Greenply Industries Limited (GREENPLY) Q1 2027 Earnings Call Transcript

Ladies and gentlemen, good day and welcome to the Greenply Industries Q1 FY27 Earnings Conference Call. As a reminder, all participant lines will be in the listen mode only, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing star, then zero on your touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Karan Bhattalia from Asian Market. Over to you.

Hello, everyone, who is present out here. We welcome to 1QF27 Investor Call of Clean Prime Industry. From the management, we have Mr. Samindriya Mitchell, JMD, and Mr. Sunji, CFO. I now hand over the call to Samindriya for his opening remarks. Postcase has been opened up for Q&A. Nobody will stand there. Thank you.

Thank you, Karan, and good evening, everyone. It is a pleasure to welcome you all to Greenpline Industries' Learning Conference Call to discuss our performance for the first quarter of financial year 27. As highlighted during our previous earnings call, we were witnessing encouraging demand momentum across our businesses, and I am pleased to share that this trend continued through the first quarter. In Q1 FY27, we delivered double-digit volume growth in both segments In line with our guidance. On the marketing front, we continued to strengthen our brand presence and reinforce our commitment to sustainability during the quarter. We launched our one-sheet, one-tree campaign, a long-term sustainability commitment under which we plant one tree for every plywood sheet supplied for infrastructure and interior projects across India. This is not a time-bound campaign, but a continuing promise that reflects our vision of contributing to a greener India alongside our business growth. The ongoing geopolitical tensions and the recent conflict in the Middle East resulted in elevated imported chemical prices, extending the sharp cost pressures observed towards the end of Q4 FY26. This price increased across the industry. As this situation gradually improved and supply chains normalized during the second half of first quarter FY27, input costs began to moderate. Consequently, the effective price increase currently stands at approximately 7-9% in the MDF business and 3-5% in the plywood business. We are regularly monitoring the situation and will take corrective measures as required. Now, I would like to update you on Greenply Q1 FY27 financial and operational performance. Consolidated revenue for Q1 FY27 stood at 724.9 crores, registering a robust 20.7% YOY increase. Our consolidated core EBITDA was 78.3 crores, with a core EBITDA margin of 10.8, representing an expansion of 50 basis points year-on-year. Let me share the highlights of our individual business segments. In our plywood business segment, we have achieved a volume growth of 13.8% on a YOY basis. In Q1 FY27, with a revenue of 526.6 crores, value growth of about 16% on a YOY basis. The realization stood at 265 per square meter, a growth of 4.3% on a Q on Q basis. On the margin front, our core EBITDA margin stood at 8.4% for Q1 FY27, a growth of 50 basis points YOY. Moving to MDF business, we have achieved a quarterly revenue of 195.7 crores with volumes reaching approximately 58,000 cubic meters. This reflects a strong YOY growth of 32.8% in value and 24.7% in volume terms. The realization improved from 33,525 per CBM, a growth of 9.9% on a Q1 Q basis. Margins for the quarter stood at 17.3%, supported by higher sales and operating leverage. Moving on to the Furniture and Fittings JV, we achieved a sale of 13.61 crores in Q1 FY27. The JV reported a tax loss of 11.48 crores in Q1 FY27, with our share of loss amounting to rupees 5.74 crores. I am pleased to announce that the MDF segment commercial production of new flooring manufacturing line commenced successfully on 20th July 2026. This is marking another significant milestone in our growth journey. Our expansion projects, including the new MDF facility at Vadodara and the new greenfield plywood manufacturing facility in Urissa, are progressing as planned and remain on track for commissioning within the committed timelines. On the balance sheet front, we continue to maintain a prudent financial position while investing for future growth. As of the end of the quarter, our consolidated net debt stood at 533 crores with a debt equity of 0.57x. This remains well within our guidance. For the range of 0.7 to 0.75, reflecting our strong disciplined capital allocation and healthy financial position even as we continue to execute our planned capital expenditure program. Overall, we remain optimistic about the demand outlook and the momentum across our businesses with our expanding manufacturing footprint. Strengthen brand portfolio and unwavering focus on operational excellence, we are confident of sustaining our growth trajectory. We are confident to achieve the target of 10% volume growth in plywood and 25-30% volume growth in MDF segment for the full year and remain committed to delivering consistent, profitable growth while creating a long-term value for all stakeholders. With this, I would like to open the floor for Q&A session. Thank you.

Thank you very much. We will now begin with the question and answer session. Anyone who wishes to ask a question may press star and 1 on their touchstone phone. 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 a moment while the question queue assembles.

The first question is from the line of Sneha from Nuama.

Please go ahead.

Hi, good evening, team, and thanks a lot for the opportunity. Just a couple of questions from IA. Firstly, just wanted to, you know, understand the plywood margin strength while your gross margins have improved on a quarter-on-quarter basis, what would be the reason for, you know, a drop in your revenue margin?

I think the major reason for a drop is even though, you know, the volume growth we've been able to achieve, but I think the absolute number was very low. And the base in Q1 FY26 was kind of low. So even though we achieved the volume, but the absolute number is far away from the number we did in Q4. So the moment we start reaching… The Q4 number, which is anywhere close to 600 and 600-plus every quarter, I think 10%-plus is very easily achievable.

Suri, am that from coming quarter or for your annual number, are you comfortable giving 10% as a margin guidance?

I think we still are very confident of the 10% margin guidance that we've given. The only challenge that we had in Q1 was that we lost out on sales. If you look at the level of utilization level in the capacity of the plants, it was only at 92-93, which last quarter was above 98-99%. Yes, sorry, we were answering Sneha's question that the line got disconnected. So, the absolute number in this quarter was much lower than Q4. And I'm quite confident that, you know, once we do the numbers, much higher numbers in coming quarter, I think we'll easily be able to achieve the 10% guidance. Also, typically, April, May, there's always, you know, plywood being a very manual business, I think the labor force availability in April, May is lower. And there was election this time, so that's the reason our plant availability was, utilization was lower, and even outsource utilization was lower. So that kind of did not help us achieve the ideal turnover. We could have done much better number. Going forward, I think we will get this 10%.

On your MDF business, while your volumes now have again dropped on a quarter-on-quarter basis, definitely doesn't increase, your gross margins have actually improved and your EBITDA margins have fallen and your EBITDA margins have improved. Can I just get the connection you're also in the MDF side?

I think so. I think if you compare from the previous quarter last year, we were sitting at about 46,000. So, against that, I think we've done 57,805 cubic meters, right? So, our volume has kind of gone up by 24.7% why or why?

Sir, I'm again trying to compare quarter and quarter. Quarter and quarter definitely does a dip in MDS, which is seasonality, I understand. But if I look at your gross margins, they have gone up. So basically, let me just put it other way. In case of your EBITDA, you know, EBITDA percentage margins of MDS, with whatever value added share that you're doing, what could be the, you know, EBITDA margin movement that could, that we can see even from these levels?

It's very difficult to tell you, but I think Sanjeevji will come back to you, but what will be the range?

The capacity right now we have, the EBITDA margin will be around 16% to 17% on a sustainable basis. Once the other line will come up, where we are doing around 70% extra capacity we are adding, so there will we get some operating leverage on that time, or the EBITDA margin may increase by 1% further.

Understood. So that time it can actually reach up to even 18% is what you're trying to say.

Yeah, because you know in one manufacturing location, people are not going to double with the capacity doubling. So the cost won't double in that tube.

And it's true. I'll get back in the queue. Thanks. Thanks, team.

Thank you. The next question is from the line of Jeevil Shah from VVD Asset Managers. Please go ahead.

Hi. Thank you for the opportunity. Could you please provide us an update on the trend in both prices, particularly for the timber, woodcut from South India?

Can you please repeat?

Can you provide us an update on the trending wood prices, particularly for the timber procured from South India?

So, green ply is honestly not very heavy in South, and we are hardly procuring anything from South India. So, it's very difficult for me to comment about the South Indian timber prices. But very soon, you know, once we have the Odisha facility up and ready, we are very physically close to Ryabrak. So there will be some amount of influence of the South Indian pricing on the pricing in Odisha also. That's part of Odisha where we are going. But today we have no connection to the South India timber prices because we are not treating that as attachment to source timber.

Thank you. The next question is from the line of Disha Chambia from Threenetra Asset Managers. Please go ahead. Hello, everybody.

Yes, please.

Yeah, thank you for the opportunity. My question was about how much was the genuine decline recovery? What is how much was actually from the multi-chair gain from the allowable experience?

Sir, I think if you look at the overall plywood numbers, I think 13.8% was a volume growth and value growth was about 16%. I think this is, you know, whatever green shoots we are seeing as a category post-COVID, I think definitely we are eating the share of the unorganized. That's why we are seeing these green shoots. And our numbers could have been much better than this. As I mentioned earlier in Sneha's question, that there was a lot of disruption because of elections in manpower. Across all plants, so April, May, the utilization levels were lower than expected, and also the outsourcing didn't work very well for us in Q1. So, you know, honestly, if these two things worked, the number could have been even better. So, to be very honest, I think we've lost sales in Q1. So, if we are very seriously building Odessa, and probably even after that, we won't stop. We'll yet again build another plywood facility.

Okay, and another was on the plant. You said the commission would be starting from 28 July. Am I right?

Yes, 20th July, we did the first production for the flooring, for the HDF flooring, and from this month end itself, I think it will be in the market. So there should be some revenues in the MDF numbers starting this month.

Okay, and if I can get the utilization level that you see for the next quarter, or maybe H2, how do you see this plan going on?

You're talking about the private business or the MDF business utilization levels?

Support, sir.

I think in plywood, honestly, we've even gone up to 98, 99 or 100. So, obviously, the target will be to, you know, max out our, you know, available capacity. And in MDF, I don't think it's practical to go above 80, 82%. So, that will be the kind of target that, you know, this year we'll want to operate our plant at full capacity, assuming that, you know, next year will be the new capacity addition and we should be already ready to.

Okay, so the demand is very strong. We missed a bit of the demand this year, this quarter, and the same they seem to utilize in the network. Can I see you a try too?

Sorry, you are not very clear. Your voice is a little muffled. Can you please repeat?

Yeah, I hope it's clear now.

Yes, yes, yes, please.

Yeah, so my question was that this year, I mean this quarter, we kind of missed the demand, and from the next quarter, with the upcoming capacity, we will also cater to the demand that we missed here, and the utilization will plan according, however you said, by this year.

Right, right, right, right.

Thank you.

The next question is from the line of Resha Mehta from GreenEdge Wealth. Please go ahead.

Yes, thank you. So, first, just a clarification. I think you called out some numbers, PLY 3 to 5 percent and MDF from 7 to 9 percent. So, what was that being referred to, the price hikes taken?

The effective price is taken. So in MDF industry, the industry has taken about a 15% price rise. And in Q1, I think we've enjoyed about 7% to 9% rise and the balance got passed on in the form of schemes. So that was the reference to MDF. And in plywood category, about 3% to 5% was the price height from different product categories and brands.

Understood. And then, what are the reasons for, you know, decline in gross margins in MDF? If I look at it, QQ, there's a 300-bit decline.

I think there's a slight rise in the timber cost. Typically, you know, when there's monsoon and, you know, the timber, you start getting wet and the cutting stops happening. There's also a slight price rise that happens during this period. So that's the reason.

Please go ahead with your question.

Yeah, the other bit was, you know, on the ROCs for MDF. So, you know, I think last year, FY26, we were at around 8% kind of ROC based on the capital employed numbers, the margins that you gave, right? So how do we go to, you know, 17, 18% targeted ROCs for the MDF segment?

I think it is a multiple approach that we are trying to take at Green Plant. So we are trying to be very cautious of the capex that we are doing for the line two. So over there, we are working on improving the asset term ratio. So the capex that we've announced for the second plant is much lower capex per cubic meter compared to the capex we've done for line one. So that, on a long term basis, will help us achieve better. Also, the first two, three years, you know, we were kind of, you know, setting up our business, so the numbers are very bad, and right when we started, I think, there was a lot of competition. But I think Greenplay is a very strong player. We've been around for four decades, and ready for the next four, and I think, you know, on a long-term and a medium-term basis, I'm very confident that we'll do 17, 18 percent. Also, you know, when Greenply was one entity, we've seen MBS business perform between 2008 and 2018, you know, till Greenply deemers. And on a long-term period, we've seen great ROCs in this business. So there will be times when people will be putting too much capacity, then everybody will get demotivated. The market is going to catch up to the capacity, everybody will make money. Then again, bad times, good times. But every five-year, seven-year period, if we see it, I am very confident that we will be at that 17-18% level. And honestly, that's not like the best level. It's a basic acceptable level.

So at what margins, at what utilizations, you know, what are the 3-4, you know, milestones which we will hit will lead to, you know, the 17-18% ROC?

I think we'll have to sell. of our capacity profitably, and then only we can get closer to that number. And we have to be very careful in all the CapEx initiatives that we are doing in the future, so that once there is scale in this business, today this business is very small for us, eventually when there is scale in this business, it should make sense.

Right, and I think you did mention that, you know, you all are being cautious in your capital outlays for future capex and MDF. So, and I think for this newer plan, we are, you know, we've gone ahead with Chinese machinery. So, if Chinese machinery were cheaper and, you know, probably it had lesser downtime, then, you know, why wouldn't we have gone ahead with Chinese machinery back in the day when we actually set up our Greenfield MDF facility?

I think it was honestly being very honest with the learning curve for the organization, number one, and number two, also the first time around, we didn't want to take a chance. We were announcing green pies and greens to this category. The day we were investing into the MDF line, our network and the investment was a fail. So we wanted to be very, very careful. We wanted to go for a short, short thing. And honestly, technology is changing every day. So, you know, in the last two, three years, honestly, there's been a better development on the Chinese machine sites. And even the new line is a combination of Chinese and European. So where the heart of the plant is where we manufacture the fibre, that's still 100% European. And the press is converted from German to Chinese, but honestly we found better merits in this Chinese press.

Understood.

Yeah, specifically on the four-feet line which we are investing in currently.

Right. And, you know, on the fly side, right, so just a legacy question here. So, you know, if I look back at, you know, your last three years, fly growth, average fly growth for us has been around 8%, and for century, that's been at around 13% for Asia, right? So what have been the reasons for this gap? And, you know, have we tried and fixed those? Because I see that, of course, you know, since the last two, three quarters, our fly volumes are up with our focus on ecotech. But historically, like, what were the reasons for, you know, lower revenue growth in fly versus, let's say, the leader years?

So honestly, I think we were busy implementing and setting up an MDF business. We were getting into furniture, we were expanding categories and trying to make a big change from Calcutta to Mumbai. And when we were doing all of this, I think they were busy planning their hyper-growth in plywood. Our growth stage planning or the hyper-growth planning, I think we missed that out by two years. Honestly, we paid that price in the last three years. But I'm quite confident that going forward, they're not going to pay that price.

Right. And lastly, you know, on the ply margins, again, you know, if I compare our margins at century, right, we have been at around 8.5% average EBITDA margins over the last three years and versus century at 13.5%, 14%. So now we are driving for around 10% margins. But do we think that, you know, with scale, with the kind of 600 crore quarterly revenue run rate that we are targeting, can we also reach 13%, 14% kind of EBITDA margins?

Well, honestly, I mean, if I do century type of number, I would do probably higher than even 13, 14, but anything 600 plus, if I'm doing at today's cost rate, I will be a double digit for sure, 10 plus. So if I start doing a 800 grand number in plywood for the quarter, even I would do about 13, 14, 15. It's not a challenge. So beyond the point, I think they're getting the advantage of scale. Also, you know, for us, the businesses got demurge long ago. So, you know, all the cost gets loaded onto... On turnover basis, so once the scale in the MDF business and we enter your category, there's enough scale there, automatically the apportionment of cost would improve on the flyhood side, and 1 or 2% should improve from there as well.

Got it.

Thank you, Thomas.

Thank you. Ladies and gentlemen, in the interest of time and fairness to others, we request you to restrict to 2 to 3 questions for participating. The next question is from the line of Pard Bhavsar from Investec. Please go ahead.

Hi, sir. So, thank you for the opportunity. So, I had a couple of questions. The first one related to employee cost. If we look at our employee cost on quarter-on-quarter basis, both in terms of absolute number as well as percentage of sales has gone up substantially. So, can you throw some color on this? Like, what has led to this?

I don't think there's a substantial increase. I think the main must be the provision for increment that will be given from 1st April onwards. So, that's the provision and the lower sales. So, I think these are the reasons why, you know, percentage term, the cost is looking out, and absolute terms, the cost is higher because you've taken the provision for increment already.

So, sir, what would be the normalized number? Again, it would be 89 crores out of a number? Or what would be the provision that you've made, if that is available?

So, this quarter we have given around 98.88, so this 100 crores would be, I think, for the year, is the quarterly number would be.

Okay, so it will be in this range only. Yeah. Got it. Got it. And the second question, that you've commissioned this flooring MDF, right? So I wanted to get some sense on what is the capacity like, or you can give us a sense on what is the potential peak revenue, basically, for this business.

So potential peak revenue from this would be at about 75, 80 crores, I think. Somewhere between 75 and 80 crores is the potential peak revenue. However, when we start achieving potential peak revenue, we'll miss some of the plane board sales, because today, let's say, a panel is getting sold as a plane board at, say, about 20,000 or 25,000 realisation, and that would get sold after getting converted into flooring at about 60,000, 70,000 rupees per cubic meter. So, definitely value terms overall we're going to grow, and in cubic meters, the plane board will get replaced by flooring.

Got it. Got it. Perfect, sir. And in terms of escape pics... I just wanted to get a sense on your Capex for 27 and 28.

Please go ahead with your question.

Yes, so you were talking about the CapEx for this financial year, right? Yes, yes, yes.

So for the current financial year, I think in the present standalone GIL, we would have about 47 crores of total CapEx, including lost funding for Samet. In GSPL, we would have at around 100 crores, and in GSPL, we would have around 300 crores of capex. So approximately 500 crores of total capex for this financial year.

Great. So that was very helpful. Thank you for answering my questions.

Thank you. The next question is from the line of Utkarsh Nopani from Anandrathi. Please go ahead.

Good evening, sir. Sir, my first question is regarding the timber price movement. So, if you can just type us out what has been the change in the timber price for plywood and MDF in this June quarter on both 5.0.5 and 2.0.5 basis and what is the outlook for the next 2 to 3 quarters basis?

I think it's going to be quite stable, and you know, currently also there's not a big change. I think whatever change has happened is because of the seasonality. So it is kind of understood that in this season, because when it's monsoon and peak monsoon across India, even if the farmer cuts the timber, they can't drag it out. It's very difficult for them to load onto a truck. So typically in this season, both moisture increases, which means you're paying more for the same material, and also slightly the price goes up. So it's a very standard kind of increase which has happened, which is cyclic. And honestly, we are not assuming that there will be any price, you know, fall. We are assuming that it will remain stable at these levels. If there's any fall of price, then that should be a windfall game that the organization should enjoy. So whatever comments we are making or projections we are giving, we are assuming that timber price will remain stable on basis that we are giving our projections.

Okay. And sir, on the chemical side, as the crude oil price has gone up sharply over the past one month, are we seeing any cost inflation pressure on chemical side?

To be very honest, May, June, we are kind of starting stabilizing in June. And again, this month, things are going crazy. So yes, you are absolutely right. Crude is going up and chemicals are also seeing a new high every day. But availability challenge is not there. When the West Asia war broke out, that time people were scared that we won't get material. Now at least that clear is not there. Prices have gone up, but we will get raw material.

Okay. So, like, is there any possibility of price strike in Plywood and MDF because of rising chemical prices in the near future?

Maybe. It's very difficult to comment today. Maybe. Maybe. Maybe that, maybe we stop discounting the way we are discounting in MDF. We pull back those schemes, and in Plywood, if it continues this way, maybe we take another small increase.

Okay. That's it from my side. Thanks, Salud.

Thank you. The next question is from the line of Karan Bhatirya. Please go ahead.

Hi, Salim there. I just wanted to update, just wanted to update on the benefits we're getting from some technology or advancement we've done at the plywood units. So, you know, any color you want to give out here?

Yeah, sure. So in plywood, I think we've moved to a new technology, which we are calling as the Conti Roltec. Unfortunately, we had planned a meet also at our factory, which we could not do, but we're very keen to do that meet for all the investors and analysts, where we will show the new technology. So, today in India, plywood is pressed on a low moisture. The new plywood that we are trying to press will be at global standards where we'll be pressing the plywood at a much higher moisture level, which basically means that the material will look much better and will have a much better surface finish. And in this process, we also get a by-product which is material saving and human resource saving. So, these two savings will also help us achieve a much better margin. So, as of now, four factories in India, two factories processed fully implemented, two factories... During H1 of this year, the implementation will happen. Major implementation planned this month and the next and the next. And quarter four onwards, you should start seeing some gain on the P&L because of that as well.

Right, right, right. And, you know, any mistake. Can we revise that as well as a case for the hardware business for this year and maybe fund? And sorry, sorry, please come again.

Sorry, Mr. Karan, could you please come closer to the mic? There's a lot of disturbance. Are you using a handset?

Yeah, I think better now.

Yes, yes, much better. Please go ahead.

Yeah, it's funny, is there any changes in titles for the hardware business vis-a-vis what we spoke of over the Q4 call?

So I think hardware business, I mentioned it earlier, I think somewhere around next year mid is when we, you know, the losses will become zero. And going forward from there, I think it will be positive. Today, the biggest challenge is because of the currency, all the traded goods, which is about 60% of the turnover, we make negative gross margins on it. Or, you know, we make zero gross margin on it. So basically, we lose money every time we achieve higher sales. On the traded goods because of the euro and the dollar and the way the costs have gone up for importing. While the two products that we are producing in India, the interest depreciation for the entire business is loaded on those two products. Because for the factory, we built the entire in front day zero. So now, this year and next year, as, you know, Phase 2 CapEx happens, I think there'll be huge drop-in prices for the imported products, which will give us better sales. And in spite of a huge drop-in prices, we'll make a much higher substantial gross margin. So, I think things should start improving from there. And also, I think there are green shoots. If you see, even if we compare, you know, the last year, same period to this year, I think we've almost doubled our domestic number. So, yes, there are green shoots, but I think long way to go. But we are very confident that we'll zero our losses, for sure.

Right, right. And then the bank given in part for next two years, that's your mind. Sorry, come again? Any clarity on the debt repayment once we have done with our lucky fix?

Yes, so I think debt, I think we've given a very clear guidance that in spite of all the capexes that we've taken, at the end of this fiscal year, which is 31st March 27, we will hit peak debt around an absolute value, anything between 7, 10 to 7, 25, 30, something like that. And if you talk about debt equity that day, we'll be at 0.75x. So, I think, immediately six months after that, we should come below 0.7, and the year ending, we should be at 0.7, 0.65, something like that.

Thank you. Thank you. That's an important question.

Thank you. The next question is from the line of Adit Kamath from Android Share and Stock Brokers. Please go ahead.

Hi. Thank you for the opportunity, DMI Audible.

Yes.

So my question is regarding the MDA segment. Can you throw some clarity on what geography has seen this MDA volume growth?

I think we are trying to focus pretty much pan-India. So we've seen this growth across India, whether it is south, east, west, north. I think almost every area we've done decently well, and we've grown across. Thank you. Okay.

Thank you.

Thank you.

Thank you. The next question is from the line of Guru Darshandi from Kitara Capital. Please go ahead.

Hi, I'm Audubon.

Yes. I'm audible?

Hello.

Yes, you're audible. I can hear you.

Hello. Yes, thanks for the opportunity. My question was on the furniture business. What revenue are you targeting for FY27 and FY28?

I think we'll share that with you. I think should be around 120 to 150 gross, that range. But I think a major shift in the losses will come only once, you know, the imported bit is zero and the finished goods and all of that converted to domestic manufacturing. That's when the business, you know, will be firstly zero loss and then eventually positive.

Okay. And how do you expect the business more towards, you know, manufacturing? Currently, we produce only two products, right? Ingers and one more product. When do we start manufacturing, you know, products which are being imported currently?

I think somewhere at the end of this financial year and beginning of next is when this capex will be done. And once this capex is done, I think we can easily start producing everything here. Because the larger infra, whether it is the plating line, the polishing line, the civil building, the office, the workers' accommodation, the engineers' accommodation, everything is built to full scale. And the interest appreciation for that is only loaded on the two products that we're producing today. So, you know, both ways are getting hit. And plus, dollar and euro has been so against us that import on a daily basis for this JV, from the day this JV started, it kept getting expensive as the day passed. So, each quarter, our gross margin kept shrinking. And that is the reason, you know, why the losses are so big for the size of the business.

All right. Just one last question. So, let's say in FI28, we start manufacturing all the products. Do you see any export opportunities, we being the, you know, cost-efficient manufacturer? Do you see any more opportunities for this business?

So even today, this JV was always formed to sell the material to India. It was never meant to export. But honestly, looking at the Indian expertise of manufacturing, the availability of steel, the quality of steel available, and the overall Indian cost and scheme of things, our partner is very motivated to take the products back to their home market. So they are actually not utilizing certain capacity of their own in supplying material back to their home market from here, simply because of the cost that they are enjoying here. Compared to Europe where they are producing the rest of the goods. So, yes, I think it makes a lot of sense in the future also to continue to export.

All right. Thank you so much and all the rest. Thank you.

Thank you. Ladies and gentlemen, this is a reminder for all participants, please press star and 1 to ask a question. The next question is from the line of Varun Julsarya from 361 Capital. Please go ahead.

Yeah, hi, sir. So, I just wanted to understand on the finance cost, I mean, this quarter against last quarter we saw drop. I mean, I know there's some bit of forex gain that we look. But other than that, like, did we repay a substantial amount this quarter?

So, see, if you see the finance cost, it is equivalent to the last quarter, mostly because in the last quarter, there is a forex loss was there. And second, that the debt has increased, but we have taken the disbursement on the second half of the June. So, that's the reason it is not impacting on the finance cost.

Okay. But otherwise, what is our blended like interest cost that we have on our debt?

See, on the term loan side, it is around the 7.25 on a quarterly basis, and on the working capital side, it is around 7.

Okay, okay. And next on the furniture fitting business, so last three quarters we've been doing similar kind of revenue. Just wanted to check like, you know, even though we've added a lot of new dealers and but still our revenue is almost like flat for last two, three quarters. So just want to understand is it a, you know, a deliberate attempt because we are making gross margin loss or is it we still not finding the right kind of demand there for our product?

Oh, it's not about the right type of demand. I think, you know, some of the imported products, the prices also need to be slashed once they're produced in India. And also on the BIS side, the implementation is very poor. So even today, random Chinese hinges are available from China. But if you look at our other business, Plywood or MDF, I think BIS has a phenomenal control and, you know, it's really given as a tailwind. But in furniture fittings, the BIS implementation has been very poor, and I don't think we're getting much of a traction due to lack of import because import continues and anybody and everybody continues to import.

Okay, so, but, I mean, are we seeing a green shoot there? I mean, in terms of, I mean, like, obviously, our product is premium, and, like, you know, in plywood, you know, our competitor is more of the branded segment. So, here also, we are competing since we are only branded. So, I mean, see, even if. So, even though we would like.

We would like to compete with the Hattic Halfway, but for example, a Goldridge is 100% Chinese hardware, which is imported from China. So, like, we end up competing with them also, even though we would want to only compete with the Hattic Halfway. But by default, we would end up competing with others as well. And the China imports are really helping them. Okay.

And how is that pricing versus, say, Hattic or Halfway?

So, typically, if you see our MRP levels, we are very, very close to HETIC, but if you see a dealer landing, we would typically be 8% to 10% more beneficial than HETIC's landing. So, the dealer here enjoys a better margin. So, hence, it becomes a preferable grant for the dealer to push in terms of margin.

Okay.

Okay, sir. That's it. Thank you. Thank you.

Ladies and gentlemen, that was the last question for today. I now hand the conference over to the management for closing remarks. Over to you.

Thank you all for taking time to participate in this call. In case of any further clarification or queries, please feel free to reach to us. Thank you so much.

Thank you. On behalf of Green Life, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.