...Welcome to the Sheela Foam Limited Q3 FY24 Earnings C onference Call, hosted by Nirmal Bang Equities Private Limited. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Ms. Jyoti Gupta from Nirmal Bang Equities. Thank you, and over to you, ma'am.
Thank you, Tushar. Hello, everyone. On behalf of Nirmal Bang Institutional Equities, I welcome all the participants to Sheela Foam Limited third quarter FY24 earnings conference call. The management is represented by Mr. Rahul Gautam, Executive Chairman; Mr. Nilesh Mazumdar, CEO, India Business; and Mr. Amit Kumar Gupta, CFO. Without further ado, I would like to hand over the call to Nilesh Sir for his opening comments, and then we'll open the floor to question- and- answers. Thank you, and over to you, Tushar .
Thank you, Jyoti.
I think, Amit, Amit, you would be doing the opening comments, right?
You're right, sir.
Sorry, sir. Yes. Hmm.
Thank you, Jyoti, for this. Good evening, everyone, and thank you for joining us for our earnings conference for the third quarter and nine-month ended financial year 2024. I would also like to thank our host, Nirmal Bang, for hosting this earnings call. Let me first take you all through the quarterly and nine-month ended financial highlights, and then discuss some of the operational highlights. For the third quarter under review, on a consolidated basis, we reported revenue of INR 879 crore, which increased by around 15.5% YoY basis and 43.3% on a QOQ basis. EBITDA for the quarter stood at INR 76 crore, up by about 0.8% YoY and 15% QOQ. EBITDA margins were reported at 8.67%. Net profit stood at INR 31 crore, which was down by about 49% YoY.
For the nine months ended financial year 2024, our consolidated revenues are approximately at the same level, on a YoY basis at INR 2,137 crore. EBITDA was flat for the year at INR 220 crore, with EBITDA margins at 10.3% and net profit at INR 118 crore, declining by about 24.5% YoY. As a part of our drive to focus on our core brands, Sleepwell brand mattresses, mattress segment continues to do very well, with 26% growth on a YoY basis. This growth is aided by the two new models under the Sleepwell brand, namely Nexa and FitRest, which has received tremendous market response on the back of the marketing campaign undertaken during the World Cup.
On a standalone basis, contribution margins have improved by 4.7% YoY basis and 1.1% on a QOQ basis, representing strong operational improvements in the business and the profitability. EBITDA margin for the quarter on a standalone basis is 10.5%. This is in spite of our marketing expenses increasing from 5.4% - 8.6% as compared to the last quarter. Most of the profit generated from improved contribution margin and increase in sales have been plowed back into the business with minimal impact on EBITDA margins.
Moving to the next financial year, we expect marketing expenses to stabilize between 6%-6.5%, which is around 2% lesser than the current level of the current quarter, and hence, the current EBITDA margin of around 10.5% can be normalized to around 12.5%. On the other highlights, we have successfully completed both our announced acquisitions, adding Furlenco in August and Kurlon in October to our portfolio. We are happy to report that Kurlon has clocked in revenue, which on an annualized basis comes to around INR 890 crore. This is basis 72 days of sales post our acquisition on 20th October.
EBITDA margin for Kurlon is good at 3.6%, mainly on account of incremental marketing and sales expenses, which happen when you take over a company and you have to acquaint yourself with the entire company and take all the people along with you for taking the business to the next level. If we normalize it with the selling expenses and the promotional expenses done during this period, EBITDA margins currently stand at around 7%-8%, which is better than the historical margin in the previous quarter time for Kurlon Enterprise Limited. With this, I hand it over back to Jyoti for any questions which you might have. Thank you.
Hello, sir. Should we start for the question- and- answer session?
Yes, please.
Okay. Thank you very much. We will now begin the question- and- answer session. Anyone who wishes to ask a question may press star and one on their touchtone 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'll wait for a moment while the question queue assembles. The first question is from the line of Ritesh Shah, an individual investor. Please go ahead, sir.
Sir, I'm not an individual investor, still with Investec. Thank you for the opportunity. So I have two questions for Rahul, sir, two for Nilesh, sir, and one for Gupta, sir. Rahul, just to start with you, first is, if you look at Kurlon, margins, we see sales expenses are 20.1%. Has this number bumped up? If yes, is it, is it a one-time number? How should we look at it? I think we also mentioned that the normalized margins would be 7.8, and not the reported 3.6. So are there any other one-offs, which are there over here, which we need to look at?
Ritesh, thank you. So you're absolutely right that these are one-off numbers. This is just the first 30-odd days, you know, and there are many things from the transactions which are spilling over to this period. And therefore, the other normalized numbers that you talked of are exactly what's going to be there, you know. So I would just say that it's in the positive direction. It is moving. There is a lot of expenses being booked at this time, which are abnormal. Just give it another quarter for stabilizing, and you will see the numbers that you're talking about, if not better than that.
Sure. So just to ask an incremental question over here, have we changed the incentive discount schemes for Kurlon dealers? Because the thought process was that the larger scale, we will be able to review, probably, the incentives or discounts which we give to the channel.
Nilesh, would you take this question?
Yeah, I'll take that question. So Ritesh, it is a little more complex than that, because there was a set of pricing decisions, which historically had been taken by Kurlon, which made the brand in some price segments uncompetitive. So as we took charge, some price corrections had to be done so that we, we brand and in those price segments, we stay competitive. We have right now not yet tweaked with the dealer margin. It's too early for us to dealer margin or the dealer's incentive program. We will do that gradually. We don't want to rush into it.
Let things settle down, because it's, as you understand, that in this process like this, there is a lot of apprehension that different people does have, and it's important that we give them that confidence that for them also, things will improve. And as we move into it, we will then take a considered call on how do we want to look at the overall earnings for a dealer.
Sure. This is helpful. So my second question was around Kurlon, if you could detail something incremental on the distribution versus what we had indicated last quarter. How has the response been so far? And you did indicate there were two new brands which were launched. So if you could help with the price point and the positioning for the two new brands. Thank you.
Okay. So Ritesh, currently yes, we were, as we had discussed in the previous meetings, that we were piloting that entire module in UP. We have had a fairly successful pilot. We have got the learnings, and now as we speak, we are now gradually scaling it up in different parts of the country. We have, we would have now gone into about three or four odd states. We are taking it step by step, by creating a completely different distribution structure and a separate sales structure, which will only look at the towns below 1 lakh population, pop strata . So we are getting a good success, and month-on-month, almost the business is obviously scaling up the way we desire.
It's also important that we have a fulfillment model in place, because as we go across different parts of the country, we should be able to service these requirements through an appropriate manufacturing footprint across the country that we will have for mattresses. So that capability also, as we speak, we are building it up. So fingers crossed, things are looking positive as far as Kurlon and the Small Town India project is concerned. Coming on the-
So, can you detail something incremental on distribution? Because earlier you had indicated that they'll follow basically likes of what HUL, basically a different distribution model.
Yeah. Yeah. Yeah, yeah. So therefore, the distribution model here is we are not going for existing distributors. We have to understand that we can't—we don't want to create a completely new distribution cost structure only for this, because these are lower cost products. So the model that we are following is that we will ride on an existing distribution of FMCG. So therefore, the distributors that we are selecting currently are those people who already have a distribution network in the FMCG area, FMCG category in these markets. And for them, therefore, it just is an add-on product which they carry on their existing infrastructure of warehousing, transportation, et cetera. So he doesn't need to create dedicated storage, et cetera, which would have therefore created a high cost model.
That's exactly the model, which we are now extending to the rest of the country.
Yeah. And for the price point for Tarang versus the new brands that you have launched and the rationale behind that?
Okay, so Tarang is a completely different value customer segment, and we should not confuse it with the current or the other offerings which are there in the urban or mid and the high end. As we have been saying, Tarang is positioned for the customer who is currently using a cotton mattress. A cotton mattress in this country today costs anywhere between INR 800-INR 1,200 for a mattress, so that's the customer segment to whom we are catering. Tarang is priced at around INR 2,000 with a three-year warranty on it, so the lifetime value of the product is good. The initial response from consumers also has been rather positive.
Sure. So you indicated Nexa and one more brand. I missed that. If you could just-
Yeah.
Help us on that a little there?
Yeah. So therefore, if you see the performance in quarter three, Ritesh, of Sleepwell mattress, we have been able to clock a rate of about 26% in Sleepwell mattress. This has been driven largely through three different initiatives. We rolled out the brand campaign on Did You Sleep Well, which was there on World Cup, which I presume maybe some of you may have seen. The other campaign was to back a product called Nexa, which we launched in the market and which has received very positive response. This is a product which is superior to what today consumers know of as called as memory foam. So this is a product which is superior to that. It's at a price point of approximately INR 24,000 onward.
There are three different variants in that, and as we speak, the campaign is still continuing, and it has been received very, very positively by the consumers across the country. So that is the Nexa model that we have. The other model that we have launched is called as FitRest, which is slightly lower at a price point. This has got a profiling to it, a mattress with a profile contour. This is targeted towards a particular segment which we have been seeing perhaps increasing its presence in the country, which is of what is called as covered mattress, where basically people local players were taking foam and covering it in different fabric and selling it as a mattress.
And in order to cater to that segment and having an offering which cannot be matched by them, FitRest, which is a contour mattress, we had first launched in Gujarat and then we extended it to the rest of the country. And, once again, very well received. So these are the two different models, addressing to very different consumer segments that we've launched in the market, and, till now, things look positive.
Sure. This was very helpful. Just last question before I join back. Sir, how should we look at numbers? We see some headline losses. We had guided for some numbers at EBITDA and PAT by December. Where are we over there, and how should we look at the road ahead, increasing stake, as well as on the numbers ramp up? Thank you.
So, Amit, I'll take that question. So, for Furlenco, we've got the results for that quarter. And, let me just say that at the moment, the entire drive is to make it profitable, and we are progressing very, very sharply on that part. There has been a delay of one month. What we expected January to be profitable, we would be in February. And, we are operating EBITDA-wise, we are already profitable in December, but PBT-wise, we would start from February. And the moment we get into that virtuous cycle of getting positive, we will start then looking at doing all the other things which we intend to do.
But the first is the profitability part, and the top line numbers are also increasing, and that's obviously contributing to the bottom line, plus some cost lines and cost reduction or management initiatives are also in play.
So would you like to share some numbers over here? So by March end, and the next year, what sort of revenue EBITDA we would expect, and the timelines on increasing your stake?
Ritesh, we would also probably give it this quarter and probably the next one when we talk. Because to us, the first and the most important thing is that the whole operation needs to get positive. We're going in that direction. As far as increasing the stake is concerned, last time I have already mentioned to you that we do have some options available for one year. But besides that, we would look at it. In any case, we have total control as far as the board is concerned, and the decision making is concerned. So, we'll just request for this quarter, of course, so that when we report in that we are profitable and then we are taking these steps, which will probably make more sense.
Sure. Thank you so much for the answers. I'll thank you all very much. Thank you.
Thank you. The next question is from the line of Nihal Mahesh Jham from Nuvama. Please go ahead, sir.
Yes, good evening to the management. So my first question was, I think we've done a reclassification of the way we are reporting our segments. If you could just give a ballpark sense, I was not able to find details on the same area, then maybe I'll look at that and not take the question ahead. But in case not, if you just want to highlight what are the changes, or the reclassification that you've done in terms of reporting the numbers.
Amit, you want to take that please?
Yeah.
I was referring to the operational numbers, not the earlier reclassification that we had done last year.
Mm.
So operational numbers, we have, Nihal, we have not done any reclassification. What you see in the sheet for the result is because we started reclassification from Q4 last year. So as per the requirement, we have to show a comparative of that. But as such, in this quarter, no further reclassification has been done.
I was referring more to the presentation, actually, where even if I add up the mattresses, both on Small Town India, offline and online, the numbers seem different from what we had reported last time in terms of volumes.
Maybe, Nihal, I think you would need a more detailed discussion. I think those numbers are in tandem, but in case you feel there is something different in the numbers in your perception and mine, we can, we can set up a separate call and discuss.
Sure, I'll just take that offline then.
Sure.
The second question was on Furlenco, that as the business is planning to get more into the sale of furniture rather than renting, is there gonna be a significant capital requirement for that business? And if it is, then how do you plan to finance that?
Nihal, I would just request you, if you can, speak a little, little up the volume or just a little louder.
So sorry.
I'm not getting you very clearly.
Am I audible now?
Very much. So much better. Yes, thank you.
Yes, I was just asking, but in case of Furlenco, with the business obviously contemplating going more deeper into the purchase and say, the sale of furniture also, would there be a change in the or a higher capital requirement in the future, and how would that be financed?
So we take that as a sort of second phase that we do. As I said, the first phase is just to make that profitable, and we are progressing on that part of it. The second phase, which we would sort of start softly beginning, is the furniture, which is going to be sold through our stores or through online. Let me just say that the capital that will be required for those assets will be generated from this business itself. We will not be requiring any more capital.
That is clear, Rahulji. Thank you so much.
Thank you. And the next question is from the line of Aniket Kulkarni from BMSPL Capital. Please go ahead.
Am I audible? Hello.
Hello.
Am I audible?
Yes, but a little muffled. Can you make it a bit louder? That will be helpful.
Yeah. Is this better?
Much better. Thank you.
Yeah. Yeah. So, I have a couple of questions. So, you know, post the acquisition coming onto the books, can you guide what will be the goodwill and PP number on a full year basis?
So, Aniket, I think we are doing the math on that. I mean, how this allocation is going to be done. We have the current assets and the fixed assets, those are clearly classified. The balance is to be divided between brand and goodwill and franchising and all those kinds of things. Amit, am I right that we'll take a little more time on allocating those, getting those numbers?
Yes, you are right, sir. So the PPA is under, underway. It is being done currently. You can see, since you have the balance sheet of Kurlon, so whatever tangible assets are there would remain as tangible assets, and the rest will be all intangible. Whatever name it will be defined with, that is under progress. Whether it will be goodwill or customer contracts or franchisees or any other intangible, which Rahul sir is mentioning.
Okay. Okay. All right. And secondly, you know, now the net worth has gone up to INR 2,900 crore post the QIP, which you did. So based on this high net worth now, can you manage to do, let's say, 18%-20% ROEs on this new equity base, couple of years down the line, once all the businesses synergies are... synergies flow through and, you know, you can operate both of the businesses together. So would you be able to do some-
... Amit, I would want you to, yeah, I would want you to take it. Although I just want to say that, as far as this call is concerned, it is still the acquisition which is over and things are settling down. So this is going to be, I think, the question from Aniket is a little bit, I won't say futuristic, but, you know, trying to get a sense of how or what we are looking at in the next couple of quarters. So but, Amit, you please take the question.
Yes, Aniket, just, before I, detail it, I think we are pretty confident of getting to the numbers that you have just mentioned. So you see, we were the, largest brand in the country, with Kurl-On being the second largest brand in the country. And, with the acquisition of these brands, the two brands together, are now, like stronger in almost all parts of the country. So if you refer within the branded segment, in any part of India, one of the two brands is the leader in those places.
This gives us multiple benefits, which we have outlined earlier also, so I would not repeat them, but just for the sake of recall, there are benefits in terms of footprint across the country, so you can reduce your freight costs. There are efficiencies or expertise of the respective companies. Kurlon has a high level of expertise in rubberized coir, making those coir, which we used to buy from outside. We manufacture foam much more efficiently than Kurlon. Approximately our yield is 10% higher to them. We are able to service our customers from the nearest distance possible, so our freight cost is going down. So, these are the things which definitely yield, would yield tangible benefits to the bottom line. But what is important here?
Important here is that our ability to penetrate the Indian market and to increase our market share is now much more robust. So the next thing that we are looking on is to enhance our presence and market share in the market. And I think, with that being in place, the figures that you are mentioning are very reasonably achievable. Does that answer or if you have something-
Yeah, yeah, yeah. No, no, it answers my question. Thank you for the detailed answer, and best of luck for the coming quarters.
Thank you.
Thank you. Ladies and gentlemen, please press star and one to ask questions. The next question is from the line of Arjun Khanna from Kotak Mahindra Asset Management. Please go ahead.
Thank you, sir, for taking my question. The first question is on our marketing expenses. We have broken it out at roughly 8.6%. Essentially, I understand we had the Cricket World Cup, where we had indicated in the previous quarter we would look at advertising a lot more. But just to get context to this number, since it would also include the Kurlon acquisition. So in a sense, if you look at numbers, we are spending, if you look at the non consumer business, and please correct me, the technical foam ideally wouldn't have too much of marketing expenses. And if one looks at comfort foam, that too may not have too much marketing expenses with furniture cushioning.
It's largely the marketing is for the mattresses. Is that the right understanding?
Yes, that's right. Largely, yeah.
So if that's the case, if one-
Go ahead.
Sir, if that's the case, then potentially the advertising seems to be very high for a turnover of close to INR 350-370 crores to spend roughly INR 45 crores+ . So just wanted to get context.
Yeah. Should I take that, Sanjeev?
Yeah.
Yeah. So yes, you are right that the current spends are mostly on mattress. However, having said that, there are some expenditures that also happen on the technical foam, et cetera, which is like participation in exhibitions, brochures, so on and so forth. So there is a certain level of spend, but the high spend obviously happens on mattress. World Cup, we have to remember, is a very high impact property, so these media costs come at a far higher CPRP. So going forward, we will continue to be invested on the brand. The level that which we will operate is around 6.5 to the overall total. So that's the way that we are looking at it. World Cup is at a far higher premium.
It creates an impact, in the consumer's mind, and we have seen the results. But then obviously, every quarter, you don't need to have that level of spend, because you may not be taking impact properties.
but with a large-
Arjun, I just want to sort of butt in at this time. And just to add to what Nilesh said, I see the point that you are making, but let me say that even the other parts of the business do get impacted by the salience or by the brand equity of Sleepwell. It may not be a direct one. It's not completely correlatable, but it does impact. So whether even if when I'm going ahead to sell a technical foam or I'm going ahead to sell a furniture foam, I mean, there is this issue of saying that this is just Sleepwell, the company, or this is just Sleepwell, part of it, number one.
Umbrella branding.
I'll say, yeah. Number two, I just also want to add that the flavor that we are now doing or changing the direction, and that you would notice in the last quarter, is that we are consolidating all the other small little brands here and there, which may have been additional or which are part of the industrial side or the furniture side, and focusing on Sleepwell. And the percentage of Sleepwell in the business is on the increase, and that will keep on increasing. So what you would see in another year's time is that instead of, let's say, 55-60% of Sleepwell to 70% or 75%. And then you are quite right, that this kind of a spend on Sleepwell will make more sense. But that's the direction that we are going.
Perfect. Very helpful, sir. Sir, the second-
Sorry, just to break this 6.5%, which, Nilesh and Rahul here just mentioned, this is a combination of advertising expense plus dealer expenses that we do. So around, say, 1.5% or should be dealer expenses, which is done for all the brands. Just to make it a little bit clear.
Sure. And sir, since you are giving a breakup, what would we be spending, say, on the other items, as in the non-mattress segment, in terms of the technical side?
figure I would not be able to, off the cuff, tell you, but as Amit just now mentioned, the kind of expenses there would be on dealer needs, exhibitions, brochures, et cetera, that we would be doing. But when we look at the overall expense for marketing, we look at it at the total business level, and that's how we allocate.
Fair. Fair. Sir, the second question is on Kurlon. Now, we have mentioned that we have a trajectory to reach 10%. I just want to understand, given that now it is within our fold, do we have some sense in revised timelines? When do we see this moving closer towards 10%? And in terms of synergies, the fact that now it's within the fold, you all would have better access to data. How do you all see those synergies pan out, and how has it changed versus what we envisaged before the transaction?
So, Arjun, I would, I would say that the first job was really to really get it to the normative levels, the normal levels of about INR 1,000 crores and about a 10% EBITDA. And I think on a run rate basis, we may have come very close to it already. So I, I'm not saying too much of time going by before we get to that levels. The synergies, some have started, the coming in. The impact would be felt in this quarter or maybe the quarter after that, which is the operating synergies, which is the procurement of raw material synergies, which may be on the formulation synergies, et cetera.
So, the impact should, or has already begun, and, I'm not going to revise the timeline, but I would say that, by the time we close this quarter, you would see that. Amit, is that, is that right, that you would begin to see these changes?
Yes, sir, you are right. So, the advantage that we had here was that we started execution of synergies right on the very first day, that is the twenty-first of October. So that strategic advantage has led that in current quarter, in, though not for the full quarter, it will be spread over the quarter, but yes, a large part of the synergy will be in operation and yielding results.
I'm sorry, could you please repeat that, sir? You're saying a large part of synergies are already within these numbers?
No, no, I'm not saying. I'm referring to the current quarter, which is the January-
Okay.
-March quarter.
Fair. Fair.
So we started execution on 21st of October, like, working on those synergies. And, during this quarter, one by one, those synergies are getting implemented. So what I'm saying is, it will not be like, all the synergies for one fourth of a year, but yes, over a period of, the quarter as it gets implemented, the net of it would be visible in the bottom line for this quarter.
Sure. Very helpful, sir. Sir, the last question is, just on the, exports, part of it. There was an anti-dumping, duty proposed, on, mattress exports from India, to the U.S. So, just wanted to understand, has it finally come? What is the duty that has been proposed, for us? And, in terms of our exports, we had a set up a plant, for the same. Could you talk about its current, utilization, and what is our, thought process on the same? Thank you.
So, basically on the export side, I think what I mentioned last, in the last meeting, it continues to be the same. Exports have become very, very difficult to carry out because U.S., which was the main importer, has already imposed it. The import duty is something like 20, between 27% and 30%. And that is just too much for this product to call it travel and be there. Are there going to be any change in that? Probably not. And let me say that most of the manufacturing of these kind of mattresses has now become centralized in the U.S. for the U.S. market.
I mean, would you believe this, that they have even changed the NAFTA rules, and from imports from Mexico, which is next door, are also being, you know, levied to some anti-dumping duties. Coming back to your question of saying the unit that we had set up, so the unit was not a foaming unit, it was a mattress manufacturing unit. And, you know, with, with all the modern equipment, et cetera. And, let me say that today we have centralized the production of Kurlon and Sleepwell mattresses in that unit, and that's, you know, that's, that's just fit in excellently, for supplying to, to the western part of the, of, of, of India. Kurlon was supplying mattresses Bangalore to the west. Now it is from west to west, so that's a synergy that, that will be there.
But that unit is, has already begun, and it's completely being utilized. In fact, this is one of the units which is also close to Mumbai, where most of you are located. We would have an open invitation for people to come and visit it. It's also one of the modern mattress manufacturing units. So we are happy that we are able to do that.
Sure. So essentially, the product has been, I mean, the facility has been repurposed. Thank you.
Yes.
That's clarified. Thank you.
Thank you. The next question is from the line of Bhavin Rupani from Investec. Please go ahead.
Hi, sir. Thanks for the opportunity. My first question is related to Australia and Spain entities, sir. Could you provide some update over here, as we could see revenue and margin pressures to continue in this quarter as well?
Bhavin, thanks for the question. Let me first take up Spain, which is part of Europe. Europe has been experiencing almost 25%-30% of a recession, but I already mentioned that we are an extremely small, small part, or we have a very small share of the entire European market, and therefore, the impact on us, as far as the quantity is concerned, has not been much. In fact, we have reclaimed all the quantity. The issue there is that because of the raw material prices kind of coming down, the top line has reduced. I think it's like 10%-12%. And margins are retained, absolutely, but however, they are on a lower top line.
And that's because of the prices of the material that has fallen. The current position is that the trends of increasing or the direction the curve changing the direction has already begun. It will take, maybe it take another one or two quarters before it gets to the normal levels. But we have not lost any volumes. In fact, by the end of this quarter, we would actually be increasing volumes, so that's good. As far as Australia is concerned, it's a pretty steady state. It's not increasing too much, but it's not increasing. It's decreasing a little bit, but that's just again because of the raw material prices and because of some regional disturbance that happened.
But it will be, as I said, in the... It won't increase tremendously, it won't decrease much. It will be a pretty steady state, and we would be expecting it, you know, kind of this quarter that it's kind of come back. But I think it's just the economies need to stabilize, the global economies, which impact both Australia and Europe. And these things will be, as I said, moving steadily forward. Spain, of course, we would keep increasing because we are at a very small percentage of the market.
All right, sir. And, any update on the capacity expansions, over there? Is it done?
Yes. In Australia, we've already done. It is commissioned, and we are at the moment in the process of transferring some materials, and have also begun to look at a segment of the market which we were not catering to, which is the furniture segment. And now we should see the increase in the volumes and obviously, the top line will also increase. That unit is commissioned, it had started operating in the first week of January around the tenth of January, and the impacts would be seen now.
Got it, sir. Just one clarification, sir. You have mentioned that, in PPTR, volumes are approximately 634,000 in Q3 FY 2024. Mattress volumes, what I'm referring to. Is it a combination of both Kurlon and Sheela Foam?
Nilesh, you want to take that?
Yeah, that is a combination of both.
Previous year?
Previous year, it is challenging-
474. So, so it has been taken in this figure for the period for which Kurlon was in our control. So previous year does not include Kurlon volumes.
All right. So is it possible to provide the breakup of the current year for Kurlon and Sheela Foam?
We will create that. Let's do that.
Yeah. Maybe we will send it separately.
Yeah.
All right, sir. Thank you.
Thank you. As there are no further question, I will now like to hand the conference over to Mr. Amit Kumar Gupta for closing comments.
Sorry, maybe, Rahul sir, should I take it, or would you like to?
Yes, please. Go, go ahead. Go ahead.
Okay. Thank you, sir. Thank you everyone for participating in this earnings, earnings conference call. I hope we have been able to answer your questions satisfactorily. If you have any further questions or would like to know about, more about the company, please reach out to our IR manager at Valorem Advisors. Thank you.
On behalf of-
Thank you, everyone.
... equities, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.