Rushil Decor Limited (RUSHIL) Q1 2027 Earnings Call Transcript

Ladies and gentlemen, good day and welcome to the Q1 FY27 Earnings Conference Call of Ruchel Dekir hosted by Asian Market Securities Private Limited. As a reminder, all participant lines will be in a 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 a touch-tone phone. Please note that this conference has been recorded. I now hand the conference over to Mr. Karan Bhatalia. Thank you, Anur, to you, sir.

Thank you. On the occasion of the conference, we welcome all to the Rufil Dakar, one QA 527, Investor Convoys.

From the management side, we have Rufil Dakar, John Benedict Director, and he invited us.

Now, I'd like to hand over to Dr. Pshir Viper is opening the door for Q&A. Thank you. And now what are you, Rishul? Thank you, Karan Dain. Good afternoon, ladies and gentlemen. Welcome to Rishul Record Limited earnings conference call for the first quarter ended 30th, June 2026. Thank you for joining us today. I am joined by our CFO, Mr. Hiren Padhya. The earnings presentation has been shared with the stock exchanges, and we hope you had an opportunity to review it. Let me begin with an overview of our performance and the operating environment during the quarter. The first quarter of financial year 2027 saw a steady improvement in the company's operating performance, supported by the normalized operation at our Andhra Pradesh MDA facility, and improved contribution from the laminate business. On a consolidated basis, revenue from operation increased to 27.8% year-over-year to Rs.2920 million in quarter-one financial year 27. EBITDA was Rs.182 million with an EBITDA margin of 7.9%, while profit after tax was Rs.20 million. During the quarter, the company also undertook a planned annual maintenance shutdown for a week in April. During the period, we continued to right-size overhead costs, improve operational efficiency and streamlined product inventory. Coming to the remnant business, it remained a key growth driver during the quarter. Revenue increased 65.3% year-over-year to Rs.736 million, supported by improved domestic demand and improving traction in export market. Domestic revenue grew 60.6% year-over-year to Rs.251 million, while the export revenue increased to 67.9% to Rs.485 million. Total sales volume increased 27.9% year-over-year to approximately 2.8 led leads. Blended realization also improved by 29.3% year-over-year to Rs.836 per sheet, supported by an improved product mix. The business reported the EBITDA of Rs.52 million with an EBITDA of 7% margin. The Jumbo Laminate business made a progress during this quarter. Revenue was Rs. 110 million, representing the 25% substantial increase, while the total sales volume increased to 20.4% subsequently, to approximately 1.13 red sheets. The business reported EBITDA of Rs.23 million. Translating into an EBITDA of margin of 20.6% in line with the management expectation. The improving contribution from the Jumbo Laminate supported the overall performance of the Laminate business. We continue to see increasing acceptance of our Jumbo Laminate offerings across the international markets, which remains an important area of focus as we work towards improving capacity utilization. Turning to the MDF business, operations remained stable during the quarter following the plant annual maintenance shutdown. Revenue increased to 17.2% year-over-year to Rs. 1,456 million. The EBITDA was Rs. 1,23 million with a margin of 8.4%. Focus remains on increasing the share of value-added MDF products, which will help improve realization, profitability, and over the medium terms. We are also continuing to strengthen our MDF retail presence across the key market during the quarter. Revenue increased 13.1% year-over-year to Rs. 96 million, supported by 6.9% growth in sales volume. The business reported the EBITDA of Rs. 8 million during the quarter. The broader operating environment remained challenging, chemical and other raw material prices remained elevated, while freight costs were significantly higher, and the shipping routes continued to face disruption arising from ongoing conflict in West Asia. Despite these challenges, the laminate business reported a significant increase in export revenue, supported by increasing acceptance of jumbo laminate across the international market and improved product mix. At the same time, we rationalized our domestic market mix by optimizing supplies across the selected regions. This has allowed us to focus more on market and customer segment, offering better profitability across the MDF and laminate business. During the quarter, we further strengthened our domestic distribution network by adding direct 15 distributors and 46 retailers and dealers. We are also expanding our... International presence by entering into two new markets, Honduras and Greece. These initiatives will help us improving our market reach, strengthen product availability, and support further growth across our business. Looking ahead, our focus for financial year 2027 remains on improving capacity utilization in jumbo laminates business and increasing the share of value-added MDF business. We will also focus on improving the overall business through better product mix. Additionally, we continue to focus on improving our working capital and reducing debt. With no major capital expenditure planned beyond the maintenance capex, we remain focused on strengthening our cash flow, improving operational efficiency, and creating long-term value for all our stakeholders. Thank you. That concludes my remarks. I will now hand over our call to our CFO, Mr. Hiran Padaya, to take you through the financial performance in Data Digital.

Good afternoon, everyone, and thank you, Mr. Ocean. A warm welcome to all participants joining us today. I will now take you through the financial and operational performance of Ocean Depot Limited for the first quarter of FY27. Starting with the consolidated financial performance, revenue from operations for P1 FY27 was Rs. 2,290 million, reflecting a growth of 27.8% year on year. Gross profit for the quarter was Rs. 892 million with a gross margin of 39%. EBITDA was Rs.182 million with an EBITDA margin of... 7.9%. Profit before tax was 25 million, while pet was rupees 20 million. The improvement in revenue was supported by normalized operations at Anthropologist MDS facility and higher contribution from the remunerate business. Profitability during the quarter was impacted by elevated chemical and agaromotor costs and higher trade costs. Moving to segmental performance, starting with MDS business. MDF revenue for Q1 for 2017 was Rs. 1,456 million, representing a growth of 17.2% year-over-year. The growth was driven by the India-MDA business with revenue increasing 32.9% year-on-year to Rs. 1,447 million. India sales volume increased by 16.1% to 52,162 CBM, while India realization improved by 14.4% year-on-year to increase 27,736 per CBM. Export performance in MDF remained subdued during the quarter as the company continues to take a calibrated approach towards MDF exports with greater focus on markets and customer segments offering better profitability. Following the resumption of operations after the planned annual maintenance shutdown, production gradually normalized, with MDF capacity utilization at 66% during the quarter. From a profitability perspective, MDF EBITDA for the quarter was $123 million, with an EBITDA margin of 8.4%. Moving to the naminate business, naminate revenue for Q1 FY27 was Groupies 736 million, representing a growth of 65.3% year-on-year. India limited revenue increased by 60.6% year-on-year to groupies 251 million, while export revenue grew 67.9% to groupies 485 million. India sales volume increased by 6.1% year-on-year to approximately 3 lakh shifts, while India realization improved by 51.4% to Rs.825 per shift. Export sales volume increased by 43.4% year-on-year to approximately 5.7 lakh shifts, while exportization increased by 17.1% to Rs.842 per shift. Laminate EBITDA for the quarter was 52 million, with an EBITDA margin of 7%. Within the laminate business, Jumbo Laminate portfolio continued to scale up revenue from Jumbo Laminate at Rs. 110 million during the quarter, with its volume of approximately 1.13 red sheets. EBITDA was 23 million, translating into a strong EBITDA margin of 20.6%. Coming to PVC business, the revenue for the starter was 96 million, representing a growth of 13.1% year-on-year. Sales volume increased by 6.9% year-on-year, while the return for the starter was Rs. 8 million, with a margin of 7.9%. To summarize, the company reported stable performance, supported by normalized MDF operations, and higher contribution from limited business. The laminate segment, including jumbo laminates, remained an important area of growth while NDA business continued to focus on improving its product mix and realizations. Thank you for your attention. That concludes my remarks. I would now like to open the floor for questions and answers.

Thank you. We will now begin the question and answer session. Anyone who wishes to ask questions may press star and 1 on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use handset while asking your question. Ladies and gentlemen, we'll wait for a moment while the question queue assembles. The first question is from the line of Rishabh Shair Dhala from Praveen Retal Wealth. Please go ahead.

Yeah. Am I audible?

Yeah.

So, thanks for the opportunity. So, my first question is on the MDF business. So, I am just slightly new to the company and I would request you to, you know, explain me slightly in detail. So, for the entire year, S526, we have done MDX sales of around 630 crores. Assuming that it would have been a normal year, what would have been the breakup of that into exports and domestic? And within domestic, what would have been the breakup between? OEM and the retail sales within the MDS. And just a additional question on that. So, for the current quarter that ended, so Q1 FY26, what was the retail sales and the OEM sales?

When we speak of the domestic sales pattern, our pattern is 35 to 40% of volume has been sold to OEM, and balance is done through distribution and detail channels. Talking about the export, our strategy is really clear that we'll be exporting somewhere around 4,000 to 5,000 cubic meters a month. So, in order to just maintain the, what I would say, we can maintain the production capacity in a better manner. And because of this 4,000, 5,000 cubic meters export, there is less pressure on domestic sales as well.

Right. So normally our sales to OEMs are closer to 30 to 40% of the MDF sales, right? That understanding is correct, right?

35 to 40%.

Right. So what has been the volume growth in the MDF sales for this quarter to OEM and to retail? What has been the breakup?

Thank you.

Right, sir. So, my next question is on the industry dynamics. So, the last information available in the public domain, please suggest that there was a... Sir, am I audible? Yeah, yeah. So, the last information that we had in the public moment, it suggests that there was significant supply as compared to demand. So, can you just brush us up on what are the latest numbers and any other capacity of NDF that is coming up? Just want to understand that how will the pricing play out going ahead because there is one leader who has not taken a price reduction and there is another player which has already taken. So just wanted to know your views on the industry dynamics.

See, as we have mentioned earlier, MDF as an industry is growing at a 20% CAGR. And when we talk about 20% CAGR, that means an additional capacity of 800 cubic meters a day can be absorbed in the market easily. But as you see, there are too many. New factories coming into the market. Maybe it is organized or unorganized. So, yes, going ahead, we see the good amount of competition in domestic market. And yes, the price, we have taken some fight which was acceptable to the market and The raw material prices have been included in that. So, yes, we don't see any negative side of pricing going at this point of time. The prices, you can say, is more sustainable at this point of time.

Right, sir. Thank you so much and all the best.

Thank you. Thank you. The next question is from the line of Anubabh Goel from Cosmo Ventures. Please go ahead.

Mr. Anubar, please go ahead, sir.

As there's no response from Anubha, sir, the next question is from the line of Ankit Gulgulia from Gravita Concelling. Please go ahead.

Yeah, hello. Am I audible? Yeah, good afternoon. Thank you for giving me the opportunity to talk to you. Just wanted to understand how does the company looks forward for the debt overall that we are having in the balance sheet? Are we looking to steadily reduce the debt in terms of the overall debt equity or will it more or so remain the same what we are seeing witnessing right now?

Okay. As of now, if you see the total, I mean, the date including working capital is around 260 crore. Now, we have got a scheduled repayment, and as for the, I mean, schedule, every year we are making a repayment of almost 55 crore. So, if you see this quarter, in current quarter, we have reduced date to the extent of 18 crore in this quarter only. So, considering the schedule which we have been given by the banks and the financial institutions, approximately second quarter of FY26 or FY28, we will be able to clear our dates. So, practically year 2019, FY29, will be a date-free company. And as mentioned in this speech also, for this particular financial year, we are not planning for any additional capex, except a small operational capex to the extent of 5 to 10 crore. Considering the fact that we are totally focusing on a new project of Jumbo and increasing our capacity in MDF and realizations, so immediately for the next couple of quarters or maybe one or two years, we are not planning for any further date. So practically, it is a question of two years from now.

Yes. So, effectively, if there is no further plan for at least one or two years, so we can see probably aspiration of a net debt-free company. Am I correct with that?

Yes, yes.

Yes.

Okay. Thank you so much for that. Thank you.

Thank you. The next question is from the line of Rishmi Goza from NineRace EquiResearch. Please go ahead.

Good afternoon. Thank you for the opportunity. So, my question was on laminate business. We have a capacity of 28 lakhs sheets of jumbo laminates, and in Q1, we've done a volume of roughly around close to... One second, close to 1,3,000 unit sheets. So, just want to check out, does it mean that our annualized rate, the utilization level is only 15% right now? Isn't that correct, sir?

So, currently, our utilization is 29%, just to correct you, because this has a different product mix, and the capacity what we view is on the base of 1mm thicknesses. And production, which we have to, is of the average of 6 millimeters to 12 millimeters. So, this way, we consider our capacity utilization is 29 percent, and aspiration of utilizing this year is somewhere around 55 to 60 percent.

Okay, okay. And going with the land rate, you know, because 11 crores per quarter, and that's 29%, at full utilization, at 85%, what could be the potential revenue, sir, from this Jambu laminate?

Again, I would like to say here that this year our aspiration, again, is to take it to somewhere around... 60% of utilization, which will take us to somewhere around 75 crores. And going ahead, if we utilize the capacity at somewhere around 90%, the potential revenue we can generate from this price would be somewhere around 140 crores.

Okay, okay. Okay. Thanks, sir. So, the next question was in NTF. So, sequentially, in Q4, our utilization level had gone up to 83% vis-a-vis 75% of the full year, and now it's coming down to 66%. Any reasons you can attribute to that, and going forward, what kind of utilization levels do we anticipate for the full year in MDF business?

See, every industry requires an annual plant shutdown to make sure that other months, like out of 365 days, other days of the plant can be utilized effectively. So every year in the month of April, we take a kind of a planned shutdown for every plant so that we are ready for other days to work with full capacity. That is the only reason we see.

Good.

Okay.

Okay. So, the full year, last year, we operated at around 75% utilization. So, will we meet that or will we be above that? Okay, nice to hear that, sir. And my second question was on, in case of the difference between, say, if you normalize that one mm sheet of laminate, what could be the price difference between jumbo laminates and the normal laminates, sir?

See, it again depends on what kind of product mix we are planning. It's not just 6mm what we see. It's about the facade, 6mm is a different rate. Then the cubicle, 6mm is a different rate. Fire retardancy is a different rate. So we cannot average it out until and unless we finally prepare our balance sheet. So it becomes very difficult for us to say and average rate what can be the realization.

Okay, okay. And, sir, if I dissect the number of the laminate business, as compared to last year, the margins were around 10%, and if I remove the laminate, the jumbo laminate, then the normal laminate business margin has come down to 5%. Is it completely because of the hit on the gas margin, or is there something beyond that?

See, our business in the Gulf region is also very high, and that we used to do from our older plants. So that was one of the hits, and another was the chemical rates. Because in laminates, we have done some further commitments over the supply. So because of this thing, these were the two main impacts. The margins were hit in the older laminate business. And also, there was a plant shutdown in laminate plant as well. Where we did a merger of, not merger, I would say we had two boilers running in one of the plants where we implemented the jumbo capacity. Now we have done a single boiler unit, so that also was one of the reasons why the production was also less.

Okay, okay. Okay. And earlier in the last quarter, you had said that you all are aiming for that 10 to 12% EBITDA margin. Going forward, any ballpark colors by when we can reach that 10 to 12% EBITDA margin on a consolidated basis?

If you ask me about, again, aspiration, I want to go this quarter. But realistically, we may take one or two quarters more to reach a good level.

Okay, okay, okay. And any guidance you would like to give for FY21 on the total revenue of the company, sir?

So, I would just say one thing that as we have given the guidance earlier, we are on it and we will be proving our best out of the business what we are currently doing.

Okay, okay. Last request, sir. Is it possible to actually have a plan to see this jumbo facility, jumbo laminate facility, if it's possible?

You can contact our investor relationship partner at Charles Bates and they will already be able to.

Okay, that is so nice, sir. Thank you so much and best of luck, sir. Thank you.

Thank you, thank you very much. Thank you. The next question is from the line of Anubhav Goyal from Cosmo Ventures. Please go ahead.

Yeah, hi, sir. Thank you for this opportunity. Sir, this 90% you mentioned the total jumbo sales of 140 crores. This is phase 1 plus phase 2, right?

Yeah, both the phase put together.

Okay, got it. And so my next question is, if you can just give more color on how we are planning to ramp up Jumbo. Like, is it the similar set of clients and channels we have for our existing laminate exports business? Because I think the largest player here has warehouses, he has people on ground to find clients and get orders, while we are doing it largely from India. So, you know, how are we approaching this, and will it take a few years to get to this 140 crore number?

So, first of all, you know, these are all new markets where we are approaching. So, there are some markets where we are already there, but basically all this... Exercise takes a few years. We have a team already sitting in India. It's not that we are not doing a different approach. We have a different approach as well. But this is typically all the certifications, all kinds of necessary documentation has to be done for the countries where we are approaching. So we have already created many of the countries where the Jumbo Laminates have been selling as one of the biggest products. Um, but, uh, These markets are like a very slow openers. Like once you are done with them, your contract is for two years, three years. So we need to correct that contract. And we are on it and we'll be like our next aspiration about using this plant at 50-55% this year. And we will be utilizing like 70-75% next year. So yes, very soon down the line, two years, we may reach to our target of revenue.

Okay, sir. Got it, sir. And so just my last question is, it's a very volatile situation, but any color you can give, sir, on what should we expect for laminate margins for 2Q and rest of the year from the 5% in 1Q?

So, as you rightly pointed, laminate, or we are just older, laminate, excluding the jumbo, has got normal margin for the last couple of years is around in the range of 9 to 10 percent. So, this particular quarter, we have got... Shutdown, so that has affected. Secondly, the chemical prices have also a negative impact as of now. Third, the war situation has also affected. So I think all these three aspects have affected the whole quarter. But otherwise, our normal margin is in the range of 9 to 10 percent. And if we include the jumbo part, I think our margin should be more than 10 percent at least as a combined linear segment. So, it will further improve, provided there is no uncertainty in terms of chemical pricing and poor issue.

Got it, sir. Thank you so much, sir.

Thank you. The next question is from the line of Rejah Mehta from Green Airshell. Please go ahead.

Thank you for the opportunity. Sir, so one is, you know, on the MDF bit, so our volume growth was flat for this quarter. Any specific reasons? If I recall correctly, I think in Q1 of FY26, we had a fire and our plant was shut for space. In fact, we should have seen good volume ramp up in this Q1 FY27 because I believe the base was weak year on year.

So, there is no specific reason, because our volumes which we have delivered is on the line, because as we see, we have taken a shutdown, which was planned. Another thing was chemical pricing, and third was situation in West Asia, because we are dependent on exports in the Gulf as well. So, these are the three main reasons.

Thank you. How have exports been in FDF in Q1? Have you exported anything or not really?

No, not a big volume. Somewhere around 255 seed games.

So was there growth on the export side or was it flat or was there a degrowth for the export volumes of FDF?

No, actually, we had the orders in Herbert because of the container shortage across the Across the globe, we were not able to find the containers at the right price because of which the export volume was a bit on the lower side.

So, typically, when we take those maintenance shutdowns, and I believe this was a planned maintenance shutdown, right? So, I believe normally the way companies operate is, you know, that they stock up for the inventory for the loss of production days, and hence, ideally, there should, it should not impact sales volume if there is demand. That would be a fair understanding, sir?

Yeah, that is a fair understanding. We did plan for the, it's quite for domestic. And we did the sales among that only, but the thing was the unexpected chemical price, which was fluctuating because of the people, the domestic buyers were a bit reluctant on buying the, either they are buying at the right price or not, either they want to pile up the stock or not, they will just ask for the requirement, they will not ask for anything to stock up, because of which the volumes remain the flat.

Okay. And, you know, so overall, I think for the quarter, our gross margins have declined significantly, which is a 900 BIPs decline, if I look at it, quarter on quarter. Of course, we have seen a lot of inflation, but just to quantify this, so if I look at MDF, MDF, I believe we have taken around 15% price hikes. So, post the 15% price hikes that we have taken, have we taken any more price hikes? So, if yes, no, you know, what is still the gap left to, you know, be covered up?

No, we didn't look any price hike after 15%. And current market scenario is all about the demand supply. So, everyone is playing accordingly, I would say.

After this 15% price hike, of course, I think our margins have declined, which effectively means that there is, you know, more inflation to cover. So how much more price hikes? Hypothetically, we would need to take to cover up for this input cost inflation.

Actually, I cannot give you any guidance on that because the reality is market is not going to accept any further price hike.

So, okay. So, let me ask you this way. So, the 15% price hike that we have taken, is that also still sustaining on ground at 15% or are we passing on some trade discounts and effectively what it means is that, you know, 15% price hike that we have taken, it is probably actually only 10 plus 10% or something to that effect on ground.

No. So, currently, the 15% hike is what we are sustaining at. And that is, we are not passing any kind of discounts or anything. So, we are maintaining our given price hike.

Okay. And so, a similar question on the laminate side also, that we had taken around 10% price hikes in the past. So, any more price hikes that we took in the current quarter, Q1, and again, how much more gap to be covered for inflation, if any, if you can share that number as well.

In limited, the 10% price is covering our inflation as of now, and we don't see a further hike in that as well.

Okay, so 10% is the only price hike that…

Yes, yes, and that is covering the operation. Sorry, I didn't get your question. Last, the voice got cranked.

Okay. Am I audited?

Yeah, yeah, yeah.

So, your voice is breaking.

Sure, I will join back the queue.

Thank you, ma'am. Thank you. The next question is from the line of Vicky Vagwani from Garden Capital Partners. Please go ahead.

Hello, sir. Thank you for the opportunity. I had three questions basically for MDM business. So, what is the current export run rate now? Have the export started again, so how are the things today?

No, export is still on the lower side because of the freight component, very high, currently. So, we have a good book of orders with us in hand, but unfortunately, the containers rate are so high that we need to take that permissions from customer before exporting it. Yes, we are on it, and we will be doing it with a positive wave for this quarter.

Sir, it was somewhere around 1500 to 2000 cpm per month, is what my knowledge earlier. What is current situation, if you could please give?

It was 5000 cpm. It is 4000 to 500 cpm per month. The run rate for the last year was, and currently, if we just talk about July, we have somewhere around 3,200 cubic meters done.

Okay.

Thank you so much.

So, second question is on, if you could give some color on raw material pricing, raisin pricing and wood prices quarter on water.

Wood pricing has remained flat this quarter, but the raisin prices have gone substantially high, like Somewhere around close to 35 to 40 percent. Okay, perfect.

Have they come down now in July? Because crude has corrected a pitch also.

Very marginal. Very, very marginal. Perfect, perfect.

Thank you so much, sir. This was from Mind.

Thank you.

Thank you. The next question is from the line of Rizmig Oza from Nine Raise Equities Research. Please go ahead.

Rishme Goza, please go ahead.

Yeah, am I audible now? Yes, sir. Yeah.

Yeah. Yeah. Thanks for the follow-up opportunity, sir. My question was regarding the jumbo laminate, sir. For this 28 lakh sheet capacity, what will the capex we have done, sir?

Maybe the capex of somewhere around 90 crore rupees.

90 crore. And potentially we will do asset turn of around 1.4 or 1.5 times on this to reach around 140 crore at full potential, right?

Yeah.

And, sir, in Q1, we have reported almost 20% EBITDA margin for this jumbo laminate, and this is at just a utilization of around 29%. So, as we ramp up just around, say, by end of the year, 255-60%, and next year, 75%, what could be the ideal EBITDA margin we can expect from this business, jumbo laminates?

It is very earlier in this situation to say because of the fluctuating raw material prices, but we would say our expectation is we would maintain such margins across the year.

Okay. Okay. And the last question, sir, is somewhere, if I'm trying to understand the full potential of the company, if you run the MTF at around 85% utilization, we should do around 750-800 crores of revenue. And another, laminates earlier, we used to do 200 crores on a steady state. And if I add 140 crore jumbo laminate, the total should go to around 1,100 crore, maybe 2-3 years down the line. If you are running everyone at all the plants at 85% utilization, the assumption is fair enough, sir.

See, as of now, you know the turnover last year, right? Now, coming to NDAF, where you said the, rightly said, but then it depends upon the actual capacity utilization along with the valued rate proportion. Now, internally, we have a target of MDF, of course, to achieve the, I mean, quantity-wise target of 50% and the value-wise 60% in terms of whether it's put-ups. If that achieves, I think the turnover may exceed whatever you are saying. However, in case of laminates, normal turnover is around 200 crores for the existing laminates, so that can go up to 250 crores, definitely. Now, in case of jumbo, again, it will take some time. So, and considering the today's volatile situation, I think we would not like to give any guidance as of now, But yes, NDS will have a better, I mean, realization in quarters to come. So far as laminate is concerned, normal margin will be maintained in terms of existing laminate, that is around 9%, and Jumbo, as rightly said by Roshul Gai, we will try to have better margin in the coming quarters, but it is again too early to say. So I think the real picture will come maybe after one or two quarters. So it is too early to give any guidance on this side. But it is a better, that is for sure.

Thank you so much, sir. Because as a long-term investor, we were just trying to understand the full potential of the company in a normal steady state of business, maybe two, three hours down the line. I appreciate for all the patient answers. Thank you so much, sir.

Okay. Thank you. The next question is from the line of Pranav Margin, who is an individual investor. Please go ahead.

Thank you so much for the opportunity, sir. I'm just new to the company. I want to know the positioning of the company, and I want to know why there is a difference in realization of Rootsie Decor and other competitors. There is around 12 to 13% of difference in 7 to 8 years.

Hello. Can you just repeat because we just break your voice. Can you just repeat the question?

Sir, actually I want to add two questions. One, I want to understand the positioning of the company in MDF segment. And second thing, I want to ask the difference in realization of the Rishi Decor and the other listed players. There is differences around 15 to 16 percent for 8 to 9 years of players.

Okay, so first question I would like to answer in this way, that we give the realization on flat basis. We do not add any logistic cost or we do not add anything. So whatever we say, our number is actual realization what we make, right? If I add my freight costs, then roughly across India, my freight costs would be... Anything somewhere to 9% and we can like extrapolate this way as well. So, our strategy is clear that whatever we deliver, whatever we say the number are the realistic number, we do not extrapolate it in this way. So, and another thing is the value addition. The value addition plays another big role. So if you see our plan in this way, that our target of value addition was somewhere around 50%, which we are committing this time also. And last year, but the actual scenario for this quarter was 45% of value addition. And in terms of revenue, it was 54% of revenue addition. So this way, if we consider ourselves, then we are not... In difference of 10 to 15 percent, our margins are like 2 or 3 percent, maybe plus or minus to other competitors.

Okay. Okay. And, sir, other thing on the BIS, I want to understand how much importers have got the BIS license to kill the debt and how much exporters have got the BIS license.

Export, like all Indian manufacturers have got the BIS licenses.

For this import, importance.

And as per the information, 8 to 10 factories have already got the BIS licenses. You are from Vietnam, you are from Thailand. Okay. Okay. But there is no subsequent amount of import in India as of now.

Thank you, sir. And one more question on the raw material cost. From the competitor, your cost is 4-5% higher. So what is the reason of that? And I just researched, in the south, the timber cost is 3-5% lower as compared to south. So you need to have a lower raw material cost, I think.

No, no, raw material is all dependent on the sourcing thing. Wood prices have been stable for quite a long time, and this resin prices have been volatile because of too many reasons. It's not just one reason.

Okay. And what is the kilometer of radius? Sorry.

Sorry, can you repeat the question?

Sir, actually, I want to understand the raw material. There is a difference of 5% to 6% of raw material cost between you and your competitor. So I want to understand the difference. And I think your cost will be lower because wood prices in south are lower by 3% to 4%.

Yeah, but at the same point of time, the resin manufacturers are presently located more in the north than south. So, typically, resin is to be bought from other... So, with other zones, maybe not sometime west, so that plays a bigger, vital role as well. It's not just the vote cost which makes the NDF.

Okay. Okay. Thank you, sir. And on the export side, I just want to understand that as you mentioned, the freight cost is high. But for the Vietnamese and South Asian countries, the freight cost will be higher than India. So as in India, we have a kind of competitive advantage. And you are just list, your manufacturing is very low. Short distance with port, right? So, why, how that demand is going to affect? Like in West Asia, who is impacting that demand? Who is fulfilling that demand? Sorry.

Currently, Thailand and Vietnam are the people who are fulfilling their demand because the markets are open there for them as well. In India, because of the BIS, the factory does not have, so they have got the limitation of exporting it to India. Another thing is they have gotten competitive advantage on raw material side, so because of which they are also getting the better raw material pricing that way. It's on the way same, like if you incur the logistic cost, then they have a raw material saving. If you don't enter the logistic cost, then you have raw material on the higher side. So, ultimately, the selling price and selling points remain same at this point.

Okay. Okay, sir. And in F527, what is the expectation of OEMs and retail mix in MDF segment?

As I earlier mentioned, that there would be somewhere around 35 to 40% of OEM, and rest would be to the retail.

Sir, what is the difference between OEM and retail, the difference between Realization and the MDF?

The OEMs are long-term partners. We are not short-term partners. So, OEM contract has been done for a longer run, and that gives us support for the longer run. And but obviously, because of this all bulk, they have an advantage. But there is currently, at this point of time, the price for the retail and OEM remains the same. Remains the same. Okay.

Thank you, sir. And as you mentioned that your long-term contract, the price is fixed or not in that long-term contract?

No. No. That depends. We have not got any fixed-time contract.

Okay, so price is not fixed in the long-term contract, right? Sure, sir. Thank you so much, sir.

Thank you. The next question is from the line of Pratyush, Damani, an individual investor. Please go ahead.

Hello, sir. Am I audible?

Yes, sir.

Yeah, thank you for the opportunity. I just wanted to understand the market pricing dynamics. So since you said there's a little oversupply, what is the reason we are able to take price heights in an environment where there's an oversupply? So, this price hike is typically taken because of the raw material price difference, which has been substantially high in comparison to the pre-war situation. That is the only reason this price hike has happened. That is the only reason.

But is there possible inventory loss in

the future if the prices of raw material remain elevated and if there is still oversupply in the market? Maybe, yes. Sorry, sir?

Yeah, maybe, yes. Okay. Thank you, sir.

Thank you. The next question is from the line of Risha Mehta from Green Edge Wealth. Please go ahead.

Yes, thank you for the follow-up. Am I audible now?

Yeah, clear.

Thank you. So, I was asking on the laminates bit. So, we have taken a 10% price hike in Q4. So, have we taken more price hike? So, is the Elliot team sustaining?

No, no, no, we have not taken any further price likes apart of 10%, and we are recovering all the overheads out of this 10%, so we don't see any stress over this.

Okay, and so what has led to this realization of 10%? I understand Jumbo, I mean, it's a small part of it, it's just a 10 crore contributor, but this realization root of 30%, can we attribute it to what?

Mainly, this was the product mix which had made the big difference. We did a good amount of value-added business in Laminate also, which has escalated our spreadsheet realization in this way.

And what has, like, driven the 50% volume growth in Lampness? Is it the domestic business or the export business? Because, again, like, Jumbo Lampness is just 10 crores, so that could not have, you know, contributed to higher volume.

Can you repeat the question? I didn't get your question rightly.

So, Laminates, we have seen a volume growth of around 28%, right? So, what exactly is driving such high volume growth? Is it the domestic market? Is it the export market? I understand Jumbo is, you know, a new entrant here, but Jumbo Laminates is just a small 10 crore revenue contract. I would imagine as many as Laminates' business has also grown.

Yeah, so the volume has been basically from domestic and export both the markets. It's not just from the single domestic market. We have got some new customers in Far East also, which have played a good amount of role in Far East business. And apart of that, somewhere around 15 to 20 percent, we have grown in the domestic market as well.

Right, right, because if I see the leader, you know, they have reported quite muted numbers, so that's where this question was coming from, though I think we are on a very small base, but still nevertheless. Great, great, thank you, thank you so much. That's it from me.

Thank you, ladies and gentlemen. That was the last question for today. I would like to hand the conference over to the management for the closing comments.

Thank you all for taking the time to join us today for the... Thank you for your continued interest in Rishul Accord. As we continue to navigate opportunities ahead, we remain committed to achieving our strategic objectives and delivering consistent value to our stakeholders. For any further questions, please reach out to our investor relationship team at Fersgate Partners. Thank you once again.

Thank you, sir. On behalf of Asian Market Securities Private Limited, that concludes this conference. Thank you for joining us. You may now disconnect your lines.