Supreme Industries Limited (SUPREMEIND) Q1 2027 Earnings Call Transcript

Ladies and gentlemen, good day and welcome to the Supreme Industries Q1FI 27 Earnings Conference Call hosted by TAM Capital Advisors Limited. 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 conscience call, please signal an operator by pressing star 10-0 on your touchstone phone. Please note that this conscience has been recorded. I now hand the conscience over to Mr. Anifa Ferrandez. Thank you, and over to you, ma'am.

Thank you, Anushka. Good evening, everyone, and welcome to Supreme Industries Q1 FY27 post-earnings conference call. Joining us today from the company's senior management team are Mr. M.P. Taparia, Chairman and Managing Director, Mr. P.C. Sumani, Chief Financial Officer, and Mr. R.J. Sabu, Vice President, Corporate Affairs and Company Secretary. I would now like to hand the call over to Mr. Paria for his opening remarks. Over to you, sir.

Thank you very much. I am M.P. Dapariya, chairman and managing director of the Supreme Industry Limited. I, along with my colleague, C.P.C. Swamani, CFO, and C.R.J. Sabu, vice president, corporate affairs and company secretary. Welcome all the participants who are participating in the discussion of the unordinated stand-alone and consolidated financial results for the quarter ended 30 June 2026. The stand-alone results and the consolidated results are already with you. I will give a brief on company's product operating performance and other highlights. The company sold 1,057,536 tons of plastic goods and achieved revenue from operation of Rs. 2,718 crores during the first quarter of the current year against sales of 1,83,796 tons. and revenue of 2,609 crores in the corresponding quantity of previous year, resulting volume degrowth of around 14% and revenue growth of 4% respectively. The stand-alone uploading profit and profit aftertakes during the period under review Amounted to Rs. 398 crore and Rs. 208 crore as compared to Rs. 319 crore and Rs. 177 crore during the corresponding quarter of the previous year, achieving an increase of 25% and 17% respectively. The business scenario of all the product segment of the company for the quarter ended 30 June 2026. as compared to the corresponding quarter of the previous year has been aged under. Plastic piping system business grew by 15% in volume and remained at fresh level in value term. Packaging product segment grew by 10% in volume and grew by 9% in value term. Industrial product segment business grew by 6% in volume, And grew by 24% in value term. Pengema product segment business grew by 22% in volume and 11% in value term. The overall turnover of value added product increased to Rs. 1,142 crore during the current quarter, as compared to 933 crore in the corresponding quarter of previous year, achieving a growth of 22%. Business outlook. The first quarter of fiscal year 2007 was impacted by extraordinary volatility in polymer prices, particularly during April 2026, resulted in inventory correction across the value chain and temporarily affected industry demand. While this created short-term challenges, the underlying demand driver for our business remained intact. With polymer prices now stabilizing, the removal of custom duty exemption, and implementation of minimum import price for suspension with PEC regime, we expect with this condition to progressively improve, as channel inventory is normalized, and market sentiment is strengthened. India continues to offer Significant long-term growth opportunity, supported by infrastructure development, urbanization, water management projects, housing and expansion of their distribution network, supreme a great position to benefit from this trend through its diversity wide portfolio, its strong brand, extensive distribution network, and continuous focus on innovation. We continue to strengthen our growth platform to capacity expansion and new product introduction. The successful integration of the Wawin business, expansion of piping portfolio, growing operationally composite cylinder, protective packaging and packaging products, industrial and material handling products, and the launch of UPVC window business further enhance our long-term growth prospect. The company continues to invest in capacity expansion across key businesses and is progressing with plans to establish manufacturing facilities at new locations including Bihar, Jammu, and Madhampur, New York, Warrior. The company is also in the process of acquiring additional land at Parnichari and Erode and will create additional manufacturing spectrum. Supreme maintain robust financial position. In the company to fund the growth plan, capital expenditure, and working capital requirement through internal accrual. While the first quarter reflected temporary industry advance, we remain optimistic about the outlook for the balance of the year and confident in our ability to capitalize on the opportunity ahead. A brief and overall summary for the quarter ended in the reference. Thank you for your presence now. Now, I and my colleague, Sri Pishi Swamani and Sri Arjay Sabu, are available to reply to various queries led by all of you. Thank you very much.

Thank you very much. We will now begin the question and answer session.

Anyone who wishes to ask a question may press star and 1 on 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.

Before we proceed,

I would like to request participants, please limit your questions to two per participants in order to ensure that the management is able to address from all the participants. We take the first question from the line of Keshav Lahoti from HDFC Securities. Please proceed.

Hi, thank you for the opportunity. As you indicated in call, you know, the underlying demand is probably doing fine. It was more about, you know, channel inventory impacting the volume growth. So, can you get more color about, you know, plumbing and agri? Possibly agri season was also used because of monsoon and fertilizer. And secondly, what is the guidance for this year for the volume growth and margin?

Agri growth was definitely affected in the April-June, to April prices dropped so steeply that farmers were very puzzled when to start buying. Now the season, April-May, June is over. Now the next demand will start from the middle of September, and we believe that as the water reservoirs are filling up, the demand will be quite robust in the remaining part of the year agri growth segment.

Sir, I have also asked, what is the volume growth and margin guidance for this year?

Volume growth, we have told in a month of April only, that we anticipate a volume growth of 15 to 17 percent in 5-2 division and 12 to 13 percent overall for the company. We have maintained the same volume growth guidance.

Do this guidance, do you still maintain the guidance for the entire year or the balance nine months you're talking? The reason I'm asking is because, you know, the first two months has been to take it out.

We are tracking for the whole year.

Understood. Got it. Thank you. Thank you.

Thank you. We take the next question from the line of Sneha from Novama. Please proceed.

Hi, good evening, sir, and thanks a lot for the opportunity. Just a couple of questions for mine. What would have been the industry-related decline in terms of quarter one volume? Just wanted to gauge this 15% higher than the industry volume decline.

What's right?

Industry decline.

The whole industry decline. Industry decline.

Yes, for quarter one.

No, quarter one, I think the whole country decline. I mean, plastic, all plastic has already degrowth. Because it was very uncertain, prices were dropping, from the high price of the March month, the prices started getting corrected. So, the whole pipeline, the whole industry must have gone into investigation mode.

Understood, but do we have any numbers here, that it must be an 8% drop or a 9% drop with industry, right? That would be helpful in case we have that.

No idea, no idea. Nowadays, input data also doesn't come easily. So, we have no idea.

Sir, secondly, we wanted to understand that if input

data can help you, please.

Sure. Sure. Secondly, we just wanted to understand the impact of the recently imposed MIP. Where are the PVC prices currently standing at? And what are the inventory levels with the distributors? What sort of a reaction are you seeing after this MIP coming up, both in terms of PVC pricing as well as the restocking part?

The inventory level must have gone down quite steeply in the first quarter. We are seeing demand is coming a big way in this quarter. So now they are filling up the inventory back. To run in the business, they have to have adequate inventory.

Do you mean to say you are seeing the restocking happening at this point of time and on PVC pricing, so?

PVC price has also gone up recently by 9 rupees a kilo.

So, thirdly, on the margins front, we've seen a phenomenal jump in margins. Could we say that there could be a part of inventory gains also in this particular quarter? Have there been any inventory gain? And if there is, can we quantify it?

This quarter, the profit has been higher because when we were such a big degrowth in demand, it was mostly in the piping segment, where the margins are lower. Only piping, only pipes. So, there was big erosion in volume and turnover in plastic pipe, and plastic pipe was a low-margin business, and because of that, our overall margin is showing butter in this first quarter.

I'm Mr. Joseph. Sir, I'll get back in love with you. Thanks for all the best.

Thank you. We take the next question from the line of Shravan Shah from Dalit Capital. Please proceed.

Hi, thank you, sir. Sir, again, coming back on the volume growth guidance front, two, three things to understand. First, when we are saying that still we are maintaining 15-17% piping volume growth for 27, that means in the next three months, we need to do at least 25% kind of growth. So, in that sense, if you can help us, at least in July, are we seeing that kind of a growth and broadly in Q2, how we can see the growth and will it be the largely the growth would be in the second half where if the Q2 will not be that great, maybe the second half we need to do a maybe a 30% plus kind of a growth.

I don't know, we believe there will be good growth in the second quarter also, and July is only one month of the three months, we are seeing excellent growth in the month of July, and we believe the growth will be quite good in the second quarter, which we will know in the month of...

Yeah, so in this current month also, we are seeing a significant growth. So, a channel inventory is this, one can say again, is this filling up.

You have to fill up, otherwise how can you do business?

Yeah, no, no, true, true. So that's what I just wanted to understand from your side. Secondly, in the Q1, this 15-16% degrowth, this is across three months, April, May, June, or will it be more in April and May and June we would have seen a kind of a flattest growth broadly, directionally will help?

Which was April only. And may be a small group, July, June has to be a small group, but April was...

Okay, got it. And for EBITDA margin, that 14, 14.5% for FI27, that guidance we are maintaining.

We are maintaining. Thank you.

Yeah, and as you said, this quarter, there is no inventory gain in Q1.

Man, prices are dropping, and how can they be inventory gain? I don't follow.

Yeah, so was there any loss? Because we have maintained a decent margin, that's what I'm asking.

I want you to talk about inventive general speech.

Okay. Okay. Got it. And now do we see the current prices, the PVC prices, which has increased 9 rupees per kg, given the crude also again have fallen, will the current prices will stay? It is because for us, it is becoming a very, very difficult in terms of modeling the numbers because both on the volume and prices, the significant volatility is there. That's what I'm trying to understand. Whether in Q2, can we see a QOQ improvement in PVC prices or a realization for us?

There is nothing difficult for us, nothing difficult. And anyway, dear friend, PVC is not in 100% crude product, 47% chlorine product, which is coming out of caustic soda production. It's not 100% crude product, please.

Okay, and the guidance in terms of the capex for full layer, a thousand watt crore, we are maintaining that?

We are maintaining, yes.

And in Q1, how much we would have done on the CapEx front?

Yeah, committing the money depends on the machine arrival. We have committed up in now 500 crore.

Okay, Q1, we have already done 500 odd crore.

Committed, committed, investment, yeah, please. Okay, okay. Then payments are made.

Okay, and in terms of the working capital, Sorry to interrupt, Mr. Shavar. No issues, no issues. Thank you, thank you, sir.

Thank you. It is a reminder to the participants, please limit your questions to two per participant, as there are several people waiting for their turn. We proceed with the next question from the line of Ritesh Shah from Investec Capital. You may proceed.

Yeah, hi, sir. Thanks for the opportunity, sir. Two questions. The first question, sir, three parts. Sir, can you speak more about gas piping, the progress that we have done? Same thing for windows and doors business. And third is basically Indogreen plus three-layer PPR pipes. How big this business can be? Some color over here for this three segments. That's the first question. And, sir, second question, probably I'll take it afterwards after you answer this, please. Thanks.

And if I first question only, as on today, based on the inquiries and planned by so many guest companies, we build a piping business, including piping and poutine, maybe around $600 this year.

Okay.

Yes, sir. 600 crores, I heard that. Big number. Sir, on windows and door business and PPR pipes?

Windows, we have already started. We started marketing. Windows business has only 50,000 in the whole country. We just started only recently. Only 5,000 per year.

Okay.

Spickler pipe is a regular business, this is nothing new. Our company started to supply the farmers. They require our spickler pipe because we are very committed to quality, so they are very happy to have quality.

Okay. Sir, just a follow-up on 600 crore number, what you are indicating for gas piping. Have you already started getting orders over here? I think you had indicated we had some orders from Pune last year.

We have already getting orders, we supplied already.

Sir, any orders from any other city, states that you can detail?

I told you now, we have got the order of the gas pipe system, pipe and heating both, and we have supplied. And customer is very happy.

Okay, perfect. Sir, my second question is, there is a CAG report with respect to G1 mission out for two states. This includes Maharashtra and Karnataka. Sir, have you gone through it? How should we look at the agri-demand specifically which is coming out from the JJM scheme?

What is it? I have not seen the report. What is it? I have no idea.

Okay. No worries, sir. Good. Thank you so much. Thank you. Thank you.

Thank you. We take the next question from the line of Praneet from SK Investments. Please proceed.

Hi, sir. Thank you for the opportunity. So I wanted to understand in terms of the window and profile of that business, how much have we invested so far and what kind of revenues do we expect to generate in the next two to three years?

No, we're interested in two twenty crores, please.

The level of revenue generation of about 350 crore once it is normal utilization.

Okay, and do we expect to go in next two to three years or will it take longer, normal utilization?

Should be, should be. We are going in production and we hope that next year we should get much better utilization capacity. We already started selling in the market.

Sir, and regarding our piping division, sir, I understand this quarter has been a little bit off, but in terms of our CPVC growth, so do you, how are the growth prospects? Does it continue to take share of the overall piping market, or is it like OPVC also taking over? How is it right now?

OPVC, are we increasing our market share?

Yeah, our market share much of going up now. I think so. OPVC, so. OPVC also now getting good acceptance, and we are participating in... We are now getting another machine also for Eastern India, so we are building more capacity also.

Understood, sir. And one more thing regarding the pricing. So, so far, despite having a large brand at 16%. So, in the market, it's been known that there's been a little bit of pride compared to us to compete in the market, sir. So, when are we going to start reducing this competitive intensity and aggressiveness in the market, or do we plan on continuing for the next one to two years?

The pricing of the product depends on the raw materials. The prices get adjusted. If the raw material prices go up, then finished food prices also go up, and correspondingly, we reduce the prices when the raw material prices come down.

And that is an industrial, industry phenomenon.

No, sir, but at least in the dealer network, you're bringing a very aggressive pricing, and despite having a large brand, you're still positioning your pricing is, like, let's say, a little lower than what you can charge. So, in terms of that, I'm trying to understand, do we expect to increase our prices compared to what we can, or we just want to maintain at this level for the next one to two years?

No, no, do you see, to get the better market... We are passing on the benefits, what we are deriving from the economy of scale or the proximity to the market. Since we have an India manufacturing presence, so our logistics course gets rationalized, and that is the benefit to the end customer.

But is there a possibility that we might just not pass it on and increase our margins for this, or do we continue to want to pass it on?

It depends. Right now we are more focused on the internal capital employees. Not for the margin, etc. only. We still want to grow and we are growing.

Got it, sir. So for the next two years, probably we will still continue to maintain our strategy with this, right?

This comes with, and reaching more markets, and now going relatively in export market also. So we hope that we will go and grow in nationally.

Understood. That's what makes it. Thank you for your interest.

Thank you. We take the next question from the line of Praveen Sahai from PL Capital. Please proceed.

Yeah, hi, sir. Sir, related to the capacity expansion, Bihar, Malanpur, and Jammu, what you are, you know, expending. So, can you give the, you know, how much of the capacity addition in these three locations you are taking in?

No, we will do complete the project in this two years. So, we will be building small capacity one after another. So, not a large capacity immediately to put up. All our capacity will come up over a period of two years. We will go on creating market further and go on putting capacity as the market demands. A big piece of land in Bihar is 21 acres, in Jammu is 13 acres. So, hopefully, after two years, it may be more than 50,000 to put the plant together.

Okay, and Malanpur, sir.

Malanpur is a material handling system that is a material handling system that goes large volume. We don't go volume. We do what is required in the market record. We will put the item because they are all bulky items and intensive items.

Okay.

So we are making variety of crates and variety of pellets.

Okay. And lastly, on the Pondicherry and Aeroad also, the land acquisition you are looking for. So, what kind of a product you are going for there?

Pondicherry, we are going to ship for existing factory product which we are making for a whirlpool. And in our existing factory, we are going to put more capacity to make furniture for export market.

Okay.

Okay.

God, it's a thank you. All the best.

Thank you. We take the next question from the line of Rahula Galwal from E.K.K.I. Asset, please proceed.

Yeah, hi, sir. Good evening. Thank you for the opportunity. Sir, one question I had was to understand the customer behavior. I understand that the channel de-stocking happens when prices fall. But in history, whenever such prices fall, you know, we have seen volume de-growth across all four segments. Is this permanent tilt lost or you think there is some pent-up demand which comes back, you know, whenever price is stabilized? In history, if you can just share your experience, sir.

I've been forever. When the prices start moving onwards, then the pent-up demand comes up. That is naturally because the de-stocking which takes place in the channel, so obviously the channel gets normalized when the prices get stabilized.

So, Manuji, so, from the channel perspective, I understand, but more so from, you know, let's say, non-pipe, you know, packaging and industrial segments have also seen volume degrowth. Does this demand also comes back fully into, you know, subsequent time?

In packaging also, you understand, because there are many applications for insulation, for civil, for construction. So, those people may defer demand for a month or two or three. So, yes, in normal costs. Most of them are coming up.

I'm sorry, I'm sorry, I'm sorry, I'm sorry.

Got it, sir. And how does it work in industrial, Ramaniji?

So, industrial is the OEM supplies. So, it all depends upon their end market position.

What is the demand they are getting from their product, what they are offering, air conditioner, any item, what they are offering, their sales, they could use the buy now.

Those are not governed by the robot of prices. You see, LG, it is always cost plus price margins. So, it is not because of the price effect. It is the ultimate demand situation.

Right. So, industrial volume degrowth this quarter is more organic. It's more that their business was not growing and hence we saw degrowth. Is that correct?

Value-wise, if you look at, there's no different value.

Yes, sir, I saw that, yeah. And just last question on export. So could we talk about which products we are talking about for export, which markets to start with, and should we pick up in export growth starting current year itself, or it is more longer term?

No, not only. It is a plan of six, seven-year plan we have made. Last year, we export by $26 million. Overall, we are aiming to reach $150 billion in six to seven years from $26 million. From 26 million, our AMB2D was 150 million dollars in all our product segment in 6 to 7 years ago.

Got it, sir. Which products we are talking about?

All the products except for industrial component.

And which markets?

Markets? World market.

Any particular geography?

Mostly where the government is entering into FTA, all the geography want to cover.

Got it, sir.

Where the government is entering into FTA, FTA is in place, those countries are in cooperation.

Got it, sir. And last question was, Sorry to interrupt, Mr. Rahul.

Could you please join back the queue?

Sure, I will join back. Thank you.

Thank you. Before we proceed, a reminder to the participants, please limit your questions to two per participant. We take the next question from the line of Karan from Guardian Capital Partners. Please proceed.

Hi, thanks for the opportunity. My first question is, what is supreme current capacity and the utilization level for composite cylinders?

Current capacity is about nine leg or ten leg, depending upon the product mix, per annum. Ten leg cylinders? Cylinder. I am telling you nine leg to ten leg cylinders per annum is the current capacity. Utilization all depends upon the domestic oil marketing companies. Currently, it is between 25 to 35 percent.

Understood. And my second question is, recently with HPCL's initiative to sell composite cylinders on Instamart, and BPCL's plan to expand composite cylinder availability to over 100 cities, how do you see the performance of this business segment evolving for us?

There are good opportunities coming up. I think HPCL has just concluded one tender of two late pieces. We have got the LOI for 60,000 pieces. Supply will start from next month onwards. And yes, this initiative is definitely very good and we look forward to the opportunities in this segment.

Do you see utilization ramping up quickly over the next, in the near to medium term?

So unfortunately, it is not a stock and sell item. So the time loss is always lost time. Because you have to manufacture cylinder as per the design, as per the serial number, and many things as per the order. It all depends upon how the order flows take place from the domestic oil marketing companies.

Understood. Understood. Thank you. That's it for me.

Thank you. We take the next question from the line of Disha Chumria from 3Netra Asset Managers. Please proceed.

Thank you very much, everyone.

Yes, please speak loudly.

Yes, sure. Yes, sir. Most of my questions are already answered. Just a question from my friend. What's the current gross margin or EBITDA margin that you expect to stand for the FI 27? Is it going to continue at this level or go back to the historical ranges?

We anticipate between 14 to 14.5%. For the full year.

Okay, 14 and a half percent. And for the FY28 and 29, do you see a margin expansion? We talked to the FY27 only. Okay, sir. Okay. And my second question was, The demand will be in the market, like in the plumbing and agriculture industry, and newer segments like cylindrical compost and packaging. Any specific focus of weakness or strength you have in this quarter, or anything that you look forward to be performing well for the upcoming demand catering, sir?

Your voice is breaking. But generally, we can say our all product segments are doing better and looking for a better demand situation. Majorly, the plastic packing system, which is the biggest business of the company, is looking for 15 to 17 percent volume growth for the full year. In spite of the 15 percent degrowth in volume in the first quarter. So definitely demand in that segment is looking much better. Prices of raw materials are now stabilized or firming up. So, we will see a good situation coming up.

Thank you so much.

Thank you. We take the next question from the light of stages Pradhan from City Group. Please proceed.

Hi, sir. Just on the quarter, if you look at the EBIT margin in the plastic piping segment, on a YOY basis, there is a substantial improvement, right? So, just wanted to understand, you mentioned that there is no inventory gain. So, is this entirely because of mix or some cost benefit we had because of older PVC inventory or some other aspect that I am missing?

As we told you, there was less cell of pipe. Only pipe cell was the volume. Destruction was Muslim pipe. And Pipe was a low margin business. So as the Pipe business was executed, then the remaining margin became better.

Right, right. So from a full year perspective, you would expect the product mix to broadly remain the same. So the benefit that you have in terms of margin could sort of normalize over the full year?

Yeah, we already convinced, you know, actually going to between 14 to 14 and a half percent.

Okay, understood. And secondly, could you share the inventory level at the company as of 30th June?

Inventory level compared to our turnover, we keep to a half-month turnover level. After we have a very large volume of business, we need to keep our proper adequate inventory so that we are responsible supplier to our customers.

Understood. And lastly, on the MIP, that has come for a period of six months. So, from a longer-term basis, do you think this would be extended or some other form of protection could come in? What would be your views on that?

Extension part, you can only take from the Government of India.

Okay. Thanks.

Thank you. We take the next question from the line of Turkish Shokla from Ingrid Capital. Please proceed.

Hello, sir. Thank you for the opportunity. I just wanted to ask, what is the webinar contribution in this quarter, and what is the expectation for the full year?

What we acquired was 70,000 metric ton. We are ramping up also. And the plants are running fully integrated. About 50 to 60% capacity utilization has taken place in the first quarter. And overall company, we look at piping capacity utilization about 70%. So all the plants will

be the same line. And give you 71,000 tons.

So we utilize it for the year 70% of them.

So basically, you are saying on the capacity of 70,000 ton, the utilization is 70%, right, sir?

Yeah, right, sir. Yeah, Michael, are we familiar to our capacity already, sir?

Okay, sir.

What we were making, they were making.

Okay, sir. Thank you. That's all from my side.

Thank you. We take the next question from the line of Utkash from Anandrati. Please proceed.

Yeah, hi, good evening, sir. So my first question is on the 5-segment margin for the June quarter. So if we see our 5-segment debit margin has improved from 8.8% in previous June quarter to 11.4% in this June quarter. So can you please help us understand why the margin has gone up when we have seen a sharp decline in our volume?

Okay, I think the same answer which has been given for the operating margin. It applies for the company. When the low margin product of pipe is reduced from the volume, so naturally the remainder of the business of the piping has better margins.

Okay, so is it because of sharp decline in the agripipe volume, we have seen a good improvement in the margin?

Not only agripipe, other pipes also. Okay. If you come down, they will be destructing by our distributor.

Fine, sir. My second question is on your EBITDA margin guidance. So, like, last year, sir, you were guiding EBITDA margin of 14.5% to 15.5% EBITDA margin, which was quite a difficult year for the industry as PVC resin prices were under significant pressure. And this year, we are guiding 14 to 14.5% for FI27, where if we see like we have already clogged 14.6% EBITDA margin in this June quarter, and margin in Q4 generally turns out to be significantly better for us compared to the first three quarters. And we will also see the benefit of higher PVC resin prices in the coming quarters, which was not the case last year. So, can you please help us understand why we are guiding a much lower margin compared to what we were guiding earlier?

They are not rising in lower margin. The first quarter, the margin is showing improvement because of destruction of demand for plastic pipe. We anticipate when we are saying that we anticipate 15 to 17 percent volume growth. So we will be supplying adequate quantity of plastic pipe now in nearly nine months. There are no margin, but they are required. If there is no pipe, then what is the business of piping system? You cannot do any business, you cannot do any work of the, either for water or energy supply. If there is no pipe, you cannot do any business. Pipes are required. Pipes only for 29 months. Pipes only for 29 months. Pipes only for no margin.

No, sir, your point is well taken. Earlier, we were expecting, say, in FY26, we were expecting the pipe volume to grow at 15% to 20% rate, and we were still guiding a beta margin of 14.5% to 15.5%. So, what I am trying to understand from you, like, why we are guiding 14% to 14.5% beta margin now, when we were expecting much higher range earlier?

We are giving the guidance with a very proper, in a responsible manner. We don't want to give a very wrong roggy picture. No, we don't want to give.

Okay, thanks a lot, sir.

Thank you. We take the next question from the line of Shaili Jain from Dalit Capital. Hi, sir.

Thank you for the opportunity. Could you please provide me the value of inventory, data, and table as on June? Inventory, data, and table.

Thank you very much. The turnover.

And table 2.

Thank you. Thank you so much. Thank you. We take the next question from the line of Nikolaj Shah from ISEC, G-SPASI.

Yeah, hi, sir. Sir, how was the CPC growth in Q1?

Human, they were...

And just so you answer this question, I'm just trying to re-understand. Was this the case that the plumbing business, plumbing pipe business was better off in Q1 and agri degrowth significantly, which led to that 15% kind of volume degrowth in case of pipes total?

No, total business, Agri and Plumbing, both had a degrowth in the first quarter.

Yes sir, Agri was significant degrowth or was it similar, both were similar?

Agri, Plumbing, business, every piping demand, every piping segment had a degrowth in the first quarter.

Sir, you are right. Agri pipe or what? Policene pipe was...

There was severe erosion in the volume in the polythene pipe, but quite very heavy, then in PVC pipe also, there was destruction, there was degrowth in demand.

Yes, sir. And this agri pipe, whatever we lost out because of the, you know, rising, you expect that recovery to come through when the season picks up in September and February. Am I correct, sir?

From 2nd of September to March, demand will grow very nicely.

And sir, with MIP coming in, that fluctuation in PVC, let's assume PVC stays in the same range of 80-85, you think this is very good demand will come from the ugly side because of this. Am I correct, sir?

No, we don't know. MIP may do, nobody stops them to increase the price further now. MIP doesn't mean that they cannot charge high price. The only thing they cannot charge lower than the 7 double C dollar. I pray nobody will stop them. They depend on how the West Asia comes to the scale and nobody knows.

Yes, sir. Thank you very much, sir. Thank you, sir.

Thank you. We take the next question from the line of Ripil Kumar Anupchan Shah from Sumangal Investments. Please proceed.

Hi, sir. What is our agri and non-agri mix, sir?

We have no idea. Because several states, they are using agri pipe for housing also. So we have no idea.

Okay.

And, sir, secondly, since Lubrizol is starting production of

CPVC resin in India, so will our cost come down?

That part, Lubrizol can only reply. How can I reply? Whether they are going to keep lower price, I can't say. For your information, reliance is also coming.

Okay. Okay. Thank you, sir.

Thank you.

Participants, in order to ask a question, you may press star and one on your touchtone telephone.

Participants, in order to ask a question, please press star and 1 on your touchtone telephone. We take the next question from the line of Varun.

From 361 Capital, please proceed.

Yeah, hi, sir. Thank you for the opportunity. I just wanted to understand this sterilization improvement which happened in the other central packaging industrial consumer. So, this entirely was due to the polymer price or was there any kind of? Uh, price, I think we fully passed on the price hike because of the polymer or the cost deviation that we saw.

Yes, so it is only a customized solution. You see, packaging, we provide a lot of customized solutions, which gets better realisation. The industrial segment also, the pellets, dust beads are better value-added products. So the product mix which plays the role.

Yeah, so means, I mean, just want to understand, like, after, say, this quarter, things normalize, and if the polymer prices fall back, so are we going to stick to a similar price, or will it move along with the polymer price only for the other segments? I understand PVC, still a lot of pass-through happens, but for other segments?

So, we don't want to use PVC, we use the polymer also, dear friend. We use large volume of polycellane. We also use polypropylene, polystyrene, ABS, we use very good raw materials. We are not PVC company only.

Yes sir, so in case that declines again that packaging, industry, whatever, pricing, that also will decline simultaneously, that's what I want to understand.

Depends on the product, depends on the product.

Okay, so not to, you know, direct correlation, that's what I am just saying.

Not so, not so much direct.

Thank you. We take the next question from the line of Tejas Pradhan from Citigroup.

Please proceed. I would request Mr. T, just to unmute and then speak.

Sorry, sorry. In terms of the other resins like CPVC, etc., was the pricing volatility and the quantum of restocking, destocking that we saw in through last quarter and this quarter similar or the different sort of intensity?

It happens in all the polymers, all the polymers. Actually, polythene and polypropyl are much more volatile, because the food prices are up and down now, and they are directly linked to crude oil. Only PVC is less affected. PVC is not linked completely to crude oil. So polythene and polypropyl have much more volatility. This is normal. They are commodity polymers now. Right.

But on CPVC, I think you had mentioned there was, I mean, minimal growth. So, were the CPVC prices a lot more stable through the quarter because of which they did not see too much impact of the destocking?

See, prices are morally stable now.

The PVC prices are morally stable. Only PVC prices have come down in the month of April being where. They have jumped in the month of March and in April. Then after the prices are not moving at all too much. After 20th of April or something, then after there is not too much variance in the price.

Oh, okay.

And that went too much in the month of March. And they go to the air train in April.

Right, yeah. And just lastly, obviously, we lost volumes in the first quarter. So from a customer perspective, I know you had mentioned the recovery by September, but would you, given that at least PVC prices are starting to increase and they are anyway slightly close to the MIP level, so we might not expect further decline in PVC prices from here. So, would you expect a lot of it to, the lost volumes to be recovered in the second quarter itself, or it will take time to recover it through the balance of the year?

Of course, the lost volume will be recovered, and we will have growth in first half.

In the first half, you would expect a YOY growth?

First half, we definitely are confident that we will be a volume growth.

Okay, understood. Thanks for that.

Thank you. We take the next question from the line of Roshan from Antic Stockbroke. Please proceed.

Yeah, thanks for the opportunity.

So, now with the minimum input price coming into effect, do you think the PVC prices should stabilize at this level?

I am not sure. Now, nobody can stop them. They can go up now. The fly is stopped, but going up, there is no restriction, there is not a lot to work.

Right, I understand. And you have highlighted that, you know, FTA with UKEU, you know, EFTA as a significant opportunity. So, you know, what share of revenue do you expect, you know, to generate from exports over the medium term?

I can give you an example of UK. UK, the country entered into FTA, improved beauty on plastic pipes, now they become zero. So, in so many countries, now government entered into FTA. So, what is the export opportunity?

Yeah, I'm asking. Yeah, export opportunity you are looking at.

Overall, the world imported plastic plastic, so, around one item, is 41 billion dollars, last year. Our company exported 5 million dollars. In 41 billion dollar market, we exported only 5 million dollars. So, we see huge opportunity. We will be spending money on participating in several exhibitions. We appointed several resources. We will go to the market. We will introduce new product also required in the market. We will get our product certified as required in the market. We will be spending huge investment to achieve the objective.

Right, I understand. That's the process.

Now just today, now to serve only 1.5 billion, we want to serve 8 billion people.

Okay, and that's helpful.

Thank you.

Thank you. We take the next question from the line of Annu Parekh from Anandrati. Please proceed.

Yeah. Hi, sir. Sir, can you please quantify the amount of inventory loss in Q1?

Nothing to report.

And sir, is there a scope for inventory gain in Q2

due to the recent increases in the previously recent person's environment?

Nothing will report either on inventory gain or inventory loss.

If anything happens, we'll be talking end of the year.

Okay, thank you.

Thank you. We take the next question from the line of Pratyush. An individual investor, please proceed.

Thank you for the opportunity, sir. So, I just wanted to ask about the channel inventory. Like, in March-April quarter, some of the companies had... Stated that there was a lot of restocking in one particular month, and then there was again a de-stocking. So is that phenomenon still continuing, or has the demand from channel partners been interested?

When we told you that we will have growth in this partner, there is no de-stocking taking place. When we are saying we will have growth in this partner, and we also say that in first half we will have growth. In spite of degrowth in first quarter, for the first half, we will have growth.

Okay, got it, sir. Thank you.

You are quite clear now, different.

Yes, sir.

Thank you. We take the next question from the line of Karan Bhatelia from AMSEC. Please proceed.

Sir, how is Vaven portfolio doing?

My product is doing very well. We have got certain new items, which are not there in our portfolio. We have added those products in our portfolio which are very helpful.

Right. And we speak to our guidance of selling 50,000 makes it 10.27 with much better profitability.

Yes, the quantum of volume, what we have said is 5, 70% utilization of the capacity,

70% utilization and we anticipate 15 to 17% volume growth for the full year A zone today in the plastic packing system.

Right. Answer on the EBITDA margin front, how do we see wave-in in comparison to supreme?

The supreme value is 70%. Same range, same range. Nothing very different range.

Right. And any clarity on the packaging JPEGs, the one which we were adding for the export market?

No, it can be fully sold out. Okay.

Thank you.

A reminder to the participants, in order to ask a question, you may press star and one on your touchstone telephone.

They will close this, they will close that to me. Thank you.

As there are no further questions from the participants, I would now like to hand the conference over to the management for closing comments. Over to you, sir.

Thank you very much. We are very impressed by the analogical question raised by various our investor friends. We thank them very much to spare time to raise questions, and we hope that we have adequately replied to the satisfaction. Thank you all. Thank you very much. Thank you. Thank you.

Thank you. On behalf of Dam Capital Advices Limited, that concludes this conference. Thank you for joining us and you may now disconnect your lines.