BirlaNu Limited (BIRLANU) Q1 2027 Earnings Call Transcript

Ladies and gentlemen, good day, and welcome to the Learner Limited Earning Conference Call. 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 zero on your touch-tone phone. I now hand the conference over to Mr. Mish Shah from CDR India. Thank you, and over to you, Mr. Shah. Thank you, Anish.

Good afternoon, everyone, and welcome to Billianu Ltd.'s Q1-FA27 earnings conference call for investors and managers. Today we have with us Mr. Recep Seth, Management Director and CEO of the company, and Mr. Jay Kapadia, Chief Financial Officer. We will first have Mr. Recep Seth making his opening comments, and he will be followed by Mr. Jay Kapadia, who will take you through the financial perspectives that lie ahead.

Before we begin, I'd like to point out that certain statements made in today's call could be following in nature, and details in this regard are available in the earnings presentation which has been shared with you earlier. I'd like to invite Mr. Chait to present his views on the performance and strategic imperatives.

Thank you and over to you, sir.

Thank you and good afternoon, everyone. It is a pleasure to welcome you all to Builder News 421-XY27 Earnings Call. Amidst one of the most volatile external environment, headlined by the Middle East conflict and its impact on global supply chains and pricing, I'm happy to say Buildano has delivered a strong quarter, delivering on both growth and profitability. This performance was enabled by the efforts over the last couple of years to strengthen our product portfolio, sharpen our execution engine, and improve the production of the product To drive operational efficiency and to build brand salience. Quarter 1 performance, as it was for Quarter 4 last year, is a visible impact of these strategic initiatives, and we will only intensify the pace of this transformation in coming quarters. The India business has been off to a great start in FY27. We grew our revenue base by about 11% to Rs.833 crores, while EBITDA grew by 71% to reach Rs.98 crores. As you can see, margins have improved by about 410 basis points over last year. This is headlined by the pipe segment where our margins expanded by. 660 basis points nearly 7% and roofs by nearly 4%. With double digit margins and growth this quarter demonstrates our stated objective of value building growth. The key highlights of this performance include in the roof segment. We broke all previous records, crossing the Rs. 500 crore mark for the quarter. In fact, we did 517 crores to be precise, which represents a growth of 17% over last year. We reinforced our leadership position and increased our market share by about 1%. From a cost perspective, despite inflation, Discipline, cost management, and operating leverage translated into a margin expansion of nearly 4%. The world's business continued its strong momentum with revenue growth of over 14%, led by Rovart's demand across both panels and blocks. Focused market development initiatives and stronger sales execution across customer segments supported improved realizations, which together with disciplined cost management drove margin expansion by nearly 3%, 270 basis points to be precise. The pipes business navigated an exceptionally challenging market environment during the quarter, with sharp swings in resin prices. You recall, in March, there was a price rise of nearly 60%. This was followed by a decline of about 30% in April, which resulted in sharp decline in demand, particularly in the month of April. Despite these headwinds, the business demonstrated strong execution, delivering one of the strongest margin improvements within the portfolio, with EBITDA margins expanding by over 660 basis points, while sales rebounded strongly through May and June on the back of disciplined pricing, focused market execution, and cost management. Construction Chemicals was the business that was most adversely impacted by the Middle East conflict. Our key raw material prices increased by over 50%, while disruptions across customer industries, for instance, tile industry, was badly impacted. And project execution led to a temporary slowdown in demand across several application segments. Despite these headwinds, we delivered 11% revenue growth, supported by focused sales acceleration initiatives, and a significant expansion in our portfolio. This strengthened our presence across high-growth application

segments and broadened our customer reach. Moving on to Paradox,

where despite the Middle East crisis and the demand slump that was introduced or induced by that crisis in our core European market, we did well to sustain revenue at last year's levels. The order book is healthy. It is up over 10% over last year, and the pipeline indicates a strong recovery in H2. Profitability was impacted due to cost pressures and less than projected revenue trajectory. We are confident of an improved margin profile for the rest of the year, with a slew of value enhancement initiatives in place, including a focused, cost-out program being led by BCG. You recall, last year we had done a similar program with BCG for the India business, and now we are doing the same thing for Parador. This short-term turbulence aside, Parador is making rapid strides in the strategic build of new markets, especially US and India, new customers, especially in the commercial channels, and deepening its core, the DIY and retail in Europe. At a consolidated level, the revenue for quarter one grew by just short of 12% to Rs. 1174 crores, and the EBITDA improved significantly to Rs. 80 crores, which is about 35% higher compared to previous year.

Before I close, I also want to share the

progress on some of our strategic initiatives. Our strategic capacity expansion program will add a new chapter with the approval of a new boards plant near Hyderabad to supplement the greenfield plants being constructed in Nellore. This reflects our confidence in the long-term growth opportunity within the premium boards category. Innovation Engine delivered a few of next-generation products in waterproofing and repair and rehabilitation segments of our fast-growing construction chemicals business. To further our sustainability agenda, we recently commissioned additional solar capacity at two of our manufacturing facilities while simultaneously advancing the next phase of renewable energy investment across our operations. We have also commenced implementation of our enterprise-wide AI roadmap, combining targeted business use cases with capability building across the organization. Looking ahead, while the year has begun on a very strong note, we remain mindful of the evolving external environment. Geopolitical uncertainties continue to persist. Raw material, freight, and currency markets remain volatile. And in addition, labor costs are showing an upward trend. We therefore remain disciplined in our approach and will continue to respond with agility as market conditions evolve. At the same time, we exit quarter one with the confidence that we will continue this momentum for the rest of the year. With a stronger portfolio, improving operating leverage, and a relentless focus on execution, Buildano is well positioned to deliver sustainable, profitable growth while continuing to create long-term value for all our stakeholders. With that, I conclude my opening remarks, and let me hand over to Ajay to take you through the detailed financial and operational performance for the quarter. Ajay, over to you, and thank you.

Thank you, Akshet, and good afternoon, everyone. I'll now walk you through the business and financial performance for the first quarter of F527. While the quarter was marked by continued volatility across key input markets and inflationary pressure across certain cost categories, we delivered a meaningful improvement in earnings and margins, reflecting our relentless focus on cost optimization and execution excellence. Let me begin with the headline numbers. On a standalone basis, revenue increased by 10% year-on-year to Rs.824 crore, while EBITDA rose by nearly 70% to Rs.97 crore. EBITDA margins expanded by over 420 basis points, supported by stronger realizations, manufacturing efficiencies, cost discipline, and sharper execution. On a consolidated basis, revenue grew by 11.6% to Rs. 1174 crore, while EBITDA increased by 35% to Rs. 80 crore. Turning to the businesses, I start with Roofs business, which has delivered another excellent quarter with revenue growth of 70% and markets are gained of about 100 basis points. EBITDA margin improved by 390 basis points to 18.2%, supported by stronger realization, improved volume sales, and favorable operating leverage. The Walls business reported 14% revenue growth with healthy volume expansions across categories. Improved realizations, higher capacity utilization, and the benefit from the cost optimization initiatives implemented over the past year contributed to EBITDA margin expansion of 270 basis point to 10.2%. The pipe business experienced an unusually volatile quarter due to abnormal movements in PVC raising prices which materially impacted channel of tech particularly in the month of April. Consequently, revenue declined by 11% while volumes were lower by 27%. Net sales realization improved during the quarter primarily due to lower share of agri-pipes in the sales mix. Despite these headwinds, EBITDA margins expanded by 660 basis points driven by an improved product mix, procurement efficiencies, and disciplined pricing actions. With government interventions facilitating stabilization in PVC resin price, we expect demand condition to improve and anticipate moderate growth during the seasonally week quarter too. Construction chemicals recorded 11% revenue growth despite significant inflation in key raw material prices. The business continued to expand its distribution footprint and customer reach, strengthening the foundation for sustained growth. Moving to Parador. Revenue remained broadly stable on a year-on-year basis in euro terms. EBITDA stood at a loss of Rs. 13 crore compared with a profit of Rs. 5 crore in the corresponding quarter in last quarter last year. The decline in profitability primarily reflects elevated raw material costs, one-time SAP migration expense, and certain planned maintenance and refurbishment activities that were advanced to the first quarter from subsequent quarters. These timing-related costs are expected to normalize in the second half of the year, supporting an improvement in profitability. Beyond our operating performance, we also advance several strategic and financial initiatives during the quarter. During the quarter, the board has approved the establishment of a greenfield designer board manufacturing facilities in Hyderabad with an estimated capital outlay of Rs. 167 crore. This investment expands our manufacturing footprint in the premium board segment and further strengthen our position in a margin-accurative product category. Turning to the balance sheet, cash generation and capital efficiency remained key areas of focus. Through targeted initiatives across receivable inventories and sourcing, we reduced approximately Rs. 100 crore of working capital on a year-on-year basis, resulting in improved operating cash flows. I am also pleased to say that gross borrowings reduced by nearly 100 crore during the quarter from Rs. 852 crore as of March 26 to Rs. 758 crore as of June 26. We remain committed to maintaining a prudent capital structure while funding our approved greenfield and capacity expansion projects. As these projects are commissioned and begin contributing to earnings and cash flows, we expect borrowings to reduce progressively over the time. Overall, the quarter reflects the progress we have made in strengthening our operational and financial performance. We remain committed to building on this momentum through sustained operational improvements, prudence financial management, and long-term value creation. With that, I conclude my remarks and hand the call back to the moderator to open the floor for questions.

Thank you. Thank you so much, sir. Ladies and gentlemen, we will now begin with the question and answer session. Anyone who wishes to ask a question may press star and 1 on their test phone 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. Reminder to all the participants that you may press star and one on their touch room telephone in order to ask a question.

The first question comes from the line of Surendra Singh with MyQT Sherifa. Please put it.

Yeah, thanks a lot. Am I audible?

Yes, sir, you are.

Yes, yeah, thank you. Yeah, thanks a lot. So, Akshat and our CFO, I was going through the latest annual report, and I see that regarding our borrowings, we talk about some covenants which we could not honor in 2026, which in turn we took waivers from banks. So, could you talk about it, what it was, and what we did around it?

It is primarily debt, equity, governance, which we could not make, and that is the reason we have taken labor from the bank.

Okay, so in 2025, we did with two banks, and now I am seeing, I think, six bank names is given. So, what is our thinking on borrowing overall, like, how it will progress?

So, as of March, 30, as of March 26, our borrowings were 852 crore. As on that, we are at 758 crore. So, we reduce our borrowings by close to 100 crore during the quarter.

Okay, and going forward, how you think about it? Like, it will remain like this, or we may take some more, or there is a plan to further reduce?

In short, in short, near to short period, it will remain at the elevated level since we have announced a couple of greenfield projects. One, we announced last year, Nellore Bores Plant, and in yesterday's board meeting, we have announced Hyderabad Bores Plant. But, however, there is a timing difference. Nandor board plans will start giving us profit and cash from last quarter of this year, starting of first quarter of next year. So, that will help us to repay the borrowings and that will help us to fund for the new prefects.

Okay, that helps. Yeah, thanks a lot. And Akshat, I would like to know your views on Parado in particular. I know that numbers are yet to come on PNL and all because of various headwinds. But being in your seat and seeing the system very closely, how do you envision it in the next two, three years? You think that that will be a good outcome if it unfolds with time?

See, I think, I

don't know if you've been part of some previous calls, we've also laid out what are the blocks that we have been pursuing for growth in the Parador business. At the moment where we sit on last year's revenue base, and I'm not reacting to... Short term, month on month or quarter on quarters, some turbulence that might be there. But overall, there is now emerging rhino site for adding about at least a 20 to 30 million over the next couple of years on the revenue side to that base. Now, that is coming through the investments we have made in building the commercial channel in U.S. In markets like India and also UK, Middle East. And this is now Basel's pipeline and the advanced cases where we have put in quotations and they have been specified. So there is line of sight on that. So that is one. Second, the expansion of our DIY channels across Europe. There, and that has been a strong reason why despite degrowth in the market, this quarter we have maintained our revenue because we have been, again, increased our share on those DIY channels and growing beyond just the Germany theater. So that will also play out and fine. So, and finally, there were some markets that we had in Europe, places like Italy and some markets in Eastern Europe, where again, order flow has started coming in. So, those three put together gave us that line of sight of that revenue increase. Now, at that level, what it does is just given our break-evens and our... P&L leverage starts flowing in, and there is also a decent level of profitability that starts coming in. So that is what we are putting fight for, and at the same time, There is work happening in further optimizing the cost structure. I mentioned in my opening remarks that we have engaged with BCG for a similar program as we did in India, which is to essentially bring cost out of the system. Our expectation is at a conservative level that should deliver at least a 300 to 400 basis point uplift on the EBITDA side. So there is line of sight on revenue, there is work happening, further work happening on the cost side, and I think there is, we are on the, the healthier outlook that you are looking for is on the horizon.

Yeah, that helps. This is my first conference call with this company, and I admire your thought process. I have gone through all your previous communications. So, I ended up learning a lot about this business, and in general, like, what is your thinking about this business? So, thank you for that, and I think I'm all set. Thanks a lot. Wish you all the best.

Thank you so much, Surinder.

Thank you. The next question comes from the line of Shlok Akoye. Shlok Akolya with Xylem. Please go ahead.

Yeah, so my question was also on time at a hour. So just wanted to understand like more about how do we expect the BCD initiatives

to come in, like what's the timing of it? So, the timelines, we've already completed the diagnostic phase.

The design phase is underway by and the implementation, etc. is about the four-month exercise. So, in about four to five months, okay, the first results and impact will start becoming visible by the end of this quarter, and then they will keep rolling for maybe another three months. And so... Q4 of this year should have visible impact on the P&L, but many of those will start building gradually over the next three to four months. So, the October to December, there will be a build-up, and the full impact should be visible around the Q4 mark.

Okay, sir. Thank you, Nirmala, for the year.

Thank you so much.

Thank you. Ladies and gentlemen, anyone who wishes to ask a question may press star and 1. Next question comes from the line of Aditya from Securities Investment Management.

Please do it.

Yeah, hi, sir. Thanks for the opportunity. Sir, first question was on the boards and the panel segment. If you could just talk about what is happening in this industry because if I look at your commentary and the kind of tactics we are doing, it seems that this seems to be a strong growth segment for us. So, if we just talk a little bit about what's happening in this segment, what is the dining room in this segment, and what kind of utilization we are working currently.

Great.

So, and your question is on the board segment, which is today roughly anywhere between a 1,500 to 2,000 crore industry segment, but growing at any close to 10 to 14 percent. Growth rate year on year. The segment is also attractive because it sort of affords a higher margin profile. So most players in the industry are operating in the high teams as far as operating margins are concerned and probably even more. It's a segment which also is interesting because it affords differentiation on the products and playing in the previous segment. So, there are basic boards and then there are value-added products like high-density boards, designer boards, etc., which afford a greater level of differentiation. We believe we have a right to win in that segment because so far... We've been capacity constrained. We've been operating at nearly 80 to 90% of our capacity. So we are joker block. We have a right to win because on cementitious product, it follows a similar... Product composition in the fiber cement industry, so there is a lot of resident knowledge about the product and our ability to differentiate and innovate on the product. Plus, we also have the market access to the customers because we are serving the same customers for our other wall products, whether it's blocked or panels, and that's where we feel very confident about our prospects. And hence, the two capacity additions that have been announced, one earlier, which is in Andhra Pradesh, we are expecting to commission that plant by Q4 of this financial year. And then the new project that we are pursuing, where we got the board's approval yesterday, that will be in Telangana. So... That's where we are sort of adding capacity, plus there are smaller brownfield capacity additions that will happen at our existing plants. So, from our perspective, it's a segment with the new capacity additions that we have announced over the next couple of years. By the time these capacities come in and we are able to ramp it up, it will inject close to a revenue upside of about 300 to 350 crores. And hopefully an EBITDA uplift north

of 75 to 85 crores. Aditya, does that answer your question? Yes.

Sorry, your line is not clear.

Hello?

Yes, Aditya. Yes. Aditya, we cannot hear you. You may please rejoin the queue. Thank you. Our next question comes from the line of Sai Ganeshwitch Square, 64 Capital Advisors.

Please go ahead.

Thank you.

Thank you for listening. What do you mean?

Hello. Yeah, your voice is not clear. It's clear now.

Not really, mate. Take care of this.

Dennis, are you able to hear?

Yes, sir. Sai, you may please proceed with the question.

Yeah, a couple of questions from the roofing side. We have reported a 15 percent PBT margin in rupees for P1, F1, F1, B7, P2. Well, our peers are in line with our margin, but before we do 20, 25% plus EBIT margin, if you look at the same, FI 22, 23, at that time our peers used to do 17, 16, 17% margin, but now our peers have started recording 17% margin, but we are still starting at 17% range.

Once it's caught, all right.

Good morning, everyone.

I am not 100%

sure of which peers you are talking about, but I would request you to also just try to do a deeper analysis of the peer results because a lot of our peers have in the last three or four years added boards in their portfolio and the numbers that get reported are a consolidation of boards and roofing, whereas the roofing numbers you are talking for us. Our pure play roofing numbers and we have not sort of mixed up with our board number.

I have no understanding. Boards are margin holding 15 and 18 percent.

Slightly different understanding that are in, so I'll request that you do have a look at that. Boards for most players are delivering attractive margins. Which is what I covered in the previous one as well. But I'm happy to say from a roofing perspective overall, while there has been a strong improvement in the EBITDA margin compared to last year, I think the base you are talking about is three to four years old. Different industry dynamic and different input prices at that point in time. So, it's a slightly different one, but happy to say that overall, it's been a good quarter from a margin point of view, and there's been a significant improvement.

Okay. And is there any inventory gain or such that one-offs, there is no one-off, right, in our working margin?

No, there are no one-offs. There are no inventory gains or re-valuations that have been done. So these are pure operating numbers.

Okay, that's it. Thank you. Thank you, Saibanesh.

Thank you.

Our next question comes from the line of Saurabh Gynodia with SMIFS Ltd. Please go ahead.

Yes. Hi Akshat and thank you for the opportunity. We have done especially well on the racing side. We have done especially well on the racing side. 17% growth has come after a gap of so many quarters. So just wanted to understand what has been the growth drivers. And how would the second difference on the difference?

So, on secondary sales, overall, all of this

is secondary because this is... This is a period where there are significant offtakes, and this is not a product that has huge stocking. So, stocking for us happens only in the Q4 period or end of Q3. This is a season where there is a strong secondary momentum. So, I would call all of this as secondary for this period. What has contributed? Overall, there has been buoyancy. I think the rural demand was strong. There was price support available. So, overall, in 17%, the volume growth is nearly 10%. What also held was our closest competition as a substitute product. The steel sheets were at an elevated price point. So, there was increased demand for the fiber cement tools. So, those were some factors that played out well, and overall,

there was buoyancy in the industry. Understood.

And as I mentioned that we have done quite well on the working capital side and there has been a reduction of about 100 crores. So just can you talk about what efforts have we made and how much of it is associated with it?

No, no, working capital. So Saurabh, we have worked on two areas. One is the inventory side. We used to carry a large stock of fiber. We have substantially reduced our fiber stock in last six to eight months. The other side, on receivable side, we have tightened our controls on giving the credits, and that has resulted into close to 30% reduction in our receivable numbers.

So, one can safely say that both things are sustainable going forward? Both are questionable.

Sustainable, yes, yes, yes, yes, yes. Good, good, good, yes. Those will be two questions on my side. Thank you.

Thank you, Saran. Thank you.

Our next question comes from the line of Aditya with Securities Investment Management. Please go ahead.

Hi, sir. Thanks for the follow-up. Sir, continue with the boards and panelists.

If you could just help us understand, is this a replacement product like we are replacing plywood or a citadel?

And if yes, so what will generally be the advantages of this product as compared to substitutes?

So, it has a broad range of substitutes.

So, these are used for between panels and boards, they have applications in creating walls. So, these are drywall applications. They help in creating room, room partitions, etc. Boards additionally have the application of using as threading, whether for internal or for external applications. There are a range of products in that category. So yes, gypsum, boards, etc. are one. Traditional walls are the other substitute. The advantage is faster fabrication and application. So the time involved for construction goes down. The cost It is a cost-effective product. And third, the thermal and sound insulation properties are great. There is also fire retardant properties that the product offers.

So that's a broad overview. Thank you.

Aditya, have you to make a question? No, I'll ask the call first.

Hello, am I audible?

Yes, sir, you are.

Yeah, now you are audible.

Yeah, sir, I was asking, is it mainly used in commercial applications or it is also used in residential?

Um, larger adoption in commercial, but it is used equally in residential as well. Uh, so the adoption is increasing in the residential segment as well, but the penetration level is higher in the commercial applications.

Understood. And so in this 1500 to 2000 crore market, uh, is it majorly dominated by organized shares of the, or, uh, the unorganized share is also quite large.

No, so it's not an easy product to manufacture. The capex intensity is also fairly high. It's largely dominated by organized players, so there are only 5 to 7 players of note in the industry. There is also a good 15-20% share of imports currently into the country.

Got it. Got it. And, sir, you mentioned that the margins in this segment are, say, close to mid-teams for the industry as a general, but when I look at your EBIT margins, which we give in segmental, our margins are in the, you know, mid-simple digit. So, why is there such a sharp contrast between us and the industry?

So, our play currently, I was talking only about the board segment. Our wall segment today is a combination of boards, panels, and blocks. Our blended margins reported this quarter are about 10-11%. Sandalone,

board plants. tend to upgrade and especially the new ones

tend to upgrade in the 15 to 20% range.

And let's hope, Walls currently is making very low margins.

Walls currently is now finally in a double-digit zone, and there's again been a 2-3% improvement over last year. This has been one of the... Strategic pursuits we've been making that the rightful zone for our wall segment from a profitability point of view, our current portfolio is in the zone of about 12 to 14%. I'm happy that we have broken into the double digit zone, and there is further headroom for improvement there. So I think we are now 80% where we should be, given the portfolio we carry today. And I'm not counting the impact of the new capacities that will further hold this margin up.

Got it, got it.

And now, sir, coming to Parador, I think you mentioned in the opening remarks there were some one-off costs this quarter. If you could just firstly quantify the same.

Yeah, so, broadly, two buckets.

There were some IT upgradation projects and enhancements that were planned earlier, which were executed in this quarter. So, that is one time in nature, essentially to do with our SAP systems and a couple of other things. And then there were some repair and maintenance spans, which were... Front-ended at the start of the year, those will get normalized over the rest of the year. So they were essentially, given that we take shutdowns in quarter two, they were front-loaded into quarter one for booking the orders.

So those are the two major ones.

Understood. And if you could quantify the amount?

So together these two will account for about a million... Euro. Yeah, a million euros.

Got it, got it. And now, sir, now, since you took over, in Parador, we were looking to change the revenue mix. So, diversify from Germany, get into more commercial applications. So, if you could just help us understand how have we progressed in the last two, three years since you took over in Parador, and in the next one or two years, how do you see this mix going from currently?

Yeah, so commercial from being, in true sense, being less than 5% and these new markets again contributing again to less than 5%. We are, earlier in response to an earlier question, I had mentioned that there is line of sight of adding a good 20-30 million on last year's revenue base. That would push. The share of these two components to about 20% in the portfolio. So that's the outlook for the next couple of years on that front.

Understood. And now, appointment of this BCG, so last two-three years, we had worked on our course reducing the break-even levels. We had also, I think, removed certain employees last quarter. So, if you just help us understand what more is BCG expected to do in Canada?

So, yes, there's been a lot of cost-out work over the last couple of years on that, and thank you for summarizing the topic on which that has been done. You are absolutely right. The external advisors like BCT also help in bringing an additional layer of analytics and market benchmarking, which allow us to go deeper on these cost topics. They are essentially working on four areas. There is a topic on pricing, there is a topic on procurement, there is a topic on SG&A, and finally the last one is on operations. So just the analytic horsepower that they can bring and also the benchmark. Benchmarking that they can bring, having worked with a wider set of players in the industry and across geographies, typically end up being useful in these programs. So think of it as what we did was Horizon 1 savings, and now we are pursuing Horizon 2 savings.

Understood. Understood. And lastly, on the Polymer business, is key encodes now being recorded in Polymer only?

In stand-alone, no, but in consolidated, yes.

In fact, we have changed the segment name from polymer to pipes and construction chemicals.

So this improvement in profitability, how much of it is because clean code is now being recorded in polymer because I believe it was a high margin segment.

It is a high margin segment and that's why the performance at a standalone level has recorded an improvement. So I will distinguish the impact is and the positive impact you talk about is independent of the impact of clean code. So clean code's addition only makes it better. But even if we exclude that, there has been an improvement in the margin profile. Thank you so much.

Thank you. Ladies and gentlemen, anyone who wishes to ask a question, press star and one. Next question comes from the line of Vinit Joshi, an individual investor. Please go ahead.

Hello? Inaudible?

My question is that, are we considering moving Panadon manufacturing to low-cost manufacturing locations like India, especially in the wake of India, EU, trade deal? Will it really help us to reduce our cost structure? Second question is around the debt-to-equity ratio. Are we looking at having some sort of a price issue? It makes sense that the debt-to-equity ratio is more reasonable, which we alluded to earlier in this call. And third point is regarding what is the right to win the PBC 5 segment, with already established players like Supreme and Astral and, you know, Prince and so many others, which are already in the market, dominating the sector. That's all.

Thanks.

Do you want to take the date to equity? Yeah, so date to equity, our date to equity ratio as on 30th June is 0.68 times, which is well within our manageable range. As far as decision on right issue or other part is normally, board is taking those decisions. So, I will not comment on that side. Thank you.

Thank you. Sorry, what was the question on Parador? Moving manufacturing.

Yeah. So, it's a great question. At the moment, most of our manufacturing is out of our plants in Germany and Austria. Over the last 12-14 months, we have been exploring options of... As we are diversifying our markets and global footprint, the need to diversify our supply base and building local for local is an important consideration. In doing that, cost is one criteria, and I'm not talking cost of just the material, but cost to serve is the important criteria as we look at these new global markets. So those options are being evaluated, whether it is India or somewhere else. I think as these get crystallized, we'll share it with you. What it also does, apart from a cost perspective, is to give supply chain flexibility and de-risk the supply chain in many cases. So it's an important strategic initiative that we are pursuing. Having said that, The most important criteria in these decision-making is the quality. There is a certain premium positioning Parador has, and there is a certain quality promise that Parador brings. In these supply choices and options that we evaluate, that is an important go-no-go criteria.

Vinesh, does that answer your question on Parador? Yeah, thanks.

I just wanted to ask about the right to win for PDC-5. Yeah, yeah. So PDC-5 market, overall, you would have observed over the last three odd years has been on a roller coaster.

So, having...

And there are three or four things which remain fundamental to winning in this. One, of course, is the brand pull and the equity of trust that you can make with this product. And there, we feel with the Builder brand, there is a strong equity that we have in the market. Remember, this is a product that people... I rely on because it's behind the walls and it's in their house for the next several decades and not just a consumable product which is used and sold. Second is the quality of product. Third, in order to win with the channel, you need to have the product range. So, range and SKUs is important.

Both from a...

Execution perspective, channel access, and deeper penetration in the sales channels and in the markets that we choose is again an important criteria. So those are the three or four areas where we feel, especially in our preferred markets and select geographies, we feel we build the strength, we also have the product range, and we carry the brand to be able to scale up in that segment.

One would think, how does the consolidation of Birla New brand help in this case?

Earlier, we had standalone businesses, and now we have clubbed all of them under Birla New brand. So, does that help the cause

for pre-media production? I think the feedback from the market, from the

channel, and from our customers seem to indicate that there is a greater resonance of the brand across categories, and our ability to sell the entire portfolio rather than just one isolated product has increased. And like with most branding decisions, the correlation is hard to establish. But I think the positive trajectory of the financial performance is also an indicator that there is some volume uplift we are getting because of those rebranding decisions. So that's a strong indicator coupled with what we hear as feedback from the market. Point towards the fact that there is greater resonance of a basket of products and not just one product that people associate with.

Thank you, and all the best.

Thank you, Vineet. Thank you.

Our next question comes from the line of Achillesh B, an individual investor. Please go ahead.

Hi, thank you for the opportunity. So, Akshay, I've been following the company for the last two, three years, and it seems like we are finally turning our corners here, and I want to congratulate you on your team for the work you've done there. I just wondered if you have growing confidence in the outlook now to let us know. What are the possible targets for FY27 on revenue and margins for the whole company, and also on the longer-term target, which we had to double the revenue base, maybe 8,000 to 9,000 crores in the next 2 to 3 years? Will it be possible within the existing verticals of the company, and what kind of capital allocation might that require in terms of growing capacity or else? Acquiring Company.

First of all, Akilesh, thank you so much for your kind words. As a team, we are excited at where we are. And in terms of outlook... I will only say, at least the last two quarters, we have been beating targets, so any target I share with you is a hazardous one. I will only say that we hope to continue the momentum of the last two quarters and continue to go beyond our internal targets as far as performance is concerned. The larger vision of doubling ourselves, yes, I think we are constantly sort of pursuing that. And we'll see you next time. The announcements that have been done recently, including in yesterday's board meeting about setting up new capacities and investments in that area, are a step in that direction. I think what we know at this moment is over the next couple of years, there is close to 500 crores of capex that have been allocated to known named programs and projects as these. And opportunities, whether greenfield or inorganic, they crystallize. We keep coming back to you and sharing that information. But we are also confident that at the moment, capital availability is not a constraint. And we are in the market for interesting opportunities, which allow us to reach the milestone you spelled out on an accelerated path.

Yeah, and sir, would you say that this is the year where Parador will break even on a full year basis because all the good work you have done on the other verticals, as you know, get diluted by, you know, the impact Parador has had over the last few years. So, there is a lot of untapped potential in your company, but I mean, do you think that this is the year After finally, that Parador will stop working against us.

We are confident of that. Also, it's not a question of dilution or undilution. We are a multi-product company, and the beauty of that is that there will always be some part of the portfolio which is outperforming, and it allows us to hedge through cycles geographically or across the products that we play. So, yes, given the core markets of Parador over the last couple of years, the market conditions were tough. I'm glad that in those tough conditions, we took tough calls to diversify and invest in newer markets, which are more resilient and which continue to offer a great promise. And yes, this year, The outlook is strong. We are looking at growth overall from a revenue perspective, and we are looking at more than breaking even this year.

Okay. That's great to hear, sir. I'm looking forward to your numbers going ahead. Thank you.

Thank you, Akhiresh. Thank you so much.

Thank you. Next question comes from the line of Mano and individual investor. Please go ahead.

Hello, am I ordering?

Yeah, there is some background now.

Hello. Oh, sorry.

Just a signal question.

Actually, regarding pipes, we are still in lower than as of now. So, despite the PVC prices have risen, what's the issue here? I'll find it.

Hello. Yeah, I'm not sure if I've understood the question. Oh, yeah, no, it is.

Hello, sir. Yes, Mano. Yes, Mano. Can you repeat your question, please? Thank you.

Yes, I asked a single question. Actually, regarding the pipes segment, we are actually, as of now, in losses. So, I think, despite the PVG prices have risen upwinds, so, what's the landmark you are going for?

Manav, actually, the PVP prices in April went down close to 30%. So, you were right.

I mean the short of years now.

Correct. So, if you recall, quarter four, we had posted good positive profitability numbers. The previous quarter, this quarter there was again sharp decline in prices which led to decline in volumes and I think that's been a trend reported by all industry players. So the numbers you see this quarter are somewhat impacted by the volume decline that has happened. But we believe this is a transient phenomenon and as we enter into Q2, There are strong indications that hopefully the worst is behind us. As far as the price levels are concerned, there are some measures that the government has also put in place which help in forming of the prices. So, those are good indicators. And the current momentum seems to suggest that the story of April should be well behind us. And thank you for that, which I believe you say. Thank you so much, Manokos.

Thank you. Thank you. Our next question comes from the line of Sai Ganesh with Square64Capital Advisors. Please go ahead.

Yeah, thank you for the follow-up. I wanted to know basically what is asset time for our board and final telemina plant. We found this yesterday. Hello.

So asset time will be 0.9x. We are targeting to generate, yeah, 140 crore revenue. This 166 crore also includes the land cost. Other than land, it will be around 145 to 150 crore investment.

Wanted to know about the status of our three-station project, BCR, yes, last year, I think so.

Hello.

Yeah, as I mentioned, work is on in full swing. Can you hear us?

Yes, yes, yes.

Okay. So that project is on in full swing. We are on track as far as timelines are concerned, and we, as I mentioned, Q4, we should look to commission the plan.

Okay. And one more thing I wanted to know, as I have heard, we have our capets total of 127 crores for mail-off, boats and panels, and 40 crores of OBVP. Total capets of 167 gave announced last year. How took that, how much has been done, and how much is the balance-tapped capets? I wanted to know about that as of 30 June.

Sir, the question is, so last year we have announced 127 crore of lower and 40 crores of OPVC. So, OPVC capex is already completed. Okay. In the last month, and NALO projects, we are right now in the phase of civil construction work is going on. Probably from next month onwards, the installation plant and machinery will start coming in, and installation work will start.

I would say we would be close to 90% in terms of order commitments, maybe 90 to 100% from an order placement perspective.

Okay, and can we share the highlights of the revenue and EBITDA contributions of Clean Codes in Q1, if I do in this event?

So, Clean Codes will be revenue of 9 crores during the quarter. And with EBITDA.

Thank you, Saeedanish. Yeah. Yeah, thank you.

Yeah. Thank you.

Ladies and gentlemen, are there any more questions?

No, sir. As there are no further questions from the participant, I now hand the comments over to the management for the closing remarks. Thank you. And over to you, team.

Okay. Thank you once again for joining us today. We sincerely appreciate your time and insightful questions and your continued interest in Birlanow. If you have any follow-up questions, please feel free to reach out to our investor relations team. Thank you, and have a great weekend.

Thank you so much, sir. Ladies and gentlemen, on behalf of Virlan Limited, that concludes to this council. Thank you for joining us, and you may now disconnect your line.