Ladies and gentlemen, good day, and welcome to The Supreme Industries Q1 FY25 earnings 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 any assistance during the conference call, please signal an operator by pressing star, then zero on your touchtone telephone. Please note that this conference is being recorded. I now hand the conference over to Mr. Aasim Bharde. Thank you, and over to you, sir. Thank you. Thank you, Shubhangi, and good evening to all, and thanks for connecting for Supreme Industries Q1 2025 results call. Apologies for the delay. From the company side, we have Mr. M. P. Taparia, Managing Director, Mr. P. C. Somani, CFO, and Mr. R. J. Saboo, Company Secretary, who will take us through the Q1 performance and their comments. Thank you, and over to you, Mr. Taparia. P.C. Somani, CFO, and Shri 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 30 June 2024. The stand-alone results and the consolidated results are already with you. I will give brief on company product operating performance and other highlights. The company sold 173,875 tons of plastic goods and achieved net product turnover of INR 2,612 crore during the first quarter of the current year, against sales of 148,544 tons and net product turnover of INR 2,340 crore in the corresponding quarter of previous year, achieving volume and product value growth of about 17% and 12%, respectively. Total consolidated income and operating profit for the first quarter of the current year amounted to INR 2,658 crore and INR 425 crore as compared to INR 2,383 crore and INR 343 crore for the corresponding quarter of the previous year, recording increase of 12% and 24%, respectively. The consolidated profit before tax and profit after tax for the first quarter of the current year amounted to INR 357 crore and INR 276 crore as compared to INR 283 crore and INR 216 crore for the corresponding quarter of the previous year, recording increase of 26% and 27%, respectively. The business scenario of all the product segment of the company for the quarter ended June 30, 2024, as compared to the corresponding quarter of the previous year, as under: Plastic Piping System business grew 20% by volume and 14% in value terms. Packaging Products segment business grew by 8% in volume and 14% in value terms. Industrial Products segment business grew 12% by volume and 3% in value terms. Furniture product segment business decreased by 7% in both volume and value terms. The company had total cash surplus of INR 1,245 crore as on June 30, 2024, as against cash surplus of INR 1,178 crore as on March 31, 2024. The overall turnover of value-added product increased to INR 925 crore during the current quarter as compared to INR 756 crore in corresponding quarter of previous year. Business outlook. Polymer prices remained inbound during the quarter, except for the price of PVC resin, which increased by around INR 13 per kilo and increased about 15%. However, PVC resin prices started showing a declining trend from second week of July onward. Thus, the raw material prices are expected to remain affordable. The country is witnessing good rainfall in most of the part, which augurs well for the economy. Demand for housing and infrastructure is good. The company remains positive of initial volume growth with an increase in value-added product turnover, both for plastic piping division and for the company during the current financial year. Various capacity expansion program of piping division are progressing smoothly. Most of the expanded capacities at the existing manufacturing unit would be in place during the second half of the year. Various greenfield projects which are taken in hand are progressing well. The company has been allocated equivalent land at Malerkotla in Punjab for a new unit to expand its pipe fitting capacity, additional land at Jadcherla, Telangana for further expansion, and also completed the purchase of contiguous land to existing plant at Sangli, Maharashtra. The company also negotiated purchase of additional contiguous land at Kandivali for expansion of bathware product. Identification and allotment of suitable land in Patna, in Bihar, and near Vijayawada in Andhra Pradesh are at advanced stage. The company also applied for industrial land in Jammu, in Kathua district, for putting up a plastic product complex. A new greenfield unit dedicated for production of various industrial valves at Malerkotla has commenced trial production and likely to go into commercial production soon. With completion of all the expansion plan undertaken during this year, actually greenfield site, installed capacity plastic piping system shall lead to 835,000 tons per annum by end of fiscal year 2025, from 740,000 tons as on 31 March 2024. Orders for equipment are in place for PP silent pipe system and technical collaboration with M/s Poloplast of Austria. The newly launched PE-RT piping system and PE single wall corrugated pipe has received an encouraging response. The polyethylene gas piping system is expected to launch by October this year from Gadegaon. The company continued to invest and enlarge the product basket in its piping business and to increase the range of value-added product. The company's strategy to focus more on value-added product from cross-laminated film is yielding positive result. The division is expanding its fabrication capacity, which will further help in improving overall realization and margin. Efforts to expand geographical reach in the world market are yielding positive results. Trials have commenced to manufacture newly developed cross-laminated plastic film. The company is hopeful to successfully complete the trial process in the current quarter to pave the way for its commercial launch. The company has expanded and introduced various new model of chair and cabinet in furniture segment. The division continued to add showroom to improve awareness of its range of premium product. Total number of showrooms has reached 319 by the end of June 2024, from 308 showrooms as on 31st March 2024. The industrial components division is carrying out capacity augmentation judiciously, mostly against confirmed business and projected volume committed by customer. It is also working to expand its customer base and develop the business in new sector, which evaluating the business scenario of various applied customer, division expect better growth prospect going forward. The fisheries and food and retail sector in the material handling division are seeing good demand. Division adding newer market in western coastal area for growth in fisheries, trade, and also building strong network for increasing sale of variety of dustbin. There is good demand from the ice cream industry. The division is expanding its product range and is in process of establishing manufacturing setup for BubbleGUARD board used in packing boxes, and is also expanding capacity for production of PP hollow sheet. The division expect to continue its momentum of growth, both in volume and value term. Composite LPG cylinder has received letter of intent from Indian Oil Corporation Limited for the supply of 231,035 number of cylinder during the year. The company is actively engaging with the distribution system of LPG cylinder and initiating various promotional activities. The Protective P ackaging Division has enhanced its capacity utilization. Stands ready to work more on fabricated product and improve profitability. The division is increasing its fabrication capacity to cater to increased demand and also expanding its capacity at existing location, apart from looking for a new greenfield site near port industrial region to cater to export opportunity and meet increased domestic demand. Identification and negotiation for acquisition of land are at advanced stage and are likely to be concluded by October 2024. The performance packaging division continued to utilize its capacity optimally and work on post-decision value-added product. The company placed equipment order for making windows at a new site to start with Dhatav, and also at an existing factory at Kharagpur. The company expect to supply windows from these two sites in the first half of 2025, 2026. Overall, the company focus is to achieve value-added channel growth along with volume-driven growth in all its businesses. With this focus in mind, company plans to expand at 10 running units this year and plans to add 7 new sites, which will enable the company to operate from 36 sites.... spread over 15 states in the country. With increased business opportunity, the company has made CapEx commitment, including term loan commitment, of around INR 1,500 crores. Entire CapEx shall be funded from internal funds. This is a brief and overall summary for the quarter ended in the reference. Thank you for your presence. Now, I and my colleague, Shri P. C. Somani and Shri R. J. Saboo, are available to reply to various queries raised by all of you. Thank you very much. Hello? Hello. Hello. Can you hear me? I've concluded. Yes. 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 the 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 your question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. Thank you. The first question is from the line of Venkatesh Balasubramanian. Please go ahead, sir. Yeah, thank you for the opportunity. I had a few questions. The first question is: did you have any inventory gain or loss in the current quarter? No, no inventory gain. Okay. Now, was June a bad month for growth? Because wasn't your volume growth almost 22% YOY in the first two months of the quarter, and then for the full quarter, you've done 17%. So did something happen in the third month of the quarter? And if at all, what exactly happened in the month of June? The prices started going up big way. In the month of June, in first half, the prices went up by INR 8 a kilo, two times, INR 4 a kilo. So customers were concerned that what is going wrong. So then they withdrew the purchases, and they were selling from their inventory. This happens in the business. But usually when prices go on, go up so fast, isn't there inventory stocking and actually you end up selling more? The increase was not considered sustainable. Okay. Due to artificial reason of the freight going up from Asia to India, majority of imports of PVC coming from Asia to India. Okay. As the majority, 80% PVC in the country come from Asia, and the freight rate due to rates, the prices went up suddenly big way. People never believed that this freight increase will sustain, and that is coming true. Now the freight rate is coming down dramatically. So starting from second week of July, prices went down by INR 4 a kilo, and thereafter the demand is also very weak, so the company had to give price protection, and we believe the company price will go down again, either in first August or even earlier. So these are the reasons the business has been affected in the month of July and going to remain affected in the, affected month of June and going to remain slightly lower in month of July also. Okay, understood. Now, given that you've.... Yeah. Okay. No, what I was asking is, given that June has been a weak month, and July is also expected to be a weak month- We still commit 25% growth. You think you can do full year, 25% volume growth? We maintain. Actually, Mr. Taparia, you had guided for 20% volume growth overall and 25% for plastic pipe. 25% plastic piping. Okay. And for overall 20%, that also remains? Yes, right. Yeah, yeah, we reach. Yeah. Any change to your 15.5% margin guidance? No, no, we say it is going to be between 15%-15.5%. Okay. Last question from my side. A lot of players are telling that Supreme is aggressively cutting prices and is pulling down industry margins. Any way you want to respond to that? Because some of your competitors are saying you're cutting prices. It's not reasonable to market rumors. Okay. Thank you very much. All the very best for the year. It was a good question. Well done. Yeah. Thank you. The next question is from the line of Rahul Agarwal from InCred Asset Management. Please go ahead. Hi, good evening, sir. Thank you for the opportunity. The first question, you know, just wanted to understand between the plastic product segment, which are the products which are seeing faster growth and which are the products relatively slower right now and expected to improve in the following year? That's the first question. Plastic Piping System has good growth potential. Packaging segment has got good growth potential. Material Handling has got good growth potential. Sir, I was asking more for plastic piping. Within plastic piping, which are the products which are doing better and which are the products which can pick up in growth for the balance nine months? It's a classified information. Okay, no problem. Sir, packaging, EBIT margins are very volatile. What could be the reason, please? ... Because the demand for all our product segments will now come up, and cross-laminated film, there were so many new competitors came making look-alike products with no properties compared to our cross-laminated film. After three years, the product is a complete failure, so now the customers are coming back to us, and we are able to increase our volume and the price of the segment. Sir, I understand that, but when I look at the EBIT margins reported for the segment, you know, on a QOQ basis, they're very low, and they've been very volatile over the last five quarters. Is that more a function of the, you know, product mix in the segment? I showed you protective packaging product and cross-laminated film. In our packaging film also, we are going more to value-added product. Okay, maybe I'll take that offline. Lastly, sir, in terms of CapEx, I just wanted to know what would be the cash CapEx for the year, for fiscal 2025. I understand the overall CapEx is INR 1,500 crore. From a cash flow perspective, what would be the cash outflow? Yeah, it could be in the range of INR 1,000 crore-INR 1,200 crore. We, we really can't estimate today, but should not be beyond that. Thank you so much, Somani ji. I'll come back in the queue. All the best, sir. Thank you. Thank you. The next question is from the line of Umesh Patil from Reliance Nippon Life. Please go ahead. Yeah, thanks for giving me the opportunity. Good evening to the management. So couple of questions, just wanted to understand, I mean, if I look at the overall, you know, margin trend, I mean, because of the higher PVC prices, it should go up, but that didn't happen. So does it mean that, the contribution of, you know, non-plumbing, products, particularly agri pipes, was higher, and that was the reason for this quarter? I don't follow. What question is... I don't follow. What you say? Sorry? I don't follow your question, please. I just need to understand the overall EBITDA margin, particularly our company has reported 14.7%, and the PVC prices was inched up sharply. So does it mean that in this quarter, there was a higher contribution from agri pipes rather than plumbing pipes or pipes, due to which the margin was not that much, I mean, reported? Generally, agri pipes are low margin. Right. So what was the, you know, contribution of agri versus plumbing for this quarter versus the general trend? We can't say correctly, because we know that many places, agri pipe is used for housing also. We are principally more in the housing segment. We are not a very big player in the agri segment. Okay. Sure. And more in the housing segment or infrastructure. Sure, sir. You mentioned that the second question was related to, you know, margin profile. As you mentioned that in quarter one, particularly in June month, there was a spike in the PVC prices by around INR 8 due to which dealers refrain to buy it or restocking it. But again, if I look at, you know, the PVC prices has went down by INR 4 recently, in the last two weeks or so only. So do we see sharp recovery in margins or restocking will again happen? We said that we will be earning around 15.5% for the whole year. Monthly basis, we can't talk like this, monthly we see down, because the current price also, PVC may not sustain, it will go further down. Company is giving already price protection. We are also giving customer price protection. Right. So does it mean that, because, see, in falling prices, generally, dealers are also refraining to buy it. So again, there will be some issue related to, you know, the volume growth. So I just need to understand, I mean, are we still comfortable to achieve, you know, 25% piping volume? Because for the rest of the month, you mentioned that July month is again not good. We are committing, not only committing by words, we are committing investment also. You have heard of my all investment plan in 10 new site, our HC site, we are expanding capacity. Sure. We are making 5 new sites for plastic piping. We are very confident market will grow. We are confident that we will achieve 25% volume growth. Okay, sure, sir. The third question was, how the industry is planning out? It is into consolidation phase, or do we see, you know, traction again post-budget related to the, you know, government-related projects again, or it would be through real estate demand? How the things will pan out for the rest of the year? Not much government. We don't. We must need government. We deal directly with distributor to the retail point. Distributors. Yeah, agree. Okay. Sure. We are not government business. Sure, sir. Thank you very much. Thanks. Thank you. The next question is from the line of Keshav Lahoti from HDFC Securities. Please go ahead. Hi, thank you for the opportunity. So, want to understand how was the revenue of Nal Se Jal in this quarter? What% of revenue? Jal. Nal Se Jal. Revenue and volumes. Not, not much volume. Nal Se Jal was mostly completed, mostly, but not much value. Okay. With me, but not much value. Now, more business will start from September. Okay. So it should be less than 2%? ... We can't say today, September, too, too much delay today, this quarter. This quarter, I'm asking. It should be less than 2%? Too much to go, now this is rainy season, now. Q1, Q1 I'm asking. Q1, non-segmental the revenue should be more than-- less than 2%, right? Q1, it now cannot be possible because the new budget will come now. When a new fund come, only then money will start flowing. So now the budget will be announced tomorrow. Thereafter, the business will flow. No- Annual basis, not monthly basis. No, what I'm trying to understand, as you know, Nal Se Jal possibly in revenue might be wiped off in next few quarters. What I'm trying to understand, in Q1, the quarter which has gone by, whether Nal Se Jal revenue was less than 2%? I don't know. Because 2%, we supplied very contractual. It may not be only Nal Se Jal. We supplied for Indian budget also, so I don't know idea how much gone for Nal Se Jal. We have no idea. We supplied for infrastructure, this part I know. How much is gone for Nal Se Jal, we have no idea. Okay, so what would be the infrastructure volume and revenue in this quarter? Infrastructure volume, how much is it? On policy, the pipe will be the same. But not, not much infrastructure. Not much, and I don't have the number before me. Oh, okay. Got it. And how has been the CPVC prices in this quarter? Sorry? CPVC prices. Now started going up. The PVC, we also went up little bit. And CPVC pretty available also, and slightly price going up, so we could increase the price also, so there's no issue. Understood. Got it. Now, we can see some margin compression in pipes in this segment, so it's more to do with change in mix, or it's more to do with, you know, increased competitive intensity, higher rebate to dealer to push volume? How should we read it? What margin compression? I don't know what margin compression. I don't. What margin compression you are referring, we have no idea. So if I talk about EBIT margin sequentially, also for pipes, it is down by 120 basis points. And even if I look year-on-year, adjusted for inventory loss, still pipes EBIT margin is down. So how should we read it? No, no, Q1. You see, the major part comes from agri. So Q1 to Q2, you compare- I think what happened- Margins are more or less only. So Q1, if I adjust for inventory loss, which was INR 40 crore last quarter, so that way, still margin is down. So you can put maybe 150 basis to 200 basis margin was down in Q1 due to inventory loss in June 2023. So that way, inventory margin- Last year. Yeah, last year, Q1, there was inventory loss. So if you adjust for that, then margin is down year-on-year also, pipes. Even now, I don't... We don't get such information. I don't know. But basically, because of the product mix, it's also. Okay. Got it. Got it. That's it. Thank you. That's it from my side. Thank you. Thank you. Ladies and gentlemen, in order to ensure that the management is able to address questions from all the participants in the conference, please limit your questions to one or two questions per participant. The next question is from the line of Pujan Shah from Molecule Ventures. Please go ahead. Hello, am I audible? Yeah, you are audible. Yeah. Hi, sir, first of all, I just wanted to ask on the PVC-O pipe. So specifically, we are getting very aggressively on that part, and just wanted to know how the industry has been shaping up, what is the competitive intensity over there, and how will it take capturing the growth of the industry? As of today, we are very, very small player in OPVC. The country is a very small player. There are not many machines making OPVC in the country, so the machines are not available. Presently, there is only one supplier and he's got very limited production capacity. So we have placed order with the supplier, but the machines are inordinately delayed. So there's no competitive intensity, first the product is not available. No, sir, but wanted to ask on the machine availability. So as you have rightly said, the machine has not been available, so are we seeking any alternative supplier or a domestic player who can supply to us and we can aggressively grow towards that? We will buy the machine only if we can make the product as per requirement of the customers. Sir, didn't get you. We develop the machine, then, then we can be the buyer. Sir, you are not audible. Can you please repeat? Person develop the machine, which can make suitable oriented PVC pipe, then we will be the customer. Okay, but sir, just wanted to, like, there is no specific player to manufacture OPVC machinery in India, or we have to import, or how it is the situation over here? We are importing, and we are discussing with some local producer also. Once the local producer machine is perfected, then we will buy. Sir, wanted to ask on the same line. We have been a very legacy player in the pipe segment, so... And we have been pouring into OPVC. So why suddenly we have poured into OPVC? What are the specific demand drivers over here in context to last, from last few years, there has been keen demand over here? ... for your question. In the recent past year, you have been expanded in the PVC-O segment, right? We have been piping company- Only last year, we purchased one company who were making OPVC. OPVC is now come properly accepted by the government department to supplement the ductile iron pipe. So once the government started accepting OPVC pipe in place of ductile iron pipe, then we moved into the business. But the supply of the machines are very limited today. Okay. Local producer of the machine. Once the machines are established, we will be the customer from the local company also. Okay, okay. So, sir- Proper critical mass, then we can talk much better. Today, there is no product available. Sir, just wanted to ask on the same line, as you were rightly- Sorry to interrupt. You may follow the next question queue to... for your next question. The next question is from the line of Sneha Talreja from Nuvama. Please go ahead. Hi, good evening, sir, and thanks a lot for the opportunity. Yeah, please. You may- Yeah. Yeah, you may. Yeah. I also just wanted to ask, firstly, was there any inventory gain this particular quarter? No inventory gain. No inventory. And secondly, like you said, that, you know, there is destocking happening because prices are falling or anticipated to, you know, fall. What must be the inventory levels? Is it too low at a distributor level? And do you expect any pickup to happen from August once price stabilizes? Yeah, yeah, inventory levels are coming down, and definitely, you rightly said, once the price gets settled or stabilized, then definitely the pickup will start. In general, some quantum that you can give, like, how much lower is it on average, how much is it, and you know, how low it is at this point in time? It's very difficult to invest. Inventory level is the showcase level. No, but after giving thousands of which I can't say, but we know very well that demand is reasonably maintained at their level. Okay. There must be destocking in a very big way. Mm. So, and so this month is very, excessive rainy season also. So normally, July month is a low demand month, normally. Mm-hmm. Usually after second half of August, demand become free big way, as normally happens. So- Understood. We are quite comfortable. Understood. Got that. Sir, one last one from my end. Given that, you know, you have been stating that, you know, you're putting Greenfield plants, you've upgraded your guidance for Greenfield plants. We do understand your near-term guidance of 25%, which you maintain, but given that now there are six Greenfield plants, which you've never ever put, what's the likely volume growth run rate that you'll see over the next four to five years? Just a broad number or some sense on opportunity terms that you're able to see in terms of volumes. That will be really helpful. So I, and, beyond this year? Beyond this year, right. We, we should maintain between 2 to, beyond 2 to 12, 13% or 14%, 12-14% volume growth may be maintained after 2022, from 2022 to 2026 onward. We believe the growth may be between 12-15% because the country is giving big, the government is giving big push, and we believe that our economy will grow between 7-8%. Country infrastructure investment will continue, and the economy condition of the country will go on improving. And generally, the PVC consumption will going mostly into building infrastructure and agriculture. The demand will go on growing. So we remain quite optimistic. Understood, sir. Thanks. Thanks a lot, sir, and all the very best. Thank you. The next question is from the line of Sonali Salgaocar from Jefferies. Please go ahead. Sir, thank you for the opportunity. I have just one question. This, this is regarding your value-added sales. Sir, could you throw more light on your product pipeline right now, which could potentially contribute to your value-added sales? No, this, our gas piping system, our CPVC piping system, our PP-R silent pipe system, our PP-R for plumbing system, our press piping system, our P-ERT piping system, all are value-added products. Sir, as a percentage of sales, where do you perceive the value-added sales to stabilize? I believe should be between 40%-44%. I think company has evolved between 38%-40%. That is not our ambition. So we are hovering around 35%, 36%, 37%. So going forward, we should inch up a bit more towards 38%+. This is by when? Next one year? Yeah, we always remain committed to that. So our whole efforts and focus is on this. Understood. That's all from my side. Thank you. ... Thank you. The next question is from the line of Praveen Sahay from PL Capital. Please go ahead. Yeah, hi, sir. Thank you for taking my question. The first question is related to the plastic pipe utilization. At what level of utilization you are running at, and at what level of peak utilization you can reach to? We anticipate this year we will achieve 75%. So if I calculate your 25% of a growth and average out for last year and this year capacity, you need to have a 80% of utilization to reach this 25% of a growth. So is it possible to reach 80%? We must sell 68, 25,000 ton piping, and our capacity at end of the year will be 85,000. It's an average of opening, closing. Yeah, you are saying 70, so it will be between 75%-80% from that perspective. Okay. Just to relate to that, sir, have you ever achieved such kind of high utilization in the past? No. You see, our past average, if you look at, they are always between 65%-70%. So the kind of demand what we are looking at, kind of product profile we have made- Now we are making, adding some new system, and we are adding new SKU in our existing 36 system, and we are adding new distributor. We are increasing reach in other state also, so they have given us good confidence that we will achieve better utilization capacity this year. Okay, great, sir. And, the next question is related to your packaging segment. So, in the packaging, margin profile is quite fluctuating, if I look at for last, five quarters. So, and, while the, your commentary in your press release is quite, you know, encouraging in that sense, like a protective or a performance packaging doing very well. So why is that so much of fluctuation in your margin, EBIT margin profile of, packaging? That may be due to demand, you know, throughout the year, nah? In cross film, which year during off season, a very large volume, so depend on the moment, the volume in a particular quarter. So we are prepared for the demand fluctuation. It's changing demand every month. Okay, so it depends on the demand, how much of what product you are selling, the margin profile changes accordingly. Will be fluctuating, but the good part is that now all the three segments of packaging. Okay. There is the Silpaulin, there is a protective packaging of performance. All three are doing good. Whereas in past period, sometimes Silpaulin was lagging behind because of the market competition on localized products. So now all those things are behind. Okay. Okay, great. Got it. Thank you, sir. All the best. Thank you. The next question is from the line of Utkarsh Nopany from BOBCAPS. Please go ahead. Yeah. Hi, good evening, sir. Yeah, good evening. Yeah. So my first question is on the plastic pipe segment. Just wanted to know whether we are sourcing plastic pipe product, captively only, or we are also sourcing it through third party at present? No, no outside sourcing. Okay. So, second, like, given the current demand and competitive scenario in the packaging segment, can you give some sense what would be our sustainable packaging segment margin over the medium term, in your view? No, our margin which we are now gaining or getting are the sustainable. They are sustainable only. At around 15%, sir? You are talking the EBIT margin or EBITDA margin? EBITDA margin for packaging segment. I think going to more than 15%. Yeah, it should be more than 15%. Or going to more than 15%. Okay. And lastly, sir, can you just give some sense what would be our CPVC or pipe volume growth in the current June quarter? The PVC volume growth. PVC volume, the first quarter was, around more than 40%. Okay. Thanks a lot. Thank you. The next question is from the line of Rishab Bothra from Anand Rathi. Please go ahead. Hello. Yeah, Rishab. Yeah, sir. I have two, three questions. One, by when you think demerger is possible for the pipe segment? I mean, it's 70% of the revenue has- Pardon me? By when can we have demerger of the pipe segment? I believe 70% of the revenue is from pipe segment. We don't have any plan. No plan. Yeah, what you mean? Demerger of the piping business. Demerger, why? What for? Demerger? What for? What for? We don't have any... For better clarity and understanding purpose. No clarity. No, no demerger. We don't have any plan. Okay. We don't sell pipe only, we make complete product in every segment. Okay. Secondly, sir, can we have a breakdown of CapEx in terms of segment, in terms of capacity, and in terms of value? We don't have any slide for CapEx as such. And the revenue potential going forward. We don't have immediately to share with you. I think going forward, if you could include this slide in the presentation, that would be very helpful. We, we will keep in our mind when we talk in the month of October. We'll talk. We take your suggestion in our mind. Thank you very much for good suggestion. Lastly, sir, on the projection, I mean, you mentioned that 15%-20% growth overall. So INR 121 billion revenue is achievable in FY 2025, according to you? I thought 20% volume growth this year, huh? ... Yeah, overall revenue, I mean to say, will it be crossing INR 121 billion? INR 12,000 crore. This year, the revenue will be around INR 12,000 crore-INR 12,500 crore. Yeah, that is what I was saying. And, INR 180 crores, INR 1,800 crores of operating profit. Yes, around 15.5%. Yeah. Between 15% and 15.5%. Okay. And sir, how do we characterize the value-added sales? Beyond what percentage of margin does it fall into? Beyond 17%. Beyond 17%. So this may keep fluctuating, I mean, the value-added sales percentage, since this is 17%, some product may come up and down. So how do you reclassify quarter to quarter basis? No, no, we classify month to month basis also internally, and that's- Okay. Exactly. Yeah, so that is, it's a very dynamic market. We are doing our business here, yeah, business. Right, right, right. Thank you. This might so happen that in one month, our product may- Sorry to interrupt. You may follow the question queue for your next question. Yeah, okay. The next question, the next question is from the line of Chirag Lodha from ValueQuest. Please go ahead. Yeah, thank you for the opportunity. Sir, my first question is on capacity. So after this INR 1,500 crore of CapEx, putting all these 6, 7 greenfield units in place, what will be our expanded capacity, pipes and non-pipes? Expanded capacity overall will be how much? Jayant? Yeah, 1 million to- INR 1 million. to piping, for piping. No, this year it will be, how much? It's like piping. Because all greenfield will not come this year. It will correct. Correct. This year. No, I'm- But it will come by end of next year only. Correct. So I am trying to understand FY 2026 capacities after this INR 1,500 crore CapEx. Right. FY 2026, I think it's 1.25 million ton. Out of this, pipe would be how much? Pipe, 1 million ton, 1 million ton. 1 million ton. Okay. Second question is on, sir, this industrial valve, sprinklers and pipe gas piping system. What kind of investments and capacities we would have put or we are in process of putting? In the industrial valves, they are all separate investments. Industrial valves separate investment is INR 50 million lately, and certain months are ready, it will go proper production only from April 2025. So that time we will do the current investment, what we are initializing in the business. Okay. And, do you expect any inventory gains in Q2? No, no, no inventory gains, prices are coming down. So I hope there will be no inventory loss. Okay. Just lastly, on the CPVC, June month- Sorry to interrupt. You may follow the question queue for the next question. Thank you very much. The next question is from the line of Abhishek Ghosh from DSP. Please go ahead. Hi, sir. Thank you so much for the opportunity. Sir, when you talk about this 25% of pipe volume growth for FY 2025, what is the expectation of industry growth there? I think they are tracking at 12%-15%. Okay. So industry will grow at 12%-15%, and you will grow at 25%. That's my understanding, right? Yes, sir. I was told by the raw material supplier, I don't know. Oh, okay. So many and also there, and so many players there. I can talk more greatly about my company. Okay. And sir, just in terms of, you know, there were a lot of talks about the anti-dumping duties on some of the imports of PVC. So what is the status on that, and how should one look at the PVC prices on account of if there was an anti-dumping? Anti-dumping, I also want to know if you will help me. Please advise me. I think it's only known to the DGTR department and Ministry of Finance. I have no idea. It's done by two departments, Ministry of Finance and DGTR, Directorate General of Trade Remedies. They know, and Ministry of Finance knows. I have no idea. Okay. Okay. Okay, sir. Got that. Thank you so much. I'll come back in. Thank you, sir. Thank you. The next question is from the line of Shubham Aggarwal from Axis Capital. Please go ahead. Hi, sir. Thank you for the opportunity. So my question is on the plastic pipe segment. So just trying to get, I'm trying to get a sense of what your priority is in the segment. So I'll frame my question like this: So in the past, you've, you know, guided or you've, your decisions have been guided by the ROC target of 20%. Now, in that context, is it right to say that you will be, you'll be passing on the cost advantages that you will get from all the capacity expansion that you're doing right now, in order to maintain... and you will still maintain the 20% ROC target? What I intend to say is, will you retain some part of the cost advantage which will reflect in the margin and increase the ROC, or will you pass it on completely so that the ROC is at, for 20% and you get exceptionally high volume growth compared to the market? What is your priority here? Yeah, yeah, you are right. You see, ultimately, our ROC rate is not diluted any time. So when we put up the new capacities or new plant and new greenfield, so we try to see, capture that market aggressively, and definitely the cost advantages, or more particularly the freight, you can say, is passed on to the customers. Right. That will make you more competitive in the market. Is that right to understand? Hence, your ROC will be in place, and all the advantage will pass on to the market for volume growth. Volume growth will be the priority. ... We have got a huge variety of products, and we sell system, we sell solution. So, so we have no issue. Mm-hmm. Okay. We are adding more and more system. Today, we are opening 36 system. This year, we are adding five new system. Apart from the 41 system which we have, by middle of June next year, we will be adding several SKU in the existing system. We go on increasing our product portfolio to give full solution to our customers. These systems will be margin accretive? That's my last question. To give better service to our customers. No, will these systems be margin accretive or per kg basis, will they be margin accretive or not really? Just, that's my last question. It is accretive to volume, accretive to value added, but our focus is to grow by volume, grow by value added. That focus remains. Okay, thank you, sir. We need to provide the entire system because that is the package what we have to provide. We have strength to provide complete solution to customers. Yeah. Got it, sir. Thank you. This was... Thank you. Thank you. The next question is from the line of Deepak Mandhana from Avigna Investments. Please go ahead. Hello. Thanks for the opportunity. So just wanted to understand, basically, when you are saying that the government gas pipelines would be a business for us, in terms of margin, I think that would be a very low margin business. I guess the tender would have, tenders are generally given to the lowest quote. Is that understanding correct? We have not received or got any order. When I get order, then I will reply you. Okay, and- We have to apply in the third quarter. Okay. Are we ready in terms of the capacity which the order size may come from, or are we still building that capacity? No, we have got capacity to make pipe, but we are making capacity to make fittings. Okay. That we are adding several varieties of fittings. Okay, so that- Orders, valves and our valves are under construction because we will be supplying complete system. We supply only pipe, we supply fittings also. Okay. So in terms of, in terms of our CapEx, are we CapEx ready for that, or would, would we take another quarter for getting that ready? No, CapEx has already been committed. Now the delivery of equipment will take place. So work will take place. Okay. Thank you. Thank you. Thank you. The next question is from the line of Aditya from Securities Investment Management. Please go ahead. Yeah, hi, sir. Thanks for the opportunity. So you mentioned that PVC prices increased by 13 per kg this quarter, but when I look at your realization per kg, it has fallen, on a sequential basis. So why is that? Yeah, I think... No, no, you are saying. You see, actually, there is a change of product mix. Exactly. So you really can't compare apples to apples that way. There are so many varieties of system, product, SKUs. Understood. So if I have to understand, PVC prices increased by 13 per kg, what would it have been our price hikes in this quarter for the different products? On the month of June only, no? The price went up in month of June. So June price will not reflect in our product price. What would the price hikes have been taken in June on a blended basis? Month of June, the price went up by INR 8, out of INR 13. INR 8 increased in June only. And we also increased the prices by 8 INR? In the month of July, the price went down, so there's no increase finally. Whatever increase took place, it has all gone down in the month of July. So a temporary change. Understood, sir. Okay, sir. Thank you, sir. Thank you. The next follow-up question is from the line of Pujan Shah from Molecule Ventures. Please go ahead. Yeah, hello? Yeah, Pujan. Yeah. Sir, just continuing with the same part, just wanted to understand what is the expansion plan we have been planning to for the PVC-O pipes, and in next two to three years, what are the CapEx we have been planned on? We have, we got one line from the supplier. We have placed order for nine more line. Okay. Going to be- So, nine? So just what- Thirty. Hello? We'll talk today. Didn't get you what? The delivery of the nine lines which we placed on the supplier. Delivery will be in 30 months, 30. 30, 30 months? 30, 30 months, 30 months. 30, what is the total? Nothing to count. We don't get capacity today. 30 working days? 0, 30 months. 2 years, R&D. Okay, okay, okay. Got it. Got it. But, so, so what will be the per line expansion? Like you have said, nine lines you have been expanding to. So what could be the capacity of one line? Inline and the capacity can go roughly by about 30,000 tons. It will be 30,000 tons?... Anything. So currently we are at 300, 3,000, sorry. INR 32,000, sir. 32,000, and we are currently at 3,000 metric ton. After two and a half years. Yeah, yeah, I got it, sir. We are currently at 3,000. We will expand by 32. We, we'll make the total facility by 35,000, right? Today, we have got capacity of 2,500 tons, and- Okay. We are getting 9 lines with a fresh order, which is going to come in 30-30 months, which will increase our capacity to 32,500 tons. Okay. After year to year, it becomes maybe ending 2025, 2026. We are beginning 2027 or 2028. This includes 2,500 tons. So what, what did you say, sir? The production. Sir, what will be the cost of one line to be installed? Yeah, INR 40 crore. INR 40 crore. That would be okay. Okay, got it, got it. And just wanted to understand, is this business related to B2B, B2C, or how it is being planning to? It is in a distribution-led business? It's a B2B. We will let you, so contractor, he will buy and then supply to government department. Okay. Okay. Purchased by government departments. Government purchased more than, maybe more than 4 million tons of DI pipe. Okay. So how much DI pipe would be replaceable by this OPVC pipe? I don't have capacity. I don't know much about it. Okay. Cool. Okay, got it. Talk to you properly after 202 years, I will talk to you properly. Sure, sure, sure, sure. That's all, Mehta. Thank you so much. Thank you. The next followr-up question is from the line of Rishab Bothra from Anand Rathi. Please go ahead. Just, I wanted to understand, we have been incurring CapEx on a regular basis. Have we looked at inorganic growth opportunities at some point of time? Last year we acquired Parvati Agro Plast, so we have seen and we have done it also, but not too much. You see, ultimately, we are in organic growth. We are not interested in inorganic growth. Has that acquisition been falling in line with our expectation? It's still growing inorganic growth. Okay. Has that acquisition falling in line with our expectation? Yeah, now, that is, we purchased because we are coming in online. No, no, post-acquisition, I'm meaning to say. The acquisition we have to take it. We are happy with the acquisition. Okay, sir. Okay, fine. Thank you. Thank you. We are taking this as the last question. I would now like to hand the conference over to the management of Supreme Industries for closing comments. We thank you very much. We are very much thankful to all the analysts and our partners for raising very excellent, energetic question. We, myself and my both the colleagues have tried to reply all the question, whatever raised by them. We thank them very much. Thank you very much. Thank you all. Thank you all. Thank you. Thank you. On behalf of DAM Capital Advisors Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.