Thank you. Good day, everyone, and thank you for joining us on Greenpanel Industries' Q4 and FY2026 Earnings Conference Call.

We have with us today Mr. Shobhan Mittal, the Managing Director, and Mr.

Himanshu Jindal, the CFO. Before we begin, I would like to share that some statements made in today's discussions may be forward-looking in nature and may involve risks and uncertainties.

A detailed statement in this regard is available in the results presentation, which was shared with you earlier. I would now like to invite Mr.

Shobhan Mittal to begin the call. Over to you, Shobhan.

Thank you. Good evening, ladies and gentlemen, and welcome to our Q4 and annual FY2026 earnings call.

The year 2025-2026 has been a transformational year for Greenpanel. As you are aware, we added a new MDF manufacturing line at Andhra Pradesh end of FY2025, and with a long-term strategy in mind, introduced changes to re-engage and re-energize our people, our customers, and our vendors while simultaneously renovating our ways of working.

On the people front, we brought in Prakash last year in March to lead domestic sales, and brought Himanshu on board later in Q1 to lead finance. The strategy clearly shifted to customer excellence and volume scale-up, supplemented by a drive to move to a leaner cost base in manufacturing.

This was the key reason for us growing more than the weighted average volume growth of the industry, despite us having a larger base, leading to a turnaround on both operational and financial parameters over the last nine months of FY2026. During the course of the year, a number of initiatives were undertaken to support sales.

Top channel partners were facilitated in Bali in Q1, followed by the announcement of a new foreign travel scheme in the second half of FY2026. Trade engagements were amplified.

Cumulatively, more than 21,000 participants such as carpenters, contractors, and sub-dealers were connected with Greenpanel under this drive. Revamped loyalty program app was launched in June 2025.

The Mitra 2.0 app provides a seamless experience for our partners and the associated carpenter fraternity, and the active user count has increased since then to more than 18,000. New high-value products like ACWR Doors, Thin MDF, and Fire Retardant MDF were launched in the first half of the year, followed by the launch of the country's strongest, toughest, and heaviest boiling waterproof MDF, BoilPro, in the second half.

These new product launches reflect our commitment to the changing customer needs, and also support our ambition for more value and margin-accretive businesses in the future. Coming to sales numbers, we achieved MDF domestic volume growth of 29.5% year-on-year in quarter four, while the full-year growth was 16.9%.

Counting in exports, which was significantly impacted in March after the onset of the war in the Middle East, the total MDF volumes for quarter four grew by 27.8% year-on-year in the quarter, and by 12.9% year-on-year for the full year FY2026. One thing I wish to highlight is that despite the impact on exports in quarter four, our full-year volume numbers are still broadly in line with the revised guidance that we had shared middle of last year.

MDF realizations were lower by 3.6% over the last year in FY2026. Some portion of this was also attributable to the increase in OEM sales, apart from the change in product mix post-addition of the new plant at AP.

The high-value MDF product mix for the year being 43% in volume terms and 55% in value terms. On the plywood side, we had a strong growth of 18% in volumes in quarter four, as a result of which, on a full-year basis, we closed the year almost flat over last year.

On a combined basis, revenues for the quarter grew to ₹391 crores, a growth of 15.5% over the last year, while the full-year sales were at ₹1,502 crores, a growth of 7.8% over the last year. Consolidated operating EBITDA, excluding the impact of currency movement on the euro borrowing for the new plant and the one-offs impacting the results, was ₹35.4 crores or 9.1% of revenues in Q4, while the full-year number was ₹132.7 crores or 8.8% of revenues, again in line with the revised guidance shared in November 2025.

Coming to what's happening currently in the sector and the outlook for FY2027. The ongoing geopolitical situation in the Middle East is the biggest variable at play right now.

Supply chains have been impacted adversely, leading to significant escalation on cost front, especially in case of chemicals, which is 40% to 45% of our raw material cost. Timber cost side, however, continued to remain stable though over the last three to four months through over the last three to four months.

Like others, we too have announced price increase of 15% to reduce the impact on our margins. On the supply side, the overall MDF capacity in the country is 4 to 4.5 million cubic meter per annum, depending on the actual product mix offered by the suppliers.

There are a few capacity additions announced already, some portion of which is expected to become operational by mid-end of the current year FY2027. Domestic MDF demand is expected to continue at a healthy pace of early double digit to mid-teens.

On our side, we operated at 60% capacity utilization in quarter four FY2026, and thus have a significant headroom available for organic growth next year without any additional material investments. However, given the uncertainty around the war in the Middle East, I will be optimistically cautious at this point of time.

Instead of giving a figurative guidance for FY2027 for the moment, what I can share is that we will continue to pursue volume growth as the primary goal this year, with a clear intent of retaining and increasing our relative market share while trying to maintain or improve our margins over the last year. With this request, I request our CFO Himanshu Jindal for the financial and other updates.

Thank you.

Thank you, Shobhan. Good evening, all.

Since a lot has already been covered by Shobhan, and we've already circulated a detailed presentation to the exchanges, I'll keep my opening remarks brief this time. While the operational EBITDA was 4% in quarter one, with a change in our approach over the next three quarters of the last fiscal, both in terms of the volume build-up, as incidentally we grew our MDF volumes, the domestic volumes by roughly 26%, and the total volumes by 23% in the last nine months of the last fiscal.

With a clear focus on the manufacturing costs and efficiencies, we were still able to manage a full-year operational EBITDA of ₹132.7 crores, which is 8.8% of our revenues. Exceptions, however, clearly weighed on our reported EBITDA and net profits.

The adverse change rate movement on our outstanding euro-denominated borrowings had an impact of ₹6 crores on the bottom line during quarter four, with a cumulative impact of ₹49 crores for the full year. Apart from this, there was an impact to profitability as well on account of, A, the initial inefficiencies during the stabilization phase of the new line at Andhra, which was largely in quarter one, basically power and fuel consumption being higher than what it should have been; and the higher interest and depreciation expense post-capitalization of the new line.

Counting these in, our reported EBITDA for the full year was ₹94.2 crores or 6.3% of our revenues. The PBT was negative ₹43.8 crores, and the PAT was negative ₹29.1 crores.

On the balance sheet side, we continue to stay strong at core. Our DSOs at 21 days is the best in the wood panel industry, and reflects our very strong brand positioning.

Our core cash conversion cycle is at 38 days for the full year. Again, something which shows our commitment to financial prudence while simultaneously maintaining a double-digit volume growth of our business at the same time.

The leverage remains comfortable as well. Our debt has further reduced this year, although because of the unfavorable FX change, the reported net debt was ₹156 crores at the end of March.

I think we can now request the moderator to open the Q&A, please.

Hello. Hi.

Thanks for the opportunity. Sir, can you give a sense of guidance for FY2027?

What would be your volume growth? Hello?

Am I audible?

Is it better now?

Yeah. My first question is what is the FY2027 guidance for MDF volume growth and margin?

Himanshu, do you want to get it?

I'll, in fact, repeat what you said as part of your own opening remarks. See, what we are expecting, Keshav, is that this industry will continue to grow at a healthy pace, yeah, which is early double digits to, let's say, something like mid-teens.

What we are saying is, because there are multiple variables playing out at the same time now, it's a little difficult for us to articulate in terms of what the growth numbers could be. We are going to be with the market or better than the market.

Which means we will continue to pursue our volume strategy, growing more than the market hopefully, retaining our market shares, or bettering them up. On margins, you know where we were in quarter one, and from there we have grown and we've come to something like high single digit for the full year.

The intent would be to maintain or even take this up, yeah. Obviously, we also need to see more and more profitable growth, value-accretive growth coming into play.

Times are a little uncertain, for us to give you a formal figure is becoming a little difficult right now.

Understood. Got it.

Tell me one thing, the 15% price hike which you have taken in MDF, has it absorbed the entire cost inflation or more price hike you need to take?

No. Keshav, that is just about absorbed our current cost inflation.

However, of course, we're waiting and watching if there are any further significant cost increases that come into play. However, because of the muted sort of demand scenario at this point of time and the competitive pressures, we are already seeing slight discounting already happening in the market from that 15%.

I won't say that the complete effect of the 15% is already in place. Yes, the 15%, if implemented properly, would cover all the cost increases that have taken place so far.

Understood. Got it.

How has been the demand this quarter? Because such a sharp price increase, is the demand impacted?

Sorry, Keshav. Again, your line's not very clear.

I can't hear you. Sir,

I was saying, we are in mid-May and we have taken such a sharp increase. How has the demand responded to this?

Before price increase in March, there was of course a lot of stocking that had happened towards the end of the financial year. April was expected to be a muted month.

Now, I would say that finally people are coming to terms with the cost increases. We also see that building materials in general across sectors, there have been substantial price increases.

Only the critical or the priority projects are actually executing. People who are not in a rush to complete projects or to undertake new projects are sort of holding back on this.

That's where the situation remains. I won't say that the price increase has fully been accepted, and the demand is completely back to normal.

Got it. One last question from my side.

If I see your volume, even just the domestic sales growth, sequentially it is just a flattish to marginal degrowth in Q4, when the stocking has happened in March. Ideally, this should have been a good quarter in terms of volume on the domestic side.

Himanshu, can you see that?

Sequentially, domestic was flat. This is correct.

There was obviously stocking happening in the month of March just before the price increases were implemented. Yeah.

That is what I'm trying to understand. Why the volume is still flat?

Ideally, Q4 is a strong quarter with stocking happening. What was missing here?

Year-on-year numbers is looking healthy, but how should we interpret the Q-on-Q number?

No, there was a loss on the export side of our volumes for sure.

Got it.

The whole of March we were not able to sell any exports.

No, I got it. My question is just on the domestic side.

I was just talking on the domestic side the number is flat. I'm not talking about export or total volume.

You see, if you look at it even from a last-year perspective, Keshav, my volumes on the domestic front, comparing Q4 to Q3, were relatively soft. This year, the whole intent was to build our volumes, continue at least with the RMS gains that I have seen throughout the last six months, yeah, prior to Q4 kicking in.

I think, overall if you look at the nine-month holistic picture, see, quarter-to-quarter there could be aberrations. I think nine months is what has been a sweet play for us even from a domestic point of view, all right?

That's kind of grown by 26%, which is I think a pretty healthy growth rate considering where we were earlier.

Keshav, we were also, to be honest with you, in the interest of our own profitability, with costs had gone up before the price increases could take place, right? We also wanted to sort of encash on the fact that hold back the expensive material and try to sell it at a higher price in the coming quarter.

Understood. Got it.

It wasn't a free-for-all volumes. We had calculated what volumes we wanted to supply at the old prices in the market.

Got it. Quite clear.

Thank you.

Yeah. Thank you for opportunity.

My first question is related to the industry. Can you give an indication of last year FY2026, how the industry in terms of the volume grew?

See, we foresee that the industry in general grew in a mid-teens to sort of high teens kind of levels. However, this number is fairly varied if you look at across the listed companies, although the information is only out for a couple of them yet so far.

Obviously companies with a smaller starting base were able to grow at a higher pace. We can also see that there was a reduction in realizations of certain companies because of discounting structures in order to capture market share.

It sort of is correlated. The industry in general, I would say would have grown at the mid-teens to sort of high teens level.

Right, sir. Also, you highlighted a few new capacities are coming in mid of 2027.

Can you quantify how big those capacities are? I would say

Sorry. Go ahead, Himanshu.

There are two capacities that we are aware of which are going to come in in the second half. One is in Madhya Pradesh, the other is in AP.

I think the total size that we're looking at is 400,000 for the full year. Obviously, it doesn't come up at one go.

It will be a calibrated approach in terms of volume ramp-up, etc. Yeah.

You can expect some volumes to trickle in in this year, and obviously next year the capacities are fully available.

All right. Now coming to the price hike of a 15% you had indicated.

This 15% is enough to compensate the chemical price increase which has impacted your number in Q4?

Yes, that's what the earlier gentleman had also asked. Based on today's costing levels of the chemicals, this 15% is sufficient to absorb those cost increases.

However, the situation remains fluid. Chemical costs are very volatile at this point of time.

They move on a daily basis. We're also waiting and watching very carefully.

If they move up substantially, then there could be another price increase that needs to be taken, and we'll decide accordingly.

As a whole industry is taking such kind of a price hike?

Yes. I would say this price increase in two phases, which we took 5% plus 10%, has been across the industry.

Right, sir. Also, you indicated about the timber price, which were flat last quarter.

Any indication for FY2027, how you are seeing the timber price movement?

We expect it to remain fairly stable. Now many players have moved on to multiple species.

The pressure on eucalyptus, which was predominant raw material initially, has reduced significantly. With multiple species being available, overall raw material timber costs have been quite stable.

We don't expect it to move much in the current year.

Right. If you can give EPCG benefit for a quarter and a year?

Sure. This is already there as a footnote if you see on slide eight.

I'll repeat it. For quarter one, quarter one was ₹5 [crores?]

, the next quarter was ₹6 [crores?] , quarter three was ₹8 [crores?]

, and this quarter we have taken ₹6 crores as EPCG. Overall, ₹25-odd crores have been accounted for as EPCG in the year, against ₹35 [crores?]

, which was accounted one-shot in quarter four last year.

Right, sir. Thank you so much, and all the best.

Thank you.

Hi, sir. Thanks a lot for the opportunity.

Couple of questions from my end. Firstly, if I look at the domestic realizations now, they've been largely flattish.

This is despite taking a significant price increase in the month of March. While I understand that focus has been on the volumes, would we get some flavor on the realization, where are we headed?

No. Sneha, no price increase impact was actually effective in March.

All sales that happened in the month of March was still at old prices. Till the 31st of March and with a little bit of trickle-on effect, old prices were the effective prices.

There was no price increase that had happened till 31st of March.

Understood. We'll see the entire impact starting Q1.

Sure. That would also be sort of, I would say, the entire 15% would not be effective for the whole quarter because it got implemented in phases, and there was a sort of a trickle effect of old prices dispatches, which were pending, still happening.

As I mentioned earlier as well, that there is already some instances of discounting going on by certain players, and there is a possibility we might have to react as well. It's not safe to say that the entire 15% will be visible in this quarter.

Understood, sir. Understood.

Secondly on the margins front, did I hear it correctly where you said that you've done higher single-digit margin and you would like to maintain it or marginally improve it? The reason I'm asking is

No, I think Himanshu can. We want to be very cautious in giving a margin guidance at this point of time, to be honest with you, because there is so many variables at play at this point of time with the chemical costs fluctuating, export businesses completely out of the picture for us at this point of time because the freight's not letting us fulfill any kind of export business orders.

At the same time, pricing is also very uncertain at this point in time. As I mentioned, there is undercutting going on.

We're a bit cautious as to give you a long-term guidance on the margins at this point of time. We'd like to refrain from that at this point of time, at least.

We want to sit out the first quarter, wait and watch till we give you a definitive guidance on where we will stand.

Got that. Lastly on the EPCG benefits, sir, I think in one of the calls you had mentioned that we'll be having total benefits of ₹86-odd crores, of which I understand ₹60-odd crores is already taken.

The remaining ₹26-odd crores, is it due in FY2027 or can that be, carried forward in the coming quarters as well? Coming years as well.

Again, this benefit is directly linked to the volume of exports that we do. If things geopolitically settle down, we're quite certain that we'll be able to get this benefit within the current financial year.

However, if exports don't open up for a long term, then it might trickle on to the next financial year as well, a portion of this.

Got that, sir. Got that.

All the best team.

Thank you.

Yeah. Hi, sir.

Sir, my first question is regarding the industry side. Just wanted to understand what would be the MDF industry demand in FY2026?

If you can also split it between the thick MDF demand and the thin MDF demand in FY2026, sir?

Utkarsh, I think what's safe to say is that based on last year numbers, you can assume a sort of a 15% growth on the market size, which is what it has been historically growing at. Thin MDF traditionally remains about 20% to 25% of the entire market, compared to the whole 100%.

Okay. In the last Q4 earning call, it was indicated to us that India's demand was close to around 2.6 to 2.7 million cubic meter.

Over there, if we assume 15% growth, is it safe to assume that the industry demand would be close to around 3 million cubic meter in FY2026, sir?

I think so. With that growth number, yeah, I think that's what it would come to.

Okay. Of this, the thin MDF demand would be close to around 6 lakh cubic meter, is it correct, sir,

or if 20%? Anywhere between 25% to not 6 lakhs, but I would say about maybe 25%, 750 to 800.

Okay. Sir, my second question is our understanding earlier it was that the thin MDF was majorly imported.

Okay. Now the imports have virtually become nil.

Then why we are not able to fully utilize our thin MDF plant in FY2026?

You see, we set up a plant which was capable to produce thin MDF in a very optimal way. It is not just a thin MDF plant.

Now, what we're doing is our capacities are sort of fungible across the three lines. Depending on what product we produce, which market we service, which grade we are producing, we choose to produce different products in different lines, also giving efficiencies, keeping efficiencies in mind, keeping freight costs in mind, and keeping in mind which line is the most optimal to produce which product.

I think what is safe to assume in our case is total capacity utilization across the three lines. We don't have allocated line for thin MDF, for that matter.

There are instances, for example, that I am still producing a certain quantity of thin MDF in the North of India, right, because the North India can also produce thin MDF. I think it's not fair to say that thin MDF line is only for thin MDF, and why are we not using capacity because we're calculating the whole capacity utilization in a different way.

Okay.

Sir, just wanted to understand, apart from us, whether any other player is also producing thin MDF in India?

Everyone is producing thin MDF in India.

Okay. Sir, my next question is we

are

hearing from the dealers that the industry leader has started providing around 4.5% to 5% discount last week to their dealers for MDF.

As you have mentioned earlier that we might be Sorry, I didn't understand. Can you be a little more specific?

4.5% to 5% discount when, exactly, is what you're I didn't

What we are hearing that the industry leader has started providing 4.5% to 5% discount to their dealers for MDF from last week. You have mentioned that we might be taking a similar action maybe if the industry leader continue with such a discounting structure, then is it correct to understand that our margin might come under pressure in near future?

You see, these discounts are not across the board to start with. Some of them are target-based.

Some of them are geography-based. It's not a blanket sort of discount across the whole country on all products.

Certain times they're on more value-added products. Everyone modifies their schemes, and the outflow is not necessarily 100% of what is offered.

I would say that what is currently being offered or what you're hearing, I don't think it will significantly affect the long-term margins. These are modified on a month-to-month basis as well.

There's always a benefit factored in by offering these discounts, which then sort of negate the impact on the margins.

Okay. Sir, lastly, sir, what would be our capex guidance for FY2027 and '28?

Do we have any growth capex pipeline for the next say 12 to 24-month period?

I'll let Himanshu give you the capex numbers exactly. However, at this point of time, I think as a company our focus remains on our volume utilization.

As Himanshu said, we're at about 55% to 60% annual capacity utilization. The focus remains on increasing this and optimizing our sort of a product mix.

I would say that in this year, there would definitely be no plans of a significant capex announcement. What we may do is that I think next year, we will start evaluating this.

We also want to focus on strengthening our balance sheet and bringing our debt down. That would be the focus in the current year.

Okay.

The capex, in terms of what we are planning to do is just sustenance or the basic capex that is required. I think it would be something between ₹20-₹30 crores, not more.

At this point in time. At this point in time, yeah.

Yeah.

Thank you for the opportunity. Sir, my first question is, please explain this capacity

utilization for North and South plant? Sir, you're not audible, sir.

Sorry.

Hello, am I audible now?

Hello. Am I audible?

I'll rejoin the queue.

Sir, what would be our mix between B2B and say dealer channel?

Sorry. B2B and?

Normal retail channel like

See, majority of our volumes are going through the retail channel, Varun. The only B2B sales that are happening are to large format OEMs, and that would be to the tune of maybe 7,000 to 8,000 cubic meters every month, not more than that.

I would say about 15% to 20%.

Okay. Sir, on the brand aspect, I just wanted to understand given that now Greenply is also expanding significantly and obviously for a customer, it might be a bit more confusing like there are two Green brands.

How do we differentiate and stay that our brand is slightly than the, say, Greenply one? From the customer

Well, I In the MDF business, it is quite established as to what Greenpanel is and what Greenply is. Unfortunately, this is still a very influencer-driven market for the time being.

It's not an end consumer decision-making market. In those segments, we already have quite distinctive places and names within the industry.

We don't foresee a major challenge there for the time being.

Sir, on the plywood side, what is the strategy? We saw really good improvement this quarter.

Any outlook there, what is the outlook on the growth and margins?

As I mentioned last year as well, given the current situation, we definitely want to be very focused on the plywood business. We consider ourselves to be a very small player, and not a very, I would say, significant player given the size of our peers.

For us to maintain interest in this business, there's no two ways about it, we have to increase volumes. We already have certain plans in the pipeline, subject to our existing volumes being fully utilized.

This could be an addition of capacity at our existing location with a very minimal investment, and going forward, an additional investment in another location. However, I think it's too premature to decide that.

At the moment, a lot of the growth for plywood companies are also coming inorganically by way of trading. Our trading volumes are limited to the extent where we want to support our dealers to sell our main product, and we give them the trading material only to that extent.

However, that market also remains a very large market. A lot of the bigger players, their growth is coming primarily from that business, which is the outsourced business.

We have multiple avenues to explore this. Of course, our prerequisite as a company and internally remains that our existing capacities have to be fully utilized before we think about expanding in any which way.

Sir. Just last question, sir.

If you could just give us on the value-added mix in the MDF segment, how much is the Prelam and the other value-added products, what is the proportion

of that? Himanshu, would you have those numbers exactly,

or

you have a total number? Yeah.

Sure. Value-added is approximately 43% by volume in the last fiscal, 55% by value.

55%,

okay. When I say high value, it's basically Prelam, Varun.

It's basically all the higher-density products, which is exterior, high-density products, HDWRs, etc., right? Flooring, etc., all of that is high value for us.

Sir, what is the typical margin, difference between when we say Prelam or value-added versus the normal plain MDF?

Plain MDF versus Prelam could be as high as 50% also. It depends on the nature of the product.

High-density products could be as high as 30% also, right?

No. Sorry, are you referring to margins or are you referring to price difference?

No, I'm saying the margins.

It's hard to give you an exact number on each product's margins. They vary geographically as well.

They vary plant to plant as well.

Yeah. I was talking more about a price differential.

Okay.

Price differentials, not margin differences.

Okay. On plywood when we were talking, is it fair to assume that now onwards we'll be at least on 5%, 6% margins or more than that on the annualized basis, given that now this quarter we had a substantial improvement?

Sorry, I didn't get

Sorry, I Yeah.

On the plywood side, is it safe to assume that now our margins will be above 5%, 6% at least on an annualized basis? EBITDA margin for plywood segment.

We did something like 4%. Yes, if we are able to do more volumes, automatically the operational efficiencies kick in, yeah?

The advantage on operating leverage, operating efficiencies, all of that get kicked in. Yes, we should.

Okay. Thank you, sir.

That's all.

Yeah. Hi, sir.

The first question is how much price hike did we take in plywood in Q4 FY2026 or till date?

Anup, we've taken a 6% price increase on plywood starting this quarter.

Okay. Sir, how much the chemical prices have gone up at present compared to the Q4 FY2026 level?

Are you referring to like all the like chemical I mean they again they vary chemical to chemical, but I think overall I would say chemical costs must have gone up at least 40% to 45%.

Okay. Sir, what was the reason that our capex cost per unit for thin MDF unit is higher compared to the new capex announcements made by Greenply or Century Ply?

I think the primary difference would be a 100% European line compared to Chinese lines. Sorry.

Hello? Are you there?

Yes, sir.

Sorry. Ours was a 100% European investment.

Okay.

Yeah.

Sir. Thank you.

Thank you.

Hi, sir. Thanks for the opportunity.

Sir, I was looking at the balance sheet that you have posted with the results, and I can see a stark increase in the debtor days. Something which was 11 days in FY2025 has gone up to 21 days now.

Is this because your growth in the export business has been higher, or this is because of the strategy that you have been following where you want to gain market share, you have been giving higher credit period to your dealers?

Himanshu, you want to answer that? Okay.

You're right, Shruti, our DSOs have gone up. They've moved up from 11.

If you see otherwise, look at the patterns across all the quarters that have been reported in the past also. We've been operating at a 18, 20, 21 days kind of a cycle.

Yes, a part of that is also on account of higher OEM sales or higher exports coming into play for the very clear reasons that we are putting in more efforts to put up more and more volumes. Please do remember, even at 21 days, we are still far better than the entire industry, which operates at a much higher number.

Also, I think one thing to factor in would be the fact that the last week of March, the sales were abnormally high, which would reflect in that number, right, Himanshu?

Every quarter that happens. Every month, every quarter, that's a similar pattern.

March was abnormal.

Because of the price increases coming into play. Yes, you're right.

Otherwise it could have been a little, then the sales would have been. So

Understood. Sir, secondly, in your presentation, you have mentioned that in FY2027, you'll focus on raw material mix rationalization.

What do you mean by rationalization in raw material mix, and how can that help in the margins going ahead?

That's largely an ongoing thing that we do. Yeah.

Sorry,

Shobhan-ji. We were again the very first company in the industry to move away from eucalyptus to other timber species which were cheaply available.

We continue to pursue the objective, because at this point of time, unfortunately, because of the competitive scenario, sales prices are defined by the competition in general. It's not directly in our control.

In order to improve margins, the only thing that we can play with is rationalization of raw materials as well as on the fixed cost side. Both on the resin side, we're continuing to find solutions to improve resin cost, improve consumption.

Again, on the timber front, we're trying to do the same. Now, North India, for example, other species' pricing is coming very close to that of eucalyptus.

Eucalyptus does tend to give us better efficiencies in the plant. It's an ongoing process.

I think it was just a statement to make for us to highlight that.

Understood. Sir, any margin benefits you can quantify from moving away from eucalyptus into other species?

I think that's reflected. For example, in the South of India, eucalyptus continues to be about 20% to 25% more expensive than other species.

Again, availability and how far you have to transport the other species also come into play. We have to find the right mix as to what's available and at what average cost.

In the North of India, for example, because it's so close, we will have a much higher percentage of eucalyptus consumption. That would vary plant to plant and location to location.

Understood, sir. This was helpful.

Thank you for the guidance.

Thank you.

Thank you, everyone, for joining this call. We look forward to speaking to you again next quarter.

If anyone has any further questions, please do feel free to reach out to us, and have a good evening. Thank you.

Thank you.