Ladies and gentlemen, good day and welcome to the queue for the placement on the conference call of The Supreme Industries Limited, hosted by DAM Capital Advisors Limited. As a reminder, all lines are in a 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 us 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. Ashvin Parekh from DAM Capital Advisors. Thank you, and over to you. Thank you, Yashashree, and good evening, everyone. On behalf of DAM Capital, I would like to welcome all to Supreme Industries Q4 results conference call, Q4 and extra 23. From the management side, we have Mr. MP Taparia, Managing Director, Mr. PC Somani, CFO, and Mr. R.J. Saboo, Company Secretary and GD Corporate Affairs. Over to you, Mr. Taparia. Thank you very much. I am M.P. Taparia, Managing Director of The Supreme Industries Limited. I, along with my colleague, Sri P.C. Somani, CFO, and Sri R.J. Saboo, Vice President, Corporate Affairs and Company Secretary, welcome all the participants who are participating in the discussion of the audited stand-alone consolidated finance results for the quarter and year ended 31st March 2023. The stand-alone results and the consolidated results are with you. I'll give brief on company product operating performance and other highlights. The company sold 147,414 ton of plastic goods and achieved net product turnover of INR 2,566 crore during the first quarter of the current year against sales of 128,607 ton of plastic goods and achieved net product turnover of INR 2,519 crore in the corresponding quarter of previous year, achieving volume and product value growth of about 15% and 2% respectively. The company sold 506,501 ton of plastic goods and achieved net product turnover of INR 9,066 crore during the year under review against sale of 393,908 ton and net product turnover of INR 7,625 crore in the previous year, achieving volume and product value growth of about 29% and 19% respectively. The total consolidated income and operating profit for the fourth quarter of the current year amounted to INR 2,610 crore and INR 529 crore as compared to INR 2,566 crore and INR 461 crore of the corresponding quarter of the previous year, recording increase in consolidated income and operating profit of about 2% and 15% respectively. The consolidated income and operating profit during the year under review amounted to INR 9,251 crore and INR 1,353 crore as compared to INR 7,793 crore and INR 1,446 crore for the previous year, recording increase of about 18% in consolidated income and increase of 6% in operating profit. The consolidated profit before tax and profit after tax for the fourth quarter of the current year amounted to INR 465 crore and INR 359 crore compared to INR 409 crore and INR 34 crore for the corresponding quarter of the previous year, recording increase in profit before tax and profit after tax about 14% and 11% respectively. The consolidated profit before tax and profit after tax during the year under review amounted to INR 1,111 crore and INR 865 crore as compared to INR 1,252 crore and INR 968 crore for the previous year, resulting decrease in profit before tax and profit after tax of 10% and 11% respectively. The business scenario of all the product segment of the company for the year ended 31st March 2023 as compared to the previous year has been as under. Plastic piping system business grew by 37% in volume and 20% in value term. Packaging product segment remained same level as volume and grew by 8% in value term. Essential product segment business grew 23% in volume and 31% in value term. Annual product segment business grew by 5% in volume and 10% in value term. The overall turnover of value-added product increased to INR 3,359 crore as compared to INR 2,911 crore in the previous year, achieving growth of 15%. The company has total cash surplus of INR 738 crore as on 31st March 2023, and a cash surplus of INR 518 crore as on 31st March 2022. The company plans to commit CapEx of around INR 750 crore during the year, including carry forward commitment of INR 156 crore at the beginning of the year. The CapEx plan is on capacities and introduce range of new products across all segments. The CapEx plan also includes setting up plant at Palanpur near Vadodara. Entire CapEx shall be funded from internal accrual. Business outlook. The country could contain inflation pressure, reaching across may group. Large investment base in the infrastructure with central and state governments. Forecast about monsoon is good, giving hope to boost agricultural production in the year. Demand for housing is quite robust. Due to weak world economic forecast, the commodity prices are on downward path, which are well to boosting growth in our country's economy. Cumulative effects of all these developments enable the company to achieve 29% volume growth in the year, thus recovering quite a bit of lost positions in last two years. During the year under review, the company achieved volume growth of about 37% in plastic pipe system made from different plastic materials. Overall, the company sold 75,046 tons of pipe system compared to previous 74,295 tons of the preceding year. Due to addition in PVC resin prices, revenue growth was around 20% over previous year. PVC is a predominant raw material in the company's plastic pipe business. During the year 2022, 2023, the prices were again literally in rollercoaster mode for second year in succession. The prices of PVC were in downward trend from first of March 2022 to third week of November 2022. Overall, prices of PVC went down by INR 67 per kilo during that period. From fourth December 2022, prices started increasing till after February 2023, the rise was due to INR 58 per kilo. From 4/2/2023 onwards, the increasing trend in price of PVC was now arrested. Prices have now proved to stable at lower level, leading to good consumption in the country. The country experienced growth of around 32% in PVC resin consumption, as the previous 2-year growth was negative. The government at the central and state have taken several initiatives like Focus on Self-Driven Mission, Swachh Bharat Abhiyan, Sanitation, Affordable Housing, Smart Cities, and many more, which all help to boost demand for plastic piping product. The initiatives are much more pronounced in the past year. The same trend continues from beginning of this year also. The company incurred additional INR 398 crore in the year under review to plant material at its various plant to build higher capacities, increase range, and commissioning of three greenfield project at Guwahati, Assam, Erode in Tamil Nadu, and Cuttack in Odisha. All three greenfield plants have gone into production during the year, one after another. The company has successfully launched electrofusion olefin fittings and compression molded fittings with a portfolio of 179 numbers. The company plans to increase the range substantially and add another 140 new products during the current year. The company produced PE aluminum PE pipe for house service connection. These type of pipes are now part of house connection design approved for non-central steam. The compression type fittings for these pipes are also developed to offer complete system of polyethylene, aluminum, polyethylene pipe application. The company has started manufacturing piping product at one more plant in South zone at Perundurai district Erode in Tamil Nadu since December 2022. In addition to the existing plant at Nellore, Telangana, making its presence stronger in Southern India. Erode plant is a strategic location to service Tamil Nadu, Kerala, and part of South Karnataka coastal effectively. Company has taken in hand to double the capacity of PVC pipe at Erode and also start manufacturing PVC pipe and blow molded water tank at same site during this year. The business of cross laminated film had a degrowth of 5% in volume terms through the year under review. Company introduced many new made-up product from XF film and successfully acquiring customer by entering in additional world market. Export grew by 12% over the previous year with project in 22 countries inclusive globe. The company's furniture business grew 11% by value terms against estimated growth of 3% in plastic furniture industry during 2022-2023 or previous year. The company could grow more than the industry due to intensive marketing effort, consistent business policies, launching of several new range of furniture, increasing coverage of uncovered market, and a strong brand position as a premium brand provider. The company's focus on creating large retail display showrooms for plastic furniture are successful. Industrial component division is doing reasonably well. The division continues to expand its customer base to optimally use its production capacities. Business of home appliance and white goods, which constitute largest share of this division, is seasonal in nature to some extent and is likely to improve further with diversified customer base and acquisition of new businesses. The company acquired a prestigious order from ECIL for manufacturing EVM machine and EVM creation related product and subassembly. All these factors resulted in revenue growth by nearly 30% year-over-year the preceding year. Automobile, white goods, engineering, FMCG company enjoying relatively better domestic demand over previous 2 years led material handling division to grow 16% by volume and 28% by value for the year. Company regular pitch to reach new user of injection molded pallet, educating them about the features and benefits of the same, providing value-enhancing solution for safe and effective economic material storage and transport has given positive and encouraging result. Company confident of this growth momentum for coming year also as it continue to strengthen its customer base and introduce several new product in this segment of business. The year under review was very successful year for the company's cylinder division, which plant running at 90% of its capacity and fulfilled its supply commitment. Company supplied 4.72 lakh cylinder in aggregate till March 2023 to Indian Oil Corporation against a LOI for supply of 7.35 lakh cylinder. Company expect further orders from Indian Oil Corporation during the year and continue to expand its geographical reach to other countries. Expansion of existing capacity has been successfully completed and now increased capacity of 1 million cylinder per annum is in place. In performance film division, on the positive front, change in end product mix and focus on direct sale to brands and value-added products resulted in growth of 3% in volume and 21% in value term. Division is now registered under EPR, that's Extended Producer Responsibility, and is supporting government initiative for sustainability through plastic waste management. The company expects to achieve volume and value growth in this business in the current year due to increase in customer base in India and abroad. Now the packaging division is pushing its continuous effort to remain on growth mode with growth in 5% volume and 11% in value term. All products across category in the division assert quality and value for money. Division is closely working with customers end user and developing new applications for varied industry keeping their needs in mind. Division is focused to grow in volume, do value engineering, adopting new technology in manufacturing to drive improved profitability. Continuous growth is witnessed in defense, export and insulation business. This is a brief and overall summary for the quarter and year under reference. Thank you for your patience. I and my colleagues, Sri P.C. Somani and Sri R.J. Saboo, are available to reply on various queries raised by you. Thank you very much. Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to restrict their questions to one time. You can join back the queue for follow-up questions. Ladies and gentlemen, we will wait for a moment while the questions are assessed. We have our first question from the line of Venkatesh Balasubramaniam from Axis Capital. Please go ahead. Yeah. Thank you for this opportunity. You had communicated that in the inventory loss in the first half of the year was between INR 200 crores-INR 250 crores. Can you tell us if there was any inventory loss or inventory gain in the second half of the year and especially the fourth quarter? First quarter inventory gain of around INR 60, 70 crore. Besides that, very difficult to give. Okay. First half, we lost INR 250 crore in inventory loss. Yeah. On the higher side of INR 70 crore gain, that made the loss INR 180 crore rupees in inventory loss for the year. Okay. This INR 70 crores, was it in the second half, or was it in the fourth quarter? Fourth quarter. Okay. Thank you for that. What is your volume, revenue and margin expectation for the next year? Volume growth, revenue growth and margin. We anticipate 15% volume growth. Okay. Margin will be between 13.5%-14%. Okay. Now, why is your- Turnover will be in excess of INR 11,000 crores. Okay. Okay. Because your 13%-14% margin expectation seems very, very low, because in the fourth quarter you have done almost like 18%+ kind of margins and it is almost 18.5% kind of margin. Even if you adjust for that INR 70 crore kind of number, you will still get to almost 17.5% margin. Why are you guiding for such a low number for the next year, 13%-14% margin? You know, we are 17% comes to 3% for the quarter. Okay. Still that is still 13.5%, right? Yeah. You see, ultimately the products are seasonal. Agricultural does not command that much margin in rest of the year. We have to factor in the overall average what we are getting. Okay. Understood. Can you just add one last thing. What is your capacity at the end of FY 22, and what will be your capacity at the end of the next year? Our current capacity is 1st of April 2023, 8 lakh tons. On 31st March 2024, it will be 9.5 lakh tons. Okay. Thank you very much. All the very best. Thank you. We have our next question from the line of Rahul Agarwal from InCred Capital. Please go ahead. Hi, sir. Good evening, and congratulations on a strong recovery business. The first question is, how's been the start to the first quarter, April of this month? PVC prices are now stabilized, so any views on PVC prices and the start to the volume for this season, please? The first quarter is going to be volume-wise higher potential than last year first quarter. Last year first quarter was quite weak. This year demand for agricultural sector is quite good because PVC prices have gone down substantially when they got introduced in April last year. This year our price types are, yes, they're mostly agriculture segment, and their demand is quite low price. The second is demand from infrastructure. Fourth is price is also quite good because they can lay the pipe before rainy season. April, June, demand from infrastructure and agriculture sector, both are better than last year. Sir, any outlook on PVC pricing? PVC pricing outlook, the market price today, they are, their prices may range around $50 plus minus could continue. It will be around INR 4. Now, the price have dropped to such a low level, it can drop by INR 4, or it can go up by INR 4. Going up is difficult. The world economy is not in great shape. Right, sir. Second question was on, you know, for Somani, the rates for the company on effective basis has been pretty low, like 19%-22% for the last 3 years. Any specific reason, sir, why is that, and what is the guidance for fiscal 2024? No, no. Can you repeat again? Income tax in the P&L, the rate is about 19%-22% average for even fiscal 2023 and last two years. Any reasons why the income tax rate is lower than the marginal rate, and what should we be building for fiscal 2024? No, no. If you are looking at standalone results, then we have a good income from dividend from Supreme Petrochem. Since we are distributing the dividend more than debt, the whole income of dividend becomes tax-free under DDT. I'm looking at Consol numbers, sir. I'm looking at Consol numbers. No, no. Consol numbers because the profit, share of profit from Petrochem, we are taking net of this only. There is no tax further to bear on this in our accounting. Oh, okay. Okay, that explains. Thank you so much, sir. Wish to have a virtual meeting with you. Thank you. We have our next question from the line of Sonali Salgaonkar from Jefferies India. Please go ahead. Thank you for the opportunity. Congratulations on great set of margins in Q4. My first question is broadly towards this pipe drinking water or. You did mention some part of it in your opening comments. It would be useful to have sort of an update as to what is the development of this project, and if at all you can share what kind of sales have we approved so far out of this. Drinking water. Just a minute. Yes. Nal Se Jal. Huh? Nal Se Jal. Nal Se Jal scheme, what is the outlook and what is the- Nal Se Jal. Nal Se Jal scheme. Nal Se Jal scheme. Now that the work is started now more effectively, they are trying to see that by 2024 it end. A complete Nal Se Jal throughout the country. It will look possible because some states are not cooperating or some states are not doing the thing. Quite a large portion of the country is going to be covered by Nal Se Jal. By 2024 means within 20 months from today, we'll be covering most of the country Nal Se Jal. Up to I think 600,000 village. It is a very gigantic task, but central and state government both are working very effectively and strongly nowadays. Just today's paper, the news is they are giving 40,000 connection only in Uttar Pradesh. From this is the way government is working, as we have seen them move in vaccination drive, they may achieve the covering the entire country by December 2024. Sir, you did mention that some of the states are not cooperating. Is approximately how much of the country is already covered? We don't know. What is a paper item I couldn't tell you. I don't know the state also which is not cooperating. Personally, I believe they all want to cooperate. Okay. Nal Se Jal, who will not like to provide it in their state? Right. For Supreme, is there anything, any kind of sales or margins you could share that you have accrued from Har Ghar Nal Se Jal so far? We do not give it. We should give separate numbers. Only we can say we are participating to supply them pipe and we supply them fitting. Okay, sir. All right. My second question is regarding to Mr. Somani, if you could help us with the segment-wise capacities as of March 23. Yeah, sure. Plastic pipe divisions, 600,000 metric ton. Industrial products, 64,000 metric ton. Resin products, 90,000 metric ton. Consumer products, 49,000 metric ton. What's our average utilization? You see this 800,000 capacity, part of the beginning capacity was 365,000. Right. If you look from the opening capacity, we have sold close to 510,000, 506,000, it will be around 65%-70%, 66%, 67%. Got it. Just one last question. The value-added sales in Q4, correct me if I'm wrong, but are they showing a minor decline in absolute terms compared to last year? Our Silpaulin film, which was at one point of time was 100% value added, due to the poor margins or the margins below 17%, we take it out of the value-added product. It has gone down from INR 972 crore to INR 943 crore. Understood. Silpaulin has now gone out of value-added product because the margin has slightly come below 17%. Is that right? It was, in the fourth quarter it gone down. Understood, sir. That's all from my side. Thank you. Thank you. We have our next question on the line of Dhananjai Bagrodia from ASK. Please go ahead. Sir, congratulations on a fantastic set of numbers. Would this volume growth been predominantly, our company have been ahead or would this be an industry-wide phenomena kind of thing? Industry-wide the growth was 82% of that PVC resin. Mm-hmm. We have grown 87%. Okay. industry-wide would be 82%, okay. for your other businesses, in other verticals, do we have any like revenue guidance on what we're seeing in those? Which other? Hello? The other verticals are in the range of 9%-15% growth. Okay, fine. Sure. Yeah. Thank you so much. Thank you. We have our next question from the line of Bhargav Buddhadev from Kotak Mutual Fund. Please go ahead. Good afternoon, team, congratulations for a good set of numbers. My first question is, sir, we've started this Erode plant in South India. Can you quantify what could be the savings in freight cost towards supplying material to, say, Tamil Nadu, Kerala, South Karnataka? What could be the improvement in terms of delivery time? Because I believe earlier the material used to come from the Jadcherla plant in Telangana. The saving of the freight, it all go to my customer or to go to my users. Sorry, sir, how much is the margin here? The difference between Arakkonam to Kerala and Erode to Kerala is 3.5%. 3.5%. Okay. Great difference. Okay. This will help you make competitive in South India. It could make my goods more affordable to the customer of Kerala. Okay. Customer in Tamil Nadu also. Make them more affordable, and the goods can reach in the same day. Same day. Earlier it used to take what, two, three days? 3 days. Now it should reach same day. We can work with low inventory also. Okay. Okay. We can work with the low stock of finished goods. Okay. Okay. Secondly, sir, we've started this plant in Kolkata as well. How about the economics in East India? There also we'll have savings in freight cost and delivery time. Same, same. It will be very obvious, sir. If we're in same location going to Odisha, then it will help. Our plant is close to Cuttack. Cuttack to Erode the freight will go down dramatically. Okay. That's a nice place. You can go. Bhubaneswar is a commercial area. Yes. Plant is very close to Bhubaneswar and Cuttack. Okay. Okay. Earlier, the delivery used to happen from which plant in the eastern part of the country? Kharagpur, sir. Kharagpur. Okay, sir. Okay. Lastly, sir, just wanted to know what has been the growth on the CPVC portfolio for us in FY 23? Yeah. Volume growth was 24%. Twenty-four? Twenty-four. 24. Okay. Value growth? More than 40%. 40%. Okay. Okay, sir. Thank you very much, and all the very best. Thank you. We have our next question from the line of Keshav Lahoti from HDFC Securities. Please go ahead. Hi. On that kind of great set of numbers. Just to follow up on the last question, what is the mix of CPVC right now quarterly? Sorry? What is the mix of CPVC portfolio? I'm still hearing you. Mr. Lahoti, can you use your handset, please? Your voice is not very clear. Yes, sir. The share of CPVC in L&T? Yes. Very classified information. Oh, okay. Copy. Got it. What is the trend on the Agri demand as of now? Agri demand is quite good. Sorry, I missed that. Agri demand is quite good. You see, season started. Season continues up to middle of June. Too early to say the growth, what growth we can get. Growth is looking quite good compared to last year. Okay. One last question. As you highlighted, CapEx for the year end would be something like INR 50,000. Did you get some allocation among the segments? You see, I had given the verification for the current capacity. The maximum expansion is taking place in plastic pipings. 90% of the capacity increase will be in the plastic pipe itself. Okay. Got it. Thank you. That's it from my side. Thank you. We have our next question from the line of Praveen Sahay from Kotak. Please go ahead. Thank you for taking my question. Sir, can you give some indication on the industry growth for the piping, pipes and fitting segment for 2024? For the business as a whole it will be 13%-15%. That is for your or for industry as well? No. For business as a whole, between our company may grow 20%. It's a volume term. How can I forecast? Yeah. Yeah, yeah. Second question, sir, on the geographical mix for the pipe segment. Can you able to give the geographical mix of your pipe segment? Like, how much is from north, how much is from south? We sell throughout the country. Yeah. Equally throughout the country. Sir, maybe more or less it depends, but we sell throughout the country. Mm-hmm, mm-hmm. Okay. Lastly, on the capacities, sir, the three plants you know, initiated at Guwahati, Erode and Cuttack, is it possible to share the capacity of these three plants? Is 80,000 ton. Yeah. All three put together, yes. All three are 80,000 ton. Okay. Thank you, sir. All the best. Thank you. We have our next question from the line of Sneha Talreja from Edelweiss. Please go ahead. Thanks. Also congratulations on great set of numbers. Sir, just two questions from my end. Would like to know, the contribution in this particular quarter from Agri pipes, I mean, the growth rate of Agri pipes would have been higher or was it plumbing which was driving the growth or was it infra? Which one? In Q4. Sir, the contribution for the year interest, you can just give some highlight. Like you mentioned for CPVC it was 22%. What would have been the case for contribution from infra and from Agri? We don't give a proportion%. It would be just now to tell you how much growth came from infra, how much from plumbing, how much from Agri. Cannot say. Okay. Was Q4? Pardon? Sir, was Q3 demand present in Q4, or will we see the major growth only in Q1? Demand starts from Q4, but the growth of only the first quarter, I mean, April, June quarters. It start growing, from, after, Pongal, after twentieth January, demand starts. Okay. Was this year better in terms of demand compared to last year? Demand better than last year for sure, otherwise how can we grow 39%? Okay. Second, I wanted to take an update on the Maharashtra project that we have received from HDPE Pipes. This was INR 48-odd crores, INR 6 crores, 9-13 months. Any number here, how much have we achieved, or any other government projects also that we have added from update here with the relationship? Yeah, between 2012 we are supplying them per month. If you continue to work, it will run for 24 months. Any other government projects that we are working on apart from Maharashtra? Like in Maharashtra, we are supplying them INR 20 crore almost every month. Any other government, to Maharashtra government. Okay. Any other government projects apart from Maharashtra that we are supplying, any Maharashtra apart from supplying? we are supplying projects in Gujarat. We are supplying from our Kharagpur plant, we are supplying from our Maharashtra plant. We are supplying to various Indian government requirements from our plant in different location. in Maharashtra, we are supplying direct to Maharashtra government. Understood. Understood. Got that. Thanks a lot, sir, and all the very best. Thank you. Ladies and gentlemen, to ask a question, please press star and one on your phone. We have our next question from the line of Achal Lohade from JM Financial. Please go ahead. Achal Lohade, I have unmuted your line. Can you please ask your question? Good afternoon, sir. Thank you for the opportunity. What I wanted to see, sir, if you look at the past, in the past PVC business, the blended realization, the realization to average PVC resin price used to be about 1.3-1.4. The last 3 quarters we have seen this number going up to 1.7. Is there any structural change in the mix which is driving this, you know, the margin of gross margin from the plastic pipes segment? In our piping system, we are not only PVC pipe. We increased the percentage of polyethylene pipe. The pipe is much more expensive than PVC. We increased our sale of CPVC, which again much higher than PVC. We increased the sale of polypropylene, which also much higher than PVC. Would that also have a higher margin as well? Is that a fair understanding compared to PVC? Margins, I cannot say margins different for different product, but overall it will definitely increase the value. Understood. You know, with respect to the HDPE, PG, is that also driven by the project business? No, PE, PP mostly by private only. Okay. For plumbing. CPVC for plumbing. Polyethylene, we have got both the set of business, trade market and project, government office, both. Right. just, one clarification, in terms of the, you know, the sales, project versus retail, would you be able to share some, sense what is the mix of, you know, from your sales company to, project or company to retailer distributors? Those are not really available with me. Is it a substantial change compared to what it was, say, two years back or three years back, or it was similar? We are selling a unit also to trade. We sell to trade and we sell to government. Right. What will be a change in the mix, that's the question I had. There's no difference, Achal, because government, there are many customers. We supply to both markets. I don't have a percentage before me, so I cannot tell you differently. We supply trade also, we supply to government also. Understood, sir. Polypropylene and CPVC, we supply only for plumbing. Got it. Just a clarification, you know, with respect to the ratio, what I was asking in terms of the realization of PVC resin price, this is more sustainable one. Is that a fair understanding here in terms of the explanation what you gave, what has driven? That is more structural change or, you know, ongoing ratio would be a fair assumption? I can't say because we were never only a PVC pipe company. Now we are increasing capacity of polyethylene also, we are increasing capacity of CPVC also. PVC also we are increasing capacity. We are increasing capacity in all the segment where we are operating. Great. Thank you so much. From Investec. Please go ahead. Hi, sir. Thanks for the question. Two questions. First is, sir, on Supreme Petrochem you indicated that the margins are below 17% right now. Sir, what is the strategy that you are adopting over here? Are you looking to boost volumes or increase prices? How should we understand that, sir? Okay. We increase the price now. Okay. anything beyond increasing prices, any new product creation? If you allow me to complete answer. Sorry, sir. There were so many look-alike fake products came in the market, and they were selling at a much lower price than us, 20%-25% lower. We were forced to drop the price. Finally, in last 3-4 years, we found out that the quality was actually useless. They were forced to say that below basis, that quality cannot meet the comparable of our Silpaulin. Now we are taking our Silpaulin product at the right price, which was there, and we were required to drop, and now we are correcting the price at a justifiable level. We can justify the investment. Sure, sir. This is helpful. Sir, my second question is, over time, the company continues to launch new products. Just if you can help us with a list for what all categories, the company will be crossing, say, more than INR 150 crore sales. Few variables which come to my mind would be probably like, tanks, fittings, walls. Can you list down five, seven new categories which over the last three years that we have come in and which will be crossing more than INR 150 crores of revenue? No, three years is too short a period to achieve such a turnover. Normally, we calculate the five-year timeframe. As of today, I can only say one thing, that we are happy to report that whatever product we launched in last five years, every product has been well accepted in the market, has very appreciated, and we are further adding to the range. Presently, I don't recall that what was the quantum of target we have, we achieved by the new product added in last five years. We don't have. I cannot give you any number, imaginary number. One thing I can only say that whatever product we launched, all were successful. Sure, sir. sir, just last question. It is more from an industry standpoint. It is not something with respect to Supreme Industries. sir, when all the companies report pipes and fittings volumes, sales volumes, should we assume that it is only pipes and fittings? It is not at all resin trade volumes included over here. sir, if you can speak on behalf of the industry also, it would be great, sir. Can you repeat your question, please? Sir, my question is, when companies report pipes and fittings sales volumes, does it only include pipes and fittings or there is scope that it could also potentially include resin sales over here? Resin sales, no. We don't make resin. We don't make resin. Normally, it's not. Resin is only made by Finolex. Correct. I'm referring to the traded volumes on resin. If we buy at a lower price and if we sell at a higher price, we would not put it in our pipes and fittings volumes, right? Is that the industry practice as well? Ritesh, even in the industry, other companies, we feel if suppose they are including pipes and fittings, it will be pipes and fittings only. The resin will not be included in that. How resin can include? How it can be included? That's not a product sales. That will be a traded sales, no? Correct. Sure, sir. This is very helpful, sir. Thank you so much. Thank you. We have our next question from the line of Rishab Bothra from Anand Rathi. Please go ahead. Hello. Sir, can't hear you clearly. Please use your handset. Congratulations on good results. Am I audible? No, sir. Not visible. Rishabh, are you on Rathi? No, Rathi. Hello. Yeah. Yeah. Congratulations on this set of numbers. Can you just tell me the quantity volumes for segment, volume growth? Okay. Plastic piping. Yeah. Quarter four, 112,293 metric tons. INR 1,12,000? 112,293 metric tons. Okay. For industrial products, 60,508 metric ton. Okay. For fitting segment, 13,532 metric ton. All right. For consumer segment, it is INR 5,081. Sir, secondly, the new three plants which have been commissioned, what is the revenue potential from the plants? When will it optimally utilize the capacity? It will be optimally utilized this year only. This year only. Optimally, the markets are already there. Now we have put the capacity to meet the local requirement from the plant situated in the state. Earlier, it was being supplied from other plants. Okay. The market was there and the capacity started running, so they'll be all sold out this year. Okay. Actually, in Erode plant, we have now taken and enhanced double the capacity. Presently, capacity is at 3,000 ton monthly. Now we are making an additional further 3,000 ton. It may start by November this year. Okay. Sir, my next question is on the associate company. Last year I think there was a substantial profitability in that company. How one should look at the company profitability going forward? What would be the contribution rate? I think this is best replied by Mr. Rakesh Nair, the Chief Finance Officer and Director of Indian Oil Corporation. He's on call. Awesome. Is he able to reply to your question, please? Yeah, yeah. So [we'll ask Supreme Petrochem]. Okay. Is he on the call, sir? Sorry. Is he on the call? No, he's not on this call. Okay. He's on a different call. They have a different call or different presentations, so you can- Fine. connect with him. if you could throw some insight on the. Later, yeah. All right. Okay. Thank you, sir. Thank you. We have our next question from the line of Praveen Sahay from Prabhudas Lilladher. Please go ahead. Yeah, thank you for taking my question again. It's related to the industrial part where we had seen for, year 2022 as well as 2023, there is a very good volume growth. Also you had mentioned about the growth where from the home appliances, white goods, share has increased and growth was there. Can you guide us for the way forward, like the similar kind of a growth you are expecting the way forward as well in this segment? It's been a good year for them this year also, the division. The same home appliances or white goods are driving the growth. Way forward also you are expecting from there only. Composite of the cylinder also. That is also part of the division. All three, industrial component, material handling product and composite cylinder. Mm-hmm. All three have done good, and we are expecting a good growth actually. The cylinder utilization ratio can you give? Like, you have now 1 million cylinder capacity. How much is the utilization level? Last year As far as I have gone into production or commenced only in February. Mm-hmm. Last year capacity, initial capacity of 5 lakh cylinder. Last year we have utilized 90%+. Now you have visibility to utilize this INR 1 million as well. Yeah, yeah. We hope so. We hope so, yeah. Okay. Okay, great. You had given, you know, answering to the one of the question that other verticals will grow at like 10%-15% of growth. That, that's why, just asking for industrial where the growth were higher. Higher industrial grouping product volume by will grow 10% this year. Okay. Thank you. Thank you. We have the next question from the line of Rahul Agarwal from InCred Capital. Please go ahead. Thank you for the follow-up. Sir, it's been some time the new HR head joined the company. Could you elaborate a bit of whatever you could share in terms of changes he has made in the organization, what kind of recruitments have happened, and what should we expect, going into next 12 months? He started putting set of leaders in the company. He's already engaged with 2 quarter age for his leader, and then he's involved in all our new recruitment. We are very happy the way he is moving forward to improve the capability of our key people. He's working overall to improve the capability, the human factor. Sir, any specific gaps you want to fill, where he's helping or is it like, very general across the company? In general, there is no gap. Always change in human being is going through a change here. The proficiency of working human is. That is how he's doing very nicely. Got it. Secondly, sir, in terms of piping, pipe division, you know, what is the count of distributors now and the thought process for 50-24 in terms of new additions, if you're thinking on those lines? Pipe fitting, the total distributor strength as of 31st March is 1,443. The target is to add another 100 channel partners in the current year. How many you add in this year? One thousand two fifty to one thousand four forty-three. Okay. Okay. Got it, sir. Best wishes for 2024. Thank you so much. Thank you. We have our next question from the line of Hrishikesh Bhagat from Kotak Mutual Fund. Please go ahead. Yes, sir, just one follow-up. You mentioned INR 70 crore inventory gain in this quarter. Is it possible to quantify what was the inventory gain in the same quarter last year? Last year there was no inventory gain. As we started booking last year, yeah, first quarter. As we started booking in I think January, March last year. In October it was INR 160 October 2021. Mm-hmm. Then when we reached on first upgrade, it came down to INR 140. All right. I don't see any reason of gain in January, March 2022. Okay. Don't see any reason. Okay. Don't regard to them. There's no reason for any increase again. That's just finding out here. One forty-four to one thirty-seven to one forty-four. There can't be gain now. Okay, sir. Thank you. Thank you. We have our next question from the line of Mohit Agrawal from IIFL. Please go ahead. Thanks for the opportunity. My question is on the volume growth guidance for FY 2024-2025. The last five years, volume growth has been around 6.5%-7%. Just wanted to understand that this 15% number, does it include impacts of some pent-up demand that you expect on the agri side? Or is it more like a sustainable number, 15% going forward? No, the last five years when you calculate, remember two years of COVID. It may decrease in the economy. Two year of COVID, please don't forget. Nothing compared to that. But now because we are getting more, we are reaching more areas of the country. We are adding more product portfolio. We are appointing more distributor. We are increasing our capacity. We are increasing our range. We believe we should go on growing between 12%-15% going forward. Okay. Understood, sir. Sir, any comments on the level of channel inventory now? You had earlier stated that February onwards, the restocking will start. Any comments on that? Presently the channel, according to our knowledge, they are maintaining only normal inventory. No extra stock because trend is not bullish. If the PC price or the polymer prices may go down or may remain at this level only, because the commodity prices worldwide are remaining soft. There's no apparent reason for them to put, keep extra inventory. Normally inventory they are running to be able to run the business. Okay, sir. Understood. Thanks a lot. Thank you. We have our next question from the line of Chirag Lodaya from Value Quest. Please go ahead. Sir, thank you for the opportunity. Just one clarification. This 13.5-14% margin is for the overall company or you are talking about Plastic Products division? Whole company. What are the Plastic Products division margins are going ahead? It will forecast for the full year. Today we can tell overall the company 13.5%-14%. Commodity prices remain so volatile. The rain found also becomes a great difference. Okay. Okay. earlier you used to guide about, you know, 60% is a normalized margin. 3%. Sorry? Last year the margin was 3.3%. Right. 3.3. EBITDA margin. Yeah, we are talking EBITDA only. Correct. Okay. Thank you. Thank you. We have our next question from the line of Navid Virani from Bastion Research. Please go ahead. Hi, Chirag. Good evening. Thank you for the opportunity. Sir, we cannot hear you clearly. Please use your handset. Am I audible now properly? No, not clear. Not audible fully. Is it better now? Yes. Please go ahead. Better. Now better. Yeah. Thank you for the opportunity. Just wanted to have some understanding on the competitive scenario for the packaging business, sir. Packaging, this segment, because we are making three product in packaging. Protective packaging, cross lam, and transformer packaging. Can you give us an update on the competitive scenario as to how is it shaping up? Because most of these products, if I'm not wrong, used to qualify as value-added products before, which might not be the case currently due to increased competition. Just wanted to understand that. Only out of these, three component of the packaging, co-extruded film only was qualified as value-added. Now this year we have removed it because margins have gone below 17%. That business went into difficulty for last three years. Every year the margins are sinking. Okay. Now we believe that the situation will be contained now. If the competitive market is not selling properly. Got it, sir. Thank you. That's helpful. Thank you and all the best. Thank you. We have our next question from the line of Devansh Nigotia from SiMPL. Please go ahead. Yeah, sir. Thanks for the opportunity. Composite Cylinder, if you could just re-clarify on the current capacity and the orders that you mentioned, and also the value of total order or, what is the value per Composite Cylinder? The letter of intent what we received from IOCL for 735,000 cylinders. The order value was at least close to INR 170 crore, out of which about 472,000 cylinders have been supplied till March 2023. Our current capacity, which was 5 lakh cylinder per annum, has been doubled now in February 2023. Now we have a 1 million cylinder capacity per annum. Apart from the balance order of IOCL, we expect further order from IOCL. We are also looking at many inquiries from the other geographies of the world market. Last year we have been utilizing 90%+ capacity. This year it is yet to be ascertained how much inquiries get satisfied, but we are quite hopeful of utilizing the capacity to an optimal level, 70%-80%. Okay. One, how much does that translate to value for the current capacity if utilized fully? Also over the next three, four years, what kind of triggers and how big this opportunity can become in terms of revenue contribution? Utilization, the current capacity translates to INR 200 crore per annum. Okay. Okay. In terms of scale over the next three, four years, how big it can become and any constraint that we are seeing for its scaling up to let's say INR 400 or INR 500 crores. It all depends how the policy is accepted in the market or is it promoted in the market by the oil marketing companies. They'll be required to put up the plant geographically. It cannot be catered from a single plant. Okay. Yet to be seen. Sir, over last 3, 4 years, we see that lot of capacity in pipes has come over and utilization has actually dropped down significantly with some recovery shown this year. Do we see a risk to the margins structurally, any risk we see? I don't think so, I think. The total capacity expansion that has happened over three, four years by the new players and even the existing players and, volume that should not commensurate. We are expanding, we should gave you a number. When we are expanding, we will inform you. There is a good potential to grow. We will grow and thrive. Okay. Thanks a lot, sir. We wait for more. Thank you. We have our last question from the line of Aasim Bharde from Geojit. Please go ahead. Yeah. Hi, just one question from my side. I've heard your comments on the packaging business, especially the cross lam one. You will be introducing new products or you already have an expand and will be hiking prices gradually. On margins, will this segment be a 10%-12% margin business from here on or can it go back to old levels, say 3-4 years back? Any outlook on packaging segment margins? First, we are trying to make it a value-added item, which means we have to bring it to 17% level. First our effort is to make it 17% level, which came down to 13%. Okay? Gradually I think that 13 will take time to reach 17. The segment margin should still be somewhere around 11, 12% for the next 2, 3 years. No, why? It should normalize this year only, huh. Okay. We are working to make it 17% this year, huh, because there's no reason. It's a first half product. They've just been surprised because of the lookalike product we're selling at 20% lower than my price. When that lookalike product is discovered by the customer, they don't last. Sure. This commentary is something that you've been giving for the past three, four years. Our margins are being sub 10% since last three years. I just wanted to get a sense of the outlook on margins. Will that jump this year because you are already put in place new products and you're gonna hike prices? What are the usual hikes we can show, right? Yes, we've seen our other packaging business, corrective packaging product also had a inventory losses. Okay. They are using LDPE, and they also fallen very drastically in the first nine months. Okay. Therefore, this year the packaging margins were... Because the quantum of business is comparatively small compared to piping divisions. Yeah. Yeah. They also had inventory losses. Going forward, cross laminated will definitely improve to the 60%, 70% what we are talking. In other segment of packaging are also going to improve. Definitely you will see a remarkable change in the margin profile. Can you give any like rough quantum as to what kind of a growth in ex-margins shall we expect in FY 2024 for example, versus FY 2023? Packaging, if you look as a combined packaging, 17%-14%. 13%-14%. Thank you. Thank you. I would now like to hand the conference over to management for closing comments. Over to you, sir. Thanks to all the participants. Thank all the investors for their very incisive questions. We are very thankful for the support extended throughout the year. Thank you very much. Thank you. Thank you, sir. Thank you very much. Thank you. On behalf of DAM Capital Advisors Limited, I now conclude this conference. Thank you for joining us, and you may now disconnect your lines.