Ladies and gentlemen, good day and welcome to Finolex Industries' Q1 FY '26 Earnings Conference Call hosted by ICICI Securities. 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 touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Arun Baid from ICICI Securities. Thank you, and over to you, sir.
Good afternoon, everyone. On behalf of ICICI Securities, I welcome you all to the Q1 FY '26 Earnings Conference Call of Finolex Industries. From the management side, we have Mr. Saurabh Dhanorkar, Managing Director, and Mr. Chandan Verma, CFO. Now I hand the call over to Mr. Dhanorkar. Over to you, sir.
Thanks, Arun. Good afternoon, ladies and gentlemen. Welcome to the investor conference call for Q1 FY 2025 earnings. We thank you all for your continued support and interest in Finolex Industries. FIL has registered a modest growth in Pipes & Fittings volume in spite of overall weak demand scenarios during the quarter. The operating performance of the company is muted, mainly due to weaker realizations on account of volatility in PVC prices. The company's endeavor to grow in the non-agri segment is ongoing. Let me now take you through some of the performance indicators. Pipes & Fittings volume increased by 2% to 92,129 metric tons against 90,620 metric tons in Q1 FY 2025. This was in spite of a weak demand scenario overall. Total income from operations was INR 1,043 crore, down 9% against INR 1,140 crore in Q1 FY 2025 due to weaker sales realizations.
EBITDA stood at INR 94 crore against INR 207 crore in Q1 FY 2025. PAT stood at INR 97 crore against PAT of INR 505 crore, which was including an exceptional gain of INR 339 crore in Q1 FY 2025. From the current year, we have decided to evaluate the company's performance as a single entity rather than splitting the performance between the two segments, PVC resin and Pipes & F ittings, as done earlier. This is because PVC resin is no more being sold in the market, and it's almost entirely for captive consumption. As a management, we do not really look at the PVC resin segment as a separate business. The company continues to have a strong balance sheet with a net cash surplus of around INR 2,533 crore as of June 30, 2025, compared to INR 2,401 crore in the corresponding previous year's quarter.
On a personal level, as many of you are aware, I stepped in from my role as a Non-Executive Director on the board to the role of Managing Director in November 2024. This was meant to be a transitory position until we find a new MD after Mr. Ajit Venkatar aman stepped out. I am pleased to share that our board of directors has now approved a worthy successor for this role, and he will be joining soon. Of course, I will continue to be associated with the company in an advisory capacity, and before I formally hand over to the new incumbent, I will, and even after that, I will be continuing to mentor him and be involved in the strategic decisions of the company. Let me now leave the floor open for questions. I have with me Mr. Chandan Verma, our CFO, who will take the questions regarding the numbers. Thank you.
Thank you very much. We will now begin with the question and answer session. Anyone who wishes to ask a question may press star and one on their touchstone phone. 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 Sravan S. from Dolat Capital. Please go ahead.
Hi, sir. Thank you, sir. A couple of questions. First, on the volume front, obviously, this quarter was very, very muted, 1.7% kind of a growth. I just wanted to understand, last time I think we have spoken that April and May was very good, and once the readiness started at the end of May or start of June, then only demand got impacted. I am just wondering, was June so bad that the top of the quarter we just had only 1.7% growth, and now how one can look at have this particularly July until now August, have we seen the improvement in demand? I think last time we were talking about kind of a double-digit volume growth for the full year. How one can look at?
As you rightly said, because of the early onset of monsoon towards, I think, 22nd May or something, then onwards the demand came down, and June yet was very subdued as compared to the June in the corresponding quarter last year. Overall, to answer the second part of your question, July, we have picked up despite the monsoon continuing. As we talk today, we are at a high single-digit growth. It's not as low as the first quarter. We have picked up in July. We are, as a policy, though we don't believe in giving guidance of accurate numbers, but yes, this trend of at least a high single digit will definitely continue. Hopefully, we will cross the double-digit growth.
For that, two, three aspects. First is in terms of this 1.7%, how was our agri, non-agri set, and if you also can help us in terms of the growth for agri, non-agri in this quarter?
In terms of agri and non-agri, both have in tandem, agri has also grown around roughly around 2%, and non-agri has also roughly grown around 2%. Both have both agri and non-agri, more or less, we have the similar growth numbers. In terms of volume split, generally, we don't give. It's roughly around 70/30 ratio that we are having between agri, non-agri between earning quarter also, and the same ratio was during the corresponding quarter of the last year as well.
Okay. Got it. Now, sir, in terms of margins, so pricing a bit present despite our pricing was, if I look at QOQ, was 1.2% down realization. If I look at FY 2025, it is 4.9%. Let's say even if we are seeing a high single-digit growth for this year, how one can look at, on the pricing front, because ultimately, how one can look at the revenue for this year?
Revenue, Sravan, it all depends upon how the prices of PVC is going to remain over the period to come, right? We have been seeing the declining trend of PVC prices from the last quarter until the current quarter. This will look more or less the price guidance will come how it is going to remain over the period of time. PVC prices.
PVC prices. Yeah, because now even the ADD , whenever it will come, and BIS has also been postponed to December. In that scenario, do we see the pricing to pick up at least in the next two, three months, or maybe it will be October, November onwards one can look at?
Sravan, to answer your first question about ADD, we are expecting the recommendation to go through within this month. You are right, by the time the finance department comes out with the final circular, it will be maybe October or so. After that, definitely, there will be an increase in the domestic prices. Internationally, as you know, it's all a volatile situation. You don't know which way oil will move, which will happen around the tariffs. It is very difficult to predict what the PVC resin prices will be. Obviously, correspondingly, they will reflect in the price spike.
Yeah. On the EBITDA margin front, this quarter was at 9%. I think normally we talk about kind of a 12% kind of a margin. How one can look at, can we start seeing a double-digit plus kind of an EBITDA margin from Q2 onwards, or till the time the prices will come up, then only one can start looking from third quarter onwards at a double-digit EBITDA margin?
Yeah. Sravan, you have seen in the last quarter also, June 2024 quarter also, we have restarted EBITDA margin of 18%. Because of this declining trend, pricing trend, the EBITDA margin has got down drastically. If the price will remain stable, definitely, we are expecting a double-digit EBITDA margin for the year as a whole.
Okay. Last, sir, on the capacity, we were saying that we will be adding a 50,000 ton in 1H FY 2026. Have we added anything? If not, by September, are we adding this 50,000 ton? Is there any plan in terms of the greenfield expansion or brownfield expansion?
This 50,000 tons, Sravan, that has been the 25,000 tons came in in the last quarter of the last financial year. The 25,000 tons right now is almost completely implemented. Definitely, by September, everything will be up and running. Once we come back from monsoon, we will have the advantage of this 50,000 tons. As on the greenfield expansion, there is still no decision of a new location because the next phase of expansion, which we are already talking about internally, working on internally, though it's not approved by the board yet, will still most probably happen at the existing locations because both at Ratnagiri and Masar, we have adequate infrastructure to handle more capacity. We see growing demand still around the markets around these plants. The next phase of expansion definitely will come at the existing plants.
Greenfield capacity announcement, I think, probably will take some time, not in this quarter.
Okay. Okay. Thank you and all the best, sir.
Thank you.
Thank you. Thank you, Sravan.
Thank you. The next question comes from the line of Sneha from Nuvama Wealth . Please go ahead.
Okay, sir good evening and thanks also the opportunity, I wanted to understand on a structural level, given now that you're an integrated player and you would be reporting your margins on a consolidated basis, where can we actually see the margins on a structural level, leaving apart the PVC ups and downs, which we've seen, particularly in the last one or two years?
No. As I said in the beginning, more and more, we are looking at ourselves as a Pipes & F ittings player with a backward integration. Earlier, when we set up the PVC resin plant, that also was a move towards backward integration, but we put up a capacity more than what we were consuming. We were almost 50% of our resin at one time we were selling, and slowly, now that has come down to almost zero, maybe 1,000 or 2,000 tons we sell outside specialty grade. Basically, it's all for captive consumption. Our margins, obviously, would remain, if whether we publish segment-wise or whether we publish as a whole, this is basically an accounting treatment.
We have been advised, for the last year also, that slowly you have to start thinking of looking at this whole thing as one unit because there is zero sale practically in the market. Whatever were the volatility of the EDC, ethylene prices for the PVC resin business, those will continue. There's nothing structurally different in our operations now. What was happening until last year, the same thing will happen. We will continue to be benefited by low EDC prices, and we wish to continue to be impacted if the delta between PVC and EDC goes down. The only thing, as far as we are concerned, we look at ourselves purely as a pipe player now, not as a petrochemical player. That is why this change in accounting method.
Thank you, sir. Could you help us with the spread this particular quarter, PVC/EDC?
Yeah, Chandan, could you help on that?
One second. PVC/EDC spread at $522 per metric ton currently.
And VCM?
PVC to VCM, it's $151.
Also, could you give us the pricing, sir?
Sorry?
Also, could you give us the pricing? That would be better.
Pricing is around $870.
Understood. Understood.
Sorry. My bad. It's $700.
Understood. Sir, lastly, on the growth front, what's been the growth in CPVC this particular quarter? You also mentioned from July, you're seeing the pickup. Is that more to do with the plumbing is what I'm understanding? Could you give some color? Is it broad-based? Is it selective?
Current quarter, our CPVC volume has grown by 10%. Out of that, 66% contributed by pipe and 32% contributed by the fitting. More or less, the same increasing trend, growth trend of PVC, we are going to see in the upcoming quarter as well.
That's helpful. Thanks from our team, and all the best.
Thank you.
Thank you. The next question comes from the line of Praveen Sahay from PL Capital. Please go ahead.
Thank you for the opportunity, sir. First, what's your capacity in the pipe and the fitting right now?
In terms of our total capacity, 4,70,000 we were reporting earlier. Now, as of sitting on today's date, it's 4,50,000. Sorry, 5,20,000. Out of 4,70,000, 25,000 we have added in March quarter and 25,000 we have added during the current quarter. Sitting on today's date, we have the total capacity of 5,20,000.
Right. Okay. Second question is related to the, you know, gross margin because, as you said, you are an integrated player, and your gross margin more to do what I suppose is how is the spread as a moving PVC/EDC or PVC. Sequentially, if I look at your spread for a PVC/EDC, it has improved from $490 to $522. In the same case, your gross margin has contracted. Is there any inventory loss you had booked for this quarter, or why is it so?
No. Basically, if you see, we do, we are managing our inventory effectively. This quarter, fortunately, also we have not seen any inventory loss. This is number one. Number two, in terms of pricing margins, see, whenever you see the prices in the international market, these prices are more or less indicators. When we see the compared landed prices and when it goes to the market, there are multiple factors also playing into the picture. That is why the cost front will remain more or less the same in terms of number. Margin will also depend upon how the top line is going to get finally getting pipes getting sold in the market. That is how our margin has got impacted.
Okay. There is more contraction in the realization than the cost?
Yes. Yes.
Okay. Got it, sir. Next question is related to the use of your, you know, the cash, which is INR 2,500 crore. Is there any plan for a future?
See, basically, Praveen, we will continue to expand the pipes' capacity year after year. Typically, a few hundred crores, between INR 200 crores- 300 crores, would be definitely spent every year in the expansion of Pipes & Fittings capacities. In the meantime, we will also be adding to the cash reserve. If you take a five-year span, we will have more cash reserve than what we would be using for expansion. It's a question of timing. As I said in the last call also, it's the Board's decision that when we feel that we have adequate cash surplus, which is not likely to be used by business, we will return to the shareholders. The timing, obviously, we cannot commit now.
All right, sir. Lastly, on the capex, for this year, you guided last quarter INR 125 crore to INR 150 crore. What exactly? Like now you are saying about INR 200 crore, 300 crore of a CapEx annually you are looking for. For this year, we can assume it's about like a INR 200 crore, INR 300 crore of a CapEx you are going to do?
Additionally, maybe another INR 150 crore.
INR 150 crore for this year, you are saying?
Yes. Yes.
Okay. Okay. Thank you, sir. Thank you. All the best.
Thank you. The next question comes from the line of Udit YES Securities. Please go ahead.
Yes, sir. Thank you for taking up my question. Just one follow-up. In the last call, you mentioned that the focus of the company now remains on margins. I understand that this was a tough June overall, and that must have dragged your overall performance. You know, overall, if you had no inventory losses, then also the margins are very much suppressed.
Yeah, but margins are obviously also a factor because the top line, the expenses remaining the same and the top line coming down. Obviously, absorption of fixed costs plays a role. Having said that, what we mentioned in the last quarter holds good that some of the incentive schemes, some of the discounting schemes, which we had done in the past, we have started withdrawing, and we have definitely managed to knock in a few percentage points in the absolute gross margins in the pipes business. That will continue. Obviously, this is not the right time during monsoon to be very adventurous, but once the demand picks up post-monsoon, we will carry this further.
Right, sir. I think that is what one is that you withdraw the discounting. In terms of your agri, non-agri mix on annualized basis, how do you see internally that shifting? Because otherwise, those margins without the volumes may also not suffice the target, right?
That will definitely come because, as we have said in our opening remarks, our emphasis is already going on regarding making the mix to the better level at the 50/50 level. Yet, since we are at the first quarter conclusion only, let's see how the thing is moving. Yes, our emphasis and our endeavor is also to make it to the extent possible 50/50 over the period to come. That will give us the margin because as the non-agri will go up, that will give us the margin push as well.
Thank you.
Hello? Udit, sir? Yeah, we are unable to hear you.
That's it from my end. Thank you.
[crosstalk]
The next question comes from the line of Shivkumar Prajapati from Ambit Investment Advisors. Please go ahead.
Yeah. Hi, sir. Thanks for having my question. My first question is, what is our current share from fitting? I mean, the revenue share from fitting?
See, Shivam, generally, we do not give our breakup between Pipe & Fitting. Overall, we assume every non-agri even 70/30, but that number generally we do not withdraw.
Understood. Okay. Sir, would you be able to provide me the breakdown of the non-agri revenue? I mean, just want to understand whether the non-agri revenue comes from plumbing, construction, or industrial.
In terms of our total revenue, non-agri somewhere comprises of INR 460 crore of year-round.
Okay. This INR 460 crore, would you be able to break it down further?
No, no. That won't be able to be discussed in the same book.
Is there any breakup available for retail versus the institutional?
That general detail we do not discuss in the market generally. Though we have been addressing the number, though recently we have discussed the management use.
Understood, sir. That's it from my end. Thank you.
Thank you. The next question comes from the line of Vishal Shah from Sameeksha Capital. Please go ahead.
Am I audible?
Yes, sir.
Yeah. Like, as Mr. Agarwal will join two months later, what are the key strategic priorities and immediate goals? Mr. Dhanorkar will transfer. Please, in the near term?
There's some background noise, Vishal. Somebody else was talking. I didn't get your question.
Yeah, can you please repeat the question? Somebody else was talking.
Am I audible?
[crosstalk]
There is some background noise from your side.
Yeah, Vishal, you can continue, please. You can repeat your question, please.
Yeah. What are the key strategic priorities and the immediate goals for Mr. Agarwal? As he will join as the Managing Director in the upcoming two to three months, Mr. Dhanorkar will be there only, but whether we can expect any change in the stance from the company or any policy?
See, policies will remain the same because the policy is not dependent on the person. It is as a corporate. In that way, we are a very, very well-defined board-driven company. Our independent directors are very actively involved in the strategy and planning. Whether it is Saurabh Dhanorkar or Uday Agarwal, that will not change the overall strategy. For him, I would say the immediate KRA would be looking at the market expansion, market penetration. To some extent, I would not like to have a long full-time role in this because the way the market dynamics go today, the person at the helm has to travel extensively. I'm sure with his younger age, Udipt will be able to reach out to every corner of India, meet the distributors, understand their pain points, and basically make the marketing network robust.
As far as the manufacturing is concerned, we already have a solid team in place. That's not another thing. The expansion, he would be involved in executing this. As I said, although we have not declared the numbers, he would continue to expand the pipes' capacity. One of his KRA would be also to see that the expansion happens in time at the right location and the products get distributed properly.
Thank you. I think that's it from my side.
Thank you. The next question comes from the line of Ritesh Shah from Investec. Please go ahead.
Yeah. Hi, sir. Thanks for the opportunity. A couple of questions. Sir, first, I just wanted to understand on Na Se Jal, is there any offtake happening with respect to the scheme given there were some corruption-related issues on the tendering? Specifically, if you can give some color in the state of Maharashtra also, that would be great. Do we also supply under Na se Jal directly or indirectly via contractors?
No, we don't supply anything directly. It's all through contractors. I don't know what this corruption-related issues are, but we are not directly, indirectly, or even remotely affected by that. If at all something happened at the government level, I'm sure somebody must have been involved. For us, we have not seen even the slightest impact of any corruption there.
Okay. Sir, how is the offtake with respect to this particular scheme? Is it quite normal, or has it improved on a year-on-year basis or last three-month rolling basis?
See, again, as I said, we sell and supply to many of these schemes through our distributors, and they pick up the pipes from us as normal purchases, and then they supply to various because these schemes happen across the state in smaller villages, in smaller amounts. Also, some of them are as low as INR 1 lakh or INR 2 lakh. Some of them may be INR 5 lakh, INR 10 lakh. To be honest, we don't track each scheme individually at our level. What we understand from the retail network is that there is not a great surge as of now this year. Probably that will come only post-monsoon. The normal pickup is going on. There's nothing, there's no lull in that purchase.
Sure, sir. Sir, my second question is, we have indicated that we will have only one segmental number. Sir, to what I understood, I think earlier we had this logistic cost savings specifically for the Baroda plant, wherein we didn't have to move all the way from Ratnagiri to Baroda. When we say that we won't have any external sales, is it we are implying that we are okay to bear a higher inbound freight cost even if it impacts profitability?
No, but even today for Baroda plant, we are buying from Reliance. If I now say this, we are not transferring from Ratnagiri. Today, the Ratnagiri production, as you know, is the capacity is a little over 2 lakh tons, whereas our pipes' capacity is now more than 4 lakh tons. The consumption is more than 4 lakh tons. In any case, we have to buy. There is no question of whether we incur more freight. It does not go from Ratnagiri. Now we are buying from Reliance for Baroda plant.
Sure, sir. This is helpful. Thank you. Thank you so much, sir. Thank you.
Thank you. The next question comes from the line of Sravan S. from Dolat Capital. Please go ahead.
Hi, sir. Sir, just to clarify, when we say the CapEx of INR 150 crore, how much already we have done in Q1 and how much more we will be doing in the remaining nine months?
At this moment, that number is still order has been started to place. Over the period, that will be able to materialize. As of now, the order we have started to place is roughly around INR 30 crore, INR 40 crore already in place.
In Q1, we have done a cash CapEx of INR 30 crore- INR 40 crore.
Order, not actually conversion. It's the order placement only.
Okay. For full year, in terms of the cash CapEx, it would be INR 150 crore. That's the way one can look at it.
Yeah. Yeah.
Okay. Going forward, as you mentioned, it would be a INR 200 crore, INR 300 crore kind of a CapEx from next year onwards one can look at.
That will include our existing replacement capitalization, plus the enhancement of capacity board.
Sir, as you said, we have a 520,000 capacity. Is there any capacity that will be coming up? If not, in next year, how much more, whatever way, brownfield way, how much more capacity we will be adding?
See, basically, Sravan, exact numbers we cannot give without a board decision. As I stated earlier, the market is growing. We definitely have plans to have a double-digit growth over the next five years, which means we will need to expand capacity. That is since we have the funds available, since we have the market available, we will continue to expand. Exact numbers today, unfortunately, we cannot share because that is still under planning.
Okay. Got it. Whatever the capacity right now we are looking at, this year, definitely, we will not be adding any capacity.
This year, towards the end, yeah, we will have some of it. As I said, it's not finalized as yet. As I said, this quarter, right now, we are implementing the earlier 50,000, out of which 25,000 already happened before March. 25,000 is happening right now, and we still have nine months to go. By that time, we will have some more capacity.
Whatever we will be still adding is
INR 150 crore.
Yeah, I understood. Now onwards, whatever we will be adding, leave apart this 25,000, that will be mostly only in the pipes. Are we also thinking to add capacity in fittings?
No, it will be mainly in pipes.
Trying to understand, when we, for last, I think, I don't remember if you can help me, since I think many quarters we are saying that we want to have a 50/50 agri, non-agri share. How will we be achieving this if we will not be adding a fittings capacity? How? Because this need, the agri share is already, it is around 70% for the last many quarters, 65%, 70% . To reduce that share and to increase the non-agri, how is that possible?
Fittings, because today we already have adequate capacity to go through this year. I'm not saying we are not going to add fitting capacity at all. This year, there is no capacity because we already have over 50,000 tons of capacity. Last year's fitting sales was about 30, 38, 39, between 35,000 to 40,000 tons. We have adequate capacity to take care of the growth for the current year. Next year will be another year, definitely. By that time, we will have something.
Okay. In CPVC also, are we adding capacity?
CPVC also, yeah, we'll keep on adding.
Okay. For industry, for this year, as you mentioned that we are looking at a double-digit growth for the next five years, this year also, are we looking at kind of a 10% odd kind of a growth?
Yeah, yes. Definitely. Target is definitely about 10%. Definitely, we are our target with our dealers. Everything is there. As I said already, as of today, we are high single- digits. As the market picks up, there's a good chance we'll cross 10%.
No, for us, definitely. For industry, I'm talking for industry growth this year, how we are looking at industry growth.
Industry, yeah, industry also should be close to double digits.
There also, as you mentioned, the CPVC will also be growing at a double- digit, 10% . PVC will, so both will be growing in tandem.
That's going to be an expectation.
Okay. Lastly, sir, whenever last time we said whenever the anti-dumping duties will come, whether it will come in October, September, whatever, we said that in terms of the price, the high INR 3 to 6 . That's the way one can look at it. Has anything changed? Is it a?
No, the expectations are similar.
Do we believe that this INR 3, INR 6 kind of a price hike can push the channel to fill the inventory and then can help us in terms of the growth? Or is it whether this will be a INR 2 hike or a INR 6 , it will not have an impact? The growth will be in any way coming a kind of a double- digit?
See, channel inventory, channel picking up is a temporary phenomenon. When they go down, maybe for a couple of months, three months, four months, and finally, at the end of the day, it's how much the market grows by because the channel is not going to keep the inventory for months together. If the market is growing, the channel will be picking up. Whether they pick up in 15 days or whether they pick up the same quantity over one and a half months, that's what the price movements decide. If you look at quarter- to- quarter, yes, then that growth will come in this quarter or the next quarter. If you look at annual, this definitely will be growth.
Okay. Okay. Got it, sir. Thank you and all the best.
Thank you.
Thank you. Before we move towards the next question, we would like to remind participants you may press star and one to ask a question. The next question comes from the line of Vipulk umar Anopchand Shah from Sumangal Investments. Please go ahead.
Hi, sir. Thanks for the opportunity. My question is, is Mr. Chhabria, our Chairman, and is he actively involved in day-to-day management of the company and guiding the company strategically? He is absent on the call for so many years, and the company's performance is also not up to the mark. Are we losing any market share? Mr. Dhanorkar, can you make some comments regarding the strategic role Mr. Chhabria plays?
Yeah. He is definitely involved in not only the strategy. Of course, he's involved as the Chairman. Plus, as I said, we have a very, very active Independent Director from our Board who engages with us not only from Board meeting to Board meeting, but also in between, we have regular sessions, Chairman and the Board and the CEO and our HODs we have there. As far as Mr. Chhabria is concerned, we have regular online meetings with him. He's involved in all the major decisions like CapEx and this. Day-to-day, obviously, he doesn't get into that. Day-to-day is left to the MD and the HODs. That way, we are a fairly professionally run company with a promoter who is actively monitoring.
No, because the churn at the top is very high, sir, and even before you took over, the performance of the company has also been less inspiring. Have you lost any market share over the last few years, sir?
I say market share, obviously, is a moving target. To some extent, yes, some of the competitors have expanded after their public issues or whatever. That changes from year- to- year. That has nothing to do with the Chairman being present on the conference call or on the analyst call. He's involved in the decision-making. He's very much involved in the Board decisions. If at all there is a dip in the performance, it is market-driven or probably the team has to take the bait. It has nothing to do with the Chairman.
Okay, sir. Sir, can you comment on the difference between margins for fittings and pipes? Naturally, fittings will have a higher margin. If you cannot quantify, but directionally, they are much higher than pipes?
Yeah, directionally, they're much higher than pipes, definitely.
Okay, thank you, sir.
Thank you.
Thank you.
Thank you. A reminder to all participants, if you wish to ask a question, you may press star and one. The last question for the day comes from the line of Keshav Lahoti from HDFC Securities. Please go ahead.
Hi, sir. Personally, I want to know how are the CPVC prices? Secondly, the growth you have indicated in CPVC for Q1 is double- digits. Whether you have grown your gain market share or the market demand was healthy?
Yeah. The CPVC prices have been on the decline of late. If you compare to last year, we have got benefits. More CPVC capacity is coming up this year, and by the end of next year, we'll have more capacity. More players are coming into India. The availability of CPVC has increased. Correspondingly, the prices have come down, and we expect them to come down further. With CPVC becoming more affordable to the customers, the volume is growing. What we have grown to some extent, I believe, is that, yes, we have taken some market share. We have grown more than the market. Having said that, we expect the overall market for CPVC to grow in line with the plumbing market. It is not just CPVC. The overall plumbing market is growing. CPVC as part of that is probably growing faster because the base is smaller.
We are growing slightly ahead of the industry. That is the scenario.
Got it. What is your, secondly, the CPVC prices have declined. Is it because of a cost pass-through or whether the margin has also taken a hit? Secondly, what is your CPVC revenue and volume for this quarter?
No. I'll just on the first part, I'll say that CPVC resin prices have declined, but correspondingly, our sales prices have not declined. In fact, the margins in CPVC are better compared to last year. Having said that, the numbers, I don't know, Chandan, do you have them handy?
We have the total 6% share of CPVC in our overall margin.
Okay. Understood. Got it. What was the CPVC growth in July month, which you said for the company was high single- digit?
Nothing at the number. We'll not be able to comment at this moment. We're just wrapping up July.
Got it. Sir, on PVC side, how has been the channel inventory for the company, maybe on March versus June versus July? How has it changed? What is your possibly normal channel inventory? How is it now? What is the sense? Possibly, can channel inventory bring a strong growth for a quarter? Does that get normalized?
See, channel inventory has been, for the last few months, low because the channel inventory, as we discussed earlier, picks up when there is, I guess, if it's no price increases, and they tend to stock more. That will really depend on how the international PVC prices move over the next two months, depending on also the sentiment relating to anti-dumping duty. It is very difficult to predict when the market, but since this is a monsoon period, we don't really see a surge in the channel inventory pickup during this month. As we come towards the end of monsoon, by end of August or early September, September should be definitely a much better month. By that time, they will be very low on inventory, and as the demand comes up, the demand, I mean, the channel inventory will pick up.
Okay. Got it. Sir, one last question from my side, sir. Like sales cash, which is there in the balance sheet, which has been discussed multiple times, there is still no clear roadmap missing, possibly whether the company is only using why it is not distributing to the shareholders.
Unfortunately, I don't have an answer for that because this is a decision taken at the Board level. As I said, we are, as management, aware that, yes, we are holding the shareholders' money interest. If we don't utilize it effectively for business, it would be proper to return it to the shareholder. Unfortunately, I can't place any timeline on this.
Got it. That is helpful. Thank you so much.
Thank you. As there are no further questions from the participants, I now hand the conference over to management for closing comments. Thank you, and over to you, sir.
Thank you, Arun. Thank you all for attending today's call. If you have any further questions, we'll be most happy. You can get in touch with us through mail or through call to Mr. Chandan Verma. Thanks once again. Have a wonderful day.
Thank you all. Thank you for your active participation. Thank you.
Thank you. On behalf of ICICI Securities, that concludes this conference. Thank you for joining us, and you will now disconnect your line. Thank you.
Thank you.