Ladies and gentlemen, good day, and welcome to the earnings conference call of Cera Sanitaryware Limited. 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 this conference call, please signal an operator by pressing star then zero on your touchtone 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, sir. Thank you, Neeraj. Good morning, everyone, and thank you for joining us on the earnings conference call for Cera Sanitaryware Limited for Q1 FY 2027 earnings, which were announced yesterday. We have with us today the management team comprising Mr. Vikas 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 document that have been shared with all of you earlier. I would 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, and a warm welcome to all of you for joining us on Cera Sanitaryware Limited Q1 FY 2027 earnings conference call. I will begin by sharing a brief overview of the operational and strategic developments during the quarter, following which our CFO, Mr. Vikas Kothari, will take you through the financial performance in greater detail. Cera has made a strong start to FY 2027, with revenues growing by 19.5% year-on-year during the quarter. Both our sanitaryware and faucetware business developed a robust performance, contributing 47% and 40% of our revenues respectively. The quarter witnessed strong momentum across our core businesses, with growth being predominantly volume-driven. We continue to see healthy traction in the project segment, while the retail business carried forward the gradual improvement witnessed over the last couple of quarters. Importantly, the growth during the quarter was broad-based, with both our retail and project businesses continuing to perform well. This reinforces our confidence in improving demand environment and the underlying growth opportunities across our key product categories. The demand environment continued to evolve positively during the quarter, supported by improving consumer sentiment in retail and sustained momentum in the project segment. Backed by a strong market positioning across the mass and mid-premium segments, diversified product portfolio, and extensive distribution network, we believe Cera remains well-positioned to capitalize on the significant growth opportunities within our core businesses. While the industry continued to witness elevated input cost pressures during the quarter, Cera remained relatively better placed than several industry participants, supported by its established sourcing arrangements and strong in-house manufacturing capabilities. Following the pricing revisions undertaken during March and May 2026, cumulative price increases now stand at approximately 12% in sanitaryware and 16% in faucetware. We are pleased to note that these pricing actions have been well-absorbed by the market. Alongside these pricing initiatives, we continue to focus on operational efficiencies to mitigate cost pressures. This will enable us to protect margins while ensuring that we remain competitive in the marketplace. On the brand front, we recently launched a new integrated campaign, Your Moment of CERA, featuring Kriti Sanon as our new brand ambassador. Her aspirational image and wide appeal across demographics make her a natural fit for the Cera brand. We believe that the campaign marks an exciting new chapter in our brand journey as we continue to strengthen Cera's premium positioning and deepen our connect with consumers. The campaign has been rolled out across television, digital, and other media platforms. We are confident it will further strengthen consumer engagement, enhance brand visibility, and reinforce Cera's leadership position. One of the key developments during the quarter has been the extension of our dealer management system to the retailer loyalty program, marking another important milestone in Cera's digital transformation journey. The platform will strengthen our engagement with the channel partners by providing better visibility into secondary sales, inventory movement, and channel engagement. It will also enable a simpler and more transparent loyalty program while providing richer market insights for faster and better decision-making. We believe that the extension of DMS to the retailer loyalty program will become an important enabler of improved execution, stronger channel relationships, and enhanced operational efficiency. We remain committed to adopting digital capabilities that strengthen our competitive positioning and support our long-term growth ambitions. While the Cera brand will continue to remain the principal driver of our growth, we will continue to invest in strengthening our newer brands, recognizing that building enduring consumer brands require sustained and consistent effort over several years before they establish a meaningful presence in their respective segments. This is particularly true in the premium category, where consumer trust and brand preference are built progressively over a considerable period of time. Therefore, our focus at this stage remains on strengthening the underlying fundamentals of our newer brands with a long-term perspective, rather than evaluating the performance over shorter- term horizons. We remain confident that the investments we are making today will create meaningful long-term value as these brands progressively scale over the coming years. From an industry perspective, the challenges across the operating landscape are creating a differentiated environment with larger, more established players being able to leverage their scale and set up to deliver more efficient operations. Backed by established sourcing arrangements, strong manufacturing capabilities and efficient supply chain, Cera has been better placed to manage many disruptions across the landscape while continuing to service its customers seamlessly. For the last few weeks and months, we have progressively reduced our dependence on the Morbi cluster by internalizing several key SKUs. This has further strengthened our ability to ensure consistent product availability and cater to consumer demand effectively. These industry developments have also created opportunities for us to strengthen customer relationships and expand our presence across markets. Our ability to ensure consistent product availability and reliable execution has enabled us to respond effectively to challenging market conditions. We remain focused on capitalizing on these opportunities while maintaining a disciplined approach to growth. Building on the launch of our new brand campaign, we are entering into the next phase of our brand-building journey. During FY 2027, we plan to invest approximately INR 85 crore towards brand-building and marketing initiatives. These initiatives will span television, digital, social media and on-ground activations to further strengthen consumer engagement and enhance brand visibility. Our focus will remain on deepening consumer connect and reinforcing Cera's position across key markets. Overall, we have made a strong start to FY 2027 and believe that the company is well-positioned to build on this momentum. Supported by improving demand conditions, a strong balance sheet, continued investments in strengthening digital and channel capabilities, we remain confident of sustaining our growth momentum and maintaining our FY 2027 revenue growth guidance of 18%-20%. Our focus will continue to remain on disciplined execution, strengthening our market leadership, and creating sustainable long-term value for all our stakeholders. With this, I would now like to hand over the call to Mr. Vikas Kothari to take you through the financial performance of the quarter. Thank you, Deepak. A very good morning to everyone. I will now take you through a brief overview of the company's financial performance for the quarter ending 30th June 2026. Revenue from operations for the quarter stood at INR 486 crore as compared to INR 407 crore in Q1 FY 2025. Before I proceed further, I would like to highlight a change in the presentation of our financial statements. Turnover discounts, which were earlier reported as an expense, are now presented as a deduction from revenue from operations. Accordingly, the reported revenue for the current quarter has been reduced by 2.5%, and the revenue for the corresponding quarter of the previous year has been reduced by 3%. The previous quarter's revenues have been restated to be comparable in line with the current quarter's disclosure. It's important to note that this change has been driven by the evolution of certain dealer incentive schemes. For the current scheme structure, presenting the eligible incentives as a reduction from revenue better reflects the substance of these arrangements. Accordingly, as per the requirements of Ind AS, we have realigned the presentation. This reduces the turnover, but does not have any impact on absolute profitability or cash flows of the company. EBITDA excluding other income for the quarter stood at INR 49.2 crore as compared to INR 53.1 crore in the corresponding quarter of the previous year. EBITDA margins stood at 10.1% in Q1 FY 2027 as compared to 13.1% in Q1 FY 2026. The moderation in EBITDA margins during the quarter was primarily due to certain one-time and transitional factors that are not expected to recur beyond Q2. These included a one-time provision towards the long-term settlement of the company's workers pertaining to the previous period, September 2025 to March 2026. Lower absorption of fixed costs due to reduced production amid temporary gas supply uncertainty. Additionally, while input costs increased significantly, Price hikes have so far been reflected mainly in the retail business, with project contracts expected to transition to revised pricing post Q2, supporting the margin recovery in the subsequent quarters. Gas cost during the quarter remained elevated, with the weighted average cost at INR 48.43/cu m in Q1 FY 2027 as compared to INR 33.17 / cu m in Q1 FY 2026. During the quarter, gas consumption was sourced 69% from GAIL and 31% from Sabarmati. Overall, gas cost accounts for approximately 3.3% of the revenue during the quarter. Input costs, particularly brass, continued to remain elevated during the quarter. In response to these sustained cost pressures, we implemented calibrated price revisions across our sanitaryware and faucetware portfolio over the last two quarters. These pricing actions have helped offset a part of the increase in the input cost while enabling us to maintain our competitive positioning. While the retail segment reflected these pricing actions, the project business remained relatively insulated due to the nature of pre-booked orders. Going forward, we remain focused on protecting margins while maintaining our competitive positioning. The revenue mix for the quarter was broadly as follows: sanitaryware accounted for 47%, faucetware 40%, tiles 11%, and wellness 2% of the total revenue. On a Y-o-Y basis, sanitaryware revenue grew by 14%, faucetware by 25%, tiles by 22%, and wellness declined by 7%. Our core categories, sanitaryware and faucetware together accounted for 87% of the total revenues. Capacity utilization during the quarter stood at 61% for sanitaryware and 96% for faucetware. For a product mix perspective, 44% of the sales were from the premium segment, 37% from mid- segment, and 19% from entry-level products. Geographically, Tier 3 and Tier 1 cities accounted for 38% each, followed by Tier 2 at 24% of sales. Profit after tax stood at INR 45 crore as compared to INR 47 crore in the corresponding quarter of the previous year. Earnings per share for the quarter stood at INR 35.15 as compared to INR 36.08 in Q1 FY 2026. On the working capital front, we delivered a significant improvement during the quarter through continuous focus on inventory management and overall working capital discipline. Inventory days decreased from 80 days to 68 days. Receivables reduced from 38 days to 30 days, while payables increased from 43 days to 48 days. Consequently, our net working capital cycle improved from 75 days to 50 days on a Y-o-Y basis. This is another lever we are pushing to drive greater overall efficiency in a challenging landscape. As of 30th June, 2026, our cash and cash equivalents stood at INR 943 crore. For FY 2027, we have planned a capital expenditure outlay of approximately INR 43 crore. The investments will primarily be directed towards our faucetware brownfield capacity expansion, manufacturing efficiencies, digital initiatives, and strengthening our operational infrastructure. Alongside these investments, we also have a comprehensive brand building and promotional program planned during the year to further strengthen consumer engagement and support our long-term growth ambitions. We will continue to follow a disciplined capital allocation approach while investing in initiatives that strengthen both our manufacturing capabilities and our brands. Overall, our financial positions remain strong, supported by a healthy balance sheet, prudent financial management, and efficient working capital practices. Backed by improving demand conditions and our strong market position, we remain confident of executing our long-term growth strategy while continuing to create sustainable value for all our shareholders. With this, I would like to go to the moderator for opening the lines for Q&A. Thank you very much. We now begin the question- and- answer session. Anyone who wishes to ask a question may press star and one on their touch-tone 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. Participants, you may press star and one to ask the question. First question is from the line of Praveen Sahay from PL Capital. Please go ahead. Yeah. Thank you for the opportunity. My first question is on the growth of 19.5%, and especially in the major two segments, which are 14% and 25%. Can you give a color on the volume growth as well? Because I understand 12%-16% price hike, there which is a mix of institution and the retail there would be different. How has been the volume growth for these two major segments in the first quarter? Thank you, Praveen. Regarding the growth part, especially when we talk about the last few quarters. The growth which is coming, it is a volume-driven growth, which is continuing month- on- month. If I have to make a breakup of the total growth, in case of sanitaryware, the 14% growth was there, and this 14% was largely driven by volume, which contributed around 10%, and price contributed around 2%. Since we have taken the price increase in May, effectively, the impact of price increase will be reflecting in the coming quarters. In Q1 it was 2% impact of price, and the mix has a favorable impact of 2%. This has constituted the overall growth of 14% in case of sanitaryware. In case of faucetware, we have shown a substantial growth of 25%, which is further broken down into volume. Again, it's volume- led. 18% was on account of volume, 4% was the impact of price, and a favorable mix of 3%. This way, I think the overall growth of 14% and 25% has been constituted, and the similar patterns we are seeing in the coming months also. Good to hear that. Second question related to this is, if you can give some color on the Senator and the Polipluz, because those numbers are also included in these 10% and 18% of volume growth. Can you give some color on that as well? Is that the product mix changes because of Senator's contribution rising? Just to give you an overall understanding with respect to Senator and Polipluz. Our overall approach will remain unchanged as far as Senator and Polipluz is concerned, since these are the new initiatives. Right now, talking about the numbers in terms of volume growth or mix, it's difficult to tell. But the overall projections, what we have given during the year, so those projections will be there. Right now, these businesses are still in the build-up phase, and therefore, what we believe is that it is more appropriate to evaluate their progress over a longer time period horizon, rather than updating on the quarter-on-quarter basis. Right, sir. Last question, sir, related to the accounting change. Basically, whatever the discount in the expenses now you are booking in the sales, and ultimately, that's actually improving your margin profile. The guidance of 13.5%-14%, adjusting for these changes, what you had made margin guidance. The impact on absolute terms would be not there, because once you are taking an expense and reducing it from the revenues, your EBITDA margin remains the same in absolute terms. There would be a very slight impact on the EBITDA margin percentage because your turnover is reducing and the profits are remaining the same. Assuming that the reduction would be in the range of 2.5%-3%. Earlier, if you're talking about 13.5%-14% on INR 100, now you'll be talking about 13.5%- 14% on INR 97. That small change will be there, but apart from that, we remain on the guidance that we have given, 13.5%-14%. You can adjust it for the slight change. No. The percentage terms guidance is intact. Absolute number will vary. Correct. That will be impacted. If I'm talking about the 14% on INR 100 earlier, now I'll be talking about 14% on INR 97, let's say. 14% divided by INR 97 comes to something like 14.4%. Got it. Got it, sir. Thank you. Thanks a lot. All the best. Yeah. Yeah. Thank you very much. A request to all the participants, kindly limit yourself to two questions per participant and rejoin for a follow-up. Next question is from the line of Ritesh Shah from Investec India. Please go ahead. Ritesh, may I request that you unmute your line and proceed with your question, please. Ritesh Shah, can I request that you unmute your line and proceed with your question? Due to no response, we move on to the next participant. Next question is from the line of Varun Julasaria from 360 ONE Capital. Please go ahead. Yeah. Hi, sir. Thank you for the opportunity. I just wanted to understand, how much was the one-time settlement in the staff costs that you booked, and what is the nature of it, the settlement? What happens is, for the company's own workers, there is a wage agreement which is negotiated with the unions every four years. Like for the staff, you'll find that the merit increase keeps on happening on a yearly basis. That typically averages in the range of 10% to 11%. For the workers, you'll find that the increase has not been the same manner as the staff. Typically, every four years, a settlement is entered into with the union, and that prevails for a period of four years. Let's say we have an increase of something like 15% to 20% every four years. That happens once at the end of the fourth year, or the beginning of the first year, once the four years has ended. Suppose we have a 20% increase, it will be remaining constant for the next four years. Effectively for the next four years, the wage for the staff would remain at, if it was earlier INR 100, it will remain at INR 120. There will be no further increases apart from another 2%-3% kind of increase, which happens on a regular basis, inflationary kind of a thing. As of now, you can expect something like 15%-20% kind of an impact on the basic wages. On an overall basis, we'll find a 15%-20% increases. The impact for a year-on-year basis would be 5%, but as of now, it will be an increase of 20% over the wage which was being paid to the workers earlier. The negotiations are still going on. It is more or less been settled in May, and the kind of increase that we are envisaging would be in the range of INR 1 crore per month. INR 6.3 crore was the effect which has come in for the previous period because the last wage agreement had ended in the month of September 2025. That we are giving effect on a retrospective basis, it will be INR 6.3 crore from the period of September 2025 to March 2026, which has been given effect in the current quarter. INR 6.3 crore was for the previous period, and INR 3 crore was for the current period. For the current year, we anticipate that the wage cost would be going up by something like INR 12 crores for the full year for this particular period. Because INR 6.3 crore has been affected for the previous period, the total impact in the profit and loss of the year would be INR 18.3 crore. I mean, just to understand this quarterly run- rate would now be the similar one which is in 1 Q, excluding the INR 6 crore, which was a one-time settlement, right? You're talking about the margins? No, no, I'm saying for the staff cost, this would be around INR 72 crore kind of a quarterly run- rate. Correct. If you're talking about the staff cost, if you exclude INR 6.3, you can expect the same to be replicated for the remaining three quarters. Apart from the fact that in certain quarters there would be incentive coming in for the staff. On an overall basis, if you take the previous year, increase it by mostly 8%-10% kind of a thing, 10%, because staff is increased by a certain percentage, wage is not increased by the same percentage. Effectively, it will be in the range of 8%-9% for the whole year. Add INR 18.3 onto that. That will give you the whole year projection kind of a thing. We believe it will be coming in the range of INR 300 crore for the current year. Okay. Understood, sir. Sir, on the— Sorry to interrupt you, Varun. Can I request you to come back for a follow-up, please? Thank you. I request all the participants, kindly limit yourself to two questions per participant, and rejoin for a follow-up. Next question is from the line of Shubhi Gupta from Trinity Asset Managers. Please go ahead. Good morning. My first question is that we are internalizing some SKUs that we were outsourcing, as you mentioned. If you could just talk a bit more about that. My second question is that how many, I think our target for flagship stores this year is about 60, if I am not wrong. If you could just update me on the progress on that as well. Thank you. You are right. We have been talking about internalizing certain SKUs. Typically, both for, in the case of sanitaryware, as well in the case of faucets, we manufacture most of the complex SKUs in-house, and the simpler ones are outsourced. In case of sanitaryware, recently there have been some issues in the context of Morbi being not operating up to its full efficiency. Availabilities in case of Morbi, we were initially in Q1 facing some challenges, and it was anticipated that the challenges may happen in the Q2 onwards also. On an overall basis, we have been quite comfortable in respect of the kind of SKUs that we have, volumes that we have been able to get from Morbi, from our outsourcing partners. As of now, we are quite comfortable in respect of abilities, both in context of Q2 as well as for the entire year. We do not see too much of a challenge. As an anticipation that there could be challenges, we had already taken the process of internalizing some of the higher selling SKUs from these outsourcing partners to make them internally within our manufacturing plant. We are already undertaking that exercise, and in case we are having problems from the outsourcing arrangement, we are now well geared up to produce these SKUs in-house. Sure, sir. The second question about the flagship stores. Stores, as we have already given a guidance as you're talking in respect of Senator, we have given a guidance that we'll be going up from 35 to something like 50 stores by the end of the current year. We are in line with that. We'll continue to scale up these stores, and we should end up with something like 50 by the end of the current financial year. Okay. Sir, this internalization, do we need some additional investment for this or no? Small amount of investments are required because the kind of casting lines which are required are different for different kind of SKUs. Kind of INR 2 crore-INR 3 crores of investment or small investments which are a part of the routine also. We do that on a regular basis also. That kind of investment is required, but we don't require massive investment in terms of setting up manufacturing capabilities or getting additional machineries. The current facility by itself with some change in the lines which are required for specific SKUs, that needs to be done. Okay. Thank you. Thank you. Thank you. Next question is from the line of Ritesh Shah from Investec India. Please go ahead. Hi. Thanks for the opportunity. Two questions. First is with respect to the change in management, the KMP recently. Who's going to take over the responsibilities with respect to Senator and Polipluz? Could you just refresh us with both those initiatives with a short-term and longer-term view? Thank you, Ritesh. Regarding the recent resignation of Mr. Baliga, just to update that he is leaving due to his personal reasons. His responsibilities were limited to the Senator and the Polipluz new initiatives what we have started one and a half years back. Now we have identified our existing national head under the succession plan to lead these businesses going forward. However, Mr. Baliga will continue to support the company till 30th September to ensure the smooth transition. Overall, we do not see any sort of major challenges as far as his exit is concerned since both the businesses have dedicated operating teams, the established business processes, and a strong second line of management. As such, we do not expect this transition to have any impact on our execution. We are moving or progressing in the same way that we were doing earlier, now it will be led by the existing national head. Sir, on the targets? On the targets also, like I told, the targets remain intact, what we have given initially for Senator and Polipluz. However, on quarter-on-quarter basis, it is difficult to give the numbers because still these are young initiatives, we are moving in a right direction, and we see that the targets what we have given are approachable. Sure. Sir, my second question is, you did indicate about taking certain SKUs in-house given the issues that were involved because of external reasons. Sir, how should we look at this with a longer-term time frame? Like is this something which is a change in strategy wherein we are looking to increase the insourcing part and reduce outsourcing? How should we look at it? Thank you. That is a continuous process. On a continuous basis, we keep on trying to see because the SKU profile also keeps on changing on a regular basis. Now if you see the recent past, you'll find that happens on a very frequent basis. Like earlier if you had a certain set of SKUs, which used to have extremely long life cycle. Now you'll find that the life cycle of the SKUs have also started coming down. It's a continuous process. If you talk about the kind of mix which is there, typically on a long-term basis, the idea is always that the plant should be manufacturing more complex pieces and the simpler pieces should be outsourced. Whenever the need arises that you have a situation like the current situation which had developed in the recent past in respect of the war situation. It is always possible for us to internalize the outsourcing SKUs in-house, like we did in the current situation. To answer your question, on a long-term basis, more complex SKUs would be in-house but whenever the need arises, we can make it a slight shift in the overall mix as required. Would it be possible to put a volume and a value number for outsourcing aspiration number for both faucetware as well as sanitaryware, please? Thank you. See, that keeps on evolving. On a long-term basis, we have been kind of maintaining a 50/50 in-house and outsourcing kind of a ratio. In case of Sanitaryware, it has slightly skewed more towards outsourcing in the recent past. That is also because of the fact that apart from the items that we are manufacturing, Sanitaryware would always involve certain items which will always be outsourced because it also involves a lot of bought out parts like cistern, seat covers, and the flushing mechanism which will always continue to be outsourced. We don't want to enter into those manufacturing. Same thing in the case of Faucetware also. There are certain SKUs which are from polymer or ABS and which are chrome-plated later on. These items also will continue to outsource. We don't intend to enter them into manufacturing of those SKUs. Apart from these SKUs, you'll find that the mix will keep on changing on a dynamic basis. There are certain SKUs which will always keep on outsourcing, apart from that, mix will keep on changing. The idea would always be more complex in-house, simpler ones outsourced. Sure. Thank you so much. All the very best. Thank you. Thank you. I request all the participants kindly limit yourself to two questions per participant. Next question is from the line of [Rahul Majethia from Stratton Oakmont Capital]. Please go ahead. Hi. Thanks for taking my question. We have delivered a great revenue growth, but it is not translated into operating leverage from our side. Is this margin dilution a result of the deliberate and aggressive pricing strategy to capture market share from the unorganized players, or is it just because of the raw material and fuel cost inflation? What is the extent of our pricing power to pass these inflated costs to the dealer network in the coming quarters? Thank you, Rahul Majethia. You will find that in the recent past, we have started showing our top-line growth. In the current quarter, we grew by something like 19.5%. In spite of that, our revenues kind of dropped by, you can say, 3%. We were something like 13.5% earlier. We were 10.13% in the current quarter. This has been primarily because of a certain number of one-time impact which has come in this current quarter. You can say it is one-time and transitional kind of a thing which has happened in the current quarter. I will just run you through. The main idea of what I will be communicating right now would be that over the year, full- year for financial year 2027, we expect that the margin that we were predicting earlier, 13.5%,- 14%, will be meeting those margins on a full- year basis. The impact of that margin that we see in Q1, 10% is something only because of certain one-time factors which have happened during this quarter. I will just try to run you through those one-time factors which have impacted profit in the current quarter. First was the long-term settlement, which impacted revenues by INR 6.3 crore because it was in respect of the previous September 2025 to March 2026. This was one time and is not expected to recur in the future periods. If I see the impact of this, INR 630 lakh 6.3 crore, it has a 1.3% impact on my margins. Apart from that, we operated with one single kiln during the month of May and June and also part of March. We are talking about Q1, April and May, we operated with a single kiln. It was only in the month of June that we started off with the second kiln. The fixed costs were being incurred for as it is, but only one kiln was under operation. You can say our production was impacted to the extent of 30%-35%. We produced only 65%-70% of what we would have normally produced. This had an impact of something like INR 3.7 crore on account of under-absorption of fixed costs. This impacted our margins by something like 0.75%. This is again one time and is not expected to recur in the future period. What we have also done during this period is that because the validity of projects typically is for one year, we tried to foreclose and deliver as much of material as possible to the outstanding orders because the prices of brass and even gas was on an uncertain side, and we were anticipating that it may be going up further in the subsequent periods. We tried to foreclose as much of the orders as possible, and that is why you will find that during this period, the proportion of project to overall revenues has gone up from 39% in the previous quarter to 43% in the current quarter on a quarter-on-quarter basis. On account of this increased closure, we have had an impact of something like INR 4 crore in terms of profits. This is translating into something like 0.8% on our overall revenues margins, on our overall margins. Apart from this, the price increase that we have taken, it has not reflected on the project side. Also what has happened, we took the price increase in the month of May. Even on the retail side, it takes some time for the price impact to take effect. What happens is, whenever a price hike is imminent to be announced, you will find that the dealers kind of rush in to put in orders, and these orders are dispatched whenever they are put in before a particular cutoff date. They are dispatched at the same old pricing. Because the price increase was taken in the month of May, we had a kind of backlog in orders, wherein even for the retail, we dispatched at the old prices and not in the new prices. That you will find that from the month of July onwards, all these dispatches have now started happening for the retail portion at the revised prices only. This kind of delayed price increase effect, you can say, will lead to a kind of improved margins in the future by 1.5%. If I see on an overall basis, I will just summarize the various one-time factors which had impacted in the current quarter. LTS had an impact of INR 6.3 crore or 1.3%. One kiln under absorption of fixed cost had an impact of INR 3.7 crore or 0.75% in terms of margins. Impact due to closure of old projects, increased closure of old projects, which took our project share also higher. About INR 4 crore or 0.8%, and the delayed price increase effect as 1.5%. If I add all of them, I will find that it is reducing to a kind of one-time impact of 4.35%. The current EBITDA was 10.1%. Effectively, if this one-time impact was not there, my EBITDA would have been in the range of 14.5%. We anticipate that for the whole year, that there would be still some impact in the Q2 also because projects, as I mentioned earlier also, they have a kind of validity of six months to one year. Once the projects with the old prices start getting closed and we start having new projects coming up, dispatches for the new project starts happening, we find that this change will start reflecting in the project segment also. Going forward, we anticipate that there will be a one-time impact of all these factors will not be there. Projects will start delivering the kind of margins that they're supposed to, from, let's say, post Q2. For the whole year, we are confident that the kind of margins that we talked about earlier, 13.5%-14%. As mentioned earlier also, adjusted for the kind of reductions that we are doing in terms of turnover, we should be able to deliver for the full financial year. Right. Thanks. My second question is more regarding the greenfield sanitaryware expansion plans. We have previously deferred our INR 130 crore-INR 150 crore greenfield expansion plan due to subdued demand expectations. Yet you have just posted nearly 20% top-line growth. Does this Q1 volume performance trigger a revival of the greenfield CapEx execution? If not, then how close are we to maxing out our current sanitaryware capacity utilization? Do we need to rely more on outsourced manufacturing to meet the higher demand? That will be all. Regarding the greenfield part, as we are seeing the continuous improvements which are happening as far as the demand is concerned, and especially in case of sanitaryware also. The growth is coming, like I projected the numbers also. We have this 14% growth. Prior to this quarter, it was roughly 10% growth was there. This is a positive sign in terms of reviewing the greenfield project which was kept on hold for a certain period. However, to say that means Q1 was a type of one-off, where the capacity utilization in case of sanitaryware was 61%, because of all these geopolitical concerns, and we stopped one plant operating from July onwards. Our both plants are operating from June onwards, means the operational utilization is roughly around 80% of the total capacity. Still, we have certain capacities left, we will review in terms of the greenfield expansion also. By end of this year, if we see and we expect that the demand will continue in the similar fashion, accordingly we will take the needful decision. Once the decision with respect to the construction of this greenfield will be there. The project will take around 18 months from the date of its start. We think that this positivity is continuing, and this is somewhat enable us when we take the decision in terms of the start of the greenfield project. Thank you. [Rahul], I request you to come back for a follow-up. Next question is from line of Anu Parakh from Anand Rathi. Please go ahead. Yeah. Hi, sir. As you said that the impact of the project business will be coming from Q3 onwards, so can you guide on the EBITDA margin for H2 FY 2027 and FY 2028? I didn't get it. You are talking about the current financial year or next financial year? Yes, for FY 2027. FY 2027 as I just mentioned, it is in the range of 13.5%-14%. We're standing by that guidance for the current financial year. For the next financial year, we would want to hold that for the end of the year because as we keep on going further into the period, it becomes kind of speculative. As of now, we are confident that we'll be able to deliver the kind of numbers we're talking about, both in terms of the top- line being in the range of 18%-20% and EBITDA margins in the range of 13.5%-14%. Beyond that, we would not want to go right now. We'll talk about it maybe once we start ending the year, and then we will be able to have a better idea about how the demand is progressing and holding up. We'll be able to guide better in respect of the next year. Sir, for H2 FY 2027, I was asking. For the full- year, we are still projecting the 18%-20% kind of growth for the revenue, and for the full- year, 13.5%. Quarter-on-quarter basis becomes extremely difficult because it is totally a factor of what one-time events keep on happening. For this particular quarter, if you had asked me in Q4, I would not have been able to project that we'll be having margins which will be growing by this extent. We had a few items which we knew that will be coming up, long-term wage settlement, et cetera, was there, which we had been telling you also, that some impact would be there on the margins in the Q1. Same thing we are saying for Q2 also. There would be some impact coming in the Q2 also because projects have not yet converted with the revised pricing. For the whole year, we'll be better able to guide. We should be ending with the 13.5%-14%, which we're saying right now. Understood, sir. By what timeline we expect to return to the historical average of 16% EBITDA margins? That is difficult to say because we can go on a year-on-year basis only. Once we are at the end of the year, again, looking at the way that the demand situation is continuing, the kind of growth that we have been able to take, the kind of operational efficiency that we have been able to bring, and the kind of competitive intensity which is prevailing in the market. Based on all these factors, we'll be able to guide you better at the end of the year. As of now, the visibility is there only for the current year, and based on the various factors which are prevailing right now, we'll stick with what we have given you for the current year. Thank you very much. Anu, I will request you to come back for a follow-up. Next follow-up question is from the line of Varun Julasaria from 360 ONE Capital. Please go ahead. Hi, sir. Sir, I just wanted to understand the gross margin trend, given that brass cost is still rising. Both copper and zinc is all-time high. How are we looking at the gross margin, and do we intend to take any further price hikes in the coming quarter? Gross margins have been impacted in the current quarter because of the fact that input prices have gone up, and we have taken a pricing piece, but that takes a little time to get reflected on the top- line. On an immediate basis, it an impact on the kind of gross margins we have had. Especially in the faucetware segment, the gross margin had been severely impacted. The brass prices are continuing to go on an uphill side only. Currently we have reached, you can say, a range of INR 900. If it continues to rise, we may have to take a further price increase. The price increase that we had taken earlier would start coming in on the retail segment from July and from the project segment from the next quarter, let's say Q3 onwards. If we take a further price increase, there would be some delay again in it actually reflecting on the top- line. There would always be a couple of quarters or one quarter where the retail would take two to three months, where the retail takes a certain time to get impacted, and longer period for project to get impacted. We continue to watch the increased raw material prices, and based on that, we will evaluate whether we need to take a further price increase in case of faucetware or in the case of sanitaryware. Sir, can our gross margin expand from here? It's come down to 45%-46%, which used to be 50% +. Is there any scope that this coming quarter or maybe Q3 onwards we can see increase there, expansion there? Again, the current quarter, 46%, as I mentioned, was an aberration. From the next quarter onwards or maybe from Q3, we'll again start seeing a kind of uptrend. From Q3, if the brass prices continue to hold at the current levels and the gas prices also continue to hold at the current levels, we should be back at the levels of 51%, which we typically used to have. This is again, Q1 46% is kind of a one-off margin and mostly impacted because of faucetware, where the brass prices have gone up exponentially, but the prices are taking a little time to get affected. Okay. On the faucetware expansion, given that we've reached 96% utilization, is there any plan to prepone the expansion that we planned in the 4 Q, given that the input demand— Before 4 Q, it is not possible because we have already undertaken the expansion, we should be expecting that increased capacity to come into effect from the fourth quarter. Before that, in Q2 and Q3 it is not possible. We don't anticipate any challenges in respect of material availability because both the in-house and the outsourcing have been functioning on a normal basis in the case of faucetware. We have a lot of scope for taking procurement from outside also. As well as in-house, we have been functioning at 96%. We can go beyond 100% also. It is possible to go beyond 100%. We don't anticipate any availability challenges in respect of material for faucetware till the time that this expanded capacity comes into effect. Okay, sir. This brass cost, last quarter, what was the average? This like INR 900 versus last quarter. The prices have been going up on a continuous basis. I'll just give you the kind of trend which has been there on a month-on-month basis. Like December, it used to be in the range of INR 665. January it went up to INR 747, February INR 758, March was the same range, April it was INR 800, May it was INR 860 you can say, and June it has gone up to INR 880. Okay. Currently in July, you can say it is in the range of INR 900. Okay. It's continuously going up, we may need another price hike. That's what I want to understand. Yeah, we are evaluating that situation. If it continues to go beyond INR 900, as of now, we have taken a price increase which is protecting us up to this current range. If it keeps on rising beyond the current range, let's say it goes up to INR 950-INR 1,000 kind of a number, then we may have to again think of a further price rise. Okay. Thank you so much, sir. Thank you. Yeah, thank you. Thank you. Next follow-up question is from the line of [Rahul from Stratton Oakmont Capital]. Please go ahead. Hi. I just have a last question regarding our discretionary advertising and promotion spend. Especially related with Kriti Sanon National Brand Campaign, are there any more ideas on the table, or do we have any plans to expand our discretionary A&P spend? If yes, then in what direction? That will be all. As of now, the budget is, as I mentioned earlier in my opening remarks, INR 85 crore. This includes the kind of spend that we'll be doing for TV, digital, social, everything. As we go forward, if we feel that the need is there, even for the current quarter, that option is always available. It is not that this is hard cast in stone that will be at INR 85 crore only. As of now, the budget is INR 85 crore. If we feel that we need to increase the budget, that can always be done as we go forward. Thanks. That would be all. Thanks. Thank you very much. Ladies and gentlemen, we'll take that as the last question. I'll now hand the conference over to the management for closing comments. Thank you everyone for attending this call and for 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. Bye. Thank you very much. On behalf of CDR India Limited, that concludes this conference. Thank you for joining us and you may now disconnect your lines. Thank you.