Ladies and gentlemen, good day, and welcome to the Q1 FY24 earnings conference call of Supreme Industries, hosted by DAM Capital Advisors 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 the conference call, please signal an operator by pressing star then zero on your touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Aasim Bharde from DAM Capital Advisors. Thank you, and over to you, Mr. Bharde. Yeah. Thank you, Michelle. Good evening, everyone. On behalf of DAM Capital Advisors, I would like to welcome everyone to Supreme Industries Q1 results call. From the management side, we have Mr. M.P. Taparia, Managing Director, Mr. P.C. Somani, CFO, and Mr. R.J. Saboo, VP Corporate Affairs and Company Secretary. We'll give the call now to Mr. Taparia for his opening comments. Thank you very much, Mr. Bharde. 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 unaudited stand-alone and consolidated financial results for the quarter ended 30th June 2023. The stand-alone results and the consolidated results are already with you. I'll briefly give you company product operating performance and the highlights. The company sold 148,544 tons of plastic goods and achieved net product turnover of INR 2,340 crore during the first quarter of the current year, against sale of 108,922 tons and net product turnover of INR 2,169 crore in the corresponding quarter of previous year, achieving volume and product value growth of about 36% and 8% respectively. Total consolidated income and operating profit for the first quarter of the current year amounted to INR 2,383 crore and INR 343 crore, as compared to INR 2,211 crore and INR 327 crore for the corresponding quarter the previous year, recording increase of 8% and 5%, respectively. The consolidated profit before tax and profit after tax for the first quarter of the current year amounted to INR 283 crore and INR 216 crore, as compared to INR 268 crore and INR 214 crore for the corresponding quarter of the previous year, recording increase of 6% and 1%, respectively. The business scenario of all the product segment of the company for the quarter ended 30th June 2023, as compared to the corresponding quarter of previous year is as under: Plastic piping system business grew 48% by volume and 11% in value term. Packaging product segment business grew by 5% in volume and decreased by 1% in value term. Industrial product segment business grew by 5% in volume and decreased by 1% in value term. Consumer product segment business grew 15% by volume and 10% in value term. The overall turnover of value-added product remains at INR 756 crore during the current quarter, as compared to INR 761 crore in the corresponding period of previous year. The company has total cash surplus of INR 961 crore as on June 30, 2023, as against cash surplus of INR 738 crore as on 31st March 2023. Business outlook. Polymer prices witnessed a downward bias and continued to fall, albeit in a range-bound manner. During the quarter, prices of various polymer fell between INR 5-INR 8 per kilo, except for polypropylene, which fell down by INR 13 per kilo, causing moderate inventory losses across the product segment of the company. The company has taken in hand a project to make PVC window, window profile and doors at its newly acquired 32 acre site at 15 km away from Kanpur. The initial capacity planned will be 10,000 tons per annum. The company intend to sell window profile and complete windows from this site. Later on, company will put up window making facility at several of its manufacturing sites. The initial investment in this project will be around INR 160 crore, and after achieving full capacity, the company made additional turnover of about INR 350 crore annually in this segment. The company is ready to seize the business opportunity and continue to commit required investment. During the year, company had planned to add four additional system, that is, PP Silent Pipe System, gas piping system, PE-AL-PE piping system, and PPR piping system for industrial application, along with its existing 36 system and its flexible Plastic Piping business. Project execution has commenced for setting up a dedicated greenfield unit in Malanpur near MP, to near Gwalior, to manufacture varieties of industrial and ball valve. The company continued to commit new investment to increase range of value-added products in its piping business. Expansion of capacities and enlarging the product basket is underway, which will increase installed capacity of this division to 760,000 tons per annum by end of fiscal year 2024, against present capacity of 600,000 tons per annum. The company continued to focus more on major product sales from co-extruded film, which would help in better realization and improved profitability. Company plan to introduce newly developed co-extruded plastic film is progressing well, and plant with a capacity of 2,500 tons per annum should be in operation by end of fiscal year 2024. The company's furniture business is expected to grow well during the year, backed by softening of polypropylene prices and introduction of several premium product in the range. The company has 244 numbers of showroom as on June 30, 2023, and are being added regularly, where quality furniture produced by the company is available. In Industrial Component Division, patiently vital segment in auto sector is continuing its bullish trend and expected to remain positive during the year. Impending festival season and overall positivity in the economy should help the planned segment of the division get a stream going forward, which will improve the business of Industrial Component Division. The Material Handling Division product portfolio is doing reasonably well, keeping in pace with the major drivers of material handling product like automobile, FMCG, white goods, and retail. To meet the diverse needs of the customer, newer products are being introduced. Supplies of tailor-made solution with customized crates are growing, and most models of garbage bin range, which we started recently, have been selling quite well. Composite LPG Cylinder Division continue supply new-age composite LPG cylinder to Indian Oil Corporation against its LOI, as per schedule issued from them. It is also pursuing with other oil marketing companies for promoting composite cylinder in domestic market, showcasing the safety to human life what the cylinder provides. Efforts continue to expand geographical reach and add new customer, which is a long draft process due to nature of the product. In Packaging Division, it is ready to drive growth both in volume and value, with enhanced profitability across product line, is yielding positive result. Division continue to focus on development of new application, value engineering, to provide best product with customized solution, and increase its export business by strengthening distribution leads in newer markets. The Performance Packaging Division of the company is functioning optimally with its existing capacity. The division serves different market segments in food and various non-food industry, and working toward post-extruded value-added product for better margin. The division is focused to boost the sale of exported products to the worldwide market. The company has a CapEx plan in excess of INR 7.60 crore for the current year, including carry forward commitment of previous year. Entire CapEx shall be funded from internal accrual. This is a brief and overall summary for the quarter and year ended under reference. Thank you for your presence. Now, I and my colleagues, Sri P.C. Somani and Sri R.J. Saboo, are available to reply to various queries raised by all of you. Thank you very much. Thank you very much, Sir. 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 use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles....The first question is from the line of Venkatesh Balasubramaniam from Axis Capital. Please go ahead. Thanks a lot for the opportunity. My first question is, is it possible to quantify what was the inventory loss which was there in the current quarter? Around INR 40 crore. Hello? Around INR 40 crore. INR 40 crore, okay, okay. The other thing is, this quarter, your volume growth was very strong. It was almost like, what? 36%, and out of that, there was like a 48% growth on the pipe side. Was this something you expected, or if it was ahead of expectation, what exactly is driving this growth? We expected that's why the volume was available in the company, and without, the volume must be available also in the company. You see, dear friend, this week on the best, last year, first quarter was very weak, if you recall. Okay. Yes, yes. Last quarter being very weak, we were expecting good growth to come in for agriculture market. Infrastructure, we were preparing ourselves that there is going to be a good growth demand, the way government is giving push to Infrastructure. We are glad to see that government is taking many initiatives to boost the Infrastructure. Our big growth in the piping division came from Agriculture and Infrastructure in the first quarter. Okay. Both were expected, so we were prepared with raw material and with the capacity. Okay, okay. Now, my last question is: what is your guidance for volume growth, revenues, and EBITDA margin for the current year post the first quarter? Overall company or what? Overall company, overall company. Overall company, we anticipate volume growth of 20%+. Okay. The operating profit margin, 14%+. Okay. What about revenues? Do you have a revenue number in mind? Around INR 11,000 crore. Around INR 11,000 crore. Okay, okay. Okay, sir, if you actually extrapolate this 20% kind of growth, if you take 20% growth on last year and you take the first quarter realization, you don't get to INR 11,000 crore. You get to a much lower number. Are you expecting, does this also factor in the fact that over the next nine months, PVC prices and plastic prices overall will go up? Is that something which you have factored into your numbers? Now, price has started firming up already. Okay. There is an element of higher prices in the next nine months, which has been factored in. See, The increase in value-added product business also. Okay, okay. Now, the reason given is- There are so many factors ahead, dear friend, please. Okay, okay. Thank you very much, sir. All the very best. Thank you. We'll take the next question from the line of Rahul Agarwal from InCred Capital. Please go ahead. Hi, sir, good evening. Thank you for the opportunity. Three questions: firstly, on margins, pipes and industrial segment, I think the margins reported are lower, YoY. Could you elaborate, please, what is the reason and what is the outlook on the same, please? In piping system, the first quarter, we earned 14.27%. It's much better than last year, first quarter. He is talking YoY. Eh? You are comparing with the previous quarter. No, I am comparing EBIT, EBIT per ton for plastic pipes. This quarter is about INR 16.6 a kg. Last year, same quarter, it was about INR 19 a kg. Why, why is the decline, please? Yeah. The principal two reasons. One is- Agri volume. Infrastructure. Agri and Infra, because the volume growth which has come in this quarter is because of Agri volume and the infra volume, which are low value-added product from that perspective. Since the last year, the volume was less of those product, so overall margin per kg, what you are looking is, was better. Secondly, in this first quarter, as mentioned, about INR 40 crore of inventory loss has come, which also work, in instance, comes to our INR 3 a kg in overall volume of packaging. Which was in piping also and other segment also. It was across the board, all the polymer prices fallen. Sir, my understanding was even last year, same quarter, you would have had a very large inventory loss, right? Last year was very poor. Last year was, margin was 12.55%. EBITDA margin. EBITDA margin. Right. If I account for inventory loss even last year, then why should the EBIT fall so much? That's purely because of the mix. Because we sold more Agri pipe and more Infrastructure pipe in the first quarter this year. Got it, sir. Just to understand this more better, like, what do we do in Infrastructure pipes? Could you elaborate, like, what products and what I'm talking about? Pipe, they are from Nal Se Jal. What is the, what is the volume contribution for Nal Se Jal? 7,000 ton extra we sold last, this year, quarter. first quarter of this year, we have sold 7,000 tons into Nal Se Jal. INR 10,000 extra compared to the first quarter last year. Extra. What is the absolute amount, sir, for the quarter? Actual quarter maybe 12,000 tons. 12,000 tons. Okay, got it, sir. Moving forward, what is the volume growth expected for industrial and packaging segments for fiscal 2024? ... industrial package segments is about 10-12%. Sir, I'm just trying to verify, I mean, on the TV interview, the overall company volume growth is guided towards 20% plus. Piping is about 23%-24% plus for FY24. If industrial packaging is at 10%-12%, how do we get to that 20%? Volume, we anticipate a growth of, of 34,000 tons. Packaging all together is expected to be 65,000, 64,000 tons. Okay, this is the total volume for the year, is it? Total volume for the whole year. INR 34,000 and INR 64,000, respectively. 64,000 packaging filler and industrial component, 34,000. Okay, got it, sir. Last question- Industrial, we count material handling also, and also composite. If I combine all together, it will be 67,000. Okay, got it, sir. Got it. Last question, sir, from my side. Industrial, which comprise Industrial, Material Handling, and Composite, all three together. Understood, sir. Understood. Lastly, for the PVC Windows Doors, the CapEx you said is INR 160 crore. Is that included in INR 750 crore? Yes, it is included. Okay. This will be part of Industrial segment or Furniture segment? Part of Plastic Piping System, which we may change the nomenclature to Building Solution in, when we start the production. Okay. We will decide in time whether we want to give a separate segment or we keep it as a part of Building Solution. Okay, got it, sir. I'll come back in with you. Thank you so much for answering. All the best. Thank you. The next question is from the line of Ritesh Shah from Investec. Please go ahead. Hi, sir. Thanks for the opportunity. Sir, I'll just carry forward on the prior question. Sir, you indicated Nal Se Jal volumes. Sir, how much is the revenue contribution over here? How should one understand the corresponding working capital and margins? Which, I don't, which one? Nal Se Jal revenue contribution. Which one? Nal Se Jal. This polyethylene pipe what you're supplying. I don't get number. Industry, per share value? Yeah, revenue contribution. Revenue number, it include trade market also, no? Yeah, it is. There are many products also. It is not possible immediately to give you, because it is all, not only pipe, we are selling also electrofusion fittings and compression molded fittings. Immediately, it is not available. Okay. sir, if I ask you the question the other way around, we had this Maharashtra government order of around, I think, INR 800 crore. Would we have supplied something like, INR 200-250 crore in this quarter? If I take INR 150 per kg, it will come to around- INR 40 crore to supply in 30-month period. 30-month period, INR 480 crore, not INR 800 crore. 40-month period, INR 480 crores. Okay. Sir, how different will the- Maybe, maybe by now we might have supplied INR 100 crore. Okay, sure. sir, how different will be the credit days and margins for this particular order? Is it at, at par with the company level, or is it a tad lower? 30 days, that is the only place where we give credit. Other contractors, we buy, sell them either advance payment or they get LC. We don't give them clean credit. Maharashtra government only, we agreed to give them clean credit. Okay. Sir, margins? Margins are nominal margin. In this business, the margin are low. Okay. Okay, okay. Sir, one broader question: Are we looking at any professional appointments at the CEO, CXO level, at the, at the company level? I am professional, nah. Sir, you are there, absolutely. So what? I am professional. Okay. Okay. Done, sir. Thank you so much. Thank you. Thank you. The next question is from the line of Sneha Talreja from Nuvama. Mm-hmm. Good evening, sir, and congratulations on greater the volumes. Just a couple of questions from my end. You are the first person to congratulate. Thank you very much. Tell us, please. Please, just wanted to understand, you have this time spoken about PVC Windows and Door segments in your press release. Just wanted to understand how big is the opportunity, and how are you looking at things here? Just something on this particular segment. It's a very big opportunity. In China, the market for plastic window and door is 4.5 million tons. India is around 100,000 tons. Population, India, China, more or less same. The percentage you can calculate. Right. Are there existing players in this particular market, or currently Indian market is being, you know, import driven? Several players. Several players, several fabricators. There are so many foreign companies are also playing. They are principally importing profiles from their respective countries and offering customized window. We had we made a plan to make the window profile and to make window, and we will be appointing fabricator also, who will give customized window. It's a long-term game, and we are going to stay in a long-term basis. We consider business with great potential for which company people have to work very hard for several years. Understood, sir. Understood. Sir, secondly, you also mentioned on the PVC prices front that you see, you know, upward, you know, from now on, you know, prices firming up, and this particular quarter, you've seen a INR 40 crore kind of an inventory loss. Are you building in this inventory loss, maybe, you know, going ahead, this will get offset by some amount of gains, or you see not that amount of PVC price increase? Some thoughts on PVC prices, sir. Some gain may come, may come. May May come. As of today, we do not see any more inventory loss. Understood, sir. That's it from my end, and thanks a lot, and all the very best. Thank you. We'll take the next question from the line of Abhishek from DSP. Please go ahead. Yeah, hi, sir. Thank you so much for the opportunity. Just couple of questions. In the Industrial Division also, there is margin weakness, on a sequential basis. Is it due to inventory or is there any other factor? Industrial Division, the margin is better compared to last year's same quarter. Correct. We have seen that industrial component, we earn more money than last year, percentage-wise. Every component in general, we earn every, every segment of industry component better margin than last year. Sir, I was more referring to on a sequential basis, but I can take that offline otherwise. Okay, sequential basis. Okay. basis. Okay. Sequential basis, okay. Are you doing the full year? Okay. Sequential basis component, last year, first quarter, we earned 10.08%. This year, first quarter, we earned 10.14%. In material handling, last year, first quarter, we earned 10.3%. This year earned 10.79%. Essentially, you are asking fourth quarter versus first quarter, is that it? First quarter, first quarter. Fourth quarter versus first quarter. Fourth quarter versus first quarter. First quarter, fourth quarter, there is no relevance to us. All this quarter to quarter is irrelevant. Okay. We are not in banking business or IT business. Sure, sir. Sure. Sir, Sure. Sir, the other thing is, we spoke about the- We can compare for us, for our type of business, please. Okay, fair. Sir, in terms of the PVC Windows, and you know, you also spoke about Building Solutions. Are there some other products also, which in the future you could evaluate on similar lines? There are some other products as well, which one has not tapped into. Possibly in Building Solution. As we come along, we will go and convey to you whenever we take up new product. Okay, okay. Sir, how should one look at the distribution of the same? Do you have to create a new distribution channel? How should one look at that? Yes, we'll, we'll build it, and we build it, we'll bring to notice of the our, our partners. Okay, okay. Great. Sir, just one last question. In terms of the channel inventory, how is it now that PVC prices have started to move up now? How is the channel position of the, as far as? Normal inventory, maybe on lower side only. On the lower side. Okay, great. Got that, sir. Maybe. Thank you so much. Wish you all the best. Okay, sir. Thank you so much, and wish you all the best. Thank you, sir. Thank you. The next question is from the line of Achal Lohani from JM Financial. Please go ahead. Good evening, sir. Thank you for the opportunity. If you could help us understand in terms of the CPVC growth, how has been the for the quarter, and also the Plumbing segment for PVC, if the growth was in the similar fashion? CPVC, our company has a 12% degrowth in first quarter. Plumbing segment overall was a good growth. CPVC we had a degrowth, and mostly in the north and eastern market, because there were so many counterfeit producers cropped in. We filed legal cases against many of them. We succeeded, but during the period of success, we lost some business in the first quarter in north and east. The action has been adequately taken, and we have made our legal department more strong, but there are so many counterfeit producer come up in Eastern India and Northern India. It's very particular to, our company, or it's across the brands you have noticed? I think particular, it, it is applicable to Ashirvad also, as per our knowledge, and to Astral also, to our knowledge. Interesting. You said, PVC, side, the plumbing has seen a good growth. The other side is no issue. Okay. CPVC because of expensive, so there were so many people attracted to make counterfeit. Right. Fortunately, the legal department, the law and the court gave full support, and we could take action against them. In the process, the business had got some loss in volume. We are confident we will recover. Understood. Sir, given the correction in the PVC price on a year-on-year basis, if I see over last 12 months, could there be a case of reduction in the CPVC prices? Have, have you seen your purchase price for CPVC already coming down? Prices are already starting going down. Can you quantify how much has it already come down, sir? There are now so many suppliers. Each supplier has got different pricing. Okay. I can only say the price is starting going down. Every supplier has dropped their price. Supply, supply depends. Has that been also passed on to the channels, sir? Is there a price reduction for CPVC? Yes, when the price drop, we will pass it on, yeah. Okay. It's a similar fashion like a PVC in, in that sense? It may not be same fashion. Understood. Sir, one more question, if I may, with respect to the storage tanks, can you elaborate a fair bit now as to what revenue size have we achieved, and how do you see over the next three to five years? Very strong. Any, any number you can, you could put across, like? Number is classified. Got it. Understood. Thank you so much. Thank you. The next question is from the line of Deepak Jangid from Purnartha Investment Advisors Private Limited. Please go ahead. Yeah. Hello, sir. Thank you for the opportunity. My question is, that you have mentioned, that the, with the additional capacity of PVC Windows and Doors, the additional turnover we are expecting is INR 350 crore. When do you foresee this INR 350 crore to come into our books? Too early to reply. Too early, dear friend. Too early to reply. Let the production start first. Okay, okay. What EBITDA we can expect from this additional capacity? We will inform at the right time. Okay. Okay. Okay, we have shown this is the intention of the company, company taken action. We have purchased 32 acre land, and we have hired people to put the plant in operation as quickly as possible. Okay, okay. Yeah. Thank you. This is from my side. Thank you. Thank you. The next question is from the line of Bhargav Buddhadev from Kotak Mutual Fund. Please go ahead. Good evening, team, and congratulations for a strong volume growth in the pipe business. Sir, my first question is, we've reported almost a 47% of YoY volume growth in pipes. Is it fair to say that we've taken a decent amount of market share, given that our newer locations have also started contributing? Market share, we hope the market share is growing. Our market share is increasing. Sir, would you have a sense of what has been the industry volume growth in this quarter in pipes? Quarter, we don't see much growth, volume, much, much growth. Compared to first quarter last year, the numbers are doubled up. Overall, the industry is 6.7 million tons last year of PVC, out of which 70% is plastic piping only. This is the growth is reasonably okay in segment. Okay. We believe that our company with, many location now in operation. Mm-hmm. We will be taking some share from other people also. Okay. Would it be fair to say that we would have, taken, large amount of market share in East India now that our factories are commissioned, so incremental growth is coming in from that geography? Right. Eastern India has got now three plants. Right. Bhubaneswar, Cuttack and Rayagada. Okay. We are quite happy with our growth in those markets. What would be an approximate market sizing in that side of the geography, sir, overall market sizing? Any sense? Overall market size in the country last year was 4.2 million tons. Okay, okay. I understand. All type of plastic pipe going in piping. Out of 4.2 million ton, we count as 65% in the Vinyl sector. No, no, sir, I was referring more to eastern part of the country, East India. We don't have correct number with you. Okay. We are the very dominant player in East India. That is for sure. Okay. Okay. Secondly, sir, you mentioned tanks business has been doing well. Is it fair to say that it is a value-added product for us? Very value-added product. Because of late, competition has been rising, and there has been some pressure on profitability. Just wanted to check, sir. Our, our quality extremely good. Okay, okay. Lastly, sir, the, on the Silpaulin side, when do we expect this segment to again start getting into the value-added category? It is partly of the division. This year only it will start going to value-added. The two this made up item will all go to value-added category. Okay. Another segment of application will also go to value-added category. Okay, okay. Okay, sir, thank you for your responses, and all the very best. Thank you. The next question is from the line of Vipul Kumar Shah from Sumangal Investments. Please go ahead. Hi, sir. Thanks for the opportunity. My question is regarding margin in the Plastic Piping products. If I see if I compare with the fourth quarter of last year, margins have come down have come off very sharply, even after adjusting for INR 40 crore inventory loss. What are the main reasons for such a big loss in margin? You see, apart from inventory loss, the product mix is in the first question also we answered, a large volume of Agri and Infra, which is a lower margin business, has been done well in this quarter. That's how so much volume growth of 48% quarter-on-quarter. Those volumes come with lower margin, which affects overall packing business margin per se. In the fourth quarter of last year, you see some quantity, some benefits of the annual incentive where you achieve some incentive schemes meeting the parameters. Those incentives comes only in the last quarter, once you have calculated your, met the quantity criteria of the incentive scheme given by the raw material supplier. Can you quantify the incentives, sir, if it is possible? About INR 0.50 kg on the total quantity of PVC what you will obtain from the suppliers. Sorry, I didn't get it, sir. On total quantity of take, you get annual incentive about INR 0.50 a kg. Okay, INR 0.50 per kg. Okay. Okay, sir. Thank you. Lastly, sir, regarding composite cylinders, so are we, at a 100% utilization, and are we, going to expand any capacity there? No, no, already we have expanded the capacity last year in February. Presently, the delivery schedules from Indian Oil Corporation are somewhat slower. There is no reason to expand further. Okay. 50%, 70% capacity utilization this year after the increase in capacity. 70% capacity utilization, right? Yeah. Okay, sir. Thank you. Thank you. The next question is from the line of Sonali Salgaonkar from Jefferies. Please go ahead. Thank you for the opportunity, and again, congratulations on a great set of volume numbers. My first question is regarding Supreme Petrochem. While you have delivered a very healthy operational performance, we can see that the contribution from your associate has gone down drastically. From here on, how should we look at the contribution from Supreme Petrochem over the coming quarters? Do we see revival in that? They had an inventory loss in the first quarter. Now, that is all gone. Now, the demand looking quite good for them for the remaining nine months. I think Mr. Nair will be interacting with the investor on Monday, so he will be able to give you all the questions answered properly. Sure. We should expect some amount of normalization coming back in the coming quarters, right? Yeah, we are quite optimistic. The company is doing quite well on the investment plan also. The company put a very well issue. We are very happy with the performance of the company. Got it, sir. My second question, and pardon me if I'm being repetitive, because we got out of the call for a certain time. Your guidance for volumes and margins, is that correct, that 20%+ volume growth in FY24 and margins at 14% +? Yes. Yes, we anticipate our volume growth will be 20% +, and our operating margin will be 14% +. Got it, sir. Thirdly, about the demand. You mentioned that Infra and Agri were the drivers this quarter. Going forward, are you seeing revival in real estate construction? If so, from where, either rural or urban? The, the, the housing demand is going quite strong. When we count first quarter, this was additional demand came from Agriculture Infrastructure. Housing demand has never weakened. It remains strong and expected to remain strong for the remaining eight months of the year. Got it, sir. We have good growth, demand growth coming from Infrastructure also, which may continue for the remaining part of the year. Got it, sir. Sir, lastly, on the PVC trend, you mentioned that you have seen stability in the prices in July. Should we, I mean, inherently assume flattish prices over the coming quarters, or do you think there could be a renewed volatility into that? That's all from my side. Volatility will remain always in the polymer, but not volatile like 2021. Always $50 ± continues, but presently the trend is little bit bullish. Got it. Sorry- The prices of PVC internationally has gone up between $50-$80 per ton in last four weeks. Got it. Sir, just one last question. We missed the numbers of Nal Se Jal volumes that you gave in. Could you please repeat that for us? Thank you. Nal Se Jal volume, no, we could not, we did not give exactly because there are so many products being supplied. All right. Sir, are you seeing renewed traction on the ground for this? Yes, yes. Yes, that's why the infrastructure, when we're talking infrastructure is a part of Nal Se Jal only. Most of the infrastructure for, for providing the drinking water from reservoir to the village. Lot of polyethylene pipes are being supplied for that only. Got it, sir. That's helpful. Thank you, and all the best. Thank you. The next question is from the line of Rahul Agarwal from InCred Capital. Please go ahead. Sir, thank you so much for the follow-up. Sir, as far as the government business is concerned, we are doing Nal Se Jal, which is largely infrastructure pipe supplies, and we are doing the IOC order under the, you know, composite cylinder. Anything else do we do for the Indian government direct billing? ... Indian government business, we are doing only with Maharashtra. Otherwise, all business are done through contractors. We don't do directly. Okay, even the composite cylinder thing is direct through, with through contractor? Indian Oil Corporation Limited, we can't count. Yes, it's a government company, but it's a public limited company now. Yes, sir. Yes, sir. I'm including PSUs also. Anything else we do apart from Nal Se Jal and cylinders with Indian government or public sector company? No, no, no other business. Okay, got it, sir. Sir, secondly, on the composite cylinder, what is the pending order book now? Order book is reasonably okay. As Mr. Somani informed you, that we anticipate that we'll be able to sell 70% of our capacity. Which basically means that we'll sell about 700,000 cylinders this year, right? It will be 900,000 pieces, so pieces it may be 60 or 30,000. I thought the capacity was about, 1 million units, right? Yeah, yeah, 1 million, but when orders come, we will try to make more, more. No, no issue. Depending on the size of the cylinder. Okay. Okay, Okay, okay. Different sizes, that's why you can sell about 900,000 pieces, is it? Yeah, pretty much. Okay, got it, sir. Lastly, PVC Windows and Door, that is also a value-added product? It should be value-added. Okay. That definition of 17% margin remains, right? Is there any change to that? We, we maintain 17%. Okay, sir. Thank you so much. All the best, sir. Thank you. We'll take the next question from the line of Praveen Sahay from Prabhudas Lilladher. Please go ahead. Yeah, thank you for taking my question. The first question related to the capacity increase in the Piping segment, that is, you had mentioned to reach from 6 lakhs to 7.5 lakhs. Should I consider the four of the new initiative or the systems you are adding in the piping system, that is also included in the capacity expansion in that? That's, gas piping system and the silent piping. The production will be fully available next year only. They are putting the investment. Some investment may not fructify also this year, like Polypropylene Silent Pipe System. The advantage of that system may be available only next year. Right. Industrial piping also may be available next year. The policy on gas piping also, we need to go through the approval process. That also, benefit may come next year. Only PE-AL-PE pipe, we have already put in the market and that is already being sold by the company. Out of the four new system, the benefit will start accruing to the company from next year. Money will be invested this year. Okay. Can you more elaborate on the gas piping system uses, where it is used? The polyethylene pipes supplied to the biggest gas company like Mahanagar Gas Limited, who are supplying poly gas to the house, houses. Like water to houses, gas is also being supplied to houses by piping system. Now government is putting more trust to supply gas to houses instead of the. Allow supplementing the LPG cylinder. Mm-hmm. Okay, got it, sir. These companies are operating already in India, and those gas companies require pipe for carrying the gas to the house. Right, sir. Sir, can you give the, for this quarter, the volume contribution number for the three segments like Plumbing, Agri, Infra, and the piping? How much is that contributed? We don't, we don't do a separate number because the pipes are used. The pipe which we sold, the Agri pipe, are used for housing also. Okay. Appropriate differentiate, please. Thank you, sir. Thank you for taking my question. All the best. Thank you. We'll take the next question from the line of Kamal from CLSA. Please go ahead. Hello. Thank you for the opportunity. I just want to ask that, if I was looking at the realizations for kg for the packaging products, which has fallen by 6%. However, I can see an EBIT per kg increased by 6% YoY. Can you please elaborate, like, where we have performed better in this? Again, can you repeat your question? I was saying, if you look at the realizations for kg for the packaging products, it has fallen by 6% YoY. Packaging, you see, they have three segments, and the protective packaging, tough weight packaging, and the performance packaging. Protective packaging, which was languishing till previous years, they started doing well. They are developing various new and customized solutions for their customers. Definitely, their realization packaging has improved, and so the margins also. Okay. Got it. Can you please let us know, like, what was the overall capacity utilization for this quarter? For this quarter, as a company, we have produced about 150,000 in terms of products. You are talking about the company as a whole, no? Yes. Yeah. against the capacity of 8 lakh metric ton, it's showing quarterly capacity of 200,000 metric ton, and we have produced 150,000. 75%. 75%. Okay. Got it. Thank you so much, sir. Thank you. We'll take the next question from the line of Srinath from Bellwether Capital. Please go ahead. Hi, sir. The CPVC growth for the entire industry was negative last quarter, sir, or, did we face a unique issue because of our East? We were negative. Sir? For the country, for the quarter, I don't have the numbers. Okay, okay. This is, only impacting CPVC, or you are seeing spurious products and PVC also in the Northeast market, sir? You could not have growth of 48%. Got it, got it. 48% by volume in the first quarter in piping. Got it. The issue is only in CPVC. Only in CPVC, which was also due to counterfeit pipe being supplied in Northern Eastern Indian market. Got it. Got it. So if the, if our, total volume- Our mind. Please go ahead, sir. Hello? Yeah, please. Yeah. Sir, if, if our, total degrowth was 10, - 10% on Northeast, degrowth would have been significantly higher than that, sir. Is that fair to assume that? No, we told you we had a degrowth of 12%, and the degrowth in North and East was more than 12%. Perfect, perfect. Last one, sir, I missed the first 15 minutes of the call. The Har Ghar Jal, kind of, any qualitative comments on what would the contribution be, at least to the value top line? Because in volume terms, of course, you know, there are different pieces and it becomes a little complicated. Would it, would it be fair understanding that maybe about INR 300-400 crore of revenue largely came out of that program, sir? It's very difficult to quantify. Which I. Revenue from Nal Se Jal supplies. Har Ghar Jal supplies, we started only properly from this year only now. Yeah. In the INR 1,600 crore, sir, would it, you know? Nearly 7,000 ton extra material, and we get around maybe INR 150, INR 140 a kilo. Maybe on 7,000 ton, maybe INR 100 crore. Okay, perfect, sir. About INR 100 crore would be the likely, likely, revenue that we would accrue from Har Ghar Jal. Perfect, sir. Thanks, thanks a lot. I'll get back into the question. Thank you. The next question is from the line of Ritesh Shah from Investec. Please go ahead. Sir, I just wanted a question. You have indicated around 15% volume growth guidance for the full year. If we take this Nal Se Jal Maharashtra government order out, how should we look at it? Will the number come down to around 12%? I'm taking into account INR 140 per kg, what you just indicated in the prior question. I don't follow. Sir, our. 50% volume growth has been now enhanced to 20% plus volume growth in today's call for the company in a year, for the year. For this year, we told earlier 15% CAGR basis for that three, four year. For this year, we are saying that our growth overall will be 20%, and in Piping segment, we may grow between 23%-25%. Sure, sir. Then it helps. The implied number goes to around 17% ex Nal Se Jal. That's, that's helpful, sir. Sir, revenue guidance, does it remain the same or does, does that also change? Revenue guidance from INR 11,500 crore we told. Up to now, we are talking INR 11,000 crore around. INR 11,000 crore. The price will come down. Correct. Sir, if I, if I look at INR 11,500 crore of top line and the stated EBITDA margin guidance, is it still 13.5%-14%, or have we changed that, sir? We talked today INR 11,000 crore and operating profit margin guidance 14%, which make INR 1,540 crore. Correct. Sure, sir. It would imply EBITDA per kg for the balance three quarters that nearly INR 26-27 versus what we reported in this quarter was INR 21. Are we comfortable on incremental guidance on per kg basis as well, given you already qualified the margin as well as the top line, sir? Overall, we are comfortable. You see, this quarter there was about inventory losses, which about INR 3 a kg. INR 21 becomes INR 24 in your balance, if you normalize conditions. With a more volume of Agri and Infra, the relation per kg was lower in the first quarter, which is definitely going to increase as we move ahead. Sure. This is very helpful. Thank you so much. Really appreciate it. Thank you. Thank you. A reminder to all the participants, anyone who wishes to ask a question may press star and one now. We have. We have the next question from the line of Vipul Kumar Shah from Sumangal Investments. Please go ahead. Sir, the guidance which you just spoke about, is it at EBIT level or is it at EBITDA level? EBITDA level. EBITDA level. Thank you, sir. Thank you. You may press star and one to ask a question. We have the next question from the line of Sneha Talreja from Nuvama. Please go ahead. Sir, thanks a lot for the follow-up opportunity. You also mentioned volumes for Industrial and Packaging division. I think I missed that. Some 64,000 and one more number. If at all you could repeat that? For the year. For the year, no? Yeah. For both these segments, Industrial Products segment, about 64,000 total number for the volume for the current year. For Packaging also, about 64,000 metric ton for the year. Okay, both 64,000 metric tons for the year. To precise, maybe 60,000, 65,000, 67,000 on composite cylinder. 67,000 industrial and 64,000 packaging. 64,000 is for packaging. Understood, sir. Thanks, thanks a lot, sir. Very helpful. Thank you. Ladies and gentlemen, as that was the last question for today, I would now like to hand the conference over to the management for closing comments. Over to you. Thank you very much. Thank, we thank all the participants who raised very analytical and assistive question. We thank all of them for their time and analyzing our working and guiding us. Thank you all, please. Thank you. On behalf of Mr. Somani and Mr. Saboo, I, we thank all of them. Thank you, members of the management. Ladies and gentlemen, on behalf of DAM Capital Advisors Limited, that concludes this conference. We thank you for joining us, and you may now disconnect your lines. Thank you.