ASTRAL LTD (ASTRA) Q3 FY23 Earnings Concall Transcript

ASTRAL LTD (NSE:ASTRA) Q3 FY23 Earnings Concall dated Feb. 08, 2023.

Corporate Participants:

Kairav Engineer — Vice President of Business Development

Hiranand Savlani — Chief Financial Officer

Analysts:

Pranav Mehta — Equirus Securities — Analyst

Rahul Agarwal — InCred Capital — Analyst

Sujit Jain — ASK Group — Analyst

Nitin Jain — Fairview Investments — Analyst

Venkatesh Balasubramaniam — Axis Capital — Analyst

Praveen Sahay — PL India — Analyst

Mitul Shah — Reliance Securities — Analyst

Achal Lohade — JM Financial Institutional Equities — Analyst

Rajesh Ravi Kumar — HDFC Securities — Analyst

Girish Choudhary — Spark Capital — Analyst

Sandesh Barmecha — Haitong Securities — Analyst

Jaynesh Kariya — Antique Stock Broking LimitedLimited — Analyst

Nikhil Agarwal — VT Capital — Analyst

Girish Achhipalia — Morgan Stanley — Analyst

Presentation:

Operator

Ladies and gentlemen, good day, and welcome to Astral Limited 3Q FY23 Results Conference Call hosted by Equirus Securities. [Operator Instructions] Please note, that this conference is being recorded.

I now hand the conference over to Mr. Pranav Mehta from Equirus Securities. Thank you, and over to you, sir.

Pranav Mehta — Equirus Securities — Analyst

Yeah, thanks, Aman. Good morning, everyone. On behalf of Equirus Securities, I welcome you to the call for 3Q ’23 result discussion with the management of Astral Limited. Management is being represented by Mr. Kairav Engineer, VP Business Development, and Mr. Hiranand Savlani, the CFO.

I would straight away like to hand over the call to Mr. Kairav for his opening remarks. Over to you, sir.

Kairav Engineer — Vice President of Business Development

Good morning, everyone. And thank you, Pranav for hosting this call. And thanks to everyone for joining so early in the morning. Welcome to the Astral Q3 con-call. We know that we have called you a little early in the morning, because as per the company policy, we only do our con-call or publish any data during non market hours.

Since, Mr. Sandeep Engineer is in U.S., he is doing course at Harvard, we were able to complete our Board meeting a little late yesterday, and because of that it was not possible for us to have a con-call yesterday evening. And today evening, we have some planned guests from overseas so, it was only possible to do this call in such hours.

To strengthen our Board with professional people, the Board of Directors have appointed two new members; Mr. Chetas Desai, Chartered Accountant having very rich experience of 30 years working with reputed organization like PWC, and in Investment Banking Business with Ambit, as a CEO; Mr. Dinal Shah, again a Chartered Accountant having 30 years of experience in advising clients on taxation, exchange control, insolvency and corporate laws. He was Central Council Member at Institute of Chartered Accountants of India and Chairman of Direct Tax Committee of GCCI and a visiting faculty in IM on various professional topics. We welcome both to our Board and I’m sure that we will learn from their rich experience and they will really be an asset and a good addition to our Board and our company.

I’m very delighted to inform you that current year, that is 2023, Astral is celebrating its 25th anniversary. And as a part of that celebration, the Board of Directors have decided to reward its shareholders by issuing a bonus share in the ratio of one share for every three shares held with the investor. Also, very happy to share that our organization, got renewed as a great place to work in 2023. We held that certification in 2022 and we were re-certified this year as well. Our consolidated Q3 ended with a good note on all fronts, volume, value and margins as compared to the second-quarter.

Let’s start with one of the verticals of our business, our key vertical, that is Pipes. We all know that the industry was passing-through a tough time of PVC volatility and now that the trend is reversed, it has reflected in good volumes in the Pipe segment. The Pipe segment, overall, the demand situation was very good in Q3, and we are confident of a good growth in Q4 as well. Historic more has been the best quarter for the company and for the industry. And we hope that the same demand will continue and this growth will continue in Q4 as well.

Further, PVC prices are stable since January, and that will give more confidence to the dealers to keep adequate inventory in the peak season. The losses that we were incurring, due to-high cost inventory of PVC has gone away from the system and we may see some gains in inventory in Q4. Our Bhubaneswar facility is gearing up and we have rolled-out PVC products and water tanks from the Bhubaneswar facility. The CPVC products are under BIS certification and shortly, we will start CPVC products from that facility as well. From Q1 FY23-’24, we will have all the products being rolled-out from the Bhubaneswar plant.

The Water Tank business is going as per plan and we will be closing the year with INR100 crore revenue guidance as communicated to our shareholders. Our new project of valves, has started giving the revenue with a few SKUs being rolled-out and we will be able to launch 120 SKUs by March ’23 and are expecting good revenue in the same segment in the next year.

Our Infra division is going at a good pace and with a lot of infrastructure projects from the government and a lot of infrastructure spend, just guided in the recent budget, we are expecting a good growth in the coming quarters from this division as well. The Adhesives division, similar to PVC, the prices of chemicals were falling and we were having high-cost inventory with us. Due to that we were facing some pressure on margins, but now the pressure has started coming down, as improvement in margin started from Q3. And we are expecting improvement in the margins from Q4 onwards as the prices of the chemicals have leveled.

Our Paint business is on a normal growth trajectory, on a nine month basis, it has grown by 15%. As communicated earlier, we are waiting for NCLT approval for the merger. And once that will happen, we will start working on it in-full swing with the support of Astral brand and we will be doing some rebranding and re-designing of the product-line as well. You will see improvement in our numbers from next year onwards. And our SAP implementation work, in the Paints company is on and we are targeting to close that by Q1 FY23-’24.

Bathware, which is a new category for us, we are working very hard and we are seeing very encouraging results to start with. Our focus right now is on creation of network and we are happy to share that we have completed 231 display centers, across various states of the country. And more than 80 display centers are under-construction. We are aiming to complete 500 such showrooms and display centers in the next three months.

I’m very happy to share that we are able to supply to more than 3,800 plus bathrooms in projects, and more than 25,000 bathroom bidding is on and we are confident that we will get the same. The project pipeline has started building for the Bathware category, and the project pipeline looks quite healthy in the coming year and we are very confident of our sales team and our product. We are expecting good sales number from FY24 onwards. And once our display centers are up and running, it will give a big boost to the overall numbers in the division.

Last but not the least, as indicated in our press release, our company is doing good CSR activities and is doing a great job in uplifting parts of our society. And I’m really happy to share that our team has done an excellent job and we were awarded two Gold awards for our Ranthambore project and our Ice Stupa project in Ladak, and a bronze award for our Hiwali Pipeline project in Maharashtra by Afaqs Digies 2023. Basically, the entire awards were swept by Astral, with the judges eliminating a silver category and awarding two golds and a bronze to us, and we beat out some of the bigger foundations and some of the bigger companies in India by taking all the three awards in this category.

Now, I hand over this — the call to Mr. Hiranand Savlani as CFO for his financial updates for the quarter and the way forward.

Hiranand Savlani — Chief Financial Officer

Good morning, everyone. Thanks, Pranav from Equirus for hosting this con-call in early hours. This is the first call in which Sandeep bhai is not attending, because he was — is traveling overseas as said Kairav, and I’m happy to inform you that he has gone for Harvard University for his OPM course. He will be there for three weeks for this course. Last-time he attended three week course in the month of May. I am sure, we at Astral will learn something new, once he will come back post this study. Also it is a matter of proud for all of at Astral, that now new-generation is also taking charge of the business and today, Kairav is leading this call, in absence of Sandeep bhai.

On a personal note, I want to thank all my investors and all my well wishers because of their confidence and trust in our company and me personally, I have been awarded by this Institute of Chartered Accountants of India, a CA CFO award, which is the most reputed award in the country and the award jury was chaired by prominent industry personality like Shri. Dilip bhai Shanghvi sir, Managing Director of Sun Pharmaceutical Limited, along with other prominent personalities of the industry.

As a chartered accountant, it is always a dream to get this award from our own Institute. I’m lucky that I got this award and dream comes true for me, which was not possible without the support of all of you, and blessing from my elders and the family members. And this will increase by responsibility more.

Now back to the business. As Kairav indicated, the Q3 was excellent, and as we always communicated, Astral is believing in consistency of growth and this quarter, is in continuation of that consistency. And that is why I was specifically given the few graphs in our press release, which can clearly indicate the 5-Year CAGR growth on a nine month basis, so that everyone can understand that how consistent Astral is there, in terms of top-line, in terms of bottom-line or in terms of volumes and in all respect.

The numbers are in front of you. I will not take much time, but will prefer to give more time on Q&A. Just key number which I think, I should highlight which are indicating here. The consolidated topline growth in Q3 was 15% on Y-o-Y basis and 21.6% on a nine month basis. EBITDA has grown-up by 9.5% in Q3 — sorry, de-grown by 9.5% in Q3 on a Y-o-Y basis, and minus 6.4% on a nine month basis. Mainly because of high cost PVC and the chemical, we incurred inventory losses, but now we are done away with this losses and high-cost inventory and we are quite confident that Q4 will not be having that effect. On the contrary, as indicated Kairav, that we may be having some inventory gain also in Q4.

Adhesive and Paint segment has delivered a topline growth of 28.6% on a consolidated basis in Q3 and on Y-on-Y basis 39.75%, but this numbers are not clearly comparable because last year we were missing the Paint business number. An EBITDA growth of 11.4% in Q3 Y-o-Y basis, and 18.2% on nine month basis.

EBITDA margin of Pipe division was 13.5% in Q2, has increased to 15.4% in Q3, which indicate 190 bps higher compared to previous quarter. EBITDA in Adhesive and Paint was 12.2% compared to 12.6% in Q2, mainly because of high-cost inventory and chemical and one of the loss in our U.K. business due to currency, which was to the tune of INR5.5 crore, if we adjust this INR5.5 crore inventory loss, our adjusted EBITDA for the quarter for Adhesive and Paint business it 13.8%. So, it is — reported numbers are lower mainly because of this one-off item of ForEx currency loan.

Bathware division has registered a sale of INR9.68 crore in gross in Q3, and EBITDA loss of INR13.8 crore and from this quarter onwards, we are expecting that we will start generating a gross margin. So, this loss number will start producing on quarter-on-quarter basis and we may come up in a good number, positive number for the next year onwards.

There was a loss of — I already discussed, there was a loss of INR5.5 crore in ForEx in U.K. so, if you see, we have published INR41 crore of EBITDA, this — if i add INR5.5 crore, it work out to be INR46.5 crore EBITDA, which is precisely 13.85% EBITDA of their respective divisions.

If I adjust sanitaryware losses of INR4 crore, in this quarter and adjust the EBITDA of pipe, then pipe EBITDA will also increase to 15.83%. So, in both the segment because of one-off item, EBITDA adjustment will be there. As far as the working capital is concerned, I think that is very well under control. Our receivable days are 23 days, inventory is 66 days, net working capital days are 34. Today we are sitting with a cash of INR476 crore.

With this quarter all inventory losses related to PVC and chemical, get over and we are seeing a very healthy EBITDA in Q4. Also, you are aware that Q4 is always a peak quarter for our industry, which always support us in economy of scale, which will further support to our margin in Q4.

To summarize, all what Kairav said and I communicated in my initial remarks, we at Astral will be ready with all new set of plant and products by March ’23, like each plant is ready with all products PVC is already rolled-out and CPVC will be ready by March. Jamnagar faucet plant is up and running, and we may look into the initial response of the market, if we may require to increase the capacity next year in Jamnagar plant also.

Valve plant, all products will be rolled-out by March, we already rolled-out few and revenue has started so, all 120 will be rolled-out. Adhesive plant at Dahej will be ready by March. So, that will also start generating revenue from next year onwards. Aurangabad plant, originally which we acquired for a Water Tank business, but looking to the demand scenario on-the-ground, we are seeing that we may be requiring some support of that plant so, we have already started PVC pipe manufacturing over there. And I’m very happy to inform you that last one, we have done a reasonably good sales from Auranga plant also.

Similar things, Sangli plant we acquired for DWC pipe, but looking to the demand of PVC products in that region also, we have started manufacturing PVC pipe in Sangli plant also. So, now we are adding our spare capacity of these locations into the pipe manufacturing also.

Hence, we are expecting that FY24 should be an excellent year for growth for us and capacity utilization will improve substantially. At present, we are just 57% utilization. So, whatever investment we have put for capex in last three years, will start generating cash-flow for us, which will improve our all financial ratios in a positive direction, in the coming times.

With this, I want to open the floor for Q&A session. Thank you very much. Over to, moderator.

Questions and Answers:

Operator

Thank you very much. [Operator Instructions] First question is from the line of. Rahul Agarwal from InCred Capital, please go-ahead.

Rahul Agarwal — InCred Capital — Analyst

Hi, good morning, sir, and thank you for the opportunity. Congratulations for a recovery in third quarter. Sir, two questions and then a bookkeeping question. Firstly on pipes, obviously, the recovery is much better than adhesives. And adhesives, my sense is, like-to-like removing paints last three quarter’s revenue has largely been the same. Some bit of color, if you can provide on the demand? Margins, you’ve already said that it will start improving fourth-quarter. But just on the demand and volume growth if, you would comment, sir, please? Thank you.

Hiranand Savlani — Chief Financial Officer

So, I think, adhesive margins has already started improving. As I said you, that if I adjust this ForEx effect, my consolidated margin is 13.9%, precisely. So, margin improvement has already started, because the pressure on the chemicals are coming down, but as far as demand is concerned, you are right, some pressure is there on the demand, because the rural demand was low in the previous quarter and now we are seeing some improvement into that.

Secondly, the U.K. economy is also under pressure. So, our overseas business is also not able to give us the required run-rate of growth. So, because of that, also some pressure has come. But now, I think, inflation has started coming down, there also and here also, we are seeing this post this Rabi crop and all, the demand in the rural side also will start picking-up, and we’ll be coming back to the top-line growth also. And now because of the price pressure will come, the product will also become more affordable. So, that is going to support us in the coming time.

Rahul Agarwal — InCred Capital — Analyst

Got it, sir. And second question was on Dahej. How much capacity does — you add from 1Q? What is the asset turn there and the time to reach 100% utilization?

Hiranand Savlani — Chief Financial Officer

So, I think, it’s too early to say when we will be able to utilize 100%. Let first we complete the plant and then we will, one-by-one, we will rollout the things. Because we are of the view that, which is — Dahej is a very substantial plant, so it will take some time, but we are working on a few products and there we are seeing a reasonably very-high growth in the coming time, because our team has started the groundwork on that and we have already appointed a senior people into that division. I will not disclose individual category, overall, this thing, because of competitive scenario, but we are of the view that, with that, we will be able to ramp-up our growth in the coming time.

And we will be utilizing the capacity as early as possible, but we can say that with this Dahej plant, the adhesive as a whole company, as a whole, I think we can generate a revenue of close to about INR1,800 crore, which is last year was INR1,000 crore. So, I think, substantial capacity addition is taking place and we are confident that with this addition of capacity, and with this introduction of a new product in a aggressive way in the market, we will be delivering good number in the coming times.

Rahul Agarwal — InCred Capital — Analyst

Got it, sir. And lastly, just bookkeeping. If you could just give me Gem’s revenue and EBITDA for the quarter and bathware revenue, please? Thank you so much. All the best.

Hiranand Savlani — Chief Financial Officer

For January?

Rahul Agarwal — InCred Capital — Analyst

No, for the Paint business, if you could give me the revenue and EBITDA number and for the bathware, the revenue number?

Hiranand Savlani — Chief Financial Officer

So, I think, Bathware, I already said, INR9.68 crore. And paint was roughly about INR52 crore last quarter. And EBITDA was 12.6% in paint. And if I adjust this one-off effect of U.K., than adhesive EBITDA was close to about 14.5% or something. So, now I think we are back to 14%, 15% EBITDA into the adhesive business.

Rahul Agarwal — InCred Capital — Analyst

Got it, sir. Sir, bathware, 9.68% is for nine months or 3Q?

Hiranand Savlani — Chief Financial Officer

No, it’s three months, because we started from last quarter.

Rahul Agarwal — InCred Capital — Analyst

Okay. Okay. Got it, sir. Thank you so much. All the best.

Hiranand Savlani — Chief Financial Officer

Prior to that, there were no sale. So, initially one or two-quarter, one-off expenditure will be there, because we are recruiting lot of man power also into that division. So, initially cost will be high, but once the run-rate will start picking-up from the next year onwards, I think, this all losses will go away.

Rahul Agarwal — InCred Capital — Analyst

Absolutely, sir. Thank you so much. All the best. I’ll come back-in the queue.

Operator

Thank you. The next question is from the line of Sujit Jain from ASK, please go-ahead.

Sujit Jain — ASK Group — Analyst

Compliments for a good set of numbers, and Welcome, Kairav. Sir, if you can just quickly spell out the capacity, that will be there now in Pipes division and as well as in adhesives?

Hiranand Savlani — Chief Financial Officer

So, I think, pipe, we are on a nine month basis, we are utilizing 57% capacity. So, we are still low and that is what I said in my initial remark also, that last three year, whatever capex we have done, I think they will start generating revenue from now. So, that’s why I said, that all financial numbers and ratios will improve. And that commentary, I’m continuously repeating every time that Astral is spending too much of money into the capex side, because we were decentralizing our company from one, two location to a country-level multiple location.

So, now we are adding pipe, as I indicated, Sangli, Aurangabad, now East plant, all this start contributing to us in the coming quarter. And we are quite confident looking to the current scenario of the demand, we are quite confident that numbers will be really good number in FY24. And this is not, I am telling you now, even last year, also I communicated that FY24 will be the really good year for Astral, because we are completing all our projects in FY24.

And adhesive, I think, adhesive capacity utilization is around 55% to 60%, but we have to give one old plant of this, Unnao of Kanpur to the previous promoter as per our original understanding in 2014. So, our understanding was that, till 2020, he has to give us the plant to use free, but because of this COVID, he was so generous, that he supported us for extended two-year. And now from April onwards, we will be shifting all this facility, whatever the vessels are there, we will be shifting to Dahej and we will start manufacturing.

So, capacity addition will be substantial, but at the same time, some capacity cut will be there because of shutting down this Unnao plant also. So, exact number of how much we are reducing from Kanpur and how much we are adding from the — this Dahej, I think, we will be able to give you in the next presentation of our full-years number.

Sujit Jain — ASK Group — Analyst

So, safe to say that, pipes capacity is now INR3,10,000?

Hiranand Savlani — Chief Financial Officer

Yeah, I think, we have already put it in our number also.

Sujit Jain — ASK Group — Analyst

Sure. And if you look at your–

Hiranand Savlani — Chief Financial Officer

Pipe is 286, not 3, 286.

Sujit Jain — ASK Group — Analyst

Okay.

Hiranand Savlani — Chief Financial Officer

2,86,000 precisely 085 — 95 sorry, 2,86,095.

Sujit Jain — ASK Group — Analyst

Sure. And inventory days have gone up. Working capital has also gone up. If I look at Q-o-Q it has gone up from about 20 days to 55 days, from March also it has gone up. What would be our cash-flow from operations for nine months?

Hiranand Savlani — Chief Financial Officer

So, I think inventory, we are going into the peak season. But if you see Q2 number, I don’t think it has gone up substantially. It is like that only. One or two days here and there will be there, on Q2 basis.

Sujit Jain — ASK Group — Analyst

And cash-flow from operations for nine months?

Hiranand Savlani — Chief Financial Officer

Nine month, i don’t have a handy number, please call me, post con-call, I will give it to you.

Sujit Jain — ASK Group — Analyst

And one last question on Seal It. While you have mentioned the currency loss, even if I add that back, the margin still have not stabilized to what they were before, this is for at least last two-three quarters, at least Q2 and Q3. When do you see situation there improving?

Hiranand Savlani — Chief Financial Officer

So, I think last con-call also we communicated that the Seal It is big player, as far as the Silicon business is concerned in the U.K. And silicon prices went up from $2.5 to as high as $8. Okay. From there it has started coming down. And again, it has come back to almost $2.2 $2.3. Okay. So, because of that consistently, there the inventory losses were there. So, now I think they are coming out from that, maybe by Q4 they will be done away with all, this old inventory and from Q1 onwards you will see there will be an improvement into the number. For this quarter, I think they deliver 8.6% EBITDA and we are of the view that Q1 onwards, I think they will be coming back to the normal EBITDA.

Sujit Jain — ASK Group — Analyst

But even their sales have come off from about INR90 crore, INR95 crore to INR75 crore odd, that is my calculation for quarter?

Hiranand Savlani — Chief Financial Officer

Naturally, when their key product which has come down from such a peak level of $8 to $2.3 to $2.4, they have to pass-on that price drop also to the market. So, topline will be — just like PVC in India, PVC manufacture has started eroding the topline. Everyone has moved to the volume. Similarly, there also the similar situation is there, because of the

Sujit Jain — ASK Group — Analyst

Has the volumes, gone up there?

Hiranand Savlani — Chief Financial Officer

Yeah?

Sujit Jain — ASK Group — Analyst

Has the volumes, gone up there, nine month basis?

Hiranand Savlani — Chief Financial Officer

Yeah, volumes are picking up, volumes are picking-up. On the contrary, we are doing expansion over there.

Sujit Jain — ASK Group — Analyst

Sure. Thank you.

Operator

Thank you. The next question is from the line of Nitin Jain from Fairview Investments, please go-ahead.

Nitin Jain — Fairview Investments — Analyst

Yeah, thank you for the opportunity. So, my question was related to the piping business. So, with the price appreciation that we’re seeing in the — in PVC, what kind of volume growth and given that, you have mentioned, Q4 is our peak season, what kind of volume growth can we pencil in for say Q4 and Q1? And my next question is, any update on the income tax matter that was — that occurred last year? Thank you.

Kairav Engineer — Vice President of Business Development

As far as the PVC prices go, they did increase by INR13 in the end of last quarter. But now, PVC is no longer going up. PVC has been stable since January and we expect this to be stable for the coming few months. But it’s again too soon to say, because we don’t know about the global situation and there can be anything happening. So, too early to comment on where the PVC will go.

As far as volumes go, I think, we are comfortable in sticking to our guidance of 12% to 15% volume growth. So, we don’t want to give a very-high guidance and then, just not achieve it. We stick to a very conservative guidance. But looking at the overall scenario, and looking at how January has gone and how the first week of February has gone, and I am very confident that Q3 — Q4, we will give a decent volume number.

Hiranand Savlani — Chief Financial Officer

So, I can add to what Kairav said, that 12% to 15% is our long-term guidance, but if you consider this year, I think this year will be much, much higher than. You can see the nine month number also, nine month basis, we are already up by almost 20%. So, this figure will be ending with a very-very high double-digit number, I can say. And next year onward, Kairav has said long-term, 12% to 15% will be the minimum guidance. But looking to the current situation of the market, we may exceed that number also, but keep fingers crossed, because we should not jump-in on a 1 quarter higher number basis. So, we have to see how the consistency is maintained into the PVC prices and how the market is going to response.

But overall, the demand in the plumbing side is very-very robust. So, it looks like that numbers should be very-very encouraging, but I think, as Kairav rightly said that it’s too early to say on the PVC price and all these front. So, because of that we will not be able to tell you on a quarterly, what will be the run-rate, but yes, as of today, when we are talking 8th of February, this quarter is going excellent, I can say like that.

Nitin Jain — Fairview Investments — Analyst

Great. And my second question on the income tax, the thing that happened last year, any update on that?

Hiranand Savlani — Chief Financial Officer

I don’t think, we have not received any notice or any demand as far as income tax department is concerned. So, if anything will be there, we will definitely update, being a listed company, we — it is our responsibility, it is our duty to intimate to the shareholders. But as of today, we don’t see any problem in the system.

Nitin Jain — Fairview Investments — Analyst

Sounds good. And all the best. Thank you.

Hiranand Savlani — Chief Financial Officer

Thank you. Thank you.

Operator

Thank you. The next question is from the line of Venkatesh Balasubramaniam from Axis Capital, please go-ahead.

Venkatesh Balasubramaniam — Axis Capital — Analyst

Yeah. Thank you for the opportunity. I had a few data question. First of all, in the third-quarter, did you have any inventory loss or gain in the Pipe segment? And if it was there, can you please share it?

Hiranand Savlani — Chief Financial Officer

Yeah, there was a loss of PVC type, it was October and November, there was a sizable loss. So, some of loss, we cover-up in December. Sizable, we will be covering up in Q4. That’s why in the initial remarks, we said that we will be having a healthy EBITDA margin and there will be some element of inventory gain also in Q4, because whatever the price rise in PVC, we have seen, that was in the month of December. So, because of that the benefit will come in January and February. So, we are seeing good number in Q4. But yes, in October and November, there was a loss. It is very difficult to quantify how much will be there, but it should be close to about INR35 crore kind of level was there. But it is not a approximate based number, it is not a perfect number, it is my guess work, I am telling you. So, don’t rely on exact number.

Operator

Mr. Venkatesh, does that answer your question?

Venkatesh Balasubramaniam — Axis Capital — Analyst

No, it doesn’t. I was — what I was asking is, does the — this INR25 crore is the third-quarter, inventory loss approximate number or is it like you gained back part of this INR25 crore in the month of December?

Hiranand Savlani — Chief Financial Officer

Net INR25 crore.

Venkatesh Balasubramaniam — Axis Capital — Analyst

Okay. Now, the second question is, I don’t know if you shared it, but it was not very clear. Can you share the Paint’s revenue and EBITDA in the third-quarter?

Hiranand Savlani — Chief Financial Officer

INR52 crore revenue and 12.6% EBITDA.

Venkatesh Balasubramaniam — Axis Capital — Analyst

12.6% EBITDA. Okay. Now, you in your press release also have given that for the nine months, sanitary ware and faucets has done INR13 crore loss. And did you also mention that in the third-quarter, the loss was INR4.5 crore, did you share this number? I’m just checking.

Hiranand Savlani — Chief Financial Officer

Yeah, INR4 crore to INR4.5 crore, yes.

Venkatesh Balasubramaniam — Axis Capital — Analyst

What exactly was the number in the second-quarter? Is it possible to share?

Hiranand Savlani — Chief Financial Officer

Second-quarter was around INR3 crore or something like that.

Venkatesh Balasubramaniam — Axis Capital — Analyst

Okay. Okay. Now —

Hiranand Savlani — Chief Financial Officer

Because in this quarter, we have added lot of new teams with us. And plus, Jamnagar plant related initial setup costs was also there, because we opened up the Jamnagar plant also so, that cost was also there. And revenue was not there, but from this quarter onwards, revenue will start flowing. So, we are expecting that this loss number will wipe out in next couple of quarters.

Venkatesh Balasubramaniam — Axis Capital — Analyst

Okay. Okay. Now, in the first-nine months, sanitary ware and faucet, you didn’t have any revenues, is it?

Hiranand Savlani — Chief Financial Officer

No, because we didn’t started in the market. We started from Q3 only.

Venkatesh Balasubramaniam — Axis Capital — Analyst

Okay. No, because you shared some number INR9.68 crore for third-quarter, was that a revenue?

Hiranand Savlani — Chief Financial Officer

That is for the Q3 number, that is the Q3 number.

Venkatesh Balasubramaniam — Axis Capital — Analyst

Okay. Now, the last one small query, which I had, if you see your consolidated financials, you have a — at the other income level, you have a loss of around INR2 crore. Why is that?

Hiranand Savlani — Chief Financial Officer

So, like INR5.5 crore loss was there in the U.K., which I said in my initial remark also, and there was gain of INR3 crore something in my other operation like Astral and all wherever we are parking our liquid funds and all, so that was a gain. So, net of was INR2 crore minus.

Venkatesh Balasubramaniam — Axis Capital — Analyst

Okay. No, but shouldn’t that come under ForEx gains which you anyway give separately?

Hiranand Savlani — Chief Financial Officer

No, because as per the accounting policies are such that nine months, whatever the other income is there, you have to reduce six months and the balance figure you have to show as three month. So, because of that, this whole question was raised by me also to my team that why you are showing here? So, they said no, it is like that only, because gain will be like that up stair and loss will be on down.

Venkatesh Balasubramaniam — Axis Capital — Analyst

Okay. Okay.

Hiranand Savlani — Chief Financial Officer

They have to net out on a nine month versus six month, whatever the difference is there they have to show like that way.

Venkatesh Balasubramaniam — Axis Capital — Analyst

Okay. Okay. Thank you very much.

Hiranand Savlani — Chief Financial Officer

So, it was one question to me personally also to be very honest.

Venkatesh Balasubramaniam — Axis Capital — Analyst

Okay. Okay. So, thank you very much. I just had one request to you that if on a consistent basis, on a quarterly basis you share in, at least in the call you share the plumbing revenues and — rather the sanitary ware, faucet revenue and EBITDA, because that helps us understand how the underlying Pipes business is doing, otherwise you end-up thinking that actually the Pipes business is not doing very well, which is actually not positive for the — yeah.

Hiranand Savlani — Chief Financial Officer

That’s why in this quarter, I was specifically given that number.

Venkatesh Balasubramaniam — Axis Capital — Analyst

Yeah. Okay. Okay. And all the very best for the future.

Hiranand Savlani — Chief Financial Officer

Thank you, sir. Thank you.

Operator

Thank you. The next question is from the line of Praveen Sahay from PL India, please go-ahead.

Praveen Sahay — PL India — Analyst

Yeah, thank you for opportunity. And firstly, congratulation on the CSR award and to the — Hiranand, sir for your CFO award. And now the question from my side is related to the volume growth of 30% which you have delivered. Can you give some more color on how is — the further like PVC, CPVC or a corrugated pipe tank has performed? If not in numbers, in the quantitative terms, if you can give some view on that?

Kairav Engineer — Vice President of Business Development

Hi, Praveen. Sorry, we don’t give any segment-wise data, be it value or volume, because as you know, the competitive intensity in the business is too high. So, we would like to maintain the secrecy on our vertical wise data.

Praveen Sahay — PL India — Analyst

Yes, so.

Kairav Engineer — Vice President of Business Development

Praveen, I can give you some color that in all segment we have grown, I can say like that way, all segments, whether it is a PVC, whether it is a CPVC, whether it is a tank, whether it’s the DWC, all segment, there was a growth. Otherwise, this 30% growth is not possible. We are not a agri company, you know. So, most of the growth has come from the plumbing side of the business. So, because of that, all segment we had a growth and that’s why you are seeing this number.

Praveen Sahay — PL India — Analyst

Great. Second question, sir, related to the sanitary ware. And in the opening commentary, Kairav, sir has mentioned that sir, 25,000 bidding on the way for a bath building, what is that exactly?

Kairav Engineer — Vice President of Business Development

So, we are currently quoting in projects, which the total pipeline is around 25,000 bathrooms. So, we are working on a few projects. And we are confident that we will close them. So, that is why, I had mentioned that we are actively working on certain large-scale projects across a few metro cities in India, where the quantum is about 25,000 bathrooms. We have already supplied to more than 3,800 bathrooms in our Project business, in the sanitary ware and faucet division.

Praveen Sahay — PL India — Analyst

Okay. And the next question is related to the paint, you also mentioned about the rebranding of that. So, is it like a Astral brand, you’re going to do with the paint or?

Kairav Engineer — Vice President of Business Development

So, we have not yet decided on exactly what path to take. Right now, the Paints Business, the brand-name is Gem Paints. Now, Gem Paints is a very strong brand in a couple of South states where it operates. So, we have not yet decided whether to change the brand-name from Gem Paints to Astral Paint or to keep it Gem Paints. So, based on the market scenario and the feedback that we will get from our sales team and from our channel partners, we will take a call-in the coming few months. Right now, we are working on the packaging of the product.

So, we are redesigning all the packaging, and then we are slowly and steadily working on our new website and new creatives, and — so, a lot of stuff is happening, but the rebranding from either keeping Gem or Astral is not yet finalized. We will communicate that to the market, once we take a decision on that.

Praveen Sahay — PL India — Analyst

Okay. And the last question is related to the incremental capacity at Aurangabad plant and Sangli plant, you had created for the PVC pipe. How much is the capex you had incurred from that?

Kairav Engineer — Vice President of Business Development

It is very less capex actually, basically, the plants, we already had and the buildings were already constructed. So, it was basically just buying the extruder for the PVC pipes and ditching them there. So, it was not a very significant — couple of crore hardly it was there.

Praveen Sahay — PL India — Analyst

Okay. Okay. Thank you. Thank you. That’s it from my side. All the best.

Kairav Engineer — Vice President of Business Development

Thank you.

Operator

Thank you. [Operator Instructions] The next question is from the line of Mitul Shah from Reliance Securities, please go-ahead.

Mitul Shah — Reliance Securities — Analyst

Good morning, sir. Thank you for giving me opportunity and congratulations on a very strong performance. Sir, I have first clarification on you said pipe utilization of 57%. So, that is including this new Sangli and Aurangabad plant or that would be incremental coming at — of the quarter?

Hiranand Savlani — Chief Financial Officer

No, no, no, including that only, Sangli, Aurangabad, Bhubaneswar, all put together.

Mitul Shah — Reliance Securities — Analyst

Okay. Sir, and second question on this pricing of PVC, as well as adhesive also, where we are saying that price increase towards the end of December, and then onwards it is more or less stable in Jan and Feb. So, on a blended average Q3 average price versus Jan-Feb is how much it would be higher now, roughly?

Hiranand Savlani — Chief Financial Officer

So, I think it is very difficult to arrive that price rise, because we have not given any price rise to the market. What we communicated that whatever the high-cost inventory was there, that is gone away from the system. So, we are not increasing any price.

On the contrary, if the demand comes more than we may have to reduce also the price, we have to see how ultimately we are settling down our margin. So, based on that, pricing will be decided, but as of today, January, there was no change in the price in Adhesive or Paint or Pipe division. We have maintained the same pricing what was there in December. December, there was a high fluctuation in the price.

Mitul Shah — Reliance Securities — Analyst

Yes, sir, I am asking for Q3 average is October-November were relatively low-price, December we are saying it has increased and the December higher-level is maintained in January. So, compared to Q3 average, it should be slightly high, right?

Hiranand Savlani — Chief Financial Officer

Definitely it will be high, much higher, because INR13, INR14 price rise was there in December. So, naturally, it will be high.

Mitul Shah — Reliance Securities — Analyst

Okay. And lastly, on the Tank business side, sir, that we are on-track to achieve our targeted revenue in the first year itself. So, going-forward, how much in terms of expansion, network, et-cetera, if you can give more details? And once we reach to a stable volume or size, what could be the stable margins in next two-three years for this segment?

Hiranand Savlani — Chief Financial Officer

So, like Tank you can see in the market, Astral is selling always at a premium. We don’t — we are not a commodity company, which we have repeatedly said, we are a brand. So, we will not sell any product at a loss, that is a very-very clear thought process among all the senior people working in Astral. So, even today also tank also, you see our margin will be somewhere around 12% to 13% minimum, and that is the beginning of the journey, and that is with a low capacity utilization.

So, with this increase in the utilization, I think we will be settling down somewhere around 14%, 15% margin and that we have communicated long back-in our previous calls also, if you can go back to the — our transcript also. So, we are very clear that we will be working on a 14%, 15%, that is a healthy margin for any brand to work. So, we will be maintaining that kind of margins.

Today, definitely we are still low, because we are gearing up our market-share and still we are not grown-up our market even 2%, — even if I do INR100 crore this year, we would be hardly 2% of the market share. So, it is not a substantial market-share you gain. It is just the beginning of the journey. So, we have to see, we have to evaluate, because right now, our tank is rolled-out from almost five location.

So, in future also, we will see how many more location will be added into the Tank side. Because, tank is a basically a logistics play. If you are near to the market you will be able to serve to the market in a better way, because storage is the biggest challenge for any distributor or a dealer. So, if you are near to the market, you can gain fast market-share, otherwise it’s a challenge. So, we have to see how — first, we have to utilize our current capacity and then we will see how best way we can add the more capacity into the existing plant or we may add to the new plant, that we have to work-out, but right now we are operating from five location, and in future we may add more.

Mitul Shah — Reliance Securities — Analyst

Yes, sir. And sir, if I can squeeze one more question on dealer level inventory for Pipe business compared to traditional Q4, how it has been? And restocking related details if you can give?

Hiranand Savlani — Chief Financial Officer

I think, dealer level inventory is still not at the optimum levels, because the dealer level inventory was very dry in Q3. So, with the PVC upward movement, the demand came from the end-consumer, the farmer level demand, and the builder level demand, developer level demand. So, a lot of the product that was sold-in Q3 was consumed in the market rather than building up the inventory. So, from January onwards, we are experiencing that the dealer level inventories have started building up, but it is still not at the — I would say, it is still not at the optimal level as it used to be before PVC started falling.

Mitul Shah — Reliance Securities — Analyst

And, sir, and all this is 25,000 bathroom we are talking about, what could be the ticket size per bathroom here, roughly?

Kairav Engineer — Vice President of Business Development

I think, it is difficult to say it.

Hiranand Savlani — Chief Financial Officer

It depends on the the project. So — and what product they use. So, we have faucets starting from under INR2,000 and then we have faucets that are selling at INR12,000, INR13,000. Similarly, with our sanitary ware products and ceramic product also so, it depends on what range this developer decides going for, if it is a low-cost housing than the ticket size is different, if it is a a little bit of a medium to an upper scale sort of a housing complex than the the ticket size is different.

Kairav Engineer — Vice President of Business Development

So, basically, we have a four category into sanitary ware and faucet. Start range, midrange, upper mid range and the high end. So, we are quoting to all categories of the developer. So, we don’t know which category the order will flow.

Mitul Shah — Reliance Securities — Analyst

Thank you very much and all the best, sir.

Hiranand Savlani — Chief Financial Officer

Thank you.

Kairav Engineer — Vice President of Business Development

Thank you, sir.

Operator

Thank you. [Operator Instructions] The next question is from the line of Achal Lohade from JM Financial Institutional Equities, please go-ahead.

Achal Lohade — JM Financial Institutional Equities — Analyst

Yeah, good morning. Thank you for the opportunity. What I wanted to check is that, you mentioned that in your comments that the demand has been robust in the Plumbing business. If I were to look at the QoQ jump-in the volume is about 13% for us, while it is 30% to 50% for some of our peers. So, just thought of getting your perspective on the same?

Hiranand Savlani — Chief Financial Officer

So, I think we communicated earlier also, we are not agri pipe company. So, just if you see, the volume is coming from the agri side of the business, that’s why if you can compare the per kg realization of Astral versus other brand, you will clearly find the demarcation over there and we are much, much ahead of any players in the market. Similarly, if you see the margins, we are much, much ahead of any players in the market. So, that is a very clear indication that we are a plumbing company, more focused on the CPVC side of the business, that’s why you can’t compare the two companies of all other peer. We have to compare apple versus apple. We can’t compare apples versus banana. So, that’s the big gap, because right now the biggest demand is coming from the agri side of the business, because last two years, the demand was very, very low into that segment.

And secondly, the base effect, you have to also consider. Because base effect was very low for the other company, particularly the agri dominated companies. So, we have to consider that also, that’s why we have given the Press Release, the five year CAGR numbers also in all fronts, top-line, EBITDA, volumes all respect, we have given the number. And that again I’m telling you, that number will not be a comparable, because the nature of business of every company is different.

So, all companies are respectable company in the market. We don’t want to say that other companies are not good, all are doing great in their respective fields, but comparing volume number, it will be very, very difficult, because if somebody is CPVC dominated, their volume will be low. If you compare only plumbing number, yes, definitely. If some companies are giving you the number of plumbing, volume of plumbing, then yes, definitely you can compare. And then, you can say that which company is doing, yes, and I will be very happy to understand from you, if you get this kind of number, I would be definitely learn from you and wherever we feel that we are not doing good, we have to improve ourself also.

Achal Lohade — JM Financial Institutional Equities — Analyst

Got it. So basically, I just wanted to clarify, this is largely driven by agri or the others, so, which is not our key focus area and that is the key difference here.

Hiranand Savlani — Chief Financial Officer

That is our hunch — I cannot 100% without seeing anyone’s books, i cannot 100% comment that all their growth is coming from agri, but from the market sentiment that developed in the end of Q3 with PVC prices going up, large chunk of demand was coming from PVC. And with the farmers not having bought new agri product for a large time, it was — PVC prices had bottomed-out. So, the demand was very robust from the rural India and the farmers. And also line businesses of agri pipes were also doing very good. So, overall, this is what our market and channel checks have.

Achal Lohade — JM Financial Institutional Equities — Analyst

Got it. Got it. And just a small clarification, you said the inventory loss for the second — for the third-quarter is INR25 crore, right, 2-5, INR25 crore, right?

Hiranand Savlani — Chief Financial Officer

I say, approximately, it is not a correct number, because it is very difficult to arrive the number of inventory loss. This is the approximate number.

Achal Lohade — JM Financial Institutional Equities — Analyst

And this would be realized loss, so to say, right? I mean given its sold in October-November, this will be realized loss?

Hiranand Savlani — Chief Financial Officer

Yeah, so, that’s why we say that in December the PVC price shoot up. So, that benefit, we will get-in the month of January and to some extent in February, if the PVC price maintain at same level, whatever the closing level of December was there.

Now suppose, hypothetically, in February, if the PVC price goes up from here, then there will be a further gain in February and March. And if it goes the other way around, it’s down, then the gain will be low. But I think now it is at least good that in our peak season the price are stable. PVC price had not changed from 1st of January, so that is a very-very good thing for the industry, because that gives the confidence to the dealer to put up the inventory, because normally, dealers are afraid to have a more inventory when there is a fluctuation in the raw-material side, but here at least one thing is good, so, last 40 days, the prices are stable.

Achal Lohade — JM Financial Institutional Equities — Analyst

Got it. And just one more question if I may with respect to — like you mentioned 13% to 15% volume growth for the Pipes business. Similar, guidance for the adhesives peak?

Hiranand Savlani — Chief Financial Officer

Adhesive also we have — see, it is very difficult to give you one, one, category wise guidance. We have given already in FY20 presentation first time, we have given the guidance of five year. Okay. That we will be doubling our revenue in next five years. And if you pick-up the number of ’22 or maybe ’23, I think we are going much ahead of what we have guided. So, we are continuously giving the guidance that we will be maintaining that run-rate, that doubling our revenue in next five years, that is what guidance we have given.

Quarterly, very, very difficult to give the guidance or individual segment-wise giving guidance, its really challenge. And within segment also, if I start giving numbers you’ll ask the category-wise guidance. So, I think it is very, very difficult for anyone to give you that kind of number, but yeah on a broader basis, we have committed that we will be delivering 15% plus revenue guidance that is what the five year doubling. And today, we are much, much ahead of what we have guided.

And our new product contribution will start coming now, which I already said in my initial remarks, that is very important to see how that new divisions are going to perform, whether it is a valve, whether it is a faucet, whether it is the sanitary, whether it is East plant performance, we have to see how this all view things are going to support us. Based on that, the guidance may change on upward direction also. But it is too early, so, we don’t want to unnecessarily give you too much of hope that we can do this, we can do that, it is very difficult because launching is easy, but then to grow up in the market, it is always challenging.

Like tanks, we were never expecting that very second year of performance, we will be doing INR100 crore. But in the very first year itself, we got a confident, that’s why we said that we will be able to do INR100 crore. Similarly, sanitary ware and faucet, I’m not giving any guidance for FY24, because we know it’s not an easy business. We have to work hard. First, we have to create this 500 display center, that is very important and success for us. If we are able to do 500, I’m sure we will be able to deliver the numbers also, but till we are not able to do that part and start talking about the number, I think it would be too early.

So, I don’t want to give any guidance on the sanitary ware and faucet for next year, because we have to do, still lot of work. Same thing will be in the paint. Paint also, we are working since last almost six month, we are just understanding. And now we are going to complete our SAP implementation. Once you implement SAP, then you start getting the authenticated number.

Now, based on the tally number you can’t rely and take a final call. Our all seniors are working on a certain system base approach. So, now on a tally, we can’t work on that way. So, first of all, our utmost challenge is to implement SAP. And SAP implementation for a smaller companies is another set of challenge. So, we are working on all front, but I think number, maybe 1% or 2% here and there. Look at the five year growth of Astral, look at 10-year growth of Astral, don’t look at one quarter, one year number.

Please join with us for next 10-year journey of the growth, rather than one quarter, two-quarter. That’s why every call we are communicating that we are a company which will give you a consistent see of the number. We don’t want abnormal kind of growth also, at the same time, we won’t — don’t want to de-grow also, but we want to maintain the consistency.

Operator

Thank you, Mr. Lohade. I request you to rejoin the queue for any follow-ups, as we have several participants waiting for their turn. Thank you. We take the next question that is from the line of Rajesh Ravi Kumar from HDFC Securities, please go-ahead.

Rajesh Ravi Kumar — HDFC Securities — Analyst

Hi, sir, good morning and congrats on good set of numbers. Coming to the Paints — this Plumbing business, the inventory losses, though you are talking approximately INR25 crore, I think Q1 and Q2, the losses were close to INR25 crore and INR45 crore. And Q3, the price, resin price fall was quite low INR12, INR13 from September exit. So, just wanted to understand how this accounting works, because the number seems to be quite high, given what we booked in the first-half?

Hiranand Savlani — Chief Financial Officer

So, what happened, that once you book — once you sale, than the real number of loss comes. That is in the inventory will not come, because it is at the cost value. Okay?

Rajesh Ravi Kumar — HDFC Securities — Analyst

Okay.

Hiranand Savlani — Chief Financial Officer

In this Q3, we have sold the highest-volume. If you see the last nine months number, the highest sale took place in the Q3. So, majority of the low cost — with high-cost inventory was sold out in the Q3.

Rajesh Ravi Kumar — HDFC Securities — Analyst

So, is it like —

Hiranand Savlani — Chief Financial Officer

That’s why I said — let me complete. That’s why I said, that Q4 will be a deal, because whatever the low-cost inventory we have purchased in the month of October, November, December and continuous basis that is not sold-out, that will be sold in the Q4. That’s why we say, there will be some element of inventory gain also in Q4. So, basically, accounting is that based on the selling, not on the basis of purchase of bid, anything else.

Rajesh Ravi Kumar — HDFC Securities — Analyst

Okay. So, it’s not basis the outstanding at September and whatever inventory you had, you had marked to — marked it down. So, it is basis sales on actual basis?

Hiranand Savlani — Chief Financial Officer

It will never be marked down, because it is not sold.

Rajesh Ravi Kumar — HDFC Securities — Analyst

Okay.

Hiranand Savlani — Chief Financial Officer

It is at the cost.

Rajesh Ravi Kumar — HDFC Securities — Analyst

Okay. So, the nine month number would give a fair understanding of your total losses because this consummates the whole cycle?

Hiranand Savlani — Chief Financial Officer

Yes, exactly, you got it.

Rajesh Ravi Kumar — HDFC Securities — Analyst

Okay. And sir, secondly, on the adhesives and paints revenue, if I look at the prior numbers have been restated. Any specific reason for the same? Because, I don’t think there is change in the business, the paint numbers have already been affected since March ’22.

Hiranand Savlani — Chief Financial Officer

So, I think, we have started from Q1 onwards, not last year. Q1 onwards Paint business we have added.

Rajesh Ravi Kumar — HDFC Securities — Analyst

So, why the prior numbers have been restated, sir?

Hiranand Savlani — Chief Financial Officer

Because we don’t have authenticated number with us. There is no audited numbers. So, our auditor will not consol that number. They said, we did a quarterly audited number.

Rajesh Ravi Kumar — HDFC Securities — Analyst

Okay. Okay. So, just if you may have handy —

Hiranand Savlani — Chief Financial Officer

Small-sized company, normally nobody make the quarterly audited number.

Rajesh Ravi Kumar — HDFC Securities — Analyst

Agree, agree, agree on that. So, just September quarter, can you give the paint’s EBITDA margin again, please? December, you gave 12.6%, for September how much was the number?

Hiranand Savlani — Chief Financial Officer

September, I don’t have a handy number with me. Can you call me post con-call, I can — have to check my sheet and let you know.

Operator

Thank you. The next question is from the line of Sujit Jian from ASK, please go-ahead.

Hiranand Savlani — Chief Financial Officer

I think, it was 13.9% in Q2, Paint business.

Operator

Yes, Sujit Jain from ASK, please go-ahead with your question.

Sujit Jain — ASK Group — Analyst

Sir, just one question on the rates from the time you acquired the company, what would have been the volume CAGR? And is the business finally back-in terms of growth in terms of volumes?

Hiranand Savlani — Chief Financial Officer

So, I think now this year is doing great. So, this year will be a reasonably very-high growth into that business. This year, I think on a nine month basis, we are up by — I don’t know exact number, but close to about 25% volume growth. So, doing very well for us this year. And looks at the way now, government has done lot of announcement into the budget for the infrastructure-related things, that looks that we will be getting a reasonably high-growth into that business, also, plus railway side also, government had done lot of announcements. So, we are supplying certain products related to that also, road related announcement is there, we are supplying to that related products also. I think, hopefully it will do good for us.

Secondly, to utilize that plant we were having the space. So, we thought that by the time these products start picking-up, why not to utilize the space over there. So, we have put up our PVC machines over there in Sangli location, and that has started giving us a good volume from that location. So, ultimately we are able to utilize that plant because all other facilities were there, utilities and all were there, because, ultimately it is pipe plant. So, now all our agri products SWR products, all have started rolling out from that locations also.

Sujit Jain — ASK Group — Analyst

Yeah, that is good to know. But we’ll have to look at three year CAGR, because the nine month base was muted, so hence 25% growth. So, what would have been the three year CAGR in volumes?

Hiranand Savlani — Chief Financial Officer

I don’t have a handy number for the three year. And secondly, we don’t share also individual product-wise, that is the policy of the management that we don’t want to share all this individual product category-wise growth.

Operator

Thank you. Next question is from Girish Choudhary from Spark Capital, please go-ahead.

Girish Choudhary — Spark Capital — Analyst

Hi, good morning, sir. Firstly, if you can talk a little bit about CPVC market in terms of how is the competitive intensity, your market-share the price in tanks? And the other thing is that we have also seen PVC prices coming down sharply. So, do you see any impact to the CPVC volume? So, that’s the first question.

Hiranand Savlani — Chief Financial Officer

No, CPVC prices will not go down beyond a certain extent is because, we already — India already has an anti-dumping duty in-place and that anti-dumping duty kept the CPVC price at $2. So, even if PVC falls from here also and when PVC was at all-time low in December — November and December, CPVC prices have remained very stable. So, because of this anti-dumping duty in-place, the CPVC price will continue to hover around a certain level and will not fall beyond $2. So, I don’t think there is any problem on that side.

Operator

Thank you. [Operator Instructions] The next question is from the line of Sandesh Barmecha from Haitong Securities, please go-ahead.

Sandesh Barmecha — Haitong Securities — Analyst

Thank you for the opportunity. Sir, just one question. Sir, what was our nine month FY23 capex? And what is our guidance for FY24 and ’23 as well?

Hiranand Savlani — Chief Financial Officer

I think, next year we have not still finalized the budget, so will be difficult for me to give you the number, but nine months basis, it was around INR190 crore. This INR190 crore include this acquisition of our Jamnagar faucet plant also.

Sandesh Barmecha — Haitong Securities — Analyst

Okay. And in FY23 full-year guidance, sir?

Hiranand Savlani — Chief Financial Officer

Full-year guidance will be, i think, another INR40 crore, INR35 crore, INR40 crore will be there.

Operator

Thank you. The next question is from the line of Jaynesh Kariya from Antique Stock Broking Limited, please go-ahead.

Jaynesh Kariya — Antique Stock Broking LimitedLimited — Analyst

All my questions have been answered. Thank you so much.

Hiranand Savlani — Chief Financial Officer

Thank you.

Operator

Thank you. The next question is from the line of Nikhil Agarwal from VT Capital, please go-ahead.

Nikhil Agarwal — VT Capital — Analyst

Good morning, sir and thank you for the opportunity. Sir, I just wanted to know what would be the expected volume growth for the industry for the next few years?

Hiranand Savlani — Chief Financial Officer

Next?

Nikhil Agarwal — VT Capital — Analyst

Few years, two, three years — volume growth?

Kairav Engineer — Vice President of Business Development

I think, last two-year industry was not growing. FY20, I think was the negative growth of 17% or so. FY20 — sorry FY21 was negative by almost 17%, 18%. FY21 was roughly about flat, or minus 2%. And this year we have to see because it’s not published data. So, very difficult basis the — what I have got the information from the market, I don’t know whether it is authenticated or no, nobody is officially publishing this data. So, this is what, I have got from my reference check and all I’m telling you.

But overall, if you look at, things that have been announced, the budget that was announced recently and looking at the real-estate market, I think the next couple of years will be very good for piping companies. A lot of the inventory of — finished inventory of apartments and houses got sold during the COVID time and lot of new projects have been announced PAN India. So, after the announcement of a project, it takes about one and a half year or so, for it to reach the plumbing stage. So, a lot of new construction is also happening.

So, next two or three years will be very good for the plumbing industry and based on the infra measures that have been announced, it will also be very good for the companies dealing in infra products.

Operator, you can take the last question.

Operator

Sure, sir. Thank you. We will take the next question from the line of Girish from Morgan Stanley, please go-ahead.

Girish Achhipalia — Morgan Stanley — Analyst

Thanks for the opportunity. I may have missed this. The dealers inventory right now that exists for pipes, for your large dealers, how much is that versus usually impact, you would have seen in the past? And second one was just on the Dahej chemical plant. Are we expanding more on the consumer side, if you can give us some rough split around that INR1,800 pipeline of revenue, how much would be industrial versus consumer? Thanks.

Hiranand Savlani — Chief Financial Officer

Well, let me answer your second question first. So, major chunk, we are going into the consumer side only. And you know that, Astral is a brand. So, normally we believe in the consumer side more so, more off will be on a consumer side.

Secondly, your question was relating to the dealer inventory. I think, has already replied, but again, I’m repeating that thing that PVC prices started going upward journey from December onwards. So, initially dealers were not having confident that this will be maintained or not. So, because of that they were shy away for taking their inventory, but slowly and gradually they have started picking-up the inventory and now they all are in a peak season. So, they have to keep certain inventory, otherwise they may lose the business also, because in a peak season, you have to always having the inventory.

But again, it is not 100%, I can say, dealers are sitting with a full inventory, but maybe 75% or so dealers are sitting on the inventory. And 25%, still vacant positions are there. So, we have to see how the stability is coming in the PVC side and based on that, they will be fully having the inventory, which normally they keep with them.

Girish Achhipalia — Morgan Stanley — Analyst

Thank you, sir and all the best.

Hiranand Savlani — Chief Financial Officer

Thank you. Thank you.

Kairav Engineer — Vice President of Business Development

Thank you.

Operator

Thank you. Ladies and gentlemen, that would be our last question for today. I now hand the conference over to Mr. Kairav for closing comments. Thank you and over to you, sir.

Kairav Engineer — Vice President of Business Development

Thank you everyone for joining on this Q3 earnings call and thank you Pranav for hosting it. Hope everyone is satisfied with the call and our numbers, and we continue — we will continue to work hard and we will come back with positive numbers in the fourth-quarter. And also we will continue to work hard for the coming years and we will follow our guidance as given to our investors. So, thank you all and thank you for joining so early in the morning. It was lovely interacting with all of you. Thank you.

Hiranand Savlani — Chief Financial Officer

Thank you, everyone for participating in this call. If you missed out any question or any number which anybody want to understand, please call me directly, maybe after one-hour, and I will be happy to reply all of you. Thank you very much.

Operator

[Operator Closing Remarks]