Orient Bell

- In Q1 FY25, project sales stood at roughly 20% as per Aditya Gupta's mention, though exact numbers were not immediately available. - Miraj inquired about the current order book for project sales versus retail sales; Aditya Gupta indicated that they needed to check data and would follow up later with precise details. - There was no specific quantitative update on the current or expected order book provided during the call. - Overall, focus seems to be shifting more toward retail sales and premium products like GVT. - Demand recovery is expected cautiously in the second half of the year, which may positively impact order books going forward.

- As of the latest discussion, there is **no new capex planned** currently, and hence no immediate requirement for fresh fundraising through debt or equity. - The company has a net debt of around INR 40 crores, primarily borrowed to fund new capacity (Dora GVT line). - Repayments on this debt will begin after a one-year moratorium, providing ample time before any repayment pressure. - Management stated they have the capacity to borrow more if required but will decide and align internally before making any formal announcements regarding additional borrowing. - Any future decision on raising debt or equity will be transparently communicated once formalized. - No specific fundraising activity is planned or announced as of now; any material future capex like Greenfield or M&A could trigger such needs but nothing is on the table yet.

- As of now, there is **no capex planned** for the current year (no immediate capital expenditure on the table). - Future capex considerations include potential **Greenfield projects, M&A opportunities, or Brownfield expansions** later in the year. - The company is open to borrowing more if needed to fund productive investments but will decide and formalize plans before making announcements. - Investments have recently gone into capacity expansion, like the new line at Dora (capitalized recently), and the 5.5 million square meter capacity addition by the associate entity Proton (a JV in Morbi), though the latter requires no direct capex from the company. - A **7 MW solar power plant** started operation at Sikandrabad (June 19, 2024) to help reduce power costs—investment already done. - The company remains open to future strategic investments aligned with customer demands and market opportunities.

- Orient Bell Limited expects gradual improvement in market conditions with traction picking up every quarter. - Focus on aggressively increasing vitrified tile (GVT) sales, which grew 54% in Q1 FY25. - Marketing spends will continue (~4% of revenue) to build brand awareness, supporting volume growth. - New GVT capacity at Dora and the Proton JV in Morbi is expected to aid volume increase, especially in South India. - Export markets currently soft due to freight issues but expected to normalize, opening growth opportunities. - Plans to maintain or slightly improve volume growth (~3.5%-4% year-on-year) supported by product mix improvement. - Working capital investments and new capacity capitalization signal readiness for scaling operations. - Sustainable growth targeted via premiumization strategy and expanding geographically, especially in South and West markets.

- Orient Bell expects gradual market improvement and better traction in coming quarters, supported by increased vitrified tile (GVT) sales and capacity utilization. - Marketing investments (around 4% of revenues) will continue to build brand awareness, aiding premiumization and ASP maintenance. - Despite price erosions and higher discounts, contribution margins remain stable (~35%) due to improved product mix and backend cost efficiencies. - EBITDA improved by ~2% YoY in Q1 FY25; gross margins expanded by ~1% YoY. - Depreciation and finance costs increased post-capitalization of new facilities, impacting PAT negatively in the short term. - Export market softness and freight cost volatility may temper near-term growth but are expected to normalize. - No explicit EPS or profit guidance provided; focus remains on volume growth, margin improvement, and sustainable capacity expansion. - Debt is manageable, primarily used for growth-capital assets, with repayments starting after one year.