Ladies and gentlemen, good day and welcome to the Supreme Industries Q4 FY 2024 earnings conference call 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 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, sir. Thank you, Rio, and thank you everyone who are dialing in to Supreme Industries Q4 and FY 2024 results call. Representing the management, we have Mr. M.P. Taparia, Managing Director, Mr. P.C. Somani, Chief Financial Officer, and Mr. R.J. Saboo, Company Secretary. I hand it over to the team for the initial comments on the results. Thank you. Thank you very much. I am M.P. Taparia, Managing Director of Supreme Industries Limited. I, along with my colleagues, Mr. P.C. Somani, Chief Financial Officer, and Mr. R.J. Saboo, Vice President, Corporate Affairs and Company Secretary, welcome all the participants who are participating in the discussion of the audited standalone and consolidated financial results for the quarter and year ended 31st March 2024. The standalone results and the consolidated results are already with you. I will give a brief on the company's product operating performance and other highlights. The company sold 195,369 tons of plastic goods and achieved net product turnover of INR 2,979 crore during the fourth quarter of the current year, against sales of 147,414 tons of plastic goods and achieved net product turnover of INR 2,566 crore in the corresponding quarter of the previous year, achieving volume and product value growth of about 16% and 37% respectively. The company sold 639,701 tons of plastic goods and achieved net product turnover of INR 10,022 crore during the year-end review, against sales of 506,501 tons and net product turnover of INR 9,066 crore in the previous year, achieving volume and product value growth of about 26% and 11% respectively. The consolidated operating profit and profit after tax for the fourth quarter of the current year amounted to INR 531 crore and INR 355 crore, as compared to INR 529 crore and INR 359 crore respectively for the corresponding quarter of the previous year. The consolidated operating profit and profit after tax during the year-end review amounted to INR 1,654 crore and INR 1,070 crore, as compared to INR 1,353 crore and INR 865 crore respectively for the previous year, recording an increase of 22% and 24% respectively. The business scenario of all the product segments of the company for the year-ended 31st March 2024, as compared to the previous year as mentioned above, plastic piping system business grew 34% in volume and 15% in value turn. Packaging product segment grew by 8% in volume and 7% in value turn. Industrial product segment business grew 5% by volume and decreased by 33% in value turn. Consumer product segment business remains flat in volume and decreased by 1% in value turn. The overall turnover of value-added product increased to INR 3,737 crore, as compared to INR 3,329 crore in the previous year, achieving a growth of 13%. The company has a total cash of INR 1,178 crore in the books as of 31st March 2024, as against cash surplus of INR 738 crore as of 31st March 2023. The company planned CapEx of around INR 1,500 crore during the year, including carry-forward commitment of INR 496 crore at the beginning of the year. The CapEx is planned for greenfield expansion of capacities and to introduce a new range of products across all the segments. The CapEx plan also includes setting up a plant at Kanpur in Uttar Pradesh, Patna in Bihar, Vijayawada in Andhra Pradesh, and near JNPT in Maharashtra. The entire CapEx will be funded from internal accruals. Business outlook: the Indian economy has achieved the highest growth in the previous year compared to all advanced economies of the world. The monsoon for the coming year is expected to be higher than normal, which bodes well to contain the inflation. The governments are taking several initiatives to boost manufacturing. The country's GDP thus may grow higher than previous years. Central and state governments are taking several initiatives toward creating improved infrastructure to provide houses for all and supplying gas to households by piping systems, which will further boost the demand for the company's products. In India and several surrounding countries, expand plastic raw material production capacity and execution. In the forecasted slow growth of the world economy this year, combined with the increased availability of plastics, we will maintain the price level at an affordable price level. In the current year 2024-25, plastic piping system business will thus grow by 25% in volume, and overall the company expects to achieve 20% volume growth in the fiscal year 2024-25. To meet the growth in demand for piping products, the company's initiative states not only to do greenfield expansion at the existing manufacturing sites, but also initiated actions to put up new plants near Patna in Bihar and Vijayawada in Andhra Pradesh. The company currently has 36 plastic piping systems in the division and plans to add another 5 new systems, namely an acoustic polypropylene pipe system in collaboration with Poloplast GmbH of Austria, polyethylene gas piping system, PERT piping system, polyethylene single-wall corrugated pipe, and rainwater harvesting systems during the current year. Bath fittings and sanitary business has been now well established. The design center at Pune is working extensively for various new SKUs. In this division, SKUs will go up from 421 numbers as of 31st March 2024 to over 1,000 numbers by the end of the current year. The company is putting up PVC profile manufacturing units with 5,000 tons annual capacity at the newly acquired site at Kanpur, Bihar, along with window making at the same site and also at Kharagpur. The business of cross-laminated film and products had a nominal growth of 1% in volume turns during the year-end review. The below-normal and erratic rain in several parts of the country last year adversely impacted the demand for tarpaulin, resulting in degrowth in this product category. All the equipment for manufacturing cross plastics are in the final stage of installation, and the trial production is likely to commence in second quarter 2024. The company's furniture business did not show any growth in value turns and a negligible growth in volume turns in line with the trend witnessed by the overall plastic furniture industry. The company's consistent business policies, intensive marketing efforts, coupled with superior quality and premium product range, and its plans for increasing its coverage will ensure growth in the fiscal year 2024-25. The industrial component division did not grow due to steady demand from appliances and white goods sectors, where the company has significant presence. The auto sector continues to look promising. The company expects a medium and long-term scenario to remain bullish, supported by various reforms of government and upbeat in the overall economy. The material handling division grew 11% by volume and 3% in value for the year. The division expanded its range of dustbin models. Injection and auto-molded pallets are getting good growth in the business. The company, having been a trusted associate supplier to major soap and bearing companies, benefited from increased demand, and the same is likely to continue. The year-end review remains subdued for the composite cylinder division, as purchases from its major customer, Indian Oil Corporation, have not happened as projected earlier. Discussions with other oil marketing companies are also continuing, as they are exploring to introduce composite cylinders in their portfolio. The company continues to export to its valued customers and continues to explore newer export markets. The performance film division persists in efforts in new industrial food applications and helps the division in creating value-added products for its portfolio. The division received positive feedback from its key export markets. The protective packaging division has been successful by working closely with customers and users and developing new applications for varied industries, keeping their needs in mind. New product development, adopting new technologies in manufacturing, and focusing on export business is yielding positive results both in terms of growth and profitability. To meet the growth in demand for both these products, the company has initiated steps to put up a new plant near JNPT. The site near JNPT facilitates export of protective and performance packaging products at economical cost to its international customers and will cater to increased requirements in the domestic market also. This is a brief and overall summary for the quarter and year-end reference. Thank you for your patience. Now, I and my colleague, Mr. P.C. Somani and Mr. R.J. Sabu, are available to reply to various queries read by all of 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 touch-tone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking questions. Also, in order that the management is able to address questions from all participants in the conference, we request participants to please limit your questions to two per participant. Should you have a follow-up question, we request you to rejoin the queue. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Parv Jain, from Niveshaay Investment Advisory. Please go ahead. Hi, sir. Congratulations on a good set of numbers. Sir, my first question remains on the industry front. So, like we have been seeing from the past one year, the industry has been a little subdued due to overcapacity and other supply-related constraints. But, I mean, this Q4, we have really seen some good margin improvements. And going forward also, you're guiding that the demand remains resilient. So, how do we see the industry in this coming year? Are the overcapacity constraints resolved and the gross margins continuing to improve? How do we see that, sir? What? I I know for industry means what? Overcapacity for what? Sir, the plastic industry as a whole, overcapacity in terms of the number of players who have set up plastic, PVC, PET-related plants. Let's not talk about numbers of players. In the plastic industry, there are always more numbers of players. But even then, with more numbers of players, we have grown by 26% in volume overall. So, what do you have to comment? Please tell me. And we are planning 20% volume growth this year also. Right, sir. So, the volumes remain really good. But on the margins front, like we have seen for the last three quarters, the gross margins declined to some extent. But this quarter, we see the gross margins have improved. So, going forward, can we expect similar kinds of margins? Or what is your outlook on that? We are forecasting this year also 15.5%. Okay. Okay. Thank you, sir. That answers my question. Thank you. The next question is from the line of Aditi Loharuka from CD Equisearch Private Limited. Please go ahead. Good evening, sir. Sir, my question is, do you think that focusing just on the plastic piping systems business will help the company achieve greater cost optimization and higher market share? Sorry, say it again. Focusing on. Do you think that focusing just on the plastic piping systems business will help the company achieve greater cost optimization and higher market share? I believe that our market share is going up last year. Yes, sir. But the plastic piping segment has contributed around 70% of your revenue. So, how do you see that? Sir, we are investing more monies in the segment where the growth opportunities are there. In plastic piping, we feel there are immense opportunities available for the next five years plus. So, more and more investment is being made to that segment. Obviously, it will contribute in a similar way. Besides the cost optimization which you are referring to, that will continue because more and more CapEx is being planned in the plastic piping segment. The economies of scale of operations will obviously be in place because of more operations. Okay, sir. Thank you. Thank you. The next question is from Shubham Agarwal from Axis Capital. Please go ahead. Hi. Congrats for the strong set of numbers, sir. Just a few questions from my side. I just wanted to know, what's your capacity as of FY 2024 end in each of the segments, and how will it look like given the capacity expansion in FY 2025 and in FY 2026 end? That's the first question. About the installed capacities, the nameplate capacities as of 31st March 2024, all put together are 950,000 metric tons. It consists of 739,000 of plastic piping, 90,000 metric tons of industrial product, 93,000 of packaging products, and 29,000 of consumer products. The way we are planning our CapEx and the likelihood to be in place by the end of FY 2025, the capacities are likely to be in the range of 1,050,000. About 1,000,000-ton capacity will get increased with the CapEx which will come into production during the current year. The majority of the CapEx will be in plastic piping. So, we are expecting the present capacity of 740,000 of plastic piping will go up to 835,000 metric tons. Okay, sir. FY 2026 also, do you have a number, or is it yet to be planned, the CapEx for FY 2026? Yet to be planned. Yet to be planned. Yet to be planned. It's too early. Okay. And, sir, this includes the JNPT Capex that you're planning or not? Because I'm not sure if the Capex number already includes that. JNPT is for protective packaging where the volumes are not because it's a very lightweight material. So, volume comes majorly from the plastic piping. The protective packaging products do not generate the volume. Anyway, a new plant what we are going to put up in JNPT may not go in production also in this year. It requires some time now. This is the investment we're making which will be operating fully in 2025, 2026. Okay, sir. So, the CapEx that you've told, the total CapEx for FY 2025, the commitments, okay, so that doesn't include JNPT. Got it. JNPT is yet to be planned for this certification. The CapEx for JNPT, the commitment was around INR 500 crore beginning of the year. Okay. INR 500 crore is included. 500 crore was a CapEx already committed which we could not fructify in the year 2023, 2024, which we expect to fructify in the current year. Okay. Okay, sir. That answers my CapEx question. I'll just move to the second question now, which is, if you can give us a broad sense of how much the Nal Se Jal will contribute in FY 2024, are we expecting some kind of a decline in that? And secondly, I think you mentioned that you expect that deficit to be covered by plastic pipe supply to oil and gas segment. So, sir, if you can also give us a sense of how big is the oil and gas segment requirement for plastic pipes going to be, and what is it going to be used for? It's going to be used for gas distribution, is it? Gas distribution, we have to still start this year. Yeah. But going forward, yes, that is going to be a big business. Yes, it is going to be a big business. But after all, we are now getting our product qualified at Western India also. Today, we are qualified only in Western zone. So, we hope that we will start getting business now with our product qualified because supply from Gadegaon, that is in Western zone. Because in Western zone, the freight becomes too high. So, for that, we are putting our capacity at Eastern zone also at Kharagpur. It will be operational by November, October this year. That is a business plan. We are announcing a business plan and investment what we are planning to make. Right, sir. I just wanted to understand how big is this opportunity, the oil and gas segment opportunity? Yes, maybe 200,000 tons annual, overall in the country. Is there any big player already, or it's like a new segment that's emerging? There are new players. Okay, sir. Got it. Got it, sir. Got the second thing. That's the last one. Sir, plastic pipes, you're expecting a 25% volume growth in FY 2025. Can you just guide what are the broad which are the key things that are driving this strong growth in plastic pipes? By adding more systems, adding more SKUs in existing 36 systems, and putting more capacity in several locations, and expanding capacity in our existing plant. So many factories are being done. Many markets where we are not present, we are establishing new distributors then, increasing our number of retailers working with the company. All down marketing efforts made in several areas. We don't have representatives, which we are now one-on-one appointing every month. So, business is going great. For our company, business is going great. Got it, sir. Sir, just a related question that the five new plastic piping systems that you're adding right now, is it expected to increase your addressable market significantly from where you are currently? It will definitely increase the market now. When we are doing nothing in the new product we add, they will definitely add to our business significantly. How can they do it? They are coming this year only. No. Yeah. The five new. They will increase over the period. Right. So, my question was, the five new systems, are they expected to increase your addressable market significantly? Will it increase by 20% or 30%? No. Personally, I can't say. But that's why we are investing now. After all, we must get return on the investment. Okay, sir. Got it. Thank you. This was all from my side. I'll join the queue for more. Thank you. Next question is from Dharan Bagrodia from ASK Investment. Please go ahead. Hi. Hi, sir. Congratulations on the fantastic set of results again. I just wanted to ask you, for plastic pipes now, a lot of growth has been coming from Jal Jeevan Mission. Do we see what has happened in the last five years in terms of volume play out of the next five years, or are we reaching the end of this Jal Jeevan Mission program? We believe it will be over in the next two years. Okay. So then, what would be the next leg after that? Gas system. Sorry? Gas pipe. Yes, gas pipe system. Gas pipe. Okay. Gas pipes. And. Smart city system. It makes so many systems different. Okay. But would that also be showing similar volumes as what we've seen in the last five years? Okay. There may be bigger volume also. I can't say today. Okay. So, that's even a bigger opportunity, but right now, we don't know yet. Okay. There are opportunities. There are opportunities for business. Okay. Fine. Thank you, sir. Congratulations on fantastic set of numbers again. Thank you. The next question is from Venkatesh Balasubramaniam from Axis Capital. Please go ahead. Yeah. Thank you for the opportunity. Is it possible to quantify if there was any inventory loss or gain in the fourth quarter, and similarly for the full year of FY 2024? For the full year, there was a loss of around INR 50 crore. The stock which was valued as of 31st March 2023 has been valued at INR 51 crore lower on 31st March 2024. So, again, the inventory has been valued at INR 51 crore lower than what it was on 31st March 2023. Okay. Okay. Understood. Now, again, going back to this Nal Se Jal, I think someone else also asked before me, how much did Nal Se Jal contribute to your revenues in financial year 2024? Quite substantial. We had in polythene pipe business, we sold more than 50,000 tons last year, which was a 90% growth of previous year. So, around 25,000 tons extra we sold due to Nal Se Jal scheme. Okay. So, is it like almost INR 1,000 crore of revenues have come from Nal Se Jal, INR 1,000 crore-INR 1,200 crore? 55,000 cannot make INR 1,000 crores. It can make maybe INR 400 crores. How much? Can you please repeat? INR 400 crore. It can be INR 400 crore. 400. 400. Okay. Now, do you expect this to come off next year, or it can remain at similar levels for the next couple of years? Definitely, still so many shares, so many houses are still connected. Okay. Okay. Lastly, you are growing at a fantastic pace, 25%. I mean, your growth is industry-leading. I don't think anyone else is growing at your pace. What is the pace at which the industry would have grown in plastic pipes this year, and who are the companies who might be losing market share? This will grow maybe subjective. I don't know. We will definitely grow quite well. Is it from this, from what you are doing, 25? I don't think the industry is going at this kind of pace, correct? Plastic Piping System grown by how much percentage? Maybe 13%. I think this is grown by 13% by value. Industry has grown by volume around 13.79%. Okay. 13.79%. Okay. 13.79% by volume, the industry in the country has grown in plastic piping system, and our company grew by 33%. Okay. Okay. Understood. Thanks a lot. Thank you all the very best. Thank you. Next question is from Ritesh Shah from Investec. Please go ahead. Hi, sir. Thanks for the opportunity, sir. I'll just continue on the prior question. Sir, you indicated 50,000 tons of volumes from Nal Se Jal for this year, which is roughly 10%. So, should we assume? We sold 25,000 tons last year. Last year, we sold 500,000 tons. So, it's come to 5%. It was 25,000 tons, not 50,000 tons. Overall, 5% of turnover. Last year, we sold 500,000 tons of plastic pipe system. So, 25,000 tons of the turnover is 5%. Correct. Sir, how should we look at this number for next fiscal? Will we do better than this? Do we already have an order book? Because in one of the earlier calls, you had indicated that we had an order book of INR 480 crore, which would be over the next 12 months. So, sir, just wanted an update on that number, on what that order book position we have right now, and how much visibility do we have for next year? Last question. What is your question? I'm not clear what question you are asking. I'm not clear what you want to know. Yeah. Sir, in one of the earlier calls, you had indicated that we have an INR 480 crore order book with visibility on supplying on Nal Se Jal. Se Jal scheme, the period is up to 2025. They go on placing orders based on the inquiry demand they get from the Zila Parishad. Now, whenever the demand comes, we will go and supply to them. Sir, would it be possible for you to quantify what is the current order book position? I could not comprehend, sir, what you said. Nal Se Jal scheme, there is no order pending today. Okay. And, sir, from the Eastern states? Which all the countries we are supplying different? Okay. Sir, will we have an aggregate number? Aggregate number? The orders are executed monthly. None of them are coming for the year. We're going to be getting orders monthly from the contractor, and we're going to supply monthly. We go to 8 locations, we make polythene pipe. 8 locations in the country. Sir, my second question was, can you please explain to us what the PERT piping system means? And you also indicated polyethylene gas piping system. What are the end applications? And specifically on PERT piping system, what is the market that we are looking to cater, and why are we getting into this? Thank you. PERT system is required for hot water carrying. We are supplying polypropylene system for hot water. We are supplying CPVC system for hot water. We are supplying PEX pipe system for hot water. It's a fourth system for carrying hot water, PERT. It is a new material, polyethylene at low temperature, PERT system. So, every system is going to be advantaged. Based on the recommendation of the plumbing consultant, we are able to supply any type of system required to carry hot water, completely equipped to supply. There is one system we are going to make. Secondly, we are going to make polypropylene acoustic pipe system. Presently, we are making PVC acoustic piping system where the decibel level of the water coming at four liters per second may be 22. Here, it may go down to below 15 decibel. So, it gives further it is more noise-dampening system, which is more demanded now for many villas and many high-rise buildings. So, we are coming with this system, and we are very optimistic of getting good growth in that business. And then third is polythene gas piping system. There are various systems we are launching for which we've identified markets, and we see good potential in growth in this business. As a system supply in the country, we want to offer as many systems as required by the economy. Sure, sir. Thank you so much. Very helpful. All the very best. Thank you. Next question is from Sonali Salgaonkar from Jefferies. Please go ahead. Sir, thank you for the opportunity, and congratulations on a great set of numbers. Sir, I have only one question. What is your outlook on PVC prices? I understand it's very difficult to predict, but just from your side, how do you think PVC prices will pan out in the next year? And also, is there any update on the Red Sea conflict and the higher logistical cost? So, to forecast the price for the full year, it will be difficult. As we are seeing the opening demand, the world economy is going in a slow mode. So, we do not see possibility of prices to go up. PVC is a building material, and the building industry is in downturn in China. But the big factor is the local makers have initiated with the government of India to put anti-dumping duty on PVC from certain countries. Now, there is a long-drawn process. We can't forecast when the anti-dumping duty, if any, is going to be imposed. We have no idea. If, suppose, no anti-dumping duty is imposed, then price will remain at this level. If anti-dumping duty is imposed, suppose, on the worst case, by November, December, then thereafter, prices may go up also. Sir, understand. Any updates on the disruption from the Red Sea issue? Disruption? Red Sea issue. Red Sea, no issue. No issue. No issue. Only the consignment is a 20-day letter from the USA. Otherwise, no issue. The trade might have gone up by $10, but we have not seen any increase in our acquisition cost because of that. We are not disrupted. Got it, sir. Very helpful. Thank you, and all the best. Thank you very much. Thank you. The next question is from Praveen Sahay from Prabhudas Lilladher. Please go ahead. Yeah. Hi, sir. Thank you for taking my question and many conversations on a good set of numbers. First question is related to your CapEx of INR 1,500 crore. Can you give some timeline? How much is for this FY 2025, and how much is 26 CapEx planned for? No, the whole Capex, you see, out of INR 1,500 crore, those INR 2,500 crore Capex has already been committed last year, which will get certified during the course of the current year. In the new Capex, which we will be committing this year, 60%-70% of the Capex will be certified because the brownfield expansion will not take that much time. Time takes the only phase of greenfield when we are looking for Bihar, Andhra Pradesh, or JNPT. And Kanpur. And Kanpur Dehat, where we have to build the buildings, infrastructure. So, the capex is committed, but the production will come only in the next financial year, 2025, 2026. Okay. So that's what now my question is. Actually, 60%-70% of INR 1,500 crore is committed for 2025, right, sir? Correct. Okay. Second question is, sir. Very much answer. Our installed capacities will go up by about 1 lakh tons per annum by the end of FY 2025. Right, sir. Right. Yeah. So now the next question is, sir, related to, can you give some color on the last year contribution in your piping segment from the real estate and infra and aggregate? No, we can't have any separation. How much real estate? How much infra? How much not possible to reach? Or not even with the HDPE pipe growth or contribution? No, no. Since we can't give a proper we cannot be 100% sure that this has gone into agriculture, not gone into housing. It can go in housing also. Same polythene pipe are used in borewell also. Polythene pipe are used in the field also. We cannot say correctly how much has gone into infra. We cannot say precisely. Okay. Got it, sir. Thank you. All the best. Thank you. Next question is from Manish Mahawar from Antique Stock Broking. Please go ahead. Yeah. Congratulations for a good set of numbers, sir. So only one question, sir. In terms of industry growth, you are given a piping volume grew by 13.79%. What was our market share in the FY 2024? Sorry? What would be our market share or possibly can you give a piping volume of an industry for FY 2024? 12%. 12%. Sir, what's your expectation for the next year in terms of industry growth? Our growth is 25%. Next year, industry growth, I think we have to get figures from the producer of raw material. But should be definitely 12% to our mind. Okay. 12%, and we will grow at a 25%, you said. Okay. Understood, sir. Hope 25%. Okay. Understood, sir. That's from my side. Thank you, and all the best, sir. Thank you. Next question is from Sneha Talreja from Nuvama. Please go ahead. Sir, congratulations on a great set of numbers, and congratulations on a great outlook too. Just a couple of questions from my end. What is your outlook on the OPVC segment? How much is the tonnage that we are adding there, and what kind of growth that we can see? And is this a segment only working towards the government project? Some sense here would be helpful. Hopefully, there is no capacity with us. We're only one plant. We cannot produce more than 2,500 tons in a year. No plant is going to come this year to start because the supply of the equipments are too much delayed. So market can grow based on the supply of equipments. There's one very established supplier. He's from Spain, and he has got a huge order book. So we have got nothing to say, not more capacity we can supply. We can only say we will supply 2,200 tons this year. This is the only capacity we have got today. Understood, sir. So secondly, on the exports opportunity, you mentioned that there are exports opportunities in your other division, like packaging and all. What do you have to say about exports opportunity in the plastic pipe space? Is it something that you're seeing, or is it something that could be increasing going ahead sometimes? In exports of plastic piping, we are working more intensely to work more in export market. But today, more opportunities are there in protective packaging division and performance packaging division in export because they are not much fragmentation. Plastic pipe is a very fragmentation item. In export plastic pipe, we are selling there. Understood, sir. Understood. Thanks, thank you a lot, sir, and all the very best. Thank you. Next question is from Keshav Lahoti from HDFC Securities. Please go ahead. Hello. Hi. Thank you for the opportunity. What I understand, in FY 2024, Jal Jeevan Mission contributed INR 400 crore revenue, and 25,000 was the volume. What with the similar number in FY 2023? FY 2023, it's not. I don't usually reach me. It was quite low number. I don't have numbers. I said this is an additional growth in business. There was number, but this is 25,000. We said it was additional. Okay. So 25,000 is additional sale over FY 2023. What would the total sale be? Total sale of this SDP pipe was around 45,000 tons. So we will have 25,000 tons additional. Balance, we are supplying so many other applications. We make SDP pipe for sprinkler system. We make SDP for various irrigation activity for borewell also. So our SDP pipe, and we supply double-wall corrugated polyethylene pipe also, which goes into housing. So we make varieties of SDP pipe system. Okay. So now he has a large asset. Got it. Got it. And how is the margin in this segment? Is it ideally SAPAR versus other segments? Smart margin. Very smart margin. If we get satisfaction, only if we are giving quality product to the country. Understood. Something like 5%-6% is a fair assumption? I don't say. I say. Smart margin. Okay. Got it. No issues. And on the expansion plan, as you have said, you will add almost 100,000 capacity on pipe side. So where this capacity will be added, and what would be the size of the capacity? And is it possible to give bifurcation quarter-wise? Quarter-wise, maybe we can quarter. We don't know when the machine will be received. Every quarter, we can go and tell you how much capacity we could add in every quarter. Every quarter, we tell you at the end of the quarter how much capacity we could add out to 100,000 tons. Okay. Understood. So what we can see, your fixed expense that is employee and other expenses, all have increased by more than 20% year-on-year. We can't see any operating leverage gains. So why is the reason for sharp increase? I'm sorry to interrupt, but the line for the management has dropped. Please stay connected while we reconnect the management. One moment. Thank you for patiently holding your line. The line for the management is reconnected. Over to you, sir. Okay. Yeah, available. I'll repeat my question. The question is, we can see your other expenses have increased by 31% year-on-year. Employee expenses have also increased by 24%. In spite of doing such high volume, the operating leverage gain part is missing. Why is there a sharp increase? You see, most of the expenses are given by the volume. Your employee cost, or is it labor cost, is given by volume. Your power cost is given by volume. Your freight cost is given by volume. So the fixed costs are not increasing that way. And if you look at all in overall, the other expenses, now we are looking excluding our employee cost, does not include labor charges, what we pay to the contract workers. That is forming part of the other expenses, which again is given by volume only. So when we have a 26% volume growth, so naturally, when it's annual revision in the minimum wages, and the number of manpower increases, both will get factored. Okay. Got it. One last question from my side. How has been the CPVC prices in Q4? CPVC prices? The prices are under pressure only. What would that number of correction? Yes, they are not able to drop price too much, but they maybe drop by 4, 5, 6 a kilo. But they are under pressure because there is too much capacity. CPVC market is not there much. It's all just a plumbing segment. Industry CAGR maybe around 13% on CPVC by volume. And too many players come. The capacity of CPVC is hedging. But they can't sell below their cost, so they are maybe reducing their production. But that is their problem. We have no problem getting CPVC hedging nowadays. Okay. What we have seen, CPVC prices have been declining month after month. So is it at its bottom, or do you think there is more further scope left for correction? And is it possible to quantify the? CPVC. CPVC. CPVC price. I'm not a producer of CPVC. I can't say. So I mean the CPVC pipes. CPVC pipe, we have dropped the price accordingly. Now, you can't increase the demand. It is only going into plumbing application. So we are keeping very small margin only. Material available is adequate nowadays. Okay. Understood. Got it. That's it from my side. Thank you. Thank you. Next question is from Mihir Damania from Ambit Asset Management. Please go ahead. Yeah. Hi, sir. My first question is, of the INR 1,500 crore committed Capex, how much have we allocated to the piping system? What? To piping system? What? CapEx. Out of INR 1,500 crores, minimum of INR 1,000 crores, you can say. Around INR 1,000 crore. Okay. My second question is, among your key end-user segments, basically agri, infra, and real estate, which segment do you think will grow the fastest in FY 2025? The housing will go on growing. Irrigation also may go on growing, but irrigation is a seasonal business. Infra actually depends on the state government budgets. We can't forecast for them. Got it. So you believe real estate will grow the fastest in FY 2025? doing very well. Here she's doing nicely. Okay. Thank you. Thank you. Next question is from Vipul Shah from Sumangal Investment. Please go ahead. Hi, sir. What percentage of our volume in piping segment comes from oil and gas, and where do you see it in the next 2-3 years, sir? Which sector? Oil and gas. Oil and gas. No. Gas, as I told you, it can be around 200,000 tons annually. We are still not a player. If we are now getting approval in various locations, then we can talk more intelligently. Overall market in India is 200,000 tons. And our share is? Our share is zero. Zero? Oh. So we just came in this business this year. Okay. So do we expect to? Means, do we expect to see a sizable market share gain there? I don't know the meaning of sizable, but definitely, we get market share. We supply quality product. Full system we will supply. We are not only going to supply pipe. We will supply fitting. Not only from one location. We will supply from three locations. So we'll be economical by freight element also, and we'll be offering full range. Okay, sir. Thank you. Thank you. Before we take the next question, we'd like to request participants to please limit your questions to one per participant. The next question is from Nikhil Agarwal from VT Capital. Please go ahead. Good evening, sir. Thank you for the opportunity. Sir, just wanted to know if you could quantify our regional presence in terms of the piping volumes that come in, if you could quantify the mix. Regional data we don't have here. We don't publish regional data. Regional presence in piping. Yeah. Presence throughout the country. Okay. Okay. And sir, one more question. Just wanted to understand, with more CPVC capacities coming in this year, do you expect prices to be under pressure for the remaining part of the year as well? I think they've dropped the price. I can't say about them. Whether they want to further drop, I have no idea. But the higher level the price has been dropped, we've dropped the price of the CPVC system quite substantially. Now, whether they will drop further, I can't say. They're economical. Okay. Okay. Very uneconomical people have a tendency to close the capacity. Okay. Just for clarification, your market share, you said it's 12%? Market share of CPVC last year, it was 13%. Total. We are talking of total plastic piping market. Market share you are talking about? In the piping segment, what is your market share currently? Market share of the Indian market, total market, we are close to 12%-13%. Okay. Okay. Got it, sir. Thank you so much. That's it from me. Thank you. Next question is from Utkarsh Nopany from BOB Capital Markets. Please go ahead. Yeah. So, good evening, sir. So, my question is regarding the pipe segment. So, sir, if we see our pipe plant operated at a decade-high level at 75% in FY 2024 versus we have operated at around 65%-68% over the past one decade period. And now, sir, you are guiding that we are targeting to grow our pipe volume by 25% in FY 2025, whereas our pipe capacity is only expected to grow by 13% in FY 2025. So, sir, just wanted to understand whether we are likely to face any capacity constraint to reach our targeted volume growth of 25% in FY 2025. We supply more than 100,000 tons this year. And after all, we sold this year 500,000 tons. We are doing 25%. We have 25,000. So we don't see any constraint. If we have constraint, we'll go and put in more machine now. We have so many locations now to make piping system. Okay. Okay. No problem. There is no supply constraint. No supply constraint. No raw material constraint. No power constraint. Nothing. Okay. And sir, second question is on the margin side. If I see there has been a steep increase in our pipe sales volume by 30% on a quarter-over-quarter basis, and the resin prices were also quite stable in the current March quarter versus it was quite unfavorable in previous December quarter, but then also our pipe segment margin has slightly gone down on a Q-over-Q basis. Sir, can you please explain the reason for that? In the meeting last year, compared to last year, when we invest again, it's between INR 70-80 crore each. If you compare last year, then the margin has come down. Otherwise, we're quite happy with the margin. Thank you. Before we take the next question, a reminder to participants to please limit your questions to one per participant so that the management is able to address questions from all participants in the conference. We take the next question from Aditya from Securities Investment Management. Please go ahead. Yeah. Hi, sir. Thanks for the opportunity. So, this strong volume growth which we have seen in the pipes division, so have there been any particular geographies which have outperformed or the volume growth has been dropped based across geographies? Throughout the country. We are present throughout the country. We have seen volume growth throughout the country. Okay. But are there any particular geographies which have grown faster, way faster than other geographies? For us, all the market has grown nicely. Okay, sir. So, my last question was, growth in the piping industry has been twice the rate of at what industry has grown? So have we taken any price cuts to accelerate our volumes? No. We are introducing more system, more product in the existing system. We are looking more location, more capacity. So customers are very kind on us. Thank you. Next question is from Vineet Shankar from JM Financial. Please go ahead. Hi, sir. Thank you for the opportunity. I just wanted to ask, what is the volume growth guidance for the segment excluding the pipes? Can you repeat your question, please? Yeah. Just can you give me the volume growth guidance for segment excluding pipes, plastic pipe division excluding? Excluding pipe, we want the volume growth. You see, when we are saying 20% growth for the company, it means we are talking of about 125,000 metric tons for the company as a whole. The majority is coming from piping. Other than piping, it will be a single digit, about 10% growth, you can say. Which will be the fastest growing segment? Pardon? Besides piping, which will be the fastest growing segment? No, not getting your voice. Please be near to the phone now. Yeah. One minute. Yeah. Yes, sir. So besides piping, which will be the fastest growing segment among remaining three? Sir, you see, ultimately, for NetGap, we don't expect any growth. So it's the packaging and industrial, the material handling product and the packaging product. Thank you. Next question is from Praveen Sahay from Prabhudas Lilladher. Please go ahead. Yes, sir. Just one clarification. Can you give the capacity for the consumer product segment? 29,000 metric tons. Oh. How much is the increase a way forward here? No, way forward, we are not planning any increase in capacity because we already have a sufficient capacity. We invest only in the new design of the molds, furniture molds, or the almirah molds. You do not anticipate volume growth in this business? Besides, the focus is on the furniture side. Furniture side is more on the value-added furniture. Premium products? Premium products. Okay. Just the same. Capital employed are better, actually, in furniture. Because why I had asked, you had a plan for 100,000 for entire capacity. Out of that, 86, I think, 86,000 for a pipe. Rest, also, you have. Packaging will be investing money. Performance packaging film will be investing money. Piping division will be investing money. Okay. Not in the industrial and the consumer. Okay. Thank you, sir. Thank you. Next question is from Shubham Thorat from Perpetual Capital Advisors. Please go ahead. Hi, sir. Just wanted to understand the pricing environment around our product portfolio. Raw material price, it's going to remain in the same level. There is any bound, plus $50, minus. So we'll maintain the same way price change. We do not expect any upside on the raw material price. Okay. Got it, sir. Thank you. Thank you. Next question is from Akash from UTI Mutual Fund. Please go ahead. Yeah. Hi. Am I audible? Audible. Yes. Hi, sir. Thank you for the opportunity. Sir, just wanted to ask, in packaging segment, we have seen EBIT margin improving from 7%-8% last year to 13% previous quarter and 18% this quarter. Sir, going forward, what is the sustainable level of margins that we see in packaging segment? When we make an average, we hope to improve the average margin back to 13% last year because we are improving so many product range also, and we are going more and more in export markets. Sure, sir. Sir, so if we try to quantify, would it be similar to current quarter's margin, close to 18%? I talk annual margin. Sir, annual margin would be okay. And sir, we have seen realization growth in this segment, specifically packaging segment. So you believe that the current, I mean, the current quarter's realization would continue, or we are expecting even higher realization growth? We are saying annual growth. Please stay with one sentence, what we told you. Right. Sure, sir. Thank you. At this stage, we are going into more and more export potential because our export business grows up. We are exporting some very specialized products, and we see good growth opportunities. We will go on remaining in more and more export side. That's why we are putting plant growth through the port so that we can supply to our customers economical costs. Thank you. Next question is from Venkatesh Balasubramaniam from Axis Capital. Please go ahead. Yeah. Thank you for the opportunity again. Now, during the course of the year, at different points, you have shared, for example, first quarter, you had an inventory loss of INR 40 crore. Second quarter, there was no inventory loss. Third quarter, you had a INR 15 crore inventory loss. Based on the full-year inventory loss of INR 50 crore, it looks like you had a small inventory gain in the fourth quarter. Now, based on whatever numbers you have shared, if I actually calculate the EBITDA per kg across the quarter, it looks like there is a gradual fall which is happening in the sense that FY 2023, this number was INR 27 per kg. This has gone to INR 24 or INR 25 in the first half of this year. Fourth quarter, this is at around 22.8. So it looks like there is a constant fall in the EBITDA per kg. Now, if you adjust for the inventory gains and inventory losses, now, what exactly is this? Is this a conscious strategy on your part that you're okay with a slightly less EBITDA per kg, but you want higher volume growth, and you want to gain market share? Is this a conscious choice on your part? EBITDA per kg must depend on the product which was shared in that quarter. When we share only more and more pipe only, be it PVC pipe or polythene pipe, EBITDA will come down. Overall, last year, we are happy that we earned INR 21 per kg, and INR 50 crore was the loss in inventory. So if I had no loss on inventory, I could have earned INR 22 per kg last year per ton last year, INR 52 per kg. So if you calculate, we have earned nearly INR 1,050 crore. And if I add further INR 50 crore, then it becomes INR 22 per kg. And depending on product initiative, we are not supplying only value-added item. We are supplying pipes also, so we make it usable to the customer. Pipes are low added-value business. Okay. Now, just following up on the same thing, normally, first quarter is the quarter for the agri pipes. Now, agri pipes normally make the lowest margins. But surprisingly, in the current year, your EBITDA per kg is higher in the first quarter, adjusted for the inventory loss. You made almost INR 24, whereas the fourth quarter, it is lower. And the reason we are asking you is when we are doing. What you're sharing today in April, I'm talking about the first half of. He's talking April 23. No, you're not, sir. They may be doing whatever region. Today, I can't talk about April, March, April, June, Q2, Q3. I can't talk today. What was the region? I can't talk today. Okay. Now, the reason being that when we are talking to dealers in the market, they are telling that Supreme Industries has been cutting prices and growing volumes. This is something which we are hearing. Now, any kind of light you can throw on this thing? If dealers are talking, I have no idea. We are going to plan to go on cutting prices. We want to earn money just by the investment. The investing money, it must get the return. Okay. Okay. Thank you very much. All the very best. Thanks. Thank you. Thank you very much. We'll take that as the last question. I would now like to hand the conference back to the management team for closing comments. Thank you very much. All the analyst questions, me and P.C. Somani and R.J. Sabu, we are very thankful for very interesting questions given by all our industry partners. We thank them very much. Please. Thank you. Thank you. Thank you. We close the meeting. Thank you very much. On behalf of DAM Capital Advisors Limited, that concludes the conference. Thank you for joining us, ladies and gentlemen. You may now disconnect your lines. Thank you.