Ladies and gentlemen, good day and welcome to Cera Sanitaryware Limited earnings conference call. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Devrishi Singh from CDR India. Thank you, and over to you, Mr. Singh. Thank you. Good morning, everyone, and thank you for joining us on the earnings conference call for Cera Sanitaryware Limited for Q2 and H1 FY 2026 earnings, which were announced yesterday. We have with us today the management team comprising Mr. Vikaash Kothari, CFO, and Mr. Deepak Chaudhary, VP Finance and Investor Relations of Cera Sanitaryware. We will start with brief opening remarks from the management, following which we will open the call for Q&A. A quick disclaimer before we begin: some of the statements made in today's conference call may be forward-looking in nature, and a detailed note in this regard is contained in the results documents that have been shared with all of you earlier. I will now turn the call over to the management for their opening remarks. Thank you, and over to you, Deepak. Thank you, Devrishi. Good morning, everyone. On behalf of the management team of Cera Sanitaryware Limited, I would like to extend a warm welcome to all of you to our Q2 FY 2026 earnings conference call. I will begin by sharing a brief update on our operational and strategic progress, following which our CFO, Mr. Vikas Kothari, will take you through the financial highlights for the quarter. In the backdrop of demand environment that remained subdued, particularly on the retail side, we are pleased to report a steady performance this quarter. Our sanitaryware segment delivered a year-on-year growth of 1.4%, supported by stable demand and continued traction in our product portfolio. While the sanitaryware segment continued to face headwinds, the pace of contraction moderated compared to the previous quarters. We believe that improving macro fundamentals and policy measures, including the recent GST changes, will aid recovery in retail demand over time. As indicated in our previous earnings calls, I would like to reiterate that over the past few years, we have continued to strengthen the organization's strategic foundation through sharper brand segmentation, differentiated channel strategies, and a focused innovation agenda. These initiatives are already enhancing our market readiness and execution agility. We believe that as the demand cycle turns upward, these efforts will translate into meaningful growth momentum across the business. Our B2B segment continued to demonstrate healthy traction during the quarter, supported by steady order inflows from the real estate sector and sustained construction activity. Project sales accounted for 39% of our top line in Q2 FY 2026. We continue to benefit from our strong brand equity, execution reliability, and deep relationships across the developer ecosystem, which are enabling us to participate in larger and more complex projects. This remains an important growth pillar for us and helps balance the current softness in retail demand. Another important initiative during the quarter was the rollout of a dealer management system, which marks a major step in strengthening our distribution network and improving data visibility. We have successfully onboarded over 200 dealers so far, with system integration and data connectors now activated at their end. Since each dealer operates on a different platform, achieving this level of alignment has been a challenging task, and we are proud to have made strong progress on this front. The DMS gives us better visibility into secondary sales, dealer-wise inventory, and retail coverage, information that was earlier not available in real time. This enhanced visibility will improve accountability, track market movement more closely, and support faster and more informed decision-making. Over time, the system will also aid better demand planning and channel management. We plan to extend DMS coverage to more dealers in the coming quarters. On the strategic front, our premium brand Senator and recently launched Polyplus continue to make encouraging progress. On Senator, we remain firmly on track to achieve our FY 2026 flagship rollout target of 45-50 stores, with 28 stores already operational as of date. The format and positioning are designed to create a more immersive brand experience, backed by an expanded product range, a dedicated dealer network, and a focused engagement model. Over the past few months, we have strengthened the team structure, bringing onboard experienced professionals across sales, business development, and brand activation to guide the execution at scale. On Polyplus, we have ramped up our efforts on Polyplus, our differentiated offering aimed at deep value segments, where the unorganized market still holds significant share. The team build-out is nearly complete, and we have initiated targeted on-ground activations and promotional campaigns to establish brand presence in key Tier 3 and Tier 4 markets. At present, Polyplus is being distributed through 38 distributors and 650 dealers, with a target to expand the network to 100 distributors and 2,000 dealers by March 2026. The early response from both these brands has been encouraging, validating our approach of segmentation of the portfolio to address distinct consumer and channel opportunities. In the quarters ahead, we will continue to expand distribution reach, enhance market visibility, and build on this early momentum. Innovation and new product development remain core to our strategy. During the quarter, new product launches contributed about 33% of the overall sales, reflecting our continued focus on keeping the portfolio contemporary and relevant. Our new designs are developed through regular market feedbacks and are designed to trend, aligning with evolving consumer preferences and emerging style themes. We will continue to strengthen our design and innovation pipeline to ensure sustained differentiation across categories. By strengthening our brand segmentation and aligning products and channels with different customer segments, we are expanding our market reach while maintaining clear focus across categories. This approach, which covers a wide range of price points and regions, gives us flexibility to manage short-term challenges while staying focused on our core values of quality, innovation, and customer trust. These ongoing efforts are building a solid foundation for future growth as market conditions improve. While the exact timing of a broad-based retail recovery is still evolving, we remain optimistic about the long-term growth trajectory of the industry. Structural drivers such as continued normalization, rising consumer aspirations, urban redevelopment, and housing programs and sanitation initiatives remain intact. Alongside these, policy measures such as the recent GST changes should aid sentiment and activity over time. Taken together with our brand strength and distribution reach, we believe the category remains well placed for steady expansion. We continue to invest in brands, distribution, and product innovation to stay ahead of evolving consumer needs while maintaining firm cost discipline. The benefits of ongoing cost optimization initiatives and operational efficiencies are visible in strengthening our ability to sustain margins in a mixed demand environment. Furthermore, during the quarter, we completed the exit from two of our LLPs, Race Polymer Arts LLP and Packard Packaging LLP, effective from 29th of September of this year, thereby streamlining our portfolio and sharpening our focus on core categories. With the divestment in these two entities, Cera does not have any subsidiaries and hence will report numbers on a standalone basis only henceforth. To conclude, Q2 FY 2026 underscores stable execution in a soft retail environment, coupled with steady traction in project sales and encouraging strategic progress. As we move into the second half of the year, we remain cautiously optimistic about improving demand trends and confident in our ability to respond with speed and scale. Our ongoing investments in brand architecture, channel segmentation, and new market development, supported by strong internal capabilities, are building a robust platform for sustained growth. We remain focused on disciplined execution, enhancing consumer engagement, and creating enduring value for all stakeholders. With this, I would like to hand over to Mr. Vikaash Kothari, our CFO, who will present the operational and financial highlights for the quarter ended 30th September 2025. Thank you, and over to you, Mr. Kothari. Thank you, Deepak, and a very good morning to everyone. I will now take you through a brief overview of the company's financial performance for the quarter and half-year ended 30th September 2025. Revenue from operations for Q2 FY 2026 stood at INR 488 crores, remaining largely flat compared to INR 490 crores in Q2 FY 2025. EBITDA without other income was at INR 67 crores as compared to the corresponding quarter of the previous year at INR 70 crores. EBITDA margin slightly declined from 14.2% in Q2 FY 2025 to 13.8% in Q2 FY 2026, primarily due to increase in input costs. However, the said impact is partially mitigated by improved operational efficiency and cost optimization program. Gas costs witnessed a slight decrease during the quarter, with the weighted average cost standing at INR 33.79 per cubic meter in Q2 FY 2026 compared to INR 33.95 per cubic meter in Q2 FY 2025. Our costs remained well below the industry average, reflecting the benefit of our balanced sourcing strategy and operational efficiencies. During the quarter, gas consumption was sourced 80% from GAIL and 20% from Sabarmati. Overall, gas costs as percentage to revenue stood at 3.6%. For the quarter under review, revenue contributions by segment were as under: sanitaryware at 47%, faucetware at 40%, tiles at 11%, and wellness at 2%. On a YoY basis, sanitaryware revenue grew by 1.4%, tiles by 3.1%, wellness by 3.2%, while faucetware revenues declined by 3.5%. Revenue from faucetware segment appears lower YoY, mainly due to the high base of the previous period, which was driven by the price increase implemented then. With no price revision taken in the current financial year, sales volume have remained healthy, and the apparent decline reflects the base effect rather than any weakness in the underlying demand. Our core categories, sanitaryware and faucetware together, accounted for 87% of the total revenues. On the capacity utilization front, capacity utilization stood at 85% for sanitaryware and 97% for faucetware during the quarter under review. In terms of product positioning, 42% of our sales came from premium category, 36% from mid-segment, and 22% from entry-level products. From a geographical standpoint, Tier 3 cities led with 41% of sales, followed by Tier 1 at 36% and Tier 2 at 23%. Profit after tax stood at INR 57 crores as compared to previous year's quarter at INR 68 crores. The profit after tax appears lower, mainly due to deferred tax income recognized in the previous year, arising from a change in the capital gain tax rate on long-term investments. The current year's figures reflect normal operations without this one-time tax impact. Earnings per share for the quarter was at INR 43.92 compared to INR 52.44 in Q2 FY 2025. In terms of the working capital management, inventory days increased from 80- 83 days, receivables raised from 31- 33 days, while payable days remained stable at 39 days, leading to a year-over-year increase in net working capital days from 72- 77 days. For the half-year under review, the company reported net revenues of INR 907 crores and increase of 2.2% as compared to H1 FY 2025. EBITDA without other income was at INR 120 crores, a decrease from INR 126 crores in H1 FY 2025, and the profit after tax reported at INR 103 crores, a decrease from INR 115 crores in H1 FY 2025. As of 30th September 2025, our cash and cash equivalents stood at INR 736 crores. For financial year 2026, we have earmarked a CapEx outlay of around INR 23 crores. This primarily covers the routine maintenance requirements along with focused investments to strengthen our brand presence and expand our retail footprint. Our capital allocation approach continues to remain prudent and aligned with our long-term strategic priorities, ensuring that every rupee is deployed with clear visibility on returns and long-term value creation. We remain confident in Cera's financial resilience and its ability to deliver sustainable performance through cycles. Supported by a healthy balance sheet, continued focus on operational efficiency, and prudent working capital management, we are well placed to navigate the current environment with agility. Our disciplined capital allocation and cost optimization initiatives provide us with the flexibility to invest in strategic priorities and capitalize on emerging opportunities as the demand environment improves. With this, I would now request the moderators to open the line for Q&A. Thank you very much. Thank you. We will now begin the question- and- answer session. Anyone who wishes to ask a question may press star and one on your touchstone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question comes from the line of Archana Gude with IDBI Capital. Please go ahead. Hi. Thank you for the opportunity and congrats on sequential improved earnings. I have three questions. Firstly, on the full year FY 2026 earnings, in the last earnings call, you guided higher single-digit sales growth, and given we have grown just 2% in H1 of FY 2026, if the net sales growth of 13%-14% is doable in H2 FY 2026, or we have to rework on the growth guidance, both on top line as well as operating margin front? That's my first question, sir. We continue to be optimistic about the H2 performance. We have done 2% in the H1, and we anticipate that H2 will be improving with all the macroeconomic factors being positive. We anticipate that we should be ending H2 with something like 10%-12% of a growth number so that for the full year, we should end up at something like 7%-8% growth for the full year. Sure, sir. But then that also means we need to slightly reduce our operating margin guidance also. Operating margin should be remaining at that region of 14.5%-16% that we're seeing right now. Typically, because the numbers are smaller in the first half, you'll find that operating margins are also slightly lower. Once the numbers improve in H2, which is typically higher than H1, typically it is 45% in the first half and 55% of our total sales comes in the second half. With improved volumes, the margins automatically improve in quarter three and quarter four. We should continue to maintain margins in the range of 14.5%-15%. Sure, sir. You spoke about capitalizing on this emerging micro-demand tag. Can you help us understand it better in terms of any particular product segment witnessing higher demand, or is there any specific regional level revival? Also, how has the performance been in October and early November this month? As far as the macro factors are concerned, whatever the numbers, what we have told, or the initial expectation what we have given in H1, that remains conditional on the recovery in the end market demand. We see very positive signs in the macro environment, like the interest rates are stable, steady GDP growth is there, increased government spending on housing and infrastructure, and the recent rollout of GST 2.0, which simplifies the tax framework. Overall, all these factors encourage us in terms of improved H2, like Deepak told, and our understanding is that we will be able to reach out to the numbers, but we remain cautiously optimistic of the demand recovery, what we stated that it will happen in H2 FY 2026. Sure, sir. So in fact, this October and November, we saw some green shoots in demand, or it was like still okay, and we need to give some more time to see the actual recovery? Just to give you an overview, what we have seen is over the past several quarters, we have seen that the demand is sluggish across all the categories. What we have seen in the first half or the late start of the first half, the sanitaryware segment in our case, which was almost muted, or in some quarters, it was degrowing, that degrowth has been arrested. For the last two quarters, if you have seen, in this quarter, I think we have grown by 1.4%, and faucetware is growing at a good speed, except this quarter, which was just a one-time adjustment in terms of the price rise we have taken last year. Faucetware again is growing at a speed of 8%-10%. Our understanding is that the growth, which is going to be there, it will come in H2, and we will definitely be able to see the better months coming in the H2. Sure. That was pretty helpful. Thank you so much in all the ways, sir. Thank you. Next question comes from the line of Praveen Sahay with PL Capital. Please go ahead. Sir, my first question is related to the divestment. In the press release, you had mentioned that the divestment, you have received a consideration of around INR 18.7 crore. Is that booked in the P&L in the Q2 or year two? Yeah. Praveen, thank you very much for asking the question. Just to update, as we have already given you about financials also, the company has divested its stake in its two subsidiary LLPs, that is Race Polymer Arts LLP and Packard Packaging LLP. This is owing to their relatively lower business magnitude and limited strategic lines. With respect to the focus, what we want to develop in our core business activities. That was the event which has occurred in Q2 before the closure of Q2. Regarding the deal which has been done, the total consideration what we have received of these two LLPs is what you have rightly told is INR 18.75 crores. We have the profit on sale on divestment of INR 5.54 crores, which forms part of this Q2 and is in other operating other income, sorry. Okay. Okay. Thank you for that. Second question is related to your guidance of a 7%-8% of a growth on the overall side. You also mentioned that the retail is a bit slow. To offset that, you are entering in the project business. Now it's up to 39% contribution from the project business. The way forward in the later in the year, we will see this contribution to increase further to bring the growth? Praveen, it is really difficult to say because actually whether the project size would as a proportion of the total business would be growing or not. Essentially, that is totally dependent upon how the demand revise. If retail improves, then obviously this proportion will remain same and then over a period of time steadily decline to the levels that we anticipate of 35%. If that sluggishness continues, then obviously this proportion will most probably remain at this level or maybe again go up slightly. That is totally dependent upon the kind of growth which happens in retail. In the shorter term, let's say for the H2 kind of the numbers that we are seeing, we are kind of thinking that it should remain at the current level, at the level of 40% because we have started seeing green chips in the retail environment also. We anticipate that it should be remaining in the level of 39%-40% for the current year ending March 2026. Okay. Secondly, on the brands, Senator and Polyplus, is there any contribution so far from these two brands in our numbers? Currently, it is more about the setting up of the team, setting up of the distribution channel, getting the products in place. As of now, there are no significant numbers. The costs have started coming in, but the sales will be starting in Q3 and Q4. We anticipate that we should be ending the year with both these brands at something in the region of INR 40 crore-INR 45 crore. Sorry, I missed how much you said? INR 40 crore, INR 4 crore? Correct. Correct. For Sanitaryware and Polyplus taken together for the next two quarters. Okay. Okay. Good to hear that. Thank you, sir, and all the best. Thanks. Thank you. Reminder to all the participants, please restrict yourself to two questions. Next question comes from the line of Jaspreet Arora with Equentis PMS. Please go ahead. Yeah. Hi. Good morning. Thank you for the opportunity. The segment-wise growth rate that you mentioned, sir, just to clarify, that sanitaryware 1% growth and faucets - 3%, that was for Q2? Right. Okay. What would be for H1, the similar number? If you talk about H1, in case of H1, sanitaryware has grown by 0.58%. Faucets have grown by 3.5%. Wellness has grown by 8.2%, and tiles have grown by roughly 4%. Overall growth in terms of H1 is 2.2%. Faucets had grown 3%? Yeah. 3% plus, and despite quarter two being negative, the first quarter growth was very good. Yeah. You will see the impact in quarter three because, like I told, in case of faucetware, last year's quarter, the price rise impact was taken in case of faucetware because of the rising brass prices. Because of that anticipation, the pre-order bookings were done, resulting into the comparative corresponding growth with the previous quarter was roughly 20%. That was a one-time impact. Overall, we are quite positive in terms of faucetware demand. There is a good demand in faucetware. The impact is, if you see, for H1, it is somewhat 3.5%. The growth which was there in Q1 is somewhat offset by this one-time effect. We are quite positive that by end of year, the numbers which we are seeing, roughly 8%-10% growth in faucetware, that seems appearing. Okay. So full year, we are seeing 8%-10% faucet revenue growth. And what would be the volume and price mix within this? Volume and price mix is very difficult to say in case of faucetware because both in case of sanitaryware as well as faucetware, because it's a completely mixed basket, and we have a lot of SKUs which are in completely different price ranges. We will always go by the in terms of the revenue growth. Some idea, would it be a large part would be price or large part? Just to get a sense, I'm sure faucets, I understand sanitaryware is difficult. Or even there, yeah, if you take one standard product or whatever, just to get a sense, because volume at the end of the day is a barometer of how the economy is growing. Price is always secondary. I mean, that's not in our hands. If you look across, let's say, last three, four years, there has been hardly any price increase which has been taken. Last year, we had taken a price increase of roughly, on an average, it was working out to 5.5%-6% for faucetware. Even that, you will find that the price increase takes some time to get implemented because of the fact that it takes for all the projects, you'll have prices which are more or less remaining constant for the delivery period, which would be typically something from one year to one and a half years. Project rise starts happening only after a certain time lag. In retail also, because the dealers normally have an effective date, but the pickup starts happening only after some time. The price increase has been only to the extent of 6% last year. Apart from that, everything what has come, the increases which are coming, are coming on account of volume only. Okay. Okay. We are saying that for the second half, against 2% odd growth in revenue in the first half, in the second half, we are expecting closer to 12%-13% revenue growth. Is that what you? Correct. Correct. Okay. Just to understand that, what you mentioned, there are certain macroeconomic factors which will come into play. What I could not understand, what were those macroeconomic factors which are absent in 1H and which will now come into force in 2H? No. Like I talked about, means there is a freeze as far as discretionary spending with respect to consumer was concerned. There is a freeze. Means the. Slow down. You mean a slowdown? Hello? Yeah. You mean there is a slowdown in discretionary spending? Yeah. With all the positive signs which are coming, like the interest rates are stable, we see that a lot of spendings are happening from the side of government also. All these factors, what we are saying, that will help us in terms of changing the mindset of the consumer in terms of whatever the decision they have postponed. They will start initiating those decisions, and this will support the building material industry, including our sanitary and faucet industry also. Thank you. Mr. Arora, please rejoin the queue for more questions. Next question comes from the line of Resha Mehta, GreenEdge Wealth. Please go ahead. Yeah. Thank you. So just two questions, actually clarifications. Maybe I missed the opening remarks, but you've guided for a 7%-8% overall top-line growth for the full financial year, or is that just for H2? For the full financial year. Full financial year. Within that, faucets will grow in double digits. Is that understanding right? Correct. Yes. Got it. Also, you mentioned that the two new brands, Senator and Polyplus, will contribute to INR 40 crore-INR 45 crore in H2. Correct. In terms of gross margins, why did we see a compression in gross margins this quarter? Gross margins, it's more or less remaining the same. You'll find that across quarters, there'll always be a variation of 1% or 2%. Otherwise, it is always in that range of 52%-55%. The discounts, typically, you'll find that the gross margin is a function of two things. One is the kind of discounts which are being offered by the company. Second would be the cost of the products that we are selling. Discounts have kind of remained stable over the last couple of quarters, you can say. With the weak Q1, we have seen that discounts are not going up. They have stabilized. If you look at in comparison with the previous quarter, you'll find a slight 0.5% kind of difference between the kind of discounts we offered in Q2 of the previous year as compared to Q2 of the current year. Now that discount trend has been arrested. There are a lot of factors which are going to making that the kind of stock which was being uploaded, the kind of mix which has been sold. There is a slight variation on a quarterly basis. On an overall basis, you'll find that the gross margin remains constant. Right. Any input cost inflation? Regarding the input cost, means largely what we are seeing, the brass cost, which has shown the growth last year. After that, it remained within the range of INR 590 crore-INR 600 crore per kg. That remains there. Again, when we talk about the current scenario, maybe we are sitting in the month of November, so the metal price, brass price has again taken a sharp increase. It is beyond INR 600 crore. Roughly, it is INR 620 crore or INR 630 crore. That is the one factor which has impacted our margins also, the profitability also. We are cautiously watching in terms of any subsequent rise if we want to take. If the brass price is continuously on a rising trend, that will be taken care of. We are right now reviewing the market scenarios in terms of the metal market. With respect to the other input prices like the clay and the feldspar chemical which is used, there is an increase in the price versus the Q2 of the last year. Those prices have increased slightly. Largely, the focus is with respect to the brass prices. What we are smartly doing is with these prices increased which are there, we are more or less improving, partially offsetting the impact with our improved operational efficiencies and the ongoing cost optimization initiatives which we are taking across the categories. No price hikes being planned, right? Yeah. It is not planned because I think in the month of October-November, the brass prices have grown drastically. Still, we want to see the pattern. If we see there is an impact because in case of faucetware, almost 60%-65% of the cost of the product pertains to the input cost. If we see the stable trade in terms of the price increase, we may take a decision. Right now, there is no such plan. All right. Thank you. Thank you. Thank you. Next question comes from the line of Karan Bhateliya with AMSAC. Please go ahead. Hi, my audience. Yeah, we can hear you. Mr. Bhateliya, please go ahead. Yeah. With respect to the sanitaryware and faucetware portfolio, while you mentioned that INR 45 crore-INR 50 crore could be seen in the current year, how do we see next two, three years in terms of revenue potential and the scale-up in the margin profile as well? In respect of the margin profile, sanitary will have slightly higher margins as opposed to the kind of mix that we are having right now. We expect that it should have margins to be in the excess of 20%-22%. Polyplus, we expect it to be slightly higher. It should be in the range of 25%. The kind of volumes and the numbers that we are expecting in the next three years. Yes. Just one second, I'll just tell you. We are projected for the next two years, this should be contributing to something like INR 150 crores of turnover from sanitary and Polyplus taken together. Right. Right. And what kind of new product launches we've seen in the core category of sanitaryware faucet for first half and the expansion in the network? There have been no new launches in sanitaryware and faucetware because we had quite a few launches in the last couple of years. Our product portfolio has undergone a complete change within the last two years. This year, the launches were mostly in Polyplus and in sanitaryware where the new products, all the new range, has been completely new range has been launched. For the first half, there were no further launches in sanitaryware and in faucets. Okay. Thank you, Dr. Thank you. Next question comes from the line of Syed Nawaz from Indoojil Nursa. Hello. Thank you for the opportunity. My audience. Yeah, we can hear you. First of all, good morning, everybody. I have two questions in terms of scaling. Mr. Nawaz, sorry for interfering. There's a lot of background noise. Can you come in the range and talk as well? Yes, sir. One second. Hello. Am I audible now? Yes. Yeah, microphone. Great. I have a few questions about the premium products that we are launching, specifically the sanitaryware brand and the Polyplus. Since the company is transitioning into the premium market segment, and 42%-43% is what has been the average contribution towards the overall revenues, how are we expecting to compete in the segment where we have already established players in the sanitaryware segment, first of all? We have Hindware, and we have some other players as well who specifically cater to the premium category. What is the marketing position of the company in the sense that how are we looking forward to capture the market in the premium segment? Cera has a long standing. We have been in the premium segment for quite some time. Now we are trying to go a level up from the premium segment that we are already present to address the one which is being currently catered to by more of the multinational brands. The idea is to have a completely different kind of a product profile. The kind of products we are having for sanitaryware is very different from what we are currently having in our Cera portfolio. There is an upgradation in both the aesthetics, the kind of features, and a completely different product profile which we are offering for sanitaryware. The kind of experience that will be offered to the consumer would be also very different. For this particular brand, we are targeting a completely new set of dealers and a new set of showroom and a customer experience, which will be very different from what is available for the Cera portfolio. The idea is to reach a set of consumers which is not, as of now, being addressed by Cera. There is no focus right now for those particular products. The idea behind sanitaryware is to give a more focused drive on the premium segment. Any marketing burn or anything, any marketing spends, etc.? Because, as you said, that we are entering into a new segment altogether, which has not yet been explored by Cera. Are we expecting any marketing burn as well? In the first year, we're talking about, let's say, the two quarters which have gone by and also the H2. The focus would be mostly on getting the showrooms ready and also more acting on the influencers, getting the influencers on board, making them aware about the brand because they are the ones who kind of bring in the consumer, and the final decision tilt happens because of them. In the first year, it will be mostly focused on getting products and showrooms ready. The total spend that we intend to do would be carved out of the total budget that we have. We expect it to be in the range of INR 10 crore-INR 12 crore. From next year onwards, you'll find that that amount would increase, both for sanitaryware as well as for the Polyplus also. I have another question about the forecasted profits that we have discussed. Specifically, again, it would be a very novice statement to make from my side, but I have observed that there is a reduction in the amount of sales that have been done. Historically, again, at least in four or five years, we see that there is a slight reduction in the revenue of the company. I have studied the data for the past 10 years. I just wanted to get clarity about, are we looking at a sluggish market or at least a lesser demand in terms of less real estate development projects being undertaken, or what is the exact reason behind the fall in revenue or fall in the general demand of the products? See, if you look at, as you are mentioning in respect of Cera, we had a good growth, let's say, up till two years back, or rather three years back, from which the numbers have stagnated. We have been in the region of INR 1,800 crore-INR 1,900 crore over the last three years. As you mentioned, the demand has been sluggish. It has been especially true for the retail segment over the last, you can say, seven-eight quarters, two years. Over a period of time, we have found that our project business has started going fraction. The project business, which used to constitute something like 30% earlier, has now gone up to 39%. We anticipate that once the retail demand picks up and that growth which has been missing over the last seven-eight quarters should again be back on track. Thank you. Mr. Nawaz, please rejoin the queue for more questions. A reminder to all the participants, please restrict yourself to two questions. Next question comes from the line of Lakshmi Narayan with Tunga Investments. Please go ahead. Yeah. Thank you. I observed that in the sanitaryware category, the competition is quite high. We see that an entrant who has been restricted more to faucetware has actually started getting traction in sanitaryware. Now, does that explain some amount of slowness in our growth? That is my first question. Second is that how the realization of sanitaryware has actually improved in the last one year or so? What is an average realization of the sanitaryware for us? Like you told, in terms of the entrants or in terms of the players who are dealing in faucetware, they have got an opportunity to come into the sanitaryware segment also. We have seen from last several quarters that there are new entrants which have entered into the bathware zone. Again, since we are seeing that the market itself is not that much growing because of the sluggishness in the environment which is flowing, overall, the comment from Cera's side is going to be that Cera being a brand which is established for more than four decades, and the product line, the quality, and other things are well established. Brand loyalty and the type of innovation what we use to put in our products, that is going to be a more sustainable model. Again, with respect to comparison with the new entrants, the service differentiation we provide in terms of after-sale to the consumers and the wide dealer networking we are having, that is all going to be the plus point. Whereas for the period under review, when we are talking about the demand sluggishness and all, there is an opportunity they have come. On a long-term basis, we are quite confident that once the demand pattern will improve, definitely, we will be getting our revenues will be improved what we have projected in terms of the overall growth. Just on that one, if I look at some of the housing sales, etc., at least in the premium segment or even in the 50 lakh to 1 lakh, the registrations in top metros continue to grow, and even some of them have actually taken possession also. I'm just trying to understand what is the correlation one can actually expect between that and our industry growth because there seems to be some kind of disconnect, though we always know that only towards the end, people actually have the sanitaryware. Somehow, it is not adding up. Can you just explain to me wh y is this? What you are saying is correct. If you look at the scenario which has happened post-COVID, the growth traditionally, Cera has been there in the premium and the mass premium brand. The growth over there in those particular markets has been kind of stagnant. We've had quite a few new players who have been coming in over there. We also have a segment which has been growing quite well, the premium, the luxury segment, the metro market, where you'll find that a few players have been able to capture that market where Cera was not having a very strong presence. That is the idea that we have come out with, that brand sanitaryware which is targeted towards the market which is, as of now, showing traction. Thank you. Mr. Narayan, please rejoin the queue for more questions. Next question comes from the line of Arun Baid with ICICI Securities. Please go ahead. Just one clarification. You said the margin should be 14.5%-15%. This is for the full year, right? Correct. Yeah. Second thing is, in the first half of this year, how much money would you have booked in the P&L with regards to Polyplus and sanitaryware because of the rise for the employees? In the current half year which has ended, the sales have been marginal because it was more about getting the products and the dealership in place. The amount of sales in the first quarter is kind of negligible. No, no. I'm asking the expense because you also have people spending expenses over time. How many would that be? See, for the kind of showroom development which has happened, it's an ongoing thing. The cash outflow happens, but the actual expenditure comes in by way of depreciation, which will be happening over the next, you can say, a few quarters. In terms of branding, there would have been some expense. We have not initially categorized it specifically for sanitaryware what amount has been spent. The main impact would be on the people front, where we anticipate that for these two brands taken together, we would be having an annualized expenditure of something like INR 15 crore, you can say INR 14 crore-INR 15 crore for the full year. The team development had started. A part of that expenditure would have been the main expense which would have gone into sanitaryware and Polyplus. So roughly, the first half, would it be right to assume that we would have spent for, I'm talking about the employee expense only, around INR 5 crore-INR 7 crore? Would it be right, Akanshi, for the first half? It will be in the range of, yeah, INR 5 crore. Okay. Second thing is you mentioned that INR 150 crores is what you budget from these two brands. This is by FY 2027? Correct. FY 2027. Okay. Thank you very much. Thank you. Next question comes from the line of Jaspreet Arora with Equentis PMS. Please go ahead. Yeah. Hi. Thanks for the opportunity again. Just to clarify, sir, you mentioned this extra income or a one-off income of INR 5.5 crores. So the PBT of INR 72 crores would become whatever lesser by that much, right? INR 66 crore-INR 67 crore. Is that how to read it, the recurring PBT? The EBITDA, without other income, is in the range of INR 67 crore as opposed to INR 59.60 crore in the previous corresponding quarter. The PBT of INR 72 crore includes this INR 5.5 crore of exceptional income? 5.5 crores. Correct. Correct. Yeah, it's with other income. Correct. Okay. That helps. Just lastly, are there any measures within the cost side, in more particular, maybe on the fixed side? I understand variable is not, on the variable side might be difficult. There is already inflation and price increase difficult. On the cost side there, because other building companies are doing enough incrementally on the cost side, on the fixed cost side, whether it is salaries or overheads, do you have any scope of any adjustments there to ensure that the margins do not dip beyond a point? This is a continuous exercise. Over the last eight quarters, where we have not witnessed an increase in revenue, the top line has not been growing. You find that the kind of margins that we've been able to maintain has been primarily because of the fact that we have undertaken a continuous basis cost optimization program. That is across the functions, across all categories, across all functions. Other players may have started doing it now, and that is why it's not. No. Any specific areas you can highlight? Sorry to cut. Any specific areas you want to highlight and also give the impact? Because this is a little bit generic what you're saying, which we appreciate, but quantum will help rather than generic and specific areas where you have done something. That is what I'm trying to explain, that it is not some one area which is kind of. The biggest area, the top two areas. Because quantum to be, you understand, and the quantum also. Percentage of revenue, how much from what to what it has come down? One area where we have really tried to extract more value and not increase is the publicity spend. If you look at the kind of publicity spend that we have been doing earlier, you find that it has more or less remained constant or has slightly decreased. One would be that area. The second area has been the kind of efficiencies which we have been able to get within the plant. Efficiencies is not by way of expense kind of reduction only. It is the kind of output that we are able to generate with the same amount of resources. That has gone up tremendously, both in the sanitaryware as well as the faucet plant. What it really helps, how it really helps is that earlier, you were incurring all costs for gaining a certain amount of output. Now, the same cost, slightly increased cost, is going for a much higher level of output. Essentially, the kind of rejections which you were having earlier, if you look a t the sanitaryware plant, you'll find that this is a major, major issue. You'll find that whenever a new player is setting up a plant in sanitaryware, they find it extremely difficult to stabilize because of the fact that rejections are extremely high. If you introduce a new product, you'll find that the rejections go up and it takes time to stabilize. We have been able to kind of bring out higher efficiencies over there, reduce the level of rejections, so that earlier, you were incurring all costs and then throwing away the piece. Now, you find that you are incurring the cost, but you are getting a higher output so that your costs are getting spread over a larger number of units. Understood. Understood. The employee costs, sir, inflation looks to be 4%-5% in the first half. Is that how to read for the full year? Employee cost inflation? If you're telling me the employee cost, because for the staff, it has gone up in the range of 10.5%-11%. For the workers, you'll find that it will be in the range of 5%. We are anticipating a wage increase to happen in the second half. That should take it for the whole year to be in the range of, let's say, 7%-8% if that happens in this year. Okay. 7%-8% for the full year, the entire wage bucket. Correct. Correct. All right. All right. This really helps, sir. Thank you so much for the clarification. Best wishes. Thank you. Thank you. Ladies and gentlemen, that was the last question for today. Due to time constraints, we have reached the end of question- and- answer session. I would now like to hand the conference over to the management for closing comments. Thank you, everyone, for attending this call and showing interest in Cera Sanitaryware Limited. Should you need any further clarification or would like to know more about the company, please feel free to reach out to me or to CDR India. Thank you once again for taking the time to join the call. Thank you and bye. Thank you. On behalf of Cera Sanitaryware Limited, that concludes this conference. Thank you for joining us. You may now disconnect your lines.