Ladies and gentlemen, good day and welcome to Q1 FY 2027 earnings conference call of Tega Industries Limited, hosted by MUFG Intime. As a reminder, all participant lines will be in 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 will now hand the conference over to Ms. Sakshi Mehta from MUFG Intime. Thank you, and over to you, ma'am.
Good evening, everyone, and welcome to the Q1 FY 2027 earnings conference call of Tega Industries Limited. Today, we are joined by the senior management teams of Tega Industries and Molycop. Representing Tega Industries are Mr. Mehul Mohanka, Managing Director and Group CEO, Mr. Ravi Joshi, Chief Financial Officer, and Mr. Pratik Basu Roy, President, Product Management, Global Sales and Marketing. Representing Molycop are Mr. Lance Dawber, Chief Operating Officer, and Mr. Patrick Koley, Chief Financial Officer. I would now like to hand over the call to Mr. Mehul Mohanka for his opening remarks. Thank you, and over to you, sir.
Thank you, Sakshi. Good evening, and a warm welcome to all the participants on the call. It is always a pleasure to connect with our valued investors, analysts, and stakeholders. This evening, I am joined by Sourav Sen, CEO, Tega McNally, Pratik Basu Roy, President, Product Management Group, Ravi Joshi, CFO, and from the Molycop team, I have Lance Dawber, Chief Operating Officer, and Patrick Koley, CFO. I am pleased to share that Tega Group delivered a strong quarterly performance reflecting the resilience of our business model, the strength of our market position, and the successful integration of Molycop into the group. On a consolidated basis, the group reported revenue from operations of INR 17.2 billion, significantly higher than the prior year, reflecting the scale and diversification benefits of the combined platform. Consolidated EBITDA before one-time expenses stood at INR 2.6 billion, delivering an Adjusted EBITDA margin of 15%.
During the quarter, we incurred one-time expenses of INR 1.9 billion, primarily related to acquisition and integration expenses. Looking at our legacy Tega businesses, performance remained robust across key segments. On a consolidated basis, Tega delivered another strong quarter. Revenue increased by 21% year-on-year to INR 4.3 billion, while EBITDA grew by 42% to INR 1 billion. EBITDA margins improved to 22.1% from 19.1% in the prior year, highlighting our focus on profitable growth, operating leverage, and disciplined execution. Importantly, the business continues to be supported by a healthy order book of INR 12.3 billion, providing strong visibility for future revenue and reinforcing confidence in the underlying demand environment. In the Tega consumables business, revenue grew by 36% year-on-year to INR 4 billion, while EBITDA before one-time expenses increased by 58% to INR 1 billion.
EBITDA margins expanded to 24.1% compared with 20.9% in the prior year, representing a significant improvement of 320 basis points. This performance reflects sustained customer demand, operational efficiencies, and continued focus on value-added solutions. The equipment business experienced a softer quarter with revenue of INR 358 million compared to INR 643 million in the prior year. EBITDA was broadly breakeven during the period. The revenue shortfall was primarily attributable to delays in customer clearances, while profitability was impacted by operating leverage arising from lower volumes. Despite the near-term challenges, we remain confident in the long-term prospects of this business and continue to focus on strengthening our project pipeline and order conversions. In Molycop, we are encouraged by the progress achieved since the acquisition.
Molycop contributed INR 12.9 billion in revenue during the quarter and generated EBITDA before one-time expenses of INR 1.6 billion, representing an EBITDA margin of approximately 13%. We incurred INR 1.95 billion of one-time acquisition and integration related costs during the period. The integration process continues to progress well, and we remain focused on unlocking both commercial and operational synergies across the combined businesses. Overall, the quarter demonstrates the strength and resilience of our combined businesses. We are seeing encouraging momentum across our business lines, continued margin expansion, and healthy customer demand across key markets. As we move forward, our priorities remain focused on delivering integration synergies, enhancing operational excellence, and expanding customer relationships while leveraging cross-selling opportunities across both Tega and Molycop.
We remain confident in our strategy and the long-term value creation potential of the combined Tega and Molycop platform, and we are committed to delivering sustainable profitable growth for all our stakeholders. Based on industry expert forecasts, the global gold market is expected to grow at approximately 2.2% CAGR through FY30, while copper demand is projected to grow at around 4.8% CAGR, resulting in a blended market growth rate of nearly 3%. Given Tega Group's platform, strong presence across key mining regions, and its exposure to both gold and copper end markets, the company is well-positioned to benefit from these favorable industry fundamentals. The outlook for both the grinding media and mill liners industries remain robust, supported by continued investment across the global mining sector. According to UNCTAD, global copper demand is expected to increase by more than 40% by the year 2040.
This demand will require approximately $250 billion of investment and the development of nearly 80 new mines. These investments are expected to drive higher mining activity or processing volumes and demand for critical consumables such as grinding media and mill liners. The combined platform is well-positioned to capitalize on attractive growth opportunities across the mining value chain. Supported by strong underlying demand from existing operations and new project developments, both Tega's legacy business and Molycop's core businesses are expected to deliver growth ahead of the broader market over time. For us, growth in mill liners as well as grinding media will be supported by increasing adoption of high-performance hybrid liner solutions and a continued focus by mining operators on improving throughput, productivity, efficiencies, as well as expanding mine production, declining ore grades, and increasing ore processing requirements across key commodities.
In Molycop, we have adopted a phased and disciplined integration approach. We expect to realize approximately $20 million of synergies in the next two to two and a half years. The principal value creation initiatives include optimization of expenses, SG&A costs, operational efficiency improvements, procurement synergies, and leveraging the combined scale of the Tega Molycop platform. Our focus remains on sustainable value creation while ensuring business continuity and customer service excellence. I want to thank our employees for their unwavering commitment, our customers for their trust, and you, our investors, for your continued support. We are committed to delivering sustainable value and transparent communication. I would now like to hand over to Ravi, who will walk you through the group's performance. Thereafter, Lance and Patrick will take you through an update on Molycop's performance. Thank you.
Thanks, Mehul. Good evening, everyone, and thank you once again for joining the call. Firstly, I would like to express my sincere gratitude to the board of directors and management team for the confidence they have placed into me. I remain committed to upholding the highest standard of corporate governance, compliance, and transparency by driving sustainable value creation for all the stakeholders. Before moving to the quarterly performance update, I would like to emphasize that this is the first quarter in which Molycop's performance for the month of June 2026 has been consolidated into Tega's financial result of Q1 FY2027. Overall, Q1 FY2027 was a strong quarter for the business. The group's overall income, even excluding Molycop, increased by nearly 23% compared with the corresponding quarter of the previous year. For better clarity and transparency, we will be reporting consumable Molycop business and equipment separately.
Accordingly, if we talk about the segment performance for this quarter, consumable business revenue from operations net of intercompany transaction stood at INR 3.96 billion in Q1 FY2027 compared to INR 2.91 billion in the corresponding quarter last year, reflecting an increase of approximately INR 1 billion or 36% year-on-year. Equipment business revenue from the operations was INR 0.36 billion, compared with INR 664 billion in Q1 of FY2026. This translates into de-growth of almost 44%. This is mainly due to the delay in the customer clearances. During the quarter, the consumable business Molycop and equipment business contributed approximately 23%, 75% and 2% respectively to the group's revenue from the operations. The total order book for the consumable and equipment segment stands at INR 12.3 billion, out of which executable within one year is approximately INR 9.6 billion.
Excluding Molycop, the group maintained healthy gross margins of approximately 62%, compared with 59% in the corresponding period last year, despite raw material price volatility, global macroeconomic uncertainties. Molycop reported gross margins of approximately 36%. Excluding Molycop, the group recorded total income of approximately INR 4.5 billion in Q1 FY2027, with an Adjusted EBITDA of INR 1 billion, translating into EBITDA margin of approx 22%. By comparison, in Q1 FY2026, the group reported income of INR 3.72 billion and Adjusted EBITDA of INR 0.71 billion, which was approximately 19%. Including Molycop's one-month contribution for the month of June 2026, consolidated group income for Q1 FY2027 stood at INR 17.41 billion, with an Adjusted EBITDA of INR 2.64 billion, representing an EBITDA margin of approximately 15%. These EBITDA numbers are without taking into consideration of one-time exceptional expenses related to the Molycop acquisition of INR 1.9 billion.
Additionally, for acquisition of Molycop, in accordance with Ind AS 103, the group has recorded the assets and liabilities acquired through this business acquisition, currently determined on a provisional basis, resulting into recognition of goodwill amounting to approximately INR 50 billion. This remains subject to finalization within a period of one year in accordance with Ind AS. Post-valuation of this process, the final allocation of purchase consideration to the acquired assets and assumed liabilities will be adjusted as necessary within the measurement period. I would like to emphasize that this quarter includes only one month consolidation of Molycop performance. It would be premature to draw conclusions regarding the full-year outlook based on this number of Molycop. We expect to provide greater insight into the combined business and annual performance trajectory over the coming quarters.
That said, we are pleased to note that Molycop's June 2026 performance, both in terms of revenue and EBITDA, was directionally ahead of our expectation at the time of the acquisition. Thank you for your time and attention. Now I would like to hand over to the Molycop team.
Thank you, Ravi, and good evening, everyone. Lance Dawber, COO here. The copper and gold markets have remained strong after earlier this year, with current copper price over $14,000 per metric ton and gold price trading around $4,400 per ounce. Copper prices have been driven by the constrained global mine supply, while demand from electrification, renewable energy, grid investment, and AI-related data center infrastructure continues to expand. Gold prices have remained elevated despite periods of volatility, supported by ongoing geopolitical uncertainty, inflation concerns, government spending trends, and continued demand for safe haven assets. Overall, these market conditions continue to support investment and production across many of our key customers. PT Freeport Indonesia continued to advance the phased recovery of the Grasberg Block Cave operation following the September 2025 mud rush incident. Production Blocks 2 and 3 achieved planned operating rates during the quarter.
Infrastructure upgrades remain on schedule, and Freeport continues to target a full return to planned operating capacity by the end of the calendar year 2027. In Panama, momentum also continued to build toward a potential restart of the Cobre Panama mine. In April of 2026, the Panamanian government approved the processing of stockpiled ore while discussions continue regarding a long-term operating structure. First Quantum reported 2.1 million tons of ore processed and approximately 3,200 tons of copper produced by the end of the quarter. I will hand over to Patrick to provide some brief remarks on our performance for the quarter and highlight the financial impacts from the transaction.
Thanks, Lance. We are very excited about the combination with Tega and look forward to the opportunity this partnership will bring. For the one month ended June 30, 2026, we had Adjusted EBITDA of INR 1.6 billion, which is equivalent to $17.2 million. Our one-month Adjusted EBITDA for June 2026 increased 3% over the prior year period, driven by increase in ship volumes compared to the prior year, and partially offset by product mix and higher operating expenses. These results provide us with good momentum as we further develop our strategy under the Tega ownership. As Mehul mentioned, we closed the transaction on June 1st, with our Q1 IFRS results reflecting provisional purchase price accounting. The balance sheet reflects the new equity contributed to Molycop included in members' equity.
Our balance sheet shows a goodwill of INR 49.96 billion, or $528 million at June 30th. Our Q1 results were impacted by transaction-related costs of INR 1.85 billion or $19.5 million, which are pro forma adjustments to provide more meaningful run rate numbers. The transaction also involved the restructuring of our senior secured debt. Through refinancing and the use of new equity, our debt reduced by approximately INR 22.25 billion or $235 million at closing.
Total net debt declined by roughly INR 32.18 billion or $340 million during the quarter, ending at INR 63.66 billion or $672.5 million as of June 30th, which is compared to INR 95.8 billion or $1.0 billion at March 31. This de-leveraging meaningfully strengthens our liquidity position and provides increased financial flexibility to invest in the business while maintaining a disciplined balance sheet. Now, I'd like to hand the call back over to Ravi for instructions on how to ask questions.
We can start the Q&A.
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 comes from the line of Ankur Periwal from Axis Capital. Please go ahead.
Yeah. Hi, sir. Thanks for the opportunity and congratulations on a good performance. First question on the strategy on the combined network bit. While you did mention $20 million of synergy benefits. But if I got it right, it was largely coming from the cost efficiency overhead, et cetera. From a revenue ramp-up perspective, in terms of cross-selling our products as well as capitalizing on Molycop's network, how do you see the revenue ramp-up here in both the businesses?
Yeah. This is Mehul. We expect the revenue ramp-up to actually happen from Q3 to Q4 onwards of this fiscal year. It is still very early days. We are getting our teams together and strategizing across different markets. As we mentioned earlier in the strategy rationale for the acquisition, there are markets where Tega is strong and Molycop can leverage off Tega's customer relationships, and vice versa. Both products have the same customer across geographies, and that process is on in terms of being able to identify those cross-sell opportunities. So request a couple of quarters of patience with us, and we will be able to give you a more definitive number around it.
Sure. No worries. Just on Molycop, while we appreciate you sharing the details separately and giving the details on the volume side as well. Just for our understanding, these volume numbers or the revenue realizations, et cetera, the margins part, these are steady state number, one should believe it to continue, or there is a seasonality angle here which plays out both in terms of quarterly or on an annual run rate basis? Secondly, any RM inflation or any global macro being very volatile, is there any one-off cost or benefit that you would have accrued here?
This is Patrick. From a Molycop seasonality basis, there is not much seasonality on a quarter-to-quarter basis. Historically, our historical fourth quarter, which ended in June, which is now our first quarter, was our highest period quarter. But given the results that we provided are for one month, you need to look at Molycop on a quarter basis, because you could have some volatility from one month to another month.
Sure.
You really need to look at it on a quarter-by-quarter basis.
Appreciate that, Patrick. From a margin trend line perspective, 13 odd percent margin here, that looks like steady state for you?
The margin should be relatively flat in the upcoming quarters. One thing that I would recommend is that Molycop typically looks at a per ton number rather than a percentage of sales. The reason why is that a majority of our customer contracts are tied to a steel industry. As the price of steel goes up and down, you may have some movement in our revenue number.
Sure.
But the way we have structured it protects our gross margin. We look at things both on a percent of sales, but we focus more on a per ton number when we are analyzing our internal results.
That is great to hear, Patrick. Thanks for the clarification. And sir, lastly on the Chile plant commissioning. Any updates over there, if you can share? Thank you.
Yeah, the Chile plant is on track. We are looking at a soft commissioning around January 2027, with commercial production starting March. Of course, this is subject to receiving certain regulatory approvals locally. So we will have to, once the construction is completed, approach the local authorities for certain clearances. We expect that to be received within a two-month window, but it is anyone's guess at this point. So keeping that into account, we are saying March should be around the time when we go into commercial production.
Okay. Great, sir. And just one bookkeeping question, if I may. The one-time expenses that we booked in this quarter, and there were some INR 70, INR 80 crores or that you booked in the last quarter. This will be it, or there could be some more recurring such sort of one-time expenses which one should be aware of?
This is it. We have factored in everything into the Q1 results.
Sure. INR 110 crores this time and around, let's say, INR 75-INR 80 crores last year. INR 190 crores in all. Yeah.
Yeah, that is correct.
Cool. Thanks for all the answers, and all the best. Thank you.
Thank you. The next question comes from the line of Vikas Gupta from Wealth Guardian. Please go ahead.
Good evening, sir. I just wanted to ask some information on the total debt at Tega as well as at Molycop level. Can you just help me out with that?
Hello? Just give us a second.
Sure.
Yep. So total debt at the group level is INR 112 billion, which includes redeemable preference shares of around INR 26 billion.
At Molycop level?
The Molycop level net.
Go ahead, Pat.
In U.S. dollars, the net debt number at June 30 was $672 million.
How do you look this number coming to by the end of the year?
Our debt, primarily our ABL, will fluctuate during the year, primarily related to the timing of our bar payments, which bar payments are approximately 80% of our cost of goods. That is a significant payment that you'll see. But we anticipate that that net debt number will go down between now and the end of the year.
My next question is on the CapEx. How much is the sustenance CapEx at Molycop level and what's your next two years plan?
This period is kind of a unique period because we have a 10-month period. Typically on a 12-month run rate basis, you'd see Molycop have CapEx somewhere in the low 30s. For this 10-month period, I would anticipate our CapEx somewhere being in the high 20s. $28 million would probably be a good estimate right now.
And any plan for the next two years?
The plan for the next two years, as I suggested earlier, would be somewhere in the low to mid 30s, depending upon some opportunities we have for some expansion. But I'd say the ongoing normalized capital for Molycop would be in the low $30 million.
Okay. That's it from my side. Thank you so much.
Thank you.
Thank you. A reminder to all the participants, to ask a question, please press star and one. The next question comes from the line of Varun Jain from Dolat Capital. Please go ahead.
Yeah. Hi. Good evening, sir. Congrats on completing the transaction. I have a couple of questions. Firstly, on the Molycop, I tried to calculate the realization, so it was coming to close to INR 118 per kg. Can you tell us how this moves versus the steel price? Steel price is, I think right now, roughly INR 60, INR 65 in that range.
Is the question around the movement of revenue? As Patrick said earlier, around 85% of our contracts have a movement based on steel indexes. So when steel goes up, revenue goes up, and similar to if it moves downward, our revenue will move downward. As Pat said, internally, we focus on a per ton basis of margin, is the way we measure internally.
Cool. What is the number per ton which we are aiming for, like INR 15,000 or something like that?
Yeah. We do not forecast really an estimated per ton number. When we do our internal forecast, we keep the revenue number per ton on a constant basis, because we cannot tell what the price of steel will be in the various countries that we operate. As Lance mentioned earlier, we have the steel formulas, and those formulas will vary depending upon the region of the world that you are in. Again, we are focused on making sure we maintain our profit per ton. You will see some volatility in our revenue per ton. It will either go up or go down, depending upon the various steel prices around the globe.
Got it. Sir, for the last full operating year, what was the volume of Molycop and what is the volume growth expectation in the next couple of years?
Sure. For the 12-month numbers that we had for Molycop, let me just grab that right here. The volume was slightly down year-over-year. The revenue followed that as being slightly down, but the EBITDA on a 12-month period was up 11% year-over-year, ended up at $191 million, and that is up from $172 million from the prior year. That growth is a combination of maintaining strong cost controls, as well as better bar procurement and control of our SG&A. If you look to the future for the 10-month period, you will see that our volume will probably grow approximately 5%, and our EBITDA will grow around 4% on a 10-month comparable basis. Just keep in mind, we are still early on into this acquisition and we will provide more formal long-term guidance as we move throughout the year.
Sure, sir. But what was the absolute number of volume for the last financial year? What percentage of that was from Latin America? Because we have been hearing that in LATAM, the competition in forged media has increased because of China.
Sure. The volume for 12 months ending in June 2026 was 1.204 million tons, and for June 2025, it was 1.223 million tons.
LATAM share, and any comments on the Chinese competition?
Yeah. If you look at the Chinese competition, the way we approach our business is that, it should be viewed in the context of Molycop's long-term history and market position. We have been competing against all competitors, including China, for decades. We have consistently maintained our leading position across our core markets. We focus on Molycop's strength, and we are strategically located with our manufacturing footprint. It enables us to have shorter lead times. Our technical support is strong, and we really tailor our service to the customer requirements. That is what we focus on, and customers place value on that reliability, product performance and local support.
Got it, sir. Just a couple of questions for the Tega team. What will be the FY 2027 total finance cost that will be there, and how much debt will be reduced? When FY 2027 end, what will be the debt position?
I can tell you from a Molycop perspective for the 10-month period, again, this is just for 10 months, interest and principal will be right around $70 million.
Tega finance cost will be around INR 110 crore to INR 120 crore for the full year basis.
For the full year. Got it, sir. What will be the total CapEx of Tega and Molycop for FY2027?
Again, from a Molycop perspective, I would use the number of $28 million for our, again, 10-month period of CapEx.
Okay, sir. On Tega, total CapEx for Tega and Molycop.
Tega, excluding Molycop, will be $40 million approximately, including Chile.
Okay, sir. Got it. Thank you. I will come back in the queue.
Thank you. The next question comes from the line of Chirag from Centrum Broking. Please go ahead.
Yeah, thank you. And thanks for the opportunity. Sir, so majority questions are answered. Just a couple of more things. Sir, firstly, on the grinding media, for Molycop, if you can highlight what kind of market share we have, and among the regions, how is our sales mix? So what regions contributes to what percentage of sales?
Yeah, look, at a high level, in regions where we operate, given our local supply, our local service capability, we are above 50% market share in our core regions.
Okay. And is it possible to just give a brief qualitative comment on the regions? So, which are the regions which are our strength, and what percentage they contribute to our sales?
Yeah. If you look at where copper and gold is produced, that will give you a pretty good guide as to our regional volume breakdown. So if you think about South America being the largest copper-producing region in the world, that is where our largest volumes would sit. And similarly with North America, it is a very major gold and copper producer, as is Australasia. And then in Africa, that is our growing region where we are recently targeting. And on the back of the acquisition, we do see some growth in Africa due to Tega's strength in that region. So that would be a summary at a broad level.
Okay. On the consumable business of mill liners, for the current year, what kind of growth and margin numbers should one build in? Will there be an acceleration of growth considering the synergies with Molycop of the cross-sell opportunities that you spoke about?
Yeah, so we are maintaining our guidance of about 15% CAGR on the consumables. On the Molycop cross-sell opportunities, as I earlier mentioned, responded to a previous question, we are in the midst of getting that together in terms of putting those numbers together. We would take a couple of quarters to be able to get our head around it and be able to give you some guidance on the cross-sell opportunities. But it is going to be accretive and incremental to our current growth rates in the consumables segment.
Okay. Even EBITDA margin profile of consumables of 22%-23% annually, even that looks sustainable, considering cost inflation because of commodity cost, et cetera?
Yes. In our business, we are able to successfully pass through those quite well. There is about a one-quarter lag before we can do that, but we have been able to pass through, and that is why you will see our gross margins also at 62 odd percent levels are holding in spite of the current geopolitical conditions.
Okay. Lastly, sir, considering various shipping-related challenges, container availability or rising freight costs, has that played any role in terms of deferral of shipments?
We haven't seen much of deferment, but yes, that does contribute in terms of logistic challenges, in terms of container availability, frequency of mother vessels coming to port. But we are able to work this through with our customers and be able to get product to customers on time as of now.
Okay. Okay, sir. Thank you.
Thank you. The next question comes from the line of Rushabh Doshi from Nirmiti Investment Advisors LLP. Please go ahead.
Yeah. My question is related to the last part of Ron's question. Are we seeing any inflation in freight costs, like for both the businesses in this year?
I will answer for Tega, and then Lance can probably take that for Molycop. From a Tega perspective, we have seen container prices go up in different geographies that we ship to, but we have that in our contracts with customers that we are able to pass through those freight increases. Like I mentioned earlier, it takes us about a quarter to be able to pass that through, but we have been able to do that. Yes, freight costs have gone up, and we do pass that through.
And for Molycop?
Yeah, from a Molycop side, we ship both some on ocean and land. If you look at land costs, it is affected by gas prices, and there we have been effectively able to pass that through. On the ocean freight side, Molycop has a good, solid risk policy, and we have been able to hedge some of our freight rates looking forward. Yes, freight rates have gone up, but we have not seen a direct impact to the P&L on that.
Okay. Also, like earlier we had mentioned that we have identified some non-core assets, which we can divest to reduce our debt. Could you just share some more details regarding that?
Yeah. We are in the process of identifying those non-core assets. There are a couple of non-productive land parcels that we are currently evaluating opportunities liquidating them. As and when that does happen, we will be using those proceeds to pay down debt.
Okay. My last question-
I would just-
Yeah.
No, I just wanted to add to that those particular opportunities do not have a material impact whatsoever on Molycop's EBITDA.
Okay, thank you. My last question is from an Indian investor perspective, what all currency risks are we exposed to? Like on the balance sheet side and even on the P&L side.
This is from a-
Yeah, go ahead.
No, I was going to say from a Molycop perspective, we are USD-denominated entities other than our operations in Spain and also in Australia. We have a very formal and active risk program that we will hedge our FX exposure on a regular basis. In particular, for any contracts that are outside of that USD, we will hedge it immediately. We will also look at operating expenses on a local level and hedge that appropriately, to maintain and reduce any kind of volatility you will have with FX. Historically, FX has not had a material impact on Molycop's performance from the EBITDA perspective.
Okay. I just have a small suggestion. Maybe from next quarter, can we have a more detailed investor presentation, particularly focusing on Molycop? That is all from my side.
Thank you. The next question comes from the line of Nishita from Sapphire Capital. Please go ahead.
Yes. Am I audible?
Yes, please go ahead.
Yeah. I just wanted to understand. You mentioned that on consumable side, we are expecting a 15% growth year-over-year, but in Q1 we have already done a growth of around 36%. So are we being conservative when we say that we will have 15% growth or is there some seasonality which is going to affect our growth?
There is no seasonality and the 15% revenue guidance for consumable business on a long-term basis. There are a couple of items with respect to this quarter. Part of the Q4 orders got serviced in the Q1 so that is why it is not a comparable number so to say. But long-term guidance remains at 15% for the consumable business.
Okay.
That is what we feel is a sustainable guidance.
Okay. Understood. Yeah. On the margins front, for the full year, can we expect on the consolidated basis our margins to stay at the 15% level that we did in this quarter?
Yeah. We expect it to be in that range of 15 odd percent on a consolidated basis.
Okay. Understood. That is it from my end. Thank you so much.
Thank you. We will take that as the last question, and I would now like to hand the conference over to the management for closing comments. Thank you and over to you.
Thanks everyone for taking out time and joining for the investor call. We will keep you posted if there are any other developments which you are supposed to know. For any follow-up questions, please feel free to reach out to our investor relation department. Thanks a lot.
Thank you. On behalf of Tega Industries Limited, that concludes this conference. Thank you for joining us and you may now disconnect your lines.