Good evening, ladies and gentlemen. I hope I'm audible because I could hear a little bit of disturbance at the organizer's end.

Just to take you through the quarter and the year, and I'm sure there'll be many questions later for the current scenario specifically due to ongoing geopolitical reasons. As far as the quarter is concerned, the domestic demand saw a gradual improvement during January and Feb on account of increased domestic demand reducing the pressure from exports.

There was a little bit of a recovery in January and Feb. Obviously, March was a very aberration month because of the various circumstances which played out geopolitically.

Overall, if you see, the exports did increase from last year. It would have touched about 18,000 crores for the industry, but it got stopped at 17 and something because 17,000 and something crores because of the March outage, where nothing really went were got or sailed in March.

Gas price, as you all know, has increased very significantly, which we can talk about that. I'm sure there'll be a lot of question-answers around that.

As far as we're concerned, sales growth has been about 6% in Q4 and 5% for the entire year, slightly better than last year. EBITDA's improved quite significantly, 3.2% in Q4 and about a percent in the entire year.

Capacity utilization was largely flat from approximately 80% to 79%. It is largely flat.

Of course, in the quarter, it improved to 82%, but otherwise it's been largely flat. Max plant, there's good news there that we almost did a breakeven at Max plant.

Corresponding quarter last year, the same quarter of Q4, the loss was about 9 CR. From that we've been able to break even there.

That's as far as capacity utilization is concerned for the year to it about 79%. Sales came in with a 4.8% growth and a 6% growth like I mentioned, 5% and a 6% growth like I mentioned.

EBITDA for the year is 9.3 and for the quarter was 11.4. If you see the tiles volume, we have increased our GVT sales by 3% and there's been a reduction in the ceramic and PVT by 3% corresponding.

Sanitaryware has done fairly well. We've grown by an 8% for the entire year, and we have closed the figure at 320 crores up from 296, and this year we've taken a very aggressive target, a very aggressive double-digit target.

Gas pricing overall before the war broke out was pretty much constant. There was no major changes in the gas prices, a rupee here or rupee two, basically based on the rupee-dollar conversion, right?

After that, obviously it has gone up very significantly. As far as our business is concerned, our brand spend has been about 2% for the year.

We got rid of the superstar, and therefore it's slightly lower because of that reason. Working capital, we've done fairly well.

It's marginally lower by four days to 9 days. We've had a very good debtor collection.

That particular figure is at 40 days, down from 51 days and 38 days on a standalone basis. The net dealer addition has been very strong this year.

We've added net new additions of 200 dealers across India, taking the total dealer showroom to about 3,100. That has increased in a very significant way.

Now for the guidance, the caveat is that no further shocks geopolitically, but otherwise our guidance is to improve EBITDA margin from here at least a percent and a half or more. Brand spend will also go up a little bit, although in percentage terms we will maintain it, as we have taken aggressive growth on our top-line growth and the value volume growth.

Input cost increase currently has been passed on to an extent, and we can talk about that in the Q&A. This is as far as our highlights are concerned.

I would leave a lot more time which we normally wouldn't do, we would give you a complete synopsis of where we are and what we are, but I'm sure there will be a lot of Q&A for the current situation. Overall, we're happy in this whole situation the old saying that somebody's loss is somebody's gain.

I think as far as the industry is concerned, the branded players, the organized players are to gain from this disruption provided there's no further disruption in this regard. We are to gain from this disruption because a lot of the capacity in Morbi is shut down, and everybody is now buying from the same source of gas, unlike earlier times where they were buying LPG and propane and that OEM gas and various other sources.

This is again a positive for the industry. The other positive for the industry is that our pricing has been narrowed between the small-scale unorganized players and the branded players.

Overall, I hope this discipline continues. If it does, then there will be definitely better days for the tile industry.

That's the highlights from last year, and I would now leave the floor for Q&A.

Hi, good evening, sir, and congratulations for super strong balance sheet improvement. First question is related to receivable days.

Instead of coming down, and working capital coming down, how sustainable is this improvement, and where can we see the numbers in '27?

Receivable days, once you get it down, then you start monitoring a lower number. We hope that receivable days remain around the same area.

It may increase a day or two, but we would want to manage it in the same area. As far as working capital is concerned, a lot of our stock which you may not see going down here, but a lot of the stock from our outsource vendors have gone down substantially, which makes a lot of difference in the number of days, so that puts less pressure.

Even from our own plant point of view, a lot of the old stock, the over 180-day stock, etc., some other stock which was not so saleable got sold during March. That's again a big relief.

Again, once the stock levels are at particular level, we start monitoring and learn from mistakes, we should be able to control this. I don't know from a sustainability point it's a question mark because currently we're seeing that there's been a delayed response to price increases in April, April was a better month for us, but was nothing great from the point of view of such large price increases people take time to absorb.

Labor was also not there. Let's see.

The net-net is that the tile is a product which will not be fungible with other flooring or wall material, there will be a pent-up demand even if it's delayed demand. We're running plants at 100% capacity.

In the interim, it may go up, but finally let's not forget that one month or 30 days of stocks have gone out of the market, so that will come back. Like I said, this is not going to be replaced by a marble or a stone or a wood or anything else, good news to come in future.

Understood, sir. Secondly, while you, of course, mentioned the April month and how is it going at the same time with price increases, what I wanted to understand was can we break up Jan and Feb with March?

Just want to see how the demand is panning out in Jan and Feb ex of crisis. You did mention some amount of improvement happening.

Just wanted to understand how would have been the volume growth in Jan and Feb.

Yeah. If you remember even in the last call I had mentioned, which was in January, that December being a very, very heavy month and we pushed a lot of material in December, Jan normally would have taken a dip, but we grew at decent single digits in Jan and also in February.

From that point of view, we did see some uptick. March also we didn't push too much material.

We wanted to move the material off the vendors first, from our non-joint venture vendors, because there was a chance of they increasing their prices in April, and that would be on us. Therefore, our focus was to remove that stock.

In March also, we did not really overly dump material. Jan, Feb decoupled from March, we saw decent growth considering if December was a very heavy month.

Understood. Lastly, gas pricing.

What was your north, south, and west pricing for Q4, and how is it currently, if you want to frame?

Sneha, Q4 would not be of any significance because from 9th of March it shot up. Like I mentioned, that if it was not for the war, then the Q4 prices were pretty much standard to Q3 other than the rupee-dollar small movement, right?

There was no significant increase had it not been for March. If you can clarify what do you want me to tell you?

The gas

prices, yeah, yeah. Both would be actually appreciated even if considering the March impact or just the Q4 and recent pricing that you are getting, pure gas prices that you have in north, south, and west.

For Q4?

Yes, Q4 as well as the current one.

Current is so extremely volatile. That I'll come to.

That may be a larger debate or larger discussion, but otherwise if you see, Q4 is largely flat, had it not been for the March last 15-20

days.

Let me give you the FY26 and FY25 prices because that would give you a better idea. Right?

Sure. Sure, sir.

If you want

Q4, I'll go to Q4. Q14 Kassar was in the mid-40s range and in Q4 it was 48.

Morbi was again in the mid-40s range, it was 46. In south, it was 55 in Q5, it went down to 50 rupees in FY26.

If you see, mid-40s and one was 50, largely common. If I see the whole year pricing, it was 43 from Q5 for the north, it went up to 45.

For the west, it was 48 and 48. For the south, this was 51 and 51.

Absolutely flat.

Wonderful. Got that, sir.

This is, let me clarify, only gas pricing. This has nothing to do with our other fuels which we use, such as

Biofuel.

Yes, yes, biofuel, correct.

What portion of your fuel usage would be biofuel in case you can give that? We'll get to know the benefit also.

It's the same as last year. Nothing has changed over 2 years.

It's identical to what we were using. We've not moved any other plant to biofuel.

I don't have the numbers off my cuff as to exactly how much is percentage of the biofuel versus gaseous fuel.

Understood. Lastly, in case I can, I know I've exceeded five, in terms of Morbi, what are they currently using and what would be the gas pricing currently only for Morbi versus, say, your north plant, just to understand that difference?

Yeah.

The Morbi pricing is currently 70 for May, the pricing is ₹74 plus 6%.

For May.

I think it's 74.1 or 74.2, something like that, plus 6% is the pricing for Morbi, and we are using GSPC gas, and we have been using GSPC for the last so many years. We didn't move to propane or LPG any which ways.

Right. North would be how much average, May?

North would be about ₹3-4 cheaper.

Got that, sir. Thanks.

Thanks a lot, sir, and all the very best.

Thank you. The

Hello? My first question is with regards to current scenario.

Is there a particular point wherein we feel that it's probably not feasible for us to run this tile business, our EBITDA margins much higher than what it would usually do. Secondly, considering the current scenario as the base, if it's to remain there, then how much kind of an upside we are looking at the FY27 numbers?

Upside on the '27 number. '27 number, we should be able to get a decent single-digit growth in terms of volume.

Value, obviously prices have gone up, very difficult to say how much the prices will stay, and when the gas prices go down, whenever it goes down, prices will go down, difficult to give you a prediction on the value number, but otherwise volume will be in a very decent single digit for the tile business. For the sanitaryware and adhesive business would be in very healthy double digits.

Okay. About the first thing that have you done any study or analysis on is there a point wherein it doesn't work for us to function, actually because the cost of gas has gone up, when we are not able to pass on the cost?

What you are trying to understand is if there is a tipping point to increase in price beyond a point where if you're not able to increase the price and pass it on, then we cannot run the plant. Is that what your question is?

Yes. Yes.

That's my question.

The last 2 years is that the tile prices have gone down fairly significantly over the last 2 years by about 15% to 20%. About ₹3 to ₹4 maybe ₹5 to ₹6 the prices went down in the last 2 years.

Today, even after the price increase, we are pretty much at the historic price which was there 2 years ago. From that point of view, there has not been a very inflationary change as far as a builder is concerned or as far as a customer is concerned.

He was taking advantage of this over the last 2 years, I think tile still being the most cheapest material for the flooring and wall, like I mentioned, there is no alternative to a tile, I doubt there would be that situation where it won't be viable to run the factory. Obviously, caveat is that the doomsday war doesn't come up.

Oil jumps up to a $200 or something like that, that I can't envisage, but at the current scenario, I don't see the factory shutting even if it had to go up by another 10%-15%.

Okay. Thank you.

Just a small technical question, you spoke about the square and the sanitaryware section, is it fair to say that since we have certain volumes coming from that segment, we are getting a little more traction than probably a pure play tile player would, or we are [unclear] able to get this crisis because we have some additional value-added thing which is probably giving us a little more margin than a plain vanilla tile player would?

More sanitaryware and adhesives give that better margin, and we are able to accelerate that growth because we are growing with the same dealership, I don't have to make new relations, and only 25% of our current dealers are dealing in sanitaryware, our sanitaryware. That's the scope, that's the headroom which we have to accelerate our sanitaryware business.

Hence the double-digit growth.

Correct.

Okay. Thank you.

Hi, am I audible?

Yes, please go ahead.

Hi, sir. Thanks so much for the opportunity, and congratulations for the good set of numbers.

Sir, I just wanted to check that we have been hearing that Morbi has recently started getting gas supply from 1st of May, and it's been 15 days now. Just wanted to check the status of how the plants are running with respect to the key factories operating out of Morbi, and what's the average capacity utilization of Morbi that has been or do you expect to increase in Q1?

Yes. You're absolutely right.

From 1st of May, they've all got gas. There's enough gas being supplied to Morbi at ₹74 plus tax, which I mentioned to Sneha.

The situation currently in Morbi is that whoever has started up is facing a little bit of challenge with labor. There's a major, major, major, major labor shortage in Morbi.

As a result of that, as we speak today, approximately 60%-65% of Morbi is up and running, and I believe by the end of this month, the number would reach about 85%. So 85% of Morbi would start running to capacity.

The balance 10% to 15%, I don't think will run ever. My guess is they would shut down if they can't run now where everybody's passed on prices, I doubt they will be able to run their plants because they're extremely inefficient.

Every time somebody increases prices, an inefficient plant has to increase that much more, which is anyway not being absorbed by the market. If you see what is happening in Morbi, Morbi has increased prices by about 30%-35%, which means that the organized players have increased prices around 16% or 17% because we were that much more expensive than Morbi.

In percentage terms, our increase is lesser, hers is there. With that kind of a sharp increase, they are having trouble facing demand.

Demand is weak currently, like I mentioned earlier in the call, that people are waiting, general sentiments are down, plus the labor is not there for laying the tiles. Therefore, we believe that the demand will come in as a pent-up demand like we had after COVID.

It could come by this month-end or in June, but it would come in because tile does not have any alternate, plus there has been a 40-day gap, which is pretty much an entire year's growth has gone off the grid, which cannot be made up. I believe that Morbi it will be a very testing time for them post-July as to whether they will be able to hold their plants running with expensive gas and piling up stocks.

If demand doesn't come back in June in a very, very significant way, Morbi will be in trouble. In fact, as far as we're concerned, also maybe couple of our plants we may have to shut down due to stock, but overall we are currently running at 100% capacity as we speak.

Sir. This was extremely helpful.

Sir, like you said that you're operating 100% capacity utilization, is this across plants in the country or is this specific to Morbi?

No, it's across the country. There are certain plants which we had taken decisions to shut down in terms of our product mix, there are a couple of kilns which are down, which we do not consider it's there as far as our capacity, but when we say 100, we're not considering that.

Other than those non-value-added kilns, everything else is running across the country at 100%.

Understood, sir. Sir, given that 75% of your capacity of 75 million square meters comes from outsourcing, and like you just mentioned that Morbi will be troubled and it can face some challenges of demand or the price pass on option is not placed very well, will we expect any deterioration in your volume growth in the outsourcing part as well in FY27, and that can be covered by your own and JV plants?

Currently there are a couple of plants which had gone down and we were not getting material, we're building up stocks there. I don't think we would have that much of an issue because our plants are generally OEM plants and they're OEM-ing to other large manufacturers, chances are that they would keep running unless demand has an issue with some other geopolitical issues.

Otherwise these plants which we were facing volume issues in April because there were four or five plants which we were buying our material from and they had no material to give us, that will come back in May in terms of material availability. Yes, we're keeping a watch.

I doubt there would be that situation for the plants which are these OEM plants for large organized players.

first of all, I wanted to congratulate you for great numbers and rock solid balance sheet, and great job on working capital too. Sir, now, going by your commentary, it seems that going forward, we are set for revenue growth in somewhere in the mid-20s, because if we take roughly 15% price hike and add roughly high single digit volume growth, then that's where we reach around mid-20s kind of revenue growth, sir.

Is that understanding correct?

Yes, if the prices remain at current levels, then anywhere between 20% and 25% would be the revenue growth. Obviously, if the gas prices towards the end of the year had to crash back to original levels, I can't predict that.

In that case, the prices will obviously drop. If you factor that into consideration, then I don't know what it will be, but at steady state you're absolutely right.

Margins should, like you already mentioned, from 11.5% we can probably go to low teens kind of margin or even mid teens kind of margins?

No, I'm talking of margin improvement from the 9. 8% 9.3% base to improve it by 150 bps and more.

Understood. Sir, lastly, sir, now the market leader has announced a share buyback of 300 crore and, sir, our stock is also at very decent levels and our balance sheet is far more stronger, we are almost debt-free, sir, don't you think it's opportune time to do a share buyback?

Unfortunately, we are consolidating our wholly owned subs, and therefore there is an embargo from SEBI. We can't do a share buyback for the next 6-8 months, but we'll see after that as to how the war progresses.

Currently, we can't do it for that reason, and therefore the promoters stepped in before the trading window shut to buy some stock.

Great, sir. Thanks very much, and best of luck.

Hi. Thanks for the opportunity.

Sir, would it be fair to assume in Q1 and going forward this year should be a good year for organized player as you highlighted, Morbi was shut and all the unorganized Morbi was shut in April, possibly the organized players could gain market share? Going by the commentary, ideally April should have been a good period because Morbi was shut, but commentary has been April has been a bit on the slower side.

By slow, you mean April the volume had declined?

April has been slow for two, three reasons. A, we did not get quite a large portion of our material which we normally would have bought from Morbi, because those plants were shut.

Our volume did not get up. That was one reason which we had no handle over.

Other than that, we had a price increase of approximately 15%-17% and Morbi of 30%, consumers take a while to absorb this kind of price increase. Thirdly, we have dumped a lot of material as an industry, not Somany, but generally as an industry a lot of material got moved to the dealers, and the dealers were also cautious.

They didn't want to get stuck with higher value material in case the war had to stop and the prices had to go down. It was their fear, obviously an unfounded fear, but there's only so much you can explain to them.

They also doubled down on removing their stock. All of these three reasons, April was for us, it was a little bit of a growth, but it wasn't a flat month.

Normally, April, let's put it this way, it was like a normal April with a little bit of growth. I don't know about my competition, but we had a little bit of growth, very happy about that.

Understood. Got it.

The last question from my side, it will be fair to assume whatever the gas price hike and other price hike we might be seeing because of this inflationary situation, entire cost escalation is passed on, nothing will hit our margin. That is a fair assumption?

Secondly, when you take a 10%-15% price hike, possibly let's say the 15% price hike is taken to pass on the entire cost escalation, in a way margin can get diluted in a percentage term, maybe not on per sq ft basis. How should we read?

We have taken almost an entire price increase. There is obviously something which you absorb as far as projects are concerned, but if you discount the projects, which is approximately a 17%-18% business for us where we have been able to pass on about 85% of the cost, but in the retail we've been able to pass on 100% of the cost.

Got it.

Thank you.

That's it from my side. The

Thank you so much, sir, and congratulations for a great set. Sir, my question is that we have achieved near [unclear]

Yeah. Okay.

Yeah. My question is that at Somany MAX plant, we achieved the breakeven, is it sustainable, or is it one-off segment or Morbi disruption that supported us?

No, it's at Somany MAX we've achieved breakeven, and if you see our inventory going up, a reasonable amount is also due to Somany MAX because we produced more and we've put more material in Somany MAX when we put the new press. Somany MAX is clearly sustainable.

Last year the entire loss of Somany MAX was down by 6 crores from it was 27 crores last to last year and went down to 21 crores, and we believe what we had said in the beginning of the year that this loss will be under 10 crores or maybe a breakeven. We have yet to see that.

Substantial improvement in Somany MAX, and next year, if not next year, next year it will be in positive.

Okay. What is the utilization level is required for Somany MAX breakeven, and EBITDA margin?

We've put in that investment of 20 crores

to make the utilization level better in Somany MAX by putting the press. Absolutely right, sir.

Sorry, sir, I couldn't get you.

Utilization level ko improve karne ke liye, we had put in that press to make sure that we utilize Somany MAX to the fullest. That's going as per plan.

Okay. Thank you so much, sir.

Thank you.

Hi, sir. Congratulations on the margins and the Max plant breakeven this quarter.

Sir, you said 85% of Morbi should come back by the end of this month. This means 85% of those 550 units which used to run on coal gas by the end of this month?

Yes.

Sir. Sir, most of these units, who must have made us switch from propane to gas, our pricing and Morbi will be the same versus them at 74 plus 6% and we will be slightly lower?

Yes,

yes, the source is exactly the same. Everybody is getting from a single source, which is GSPC.

Any price movement upwards or downwards would be common to everybody.

Okay. The export price is the same.

Sir. Okay.

Sir, for north plant, can you give some color on what is the pricing currently like you mentioned this for Morbi?

North plant is a couple of rupees cheaper. It's about ₹4-5 cheaper because we have different formulas in the north plant versus GSPC.

It's largely the same. That's 77, 78 is the what is it?

74 plus 4 6% is 77. 78 is the price for Morbi, and about 73, 74 price is for the north plant.

Hi, sir. Thank you for the opportunity.

Sir, just wanted to understand so this quarter we did a 5% volume growth, whereas our competitors, they've done a double-digit volume growth, even some smaller competitors have also done higher volume growth. Even our realization has not grown to their extent.

Just wanted to understand what happened in our case why we could not achieve that kind of.

We focused a lot of volume growth towards our non-JV partners. There was a lot of inventory lying there.

I didn't want them to price me at a higher price, we focused there. Our inventory we kept for sale in April because prices was further going to go up in April, and this was material which was made at older pricing.

As far as realization is concerned, I think your figures are wrong. We have improved our realization by ₹6 over last year.

No, sir, I'm just So if you just want to like our listed competitor, they've grown around 0.2% whereas they have grown around 1.8%, right? That's where I'm coming from.

You mean EBITDA margin?

Sorry?

You mean the EBITDA margin?

No, realization. Per sq meter.

No,

realization overall it matters as to what kind of stocks you've sold, what kind of product mix you sold. Obviously the fact that I've sold more of my non-JVs and my outsource material, that's obviously cheaper material.

Overall, if you see, in the year, I have increased my realization by ₹6, and my stock is down by about 2.5 million square meters, which is down by about 15 days over the year. It was a strategic move to sell the non-JV material first, because they would have immediately priced it in April and asked me for a higher price for a material which they produced at a cheaper rate.

Okay. Sir, on the margin guidance you mentioned around 10.8 for the next year, right?

That's what you are targeting.

Or better.

Hi. Thanks for the opportunity.

I just wanted clarification as to how much price hike has been taken in tiles, sanitaryware and bathware in Q4 FY26 and Q1 FY26.

In tiles, since March when this whole crisis started to now, the average price increase is around 16% to 17% as far as tile is concerned. As far as sanitaryware is concerned and bathware is concerned, put together, it's approximately 8%.

We had taken a price increase in bathware in February when the brass prices had moved up very significantly. That particular price increase in February was about 18%, but currently in the month of April, a blended price increase between bathware and sanitaryware is 8%.

Okay. Also, last year the outsourced volume was 27.5 million square meters.

Can you please help to understand as to what could be the guidance for FY28 in terms of the outsourced volume?

I'm sorry, I couldn't hear you very well. Can you ask that once again?

Yeah. The outsourced sales volume last year was 27.5 million square meters.

What would be the guidance for FY28?

No, I'm not understanding. Our total sales volume was 72 million square meters last Outsource

sales volume.

Right? Outsource.

Sorry

I'm not understanding which figure are you asking.

Am I audible?

Yeah.

The trading sales volume.

Outsource sales?

Off

of my head as to what, but as a percentage, the outsource sales is 30%, but mind you, Acer and Mora are both now outsourced, which is actually used to be a JV, it's counted in outsource. Anyway, if that outsource sales is about 35%-36%.

One must discount Mora and Acer, which were no longer JVs, but entire produce has been bought by us.

Okay. Will it not get impacted because of the gas supply disruption in FY28?

No, all of those plants have started running. Effective May, all the plants have started running.

Okay. Sir.

Thank you so much.

My volume got affected in April because I didn't get material in Morbi.

Okay. Sir.

Thank you so much.

Just to clarify, effective May 1st, all plants have started, specifically our plants where we were taking joint ventures. By 15th, 16th of May, as we speak, most of them have come online.

The problem is not the gas right now. The problem for the next 10-12 days is more about the labor.

April, they were shut because they did not have the gas. May, they have slowly coming up to full capacity because of labor.

By June, it would be 100% up and running. May also, partly we did not get material, but June onwards we will have 100% material.

Hi. Karan from Asian Market Securities.

Am I audible?

Yes.

Sir. Can you share on CapEx and debottlenecking plans for '27?

Our CapEx is largely going to be on routine CapEx and also some balancing I think there's a lot of disturbance.

Yeah.

It would be balancing equipment. We are doing some balancing equipment in the Vintage plant also to make it more value-added, we reduce the losses there, in fact, become into profit over there.

Basically, it's going to be small investments, nothing of significance. Everything will be contained in the 70-80 crore rupees of routine CapEx and balancing equipment to make our assets more value-added, to move towards more capacity utilization.

Everything for us, as of now, it seems to go in absolutely the right direction where the JVs which were pulling me down should only keep giving me more profits and boost the bottom line and the top line. All

right. Sir, apart from gas inflation, what is the inflation can we see for packaging, logistics, and power fuel for this year?

The new labor code, you've seen, we've taken a one-time ₹5 crore adjustment. Plus, we've also had a new labor increase in Haryana, which again we have been able to pass on as of now.

Other than that, all the input costs which were related to natural gas has gone up. That is approximately a rupee and a half, rupee and 25 to rupee and a half per square feet of input cost.

Any other input cost which is related to transportation is yet to be seen because petrol, diesel just went up today. I'm only pretty certain that if things don't improve, this will go up even further, but that impact is still not come, I will not be able to quantify that impact.

Currently, the gas impact is approximately ₹5.5 to ₹6 and the other input cost is between a rupee, rupee and a half. Total increase of approximately ₹7 a square feet is what we see.

Depending on the plant, depending on the value addition, anywhere between ₹6.5 to ₹7 is the price increase in current scenario. This 15%-16% price

hike which you've taken covers from the entire ₹7 kind of cost escalation?

Yes, entirely, but in projects, it's slightly lower, about 15% of our business is projects, and there we've been able to pass on about 90% of the cost.

Thank you. That's it from my end.

Thank you.

A reminder to all the participants,

Hi, sir. Sir, just wanted the current pricing for our south unit.

What pricing, gas pricing?

Yes, sir.

Gas pricing current is ₹78 per standard cubic meter, but we have from next month contracted a long-term contract, so that will go down very significantly. It would be at least 18 18 17-18 rupee difference, significantly go down.

Got it, sir. Sir, margins for this year, which you're expecting from 9.3 FY26 to about 10.5, 11%, correct?

Aiming

at 150 bps plus.

Sir. Thank you so much.

Thank you so much, everyone, for your time for coming for our investors presentation. I think it is quite a boon this whole scenario which has played out for the tile industry, especially for the organized sector.

We are very, very confident this are an aberration. The war has been an aberration, but other than that, we're taking some advantage from that.

More so strategically, I think we've played our cards right of putting some investment in our Max plant and also now in the Vintage plant, plus putting some investment in our bathware and sanitaryware plant to augment that towards more value addition and better capacity utilization. I have always maintained and maintaining even now that capacity utilization is the biggest winner, and hopefully we will be much better off as far as capacity utilization is concerned this year, and with some discipline in the market in terms of pricing, I think there is some amount of consolidation which is going to happen in the industry, which at least 10% to 15% of Morbi not starting forever.

This is very good. Any new plants coming in will be very difficult because with the current rupee-dollar and the current uncertainty, unless otherwise it's already approved, new plants will not come for the next 18 to 24 months.

I hope all this has a benefit towards the organized sector. Until next quarter, I would take your leave and wish you a very happy summer holidays.

Thank you.