Thanks, and good afternoon, everyone. On behalf of Axis Capital, I welcome you all to PG Electroplast Q2 FY '26 earnings conference call.

Today, we have with us senior management represented by Mr. Vishal Gupta, Managing Director - Finance, Mr.

Vikas Gupta, Managing Director - Operations, and Mr. Pramod Gupta, Chief Financial Officer.

Without taking much of time, I will hand over the floor to management for their opening remarks, post which we will open the floor for Q&A. Thanks, and over to you, sir.

Thank you, Deepak, and good evening, everyone. Thank you for joining this call today.

Hope all of you are doing well. Sorry because there was a little delay in uploading the results because the board meeting got over at 4:40 only, we didn't get much of the time to upload the results earlier.

It has been done. I think you people can have a look at that.

Let me start by saying this, that this quarter and first half of FY '26 has been softer than what we have expected. The room AC business was impacted due to early monsoons and then GST cut announcement, which was done on 15th of August.

Nonetheless, we have been able to grow our RAC business by around 2.5% in first half, despite the industry posting almost 25% decline. The washing machine business has done extremely well, and we have seen a very good growth.

Compared to last year, washing machines were up by 55% in this quarter. The JV, our Goodworth Electronics, has also ramped up well and has posted sales of ₹483 crores with ₹10.33 crores of EBITDA in first half of FY '26.

We remain optimistic that room AC business will see increased penetration-led growth with the recent rationalization of GST, and we believe that, in medium term, growth in room AC business will remain robust. We are expanding capacities in RACs, washing machines, and coolers.

Client engagement across large and emerging brands remains strong. As we have guided in our previous call, FY '26 will now likely shape up to be a more measured year, and that's fine.

We are maintaining the guidance we had shared last quarter. We will be using this year to consolidate, focus on operational levers, and execute our platform and capacity investments with discipline.

These are the foundations we need to get in place for the next phase of growth. We remain confident in the long-term opportunity in India's consumer durables market and in PGEL's positioning to be a key enabler in that space.

Our focus remains unchanged: to scale profitably, stay capital efficient, and deliver consistent value to our stakeholders. With this, now I will hand over the call to my colleague, Mr.

Pramod Gupta, our CFO, to elaborate on the financials.

Hello and good evening, everyone. I'm sure all of you have seen the financials.

Although I also apologize for putting up the data and financials and presentation with slight delay. Now I'd like you to go through along with me for all the numbers for Q2.

Consolidated revenues stood at ₹655 crores, which was a 2% decline over Q2 last year. Of this, product revenues contributed almost ₹319 crores or 49% of the total revenue.

The AC business contributed ₹131 crores, and it declined almost close to 45% versus last year. The AC business accounted for around 20% of total revenue.

Washing machines business was up 55% during the quarter, and it contributed about ₹188 crores to the sales during the quarter. Our 100% subsidiary, PG Technoplast, reported revenues of ₹295 crores during the quarter.

Coming to the profitability, EBITDA for the quarter stood at ₹45 crores, and net profit was at ₹2.4 crores. The net profit drop is almost due to lower operating leverage.

Also, we had a forex loss of ₹8.4 crores during the quarter versus the gain of ₹1.2 crores during the same quarter last year. We have worked on all our costs during the quarter and optimized wherever possible.

From a balance sheet standpoint, the company remains on a strong footing. Cash and equivalents at the end of Q1 are—at the end of quarter two are ₹630 crores, and we are net cash still.

Return on capital employed stands at 20.8%, and our fixed asset turnover remains healthy at over 5x on a trailing 12-month basis. Now coming to guidance, we are maintaining our guidance shared in first Q 2026.

That is, for FY '26, we expect PGEL to be having revenues in the range of ₹5,700 to ₹5,800 crores, and net profit is expected to be between ₹300 to ₹310 crores. At the group level, including our joint venture, Goodworth Electronics, we expect consolidated sales to cross ₹6,550 to ₹6,650 crores.

We are continuing with our investment in Greater Noida, Supa, Rajasthan, and South India, and our FY '26 CapEx will be in between ₹700 to ₹750 crores. Again reiterating that our long-term investment, operational model, and growth priorities remain unchanged.

With that, we are happy to take your questions. Thank you.

this CapEx? Mr.

Balamurli, can you just repeat the whole question because first part of was not very clear. It was not audible.

Can you be a little more clear, please? Louder, please.

Yeah. Okay.

The first question is regarding this POS devices order we have received from the customer. What is the revenue potential of this order, and how many units we are planning, and how it will scale up?

Also, any other potential customers also there in this sector? Secondly, on the

CapEx spend, we have MoU with Maharashtra state and Andhra Pradesh around ₹1,000 crores each. How we are going to deploy that CapEx and when we can

spend? Yeah.

Vikas, can you take up this question on that agreement what we have signed with Pax Global, what is the outlook for that revenue from that POS machine business?

Good evening to all. Regarding the POS machine, that agreement that we have entered into with PAX Technology, and we are expecting to start some pilot production within the within the quarter three of FY '26, which is the current quarter.

It is too early for me to comment on the what will be the revenue potential of this, but we are hopeful that it should become a sizable business in coming months, in coming quarters. We'll keep the stakeholders updated on the exact revenue potential of this.

Maybe by next quarter, we should have much more clarity on that. As far as that ₹1,000-crore MoU what we have signed with the state government of Maharashtra, actually we are in the process of acquiring one large piece of land in Maharashtra, and we have entered into this MoU agreement.

We intend to start CapEx on that piece of land from FY '27 onwards. We intend to start doing CapEx.

This ₹1,000-crore CapEx we are supposed to do in next 4 to 5 years, we will be doing that. Once we have more clarity, we can share details on that, maybe in next two, three quarters on that.

That is a long-term plan, but we are trying to create a bigger land piece and bigger infrastructure for our future growth potential. We are trying to create future growth potential with this investment.

Sir. Andhra Pradesh ₹1,000 crores MoU also being to spend into refrigerator [unclear]?

We have an intention to set up a refrigerator plant in state of Andhra Pradesh. For that, we have already acquired the land parcel of almost around 54 acres there.

We are starting construction, and we hope to start the refrigerator production by quarter four of FY '27. Okay.

What will be the investment CapEx amount for this first phase for refrigerator? It's total ₹1,000 crores, but Q4 FY '27?

CapEx will be in the range of almost around ₹350 crores in the first phase for the refrigerators. As we go forward, we will be expanding further into other product categories like air conditioners and washing machines as well going forward.

The CapEx plan of ₹1,000 crores is spread over a period of 4 years to 5 years in Andhra Pradesh. Sir.

Lastly on the inventory side, in the previous call, we have discussed that most of the inventory will be cleared by November. There are some—

As per our estimate, the quarter three and quarter four should see improved inventory at our end. Right now, we are carrying a very similar inventory as we were carrying at the end of quarter one.

The channel inventories also remain on the higher side as of today, but we are hopeful that, given the GST cut and the build-up which happens during the pre-summer, should help us and the industry to get rid of the inventory. We think that coming months will be good from the point of view of production at our end, and we are hoping that by November-end, we will be normalizing our inventory given the plans that we have.

We have actually maintained our guidance, and we are hoping that second half will be much better for AC and other businesses as well. Sir.

If I may squeeze one last question. Any update on this compressor partner?

I think we are waiting for information from China government. Any update on that?

No, sir. It is still pending.

Nothing is getting resolved. As per the latest updates what we have from our partner, they are still waiting for the go-ahead from the Chinese government side on this.

If it cannot be put forward, then if there are some restrictions on the import of compressors, there will be a lot of disruption will happen. Sir, your voice is quite muffled, boss.

It's not clear. Fine.

I'll get back in queue. Thanks a lot, sir.

Thanks.

cash flow for us in the Q1 first half has been okay. We are having higher inventory, and that is probably showing a negative cash flow at the operating level as well as at a free cash flow level.

Second half should be much better, largely because of two reasons. One is, obviously, we are hoping to normalize the inventory.

Second thing is that, because of this GST rationalization, this should help a better working capital cycle at the manufacturing end because we were paying our GST at 28%, while the input credit on most of the raw material was at 18%, and we were able to recover the 10% additional GST only at the time of collections, which used to be about 60 to 70 days post the sales. Now that will be also going to be better in the second half.

All these things put together, we are hopeful that second half will show a good operating cash flow, and also a decent free cash flow should be there because, in the first half, almost ₹377 crores of CapEx has already been done, and second half remaining CapEx will be, we hope, should be coming out of the inventory rationalization which we will have. Sure, sir.

Sir, secondly, sir, on the guidance part, sir, you are maintaining your guidance for full year. How much of that is due to the BEE rating change is happening next?

BEE rating was actually known at the time of the guidance when we gave after the first quarter also, there is nothing new in that. We have built in a decent amount of growth which should come from December onwards because the BEE rating and overall business also, and that has been accounted for.

Right, sir. Right.

Thank you, sir. Thanks a lot.

Thank you.

Good evening, sir. Thank you for the opportunity.

The first question I have, if you could talk a little bit about, you did make a comment with respect to the industry decline, but just to be clear, what has been the decline for the industry in terms of the primary sales and secondary sales volumes according to your estimate? Also, if you could touch upon the—hello?

Yes, yes, please.

Yeah. If you could also touch upon the inventory situation for the companies plus the channel put together as of September-end, as of now in your estimate?

See, primary sales have degrown by around 20% to 25%, but secondary sales have seen a deeper decline. That is why we are seeing an elevated level of inventory in the channel.

See, we don't have very accurate data on the channel inventory, but our estimate is still, I think, as of 1st November, it should be anything between at least 1.5 to 2 million, sir, at least. That is the number our estimates are there.

This would be usually what number, what that—

Normally what happens every year during this time of the year, in months of November, December, normally all the brands do a lot of schemes and give a lot of discounts, and a lot of primary selling is done, channel filling is done. Maybe we might see a little slowdown or maybe little late pick up in this channel filling because of that overhang of the last one or two quarters.

Having said that, because of the change in the energy rating, so that opens up some opportunity for this channel filling happening. We have two things: one, energy rating change, which will push up the channel filling, and there might be something, because of the channel is already choked up, there might be some pushback from the channel from taking any further inventory.

That we have to keep evolving. As far as we are concerned, sir, the kind of forecast we have got from our clients, we are quite confident that December, we are seeing a good production.

The dispatches are also started, but they will start pick up by end of this month or December first week. Then Jan, Feb, March also, the outlook what we have received from our clients looks quite healthy.

That is why we are able to maintain the guidance what we have given in the first quarter.

Got it. The second question I have is with respect to the pricing.

Given we will be now in discussion with the customers with respect to the pricing, if you could talk a little bit about, given the cost has seen increase, what is the extent of, first of all, increase in the BOM? B, how does the pricing will work out according to you, given the inventory situation?

Yeah.

See, everywhere the competitive intensity is very high right now at a manufacturer level also, at a brand level also, because everybody is stuck up with inventories and everybody's trying to clear off their inventory. Competitive intensity will be very high at least, I believe, till maybe till end of January or February.

Right. If you could talk, what is the extent of cost increase and how do you see that pricing playing out or margin playing out?

I think I have answered this question. Why?

Because, let me tell you, I can't give you such number because pricing depends on the commodity and the exchange rate. Having said that, since competitive intensity is very high right now, you may not have a very high bargaining or leverage on the pricing with your clients, and brands may not also have with the channel, and channel may not have with the consumer.

It's a whole value chain which is under pressure right now.

Got it. Just one clarification on the CapEx, if you could just lay out the plan in terms of '26, '27, '28.

See, '26 you have said ₹700 to ₹750 crores. If you could spell out which location, how much is going, and similar details if you could talk about '27, '28, that would be very helpful, given the number of locations we are looking at and number of things happening.

I think that would help.

'26, we have spelled out very clearly ₹700 to ₹750 crores of CapEx is going to be there, out of which, as Vikas ji mentioned, almost half of it, which is ₹300 to ₹350 crores, will be for refrigerator, which will be happening in Sri City. Then there is the 100-and- ₹100-odd crores which we are going to be spending, which is almost spent in washing machine business in Greater Noida.

There is ₹200 crore which is getting spent in RAC business in Supa as well as Bhiwadi. You can assume about equal, ₹100 crore each.

Rest will be actually spent in Bhiwadi only, in a new plant which we are creating for tooling as well as coolers and some specialized plastic molding. That is the breakup that we have.

Sir, how about next year?

Next year, we will be able to update you in the quarter four at the end of the quarter four, but I can assure you it will be much lower than this year. It will also depend on the business plan and opportunities which we foresee.

As of today, we think it will be probably much lower than what we are doing right now.

Understood, sir. Just last question, if I may, with respect to the applications, how many applications have we filed under ECMS and in what aspects, if you could clarify on them as well?

Vikas ji, can you please take this question?

Yeah. We have filed the ECMS applications in four, five different component categories through our JV entity, Goodworth Electronics.

That is under camera modules, display modules, mechanical enclosures, some, I think, on the PCB side also, we have put up the ECMS application. That is still under review.

It has not been approved as of now, we are keeping a close watch on it.

Did you say, sir, PCB?

Yes, I did say PCB. PCB.

PCB. Understood, sir.

Thank you so much. I'll fall back in the queue.

Thank you.

Thank you. Hi, team.

First question is on the AC part. You have maintained the revenue and profitability guidance.

From Q1 to when we stand today, probably everyone's estimate has got cut of say primary and secondary sales because of the extended monsoon and its ripple effect. What gives confidence?

Because when back-of-the-envelope calculation suggests that the ask rate for H2 would be much higher with pressure on channel and brand to clear their inventory, and we have higher base for Q4 as well. Is it visibility from the brands?

If so, is it for Q3 or Q4? Just you can give more or bridge to how confident you are, what gives you confidence, that would be helpful.

We actually were the first one, and we actually in the last quarter itself had anticipated a very weak second quarter. Things have more or less been in our expectation, at least for us from the second quarter point of view.

Given the kind of inventory levels, etc., which were there and the way things have played out, things are actually going in line with what we expected. Now the visibility that we have is based on the order book that we have from our clients, and we are quite confident of achieving the numbers which we have guided for in the second half based on the firm and committed orders from the clients which we are working with.

Okay. Sir, second question on both AC and washing machine.

In washing machine, we have relatively lower base, but if you can just share say any specific wallet share addition or new client addition, which will drive us growth, which is higher than industry growth, both for AC and washing machine?

In AC, the same brands continue with whom we were working. We have added a couple of more names, but they will not be contributing so hugely in the very first year.

It is mainly the wallet share gain which we continue to see at our end. Similarly, in the washing machine also, it is largely the existing client where we are seeing the wallet share gain and also some share gain from in-sourcing to outsourcing, which is helping us to post robust growth in washing machine.

We hope to continue to do the same in the second half also.

Noted, sir. Sir, thanks a lot.

All the best.

Hi, sir. Sorry, my call got disconnected last time.

Sir, I just wanted to understand how are we seeing in the volume terms the growth in the ACs? Currently we are in the Q3, right?

In the Q3, one month is completed and now 10 days is completed. Can I understand are we gauging that the growth is coming back towards and how about the branded players on what their inventory levels are currently with them?

There are two parts to the question. One is, what do we see the volume growth for the industry, first, and second is, how do we see the volume growth for us?

See, probably the industry, on a full year basis, is likely to remain flattish in our opinion. In our case, in the first half, we had a growth, a very small growth, despite the industry seeing a decline.

In the second half, we hope to have about 15% or so growth in the overall volume largely due to two or three factors. One is, obviously, we're gaining some wallet share.

Also, we continue to see some of the brands with whom we work, they are gaining market share in the marketplace, and they're growing faster than the industry. That is leading to a better volume growth at our end.

These two factors are actually helping us to hope for about 15% kind of a overall growth for the full year in this AC business.

Got it. Sir, my second question is on the CapEx part.

Currently this year, our CapEx is ranging in ₹700 to, I think, ₹750 crores. Majorly this CapEx is going for the refrigeration part in the South India, but other part of the CapEx, where exactly is this going?

What exactly the components which is going on?

I told you about it. Almost ₹100 crores has gone for washing machine business in Greater Noida.

Then ₹200 crore is probably equally split between Supa and Bhiwadi for AC business. Then we are also actually putting up a new plant for coolers tooling basically and some specialized plastic injection molding in Bhiwadi again, in Salarpur.

This is a different new plant which we are setting up. There we are making some CapEx.

Rest that is the way it is broken up.

Perfect. Now majorly our concentration was coming from AC.

Now we are more diversifying into our more product. The group will be on the normal side.

Is my understanding right?

Yeah. The diversification is a part of the strategy.

We are looking to reduce our percentage dependence on AC, which will actually start becoming much more visible from financial year '28. '27, only fourth quarter the refrigerator will start actually contributing maybe to some extent, but we are trying to get into and grow faster the existing non-AC business, and also we are focusing on new segments which can actually help us take care of the seasonality and the off-season, especially for the room AC business.

Thanks, sir. Thanks for this.

Sir, thank you for the follow-up opportunity. If you could talk a little bit about plastic molding business, that's seen fairly strong growth for last three, four quarters.

If you could elaborate a little bit in terms of what is driving, what is the outlook, what kind of margin, and what is the capital deployment here, please?

As we have been highlighting that the plastic injection molding business, we have not been pursuing very aggressively. Although I must highlight that, this quarter, there was not much growth.

There was, in fact, a small decline in the YoY basis not because of volumes, but because the pricing is down there because the raw material prices have come down, especially the plastic there. That has led to about some decline, although earlier on the first half basis, we have seen a very small, about 10% kind of a growth in that business.

That is the component business for us, including plastic and other components. There we are not trying to pursue or go after that business on a dedicated basis.

We're not putting up any capacities or any new capitalization is being done there, only in very specific, certain areas where we have focus, where we think the capital allocation makes sense, and it meets our basically criteria of ROIC and ROCE, we are putting in or allocating capital there. To take care of the off-season business and when we have excess capacity, there some of the businesses are being pursued so that, if we have to make some small CapEx to take and supply some components which we can do from the facilities where we have off-season excess capacity, we are trying to gain those businesses.

As such, we are not been allocating much new capital to the plastic component business on a stand-alone basis.

Got it. If you could just clarify, what is the number for the plastic molding business for the second quarter and the first half, sir?

Second quarter, the number is about ₹211 crores, and for the first half, it is ₹485 crores.

Okay. Understood.

The second question I wanted to understand, is there any opportunity from exports perspective which we are pursuing in any of our product categories and any visibility you could provide on that?

Right now, we do not have any large opportunities. There are some small opportunities which we are pursuing, but they're nothing to talk about, and they're unlikely to contribute anything significant in the short term.

Got it. Wonderful.

Sir, just last question, with respect to the following up on the ECMS applications, any thought if this was to go through, what kind of capital it would require to be deployed?

Vikas ji, can you please take this? Yeah.

Please understand, the capital allocation will depend upon once our applications are approved and once we are able to tie up with the technology partners. That is too early for us to give any kind of a color on that, what will be the amount of investment that we go into that.

Once we are able to get the approval of the applications done, second, whenever we are able to get the technology partner, then we'll be able to update you on that.

Got it. This is helpful, sir.

Thank you so much.

Hi, sir. Good evening, and thank you for taking my question.

My question is around demand after the GST cut. It's been about a month and a half, and we also had the festive season.

Then how has demand for the end user shaped up since the GST cut?

See, at our end, we do not have a firsthand experience. From whatever we have been hearing from the brands is that the off-season has nothing spectacular has or unusual has happened because of the GST cut yet.

Probably it'll help a bit when the season starts. See, in India, largely AC still remains largely an impulse purchase product.

It is not a planned purchase. Therefore, even when the prices have come down, the spurt is probably not seen yet.

We are very hopeful that, given the fact that GST has been cut, the penetration-led growth will start to see good improvement, especially in the second half this year, and probably in the season in the first half next year when the season starts. Right now, I can say there is nothing much which has changed.

In that context, where consumer demand hasn't picked up and channel inventory is still somewhat elevated, would the pick up in our growth be more back-ended more towards the summer season and less in the winter?

In our case, there are two other things which are playing out as we were elaborating. One is that there is a BEE rating change, and there is a inventory which is going to be built up for that in the month of November, December.

Also, as I was telling earlier, that we are working with certain brands which have been gaining market share, and we are seeing a wallet share increase in certain of them. These two are helping us to, show a decent volume pick up, hopefully in the second half.

I think, yes, it will be more back-ended maybe, but not solely in the month of February, March. It'll be some spurt should come in the month of towards the end of, in the December, and then probably February, March we'll see a spurt.

Right. That's very helpful.

Thank you.

Thank you.

Yeah. You're audible.

Yeah. Sir, good evening.

I have a couple of questions. Sir, first, could you please throw some light on brand strategy, RAC brand strategy?

Are they focusing more on manufacturing in-house or outsourcing, sir? This is an endless debate, and there is a view certain people have, and certain analysts believe that it is going to be more in-house, and certain analysts are of the view that outsourcing will continue.

We are a little biased. I'll make it upfront because we are dependent on outsourcing of the brands.

We continue to believe that, in a highly seasonal business where exports are not so much there for the Indian brands, actually it doesn't make a lot of economic sense to do their own plant and do the manufacturing in-house, because capital efficiencies are low for most of them. For any single brand.

Given the fact that if you want to put up backward integrated plants, they are capital intensive. The value accretion or value creation from doing into heavy CapEx is actually not visible even in most of the brands which have put up their own capacities, in our opinion.

Sir. Got it.

Sir, on the washing machine side, are the margins better than RAC, and where do you see the product shaping up going forward in future? Margins are, yes, slightly better than RAC.

What is the second question? What is the volume, how do we see the volume catching up, right?

Yeah. How do you see the demand growing up in washing machine?

See, right now, we are gaining wallet share in certain clients. We are actually a beneficiary of increased outsourcing in that space, and we're gaining some market share from shift happening from in-sourcing to outsourcing.

We continue to see good volume growth at least in the foreseeable future in the medium term. We have, therefore, expanded our capacity, invested significant money in expanding the capacity, a new plant has been constructed in Greater Noida for that.

We remain fairly optimistic going forward on the washing machine business. Sir, any percentage of total revenue you are targeting that should come from washing machine?

We will like washing machine to contribute about something like 15% or so in the medium term, and we are working towards it. Right now, it is this year probably just about going to be 11%, 12%, and we are hopeful that, in next 2 to 3 years, it should reach at about 15% on a much higher number for the overall company's revenues."

Great, sir. One last question, sir, on the new energy norms.

What would be the effect on the older inventory and the realization per unit of the new inventory, sir, that would be manufactured? From manufacturing point of view, it is not going to have much impact.

The inventory which we are carrying right now is largely for raw material. Finished good inventory is very minimal, and most of it, almost 99.9% can be actually used in the new energy rating as well.

We don't see any impact on the inventory that we are carrying. That is point number one.

Point number two is that, in general, we have seen the prices of some of the raw material have gone up largely because copper and aluminum prices have gone up, and also the currency has depreciated. From that point of view, there is going to be a pressure on most of the brands to actually increase the pricing of the existing and new models because there is a cost inflation which is there in the key raw material.

Understood, sir. Thank you so much.

It was helpful, sir. Thank you.

I'm audible, sir?

Yeah. Yeah.

Sir, just a question on bookkeeping. I was going through our half-year balance sheet.

Our debt has increased from ₹301 crores to ₹482 crores, short-term and long-term both. I was just checking on the Q1 numbers.

Q1, our finance cost was around ₹34 crores, and right now it is ₹16 crores. Can I have an understanding how our finance cost has almost gone down by 50% whereas our debts have increased?

Yes, actually we explained this very well in the last quarter itself when we had, given a outlook for the full year and this quarter. See, last quarter, we had some liquidity challenges because, on one hand, we had a high inventory, and on other hand, we were also facing some challenges on our receivables because receivables got delayed because of the lower sales of some of the brands.

We resorted to two aspects to take care of that. One was to basically basically discount some of the receivables.

Also, on the payable front, we extended the payables by honoring our LCs while resorting to buyers' credit, and that led to some of the finance charges getting upfronted. That actually was almost close to ₹20 crore, as I explained last year last quarter.

That was the one-time thing which happened. If you knock off that, then you will come to the conclusion what I'm what the numbers are showing actually.

I guess so, sir. Just a question on if you can let me understand what are other expenses consist of?

See,

the other expenses have several heads, but key out of them are basically things like transportation, logistics, inward and outward logistics, some of the other admin fees, etc. I'll just read out for you what all we take into the other expenses, and also forex loss and gain is also one of the component in other expenses.

The key things are Just give me a second. Basically rent, rates and taxes, subcontracting expenses, power and fuel, repair and maintenance, travel and conveyance, vehicle running and maintenance, communication cost, printing and stationery, security expenses, legal and professional fees, director sitting fees.

This year, the big swing has happened largely because of the forex. Almost there has been a ₹9.4-crore kind of a swing.

This year, we had a forex loss of ₹8.4 crore versus gain of ₹1.2 crore last year.

Right, sir. Then just one last question on our margins on the call that we have had that we could possibly do the revenues that we have guided for, is there going to be a margin pressure in terms of if we have to fulfill our targets?

See, the margin guidance is actually built in the numbers that we have guided for. We are aware of what we need to do, and after doing all the consideration only, we had given the net profit and sales guidance.

Yes, right now, as Vishal ji had explained, the whole value chain in the AC business is under pressure because the high inventory and last year or the last season not going well. We are hoping that from January, February onwards, things will start easing as the season starts.

Sir. Thank you so much.

Thank you.

Right now, our capacity in AC is almost close to 3.5 lakh ACs per month on the split side and about 50,000 ACs on the window side. Once by December, we are hoping to increase it to about 4.25 lakh in the split side and 50,000 in the window side.

In washing machine, the capacity is already expanded, and we have about close to 2 lakh washing machines per month capacity today. In coolers, it is about 50,000 coolers per month.

Okay. After the CapEx is incurred, what would be the new capacity if we are planning?

See, CapEx in washing machine is almost completed. AC, as I told you, it will go from 3.5 to 4.25.

Coolers, right now the capacity is about 50,000 per month, but we are not going to see a increased capacity benefit in this year. That will be probably visible much more in the next year.

We will be putting a one line probably of 25,000 per month in the new plant.

Sir. Thank you.

Thank you.

That EV thing is getting delayed, and our partner, for whom we were supposed to start manufacturing in India, they're not able to get their motorcycle approved from ARAI. At the same time, they have shifted some of their focus to Africa market.

They are trying to grow that business in Africa market. They already have a strong presence in Africa, and at the same time, but I can feel that they have shifted their focus to Africa market.

Coming back to your compressor thing, we have stated in this call earlier also, we are still waiting for the approval that our partner is waiting for approval from the China government for this compressor thing. We are still waiting for that only right now.

Okay. All right.

Thank you.

I'd like to thank you all for sparing your time, and we are available to answer any further questions you may have. Thank you.

Thank you all.