Ladies and gentlemen, good day, and welcome to Kajaria Ceramics Q3 FY26 Earnings Conference Call, hosted by JM Financial Institutional Securities Limited. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star, then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Dharmesh Shah from JM Financial Institutional Securities Limited. Thank you, and over to you, sir.
Thanks, Danish. Hi, everyone. Good evening, and thanks for joining. We have with us senior management of Kajaria Ceramics, including Mr. Ashok Kajaria, Chairman, Mr. Chetan Kajaria, Vice Chairman, Mr. Rishi Kajaria, Managing Director, Mr. Sanjeev Agarwal, CFO, Kartik Kajaria, Head Adhesives Business, and Praveen Gupta, Vice President, Finance. I would request Ashokji to start with the initial remarks, post which we will have a Q&A session. Over to you, Ashokji.
Thank you, Dharmesh. Good evening, everyone. It gives me great pleasure to welcome you to the Quarter 3 FY26 earnings conference call of Kajaria Ceramics Limited. Joining me in this conference call is the senior management team of Kajaria Ceramics. In quarter 3 FY26, our consolidated revenue is flattish at INR 1,168 crores compared to the corresponding quarter last year, mainly due to no growth in tiles volume and absence of ply sales due to closure of that division. EBITDA margin in quarter 2 FY26 is 17.2%, +442 basis points against 12.78% in corresponding quarter last year. However, EBITDA dropped by 74 basis points sequentially as compared to quarter 2 FY26, mainly because of lower sales realization, as we gave some discount in order to reduce our SKUs.
In Gailpur plant, we have converted one unit with a capacity of 9.1 million square meters from ceramic floor tiles to GVT tiles to move towards value-added products as per prevailing market demand scenario. With Kajaria 2.0, our transformation journey has begun, and we remain confident about sustainable value creation going forward. Now, for this quarter segment by its financial performance. Tile segment remained flattish year-over-year at INR 1,030 crores in quarter three FY26 compared to INR 1,040 crores in quarter three FY25. Bathware segment registered a 9% growth in revenue, reaching 103 crores in quarter three FY26, compared to INR 95 crores in quarter three FY25. Revenue from adhesives grew to 35 crores in quarter three FY26, as compared to INR 20 crores in quarter three FY25.
EBITDA improved by, in quarter 3 FY26 to 17.20% as compared to 12.48% in quarter 3 FY25, +442 basis points, but dropped by 74 basis points sequentially as compared to quarter 2, mainly because of lower sales realization. Profit before tax from JV, exceptional items and tax for the quarter grew by 49% to INR 165 crores in quarter 3 FY26, as compared to INR 111 crores in quarter 3 FY25. PAT for the quarter grew by 13% to INR 88 crores in quarter 3 FY26, as compared to INR 78 crores in quarter 3 FY25, due to adjustments of exceptional items of INR 39.64 crores in quarter 3 FY26.
As of December 25, 2025, the working capital days increased by 8 days to 64 to 64 days, compared to 56 days on 30th of September 2025, mainly due to increase in receivables and decrease of other current liabilities. With this, I take the opportunity of thanking you for joining us today. Over to moderator for Q&A. Thank you.
Thank you so much, sir. Ladies and gentlemen, we'll begin with the question and answer session. Anyone who wishes to ask a question may press star and one on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we'll wait for a moment while the question queue assembles. Our first question comes from the line of Keshav Lahoti from HDFC Securities. Please go ahead.
Hi, thank you for the opportunity. First, can you give some sense how is the unification working on volume and margin front? So last call, we were hopeful to see some volume growth we'll see because of unification. So how are things moving? And secondly, how should now we see margin going forward? The realization cut, which you have taken, is it just for this quarter, or will we see this impact in next quarter also?
So in terms of volume, the market scenario was weak, and also, we did destocking of inventory at the dealer's end, so we could not grow in this quarter three. But going forward, we see positive shoots going forward for growth. So what's also happened was that, you know, we've been churning a lot of dealers. With all the unification happening, a lot of tail-end dealers are going out, some dealers are adding in.
So, you know, a lot of churning is happening, cross-selling is happening because of cross-selling between the dealers. You know, a lot of dealers were only probably working with one vertical, where we are giving them other tiles as well. So, you know, all that is happening, and also we liquidated a lot of our stock, which was a lot of SKUs are increased. So that happened last quarter, and because of that, we remained cautious. But, January, it looks little encouraging, and we should be okay from here.
Got it. Sir, on the margin side, how are things moving? Can you give some more, you know, more color, what sort of margin improvement we can see? Maybe it's, you know, a few quarter we have started the strategy.
Margin will remain between 17%-18%, somewhere in that band. We, that should happen.
So we are already there, so the juice out of unification on margin is already, you know, out. You mean to say no more levers are left. That is a fair assessment?
You know, even if the margin increases, we like to pump it back in the market in terms of advertisement, and we are now our focus will be more on increasing our sales and maintaining the margin.
Understood. Got it. And last question from my end. The ad spend for this quarter?
Ad spend for last quarter, October to December, you're asking?
Yes, correct.
We spent roughly INR 24 crore in quarter three. This is what, what-
Okay.
Yeah, we spent around INR 24 crores Q3.
Got it. Thank you.
A little lower than the Q3 of the previous year, but in the fourth quarter, we intend to increase it much higher than Q3.
Got it.
So overall, ad spend in the year would be lower than compared to the last year, because we have not done one annual dealer meet, we used to do in Thailand, so that has—we have saved around INR 5 crore. So, and we have negotiated well with our existing advertisement vendors, so. And we have ignored some areas where we were not finding some value. So optically, advertisement will look lower this year, but the value we have, we'll be getting more what we have got last year.
Thank you. The participant left the queue. Our next question comes from the line of Sneha Talreja from Nomura Capital. Please go ahead.
Hi, good evening, team. Thanks a lot for opportunity. Just couple of questions now. Now, firstly, on the last concall, you mentioned that, you know, your cost cutting measures are on, and we can see quarter-on-quarter margin improvement, and that was at the point where your margins were around 80-odd%. But if I heard you correctly now, you are saying that margins will remain under 17%-18%, and you will be passing on the incremental benefit to gain market share. Is that a change in strategy again?
Yeah, in this quarter, the margin is 17+, despite around 220 or 240% drop in the selling price. So our cost optimization journey is continued, and we are. Further, we have not stopped here. We have taken some low-hanging fruits, but we have identified some area where we'll be working in this quarter and the next year, the whole next year, the journey will continue. But and as we said, as Rishi Ji has said, that this quarter, we have, that there is a drop in selling price because of liquidation of some inventory. We have not many SKUs because of the multiple division, the SKUs numbers have gone very high. So we are in the process to reduce that.
So that is the reason, we gave some discount, so that's the reason for the lower realization. And for the lower sale, the reason is, as we explained, I'm just repeating it, because there was some destocking happened at the dealers level, because one dealer, suppose one dealer is a ceramic exclusive dealer, so we have to stop supplying ceramic to him. We are saying, "No, now we will not give ceramic. You have to take some GVT," some material is GVT. He has to... I mean, it takes time for a dealer to change his display because he has been displaying all GVT, so he has to display ceramic. Our ceramic dealer is displaying ceramic, he has to display GVT. So this, it's a big change, the big change in the corporate, so it will take some time.
So it is taking time, but we are very sure, after this correction, we will emerge as a very strong and a very, very, very process-driven company. We are not only that, we are, we are in the process of, improving, like, like the fraud happened in the company. So we are, we are revisiting. We have appointed a forensic auditor also, Ernst & Young, we have appointed. They have, they have yet to give the report, but prima facie the fraud amount, because I know this question will come again, so I'm answering. So the, the fraud amount is not beyond what we have stated earlier. So that is there, and they, the, we are doing our process audit, also process, all the processes we are getting it, audited.
And you will be happy to know that we have found all systems are working very strong, except that subsidiary, that was an unfortunate incident. But still, we are in the process of strengthening our system, further strengthening the system. We have changed all the signing power. Even the chairman cannot sign or even I cannot sign an INR 10,000 check, things like this.
Understood. That's excellent to know, sir. Sir, you also mentioned that, you know, you are changing SKU reduction. Could you speak more on it in terms of how, how much inventory levels could reduce because of that? Or properly, you know, what's the SKU reduction looking like, and can that have any impact on sales?
See, what was happening was, because as you said, the different vertical ceramic, GVT, PVT, you know, so there was a lot of commonality in the products. So that is what we are doing. We're reducing the SKUs, so the plants are more, you know, the plants more efficient, and because of that, this was the issue of this quarter only. So a lot of our work is done. We are emerging out much stronger in terms of our plants also, and in terms of efficiency of the stocks also.
Understood. And lastly, on the growth front, firstly, we've seen some amount of exports inch up during first six months, but like you mentioned, that, you know, you were doing all of these SKU reduction because of which you did not see growth. But what's your outlook now, probably for next quarter or next year in terms of demand growth? How are you seeing your volume shaping up in terms of tiles? That's one. Secondly, even in terms of bathware, you have hired a consultant, you mentioned that last quarter, we've seen around 9% growth this quarter. How is that shaping up, and what's the outlook for that segment also next year?
Sneha, in the first part, as we said, January is looking positive and encouraging, and we're seeing a positive growth going forward from quarter four onwards. The same will be both in tiles and sanitaryware as well. Even though that will have a much. In sanitaryware, we're definitely looking at a double-digit volume growth from here.
Anything on the tiles front, could we hear some numbers for the month of January or probably, you know, some guidance there in terms of volume?
It's still early to give you the numbers, but yes, January has been a little encouraging.
Understood. Thanks, team. All the best.
Thank you.
Thank you. Our next question comes from the line of Sonali from Jefferies. Please go ahead.
Sir, thank you for the opportunity. My first question is regarding Morbi. Could you help us understand how things are shaping up in terms of, are the exports back on track? Are they still creating a lot of pressure in terms of domestic market, pricing, et cetera?
Hi, Sonali. So Indian tile exports have experienced a 20% fall in value in FY 2025 to INR 16,000 crore due to increased freight rate and Red Sea crisis and the ongoing geopolitical disturbances. In quarter three, we exported around INR 4,000 crore from the country, approximately. So let's see if the trade deal with U.S. is positive, then it will result in increased upliftment of exports also. And Sonali, it's not actually getting any pressure in the domestic market, because, you know, a lot of these plants are closed in Morbi. If the sales don't happen, they close the factories. It is very difficult for them to sell in domestic market, off and on.
Okay, sir, I would just like a little bit about this point. You're saying that the factories in Morbi are closed right now? Since when and how much-
No, what I'm saying is, if the exports go down, a lot of factories in Morbi are only export-based.
Okay.
When the exports come down, they, they close down their factory because it is very difficult for them to liquidate that material in the domestic market.
Understood. Got it. So secondly, on, you know, gas pricing, you know, So what has been the gas pricing in Q3 for us across regions, if we get? And, how do you expect the gas pricing to go forward?
So Sonali, in quarter three, the gas pricing has been average of INR 37. North was INR 38, South was INR 38, and West was INR 37. Going forward also, we expect it to remain stable, but t here's an increase of INR 1, going forward in quarter four.
Got it. Sir, and just one last question: Would you like, at this point, to give any kind of volume guidance for FY 2027?
No, no guidance as such. We're just gonna do our job, and we'll work for the best.
Got it, sir. Thank you very much.
Thank you. Our next question comes from the line of Omkar Ghugardare from Shree Investments. Please go ahead.
Sir, just wanted to get your outlook on the growth front, since you have mentioned that, with 2.0, you will be going ahead with all the measures which you have already taken and all the measures you will be taking. Where does the growth factor comes in? Like, what kind of growth we can achieve in next 2-3 years? Double-digit, higher single-digit. Obviously, it depends on the market, but still, yeah.
As you said, this was a year of correction, and January has been positive. But yes, next year we are definitely looking at a good value growth.
I mean, can you just quantify it? Not exactly, but I mean, higher double digits, single digit, lower single digit.
It is, it is difficult to quantify. We do not want to quantify it, but we should. We are looking at it in a very positive way. We are getting a very positive feeling for the next year.
There will be some growth in the revenues, and margins will be in the similar range, 17%-18%.
Should be around that, because, as I said, cost optimization certainly will continue, and when there was an exceptional dip in this quarter.
It is not barely. We here in the next quarter, it may continue for in this quarter as well. But from the next year onward, we will be very light company in terms of SKUs, and our all dealers will be unified, which is still under process. So we are working on the system. Dealer will no honor how it is doing in an old fashion. So we are all doing it digitally. We are working a lot on digital thing. We are not only that, we are hiring good people. We are hiring at least 3-4 C-level people, which we will disclose when they join within next 1 or 2 months.
So it is we are strengthening the company all the way, and growth is, will be a result of the all improvement in the system. So when the systems are weak, not the system, but the, I mean, the process, the selling and the, the dealer, long tail of dealer, we have identified, white spaces we have identified. When we do the right thing, growth has to come automatically, and we are despite the number one company, we are market share is very less. So we are, even if the industry doesn't grow, which has happened in the past, the industry didn't grow, but we took the market share. And we are hopeful that next year onward, we will continue to, to repeat our old time and take the market share significantly.
Just wanted to know what exactly are the points you are focusing on this Kajaria 2.0, and how you are utilizing the cash balance in order to increase your growth ahead or to support the-
Answer the second question.
For the sales strategies, what we are doing is, as stated earlier, one, we are talking about cross-selling of the dealers. Earlier, dealers were working in only one vertical, now they are adding second and third product lines as well. Second, we are putting a major thrust on the architect and interior designer community. This we were not focusing much earlier on. So we are making a very solid team all over India, whose job is only to service these architects and interior designers, and you know, get our products approved. Government is another sector where we are working on as well, where we have a strong government team also to do this. All these initiatives is the work will happen.
Yeah, if you can answer how you are utilizing the cash balance?
I'm sorry to interrupt you, Mr. Omkar, but, there are a lot of background noise coming from your end.
Yeah, sir.
Sorry, no problem. So we have answered it many times. We are not going to do a big thing. We have the cash lying in the balance sheet, and we don't see major CapEx in next one or two years. So maybe if we, we'll continue to keep the cash and may increase the dividend, and all. I can't say at this moment, but we don't have any major CapEx in the future. We don't see any CapEx in next-
No major CapEx is planned right now.
Cash balance may increase going forward.
Okay. Thank you.
Thank you. Our next question come from the line of Utkarsh Nopany from Anand Rathi Institutional Equities. Please go ahead.
Yeah, hi, good evening, sir. So my first question is regarding the pricing scenario in the bathware portfolio. So just wanted to know, have we taken any price hike recently or plan to take any price hike in faucets and sanitaryware both? Sir, if you can specify how much price hike we are planning to take in both.
Yeah, we, the brass prices have really increased, and the entire industry has taken a price hike, and so have we. From nineteenth of January, we have taken a price hike in the faucet, faucet products to about 8%-12%. Sanitaryware, we plan to take a price hike probably from first of March.
Okay, and sir, how much your price hike we are planning to take for sanitaryware portfolio?
Not that much. There, the costs are not increased that much, but we'll take a call. We're still working on it. We're still working on a pricing strategy.
Okay. And, second, sir, on the tiles realization front, if we see, for our own manufacturing product, the tiles realization for us, it has fallen from INR 401 sq m in Q3 of FY 2023 to right now at INR 365 sq m. So we have seen a decline of close to around 9%. So if you can help me out, when we can start seeing improvement in our tiles realization, sir?
So work for that, we are doing a couple of things. As we said, even the architect, interior designer team, they will also help us sell in more value realization tiles. See, prices of tiles are not increasing in the market with, you know, so many players there. But the only way forward is that we have to sell more of value addition. So it's difficult to again calculate and tell you what is the price realization gonna be, but it should not go down from here. The way we are working, I think we'll maintain it and slowly it should go up.
We have converted one line of ceramic of 9 million,
Yes.
In plants, in GVT. So that should also-
Help in improving the realization. That will boost the bottom line further.
Okay. Sir, lastly, on the capital allocation part, we have already mentioned that we are not planning to do any major CapEx, but if I see our tiles own capacity and plus GVT capacity, has gone down from 92.5 million square meter to 82.5 million square meter over the past 18-month period, and we are operating at almost full capacity. Whereas if we see two unlisted players, Simpolo and Varmora, are almost doubling their capacity. So just wanted to know whether our conservative capital allocation is not likely to result into any loss of market share for us in the coming quarters time frame?
No, market share loss is not a situation at all, because there is enough capacity available at Morbi at very good competitive prices for us to outsource from them and, sell in the country. And we also have a very substantial production capacity built in, and, whenever we feel the need, we can always expand. So right now, we don't need to feel, feel the need to do it.
Okay.
Our capacity, that way, if you see with all our, we have a good capacity, 82.5 million. The rest of the players are still in a much lower capacity than us.
Okay, fine, sir. And sir, if you can just specify, what is the share of our institutional sales in December quarter versus last December quarter?
Roughly, our share is 70% in retail and 30% in projects, and this projects includes government projects also and private projects also with builders, basically.
Okay, that's it from my side, sir. Thanks a lot.
Thank you.
Thank you. Our next question comes from the line of Praveen Sahay from PL Capital. Please go ahead.
Yeah, thank you for the opportunity. So my question is, as you are mentioning, that lot of cross-selling, you know, you are emphasizing to your dealer. So, now, where we are in the churn within the dealers? Like, 100% of that has been achieved or 70%, where we are right now?
So, I would say about 70%-75% is already done. Rest will all happen in this quarter. That does not mean that we'll not grow in this quarter. We'll definitely grow as well in this quarter, and the remaining churning will also happen, so that next year, when we start the next financial year, we'll be in a very, very solid position.
Okay. Good to hear that. Second question is, as realization on sequential basis has been down, but your gross margin has improved. So, is there some cost related to the RM as well, some rationalization happened? What exactly happened there?
Yeah, as I said, the cost optimization journey continued. So, if the sales realization wouldn't have dropped, the margin would have been much higher.
No, sir.
This margin, 17-plus margin is, despite the drop of 250 or 240 basis points decline in the selling price, sales realization.
No, no. Sir, right you are. I am saying that, so your realization is down. Gross margin has improved actually sequentially. So gross margin is a function of realization and the RM. So is there some,
Yeah. So have you taken the gross margin? Have you taken the power and fuel also?
No, sorry, what have you taken? Yeah, yeah. Hello, sir, what you said, sir? Sorry.
You have to take the... Most of the analysts are not taking the power and fuel in the consideration.
No, no. Not power and fuel. Yeah.
Yeah. You have to include power and fuel in the stores and spare, then as compared to Q2, FY26 was around 36%, and even this quarter it is 36%. To be very precise, it was 37% in Q2, FY26, and in this quarter, it is 36%. For that, you have to take raw material, trading purchase and power and fuel and stores and spare.
Okay, sir. Okay, yeah. Thank you. Thank you for answering my questions.
Thank you. Our next question come from the line of Nilesh Sharma from Anand Rathi Institutional Equities. Please go ahead.
Sir, thank you so much for the opportunity. Sir, I just want to know, from a long-term industry structure perspective, when do you believe that Indian tile industry reaches an inflection point where organized players start gaining visible market share from Morbi or unorganized players?
He's saying, when do you think they'll end the long-term industry, long-term?
Sir, hello?
Just repeat your question for everybody. Yeah, please.
Yeah, yeah, yeah. Sir, my question is from a long-term industry perspective, when do you believe Indian tile industry reaches at the point when organized player gaining the visible or sustainable market share from Morbi or other or unorganized players, so that we, like Kajaria or Somany like players, will get the momentum?
See, two things are happening. One is GST has changed a lot of perspective. Earlier, as you all know, there was a lot of problem on various fronts. With GST, two things have happened: Everybody has become part of GST. Almost, you can say, 80% of the industry are in GST. Some here and there is still being done at Morbi by underpricing, as you all know. But, GST is a big game changer. With the process of time, what will happen is, the brand, the branded players today, you see, the prices of all housing is going up. People prefer good p- good, good products, as, as you all know. So with the change of time, the branded players will be more preferred compared to Morbi. Even in Morbi, some people are emerging as branded players, like, Varmora and Simpolo.
I think over a process of time, it's a time which will tell, but things will happen whereby the current share of the organized is about 40%, the share of Morbi is about 60%. I would say about 2 years time or 3 years time, it will be 50/50.
Okay, great, sir. Great. Thank you. Thank you, sir. Thank you so much.
Thank you. Next question is from Rahul Agarwal from Ikigai Asset Management. Please go ahead.
Yeah. Hi, very good evening, sir. So the first question on, you know, before the unification, I think the pricing, dealer schemes and incentives for ceramic, PVT, GVT, would have been different, right, for all three segments. Now, given the unification has happened, has that been aligned, and are the dealers now comfortable understanding the pricing and scheme structure?
Yes. So just to answer that question, with effect from first of January, we have aligned the pricing in ceramic, GVT, and PVT, made the discount structure very similar. So when a sales team goes to a dealer, it's very easy for him to explain what are the various, schemes and pricing structure of all the three verticals, and also aligned and set the policies to a great extent. It's all performance-based. So it has become simpler, post-unification rather than it was pre-unification.
So when I talk to dealers, what I hear is that the earlier person who was handling three segments, three products separately, because of different schemes and structures, it's still getting difficult for them to understand the new pricing and schemes, and hence they are still contacting the older sales managers, you know, to place orders. Any thoughts on this?
This just happened on first of January, so it will take, let's say, a month, two months time for them to absorb and get in the market also. And once it, it's, explained to all the dealers, it will all become very simple and transparent for them to understand the new, systems and the policies.
Okay, okay. Like, is it possible to, you know, do certain, you know, central meeting with all the dealers and explain them this? Or how does it work? How are you communicating this with your channel?
So we can't do a central meeting because every geography and zone is different. You cannot get 1,800 dealers on a call today, because the pricing and schemes are different for various zones, Northeast, Southwest. So it's all been told to the dealers by the people on the ground, and we've had some meetings with dealers in various pockets to explain them what the new scheme and policy is.
I understand that. Understand. Of course, I mean, it has to be more regional, driven kind of effort to communicate.
Correct.
Got it. So very clear on that. Secondly, you know, when I look at the production breakdown, it's 6 million square meters a quarter, is what you report as the joint venture production. Just wanted a clarification. These joint venture production are entities referred to which region? Is this largely Morbi and South Asian Ceramics?
Yes, the joint ventures are three in Morbi and one in South Asian Ceramics , one is South Asian Ceramics . Four plants are joint ventures.
Right. So over here are.
Sorry. One of the subsidiary, we have in the board meeting, we have taken, approval to acquire 10%-
But the joint ventures make it our wholly owned subsidiary.
So it will not be a joint venture, and even the joint venture, we have increased our equity significantly. So the ultimate aim is to acquire the balance and merge it with Kajaria Ceramics going forward.
Run it more efficiently.
Right. That was the precise question, that incrementally, this 6 million square meters per quarter or 24-25 for the full year, will actually move to own manufacturing and there will be no JV production breakdown available. Is that correct?
That's the endeavor as we go along. We'll take along. As we, as we said, that out of 4 JVs, this quarter, we have converted one JV into a—taken the permission to convert it to a wholly owned subsidiary. Like that, as we go along, but we still own majority of the shares of these JVs. 80+% in Morbi, all the JVs, we have almost 85%+, equity as, and we are running the plants. South Asia, we use about 60%.
60%. There also, they're only operating our plant.
Yes.
So it is. Earlier, it used to be JV, a real JV, because these people, our partners, used to run the plants. But over a period of the last couple of years, we have taken the management control.
Yes.
They are just shareholder, but we are running the plants.
Absolutely. I completely agree. That's what I was wondering, that since we own majority, and now the endeavor is to own majority and 100% ownership, it should all move to own manufacturing versus joint venture. So I agree.
And then Rahul, it's tax sufficient, efficient also. Now suppose some JV is having losses, so that is not getting any benefit under Kajaria entity tax . So once we merge everything, so it will be very, then there will be no related party transaction, no tax issues, so it will be very clean, system of working going forward.
Absolutely. Got it. Last question was on discounts. I mean, the discounts, was it region-specific or it was pan-India offering from your side, like the SKU reduction which happened?
SKU reduction was plant-wise, across the country.
Across all plants, across the country, and across the country, plant-wise and dealer-wise as well.
Yeah. Okay, got it. So there's nothing to do with abnormal inventory, right? Because when I look at September balance sheet, the inventory was fine. This is largely, what is this related to?
This is more of cleaning up of our own plants. We're making our plants more efficient. The plants, you know, what has happened is, the plants, the tiles which sell more, how we are making sure that their stock is more as compared to a lot of dead inventory and the plant, tiles which don't sell more. So that is the churning of the inventory, and that is also all the liquidation of the old stock which happened this quarter. And now one more thing, though we have not reduced the inventory at the company level, there is a marginal increase in the inventory at company level. But as, Rishi ji had explained, because of the de-stocking, that inventory at the dealer level has diminished, which will help us in future.
Got it. Got it. Very clear, sir. Thank you so much for answering the questions and all the best.
Thank you. Thank you.
Thank you. Ladies and gentlemen, anyone who wishes to ask a question may press star and one on their touchtone telephone. Ladies and gentlemen, anyone who wishes to ask a question may press star and one on their touchtone telephone. The next question comes from the line of Rahul Agarwal from Ikigai Asset Management. Please go ahead.
Sir, thank you for the follow-up. Just one question on the gas consumption. Overall, all inclusive in a year, how much of gas do our plants consume? About 200 million cubic meter. Is that correct?
No, no. Not 200 million. [crosstalk] Overall gas consumption, we'll have to come back. We can come back on this question with a definite, exact number.
If, if when you talk about fuel, it's a combination of gas and biomass also. Biomass and coal as well. And in North, we are using a combination of biomass and fuel. In Morbi, it's all about fuel and coal. And so we have to do plant-wise working and come back to you on the gas plant, how much gas we are using. Because currently, what is happening in Morbi, they have an option to use gas or propane. So exact details, we will come back and come back. But, Rahul, your question, why this question? You want to know, you have any apprehension about the gas price increase?
This is why you are asking this question or why you want... You are interested in knowing the quantity. I can tell you there is no impact of gas in this quarter, and because some people have some apprehension that because of increase in Henry Hub, there is a cost escalation. So that gas, I can clarify, that is 4%-5% over overall gas or in fuel consumption. And that was temporary hike in a few days back because of the extreme cold in Europe, which has gone down. And there will be no impact of any gas either in this quarter. There will be maybe marginal gap, let's say INR 50 lakh-INR 80 lakh in the next quarter.
So, beyond that, there will be no increase in the gas price as of, if I take the prices today.
Got it, Sanjeev Thank you so much.
Thank you. Our next question comes from the line of Bhavesh from IDBI Capital . Please go ahead.
Good.
Hello, Sir Bhavesh, you may please proceed ahead with the question.
Yeah. Hi, am I audible?
Yes, you are.
Yeah. Yeah, so can you speak about the export scenario, like last year it was around, like, say, INR 18,000 crore. So can you, go, can you give me more updates of export scenario, like what is the situation now and all the unorganized players, like, where, where are their supply going?
So FY 2024, the exports was INR 20,000 crore, and this year we are estimating it to be around INR 16,000 crore. So going forward, exports should be stable and growing only. And, once the US trade deal come, comes to light, then we'll know much more, what the US tariffs should be.
How much exports will be around for the nine months period? Any estimation?
12,000.
12,000 crore, and we are expecting it to be INR 16,000 crore for this year.
Correct. Approximately for the financial year.
Okay. Okay, I understand. Thank you.
Thank you.
Thank you. Ladies and gentlemen, anyone who wishes to ask a question may press star and one on their touchtone telephone. Next question comes from the line of Bharat, an individual investor. Please go ahead.
Hello. Thanks for the opportunity. I just wanted to know about bathware segment. How are we going forward with our distribution channel? Are we adding dealers, retailers? How is. Yeah, basically that.
So in bathware, we have a mix of both distributors and retailers. Some areas, distributors are working, some areas it's retailers are working. So there also a lot of this work is happening. We are going in, you know, so bathware, still it, it's taking a little time, but we are still going in, attracting all the dealers, getting there, making sure our products are displayed. So we are seeing some results, and hopefully, that should also change as we go along.
Can you quantify how much are our dealers, retailers?
How many, how many, no, we cannot quantify.
Okay. Thank you.
Thank you so much. Ladies and gentlemen, due to the time constraint, that was the last question for today. I would like to hand the conference over to the management for the closing comments. Thank you, and over to you, sir.
Thank you, Danish. I think it was a good interaction with the people who are there. I thank on behalf of Kajaria, on my own behalf, for people for asking questions, and thank you very much for today's celebrations. Thank you. Thank you.
Thank you.
Thank you so much. Ladies and gentlemen, on behalf of JM Financial Institutional Securities Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.