Aaron Industries Limited (AARON) Q1 2027 Earnings Call Transcript

Good afternoon, everyone, and welcome to the Q1FI27 Earnings Call of Aerate Industries Ltd. We sincerely thank you for joining us today. During this call, the management will discuss the company's operational and financial performance for the first quarter of FI27, followed by an update on key business developments, strategic priorities, and the outlook ahead. Before we begin, I would like to remind everyone that certain statements made during this call may be forward-looking in nature. These statements are based on the management's current expectations and assumptions and are subject to various risks and uncertainties. Actual results may differ materially from those expressed or implied. Participants are advised not to place undue reliance on these forward-looking statements. Please also note that this conference call is being recorded for compliance purposes. Representing Erin, today we have with us Mr. Monish Toshi, Director and Chief Financial Officer, and Mr. Fanesh Nayib, President. I now invite the management team to deliver their opening remarks. Followed by their address, we will open the floor for the Q&A session. Thank you and over to you.

Good afternoon, everyone. On behalf of the management of Aron Industries Limited, I, Monish Doshi, Director and CFO of the company, would like to welcome you all, the participants, to the Q1 FY2627 earnings conference call. Thank you for taking the time to join us today. I will briefly take you through the key financial and operations highlight for the quarter ended June 30, 2026, following which we will be happy to address your questions. As per the tradition set by Aron, we are pleased to inform you that we have once again delivered a healthy growth in revenue and profitability. Revenue from operations stood at 24.44 crore, compared with 19.24 crore in quarter 1 financial year 25-26, registering a 27.01% year-on-year growth. EBITDA increased by 34.83 year-on-year to 4.99 crore, compared with 3.70 crore in the corresponding quarter last year. Our EBITDA margin improved to 20.19% compared with 18.99% in Q1 financial year 2526 and 18.58% in Q4 financial year 2526. This improvement reflects better operating efficiency and improved contribution from our business operations. Profit before tax stood at 3.46 crore, registering a strong 66.60% year-on-year growth, while lower interest costs also supported profitability. Most importantly, profit after tax increased to 2.56 crore compared to 1.06 crore in quarter 1-25-26, representing a significant 141.94 percentage year-on-year growth. Pet margin consequently improved to 10.46% compared with 5.5% in the corresponding quarter. During the quarter, our focus remains on improving capacity utilization and leveraging the investment made in our manufacturing infrastructure. We continue to see encouraging opportunities across our elevator and stainless steel business supported by increasing demand and our expanding product capabilities. Going forward, our priorities remain clear. Increase capacity utilization, strengthen our customer base, improve operating efficiency, and deliver sustainable growth with healthy margins. Overall, we are encouraged by the performance of quarter one and remain cautiously optimistic about the growth opportunities ahead. With this, I would like to conclude my opening remark. Thank you for joining us today. We will now be happy to take your questions.

Thank you, sir, for the opening remarks. We will now open the floor for the Q&A session. I request the participants who wish to ask a question to please use the raise hat feature. The first question will take from Mr. Manish.

Hello, sir. Am I audible? Yeah, thank you so much for taking up my question. So first of all, congratulations on the good set of numbers. I have a couple of questions. One is, you've talked about the international OEM engagements, right, on your previous calls. So what is the status? Have you made any breakthrough with the international OEMs for any contract manufacturing? So that's my first question.

Okay, yeah. Good afternoon, Parish Nag here. I would like to give you clarity on the international front. In international, we had focused on Africa, especially Kenya and Tanzania, and we had even participated in the exhibition events over there. There is a positive momentum over there. But due to their prevailing political and economical conditions, there is not much of a growth in that business over there. So we have had a good breakthrough. But yes, we are still yet waiting for the development of business over there. In Nepal, we are having a consistent growth and that has continued in this year also. So we are hopeful that this international front will also open up shortly once their conditions also stabilize.

But sir, when we talk about these international OEMs, right, I am essentially referring to these companies like Johnson, Schindler, and others.

Oh, I'm sorry. I'm sorry. I took it wrongly. I'm sorry. See, on the Johnson, Kone, we had a meeting and even the registration process has started. In Bittur also, the registration process has started. We have received a few good orders from Fugitech on the sheet front and the local national companies, which are not international, But they have a good national footprint in that Techno and Omega are buying the majority of their sheet requirement from us on the EMBOs and on the PVD part. So, on the international OEMs, the orders have not yet started, only Fugitek has started, but the process is on, they have taken the samples, and the vendor registration process has also begun. So, we are hopeful that, I think, in next quarter, there should be some good business from there.

I hope this has answered the question.

Yeah. Hello. Yes, please. Am I out of it? Yes.

Sir, with respect to the sampling part that you highlighted, right?

Is this with the name that you mentioned? I think I heard it as Fujitec. Yeah, Fujitec, yes, yes.

They have taken sheets from us. And now they are placing regular orders and they are also planning to get those manufactured from us, but it will take some time because there are a lot of technicalities involved. So that process is on.

Got it. And how about other players like Johnson, Schindler and others?

They have taken the samples, but we have not yet received the orders. The process is on.

Got it. Okay. So my second question was on the steel polishing division. So when I look at your segmental results, right, I noticed that this division has been making losses since the last three years. So any reason as to why we are not able to kind of make it a profitable one? What are the challenges that we are facing with respect to the steel polishing division?

Yeah. Hi, this is Monish Doshi. So to clarify that on the losses part, it is not actually making losses. Currently, Most of the production is being consumed in our elevator division, which is being processed in stainless steel division. So it is an internal transfer which we are doing. That's why the purchases are done on the steel part division and actual material is being consumed on the elevator part. So, to get a better idea, I would always suggest to look as a whole business and not as a sector wise. Second thing, we have been started selling sheet products to different market only after fulfilling our in-house demand. So, whatever we are selling outside is what we don't require or it is more than our requirement for elevated division that is being sold outside. So only those items are like only that revenue is being generated with the additional production, which we are doing in steel business. Other than that, everything is being consumed in house only. So, it is not a loss-making division. It is a profitable division if we see as a whole.

Got it, sir. Because, I mean, it was appearing as a loss item under segmental results. So, hence my question. Anyways, I think your answer helps. If I can squeeze in one final question, sir.

Yeah, sure, sure.

Yeah, I wanted to understand as to what would be the impact of steel prices on the way we do business with our clients. Is this a pass-through from our end? And also, do we reduce prices when steel prices reduce? So, if you can explain that bit as well.

Yeah, so in this thing, we deal in two different ways. For the steel division, it is completely volatile to the steel pricing. So all our orders are also... Volatile to steal pricing. Like if the market price changes, we also pass it on to our customers. Even if it has gone up or down, we are obliged to pass it on to our customers. In elevator business, we have a fixed margin and we have a fixed price range where we consider where we don't have to change our pricing immediately. So in that case, sometimes we have to bear the losses or we have to even we can enjoy the profits if the price of raw material has gone down. But that too, at a limited extent we go and if we see a huge difference in the pricing policy, then we pass it on to our customers in the elevator division also.

You got it. And what would be the time lag, sir, in case of, what do you say, steel price increase or a decrease, right, that we want to pass on? What would be the typical time lag?

Yeah, so normally, it is not a defined timeline which we prefer because we also have to keep in check about our competitors also. But normally, if the price increases by like more than 10 to 15%, then definitely we execute the changes within a month.

Got it. All right. Thank you so much. I'll join back the queue. All right. Thank you.

Thank you, sir. We will move on to the next question from Mr. Rosh. Also, please unmute yourself and ask the question. Mr. Roshin Rishnoy. Oh, let's move on to the next question in the meantime from Mr. Shanky Bansur.

Hi, Mani. Hi, Parish. Hope you are doing well.

Hello, Mr. Sanki. How are you? Good afternoon. We are doing well. Thank you.

Yeah, so I think the company, Aram Industries, has not able to deliver to last year 25% bare minimum growth, which we are expecting. But this year, the Q1, the start is pretty well on the note of 27% growth. Correct? So, what is the internal revenue and volume guidance for the 27 and 28?

Yeah, so this year we are targeting 25 to 30% growth in revenue and the bifurcation of business would be almost similar in a way to last year for the steel business and elevator business.

Okay. I think the EBITDA has also bounced that sharply in the Q1, so I believe that management is able to pass the elevated cost to the end consumer. So what is the sustainable EBITDA going forward?

Yeah, so we have been making sure to maintain our EBITDA percentage like from around between 18 to 20. And it has been increasing every year. So we are making sure of doing that. And it is like we are looking forward with a sustainable EBITDA of this percentage only.

Okay, so 18 to 20 percent.

Yeah, so that is the range which we have been in last couple of years. But if you see over a period of time, we have always managed to improve the margins. So that will be our focus for this year also.

Okay, okay. I've seen your investor presentation also, and there is a new product, Evoke 360 fitness shop. You guys have already executed 25 plus project. So just want to know that what is the bigger picture there in next two, three months, two, three years, how much revenue contribution from this product we can expect and are we making the end-to-end product of pitless elevator Later or we are doing just a cabin and autodoo.

No, in Evoque 360, we are doing complete elevator product. And like this year only we have launched it. And luckily, we have been getting good response overall from 10 India. And we are into discussions with multiple companies for collaborating for their territory. Like already, I think we have finalized two or three companies where we have finalized the territory as a exclusive partners for those territory. And we are in communication with multiple companies who are showing their interest for the product. For the next quarter, I wouldn't be able to guarantee a huge jump because the project takes time. It is related to, like, it depends on the cycle of the bungalows and villas and normally it takes time. Thank you very much. Definitely it will keep on going upwards because day by day we are getting more and more inquiries and people are showing positive response in those cases. So definitely by the end of the year we are planning that it would be around like close to 150 units per of home lifts.

Okay. Because I just want to know that what is the contribution of EVOC in Q1 sales? What is the real economics behind that? What is the margin on this product? And if this product will scale up, whether the margin will increase further or it's a low margin product. So can you talk about that?

So, basically, it's not a low margin product and I wouldn't like it is close to around 20 to 25% of margin only for Evop. But the doors, cabins and all are also part of this Evop 360. So I think the margins would be in a bigger picture, the margins would stay close to 20% only. But definitely the top line would increase because of that. Now, currently in the last quarter, if you see, I think it would contribute around 5 to 7% of the total revenue.

Okay, because I think you guys have just in the recent announcement said that you got an exclusive distributorship from China distributor for this Evoke component.

Yes, yes. Yeah, so we launched this product in February. People came to know about it in February and March and then they started their project according to this product. So till now we haven't been able to execute many products or dispatch many products out of our factories. But yeah, we have confirmed orders and already people are showing so much interest. So we are very positive about this product.

Okay, I will join back in the queue.

Thank you.

Thank you, sir. We have the next question from Mr. Priyansh.

Hi, sir. I hope I'm audible.

Yes, yes, Mr. Priyant.

Yeah, sir, I want to understand about the current capacity utilization and the capacity that we have in Unit 3 after the said automation that we implemented.

Okay, so the current capacity utilization is around 50% and close to 50%, I think between 45 to 50%. And with time, it will keep on improving because right now we are balancing the production to the demand which we are having. So based on the demand, we'll keep on increasing our production.

Okay. So, sir, this capacity can argument in both ways, right? Like the door and the cabin, and at the same time for steel sheet also. Is that a correct understanding?

Like all the machineries are different for each product. So the capacity of sheet production is very huge, whereas we are producing less because of like we have to maintain the whole cycle of production as well as the inventory and everything. But overall, if you see that if I talk about the whole, then we are around 50% of the production capacity, which we have. Because it is difficult to bifurcate for each machine and each process.

Understood, understood. Sir, last year we had this guidance like we will reach around 3500 door utilization, right? So, are we in line to achieve that by December end or how far we will be?

Yes, definitely we are moving towards that only. But as I told that, we are also increasing our market reach and we are trying to penetrate different regions from where we can get maximum orders. So currently our production is aligned to the demand which we are receiving because we don't want to go into overproduction and over inventory. As it is blocking our working capital. So we are aligned to that and we are focused in that way only. And we are going towards 3500 production per month. And I'm pretty sure that we'll be able to achieve that in coming quarters.

Okay, so by December end, can we assume like previous guidance or it will be slightly more based on your understanding?

Positively, we are looking towards that and I think we can achieve that if market conditions are good and if we are able to crack that much orders.

Okay, so last to smaller question, the elevator that we are selling now as a full unit now, so can you give us some sort of color in terms of pricing versus other competitors in the market? Like on what range basically we like more than average premium or utility in terms of just pricing?

Okay, so it is more of a premium product which we are offering for home lives. So the pricing would start from around 6 lakhs per unit and depending on the project size, like how many flows there are and what kind of, because there are many technical aspects, what kind of product they want, it goes to around 8 lakhs or 9 lakhs also. But normally, an average price for a product would be around 6 to 6.5 leks, where we are getting the maximum orders right now.

Understood.

And this is only for the components, because we are not into installation of complete lift. So, the end product after installation would go around, I think, 9, 9.5 leks or so.

Okay, so the partner that we will...

Yeah, Paresh here, the competitive product in the market at present are in the range of 10 to 12 lakhs. Whereas the end product after installation cost and all that, our lift will cost only 8 to 9 lakhs. So it is quite well placed and with better features than what the other competitors are providing. So, we have a good positive... I have a question about that.

Understood. Sir, then the end... Installer or the EPC player, who will install this elevator, those distributors will be common between for our elevators and other elevators. Is that a correct understanding or this also has a different dedicated dealership?

So, for this home lift solution, we'll be only focusing on few exclusive partners, which we have in different territories. And those companies will only be like working in the projects, like they'll be installing the lifts over there. And it is like a complete solution for a homeowner where we have identified all the issues for the lips, like for the home lips which they are facing. And we have developed the product based on that. So, if I'll tell you about the competition, then you might be knowing about Nibhav and Elite Elevator. So, these companies are such that which are providing the same solution, but we have an advanced feature with our Homelift than what they are providing.

Okay, one more commentator says this LT Elevator also has partnered with one South Asian company, right, where they are also planning to introduce this home elevator only, right?

Yes, they have, I think, partnered with Ricardo, but they have a different product than what we are offering because even though it is for a home lift, the design and the technological aspects are a little bit different. For example, our main USP is that we are providing a battery management system with our lift, which can operate your lift for 100 times without the power also.

Wow.

So that is the main USP, which we are offering, which currently no other company in India has it right now. They are only just providing battery backup system, which powers your lift for a limited time period. But in our product, we are providing for a hundred cycles.

And that too cost competitive, right? Like Ricardo's elevator will be slightly more costly.

I'm not aware of their price point right now, but definitely it is because we have been getting positive response overall. So I think we are at a better price range than them.

Okay. Sir, what is our current dedicated dealership that we have secured as per current estate and what is our goal for next two years maybe?

So dealership per se means for the evoke or for all the products?

No, just for the evoke, sir. Just for the dedicated dealership.

See, evoke at present is open for anybody who wants to sell, but we have tied up exclusively with four to five partners in different states where they would be only selling evoke and we are not giving it to other partners. In that state. So that tie up we have done so that the exclusivity is managed and the product value does not get devalued. Like if there are too many people, then it is again a price war. Whereas it is such a premium product with such good features. So we have taken this strategy that we will not give it to everybody. So the qualifying process is going on. So we have done tie ups with four or five and it is still going on.

Okay, sir, because from market penetration point of view, this number will be critical, sir, for us investors to track. So, request you to please publish this data, sir, going ahead. Like, how many new...

We'll be doing it regularly whenever we declare our details. We'll surely declare this also.

Okay, okay. So one last question, the component, like in the In our previous note also, when we had this secured the... Exclusive dealership for Ibico. So what exactly is the raw material that we are procuring from China? Can you also mention the percentage of cost in, say, bill of material or in the cost that we incur in our site? And is there any plan to make those components in-house? Can you give some light on that?

We have done for EVOC, we have done a lot of development on our own. And what all we import, we cannot disclose everything in this forum. But yes, we have done a lot of indigenous development and we are importing few from China.

In terms of cost also, sir, can you give some rough estimate, if not exact component name?

Cost means around 40% we do the import, otherwise balance we have done our own development.

Okay, sir, any indigenization plan also like going ahead?

Yeah, we have done a lot of indigenization. The battery itself which is the main heart of the whole thing is indigenized. We have developed it ourselves.

And this 40%, sir, we are also planning to reduce it over the time, right?

Yes, yes, yes, yes. Our R&D team is working on it.

Okay, sir. Very great results, sir. Congratulations again and thank you for this opportunity.

Thank you.

Thank you, sir. We have a few questions in the Q&A tab. I will just read out the question. Since Telix has been developed primarily for stainless steel sheet designing and the division is currently operating at full capacity for internal requirements, when do we anticipate expanding its capacity to cater to the broader Pan-India market? Given the relatively limited competition in this segment, what is the company's strategy and timeline for scaling up this division?

See, I would like to give clarity to everybody. Stelix is not another product line. Stelix is a branding strategy. We have done the branding for our stainless steel products that we would like to sell outside to the elevator market and to the interior decoration. It is just a... Branding part. Stelix as a brand is only for the SS sheets that we manufacture at our own place. It is not a separate manufacturing setup. So I think that makes it clear.

Okay, sir. Moving on to the next question. The L&B Creative app has been launched recently. So, do we think that this will help us to shorten the sales cycle or a measurable lift inquiries?

People will get a better understanding. Yes, so Aron BeCreative app is to visualize the whole product which we are selling. Because we are daily dealing with elevator companies and they are dealing with their customers. Normally a homeowner is not able to visualize the whole product like how it will look, how the cabin will look and what will it feel like for a rose gold finish or a golden finish. So to better visualize it, we have developed this app for our customers. So in a way, it is definitely helping to close sales fast because our customers, like our customers, which are elevator companies, they don't have to try to explain how the cabin and how the door system will look. they are able to show them through our app. So in a way, it has helped them in closing sales faster. Also, we keep on updating our new designs on the app. So every now and then, whenever we develop a new design or a new type of cabin, we push it in our app and everybody gets to know about it. So in that way, we are able to push our new products and new designs So, in that way, it is helping us a lot. Also, we have provided more details about evoke and we have also uploaded video shots on that. So, by using that, most of our customers are able to place order correctly and fastly and efficiently.

Okay, sir. So, we have the counter question from the last participant related to Stelex only. So, that is what I wanted to understand. We have created a brand. The demand for SS Sheet is there as there is less competition. So, when we plan to scale this segment.

Yeah, certainly this brand itself was brought into picture to scale up our business because we are supplying to the elevator segment also. So the elevator manufacturer, they also have some apprehension like if they take a product catalog of R1 and show to their customers, they used to sell that you should give a different brand name for The sheet business. So that is why we came up with this idea and we made a separate brand for this. And we are like elevator, we are also appointing traders to promote our sheet business. And it has been quite successful and it is in a positive manner. So you will see good growth on the sheet business also.

Okay, thank you, sir. We'll move on to the next question from Mr. Kartik Bhatt. So, please unmute yourself and ask the question.

Yeah, I hope I'm audible. We have introduced this new Evoke 360 Homelift, so I just wanted to understand what is the approximate addressable market in India, if you can throw some light on it, and what is the right to win as such? I mean, are we competing on the technology front, or are we competing in lesser penetrated markets like Tier 3, Tier 4 markets, and are we price competitive as well?

Yeah, so Evop360 has been developed with an idea of targeting the issues which traditional lift had for home lifts. So in that way, we have been able to solve maximum issues which traditional Lyft were not able to solve. And because of that only we have getting good response with that. Currently, there is not a big challenge of promoting Evoque right now, but because the construction had started with the traditional design, many projects are not viable right now, like new projects which had already been working From last two years, they are not able to incorporate evoke 360 right now. But with time, the projects will be redesigned as per this because this is more space efficient and also more premium looking. So gradually, people are shifting their mindset and people are started opting evoke instead of the traditional lift. And with time, as the awareness grows, more and more people will be interested in that. Also, we are focusing more on tier two, tier three cities right now for this because it is a homeless solution. So either bungalows or only duplexes are like prominent for us for this product. So our major focus is on this tier two, tier three cities only because over there only the bungalow culture is more and the development of such societies where the building, the home is of around two, G plus two or G plus three and they require a lift over there. Does it address your question, sir?

So I think there is some technical issue.

Yeah, yeah, yeah. Okay, okay, sure. And sir, how big is this premium home lifts market in India? I mean, do we have some kind of a ballpark number or I mean?

Could you repeat it again, please?

Sir, how big is this premium home lift market in India? I mean, how big is this market segment in India? I mean, any color on that or how big is this market in India?

Yeah, hello. Yeah, Paresh here. See, as Manish Bhai gave the clarity, the premium elevator market or if you say the home lift market is now growing a lot. There are two things which have changed. One is that people have accepted this as a necessity and not as a luxury. Second limitation, if you see... In the larger cities, the tier 1 cities, the land costs are so high that people, they prefer to live in a building. So, which has got a G plus 10, now it has even going to G plus 30, 40. So, over there, this product is not designed for. This is purely designed for maximum G plus 3. So, in a way, that is the limitation, but that Demand is now growing. People have started installing. So if we look at the overall elevator market, this will be a small percentage. This will not be a huge percentage. So we cannot expect very high growth from this.

Okay, sure, sir. Sir, you mentioned about adding more distributors across both elevator and stainless steel sheet business as one of the drivers, I think. So I just wanted to, if you can quantify a little bit as to how strong is our network currently and how many do we intend to add maybe in this year? I mean, is that possible?

Yeah, I'll just give you a rough estimate. Like today, we are present in all the states of India. We have got more than 750 customers who are regularly buying from us. Out of the 750 customers, there are more than 80% who are very consistent, regularly buying from us. We have our warehouse set up in Ahmedabad, Kolkata. We have traders in all the major cities. If you say in MP, we have Indore. Raipur has recently started. In West, we have in Gujarat itself, we have got many big clients. Then in Hyderabad, we have our trader. Then in Bihar, we have in Patna, our traders. So that way, we have covered quite a lot. And we are still appointing more and more traders in the North region. For a better development. We have very good presence in Bangalore, Belga.

Okay, okay. Sure, sir. Thank you so much.

Thank you, sir. We'll move on to the next question. Oh, from Mr. Manish.

Hello. Thank you, ma'am, once again, for the opportunity. So, sir, we were exploring and railway, what do you say, opportunity, right? So, anything on that front? Has anything factified?

Railways, yes, we have explored, but railway, they have got... Very long process of vendor registration, and they have got too many vendors who are from the government sector itself. Like for the steel, a lot of procurement happens from sale. And so, yes, still we have applied in railways, but we have not yet received any orders from that. The work is in progress.

Okay. And sir, your PFT says that 40-50% of the components, right, which go in making elevators all produced in-house. So are there any products which are still left, which you want to kind of get into, which is in the pipeline?

At present, all the mechanical parts are made by us, but the other parts which are major are like the rails which are installed for the movement of the cabin. Then there's a steel cable which is used. Then there are electrical cables. Then there are electronic panels. So these are the things that we do not plan to enter into at present. But yes, on the mechanical parts, we have gradually introduced a lot many products and we will keep on introducing much more in future.

Okay. And after you commissioned Unit 3, you said you are able to offer a few more services, right? So what are those exactly?

No, few more. It is not few more services. Actually, Unit 3 is more to enhance our production of doors. The Salvini machine which we have installed, it is a fully automatic machine. So the door production has gone up because of that. And in future, we can even look for sheet metal fabrication. If we diversify into other products, the same machinery can be used.

Got it. All right. Thank you so much, sir, for your responses.

Okay. Thank you.

Okay, we will move on to the next question from Mr. Shanky Bantam.

Yeah, hi. Thank you for the opportunity again. I just want to know the Stellix division regarding this... I just want to know that when we spoke in the previous concourse that we are the only one second to bundle, which has too many variants and the captive and the, you can say, customization also. So what is the contribution of sales of SS sheet to outside the final consumer in Q1? What is the percentage?

So, are you asking about the revenue from selling steel in quarter one?

No, only from emboss and designer sheets.

For emboss and designer sheets, I'll have to check, but it is around, I think, around 10 to 15% of quarter one sale.

Yeah, because I think that that product is carrying more because that is the only thing which we are doing after general and we have a lot of customization capability also. Correct? So my point is that why we are not scale up meaningfully in that segment? Is there any hurdle or the customer acceptance? Because we are saying that in the previous con call that we are pitching to interior designers and architect also for selling of these designer sheets.

Yes, so it is not that there is the demand is not there, but because of the current like global conditions, the steel prices had been fluctuating from last three to four months. And because of that, overall, the utilization and overall the procurement or even the sales of steel business was down because of heavy fluctuation in pricing, but now gradually it is being getting stabilized. And so we have like, as we told that we have already approached Fugitech, Omega, Techno for embossing and designer sheets. And they have shown positive note on that. And they have also shown interest and they have also procured from us in past month, but the quantum was less because of the price fluctuation. So in coming months, it will definitely go up.

Oh, yeah. Okay. And in the investor presentation, management has highlighted regarding the additional of senior sales staff across Punjab, Haryana, UP. And there is a geographical expansion also through trader tie-up. I just want to know that since we have hired a senior staff, so the elevated employee cost is already factored in in Q1 or it will be increased in coming quarter?

It is already factored in Q1.

Okay. Okay. And one last thing, I think now the company is in a position to cross the another milestone of 100 crore top line maybe in next quarter. So just want to know that once we cross 100 CR, so the requirement of working capital is also going to be increased and we have seen that short term debt of the company is set on increasing by a wide basis. So how we have managed to plan the incremental working capital requirement? Do we take more short term debt or any plan for fund raise or something?

Yeah, so depending on the time of requirement, definitely we can check which option is better. We might also raise funds from the market or even go with the bank. Currently, we haven't finalized anything in that factor because we are trying to increase our productivity and reduce our inventory days. So, currently we are more focused on that, but definitely with time, if we feel that because of lack of working capital, we are not able to expand our reach, then definitely we might go for either fundraising or debt.

Yeah, because there is so many optionality with our product segment like evoke, designer sheet, and the trader style. So it should not be like that. That company has a scarcity of working capital and not able to scale up because of that.

Definitely, that is something which we are keeping in our mind and we have been, that is the only reason why we are more focused on increasing our productivity so we can efficiently use our working capital.

Okay. So, thank you and congratulations again. Wish you achieved more in this year. Thank you. Thank you very much.

Thank you so much.

Thank you, sir. Sir, one more question. With this increase in utilization to 3500 doors per month that we are targeting, can we expect decent operating leverage to kick in by FI27? End of FI27.

Sorry, could you repeat the question again, please?

Oh, yes. So the question is, with this increase in utilization to 3,500 doors per month that we are targeting, can we expect decent operating leverage to kick in by FI27?

Yes, definitely. Definitely we can do that. And As already I told previously that as the demand rises we will be able to achieve 3500 plus doors depending on how much demand we get. So it will obviously give us an additional boost in increasing the revenue.

Okay, sir. Thank you. With this, we come to the end of our earnings call. I thank everyone for joining us today. On behalf of Ben Potil, I would like to express our sincere gratitude to the management team of Erin for their time and for sharing the company's performance, strategic initiatives, and outlook, and addressing all the investor questions. With this, I now invite the management team for their closing remarks.

Thank you everyone for your valuable questions and for participating in today's earning call. We appreciate your continued interest in Aron Industries Limited and the confidence you have placed in the company. We look forward to continuing this journey together and delivering sustainable value to all our stakeholders. With this, we conclude today's conference call. Thank you once again and have a great day.

Thank you, sir. Thank you to all the participants for joining us today. If any questions remain unanswered, please feel free to reach out to us on the mail ID mentioned in the chat box. Thank you. Thank you, everyone. You may now disconnect.