From Hospitals To Realty To Consumer Stocks: Corporate India’s Big FY27 Bets | Business News

Ajouté : 2026-05-27

[00:00:00]Let me though switch focus back to Indian corporates. Man Sha joining us, managing director at man infra uh construction uh you know uh with regard to of course Q4 numbers but also with regard to how FI27 is expected to pan out. Great having you here Manan. Let me first start off by uh getting your take with regard to FI26.

[00:00:20]It's been a softish kind of a year when I'm looking at the numbers. uh uh you've you've degrone sharply versus your last two to three years in terms of the numbers that you've clocked some execution delays or or was this what was expected and what should FI27 hold will it be materially stronger on the kind of base that you did maybe in FI23 24 see FI26 was a year where we actually had a lot of uh acquisitions happening in and the results of 24 and 25 if you see it's the results of the previous acquisition. So what happened basically is in terms when you compare to revenue a lot of our projects are in DM model where the revenue does not uh come into our books and where you see it straight hitting the P&L and uh in case of FI26 that's what happened where a lot of projects were already sold and the cycle was just starting where we had acquired a few projects like our marine lines project uh tar project we've now announced um the bandra project as well so FI7 in fact is the year where we see the highest amount of launches coming and in fact it's a year which is completely uh going to break all records where we coming up with more than 1.1 million square ft of launches and more than 6 and a half thousand cr of GDV approximately and our Miami portfolio is also going in very strong where we're anticipating almost at a group level the GDB to hit more than a billion dollars.

[00:01:49]uh man can you also give us a sense of the kind of delivery that you you're planning for FI 27 in terms of completion of product projects because uh you know you recognize revenues based on that uh and what is the kind of cash flows that you are expecting.

[00:02:05]So in fact our bat cooper project which is one park is near completion by this December. We are anticipating the OC to be coming in. Uh atmosphere project is what which is at is almost near completion which is be uh which should be completed by next year. The first phase of our daiser project is almost about to get completed. So all of these projects will generate a a good liquidity over the next 3 years. In fact we are anticipating around a,000 cr of liquidity coming in comfortably. In fact, it should be much more. But to put a on a conservative number, we are seeing a,000 cr of uh liquidity cash flow which is getting generated from these projects which should be further deployed into the new acquisition that we are uh eyeing right now >> and and man just from uh uh an acquisition perspective you said FI26 was the year where you've continued doing acquisitions. What should therefore when should this revenue translate? Would it be FI27? would it be FI28 also both pre-sales as well as collections have declined for you so so that's the other metric that you typically track would that also start to strengthen going forward >> yes definitely FI27 and 28 put together we've targeted at least uh a pre-sales of around 5,000 cr putting together and uh you will see the profitability also going out like in terms of an outlook if you want to say like we're expecting more than a 25% of an year-on-year outlook uh in the coming years because now the quantum of the projects is much much larger. The ticket size of the project is much much bigger. Uh so we see a good revenue coming in uh continuously in terms of profitability also and pre-sales is also very strong.

[00:03:46]We ventured into luxury segment where the demand is continuous is what I'm seeing in the market and that is what will result into better uh numbers coming in from FI27.

[00:03:57]H uh ho how are you looking at uh you know your EPC division uh and the kind of revenue mix that you foresee going forward uh from uh EPC ports and residential and commercial.

[00:04:11]>> See a lot of tenders have been bid currently under the port sector and uh we are very very uh strong contender in uh hopefully winning these tenders as well. Uh regarding the other side of the EPC apart from ports we do our own construction and house. So if you see an overall number, we've got around 9 and a half th000 crores of our in-house uh execution which will happen over the next 5 to 6 years of time uh which is which will come in from our real estate projects.

[00:04:40]>> Uh and you know I'm sure you would have faced some labor challenges as well in the month of March and April with respect to availability of LPG for them.

[00:04:50]uh has that restored now and his labor coming back or uh or will they come back after the Bakrid uh uh festival?

[00:04:59]>> There were two three things which were impacted. One was the West Bengal election which were happening. Uh that is when a lot of labors had gone back.

[00:05:07]Then we also saw uh the war situation you know slightly making the labors worry about the gas supply. But now things are very very smooth. In fact, we've done a lot of setups in our labor camps itself where uh they don't have to worry about the basic facilities and needs. So that is what will uh strengthen even furthermore. In fact, more than 60% is already resumed back as of today and I think in next 1 month's time we see a full supply coming in back.

[00:05:34]>> You still you you still clocked a profit you know despite the revenue decline that you that we've seen. Is your cost structure largely on a on a variable structure fixed cost element probably very low? Is that the right way to kind of look at your business?

[00:05:50]>> So I would say a lot of our projects are under JV. So what happens is when the company goes into the recognition method you will not see the top line coming into the books and the same problem happens when we are working in DM model.

[00:06:03]So a lot of times people try to see that your revenue is declining but uh what you would ideally have to track our company man infra is usually through the bottom line because I've got three projects under DM model where nearly around 6 and a half thousand crores of revenue will never be seen into my books but the profitability from these projects would come in. So I would say you rather see a bottom line growth uh which is going to be from FI27 and with the year of launches that is uh planned for the next uh couple of years we see a a good growth rate of nearly more than 20% at least year.

[00:06:40]So more than 20% growth rate over the next couple of years. That's what one should pencil in. But that will still get you to maybe a top line of FI 23 24 25. It won't help you exceed that. Uh what's the pipeline therefore looking like? At what point does uh does the effective growth maybe FI23 versus maybe FI29, FI30 start to go above the 300 cr number? When should that happen?

[00:07:09]So the 300 cr number was the bottom line uh which you're mentioning about uh not the top line. So the top line like I said will definitely be u you would see more or less like a flat line on the top line because like I said the revenue will not come into my books. But regarding the profitability we are seeing a good number from 2028 comfortably coming in. In fact 2027 also you would see a significant growth coming in because we're very confident on the launches which we've planned and the projects which are near completion generating a surplus cash flow that will also be uh you know put in back into acquiring newer projects. So I see a cusp breakthrough by FI28 comfortably >> critibility FI28 >> I could not catch you. Uh would it be above 300 cr profitability FI28?

[00:08:00]>> Um I'm confident that we should be able to.

[00:08:03]>> Okay. Sure. Uh you're your Tardo 2.0.

[00:08:08]What's the vision there? How do you execute? What are the timelines you're looking for? Uh I'm told that you're looking to make Tardo the new lower parel if at all. Uh uh so so give us that sense.

[00:08:21]See, I would not like to honestly state Tardiv as Lower Parel because Sardave is not that cluttered compared to lower parel and that is a very specific reason we chose Tardev as a location because the roads are wider. uh you've got a good uh mixed gentry over there in terms of the ticket size you know uh in terms of per square feet also much much higher than lower parel but yeah we are seeing is the new billionaires row that is what we would like to call it where lot of uh beautiful projects are coming in the entire micro market is getting developed uh where we have focused a lot of projects over there and tadv in terms of the first phase that we've already launched we are nearly at 40 stories more than 50% of construction is completed. We are eyeing the first phase delivery uh of that building in FI27 and the rest will fall in FI28 which is nearly 2 years prior to the commitment deadline that we had given. So not just that it will be one of the tallest towers in the country but one of the fastest constructed towers also and uh you know more than 50% is already sold in that building that is also giving a healthy um uh you know benefit to us in terms of the consolidation of the financials required for that project.

[00:09:36]Okay, Manan, thank you so much for joining us uh and and giving us that perspective uh with regard to the numbers as well as in fact uh the road map going forward more importantly. Uh thanks for joining us this morning.

[00:09:50]Okay. Uh viewers, uh with the Nifty still hovering around, uh same similar levels, uh sub 24K is what we're seeing.

[00:09:59]Uh and and really no major moves, positive, negative or or okay, so 23,900 just about 23,900 in terms of the level uh and and no real move. Uh positive or negative is for for each one to take a call as to as to what the index is is really suggesting. But uh broadly that's the take. Uh let's slip in a very short break come back continue corporate conversations also take an FNO check uh what are the levels that we look out for uh through the day of trade today. We'll slip on a short break come back with all of that.

[00:10:47]Welcome back. You're watching First Trades and let's look at what's happening in the FNO uh segment with FNO360 powered by 5 pesa.com. Starting off with the Nifty futures. Uh the Nifty is currently flat just about the 23900 mark. It's back about that level.

[00:11:04]Premium at 160 odd points to the spot and open interest jumped nearly 1.51%.

[00:11:10]The nifty bank if you look at it the bank index is uh marginally uh lower there but there's a good uh jump in open interest positions coming in for the bank uh 3.6 6 3.7% jump in open interest there. Look at the constituents of Nifty Bank and you'll get to see some shorts getting added which is in HDFC Bank primarily the short there's a the stock down nearly 2% and short building short build up of nearly 3% in open is coming in but other uh banks especially ICCI access uh SBI all seeing some long buildup happening. is SGFC bank which is dragging the index down uh again uh you know on some reports about the governance issues which has been raised by one of the papers there but look at uh what's happening uh uh in the call and put writing as as we speak 23900 is saying aggressive call writing happening at this point in time with puters also there but uh 24,000 continues to be a strong resistance for the market at this point uh if you look at the distribution chart you'll see uh that uh you know we have a upper hand for the call writers at 23900 at this point. So it's hovering around the 23 900 point trying to you know break away from that level and inch higher but uh as we speak uh it's the banking stocks which are uh you know dragging the index especially AGFC bank and today we have a BAC expiry as well so some volatility in the banking stocks there uh futures gainers will include uh tube investment CG power and swiggy all seeing some long buildup coming in stocks up nearly 4% in today's trade if you look at futures losers You have stocks like uh OMGC, Coal India, ITC, OGC and coal, coal India, OFS, OMGC numbers have been little disappointing.

[00:13:00]Uh the stocks down nearly 3 and a half%.

[00:13:02]Coal India is off days low. It was at one point of time down nearly 7%. Uh it's just down 3% now and ITC is seeing some seeing some short build up happening. Stock down nearly 2.69% in today's trade. Open interest gainers include uh coal India 25% jump in open interest coming in you know many of of that is also as part of the shorts getting added uh uh which which is there in coal coal India short buildup happening uh coal coaching shipyard is seeing a long buildup and excite is also seeing a long buildup in today's trade uh among the losers in open interest you have stocks like zmen uh stock uh short covering the numbers but it'll disappointing a good order inflow which came in but margins under pressure. LIC seeing a long unwind happening at this point in time and APL Apollo is also seeing some shorts getting covered. Most active uh if you look at SDFC is the most active 700 June call 1.1 lakh contracts added stock hovering around 750 levels at this point in time down 14 uh and uh if you look at uh the premium is down nearly 14 rupees uh to 60.6 Six among the most active put you have coal India which is active at 420 June put uh the premium up nearly 50 pes to 4.85 85 26.35 lakh contracts getting added the OFS underway the stock uh currently trading around 442 in futures market there so that's what's happening in the FMO market is trying to hold off to the 23900 level and trying to inch above the 19 23950 level as we speak uh Hush >> yes absolutely let's switch focus corporate conversation we have Yatar Thiagi with us director at Yatar hospital and trauma care services uh uh you know when I'm looking at the numbers uh they look like a very very decent set revenue up 36% up 30% margins at 24.2 versus 25.4 you've got some serious bed additions coming in bed capacity was at 1,600 in Q4 FI25 over 2500 now occupancy also inching up it's all looking uh uh much much better on a YI basis uh Mr. Satiagi give us a sense therefore what should one expect in terms of FI27 numbers it's it's a very strong FI26 for you thank you thanks for having me uh yes it's been a strong uh financial year for us the the YI 26% growth that you're seeing you know has been coming from the addition of new hospitals that we have started so this year we have made uh three hospitals operationalized one was the new hospital in New Delhi in the area of model town second was sector 20 faridabad as well as quarter 4 saw contribution a bit from the new facility at Agra. So these three hospitals combined together you know around 1,000 beds we added which contributed meaningfully to the top line contribution of in fact in quarter 4 of the model town and the fer hospitals alone has been upwards of 12%. So uh as well as the existing hospitals that we have uh in our other cities have also grown that has been primarily because of the increase in the RPOP and N extension great hospital today are clocking our pop of you know upwards of 45,000 uh so this has been uh the result that you know which has led to high increase in the overall numbers going forward as far as the these hospitals still we feel are still you know not reached maturity stage the the three new hospitals. So FI 27 will still see a significant ramp up of the both the occupancy and AROV in these hospitals and we feel the 36% YI growth that we have shown this year we should be surpassing it uh in the next financial year >> surpass 36% growth in the next financial year that's uh really the very strong guidance you're giving what happens to occupancy how many so before I actually take occupancy let me let me ask you how many beds do you add in the next year >> so today you know we have around uh 2,600 beds. Uh as far as the announced capacity is concerned, we have 3,500 bed that includes the new Gurugram hospital that we just acquired which 250 beds which would be operationalized within 12 months. As far as the brownfield expansion of two hospitals are concerned. So you know the with the increase in announced capacity we feel uh that next financial year somewhere around 3 to 500 beds will also be operationalized. Uh however we are targeting as total to reach 5,000 bit capacity uh within within next 3 years >> beds to be added next year. What happens to occupancy and and you know the 36% growth on top line how much of that plays out with regard to margins because uh that's probably the only uh I won't call it softish either a slight bit of lower or contraction uh is is with regard to where your numbers stand. uh do margins also go higher despite the 20% bed addition that you do >> see margins uh you know is as per our guidance in quarter 4 this was a guidance for the full financial year also we were targeting margins of somewhere around 24 to 25% for fiscal 26 and that's where we are uh and this is as per expected it's purely because of the drag of the new hospitals the the 1,000 beds that we've added which has uh you know led to this marginal uh dip in the margins uh in the going forward we are sure that you know we would be somewhere again around 24 to 25% as the full financial year is concerned in fact I think the margins should sort of also improve given the fact that the new model town as well as the Faridawad hospitals you know might we looking to break even uh from the starting of H2 of FI27 so I think there should be marginal increase in the AIDA margins but overall I think somewhere around 24 to25 would be the guidance for the coming years forward Ward occupancy is concerned I think 70 71% is where we are this year.

[00:19:08]This will remain at a steady state. I think uh this should be a stable stable occupancy numbers we do expect uh because we are adding up new beds each year. So if you're able to maintain this uh number of occupancy I think that's the guidance going forward as well. that uh what is the kind of current debt levels that you have and as you increase your uh bets to or maybe double your bets in the next two to three years uh what is the kind of capex that you your plan including the ones 3,000 bets that will come in in the next 2 to 3 years >> that today stands uh you know somewhere around 240 crores we uh if we talk about uh net cash position it is somewhere around 115 crores uh going forward uh as as uh you know we expand further uh we are well in the position to have a larger share of internals that would be uh you know the company would be driving in the years ahead uh still there's some roomway for debt is concerned so I think the capex for the expansion to 5,000 bets should easily be funded by the internal acules and some uh room with the debt that we might still on board going forward >> is there a plan to come to the market and raise some equity as you expand your footprint in northern areas as well northern India >> I think as far as 5,000 beds are concerned there's no more requirement for external funding I think these 5,000 beds uh are easily uh you know possible from the internal as well as the data curals also going forward one important aspect the company is focusing on is reducing our data days you know somewhere it has already been reduced to 112 uh from a larger amount years ahead going forward we feel a a significant reduction in the data days will also result in high internals and that's why we quite confident in the company should be able to fund the capex requirement from within itself.

[00:20:59]mentioned uh you know uh the uh AR pop of around 45,000 that you're planning or you're targeting right from the new once a new additions come in what would be the average uh once all the new three hospitals become break even at that point in time uh how is our port looking because currently at the end of Q4 uh it's around 33,000 >> so AROP if I talk about in a new hospitals is much higher than the group average uh the New Delhi hospital you know has started with an R pop upwards of 40,000 even the farabad sector 20 is close to R pop of 40,000 in fact gurugurug gram that we are starting in 12 months will be expected our pop to start off would be above 50,000 uh and that is primary due to two three aspects one is the change in our you know pay mix is concerned so all the new hospitals uh the the are driven by the volumes in the self-pay as well as private insurance patients and international patients so there's a very uh less contribution from the government pay mix which is coming the new hospital which is driving uh this higher RPOP as well as the change in the case mix.

[00:22:05]Today we are you know having good contribution from oncology from transplant services from high-end neurosurgeries. So as the case mix also improves which is helping us to drive this high ROP we feel going forward somewhere around 10% you know yi growth for the full fiscal is expected for the arpo for good next 3 four years are concerned >> you you're looking at fi28 with an arpop of on an average for all your hospital would be around 40 to 42,000 uh rupees is that >> somewhere around that yes somewhere around that and and and the newer hospitals should be touching the arp close to 50,000.

[00:22:42]>> Wow. Okay. So, that's very strong. Um, what's the sense like with regard to the receivable days?

[00:22:50]You said that you'll bring it down sharply. Now, I see your receivable days are currently at 112. Uh, you're bringing it down to 1995 and you've done maybe a 10day improvement over the last year or so. How so bullish?

[00:23:07]See uh this is something which will automatically change if we uh shift from a payer mix from more focusing on private insurance and self-care and international patients and less uh government business. So as the newer hospitals that I talked about have hardly any share of government business when their contribution the overall pie chart increases the data days are bound to come down. Not just that over the last you know a year or so we have deployed certain uh you know outsource agencies to get our receivables faster.

[00:23:37]There have been better systems and places and process checks that have been placed. Uh we are quite confident that uh you know in in two two and a half years we're targeting the receivable days uh should be around 70.

[00:23:49]>> Right. So so so that's a substantial scale down. uh how much of your current business is government and and what's the proposed mix of government to overall revenue say FI27 FI28 the government mix in our new hospitals uh is uh you know not even 10% and and that's how we intend to be uh for the existing hospital because some are mature hospitals you know have been running on a certain uh you know thought processes and certain uh you know areas that we have operated especially you know if we talk about uh you know not just NCA but up uh you know that in those hospitals uh like Agra like Jansi Orcha that's where the government payer mix would be a bit higher but our guidance for next two and a half years I think we want to be somewhere in the range of 25% as far as the overall uh government mix is concerned because that will also ultimately help us to bring down those uh data days >> right okay yad great speaking with you thank you so much for coming in and speaking to us >> thank you >> well viewers it's been a packed show First trades. We've got a bunch of corporates who we've spoken to. We've tried to give you as many insights as we can. Of course, completely timed out on this edition of First Trades from Sajjit, myself, everyone who puts this show together. Thanks so much for watching. Stay with us here on 18 now.

[00:25:06]More action before Welcome. You're watching Midcap Masala on ET now. I am Snehish Sha and very quickly taking a look at what the market is up to right now. You have the Nifty that's managed to hold on to gains of about 210 of a percent but we're still sub that 24,000 mark. Broader end of the market. Both midcap small cap are up half a percent. We have lots to cover on the show. Let's get uh started with the corporate conversations. We've got Mr. Arvind S. Meligory the executive chairman and CEO at Acres joining us on the show. Mr. Meligi, good to be speaking with you once again and let's break down the quarter that you've seen.

[00:25:55]Uh let's take a look at what your numbers are. The revenue has grown 47% and yet we've seen a little bit of a widening in your losses number aside from the consumer segment ramp up. What specific costline items are exerting the most pressure on the bottom line? and if you can give us any outlook on uh profitability any timeline over there.

[00:26:15]>> Yeah, thank you. Thank you for having me there. Uh if you really look at it, uh the profitability is pretty much uh you know uh in line on the aerospace side as we projected and the growth has been you know uh similar uh in line also on the aerospace side. The consumer is where the costs came in in the Q4 which we are not there as part of Q3 because we still had not the fully industrialization or commercial production has not fully started till the tail tail end of the Q3. So uh it did not have all the costs in there. So they all showed up in the Q4 and that's why you saw the IITA erosion uh from that perspective. Other than that uh we continue to grow the business and consumer is going to grow and uh from the outlook perspective consumer is growing 125 to 150% in FI27 and we expect to have EBITA break even on the consumer side u by uh Q427.

[00:27:10]>> Okay. Quarter 427 is when you're looking at a break even on the consumer front.

[00:27:15]Uh also if you can help us understand what is the specific utilization threshold required to reach this break even in the consumer segment. any levers that you're going to be deploying um now that you've given us this quarter 4 FI27 timeline.

[00:27:28]>> Yeah, I mean levers pretty much utilization and uh utilization is currently at uh at somewhere around 202 20% level mid20s and that's going to go to 50% level utilization. So that is what that change is going to happen. You know the utilization is the biggest driver for the consumer uh profitability for us.

[00:27:48]>> Understood. And let's talk about the guidance that you've given Mr. Meligory.

[00:27:51]Your FI27 consolidated guidance for 45 to 50% for topline revenue growth and you've also projected 2x operational ebitita. If you can also help us understand what are going to be the drivers that ensure that this guidance is achieved since it's quite an aspirational one.

[00:28:07]>> Well, it's not really aspirational if you really look at it uh as a business today. uh you know the whatever our aerospace uh margins are there uh and basically the negative contribution coming from uh consumer is the one which is eroding our overall effect to net uh uh IITA and uh since the profitability on IITA perspective is going to come up on the consumer side that negative contribution is going to you know go away and absolute numbers are going to show up from the aerospace reflecting in the real final consolidated numbers and that's why the growth is going to happen. On top of that, aerospace is also growing. Aerospace is going to go between 25 to 30% at 20% EIA level. So that continues to perform as a business, you know, that's a natural growth what we have and coming in. So I think that's that's a key here, you know. So contribution negative contribution coming from the consumer is the one which which is going to help us to accelerate that.

[00:29:05]>> Understood. And Mr. Melgaryi of course um everybody in your industry and all across has been impacted by the developments in the western Asian region on the back of the war um you know we've seen supply chain constraints um across the industry help us understand if you are also seeing this in your aerospace segment and by when do you see this situation normalizing?

[00:29:27]Well, I we have seen some impacts coming on the logistics perspective. Uh generally you know all our materials get imported uh all our manufacturing material uh for aerospace uh to certain extent consumer side also. Uh and all these have taken to and timeline. So the there is a shift of increase of the logistic cost logistics timeline by four to five weeks what we see and so we are basically to cover that customer requirements make sure that we can deliver on time. we are just bringing in the material earlier and that is one of the reason you see the impact of the working capital networking capital days increasing in the in the last quarter.

[00:30:05]So look, I can't tell till when but I know we have already made an adjustment in our procurement plans to uh to make sure that we continue to deliver to our customers and we might have to take a short run uh you know working capital hit on this uh but it is what it is you know it's we have to be able to adapt ourselves because we are in a business of global supply chain part of part of a global supply chain.

[00:30:28]>> Understood. So Mr. Meligori, now that you're taking this brunt on your working capital, are you going to be passing it on to your clients? Any price hikes in the making?

[00:30:38]>> Not really. We see we don't see it as a long term. It's a short run. It's more of a precautionary than anything else.

[00:30:43]Uh I think we should be fine. You know, it's a on a scope of things what we are dealing with our customers. This is a small one.

[00:30:51]>> Understood. So this is going to impact your working capital and that is the kind of cost that you're willing to take on the books. Understood. And also let's talk about the order book of the $889 million aerospace order book. What portion of that is executable in the near term? Let's say 12 to 18 months.

[00:31:09]>> Yeah, typically you know these order books are anywhere between uh 5 to 7 years time frame for us. And uh if you look at last quarter end of Q3 our order book was $814 million. We increased our order book by $75 million. Whereas revenues of delivery of aerospace has been about 30 million $32 million level. So we have doubled our you know then increased our order book uh compared to what you know uh what we have delivered in the last quarter and we continue to do that momentum is there and that's why we see you know have a good visibility for us to uh to grow this business in the coming next five years.

[00:31:47]So that's on um the aerospace order book and let's lastly once again talk about the consumer segment. You've guided for 125 to 150% revenue growth in FI27. if you can help us understand what's your targeted revenue mix between both your segments going ahead.

[00:32:03]I mean towards the end of this uh effort 27 our goal is will be about 7525 time type of a range what do we want to be uh but you know look we don't constrain these things both we have capacity for consumer it can scale faster you know aerospace we we have capacity fully utilized and we continue to add capacity we are doing a 600 50 cr close to that level of capex in the current year with about 500 cr going into the consumer that's all going to come online and aerospace going to come online also at at the same time. So, so we feel very strongly about our uh you know the growth side of it of the business and uh as I mentioned our utilization in consumer is going to drive uh pretty much and uh today you know uh uh we feel that we are in a position to uh leverage this.

[00:32:51]>> Okay, sounding good. Mr. Meliger, you've spoken to us about the consumer segment break even by end of FI27. What is your break even timeline for the overall consolidated business?

[00:33:04]>> We are targeting right now FI28H1 uh is when we expect a overall pad break even. Um that's that's where we stand today and we feel comfortable with that.

[00:33:15]>> And uh lastly, Mr. Melgary, talk to us about your capex plans in FI27. Can you uh give us the quantum of what the plan is and how it's going to be funded?

[00:33:26]>> About 600 660 cr is what we have planned. Okay, >> capex about 500 cr into the consumer business and 160 cr into the aerospace business. So today our net debt is about 100 cr and we'll end up with about 800 cr net debt uh between the working capital and expansion of capex. So that's how we see overall uh overall uh end of the year numbers on the debt side of it.

[00:33:47]>> Understood. Uh thank you so much for your time Mr. Meligiri and it was good to be speaking with you. Hope to interact uh with you in the quarters to come. Thanks so much.

[00:33:56]>> Great. Thank you.

[00:33:57]>> Thank you so much. Okay, that was the management of Akis. The stock is under pressure lower by about 7 and a half% on the back of the softness that we've seen in their numbers on an overall basis for quarter 4. But the management commentary continues to be that or by by the end of FI27 the consumer business shall become uh positive in terms of the ABA break even and the consolidated business for that. The timeline is the first half of 2028. Working capital pressure seen but that is a hit that they are willing to take on their books not looking at price hikes for now. That sums up the conversation. On that note, time to slip into a very short break. Lots of earnings candidates and conversations with managements lined up on the other side. Stay tuned and we'll be right back.

[00:34:44]Earnings. Let's shift focus and take the conversation ahead with Shingar House of Mangal Sutra. We've got the management joining us on board on the back of their quarter for earnings. The stock has recovered significantly from the day's low. At the open the stock was low by about three and a half to four percent.

[00:34:59]It's recovered from there. Overall the numbers have been good. So let's interact with uh Mr. Viraj Tareshwar the CEO and executive director of Shingar House of Mangal Sudra. Mr. Teshwa thank you so much for your time. First of all good morning and uh let's take a look at the quarter that you've seen. You know revenue growth was largely driven by higher gold prices as we understand. How did the underlying demand and ticket sizes trend during the quarter? Can you give us an idea of that?

[00:35:25]Uh so like you see that uh lately in the last previous quarter we have seen a good uh season coming up that's the reason we have not only shown growth in uh the revenue but also we have seen a growth in the volumes as well in the previous uh quarter. So uh over the the last few quarters if you see there have been uh phenomenal and good growth we have shown in the overall uh revenue side and also in the volume side as well.

[00:35:53]>> Okay. And uh Mr. Teshwar with the gold prices remaining elevated are you seeing any slowdown in consumer purchases or any shift being seen towards lighter jewelry lower ticket sizes is that something that you're getting from your clients right now? So uh not only the gold price I would say also the market and the demand because the the newer generation and uh right now the trendy designs designs has is plays the major role uh in the entire business uh formation how we go on. So if we see the overall trend it is always towards the lighter weight manga sutras and uh in 22 karat and 18 karat as well. So uh currently we are in process of development developing a lot of lightweight uh trendy manga sutra with all our uh retail partners and we are closely working with them on creating a demand uh in this segment and uh if you see uh all the corporate and the organized players uh the large players who dominate the market they are all closely following up in this category and Shringar is currently associated with almost all of the uh giants and the corporate chains and uh we look forward to associate with them uh more and deeper and create something better for the market.

[00:37:13]>> Understood. And also if you can help us understand what kind of head hedging strategy does the company follow to manage this kind of volatility that we're seeing in gold prices. No definitely Shangar has always been following a hedging strategy uh where the inventory is uh the portion of the inventory is always hedged and uh we always continue as per the same uh hedging policy and the same uh strategy we we've been following and uh we don't see any um risk or anything uh in uh if we follow this kind of strategy because we have always been following that right. Can you help us understand with how much of your uh inventory or how much of your gold raw material is hedged at the moment?

[00:37:55]>> So currently we are uh nearly 30% hedged uh because the business is such we are mainly following a natural hedge policy where the churning of the product is so fast that we we manage and we adjust that in a very smooth and a safe and a secure way.

[00:38:16]>> Understood. And also you know big news coming in from the company. You've entered the bridal jewelry segment. Help us understand how large is this opportunity compared to the core mangal sutra business and have you already started getting these inquiries from your existing clients.

[00:38:30]>> No definitely see this was I feel is the need of the R because as you know we are into Mongal Sutra. See Mangal Sutra is a key product for a bridal concept jewelry. So for us to expand it would be the right step to follow the same uh footsteps and the same concept. So bridal jewelry was the best move for us because uh the people the c consumers who are buying are mangal sutras we are selling the mangal sutras they are also buying the bridal jewelry. So we understand the market. We already have the customer base. We already have uh the I would say the best customer base and uh for us to uh supply them with the same category and not only us actually it channel partners, the retail partners, our customers, they have always been uh asking us that if when can we enter this uh sector because Senar is currently having the ready infrastructure, we have the customers. So it is very easy for us to develop and uh because not only the product the design uh the quality we are at par in all the sectors. So uh currently we have already I would say we have already started the paddle category and uh the orders are already in and uh we are set to grow uh at a fast pace in this category and the work has already started and we have already started supplying the bridal category in several chain stores organized players as well as an players both.

[00:39:55]>> Okay on an informal note Mr. Taleshwar since the company's name focuses and stresses on Mangal Sutra now that you've expanded the portfolio are you looking at any name change?

[00:40:06]Um I would right right now the focus is to create a certain uh volume certain uh level of uh business and grow once we achieve that uh what we have thought about uh then definitely we would consider it but for now our focus is how to scale up the new category because manga sutra is already a growing category and we are already doing a lot for this category but to grow this is a new child uh we have started with and the support we have from our customers.

[00:40:37]I suppose uh our current focus is to grow uh this category and uh at a such a fast pace that it also reaches at par with our Mangaludra business. And Mr. Tareshwar, let's talk about the new Kandilli facility that was expected to scale capacity to 4,000 kgs by June. I remember in March when we had spoken you were at 2500 kgs and you did say in 3 months you plan to hit 4,000. Uh where are we? How far along are we on that?

[00:41:05]capacity expansion and your utilization also is at 57. By when are you expecting optimal utilization from this facility?

[00:41:13]>> Uh so so facility has already started.

[00:41:15]Uh all the production is happening from the new facility only and uh it has it's been functional and uh the development has already started. uh the we are seeing a good uh joining and a good production uh not only on the production side but also in the creativity aspect the productivity aspect and with the new technology coming in uh we are in the process of creating something new for the industry and something which is at par and something that cannot be matched easily. So that is the entire uh uh you can say the vision we are having and uh uh the percentage I would like to say that the utilization is increasing uh day by day and uh we are definitely at a higher uh I would say more than uh 75% so more than 70 to 75% higher than that utilization uh currently we want to we are following that footsteps >> understood and that sounds good on that note Mr. Tadeshwar, thank you so much for your time. It was good to be speaking with you.

[00:42:17]>> Thank you.

[00:42:17]>> Thank you so much. Okay viewers, very quickly shifting focus from that. Let's talk about Borusil. So let's keep going with the consumption space in fact and the management of Borusil Limited. Mr. Shaver Keruka, the MD and CEO now joins us on the show. Mr. Keruka, thank you so much for your time. Just breaking down your numbers quickly. Quarter 4 has been a rather soft quarter for you due to external headwinds and a lot of that. uh despite this your revenue gagger of 15 to 20% over the medium term that guidance has been maintained. So before we deep into the uh we uh we dive deeper into the quarterly performance can you help us understand what is aiding the confidence to achieve this growth.

[00:42:56]Well, actually if you dig d uh deep dive into the numbers uh you know you can see that we have five categories of products. Out of them three have grown faster than the 20% uh CHR that we've spoken of. The one which has really hurt us in terms of growth has been our double wall steel bottles, the hydra bottles. And that's because our plant is not ready or it's just getting ready in this quarter. And we had massive supply chain bottlenecks uh because of the BIS implementation on that range of products and we couldn't supply in the market even though demand was there. So this year has been a bit u anomalous because we've not been able to supply that one entire range to the extent of the demand and uh that's going to change in the coming year uh at least from Q2 onwards.

[00:43:46]Um and therefore our guidance of 15% to 20% CAGGR remains unaffected as we will have solved uh the supply chain bottlenecks.

[00:43:56]>> Understood. Okay. So that 15 to 20% revenue Kagger guidance stays. Uh Mr. you also believe that the margin guidance is inching towards 20%. What will be the timeline for the same given the headwinds and the softness that we've seen in your margins in quarter 4 itself?

[00:44:14]>> Well mar so this is two separate things.

[00:44:17]One is the CAGR which I still feel quite bullish about. On the margin front, I think uh we have certainly been hit by uh the West Asia crisis and uh the phenomenal increase in uh prices of liquid LPG as well as the you know secondary price increases in diesel which have allowed which have which are increasing costs of every you know transportation packaging material and so on.

[00:44:46]uh it does take some time to pass these price increases on to customers. There's no way for us to absorb it because the uh you know the percentage increases are too large. Uh we have taken price increases in this quarter. However, I think for the full transmission to get impacted it does take a quarter or two.

[00:45:05]So uh our uh profitability growth will be hindered um in the short very short run but our long-term guidance that we will tend towards 20% uh remains unaffected.

[00:45:20]>> Okay. And let's also talk about raw materials and the external headwinds that the company's facing. And of course the entire industry is going through this right now. Gas prices they are playing spoil spot for the industry at the moment. Can you tell us if LPG availability is back on track for you and what is the utilization level across your furnacees at present?

[00:45:41]>> Yeah, look as far as quarter 4 is concerned of last year. Uh Q4 results were certainly impacted by the uh unavailability of LPG. Our furnaces went on standby for some period of time. Uh this was all communicated to the stock exchanges appropriately. Um as far as availability is concerned from April we've had uh you know full supply of the gas and therefore our furnaces are running um at at full output but obviously it's a situation is highly dynamic and I hope it remains that we keep getting the gas supply.

[00:46:18]>> Okay. And on that note Mr. Koko are inventory levels and working capital under stress because of all of these supply disruptions.

[00:46:27]>> No, at the this disruption was I would say short enough to not uh give any stress on inventory levels or on working capital. So that point at the moment is not a concern. um we are more I would say concerned about uh you know the general price increase or the cost increase in the market and to me that's the number one you know area to kind of watch out for >> okay so we'll be watching out for that Mr. Koka the company is also undertaking multiple capacity expansions. What kind of demand visibility is supporting all of these investments and tell us a little bit more about your expansion plans?

[00:47:05]>> Well, you know, India is a growing market in in overall sense in spite of these short-term uh kind of disruptions that we see. Uh we have we take a medium to long-term view of the country. We see a burgeoning you know middle class. We see a shift from uh plastic to glass because of health concerns. Uh environmental concerns. Glass is fully recyclable. You know it's safe to to eat out of glass, store food for a long period of time. So these are let's say secular trends which are going to continue and as a result of that we believe strongly that our product portfolio is well catered to uh you know the evolving needs of these new customers that are coming in. As a result of that, we do believe we need to have capacity to cater to these needs and also keep innovating on our product portfolio and uh therefore any kind of capex that we do is always taking a long-term view and not really you know it's not dependent on you know specific events which may keep happening uh you know as they have for the last few years.

[00:48:08]>> Okay. Mr. Kuka, you have a new facility in Biruch. Can you share timelines and expected contribution from this new Bhar glassware facility and your Opalware unit?

[00:48:19]So Baharuch our glassware facility will probably be ready by the end of this year calendar year and contributions should start from the early part of next year. So Q4 of this um financial year where we should have production um Opelware uh actually we we just you know having some small debotting happening which will happen next year. uh but uh the overall uh manufacturing share of mix uh you know which is about 65 to 70% today is going to tend towards 85 90% in the next 2 years which is something we feel very happy about and uh you know I think almost 95% of all our products will be made in India uh by 2728 uh and that's something also to be very proud of >> absolutely that sounds really positive lastly Mr. Heroka we talking about your segments Opalware and glassware they continue to see healthy demand which categories within these baskets are expected to drive growth in FI27 overall glassware is in a space where we believe as I mentioned earlier the shift is happening from plastic uh to glass and therefore that category should grow there's a lot of dumping from China happening in this category and uh obviously the you know many industries in China have dramatic over capacity and probably more capacity than the whole world's requirement and China being a non-market economy they supply all these products at prices lower than their own cost of production. So this dumping is something that the government is looking at and must look at and you know protect uh the local industry from this. Um if if this dumping was not happening I would say there would be space for many more furnaces in India. As such uh for Boros glass we are the only producer in India and even we uh you know take a long time to sell out the furnace which is uh you know not not uh something suitable for a country the size of India. So um I I think the the the if if the government looks at this and kind of supports industry by you know imposing or by putting a level playing field I think we do expect uh capacity expansions as well as demand enhancement to happen very rapidly.

[00:50:40]>> Absolutely Mr. Koka level playing field seems to be the need of the hour across industries. But on that note thank you so much for your time. It was good to interact with you on your numbers. We hope to keep interacting with you in the quarters to come. So viewers, that was the management of Borus Limited. With that, I'm afraid we're completely timed out on this edition of Midcap Masala.

[00:50:57]Thanks so much for watching, but continue watching ET now because buy now sell now is up next.