Rushil Decor (NSE:RUSHIL) Q1 2027 Earnings Call

0:00 Ladies and gentlemen, good day, and welcome to the Q1 FY 'twenty seven Earnings Conference Call of Rushil Decor hosted by Asian Market Securities Private Limited. As a reminder, all participant lines will be in a listen only mode. And there will be an opportunity for you to ask questions after the presentation concludes. Please note that this conference is being recorded. I now hand the conference over to Mr. Kiran Battil Decor. Thank you and all to you, sir. Thank you. On behalf of the of the SEC, will leave the conference to the Rushil Decor when we apply twenty seven investor conference.

0:48 From the management side, we have Rushil Decor, managing director, and he didn't write us. Thank you, Karanbe. Good afternoon, ladies and gentlemen. Welcome to Rushil Decor Limited earnings conference call for the first quarter ended 06/30/2026. Thank you for joining us today. I am joined by our CFO, Mr. Hiren Padja. The earnings presentation has been shared with the stock exchanges, and we hope you had an opportunity to review it. Let me begin with an overview of our performance and the operating environment during the quarter.

1:38 The first quarter of financial year twenty twenty seven saw a steady improvement in the company's operating performance, supported by the normalized operation at our Andhra Pradesh MDF facility and improved contribution from the laminate business. On a consolidated basis, revenue from operations increased to 27.8% year over year to Rs. 2,920 million in quarter one financial year twenty seventeen. EBITDA was Rs. 182,000,000 with EBITDA margin of 7.9%, while profit after tax was Rs. 20,000,000. During the quarter, the company also undertook a planned annual maintenance shutdown for a week in April.

2:24 During the period, we continued to right size overhead costs into operational efficiency and streamline product inventory. Coming to the laminate business, it remained a key growth driver during the quarter. Revenue increased 65.3% year over year to Rs. $736,000,000, supported by improved domestic demand and improving traction in export market. Domestic revenue grew 60.6% year over year to INR $251,000,000, while the export revenue increased to INR 67 point nine percent to INR $485,000,000. Total sales volume increased 27.9% year over year to approximately 2.8 lead sheets.

3:13 Blended realization also improved by 29.3% year over year to INR $8.36 per sheet supported by an improved product mix. The business reported the EBITDA of INR 52,000,000 with an EBITDA of 7% margin. The lumber laminate business made a progress during this quarter. Revenue was Rs. 110,000,000, representing a 25% substantial increase, while the total sales volume increased to 20.4% subsequently to approximately 1.13 lakh sheets. The business reported EBITDA of Rs. 23,000,000, translating into an EBITDA margin of 20.6% in line with the management expectation.

4:04 The improving contribution from the jumbo laminate supported the overall performance of the laminate business. We continue to see increasing acceptance of our jumbo laminate offerings across the international markets, which remains an important area of focus as we work towards improving capacity utilization. Turning to the MDF business, operations remained stable during the quarter following the planned annual maintenance shutdown. Revenue increased to 17.2% year over year to Rs. $1,456,000,000. The EBITDA was INR 123,000,000 with a margin of 8.4%. Focus remains on increasing the share of value added MDF products, which will help improve realization profitability and over the medium term.

5:01 We are also continuing to strengthen our MDF retail presence across the key markets during the quarter. Revenue increased 13.1% year over year to Rs. 96,000,000, supported by 6.9% growth in sales volume. The business reported the EBITDA of Rs. 8,000,000 during the quarter. The broader operating environment remained challenging. Chemical and other raw material price remained elevated, while freight costs were significantly higher and the shipping routes continued to face disruption arising from ongoing conflict in West Asia. Despite these challenges, the laminate business reported a significant increase in export revenue, supported by increasing acceptance of jumbo laminate across the international market and improved product mix.

5:55 At the same time, we rationalized our domestic market mix by optimizing supplies across the selected regions. This has allowed us to focus more on market and customer segment, offering better profitability across the MDF and laminate business. During the quarter, we further strengthened our domestic distribution network by adding direct 15 distributors and 46 retailers and dealers. We are also expanding our international presence by entering into two new markets, Honduras and Greece. These initiatives will help us improve our market reach, strengthen product availability and support further growth across our business. Looking ahead, our focus for financial year twenty twenty seven remains on improving capacity utilization in jumbo laminates business and increasing the share of value added MDF business.

6:53 We will also focus on improving the overall business through better product mix. Additionally, we continue to focus on improving our working capital and reducing debt. With no major capital expenditure planned beyond the maintenance CapEx, we remain focused on strengthening our cash flow, improving operational efficiency and creating long term value for all our stakeholders. Thank you. That concludes my remarks. I will now hand over our call to our CFO, Mr. Hiren Padhya, to take you through the financial performance in greater detail. Good afternoon, everyone, and thank you, Mr. Rushil. A warm welcome to all participants joining us today. I will now take you through the financials and operational performance of RUSHIL DEMETER for the first quarter of FY 'twenty seven.

7:47 Starting with the consolidated financial performance, revenue from operations for Q1 FY 'twenty seven was INR 2,290 million, reflecting a growth of 27.8% year on year. Gross profit for the quarter was INR $892,000,000 with a gross margin of 39%. EBITDA was INR 182,000,000 with an EBITDA margin of 7.9%. Profit before tax was 25,000,000, while FAT was INR 20,000,000. The improvement in revenue was supported by normalized operations at Andhra Pradesh and India facility and higher contribution from the laminate business. Profitability during the quarter was impacted by elevated chemical and other raw material costs and higher freight costs.

8:38 Moving to segment performance, starting with MBS business. MBS revenue for Q1 FY twenty twenty seven was INR $1,456,000,000, representing a growth of 17.2% year over year. The growth was driven by the India India business with revenue increasing 32.9% year on year to INR $1,447,000,000. India sales volume increased by 16.1% to 52,162 cbm, while India realization improved by 14.4% year on year to INR 27,736 per cbm. Export performance in MDF remained subdued during the quarter as the company continued to take a calibrated approach towards MDF exports with greater focus on markets and customer segments offering better profitability.

9:40 Following the resumption of operations after the planned annual maintenance shutdown, production gradually normalized with MBS capacity utilization at 66% during the quarter. From a profitability perspective, MBS EBITDA for the quarter was $123,000,000 with an EBITDA margin of 8.4%. Moving to the laminate business. Laminate revenue for Q1 FY 'twenty seven was INR $736,000,000, representing a growth of 65.3% year on year. India laminate revenue increased by 60.6 year on year to INR $251,000,000, while export revenue grew 67.9% to INR $485,000,000.

10:31 India sales volume increased by 6.1% year on year to approximately three lakh ships, while India renovations improved by INR 51.4% to INR 8.25 per ship. Export sales volume increased by 43.4% year on year to approximately 5.7 lakh ships, while export duration increased by 17.1% to INR $8.42 per sheet. And the net EBITDA for the quarter was INR 52,000,000 with an EBITDA margin of 7%. Within the Remnant business, Jumbo Remnant portfolio continued to scale up revenues on Jumbo Remnants to INR 110,000,000 during the quarter, with sales volume of approximately 1.13 less sheets.

11:20 EBITDA was $23,000,000 translating into a strong EBITDA margin of 20.6%. Coming to PVC business, revenue for charter was 96,000,000 representing a growth of 13.1% year on year. Sales volume increased by 6.9 year on year, while EBITDA for the quarter was INR 8,000,000 with a margin of 7.9%. To summarize, the company reported stable performance supported by normalized MDF operations and higher contribution from laminate business. The laminate segment, including jumbo laminates, remained an important area of growth, while India business continues to focus on improving its product mix realizations.

12:08 Thank you for your attention. That concludes my remarks. I would now like to open the floor for questions and answers. Thank you. We'll now begin the question and answer session. Participants are requested to use handset while asking a question. Ladies and gentlemen, we'll wait for a moment while the question queue assemble. The first question is from the line of RUSHOP SHERDARA from Praveen Rettel Wealth.

12:57 Please go ahead. Yeah. Am I audible? Yeah. So thanks for the opportunity. So my first question is on the MDF business. So I'm just slightly new to the company, and I would request you to, you know, explain it slightly in detail. So for the entire year, FY '26, we have done NDS sales of around $6.30 gross. Assuming that it would have been a normal year, what would have been the breakup of that into exports and domestic? And within domestic, what would have been the breakup between OEM and the retail sales within the MDS?

13:43 And just the the additional question on that. So for the current quarter that ended, so Q1 FY 'twenty six, what was the retail sales and the OEM sales? So when we speak of the domestic sales pattern, our pattern is 35% to 40% of volume has been sold to OEM and balance is done through distribution and retail channels. Talking about the export, our strategy is nearly clear that we'll be exporting somewhere around 4,000 to 5,000 cubic meters a month. So in order to just maintain the what I would say, we can maintain the production capacity in better manner.

14:31 And because of this 4,000, 5,000 cubic meters export, there is less pressure on domestic sales as well. Right. So normally, our sales to OEMs are closer to 30 to 40% of the MBS sales. Right? That understanding is correct. Right? 35 to 40%. Right. So what has been the volume growth in the MBS sales for this quarter to OEM and to retail, what has been the breakup? Same. As per Q4, it is same. Right, sir. Right, sir. So my next question is on the industry dynamics.

15:19 So the last information available in the public domain suggest that there was a... Sir, am I audible? Yeah. Yeah. Yeah. So the last information that we had in the public domain, it suggest that there was significant supply as compared to demand. So can you just brush us up on what are the latest numbers and any other capacity of India that is coming up? Just want to understand that how will the pricing play out going ahead because there is one leader who has not taken price reduction and there's another player which has already taken. So just wanted to know your views on the industry dynamics.

16:05 We have mentioned every year, MDF as an industry can is growing at a 20% CAGR. And when we talk about 20% CAGR, that means an additional capacity of 800 cubic meters a day can be absorbed in the market easily. But as you see, there are too many new factories coming into the market, maybe it is organized or unorganized. So yes, going ahead, we see the good amount of competition in domestic market. And yes, the price what we have taken some hike, which was acceptable to the market and the raw material prices have been included in that. So yes, we don't see any negative side of pricing going at this point of time. The prices you can say is more sustainable at this point of time.

17:09 Right, sir. Thank you so much and all the best. Thank you. Thank you. The next question is from the line of Anupam Gul from Cosmo Ventures. Please go ahead. Mr. Anubhav, please go ahead, sir. As there's no response from Anubhav, sir, the next question is from the line of Ankit Gulgilian from Gravita Consulting. Please go ahead. Yes. Hello. Am I audible? Yes. Yes.

17:55 Good afternoon. Thank you for giving me the opportunity to talk to you. Just wanted to understand how does the company looks forward for the debt overall that we are having in the balance sheet? Are we looking to steadily reduce the debt in terms of the overall debt equity or will it more also remain the same what we are seeing witnessing right now? Okay. As of now, if you see the total, I mean, date including working capital is around INR $2.60 crore. We have got a scheduled repayment. And as per the I mean, schedule, every year we are making the repayment of almost INR 55 crore. So if you see this quarter, in current quarter, we have reduced the date to the extent of INR 18 crore in this quarter only.

18:46 So considering the schedule, which we have been given by the banks and the financial institution, approximately second quarter of FY twenty six twenty eight, we will be able to clear our dates. So, practically year 2029 FY 2029 is the debt free company. And as mentioned in this speech also, for this particular financial year, we are not planning for any additional CapEx, except a small operational CapEx to the extent of INR 5 crores to INR 10 crores. And continue the fact that we are totally focusing into new project of jumbo and increasing our capacity in MDF and realizations.

19:37 So immediately for next couple of quarters or maybe one or two years, we are not planning for any further rate. So practically, it is a question of two years from now. Yes. So effectively, if there is no further CapEx plan for at least one or two years, so we can see probably aspiration of our net debt free company. Am I correct with that? Yes, yes. Yes. Okay. Thank you so much for that. Thank you. Thank you. The next question is from the line of Rushil Decor from nine Good afternoon. Thank you for the opportunity. So my question was on laminate business. We have a capacity of 28 lakhs sheets of jumbo laminates.

20:30 And in Q1, we've done a volume of roughly around close to... One second. Close to one lakh 3,000 unit sheets. So just want to check out is... Does it mean that our annualized run rate, the utilization level is only 15% right now? Isn't that correct, sir? So currently, our utilization is 29%, just to correct you. Because this has a different product mix and the capacity what we give you is on the base of one thicknesses and production which we have to move up the average of six millimeters to 12 millimeters. So this way we consider our capacity utilization is 29% and aspiration of utilizing this year is somewhere around 55% to 60%.

21:26 Okay. Okay. And going with the run rate, know, because 11 crores per quarter and that's 29%. At full utilization at 85%, what could be the potential revenue, sir, from this Jammu laminate? Again, I would like to say here that this year our expiration again is to take it to somewhere around 60% of utilization, which will take us to somewhere around crores. And going ahead, if we utilize the capacity at somewhere around 90%, the potential revenue we can generate from this press would be somewhere around INR 140 crores.

22:18 Okay. Sir. So next question was on NDF. Sequentially, in Q4, our utilization level had gone up to 83% vis a vis 75% of the full year, now it's come down to 66%. Any reasons you can attribute to that? And going forward, what kind of utilization levels we anticipate for the full year in India business? See, every industry requires a new oil plant shutdown to make sure that other months like out of three sixty five days, other days of the plant can be utilized effectively. So every year in the month of April, we take kind of planned shutdown for every plant so that we are ready for other days to work out work with full capacity. That is the only reason we see. Okay.

23:13 Okay. Okay. So for full year, last year, we operated at around 75% utilization. So will we meet that or will it be above that? It will go up. Okay. Nice to hear that, sir. And my second question was on... In case of the difference between same if you normalize that one sheet of laminate, what could be the price difference between jumbo laminates and the no... Normal laminate, sir? See, it again depends on what what kind of product mix we are planning. It's not just six millimeters what we see. It's about the facade six millimeters is a different rate. Then typical six millimeter is a different rate.

24:00 Higher redundancy is a different rate. So we cannot average it out until and unless we finally prepare our balance sheet. So it becomes very difficult for us to see an average rate what can be the realization. Okay. Okay. And, sir, if I if I dissect the number of the laminate business as compared to last year, the margins were around 10%. And if I remove the laminate, the jumbo laminate, then the the normal laminate business margin has come down to 5%, sir. Is it completely because of the hit in the gross margin, or is there something beyond that? See our business in Gulf Region is also very high and that we used to do from our older plants.

24:50 So that was one of the hit and another was the chemical base because in laminates we have done some further commitments over the supply. So because of this thing only, these are the two main impacts, the margins were hit in the older laminate business. And also, there was a plant shutdown in laminate plant as well, where we did a merger of not merger, I would say we had two boilers running in one of the plants where we implemented the jumbo capacity. Now we have done a single boiler unit. So that also was the one of the reason why the production was also less. Okay. Okay. Okay. And sir, earlier in the last quarter, you had said that you all are aiming for that 10% to 12% EBITDA margin going forward.

25:40 Any ballpark color by when we can reach that 10% to 12% EBITDA margin on a consolidated basis? If you ask me about, again, expiration, I want to go this quarter. But, realistically, we had... We may take one or two quarters more to reach a good debt level. Okay. Okay. Okay. And then any any guidance you would like to give for FY twenty twenty three on the total revenue of the company, sir? So I would just say one thing that as we have given the guidance earlier, we are on it and we will be proving our best out of the business what we are currently doing. Okay. Okay.

26:27 Last request, is it possible to actually have a plan to just to see the jumbo facility, jumbo laminate facility, if it's possible? You can contact our investor relationship partner at Target and they will arrange the update. Okay. So that is so nice, sir. Thank you so much and best of luck, sir. Thank you. Thank you. Thank you very much. Thank you. The next question is from the line of Anubhav Goel from Cosmo Ventures. Please go ahead. Yes. Hi, sir. Thank you for this opportunity. So this 90% you mentioned, the total jumbo sales of INR 140 crores. This is phase one plus phase two, right? Yes, both the phase put together.

27:14 Okay. Got it. And sir, my next question is if you can just give more color on how we are planning to ramp up jumbo. Like, is it a similar set of clients and channels we have for our existing laminate exposed business? Because I think the largest player here has warehouses. He has people on ground to find clients and get orders, while we are doing it largely from India. So how are we approaching this? And will it take a few years to get to this INR140 crore number? So first of all, these are all new markets where we are approaching. So there are some markets where we are already there, but basically all this exercise takes few years. We have been already sitting in India. It's not that we are not doing a different approach. We have a different approach as well.

28:09 But this is typically all the certifications, all kind of necessary documentation has to be done for the countries where we are approaching. So, we have already created many of the countries where the jumbo laminates have been saving as one of the biggest products. But these markets are like a very slow openers. Like once you are done with them, your contract is for two years, three years. So we need to create that contracts. And we are on it and will be like our next aspiration about using this plant at 50%, 55% this year. And we will be utilizing like 70%, 75% next year. So yes, very soon down the line two years, we may reach to our targeted revenue.

29:01 Okay, sir. Got it, sir. And sir, just my last question is, it's a very volatile situation, but any color you can give, sir, on what should we expect for laminate margins for 2Q and rest of the year from the 5% in 1Q? So as you rightly pointed, laminate, when we are the older laminate, excluding the jumbo, has got normal margin for the last couple of years is around in the range of nine to 10%. So this particular quarter, we have got shutdown. So that has affected. Secondly, the chemical prices has also negative impact as of now.

29:46 Part of the war situation has also affected. So I think all these three aspects has affected the whole quarter. But otherwise, our normal margin is in the range of 9% to 10%. And if we include the jumbo part, I think our margin should be more than 10% at least as a combined linear segment. So it will further improve provided there is no uncertainty in terms of chemical pricing and more issue. Got it, sir. Thank you so much, sir. Thank you. The next question is from the line of Reshameeta from Cregnational. Please go ahead. Thank you for the opportunity.

30:32 Sir, so one is on the MDS bit. So our volume growth was flat for this quarter. Any specific reasons? If I recall correctly, I think in Q1 of FY 'twenty six, we had a fire and our plant was shut for space. In fact, we should have seen good volume ramp up in this q one FY twenty seven because I believe the base was weak year on year. So the... There is no specific reason because our volumes which we have delivered is on the line because as we see, we have taken a shutdown, which was planned. Another thing was chemical pricing and third was situation in West Asia because we are dependent on exports in Gulf as well. So there are these are the three main reasons.

31:26 Because So how of have exports been in FDS in q one? Have you exported anything or not really? No. Not a big volume. Not a big volume. Somewhere around 255. So was there growth in the export side, or was it flat, or was it... There... Was there a degrowth for the export volumes of? No. Actually, we had the orders in Harbour because of the container shortage across the across the globe, we were not able to find the containers at the right price because of which the export volume was bit on the lower side. And, sir, typically, when we take those maintenance shutdowns, and I believe this was a planned maintenance shutdown. Right? So I believe normally the way companies operate is, you know, that they stock up for the inventory for the loss of production days, and hence, ideally, there should...

32:22 It should not impact sales volume if there is demand. That would be a fair understanding, sir? Yeah. That is a fair understanding. We did plan for the for domestic, and we did the sales among that only. But the thing was unexpected chemical price, which was fluctuating because of all the people. The domestic buyers were a bit reluctant on buying the either they are buying at the right price or not, either they want to pile up the stock or not. They will just ask for the requirement. They'll not ask for anything to stock up because of which the volumes remain the flat. Okay. And so overall, I think for the quarter, our gross margins have declined significantly, which is a 900 bps decline if I look at it quarter on quarter.

33:13 Of course, we've seen a lot of inflation, but just to quantify this, so if I look at MDF, MDF, I believe, we had taken around 15% price hikes. So post the 15% price hike that we've we've taken, have we taken any more price hikes? If yes, no, you know, what is still the gap left to, you know, be covered up? No. We didn't took any price hike after 15%. And current market scenario is all about the demand supply. So everyone is playing accordingly. I would say. So after this 15% price hike, of course, it... I think our margins have declined, which effectively means that there is, you know, more inflation to come. So how much more price hikes, hypothetically, we would need to take to cover up for this input cost inflation?

34:09 Actually, I cannot give you any guidance on that because the reality is market is not going to accept any further pricing. So so... Okay. So let me ask you this way. So so the 15% price hike that we have taken, is that also still sustaining on ground at 15%, or are we passing on some trade discounts? And effectively, what it means is that, you know, 15% of price hike that we have taken, it is probably actually only 10 plus 10% or something that effect on ground. No. Sorry. Currently, the 15% hike is what we are sustaining it. And that is we are not passing any kind of discounts or anything. So we are maintaining our our given price hike.

34:55 Okay. And and so a similar question on the laminate side also that we had taken around 10% price hikes in the past. So any more price hikes that we took in the current quarter of q one? And, again, how much more gap to be covered for inflation, if any, if you can share that number as well. Let me add the 10% prices covering our inflation as of now, and we don't see a further hike in that as well. Okay. So 10% is the only price hike that Yes. Yes. And that is covering the Who's speaking? The inflation. Sorry. I didn't get your question. Last, the voice voice got cranked.

35:43 Okay. Am I audible? Yeah. Yeah. Yeah. It's low. Ma'am, your voice is breaking. Sure. I will join back the queue. Thank you, ma'am. Thank you. The next question is from the line of Vicky from Garden Capital Partners. Please go ahead. Hello, sir. Thank you for the opportunity. I had three questions basically for MBA business. So what is the current export run rate now? Have this... Have export started again fully scheduled on how how are the things today? No. Export is still on the lower side because of the freight component, very high currently.

36:34 So we are... We have a good book of orders with us in hand, but unfortunately, the containers rate are so high that we need to take that permissions from customer before exporting it. So, yes, we are on it, and we'll be doing it with a positive way for this quarter. It was somewhere around 1,500 to 2,000 cpm per month. This was my knowledge earlier. What is current situation if you could please give? It was 5,000 cubic... It is 4,000 to 500 cubic meters a month. The one day for the last year was... And currently, if we just talk about July, we have somewhere around 3,200 cubic meters done.

37:23 You so much. Sir, second question is on if you could give some color on raw material pricing, raising pricing and gold prices for the long quarter? Is the Wood pricing has remained flat this quarter, but the resin prices have gone substantially high, like somewhere around close to 35% to 40%. Okay. Perfect. Have they come down now in July? The school has corrected a bit also. Very marginal. Very, very marginal. Perfect. Perfect. Thank you so much, sir. This was my mind.

38:11 Thank you. Thank you. The next question is from the line of RUSHILL GOSER from Nine Rays Equities Research. Please go ahead. Rushil Decor, please go ahead. Yeah. Am I audible now? Yes, sir. Yeah. Yeah. Yeah. Thanks for the follow-up opportunity, sir. My question was regarding the jumbo laminate, sir. For this 28 lakh sheet capacity, what was the CapEx you have done, sir, in this? We did the CapEx of somewhere around INR 90 crore rupees. INR 90 crore. And potentially, we're saying we'll do asset turn of around 1.4 or 1.5 times on this to reach around INR 140 crore at full potential, right?

39:04 Yes. Yes. And sir, in Q1, we have reported almost 20% EBITDA margin for this Jampur, I mean, and this is at just a utilization of around 29%. So as we ramp up just around say by end of the year to 55%, 60% next year 75%, what could be ideal EBITDA margins we can expect from this business, jumbo laminates? It is very earlier in this situation to say because of the fluctuating raw material prices. But we would say our expectation is we would maintain such margins across the year. Okay. Okay. And the last question, is somewhere, if I'm trying to understand the full potential of the company, if you are under MDF at around 85% utilization, we should do around INR $7.50 crores, 800 crores of revenue.

39:56 And another laminates earlier, we used to do 200 crores on a steady state. And if I add 140 crores jumbo laminates, the total should go to around 1,100 crores, maybe two, three years down the line if you're running everyone at all the plants at 85% utilization. Is this assumption fair enough, sir? See, as of now, you know the turnover last year, right? Now coming to NDF, where you said rightly said, but then it depends upon the actual capacity utilization along with the diluted proportion. Now internally, we have a target of MDF per se to achieve the, I mean, quantity wise target of 50% and the value wise 60% in terms of the various products.

40:49 If that achieves, think the turnover may exceed whatever you are saying. However, in case of laminates, normal turnover is around INR 200 crore for the existing laminates. So that can go up to INR $2.50 crore, definitely. Now in case of jumbo, again, it will take some time. So and considering the today's volatile situation, I think we would not like to give any guidance as of now. But yes, NDF will have a better, I mean, realization in quarters to come. So far as the unit is concerned, the normal margins will maintain in terms of existing revenue that is around 9%. And jumbo as rightly said by Rushil Decor, we will try to have better margin in the coming quarters, but it is again too early to say. So I think the real picture will come maybe after one or two quarters.

41:48 So it is too early to give any guidance on this side. But it will be better, that is for sure. Thank you so much, sir. Because as a long term investor, we're just trying to understand the full potential of the company in a normal steady state of business, maybe two, three years down the line. I appreciate for all the patient answers. Thank you so much, sir. Okay. Thank you. The next question is from the line of Ranav Majan, who is an industrial investor. Please go ahead. Thank you so much for the opportunity, sir. I'm just new to the company. I want to know the positioning of company, and I want to know why there is a difference in realization of a Recidecore and other competitors. It is around 12 to 13% of difference in a... Overall on seven to eight years.

42:39 Hello? I know. Repeat because we just we just breaks... Break your voice. Can you just repeat the question? Oh, sir. Actually, I want to... Well, I have two questions. One, I want to understand the positioning of the company in MBF segment. And second thing, I want to ask the difference in realization of the Rushil Decor and the other listed players. There is differences around 15 to 16% for the for the eight to nine years of trade. Okay. So first question, I would like to answer in this way, that we view the realization on flat basis. We do not add any logistic cost or we do not add anything. So whatever we say, our number is actual realization what we make.

43:25 Right? If I add my freight cost, then roughly across India, my freight cost would be anything somewhere to 9%, and we can, like, extrapolate this way as well. So our our strategy is clear that whatever we deliver, whatever we say the number are the realistic number. We do not extrapolate it in this way. So... Yeah. And another thing is the value addition. The value addition Yeah. Sorry. Value addition... Yeah. Let me come. So value addition plays another big role. So if you see our plant in this way that our target of value addition was somewhere around 50%, which we are committing this time also.

44:15 And last year, but the actual scenario for this quarter was 45% of value addition. And in terms of revenue, it was 4% of revenue variation. So this way, if we consider ourselves, then we are not in difference of 10 to 15%. Our margins are like 2% or 3%, maybe plus or minus towards our competitors. Okay. Okay. And, sir, other thing on the BI, I want to understand how much importers have got the API's license to fill the debt, and how much external exporters have got the BIS license? Export, like, all Indian manufacturers has got the BIS licenses. Importer...

45:04 Importers. And as per the information, eight to 10 factories have already got the VIS licenses. You are from Vietnam. You are from Thailand. Okay. Okay. But there is no subsequent amount of import in India as of now. Sure, sir. Thank you, sir. And one more question on the raw material raw material cost. From the competitor, your cost is four to 5% higher. So what is the reason of that? And I just researched the... In the South, the the timber cost is 32%... Three to 5% lower as compared to South. So you need to have a lower raw material cost, I think.

45:52 No. No. Raw material is all dependent on the sourcing thing. Wood prices have been stable for quite a long time, and this reason prices have been volatile because of too many reasons. It's not just one reason. Okay. So And what is the perimeter of the radius? Sorry. Sorry. You... Can you repeat the question? Sir, actually, I want to understand the raw material. There is a difference of five to 6% of raw raw material cost between you and your competitor. So I want to understand the difference. And I think your cost will be the lower because wood prices in South are lower by three to 4%. Yeah. But at the same point of time, the resin manufacturers are presently located more in the North than South.

46:39 So, typically, resin is to be bought from other service... Other zones. Maybe not sometime there. So that plays a bigger vital role as well. It's not just the wood cost which needs the MDF. Okay. Okay. Thank you, sir. And on the export side, I just want to understand that as you mentioned that freight cost is high. But for the Vietnamese and South Asian countries, the freight cost will be higher than India. So as in India, we have any kind of competitive advantage, and you you are just list your manufacturing is very short distance report. Right? So why... How the demand is going to affect? Like, in this Asian country... In the West Asia, who is impacting that demand? Who is fulfilling that demand? Sorry.

47:29 Currently, Thailand and Vietnam are the people who are fulfilling their demand because the markets are open there for them as well. India, because of the VIA side effect, it does not have, so they have got the limitation of exporting it to India. Another thing is they have got a competitive advantage on raw material side. So because of which they are also getting the better raw material pricing that way. Okay. It's it's on the way same. Like, if you incur the logistic cost, then they have a raw material saving. If you don't enter the logistic cost, then you have raw material on the higher side. So ultimately, selling selling price and selling points remain same at this point.

48:20 Okay. Okay, sir. And in FY '27, what will... What is the expectation of OEMs and retail mix in m g s... M g s segment? As I earlier mentioned, that there would be somewhere around 35 to 40% of OEM, and this would be to the retail. Sir, what is the difference between OEM and retail? The difference is realization and the MDF. The OEMs are long term partners. We are we are not a short term partner. So OEM contracts have been done for a longer run, and that gives us a support for the longer run. And... But, obviously, because of this all all bulk, they they have an advantage. But there is currently at at this point of time, the price for the retail and OEM remains the same.

49:13 Remains same. Okay. Thank you, sir. And the... As you mentioned that you are long term contracts, the price is fixed or not in that long term contract? No. That depends. Okay. Have Okay. You. We have not got any fixed price contract. Okay. So price is not fixed in the long term contract. Right? Yeah. Yeah. Sure, sir. And thank you so much, sir. Thank you. The next question is from the line of, an individual investor. Please go ahead. Hello, sir. Hello. Yes, sir. Yeah. Yeah. Thank you for the opportunity. I just wanted to understand the market pricing dynamics. So since you said there's a little oversupply, what is the reason we are able to take price hikes and in an environment where there's an oversupply?

50:09 So this price hike is typically taken because of the raw material price difference, which has been substantially high in comparison to the pre war situation. That is the only reason this price hike has happened. There is no other reason. But is there possible inventory loss in the future if the prices of raw material remains elevated and if there's still oversupply in the market? Maybe yes. Sorry, sir? Yes, maybe yes. Okay. Thank you, sir. Thank you. The next question is from the line of Rushil Decor from Green Edge Wealth.

50:56 Please go ahead. Yes. Thank you for the follow-up. Am I audible now? Yeah. Clear. Thank you. So I was asking on the laminates bit. So we had taken a 10% price hike in q four. Mhmm. So have we taken more price hikes or is is the target thing is sustaining? No. No. No. We have not taken any further price hikes apart of 10%, and we are recovering all the overheads out of this 10%. So we don't see any stress over this. Okay. And and so what has led to this realization, lakh? I understand Jumbo, I mean, it's a small part of it. It's just a 10 crore contributor, but this realization growth of 30% can be attributed to what?

51:50 Mainly, this was the product mix which had made a big difference. We did a good amount of value added business in the minute also, which has escalated our thought sheet realization in this way. And, sir, what has, like, driven this 3% volume growth in Lamblin? Is it the domestic business or the export business? Because, again, like, Jammwal assets is just INR crores, so that could not have, you know, contributed to higher volume. Can you repeat the question? I didn't get your question rightly. So,, we have seen a volume growth of around 28%. Right? So what exactly is driving such high volume growth? Is it the domestic market? Is it the export market?

52:39 I understand jumbo is, you know, a a new new entrant here, but but jumbo laminates is just a small in core revenue. I would imagine our base laminates business has also grown. Yeah. So the volume has been basically from domestic and export with the markets. It's not just from the single domestic market. We have got some new customers in Far East also, which have played a good amount of role in Far East business. And apart of that, somewhere around 15% to 20%, we have grown in domestic market as well. Right. Right. Because if I see the leader, you know, they have reported quite muted numbers. So that's where this question was coming from. Though I think we are on a very small base, but but still nevertheless.

53:33 Great. Great. Thank you. Thank you so much. That's it from me. Thank you, ladies and gentlemen. That was the last question for today. I would now like to hand the conference over to the management for the closing comments. Thank you all for taking the time to join us today for your continued interest in Rushil Decor. As we continue to navigate opportunities ahead, we remain committed to achieving our strategic objectives and delivering consistent value to our stakeholders. For any further questions, please reach out to our investor relationship team at Strategic Partners. Thank you once again. Thank you, sir. On behalf of Asian Market Securities Private Limited, that concludes this conference. Thank you for joining us. You may now disconnect your lines.