Ladies and gentlemen, good day and welcome to the Q1 FY 2026 earnings conference call of Prince Pipes and Fittings Limited, hosted by MUFG Intime. 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 touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Sumeet Khaitan from MUFG Intime. Thank you, and over to you, sir.
Yeah. Good morning, everyone. I welcome you all to the earnings conference call to discuss Q1 FY 2026 results of Prince Pipes and Fittings Limited. To discuss the result, we have from the management, Mr. Parag Chheda, Joint Managing Director, Mr. Nihar Chheda, Vice President, Strategy, and Mr. Anand Gupta, Chief Financial Officer. They will take you through the results and the business performance, after which we will proceed for Q&A session. Before we proceed with the call, I would like to mention that some of the statements made in today's call may be forward-looking in nature and may involve risks and uncertainties. For more details, kindly refer to investor presentation and other filings that can be found on the company's website. With this, I now hand over the call to the management for their opening remarks. Over to you, sir.
Thank you, Sumeet. Good morning, and thank you all for joining us for our quarter one FY 2026 financial results. The presentation and the press release have been issued to the stock exchanges and uploaded on our website. I hope everyone has been able to go through the same. FY 2025 unfolded against a backdrop of considerable macroeconomic headwinds. The year was defined by persistent inflationary pressures, subdued demand across core end-user segments, and a marked reduction in government infrastructure spending. These factors triggered caution inventory optimization by our channel partners in key markets. Amplifying these challenges was the heightened volatility in PVC resin prices, which exerted pressure on both volume growth and profitability across the industry. As we stepped into quarter one of FY 2026, the challenging demand environment persisted. The sharp correction in PVC resin prices led to inventory losses in the trade channel, which temporarily compressed our margins.
Despite these headwinds, our volumes registered a 4% YoY increase to 43,735 metric tons, while revenue degrew by 4% YoY, reflecting the impact of a weaker realization arising from price fluctuations. In response to this challenging backdrop, we maintained a clear focus on reinforcing operational resilience and executing our long-term strategic priorities. Our deliberate efforts to enhance brand visibility, deepen the channel engagement, and accelerate marketing initiatives are beginning to translate into tangible volume-led growth. On the brand-building front, we are expanding our consumer touchpoints across high-visibility travel corridors. Our collaboration with Indian Railways for branding in premium trains has significantly strengthened our presence on one of India's most prestigious and widely viewed transport networks. These initiatives ensure that our brand is both visible and relatable to consumers wherever they travel. Simultaneously, we are executing planned capital expenditure to support our growth ambitions.
Our eighth manufacturing facility in Bihar, which commenced operations last quarter, continues to operate efficiently. The phase two expansion at this plant is progressing on schedule and is expected to be completed by quarter two FY 2026, further augmenting our capacity to serve emerging markets. Innovation continues to be a cornerstone of our strategy. We remain focused on enhancing our product portfolio with innovative offerings while simultaneously strengthening our distribution network across regions. I am pleased to share that our Bathware segment, Aquel, has now expanded in the South region following successful launches in the North and West. In addition, we have set up dedicated teams in the East, reinforcing our ability to penetrate new markets effectively. We believe these strategy initiatives will further accelerate our growth momentum and contribute meaningfully to delivering sustainable value for all our stakeholders.
Looking ahead, we are optimistic about a gradual recovery in demand, supported by the government's renewed thrust on infrastructure spending. Our strategic focus on geographical expansion, product innovation and operational excellence position us well to navigate near-term market uncertainties and capture long-term growth opportunities. In conclusion, despite external headwinds, we are confident that our strong fundamentals, diversified product portfolio and customer-centric approach position us well for sustained long-term growth. Thank you for your time. I will now hand it over to our CFO, Mr. Anand Gupta, to take you through the key financial highlights.
Thank you, Parag bhai, and good morning, everyone. I will be taking you through the Q1 FY 2026 financials now. Our volumes for the quarter stood at 43,735 metric tons. It grew by 4% YoY. Revenue from operations stood at INR 580 crores, and EBITDA for the quarter stood at INR 40 crores. Margin is at 7%. Profit before tax for the quarter is at INR 5 crores. In Q1 FY 2026, our working capital is at 93 days compared to 98 days from the last quarter. Receivables have shown improvement and now stand at 55 days from 61 days, and inventory days is at 83 days as on 30th June, 2025. With this, I open the forum for question- and- answer session. 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 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 is from the line of Shravan Shah from Dolat Capital. Please go ahead.
Hi, sir. Thank you. Sir, I want to understand clearly revenue volume and EBITDA margin at least for this year. If possible, if you can help us in terms of the quarter-wise also. Let me put my questions better. First, on the volume growth, 3.7% growth we have done in this quarter. In the second quarter, how do you see the growth? Let's see whatever the ADD comes by September or October. Then in the second half, how do we see a net for the full year? How do we see the volume growth? Second, the biggest question is on the realization front. Though this quarter, 7.8% kind of a decline is there QoQ, but if I look at from FY 2025, it is 9- odd percent decline. In Q2, how do we see and in the second half?
Net-net, I want to understand in terms of the revenue for FY 2026, it seems like we would be a kind of a 2%-3% kind of a growth. So help me in that.
Yeah. I'll take the first question on the volume side. Volume growth has been 3.7% for the first quarter. In the second quarter, July has been to a good start. We have seen good growth in July. We are confident of a high- single- digit to low- double- digit kind of growth should be possible for the rest of the year going forward. As far as realizations are concerned, everyone knows we are a pass-through industry. It's mainly a function of raw material prices, which are not controllable. If you see the decline in realizations year-on-year, June quarter to June quarter, I think we are in line with our peers of around 8%-9% kind of a drop in realization. I think that is going to be a function of raw material pricing.
Whenever the duty is announced and the raw material prices move up, I think realizations also will move in line with that.
But as far as Q2 is concerned, the current realization are likely to remain till the time ADD doesn't come. Currently, is there a way in terms of either by increasing the CPVC share or whatever way, whether the Q1 was very bad in terms of product mix or anything. Do we see any kind of a realization improvement possible except the ADD in Q2?
Yeah, I think the other way of improving realizations is through product mix. Even in the first quarter, we have had a better growth in CPVC compared to PVC. As product mix improves, realizations also will improve.
Okay. Now on the margin front. How do you see the 6.8% kind of EBITDA margin? I understand we used to guide 12- odd percent kind of a sustainable long-term EBITDA margin. But for this year, till the time ADD doesn't come, do we see even kind of a 8% kind of a margin is possible or this number will be there?
No, sir, I think margins will improve going forward. We have seen an inventory loss of around INR 15 crores-INR 20 crores in the June quarter. Inventory losses going forward will not be there. As volumes improve, operating leverage also will improve. I think in terms of margins, Q2 will be better than Q1, and the second half of the year will be better than the first half.
Okay, great. Last on the CapEx front, sir. How much cash CapEx we have done in Q1? For full year now, last time we said INR 220 -odd crores . For Aquel and then remaining on the Begusarai, how much is left? Currently the Begusarai capacity last time what we said, 24,000 tons, and now by September will it reach to 60,000 tons?
On the first part, the CapEx in the first quarter is around INR 75 crores. For the rest of the year, including Bihar expansion, it will be in the range of around INR 160-INR 170, which will take care of leftover of Bihar, which will close by September 30. The second part is actual commitment, which is still there, which is pending. We have factored in our cash flow projection. Then the rest is operational CapEx for the rest of the plants. In terms of Bihar reaching out in H1, it will be close to 60,000 tons of capacity will close by 30th September.
Okay. Thank you, sir. I have questions I will come in queue. Thank you.
Thank you. The next question is from the line of Sneha from Nuvama. Please go ahead.
Hi, good morning, team. Just a couple of questions from my end. You did mention the inventory loss number, but could you also quantify other reasons, like what has been the loss from the Bathware segment and where do we now see the margin going except inventory losses?
Bathware loss is close to INR 5 crore, which translates to 0.8%-1%. That is the other number. Going forward, as Nihar mentioned that from Q2, margin will start improving and the H2 will have a normalized kind of EBITDA after factoring Bathware loss.
Understood. On the second point was you also mentioned inventory days is standing at about 81- odd days. Could you quantify that how much would be the inventory for raw material as well as finished goods here? What is your target for inventory levels next quarter or the year- end?
Yeah. Inventory actually has reduced from March end to June end. I will give you the exact numbers in terms of days. In March, raw material was around 45 days, which has come down to now 35 days. We have seen a reduction of 10 days. I think the target here would be to keep this around 30 days. We are close to our target. We have seen a sharp reduction in the past quarter of around 10 days. Finished good, in March end was 35 days, which at June end is around 40 days, which is a five-day increase, which we are okay with, because we are gearing up for better demand going forward. In terms of the target that you asked, I would like to keep it between 70-75 days.
Around 30 to 35 days of raw material and balance finished good.
Understood. Thanks. Thanks, team, and all the best.
Thank you. A reminder to all participants, you may press star and one to ask a question. The next question is from the line of Keshav Lahoti from HDFC Securities. Please go ahead.
Hello, hi. Thank you for the opportunity. Sir, as you highlighted, the CPVC growth is better. Earlier it was growing by double- digit highlighted by you. Should we expect the CPVC volume growth as double- digit in this quarter also?
I will stay away from giving exact numbers, but it was high- single- digit.
Understood. Got it. Sir, how are the trends on the incentive side in the market? Has it changed? Has it increased, decreased? How is it? What sort of incentive, higher incentive you are giving to dealers now?
See, I think sentiments in the channel are better than what it was in the previous quarter. We have not seen very sharp decreases in PVC. There have been decreases, but it has not been very sharp the way it was before. I think PVC prices have bottomed out, if not close to bottom. I think sentiment of channel is only improving. It is not an on and off switch. We cannot just pull the trade incentives, but we have started rationalizing where required. Where we think that we need to continue giving the incentives, we are going to continue giving the incentives. We need to find the right balance between, of course, improving margins, but today main focus of the organization is on improving volume growth and capacity utilization.
Got it. Sir, when we expect the ballpark number of percent margin, whether this will be achieved this year or is it time to reach this number as a long-term target?
Can you say that again?
Normally company guides in the long run, the EBITDA margin of the company would be 12%. Should we expect this by Q4 or is it possibly one or two years away?
No, I think by Q4 we should be normalized, if not by Q3.
Understood. Got it. One last question, sir. You haven't mentioned Bathware revenue yet, right?
Just give me one minute. Yeah. Revenue, net revenue for first quarter of Bathware is INR 11 crores.
Okay. Thank you. I will come back if required.
Thank you. A reminder to all participants, you may press star and one to ask a question. The next question is from the line of Pranav Mehta from Equirus Securities. Please go ahead.
Yeah, good morning, sir. Thank you for taking my question. Sir, I wanted to understand on two things. One is on the interest cost. So that has seen a sharp jump. So anything one- off there?
We have capitalized majority of our Bihar project and the term loan which was taken for that purpose was capitalized till the date we commenced our production. Post that it is now operational expense, so that is why you are seeing that difference in Q1 finance cost compared to last quarters.
Sir, going forward, this would be a kind of a steady- state interest rate for this year or are we expecting—
Till we repay our term loan on a reducing basis, interest will be charged in P&L on term loan.
Okay. Sir, my next question was this write back on the excess staff incentive. Exactly what was that?
This is a normal cycle of evaluation based on company's performance. We have decided to incentivize our employees accordingly and those write backs has come because of the lower profit company has made.
Sir, in that case, the quarterly number that you have posted for 1Q, will it remain at the same level for the rest of the year or are you seeing some increase in that from staff?
No. The performance linked incentives are a reflection of the health of the organization and the profitability of the organization. Going forward, as inventory losses reduce, minimize and overall product mix improves, I think margin from second quarter will be better than first quarter and second half of the year will be significantly better than the first half of the year.
Okay. But staff was more or less would be remaining at this level approximately.
No. The cycle at our end is July to June. So in Q2 you will see the increments coming in the cost of salary.
Okay. Sir, just to make it clear, all the inventory loss for the inventory that you have built up has been taken, right?
Yes.
Okay. As of now, as the prices remain, no further loss you are expecting.
Yes.
Sure. Thank you. That is my side.
Thank you. The next question is from the line of Udit Gajiwala from YES Securities. Please go ahead.
Yeah. Hi, sir. Just a broad understanding as to the overall view, right? Is it the volumes that will be the key focus now given that there is a lot of competition also there and all the other players have also set up new capacities? Do you see that the pricing war will continue and volumes will be your key focus and you will have to pay for the margins?
Volumes will be the focus. Focus has always been on profitable growth, so we do not want to have any predatory pricing. We had to have aggressive trade incentives when channel sentiment was poor, especially in December quarter and January quarter of last financial year. I think as PVC prices are bottoming out, sentiment is improving that we do not see a very high resistance from the channel to stock up. I believe going forward we will be able to focus on profitable volume growth. In our industry, especially for us, the way our cost structure is, operating leverage plays a big part. The more we sell, the more profitable we will be from a cost absorption point of view. I think the two objectives actually go hand in hand.
In your opening remarks, you mentioned that July has been good versus what you have seen in Q1. Can you point out that as to which segment you see the growth coming up or specific region if you would like to highlight?
Mainly from building material. Because agri because of the monsoons was not a great agri season after, I would say, May and beginning of June. So mainly I would say driven by residential building material products.
Got it, sir. Thank you, sir, and all the best.
Thank you.
Thank you. A reminder to all participants, you may press star and one to ask a question. The next question is from the line of Meet Jain from Motilal Oswal. Please go ahead.
Hi, sir. My question is regarding a more macro scenario. As we see, anti-dumping duty, which has been expected to come by September, October, until that prices are expected to be stable around this level, as you have told, and have bottomed out. In terms of demand, you mentioned that demand is going to improve going ahead with increasing government push. So in which pockets are you seeing this demand recovering, in which locations? If you can just throw some light on that.
I think, like I said, agriculture season was short-lived, which anyway is not a big part of our revenue. It is only maybe 30% of the overall revenue. Mainly, we are a building material company focused on plumbing and SWR. I think growth will be— We have seen the green shoots of demand in July, and going forward, I think these are the segments that will continue to do well.
Basically, our demand will be more driven by higher launches of new residential projects across India and more CapEx from the private organizations, right then more focused on government infra.
Correct.
1Q, as we know, is heavy on agriculture, but as a big company, we are heavy on plumbing and SWR, as you mentioned. So 1Q, I did not saw a good growth in residential.
Agri is around 30%-35% of revenue, which is still a significant part of our overall revenue. But I would say, in the industry, we are pretty well hedged between plumbing and agri, and followed by infrastructure.
Okay. This 30% is for the entire year, or this Q1 is more agri-driven hence 30%?
30% is on an annual basis. Of course, agri demand is seasonal.
Yeah.
You will see sort of March to June tends to be the large agri season. In December you see a small agri season.
This quarter can be over 50% for us in terms of volume?
I am sorry?
For this quarter, for 1Q, can it assume it will be over 50% this quarter because being a heavy season?
No, no. The SKUs are not that large.
Okay.
Yeah.
Okay. Got it. I will get back into queue. Thank you.
Thank you. The next question is from the line of Utkarsh from BOB Capital. Please go ahead.
Sir, my question is regarding your Bihar plant. If you can just help us, what would be the capacity utilization of our Bihar plant in the June quarter and at what level we expect to operate, say by the coming March quarter? What would be our break-even point for our Bihar plant?
First, the utilization part. We have to understand that the complete range has to be available at the Bihar plant to make sure that the whole set of delivery is done. Right now, as we have progressed, we have progressed to close to 58,000 tons. But the actual efficiency of these addition in the capacity will happen from Q3 once the whole range is ready. Right now we are building capacity, but the effective utilization will happen from Q3. Mid of Q2, I will say, we will start. Then we can better see what is the effective utilization. The other part was related to when it will break even. Bihar will take around five years to break even if we operate at close to 70% capacity.
Sir, if I understand correctly, you mean to say that Bihar plant is going to negatively contribute at EBITDA level for the next five years?
No. You said that when it will break even in terms of investment made, right?
Sir, I was talking in terms of EBITDA level, sir.
At the EBITDA level from the Q3, Q4, it will start contributing positively. As we have now, Q1 and Q2 will happen mostly in the buildup of capacity. So the overheads which we have started incurring in terms of operational expense will not be absorbed fully. But once the utilization kicks beyond 40% +, we will start neutralizing our expense.
Okay. And sir, what is our net debt position at the end of June 2025, and where do we see this at the end of March 2026?
Net debt is around INR -100 crores . You want March number as well? I will connect post this call.
Sir, INR - 100 crore, that means you are having a net cash of INR 100 crore towards the end of March or June ?
INR 100 crores debt.
Okay. And sir, last question is that we are operating our existing plant capacity at a very low rate in the June quarter. Wanted to understand what is the need of maintaining such high level of inventory as it is creating a pressure on our return ratio profile? Usually companies stock high inventory only when they are operating at a very high rate. What is the need for maintaining such high level of inventory?
No, as I've said, inventory has reduced from March to June. When inventories are high, in one quarter I cannot just directly reduce inventory. If you see the reduction in inventory from March to June, we have seen a 10-day reduction in raw material, and finished goods has increased by around five days. I think 30 days of raw material and 35 to 40 days of finished goods is our industry standard. Because we have so many high range of SKUs, we have to maintain inventory and a lot of new products also that we have launched. If you look, 70 to 75 days is an industry norm.
Okay. And sir, just lastly, our ROE has got significantly depressed right now. What kind of an ROE we are getting, say, over the next two- to three -year period? To achieve that level, what we are assuming in terms of the EBITDA margin and the gross asset turnover? Sir, if you can just help me out with this.
Long term, if you see, our return on capital has always been around 15%-20%. The reason that the return ratios are under pressure currently is because of two reasons. One is, of course, profitability has taken a hit in the past few quarters, and we have had a CapEx cycle also play out over the past two years. We have put up a large amount of capacity in Jaipur, Telangana, and now Bihar, and as well as debottlenecking existing facilities. As capacity utilization improves and as profitability normalizes going forward, we will see improvement of return ratios back into 10%-15% and then eventually more than 15%.
Okay. Thanks a lot, sir.
Thank you. A reminder to all participants, you may press star and one to ask a question. The next question is from the line of Tushar from Omega Portfolio Advisors. Please go ahead.
Good afternoon, sir, and thank you for the opportunity. Sir, considering the CapEx requirement from the states like Gujarat, AP, UP and MP, for Prince, what sort of volume growth you are seeing from these states or at a company level?
All the three states that you talked about, we have a good market share, be it Gujarat, UP or Telangana, Andhra. We have a manufacturing facility in Telangana, in Silvassa, which is a union territory close to Gujarat, and as well as Haridwar, which is Uttarakhand. Our supply chain is strongly aligned with the frontiers of growth, and we have seen good growth across these markets.
Sir, can you just quantify the volume growth you are expecting at the company level?
I think high- single- digit, low- double- digit kind of growth can be expected going forward.
Fair enough, sir. And sir, in terms of your split, plumbing would be what percentage? Also the infrastr+ucture would be what percentage of your revenue?
Around 35% would be 30%-35% would be agriculture. 3%-4% would be infrastructure. 1% is water storage, and balance is building material, which is plumbing and SWR.
Okay. And sir, in terms of CPVC, what would be the mix CPVC over the normal PVC?
CPVC, in terms of revenue contribution, has continued to move up over the past five years. It used to be around 15%, which now has gone up to around 25% +.
Fair enough, sir. That was really helpful. Thank you.
Thank you. A reminder to all participants, you may press star and one to ask a question. The next question is from the line of Shravan Shah from Dolat Capital. Please go ahead.
Hi, sir. Sir, a couple of things. First, last time we said a 3% incentive that we paid to the channel, that was also there in Q1 full. Maybe we will be continuing with the same in Q2 also?
See, that depends. Like I said, where it's required, we will continue. Where it's not required, we will continue to pull it.
Okay, got it. Second, sir, in Bihar one, last time we said we may look at 20,000 tons-25,000 tons of volume in FY 2026. Is it possible, some indication in Q1, how much kind of, whether it would be 3,000 tons-4,000 tons kind of a volume was there? And this 20,000 tons-25,000 tons is doable in FY 2026?
Can you repeat, Shravan?
I said from Bihar, last time we said that we are looking at 20,000 tons- 25,000 tons of volume in FY 2026. Any ballpark idea in terms of Q1, how much it would have contributed, 3,000-4,000 kind of a ton? For full- year, can this 20,000 tons - 25,000 tons from Bihar is doable?
As I mentioned earlier, we have created a backup in Bihar in terms of capacity.
Which will start giving actual production from H2. When we build up 60 kt, technically we will have six months' time to fully utilize. That means 30,000 tons will be available for us in H2. In H1, I can say that it will be close to 10,000 tons to 15,000 tons, something around that will be there. Taking the utilization 60% to 70%, we will be in the range of 20 kt-25 kt from Bihar for the full- year when we close FY 2026.
Thank you. A reminder to all participants, you may press star and one to ask a question. The next question is from the line of Keshav Lahoti from HDFC Securities. Please go ahead.
Hi, thank you for the follow-up. So what was the ad spend for this quarter?
Ad spend.
It is in the range of 1.7%- 1.8%, a tad lower, but going forward we will maintain for the full- year around 2%. That is what we are seeing, but we will see how the quarter goes.
Got it. Lastly, what is the Bathware revenue target for this year, and when we expect to see the breakeven?
I think breakeven is around in four to six quarters.
Okay, four to six quarters. You are saying towards the end of FY 2027, that has possibly got delayed. Earlier we were expecting earlier, right?
Yeah. I think it would be by mid of FY 2027. Because we have now started South and East.
There, once the revenue starts coming in, that will help us reach the breakeven point.
Got it. So what is the revenue target for this year? Bathware revenue target for this year?
We have done INR 11 crores in first quarter. As revenue starts coming in from South and East, and we improve in North and West, this will improve. So I think around INR 50 crores-INR 60 crores is doable this year.
Okay. Thank you. That's it.
Thank you. A reminder to all participants, you may press star and one to ask a question. The next question is from the line of Shravan Shah from Dolat Capital. Please go ahead.
Hi, sir. Sir, in this Q1, at an industry level, what was the volume growth? You said for CPVC it was over the high- single- digit, but overall combined would be how much growth? For full- year FY 2026, how do we see the industry growth and possibly will the CPVC will be a single- high- digit or can it be a double-digit growth?
CPVC was high- single- digit for us, not for the industry first.
For industry was how much?
There is no data collection like that we do on a quarterly basis. There is no official research. I think on an annual basis, we can get better sort of numbers. But overall, I think industry was flattish in the first quarter.
Okay. For full- year, how much we see industry growth?
I think long-term basis, PVC industry should grow, all categories put together, 6%-7%. Over next two to three years, 6%-7% per annum.
Okay. Yeah, that understood. For this year, given even Q2 would be very, very marginal. Except the ADD, if it comes by September, if possible, you can also specify, do we think that by September, October, ADD can come?
It is likely. I don't want to speculate, but yeah, it is likely by September, October.
But will it lead to an INR 3 or INR 4 kind of a price hike or can it be an INR 8- INR 10 price hike is also possible?
Extremely speculative. I think I would not try to give any kind of a guidance on how much it will lead to. I think let the time tell.
Okay. Got it.
Yeah.
Thank you, sir.
Thank you. A reminder to all participants, you may press star and one to ask a question. The next question is from the line of Arun from ICICI Securities. Please go ahead.
Hi. Just one thing. You mentioned July was pretty good. Just to understand, repeatedly on at least the high single digit kind of growth we had the first four months of this quarter, of this year.
You are not audible.
Mr. Arun, we cannot hear you properly. Can you please be a little louder?
Yeah. We mentioned that July was pretty good. Is it right to say that for the first four months of this financial year, we would be in the high- single-digit volume growth?
I think we have already given our guidance around going forward, and Q1 numbers we already have. In the middle of the quarter, I would not want to speculate. I think in terms of, if I understand your question, I think the direction I have given, high- single- digit to low- double-digit growth for the year is possible, looking at where we are today and the kind of capacity we are putting up. I think that's a fair estimate.
Okay. Just to take it forward, we mentioned that Bihar will do 20,000 tons - 25,000 tons. If I look at last year numbers, we did 177,000 tons for the full- year. Straight away it's like 11%. Even if I assume 20,000 tons, 11% growth straightaway comes to our numbers. That means there's zero growth in our core business. So where I'm missing, the guidance doesn't match.
No, but overnight the market is not going to We are not going to open up a new market. Today, Haridwar was catering to East. Now, if you put up a plant in East, somewhere, we have to give it time. It's not that as and when I put up capacity, then the market will grow as per my capacity. If we put up a new plant in a new geography, it is bound that from the other plants, there is going to be a part cannibalization in the first year. Only in the second or third year will we have a net, that kind of an increase. I hope that's clear.
What I am trying to get to is, if whatever you are guiding for basically means that even I assume your number at, let us say double- digit, it will be lower than what Bihar plant does, including cannibalization. It is not matching up with what you are saying.
Yeah. I think, Arun, let me clarify that when I put up a plant in a new geography. East, before the Bihar plant was put up, the Haridwar plant was catering to the East market.
Right.
It is not that we were not present in East at all. When I put up a plant in East and I start serving from that plant, it is not that the market is going to grow as per the capacity I put up in the first year itself. It is not that I had zero volume in East. I was serving it from other plants, so it is bound to happen that in the first few quarters, the volume from the other plants will go down because I have put up a new, a large capacity in a new geography.
Okay. Thank you.
Thank you. The next question is from the line of Keshav Lahoti from HDFC Securities. Please go ahead.
Just a small follow-up. Just some color on July, how has been the volume growth? Maybe directionally it's a low double- digit or mid-teen double digit. How should we see?
I think the direction has been given, Keshav. in the middle of the quarter, I will stick to giving only long-term guidance or a medium-term guidance.
Okay, got it. That's it. Thank you.
Thank you.
Thank you. As there are no further questions from the participants, I now hand the conference over to the management for closing comments.
Thank you, everyone.
On behalf of Prince Pipes and Fittings Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.