Supreme Industries (NSE:SUPREMEIND) Q1 2027 Earnings Call

0:00 Ladies and gentlemen, good day, and welcome to the Supreme Industries q one FY twenty seven earnings conference call hosted by TAM Capital Advisors Limited. 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 the conference call, please signal an operator by pressing star, then 0 on your touch tone code. Please note that this conference is being recorded. I now hand the conference over to mister missus. You, and over to you, ma'am. Thank you, Anushka. Good evening, everyone, and welcome to Supreme Industries q one FY twenty seven post earnings conference call.

0:53 Joining us today from the company's senior management team Mr. MP Chairman and Managing Director, Mr. P. C. SUPREMEINDER, Chief Financial Officer and Mr., Vice President, Corporate Affairs and Company Secretary. I would now like to hand the call over to mister for his opening remarks. Over to you sir. Thank you very much. I'm chairman and managing director of the Supreme Industries Limited. I, along with my colleague, CPC Somani, CFO, and CIJ Sagu, vice president, corporate affairs, and company secretary, welcome all the participants who are participating in the discussion of the unobjected exchange alone and consolidated financial results for the quarter ended 06/30/2026.

1:54 The stand alone results and the consolidated results are already with you. I'll give brief on company's product operating performance and other highlights. The company sold one lakh fifty seven thousand five thirty six tons of plastic goods and achieved revenue from operation of rupees 2,718 crore during the first quarter of the current year against sales of 1 lakh $83,007.93 tonnes and revenue of rupees 2,609 crore in the corresponding quarter of previous year, yielding volume degrowth of around 14% and revenue growth of 4%, respectively.

2:43 The stand alone operating profit and profit after tax during the period under review amounted to rupee $3.98 crore and rupee 208 crore as compared to rupee 319 crore and rupee 177 crore during corresponding quarter of the previous year, achieving increase of 2517%, respectively. The business scenario of all the product segment of the company for the quarter ended thirtieth June two zero two six as compared to corresponding quarter of the previous year has been aged under. Plastic piping system business grew by 15% in volume and remained at flat level in value term.

3:33 Packaging product segment grew by 10% in volume and grew by 9% in value comp. Industry product segment business, they grew by 6% in volume and grew by 24% in value comp. Consumer product segment business, decreased by 22% volume and 11% in value cap. The overall turnover of value added products increased to rupee 1,142 crores during current quarter as compared to 933 crore in the corresponding quarter of previous year, achieving a growth of 22%. Business outlook.

4:19 The first quarter of fiscal year two seven was impacted by extraordinary volatility in polymer prices, particularly during April two year two shifts, resulted in inventory correction across the value chain and temporarily affected industry demand. While this creates a short term challenges, the underlying demand driver for our business remain intact. With polymer prices now stabilizing, the removal of custom duty exemption, and implementing minimum import price for suspicious LPG regime, we expect business condition to progressively improve as channel inventory normalize and market regimen is channel.

5:06 India continues to offer significant long term growth opportunity supported by infrastructure development, urbanization, water management project, hosting a sponsor of their distribution network. SUPREME is well positioned to benefit from each end to its diversified portfolio, strong brand, extensive distribution network, and continued focus on innovation. We continue extending our group program to capacity expansion and new product introduction. The successful integration of the Huawei business, expansion of piping portfolio, growing opportunity in the packaging and packaging products, industrial and material handling products, and the launch of UPVC window business further enhance our long term growth prospect.

6:03 The company continues to invest in capacity expansion across key businesses and is progressing with plan to establish manufacturing facility at new location, including Bihar, Jammu, and Malampur, New Guaya. The company is also in the process of acquiring additional land in Fonishery and Eero, and we create additional manufacturing setup. Supreme maintain robust financial position, bringing the company to fund the growth plan, capital expenditure, and working capital requirement through internal accrual. While the first quarter reflected temporary industry headwinds, we remain optimistic about the outlook for the balance of the balance of the year and confident in our ability to capitalize on the opportunity ahead.

6:54 Your brief and overall summary for the quarter ended in the reference. Thank you for your patience now. Now I and my colleague, CPC Somali and CIJ Savu, are available to reply to various queries led by all of you. Thank you very much. Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and 1 on your touch tone telephone. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles.

7:47 Before we proceed, I would like to request participants. Please limit your questions to two per participant in order to ensure that the management is able to address from all the participants. We take the first question from the line of from HDFC Securities. Please proceed. Hi. Thank you for the opportunity. Sir, as you indicated in the call, the underlying demand is broadly doing fine. It was more about channel inventory impacting the volume growth. So can you give more color about plumbing and agri? Possibly agri season was also weak because of monsoon and fertilizer. And secondly, what is the guidance for this year for the volume growth and margin?

8:35 Aggregates growth was definitely affected in the April, June, but April pressure dropped so cheaply that farmers will be... When to shut mine. Now the season appear May 20 year. Now the next will start from middle of September, and we believe that if the water is there, we are filling up, the demand will be quite robust in the remaining part of the year in the segment. Sir, I have also asked what is your volume growth and margin guidance for this year? Volume growth, we have told in the month of April only that we anticipate a volume growth of 15 to 17% in pipeline division and 12 to 13% overall for the company, we maintain the same value... Volume growth guidance.

9:31 Oh, this guidance, you still maintain the... This guidance for the entire year or the balance nine months you're talking? The reason I'm asking, you know, the first two months has been paid out. We are checking for the whole year. Understood. Got it. Thank you. Thanks,. Thank you. We we take the next question from the line of from. Please proceed. Hi. Good evening, sir, and thanks a lot for the opportunity. Couple of questions from my end. What would have been the industry related decline in terms of quarter one volume? Just wanted to gauge this 15% higher than the industry volume decline. Actually, decline. For the whole industry decline. Industry decline yesterday?

10:18 Yes, for quarter one. The quarter one, we... I I think the whole country declined. When plastic, all plastic very early de growth. Because it was very uncertain, prices dropping the from high price of the March month, the price is starting getting corrected. So the whole pipeline... The whole industry must have been going to investigation mode. Understood. But do we have any numbers here that it must be 8% drop or a 9% drop with industry wide? That would be helpful in case we have that. The percentage figure is Industry wide figure is not No idea. No idea. Nowadays, import, actually, also didn't come didn't come yearly. So we have no idea.

11:04 Sure. So, secondly, I wanted to understand that this Let me you down from. They can hear you. Please. Sure. Sure. Secondly, just wanted to understand the impact of the recently imposed MIP. Where are the PVC prices currently standing at? And what are the inventory levels with the distributors? And what sort of a reaction are you seeing after this MIP coming up both in terms of pricing as well as the restocking part? Inventory here, it must have gone down quite steeply in the first quarter. And we are seeing demand is coming a big way in this quarter. So now they are filling up the inventory back. We're running the business due to have adequate inventory. Mean to say you are seeing restocking happening at this point of time and on PVC pricing, PVC prices also gone up recently by 9 rupee a kilo.

12:02 So thirdly, on the margin front, we've seen a phenomenal jump in margins. We say that there could be a part of inventory gain also in this particular quarter? Have there been any inventory gain? And if there is, can we quantify it? This quarter, the profit has been higher because when we are such a big degrowth in demand, it was mostly in the piping segment where the margins are lower. Only piping... Only pipes. So they they were doing erosion in volume and turnover in plastic pipe. And plastic pipe, we're low margin business. And because of that, our overall margin is showing better in this first quarter. Understood, sir. Sir, I'll get back in the queue. Thanks, All the best.

12:52 Thank you. We take the next question from the line of from Dollar Capital. Please proceed. Hi. Thank you, sir. Sir, again, coming back on the volume growth guidance front, three things to understand. First, when we are saying that still we are maintaining 15%, 17% piping volume growth for FY 'twenty seven, That means in the next three months, we need to do at least 25% kind of a growth. So in that sense, if you can help us, at least in July, are we seeing that kind of a growth? And broadly in Q2, how we can see the growth? And will it be largely the growth would be in the second half where if the Q2 will not be that great, maybe the second half we need to do maybe a 30% plus kind of a growth?

13:47 I don't know, but I... We believe that there is good growth in second quarter also. And July is only one month of the three month. We are seeing a huge growth in the month of July, and we believe the growth will be quite good in the second quarter, which you will know in the month of October. Yeah. So in in this current month also, we are seeing a significant growth. So our channel inventory is this... One can say, again, is this filling up. You have to fill up. How can you do business? Yeah. No. No. True. True. So that's what I just wanted to understand from your side. Secondly, in... And then the q one, this 15, 16% degrowth, this is an... In across three months, April, May, June, or will it be more in April and May and June, we would have seen a kind of a flattish growth broadly, directionally will will help? Sure. What's right? April only.

14:43 And maybe a small growth. July, June also be a small growth, but I feel like it's still relatively more than 50%. Okay. Got it. And for EBITDA margin, that 14, 14 and a half for FY '27, that guidance we are maintaining. We are maintaining. Thank you. Yeah. And and as you said, this quarter, there is no inventory gain in q one. Man, prices are dropping, how can there be inventory gain? Don't follow. Yeah. So was there any any any loss? Because we we have maintained a a decent margin. That's what I'm asking. I have nothing to talk about inventory gain or loss bridge. Okay. Okay. Got it. And and now do we see the the the the current prices, the PVC prices, which has increased 9 rupees per kg, given the crude also again have fallen, will the current prices will stay? It is because for us, it is becoming a very, very difficult in terms of modeling the numbers because both on the volume and prices, the significant volatility is is that... That's what I'm trying to understand. Whether in q two, can we see a q o q improvement in PVC prices or a realization for us?

16:01 There's there's nothing difficult for us. Nothing difficult. And, anyway, dear friend, PVC is not in 100% good product. 47% chlorine product, which is coming out of caustic soda production. It's not 100% for the group group product, please. Okay. And the guidance, so in terms of the CapEx for full year, a 1,000 odd crore, is is is... We are maintaining that? Yeah. Maintaining. Yes. And in q one, how much we would have done on the CapEx front? Yeah. Committing the money depend on the machine level. We've committed up to now 500 crore. Okay. Q one, we have already done 500 odd crore. Committing. Committing. Okay. Investment. Yeah, please.

16:48 Okay. Okay. Then payments are made. And and in terms of the working capital pay is for Shavar Shavar? Yeah. No issues. No issues. Thank you. Thank you, sir. Thank you. Yeah. Appreciate it. Remind... It is it is a reminder to the participants, please limit your questions to two per participant as there are several people waiting for their turn. We proceed with the next question from the line of Ritesh Shah from Investec Capital. You may proceed. Yeah. Hi, sir. Thanks for the opportunity, sir. Two questions. First question, sir, three parts. Sir, can you speak more about gas piping, the progress that we have done? Same thing for windows and doors business. And third is basically IndoGreen plus three layer PPR pipes.

17:42 How big these businesses can be color over here for these three segments. So that's the first question. And sir, second question, probably I'll take it afterwards after you answer this, please. I'll repeat first question only. As on today based on the inquiries and be planned by so many guest company, we build a piping business including pipe and and 15. Maybe around rupees 600 crore this year. Okay. I agree with doors... But... Yes, sir. 600 crores. I heard that. Big big number. Sir, on windows and door business and PPR pipes? Window, we already started. We started marketing. Windows business only 50,000 in the whole country.

18:31 We just started only recently. I'll give you only 5,000 ton per year. Okay. And it's really a pipe today. It will be just... This is nothing new. Our company started to supply the farmers. They require our sprayer pipe because we are very committed to quality, so they are very very good quality. Okay. Sir, just a follow-up on 600 crore number, what you are indicating for gas piping. Have you already started getting orders over here? I think you had indicated we had some orders from Pune last year. Getting orders we supplied already. Sir, any orders from any other city, states that you can detail?

19:17 I told you that we have got the order of the gas pipe system, pipe and putting both, and we are supplied. And customer is very happy. Okay. Perfect. Sir, my second question is there is a CAD report with respect to g one mission out for two states. This includes Maharashtra and Karnataka. Sir, have you gone through it? How should we look at the agri demand specifically, which is coming out from the JGM scheme? I have not seen the report, but I have no idea. Okay. No. No worries, sir. Good. Thank you so much. Thank you. Thank you. Thank you. We take the next question from the line of Praneeth from SK Investments.

20:06 Please proceed. Hi, sir. Thank you for the opportunity. So I wanted to understand in terms of the window on profile, that business, how much have you invested so far and what kind of revenues do we expect to generate in the next two to three years? We are usually $2.20 crore rupees. Revenue generation about 350 karat once it is normal utilization. Okay. And do we expect to go in next two to three years, or will it take longer, normal utilization? Should be. Should be. We are going in production, and we hope that next year, we should get more... But but in terms of capacity. We already started selling in the market. Understood, sir. So... And regarding our piping division, sir, I understand this quarter has been a little bit off. But in terms of our CPC... TPVC growth, so do you... How do you... How are the gross profit? Is this continuing to take share of the overall pipeline market? Or is that OPBC also taking over?

21:01 How is it right now? Yeah. We increasing our market share. Yeah. We are... Market share, much of going up now. I so. Okay. I hope we see also now getting good acceptance, and we are... But it's been in in... We are now getting another machine also for issue in India. And we... Some machines are running in India, so we are building more capacity also. Understood, sir. And one more thing regarding the pricing. So so far, despite having a large brand at 16%, so in the market, it's been knowing that like there's been a little bit price competitiveness to compete and gain market share. So when are we going to start reducing this competitive intensity and aggressiveness in the market? Or do we plan on continuing for the next one to two years?

21:53 The pricing of the product depends on the raw materials. The price get adjusted if the raw material prices goes up, then finished goods prices also goes up, and, correspondingly, we reduce the prices when the raw material prices come down. So it is in synergy with those raw material prices. And that is a industrial industry phenomenon. That is what we want to say. No, sir. But, like, I... At least in the dealer network, it's... That gives... We have average of pricing, and despite having a large brand, you're still positioning. Your pricing is like, let's say, a little lower than what you can charge. So in terms of that, as I'm trying to understand, do we expect to increase our prices compared like what we can? Or we just want to maintain these levels for the next one to two years? No. No. Do you see, to get the better market, we are passing only benefits what we are deriving from economy of scale or the profitability market.

22:47 If we have Okay. In India manufacturing presence, So our logistic course gets rationalized, and that is the benefit to the end customer. Understood, sir. But is there a possibility that we might just not pass it on and increase our margins for this? Or do we continue to want to pass it on? That depends. Right now, we are more focused on the internal capital employed, not for the margin necessarily only. We still want to grow, and we are growing. Got it, sir. So for the next two years, probably, we'll still continue to maintain our strategy with this. Right? We a new system, new SKU in these systems and we've... And we see more markets and now going... We used to be in export market also.

23:42 So we hope that we will go and go in nicely. Understood, sir. That's it from my side. Thank you, Pian. Okay. Thank you. We take the next question from the line of Praveen Sahai from PL Capital. Please proceed. Yeah. Hi, sir. Sir, related to the capacity expansion, Bihar, Malanpur, and Jammu, what you are, you know, expanding. So can you give the... You know, how much of the capacity addition in these three locations you are taking in? No. We will do complete the project in next two years. So we will be building small capacity one after another. So not a large capacity immediately to put up. We are capable to come up in over the period two years.

24:29 We're doing creating market further and we're putting capacity as the market demands. A big piece of land in BRD is 21 acre, in Jammu is 13 acre. So, hopefully, in up to two years, it may be more than 50,000 till we put the plant together. Okay. And Malanpur, sir? Malanpur is material handling system. Material handling system didn't go large volume. We don't go volume. We do what is required in the market record. We will put the item because there are bulky item, trade intensive item. Okay. So you're making variety of credit, variety of credits. Okay. And lastly, on the Pondicherry and Eerold also, the the land acquisition you are looking for. So what kind of a product you are going for there?

25:24 Pondicherry, we are going to ship for existing property which we are making for. And in our existing property, we are going to put more capacity to make furniture for export market. Okay. Okay. Got it, sir. Thank you. All the best. Thank you. We take the next question from the line of Rahul Agarwal from. Please proceed. Yeah. Hi, sir. Good evening. Thank you for the opportunity. Sir, one question I had was to understand the customer behavior. I understand that the channel destocking happens when prices fall. But in history, whenever such prices fall, we have seen volume degrowth across all four segments.

26:11 Is this permanent yield lost? Or you think there is some pent up demand which comes back, you know, whenever prices stabilize? In history, if you can just share your experience, sir. I'm not sure about it. When the prices start moving over, then the pent up demand comes up. That is naturally because the destocking will take place in the channel. So, obviously, the channel get normalized when the prices get stabilized. So, Manaji, so from the channel perspective, I understand, but more so from, you know, let's say, non pipes, you know, packaging and industrial segments have also seen volume de growth. Does this demand also comes back fully into, you know, subsequent time? In packaging, also, you understand the whole team because there are many applications for installation, for civil, for construction.

27:03 So those people may differ demand for a month or two or three. So, yes, in normal course, most of the remarks comes up. But they still can sell item. They do... Yeah. Can sell item. Got it, sir. And how does it work in industrial,? So industrial is the OEM supplies. So it all depends upon their end market position. What is demand they are getting for their product, what they are offering? Air conditioner or any item material. Are offering their sales according to buy now. Those are not governed by the raw material prices. You see, it is always cost plus price margins. So it's not because the prices... The price effect, it is the ultimate demand situation.

27:51 Right. So industrial volume, we grew this quarter is more organic. It's more that their business was not growing, and hence, we saw the growth. Is that correct? Correct. But we... Value wise, if you look at Yeah. It's good. Yeah. Yeah. Not value. Yes, sir. I saw that. Yeah. And just last question on exports. So could we talk about which which products we're talking about for export? Which markets to start with? And should we see pickup in export growth starting current year itself, or it is more longer term? No. No. Only with the plan of six year... Six, seven year plan we have made. Last year, we export about $26,000,000 overall. We are aiming to reach $150,000,000,000 in six to seven years from 26,000,000.

28:40 From 26,000,000, our aim is to reach $1.01 $50,000,000,000 in all our product segment in six to seven years. Got it, sir. Which products we are talking about? On the production industry component. And which markets? I think what market? Any particular geography? Right. Mostly where the various government is entering to FTA, those those other geography want to cover. Got it, sir. They're already entering into FTA. FTA is in place. Those continue with proprietors. Got it, sir. And last question was, does... Did CPA Sorry, sir, mister Rahul.

29:27 Could you Yeah. Could you please join back the queue? Sure. I'll join back. Thank you. Thank you. Before we proceed, a reminder to the participants, please limit your questions to two per participant. We take the next question from the line of Karan from Guardian Capital Partners. Please proceed. Yeah. Hi. Thanks for the opportunity. My first question is, what is SUPREME's current capacity and the utilization level for composite fillers? Current capacity is about nine lakh or 10 lakh depending upon the product mix Okay. Per annum. That is cylinder. Cylinders. I'm I'm telling nine lakh to 10 lakh cylinders per annum is the current capacity.

30:15 Utilization all depends upon the domestic oil marketing companies. Currently, it is between 25 to 35%. Understood. And my second question is with... Recently with HPCL's initiative of... To sell composite cylinders of InstaMart and BPCL's plan to expand composite cylinder availability to over 100 cities, How do you see the performance of this business segment evolving for us? There are good opportunities coming up. I think HPCL adjusts complete one tender of two leg pieces. We have got the LOI for 60,000 pieces. Supply will start from next month onwards.

31:02 And, yes, this initiative is definitely very good, and we look forward to the opportunities in this segment. Do you see utilization ramping up quickly over the next... In the near to medium term? So, unfortunately, it is not a stock and sale item. So the time lost, they always lost time because you have to manufacture cylinder as per the design, as per the serial number, and many things as per the order. It all depends upon how the order flows take place from the domestic oil marketing companies. Understood. Understood. Thank you. That's it for me. Thank you. Thank you.

31:48 We take the next question from the line of Disha Chamria from Trenata Asset Managers. Please proceed. Am I audible? Hello? Hello? Speaking okay? Yeah, please speak loudly. Yeah sure. Yes, sir. Most of my questions are already answered. Just two question from my side. What's the current gross margin or EBITDA margin that you expect for to stand for the FY '27? Is it going to continue at this this level or the go back to the historical ranges?

32:34 We anticipate between 14 to 14 and a half percent for the full year. For 14 and... Okay. Fourteen and fourteen and a half percent. And for for the FY '28 and '29, do you see margin expansion or, like We talked we talked talked to FY '27 only. Okay, sir. Okay. And my second question was the demand to see in the market, like, in the plumbing and agriculture industries and newer segments like cylindrical composite and packaging. Any specific focus on weakness or strength you have seen in this quarter? Or anything that you look forward to do performing well for the upcoming demand catering, sir?

33:29 Your voice is breaking, but it... Generally, we can say our all product segments are doing better and looking forward better demand situation. Majorly, the plastic packing system, which is the biggest business of the company, is looking for 15 to 17% volume growth for the full year. In spite of the 15%, the growth in volume in the first quarter. So definitely demand in that segment is looking much better. Prices of raw materials are now stabilized or firming up. So we will see a good situation coming up. Okay, ma'am. Thank you so much. Thank you.

34:16 We take the next question from the line of from Citigroup. Please proceed. Yeah. Hi, sir. So just on the quarter, if you look at the EBIT margin in the plastic piping segment on a Y o Y basis, there is a substantial improvement. Right? So just wanted to understand, you mentioned that there is no inventory gain. So is this entirely because of mix or some cost benefit we had because of older PVC inventory or some other aspect that I'm missing? I told you there was less share of pipe. Only pipe pipe share was the volume g... Distribution was mostly pipe, and pipe is low margin business. So if the pipe business was yesterday, then the remaining margin became better.

35:07 Right. Right. So from a full year perspective, you would expect the mix product mix to broadly remain the same, so the benefit that you have in terms of margin could sort of normalize over the full year? Yeah. We are already committed to, actually, going to between 14 to 14 and a half percent. Okay. Understood. And secondly, could you share the inventory level at the company as of June 30? Inventory level compared to our general. We keep doing half internal level. We are very large volume of business. So we need to keep our proprietary inventory so that we are just supposed to supply to the customers. Understood.

35:54 And lastly, on the MIP, that has come for a period of six months. So from a longer term basis, do you think this could be extended or some other form of protection could come in? What would be your views on that? Extension part, you can only take from the government of India. Okay. Thanks. Yeah. Thank you. We take the next question from the line of from Incred Capital. Please proceed. Hello, sir. Thank you for the opportunity. I just wanted to ask what is the contribution in this quarter, and what is the expectation for the full year? We have in capacity what we acquired of 7,000 metric ton.

36:42 We are we are ramping up also, and the plants are running fully integrated. About 50 to 60% capitalization has taken place in the first quarter. And overall company, we look at piping capacity utilization about 70%. So all the plants So all the plants will be same line. I'll give you 71,000 tons. So we will utilize you for the year 70% of that. So, basically, you are saying on the capacity of 70,000 ton, the utilization is 70%. Right, sir? Yeah. That's... But I could... I mean, I'm we're to our. Okay, sir. Thank you. That's all that's all from my side.

37:34 Thank you. We take the next question from the line of from Anandati. Please proceed. Yeah. Hi. Good evening, sir. So my first question is regard... On the pipe segment margin for the June quarter. So if we see our pipe segment EBIT margin has improved from 8.8% in previous June quarter to 11.4% in this June quarter. So can you please help us understand why the margin has gone up when we have seen a sharp decline in our volume? Okay. I think the same answer which has been given for the operating margin, the price for the company, when the low margin product of pipe is reduced from the volume.

38:20 So that is the remainder business of the piping has better margins. Okay. So is it because of a sharp decline in the agri pipe volume, or we have seen a good improvement in the margin? Not only agri pipe. No. They they they come down, so they be distributing by our distributor. Fine, sir. Sir, my second question is on your EBITDA margin guidance. So, like, last year, sir, you were guiding EBITDA margin of 14 and a half to 15 and a half percent EBITDA margin, which was quite a difficult year for the industry as PVC resin prices were under significant pressure. And this year, we are guiding 14% to 14.5% for FY 'twenty seven, where if we see, like, we have already closed 14.6% EBITDA margin in this June quarter and margin in Q4 generally turns out to be significantly better for us compared to the first three quarters.

39:18 And we will also see the benefit of higher PVC resin prices in the coming quarter, which was not the case last year. So can you please help us understand why we are guiding a much lower margin compared to what we were guiding earlier? We are not guiding lower margin. The first quarter, the margin is showing improvement because of distribution of demand for plastic pipe. But we we anticipate when we are saying that we anticipate 15 or 17% volume growth. So if we supply adequate quantity of plastic pipe now in every nine months. Yeah. Low margin, but they're required. If there's no pipe in... But in the... We do the pipe in system. You cannot do any business of... You cannot do any work of the... Either for water or anything supply.

40:04 If there's no pipe, you can't do any business. Pipes are price are required. Pipe volume is element. So price is No, sir. Your point is very taken, sir. Earlier, we were expecting, say, FY '26, we were expecting the pipe volume to grow at 15 to 20% rate, and we were still guiding EBITDA margin of 14 and a half to 15 and a half percent. To to... What I'm trying to understand from you, like, why we are guiding 14 to 14 and a half percent EBITDA margin now when when we were expecting much higher range earlier? We we are giving the guidance with a very On a conservative way, you see Actually, that's what we manage. Okay.

40:56 Thanks a lot, sir. Thank you. We take the next question from the line of Shelley Jane from Capital. Please proceed. Hi, sir. Thank you for the opportunity. Could you please provide me the value of inventory data and table as on June? Inventory data. Inventory, data and table. Our inventory remains good as mister told you earlier question. Our data remains fifteen days of receivers of the turnover. And table sir? Table remain between fifty to fifty five days. Okay. Okay, sir. Thank you so much. Thank you.

41:50 We take the next question from the line of from ISEC. Please proceed. Yeah. Hi, sir. Sir, how was the CPC growth in q one? Q one, it was very minimal growth. And just so you answer this question, I'm just trying to reunderstand. Was this the case that the plumbing business, plumbing pipe business was better off in q one and agri... Do you significantly... Which led to that 15% kind of volume degrowth in case of pipes total? Not total. We just... Every year and plumbing, both had a degrowth in the first quarter. It's a... I believe it was significant degrowth, was it similar? Aggregates, plumbing, business, every pipe in demand, every pipe in segment, it had a degrowth in the first quarter.

42:45 Yeah. You are right. Pipe... Every pipe for a... Polypipe was Actually degrowth. CV... It was in the volume in the policy in pipe was quite very heavy. Then in PVC pipe also, we were do... We were destruction... They were... They were in demand. So because you Sir, Yes, sir. Sir, sir, just... And this AgriPipe, whatever we lost out because of the, you know, pricing, you expect that recovery to come through in... When the season really picks up in September and February. Am I correct, sir? From September 2 to March, demand will grow very nicely. And, sir, with MIT coming in, that fluctuation in PVC, let's assume PVC stays in the same range of eighty eighty five, You think this is very good demand will come from the aggies side because of this.

43:38 Am I correct, sir? No. We don't know. Good. MIP may do... It should... Nobody showed them to... To the place whether or not. It might be that mean that they cannot charge a high price. The only thing they cannot charge lower than the 7 double $6. Who's that? High price, nobody will shop there. They depend on the relationship completely. It's getting nobody knows. Yes, sir. Thank you very much. Thank you, sir. Thank you. We take the next question from the line of from Sumangal Investments. Please proceed. Hi, sir. What is our agree and nonagree mix, sir? We have no idea. Because it's several...

44:25 We said, yeah, using AgriPine for housing also. So we have no idea. Okay. And, sir, secondly, since Lubrizol is starting production of CPVC resin in India, so will our cost come down? Yes. But we just can only deploy. How can I deploy? Whether they're going to keep lower, but I can't see. I I put your information. The next is also coming. Okay. Okay. Thank you, sir. Thank you. In all participants, in order to ask a question, you may press star and one on your touch tone telephone. Participants, in order to ask a question, please press star and one on your touch tone telephone.

45:24 Start me 180. We take the next question from the line of Varun from one... Three sixty one Capital. Please proceed. Yeah. Hi, sir. Thank you for the opportunity. I just wanted to understand this realization improvement which happened in the other segment packaging industrial consumer. So this entirely was due to the polymer price, or was there any kind of price hike? Just want to understand, do we fully pass on the price hike because of the polymer or the cost inflation that we saw? Yes. So it's it's only a customized solutions.

46:09 You see, packaging, we provide a lot of customized solutions which gets better relation. The industrial segment also, the pallets, dustbills are better value added products. So the product mix which plays a role. Yeah. So means means... I mean, just want to understand, like, after, say, this quarter, if things normalize and if the polymer prices fall back, So are we gonna stick to a similar price to... Or will it move along with the polymer price only for the other segments? I understand PVC still a lot of pass through happens, but for other segment. So we're not going to use PVC. We use the polymers also different. We use large volume of polyethylene.

46:55 We also use polypropylene, polystyrene, ABS. We use. We are not producing company owners. Yes, sir. So in case that declines, again, that packaging industry, whatever pricing, that also will decline simultaneously. That's why I want to understand. Depends on the product. Depends on the product. Okay. So not to... You know, you know, direct correlation. That's what I'm just saying. Not so not so much direct. Okay. Okay, sir. That's it. Thank you. Thank you. We take the next question from the line of from Citigroup. Please proceed. I would request mister Tate just to unmute and then speak.

47:46 Sorry. Sorry. In terms of the other resins, like CPVC, etcetera, was the pricing volatility and the quantum of restocking, destocking that we saw in... Through last quarter and this quarter similar or the different sort of intensity? It's a pricing. All the polymers. All the polymers. Actually, polyclone polyclone much more volatile. Because the food price is up and down now. And, yeah, they are already linked to Google. Only PVC is affected. PVC is not limited to So policy and policy probably help them much more volatility.

48:32 But this is now but this commodity So Right. Right. But on CPVC, I think you had mentioned there was, I mean, minimal growth. So were the CPVC prices a lot more stable through the quarter because of which they did not see too much impact of the destocking? CPP price... The policy stable. The policy pressure, we are so... Policy is stable. Only... We receive pressure come down in the month of April being there. They have jumped in the month of March, and they're filling up. And after the pressure, not too much. After the '28 upgrade or something like that, don't do the... There's not too much rent rent in the price.

49:21 Oh, okay. Understood. And too much in the month of March, and they go ahead and upgrade. Right. Right. Yeah. And just lastly, obviously, we lost volumes in the first quarter. So from a customer perspective, I know you had mentioned the recovery by September, but would you given that the at least PVC prices are starting to increase and they are anyways slightly close to the MIP level, so we might not expect further decline in PVC prices from here. So would you expect a lot of it to... The lost volumes to be recovered in the second quarter itself, or it will take time to recover it through the balance of the year? Most of the volume, loss of volume will be recovering, we will have growth in first half.

50:12 In the first half, you would expect a Y o Y growth? First half, we definitely are confident that we have volume growth. Okay. Understood. Thanks. Thanks for that. Thank you. We take the next question from the line of from. Please proceed. Yeah. Thanks for the opportunity. So now with the minimum input price coming into effect, do you think the PVC prices should stabilize at this level? No. There's nobody can stop them. They can go up now. So now? The client stopped, but but going up, there's no restriction that they... You're not allowed to work.

51:01 Right. Understood. And you have highlighted that, you know, FDA with UK EU, you know, or eFPA as a significant opportunity. So, you know, what share of revenue do you expect, you know, to generate some export over the medium term? FTA? We we... I can give example of UK. UK, the country is entering the FTA. They import beauty on the plastic pipes. Now it's become zero. So it's a possibility in in... Like, there's so many countries now government entry into FDA. So so what do mean? Use idea. Sorry? So what is it? Yeah. It's what I'm asking.

51:47 It's what opportunity you are looking at? You... Overall, world imported plastic prices alone, when I talk, is $41,000,000,000 last year. Our company exported $5,000,000. In 41,000,000 billion dollar market, we exported only $5,000,000. So we see huge opportunity. We will spending money on participating in several exhibition. We appointed several resources. They will go to the market. We introduce new product also required in this market. We will get our product certified as required in this market. We will spending good investment to achieve the objective. Right. Understood. That's the. Not just to sell only 1,500,000,000.

52:39 We want to serve 8,000,000,000 people. Okay. And that's helpful. Thank you. Thank you. We take the next question from the line of Anupariq from Anandati. Please proceed. Yeah. Hi, sir. Sir, can you please quantify the amount of inventory loss in Q1? Nothing to report. And sir, is there a scope for inventory gain in Q2 due to the recent increases in the previously mentioned now ma'am? Nothing nothing report either on inventory gain or inventory loss.

53:25 If anything happens, we'll be charging end of the year. Okay. Thank you, sir. Thank you. We take the next question from the line of, an individual investor. Please proceed. Thank you for the opportunity, sir. So I just wanted to ask about the channel inventory. Like, in March, April quarter, some of the companies had stated that there was a lot of restocking in one particular month, and then there was again a destocking. So is that phenomenon still continuing, or has the demand from channel partners been registering? When we told you we will have growth in this quarter, there is no...

54:10 There is no destocking taking place. Then we are saying we will have growth in this quarter. And we also say that in first half, we will have growth. In spite of the growth in first quarter, for the first half, we will have growth. Okay. Got it, sir. Thank you. You're both clear. You're quite clear now. Different. Yeah. Sorry. I joined yet, actually. We take the next question from the line of Karan Bhatilia from AMsec. Please proceed. You're calling to. Say opportunity. Sir, how is portfolio doing?. I'm doing very well. We were searching new item. It's a whole day in our portfolio.

54:58 We are really doing product in our portfolio. They are very helpful. Alright. And you stick to our guidance of selling 50,000 metric ton for '27 with much better profitability? Yeah. Yeah. The quantum of volume, what we have said is fine. 70% utilization of capacity. 70% utilization, and we anticipate 15 to 17% volume growth for the full year as of today in plastic cracking system. Right. And, sir, on the EBITDA margin front, how do we see we win in comparison to SUPREMEIND? One thing 70%. Range. Same Nothing and nothing unusual.

55:47 Nothing very different range. Right. And any clarity on the packaging defects, the one which we were running for the export market? Okay. Please hold up. Okay. Thank you. A reminder to the participants, in order to ask a question, you may press star and one on your touch tone telephone. Okay. Now we will find you. They will close this now. They will close their closing.

56:36 Alright, ma'am. If there's no more question, we close it. As there are no further questions from the participants, I would now like to hand the conference over to the management for closing comments. Over to you, sir. Oh, thank you very much. We are very impressed by the analytical question led by various... Our investor friends. We thank them very much. Please spare time to ask questions, and we hope that we have adequately to reply to this instruction. Thank you all. Thank you very much. Thank you. Thank you. Thank you. Thank you. On behalf of TAM Capital Advisors Limited, that concludes this conference.

57:22 Thank you for joining us, and you may now disconnect your lines.