Aaron Industries (NSE:AARON) Q1 2027 Earnings Call

0:05 Good afternoon, everyone, and welcome to the human FY twenty seventh earnings call of Aaron Industries Limited. We sincerely thank you for joining us today. During this call, the management will discuss the company's operational and financial performance for the first quarter of f y twenty seven, followed by an update on key business developments, strategic priorities, and the outlook ahead. Before we begin, I would like to remind everyone that certain statements made during this call may be forward looking in nature. These statements are based on the management's current expectations and assumptions and are subject to various risks and uncertainties. Actual results may differ materially from those expressed or implied. Participants are advised not to place undue reliance on these forward looking statements.

0:55 Please also note that this conference call is being recorded for compliance purposes. Representing Aaron, today we have with us mister Monish Doshi, director and chief financial officer, and mister Parish Nayav, president. I now invite the management team to deliver their opening remarks. Followed by their address, we will open the floor for the q and a session. Thank you, and over to you. Good afternoon, everyone. On behalf of the management of AARON Industries Limited, I, Monish Doshi, director and CFO of the company, would like to welcome you all, the participants, to the q one FY twenty six, twenty seven earnings conference call. Thank you for taking the time to join us today. I will briefly take you through the key financial and operations highlight for the quarter ended 06/30/2026, following which we'll be... We will be happy to address your questions.

1:54 As per the tradition said by AARON, we are pleased to inform you that we have once again delivered a healthy growth in revenue and profitability. Revenue from operations stood at 24.44 crore compared with 19.24 crore in quarter one financial year twenty five twenty six, registering a 27.01% year on year growth. EBITDA increased by 34.83 year on year to 4.99 crore compared with 3.70 crore in the corresponding quarter last year. Our EBITDA margin improved to 20.19 percentage compared with 18.99 percentage in quarter one financial year twenty five twenty six and eighteen point '5 eight percentage in quarter four financial year twenty five twenty six.

2:51 This improvement reflects better operating efficiency and improved contribution from our business operations. Profit before tax stood at 3.46 crore, registering a strong 66.64% year on year growth, while lower interest cost also supported profitability. Most importantly, profit after tax increased to 2.56 crore compared to 1.06 crore in quarter one twenty five twenty six, representing a significant one forty one point nine four percentage year on year growth. PAT margin consequently improved to 10.46 compared with 5.5% in the corresponding quarter.

3:38 During the quarter, our focus remain on improving capacity utilization and leveraging the investment made in our manufacturing infrastructure. We continue to see encouraging opportunities across our elevator and stainless steel business supported by increasing demand and our expanding product capabilities. Going forward, our priorities remain clear, increase capacity utilization, strengthen our customer base, improve operating efficiency, and deliver sustainable growth with healthy margins. Overall, we are encouraged by the performance of quarter one and remain cautiously optimistic about the growth opportunities ahead. With this, I would like to conclude my opening remark. Thank you for joining us today.

4:26 We will now be happy to take your questions. Oh, thank you, sir, for the opening remarks. We will now open the floor for the q and a session. I request the participants who wish to ask the question to please use the raise hand feature. The first question will take from mister Manish. Hello, sir. Am I audible? Yeah. Yeah. Thank you so much for taking up my question. So first of all, congratulations on the good set of numbers. I have a couple of questions, sir. One is you've talked about the international OEM engagements, right, on your previous calls.

5:14 So what is the status? Have you made any breakthrough with the international OEMs for any contract manufacturing? So that's my first question. Okay. Yeah. Good afternoon. Here. On... I would like to give you clarity on the international front. In international, we had focused on Africa, especially Kenya and Tanzania, and we had even participated in the exhibition events over there. So that is a positive momentum over there, but due to their prevailing political and economical conditions, there is not much of a growth in that business over there. So we have had a good breakthrough, but, yes, we are still yet waiting for the development of business over there.

6:13 In Nepal, we are having a consistent growth, and that has continued in this year also. So we are hopeful that this international front will also open up shortly once their conditions also stabilize. But, sir, when we talk about these international OEMs, right, I'm essentially referring referring to these companies like Johnson, Schindler, and others. Oh, I'm sorry. I'm sorry. I I took it wrongly. I'm sorry. See, on the Johnson,, we had a meeting, and even the registration process has started. In Victor also, the registration process has started.

7:00 We have received a few good orders from Fujitech on the street front. And the local national companies, which are not international, but they have a good national footprint. In that, techno and Omega are buying the majority of their sheet requirement from us on the embossed and on the PVD part. So on the international OEMs, the orders have not yet started. Only Fujitech had started. But the process is on. They have taken the samples, and the the vendor registration process has also begun.

7:45 So we are hopeful that, I think, in next quarter, there should be some good business from there. I hope this has answered the Yeah. Hello? Yes, please. Am I audible? Yes. Yes, please. So, sir, with respect to the sampling part that you highlighted, right, is this with the name that you mentioned? I think I heard it as Fujitech. Yeah. Fujitech. Yes. Yes. They have taken sheets from us, and now they are placing regular orders. And they are also planning to get those manufactured from us, but it will take some time because there are a lot of technicalities involved.

8:38 That process is on. Got it. And how about the other players like Johnson, Schindler, and others? They have taken the samples, but we have not yet received the orders. The process is on. But Got it. Got it. So my second question was on the steel polishing division. So when I look at your segmental results, right, I noticed that this division has been making losses since the last three years. So any reason as to why we are not able to kind of make it a profitable one? What are the challenges that we are facing with respect to the steel polishing division? Yeah. Yeah. Hi. This is Monish Doshi. So to clarify that on the losses part, it is not actually making losses.

9:30 Currently, most of the production was... Is being consumed in our elevator division, which is being processed in stainless steel division. So it is an internal transfer which we are doing. That's why the purchases are done on the steel part division, and actual material is being consumed on the elevator part. So to get a better idea, I will I will always suggest to look as a whole business and not as a sector wise. Second thing, we have been started selling sheet products to different market only after fulfilling our in house demand. So whatever we are selling outside is what we don't require or it is more than our requirement for elevated division that is being sold outside.

10:21 So only those items are... Like, only that revenue is being generated with the additional production which we are doing in steel business. Other than that, everything is being consumed in house only. So it is not a loss making division. It is a profitable division if we see as a whole. Got it, sir. Because, I mean, it was appearing as a loss item on the segmental results. So hence my question. Anyways, I think your... What do you say answer helps. If If I can squeeze in one final question, sir. Yeah. Sure. Sure. Yeah. I wanted to understand as to what would be the impact of steel prices on the way we do business with our clients. So is this a pass through from our end?

11:12 And, also, do we reduce prices when steel prices reduce? So if you can explain that a bit as well. Yeah. So in in this thing, we deal in two different ways. For the steel division, it is completely volatile to the steel pricing. So all our orders are also volatile to steel pricing. Like, if the market price changes, we also pass it on to our customers. If even if it has gone up or down, we are obliged to pass it on to our customers. In elevator business, we have a fixed margin and we have a fixed price range where we consider where we don't have to change our pricing immediately.

11:57 So in that case, sometimes we have to bear the losses or we have to even... We can enjoy the profits if the price of raw material has gone down. But that too, at a limited extent, we go. And if we see a huge difference in the pricing policy, then we pass it on to... With our customers in the elevator division also. Got it. And what would be the time lag, sir, in case of, what do you say, steel price increase or a decrease, right, that we wanna pass on? What would be the typical time lag? So, normally, it it is not a defined timeline which we prefer because we also have to keep in check about our competitors also.

12:44 But, normally, if the price increases by, like, more than 10 to 15%, then definitely we execute the changes within a month. Got it. Alright. Thank you so much. I'll join my team. Alright. Thank you. Thank you, sir. We will move on to the next question from mister Roshan. Sir, please unmute yourself and ask the question. Mister Aashnish, no. Alright. Move on to the next question in the meantime from mister Shanki Bansu.

13:52 Hi, Mani. Hi, Praise. Hope you are doing well. Hello, mister Sankey. How are you? Good afternoon. You are doing well. Thank you. Yeah. So I think the company, Industries, have not able to deliver to last year 25% bare minimum growth, which we are expecting. But this year, the q one, the start is pretty well on the note of 27% growth. Correct? So Yes. What is that internal revenue and volume guidance for the '27 and '28? Yeah. So this year, we are targeting around 25 to 30% growth in revenue.

14:39 And the bifurcation of business would be almost similar in a way to last year for the steel business and elevator business. Okay. I think the EBITDA is also bounced back sharply in the q one. So believe that management is able to pass the elevated cost to the interviewer. So what is the sustainable EBITDA going forward? Yeah. So we have been making sure to maintain our EBITDA percentage, like, from around, between 18 to 20, and it has been increasing every year. So we are making sure of doing that. And it is more... Like, we are looking forward with a sustainable EBITDA of this percentage only.

15:33 Oh, percent. 18 to 20%. Yeah. So that is the range which we have been in last couple of years. But if you see over a period of time, we have always managed to improve the margins. So that will be our focus for this year also. Okay. Okay. I'm seeing your investor presentation also, and there is a new production work three sixty fitness shop launched in the previous financial year. You guys have already executed 25 plus project. So just want to know that what is the bigger picture there in next two, three months, two, three year? How much revenue contribution from this product we can expect? And are we making the end to end product of pitless elevator, or we are doing just a cabin and auto door?

16:29 No. In Evoq 360, we are doing complete elevator product. And, like, this year only, we have launched it. And, luckily, we have been getting good response overall from... And India. And we are into discussions with multiple companies for collaborating for their territory. Like, already, I think we have finalized two or three companies where we have finalized the territory as a exclusive partners for those territory. And we are in communication with multiple companies who are showing their interest for the product. For the next quarter, I wouldn't be able to guarantee a huge jump because the project takes time. It is related to, like... It depends on the cycle of the, bungalows and villas, and normally it takes time.

17:28 But, definitely, it will keep on going upwards because day by day, we are getting more and more inquiries, and people are showing positive response in those case. So definitely, by the end of the year, we are planning that it would be around, like, close to one fifty units per... Of home lift. Okay. Because I just want to know that what is the contribution of Evolving q one sales. What is the real economics behind that? What is the margin on this product? And if this product will scale up, whether the margin will increase further or it's a low margin product. So can you talk about that?

18:18 So, basically, it's not a low margin product, and I wouldn't... Like, it is close to around 20 to 25% of margin only for you up. But the doors, cabins, and all are also a part of this, evoke three sixty. So I think the margins would be, in a bigger picture, the margins would see... Stay close to 20% only. But definitely the top line would increase because of that. Now currently, in the last quarter, if you see, I think it would contribute around 10 per... Sorry, five to 7% of the total revenue. Okay. Because I think you guys have just...

19:06 The recent announcement said that you got a exclusive distributor ship from China distributor for this Evoque components. Yes. Yes. Yeah. So we launched this product in February. People, like like, people came to know about it in February and March, and then they started their project according to this product. So till now, we haven't been able to execute many products or dispatch many products out of the... Our factories. But, yeah, we have confirmed orders, and already people are showing so much interest. So we are very positive about this product. Okay. Okay. I will just go in back in the queue. Thank you. Alright. Thank you.

19:53 Thank you, sir. We have the next question from mister Priyanshu. Hi, sir. Hope I'm audible. Yes. Yes, mister Priyanshu. Yeah. Sir, I want to understand about the current capacity utilization and the capacity that we have in Unit 3 after the said automation that we implemented? Okay. So the current capacity utilization is around 50% and close to 50%. I think it between 45 to 50%. And with time, it will keep on improving because right now, we are balancing the production to the demand which we are having.

20:46 So based on that demand, we'll keep on increasing our production. Okay. So, sir, this capacities can augment in both ways. Right? Like, the door and the cabin and at the same time for steel sheet also. Is that a correct understanding? Like, all the machineries are different for each product. So the capacity of sheet production is very huge, whereas we are producing less because of... Like, we have to maintain the whole cycle of production as well as the inventory and everything. But overall, if you see that... If I talk about the whole, then we are around 50% of the production capacity which we have.

21:32 Because it is difficult to bifurcate for each machine and each process. Understood. Understood. Sir, last year, we had this guidance. Like, we will reach around 3,500 door utilization. Right? So Yes. Are we in line to achieve that by December end or how far will? Yes. Definitely, we are moving towards that only. But as I tell... Told that we are also increasing our market reach, and we are trying to penetrate different regions from where we can get maximum maximum orders. So currently, our production is aligned to the demand which we are receiving because we don't want to go into our production and our inventory as it is blocking our working capital.

22:19 So we are aligned to that, and we are focused in that way only. And we are going towards 3,500 production per month, and I'm pretty sure that we'll be able to achieve that in coming quarters. Okay. So by December end, can we assume, like, previous guidance or it will be slightly more based on your understanding? Yeah. Positively, we are looking towards that. I think we can achieve that if market conditions are good and if we are able to correct that much orders. Okay. Sir, last two smaller question. The elevator that we are reselling now as a full unit now, so can you give us some sort of color in terms of pricing versus other competitor in the market? Like, on how... Like, on what range, basically, we like more than average or utility in terms of just pricing.

23:21 Okay. So it is more of a premium product which we are offering for home lives. So the pricing would start from around six legs per unit and depending on on the project size, like how many flows there are and what kind of... Because there are many technical aspects, what kind of product they want. It goes to around eight legs or nine legs also. But, normally, an average price per product would be around $6.06 to six and a half legs where we are getting the maximum orders right now. Understood. Understood. And this is only for the components because we are not into installation of CompleteLift. So Mhmm. The end product after installation would go around, I think, nine, nine and a half legs or so.

24:12 Okay. So the partner that you will Yeah. Harish, the competitive product in the market at present are at... In the range of 10 to 12 lakhs, Whereas the end product after installation cost and all that, our lift will cost only 8 to 9 lakhs. So it is quite well placed and with better features than what the other competitors are providing. So we have a good positive forecast for that. Understood. Sir, then the end installer or the EPC player, right, who will install this elevator, Those distributor will be common between... For our elevators and other elevator. Is that a correct understanding, or this also has a different deal... Dedicated dealership?

25:04 No. So for this home lift solution, we'll be only focusing on few ex... Exclusive exclusive partners which we have in different territories. And those companies will only be, like, working in the projects. Like, they'll be installing the lifts over there. And it is like an complete solution for an homeowner where we have identified all the issues for the lifts, like, for the home lifts, which they are facing, and we have developed the product based on that. So if I'll tell you about the competition, then you might be knowing about Nibove and Elite Elevator. So these companies are such that which are providing the same solution, but we have an advanced feature with our HomeLift than what they are providing.

25:59 Okay. One more competitor said, this LTE Elevator also has partnered with one South Asian com... Company, right, where they're also planning to introduce this home elevator only. Right? Yes. They have, I think, partnered with Ricardo. Ricardo. But they have a different product than what we are offering because even though though it is for home lift, the design and the technological aspects are a little bit different. For example, our main USPs that we are providing a battery management system with our lift, which can operate your lift for 100 times without the power also. Wow. So that is the main USB which we are offering, which currently no other company in India has it right now. They are only just providing battery backup system, which powers your lift for a limited time period.

26:52 But in our product, we are providing for a 100 cycles. And they're too cost competitive. Right? Like, Ricardo's elevator will be slightly more cost cutting. I'm not aware of their price point right now, but definitely, it it is because we have been getting positive response overall. So I think we are at a better price range than them. Okay. Sir, what is our current dedicated dealership that we have secured as per, like, current district? And what is our goal for next two year maybe? So dealership per se means for the evoke or for all the products?

27:38 Just for the evoke, sir. Just for the lift dedicated dealership. See, evoke at present is open for anybody who wants to sell, but we have tied up by exclusively with four to five partners in different state where they would be only selling evoke. We have... We are not giving it to other partners in that state. So that tie up, we have done so that the exclusivity is managed and product value is... Does not get devalued. Like, if there are too many people, then it is, again, a price war. Whereas, it is such a premium product with such good features. So we have taken this strategy that we will not give it to everybody.

28:25 So the qualifying process is going on. So we have done tie ups with four or five, and it is still going up. Okay. Sir, because from market penetration point of view, this number will be critical, sir, for us investor to track. So request you to please publish this data, sir, going ahead. Like, many new How how many new doing it regularly whenever we declare our details, we'll surely declare this also. Okay. Okay. Sir, one last question. The component, like, in the... In our press note also when we had this secured the exclusive dealership for Ivico. So what exactly is the raw material that we are procuring from China?

29:16 Can you also mention the percentage of cost in, say, bill of material or in the cost that we incur in our side? And is there any plan to in in... Make make those component in house, sir? Can you give some light on that? We have done... For a work, we have done a lot of development on our own. And what all we import, we cannot disclose everything at... In this forum. But, yes, we have done a lot of indigenous development, and we are importing few from China. Okay. In term of cost also, sir, can you give some rough estimate, if not exact company names? Cost means around 40% we do the import. Otherwise, balance, we have done our own development.

30:07 Okay. Sir, any indigenation plan also, like, going ahead? Like, are we Yeah. We have done lot of indigenization. The battery itself, which is the main heart of the whole thing, is indigenized. We We have have developed it ourselves. And this 40%, sir, we're also planning to reduce it over the time. Right? Once we Yes. Yes. Yes. Yes. Yes. Yes. Our r and d team is working on it. Okay. Okay, sir. The very great results, sir. Congratulation again, and thank you for this opportunity. Thank you. Thank you. Yeah. Oh, thank you, sir. We have a few questions in the q and a tab. I'll just read out the question. Since Telx has been developed primarily for stainless steel sheet designing and the division is currently operating at full capacity for internal requirements, when do we anticipate expanding its capacity to cater to the broader Pan India market?

31:04 Given the relatively limited competition in this segment, what is the company's strategy and timeline for scaling up this division? See, I would like to give clarity to everybody. Is not another product line. Stellix is a branding strategy. We have done the branding for our stainless steel products that we would like to sell outside to the elevator market and to the interior decoration. It is just a branding part. Stellix as a brand is only for the SS sheets that we manufacture at our own place. It is not a separate manufacturing setup. So I think that makes it clear.

31:54 Oh, okay, sir. Moving on to the next question. The l and b creative app has been launched recently. So do we think that this will help us to shorten the sales cycle or a measurable lift inquiries? We will be... Make a better understanding. Yes. So our own big creative app is to visualize the whole product to which we are selling because we are daily dealing with elevator companies and they are dealing with their customers. Normally, a homeowner is not able to visualize the whole product, like how it will look, how the cabin will look, and what will it feel like for a rose gold finish or a golden finish.

32:45 So to better visualize it, we have developed this app for our customers. So in a in a way, it is definitely helping to close sales fast because our customers, like, our customers, which I live with the companies, they don't have to, like, try to explain how the cabin and how the door system will look. They are able to provide them the... They they are are able to show them through our app. So in a way, it has helped them in closing sales faster. Also, we keep on updating our new designs on the app. So every now and then, whenever we develop a new design or a new type of cabin, we push it in our app and everybody gets to know about it. So in that way, we are able to push our new products and new designs efficiently.

33:38 So in that way, it is helping us a lot. And also, we have provided more details about evoke, and we have also uploaded video shots on that. So by using that, most of our customers are able to place order correctly and fastly and efficiently. Okay, sir. So we have the counter question from the last participant related to Stellix only. So that is what I wanted to understand. We have created a brand. The demand for SSH is there as there is less competition. So when we plan to scale this segment... Yeah. We are... Certainly, this brand itself was brought into picture to scale up our business because we are supplying to the elevator segment also.

34:37 So the elevator manufacturer, they also have some apprehension, like, if they take a product catalog of AARON and show to their customers, they used to sell that we use... You should give a different brand name for the sheet business. So that is why we came up with this idea, and we made a separate brand for this. And we are... Like, elevator, we are also appointing the traders to promote our sheet business. And it has been quite successful, and it is in a positive manner. So you will see good growth on the sheet business also.

35:25 Okay. Thank you, sir. We'll move on to the next question from mister Kartik Bhatt. Okay. So please unmute yourself and ask the question. Yeah. Are you... Am audible? Oh, yes. Sure. Yeah. Yeah. Yeah. So so we've introduced this new Evoque three sixty HomeLift. So I just wanted to understand what is the approximate addressable market in India, if you can throw some light on it. And what is our right to win as such? I mean, are we competing on technology front, or are we competing in lesser penetrated markets like tier three, tier four markets? And are we price competitive as well? Yeah. So Evoq three sixty has been developed with an idea of, like, targeting the issues which traditional lift had for home lift.

36:18 So in that way, we have been able to solve maximum issues which traditional lift we are not able to solve. And because of that only, we are getting good response in that. Currently, it... There is not a big challenge of promoting Evoke right now, but because the construction had started with the traditional design, many projects are not viable right now. Like, new projects which had already been working from last two years, they are not able to incorporate Ewap three sixty right now. But with time, the projects will be redesigned as per this because this is more space efficient and also more premium looking.

37:07 So gradually, people are shifting their mindset and people are started opting evoke instead of the traditional lift. And with time, as the awareness grows, more and more people will be interested in that. Also, we are focusing more on tier two, tier three cities right now for this because it is a home lift solution. So either bungalows or only duplexes are, like, prominent for us for this product. So our major focus is is on this tier two, tier three cities only. Because over there only, the bungalow culture is more in the development of such societies where the building... The home is of around two g plus two or g plus three, and they require a lift over there.

38:06 Does it address your question, sir? Sir, I think there is some technical issue. Yeah. Yeah. Yeah. Okay. Okay. Sure. And, sir, how big is this premium home lift market in India? I mean, do we have some kind of a ballpark number or, Amit? Could you repeat it again, please? Sir, how big is this premium home lift market in India? I mean, how big is this market segment in India? I mean, any any color on that? Or As How big is this market in India? Yeah. Hello. Yeah. Harish here. See, as Manishwai gave the clarity, the premium elevator market or if you say the home lift market is now growing a lot.

38:57 That... There are two things which has changed. One is that people people have accepted this as a necessity and not as a luxury. Second limitation, if you see in the larger cities, the tier tier one cities, the land costs are so high that people, they prefer to live in a building. So... Which has got a g plus 10. Now it has even going to g plus 30, 40. So over there, this product is not designed for. This is purely designed for maximum g plus three. So in a way, that is a limitation, but that demand is now growing. People are... Have started installing.

39:44 So if we look at the overall elevator market, this will be a small percentage. This will not be a huge percentage. So we cannot expect very high growth from this. Okay. Sure, sir. So you mentioned about you mentioned about adding more distributors across both elevator and stainless steel sheet business as one of the drivers, I think. So I just wanted to... If you can quantify a little bit as to how how strong is our network currently, and how many do we intend to add maybe in in this year? I mean, is is that possible? Or Yeah. I'll I'll just give you a rough estimate. Like, today, we are presenting all the states of India.

40:40 We have got more than 750 customers who are regularly buying from us. Out of the 750 customers, there are more than 80% who are very consistent regularly buying from us. We have our warehouse setup in Ahmedabad, Calcutta. We have traders in all the major cities. If you say in MP, we have Indore. Raipur has recently started. In West, we have... In in in Gujarat itself, we have got many big clients. Then in Hyderabad, we have our trader. Then in Bihar, we have in Patna, our traders.

41:27 So that way, we have covered quite a lot, and we are still appointing more and more traders in the North Region for a better development. We have very good presence in Bangalore, Belga. Okay. Okay. Sure, sir. Thank you so much. Yeah. Thank you, sir. We'll move on to the next question. From mister Manish.

42:17 Hello. Thank you, ma'am, once again for the opportunity. So, sir, we were exploring and railway, what do you say, opportunity. Right? So anything on that front? Has anything rectified? Railways, yes. We have explored, but railway, they have got a very long process of vendor registration, and they have got too many vendors who are from the government sector itself. Like, for the steel, the the... A lot of procurement happens from sale. And so, yes, still we have applied in railways, but we have not yet received any orders from there. The work is in progress, but Okay.

43:18 And, sir, your p p says that 40 to 50 percentage of the components, right, which go in making elevators all produced in house. So are there any products which are still left of... Which you wanna kind of get into, which is in the pipeline? At at present, all the mechanical parts are made by us. But the other parts which are major are, like, the rails which are installed for the movement of the cabin. Then that that... That's a steel cable, which is used. Then there are electrical cables. Then there are electronic panels. So these are the things that we do not plan to enter into at present. But, yes, on the mechanical parts, we have gradually introduced lot many products, and we'll keep on introducing much more in future.

44:19 Okay. After you commissioned unit three, you said you are able to offer a few more services. Right? So what are those exactly? No. Few more. It is not few more services. Actually, unit three is more to enhance our production of doors. The salvaging machine which we have installed gives... It is a fully automatic machine. So the door production has gone up because of that. And in future, we can even look for sheet metal fabrication. If we diversify into other products, the same machinery can be used. Got it. Alright. Thank you so much, sir, for your responses.

45:06 Okay. Thank you. Okay. We'll move on to the next question from mister Shanki. Yeah. Hi. Thank you for the opportunity again. Just want to know this Webex division regarding this SST sheets. I just want to know that when we spoke in the previous Gong calls, then we are the only one setting to Gong, which has too many very long and the captive. And the... You can see customization also. So what is the contribution of sales of SS sheet to outside the the... To the final consumer in Cuba? What is the first and third?

46:02 So are you asking about the, like, revenue from selling steel in quarter one? No. Only from emboss and designer sheets. For emboss and designer sheets, I'll have to check, but it is around, I think, around 10 to 15% of quarter one sale. Yeah. Because I think that that product is carrying more because that is the only thing which we are doing after general, and we have a lot of customization capability also. Correct? So Yes. My point is that why we are not scale up meaningfully in that segment? Is there any hurdle or the customer acceptance? Because we are saying that in the previous con call that we are pitching to interior designers and architect also for selling of these designer sheets.

47:02 Yes. So the... It is not that there is... The demand is not there, but because of the current, like, global conditions, the steel prices had been fluctuating from last three to four months. And because of that, overall, the utilization and overall, the procurement or even the sales of steel business was down because of heavy fluctuation in pricing. But now, gradually, it is being... Getting stabilized. And so we have... Like, as we told that we have already approached Fujitech, Omega, Techno for embossing and, designer sheets, and they have shown positive note on that.

47:48 And they have also shown interest, and they have also procured from us in past month, but the quantum was less because of the price fluctuation. So in coming months, it will definitely go up. Okay. Okay. And in the investor presentation, management has highlighted regarding the additional senior sales staff across Punjab, Haryana, UP, and there is a geographical expansion also through trader tie up. Just want to know that since we have hired a senior staff, so the elevated employee cost is already factored in in q one, or it will be increasing coming quarter?

48:34 It's factored. It is already factored in q one. Okay. Okay. And one last thing, I think now the company is in a position to cross the... Another milestone of 100 to our top line maybe in next quarter. So just want to know that once we cross 100 CR, so the requirement of working capital is also be going to be increased. And we have seen that short term debt of the company except for an increasing y o y basis. So how we have managed to plan the incremental working capital requirement? Do we take more short term debt or any plan for fundraise or something?

49:20 Yeah. So depending on the time of requirement, definitely, we can check which option is better. We might also raise fund from the market or even go with the bank. Currently, we haven't finalized anything in that sector because we are trying to increase our productivity and reduce our inventory days. So currently, we are more focused in that. But definitely, with time, if we feel that because of lack of working capital, we are not able to expand our reach, then definitely we might go for either fundraising or debt. Yeah.

50:05 Because there is so many optionality with our product segment, like, evo designer sheet and the trader trial. So the... It should not be like that that company has a scarcity of working capital and not able to scale up because of that. So that's why that is something which we are keeping in our mind, and we have been... That is the only reason why we are more focused on increasing our productivity so we can efficiently use our working capital. Okay. So thank you and congratulation again. Wish you achieve more in this year. Thank you. Thank you. Best of luck. Thank very much. Thank you so much. Yeah. Thank you, sir. Sir, one more question. With this increase in utilization to 35 every dose per month that we are targeting, can we expect decent operating leverage to kick in by February 7?

51:06 End of February seventh. Sorry. Could you repeat the question again, please? Oh, yes. So the question is with this increase in utilization to $3,500 per month that we are targeting, can we expect decent operating leverage to kick in by FY twenty seven? Definitely. Definitely, we can do that. And as already I told previously that as the demand rises, we'll be able to achieve 3,500 plus doors depending on how much demand we get. So it will obviously give us an additional boost in increasing the revenue.

51:54 Okay, sir. Thank you. With this, we come to the end of our earnings call. I thank everyone for joining us today. On behalf of our... FinPortal, I would like to express our sincere gratitude to the management team of Aaron for their time and for sharing the company's performance, strategic initiatives, and outlook, and addressing all the investor questions. With this, I will now invite the management team for their closing remarks. Thank you everyone for your valuable questions and for participating in today's earning call. We appreciate your continued interest in AARON Industry Limited and the confidence you have placed in the company. We look forward to continuing this journey together and delivering sustainable value to all our stakeholders.

52:44 With this, we conclude today's conference call. Thank you once again, and have a great day. Thank you, sir. Thank you to the all, all the participants for joining us today. If any question remain unanswered, please feel free to reach out to us on the mail ID mentioned in the chat box. Thank you. Thank you, everyone. You may now disconnect.