Earnings Call Transcript - XNSE:STYLAMIND 2026-11-04

Operator

Ladies and gentlemen, good day and welcome to Stylum Industries Ltd. Q2 FY27 Earnings Conference Call, hosted by Systematics Shares and Stocks Ltd. 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 touchstone phone. Please note, this conference is being recorded. I now hand the conference over to Mr. Rishabh Bothra from Systematics. Thank you and over to you, sir.

Rishabh Bothra, Head of Investor Relations

Thank you. On behalf of Systematic and Introduction Equity, we welcome you all to the Q2 FX Earnings Conference Call of Stellam Industries Limited. From the management side, we have Mr. Jagrish Gupta, managing director, Mr. Manit Gupta, whole-time director, Mr. Krishan Nagpal, chief financial officer, and Mr. Sanjeev Madan, vice president. I will now hand over the call to Jagrishji for his opening remarks, followed by Q&A session. The call will be scheduled for about 45 minutes, and no repetitive questions be asked. Over to you, sir.

Jagrish Gupta, Other

It is my pleasure to welcome you to Steylum Industry Limited. The conference call for the second quarter and a half year ending September 30, 26. On behalf of the entire leadership team, I would like to extend my sincere recognition for your continuous trust and confidential support in Steylum Industry. In the interest of time, rather than taking you through the presentation in detail, we would like to make the session interactive and engaging with a focus on addressing your question and sharing our perspective on the company's performance, business outlook, growth, opportunity, and strategic priorities. With this opening, we would now request the moderator to take over and open the floor for question-answer session. Thanks again for joining us today. We look forward to insightful and constructive interaction with all of you. Thanks.

Operator

Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and 1 on their touchtone 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. The first question is from the line of Kesha from HTSC Securities. Please go ahead.

Kesha, Analyst — HTSC Securities

Hi, thank you for the opportunity. So, first thing I want to understand is that now the new plant is commissioned. What is the outlook for the same? How is it, you know, ramping up as it started commercial production? And what sort of revenue are we expecting for this year from that plant?

Jagrish Gupta, Other

The plant is already started. One by one, two prices is already started. Third one is going within two, three days, and fourth also within few days. Within this month, plant will be fully operational. But the problem we have orders in hand for export, but the problem we are facing is due to this war, ocean freight and non-availability of vessels to Middle East countries. So even then, we are expecting 250 to 300 row turnover this year from the new plant.

Speaker 11

I'm just sorry.

Kesha, Analyst — HTSC Securities

So tell me one thing, if I see your export realization per sheet by the volume data what you have reported, that is just up by 1% year on year. So ideally considering that now ocean rates are up, you know, chemical prices have increased, so ideally export realization per sheet should have increased by double digits. So what am I missing or helps the product make more like a commodity, you know, low margin product or more like a, you know, low revenue product you have sold in this quarter.

Jagrish Gupta, Other

No, no, I think, can you help me?

Krishan Nagpal, CFO

Specialty, good afternoon. Krishan Akpal, his son. Actually, last week, my average relation was 161 rupees per kg. And Q1, the relation is 186 rupees per kg. And Q2, the relation is 181 rupees per kg. So, relation is increased.

Kesha, Analyst — HTSC Securities

So, if we compute the number per sheet, Q2, FY26, 1 year before IT 1039, and this quarter is 1052. So, here are only 1% increments.

Krishan Nagpal, CFO

Kishiji, last time we had to say that, per sheet relation, it's more appropriate.

Kesha, Analyst — HTSC Securities

And one last question from my side. We have seen a bidda margin, you know, which used to be around 19-20%. This quarter is down to 17%. We have seen a sharp increase in other expense by 40%. What is the reason for this deal? And what is the margin outlook in upcoming quarters?

Jagrish Gupta, Other

First of all, it is 18, not 17.

Krishan Nagpal, CFO

I have explained that the EBITDA margin is 18.75%. The EBITDA margin is 17% and you are minus other income. Exactly, other income will not be minus because the other income is the export incentive. The export incentive is one of your business, the operational profit, not the other income. So EBITDA is 18 point something percent.

Kesha, Analyst — HTSC Securities

I don't know if he would. But the outlook is what like last quarter it was 21%. So, should we expect this to be back to you know 20% what we are doing in couple of quarters and this is the new normal dating percent.

Jagrish Gupta, Other

Now, if we can't give this answer in the world, we can't give anything in the world. When the worst situation is going on and everyone knows what is happening with the crude and the raw material price. So, if we say that the next quarter 20% will come in, then we really can't comment on this particular point. Whether it will be 18, 16, 15, 10, or 20. This is a situation on a day-to-day basis. If you look at our top line has increased, that means we are doing something good. Bitter margin will drop. Not only the LAMRAT industry, it would be any industry in the world. Only due to the crude prices.

Krishan Nagpal, CFO

And another thing you will notice that if you compare last half-year versus this half-year, we are better off in this half-year in comparison with the previous half. Right, sir.

Speaker 11

Right, right.

Kesha, Analyst — HTSC Securities

Got it. Got it.

Speaker 11

Okay. Thank you so much.

Operator

Thank you. Ladies and gentlemen, in order to ensure that the management is able to address questions from all the participants, please limit your questions to two per participant. Next question is from the line of Aditya from MSA Capital Partners. Please go ahead.

Aditya, Analyst — Masu Capital Partners

Yeah. In order of them? Thank you so much for the opportunity. It's a great set, even after this macroeconomic setup. So just wanted to get, understand from you that exports, so it's a tale of two stories, right? Export is doing really well, domestic is still subdued. So, if I want to double-click on exports and try to understand what is really driving this growth, and once a new plant comes in, How large can export again? How fast can export grow? So, that is two. One is understanding what is driving this growth, and second, a forward-looking outlook on exports.

Jagrish Gupta, Other

So, I think firstly, I'll talk about the domestic one, which you said. Domestic, I think we are actually revamping it. And which was not going okay since the last so many years. So I think it will take another one quarter. I think in the last call also we said that it might take two to three quarters to get it revamped. And you will see a drastic change in the domestic market as well. I would say this coming quarter as well as Q4. So that is the domestic one which you did us, but I would like to highlight that. We are talking about the export. In export market also, the global manufacturing is getting a little bit affected by multiple reasons. It can be energy cost, it can be labor cost, it can be different raw material prices everywhere in the world, due to which European or other manufacturers are facing a problem manufacturing and competing it with India. So I think that would be one of the points where we as a manufacturer are taking their market share and as of now, it looks okay, but no one knows what will happen as per the global issues happening in each and every region. But from our side, we don't think any issues going forward as well for the export market and domestic market to which we are here.

Aditya, Analyst — Masu Capital Partners

Understood. So my second question, thank you so much for answering on the domestic point as well, is if I look at your gross profit or what you call internally contribution margins, they've not budged even in these difficult times. So, yes, we have taken a hit on the beta margin, but a contribution margin has... Has remained steady. So two points on this that I want to understand. One is the new plant is coming and there would be some teething issues. There would be, it would be working in a, in a lower capacity utilization for the, for the, for the first half at least till you ramp up. How do you see the margin profile? In terms of for the contribution margin profile for the company level, both the new plant coming in and the raw material scenario that we are in. Do you think we can hold on to this? Yes, yes. And if once the capacity utilization of the new plant reaches your optimum utilization, can we better? Can we better for me?

Jagrish Gupta, Other

Can be better. First of all, we try to, or not we try, we will definitely make it that we will hold at least this much of the margins you're talking about. Secondly, the ramp up or the, or the. The teething issues, I think there won't be any teething issues. There might be issues of just a few weeks because this is not a new product what we are manufacturing. This is exactly same product and we know how to do so. So it might not take us half a year or one year to reap or to get the plant stabilized. Yes, if the market reacts in a proper way, the global geopolitical issues, whatever is happening, definitely the margin might be better as well.

Aditya, Analyst — Masu Capital Partners

Understood. If I can just squeeze in one more question.

Jagrish Gupta, Other

I think you can ask the moderator one.

Operator

So, should you have a follow-up question, please rejoin the queue.

Speaker 11

All right. Thank you.

Operator

Thank you. Next question is from the line of Surendar Singh from MyEquitySherpa. Please go ahead.

Surendar Singh, Analyst — MyEquitySherpa

Hi, sir. Good afternoon. I hope I am audible. Yes, sir. Yeah, thank you. So, sir, you mentioned that this worldly disorder is leading to other expenses, elevation. Yeah, a lot of folks are facing it. I was just wondering whether it is leading to only headwinds, or we are getting some better opportunities to make inroads into new clients for increasing our exports because of this?

Jagrish Gupta, Other

Yes, it would be that way also.

Surendar Singh, Analyst — MyEquitySherpa

Okay. Second thing, sir, congratulations on this new plant. It was something which was going on for a long time. With this in place now, I'm just looking for your views that what are the things which are exciting you today because of which our numbers will improve in coming times. So, your thought process around it.

Jagrish Gupta, Other

No, sorry, I couldn't understand your question. Exciting as in?

Surendar Singh, Analyst — MyEquitySherpa

At management level, many things happened today. The results of those will come two years later and all, right? So, once this plant is in place, we have this bandwidth available now. So, what are the areas which are kind of exciting for us today, which will show up in numbers, but in the future, not many?

Jagrish Gupta, Other

In future, there are multiple things we have already considered, and we were just waiting for this plant to start. It will be in the next two to three months once the plant is completely stabilized with all the presses running properly and we have that fit for the boat domestic because that is also going to revamp. We are looking for other elements as well side by side.

Surendar Singh, Analyst — MyEquitySherpa

Okay, sir. Thank you. Thanks a lot.

Operator

Thank you. Next question is from the line of Chirag Shah from White Pine Investment Management. Please go ahead.

Chirag Shah, Analyst — White Pine Investment Management

Yeah, thank you for the opportunity. Sir, just a clarification before I have a question. Sir, if you can just quantify if you will be sequentially there is a almost 300 BIP margin decline and it appears everything is coming from other expenditure, maybe some staff cost because of new plant. So, if this freight related issues, what was the impact, if you can just quantify, because it will help us to understand that once the issue goes away, how should we look at it? And any other one-off, any other major one-off which lead to this 300-bit decline in margin?

Jagrish Gupta, Other

No, no, we also mentioned in the presentation very clearly that almost 3-3.5% is due to energy cost and freight cost. It was very interesting. I missed that.

Jagrish Gupta, Other

Sorry.

Jagrish Gupta, Other

So, it was ocean freight and second thing is the energy cost. Energy cost means use of pet coke or coal or gas what we are using. So, there is no other.

Chirag Shah, Analyst — White Pine Investment Management

Okay, that is the biggest driver.

Jagrish Gupta, Other

So, there is no other.

Chirag Shah, Analyst — White Pine Investment Management

My question is actually now that Archeo Global has come in, what kind of discussions till now do you have with respect to integration, wheat, product, wheat? Anything, anything that you would like to highlight, what are the, because there are opportunities in terms of products which are available to us, even in terms of geographies are available to us.

Jagrish Gupta, Other

Are you talking about, are you talking here about Aika or?

Lovish, Analyst — Berenberg Capital Management

Aika.

Jagrish Gupta, Other

As of now, sir, I think it's been just another, just been four months. So they came on board on 15th or 16th of June. So it's been just four months. So there are still multiple talks or multiple discussions happening, but nothing as of now where I shall highlight or inform everyone that something is happening and that might blast or do something. But all the efforts are going on by Stylom itself directly in the market.

Chirag Shah, Analyst — White Pine Investment Management

And sir, my question is on exports. Middle East used to be, including Israel, used to be a big part of our revenue, and because of Israel war, we had lost some part of Israel revenues. So, today, given the war situation, are we affected even in the rest of the Middle East area in terms of our revenue? Not yet. So, the scope numbers that we see, not yet.

Jagrish Gupta, Other

Not yet, but again, we might lose if there is a war again, which everyone was predicting. So, even if the Southeast space is blocked, something happens there in the Middle East. So, it would be affected to everyone, not only specifically in the asylum, but that would be for every product being supplied from India. As of now, it doesn't seem to be, but we cannot predict the future of the next two, three months.

Chirag Shah, Analyst — White Pine Investment Management

So, as of now, our revenues are not really affected.

Operator

Sorry to interrupt, sir. Should you have a follow-up question, please rejoin the queue. Next question is from the line of Rahul Singh, an individual investor. Please go ahead.

Rahul Singh, Analyst — Individual Investor

Yeah, good afternoon, and thanks for the opportunity. And first of all, the hardest congratulations on the commissioning of the new plants. And what I've heard from sources is that it is one of the best plants using the latest technology in the world. And I would like the management to comment on that also. So, my question is particularly related to these. First part is related to the, your CWIP of 12.41 crore rupees. So I'd like to know if that is pertaining to the new plant or you are upgrading the earlier plant also as per the latest standards.

Krishan Nagpal, CFO

This is primarily related to the new plant.

Rahul Singh, Analyst — Individual Investor

So, there is some works which are still pending at the plant, it is not commissioned at the plant?

Krishan Nagpal, CFO

Yeah, so far as operational plant is concerned, that is complete. So, as informed by our managing director that two presses are still in the pipeline, that is related to those presses only. And there are some other, you know, construction work, some outside wall and other improvement in roads and all that, that relates to that.

Rahul Singh, Analyst — Individual Investor

Okay, and any plans of upgrading your old plant also to the, upgrading your old plant to the latest standard?

Jagrish Gupta, Other

Yes, we are doing so. Side by side, a little contribution in this also for the both the old plants. Just, you can say, filling up the bottlenecks wherever we can just to have more capacity in the old plant or maybe able to utilize more there.

Rahul Singh, Analyst — Individual Investor

Okay. And I'd like you to comment on your solid acrylic services business. Like, it's been very small and contributing very little to the overall business. So, like, with Aika Kogyo coming up, is there any synergy coming up where, you know, Aika would be opening new ways for this business to prosper?

Jagrish Gupta, Other

Nothing. As of now, there is nothing. Again, domestic acrylic services, business is just similar to, as we were talking earlier, similar to domestic markets. So, we are actually revamping it because we didn't do any domestic or export sales in the last 2-3 years for this particular product. So, as soon as and when we are revamping the domestic laminate business, you will see a change in the domestic acrylic as well in the coming 1-2 quarters. And same what we are doing for export.

Rahul Singh, Analyst — Individual Investor

Understood, understood. And like my earlier thing, like the new plant is as per the, you know, latest technology and the best in the world, I hope so, because that's what I heard from, yeah.

Jagrish Gupta, Other

Yes, earlier I think this is by far the largest and the most advanced plant.

Rahul Singh, Analyst — Individual Investor

Okay, so my heart is congratulations to the team, and I wish you all the success in the business. Thank you.

Operator

Thank you. Next question is from the line of Rudraksh Raheja from iThought Financial Consulting. Please go ahead.

Speaker 11

Yeah, thank you for the opportunity, sir.

Rudraksh Raheja, Analyst — iThought Financial Consulting

Sir, I wanted to ask on the exports volume growth that we have witnessed. It's actually more than 30%, 35% in this sub-class. So, what would be the rate that we would be actually comfortable? You mentioned that we are gaining market share because of all the uncertainty going on in global markets. But in, let's say, in this uncertainty subsides a little bit. What is the kind of volume growth that we should witness in its words?

Jagrish Gupta, Other

Sir, again, very difficult to actually answer it, but yes, there has been a volume growth for us. We are targeting more markets wherever we could, looking at different product segments in our HDL as well. Ongoing COVID, we will try to keep or manage the same air or maybe even decrease more volumes in different parts and different products.

Rudraksh Raheja, Analyst — iThought Financial Consulting

Got it, sir. And, sir, any price increases that we have taken to manage this press on the cost side? And how do you look at price increases going forward as well?

Jagrish Gupta, Other

Sir, domestic, yes, we have taken a few price increases, but our domestic market share is very less, so I think that won't be very much. And export, it is very difficult. We are trying our best wherever we can. That is why our focus would be more on volumes and trying to look at the bottom line as well. But the competition is not only with organized players now, the competition is with local Indian unorganized players, as well as, that is the main competition we are facing now. So, difficult to have a complete life push in the markets as well.

Rudraksh Raheja, Analyst — iThought Financial Consulting

Got it, sir. And sir, on the fixed cost side that might have impacted our P&L because of the new plan coming in, is everything now visible in Q2 number with respect to whether it be depreciation, other expenses or employee costs? Are we factored in all the expenses that should come in our P&L because of the new plan?

Krishan Nagpal, CFO

These have been, if you can see the P&L, the fixed expenses, of course, these are primarily related to new plant and all that, but we don't foresee much increase, except that as I explained, primarily relating to fuel cost and ocean freight going up due to Middle East factors.

Rudraksh Raheja, Analyst — iThought Financial Consulting

And sir, are we on track for whatever numbers we gave earlier for new plant utilization in FY27?

Speaker 11

Yes.

Rudraksh Raheja, Analyst — iThought Financial Consulting

And, sir, could you maybe help us understand a bit more on the domestic market? You said that we are doing some...

Operator

Sir, sorry to interrupt. Should we have a follow-up question? Please rejoin the queue. Next question is from the line of Pritesh Cheda from Lucky. Please go ahead.

Pritesh Cheda, Analyst — Lucky

Sir, just one clarification. I am unable to comprehend the conversion that is going on in the new plant. So, when I look at the depreciation number, there is no depreciation which has come in still. So, what is the status of new plant when it is becoming fully operational and when should we start seeing the costs? Associated with new plant to be built in the PNF.

Krishan Nagpal, CFO

See this plant became operational on 22nd September 2026. That's why you could see very little depreciation increase in this relating to new plant. So, as informed earlier also by our managing director, that two presses, production in two presses have already started, and another two presses will start in a few days' time.

Pritesh Cheda, Analyst — Lucky

Okay, and on the fixed cost side, because it applies at the same location, Do we have to build any extraordinary large fixed costs, because this plant itself is a very big plant with many presses, so will there be a large fixed cost or, you know, it's a number which may not be, you know, so significant.

Krishan Nagpal, CFO

No, there will not be much of fixed cost increase due to new plant, only increase will be primarily on account of direct costs.

Pritesh Cheda, Analyst — Lucky

Okay, and my last question is. You know, on the, you know, margin correction that we are seeing because of, you know, whatever other expense increases, and then with GP also. So, what are the corrective actions in terms of pricing, if any, you know, which, or it's a passing phase where, you know, two things have to normalize for the margins to go up. So, which one is more plausible, a price hike, or the second limit?

Krishan Nagpal, CFO

See, it will be a combination of many factors. One, if you will observe previous half-year versus current half-year, we are in, we are much better off in EBITDA margin or operational margin, even in PET margin also. So, it is combination of, it will be, and because of new plant coming up and all that, there will be operational efficiencies, economies of scale also.

Jagrish Gupta, Other

Rather, we should listen. We are, we feel proud that if we see the world, total HPL plants in the world, not in India, our Vita margin is much more, even than Aika, our new partner, Wilson are our partner. Their Vita is around 12-13% maximum. Under these so big circumstances of oil, russian rate, still we have 18%. Many around our Aika is congratulating us every day. And if it is a worse situation, whenever it will improve, I think not 3, 4 percent, 5 percent is very easily can be plus.

Pritesh Cheda, Analyst — Lucky

Okay. And what is your half yearly volume growth and volume number, sir, in sheets, if you could?

Krishan Nagpal, CFO

Yeah, half yearly, last year it was 5.83 million sheets, and this year it is 6.96 million sheets. But if you go by KG numbers.

Jagrish Gupta, Other

And it is in, even, there is no much contribution of this, in new plant contribution in this. Correct.

Krishan Nagpal, CFO

Yeah, in this. It has grown by more than 1 million sheets, actually.

Pritesh Cheda, Analyst — Lucky

So 6.96 million versus 5.3 million sheets.

Krishan Nagpal, CFO

5.83.

Pritesh Cheda, Analyst — Lucky

Oh, 5.83. Thank you very much, and all the best, and happy New Year's. Happy New Year's Day.

Operator

Thank you. Next question is from the line of Aditya Paarsam, MSA Capital Partners. Please go ahead.

Aditya, Analyst — Masu Capital Partners

Yeah, thank you so much for the follow-up, for taking the follow-up. Sir, on acrylic solid services, so it's been now, we have this, we started this business now a little more than five years. And how do we plan to scale it up? We have, if I'm not wrong, we have more than 300 crores of revenue potential of capacity in this business. So are we thinking of, if domestic is not working, are we thinking of starting to export? Or how are we thinking about this? If you can just help me understand on this.

Jagrish Gupta, Other

See, we know that this business was started in 2019, 2020, almost five years. That is why I answered this question earlier as well that we are taking this, to be honest, as a fresh business right now after what we are doing in the domestic market. So, to be honest, you have to wait maybe another one or two quarters as and when the Indian domestic market is revamping, solid surface is a complete important part and we have targeted ourselves the next two quarters and you will see a drastic change only in solid surface. As far as export is concerned, again, as we were not focusing on this due to our family compulsions, so we are really going to have an answer of what to say for the last four years, but going forward, yes, it is an important part to be done for both export as well as domestic.

Aditya, Analyst — Masu Capital Partners

Understood. This is very heartening.

Jagrish Gupta, Other

Yeah, so that is right. I will be honest. Rather than saying something else, we'll be honest here that going forward, you'll see a change. Even this quarter, October, Q3, you'll see a change in domestic. It will be gradually. It won't be a magic, but you'll see a change in both export and domestic in solid.

Aditya, Analyst — Masu Capital Partners

Perfect. That sounds really good. For Middle East, Middle East as a whole has been a very large market for us and a very big growth driver as well for export engine. So if I was to say with all this war, if I was just to say a silver lining, so there's a lot of reconstruction effort going on after the entire war comes to an end. Do we see that... Do we see at least some bit of content? We think Middle East can be a much larger geography because of the entire infrastructure.

Jagrish Gupta, Other

You are correct, right? Middle East can or is still a very big geography for us. The last Q2, I think there has not been a downfall in the Middle East market, Gulf market, and even right now there is nothing at all like this. It is just that we are just taking precaution that if the war happens again, if the airspace, if everything is shut down just like it happened in Q1 when all the seaports were closed in Middle East, Then it might be a problem. Else, as of now, we are not seeing any problem there at all. It can be an opportunity also. It is not good to say that, but it is an opportunity for... So, I was impressed with the building material companies because definitely there will be construction happening again there. And your other question was due to this price... Raw material price is going up. Sometime it is an opportunity for all the organized players for any industry who are into Indian and export market because in such case an organized company has the capacity or the capability to actually play the market in a proper way. So in terms of volume, so that is where we can now we are focusing more on volumes so that our top line increases, definitely the margin would further increase. And whenever there is a slight reduction in any of the raw material, there will be a jump on the entire margin.

Aditya, Analyst — Masu Capital Partners

Perfect, perfect. Thank you so much for taking all my questions so patiently and wishing you and the team a very happy rally. Thank you. This is all the very best.

Operator

Thank you. Next question is from the line of Yogansh from Mittal Analytics. Please go ahead.

Yogansh, Analyst — Mittal Analytics

Hi, thanks for the opportunity. Congratulations to you, your entire team for commercializing this much-awaited new plant of ours. Really excited to see the performance of this one, and all the best, too. So, just one question. In last couple of calls, we had mentioned that going forward, our focus would improve on domestic business as well, and we were looking to take some price increase. So, and like you mentioned to a previous participant that you have taken some price increase, but then when we see the sheet ka volume data, we see some slight difference. So, is this because of the price increase that we have been facing issues to push sales, or is it more of a mixed chain or, you know, more of a demand situation on the ground, if you could just help clarify that piece.

Jagrish Gupta, Other

We have taken the price increase as of any other organized player. If I talk about the volume dip, we have actually stopped selling the commodity product in the market, which generally you call it as liners. Earlier, we were selling almost 300,000 sheets every month of liners. So just to change the market perception that we are not a liner king anymore, we are just focusing on the value addition product. That is why you will see the volume decrease, but the value would be the same. So we are not focusing. If you want, we can right now also just open the market, sell 300,000 sheets every month immediately without. Any problem, but we are not doing so. So that is why we are revamping everything. We have taken some steps where the reputation, the Indian domestic reputation changes for asylum. That is why it might take one or two quarters more and you will see a drastic change in value as well as volume in the Indian market.

Yogansh, Analyst — Mittal Analytics

That's really good to know, sir, and I'm sure with a couple of portals, we'll be able to do this. It may be much better. Also, similarly, on the export side, if you could just help us understand, stepping aside from the whole logistics issue and all of those things, in terms of now with the new line coming up, do we expect better realizations? I know our realizations are already top-notch, but now with the kind of presses that we have added, do we see value growth along with volume growth also as a possibility in coming two, three quarters as the new plant fills up? If yes, if you would just quantify how you're looking at it.

Jagrish Gupta, Other

See, you're correct. See, firstly, I'll say with the new plant coming, it's a complete new plant, latest machine, latest technology, that means the maintenance cost will be almost zero in the new plant for the next one or two years.

Operator

Operator request has been initiated. If you'd like to cancel this request, please press star zero again.

Jagrish Gupta, Other

So in this case, you can see the automatically the margins will be better there. Secondly, if there is a slight decrease in raw material anywhere, you will, I think we expect better margins there in the second plan.

Yogansh, Analyst — Mittal Analytics

Got it. So, any numbers you'd like to add on to that or will you wait?

Jagrish Gupta, Other

The numbers you cannot comment because, again, depending on the situation, the raw materials situation, if there is a slight decrease anywhere, you'll immediately see the numbers in any of the months. Right now, what is happening, the raw materials at the peak, I think, you can say it is more of a, sometimes it is more of a cartel also by all the traders, by all the raw materials suppliers. But it is at the peak right now.

Yogansh, Analyst — Mittal Analytics

You got it, sir. That's it from my side. Thank you and all the best to you and the entire team.

Operator

Thank you. Next question is from the line of Resham Mehta from Green Edge Welt. Please go ahead.

Resham Mehta, Analyst — Green Edge Welt

Hello. Yeah, so, you know, first is just a suggestion. I think since you all are saying that, you know, realizations per kg is the right metric to look at, it would be great if, you know, you all can start disclosing the volumes, you know, in terms of kg or tonnage. Right? Because the data that we get, I think, is, you know, just the sheets. You know, that was one suggestion. My question is basically, you know, on the export side, because of whatever disruptions that we are seeing, have we lost out on any revenues in the second quarter? Meaning that, you know, the 16% reported revenue growth that we are seeing, could this have been much higher?

Jagrish Gupta, Other

Thank you for the suggestion. Definitely, we will start doing so from Q3, because in our case, maybe a sheet value is not appropriate or the correct way, because it's always a mix of thin laminates, compact laminates, so there is no point discussing. You're right, and we will definitely make it a point to make it in our presentation, and KG is as well. For the second thing, yes, we have also seen a drop. A little bit drop in Q2, because in such, we were not able to get containers from Middle East as well as Europe, because it was just not only due to the ocean trade, but even there were multiple vessels being skipped for India. So there was not a big amount, maybe 2 to 3 percent. We would have definitely increased our sales more in this photo.

Resham Mehta, Analyst — Green Edge Welt

And would you say that the container availability issue has, you know, kind of been mitigated to some extent? Because I think that's what we're hearing from, you know, a few companies across different industries, that the situation has got better. So, just speaking from your side.

Jagrish Gupta, Other

It has gone better, but we won't say 100%.

Kesha, Analyst — HTSC Securities

From worse to better. Yeah, from worse to better.

Resham Mehta, Analyst — Green Edge Welt

Got it, got it. And lastly, you know, on this 16% revenue growth that we are seeing, can you quantify what would be the breakup in terms of price realizations or product mix and volume growth in terms of tonnage?

Jagrish Gupta, Other

We can send you that data. If you can just email us, we'll send you the data separately.

Resham Mehta, Analyst — Green Edge Welt

Sure, sounds good. Thank you and all the best.

Operator

Thank you. Ladies and gentlemen, in order to ensure that the management is able to address questions from all the participants, please limit your questions to one per participant. Next question is from the line of Kesha from HPRC Securities. Please go ahead.

Speaker 18

Hi, Kesha. My question is already answered. Thank you.

Operator

Thank you. Next question is from the line of Lovish from Berman Capital Management. Please go ahead.

Lovish, Analyst — Berenberg Capital Management

Hi, thank you for the opportunity. Am I audible?

Speaker 11

Yes.

Lovish, Analyst — Berenberg Capital Management

Sir, I think you mentioned in your PPT as well as on the call that flight cost and gas prices affected our margins. So I just wanted to understand how much of the increase in other expense, which was 58 crores last quarter and 77 crores this quarter, how much of the increase in absolute terms would be due to these two factors, if you can help us quantify that? And the rest of the other expense increase was because of the workage factor?

Krishan Nagpal, CFO

This is hardly any increase in other expenditure, this is primarily increase in ocean freight and sea expenses.

Speaker 11

Only this renews the whole percent, every time.

Lovish, Analyst — Berenberg Capital Management

Yes. So if I see the numbers reported in 1Q of this year, we had around 58 crores of other expenses. In 2Q this quarter, it is 77 crores. So that the delta is around 19 crores. And from what the numbers have told me, 11 crores is because of ocean freight and from PNG price increase. I am understand. I am trying. What's the other part which has increased?

Krishan Nagpal, CFO

Some of the, if you see, the volumes have also gone up. Some of the expenses, of course, they move up according to volume, basically. Primarily, this is 11th road is disproportional expenses that we have explained. Rest are proportional to the increase in, basically, production. And sales.

Lovish, Analyst — Berenberg Capital Management

Understood, understood. So, sir, for the increased 11 crore that we are seeing, by when can we expect to pass it? Sorry to interrupt, sir.

Operator

Should you have a follow-up question? Please rejoin the queue.

Lovish, Analyst — Berenberg Capital Management

I just have one question. That's my second question that I'm asking. If you can allow, please.

Operator

Sorry, sir. Please rejoin the queue. Thank you. Next question is from the line of Wipin Vijay from DSP Mutual Fund. Please go ahead.

Wipin Vijay, Analyst — DSP Mutual Fund

Yeah, hi. My question is, pardon me, to the finance costs last year. In H1 F526, it has shown 9 pros, but in 4 years it has 2 pros. So what led to the decrease of finance costs of 6 pros in the H1 F526?

Krishan Nagpal, CFO

See, earlier we were having surplus in our hand basically, and now you have seen that new plant has come up on that, the whatsoever surplus was lying, that has been used for our basically new plant, and now we have started utilizing the working capital limits to some extent.

Wipin Vijay, Analyst — DSP Mutual Fund

Ah, that should increase the cost, that should not decrease the cost. Finance cost will decrease from 9 crore in H1 to 10 crore in full year basis.

Krishan Nagpal, CFO

Excellent question. Actually, there was a loss on the trade order. Fair for one quarters.

Speaker 11

Sorry, I did not... Can you please repeat that?

Krishan Nagpal, CFO

No, I forgot to book it, but then I lost it. That's why... That's when... Last year... Last year...

Speaker 11

When you're back, sir, the mouse you're talking about.

Krishan Nagpal, CFO

Last year, we are talking about finance, because when we book, we have a loss of 7-8 crores, which is not your last year.

Wipin Vijay, Analyst — DSP Mutual Fund

My comparison is last year, H1, F526, and still year H126.

Krishan Nagpal, CFO

We are doing the same thing, last year H1 and H2. Thank you. Last year, H-1 ka baat kar hai, or isthal current in the H-1 ka baat kar hai. So, last year, you talk, sir.

Wipin Vijay, Analyst — DSP Mutual Fund

I will just clarify, sir, so that it is better for you to understand. H-1 F-526 had a finance cost of 9 crores.

Kesha, Analyst — HTSC Securities

Full year F-526 had a cost of 3 crores.

Wipin Vijay, Analyst — DSP Mutual Fund

So, if the loss is there in H-1 also, it should reflect in the full year also. It's the question.

Krishan Nagpal, CFO

It's the question. It's the question. It's the question. When the H1 came to the relationship unit, there was loss of Sam and Ed could. And the friends were going to contact him. But when he comes to the mass quarter, he recovered. He minused. So it's the question. The finance cost is less than that.

Wipin Vijay, Analyst — DSP Mutual Fund

Okay. Actually, this is a loss of entry.

Speaker 11

Not actually, this is a loss of entry.

Speaker 18

Okay, if I get this right, sir. H1, we had a loss on power contracts. Then in H2, we would have had some profit which recovered that loss. Is that understanding, right?

Krishan Nagpal, CFO

Yes.

Speaker 18

And this kind of volatility in the power contract profit loss is kind of normal course of business or how we should look at it?

Krishan Nagpal, CFO

It depends on the dollar and euro price. If the dollar and euro prices are increasing, then they will be definitely fine-forward contact loss. If the dollar and euro price is cut, then there will be a profit. Because we are booking the forward contact, then we have a specific price.

Speaker 18

That I understand. I am just saying that the volume of this loss of 6-7 crores will be probably more profound when the grunting units are higher.

Krishan Nagpal, CFO

Usually, usually such kind of volatility is not there. This is primarily, you know, the war started last year in the February. And by that time, dollar, euro, everything went up. That's how we were able to recover those. But if you know currently, the situation is, so far as dollar and euro status, it is not that volatile. That's why this is not appearing in first half of this year.

Speaker 18

Second question is regarding the cash generated from operations this year. I think it is around 26 crores. Out of this 26 crores, 15 crores is coming from one line agent itself, the change in other current financial liabilities. I think from negative 5 crores, it has gone to almost 12 crores. So can you just explain what is this, what improves the other current financial liabilities, and why? Could I repeat that question?

Krishan Nagpal, CFO

Please repeat that question.

Speaker 18

Sure. So, this percentage of cash from operating activities is 26 crores, which may say 15 crores is coming from just one line item, which is other current financial liability, it was negative 5 crores in March, and now it is positive 12 crores. So, what is this other current financial liability, and why is so much delta here? We will come back.

Krishan Nagpal, CFO

So, we will come back on this. Please send us the mail, we will reply with it.

Speaker 18

All right. Thank you. Thank you so much for taking my question.

Krishan Nagpal, CFO

That's cool.

Speaker 11

Thank you, Mr. President.

Operator

Thank you. The last question is from the line of Deepak Ajmera from Elpro International Limited. Please go ahead.

Deepak Ajmera, Analyst — Elpro International Limited

Sorry, I joined late. So, in case the question is answered, please pardon me. My question is largely on the JV partner. How we are planning to utilize their strength? Second question is on the new plant, what percentage utilization by this year and by FY28? And on the domestic side, what is our plan?

Jagrish Gupta, Other

You are right, I think all the questions have exactly been answered twice or thrice in this 45 minute call. But anyhow, for ICA, there is nothing as of now, we are still discussing and talking to them, if any opportunities are there with them. The second question, the plant. I think we are expecting maybe 25-30% utilization of the new plant in this year, definitely 60-70% plus in Fx28. Third question, answer is domestic. We are revamping it as we have already told, and you will see the numbers in Q3 and Q4 going forward.

Deepak Ajmera, Analyst — Elpro International Limited

Thank you.

Speaker 11

All the best.

Operator

Thank you. As that was the last question for today, I now hand the conference over to the management for closing comments.

Jagrish Gupta, Other

Thank you so much. Thank you very much, everyone, and hope to see you again in the next conference.

Operator

Thank you. On behalf of Systematics Shares and Stocks Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.