Q1 2027 Orient Bell Ltd Earnings Call
Speaker #1: For day. We have with us today the senior management team of Orient Bell Limited, Mr. Aditya Gupta, Chief Executive Officer. And Mr. Anuj Arora, Chief Financial Officer.
Speaker #1: Who will represent Orient Bell Limited on the call. The management will be sharing the key operating, and financial highlights for the quarter ended 30 June 2026, followed by a question-and-answer session.
Speaker #1: Please note this call may contain some of the forward-looking statements. It's a completely based upon the company's beliefs, opinions, and expectations as of today.
Speaker #1: These statements are not a guarantee of the company's future performance, and involve unforeseen risk and uncertainty. The company also undertakes no obligation to update any forward-looking statements to reflect developments that occur after the statement is made.
Speaker #1: I now hand over the conference to Mr. Aditya Gupta. Thank you, and over to you.
Speaker #2: thank you. Good evening, ladies and gentlemen, and welcome to our Q1 FY27 earnings call. Over the years, OBL has focused on three key priorities: driving demand generation, strengthening our brand, and simplifying time selling.
Speaker #2: With our cutting-edge digital and AI tools, we have built a tech-driven ecosystem comprising platforms such as TMT for project tracking, Lakshya for market working, OBL Connect app for dealers, OBL Executive app for sales teams, and Darpan, which is a graphical MIS tool available across functions and levels.
Speaker #2: And also, our unique AI-powered visualization tool Instalook. These tech-driven initiatives have gained traction with the sales system. For instance, dealers showcase 50,000 new tile designs every month using Instalook.
Speaker #2: They are using this tool also to send out quotations to customers. 2,000-plus new projects are added every month to PMT, which is our project management tool.
Speaker #2: Visits to 6,000 mapped influencers is tracked every day through Lakshya, and there are many, many more such examples. Some of these tools were launched over 7 years ago, and some are recent.
Speaker #2: All of them have accumulated valuable data across multiple areas of our business. This structured data enabled us to take the next step with the launch of our AI chatbot Drishti.
Speaker #2: Drishti leverages our exist our extensive data repository to provide sales teams with granular, actionable insights. In July alone, Drishti has answered almost 10,000 questions for our sales teams, and this always on analytic tools is helping identify and address new opportunities.
Speaker #2: All our efforts—including 24/7 advertising, on TV—are design are designed to generate inquiries and preference for OBL. Our demand generation initiatives have ensured a sell-out of approximately 40% of the primary sales volume in Q1.
Speaker #2: Versus 26% sell-out last year. The sell-out support is helping us command a better price and collect faster, our DSO has improved by 5 days, in Q1.
Speaker #2: Operating environment for the industry has been volatile, as you all know. And, the geopolitical developments in the Middle East continue to create global uncertainty.
Speaker #2: Q1 saw a big gap in supplies as more the operations are shut down during April and most of May. The gap was bridged by organized players like OBL and our drawdown of dealer inventory levels.
Speaker #2: The current operating environment favors branded players, like OBL, and especially those with a lower dependence on Modi as a production center. While near-term volatility persists, we are positive on the long-term outlook.
Speaker #2: Housing, infrastructure, and renovation demand are strong structural growth drivers. If exports open up, it would lead to a big boom for the industry. To summarize, our initiatives over the last few years are now translating into outcomes with revenue growth and margin improving quarter on quarter.
Speaker #2: We will continue to focus on what is in our control with execution, to drive revenue growth and profitability. Thank you. I will now hand over to Anuj, our CFO, who will take you through the detailed financial performance.
Speaker #2: Thank you, Aditya. And good afternoon, everyone. As Aditya highlighted, our continued focus on range of growth initiatives is bringing to deliver results. With the benefits becoming increasingly visible, in the momentum building quarter on quarter.
Speaker #2: Let me take you through the financial performance now. Overall volume grew by 22.9%, while revenue increased by 42.8% year on year, to 203 crores.
Speaker #2: Supported by an ASP increase of around 15.9%. We were able to effectively pass through the increase in input cost, while the higher contribution from our own manufacturing business provided an additional benefit to gross margins.
Speaker #2: As a result, we achieved our highest ever gross margin of 39.7% during this quarter. At the operating level, EBITDA increased to 17.6 crores, from 5.6 crores in corresponding period last year, with an EBITDA margin of 8.7%.
Speaker #2: The EBITDA margin expanded by 480 bips as compared to same period last year. Profit before tax also improved significantly, to 11.2 crores, compared to a loss of 0.6 crores last year.
Speaker #2: Importantly, profitability continues to grow ahead of revenue, driven by improvement in realization operating leverage and enhanced manufacturing efficiencies. We also remained focused on strong cash flow generation and disciplined working capital management during the quarter.
Speaker #2: Our working capital cycle further improved to 18 days, from 20 days sequentially, reflecting our continued effort to enhance operating efficiency optimized inventory and receivables, and maintain a lean balance sheet.
Speaker #2: From a balance sheet perspective, the company remains debt-free, supported by a strong cash position and liquid investments of over 47.7 crores, net of debt.
Speaker #2: This robust financial position provides significant flexibility to pursue further growth opportunities while maintaining a disciplined and prudent approach to capital allocation. On the manufacturing front, capacity utilization improved to 73% compared to 64% in Q4.
Speaker #2: We plan to invest around 10 crores to convert 1 million meters of existing ceramic capacity to GVT, this is in line with our disciplined approach to capital allocation, where we prioritize maximizing the utilization of our existing assets before investing into incremental capacity.
Speaker #2: The conversion will also enable us to improve our asset utilization and enhance our product mix and capitalize on the growing demand of premium products.
Speaker #2: Overall, the continued improvement in profitability cash generation, manufacturing efficiency, and benefit strength gave us confidence that the business is well positioned to deliver sustainable and profitable growth going forward.
Speaker #2: With this, I'll request moderator to open the floor for Q&A. Thank you.
Speaker #1: Thank you very much.
Speaker #3: Thank you.
Speaker #1: We will now begin with a question-and-answer session. Anyone who wishes to ask a question may press star and then one on their touchstone phone.
Speaker #1: If you wish to remove yourself from the question queue. You may press star and then two. Participants are requested to use hand fits while asking a question.
Speaker #1: Ladies and gentlemen, we will wait for a moment while the question queue assembles. Again, to register for a question, please press star and then one now.
Speaker #1: Your first question comes from the line of Guneeth Singh with countercyclical PMS. Please go ahead.
Speaker #2: Hi sir, congratulations on a good set of numbers. So, how much of a price hike did we take in Q1? As compared to, say, Q4 or Q1 last year?
Speaker #3: So, in totality, we have taken a price increase of around 18 to 19%, vis-à-vis pre-war situation. And, we were able to basically get almost all of that.
Speaker #2: Got it. So, now that the gas prices have fallen, because of, I mean, the Middle East situation getting better, so will we still are we still able to sustain these higher prices, or, I mean, have we taken any cuts in Q2, or do we plan to take any price cuts?
Speaker #3: So, as of now, the situation is very volatile. The gas prices continue to remain volatile. Availability of propane is still not people are not very sure of that the continuity on availability of propane.
Speaker #3: So, as of now, there are no price cuts that we have taken. We'll continue to watch the market and decide, basis, the gas prices going ahead.
Speaker #2: So, what were the gas prices in Q1 for us on average?
Speaker #3: On an average, it was around 60 rupees.
Speaker #2: And how are they currently,
Speaker #3: So, currently, also, there is not not much drop there. One or two rupees here and there. But currently, those prices are currently sustaining.
Speaker #2: Got it. And, I mean, if, tomorrow the gas prices go down, then we would have to take price cuts, or do you think that we would be able to sustain these higher prices?
Speaker #2: What's your take on that? Given the current demand and supply dynamics and.
Speaker #3: Because it will it all depends on how the industry works, how how the prices move, with within different geographies, price cuts happens only in Moerby, happens all across.
Speaker #3: It all depends on that. So, too early to tell that what will happen in future.
Speaker #2: Got it. And in Moorby, did we see any plant shutdowns in Q1, and, I mean, how is the, situation there?
Speaker #3: So, plant shutdowns were rare, from, I think, end of March, till mid of May, there there the plants were shut down then. But post that, the supply situations have resumed.
Speaker #3: And, there is no, problem in terms of availability of gas or propane. So, so currently, the plants are running, at capacity in Moorby. Initially, there were there were some problems initially on account of gas, then on account of labor.
Speaker #3: But post 15th of May, I think the situa supply situations have improved.
Speaker #2: Got it. And currently, I mean, with the higher prices, I'm sure Moorby players would also have hiked their prices. So, what kind of a premium, do we are how I mean, how much higher are our prices as compared to, the Moorby players?
Speaker #3: I think it depends on product to product, but, our so the gap between our prices and Moorby prices have come down. So, if it was, so if it was, say, the gap between us and them was, say, for example, 100 rupees, the gap has come down to 50, 50, 55 rupees.
Speaker #3: So, which is a positive for organized players like us. And, there is one more thing which is playing out, which is which is good for, the organized players is that, other than other than so one, one advantage that the organized players have is the advantage on account of this gap being reduced between Moorby as well as organized players.
Speaker #3: The other thing that is increasingly, visible is that the, the dealers are basically are looking at, diversifying their sourcing, by any by adding additional, suppliers to their city.
Speaker #3: And they don't want to be dependent on, say, one geography like Moorby. because of what what has happened recently, they want they want supply security.
Speaker #3: And that's the reason they are adding, more, geographically more sourcing locations.
Speaker #2: Got it. And in terms of demand, I mean, what were the main drivers of, 23% higher volumes? And if we look at, I mean, project completions, and end-user demand for us, so do you think that, I mean, we such growth is?
Speaker #3: So, see, they are basically two, broad buckets or two broad reasons because of which, we have seen, increase in demand. One of it is, what has happened in the market.
Speaker #3: we all know that, Moorby was, shut down for half of, quarter one. And, that did create, supply vacuum, supply gap, in the industry. which is something, which, we, with our, lower than most, companies dependence on, Moorby.
Speaker #3: We, we benefited, from that. That was one part of, one part driving the 23% growth. the second part, would be, a unique to OBL.
Speaker #3: that would be, because, of a sustained efforts on, demand generation. See, what happened is, when prices were going up, with a lot of uncertainty, the dealers were, not very sure about, stocking up.
Speaker #3: They always thought that, prices would come down 15 days later, or, you know, next month, and so on and so forth. but, with all the work that we have been doing on demand generation, our teams were able to go to the dealers and tell them that, look, whatever you are buying from me, I'm going to ensure that, 35, 40 percent of that, I am selling out, in your name, through projects, through our, online, tile, e-commerce, initiative, tile card.
Speaker #3: So that has also helped us. Dealers felt, very secure, knowing that, you know, almost, 40 percent of what they were buying from us, would, be sold out by the companies, team itself.
Speaker #3: So their, inventory levels, were not getting blocked. Their capital was not getting blocked. so this, this plus whatever we are doing on the brand side, we have been, we have been on TV 24 by 7, for, more than a year now.
Speaker #3: So all these factors come put together, helped us, get to this 20% volume growth figure.
Speaker #2: Got it, sir. now with the Moorby supply coming in, I mean, I'm, the growth in volumes might not be that much. But with your in, in, initiatives that you've taken, I mean, is there some kind of a volume growth that you are looking at for the current financial year?
Speaker #3: So, so we have consistently, stayed away from, providing any future guidance. And, more so at this point of time, when things are, so volatile, the news from, Middle East changes, almost every few days.
Speaker #3: So we will stay away from that. But I think, what I would like to tell you is that, we are very sharply focused on some on these input KPIs.
Speaker #3: which we are driving, which is in terms of, you know, as I said, our own initiatives, the internal initiatives to generate, certainly sales, of how our dealers are stocking up, how our dealers are using our tools for the, for the reaching out to more customers.
Speaker #3: And, we continue to see, good growth rate in those, input KPIs. So from these, indicators, the early indicators, we are kind of, optimistic and confident that, we will continue to grow strongly.
Speaker #2: Got it, sir. thank you very much, John Maldecu. I wish you all the best.
Speaker #3: Thank you.
Speaker #1: Thank you. A reminder to all the participants: if you wish to register for a question, please press star and then one. Your next question comes from the line of Ashwat Rajan with Arihant Capital Markets Limited.
Speaker #1: Please go ahead.
Speaker #4: thank you for the opportunity, and, I congratulate the management on a good set of numbers. my first question is, on the Bura plant, I just wanted to understand, what kind of numbers, utilizations, and some specifics on the same issue could help us share some detail or share some color on the same.
Speaker #3: So, Ashwath, good evening to you. Ashwath, we have, you know, we, we, we very often produce in a particular plant and move it to another plant of ours.
Speaker #3: To sell from there for that market. So, you know, that's why a plant-level capacity utilization is actually misleading, because it might go down dramatically in a quarter for a simple reason that we decided not to produce that product in that plant.
Speaker #3: But I think if you are, you know, Dora, expansion, for the last three years, the logic with which we had done that was, to focus on the south and the west markets.
Speaker #3: So maybe, I think you're, you will get your answer if I tell you how south and west markets have been performing for us. that would help you more and give you a better handle on this rather than, the utilization number at Dora, which is not, okay.
Speaker #3: Yeah. So, so I'm talking about the retail business. I've left the enterprise, business out of, this. So our south business, grew by about 37 percent, in volume, in quarter one.
Speaker #3: Our west business grew by about 60 percent in, volume. So, you know, our growth has been, faster. Growth has been stronger. In, these two territories, where historically OBL has been underrepresented.
Speaker #3: this is, this is a good, you know, sign for us. August 12 for, the future.
Speaker #4: Okay. Thank you, sir, for that. just, to further on the Dora plant only, I wanted to understand, like, what percentage of our GBT today is supplied from the Dora plant one?
Speaker #4: And, if you could quantify on its EBITDA levels, that would be really helpful. Or its contribution to the EBITDA.
Speaker #3: So I think, so we had about, you know, 47 percent by value of our sales in quarter one was GBT. So I think, about, 15 to 20 percent of that would be coming from, Dora.
Speaker #3: and, balance, bulk of the, rest would be coming from SKD. And there will be a very small percentage, maybe 4, 5 percent low single digit percentage, would be sourcing out of, Moorby.
Speaker #4: Okay, sir. And, could you also help us with, our blended utilization levels? What it was for, for Ashley or, 26 and what it is for Q1.
Speaker #3: So, capacity utilization last year was 60 percent blended. Which is 73 percent in this quarter. So we have, we have, I think, to grow, Ashwath, so I think that's, that's one, that's one positive.
Speaker #3: That there is headroom to grow. And, one of the, one of the lines which we were using, politically, we have decided to convert that, that the ceramic line.
Speaker #3: we have decided to convert that, into GBT. Which would, you know, further help, drive our, capacity utilization in, quarter three quarter four.
Speaker #4: Okay. just, a question on our project and retail split. there was some, outlook on the industry of an uptick in the retail, on the project part of the entire dynamics.
Speaker #4: So just wanted to understand, Orient Bell's outlook on the same and, what kind of percentage split are we looking at, on the project end going forward?
Speaker #3: So Ashwath, see, we have historically been, strong on projects. And, we, we do projects both through our direct team, which is a key account management team, the enterprise team.
Speaker #3: And also through our, dealers. So, you know, we have, historically in all calls, the kind of, taken a split of, I think, 3,000 meter, and above as a, as a project was all smaller projects get done through retail.
Speaker #3: So if we were to do this split, I think, for quarter one, our, project revenue was 18 percent.
Speaker #4: Project was 18 and,
Speaker #3: So 18 percent, which includes, projects which we have done through retail, greater than 3,000 meters. billed volume. And also the project which has been projects which have been done by key account management.
Speaker #3: to your second question about, what is our, lookout, I think we have grown, faster for the last few quarters, not just quarter one. But actually last financial year also, our growth has been, faster in the retail segment than in the, you know, the enterprise segment.
Speaker #3: this is something which we are focusing on now. And, we plan to, you know, build up, some extra value volumes from the, the enterprise, which is a large builder, segment.
Speaker #3: But we don't have a, we don't have a target percentage, so to speak, that, you know, that this will be 80, that will be 20, or whatever.
Speaker #4: Okay, sir. Understood. And one last question I have, on the inflation of gas, have we have, have we absorbed the entire brand in quarter one or, do we see a drag in the next quarter as well?
Speaker #3: I did not understand the question, Ashwath.
Speaker #4: So, what do you mean by drag,
Speaker #3: The, the gas cost, the inflation gas cost, do we, do we foresee this to pertain in Q2 as well, or, do we see a larger chunk of it, settled in Q1?
Speaker #3: I think it looks like that the bulk of the price increases on gas, seems to have happened, in quarter one. now it is kind of, more or less stable as Anuj was saying that, may, maybe one or two rupees, here and there, small, a few percentage points here and there.
Speaker #3: So, so as of now, we see stability. But, but, you know, as mentioned before, if anybody's guess, what happens, what, what happens in the larger world, what happens in, Iran and where we are, we are now seeing, for last few weeks how, how refineries in, Russia are being, destroyed and the, I believe they have lost one third of the refining capacity.
Speaker #3: And what impact it will have going forward is like anybody's guess. But given situation, so far, I think, July, I would say that the gas prices have been, have been close to what, what, we had in, quarter one.
Speaker #3: No, no, thank you.
Speaker #4: Thank you for taking the time. I'll come back to the question.
Speaker #3: Thank you.
Speaker #2: Thank you. Your next question comes from the line of Apurva Sharma, with Ras Capital. Please go ahead.
Speaker #5: hello. Am I audible?
Speaker #3: Yes.
Speaker #5: Yes. Congratulations, everyone, for the great set of results. Some operating leverage we have been waiting for since a very long time now. So, my first question would be, this quarter we had a benefit of both price volume and the price hike that we discussed in last quarter.
Speaker #5: And, in last quarter as well, I think we briefly discussed that the effect of the price hike doesn't sustain for more than three, four, maximum five months.
Speaker #5: But now, looking at, looking at the, the macro events, it, it still looks like the hike situation is here to stay for maybe another one, two quarters.
Speaker #5: Are we, are we still on the track of maintaining these prices? The hikes that we have taken up?
Speaker #3: yes, we are. So far, so good. but as I said before, you know, we are, we are watching the market. We don't want to kind of get, locked into a position if the market changes, in, in a certain direction.
Speaker #3: Then, we would follow suit. But, as things stand, today, we are more or less, on course. To, to on course to retain, the margins.
Speaker #5: Okay. Sir, another thing, our gas contracts are with GAIL, GSPC, or both of them?
Speaker #3: with, GAIL.
Speaker #5: GAIL. what, what I have understood from.
Speaker #3: GAIL, GAIL is, just, Apurva, in, Morbia, GAIL is, tie-up with the Gujarat Gas, for that outside of, Morbi. It is all with, Gas Authority of India.
Speaker #5: Okay. I mean, okay. what, what I have understood, through, through some of the manufacturers in Morbi, that, once the gas prices which was 42, 44 per cubic, has in, in these times, I have even gone up to 69.
Speaker #3: So we have.
Speaker #5: I think the last week rate has slided up a bit. Now, given, given the situation in Morbi, what, what does, the, the north side of gas prices usually fluctuate at?
Speaker #3: we didn't get that question, Apurva.
Speaker #5: No, no, I just wanted to understand the kind of, the kind of gas hikes we had in Morbi. How does it work in the north side, where, where our Secunderabad plant is right now?
Speaker #3: Okay. So Secunderabad, before, the, war, the prices were somewhere in the range of 44, 45 rupees. And currently, they stand at 60, 62 rupees.
Speaker #3: Again, it's a formula-based, depending on, your ye usage, in the preceding six months, basis that they were, they were formula that till this level, they'll give you at, the rates prevailing basis, the brand rate, beyond that, there are spot rates that apply.
Speaker #3: So broadly, from 44, 45 to 60, 62 rupees is the how they have moved from pre-war to the current levels.
Speaker #5: Okay.
Speaker #2: Apurva sir, you have any further questions? Mr. Sharma, you have any more questions? Since there is no response, from the current participant? We'll move on to our next question.
Speaker #2: But before we take the next question, a reminder to all the participants that you may press star and then one to ask a question.
Speaker #2: Your next question comes from the line of Sagar Jatta, Jatta from Marine Research. Please go ahead.
Speaker #6: Hello. Congress on said set of number. Thanks for opening. I had only one question. In Morbi, in last five, six months, well, for up and in freight rates going up, in Morbi, exporter current ground activity, any chances to require export?
Speaker #3: Any chances to, what is the question? Any chances to?
Speaker #6: Yes.
Speaker #3: Oh, could you repeat it?
Speaker #2: Could you repeat your question?
Speaker #6: Sorry. Audible?
Speaker #3: Yes.
Speaker #6: In Morbi, the last five, six months, well, war happened, and freight rates are significantly increased. Exporter current are up. Any chances to export market?
Speaker #3: I'm sorry, your voice is garbled up. I cannot understand the question. Something would.
Speaker #5: are you, are you talking about the how, how is exports doing currently?
Speaker #6: Yes, sir.
Speaker #3: So, exports, in so, so whatever data that, that we have for, first couple of months for the year, exports is down, which was somewhere around 1,500 to 1,600 crores a month.
Speaker #3: April was somewhere around 500 crores. And May was somewhere around 1,000 crores. So averaging 800 crores in the first two months of the, year.
Speaker #3: And, because of the elevated trade cost, and when this, geopolitical tension in West Asia, the export market continues to be down, primarily in the regions like Gulf and all, where the freight costs have actually gone up from, at least five to six times.
Speaker #6: Okay. Next question.
Speaker #2: Thank you. Participants, to ask a question, you may press star and then one. Your next question comes from the line of Saurabh Jain, with sequent investment.
Speaker #2: Please go ahead.
Speaker #6: I said I couldn't hear. Just congratulations on a good set of numbers. Can you give guidance for revenue FY27 and EBITDA margin for this year?
Speaker #3: as a policy, we do not give any guidance, for future.
Speaker #6: Okay. And for margin?
Speaker #3: Just same, same, same. Both for top line and margin, we, we do not provide a guidance.
Speaker #5: So like, we mentioned earlier that, we, don't give any future guidance. However, we are encouraged with the continued sales momentum, and the performance, trend, over quarter on quarter, for last three-four quarters.
Speaker #5: We continue to focus on strengthening our input parameters, like Aditya mentioned, related to demand generation, customer engagement, market penetration. And all these parameters currently, the KPIs that we track are currently, showing positive results.
Speaker #5: So we are hopeful, that, the year will perform better. But, no, no, no particular number or, or, or a guidance for the balance of the year.
Speaker #6: Okay, sir. Thank you.
Speaker #2: Thank you. Our next question comes from the line of Ashwat Rajan, with Arihant Capital Markets Limited. Please go ahead.
Speaker #4: Yeah. Thank you again for the follow-up. I had a few questions on, one, I just noticed we do have a significant amount of cash on our balance sheet.
Speaker #4: I, I believe it's around 75 CR. Just wanted to understand, the management's outlook on where can we productively use the cash that we are sitting on at this moment.
Speaker #3: Well, yes, sir. hello. Can you hear me, Ashwat? So we have there, there are some small capexes we are, we are currently undertaking. over the next, you know, four, four, five months and all, which will cost us maybe broadly about 15-odd crores, which will be internally financed.
Speaker #3: That's one distinct. secondly, we are, actually in the looking at, the next phase of growth, we are looking at, what and where we should what we should we do, doing in terms of, of expanding our manufacturing, capabilities.
Speaker #3: So that is, something which, we are engaged in, now. And, hopefully, we would have decided, over the next, two or three months, and we would be able to, answer you.
Speaker #3: But broadly speaking, the, the cash that we are holding is something which we want to invest back into the business. Exactly where is a is a question that we are trying to debate internally.
Speaker #4: You plan to get like a note? Hello? Hello? I'm audible?
Speaker #2: Ashwat sir, can you repeat your question?
Speaker #4: Yeah. I, I just said, you said hello?
Speaker #3: Mm-hmm. Ashwat, can you hear me?
Speaker #4: Hello? Is it better?
Speaker #3: Yeah, you are audible.
Speaker #4: Yes, sir. sir, I just asked, on the 15th-year capex, you said this would be on a new plant, or, would this be for maintenance?
Speaker #3: No, no, no. o. So, so this is this is so, so for example, I just spoke about we are converting one of our, underutilized ceramic lines into GVT.
Speaker #3: That, that's one capex. We are, changing some, digital printing machines and all. We, we are ch we are adding some polishing machines and all of that.
Speaker #3: So balancing equipment, and, equipment that we feel, that the DPM that we have, we want to replace it with a with the latest model to kind of drive, product, enhancement.
Speaker #3: So this is what we are doing. So that is that is but that is just say about 15-odd crores. which will, go from this.
Speaker #3: The larger part of this, money that we have on our balance sheet, we are, we want to invest it into the business, and we are, we have various, options that we are debating, between.
Speaker #3: we will, announce it to the market, I guess over the next, three, four months.
Speaker #4: Okay. Got it. answer on, our tile, this is front, as, we see a must bond SKU kind of thing, on our PPT presentation. So I just wanted to understand what kind of progression do we have from here.
Speaker #4: On that, and what kind of investments have we made, going ahead?
Speaker #3: So, so, yeah. So Ashwat, we have, done a two and a half crores, in quarter one. we, we started a very small scale, it is a, a 100% cash and carry business, for us.
Speaker #3: And, we have been, kind of, working on the product mix and all of that. So a slow, start. No major capital expenditure because we have not, invested in, a plant of our own.
Speaker #3: So, so nothing very big on that. but, the way Vitrified Tiles, are, taking up and, with, with our dealer, reach across the country, we want to build this comp this, particular product, quarter on quarter.
Speaker #4: So we've been steadily, working upon, increasing the geographies. So we started with a select, geography in north. And, now we are focusing to scale it up to North India as well as some part of East.
Speaker #4: In the in, in, in the current year. Okay, sir. And, another question I have on, the price hike that the industry has taken as a whole.
Speaker #4: do we foresee this to pertain ahead, on the price hike front, or what kind of trajectory are we looking at? Or do we see it to?
Speaker #3: So, so, that's a that's a see, see, that's a difficult one to kind of answer. the, the performance, across companies seems to, to, to differ quite a lot.
Speaker #3: Even among the listed, companies. So difficult to say what strategies they will, they will take, going forward. But, only thing which I can say is that, our strategy will be A, watch the market, and if, there is, a softening of price, or, or of selling price, then we have to be competitive.
Speaker #3: So, so we are very clear about that. we will keep a close watch on what happens in the market. and, we will, focus on our, internal initiatives which I have talked about, things like tile cart, demand generation, brand building, digitization, and all.
Speaker #3: To pick up, market share. So, so that is our strategy. Be competitive and then work on, your internal processes, to pick up, volume share.
Speaker #4: Okay. Okay. So noted. And, one last question, just wanted to understand a lot of our dealers have, have made, some incremental investments on the pathway front.
Speaker #4: so just wanted to understand, do we have an outlook on, putting two pathway in any way?
Speaker #3: So, so currently we don't have any plans to enter, pathway. Our focus remains centering on our additive segment, which is closely allied to tile ecosystem.
Speaker #3: And we see significant opportunities there. So as of now, focusing on tile spread additives only.
Speaker #4: Okay. Okay. Thank you, sir. Thank you for taking my questions.
Speaker #2: Thank you. A reminder to all the participants, you may press star and then one to ask a question. Is there a no for the questions from the participants?
Speaker #2: I now hand the conference over to Mr. Aditya Gupta for closing comments.
Speaker #3: thank you. Thank you for, giving your time, and, look forward to meeting you a couple of months later. I think October end.
Speaker #2: Thank you. On behalf of Orient Bell Limited, that concludes this conference. Thank you, everyone, for joining us, and you may now disconnect your lines.
