Should we begin with the question and answer session now?

Yes.

The first question is from the line of Akshay Chheda from Canara. Please proceed.

Hello. Yes, thank you for the opportunity, sir. Sir, just three questions from my side.

Akshay sir, can you please be a little louder?

Hello. Is it better now?

Yes.

Yes, sir. So, three questions from my side, sir. So first thing, you mentioned that you were facing the shipment challenges both inbound and outbound. So because we were not able to ship few of the goods, does it mean that it was a loss sale or it will flow through in the subsequent months?

No, it is not a loss, it gets into a supply delay possibly delay of a week or so or something like that. It never is a loss.

Yes, the next month it flows through. Suppose in the month if the container shipping line containers are not available due to container shortages, then it flows out to the next week or the next vessel cycle.

Sir, could you quantify what could be this volume which should have been spilled over to the first quarter?

So, it was around INR5 crores of sale, out of which three something is export and rest is domestic. So INR3 crores is around what will be added in July.

Okay, got it.

This will be treated as in transit and apart from that, there are containers at factory which were not in transit, that will also be added in this. So that is around INR2.5 crores worth. So total INR5.5 crores will be added in this July month.

Got it. So second question, I think we have guided for a 75% capacity utilization. So is it on 39,000 tons or 41,000 tons?

It will be 41,000 tons for remaining nine months.

Got it. And sir, last question from my side, sir. Actually, we have seen a lot of employee expense going up, obviously it has to do with the Khatalwada facility. So what could be the steady state run rate for the balance three quarters if I have to look at the employee expense? Would the Q1 be the fair assumption for the entire year if we annualize it or it will still go up?

This will be the fair, a little bit if increase will be very little bit, but Q1 will be fair to compare.

Okay. Got it, sir. Thank you so much.

Thank you. The next question is from the line of Nirali from Unique PMS. Please proceed.

Yes, hi. Thank you for the opportunity. Sir, so you mentioned that we have seen raw material price volatility of upwards of 40%. So when we look at the quarter's revenue, what will be the pricing growth and the volume growth for the quarter?

Just one minute. I will give you that

sorry, did not get your question properly. So pricing has increased by 40%. That's what you are saying. And then you are asking?

No, the raw material prices increased by 40%. So I am sure you will have passed some of the price increase. So, what was that number. So what extent did we see pricing growth and what was the volume growth? Because you said the polymer processed has grew by 25% Q-on-Q. So that is not reflected in numbers?

So basically, the polymer overall, if I may say 40% to 50%, it could be ranging between that range at an average range which could be one of the peak ones. The raw material content itself

what we have in our product mix is around 50% to 53% on the product mix side, the raw material content itself. So even if it's a mix is at around 40%, the impact on the price can be around 20%. On the sales side, about 15%, you can understand.

Okay.

So, to answer your question regarding the volume, so you are comparing the production volume, but then the sales volume was more in quarter four. So the sales volume was around 5,831 ton. And in this quarter, the volume is 6,090 sales volume.

6,090 and for the last quarter it was 5,813?

Yes, 5,813 (Errata: wrongly spoken as 5,813, to be read as 5,831 ton). So you can compare that and then you can see. Because if you see the production, then it will not give the clear picture. Because sales volume is different in the last quarter because the sales was more from the inventory and production was lesser.

Right. So if I see the volume growth was around 5% and the revenue growth that you reported was 11%. So there is a huge delta for the pricing increase yet to be passed to the customers, right?

Yes, second quarter it will come.

There's a time lag. So it will be passed. Already it has been confirmed by the customer, but now it will reflect in the Q2.

Okay. So once the situation normalizes, we will see one quarter where we will see a very good growth on the pricing front because of the cost that is yet to be passed where the raw material would have stabilized. Is that understanding correct? One quarter we should see some exceptional growth?

Yes, sure.

Right. And why is this volume, the sales volume, just a growth of 5%? So is this a demand issue? What is the issue for the sales volume to be so low?

So Nirali, demand issue is not there. Mostly it was it will it was because of that availability of raw material that time and the logistic problems. So now it will reflect in the Q2. So demand is what we were expecting, it is better than what we were expecting. So demand is not an issue, the logistic is an issue and raw material availability was an issue. So that raw material availability hits our April and May. And then June improved. So now in Q2, you will see the demand better demand impact. So Q2 will be much better. Yes.

Okay, okay. Fair enough. And you just mentioned that Khatalwada capacity to reach 41,000. So, we were planning to add 6,000 metric tons for a year, right?

We are still planning that only. So, 1,500 we have we have visibility for the demand, so that we have ordered. That type of machines we have ordered. So that will arrive in Q3, and it will be

fully available in Q4. Remaining 4,000 we are planning as per the demand we'll order. So, we are planning to order in third quarter that. So maybe by quarter fourth quarter end we'll receive those 4,000 metric tons.

To clarify a little bit on this further to Manish, we run on some projects with large customers. So, we don't want to jump the gun and put the money where the right equipment is also selected and not do in a generic investment at this stage now, where we have reached. So we would be focused on our selection of the right project and then take that forward. But that we still are ready for doing that, so it's not a problem.

So, is it are you trying to say that we still don't have visibility for these 4,000 metric tons and hence we are delaying a little bit?

No, it's not question of visibility. What happens is sometimes the visibility from the same customer, the product line changes and you might not have the right equipment to efficiently make it at the best price. So, it is better to wait for some time to take that call in a wiser manner with so much of volatility happening. Yes, with the volatility, we have been able to keep our numbers intact. And the turnover there would be no drop in turnover or the projected volume for the sales what we are planning with the equipment’s what we already have. That's not going to be a limiting block for us to reach our sales targets and numbers.

Right, right.

Because our business is such. Our business is not -- that it's a model where it is like that, yes.

Right, right. And in your commentary, you also you want to grow the domestic business by 30 to 35%. But for the quarter was that number flat?

Yes, for the quarter it was flat because we went for a full price change with all our customers and also, we had to set up our capacities at Khatalwada to be operationalized to have the domestic business. Because domestic we didn't do a step-up price change. We waited; we halted the production. We asked for a full change which should be impacted to us. Because domestic we will never get that transition opportunity of resetting the prices with them like, how we are able to do with our export customers. So now the price change has been fully accepted and the orders are flowing in full flow from the domestic business also.

Right, right. And for this bamboo part, so our initial thought process was INR15 crores of capex and INR60 crores of revenue from that part, the Phase 1 that you say. So that still holds true, right?

Yes, but then the capex might increase looking at the next phase. So yes, INR15 crores are fine for 3,000 CBM.

Okay. So just one last clarification from my side and then I'll move on. So, for the longest time we have seen our revenue, quarterly revenue to be around this INR150 crores. Putting the

geopolitical issue aside, from the next quarter if we see stability on the global side, can we expect a 15% to 20% revenue growth?

So, the demand we are having, definitely it is more than 15% to 20% increase. So, demand is there, we have order book also in hand. So yes, if the situation doesn't change, so then definitely we'll achieve that 15%.

Okay. And the margin should also improve with that.

Both will improve because…

Nirali, we can't comment on the margin but EBITDA definitely will improve because margin we are doing this 39% historically also. So, margin we can't comment, but EBITDA will definitely increase if the growth is there of 15% to 20%.

But why can't you say on margin front? I didn't get your point.

See, margin depends like margin on the product mix also, it depends and historically we are doing between 39% to 40%. So, we can't comment on that, but yes, if the sales grow, then the expenses will be absorbed and EBITDA will definitely improve.

No, because when you want to grow domestic business so aggressively which is a higher margin business, then definitely it should reflect in margins also, right?

The percentage looks higher, the base is small, right?

Right. But 30%- 35% growth is a good growth for the domestic business.

Yes, yes. So that will increase, but the margin impact will not be that much if 30% to 35% is also the increase then we are talking about a 12% business -- 13% business. Because domestic 15%- 16% is total, but out of that 3% is not our brand All-Time brand. So that 12% to 13% business will definitely grow by 30% to 35%, and that will reflect in the GP margin also. Definitely margin will also increase, but I can assure you that EBITDA will definitely improve. Because we are having a demand with high low margin customers also in export.

Right. So, my point just to be very clear, my point was not to…

Sorry to interrupt you, Nirali ma'am, but can you please come in the follow-up question? Please rejoin the queue. The next question is from the line of Ananya Nichani from Thinqwise Wealth Managers. Please proceed with your question.

Am I audible?

Yes.

So as already Kailesh Bhai expressed earlier, the change on pricing into the marketplace was one of the areas for which we needed almost about eight weeks. So, the first quarter we lost almost eight weeks. Quarter going ahead we are quite upbeat because the order books are full and we are definitely going to achieve our numbers.

Okay, okay.

Have I answered you well.

Yes. Sure. And also, can you give like a rough indication on how much price was passed through in Q1 and what's remaining? Just in percentage terms if possible.

So, for domestic we have passed on 100%. For our largest customer there is a time gap of eight weeks so that will also be reflecting in this quarter only. And remaining customers we have done 50% which we have indicated in the last call also, that we have already done, and it will be a longer period so that there will not be a loss to us.

Okay, sir. Sir, also in July there was quite heavy rains in Khatalwada and that region. So, any adverse impact on production that you have experienced? Can you talk about that?

Yes, so we had some shutdown due to power disruptions at Khatalwada facility for one and a half day and at Daman plant for three days. But as far as the assets are concerned, our people are concerned, and our sites safety is concerned, we were all intact. Nothing major was -- nothing was reported at our sites and our sites are safe. In fact, the sites nearby to us lot of factories saw flooding also.

Yes. Okay, sir. That's good to hear. Thank you so much.

Thank you. The next question is from the line of Rajesh from Raghav Capital. Please proceed.

Hello.

Yes.

Yes, sir. Sir, my questions on the bamboo facility. So, you said that by September you will install the machines. So, do we see a commencement of operations from third in -- from fourth quarter?

Yes, fourth quarter.

So what will be the revenue we will generate for the fourth quarter?

Revenue will be for the quarter what we are expecting for the year was around 75% utilization of 3,000 CBM. So, it will be around 20% of 75% utilization. So, we'll be doing that much in that quarter.

Okay, okay. Sir, and one more question is on the bamboo. So, once we once we produce the bamboo and we get the orders, so do we see any cannibalization in in plastic revenue also because same company or same customer will be buying the bamboo product from you, so and

will be reducing the plastic product. So, do we see any cannibalization and flat revenue from coming from?

No. there is no cannibalization of the business will happen due to bamboo products introduction. There are different price point customers for both the product segments. Like a chopping board when in plastic is a much different price than a chopping board of bamboo and the end consumer is different. In fact, this will help us to grow our business with our existing customers, and bamboo will also open up doors for new customers who are exclusively doing bamboo work.

Okay, sir. What are the margin differences between the plastic and the bamboo?

The margins on the bamboo business are much -- slightly few points higher basis points than our plastic business currently.

Okay, okay, sir. Thank you, sir. Thank you so much.

The next question is from the line of Aagam Shah, an Individual Investor. Please proceed.

Thanks for the opportunity, sir. Quick question, so I missed your opening remarks, sir, joined in late. So, I don't know whether you have spoken on or not, but can you talk so -- how is the current scenario or the demand? Are we back to normal shipping and in terms of pricing and everything for export as well?

Yes, I did cover in my opening remarks, but I can give it to your benefit that the pricing pass on has happened to most of our customers, domestic 100%. Other customers where the rollover mechanism is there, the rollover quarter-to-quarter rollover delay is there. Otherwise, it is passed on. Some of the customers what we had said 15%-20% of our business we've been able to pass on 50% of the pricing which is only restricted to about 10%-15% of our business. But that is going to be given us later when the price momentum goes down, we will have a more time for our recovery of that lost margin.

Okay. And the shipments are going?

Forecast is good. Forecast have not yet deviated from any of our customers. The play is good. America market is also doing good.

And our shipments are going?

American market is also doing good with our current customers. So that is also doing fairly well.

Okay. So, is it safe to say we will be back to the 15% volume growth?

Yes.

Marginal. Right now, we have put this capex at 3,000 CBM space and once these new automated machines and everything gets deployed, and then we might have some differences what Manish was trying to indicate. Not much.

So that is for the existing capacity only or for the newer capacity you mean?

Existing only. Slight machines because some of the machines we might need a special machines and special equipment’s to make might we need to buy that we will take a call later. But currently all the machines are now shipped out. So, they are all in transit. That also had a lot of delay. Machines were ready and due to shipping containers not available in China we lost three weeks, about maximum 19 to 20 days.

Okay. And any further plans to increase the capacity next year?

Yes, yes, yes. We are very much continuously ramp this up because we are seeing good traction post our exhibition show and display of samples. We have good traction with our existing customers also and new customers have also shown interest in the product. And the best part is that they like the Indian bamboo color and feel and the quality, which was one of our fears initially that people are used to seeing Chinese bamboo color, whether they will appreciate a darker shade or not, but that fear is now no more.

Okay. And any newer products or newer material we are we are planning to launch or anything in pipeline you'd like to comment on?

Nothing specific to talk about in terms of new material, some grades of plastic here and there have changed. Otherwise, nothing on new on the material side right now.

Okay, okay. Thanks, that's all from my side. Thanks.

The next question is from the line of Anant Mundra from Mytemple Capital. Please proceed.

Hello, yes. Thank you for the opportunity. Sir, I wanted to just understand that our assumption of 75% capital capacity utilization for this year, is it contingent on the geopolitical situation normalizing further or now the situation has kind of adjusted, and we are still confident of achieving this even if the geopolitical situation?

I think we will be able to achieve it. We don't see contingent of that, only what the contingency lies in supply delays. That's our biggest challenge today. That's the only challenge what we are facing in for our materials. We don't see any other issue because of the price has gone up, the orders will flow down or something like that, that challenge is not there. People have bought in now.

Okay, okay. And sir, on the incremental capacity that we are adding and we plan to reach to 52,000 soon. So incremental capacity, the anchor customer is again going to be the largest customer that we have or do you see US customers contributing more?

Concentration of the US customer will definitely be more, but our largest customer is also, as it's in public news, the largest customer have already showed a very aggressive expansion plan

in India in the next two years, which will definitely help in growing our India domestic business with the largest customer.

All right. So, can you elaborate on what their plans are for the domestic market, and how much does each store add in terms of revenue for us?

Historically, we can say that around each store gives around INR40 lakhs - INR50 lakhs. You can at a conservative side I'm saying INR40 lakhs, but generally it is INR50 lakhs, but we it all depends on the size of the store and the model what they open up.

Per month per store.

Okay, okay. And how many stores are they planning to open over the next two years?

That's what they on public they are saying, they have announced 25. 22 or 20. Yes, they have announced the 20-25. But possibly if two years does not happen, three years it will definitely happen. Yes, two to five whatever is the time, that's in public news. So that will give us a steady growth, and with that we also foresee some of the import substitution items which currently they are importing will also start adding to our range for our largest customer. Because currently those imports those items because of less stores. And those are expensive.

Got it, got it. So, the incremental capacity is going to be directed US customers on the export side and?

Incremental capacity more would be towards the US market and our new customers.

Okay, okay. Thank you, that's it from my side.

The next question is from the line of Anu Parekh from Anand Rathi. Please proceed.

Yes, hi sir. So, my first question would be on the demand outlook. What are we expecting for the consumer houseware category like what are expectations for FY27 and in terms of seasonality if you can highlight which quarters are the strongest for us.

So, there is not that much seasonality in our business, but H1 and H2 has a difference. So H2 will be more and H1 is little lesser than H2. But seasonality -- that much seasonality is not there in our business. And as of now we are having a strong order book. So, we are expecting at least 15% to 20% growth in FY27

On a consol basis for the company? And sir, my second question is can you please highlight on the competitive intensity in the B2C sales like is the unorganized segment struggling because of the volatility in the raw material prices and whether they have taken similar price hikes like us?

It's not troubling us that much unorganized sector, though it is there, but in fact we get a better opportunity at this kind of time because of high output, high cost, the working capital stress is there on the smaller unorganized sector which gives us a better opportunity to enter. And when we are selling in large volumes to large retailers, they also now understand that the brand and

the packaging and the product functionality are very, very important. So, they are also looking at different strategies to select suppliers.

Understood sir. Yes, thank you so much.

The next question is from the line of Dev Mehta from Unique PMS. Please proceed.

Hi sir. So, we have done 18% to 19% of EBITDA margins in FY24 and FY25. So, when are we expecting to get to those levels again going ahead?

Once we achieve 80% utilization of our capacity, we'll be there.

Okay. So, for FY27 we can expect in the line of 16%-17%?

Better than last year, definitely. I can't comment whether it will be 16%-17%, but it will be better than what we have done last year.

Okay, but directionally 18% to 19% is the sustainable margins, right?

Sustainable margin 80% utilization of the capacity, it is sustainable.

Okay. Yes, thank you.

Thank you. The next question is from the line of Aagam Shah, an Individual Investor. Please proceed.

I had the same question on the margin front you just answered to the previous participant.

Okay, thank you.

Ladies and gentlemen, as there are no further questions, with that we conclude today's conference call. On behalf of All Time Plastics Limited, that concludes this conference. We thank you for joining us and you may now disconnect your lines. Thank you all of you.

Thank you.