BirlaNu Limited

6%

y if I may say to increase the price. But in Q4, we have already raised our selling price by about 6% and we then prepared ourselves for Q1 one in every aspect. You would have also noticed that invent

8%

oy Choudhary: So, I definitely see that this quarter has started well and we have raised another 8% to 10% selling prices in this quarter. We have been able to penetrate the market even better than

10%

udhary: So, I definitely see that this quarter has started well and we have raised another 8% to 10% selling prices in this quarter. We have been able to penetrate the market even better than the las

rs,

he market even better than the last year by virtue of our last leg connect and the number of dealers, distributors, retailers that we have been able to build to our team. I definitely see that situatio

22%

to stay market leaders on selling prices and HIL being the market leader in roofing with close to 22% market share will dominate this market in every way due to its brand and quality. We will try and

40%

olitical Russia, Ukraine crisis and I am sure all of you all are updated. Ukraine supplies almost 40% of Oak, Lamellas. Lamella is 3 and 4 millimeter thick Oak, and Ukraine is the supplier of 40% of t

30%

the global supplies of Lamellas. And Oak is an imperative part of engineered wood, which is almost 30% revenue of Parador. And 80% of Lamellas that Parador buys come from Ukraine. As you can see we hav

80%

las. And Oak is an imperative part of engineered wood, which is almost 30% revenue of Parador. And 80% of Lamellas that Parador buys come from Ukraine. As you can see we have sorted out one issue with

180 million

fabric is well constructed. Parador will grow and will double its sales. We are roughly about EUR 180 million turnover from EUR 140 million, which we were two years back, and we will ensure that we are movin

140 million

rador will grow and will double its sales. We are roughly about EUR 180 million turnover from EUR 140 million, which we were two years back, and we will ensure that we are moving towards EUR 350 million in th

350 million

m EUR 140 million, which we were two years back, and we will ensure that we are moving towards EUR 350 million in the next three to four years’ time. Moderator: Thank you. The next question is from the line

35%

construct our selling price direction very well. We have increased our selling price last year by 35% on wood products and 25% on the rest of the products. So, definitely, the selling price has gone u

“So with these 8% to 10% price hike, you think we will be in a position to pair our margins to where they were in the previous year, or would you reckon we have some ground to cover before the previous year’s margins are fully met?”

“And I had given comfort to all of you that I believe by Q4, we will be coming to some balance on this HDF / MDF concern that the earlier two quarters had, and we were absolutely there.”

“Parador will grow and will double its sales.”

“That will be my gauge on the markets, Shubham.”

“I think we are well poised for a decent margin this year itself, The exact numbers will be very difficult for me to pronounce here, sir, but I can only say that every adversity that we are facing on material costs, availability, and everything will be sorted out by this team.”

“Last year also Q1 was the bumper for us and this year also it will be so.”

“So this business will be INR 1,500 crore in the next three to four years.”

“Part of it will be from the organic growth levels from the existing machineries, and part of it will be new SKUs that we will continue to add.”

“So the answer to your question is non-availability of the right product in past allowed this market to go to steel and the future will be Fortune for us.”

“I can say the steel sheet market will be as big as the asbestos market for roofing.”

Alisha Mahawala

10

Moderator

9

Dhirup Roy Choudhary

4

Shivan Sarvaiya

4

Sandesh Barmecha

3

Amit Vora

3

Saurabh Patwa

3

Sagar Doshi

3

Ajox Frederick

3

Dhananjay Mishra

3

Baidik Sarkar

Dhirup Roy Choudhary: Thank you very much. I must say that the margins have been low last quarter, and were significantly pulled down due to several material cost pressures, or headwinds that we had, whether its the fiber costs that went up, cement fly ash, pulp, the freight costs had almost tripled and all of that had its due course. There is only a finite bit that we could have done in improving the selling prices in the market and Q4 is always a build-up for Q1, and therefore, there is less availability of opportunity if I may say to increase the price. But in Q4, we have already raised our selling price by about 6% and we then prepared ourselves for Q1 one in every aspect. You would have also noticed that inventory levels were kept higher, and one of the reasons for that was for roofing to be better prepared to meet what we would estimate to be another bumper Q1 for us because the rains have been very good last year, and we believe that we would have a very important year ahead, in

Dhirup Roy Choudhary

So, I definitely see that this quarter has started well and we have raised another 8% to 10% selling prices in this quarter. We have been able to penetrate the market even better than the last year by virtue of our last leg connect and the number of dealers, distributors, retailers that we have been able to build to our team. I definitely see that situation will continue to remain tough on material costs, but HIL's performance will definitely be better than the market. That's good to know, sir. So with these 8% to 10% price hike, you think we will be in a position to pair our margins to where they were in the previous year, or would you reckon we have some ground to cover before the previous year’s margins are fully met? I would go for your second guess. Yes, there is some room to cover and we will continue to strive doing that. You see, overall the country, the market prices are not the same, and while we are determined to stay market leaders on selling prices and HIL being the market

Baidik Sarkar

Sure. Thanks for that. The rebound in Parador has been very sharp. Again, great execution here, given the environment and the geopolitical environment. What's the scene now with regard to margin improvement? Would you reckon that gradient will continue given recent shock in energy prices? And if you could also please delve upon where and how we stand on the HDF sourcing challenge and how things are looking there today? Dhirup Roy Choudhary: Parador has been a very interesting and difficult story for us, and I have been extremely transparent all the time about all your businesses, and I will continue the same with Parador. So sometime middle of last year, we were facing, we didn’t have HDF / MDF, the prices were haywire, but more than that availability was not sufficient at all. And I have been keeping you fully informed, Mr. Sarkar, that we are trying our best first to remove one variable, which is the availability, and then we will go for the price. And I had given comfort to all of y

Shubham Agarwal

Thank you for the opportunity. Good evening to everyone. And firstly, I like to congratulate the entire team to post such a good number despite of the severe headwinds. Sir, my first question would be regarding Parador. So I would like to understand a bit more about the demand scenario because obviously, we know the cost of living has also gone up significantly in Europe because of the war. This being a discretionary product, obviously, it will face some demand challenges. So I wanted to understand what's the ground reality currently and what's your view regarding this? Dhirup Roy Choudhary: Thank you, Shubham. Thank you so much for asking these questions, and thank you for your appreciation. It means a lot. I must say that I am well aware that all the investors of HIL, all owners of HIL do not maybe have a direct approach to the European market, and therefore you may at times feel little helpless to understand the reality, but you have me, and your trust has always kept me alive. Let

Shubham Agarwal

So, what would be our current order backlog size around? Dhirup Roy Choudhary: So, Shubham, a very healthy order backlog that Parador always carried was about 16-17 million Euros. We do have 16-17 million Euros order backlog as we talk now. But the order backlog has gone up for engineered wood and is lower for the other products that is vinyl and laminate. That not a comfort area because engineered wood orders have a long-drawn delivery, whereas laminates and vinyl have a shorter delivery. So we need more of vinyl and laminate orders to now plug on and that's what the team is doing so that the current monthly revenues can be cracked. April in Parador has not been a very good month on revenue, while it has been a fantastic month for the rest of India. But we are hopeful that we will climb on and make good all of this, Shubham.

Mohit Khanna

Good evening, sir, and congratulations for registering for strong set of numbers. So I just wanted to understand that in the current scenario, what are your margin expectations for the first half '23 from where we are right now? First. And second question was that in the 17% revenue growth that we have posted on a overall basis in FY22, would you be able to give us a break-up in the in price and the volume growth terms? Dhirup Roy Choudhary: Well, your first question is on margins and how do I see this particular year proceeding, if I have heard you right. I think we are well poised for a decent margin this year itself, The exact numbers will be very difficult for me to pronounce here, sir, but I can only say that every adversity that we are facing on material costs, availability, and everything will be sorted out by this team. We will help this company to continue in its stream. That is point number one. The second question is on quantities versus prices for last year. Did I hear you