Kajaria Ceramics (NSE:KAJARIACER) Q1 2027 Earnings Call

0:00 Ladies and gentlemen, good day, and welcome to Kajaria Ceramics Limited Q1 FY 'twenty seven Earnings Conference Call. 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 this conference call, please signal an operator by pressing star then zero on your touch tone code. Please note that this conference is being recorded. I now hand the conference over to mister from Equiris Securities Private Limited. Thank you, and over to you, sir. Yeah. Thank you so much. Good evening, everyone, and thank you for joining this call. From the management Thank you, Pranav. Good evening, everyone.

1:00 It gives me great pleasure to welcome you to the quarter one to FY 'twenty seven earnings conference call of Kajaria Ceramics Limited. Joining me on this conference call is the senior management team of Kajaria Ceramics. In spite of the recent geopolitical disruption in The Middle East, coupled with a more favorable demand supply environment for the ceramic tile industry in Mormi, we remain optimistic about our business outlook for the year FY 'twenty seven. The performance in quarter one F 'twenty seven has broadly validated our expectations and provides a strong foundation for the year ahead. In quarter one F 'twenty seven, we achieved a 6% year to year volume growth in spite of soft April.

1:46 However, consolidated revenue grew by 20% to INR $13.28 crores compared to the corresponding quarter last year, mainly due to increase in selling prices because of fuel impact. EBITDA margin for the quarter stood at 19.60%. Apart from a brownfield expansion of 10,000,000 square meters of Kalaasi manufacturing facility announced last quarter, we have also decided to put up a further 11,000,000 square meters line at our Jalpur Rajasthan facility that will deliver cost effective, high quality products. Beyond tires, two verticals are evolving from adjacent into pillars.

2:34 KAJARIAC, our Bathway brand, is scaling with purpose. The decision to acquire the remaining 15% stake from Aravoli Investment Holdings is an ambiguous statement of long term commitment to building a market leading bathroom solutions brand. Our adhesives business is on track to grow at a much faster pace. As the price differential between national branded players and their informal counterparts have narrowed, a consumer preference is expected to shift decisively towards branded products, a secular tailwind that positions Kajaria February going forward. Looking ahead, we remain confident that the company is well positioned to sustain quality growth and create long term value for all stakeholders.

3:21 Let me review this quarter segment wise financial performance. Tile segment revenue grew by 18% year to year at INR $11.62 crores in quarter one 'twenty seven compared to INR $9.86 crores in quarter one F 'twenty six. March segment registered a 33% growth in revenue, reaching INR 122 crores in quarter one F 'twenty seven compared to INR 91 crores in quarter one F 'twenty six. Revenue from the adjusted grew to INR 45 crores in quarter one F 'twenty seven as compared to INR 25 crores in quarter one F 'twenty six. EBITDA improved to 19.6 as compared to 16.72% in quarter one F 'twenty six.

4:10 Profit before share of profit loss from JV exceptional items and tax grew to INR $2.30 crores in quarter one F 'twenty seven as compared INR 149 crores in quarter one F 'twenty six. PAT for the quarter grew to INR 169 crores in quarter one F 'twenty seven as compared to INR 109 crores in quarter one F 'twenty six. As of thirtieth of June 'twenty six, the working capital cycle also improved by five days to forty six days compared to fifty one days on 03/31/2026. And we will continue to focus on a lean working capital cycle going forward. With this, I take this opportunity thanking you for joining us today. Over to Mohit Priti. Hope you have a good Thank you very much. We will now begin the question and answer session.

5:10 And two, participants are requested to use handset while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue is handled. The first question is from the line of Praveen from PN Capital. Please go ahead. Thank you for the opportunity, and many congratulations for a very good set of numbers. My first question is related to the pricing. As you also highlighted, there is a price hike and overall 11% of increase in the realization. So can you give us some more color on that? How much is the, you know, the... Actually, in the segment, why is the price hike you have taken? And the way forward also where you are seeing this price hikes to continue at?

6:02 See, two things have happened after the war on February 28. The prices of gas at Morvi went up drastically because DSPC is the only supplier. In as far as Kajaria is concerned, we have three plants in Morvi. We have three plants in North and two plants in South. In North, we are taking the gas from Delhi. In South, we are taking gas from two CGD companies, one is thin gas and the other is another CGD company. What has happened in Morbi, the gas prices went up from literally about INR 48 to INR 86 to 88 per SCM, whereas in North, the price hike was approximately about 10% to 12%. As a result, the cost increase in Morbi was much more than what has happened in North.

6:53 In Morbi, they have increased the prices by almost 40% to 45%. In North and South from our plants, which we are manufacturing, we have raised prices by anywhere between 10% to 11%. As a result, the gap has come down drastically. So that's the current situation. What as we all know, gas market is very volatile with the war still on. One day, is there is no war, second day, the war is on. And the situation is very, very volatile. Looking at that, we'll keep watching and see what happens. But the situation as of today is very positive as far as Kajaria is concerned because of the multilocation plans that we have. Perfect, sir. Second question related to that is the volume, 6% of the growth in the volume we are seeing and still there is a lot of volatility in terms of the gas supply and all we are seeing. So where you are seeing this volume growth to be in the next nine months?

7:49 If you recall, last two quarters, we have not given any volume guidance. But this year, with a lot of confidence, we are saying that next five months, we'll have a double digit growth. Double digit volume growth. Okay. Okay. That's good to hear, sir. Last question is related to the CapEx because two CapEx announcement happened for INR $2.10 crore and INR 165 crore. And also, there is a renewable acquisition of a INR 12 crore. So can you give a '27 28 CapEx, how much is going to be out of INR $3.87 crore of our total CapEx of all these and also the maintenance CapEx, if you can give? This year, we are looking at a CapEx of roughly INR 400 crores because part of the CapEx which we are doing in two plants partly will come here, partly will come next year. This year, the CapEx plan is roughly about INR 400 crores.

8:47 Okay. Okay. So there is some maintenance CapEx included in this? All included, all included, all included. Thank you, sir, and all the best for future. I'll call in queue. Thank Thank you. The next question is from the line of Keshav Lahoti from HDFC Securities. Go ahead. Sir, it's heartening to see you giving double digit volume growth guidance after a long given some guidance. Just want to firstly understand from where this confidence is coming, what are you what insights you're getting it from cloud? And secondly, July also, we have seen a similar trend? This is Rishi Kajaria.

9:33 So why so as we said, our April was a little soft. But May and June, we did have a full volume growth. And the same trend continues in July. So at one side, we are strengthening our complete distribution strength and also another lever for growth, which we have now really working started working on is projects, which will give us that additional volume. Like I will not just to give you the information that we have just had a major breakthrough with two of the very, very big builders of India, where we are getting a lion's share. So looking at the distribution strength of ours and this additional lever of projects, we feel that we are bound to do a double digit growth this year. That gives us the confidence.

10:22 Understood. Got it. And secondly, how are the margins looking this year? And this quarter, you already said the $2.50 crore EBITDA mark, possibly can we hit the INR 1,000 crore mark this year? And by then, the promoter will be taking the promoter remuneration, which you if you got us to take a call, we don't want to take it. So this so we are looking at our EBITDA margin about 18% to 19% for the entire year. First quarter, we already got a 19.6%. So we are quite confident we'll look at those numbers for the entire year. We are looking at INR 1,000 crore plus EBITDA overall. Got it. Just a small clarification by EBITDA, you include other income or not? And secondly, as you will return INR 1,000 crore mark possibly next year, the motor will start with the remuneration?

11:14 We have only to say. Other income is not part of EBITDA. It's operating EBITDA. And Komotor in the last phone call, have already clarified that they are not going to take for this financial year. Understood. Got it. That is helpful. Thank you, sir. Thank you. Ladies and gentlemen, anyone who wishes to ask a question may press star and one on the touchtone telephone. The next question is from the line of Neha from Nuvama. Please go ahead. Oh, good evening, team, and thanks a lot for the opportunity. Couple of questions from my end. Firstly, I wanted to gauge how is the demand on the ground. And you said that April was weak and, you know, May and June recovered.

12:07 Could you help us with the understanding where was the maybe region wise pickup, Tier one, Tier two, Tier three? Or was it a broader slowdown? And what are the reasons according to you? And are we seeing a pickup back again in the current month? See, April was soft for three reasons, and we all are aware why it was soft. One, there was the total shutdown of Morbi in the month of April, number one. The Morbi manufacturing closed on March 5 and was literally closed till April 15. Some plants started only 10% of the plant started in the month of April, mid April, April 16. So Mobi, there was a total shutdown, number one. Number two, in the month of March, all the dealers across India lifted something more quantities for a simple reason that they knew that the prices will go up from April 1. And third, there was a labor shortage across the country for two reasons. One, was elections around in the country. And secondly, there was an LPG shortage.

13:10 So they all went back to their destination and said, let this problem ease out and we'll come back again. So these are the reasons. Already in the month of May and June, things have started positively and so is in the month of July, which is just about to close. So demand at the local at the normal level in the domestic market is very, very looking very optimistic. That's great to hear. Second question is regarding CapEx. We have seen a renewed CapEx. You all are putting up additional CapEx in your own facilities. Where is softness in coming on coming up from? Because earlier, the thought was largely, you know, to take it from JV route from worthy or even, you know, outsourcing.

13:56 What is the currency, you know, margin differential, let's say, between your own plans and JV, and, know, which model is working better and why? Chetan here. So we have two CapExes coming up, which we announced. First is the Shrikalastri expansion in South at a cost of INR $2.10 crore, which we announced in the last Board meeting. And second is the expansion at our Vivaldi factory in Rajasthan at a cost of 165 crore, which will happen in this financial year and is spill over to by April 27 will be completed. So these are the two major CapExes we are looking at for increasing our sales. What was the second question? Sir, was about the margin. We just wanted to understand why sudden renewed CapEx interest? What sort of margin difference do we make between the Morbi manufacturing as well as the South or the North manufacturing?

14:48 Sameer, the thing is that at this time, it's a new technology. This is the latest fund we are putting both at and where the CapEx is much lower what we used to do earlier. So the turnover, which we'll be getting from the both the CapEx will be more than 2x. And the OpEx and it will be not only the CapEx efficient, but also the OpEx efficient, the cost of production will also be lower. So incrementally, there will be highly ROC accretive and we'll get much more margin what we are getting even with our existing manufacturing facility. Understood, sir. This was quite helpful.

15:34 And one more thing that see, the decision of putting up the plant and outsourcing is also based on the geography. So we are finding good demand in North. So cater to the Northern demand, we have to put up we are putting up the plant. And this plant, we are putting up 10,000,000, 11,000,000 plant for INR 165 crore, which will give us a turnover of more than INR 400 to INR $4.50 crore which have better margin. So outsourcing, we will use as a to utilize our full capacity. But going forward, as we have to grow, we aim to grow in double digits. So it will help in meeting the sourcing requirement from these two plants.

16:26 Thank you. The next question is from the line of Disha from TriNet Asset Manager. Please go ahead. Hello, sir? Yeah. Thank you for the opportunity. Just two couple of questions from my side. How is the demand tracking across the retail channels and versus the institutional thing? And is there any real estate linked demand that you are seeing is currently a key growth driver? And is there any sign explanation or softness in this current quarter? So as I mentioned before, the demand is coming from both retail as well as institutional.

17:11 Our focus was less on institutional earlier, but now we are focusing on both the segments together to get our better growth volume. So we are strengthening our distribution, our dealer network as well as we are being aggressive in projects to gather more market share. And one more question that what's the current export contribution to revenue is? And is there any change in the strategy given that there is a global trade uncertainty and tariff uncertainty this year. So is there any going to be shift to the concentration to domestic? We are a domestic consumption story. We don't want to go to exports.

17:58 Our exports is less than 1% of our overall turnover. And we are very bullish on the Indian market, and we want to focus all our energy and effort here. So we are not looking at the export market at all. Thank you. The next question is from the line of Sabad from Marine Research. Please go ahead. Thank you the opportunity management. My first question is the Board has approved additional 11 MSM capacity expansion at the. Could you help us understand the key drivers behind this investment? Is this expansion based on the strong demand visibility the next few years? Or is the company positioning itself ahead of the next housing and real estate upside?

18:53 So the driver is the market demand from the North and Eastern markets, which Gilpur plant caters to due to the price increase of gas prices in Morbi, which is a cluster. The price relationship in Kajaria and the Morbi has decreased. So this has given to an increased demand for our products in the Northern and Eastern markets. Seeing that demand scenario, we've decided to put up expansion in our Rajasthan plant. Okay. The next, could you share the number of dealer added during the quarter? Pardon? No, no, it's confidential. It is not number of dealers added in the quarter. Yes, because overall, we have 1,800 dealers approximately, out of which four fifty dealer is exclusive.

19:39 As we go down in the year, with this change, we are expecting another 100 dealers to buy, out of which this five fifty will be exclusive. We are focusing more on exclusive Kajaria dealers. Yes. And how should we think about the dealer productivity over the next three, four years? Do you expect growth to come primarily from adding dealers or increasing Telfer's existing dealers? See, automatically, with the addition of their demand, see, one thing you are not able to get right now, the difference between Kajaria and Morbi has minimized. What was being sold from Morbi to a Morbi dealer and Kajaria dealer has minimized. If the gap earlier was 40%, today, it has come down to 20%, number one.

20:29 Number two, there are three kinds of customers in the country. One is a guy who's going for branded only. He will buy Kajaria, Somani or Johnson. There is a guy who says, I want Sascha cheap. He will buy about the product. There was another set of people who were saying, where do I go? Where do I go to branded or I go to Morgi? Differently many prefer a branded because you make a house once in five years, ten years, twenty years. So they will go for branded. As a result, our sales have started going up, which we are seeing as a result, which is resulting in what we are talking about. And as a result, we felt it is the right time to go for such a market expansion, number one. Number two, as you might have heard just now, we are in Jelkor, we are talking about an increase of 11,000,000 square meters at INR 165 crores.

21:19 If I take you back two years back, 5,000,000 square meter used to cost INR 150 crores. So this is a big change which is happening with the latest technology that we are putting on the plant. In the Nepal side, as market estimated around INR 200 and INR 500 crore, historical Indian times, Only 6%. What is the expectation for the next two, five years? Market, sir, is Kajaria targeting in Nepal? Please please come in the queue again. Let other people ask the question. You already asked the question. Oh. The next question is from the line of Pankaj from ECAJARIACERT Manager. Congratulations on good set of results.

22:20 My first question is that when I look at the last three years, the sales growth for us has been uninspiring 3%, 4%. I see a very renewed confidence in the commentary of growth. If I were to visualize the size and scale of the company, I should say it will be great if you can give a slightly medium term outlook where you see the size and scale? And my second question is, when I was looking at social media a few weeks back, I think you guys had a sales meet and where you could see INR 6,000 crore number on the top line for this year or, I don't know, next year. So some granularity on what is giving the confidence of growth and how the size and scale of the company will look like in the next three years? Last three years has not been great.

23:14 What are the big changes internally, externally you are seeing, which is giving us the growth confidence, it will be really helpful. Thank you very much. I take you back to April 25 when the big change happened at Kajaria, what happened? We did the job of unification. We had three different verticals, ceramics, poly 65 and clay 65, and we combine it to one. So what happened last financial year was there was a lot of cost cutting at various heads, but volume did come because there was a lot of corrections to be made. The volume real volume growth came in the quarter four when we grew at about 11%. As a result, what happened? Two things happened. One, the organization become much leaner than it was, lot of people went because there were three verticals operating. So instead of three verticals, now there is only one vertical that is tights.

24:07 And it has now started in the results. So that is the confidence which we got, number one. And the confidence is not that what we got, the confidence we got is the sales, resulting in larger sales. As I said just now, in the month of April, it was soft because of three reasons. In the month of May, June and now July, which is also just in last year of the July, things have started improving. We are seeing a double digit growth. So looking at that, we see that next three years is going to be very, very positive for Kajaria, and that is why these expansions are coming. Okay. And on the external front, Modi was very competitive all throughout. With what is happening around in terms of pricing? Do you see a structural change there where the shift from unorganized to organized has started to happen? Anything which is also acting like a tailwind there?

25:02 Can you help us on that front as well? Even greater sea. You see, the gas market is very, very volatile today. One day, there is a war, next day, there is no war. In you have to understand this thing that in Morabini, there is only one gas supplier, that is GSBC, which is partly importing on spot and partly taking gas from Gale and NN oil. Here, we are getting gas from Gale, which is a much, much bigger player as far as gas is concerned. And then CGD companies in South. So right now, that situation, how it will come, who will how they will become more organized and all that, it's too early to say because right now, they are in a trouble as it is because they do not know whether gas what gas prices will be tomorrow, whereas there is some certainty from their side and the gas.

25:51 That's helpful. And last question was that when I look at the market feedback at the ground level, the demand for slabs has been going up at a much faster pace. In the initial time, we had missed that opportunity. How do you see that going forward for us in terms of our capacity, capturing market share there with some way, Simpul has done a great job. So from a slab perspective, how do you see our opportunity and that becoming a large portion of our product mix? That will be my last question. I fully agree. I fully agree with you. That is why we are putting up these two large capacities. See, your question is a very valid question that Kajaria missed out. We do agree. But this is why we are putting up these large two capacities to meet the requirement of bigger sizes.

26:40 And a state of the art plant, both are state of the art of Fantastic. Wish you all the best and looking forward for optimism turning into execution. Thank you. Thank you. The next question is from the line of Ritesh from Investec India. Sir, my first question is just wanted to understand why is the difference in CapEx intensity between the two plants that you have indicated? The CapEx, the difference is because in Gelpur, the share is already there. So that's why the cost is less. It is exactly the same plants which we are putting in both the factories.

27:31 But in Shikala, we are putting up a brand new shed. We have to make a 8.5 lakh square feet new shed, whereas in Gelpur, it is an extension of the existing shed. So that is the difference of the CapEx. That would be almost like INR 45 crores? Yes, yes. So in Shikalasti, we're spending almost about INR 80 crores on the shed, INR 80 crores to INR 90 crores. And in Keralpur, we'll be spending about INR 40 crores to 50 crores on the shed. Okay. My second question is just a continuation of what Pankajkar was asking you. If you could highlight basically what is the technology or any different type of styles or sizes that we are looking at this particular expansion. Is it is it the historical and continue alliance, or is it something else that we are looking at it from a technology standpoint, which will actually help us on differentiating the product incrementally?

28:29 So I think the biggest differentiating factor is the volume. Earlier, as we just mentioned, a 5,000,000 to 6,000,000 square meter plant used to cost INR150 crores, INR160 crores. Now in INR370 crores, we have we'll get almost 22,000,000 square meters. So we are focusing on capacity as the number one point. And with that, we'll have the flexibility, whatever machinery we buy, whether it's SACER, whether it's Chinese, we'll have a mix of combination of both. We'll produce the best quality tiles where we have an option of all the sizes. But is there anything different from a printer or a skin standpoint, wherein which will differentiate our products versus what we have currently? So or is it just scale basically that we are referring to over here? So what's happened is the kill size has increased.

29:16 Earlier, we used to put a 200 meter kill. This time, we are putting a three forty meter kill. That's one. With either a container plus or hydraulic press, number present, that doesn't make a difference. So based on that, our technical team is working on all those things. But our first priority is to go for a higher volume capacity. And that is the way we get a very good cost where we can get a much better share in the market. Sure. And my last question is, would it be possible for you to quantify rupees per SCM for North, West and South? I think for Q1, we have given numbers of INR 55, 47 and 49.6. Please correct me if I'm wrong. If you could help us with the numbers for Q1 and likewise, what it is on a spot basis?

30:06 You're talking about the gas? Sir. Price average fuel price is around 71 in this quarter. And the best was the costliest Morbi as we were our plant called Morbi. So that was around INR 85 crores. And rest South and North are much lower than the West. Sir, would it be possible for you to quantify corresponding to INR 55 in North in Q4, how much was it in Q1? Okay, it's 64, around INR 64 and for South it is around INR 72 crores, 73 crores. Sir, on spot basis, how much would it be? I mean, this is too much detail. I mean, I mean, we what? Spot is about INR 85 crores.

30:58 Spot on a blended basis corresponding to 71, it is 85. Is that right? Spot is 85. You see, gas is not that simple. Gas is a combination when you talk about gas in North. It's a combination of various gas that we get from there, number one. In Morbi, it's still GSPC. In Kalashi, again, it is a combination of various gases, these thin gas cubes. So it's not that simple that just give you the price. It's a combination of various gases. We'll go into the final number. What I was trying to understand is, if we look at the indicated increase, basically what is the price increase required after Q1 given the gas prices if they're higher versus Q1?

31:53 See, first of all, please understand, gas prices are very volatile. I cannot give you that what will happen tomorrow, nobody knows. Even real people do not know what will happen tomorrow because now the entire parameters are decided by Ministry of Petroleum depending on how the work takes place. So whatever it is today, we are ready to share. What will happen tomorrow, nobody is. So we should leave it at that as currently. Sure. That's helpful. Yes. Thank you. Thank you. The next question is from the line of Dananjay from Centaur and Broking. Please go ahead. Yes. Thanks for the opportunity. So what is the status of Morbi export as of now on monthly basis?

32:46 See, exports have come down in the first three months of the year for due to this war, Gulf War. A lot of exports have been going to America, to Russia, to U. K, to Gulf, all these dips where the freight rates have gone up by almost 1.5x to 2x. As a growth, exports have come down. Average exports in the first three months is about INR 3,000 INR 1,000 crore each month. So this year, instead of INR 16,000 crores of INR $25.26, As of today, the run rate is lower. The run rate is INR 1,000 crores per annum. In terms of outsourcing, we are going to achieve 35%, 40% numbers for us. Talked about exports just now, right?

33:34 Yeah. You talked about exports. Yeah. Yeah. I'm talking about outsourcing for us, Kajaria. Yeah. So we were at 29, 30% number in terms of outsourcing, and we were targeting to reach close to 40% in next twelve months or so? Yes. This year, see, last year, we sold about 118,000,000 square meters of tiles. This year, we are looking at about 130,000,000 square meters of tiles. That's why I said the growth plus this, as I said, the growth will be double digit plus for the next nine months. In the first quarter, which we shared just now, we have grown at 6% volume growth. So if you look at those numbers, overall, our manufacturing capacity this year is not going up. Whatever we are doing, we are doing for next financial year. So looking at that, we have to do more outsourcing to meet that requirement of sales. That is for this year. Next year, the will go down when the manufacturing facility will come.

34:35 And thirdly, one I mean, one understanding I wanted to share. I mean, if you look at real estate launches data, 'nineteen and 'twenty, there was a huge jump in terms of launches. And I think our numbers got impacted because of that. In 2023, we had a big sharp jump in revenue in '22 and '23. And, if I see... We have seen 24, 25 business, 60, 70% jump in launches in state. So can can we assume that those launches is going to... I mean, in terms of time, is now coming up, and that is why you are seeing a good demand from the system side? See, let us not confuse ourselves with all this data.

35:22 I have already shared a lot of data that why our demand is going up. The first part is unification, which I said very strongly. Secondly, the price difference between Morbi and Kajaria or let's say Morbi and Somani or Morbi and Johnson, which is because they have multilocation plants just like Kajaria. So with that, we are looking at a positive scenario. What real estate launches and all that, you will confuse the issue. So there's no use of talking about that. Also just to clarify a point, when a project is launched, to the point, the tile gets used, it's a four to five year cycle. So even if the real estate projects got launched in 'twenty four, 'twenty five, 'twenty five, 'twenty six, this is not the time that the time will get used in those launches. So growth position has nothing to do with those launches. Those are independent of those real estate launches. And as already said in the meeting, we are also breaking our projects, which earlier Kajaria was leading due to various season, and now we are also embarking on retail as well as projects. So with these breakthroughs, definitely, we are looking at a very positive strategy going forward.

36:23 Okay. So what will be the share of NCT and retail? Any idea? It's too early to talk. There are so few things. It's too early to talk. Everything can be replied in one day. Okay, sir. Okay. Thank you and all the best. Thank you. Thank you. The next question is from the line of Anuparek from Anandati Investment. Please go ahead. Yeah. Hi, sir. So the first question is, you said that the incremental demand in FY 'twenty seven will be met from outsourcing and is the price gap between the Kajaria between Kajaria? Am I audible now? Yes. Yes, you are okay now.

37:11 Yeah. So we said that the incremental demand will be made through outsourcing for FY '27. And with the price gap between the company and having narrowed down, so is it still lucrative for us to outsource? We have no choice. Have no choice. See, this year, because of the production constraint, we will outsource from Muri because that is the only option. And once the plants come online on stream in the next financial year in the first quarter, then our dependence on Moses will be drastically reduced, and we will have 22,000,000 of our capacity in house. Okay. Understood, sir. And sir, last question is, what would be the share of ceramic PVT and GVT in terms of both volume and value for Q1 FY 'twenty seven?

38:02 See the share of ceramic is one degree. Now it's a very irrelevant question because you are making everything, you're selling everything, right? So we honestly don't calculate how much ceramic we sold or how much PVT we sold or how much GVT we sold. We are selling our complete volume of tiles. And whatever the market demands, we make that we sell. But overall, just for your information, GVT tiles are sold more in the country now. PVT is sold less and ceramic tiles are mostly used for wall type more for wall. Understood, sir. Thank you so much. Thank you. Thank you. The next question is from the line of Ashish from Motilal Oswal. Please go ahead. Yeah. Thank you for taking my questions. I have two questions. One is on the pricing side. So you mentioned that the price hike was more driven by the increase in fuel cost, which we saw during April May month. And there was a big difference in the cost increase in the Morbi region and the rest of India. So my question is that the 11% kind of realization growth which we are seeing on a q o q and y o y basis, was this uniform across country? My assumption is that we have a unified price on a pan India basis.

39:25 But just for a and if that is the case, then what is the price gap narrowed vis a vis more vis as on today? The second question is, is it safe to assume that in FY 'twenty seven, we will have a 20% plus kind of revenue growth driven by about 10% growth in volume and 10% from value? Correct. Your first question, the price is not unified and uniform. It varies from geography to geography. As was said earlier, we have three plants in North, two and South. Then the price increase was roughly 12% to 13%. And Modi in our plant, the price was much higher due to the price of gas there was increased by much more. So the price is not uniform, it varies from geography to geography. Again, earlier, as was said, the price differential between Kajaria and Gurus 40%, which has come below 20% as of now.

40:18 I hope that answered your first two questions. And also that yes. Are confident Yes. Of achieving a double digit growth with a 20% value growth. Okay. So thank you so much and all the best. Thank you. Thank you. The next question is from the line of Anubhav from Cosma Ventures. Please go ahead. Sir, I just had one question. Just a follow-up on the previous question. Sir, the blended price hikes we would have taken since the war broke out. So sir, is it today sustaining at that level? What is that number? And where would it stand for players in Morby?

41:08 I understand the situation is quite volatile. Just the update as of today. So yes, the price is sustaining as of now because the situation is quite volatile as of now, also the oil and gas prices. And it was average 13% to 14%, the price hike which we took. See, you have to differentiate Morvi products and our non Morvi products because Morvi product, the inflation is more, we are just adding our similar margin and selling in the market. So Morvi, we cannot give you any average realization. Our own non Morvi plant, we have taken a price increase of around 10%.

41:55 So that seems to be sustainable as of now. Moviv price may fluctuate if the prices may go down, our prices will also go down. If their prices go up, then our prices may also go up. So there is no average weighted average price we can tell you now because situation is dynamic. But we will be having the same margin for the product, whatever even when we were buying at INR 20 and selling at or now we are buying at INR 30, we are adding the same margin. But on revenue, it looks high, but the margin percentage will remain the same. So our margin will not impact should not change with the increase or decrease of price.

42:52 Hello, mister Varun? Your voice is not audible. Hello? How may I help you? Yes. Please. Yes. Yes. Yes. Go ahead. So I just wanted to get a sense on the geographical mix. Like, how is the split life for Tier one, Tier two, Tier three and which particular geographies where we are seeing high pressure? So the split is like this, North is 35%, South is 30%, East is 20%, West is 15%. Tier one sales metro sales 15%, Tier one and two are 30% each and Tier three roughly 15%. That's our geographical split. See the good part, what is happening is the entire India is growing. So the work there's so much work everywhere to be done.

43:39 We were in Maharashtra recently. We are opening showrooms there, all dealer showrooms. Wherever you go in India, there's so much of work to be done. So we are very, very bullish about the entire situation. And if we keep on doing our job well, where on one side, we keep on strengthening our retail network, what I mean by that is opening the dealer showrooms in the remotest parts of India and on the other side, the additional lever, which we are talking about where we are being aggressive in projects. With a combination of both of them, we are very confident of achieving our numbers, both in terms of volume and value. Okay. And sir, just like you mentioned about adding dealers, just on the design part, what's our strategy because that is also one USP, which we can develop. And so any particular thought there, like how we can expand our SKU and the designs and stand out in So the we do is when the dealer, say, let's say, for example, a place like, like, right? All these places, when the dealer wants to make a showroom. So we work with the dealer, give them all the design.

44:54 Our person goes there, makes the showroom, help them in designing the showroom. See, in a person's life, the guy makes buys tiles two or three tiles in a time, right? So in our so our design philosophy is to make the showroom so good for dealers that when our customer comes, he's completely bold over and he doesn't look at anything else. Okay. And any strategy, like how many experience center we have currently and want to expand? I personally visited and obviously it's great, but I mean We have our experience centers in all the major towns, about 24, 25 of them. We don't need we don't we put about one or two experience centers every year. But our dealer network and giving them the best product designs, right? We do a lot of R and D in our factories to make sure that we are always keeping up and making sure that our dealer shows those designs for the end customer.

45:56 Okay. And sir, next on the sanitary wear and profit. Sir, I mean, we had around 33% growth. So how much could you just quantify like how much was volume driven and how much was because of the pricing there? It's a mix of both. I think we increased the price about 15%, 16%, and the rest was volume growth. But looking for this entire year, we are definitely looking at about 35% to 40% value growth, which will be a combination of both price increase and volume growth. Okay. And any color on the margins because now that we have crossed the critical scale, and I think we'll drop INR 500 crore mark, For KAJARIAC, the Bathroom division, this will still be a little tough year.

46:43 Guys, we'll have good margin, but Bathroom will still be a little tough because we're still correcting a lot of things. We just hired a new Chief Business Officer also in April, and we're still restructuring a lot of our areas. So I would say this is a year where, yes, we'll do our growth, but we'll also have to do a lot of corrections. Next year, we'll look at a much better number, both in terms of value and in terms of profits. Okay. Okay. And but any color on the margins? So it's just kilos to breakeven or something? I would not like to give any margin guidance on sanitary when positive strides this year. I just say, I blended for the company, we're talking around 18%, 18%. Ladies and gentlemen, that was the last question. I would now like to hand the conference over to the management for closing comments.

47:39 Thank you, Pradav. I think a good set of questions have come. And on behalf of our entire management and myself, I thank you all of them for being with us in this investor conference. And thank you once again. Thanks a lot. On behalf of Kajaria Ceramics Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.