Onida Electronics Limited (ONIDA) Q1 2027 Earnings Call Transcript

Good morning, ladies and gentlemen. Welcome to the conference call of Oneida Electronics Limited, arranged by Concept Investor Relations to discuss its Q1 F527 results. Before we begin, let me mention a short cautionary statement. Some of the statements made in today's earning call may be forward-looking in nature. Such forward-looking statements are subject to risk and uncertainties, which could cause actual results to differ from those anticipated. Such statements are made on management's beliefs as well as assumptions made by the information currently available to management. Audiences are cautioned not to place any undue reliance on these forward-looking statements in making any investment decisions. The purpose of today's earnings call is purely to educate and bring awareness about the company's fundamental business and the financial quarter under review. Let me now introduce you to the management. We have with us today, Mr. Kunjan Srivastava, Managing Director and CEO, Mr. Manish Desai, Chief Financial Officer. 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 that this conference is being recorded. I now hand the conference over to Mr. Kunjan Srivastava, Managing Director and CEO. Thank you, and over to you, Mr. Srivastava.

Thank you. Good morning, everyone, and thank you for joining us today. Before we open the floor for questions, let me take a few minutes to give you a brief overview of our company and where we stand today. Established in 1981, Today, we are proud to be one of India's most recognized and trusted homegrown consumer electronics and appliances companies, built on a foundation of innovation, quality, and enduring consumer trust. Over the years, we have built a deep emotional connect with generations of Indian consumers through iconic milestones, such as the legendary Devil Campaign, which made our brand a household name. And our continued spirit of innovation, including pioneering achievements like introducing Asia's first Fire TV. As a proudly Indian brand, guided by our philosophy of made in India, made for India, we have remained committed to delivering products that embody our enduring promise of owner's pride. One of our greatest strengths continues to be the trust our brand enjoys. We serve consumers through both offline and a rapidly growing e-commerce channel. This combination of a trusted brand, diversified product portfolio, and robust distribution platform provides us with a strong foundation for sustainable long-term growth. Today, we have a diversified portfolio of consumer electronics and appliances, with air conditioners, televisions, and washing machines as our key categories. Over the years, we have evolved our business in line with changing consumer preferences. While televisions have been the foundation of our brand and continue to remain an important part of our portfolio, air conditioners have emerged as our largest business, reflecting our ability to adapt. ...innovate and strengthen our presence in India's rapidly growing cooling market. As we embark on the next phase of our journey with Oneida 2.0, we are focused on redefining our growth trajectory. Our strategy is centered on affordable premiumization, innovation-led product development, enhanced energy efficiency, and deeper market penetration across India. We believe these strategic priorities... Combined with our rich legacy, strong brand equity, and experienced leadership team, position us well to capitalize on the significant long-term opportunities presented by India's under-penetrated and fast-growing consumer durables market. Moving forward, let me briefly touch upon the industry and the opportunities we see ahead. As India continues to be one of the fastest-growing consumer durables and electronics markets in the world, And I firmly believe that the long-term structural opportunity remains stronger than ever. Consumer preferences are evolving rapidly towards premium, smart, and connected products, while low category penetration, rising household incomes, a young and aspirational population, and continued urbanization are creating a significant runway for sustained growth across our businesses. Across each of our core categories, we see compelling opportunities in air conditioners, Penetration in India remains low, highlighting the immense headroom for growth as cooling increasingly becomes a necessity rather than a luxury. In televisions, the market is undergoing a meaningful transformation, driven by consumers upgrading to larger screens and smarter, connected experiences. Recent GST reductions are expected to further accelerate this aspirational and premiumization trend. In washing machines, the category continues to witness healthy growth. Supported by increasing adoption in Tier 2 and Tier 3 markets, and a clear consumer preference for fully automatic and feature-rich products. At our company, we are positioning ourselves to capitalize on these long-term opportunities with a clear strategic vision. Through Oneira Rewired, we are entering the next phase of our transformation with a sharp focus on affordable premiumization, innovation-led product development, As India's premium consumer electronics market continues to expand, we are confident in our ability to strengthen our position through differentiated products, disciplined execution, and deeper market penetration. Our recent launch of the 100-inch QD mini-LED television reflects its strategy and our commitment to delivering world-class technology and premium Same experiences to Indian consumers. Let me now briefly take you through our operational performance during the quarter. So during Q1 financial year 27, our branded business stood at Rs. 175 crores. That recorded 35.8% year-on-year growth, primarily driven by strong performance in our LED TV and AC categories. Our LED business grew. Our AC business grew 36.8% year on year, supported by new product launches and promotional initiatives, while our AC business grew 39.2% year on year, reflecting a recovery in seasonal demand. Our washing machine business declined marginally by 1.8% year on year, mainly due to product mix. Overall, we remain encouraged by the momentum across our key categories and continue to focus on strengthening our business performance. Turning to our financial performance for the quarter, our revenue from operations for the quarter overall stood at Rs. 182.4 crores, registering a 29.5% year-on-year growth compared to Rs. 143.9 crores in Q1 financial year 26. Our overall gross margin improved to 17.3% compared to 16.3% in Q1 financial year 26, an improvement of 100 basis points. Primarily supported by a better sales mix and improved realizations in AC and LED, partially offset by a decline in washing machine margins due to higher input costs and aggressive pricing by competition. We reported a loss of 14.2 crore rupees for the quarter compared to a loss of rupees 12.5 crore in Q1 financial year 26. We remain focused on improving our profitability and operational performance, including working capital going forward. With that, we would now be very happy to take your questions.

Thank you. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and 1 on your touchstone 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 next question comes from the line of Dalenjay Bakarodia with Alchemy. Please come in.

Yes, we can be allowed to do this.

Yes, sir. So, firstly, a good set of numbers considering the environment. Just understand now with input costs increasing, how are we thinking about it? Are we planning to keep prices lower or higher as a competitive strategy? Are we looking at margin growth? What are we thinking in terms of strategy for, let's say, with higher input costs?

So, I think a very relevant question in current environment.

Okay.

The way we are looking at it is that from a pricing perspective, we want to remain competitive. Okay. In the competitive set we are operating in, while trying to manage the value chain in a manner that we are also protecting our margin.

Okay, so specifically, I'm just kind of wondering, going ahead, because other players are also having the same margin pressure, but we saw some of the other numbers, they took the hit on their margins and they kept prices tame. So are we also looking to do the same? Because we also have to increase Arabism spend versus other players who are a little more established. I'm just kind of wondering how are we thinking for strategy?

So apart from what I just mentioned, the other aspect we are also looking at is our product mix, the mix which we sell across our categories and within our categories as well.

Sure. And B, just to overall understand, how is the environment on the ground in terms of customers' feedback? How are they responding to our product launchers? Or is it too early to say right now?

Early indications are quite encouraging. You know, as we are increasing our reach, and as we are increasing our retail activation, we find that we are increasing our conversion as well, which is reflected in the initial growth we have in Q1. And going forward, our entire focus is on improving that aspect of our go-to market.

Okay.

Thanks for the opportunity. Firstly, great set of numbers. My first question is to Gunjan. Gunjan, you are coming from BSH Appliances, right? At what scale did you join and what are the things that did you achieve? So, we understand that the caliber that you are carrying is here. Basically, on the number side, what are the scales that did you achieve in BSH applying? Can you share that a little bit about yourself?

Yeah, thanks, Aditya. I'll try and keep it as short as possible. So, I joined BSH in 2014, early. I spent about 12 years there. First five years in BSH India, where... I was responsible for more or less setting up the company and scaling it up, and then the last six years, I was in BSH UK and Ireland, where it was an established, mature organization, where again, I was looking at transforming it from a slightly more old school to a more digital and B2C company.

And what skill did the revenue touch there in BSH India? Because you worked there quite a significant amount of time, right?

I would not be able to sort of reveal those numbers because that is something which pertains to BSH India. I can only say that we significantly scaled up from the time we started to the time, you know, I left the organization, and the company continues to grow.

Okay, okay. And now my next question is regarding the Oneida. So, basically, you wanted to outsource the manufacturing here, right? That is our strategy that we are going ahead. I've been with King. This strategy will work across the scale that we are envisaging for the next three to five years for the Oneida.

So broadly speaking, Aditya, I think we have an asset-light strategy. We do have own manufacturing as well. But what we are trying to strengthen is our ability in R&D and design, etc. Just for that. What we bring to the table is a differentiated basis on how we want to serve our consumers.

And also, now the question is, whatever you are trying to replicate, why can't the competitor also copy that and they can release because they have the right distribution and they can also push. So how are we making sure that we are having the right R&D and we are delivering that?

Very valid question for us. I think the main differentiator for us is going to be how we connect with the consumer closely and regularly and use that insight or insights from what we gather with our consumer connect to deliver solutions which are again solving the pain points of Indian consumers. Onida is an Indian brand. Historically, 45 years has understood the problems and challenges of Indian consumers and Indian households. And that is something which is unique to us, which is what we want to exploit by actually remaining close and connected and using our insights, translating that into the products we design so that that way we can differentiate ourselves in a relevant manner.

Okay. And also coming on to the numbers, right? Since we are investors, we focus mostly on numbers and the story side. So when can we expect... A positive EBITDA, and what is the strategy for, I'm asking for this year and next year, what kind of revenues and EBITDA margins are you looking at the business, from the gross margin side and the EBITDA margin, for two years?

So, Dananjay, in fact, Manish over here, in terms of, we have more of a forward-looking statement, we should not like to give it right now, but you can say the key thing is, we started showing, or we have registered revenue growth for the quarter one. And our objective is to continue this momentum for the rest of the year as well as for the next coming year. And once we reach to a scale, it will start resulting into the positive or the bottom line as well. And that's the objective with which Mr. Gunjan has just enlightened earlier, the kind of strategy or the kind of product differentiation, the kind of things on which we are working upon.

Also, Gunjan, do you think that we have all the right team in place right now or still we are making the transition or the transition is completed or the next step is basically you talked about opening a service center across the country. So, when we can think the transition is completed and it will be, we can see it in numbers. So, by which year you can expect the investors to see the result in numbers as well?

So, let me answer your question in two parts. Firstly, on the transition in terms of team, so we do have a new and strengthened leadership team which is now fully in place. There are always going to be some transitions depending upon performance and competency, etc., which will continue to happen. The answer to your first part of the question. On the side of numbers, Manish already mentioned that we are looking at carrying forward this growth momentum through the year and next year, and obviously once we scale up to a certain level, then it will start flowing through in terms of EBITDA as well.

Thank you. Mr. Javar, please rejoin the queue for more questions. Next question comes from the line of Vikram Damani with Damani Family Office. Please go ahead.

Hi, morning. Am I audible? Yeah, you are. First of all, thanks for hosting a call. It's useful for investors to get a sense of where we are going as a company. And in extension to the previous participants' call, you know, what... We would like to see is, so what is your vision over the next sort of two, three, four years for your top line, for bottom line, what is your go-to market strategy in terms of, I think there was an interview you did a few weeks ago saying that we are going to scale up our retail presence, right? So then what are we looking at in terms of retail touch points, Oneida branded, non-Oneida branded? You know, what are the costs we incur in scaling up retail, maybe marketing expenses, as far as manufacturing is concerned, what are we doing in-sourced, what are we doing outsourced, are we doing B2B, B2C, just a, you know, a broad outline or sort of a target if you can give, maybe not on this call, but if it's something you can keep in mind to present a sort of, you know, presentation, what our view is for the medium term, it would be really useful for us to. So, if you can answer any of this now, or maybe in the near future, that would be really useful for us.

Thanks, Vikram. I think what I would like to do is quickly take you through some of the key strategic aspects of our transformation journey as we move forward. And I'd like to focus on go-to-market. So, you know, go-to-market is absolutely essential and key when we try and scale up to make the brand reach more consumers and also to serve the consumers in a manner that makes them happy and delighted. So, from a retail execution perspective, we have two clear objectives. One is to expand our reach, and we are looking at really doubling our reach in the next six to 12 months. That's clearly one of our objectives. And the other objective is achieve retail excellence in a select set of outlets, and we have an internal target for us between 800 to 1,000 outlets by the end of this financial year, where we achieve retail excellence in terms of displays And the way in which... We are able to use or leverage conversion through those stores, through our presence. That's our challenging retail go-to-market strategy. We are going to be present in both offline and online, consumers are present in online as well and we would like to be fully present in online channels as well. So it's going to be a mix of online and offline and superior execution in a select set of retail outlets, which is what is going to drive extraction, which we believe is key as we transition away from more of a push brand to more of a balance between pull and push.

So, noted that there is, I guess you have something, you have probably something in the house, but if you all can share that, you know, in terms of which market, what will drive televisions, washing machines, if you spoke of adding some new products, if you can share some of those details, if not now in the future, that would be very useful, I think. I think you are not sharing more detail now, but if you can, in the near future, it will be very useful.

Thank you. We will definitely do that, Vikram. At the moment, what we can say is that, look, we have three core categories, as I mentioned in my initial remarks, televisions, air conditioners and washing machines. Our first focus is to make sure that we strengthen them, we strengthen the line-up, we bring in more innovation to all these three categories in the next six to 12 months so that we can outperform the market in all of these three categories. And And simultaneously, we are also looking at, as we strengthen these categories, as we get into more and more retail outlets and execution there, and also work on the brand, which are the other categories which we can enter into. So that's something which is slightly more mid to long term. And as you rightly said, once we have more clarity, we will obviously share that.

Okay, I appreciate it. Thank you. All the best.

Thank you.

Thank you. A reminder to all the participants that you may press star and 1 to ask a question. Next question comes from the line of Haider Kachwala with YSIL. Please follow me.

Good afternoon, sir. Am I audible? Yes, you are. Yes, sir. Thank you for this opportunity. Sir, I would just like to ask for your segment mix. So if you could give me the contribution of each of the core categories to the top line.

So, as we said, actually, we are in three categories either. So, AC, washing machine, and LED TV. And if I look from the contribution perspective, AC being a seasonal in quarter one, contributing a significant amount to our overall revenue, and followed by LED and then by the washing machine. Washing machine is still in a low single digit. But as we move forward, probably we are expecting to start contributing hand sampling to oral contribution.

Sir, but if you could just quantify, maybe AC was like around 40% this quarter or something like that, if you could just quantify into numbers.

So, as I said, AC being seasonal, it's contributing around 60% to the oral turnover, followed by LED, which is almost, you can say, about 25 to 30%. Thank you.

Sir, also, if you could comment on the channel mix, so how much percent of sales is coming from online channels, how much is coming from offline channels?

So, Haydar, we are just expanding what Mr. Gunjan rightly said a few minutes back on the distribution. So, I would say that currently market is for us to expand, and we are not so closely tracking the offline and online, but on a macro basis, offline is still contributing good amount of contribution to our revenue, and online is taking care of what we need to do to be a part of the presence over there.

Right, understood. So, also, last question from my side. So, we have seen the transition of Onida going from a premium brand to more of a value premium brand. And if you have seen this quarter, it's very hard for maybe a value premium brand to pass on input costs to customers. So, I would just like to understand the strategy of balancing maybe a growing market share and growing top line with also passing on prices to customers. So, balancing margins with top line, basically.

Yeah, I think it's a very interesting question, Haider, and I think that's precisely at the core of our strategy. As you rightly said, Onida probably is at a value level now, and our entire strategy is based around how do we position Onida as an affordable premium brand, an aspirational Indian brand, but affordable, and that's the work which we have to put in in the next. Two, three, four years, and that will obviously happen through the innovation we bring to the table across our core categories to start with, and then maybe some new categories which we might enter later on. So, right now, it's a work in process.

Best of luck, sir.

Thank you very much.

Thank you. Next question comes from the line of Kushal Kasliwal with InVid Research. Please go ahead.

Hi, thank you for taking my question. Gunjan, sir, it would be really nice if you could give some examples around what kind of innovations are we trying to place our brand, you know, in the right categories, wherein, you know, just the previous participant, you were answering that, you know, we would balance our top-line growth along with some So, maintaining, let's say, healthy margins. This quarter, I am seeing your gross margins increase by about 100 basis points. So, maybe if you can give some examples on what is happening on ground when you talk that we will do innovation in our product category, what do you actually mean by it? Are you looking or tracking competition and then placing your products accordingly in some price range or are we delivering some? Incremental utility cases for our appliances. If you give some example, it will be really helpful.

At the crux of our strategy as I already enumerated, at this point in time, we are still in close connection with a lot of our consumers across different regions to understand what are the current pain points which we should be able to tackle. So, very difficult to give you at this point in time exact examples. I think as we move forward in the next three to four months, Some of those examples will come forward or will be visible in the manner in which we are able to execute them on the ground. I think what is important at this point in time for us is as we move towards finding out, you know, the differentiating aspects which will stand us apart. We are currently focusing on getting our execution right in terms of, as I mentioned, retail reach as well as retail execution, because we do believe that our products, as they are, already have lots of features and benefits which are quite useful and relevant to consumers in India, and we are trying to, at this point in time, highlight that. And so, for example, you know, in cooling, in air conditioners, we are really talking about our powerful cooling, you know, and we have very, you know, some really standout features which deliver that. Similarly, in televisions, we're talking about our superior sound, so the entire cinematic experience which we deliver as UNIDA TVs. So these are some examples which I would say are very early stage. We are trying to find more and more differentiating factors.

Understood. So, my next question is more on the financial front. Just, you know, from my understanding, what I'm getting is, you know, financially, we'll probably focus more on expansion of our, you know, distributor network. So, firstly, I think we will focus more on, you know, maybe maintaining market share, increasing market share, increasing, you know, top-line growth, and there will be a lag when it comes to actual EBITDA or bottom-line performance because the investments in that channel or investments in innovation will be... You know, front-loaded. Is this a correct understanding?

So, Khushal, it will be, we would say that when Mr. Gunjan rightly pointed out earlier that we'll be focusing upon our expansion, reach, and market share and market growth, but we'll definitely keep close eye on the expenditure also or the investments we are going to do on this kind of leverage. Having said that, yes, initial investments will take or the results will take some time when we do carry out the investments, but there will be a completely calibrated approach. Towards the investments as well as protecting or I would say protecting our bottom line, what we are looking for it. But having said that, you rightly on pointing out in terms of the yields will come later on. But as a financial and complete discipline way of execution, we will maintain or we will like to have balance between the growth as well as on the bottom line.

So thank you for taking my questions.

Thank you. Next question comes to the line of Hardik Cheda with Lark. Please go ahead.

Sir, in the previous AGM, you had highlighted about going into the possibility of contract manufacturing. So, is the company considering going into contract manufacturing for any product, and what is the update on that?

Contract manufacturing was one of the options for us at that point of time. However, since we are seeing the growth coming to us based upon the investments and the GTM what we have, probably we will put this as a second pecking order. We will first focus upon our own production and the manufacturing capability what we have in terms of few of the product categories.

Okay, okay.

And, yeah. Sorry, just to add, our branded business will remain our focus.

So, focus will be on the branded business now. Okay. Okay. And, sir, I joined the call late. Can you give a broad revenue guideline? What kind of revenue you are targeting for this year? And where we could see a meaningful margin expansion? Like, I understand the companies on the turnaround phase. We have had a new leadership. And, sir, highlighted in the AGM speech also that in the next two years, our revenue and profit will go up multiflow. So, could you just give the broad timeline?

Are you guidance?

Yeah.

Hardik, in fact, although you joined late, but we have not in my earlier question answer, we have given any forward-looking statement or a guidance because Hardik, you have to understand, we are looking for a complete turnaround, and that comes in a phase manner, it takes a longer time. But having said that, the first tick mark on this is to see a revenue growth, which we were struggling for the last almost four to five quarters. So, we brought this into a current year direction or a kind of strategy as to move forward, and what we are expecting is this momentum to continue as we move forward, which will also give us scale, which will also help us in improving our bottom line from where we are currently.

Okay. I appreciate, sir, you can't give a forward-looking idea, is that? Okay. But can you at least give a timeline, let's say, one year, two year, three year, six quarters, eight quarters? And from where we can see the real fruits of the turnaround, means how many quarters, I understand it's not a one quarter, two quarter, but at least six, eight, ten, how much quarters down the line can we see a substantial growth picking up, at least some broad guidelines on that.

So, Hardik Bhai, on a lighter side, you guys are analyzing consumer appliances much closer than any one of us. And you appreciate that the competitiveness and the kind of price intensity which is playing in the ground currently. It will be extremely difficult, Harjik Bhai, to give you any timelines. But as I said, the moment we reach to a scale, and I don't want to name it the scale right now or give any overlooking statement, but probably once you reach to a scale, then it starts getting into the bottom line in a positive manner.

Okay, great. Okay. And, sir, any new products that we are planning to launch or substantial value addition where we can see a substantial boost? Any changes in the product line or will push the current product line only?

So, we are strengthening the existing product lines, Harbibai. So, in television, for example, we have just launched a 100-inch mini-LED TV that's going to go to the market as we speak. Get us into the largest screen sizes, strengthen our position there, and bring us into the affordable premium strategy which I just spoke about. Similarly, we are strengthening our offerings in washing machines, both in semi-automatic and also in fully automatic top load washing machines. So, going forward, during this Diwali, we will have a much stronger range in washing machines than what we have currently.

Okay. And, sir, earlier we also highlighted that we may consider some kind of a JV for compressors, or we may manufacture themselves. Are there any plans with regards to the compressor, manufacturing, or JV, or anything of that sort?

Not currently, Hardik, because the scale and all will doesn't give a clear advantage to us at this stage.

Okay, okay. So, basically, just to understand, right now, the focus is to grow the top line and turn around with the current products that we have. We are not looking at any significant deviation from the current business line as of now. Is my understanding correct, sir?

Yes, Adi. As I said, focus will be on three key categories, AC, LED, and washing machine. And there is enough market for us to grow and make our presence relevant to the market share.

Okay. Got it, sir. Got it. Really appreciate your time, sir. Really appreciate it. Thank you. Thank you very much.

Thank you. Next question comes from the line of Ankur Gulati with Genuity. Please go ahead.

Yeah, you said you can't guide, but at what revenue will you guys break even at level if you can give us some flavor?

So, again, Ankur, it depends upon how I will be able to pass on my input cost to the end consumers, competitiveness in the market. The market share and the GTM in which we are making a lot of investments currently in our upfront manner, I would say that from where we are currently, probably another 30% increase, probably we should give somewhere headway into, you know, started contributing handsomely to the bottom line.

30% from the current.

Yeah, approximately, because as I said, market is so evolving and so dynamic. Every day we are getting some further input cost increase. And you cannot go to the market with frequent changes on a pricing, right? It requires some kind of stabilization, which means the quarter in which I'm able to realize in a better manner, you'll find something more or impact being lower on the bottom line. And somewhere we have to calibrate as we move forward, given the strategy and other things being adopted by brand as well as in the competition.

The current existing GTMD and e-com, is that channel, I mean, if you can help us, how many SKUs in the last one quarter you guys have been placed, and how will the existing channel continue to sweat out?

So I would say that still our offline is contributing to a larger part of the turnover. The e-com still remains in a high single digit. Having said that, over a previous year, we have seen a good amount of growth coming to the online channel. And as we move forward, we will have strategy for both online and offline to make sure that we remain or we have regarned our 11 market share at both the channels without having any channel complete as such.

I'm trying to understand, sir, that let's say you today have five SQUs in each store. If you take it to seven, that alone should be able to get to you that 30% growth, right?

So SQUs, again, Ankur Bhai, SQU may not be as relevant. What is more relevant is how it's been perceived by the consumers and how I'm carrying out the extraction from the relevant quarter. So, we are relevant to the consumers. Number of the SQs may go high, but are they offering a different figures required by the consumers? That would be more focused area, and that would be more relevant for us to be partnered with both online and offline, and get maximum extraction out of it.

Fair enough. And last question, you said 30% higher, so around 900.

This is a ballpark number, which I said, Angkor, and as I said, this thing moves. This goalpost may keep a move or upward or downward as things stabilize.

Okay, fair enough. Thanks. All the best.

The question comes from the line of Vikram Damani with Damani Family Office. Please go ahead.

Hi, thanks for giving me another chance. So what is our current net and gross debt or cash on hand and what's the outlook on that? And secondly, I recall reading about y'all stripping away some non-core assets. I think you're in the area office, you're talking about redevelopment, the WADA land and plant. So, anything you can share on that, on selling on non-core assets and generating cash?

Vikram, if I look from the debt side, I would say as of June, on a fund-based limit, we are almost not utilized any such amount since we had equity infusion to take care of some of the pressing nets. As far as my cash in hand is concerned, we do have some investments Thank you. Thank you.

Thank you. Next question comes from the line of Umesh Markar with Sushil Financial Services.

Thank you for the opportunity. I would like to know how many touchpoints do you have right now, and also if you can provide us as to whether you are present in all the states, certain segment of a country, and what are your plans going forward to expand those? That would be helpful. Thanks.

So, um... Our presence currently, I mean, we have an estimate, Umesh, because we do go through both the distributor channel and direct dealer network. And as you can understand, through distributors, we reach a large number of sub-dealers, you know, the smaller retailers who we serve through distributors. Our estimate is that through the distributor channel and through the direct dealer channel, we would be reaching close to 4,000 plus stores at this point in time across the country. But this is an estimate. And in terms of geographical presence, we are present more or less across the country with some gaps, but our presence is stronger in tier two and tier three markets. And we have a stronger presence in certain states like Gujarat, Punjab, Tamil Nadu, Maharashtra, West Bengal, etc. But as I mentioned already earlier, our intention in the next six to 12 months is to really expand our reach. And make sure that we are present well across all the states in India.

And as far as the margin goes, if you compare online versus offline, where is the scope of margin higher, and what are your plans going forward, whether you'll be focusing more on selling by stores or by online, and what is the proportion right now?

I think Manish already mentioned earlier, most of our revenue is currently coming from offline channel and online is a high single digit. We do believe that online contributes more from a market perspective and therefore we are looking at strengthening our presence in online and as well as in offline because we have many markets where we still have gaps. So, because we are currently under-penetrated from a reach perspective in both online and offline, our intention is to strongly improve in both areas and make sure that consumers in both the channels get the complete range and experience of what Oneida has to offer.

Thank you very much, and wish you all the best.

Vikram, when you asked this question about the debt, I have said about we have not utilized our cash rate limits, but we do have a borrowing balance sheet around 38 odd crores, which means the having the repayment schedule over the next 18 months.

Question comes from the line of Kaushik, an individual master. Please cover it. Mr. Kaushik, there's an echo that is coming from your line. Can you just manage that, please?

My question is to Manojji. You were earlier part of Unida and moved to Volta's, and Volta's has achieved greater rights and is a market leader. What are the main things for Unida now that it can give competition to major players in the market?

You know, all companies have a different way of working, the strategies to cope, but what remains unique is in terms of how you approach the market, how you be relevant to the consumers, and how you launch or come out with the product. And if I look from the UNIDA perspective, I would say for UNIDA, the ground is, I would say, very big to play for us. And if things goes well, we can have six Sixers coming in six bowl in over, and that's what I would see in terms of the growth opportunities ahead of Wanda.

And one more question to Gungan. Could you walk us through the timeline you are expecting for asset monetization? In your base case, how much cash do you expect to generate from the monetization? How do you see the cash being deployed?

As I said, Kaushik, we are currently, in terms of, on a balance sheet side, adequately, I would say, slightly stressed, but adequately measured, and we will definitely keep close watch on it in terms of the borrowings and the investments what we have in our hand, including the asset monetization, which is not currently on the table, considering the liquidity what we have at this stage.

Yeah, one last thing, like, it's a sincere request from our investor community, like, if you don't guide on numbers to investors, it's uncertainly, we just need a vision for an investor that you are carrying for five years, because I think your results are linked to the revenue.

So that itself gives the confidence to the stakeholders that if the employees' schemes are in the game. We will not leave any stone unturned to get to the targets what we kept. And the first tick mark on this is the revenue growth which you are seeing for the quarter one.

Thank you for doing the first call, and it truly gets our investor confidence in the company.

The question comes from the line of Surya Prakash, Heda, an individual immunosupportable Namaskar.

Good morning, everyone. Yes, I am a shareholder of this company in the past 20 years. I thought it would be a number one brand for Elia, but there is no such thing. There is no such thing. Now, the media reported that you have to do a big deal. Is it true?

I am talking about Manish. I have just told you that there is no plan to close the WADA. We have scaled a little bit of production to align with the strategy that we have. And the plant is still on much presence there. And if there is a need for the future, we will definitely go on stream. As you saw before, it will also function.

You can see.

The next question comes from the line of Piyush Khotadi, an individual investor. Please cover it.

Hello. Hi, sir. Thank you for your time and opportunity. Sir, I wanted to ask about the complete application for PLI. Is the project still live? This is my first question. Second was regarding WADA facility, which you already answered, and third one is about institutional cooling. So, do we have any contracts in hand or are we in active discussion with the real estate developers for institutions?

I will answer the last question first and then hand it over to Manish. So in terms of institutional business, we have started, we are looking at that particular channel quite actively now. We did not have that vertical with us earlier, but we have set that up and we currently have a few good inquiries and this would become one of our key pillars going forward.

Okay.

And Wada replied, in terms of the PLI, from the government perspective, it is still on, and it is for the components manufacturing which they have expanded. As far as our participations are concerned, we are not currently actively looking into this. Rather, we work with our OEM and the ODM partners to leverage upon the same.

Okay, sir. Let's use the clarity. And, sir, just to clarify once more on the WADA facility, it is being widely reported in media that it will be shut down and it will be used as logistics hub. So, I am taking it that you have clarified that it will not be shut down and it will not be used as logistics hub.

So, Piyush, the area of WADA is very large, I would say, in terms of the operation. As you know, we were initially or we were earlier doing some kind of contract manufacturing as well, and currently we are, as Mr. Munjanji rightly said few minutes before, that we are now focusing more on brand. And so I would say that considering the area and place at Vada, we can evaluate the optimum utilization of the space rather leaving the space idle, yielding anything or yielding nothing out of that. So that will be the focus or would be the thought process. However, having said that, any call in this regard or the option to be evoluted will be taken, not in the, I would say, it will take some time to move into on this. But it will not be so immediate, I would say, in other words.

Got it, sir. Thank you so much, sir. Very well. And best of luck.

Thank you. Next question comes from the line of Yeshwan, an individual investor. Please come in.

Thank you for giving this opportunity. And I have a few questions. Please bear with me if it's fine with you. So how frequent are we planning these conference calls and investor PPTs will help us for us to go back in the timeline for future as well? And when are we trying to cash in for the new products for our upcoming Dasara sale where all of India will wait for those things? This is a three-part question. Sorry, I'll ask one more question as well. So, for any company's reputation, right, service is utmost important. And we all know one very big EV player in India, how they are lagging behind with the service, and it's impacting their brand reputation. And since we are getting to start from scratch again, right, what are the different SLAs that we are planning to? Thank you very much.

Yeswanji, you asked about the frequency of the investor interactions. We would like to have it on part of our quarter results to get into it. Having said that, that doesn't limit us. If any investors would like to have further insights or to interact even in the interim peer before the silent peer kicks in, the coordinates for the same will be provided. So there will not be any concern or will not be any limitation on that front. Having said on the investor PPTA side, yes, that also will be forming part of it as we move forward. We initiated this investor call and from the quarter two onwards, you find that it will have a brief PPTA as well, highlighting about the quarter two performance as well as some of the key things on which we are working upon. As far as the products are concerned, rightly said by a few minutes back that we have come out with a 100-inch LED. This is to, as we speak, it will go to the market. This is to cater to a festival-lit kind of quarters or the period in which we are entering into. Along with the LED, there are something to be there in each of the product categories as a new launch, and that will be across and to take care of our seasonal requirements.

And regarding your question on customer service, I think that is a very important point and it's the backbone of our… Improvement or transformation journey, for that matter, for any consumer durable brand. So, we are really, really, very serious. We really want to not just be at the benchmark level, but also be excellent in the eyes of consumers. We are focusing on two or three key areas. One is on, you know, in terms of quality of service, quality of manpower, training, competency, etc. That is something which we are very much focused on so that the experience which any UNIDA consumer gets when a service technician from UNIDA lands up is of the best quality. Secondly, we are also working on our infrastructure, both logistic infrastructure as well as our spare part related infrastructure and management so that we are able to get most of our repair work first time right. So, these are the areas that we are really very much focused upon and improvements are taking place to improve both these areas.

So, to add a point to what Mr. Gunjan said, the kind of investments which you are doing on the marketing and the GTM strategy, a good amount of investment is also flowing for the service improvement.

So, my next question is on the channel partners, right? As we all know, the online marketplace is also very important for a brand to grow as well, because an indirect marketing will also happen through neighbors and everything. We all know that. Businesses, right? The integration of our products with existing smartphone support. Since we are planning to, what do you say, value premiumize our product, right? So are we planning to include the smartphone support as well? Because I'm not sure in the 100-inch Oneida TV, is it already planned? Or in the future products, we are planning that as well. For example, for the EAC as well, there are very few players who offer heater and air purifier as well along with the EAC. So are we planning to have a mixed kind of products or what is the strategy going forward?

So, you know, you're obviously pointing out some key consumer gaps or consumer needs, which we need to have in our key product categories, and that's exactly what I mentioned earlier, that we are basically reaching out to all our key consumers across, you know, not just in one area, but in north, south, east, and west, and in largely in tier two, tier three cities as well, because that's where we have more of our core consumers there. And once we get... Complete clarity on what are the key features which we really want to or consumers expect from us, that is what exactly we will deliver. And if that happens to be air purification along with air conditioning, then we will deliver that. But the decision on which features, which benefits, which USP to work upon, we are basically going to the consumers and trying to find out from them. It will be an ongoing process. It will be an ongoing process. It just won't be a one-time exercise. It is going to be an ongoing process for us in Oneida. Thank you.

Thank you. That instills the confidence. Anupam, manufacturing side, I think you mentioned that I think we are designing as well as... So I just want to understand a little bit, step down further. So along with designing and assembling, are we really backward integrated? Or if we are sourcing the products, is it actually within the India, are we Chinese dependent? Or how is the bill of materials in-house versus actually import? I just want to understand in that perspective.

Yeshwant, in fact, as far as the import is concerned, it's largely been minimized considering the QCO and the other timelines or the other regulation to which the brand has to adhere to. As far as the value chain is concerned, as I said, currently we are largely working with our ODMs and OEMs in order to take care of our innovations and the product what we have. As the scale reaches to a reasonable level, probably we will start looking into various other things or the avenues which we have in our hand.

Thank you. Next question comes from the line of Aditya Javar with Javar Investments. Please go ahead.

Thanks for the follow-up. Great insights. We got through this conference call. Really appreciate conducting it after completing, I mean, roughly 150 or 120 odd days. So great governance. Keep that up. So my question is, now what I understood is, basically we are fitting it all in place for this year. And Diwali is also nearby. You also talked about changing the brand perception of the Onida to the people. So still, we have not seen that happening, I mean, to the end consumers, and Diwali is nearby. So that's my first question to you. What are the timelines we can expect Onida rewired or Onida branding that will be visible to end users? And nextly, I have a question. If we want to rebrand and we want to spend on marketing, do we have the capital enough to go out there and express ourselves? Or we also would require a much little bigger funding so that we can go out there and express very openly so that we don't lack on the funds and miss out on the opportunity because each and every year there is a market share gained by the other players. So, these two are questions. Another question I have, lastly, with Maniji. So, Maniji is having a lot of experience in scaling up the voltage, as another participant said, which is rightly. How the role of working capital and what are his key focus areas going forward for this year and next year? That's all.

So, Aritya Ji, for any business, the discipline or efficient working capital plays a larger role. And if I look from the Oneida perspective, as I said, our balance sheet is currently slightly stressed, I would say. But as we move forward, I am expecting that those things to get improved. And if I look from the discipline and the kind of parameters perspective. As far as investment is concerned, we are not looking for a very much aggressive investment to carry out in any of the product category as such. Some small investments in tooling and the modules will be carried out, and that will be financed largely through internally, since I am not seeing any kind of concern on that front. As far as working capital, as I mentioned earlier, as of June, we have small borrowings on our balance sheet. We do not have any CC limits, although sanctioned by the banks being utilised. We do have some investments parked in the mutual fund for our near working capital requirement. So, if I look from the current 3 to 6 months time frame, I am not seeing any pressing need as such. Having said that, if I look from a future perspective for the down-the-line 12-15 months time frame, I am sure the moment we have those revenue momentum and my bottom line starts improving it, the avenues to finance and to strengthen our balance sheet will improve and we will not have as such any challenges to navigate those kind of investments.

Can you also flat by working capital days you are comfortable with so that we don't So,

I would say, Aditya Ji, net working capital in terms of number of days, anything less than 30. Will always be a good benchmark to have it. However, we all know consumer electronics works on a various seasonality factor. So it may remain slightly above during the season time. But generally, if I take on an average for the entire year, somewhere between 30 to 45 networking capital days should be a good benchmark to at least, you know, to be there.

Thank you. Ladies and gentlemen, due to time constraints, we have reached the end of question and answer session. I now hand the conference over to Mr. Kunjan Srivastava for closing comments.

On behalf of the entire Oneida Electronics team, I would like to thank our shareholders, customers, employees, business partners, and all our stakeholders for their continued trust and confidence. We remain committed to executing our strategy with discipline, driving continuous innovation, and creating sustainable long-term value for all our stakeholders. We appreciate your continued interest in Oneida and look forward to engaging with you again next quarter. Should you have any further questions or require any additional information, please feel free to get in touch with us or reach out to our investor relations advisors, Concept PR. Thank you once again for joining us today. Have a great day.

Thank you. On behalf of Onida Electronics Limited, that concludes this conference. Thank you for joining us. You may now disconnect your lines.