. If that is also going to be there in place, maybe in one month, two months down the line, because processes go on with the government. That is also going to support the industry in the coming time. But again, it depends on the government outcome, so we cannot give the assurance that it will be there. But that is also a talk going on.

Speaker #3: So like MIP there the similar kind of anti dumping kind of duty kind of value added thing is also going on. So if that is also going to be there in place maybe in maybe one month two month down the line because process is go on with the government.

Speaker #3: So that is also going to support the industry in the coming time. But again, it depends on the government outcome, so we cannot give this assurance that it will be there, but that is also talk going on.

Hiranand Savlani: If that is the case and further polymer will go up from here, definitely the inventory gain will be there.

Speaker #3: If that is the case, and if polymer prices go up from here, definitely there will be an inventory gain.

Keshav Lahoti: Got it. Sir, I will also ask, how is the channel inventory right now in the market? How is it?

Speaker #2: Got it. Sir, may I also ask, how is the channel inventory right now in the market? How is it?

Speaker #3: I think now it is a okay kind of inventory neither low neither high I can say. Whatever they have bought it in the month of July schedulely they have consumed in the beginning of the August because secondary sale is going very well in the market.

Hiranand Savlani: I think now it is an okay kind of inventory, neither low, neither high, I can say. Whatever they have bought it in the month of July, presumably they have consumed in the beginning of August, because secondary sale is doing very well in the market. Across all the cities, we are monitoring the numbers. It does not look that the channel is sitting with a high inventory. They are mostly sold out.

Speaker #3: And across all the cities we are monitoring the number. So it doesn't look that the channel is sitting with a high inventory. They are mostly sold out.

Keshav Lahoti: Got it. What was the idea? You were planning for a demerger of two units, and possibly you decided to hire Big Four and decided to call off the decisions. What is the entire thought process, and how should we see, let us say a few years down the line, whether demerger will be again on cards?

Speaker #2: Got it. So sir what was the idea earlier we are planning for a big budget of two units and possibly we decided to hire big four and decided to call off the decisions.

Speaker #2: So what was the entire thought process and how should we see let's say a few years down the line whether will be again on target?

Hiranand Savlani: I think we thought that it is good in the interest of the shareholder, and earlier we do, that will be a better control on the organization. I think end of the day, we have to respect the majority of the shareholders' point of view also, because at the end of the day, we are the trustee of shareholders. If the shareholders are not happy with any of the reasons, then I think we should respect, and considering that in mind, I think we do not mind to reverse any of our decision which is not in the interest of the shareholder. We decided to call off, and similarly, the independent advisor who has also guided us that it is not the right time to do the demerger because you are still a presumably low company in terms of top line.

Speaker #3: So I think we thought that it is good, in the interest of the shareholders, and earlier we do that will be better control on the organization. But I think, at the end of the day, we have to respect the majority of the shareholders' point of view also, because at the end of the day, we are the trustees of shareholders.

Speaker #3: If the shareholders are not happy for with any of the reason then I think we should respect and considering that in mind I think we don't mind to reverse any of our decision which is not in the interest of the shareholder.

Speaker #3: So we decided to call off and similarly the independent advisor has also guided us that it is not the right time to do the demerger because you are still a schedulely low company in terms of top line.

Speaker #3: If you pick up the size after that, if you are doing that, it will be a better option. And the same, I think, was expressed by many of our shareholders who are holding the scheduled equity in our company, even if it is a low equity holding. Even many of our well-wishers in the analyst community also expressed the same view. Then the board also thought that we should respect these kinds of views, and based on that, we took it out.

Hiranand Savlani: If you pick up a size after that if you start doing, that will be better option. Same, I think, was expressed by many of our shareholders who are holding the sizable equity in our company, even if the low equity holding. Even many of the well-wisher, our analyst community also, they also express the same view. Then the board also thought that we should also respect this kind of view, and based on that, we have taken out.

Keshav Lahoti: Understood. Got it. But till what time, as you highlighted, shareholder also did not wanted the demerger thing. Till what time the demerger will not happen? Means how many years, or possibly at what revenue base? What is the thought process?

Speaker #2: Understood. Got it. But till what time you know as you highlighted you know shareholder also didn't wanted the demerger thing till what time the demerger won't happen means how many years or possibly at what revenue base what is the thought process?

Speaker #3: I think there is no clear thought process that we will be doing at this level but I think now it will be schedule top line growth and maybe the schedule EBITDA level not less than five six thousand top line so at by that time we may think over that but you know business very difficult to predict at this stage but we are of the view that that should be the ideal size five thousand crore plus kind of size will be the ideal size but that doesn't mean that the five thousand the moment we cross five thousand we will do that thing.

Hiranand Savlani: I think there is no clear thought process that we will be doing at this level. But I think now it will be sizable top-line growth and maybe the sizable EBITDA level, not less than INR 5,000, INR 6,000 top line. So by that time we may think over that. But you know business, very difficult to predict at this stage. But we are of the view that that should be the ideal size, INR 5,000 crore plus kind of size will be the ideal size. But that does not mean that the moment we cross INR 5,000, we will do that thing. So we will see the situation on ground at that particular point of time, and then we will take a call what to do.

Speaker #3: So we will see the situation on ground at that particular point of time and then we will take a call what to do.

Keshav Lahoti: Got it. One last question from my side. You gave 8% to 10% EBITDA margin guidance, is for the entire year or possibly this number will reach by end of the year?

Speaker #2: Got it. One last question from my side. UK address is eight to ten percent EBITDA margin guidance is for the entire year or possibly this number will reach by end of the year?

Speaker #3: No for the full year.

Hiranand Savlani: No, for the full year.

Speaker #2: Got it. That is helpful. Thank you so much.

Keshav Lahoti: Got it. That is helpful. Thank you so much.

Speaker #3: Thank you.

Hiranand Savlani: Thank you.

Operator 2: Thank you, sir. The next question is from the line of Rahul Agarwal from Ikigai Asset. Please proceed with your question.

Operator: Thank you, sir. The next question is from the line of Rahul Agarwal from Ikigai Asset. Please proceed with your question.

Speaker #1: Thank you sir. The next question is from the line of Rahul Agarwal from Ikigai Asset. Please proceed with your our question.

Speaker #2: Yeah hi. Good evening to all on the call. Am I audible?

Rahul Agarwal: Yeah, hi. Good evening to all on the call. Am I audible?

Speaker #3: Yes. Yes Rahul.

Hiranand Savlani: Yes. Yes, Rahul.

Speaker #2: Okay. Sir, three questions. Firstly on the industry side right. I mean last year was tough from the piping plumbing sector. Even this quarter is tough.

Rahul Agarwal: Okay. Sir, three questions. Firstly, on the industry side. Last year was tough on the Piping Solutions sector. Even this quarter is tough. At the same time, I am sure smaller players would have struggled handling their pricing on inventory. Over and upwards of that, we have seen some branded players trying to build up their volume. We have seen some couple of large names getting into the market on pipe fittings. Just your thought on what is really happening in terms of industry. Larger players have gained market share, there is no doubt about it. But just first question essentially was to understand, how do you see the industry overall panning out? Because it has been a real volatile period. So obviously it will benefit you, but just some thoughts on that, please.

Speaker #2: At the same time I'm sure smaller players would have struggled you know handling their you know pricing on inventory. Over and upwards of that we have seen some branded players trying to build up their volume you know we have seen some couple of large names getting into into the market on pipe fittings.

Speaker #2: Just your thought on what is really happening in terms of industry right. Larger players again market shares is no doubt about it. But just first question essentially was to understand how do you see the industry overall panning out because it's been a real volatile period.

Speaker #2: So obviously to benefit you but just some thoughts on that.

Speaker #3: So I will I will answer your question on on see first of all last year I don't think was challenging not for us and neither was this quarter challenging for us because our priorities are very simple and our goals are very simple.

Hiranand Savlani: I will answer your question on. See, first of all, last year I do not think was challenging, not for us, and neither was this quarter challenging for us. Because our priorities are very simple and our goals are very simple. I do not know, but we are outperforming the industry by a fair bit since the last five to six quarters, you can say. As far as the larger company goes, I think we are eating away the market share from all the larger player in the market. You can obviously see from the number that small to mid-scale companies are struggling in this particular business environment.

Kairav Engineer: I will answer your question on. See, first of all, last year I do not think was challenging, not for us, and neither was this quarter challenging for us. Because our priorities are very simple and our goals are very simple. I do not know, but we are outperforming the industry by a fair bit since the last five to six quarters, you can say. As far as the larger company goes, I think we are eating away the market share from all the larger player in the market. You can obviously see from the number that small to mid-scale companies are struggling in this particular business environment.

Speaker #3: So, I don't know, but we are outperforming the industry by a fair bit—since the last five to six quarters, you can say.

Speaker #3: And as far as the larger company goes, I think we are eating away market share from all the larger players in the market.

Speaker #3: And you can obviously see from the number that small to mid scale companies are struggling in this particular business environment. And when you are talking about the other big brands coming in or other new players coming in I don't see anyone significant coming in who will disrupt the market or I have not seen any player who has entered in the last five six years to disrupt the market in any way.

Hiranand Savlani: When you are talking about the other big brands coming in or other new players coming in, I do not see anyone significant coming in who will disrupt the market, or I have not seen any player who has entered in the last five, six years who disrupt the market in any way.

Kairav Engineer: When you are talking about the other big brands coming in or other new players coming in, I do not see anyone significant coming in who will disrupt the market, or I have not seen any player who has entered in the last five, six years who disrupt the market in any way.

Speaker #2: Okay, I get that, Keral. But just one question here—you know, we always end up discussing CTBC for Astral, right? I mean, that's the, you know, highest profit for you.

Rahul Agarwal: Okay. I get that, Kairav. Just one question here. We always end up discussing CPVC for Astral, right? I mean, that is the highest profit for you. Just on the PVC side, and it is also bulk. I am assuming that it is close to 50% more than that on volume for Astral. What is happening over there? These market share gains are happening on the CPVC side or even on the PVC side?

Speaker #2: But just on the PVC side and which is also bulk which also is like I'm assuming that it's close to fifty percent more than that on volume for Astral.

Speaker #2: What is happening over there? Are market share gains occurring on the CPVC side or even on the PVC side?

Speaker #3: It is happening across the board all product segment.

Hiranand Savlani: It is happening across the board, all product segment.

Kairav Engineer: It is happening across the board, all product segment.

Speaker #2: Okay. Okay. Got it. Second question was on primary sales versus secondary. Do we track secondary sales for Astral piping?

Rahul Agarwal: Okay. Got it. Second question was on primary sales versus secondary. Do we track secondary sales for Astral Pipe and Fittings?

Hiranand Savlani: We track tertiary also.

Kairav Engineer: We track tertiary also.

Speaker #3: We track tertiary also.

Speaker #2: Okay. So you know my understanding was obviously one queue had a lot of destocking issue. Which is why July is forty percent growth. Base is low.

Rahul Agarwal: Okay. My understanding was obviously Q1 had a lot of destocking issue, which is why July is 40% growth. Base is low. We are seeing stocking again. But if you could just comment on tertiary sales for Q1, that is one question. And second is primary equal to secondary now?

Speaker #2: We're seeing stocking again. But if you could just comment on tertiary sales for one queue, that is one question. And second is, is primary equal to secondary now, starting off?

Hiranand Savlani: Tertiary and secondary were both higher than primary in Q1, obviously because the channel was destocking. Secondly, Q4 sale was very high.

Kairav Engineer: Tertiary and secondary were both higher than primary in Q1, obviously because the channel was destocking. Secondly, Q4 sale was very high.

Speaker #3: Tertiary, tertiary and primary—both were tertiary, and secondary were both higher than primary in Q1, obviously because the channel was destocking.

Speaker #2: And secondly, Q4 sales were very high. So because of that, the secondary and the tertiary sales in Q1 are always high, right? And what is happening in August?

Hiranand Savlani: Because of that, the secondary and the tertiary sale in Q1 is always high.

Rahul Agarwal: Right. What is happening on those?

Hiranand Savlani: That is why the channel has restocked largely in July and still the restocking is happening because the channel was very dry in Q1, because largely all the secondary and tertiary sales had happened. Rahul, it is not only that July we have delivered the 40%, but even August also so far we are at a double-digit growth. It looks that the secondary and tertiary is growing well, otherwise distributor, day on the point cannot restock that much. Genuinely on ground demand is picking up, and that is the reflection of this number.

Speaker #3: That is why the channel has restocked largely in the month of July, and still the restocking is happening, because the channel was very dry in Q1, as largely all the secondary and tertiary sales had happened.

Speaker #2: And Rahul it is not the it is not only that July we have delivered the forty percent but even August also so far we are at a double digit growth.

Speaker #2: So it looks like the secondary and tertiary is growing well, otherwise the distributor beyond that point cannot restock that much. So genuinely, on-ground demand is picking up, and that is the reflection of this number.

Rahul Agarwal: Got it, sir. Last question was on the sourcing of PVC resin and CPVC resin right now for Astral. What is the import and domestic mix for both these resins separately?

Speaker #2: Got it, sir. Got it. And the last question was on the sourcing of PVC resin and CTBC resin right now for Astral. What is the import and domestic mix for, you know, both these resins separately?

Speaker #3: I think we are not sharing this number. These are confidential numbers. So it depends—every quarter the percentage will be different.

Hiranand Savlani: I think we are not sharing this number. These are the confidential numbers. So it depends. Every quarter the percentage will be different.

Rahul Agarwal: Sure. Why I was asking it was from an import perspective, how is the sourcing for resins? Because Forex has depreciated, there are lead times which have increased because of freight issues. Shipping cost has also increased. I know this is a pass-through industry, but.

Speaker #2: Sure. While asking it was from an import perspective how is the sourcing for resins because you know forex is depreciated there are lead times which have increased because of rate issues.

Speaker #2: Shipping cost has also increased. I know this is a pass-through industry, but...

Speaker #3: We will—we, I think—I think we have to stick to, you know, that we will continue to grow at a double-digit volume and deliver sixteen to eighteen percent EBITDA.

Kairav Engineer: I think we have to stick to that we will continue to grow at a double-digit volume and deliver 16% to 18% EBITDA. I think we should not extrapolate into what is happening and where we are sourcing from. I think that is a proprietary information of the company.

Speaker #3: I think we should not extrapolate into what is happening and where we are sourcing from. I think that is proprietary information of the company.

Speaker #2: Okay, sure. So, one point I was trying to drive was sourcing all products.

Rahul Agarwal: Okay, sure. One point I was trying to drive was, is sourcing all products

Speaker #3: We we we have mentioned enough inventory so no concern.

Kairav Engineer: We have maintained enough inventory, so no concern on that.

Speaker #2: Okay. Okay. All right. Thank you so much and wish you all the luck for the rest of the year. Thank you so much.

Rahul Agarwal: Okay. All right. Thank you so much, and wish you all the luck for the rest of the year. Thank you so much.

Kairav Engineer: Sure. Thank you.

Speaker #3: You too. Thank you. Thank you.

Speaker #1: Thank you, sir. The next question is from the line of Akash Shah from UTI Mutual Fund. Please proceed with your question.

Operator 2: Thank you, sir. The next question is from the line of Akash Shah from UTI Mutual Fund. Please proceed with your question.

Operator: Thank you, sir. The next question is from the line of Akash Shah from UTI Mutual Fund. Please proceed with your question.

Akash Shah: Yeah. Hi, sir. Am I audible?

Speaker #2: Yeah. Hi, sir. Am I audible?

Kairav Engineer: Yes, sir, Akash.

Speaker #3: Yes sir Akash.

Speaker #2: Yeah. So thank you for the opportunity. Sir just wanted to ask on gross margin side sir in India as a business if possible can can we share what is the gross margin decline on a YOY basis?

Akash Shah: Yeah. Thank you for the opportunity. Sir, just wanted to ask on gross margin side. Sir, in India Adhesive business, if possible, can we share what is the gross margin decline on a year-over-year basis?

Kairav Engineer: We do not share individual number, Akash.

Speaker #3: So we don't share individual number Akash.

Kairav Engineer: We do not share individual number, Akash.

Speaker #2: Oh okay. No worries. Sure sir. And sir in as a India as a business now that I mean fair bit of time has passed so sir how is the ramp up in south and west region because of the H plant.

Akash Shah: Oh, okay. No worries. Sure, sir. In India Adhesive business, now that a fair bit of time has passed, sir, how is the ramp-up in South and West region because of Dahej plant? Are we sort of being able to ramp up the sales in this part of India?

Speaker #2: So are we sort of being able to ramp up the sales in this this part of India?

Speaker #3: Yeah yeah. South for us has always been a weak point since we have acquired Resinova. But last two years for India as a business has been very robust and it's lot of legwork and market development activities are going on.

Kairav Engineer: Yeah. South for us has always been a weak point since we have acquired Resinova Chemie Ltd. But last two years for India Adhesive business has been very robust, and a lot of legwork and market development activities are going on. So parallelly with sales, we are also developing South equally, and we are looking South as our big focus for our sales increase for coming years, and South will deliver. West, we are already doing fairly well and we have a good market share for the product lines we are present in for the West region, and we have good counter share as well. So we will keep focusing on and making our position even stronger in West also. Dahej plant is definitely helping in that.

Speaker #3: So, parallelly with sales, we are also developing South equally, and we are looking at South as our big focus for our sales increase in the coming years. South will deliver. In the West, we are already doing fairly well, and we have a good market share for the product lines we are present in.

Speaker #3: For the west region and we have good counter share as well. So we'll keep focusing on and making our position even stronger in west also.

Speaker #3: And the H plant is definitely helping in that.

Akash Shah: Sure. Yeah, those were my questions. Thank you.

Speaker #2: Sure. Sure. Sure. Yeah, those were missing, sir. Thank you.

Kairav Engineer: Thank you.

Speaker #3: Thank you.

Operator 2: Thank you, sir. Ladies and gentlemen, to ask a question, please press star and 1 now. Participants who wish to ask questions may please press star and 1 at this time. The next question is from the line of Shiv, an individual investor. Please proceed with your question. Mr. Shiv, your line has been unmuted. Please proceed with your question. As there is no response, we will move to the next question. The next question is from the line of Utkarsh from Anand Rathi. Please proceed with your question.

Operator: Thank you, sir. Ladies and gentlemen, to ask a question, please press star and 1 now. Participants who wish to ask questions may please press star and 1 at this time. The next question is from the line of Shiv, an individual investor. Please proceed with your question. Mr. Shiv, your line has been unmuted. Please proceed with your question. As there is no response, we will move to the next question. The next question is from the line of Utkarsh from Anand Rathi. Please proceed with your question.

Speaker #1: Thank you sir. Ladies and gentlemen to ask a question please press start and one now. Participants who wish to ask questions may please press start and one at this time.

Speaker #1: The next question is from the line of Shift and individual investor. Please proceed with your question. Mr. Shift, your line has been unmuted. Please proceed with your question.

Speaker #1: As there is no response, we'll move to the next question. The next question is from Utkarsh from Anand Rathi. Please proceed with your question.

[Analyst] (Anand Rathi): Sir, I just wanted to reconfirm. Like you said that we will reconsider the demerger of chemical business once it reaches a revenue of INR 5,000 crore. Last year, the chemical business revenue was close to around INR 2,000 crore. Does this mean that we are now going to consider the demerger of chemical business over the next 5 to 7 years period?

Utkarsh Joshi: Sir, I just wanted to reconfirm. Like you said that we will reconsider the demerger of chemical business once it reaches a revenue of INR 5,000 crore. Last year, the chemical business revenue was close to around INR 2,000 crore. Does this mean that we are now going to consider the demerger of chemical business over the next 5 to 7 years period?

Speaker #2: Sorry, I just wanted to re-confirm: like you said, we will reconsider the de-bottlenecking of the chemical business once it reaches a revenue of $5,000.

Speaker #2: So last year the chemical business revenue was close to around two thousand crore. So does this mean that we are not going to consider the debudger of chemical business over the next five seven years period?

Kairav Engineer: It depends. I said in the early report that if it comes early and the situation is necessary to do that thing, we will re-look. But it is not a fix that we have kept in mind that, okay, at this level, we are going to do that thing. We can do at INR 7,000 also. We may not do also. It depends on the market conditions and the situation needed to grow the business, particularly that vertical. Based on that, it will be taken, the decision. So there is no fixed timeline in our mind.

Hiranand Savlani: It depends. I said in the early report that if it comes early and the situation is necessary to do that thing, we will re-look. But it is not a fix that we have kept in mind that, okay, at this level, we are going to do that thing. We can do at INR 7,000 also. We may not do also. It depends on the market conditions and the situation needed to grow the business, particularly that vertical. Based on that, it will be taken, the decision. So there is no fixed timeline in our mind.

Speaker #3: It depends. I said in the early remark that if it comes early and the situation is necessary to do that thing, we will relook.

Speaker #3: But it is not a fix that we have kept in mind that, okay, at this level we are going to do that thing. We can do at seven thousand also.

Speaker #3: We may not do it also. It depends on the market conditions and the situation needed to grow the business, particularly in that vertical. Based on that, the decision will be taken.

Speaker #3: So there is no fixed timeline in our mind.

[Analyst] (Anand Rathi): Okay, sir. If you can give some sense, like what kind of a scale, return ratio, and margin we are looking at before taking the call of demerger.

Utkarsh Joshi: Okay, sir. If you can give some sense, like what kind of a scale, return ratio, and margin we are looking at before taking the call of demerger.

Speaker #2: Okay, sir. If you can give us some sense of what kind of scale, return ratio, and margin we are looking at before taking the call of debudger.

Kairav Engineer: I told you that we will take the call at that particular time. Right now, we are not taking the call, so there is no point to unnecessarily discuss in detail this kind of thing. At least from number, at least four, five years will be there, minimum five years. So no need to worry on that side.

Hiranand Savlani: I told you that we will take the call at that particular time. Right now, we are not taking the call, so there is no point to unnecessarily discuss in detail this kind of thing. At least from number, at least four, five years will be there, minimum five years. So no need to worry on that side.

Speaker #3: I told you that we would take the call at that particular time, right? Now we are not taking the call, so there is no point in unnecessarily discussing this kind of thing in detail.

Speaker #3: At least from number at least four five year will be there minimum five years. So no need to worry on that side.

[Analyst] (Anand Rathi): Okay. Thanks a lot, sir.

Utkarsh Joshi: Okay. Thanks a lot, sir.

Speaker #2: Okay. Thanks a lot sir.

Operator 2: Thank you, sir. The next question is from the line of Roshan from Antique Stock Broking. Please proceed with your question.

Operator: Thank you, sir. The next question is from the line of Roshan from Antique Stock Broking. Please proceed with your question.

Speaker #1: Thank you, sir. The next question is from the line of Roshan from Antiques Stock Broking. Please proceed with your question.

[Analyst] (Antique Stock Broking): Yeah. Thanks a lot for the opportunity. So will the bathware segment grew by around 18%.

Roshan Nair: Yeah. Thanks a lot for the opportunity. So will the bathware segment grew by around 18%.

Speaker #2: Yeah. Thanks a lot for the opportunity. So the barter segment bring by around.

Operator 2: Sorry to interrupt, Roshan, sir. May I request that you speak a little louder?

Operator: Sorry to interrupt, Roshan, sir. May I request that you speak a little louder?

Speaker #1: Sorry to interrupt, Roshan sir. May we request that you speak a little louder?

[Analyst] (Antique Stock Broking): Is this better now?

Roshan Nair: Is this better now?

Speaker #2: Is it better now?

Operator 2: Yes, sir.

Operator: Yes, sir.

Kairav Engineer: Yeah.

[Analyst] (Antique Stock Broking): Yeah. The bathware segment grew by 18% in Q1. So what is driving this growth? Is it the retail or projects? And how confident are you of sustaining this kind of growth going forward?

Roshan Nair: Yeah. The bathware segment grew by 18% in Q1. So what is driving this growth? Is it the retail or projects? And how confident are you of sustaining this kind of growth going forward?

Speaker #1: Yes sir.

Speaker #3: Yeah.

Speaker #2: Yeah, so the barter segment grew by 18% in Q1. What is driving this growth? Is it the retail or project segment? And how confident are you of sustaining this kind of growth going forward?

Kairav Engineer: We are still a very new entrant in the market and have a very low base. We are just starting out.

Kairav Engineer: We are still a very new entrant in the market and have a very low base. We are just starting out. Working with a clean slate. Some territories we are entering through projects, some territories we are entering through retail, but we are happy that we can deliver this 20% to 25% type CAGR in Bathware business for the coming four, five years.

Speaker #3: We are still a very new entrant in the market and at a very low base. So we are just starting out, and we are working with a clean slate.

Kairav Engineer: Working with a clean slate. Some territories we are entering through projects, some territories we are entering through retail, but we are happy that we can deliver this 20% to 25% type CAGR in Bathware business for the coming four, five years.

Speaker #3: So, some territories we are entering through projects, and some territories we are entering through retail. But we are happy that we can deliver this 20-25% type figure in barter business for the coming four to five years.

Hiranand Savlani: I think 18% we are not happy, to be very frank. We should be growing fast because our base is still low.

Speaker #3: I think eighteen we are not happy to be very frank. We should be growing fast because our base is still low.

[Analyst] (Antique Stock Broking): Understood. My second question is, you attributed around improvement in utilization of two plants as a major contributor for growth in the margin. As utilization improves, how much operating leverage is still available in the plumbing business now?

Roshan Nair: Understood. My second question is, you attributed around improvement in utilization of two plants as a major contributor for growth in the margin. As utilization improves, how much operating leverage is still available in the plumbing business now?

Speaker #2: Understood. And my second question is, you attributed the improvement in utilization of two plants as a major contributor to the growth in the margin. So, as utilization improves, how much operating leverage is still available in the plumbing business now?

Hiranand Savlani: I think we have given the guidance. It depends how much which plant is getting utilized, because now both the plant has started utilization at a sizable level. So little bit further benefit can be available in the coming time, but it cannot be a substantial benefit now from here on, we can see.

Speaker #3: So I think we have given the guidance. So it depend how much which plant is getting utilized because now both the plant has started utilization at a sizable level.

Speaker #3: So little bit further benefit can be available in the coming time. But cannot be a substantial benefit now from here on we can see.

[Analyst] (Antique Stock Broking): Understood. That is all from my side. Thank you. Thank you, sir.

Roshan Nair: Understood. That is all from my side. Thank you. Thank you, sir.

Speaker #2: Understood. That's all from my side. Thank you. Thank you sir.

Speaker #1: Thank you, sir. Ladies and gentlemen, to ask a question, please press star and one now. Participants who wish to ask questions may please press star and one at this time.

Speaker #1: The next question is from the line of Shravan Shah from Daulat Capital. Please proceed with your question.

Shravan Shah: Hi, sir. Just wanted to clarify. Initially, we said that in terms of the value and volume growth, which was at 10% in this quarter, and we are looking at more than 20% kind of a gap for this FY27. That means that the realization for plumbing for the entire full year FY27 versus FY26 should be that kind of a growth that we are looking at?

Speaker #2: Hi sir. Hi sir. Just wanted to clarify initially we said that the in terms of the value and volume growth so which was a ten percent in this quarter and we are looking at more than twenty percent kind of a gap for this FY27.

Speaker #2: So, that means that the realization for plumbing for the entire full year FY27 versus FY26 should be that kind of growth that we are looking at, kind of.

Hiranand Savlani: No, I think you have misunderstood me. I said that if the volume will be 10%, then the value will be 20. So 10% kind of gap will be maintained for the full year. That is what we are forecasting from the current market situation. It can be 102% plus, it can be 102% minus. It again depend on the product mix also. But right now, after so many years, we are seeing that the first time that the value will be higher sizably compared to the volume. Last three year, if you see, all the Piping Solutions industries were sufferer because volume was there, but the value growth was not there. Because of that, all our overheads were continuously going up, and that was continuously giving us the pressure on the margin.

Speaker #3: No no no no. I think you have misunderstood me. I said that if the volume will be ten percent then the value will be twenty.

Speaker #3: So, a ten percent kind of gap will be maintained for the full year. That is what we are forecasting from the current market situation. It can be one or two percent plus.

Speaker #3: It can be one or two percent minus. It again depend on the product mixed also. But right now after so many years we are seeing that the first time that the value will be higher sizably compared to the volume.

Speaker #3: If you look at the last three years, all the piping industries were sufferers because volume was there but the value growth was not there. So because of that, all our overheads were continuously going up, and that was continuously giving us pressure on the margin.

Hiranand Savlani: But this is the first time after so many years, we are seeing that the value will be at least 10% kind of plus compared to the volume. Now, hypothetically, 15% volume will be there, then the 25% kind of growth will be there in value term. That is going to help us to improve into our margin because our overheads are going to remain at a certain level, and if the top line grows, then it is going to support us into the margin front. I am not telling you 20% plus, I am telling you 10% compared to volume.

Speaker #3: But this is the first time after so many years we are seeing that the value will be at least 10 percent kind of plus, compared to the volume.

Speaker #3: Now hypothetically fifteen percent volume will be there then the twenty-five percent kind of growth will be there in value term. So that is going to help us to improve into our margin because our overheads are going to remain at a certain level.

Speaker #3: And if the top line grows, then it is going to support us into the margin front. So I am not telling you 20% plus.

Speaker #3: I am telling you ten percent compared to volume.

Shravan Shah: Got it. Understood. Then in terms of our stand, once our new CPVC plant will be there by Q4 this year, FY28, let's say this year, if we do a kind of a 15% volume growth, then next FY28, the growth rate would be higher than the FY27 growth rate.

Speaker #2: Got it. Got it. Understood. And and and and in terms of our stand once the our new CPVC plant will will be there by Q4 this year FY28 let's say this year if we do a kind of a fifteen percent volume growth so then next FY28 the growth rate would be a higher than the FY27 growth rate.

Hiranand Savlani: Definitely, your understanding is perfect. Not only growth will be higher, but the margin expansion will also be there.

Speaker #3: Definitely you are understanding is perfect. Not only growth will be higher but the margin expansion will also be there.

Shravan Shah: Yeah. That is definitely will be there. That is why I was trying to push that given the margin that we are already there, 18.9% for plumbing. So what is stopping us still to not increase that upper bank of the guidance, why 16% to 18%?

Speaker #2: Yeah yeah. That is that is definitely will be will be there. So so that's why I was I was trying to to to push that given the margin that we are already there eighteen point nine percent for plumbing.

Speaker #2: So why what is stopping us still to to not not increase that upper band of the of the guidance percent.

Hiranand Savlani: No, Shravan, you please understand that on the basis of one quarter, we cannot keep changing our guidance. You have to also give us the time, and you know last 3 years, it is the industry is continuously volatile. First time after 3 years, we are seeing that at least Minimum Import Price kind of things is there, and now government is also thinking for the further duty on the Chinese product. If these kind of things are placed on the market, we can confidently tell you that now this is going to be there. But right now, industry is passing through the up and down kind of scenario. In that case, unnecessary misguiding the investor, that is not the philosophy of Astral. We always want to be transparent with you and unnecessarily, we do not want to put up pressure on us also and unnecessarily misguide you. So keep patient.

Speaker #3: No Shravan you please understand that on the basis of one quarter we can't keep changing our guidance. You have to also give us the time and you you know last three year it is the industry is continuously volatile.

Speaker #3: First time after three year we are seeing that at least MIB kind of things is there and now government is also thinking for the further duty on the Chinese products.

Speaker #3: If these kind of things are placed on the market we can confidently tell you that now this is going to be there. But right now industry is passing through the up and down kind of scenario.

Speaker #3: So in that case unnecessary misguiding the investor that is not the philosophy of Astral. We always want to be a transparent with you and unnecessary we don't want to put up pressure on us also and unnecessary misguide you.

Speaker #3: So keep patient. We are already in the month of August. September is not far away. Then after if the situation will improve we are definitely going to change the guidance.

Hiranand Savlani: We are already in the month of August. September is not far away. Then after if the situation will improve, we are definitely going to change the guidance. In the past also, we have done the same thing. Whenever there is a market situations are positive, we have upgraded our guidance. Whenever market situations are not in our favor, we are happy to downgrade also.

Speaker #3: In the past also we have done the same thing. Whenever there is a market situations are positive we have upgraded our guidance. Whenever market situations are not in our favor we are happy to downgrade also.

Shravan Shah: Yeah. No, why I was saying that because if I look at even last 2 years also, FY25, 2026, the margin was 19% and 19.6%. And given that the value growth for this year, as you are highlighting that it should be a 10% plus kind of a value growth. In that case, and then obviously the volume growth will be there. If we are confident in terms of the value growth would be higher than the confidence should-

Speaker #2: Yeah no no why why I was saying that because in if I look at even last two years also FY2526 the the the margin was nineteen percent and nineteen point six percent and given that the value growth for this this year as you are highlighting that it should be a ten percent plus kind of a value growth.

Speaker #2: So in that case and and obviously the volume growth will will be there. So so if if we are confident in terms of the value growth would be a higher then the confidence should.

Hiranand Savlani: Shravan, your understanding is absolutely right. You are thinking on the right direction. But for that, you have to keep little patience because I do not know which quarter inventory gain will be there, which quarter inventory loss will be there. If we improve the guidance and tomorrow something goes wrong and PVC falls, then the inventory loss comes, then you yourself will say, "What was the need to increase the guidance?" So with the appropriate time only we will be able to guide you. What is going to make different to the long-term investor? Is the long-term investor of Astral waiting for a one quarter number or two quarter number? Investor should think for the company from the next two to three year point of view, rather than thinking for one quarter or two quarters.

Speaker #3: So you are understanding is absolutely Shravan you are understanding is absolutely right. You are thinking on the right direction. But for that you have to keep little patient because I don't know which quarter inventory gain will be there which quarter inventory loss will be there.

Speaker #3: And if we improve the guidance and tomorrow something goes wrong and PVC falls and then the inventory loss comes, then you yourself will say, why was there a need to increase the guidance?

Speaker #3: So with the appropriate time only we will be able to guide you and what is going to make difference to the long term investor.

Speaker #3: If the long term investor of Astral is waiting for a one quarter number or two quarter number. Investor should think for the company from the next two to three year point of view rather than thinking for one quarter or two quarter.

Hiranand Savlani: When management is telling you that wait for the one quarter, I do not think any of our investors have any concern.

Speaker #3: When management is telling you that wait for the one quarter I don't think any of our investor have any concern.

Shravan Shah: Yeah, no.

Hiranand Savlani: We are giving always the industry best number in terms of top line, in terms of bottom line. We are continuing our stand on that side, that we will be maintaining that kind of thing. But exactly improving the margin and improving the top-line guidance on a quarterly basis, I think it is too early to jump in. Please, humble request to you that wait for some time. At the appropriate time, we will be guiding you.

Speaker #2: Yeah no no.

Speaker #3: And we are giving the we are giving we are giving always the industry best number. In terms of top line in terms of bottom line.

Speaker #3: And we are continuing our stand on that side that we will be maintaining that kind of thing. But exactly improving the margin and improving the top line guidance on a quarterly basis I think it is too early to jump in.

Speaker #3: Please please humble request to you that wait for some time. At the appropriate time we will be guiding you.

Shravan Shah: Got it, sir. Thank you.

Hiranand Savlani: Thank you, Shravan Shah, for understanding.

Hiranand Savlani: Thank you, Shravan, for understanding.

Speaker #2: Got it sir. Thank you. Thank you.

Speaker #3: Thank you. Thank you Shravan for understanding.

Operator 2: Thank you, sir. Ladies and gentlemen, we will take this as the last question for today. I would now like to hand the conference over to management for closing comments.

Operator: Thank you, sir. Ladies and gentlemen, we will take this as the last question for today. I would now like to hand the conference over to management for closing comments.

Speaker #1: Thank you, sir. Ladies and gentlemen, we'll take this as the last question for today. I would now like to hand the conference over to management for closing comments.

Sandeep Engineer: Thank you very much all of you for being with us for the Q1 numbers, and we look forward to again connecting you with the Q2 numbers. Thank you, everyone. Thank you very much.

Speaker #4: So thank you very much all of you for being with us for the Q1 numbers. And we look forward to again connecting you with the Q2 numbers.

Speaker #4: So, thank you everyone. Thank you very much.

Hiranand Savlani: Thank you everyone for participating in the call, and thanks, Pranav, Equirus for hosting this call.

Speaker #3: Thank you everyone for participating in the call and thanks Pranav. For hosting this call.

Operator 2: Thank you, sir. On behalf of Equirus Securities, that concludes this conference call. Thank you for joining us, and you may now disconnect your lines. Thank you.

Operator: Thank you, sir. On behalf of Equirus Securities, that concludes this conference call. Thank you for joining us, and you may now disconnect your lines. Thank you.

Speaker #1: Thank you sir. On behalf of Aquarius Securities that concludes this conference call. Thank you all for thank you for joining us and you may now disconnect your lines.

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Q1 2027 Astral Ltd Earnings Call

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