Navneet Education Limited (NAVNETEDUL) Q1 2027 Earnings Call Transcript

Ladies and gentlemen, good day, and welcome to Nominee's Education Limited Q1 FY27 Owning Conference Call. This conference call may contain forward-looking statements about the company, which are based on the beliefs, opinions, and expectations of the company as on date of this call. These statements are not guaranteed of future performance and involve risk and opportunities that are difficult to predict. As a reminder, all participants' lines will be in listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. If you do need assistance during this conference call, please signal an operator by pressing star then zero on your touchtone phone. Please note that this conference is being recorded. I now hand over the conference to Mr. Sunil Kala, Managing Director of Navnees Education Limited. Thank you, and over to you, sir.

Thank you very much. Good afternoon, everyone. Thank you for joining us today. I am pleased to present our financial and operational performance for the first quarter of the financial year, 2027. We are navigating a dynamic market environment. Our Q1 F527 results highlight both temporary transitions and the incredible resilience of our core domestic businesses. First, I'll talk about basic numbers, and of course, then I will talk about in detail for each of the businesses. So, the total revenue of the company remained at 785 crore, of course, little lower than what we did in first quarter F526. Within that, our publication division recorded a minor dip, 3%, moving from 419 crore down to 405 crore. As well as stationery segment is concerned, it registered at just small 2%, growing to 380 crore from 372. And within stationery, domestic stationery vertical, it grew by 26%, versus export stationery contracted by around 9%. Now I will talk about the businesses. First, let me analyze the publication division and curriculum impact. The structural lens-up of our publishing division is currently undergoing a favorable shift. Promising curriculum changes are actively unfolding across two of our primary markets, Maharashtra and Gujarat. While this transition boards fell for our market leadership, it also caused a notable spillover of business from first quarter into the second quarter. Because of this timing difference, our real growth is not fully reflected in the first quarter numbers. The reason also I should tell you that we will, we normally publish our publications post-release of textbooks from the respective state governments. Now, those textbooks were released quite late and not as per the academic year, and therefore we also could not. We will deliver the same products, our curriculum products in the market, which happened in Q2, particularly in July. So to gain a truly holistic and accurate picture of how these curriculum changes are positively impacting our business, we must look at our performance across the entire first of the year, FI27. Of course, I am always talking about not looking at the numbers on a quarterly basis for a seasonal business. The management team remains exceptionally confident about delivering reasonable growth in this segment as the year progresses. Now I'll talk about stationery segment, first about domestic. So our stationery business delivered a resilient performance this quarter. Of course, again repeating, the quarter performance does not reflect the full year's performance, but in this quarter, A strong domestic expansion successfully neutralized severe international headwinds to keep our total segment revenues net positive. The standout star of the quarter was domestic stationery experiencing 26% surge. It is, of course, for the current year, fastest-growing engine for us, and this growth highlights robust local demand, deeper market penetration, and increasingly stronger connection with Indian consumer. To sustain this momentum, we have initiated a long-term strategic plan, and this includes Aggressive investments in branding and the key appointment of additional senior talent, specifically for our non-paper stationery vertical. While these upfronts investments have placed temporary pressure on the segment's short-term profitability, the management team is firmly convinced on this, on the immense long-term benefits that the branding and the diversification into non-paper portfolio will unlock. A little bit on our exports. The stationary business faced a tough environment this quarter. The tough environment is mainly on account of supply chain disruptions, escalating geopolitical challenges, and overall weakening of demand in our market, majorly to the U.S. Of course, we can talk in detail about it in Q&A. Beyond these challenges, as you know, we had put up a new polymer plant, which was primarily set up to feed our exports market. We could not utilize to its optimum capacity due to this global slowdown, and this lower capacity utilization created under-absorbed overheads, which further compressed the overall profitability of our stationary segment. We view these international challenges as temporary obstacles rather than permanent roadblocks. We are actively refining our global supply chain strategies and adjusting factory outputs to better align with fluid global landscape. In summary, our business is undergoing a vital structural mix-ups while we are temporarily losing traction abroad temporarily. Our publishing division and domestic stationery business will emerge as our critical growth drivers, particularly for the current year. Moving forward, we will continue to double down on our high-margin domestic operations, that is the publication business, and we are deploying targeted product innovations and aggressive marketing strategies across our Thank you very much. Instead of me talking more on the business, I would prefer now questions from you all, which I will try giving and satisfying your questions. Thank you.

Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask questions may press star and 1 on their touch-tone 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 Madhur Rathi from Counter-Cyclical Investments. Please proceed.

Sir, thank you for the opportunity. Sir, generally, can you give me a bifurcation about how much of publication revenue comes from schools versus workbooks that we sell through physical stores?

As such, these bifurcations are never available. Finally, we end up marketing our workbook category to the schools. It is not compulsory that schools always buy. At times, they recommend, which finally students end up buying from the stores. So, overall, I can tell you that of the total publication revenue, around 45% comes from the workbook category. And you can say major of that is due to recommendation by the respective schools. So, 45% of our total revenue is from workbooks.

Sir, I wanted to understand we were expecting a 15% publication business revenue growth during this year. And one of the reasons you mentioned was because of the spillover, something should come in Q2. But sir, these coaching centers, all your platform, the EdTech platform, sir, these guys have started supplying their own in-house material, workbook kind of material, sir. So do we see a threat from that segment for us to grow? Because this is a very big chunk of our revenue.

During my speech, I did not mention about one of the reasons. It is the only reason of we not able to show performance in Q1. Whatever curriculum change that has happened in the current year, all the publications that we could sell only in the month of July because of some late time that we have to give post-release of textbook from the state government. So, that is the only reason of Swift 2, Q2. Coming to your point on various other new competitions, mind well, this could happen in higher grades, maybe 9th, 10th, 11th, 12th grade. This could happen. I believe, though it is not a comparable. Category at all, because our products are quite price sensitive, quite low priced versus what you are talking is quite high price. But having said that, in the current year, in any case, primary level curriculums have changed where there are no coaching classes as well. And it is already proven that digital intervention or rather only depending on digital intervention in the school is not a practical solution, particularly in India, and therefore, books is the only solution.

Sir, so, considering whatever volume of take that we have seen in July month, sir, what kind of growth can we expect in this publication division conservatively for this year? And sir, this is because lower, because a lot of schools have already subscribed their books, and because of that, the actual volume of state might not be similar, like what we were expecting for 15% or something else for this lower guidance?

Madhur, let me explain you again that each and every student in the state, they buy government-published textbook. Now, it all depends on the school's decision whether should they prescribe workbook also to their students or not. So that process is already on, and whatever orders that we would have taken, we have started supplying them in the month of July. Because Q1 is a little nervous, I am giving guidance of 10%, but overall, if you ask me, we are quite positive about growing more than 10%.

Got it. So there's a final question from my end. So seeing the very, very good growth that we delivered in our domestic stationary segment, overall, what kind of growth can we expect in our stationary division and on the margin front as well, because margins for Q1 publication divisions have been little lower than last year. So what kind of margins can we expect for this year?

So this year, part of the quarter where, particularly in exports, revenues were at a discounted rate because of the tariffs were there. Once tariffs were withdrawn, and it takes a couple of weeks to get settled, and then we started realizing the normal pricing, and that was one of the reasons of lower margin in stationary. So, particularly in our exports, in the current year, we are still looking at 5% degrowth versus in domestic stationery, we are looking at growth of around 15% to 17%.

And sir, on the margin for the overall business, what kind of margins can you expect?

On the stationary front, I am expecting around 12% margin.

Okay, and on the publication?

Publication, the margins would be around 26-27%.

Got it. Sir, I'll get back to you. Thank you so much.

Thank you.

Thank you. The next question is from the line of Gunit Singh from Counter-Cyclical PMS. Please proceed.

Thank you for the opportunity. I want to understand, because of this deferment or delay in off-take, I mean, how much revenue have we lost in this quarter? So, we did about 788 CR. So, how much revenue have we lost because of this delay in this quarter?

So, normally the grades for which it is changed, the curriculum has changed in the current year. If there was no curriculum change, we would have done between 30 to 35 crore revenue in the publication segment without change scenario. So, I wouldn't say we have lost. All these revenue will come in the month of July. So, apart from no curriculum change of 30 odd crore plus the growth normally whenever curriculum changes that we get. So, all this growth will come in the quarter too. So, 30 crore, yeah, normal publication sales that we would have otherwise done if no curriculum changed, plus the growth because of curriculum change.

Got it. So, you're saying that we should see X because of the curriculum change. So, basically, 85% of our EBITDA comes in quarter one. And if we look at historically, quarter two has been contributing less than 0.1, 0.5% of our EBITDA. So, I want to understand now, because of the deferment, how much additional revenue will we have in Q2 because of this deferment? Because we did around 247 CR revenues in Q2 last year. So, because of this deferment, are we saying that 247 crore plus 30 crore because of the new policy guest?

Yeah, plus 30 plus something. So, overall, 247 should reach 300 odd crore.

Okay. And even at 250-270 crores in Q2, we don't make any profits. So, for example, in Q2 FY25, we did around 270 crores, but EBITDA was 2 crores. So, what kind of an EBITDA, I mean, can we expect in Q2 because of this deferment?

Gunit, my suggestion would be if you look at businesses little separately would be better because the margins in publication business is quite high, which is 26-27%, versus in stationery it is hardly single digit, 8-10%. So what I am talking is the total growth that we are expecting in Q2 would be in publishing segment. And therefore, the EBITDA number will be much better in Q2.

Got it. So, how much of revenues from publishing was there in Q2 last year? If we get, I mean, I want to compare Apple to Apple, so we get an idea. So, how much revenues in Q2 last year were from the publishing division?

I'll need help from my CFO call page to open that number, please.

Yes, sir.

And also, if you can help, how much revenues are we expecting in Q2 from publication this year?

Okay. Yeah, so 91 crore will definitely go above 130 odd crore. Got it.

Got it, sir. Thank you very much. So, my last question would just be regarding an year guidance, if you may, for revenue as well as EBITDA margins, if you look at the The entire FY27.

Again, publishing, I just mentioned to the previous speaker, which is at present, we are talking about 10% margin, and in stationary, it would be on an average, it will be also again between 8 to 10%, because domestic business, we are seeing little degrowth in the current year, because of the reasons known to all of us. Versus that will be compensated by higher growth in the domestic market. The export market is a little bit in a weak scenario right now. Okay.

Thank you very much, sir. Join us in the queue.

Thank you.

Thank you. The next question is from the line of Dhaval Shah from Port Capital. Please proceed.

Yes. Thanks for the opportunity. Many of the exporters have received the tariff refund. So, any tariff refund in VCF which we have received? Because we are supplying to retailers of the US store.

So, first of all, all these tariffs till date were paid by our customers. We had not paid any tariffs directly. Now, we have put up our request to our customers that if they receive the tariffs back, they should pass on at least the additional reduction in prices that we had given, that they should pass back to us. That requests are there, but there are no positive response from them till now.

Okay. Okay. Okay. And how is the outlook for exports of stationery?

This year, as I just mentioned, overall we are seeing degrowth of around 5% compared to last year, and there are major of our back-to-school season which already went by, wherein because of these challenges, we could not supply as usual, and that business cannot. Just gets spilled over. And therefore, that we have lost that business. And therefore, I'm saying overall in the current year, there will be degrowth by around 5%.

Okay. Okay. Okay.

Thank you. Thank you.

Thank you. The next question is from the line of Himanshu Upadhyay from SID4. Please proceed.

Yeah, hi. Good afternoon. My first question was, in the note, we have stated that we have sold some stake in K-12, okay, subsequent to the quarter, okay, and for a consideration of 330 crores, okay. Post this transaction, what is our stake in the company, and how much have we sold in this tranche?

So, overall, as a percentage, we are selling around 3.7 percentage of 3.7. Kalpais, if you can recollect me, how much percentage are we selling?

It is around 4.5 percent.

4.5% we are selling, and how much will we be left with?

It will be around 8.8% we will be having with us.

We will be left with us, yeah, 8.8%.

Okay, and in last few years, we have done pretty significant TPEX, okay, for non-stationary and domestic, and also for exports, though exports have not... Done much. What would be your thought process for this 330 crores? How do you plan to use and what type of opportunities would you be looking for? And one more thing. Historically, we had done some small investment in a private equity firm with various companies. One or two have done pretty well. And a lot many have not done that well. But are we going to continue with that strategy or do you think some thoughts on that will be helpful?

There are no thoughts of investments right now. Of course, we will talk internally with the directors. This is the only area that In education, because of the technology, there are so many changes are happening, and which we may not be able to look to do ourselves, and there would be some kind of strategic involvement, if at all, we do investments for, but otherwise, there are no long-term, rather any investment type of, we don't want to become financial investors in any company now. As far as the utilization of these funds are concerned, of course, we are very clear that going forward, we want to grow Indian market to its full potential in stationary segment. And therefore, Apart from organic, there could be some inorganic opportunities also may come. Nothing on the table right now, but we want to have this balance with us so that we can take a quick decision soon.

Okay, and one thing on the exports side, now the clarity is there on the tariff or arc. Not clarity, but it seems better than what was last year, the situation, okay? In terms of your vendors, what type of discussions are happening? And what I understood was in FY25, before the tariff, US was nearly 75% of our exports of stationery, okay? It boasts last year's decline and this quarter's further decline. What percentage of our exports would remain in US? And we had thought of expanding beyond US also, which was around 20-25%. What is happening on that side? And how are you seeing the potential in those markets from here on?

So, even though we have grown in other markets a little bit, but compared to US as a percentage, that remains negligible. Now, with respect to your question on what are the discussions with our customers, not the vendors, but customers, of course, everyone wants to buy majorly from India. I should say here, and which you may hear from most of the industries, FMCG industries or the consumer durable industries, that because of the inflation at U.S., overall consumption of such product categories have muted or have de-grown, and therefore, even though tariff concern is more or less gone, But because of the low upliftment of the products, the demand is not coming through to the suppliers like us.

Okay. And how is the inventory situation? See, why this question is? Because once the last year, because of tariff, almost everybody would have got affected in terms of suppliers like us. Do you still find the channel inventory is pretty filled up and hence muted outlook for you or you think now the channel inventory has marginalized and it can get better or some thoughts there?

No, you are right. Channel inventory, majorly the inventory with our purchasers, because there is no one in the channel. It is us and directly the major retailers of the U.S. So, they are still left out with the inventory. The upliftment is not like as usual, as I just said, because of the inflationary pressure. Enter for... So, the reorder numbers, quantities are not encouraging as it uses to be earlier.

Okay. Okay. And one more thing on the publishing business. Okay. And one of the trends we have been calling out for quite some time was that many street board schools move into CBSE schools. How is the trend going even in this year? And after the merger of Indianica with Navneet, how are we preparing or planning or working out on those things? And how many schools would have transitioned in this year to CBSE?

I may not have the exact number because these numbers are officially not available anywhere. When I am talking about converting from the state level to CBSE, even though they have not got affiliation from CBSE, they start using private publishers' textbook and therefore they call themselves CBSE patent schools. These numbers are not really available anywhere officially, but generally trend-wise, I am saying that the growth in such schools is more than 15% year-on-year. So, that way, more and more English medium schools, which are state-affiliated, are transitioning to CBSE type of curriculum. That trend is continuous, and as far as we are concerned, now that in Navneet as well as in Indianica, we have most of the product portfolio with us, that we have already started catering to these schools, and moreover, we have already started publishing supplementary books, the one which we are publishing for state government of Maharashtra and Gujarat. Similar type of publications also we have recently started, not in full for all the standards because even their curriculum change is continuous, and with new curriculum we are going to publish the supplementary books which will be sold directly in the trade, just not to the schools. So, the full portfolio of textbook as well as curriculum or supplementary books will be available from Navneet going forward for CBSE schools.

And at one point of time or let's say two, three years back, we were restricted or we were restricting ourselves to eighth standard of CBSE, okay, majority of the books were. Have we reached till 11th, 12th majority of the books for CBIC?

So, 2-3 years ago when I said we were just publishing textbooks. Now, typically textbooks in CBIC schools or CBIC patent schools in 9th and 10th grade, they use government-published textbooks only because students have to appear for the board exams. And in there, government-based books only are preferable. But now what I am talking about, supplementary books, these will be available for all the grades, up to 10th grade in particular. Because these books are, supplementary books are based on state and central government textbooks. Therefore, that will be available for all the grades.

And one last question. On the domestic stationery side, we have been making efforts for the non-paper-based stationery. Where have we reached on that? And do we think it can be a sizable 10-15% of our overall domestic stationery or we think it will take a lot of time to reach that position?

No, no, no. In three years' time, it will be of that percentage we are very confident of. Recently, what we just did was whatever products that we already had in non-paper, which was not paid attention by us, that we changed overall look, feel, packaging, everything of that, introduced several other product range in the same category. But the new categories will be... Made available at the end of this year. So, several new categories also will be introduced by us.

Okay. Okay. Thank you for my time.

Thank you. The next question is from the line of Arihan, from Bowhead. Please proceed.

Hi, sir. Thanks for taking my question. Sir, I wanted to know for Gujarat, like, which grades or which subject curriculum change is expected to happen in next financial year?

Rumi, do you have a clarity on that? I do not have in front of me right now.

No, we have not received any clarity yet.

Okay. It means there is no clarity from the state government itself till now, for the next year.

And in this year, there has been change for few subjects from grade 2, 3, 4 and 6. Am I right on this one? Okay.

That's right.

And sir, I wanted to know like you were saying about the polymer plant, so can you give a rough idea what was the capacity utilization or if you can quantify what was the amount of cost that remained unabsorbed?

No, no. So, total investment in the plant is around 65 odd crores, and with the teams there. So, total utilization-wise, this plant just started in last quarter of FY26, and we were expecting good orders based on our discussions with our customers. But because of this situation, we did not receive orders, and together... With that, raw material of polymer prices went so much higher that it was not worth taking, you know, aggressive stand there. Therefore, capacity-wise, we would have hardly used around 30-odd percent capacity of that plant. And because of that, all manpower costs as well as overall factory overheads, that took over the margin in the current business.

Okay, sir, and...

It's very temporary, temporary phenomenon.

Okay, sir. So, it will, you are expecting it to get resolved this year itself?

Yeah, there are so many external factors also which are beyond our control, but what discussions that we are having with our customers, we are very hopeful that it will be normalized in the current year.

Okay, sir, and what drove the domestic stationary growth in 1Q? Was it mainly led by non-paper stationery? And if you can give the price and volume growth breakup?

No, no. So, it is still not by non-paper stationery. It is by paper stationery only. And because of... Certain brand association, known, very popular brand association, very, very innovative cover designs, and additionally, the e-commerce and quick commerce focusing both these segments that led to this growth.

Okay, and sir, what was the price and volume growth breakup if you can provide?

I won't have readily available right now on the volume growth. We can take that offline also, please.

Yes, sir, and can you tell about the paper prices trends? Has there been any increase in paper Our prices since April to start of this year.

Yeah, there was around 2,000 rupees per ton, around that much increment was there since April. Thereafter, paper mills did talk about further price hike, but they could not implement because of the market situation. So, practically, it would be hardly 2%. 2%.

Okay. Got it, sir. And last question, like, what was the Indianica loss and revenue in Q1? I know, this is regional business, just wanted to know.

No, no, no, no, no, no, no. Well, this is your answering rate.

Call this one?

Yeah, I'm there.

Kalpes, you are answering, right?

No, so Indianica, the top revenue was 3 crore for this quarter, and negative debt at 7 crore.

Thank you, sir.

Thank you.

The next question is from the line of Tisha, from TNATRA Asset Manager. Please proceed.

Hello, how are you, sir?

Yes, please.

Yes, so, thank you for the opportunity. My first question was, how much visibility do you already have on the curriculum change-driven demands in Maharaj and India? Can you speak a little louder, please? Yes, sir. My question was that how much visibility do you already have on the curriculum change demand in Maharashtra and the Gujarat, specifically logged in for ECA 27. My question is from the perspective that the 15% growth, almost 15% growth in the first two years. How much of that is visible in orders and school adoption and inventory change, sorry, inventory channel today, as of today?

So, as on today, and as I just mentioned to the previous person, that with the present situation, we are looking at around 10% growth for the whole year in publication business.

Okay.

And what portion of this growth is coming from volume and price, if I can get the data?

So there are no price rise in the current year. So it is everything that we see will be volume growth.

We have not revised our MRP of any of our products.

Okay, and just last question from my side, sir. What is the, like, what would be the sustainable EBITDA margin for the stationery after the current brand investment phase that is happening?

If we talk about both stationery businesses together, we should do between 10 and 11% EBITDA margin.

Okay, sir. Could I get a break-up of the stationery and publication, if possible, sir?

Break-up of what? Revenue or profitability? Going forward for the year?

Or for the first quarter? Sir, I want for the FN27, but if quarter 1 is also available right now, I can...

No, quarter 1 to, yeah, quarter 1 to, Kalp is coming here.

Thank you.

Sorry, I was on mute. So for quarter one, it was 15% for exports and 3% for domestic stationery.

And for publication business,

Sir, publication business, it was around 40%, but again, it gets a majority of business.

That would be profitability margins, correct, no? For quarter means.

Yes, correct.

That would be profitability margins, correct?

Yes, yes.

Okay, thank you so much.

Thank you. The next question is from the line of Liraj from White Pine Investment Management. Please proceed.

Can you hear me? Yes, please. Thank you. If I just assume that 10% growth, okay, so the basic question is, with class 2, 3, 6, and 6, and 2, 3, 4, and 6, the numbers being changed, and new demand coming in, why do you expect only 10% growth this year? It should be higher, or is it just a few subject changes that have happened?

No, so 2, 3, 4, 6 in Maharashtra and few subjects in Gujarat. Now, traditionally, 2, 3, 4, 6 contributes around 20% of our total publication revenue. It does not contribute more. Higher the standard, the percentages are higher. And because of that 20% growth where we are expecting, At least 50% growth in these standards, and therefore we are speaking about 10%. But if you see overall for next 3-4 years, then it will be higher.

Secondly, if I just assume a full year revenue is of 10% growth rate, the implied revenues for publication for the remaining nine months is close to 27%. So that would be the right way to look at it, right?

Yes, please.

And most of the revenue would come in a Q2 because of the feedback from the school and your recommendation only starting after the school starts.

Yes, please.

So, in terms of that, won't we see a very large revenue growth in the entire Q2 itself?

Yeah, that should happen. That will happen rather. In Q2 itself, we'll see large revenue growth in publications.

Yeah, but sir, you just mentioned that it's only 130 crores. I thought the number should be much larger than 130 crores. Because if schools have started recommending about your books after the school starts, then the school started in the month of June. So ideally, July should be a very good year for July and August.

No, I understand. But finally, what we have been selling every year, we have to see growth in that particular grades only. And on the... Whatever, see, whatever the growth that we have had, one minute, 83, okay, the growth that we had in the first quarter, so we will recoup that, plus the growth of the numbers that I just started, I tried explaining with the first speaker, so overall around 45 to, 45, 50 crore additional revenue, it should come. Uh, compared to Q2, 25, 26.

Got it.

Got it.

And so your receipt, you know, of the books, the return books will also be lower in Q2, so your margin should be higher, or is it supposed to be flattish?

Margin won't be higher than Q1 because the first quarter always overall the top line is quite heavy first quarter where is the all our. Fixed and semi-fixed expenses remain the same every month. Therefore, margin gets reduced in the subsequent quarters. Therefore, margin-wise, it will not be better.

I'm talking about Q2FI27 margins over Q2FI26, year-on-year.

Yeah, of course, it will be better, much better.

Okay. Okay. And, sir, the last question. In the U.S., is there any visibility of it? I know you said that the orders are not so great, but is there any visibility of orders on the new product that you might be pitching in the past?

There is visibility, but that product range will not really throw us a big, large volume. Normally, whenever we introduce new categories, we also do not plan our manufacturing facilities at a bigger level, which we try to grow on a regular basis. So, there is an acceptance of the new category, but the volumes will not that be large, that it will show much better growth for that category in one year.

Okay, I got it. Thank you. I'll be back in the queue.

Yeah, yeah, yeah, yeah.

Thank you. The next question is from the line of Arihant from Bohat. Please proceed.

Yeah, thanks, sir. Just wanted to understand, like, in the Q4 call, like, you had mentioned high single-digit growth in export stationery, but, like, right now you are saying minus 5%. So, wanted to know, like, what are the, you know, additional changes that happen, or? What, you know, contributed between that period, end of May, till today, that caused us to change the guidance majorly. And any expectation for next year, like from what conversation you are having with the exporters, what can we expect next year, the export stationery growth?

So, again, as we all know, post my May call, again, there was. Various disruptions and uncertainty again emerged in the Gulf. And because of that, the main affected country, I would say, apart from Iran, is U.S. And therefore, so many dynamics have changed in this period with newer and newer decisions coming in regularly. That really disturbs the business community, and therefore the quantity that we were expecting from our customers did not come through. Now, as I said, these were all external factors which we had no control on, and therefore change in my statement in the current year. Now, because season has gone. There also it is back to school season where before the month of August each and every material should reach there. That did not happen. Now that we can't bring back, that business we can't bring back and therefore my new guidance of minus 5%. We are very hopeful when first reduction in tariffs came in. But thereafter, so many new challenges came in that orders did not come through.

Can you quantify around what back-to-school orders sales we had lost because of the disruptions?

School order?

Back-to-school order lost which we lost because of the disruptions.

Yeah, so... Very difficult to quantify. There are so many SKUs and so many subcategories that are very difficult to quantify, but overall sentiment-wise, because of higher inflation in the U.S. and this disruption during the month of April, May, June, the business sentiment-wise, we did not receive the orders expected from our customers.

Okay, thank you.

Thank you. To ask a question, please press star and one now. Participants who wish to ask a question, please press star and 1 at this time.

Ladies and gentlemen, that was the last question for today. I now hand over the conference to Mrs. Sunil Kala, Managing Director of Navneas Education Limited for closing comments. Over to you first.

Thank you once again to all of you. I hope I have been able to answer your questions. And in any case, as usual, you can contact our IR directly also for any of the questions. We'll be happy to answer that.

Once again, thank you, everyone.

Thank you. On behalf of Navneet Education Limited, that concludes this conference. Thank you for joining us, and you may now discuss your lunch. Thank you.

Thank you.