TEGANSE21 February 2022

Tega Industries Limited has informed the Exchange about Transcript of Analysts/Institutional Investor Meet/Con. Call

Tega Industries Limited

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21st February, 2022

BSE Limited Corporate Relationship Department Phiroze Jeejeebhoy Towers, Dalal Street, Mumbai- 400 001

National Stock Exchange of India Limited

The Listing Department

Exchange Plaza, Plot No. C/1, G Block, Bandra-Kurla Complex, Bandra (East), Mumbai - 400 051

Scrip Code: 543413

NSE Symbol: TEGA

Dear Sir/Madam,

Sub: Transcript of the Investor Conference Call

Pursuant to Regulation 30 read with Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, please find enclosed the Transcript of the Investor Conference Call of Tega Industries Limited (‘the Company’) held on 15th February, 2022 at 4:00 PM IST. The same can also be accessed on the Company’s website at www.tegaindustries.com.

Thanking You,

Yours faithfully,

For Tega Industries Limited

Manoj Kumar Agarwal Chief Financial Officer, Company Secretary & Compliance Officer

L25199WB1976PLC030532

“Tega Industries Limited Q3 & 9 Months FY22 Earnings Conference Call”

February 15, 2022

MANAGEMENT: MR. MEHUL MOHANKA –

MD & GROUP CEO MR. MANOJ KUMAR AGARWAL – CFO MR. SYED YAVER IMAM – DIRECTOR, GLOBAL PRODUCT GROUP

MODERATOR: MR. NACHIKET KALE –

ORIENT CAPITAL PVT LTD.

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Moderator:

Ladies and gentlemen, good day and welcome to the maiden earnings

Tega Industries Limited February 15, 2022

conference call of Tega Industries Limited organized by Orient Capital.

As a reminder, all participants' lines will be in the listen-only mode.

There will be an opportunity for you to ask questions after the

presentation concludes. Should you need assistance getting the

conference call, please signal an operator by pressing “*” then “0” on

your touch-tone phone. Please note that this conference is being

recorded. I now hand the conference over to Mr. Mehul Mohanka,

Managing Director and Group CEO. Thank you and over to you, sir.

Mehul Mohanka: Good afternoon and a warm welcome to all the participants. I am joined

today on this call by my colleagues Mr. Manoj Agarwal, the CFO of the

company and Mr. Yaver Imam who is the Director of Global Product

Group as well as Orient Capital, our investor relations partner.

It is our maiden earnings call today after the initial public offering. As

you all know, the company listed on the Indian bourses on the 13th of

December 2021. I hope by now all of you have had the opportunity to

go through our financial results and investor presentations which have

been uploaded on the stock exchanges as well as our company website.

Before we get to the Q3 performance, I would like to thank everyone for

supporting the IPO of the company. With your support and trust, the IPO

was oversubscribed by almost 219 times. Since this is the first call, there

are some of you with whom we will be interacting for the first time and

hence I would like to take this opportunity to quickly give you a brief

description about the company.

Tega commenced operations in 1978 in India with a foreign

collaboration with Skega of Sweden with an objective of providing

unique products and services for handling complex problems in material

handling and mineral processing. We are the leading manufacturer and

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Tega Industries Limited February 15, 2022

distributor of specialized critical-to-operate and recurring consumable

products catering to global mineral beneficiation, mining, and bulk

solids handling industries. We are the second largest producer of

polymer-based mill linings as well as one of the largest players

providing hybrid liners across semi-autogenous and ball mills. We have

close to 55 products in our portfolio spread across multiple geographies

globally. Today we operate 6 manufacturing plants across the world with

three in India and three in overseas locations. And we have

approximately 513 installations at different mine sites across the world

and as of financial year March 2021 in about 17 countries with 18 global

and 14 domestic sales offices across the world, and almost 85% of our

revenues is generated outside of the country.

From the macro industry data, mineral processing industry is set to grow

at a CAGR of 6.3% between 2020 and 2030. Infrastructure growth, shift

to EVs, RE electronics, volatility hedge, etc., are key demand drivers for

relevant metals. Declining ore grade enhancing demand

for

beneficiation products, decreasing ore grades requires a higher

throughput which has led to greater demand for larger-sized equipment

as well as high consumption of consumables. This is supported by the

fact that our business is immune from CapEx cycles and it caters to

aftermarket spend for customers which has recurring revenue in nature.

So, all our products tend to be an operational expense for our clients. We

drive continuous design innovation in all our products. As you all know,

we launched the DynaPrime range of our products in 2018. It's a

composite liner which is first of its kind in the entire world, and this has

helped us unlock new addressable markets for our company, which

includes larger-size mills which offers greater productivity gains and

cost savings for our customers as well as almost a 50% increase in life

compared to traditional steel linings. We have also embarked on

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Tega Industries Limited February 15, 2022

inorganic strategy in the past. We have successfully integrated more than

3 acquisitions across the world.

Some of the key growth drivers for us would be the demand for iron ore,

copper and other metals and minerals which will drive the growth for

mineral processing equipment industry in time to come. We all know

about the electric vehicle manufacturing which will be top demand

drivers for copper, aluminum, and other metals. EV as we know is now

something which is synonymous with not only automobiles but it is the

future of our country. Global gold and copper concentrate production

industry is likely to grow at a CAGR of 4.3% and 3.7% respectively

between 2020 and 2030. Gold and copper mill sites require superior

quality of consumables and have high beneficiation requirements.

Owing to ore grade depletion, miners are required to process more ore

to get the desired throughput which will boost the demand for mineral

processing equipment. Strong market position and entry barriers have

helped us maintain high margins over time with revenues from

operations growing at about 12.74% CAGR during FY19-21. Reported

operating EBITDA margin was at 23.7% in FY21. We have successfully

maintained these operating efficiency levels while completing and

integrating acquisitions, JVs, and strategic alliances including our

acquisitions in South Africa, Australia, and Chile. In several cases, our

relationships with key customers span for more than a decade and it's a

testimony to our business excellence. Our order book stands at about Rs.

278.1 crores as of December 31, 2021.

Our strategy going forward is to increase our penetration and market

share in North & South America, Australia, and South Africa. To grow

our market share and share of customers' wallet with improving market

penetration and cross selling opportunities in high-quality products and

solutions which have recurring demand and will lead to high repeat and

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Tega Industries Limited February 15, 2022

revenues. We will continue to leverage our in-house R&D capabilities

to grow our product offerings and capitalize on future trends. Our in-

house R&D team focuses on upgrading our existing products and

developing product variants on a continuous basis. We're going to

continue to expand our manufacturing capabilities with planned

expansions in our facilities in Dahej and in the Kolkata plant. We also

are going to be setting up a new manufacturing facility in Chile for

which, as you know, the board has already given us an in-principle

approval. We would also continue to enhance our operational

efficiencies and increase economies of scale to strengthen our

competitive position globally.

With that, I would now like to hand over to Mr. Manoj Agarwal, our

CFO, to take you through the financial performance of the company for

Q3 and 9 months under review.

Manoj Kumar Agarwal: A very good evening to all the participants. I hope all of you and

your families are in good health. I will share the highlights of our

performance for the quarter ending 31st December 2021 and following

which we will be happy to respond to your queries.

Quarter-to-quarter net revenue from operations is Rs. 257 crores for the

quarter ending December 31st 2021 against Rs. 214 crores previous year

same period delivering a growth of 20%. Operating EBITDA stood at

Rs. 51 crores in quarter 3 FY22 as against Rs. 47 crores in quarter 3

FY21, a jump of 8%. Operating EBITDA margin stood at 20% as against

22% same period last year. The major impact on EBITDA for the quarter

ending 31st December 2021 is due to higher input cost which we need

to transfer to the customer which will take another quarter to pass it on.

This is also impacted because of abnormally increased logistic cost

which will again take some quarters to pass it on. Profit after tax

increased to Rs. 33.5 crores for quarter 3 FY22 as against Rs. 31.5 crores

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Tega Industries Limited February 15, 2022

in quarter 3 FY21. It is to be noted that non-operating income has gone

down from Rs. 14 crores in December 2020 quarter to Rs. 4 crores in

December 2021 quarter.

Now we may open the floor for Q&A.

Moderator:

Ladies and gentlemen, we will now begin the question & answer session.

We will wait for a moment while the question queue assembles. The first

question is from Sandeep Tulsiyan from JM Financial. Please go ahead.

Sandeep Tulsiyan: The first question is pertaining to the revenue growth. If you can provide

some more color as to how the liner business has grown versus the non-

mill lining business, and within mill lining, how has the DynaPrime

product range progressed in terms of growth? And also, broadly, with

this 20% growth, if you can briefly break it up into how much would be

realization increase driven or rather how much realization increase you

would require to pass through the cost increases that you just mentioned

and what has already been taken?

Manoj Kumar Agarwal:

If I just try to break up the revenue, on a 20% growth, what we

see is about 10% is coming from the price and 10% coming from the

volume. On the mill liner side, the overall growth is about 20% wherein

the DynaPrime has grown at a rate of about 16% and the mill liner

without DynaPrime has grown about close to 30%. On the non-mill

liner, as of now, the growth is virtually flat. It's about 1%. And overall

growth is about 20% for the quarter December 2021.

Sandeep Tulsiyan: DynaPrime, the growth rate has come up to 16%. If you could highlight

what could be the major reasons for that?

Manoj Kumar Agarwal:

The growth has come mainly from the India side where we have

got some new orders from the North America region and we are also

able to expand ourselves in the western Africa region. Those 2 areas are

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giving the kind of upswing in the DynaPrime segment and that is coming

with the fact that we have been doing the trial in many other sites and

those trials are getting converted into commercial orders.

Sandeep Tulsiyan: On the non-mill lining side, you mentioned it is flat. Overall, if you

could help us understand the math because you mentioned mill lining

has grown 20%, overall revenue just 20%. So, non-mill lining revenues

should not be ideally so low for the average to be 20%, right?

Manoj Kumar Agarwal: What I said basically in the mill liner, DynaPrime has grown to

about 16%. The mill liner without DynaPrime has grown to about 25%

which gives me about 25% overall growth and then the non-mill is

coming about 1% and if I take the project in the non-mill liner because

as you know that we also have the project under the non-mill business

which are not recurring in nature unless the project got commissioned.

So, if I add the non-mill liner including project, the degrowth will be

about close to -6% to -7%. And if I remove the project business from the

non-mill liner, it is about flat. And mill liner has grown substantially

about 25 plus percent taking DynaPrime and mill both together. Maybe

I can share the breakup separately to you.

Sandeep Tulsiyan: Second part of the question was on what kind of cost pass-throughs are

you expecting over the next 2 quarters for both raw material and logistics

so that you are able to maintain the earlier level of margins around 20%

to 25%.

Manoj Kumar Agarwal: We are looking at 2 parts here. One is raw material. We are

confident that the raw material gap which is about 2.5% we will be able

to pass it on. As far as logistics is concerned, which we know that it is

abnormally high, it's more of that we will be able to pass through some

bit of it in the coming quarters but not all the logistics cost. So, maybe

one part is that how much we can pass it to the customers and how much

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the cost gets normalized in the coming quarters. But basis the current

situation what we see is that logistics cost will take another 2 to 3

quarters to come to a lower trajectory. There is a challenge to pass on

the entire gap of logistics cost to the customer, and if the logistics cost

doesn't come to downtrend, that gap may be there for that period.

Sandeep Tulsiyan: Last question on DynaPrime per se. Currently if you could give some

trajectory as to at how many sites the trials are on currently and based

on whatever your expectation is on the conversion rate, what is the

average revenue per site can you grow to, and what should be the total

growth in DynaPrime over the next 2 to 3 years?

Manoj Kumar Agarwal:

Sandeep, actually it is very difficult to give some kind of

forecasting in this call basically. So, we can't talk about that forecasting

per se but what we can say is that trials are running on in various sites

globally and that will take up the growth trajectory as far as DynaPrime

is concerned.

Moderator:

The next question is from the line of Abhishek Poddar from HDFC Asset

Management. Please go ahead.

Abhishek Poddar: Congratulations on a good quarter. Sir, is it possible to give the revenue

split for DynaPrime, what percentage of revenue is coming from

DynaPrime? Or any absolute number if you can throw?

Manoj Kumar Agarwal:

It is about 19% of the total revenue.

Abhishek Poddar: And you would expect that this 19% should grow faster so that

percentage will increase going forward in the next 2 to 3 years?

Manoj Kumar Agarwal:

I just said that we are expecting our growth trajectory from

DynaPrime obviously going forward. So, DynaPrime will take the

growth forward for the company.

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Abhishek Poddar: The raw material gap of 2.5%, this is the commodity price inflation that

you have not been able to pass on to the customers is what you are

referring to?

Manoj Kumar Agarwal: Yes, generally we tend to target about 60% raw material margin

in our business. What we are finding is that there is still a gap of about

2.5% to 3% and we believe that it will take another 2 quarters to pass it

on as I said to an earlier query. So, raw material cost we will be able to

pass it on. It may take 1 or 2 more quarters but there is a challenge in

logistics cost as of now.

Abhishek Poddar:

In the Other Expenses, is there any FOREX loss in this quarter?

Manoj Kumar Agarwal: Not as such.

Abhishek Poddar: So, trying to understand that how the FOREX has impacted your last

year's margin and this year's margin.

Manoj Kumar Agarwal:

This year, more or less, the FOREX impact is not there, which

was there last year. On the plus/minus side, it is more of getting nullified

in terms of impact on the P&L account. If I talk about the number, the

P&L account is coming close to hardly about net-net Rs. 13 lakhs.

Abhishek Poddar: For this quarter?

Manoj Kumar Agarwal:

For 9 months. For this quarter, it is about Rs. 78 lakhs.

Abhishek Poddar: Any comments on the demand outlook in the overseas market from the

mining industry?

Syed Yaver Imam: As far as the mining industry is concerned, in the last 10 months, copper

production has increased somewhere around by 4.1%. Gold's latest

figures are up to H1 of last year. There also, the growth has been 9%.

As far as copper and gold are concerned and as far as the production is

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Tega Industries Limited February 15, 2022

concerned, it is more or less following the projections that were given

earlier as far as the growth is concerned. The demand both from gold as

well as copper is on the rise.

Moderator:

The next question is from the line of Bharti Sawant from Mirae Asset.

Please go ahead.

Bharti Sawant:

What I wanted to understand is you mentioned that the overall growth

in revenues of the 20%, 10% is driven by pricing. So, what kind of RM

inflation are we seeing and is there a trend that the RM prices are kind

of moderating and we should see an improvement in the margins going

forward just on account of RM?

Manoj Kumar Agarwal: On the RM side, what we are seeing for the last 2-3 months is

that it is flattening down. We are not seeing any upswing which was

there in the quarter 3. This is a good news for us in terms of not going

to increase every time to the customers. From here, if it goes on a

northward trajectory, then obviously it may have some impact but as we

said that when talking about pass-through, pass-through works both the

sides. We can't talk about pass-through on the upward trend and not the

downward trend. And if the prices go down again drastically, again we

need to pass it on to the customers also. The ultimate objective of ours

is to stay at least at 60% RM margin and plus or minus 1% to 2%.

Bharti Sawant:

So, the key increase in the raw material cost could it have been more

like 14% to 15%? Because despite of taking a 10% price hike, we are

not able to pass on the RM cost. So, would it be that steep?

Manoj Kumar Agarwal: Yes, it is that sharp, even more than that also.

Bharti Sawant:

Also, in terms of this 10% pricing, can you just explain us what would

be the role of product mix change which will ride the realizations?

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Manoj Kumar Agarwal: One is the price as well as the product mix. Basically, product

mix got normalized in quarter 3 and quarter 4, may not be quarter 1 or

quarter 2. Again, price depends on the local landscape of the

competition, customer acceptance. There are a lot of levers to decide on

the price part, though it is a critical sphere. But again, it is being based

on the geography to geography and customer to customer.

Bharti Sawant:

Also, dwelling more on the expense front, we have seen a significant

increase in the first 9 months. We have seen a significant increase in the

employee cost as well as your Other Expenses unlike in the past 3 years

wherein both these costs were quite benign. Would you like to throw

some light as to where should these numbers stabilize, and given that we

are targeting growth of closer to 14 % to 15% CAGR, can we expect a

similar growth in the employee cost or should it remain benign?

Manoj Kumar Agarwal:

It will remain benign now because as we told earlier also that in

our business we have to build up our team a year and two in advance.

Last year also because of COVID period, the intent was to preserve cash

and not to spend money. So, we have not done hiring per se last year.

Most of the hiring has happened in this year itself so that we can take

the growth from the next couple of years. What we believe is that

whatever trajectory is going in today's employee cost, that will not be in

the same proportion going forward. It will be kind of benign going

forward as far as the employee cost is concerned.

Bharti Sawant:

Also, in terms of Other Expenses?

Manoj Kumar Agarwal: Other expenses as I said because there are 3-4 main items there

like I said logistic costs which is about Rs. 20 crores on 9 months to 9

months which is something very abnormal and then we had some repair

and maintenance which we have stopped last year, again because of

COVID and cost preservation which comes to about Rs. 5 crores and

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about logistic Rs. 20 crores and traveling also has been started which

was absolutely not there the previous year. So, that impact also is

coming. So, taking 4-5 bigger items, it's coming to that differences

basically and then the other volume and price growths are there in the

Other Expenses.

Bharti Sawant:

Last question from my side on the non-mill lining products. Given that

earlier we have highlighted that our strategy is to increase the wallet

share by increasing the products that we are supplying it to our mining

customers, but given the way non-mill lining products have been

performing like flattish number for the current quarter – I don't know

what that number is for the 9 months. What strategy are we adopting to

push more sales or to increase the contribution from the mill lining

products if you can just highlight that?

Syed Yaver Imam: The issue which we had discussed earlier also was on the increase the

wallet share on acquired customers. What we are looking in the short-

term strategy which will be effective for the next 2 to 3 years is that

DynaPrime the large customers that we are acquiring now, once we

stabilize the customers from going through the trials and making them

on board with regular supplies, thereafter we are looking at expanding

their product portfolio with the non-mill products and this is already in

operation in Chile where we will look at the non-mill growth. We will

find good growth over there. Going forward, once we acquire the larger

customers in rest of the world, this will happen. It's a question of 1 or 2

years lag with the acquisition of customers for DynaPrime where the

following will be the rest of the products to gain market share and wallet

share there.

Bharti Sawant:

Also, while acquiring customers for DynaPrime, what strategy do we

adopt? Is it more led by pricing or do we still earn margins during the

trial period?

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Syed Yaver Imam: We earn margin on trial. Even in the trial period orders with the

Tega Industries Limited February 15, 2022

DynaPrime, we are close to somewhere around gross margin of 55% to

58%. It is not too far off. The basic idea is that we are changing from

steel liner. We go in with the value proposition and look at it. So, the

changes which will come in once we go into a full application at site, we

will bring it back to around 60% gross margin. That is the range in which

we are playing with DynaPrime as far as the product lines are concerned.

Moderator:

Our next question is from the line of Ashlesha, an individual investor.

Please go ahead.

Ashlesha:

Congratulations on getting listed. I went through your presentation

which helped me get an idea of your business model and I appreciate the

company's rich legacy. I have 2 questions. First, what is the expected

timeline on expansion in Chile? My second question is, what services

do we provide in life cycle management?

Mehul Mohanka:

The timeline for the plant to be set up in Chile is within 24 months. The

internal estimate is to try and aim for 18 months, but the attempt is to do

it within 24 months. When we talk about life cycle management, it is to

do with providing services to the customers which include monitoring

the performance of the product using laser scanning technology,

providing constant performance reports to customers, aiding in

installation of our products, and also providing customers with

opportunities to save on downtime of the equipment by improving the

speed with which the products are installed. Those are part of our life

cycle management services.

Moderator:

We will move to our next question which is from the line of Abhishek

Jain from Arihant Capital. Please go ahead.

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Abhishek Jain:

First, the DynaPrime, if you can explain in detail how big can be the

opportunity there right now and what is our product differentiation?

Second, as an earlier participant has discussed, what can be the margins

we should take for the next 2-3 years down the line from the take

margin? Third, if you can throw light on the Chile business right now;

after the new capacity, what kind of revenues we are looking at?

Syed Yaver Imam: As far as the DynaPrime opportunity is concerned, it is close to around

$900 million, and globally when we are looking at this, the growth in

the DynaPrime will come from this $900 million section.

The margin which is there, as I have said before also, it is more or less

the same gross margin we are looking at and our aim is to be at 60%

gross margin as far as DynaPrime is concerned also.

The Chile project that is being set up, as of now, we are running close to

capacity in Chile for the next year. The idea is that the growth

opportunity that has been put in and the trials that are working in Chile

now, which will get into operational and commercial business; by that

time, we should get the plant up and ready. The plant that we are looking

at, we will be doubling our capacity in Chile and that is what we plan to

see to get the growth from there.

Abhishek Jain:

What is our current capacity in Chile right now? How much revenue we

are doing in Chile at this point of time, sir?

Manoj Kumar Agarwal: Current capacity I will break in 2 parts. On DynaPrime side, we

are close to about $30 million and this product accounts to $10 million.

So, as of today, we can go up to $40 million in full scale.

Abhishek Jain:

After this expansion, we will be reaching around $80 million?

Manoj Kumar Agarwal: Yes, close to that.

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Moderator:

The next question is from the line of Nitin Arora from Axis Mutual

Fund. Please go ahead.

Nitin Arora:

Is it possible to share the 9 months' growth number of DynaPrime?

Manoj Kumar Agarwal:

I think what I shared earlier, it is 9 months' growth only, about

16%.

Nitin Arora:

What then in this quarter the DynaPrime growth is? What is the growth

in Q3?

Manoj Kumar Agarwal: Q3 growth number I don't have. I will come back to you

separately on that.

Nitin Arora:

The question is, sir, it's very contradictory statement from 2 angles. One,

you are saying the demand is very good and at the time of the IPO also,

you said DynaPrime is going to grow much ahead of the company's

growth. The question I want to understand is, if the 9 months' figure is

16% and I am assuming the inflation should be about 10%, it is a very

low single digit growth its sum up in the 9 months assuming we don't

have the numbers for Q3. What has led to this low growth? number 1)

the demand is so strong and you are trying to penetrate in decline, is it….

Syed Yaver Imam: Right from the beginning, even in the road show which we were there,

we have been saying that to look at our figures on a year-on-year basis.

And if you remember, I told you most of the large mining corporations

have their year on year on the calendar year. So, for us, especially for

DynaPrime and all would be big months in the next quarter. Overall,

when you look at it, we have to look at what is the growth in the order

booking and then at the same time the pending order as well as what will

happen in the next quarter. So, relevance of year-to-year growth would

be more appropriate than to look at quarter to quarter or 3 quarters

because DynaPrime mainly and the larger mills with life of 6 months

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and 12 months are in that period where it will be on the 4th quarter for

us or 1st quarter of the calendar year. When we look at that, I think that

is the period we should look at it on the year-to-year growth. What will

happen at the end of the quarter, I think, the figures would be more

relevant to see.

Nitin Arora:

First of all, I asked for a number which you only gave me, which is 16%

growth. I never compared quarter on quarter. It is a good thing you told

me Q4 is more of a heavy quarter. So, if Q4 and you have a strong order

backlog let us say for the DynaPrime, is it safe to assume a 40% growth

what you stated at the time of the IPO 35% to 40% growth for the

DynaPrime this year?

Syed Yaver Imam: At the time of the IPO also, we were looking at 25% to 28% growth as

far as DynaPrime is concerned, and from whatever the situation is today,

we are on track on that.

Nitin Arora:

With respect to the cost arbitrage, you are already saying that 10% kind

of a cost increase and we have passed on to the customers. In the non

DynaPrime line business, if you can throw some light with respect to the

pressure? Is there some pressure on the market share because if you go

beyond a certain price point, the local player gets a little edge? Let us

say not an edge, let us say cost is increasing for everyone, but if someone

wants to get higher market share, they can actually do it because of the

supply chain. How are you tackling that? In the DynaPrime, the cost

arbitrage between the steel liner and the DynaPrime has widened a lot

in this commodity scenario?

Syed Yaver Imam: Steel prices have been going up also. It is not that the price of DynaPrime

is going up. But there are 2 parts of this when you are looking at it. When

we look at passing onto the pricing, we are talking about 75% of our

spare business where we are passing on the price. The new business is a

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combination of what the customer is spending, what the competitive

situation is, how we are getting the thing, those are the questions. When

we look at most of the DynaPrime where we have the growth coming at

35% to 40% on that, then we look at the balance 75% where the price

increases are being passed on to the customer. Where the steel is

concerned, yes, steel prices have gone up and the margins we will look

at growing according to what the steel prices are going up is about 60%

margin. The problem which you have rightly pointed out is the question

in the non-DynaPrime mills, especially where the logistic costs become

so high that the local supplier would become…. For us, this is the

challenge only in 2 territories because we have already covered Latin

America, Africa, Australia, and India through this thing. The main

geography which would be getting challenging would be USA and

Canada. USA and Canada, the margins on the existing business are such

that we have to make a call on where to pass on what portion of this

thing to pass on to the customer. We are taking a call that the logistic

cost somewhere in the near future would normalize. In some of the

cases, we take a call to hold the customer and the logistic cost then gets

passed on to a certain percentage, maybe not fully. Those are the calls

which we take and which we do it overall to see that our margin on the

gross level does not get affected. And as of today, the major challenge

would be only in these 2 territories because the local manufacturers in

Tega Industries Limited has informed the Exchange about Transcript of Analysts/Institutional Investor Meet/Con. Call

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