Ladies and gentlemen, good day and welcome to the Cello World Limited Q2 FY 2027 earnings conference call hosted by ICICI Securities Limited. This conference call may contain forward-looking statements about the company, which are based on the beliefs, opinions, and expectations of the company as on the date of this call. These statements do not guarantee the future performance of the company and may involve risks and uncertainties that are difficult to predict. 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 this 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. Manan Goyal from ICICI Securities Limited. Thank you, and over to you, Sir.
Thank you. Good morning, everyone. On behalf of ICICI Securities, we welcome you all to Q2 and FY 2027 result conference call of Cello World Limited. Today, we have with us senior management represented by Mr. Gaurav Rathod, Joint Managing Director, and Mr. Atul Parolia, CFO. Now, I hand over the call to the management for their initial comments on the quarterly performance. Then we will open the floor for Q&A session. Thank you, and over to you, Sir.
Thank you. Good morning and happy Diwali to everyone. Thank you for joining our Q2 financial year 2027 earnings call. With me today is our CFO, Mr. Atul Parolia, and our investor relations advisor, SGA. Our results and investor presentation are available on the stock exchange and on our website, and I hope you had a chance to go through them. For financial year 2027 quarter two, revenue stood at INR 633.2 crore, up 7.8% year-on-year and 20.2% sequentially. EBITDA came in at INR 135 crore, and PAT stood at INR 81.9 crore. For the first half of the financial year 2027, revenue grew 3.9% to INR 1,159.9 crore. These numbers should be read in the context of the festive calendar. Last year, the festive demand was included in Q2, while this year the festive season falls later, and a lot of the demand has shifted into Q3.
Q2 and H1 are therefore not strictly comparable with last year, and we believe nine months taken together will give a fairer picture, offering reasonable comparison. On margins, the cost environment remains challenging. The West Asia conflict and volatile crude prices have pushed up the cost of polymers, fuel and gas, and packaging. Higher natural gas prices have also added to our cost in glassware and the opalware operations. Gross margin stood at 50.2%, around 70 basis points higher year-on-year, but lower sequentially as these pressures built through the quarter. Our EBITDA margin was at 21.3% against 24% last year, reflecting higher operating costs. Competitive intensity and low-price imports from China continue to be a problem in the glassware operations, but things are getting better there.
Overall, price efficiencies have come in, product mix is becoming a lot better, but overall, due to the higher gas prices, margins are impacted. Our PAT margins for the quarter stood at about 12.9%. Consumerware revenue remained broadly flat at INR 417.2 crore during the quarter, reflecting the shift in festive demand to a later period and slower growth in the steel bottle business due to the ongoing ramp-up of operations. In steel bottles, demand remains healthy. The near-term priority is widening SKU availability and lifting capacity utilization. We are expanding the range to about 50 -55 SKUs, which should support a gradual ramp-up through Q3 and Q4, with margins improving as production efficiency starts coming in. In glassware, capacity utilization stood at around 60%, and customer responses continue to be encouraging.
Writing Instruments delivered strong growth of 69.5% year-on-year, led by a robust performance from the Cello brand. We continue to sharpen the portfolio with introducing products aligned with evolving customer preferences. The objective is profitable growth and a stronger market position in an increasingly competitive category. Moulded Furniture and Allied Products had a subdued quarter, with revenue of INR 78.8 crore, down 6.5% year-on-year. As we have consistently said, this is a crowded segment where our priority is to protect revenue and profitability rather than chase growth. Our online channel continues to gain share, with e-commerce and quick commerce together contributing 15.2% of revenue. We expect these channels to keep growing and to contribute meaningfully to the business. Quick commerce, in particular, gives us an additional route to the consumer and strengthens our brand visibility.
Looking ahead, the second half is seasonally our stronger period, and festive demand, part of which has moved from Q2 to Q3, should support performance. For financial year 2027, our priorities are clear: operational efficiency, portfolio rationalization, realigning our distribution strategy, deeper market penetration and working capital discipline. As demand normalizes and our strategic initiatives play through, we are confident of a steady improvement in performance. With that, I hand over to our CFO, Mr. Atul Parolia, to take you through the financial highlights. Thank you.
Thank you, Gaurav, and good morning to everyone. Let me take you through the financial performance for the quarter. The revenue from operations for Q2 FY 2027 stood at INR 633.2 crore, which is up by 7.8% from INR 587.4 crore in Q2 FY 2026, and 20.20% sequentially. Gross profit was INR 318.1 crore, with a gross margin of 50.2%, compared with the 49.5% in Q2 FY 2026. EBITDA stood at INR 135 crore, with an EBITDA margin of 21.3%. Profit after tax was INR 81.9 crore, with a PAT margin of 12.9%. For H1 FY 2027, revenue stood at INR 1,159.9 crore, up 3.9 year-on-year.
EBITDA was INR 252.2 crore at a margin of 21.7%, and PAT was INR 155.3 crore at a margin of 13.4%. In terms of revenue mix, Consumerware contributed 64.8% of the revenue, Writing Instruments 21.5%, and Moulded Furniture and Allied Products the remaining 13.7%. By channel, general trade contributed 70.3% of the revenue. The online channel share rose to 15.7%, with profitability in line with the general trade. Export accounted for 8.1%, and modern trade 5.9%. Segment gross margin stood at 53.4% for the Consumerware, and 52.6% for the Writing Instruments, and 39% for Moulded Furniture and Allied Products. With that, we can open the floor for questions.
Thank you. We will now begin with the question-and-answer session. Anyone who wishes to ask a question may press star and one on their touch-tone 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 will wait for a moment while the question queue assembles. The first question comes from the line of Vaidik Bafna with Monarch Networth Capital. Please go ahead.
Hi, Sir. Happy Diwali. Sir, I have two questions. Firstly, on the opalware segment, can you let us know what was the capacity utilization over there, and did we see any growth over there? If there is any growth, then by how much percent on a year-on-year basis? Similarly, for the glassware division as well, you mentioned that we are running at around 60% capacity utilization. Over there, did we see any growth on a year-on-year basis? If yes, then how much? When do we expect this to reach optimum utilization?
Great. Thank you, Vaidik . Basically, on the opalware front, we are at about 80% capacity. We saw a marginal growth year-on-year. We hope to exhaust this capacity by next year completely. We will still have a little capacity left this year. On the glassware front, we are still at 60% utilization, though our revenues have started increasing quarter-on-quarter. Overall, utilization will be at 60% till the stock lasts, and then we increase utilization as we finish the older inventory, which we have done to a very large extent in this quarter. Things are looking up there in terms of revenue.
Okay. Also on the steelware side, could you quantify as to how is the demand over there, how are we performing, and what is your outlook over that division as well?
So, I think there, of course, demand is much higher than supply. As we stabilize our operations and get more efficiencies in, we are able to sell whatever we produce. So, I think there, our priority is to ramp up production as soon as possible. It is a technically tough product line. It is not that easy, but we have been able to achieve good efficiency, but we need to achieve a lot more to meet the demand that is actually out there. So, we are ramping up. We are also installing two extra lines, which will come in the next quarter. So, I think that will also help us in meeting demand.
Okay. With respect to our raw material pricing scenario, we see that the crude oil prices are also coming down. So what is your outlook over it? In terms of numbers for our company, do we see any gross margin expansion in the coming quarters, looking at the softening of raw material prices?
Yeah, so raw material prices, the crude prices have just come down a little bit. We do not know. It is probably speculative. At this point, I cannot give you an answer as to what they will be. They are still, on the polymer side of things, they are still pretty high. The impact of lower crude oil, if this stays, will come down in the next one and a half months. So I think, yes, post that we should see some expansion in gross margins. Also, if crude prices come down, our gas prices will come down as well, which will help in the glassware business as well. So while in glassware, our overall realizations have gone up, but due to higher gas prices, that has been offset. So I think lower gas prices will definitely help expand gross margins there as well.
Okay, Sir. And Sir, in this quarter, did we take any price hikes?
No, price hike was taken last quarter, it was already taken. After that, there was no price hike that was possible this quarter.
Okay. Last thing is on the revenue guidance. So where do you see Cello reporting number by the end of this financial year? If we have to build a number for the next three years, what kind of growth are we targeting? Now see, in this year, the growth is coming from the Writing Instruments because of the acquisition of that Cello brand. Going forward, will we see our Consumerware division also firing?
I think the good part is that the sentiment has been very good in the last couple of months. As I said that, September is not something that you can take year-on-year because a lot of demand shifted in October as well. I think we are seeing a good momentum here in the Consumerware segment. So Consumerware will definitely fire overall because you also have to understand that steel is not where it used to be, right? It has de-grown because of supply, not demand. I think, when we are solving for supply, demand is already out there. I think we will see a good growth on the Consumerware side. Apart from that, Writing Instruments, of course, continues to grow. So that is something that will keep happening.
I think by the end of this year, we should be looking at about a 10% growth year-on-year.
Sir, for FY 2028 and 2029, can we see 17%-18% kind of growth?
Yeah, I hope the momentum stays. I think we have the capacity. If you talk about, say, opalware or glassware or steelware by then, we will have good capacities to grow fast. Plus we have the Cello brand in the writing instrument, which is also helping us. I think next year we can definitely think about those numbers. That is what we are working on, to deliver stronger year next year.
Okay, Sir. That is from my end. Thank you.
Thank you.
A reminder to all participants, you may press star and one to ask a question. The next question comes from the line of Manan Goyal with ICICI Securities. Please go ahead.
Hi, Sir. Thank you for the opportunity. I have two questions. First, Sir, on the in-house manufacturing of the steel bottles. By when are we expecting that whatever the sales which got impacted due to the non-availability of the import product will get compensated with the in-house manufacturing of the steel bottles? Second question is on the Moulded Furniture. We have been seeing for the previous couple of quarters, there has been a decline in number. If you can tell me what's the management strategy behind this and how are we seeing the outlook to improve the revenue in this segment? Thank you.
I think on the steel bottle side, by December, we should be at least getting the kind of product mix that we had previously. Not the entire bit, of course, but smaller portfolio of about 50, 55 products we'll have by December. I think that impact we'll see in the quarter after. By then, we should be pretty self-sufficient on the supply side of things. On the Moulded Furniture side, there have been two issues. One is very high polymer prices. Moulded Furniture, about 60% of the cost is actually just raw material. When the raw material goes and shoots that high, it becomes difficult for us to sell as much. The volumes do come down because it's a very big hike. It's not a small hike. It's a 30%, 40% hike.
That is why the volumes do come down in this particular cycle. Whenever the cycle is back down, you will see revenue slightly heading upwards.
Understood, Sir. Thank you so much.
A reminder to all participants, you may press star and one to ask a question. The next question comes from the line of Bhavin Rupani with Investec. Please go ahead.
Yeah. Hi, Sir. Thanks for the chance. I have several questions. First, on utilizations of opalware. You mentioned that in Q2, our utilization is somewhere around 80%. However, if I recall, last year it was somewhere around 85%-90%. Still we have seen growth in this category, so just trying to reconcile it.
No, it was never 85%. It was about 80%. We are pretty much similar to that percentage, though we have grown marginally over last year. It remains at about 80%. Utilization cannot be seen quarter on quarter. It will have to be seen as a whole year.
80% is the max that we can do, or is it that we can reach 85%, 90%?
No, no. We can reach 100% also. That is what we wish to do by the end of the year. We want to grow to about 85 odd percent, then next year finish the capacity.
Got it. Last year it was 80%, this year as well 80%. Any pressure that we are seeing in the market, demand is low or any competitive intensity?
We have taken a price rise, right? We have taken almost a 10% price rise. The volumes have stayed, but the price rise has given us the revenue hike.
Fair enough. Okay. Any expansion plans over here, opalware, because we will be consuming capacities next year.
Yes
Any chance of brownfield opportunity?
Correct. Opalware, we will take a view early next year. It takes about 12 - 14 months to put up a new facility. By early next year, about first quarter of 2027, we should be in a good state to see how the market is panning out, because there is a new player also that has come into this segment. We also have to see competitive intensity. If there is a feeling that things have been very good and we are heading in the right direction, then definitely we will be looking at a new facility.
Any sort of brownfield opportunity or will it be a greenfield one?
It will be brownfield. We already have a glass plant, so it will be close to the glass plant. A lot of the infrastructure and the facilities are already there. So it will be more of a brownfield project.
Fair enough. Sir, what I understand is glassware, so our plant was not running at optimum utilization. It was running at far lower utilization as compared to last quarter as well. Was it that we had planned for a shutdown in this category? If yes, when do we plan to restart it?
We have had a maintenance upgrade that is currently happening, which is just a month and a half. By December, we restart operations completely. Because there was some machinery that we were upgrading to get to a better product mix. It was only for that particular reason that we have taken a temporary halt in production. It is not a shutdown. In the meantime, we are also eating up all the inventory. As I had mentioned that the revenues have been ramping up well, which is a good sign going ahead. Also, the fuel prices were extremely high during this period, so we thought this is the best period to take this call.
Got it. Any restart cost that we expect?
This was a—
Temporarily down.
—this was cost we—
Sorry, any restart cost?
There is a cost, but it has been provided for, so it does not hit us. It has already been taken into account. Not a very major cost, it is very limited.
Got it. Would it be possible for you to specify what is our glassware inventory in INR term as well as tonnage term as of now, as on October or November?
I do not think on the call I can tell you those numbers, but it has come down drastically already. I think when we start again, we will be running at higher utilization.
Fair enough. Okay. Next, again on the last
Sorry to interrupt, Sir. I would request you to rejoin the queue. Thank you. The next question comes from the line of Hetvi Sanghvi with HS Investments. Please go ahead.
Thank you for the opportunity. I wanted to ask what was the glassware capacity utilization in Q2, and what revenue did glassware and opalware generate?
I think glassware was at 60%, which was previously also there. We have been eating up our inventories, which has been a good sign. And going forward, we will be working on higher utilization levels as we start the furnace.
Got it. Additionally, I wanted to check how much did these higher gas prices hurt the margins in glassware?
Higher gas prices have been pretty crazy because we were working at INR 53, INR 54 in SCM, and we had costs doubled. Gas is almost 30% of our cost. That had an impact on us, but we were able to offset it by slightly higher realizations. That is why we didn't see any losses, but we also did not see profits coming in. Going forward, if fuel prices come down, natural gas prices come down, we'll start seeing profitability coming back to the glassware segment.
Got it. Got it. That's it from my side. Thank you so much for the opportunity and Diwali greetings to you.
Thank you.
The next question comes from the line of Anu Parekh with Anand Rathi. Please go ahead.
Yeah. Hi, Sir. Sir, you indicated that gas prices constitute 30% of glassware cost, and we took a price hike to offset the impact. Can you let us know how much was the price hike taken in glassware?
Price hike was about 8%-10% in glassware, but it was not only the price hike, it was more of a product mix change that we were able to do during this quarter, which has also helped us. I think price hike is about 10%.
Sir, on the import of glassware, how is the import scenario now? Have we made any representation like the ADD which came on for borosilicate glassware? Have we done anything?
We've initiated the same in, not an ADD, but an MIP in glassware. We are waiting for how things pan out there. We've already done a representation. Hopefully, if that comes in, that will be very helpful for this segment.
And Sir, how has been the import pressure over the last quarter and in glassware?
Import pressure is still there, though a little higher shipping prices have touched during the quarter because from China, the shipping prices were pretty high. That increased the overall logistics cost. Basically, it was slightly better, but when these prices come down again, with our changed mix, we are hoping for a much better, less pressure from dumping.
And Sir, how has been the demand so far in like October and up till date, and how has been the channel inventory?
October has been a good month overall, and channel inventory is pretty low now because a lot of it got used up during the festive season. I think we are at a good place at this point in time.
Sir, last question. Sir, would you like to give any margin guidance for FY 2027?
I would refrain from giving you a margin guidance. It will definitely be better because this year we have been hit by three things. One is the steelware unit, where our margins have been lower because of inefficiencies, and where we are building in efficiencies, it takes a little time. Of course, the glassware also because of very high gas prices, and also Cello Pens, where the margins are a lot lower than Unomax, which will change significantly. I think it can be significantly higher from here. This is our lowest that we have gone, and it has been that kind of a year. But I think from now on, things are looking better, and things will be much better next year.
Thank you so much, Sir.
Thank you.
The next question comes from the line of Karan Gupta with ACMIIL. Please go ahead.
Yeah, hi. This is Karan Gupta from Asit C. Mehta Investments. My question, am I audible, right?
Yeah, yeah, you are. Please go ahead.
Yeah. My question is on the steel facility. What is the margin there, what is the utilization, and what is the CapEx and growth right now?
The margins are a lot lower than what it used to be because we are in the setting up phases and starting efficiency optimization phases. The utilization we are not able to get fully due to the inefficiency, not because we are not able to, we do not want to produce. It is more of an efficiency gain that we are going to get there. Actually, we are installing two machines more in this coming quarter. We are in the expanding phase there also to get more and more products in. As we increase the volumes that we produce, the margins should come back to where they were pre-production when we were trading.
Okay. On a couple of quarters, I think we were running at low utilization in the steel plant.
Sorry, sorry. I did not get your question.
Yeah, for a couple of quarters, I think we are running at low utilization on the steel plant.
Yeah, low utilization is not because of running it at low utilization. It is more from the efficiency point of view, that the efficiencies are building up, though it is of course improved from last quarter, but we are still not there. We are not still happy with the efficiency. We still need to work on it, but we have significantly made a lot of inroads. It is a technically difficult plant. It takes a little time, but things have been good. There were heating issues that have been there at the plant, but now we are getting through that phase.
Okay. In FY 2027, can we target from the glassware, opalware combined INR 550 crore something?
Yeah, close to that, yes.
Okay. Because it is around 30% something, right?
Okay. No.
Overall revenue.
25%.
Last year?
Yeah.
Okay, 25%.
25%-27%. It will depend on the end of the year.
Okay. Yeah. Thank you.
Participants, please press star and one to ask a question. The next question comes from the line of Dharmendra Vora with Imagine Bonds. Please go ahead.
Hey, good morning. Just wanted to understand, apart from the normal business improvement and improvement in margins by the softening of energy prices or other items, what is any definite strategy to improve the return on equity?
See, return on equity, basically the idea is that there is a lot of cash on the books, of course.
Yes.
A large part of our balance sheet is cash. I think we are also waiting for an opportunity, like we were able to do an acquisition in the Cello Pens business. We are waiting for an opportunity to have a good company that we can acquire, number one, or we can start something new. I think we have these in mind. It is just that things have been a little turbulent when it comes to a lot of things happening together, whether it is the glass thing which has been under pressure, and also the steel plant, which is new. I think once we settle with these two things, we are definitely looking for either an acquisition strategy or expanding into a new vertical. That is something that we have in mind.
That is why that cash is there on the books. I think once that happens, you will automatically see a better return on equity.
Would you restrict yourself to the related line of businesses, or are you open to any newer or fresh ideas in totally unrelated?
I think we will take a call depending on what the acquisition target is. We prefer to use our strength and do synergetic businesses because we already understand that business. But we are still open to newer ideas.
Okay. Thank you. Thank you so much.
Participants may press star and one to ask a question. The next question comes from the line of Bhavin Rupani with Investec. Please go ahead.
Hi, Sir. Thanks for the follow-up. Sir, continuing on glassware, was it EBITDA neutral this quarter?
Yes. We broke even, basically.
Okay. After reduction in export incentives in China, what sort of price hikes we have taken in glassware, apart from the input cost inflation pass-on that we did in Q1?
We have taken around a 10% hike in the glassware segment. That has helped a little. China has of course, the subsidy is gone away, but it has not completely Their prices have not gone down by that much. It has gone up marginally. More offset is due to freight cost, because freight costs have been high. That has helped us a little bit in the last few months.
Got it. Second question on stationery. Would it be possible for you to break up Unomax and Cello, and how should we understand margins of Cello versus Unomax? You mentioned Cello margins are lower, so is it that price positioning is an issue, or is it something related to production?
On the mix part, Unomax is almost at almost the same level as last year, but the growth has majorly come from Cello Pens, which is very encouraging. It is happening quickly, the ramp-up. The problem has been more from there were a lot of product lines that were running previously that were not making any money for the company. So we have kind of revamped that entire strategy and started to put in products that are margin accretive. I think it is substantially lower, the profit margin at this point of time, compared to Unomax, which is less than 1/3. But I think going forth, we will start seeing these margins coming back as our costs get optimized at the Cello facility as well.
Kind of okay. I have another question on steelware, if I can go ahead.
Sure.
Yep. First, what is our capacity right now? Incremental capacities that we are adding over here in terms of number of pieces. How should one understand utilization right now in Q2, and potential revenue and EBITDA margins from this category?
Sure. I think this category will ramp up in the next quarter, as I said. The capacity is almost about five million pieces out of this. We are currently at about two million. I think we need to still ramp up quite a bit. For that, we can always increase capacity by just adding machinery, as we are doing in next quarter. I think the potential, we still believe potential, but we are getting there. In terms of EBITDA margins, I think they will start stabilizing, and we will come to an exact EBITDA margin in the next couple of quarters. Currently, it is not in a steady state, so I cannot tell you an exact margin on that particular product line.
All right. So, five million pieces that you mentioned, is it including the two new lines that you are adding?
Yes. It is including two new lines.
Okay. Just to follow up on this, what was our peak revenue in steel bottles prior to BIS?
That is a number that I can't tell you on the call. Maybe at a later stage, I'll definitely, we can exchange.
Got it. Last question, Sir. Any CapEx guidance? On working capital, Sir, we were planning to rationalize something over here since last six months. Working capital is still over there at similar levels. How should one understand the trajectory going ahead?
Yeah.
Thanks.
I think working capital is at the same level, but I think what has happened is that overall there has been a growth as well. So we're trying to manage a little. Mainly the working capital has been in inventory because of glassware as well, because the utilizations are lower and there were higher stocks during the quarter. Otherwise, receivables, we have held it. We have not let it increase a lot, but we want to bring it down further, about five to seven days. Overall, I think this is something that we are constantly working on. We want to bring it down to about 10-15 days overall cycle, which we are striving for. It's just that sometimes the inventory has gone up, sometimes the receivable has gone up.
I think we're trying to manage both now, and you will see a fall in this over the next few quarters.
Got it. Any CapEx guidance for FY2027/2028?
CapEx, not much. We have done most of the CapEx. It will just be maintenance CapEx going forward.
Got it. Thank you so much for answering the questions, and happy Diwali to your team.
Happy Diwali. Thank you.
The next question comes from the line of Ashok Shah with Eklavya Invesco Family Office. Please go ahead. Ashok Shah, please go ahead with your question. We move to the next participant, that is Karan Gupta from ACMIIL. Please go ahead.
Yeah, hi. On the margin side, as you said, not refraining to give the margin guidance. But looking at the steel facility, steelware facility, after your maintenance and all these things, when you are going to ramp up the facility, how this margin will support the margin, overall margin? And right now, steel facilities, before your maintenance part, what was the revenue share in the consumer segment?
Well, steelware was quite a large proportion of our share, which had de-grown and has regrown. But overall, we are ramping up our facility. At our peak facility, we should look at very good margins coming back, and it will be very, very supportive to the margin. As I said, three things that have affected us, which is one is the steel segment, one is the gas prices, and one is Writing Instruments, Cello Pens. These three things coming back will be amazing for the margins. I think, and we are sure that this is going to happen soon.
In your consumer segment from last couple of quarters, is it right to assume your steel facility is something dragging down the growth? But the other categories in terms of plastics in the consumer segment, that is something doing well, or you can maybe rephrase question of consumer segment, which segments are dragging down the growth since from couple of quarters in this quarter?
Dragging down growth is, you are right, it is steelware only. The plastic houseware business, opalware business has not grown too much in this quarter. As I said, you will have to take three quarters into view, because a lot of the demand of festive season has shifted to October. So, when you see the next quarter, you will be able to compare it. Overall, steelware is something that has de-grown for us in this quarter as well, which is just bringing down the overall growth as well.
Okay. In the consumer segment, which category is growing good enough, and which are the categories? If you just share the product-wise, maybe, for example.
Glassware for us is growing well. Glassware for us is growing well, and this is the major category that is growing. For this quarter particularly. Next quarter, there will be, I think, different changes in that thing. Others have grown, but at a lesser pace. Steelware is down. This is a balance.
Okay. Just last one on the capacity side, as you said, five million capacity and you are running at two million, right?
Correct.
Right. How long after this maintenance and everything, how long will it take to get released?
Next couple of quarters we should reach that, to the full capacity of what we want to be at, which is about five million pieces.
Okay. And we will come up with some price hike, or we will focus on the volume first?
No price hike, because we have already taken a price hike here. There is no price hike, but the operational efficiencies will help bring down the costs.
Okay. In the Writing Instruments, how do you see the growth overall? Because some of the growth is still in overall market.
Yeah.
I think you are also introducing new products in that.
Yeah. No, I think overall for us it's been good and it'll keep growing well because the brand equity of Cello is very, very strong. We are at the lower end of the revenue mix right now. As this trended, things are getting better and better. We will keep seeing this growth every quarter.
Okay. Fair enough. Thank you.
Thank you.
Ladies and gentlemen, that was the last question for today. I would now like to hand the conference over to the management for the closing remarks.
Thanks. Thank you. With that, I conclude the call. If you have any further questions or queries, please contact our investor relations advisors, SGA. Thank you everyone for today and happy Diwali.
Thank you, Sir. Ladies and gentlemen, on behalf of ICICI Securities Limited, that concludes this conference call. Thank you for joining us, and you may now disconnect your lines.