Good evening, ladies and gentlemen. I am Madhuri, moderator for the conference call. Welcome to Elin Electronics Limited Q1 FY27 conference call. As a reminder, all participants will be in listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star and then zero on your touchtone telephone. Please note that this conference is recorded. I would now like to hand over the floor to Mr. Devansh. Over to you, sir.

Thank you, ma'am. Good evening and a very warm welcome to everyone. On behalf of Sunidhi Securities, I welcome you all to Elin Electronics Limited Q1 FY27 earnings conference call. Today we have with us from the management represented by Mr. Kamal Sethia, Managing Director; Mr. Aakash Sethia, Head of Strategy; and Mr. Sanjeev Sethia, Director. We thank Elin Electronics Limited for giving us the opportunity to host the call. I would now like to hand over the floor to the management for their opening remarks, post which we will open the floor for Q&A. Thank you, and over to you, Aakash sir.

Thank you very much, Devansh. This is Sanjeev Sethia here. Good evening, ladies and gentlemen. I also have on call today our Managing Director, Mr. Kamal Sethia, and our Strategy Head, Mr. Aakash Sethia. Thank you for joining our earnings call for the first quarter of fiscal year March 2027. Coming to our overall performance for the quarter, operating revenues for the quarter was at Rupees 362.8 crores against Rupees 295.5 crores in the same period last year, up 23% on year-on-year basis. Our revenue growth was driven primarily by material led inflation across our portfolio with high single-digit to low double-digit volume growth across categories. Consolidated EBITDA for the quarter was Rupees 4 crores against Rupees 17.6 crores in the same period last year. The decline in EBITDA margin is primarily because of the following factors: sudden and massive increase in commodity prices primarily led by plastic resins due to crude oil prices because of the conflict in Middle East region. Prices of plastic rose up to 40 to 50% in selected categories. Similarly, metals, especially aluminum, saw a sharp up of around 40 to 45% during the quarter, although of course it has cooled off partially. Again, sharp depreciation of INR against USD, CNY affecting pricing of imports, especially electronics and some key components. We also had a large unanticipated minimum wage increase of almost 25% in Ghaziabad region of Uttar Pradesh where our largest factory is situated with effect from 1st April 2026. Change in product mix with decline in motor and select lighting products which were at higher value addition which got replaced with products at lower value add led to impact on gross margin and therefore EBITDA margins. Therefore, our EBITDA margin declined from 5.9% last quarter to 1.1% in the current quarter. Excluding extraordinary items, consolidated PAT loss for the quarter was Rupees 2.8 crore against a profit of Rupees 9.4 crores in the same period last year. Our liquidity position is at net cash of 6 crores at June 2026. Our capex spend in quarter one FY27 was at Rupees 7.5 crores. This was probably one of the most challenging quarters in my experience with both macro and micro disruptions affecting operation. In addition to the war and conflict led surge raw material prices, sharp depreciation of rupee, we also had a major fire in our Ghaziabad plant in the end of May 2026, which I would like you like to update you about. Firstly, there was no casualty or loss of life. Our assets are adequately insured. We have provided for loss arising from the fire amounting to Rupees 24.6 crores. It has had an impact on both production and working capital. Filing of claim is in the final stage and we expect to recover this loss from insurance within 4 to 5 months. Now I would like to share with you the performance of each of our business verticals. In lighting, fans and switch segment, the revenue of the quarter was Rupees 106 crores against Rupees 80 crores in the same quarter last year. This was driven by both fans category and new customer ramping up in the LED lighting category. LED lighting exclusive of flashlights increased from 39.5 crores last quarter to 51.4 crores in the current quarter. This was primarily driven by new customer ramping up capacity with us. While overall volumes have grown, change in the product mix has impacted us with downlights being replaced by battens. Further in the batten category, we could not increase customer prices despite substantial increase in input due to irrational competition keeping margins under severe pressure. With effect from August, we have decided to scale down battens till the pricing situation improves. Moving to our fans business now, our fans business grew from Rupees 27.8 crores to Rupees 43 crores this quarter. Our BLDC ceiling fan business has done well on a year-on-year basis with 75% growth. While margins were under pressure in Q1, they have come back to normal in Q2 with the quarterly pricing settlement kicking in. While Q2 is seasonally weak for fans, we expect this to pick up strongly again in Q3 and continue to do well in Q4 as well. Moving on to the home appliance segment, revenues increased from Rupees 68.6 crores last quarter to Rupees 110.6 crore this quarter. Kitchen and home care revenues increased by 70% year-on-year basis. This was on the back of growth of revenue from mixer grinder and irons. We have seen sustained volume growth across categories. Personal care segment was up 43% year-on-year driven by strong volume growth in hair dryers and sterilizers. In this entire category margin pressure has been severe as commodity price moved up sharply. This has been adjusted with effect from July using average of Q1 commodity prices. We would also like to point out that customer demand seems reasonably strong, evidenced by double-digit volume growth across the category. Moving on to the FHP motors segment, revenues declined from Rupees 61.4 crores to Rupees 45.6 crores in the current quarter. Given that this is an ODM product, we undertook price hikes which led to certain customers to defer orders. Further, please note this segment reflects only third-party sales, so increase in sales of mixer grinder, increase in motor thereof is captured via increase in sales of appliances. A quick update on the Bhiwadi factory. The plant is ready and will start commercial production in quarter two. We will start with OFR immediately and chimney in the next quarter. Heading out a revenue guidance of FY27 now, as discussed earlier, given that we prioritize margins and therefore will reduce the scale of our lighting operation, particularly battens, we estimate revenues to be in the range of Rupees 1375 crores for full year FY27. In the current times, it is difficult to forecast EBITDA, so allow us another quarter to update margin guidance. Bulk of the capex on Bhiwadi is now concluded with focus now on driving commercial production and utilization. With this, we conclude our opening remarks. We can now open the floor for Q&A. Thank you.

Thank you, sir. Ladies and gentlemen, we will now begin the question and answer session. If you have a question, please press star and one on your telephone keypad and wait for your turn to ask the question. If you would like to withdraw your request, you may do so by pressing star and one again. First question comes from Zaki Naseer, an individual investor. Please go ahead.

Sir, I think we've been through a tough quarter and looking forward to better times. Thankfully, there was no loss of life in the fire. So going ahead, sir, do you think we have been through the worst and we can only look for better times ahead? Margins being 1.1%, how do you see the year closing on EBITDA? Do you think aspirational 6 to 8% margin will be breached in the last quarter or the first quarter of next year? And how do you think the year will end on your product mix? These are my questions, sir. Thank you, sir, for your question.

Look, in terms of, I mean, I'll just take there were two or three questions, so I'll just take them step-by-step. I think the first set of questions was around margin guidance. So, A, you know, we've pointed out that we are still, you know, in uncertain times, although to your point, the worst seems to be behind us, but can't honestly say that for sure. So on margin guidance, we will, you know, perhaps, you know, like we outlined at the beginning of the call, we would like another quarter's time to update. But just to update you, you mentioned do you think we can achieve aspirational 6 to 8%? Looks unlikely as of now at least. Does that answer? On margin, we will just take it step-by-step. Yes, sir, but do you plan your product mix and strategy towards achieving that next year at least, sir? Look, we will definitely get better from here. Margin should definitely move up in Q2 itself from what we have achieved in Q1, but that said, Q1 is not a benchmark at all. It is such a low margin that I don't want to benchmark against Q1 saying that we will do better. Like I said, please allow us another quarter to update you all with some sense of finality in what we can achieve.

Okay. And sir, how are the macros looking for your products? I mean, how is the demand of tech and the market been in terms of, okay, lighting, I understand that they are bottom of the price. You cannot go below this because I don't think it's possible to manufacture below this. But for your small appliances and your other products, how do you foresee the demand scenario, sir?

So, in general, demand has been good across categories. We continue to see strong demand because of course currently we are in the season month as we gear up for Diwali. So demand is strong. Of course, our major issue has been the sharp increase in commodity prices and maybe inability to pass 100% of the increase to our customers which have affected the margins. You see, in terms of your point on battens and lighting, of course, I think prices are absolutely rock bottom and irrational prices are where we are operating in that category. It's a fairly large category. What we were able to do, and like we had mentioned in our earlier call, is that we will be able to add to customers in the lighting business to compensate for the loss of business because of the Liteanium JV with Signify and Indexing. And we were able to do that. We were able to drive substantial numbers in terms of batten and overall, but unfortunately, the market prices have not corrected to the same amount as, you know, the input costs have gone up. So that we still see is a major issue is because of maybe massive capacities at certain customers and they don't want, sorry, at certain suppliers where they don't want to lose orders, so they continue to operate at prices which seem very difficult for us. But if I leave aside batten, also in general, I mean, again, saying that fan demand is strong, our projections for next year is also pretty good. We're looking at good demand across appliances. We'll be adding some more categories in, let's say, in the coming month in terms of kettles, etc., chimneys also. Like I mentioned in the call, our Bhiwadi factory is also starting commercial production in this month with OFR. So overall demand has been good, but pricing has been a challenge.

And sir, the minimum wage, do you think it will reset the whole macros in your particular industry, sir? You would have to look at an aspiration in EBITDA of 4-5% instead of 6- 8%? Or do you think the pricing will be reset going down a few quarters?

See, the problem currently is that the minimum wage hike has happened of such a substantial hike has happened only in Haryana and Uttar Pradesh. It's not happened across India, right? So you always have a conversation with the customer where they mention that for them they have the option of sourcing from different factories in parts of India where there have been no such large minimum wage increases. So there is just that debate that is going on. It's been about whatever two and a half months or three months since the minimum wage has happened. Although they understand that our costs have gone up, they ask us to understand that they have the option of sourcing from other factories. So it's a bit of a tough situation for us. Obviously, hypothetical scenario for us, but if minimum wage is increased across India, then again, we are in a good position because then it's a level playing field. But as of now, where our largest factory is, is where the wage has been increased by a large amount. So we are pursuing all sorts of options, including discussion with customer, including some amount of say automation to reduce dependence on manual operations. But all these things, you will appreciate and understand, take time. Now, discussing price increase on this account with customer at a time when material itself is on fire is another challenge. So I'm just sharing the background and context so that you appreciate the situation that we are in.

And do you think the material scenario, supply chain, and prices look to be stabilizing anytime soon, sir?

We are seeing the price stabilize a bit, even though of course they are still much higher than let's say February when the war began, but there is some stabilization. So at least I think we'll be able to pass on the price increase in, I mean, part of it is already passed on and then as the price correction happens, so we will be able, we'll be in a position to have transferred the price increases to our customers. But that being said, we still, you know, not very sure how the Middle East thing plays out. As we speak, I think we see a spurt in copper prices. I think some today we're reading that Congo, which is probably 20% of the producer of copper, has put some restrictions on export of copper. So you're seeing copper go up. So the war is also not really behind us. We're not sure exactly how it's going to play out. So it'll be a little wait and watch, but in general, commodity prices, plastics, aluminum have stabilized, but still much higher than they were in Feb. I would also like to add, because now quite a large portion of our business depends on electronics also, especially with LED and now BLDC fans, if you follow the electronic prices, probably anywhere from 10 to 15% hike in the basic price of all electronic components, plus you have had the dollar appreciation, and currently if you look at the PCB, just the bare PCB prices, they're up from 40 to 60% because of scarcity of laminates in the country. So, I mean, it's one of the rare times where you see each and every commodity, whether it's plastics, aluminum, copper, PCB, paper, everything has seen a fairly substantial increase in the last 3-4 months. But to answer your question, stabilized a little bit, but still on a much higher than what they were in Feb. I think Kamal ji would like to add something.

Mr. Zaki, this is Kamal Sethia. I just want to add that now our focus is, as you've seen in our opening remarks, that most of the products what we make, they are seeing strong demand except motors. So going forward, the focus is going to be more on margins than only just increasing our revenue. Of course, revenue increase will be there, but focus on margin will also be strongly put so that at least we are out of this situation what we are going through right now. Thank you.

Thank you, sir. Wishing for best for the balance of the year, sir. Okay. Thank you so much.

Thank you, sir. The next question comes from Sahil Doshi from Systematix Wealth Managers. Please go ahead.

Hi. Good evening. Hope I'm audible. Yes, Sahil, you are. Yeah, perfect. Just firstly, to clarify, the guidance you all gave out was 1375 for this year? That's right. Yeah. This seems lower than, you know, if I just had to annualize the current quarter, which is typically seasonally weak, so and this is in addition to Bhiwadi plant coming in also. So what's really the thought behind this guidance and are we seeing some pressure in the second half? Is that what we should make of this?

No, no, we've just, so there was, so this is pertaining to the lighting business largely. So battens, which is almost 50 odd percent of the lighting business or slightly, slightly more even, we've just taken a conscious call because prices are at such a level where, you know, there are losses in manufacturing. So we don't want to increase turnover and, you know, pile on losses, you know, in terms of bottom line. So we've just taken a call to just slow the batten business down now. You know, we were doing anywhere between 10 or 12 lakh battens every month and at an average price of anywhere between 65, 65 odd rupees, that itself is 6 and a half or crore rupees a month of turnover that we are seeing may be difficult to immediately replace, right? So the loss of revenue that you are seeing is pertaining largely to the batten operation, but reducing this will actually increase our bottom line because currently, at least in the quarter gone past, this was a loss-making operation for us.

Understand. Okay, let me clarify this. Bhiwadi, since the plant is coming in, what is our outlook for Bhiwadi for this year?

Bhiwadi will be in the vicinity of anywhere between 70 to 90 crore rupees. The reason this is slightly probably earlier guided for somewhere in the 90 to 100 crore kind of range was because some machinery here is imported and because of the whole global situation, shipping of the machinery and getting it to our factory has just taken longer than what was anticipated. We will be starting commercial operations this month itself. So the total total revenue that we estimate we'll be able to achieve for Bhiwadi should be in the 70 to 90 crore kind of range.

So just taking on this point further, so, you know, if it's 6 crores if I remove lighting 75 odd crores, you'll have an accretion of 95-75 crores from Bhiwadi conservatively. Despite that, you know, is there, you know, are we seeing some kind of a slowdown because I think this is a quite conservative guidance or a tapered number. See, let's keep lighting out of the conversation, I understand. But the other parts of business which we've always been talking about, is there a problem? They're not getting price hike and we're willing to compromise there as well, or what is really the thought process behind this?

No, no, look, one of the other key reasons, and we've spelled that out also in our remarks at the beginning, is that we are seeing some pressure also in the motors business, right? You mentioned that, you know, because prices have increased so sharply, we had to take sharp price hikes. Now what has happened is that we were supplying to customers all across India. Now what happens is, you know, our factory is in the north, we're supplying to people in the south. Because of this sharp price hike, what people do is that they take a decision to repair and source locally in and around where their factory is for, you know, these few months until pricing stabilizes. So you know, we've seen certain customers, which is what we mentioned, who've deferred orders, who've not placed orders with us. So we've seen some impact on our, on our motors business also. So just in the quarter, it's kind of come down by almost 25%, 25% if I'm not mistaken. So bear that in mind as well, please.

Sure. And motors, could you quantify what's the kind of price hike or in terms of our raw material basket, and what's the kind of price hike which we require to maintain the same margin?

So we've already hiked prices to come to, you know, our desired margin. So the average price increase depending on category of motors has been from say 10-11% on the lower side, 15% on the higher side. So this kind of price increase within a quarter is kind of unprecedented.

Sure, understood. So, you know, if we, if I again just take lighting out of this entire equation, right, if you're able to pass on the prices in the other segments and also that you've with Bhiwadi coming in where essentially we are going towards, you know, higher ASP products, essentially directionally our margin should improve, right, assuming today lighting is loss- making? So we should see a fillip in that at least Q4 or so maybe exit rate we should be back to possibly 6-7% kind of margin, is that right understanding or, you know, that doesn't seem like possible in today's environment?

I'll just break that down into two and just give you a fair assessment. So in terms of there are, you know, two key aspects to this price inflation, right? So there is one which is material led and two largely which is labor led. And labor led when I say that is pertaining largely to operations in Ghaziabad, not the other factories as of now, thankfully. So material, most of the price increases have already happened. We've clarified that as well in our opening remarks at the start of 1st July, right? So in Q2, we've already repriced using the average of Q1 pricing, right? Now unless there is a further increase in material from here, so Q1 already material prices were fairly elevated, right? So using that average pricing is already done for Q2. So we've seen from whatever price hikes we've taken, Q2 we've taken further price hikes. So that material price increase has been passed on and has been recovered by and large. In terms of labor, that pricing has not yet been done, which is pertaining to our Ghaziabad operation. So there, if you look at a direct cost in terms of labor in Ghaziabad, just for the Ghaziabad factory, it is approximately 9% Ghaziabad labor divided by Ghaziabad turnover. That is 9% and that has been a 25% increase in that, so 2.25% kind of price increase that has not yet passed on and Ghaziabad itself is say approximately 65 to 70% of the company. So just giving you a perspective of what is not yet kind of passed on.

Understood. So this really helps. So, you know, this leads to a larger strategic question or a thought if we have any. We allude to the fact that there's strong demand, but we're not able to take a price hike, you know. So, and this is not only in lighting, but even other segments. So does it say our bargaining power with our customers is lesser and, you know, strategically, why are we doing some of these businesses where we're not making a decent ROC? So what's really a game plan because, you know, time and again, we're seeing this in different segments, you know, where there is some event, maybe even employee where customers are saying that we have other choices. So

Look, it's not that we've not been able to take price hikes, but let's say, just for example, on a particular product axis, the overall price hike is about let's say 10%. I mean, there is negotiation from the customer that we cannot give everything in one month, so it what you get is maybe sometimes 6 or 7%, the 3% carries gets carried on. So that's that's the challenge, I mean that and the hike has been so high, let's say anywhere between 10 to 12 or 13%, you don't get all of it in one go. So it's probably in the first month you've been able to get a let's say 7 or 8% and 2 or 3% gets, you know, absorbed by us. And so in some product categories, I mean in general, in all product categories, we've been able to get the price hike, but it has not been 100% of the hike which has happened. And secondly, what happen also happens is, let's say we do the most of the pricing happens at let's say an n-1 kind of product cost, so you take the prevailing price and when we start supplies, I mean last couple of months it's been that again the prices have gone up. So when you go again for a price hike, the same thing plays is being is playing out that again maybe the hike is let's say another 5 or 6% and then you get 2 or 3%, so we've not been able to pass 100% of the hike to most of the customers, it's been a partial recovery. And as the as the product prices are now stabilizing, we are now getting into a position where practically by let's say maybe somewhere placed in July or August, mean that means operative prices of September, that we will recover the price hikes which have happened. Labor hike is it's been passed on to a very minuscule customers because like Akash mentioned, what we are facing is that when you are facing a such a steep price hike and when we go with a price hike and when we go with a price hike and a labor hike both, the customer is like currently take the price hike of what we are able to pass on for the material at least because we are in no position to give you both the hikes. So that's what's been playing out for the last couple of months. See, most of our customers are very long-term customers, I mean we've been working with some of them for 30 years, 20 years, 10 years, 5 years, so it's not a transactional business. I mean it's more of a strategic partnership where, you know, a certain portion of the brunt has also been borne by us, you know, with the hope that things will improve in terms of this massive hike goes down and then we can go back to our normal operating situation. And if the prices stay stable, I think you'll see most of the price hikes have been passed on and at least that material thing is taken care of, and then we further have to push for the labor part. We are talking to customers. I mean, some we've been able to pass on, some we are still in the process. I mean, it might take a couple of more months, but we will be able to pass on some of the price hike which has happened on the labor front because it's an unprecedented hike. Normally, you know, it is at around a 7% kind of increase which happens on the labor basis. I mean, it's like almost 21 plus if you do plus plus, it's 25% hike which, you know, has been very difficult for us to absorb and with the same macroeconomic situation right now it's been a little difficult to pass on, but maybe in the next 3-4 months we are able to pass on a portion of this also on our customers. Doubt it will be 100%, but yes, maybe anywhere to 50 to 60% we should be able to convince our customers that that's the kind of price hike we will need. What we are hoping here is the material price stabilizes so it becomes little easy for us also to, you know, open that negotiation with our customer.

Sure. My question was more in the context where even Kamal ji mentioned where, you know, we will now possibly chase margins and returns over revenues. So is there a really rethink in that strategy and if you can elaborate more on that?

See, ultimately we have to get these prices from our customers. We cannot go on like that. It's a matter of time, like maybe being long-term customer and strategic partners, we have to balance our negotiation with them. But yeah, if if like as we mentioned earlier that where we are not able to sustain any margin, those products will reduce and we'll focus on other products and expand on other products where margins are better. So this year probably, you know, would be a period of consolidation, or maybe one quarter. So next quarter we hope that the raw material prices stabilizes and we are in a better negotiating position with the customer. Ultimately we have to go for it and improve our margin, that's the prime focus right now. Revenue growth is not a issue, but margin growth whatever the challenges are there, that we are in active day-to-day conversation with customers. We have got from most of them, and some of them we are still trying to get it. So I mean quarter-on-quarter there will you'll see an improvement there, I hope, yeah. Does that answer your question?

Perfect. Thank you so much. Just one final one. In terms of the fire, just, you know, you've called out that there's been some impact. So could you quantify if there is any impact in terms of production as well, and how confident are we in terms of this claim and other processes?

So in terms of A, B, we just want to highlight a couple of things. A, none of our customers had to stop production because of fire. We were able to, you know, get back on our feet and start supplying in most the affected product categories within 3 to 4 days. This was basically on account of having multiple lines, and within the factory, multiple locations for lighting and motors which were two categories which were impacted with the fire. We have lost some capacity in our induction motor line, but we still have adequate capacities to, you know, feed our existing demand. So there was just a slight delay in some motor supplies, you know, you can say about a week or so, but we were back on our feet. In lighting, we lost some material where the lead time was a little long, you know, certain imported material which was there. So that there was probably a delay of about 6 to 7 weeks in supplying some product categories. But since we have we had multiple locations, you know, most of the products the supplies remain unaffected. There were certain categories where we lost maybe supplies for about 6 weeks or so. But in terms of the demand, we are adequately insured, and there is no adverse feedback from now, so we are quite hopeful that we should be able to reclaim get the get the claim what's under process right now. Do you want to add? Just to clarify, the claim amount is larger than the provision because in our books we effectively only provide for the written down value in terms of say say machinery or building, so the claim amount will be slightly larger. Of course, that will also be spent in replacing that. So I mean there's no profit as such, but the claim amount is expected to be to be larger than the provision amount.

Perfect. Thank you so much for answering these questions. Thank you.

Thank you, sir. Dear participants, if you have any questions, please press star and one on your telephone keypad. The next question comes from Saket Kapoor from Kapoor & Co. Please go ahead.

Yes, sir. So for the Bhiwadi facility, Namaskar sir, hope I'm audible firstly. Yes, sir.

Yeah, so for the Bhiwadi facility, we have invested around 62 62 or 68 crore and we are expecting peak revenue of 90 crore or I just missed your number. Can you come again on the same?

No, sir, peak revenue is going to be in the range of 550 or 600 crores. What we were saying is that this year, that is financial year 2027, revenue will be in the range of 70 to 90 crores.

Okay. And sir, what would be our working capital requirement there and how do we manage all those aspects?

Working capital is going to be similar to the company average, which is roughly anywhere between, you know, 45 to 50 days on a net net basis.

Right, sir. Sir, when you look at players like OEM players like IFB, Eveready Industries, what kind of business can you give us some percentage on a whole on the on the entire top line that are to these these players, and I think so Eveready do lot of work in the lighting segment, and if you could just give some specifications about these two customers if you can share?

We do flashlights or torches for for Eveready, and we do, you know, the the front fascia of the front loading washing machine for IFB. So for IFB, you know, we do give or take about 100 crore rupees 80 to 100 crore rupees a year, and for Eveready, that amount would be in the range of 40 odd crores, 35 35-40 crore rupees a year.

Okay. You had a question on lighting with respect to Eveready? Yeah, yeah, correct, sir. I had. Yeah. So we are in talks with Eveready, in fact, we just had a visit from their sourcing people last week, and we're in active conversation with them to supply downlights and emergency lights. Very hopeful of converting this business as as we've been suppliers to them since 2007, so so quite hopeful in adding Eveready also in our lighting basket.

Okay. And sir, in the lighting space, we have the likes of Surya Roshni also as our in our customer profile? Currently we don't have Surya. Can we? We don't have, I mean. No, we don't have Surya, but just to give you an idea, not naming customers, till last year we were only with Signify and currently we have including Signify, we have 9 other customers. So just just ability to add customers in lighting business is can be seen that in the last 18 months since this Liteanium business, you know, has happened that we've been able to add customers in our, you know, our customer list. We've been able to increase the lighting business, but unfortunately, most of it has been batten where where the pricing unfortunately is not matched the hike which has happened. So that's like our MD said that we'll focus now more on, you know, margins than just the top line. So in within lighting, we are now looking to focus on, you know, product range where where the margins are better. So we have 8 or 9 customers in our basket, so at least it gives us the ability to maybe pivot out of battens and into other product categories where they are already, you know, selling and see how we can, you know, increase our business there.

So sir, even taking all these inclusive aspects into account, how how do you see demand and the uptick in volume shaping up? What is the response and what are things at ground state from your key customers in terms of their schedules and their demand understanding of the market, because that is where the that is what will lead to the utilization levels for us?

Look, demand has been reasonably okay, like we mentioned, for most product categories we've seen volume growth either in the high single digit or the low low double digit kind of kind of quantum. So demand, I mean, that is probably one of the the only silver linings right now in what is otherwise a pretty pretty dark cloud.

Correct, sir. But it is it is very it is correct on your part that now our focus has to be firstly to catering to our customers, the long-standing relationship with them and managing the vagaries of the market. But at the bottom of the thing lies your investors. If you take what the OFS pricing which the management or the or the lead managers worked out in 2022 and today the pricing and the profitability scenario which is shaping up even for the current year, what is there for your investor, the investors who participated also in your IPO back in 2022 at a pricing of 247 where a major portion of the issue was offer for sale. So from the very beginning to till date, investors have not made money by investing in Elin. So I would like to understand from the promoters what is there for us going ahead wherein we will also be earning from our investment that we have made in Elin, the listed entity? That is my basic question. I mean if you can just share any specific question, I'm happy to happy to answer. I didn't quite follow the question.

My question is that we are looking after our customers. We are looking after the other vagaries of the market. Our margins have depleted. So what is there in store for your investors, the investors who participated also in your IPO there back in 2022 at a pricing of 247 where a major portion of the issue was offer for sale. So from the very beginning to till date investors have not made money by investing in Elin. So I would like to understand from the promoters what is there for us going ahead wherein we will also be earning from our investment that we have made in Elin, the listed entity?

Unfortunately, yes, what you're saying is right that we are not able to drive up, some factor or the other has been, you know, affecting us. It is in our best interest to do that because the major, you know, the worst affected are our family only, so we have to our wealth is getting destructed by not able to perform. So we are trying our best to scale it up and bring it up. A lot of decisions has been taken to, you know, ramp ramp it up. It is taking more time than expected, but definitely yes, we are after it and somehow trying to improve on the situation going forward because the family is the worst affected. Of course, our shareholders are also very badly affected. So going forward, it is our endeavor that somehow we have to come out of this situation and move ahead with a positive note. That's what we feel that we have to do that.

You are actually correct on the submission, sir. But can you give us some roadmap or an understanding that this will nurture out or this is how the glide to profitability will be because whatever the conversation has been in the other participants, it is quite evident that things are not looking profitable at least for for us even in the near to medium term. So I stand corrected here. Kindly correct me on this front that even going ahead with the ramp up also, it would be bare minimum 2 to 3% that would percolate to the bottom line at best. So I please correct me on this aspect also.

No, definitely. What you are saying is absolutely correct and we have to, you know, work hard. A lot of decisions are being taken to bring it back on the expected lines. So of course, you have had so much patience with us. Would request a little bit more and probably you'll see results very soon on that, yeah.

Right, sir. And last point is on the classification of some promoter entities when we look at some names in the Sethia family under non-promoter. So what should we investors be looking at it? Is it just a mere classification or how does this 32% stake in the promoter category stand?

Look, the total family shareholding is approximately 53 or 54%. This is something that stands since IPO based on legal advice where certain non, you know, family members who are not who do not have an executive role in the company and who have other businesses were classified as non-promoter, and the the people who, you know, are wholly involved in Elin and solely focus on this were classified as promoter. This is the way it has been classified since the IPO, there has been no change, and I don't think in any case in the last whatever say 3 and a half years any promoter or even to my knowledge any non-promoter has sold any any substantial share at least.

Okay. And sir, we can always apply the creeping acquisition if we find the valuation meaningful. So any thought process from the management on acquiring some stake from the market since it's trading at a very steep discount to what you people sold to the market?

I mean, we will discuss internally and get back. Thank you, sir, and tough times, sir. Thank you and all the best to the team. Thank you.

Thank you, sir. There are no further questions. Now I hand over the floor to management for closing comments.

Thank you all for your time. Has been a tough period for us and we are doing all our best to come out of this situation. You have kept lot of patience in our company and I request you for more patience for some time, and probably yes, we are putting all our efforts and putting all our decisions making faster so that we are able to come out of the situation as soon as possible. Thank you so much for your time and your appreciate your patience. Thank you.

Thank you, sir. Ladies and gentlemen, this concludes your conference for today. Thank you for your participation and for using Doordarshan's conference call service. You may disconnect your lines now. Thank you and have a pleasant evening.