Carysil Limited (NSE: CARYSIL) Q4 2025 Earnings Call dated May. 21, 2025
Corporate Participants:
Unidentified Speaker
Chirag Parekh — Chairman and Managing Director
Anand Sharma — Executive Director and Group CFO
Analysts:
Unidentified Participant
Ayush Chabria — Analyst
Resha Mehta — Analyst
Vishal Dudhwala — Analyst
Vaidik Bafna — Analyst
Sanjay Ladha — Analyst
Resham Jain — Analyst
Reet Ranawat — Analyst
Ravi Naredi — Analyst
Ashutosh Parashar — Analyst
Nikhil Gada — Analyst
Vansh Solanki — Analyst
Rupesh Tatiya — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to the Q4 and FY25 earnings conference call of Carousel Limited. This conference call may contain forward looking statements about the company which are based on the beliefs, opinions and expectations of the company as on the date of this call. These statements are not the guarantees of future performance and involve risks and uncertainties that are difficult to predict. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing Star then zero on your touchstone phone.
Please note that this conference is being recorded. I now hand the conference call over to Mr. Chirag Parekh, promoter and managing director of Carousel Limited.
Chirag Parekh — Chairman and Managing Director
Thank you for joining us for the Carousel Limited Q4 and FY25 earnings conference call. I trust you had an opportunity to review our financial results and investor presentation both available in the company’s website and on stock exchanges. Joining me on this call is Mr. Anand Sharma, our Executive Director Group CFO and SGAI Investor Relations Advisors. Before we get into discussions about business, I on behalf of the entire Carousel family would like to first of all give heartfelt condolences. Goes to victims of Perriga to salute the bravery of our armed forces. The unwavering courage, dedication and precision under our strong leadership.
For Prime Minister Srinarendra by Modi Operation Sindur to punish the perpetrators and planners for the attack on innocent citizens. His operations have demonstrated that India is strong enough to protect its people and territory. Red become a developed nation by 2050 by all means macro environment and strategic positioning. The global economy is undergoing a period of profound transformation. While geopolitical tensions and ongoing trade disruptions continue to present challenges, they’re also giving rise to new opportunities in this rapidly evolving landscape. Agility, resilience and a focus on long term value creation have never been more important. We have navigated extremely challenging environment over the past three years.
The period was marked by significant global disruptions including supply chain constraints, inventory destocking cycles and a broader economic slowdown particularly in Europe UK one of our key markets. One of the most significant event today repositioning of global trade due to sharp escalation global tariff programs led by the recent improve by the US tariffs. This has triggered a wave of reciprocal measures reshaping global trade dynamics and rushed to sign bilateral trade deals. India has signed an FTA with the UK which will increase the ease of doing business. The two countries that will open further sectors into the bilateral day.
India just completed the 11th round of FTA negotiating the EU advancing towards signing an FTA with the EU amid these shifts, Carus is emerging as a preferred global supplier due to global standard, high quality production, competitive pricing and sustainable supply. Partner trade realigned, particularly those involving China and Vietnam combined with rising manufacturing costs European regions creating a favorable tailwind for our business. Despite external pressures and geopolitical issues, our business model had proved to be resilient and adaptive. We remain agile, responding swiftly to changing market dynamics and continue to find our own path for own strategic initiative.
Discipline Execution we have maintained stability and growth during this period. We successfully entered into new contracts and deepened relationship with existing customers which I’ll talk about this soon. This growth reflects the strength of our business fundamentals and our unwavering focus on execution and expansion. During the last three years our quad segment has grown to a CAGR of 12% reaching about 645,000 units while our stainless steel sinks, the Carousel Steel Limited segment has a stronger growth of 20% CAGR scaling up to 155,000 units. On the financial front, please inform that total income has grown CAGR 17% reaching to 815 crore almost $100 million while EBITDA has improved to a CAGR of 14% rupees 141 crores.
These results underscore the inherent strength of our products and commitment to long term growth. Update our performance on the Quad SYNC division. We are pleased to inform that the segment continues to perform strongly by encouraging demand trends across so many international markets. Aquan’s sync operation are currently in the range of 60, 67% capacity utilization which is likely to significantly improve in coming quarters. As informed earlier through a press release, a key highlight for quarter four 25 had been a significant deal with the US major retail chain. Through our customer Karan which has gone on additional capacity and supply 150,000 quart sinks across spread 1800 plus stores across United States.
The huge bulk orders are placed. We are proud to share this summer every store across the United States will have the Garrison manufactured kitchen sinks. Dispatches are going on in tens of thousands. While we already started seeing bottlenecks in the molds, we had ordered approximately seven molds and we need to immediately order three more molds. As per the last email to support the supply we earn marked a significant investment for mold and infrastructure expansion at a rapid pace. We also did sign the landmark agreement with UK Major Howdens, the largest kitchen manufacturer in uk. And still we have to announce a lot of news.
As I said mentioned before, there is calmness before the storm. I would like to give some breaking news here. As I mentioned in my last speech, we were going to bid for IKEA’s global tender which is a complete non US business to increase our market share with IKEA as a quartzing supplier from 25% to approximately 75%. Technically increasing our business with IKEA by three times. I’m proud to announce in principle we awarded this RFQ award and subject to approval process of the quality standards. Our company had taken preventative actions by already capacity building and ordering those molds required to enhance this capacity.
The final audits are on the way and we accept and we expect that this to complete very soon. To further sign the final purchase order with IKEA maybe within the next 60 days. Not just this, we are bringing signing some record historic deals of our company. It’s all coming true. We still have many more to come. Overall we see a strong momentum in exports and not just but uk, Europe, India, southeast countries down under countries including Israel are showing significant amount of growth. I believe there is a significant opportunity for company to leverage our technology and cost competitiveness in this tariff against our competitors from European countries.
What would be the challenge? I think the biggest challenge we see is to now bring the capacity to from currently which we are utilizing 65% and to build and to start manufacturing to 85 to 90% within 90 days of time. As you know, with the downward trend, we had shut the plant for which had additional 250,000 capacity. We are restarting now. Immediately we started recruiting manpower, the infra and the raw material required for the same. You’ll see the bid for a few quarters. The further additional enhancement of the capacity needs to be done if it needs to be done further.
This we will see after a few quarters. Moving on to the stainless steel sink business is thanks to the tariff that we have started receiving overwhelming response now for stainless steel things. Also since there’s a big tariff on China and Vietnam, we have always maintained high technology. We have invested in PVD new machines and we have made some significant breakthrough with Kohler India and Hafler to start selling them stainless steel ginsengs. We have already commenced our supplies to Ikea significantly over competition in quality tests. They are seriously now looking stainless steel division to be one of the major source of supply to global eye care.
And not just that, we have also started receiving high level of inquiries from the US and Europe. I’m very positive it’s going to work out as we may have a significant expansion in the stainless steel sink division too. The segment continues to witness robust demand. Our current operations are running at a capacity of already 80 plus percent demand of the high quality stuff sinks in India and export market. To meet rising demand and better valuation, we have earmarked a capex of more than 7 crores to 10 crores for expanding our stainless steel capacity with additional 70,000 units.
With this expansion increasing the total capacity to 250,000 units, we expect the new capacity to be operational as early as quarter three. FY26. Turning on to appliances and faucet I’m delighted to share we have successfully commenced our in house Zendaya manufacturing kitchen hoods and faucets and rapidly expanding into this category. Current assembly is around 30 35,000 faucets a year and the goal is to target 100,000 units by end of the year. To up the game in this field, we are in discussion with leading global companies for the technology transfer which we plan to achieve it very soon.
With BI’s restrictions, we have no choice but to invest in the next generation technology to meet the global quality standard to enhance a competitive edge. We will soon be laying the foundation stone for a new factory built in appliances facility for manufacturing and assembling kitchen hoods, hobs, ovens et cetera and we will be able to shorten the delivery times. We need to up our game in innovation and cost optimize cost efficiencies. These futuristic design with competing with technology will meet highest international quality standards. Carousel has been rapidly gaining prominence as a key supplier in the Indian market.
Over the last few years our kitchen faucet business has grown by 40% and we expect a big growth coming in this year. Food Waste Disposes with the growing demand of the food waste disposals for a greener planet, we are now actively exploring in house assembling of the food waste disposal with the appliances which we are currently importing to be self reliant. This transition will enhance margins, quality improvement, ensure more efficient lead Times we are also launching a massive campaign on this how we use food waste disposal and its benefits. Our trust and commitment to make India story across category remains robust and not just that, we’ll be investing in the first kitchen and the bathroom countertop fabrication facility in Delhi and planning other two centers this year by end of the year making Carousel the only first organized player in the Indian market.
Leveraging our UK and fabrication technology which we invested in the company in UK and us launching incredible seamless technology of the sinks with the countertops and in turn launching our own surface brand Carry Stone. Let me provide a brief on our international subsidiaries. Our subsidiaries in UK and UAE have continued to deliver strong performance. In particular the UAE business have been robust demand in appliances category reaffirming our strategy of strengthening the high potential global markets. Our ratio is reversed now with the sales of 80% appliances and 20% sinks in U. With the riding success with the first Dubai showroom, we are now opening a second showroom in Sharjah of 3000 square feet on the main Sheikh Z Road to add better value and range of appliances and sinks.
We’d also like to give some good news that Carousel has now got a breakthrough in UAE with the biggest developer Mr. Which is a state owned company for the carousel sinks. I’m also pleased to announce that we have been robustly growing more than our budget for the UAE market. In the uk both Carousel products and Carousel services are performing well and we expect this positive trend to continue the fiscal year especially after the FTA deal between India and uk. We have added significant amount of major customers will help to keep this growth momentum even with the adverse market conditions.
A Carousel company now emerging to be among the top three in the UK top performers in kitchen category United States and United Granite llc a recent US acquired subsidiary which remains subdued for a year due to challenging local market conditions. Margin quarter one has now started turning around the corner by cutting more exotic and high value added granites and stones. The mantra was simple that you cut less and make more. Thus by improving the gross margins, Carousel limit is helping and providing the gap. Working capital to add more high value granite and quartz slabs in the factory and also improving our sourcing competitiveness.
We are optimistic and confident the subsidiary will turn to profitability in FY26. It will also play a significant role in establishing the fabrication unit in India and building world class fabrication seamless technology which will be a huge proposition along with sinks and faucets, domestic business and strategic growth. While we take pride in our global footprint, we equally Focusing Expand Vechain India Like I mentioned in my last speech, I’ve never been bullish about India which I am now. For the last three years we have made consistent efforts to elevate our domestic business and optimize the potential vibrancy aspiration of young India.
We introduced series of workstations things new range of faucets of luxury and convenience to our customers. We have significantly expanded our dealer network from 1500 to 4000. Like I said, we’re going to thrust a lot of building new galleries which we plan to achieve from 140 to 200 galleries by end of this fiscal year. We have ambitious target to grow by 25 30% and about 17080 crore revenue. This year is not going to come easy. We are going to severely focus on building our team brand building marketing activities and thus by dealer expansion across Pan India.
We also going to strengthen our service network by not just franchising but having our own service people and team with 24 hour service with our own carousel vans which result into the better sales of the company. With indigenization by faucets and appliances we’ll have a better cost, competitiveness and innovation to stay ahead of the curve. Riding on the success of Workstation Quartz sings Carousel is now introducing stainless steel workstations Also now for first time 1.2 millimeter thickness which is 20% above the standard thickness for better sturdiness and higher quality to stay ahead of the competition.
This initiative will differentiate Carousel the rest of the competition. The company has invested in the second PVD machine which will arrive in the next 90 days time to cater the domestic needs and the export needs. This strategic initiatives with borne fruits will lay a solid foundation strong economic outlook will have a clear and confident vision to double this to 300 in the midterm and further grow to 500 crore in the long term in the next coming quarter. 2 I would be I think our program of this India story and also our next hundred million. How we going to achieve this? To support this we have strengthened our manufacturing capacity of appliances and faucets.
We are aggressively expanding our brand presence through digital marketing website, updated product and dealer loyalty programs. Our Pan India footprint continues to grow. We opened five new appliances or experience centers for a better experience. Our R and D initiative is also underway focusing on the development of new single materials innovation, faucet engineering and of the built in appliances. The journey ahead is promising approaching the spirit of purpose and innovation. Whether it’s enhancing our product portfolio, entering new markets or investing in people and technology. We are committed to build a future that is bold, inclusive and sustainable.
At Carousel, we remain steadfast in our commitment for a cleaner initiative. Sustainability is not a goal but embedded in the heart of manufacturing and product development processes. Our plants are continuously upgraded with eco friendly technologies in their minimizing waste, conservating water. Energy use and operations remain efficient, environmentally responsible. We actively support a range of CSR activities and focus on education, skill development and community. We firmly believe in creating a long term value for stakeholders. As a responsible corporate citizen, we continue to lead our purpose integrating sustainability and social responsibility of every facet of our growth journey.
I would like to ask Ms. Anand Sharma to update on the company’s financial performance. Thank you.
Anand Sharma — Executive Director and Group CFO
Thank you sir. Good evening everyone. Let me take you through the company’s Consolidated Financial Performance Quarter 4 FY25 performance. Consolidated Total Income stood at Rupees 205.1 crore for Q4FY25 grew by 6.8% on Y on YM basis. EBITDA for Quarter 4 FY25 stood at 35.8 crore with margin of 17.5%. Profit After Tax and Minority Interest stood at 18.6% crore in Q4FY25. Growth of 19.6% on Wireless basis coming to FY25 performance. Sales volume for Quad Sink stood at 6 lakh 45 per unit. Stainless Steel Sink stood at 1,55,000 units. Feature Appliances and Other stood at 63.2 thousand units in FY25.
Concurrent Total Income stood at 819.9 crore for FY25 as compared to Rs. 688.1 crore in FY24. It grew by 19.1% on Y&Y basis. EBITDA for FY25 stood at 141.7 crore as compared to 133.6 crore in FY24. It grew by 6.1% Y on Y. EBITDA margin for FY25 stood at 17.3%. Marginally impacted due to higher MMA price which is our primary raw material increase in export freight costs, some additional manpower costs which we built for Cap City innovation and marketing sales spent for our domestic business Profit after tax and minority interest stood at 63.7 crore in FY25 as compared to 57.9 crore in FY24.
It grew by 10.1%. Gross debt stood at 265.5 crore as on 31st March 2025. Our debt to equity ratio stood at less than 0.5% less than 0.5 cash and bank balance 2.68crore which include fixed deposit year mark for capex from our QIP fund working capital days stood at 87 days based on the same. Our working Capital days for March 25 increased primarily due to strategic decision to increase the level of imported inventory for our traded goods primarily owing to BI standard implementation from March 2025. So we have to maintain sufficient inventory for our finished goods as well as we wanted to have material for our in house manufacturing of chimney and hops.
This built up inventory is aimed to strengthening our supply chain and supporting future growth. We anticipate that market capital days will normalize in upcoming quarters as inventory levels stabilize. We are also with some inventories in our UAE company because this is going in a very fast pace so overall inventories are high but it will come into normal cycle within quarters. On the capital expenditure front, during FY25 we have invested 45 crore out of his 12 crore is spending quarter four FY25 alone. These investments were directed towards procurement and installation of new machineries, equipment and molds which are critical to supporting our upcoming manufacturing facilities and enhancing our production capability.
With this I open the floor for question and answer over to the operator.
Questions and Answers:
operator
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press STAR and one on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use handsets when asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assemble. Participants are requested to restrict their questions to two per participant. The first question is from the line of Ayush Chabadiya from Shrawas Capital. Please go ahead.
Ayush Chabria
Yeah, Am I audible? Yes, Yes. I just wanted to understand that going forward now that we have signed so many deals, what is the level of capacity utilization do you expect at the quad level? And any guidance on the revenue going forward with the new deals coming in?
Chirag Parekh
Yeah, so like I mentioned, I think we have to build. We will be starting utilizing our capacity month on month progressively. So we expect to achieve 85% 19% capacity utilization within the next three to four months.
Ayush Chabria
All right.
Chirag Parekh
Also just trying to understand other latest backorders.
Ayush Chabria
Also just trying to understand on the raw material front, have you seen prices cool off? Because I think quarters that we were commenting on prices being elevated and that affecting our gross margin. So do you see any cool off in the prices?
Chirag Parekh
Yeah, both the prices have cooled down the freight charges as well as our material prices, especially the MMA prices was very high as our CFO said. So it’s already cooled down at this point of time. So that’s why we have seen our margins for quarter four as has improved quite significantly than previous quarters.
Ayush Chabria
Okay, so going forward we maintain a guidance of 18 to 19% margin on EBITDA basis.
Chirag Parekh
Yes, we will, we stand maintain 18 to 20% our margin guidance. We stick to that.
Ayush Chabria
Also do we see any impact in the Paris going forward? Some waivers may come in. There’s no clarity as of now but do you see any tail risk coming in?
Chirag Parekh
I think just now everybody is getting a 10% attractive attracts to anything which is imports in the US but we don’t see any significant increase in the tariffs as thought that there is a reciprocal duty on things. So I think as of now I think it all looks good. But let’s see what what comes on further.
Ayush Chabria
All right, all the best. Thank you so much.
Chirag Parekh
Also, also, also I would like to clarify we do not fall under the same quad surface category like others. Do we have a different category. So we don’t fall under the same category of the quad surfaces which we had clarified in the last time.
Ayush Chabria
Thank you.
operator
Thank you. The next question is from the line of Resha Mehta from Green Edge Wealth Services. Please go ahead.
Resha Mehta
Thank you. So Chiragha, you know your opening remarks sounded off a pretty buoyant demand scenario that we are looking at. So with that do you think that the 1,000 crore revenue is possible in the current financial year itself which is FY2005, 26?
Chirag Parekh
Yeah, I think you know number is our outcome of what we going to do. I think the guidance what we had given is a 15% increase in revenues should be around 925, 930 crores for this year. I think as of now we are just busy on focusing to enhance our capacity. So if the what I would say is that do we have a potential to reach a thousand crore annual run, run rate in quarter three, quarter four? Yes, it could be possible. But right now I think we are slowly and gradually busy in just improving, just increasing our production capacity.
Resha Mehta
Right. And in your opening remarks did I hear you right that you know two and a half lakh quartzing capacity which was dormant is kind of, you know, you’re going to like restart it because I think the current existing capacity is 10 lakhs. So okay, so then our capacity goes up to 12 and a half lakhs. So the 12 and a half lakh capacity. And then on that we’ll reach a 90, 8590 capacity utilization in the next three to four months. Is that understanding right?
Chirag Parekh
No, that is not the right understanding. The understanding. We have a million things, 10 lakh units capacity. We had shut down one plant for which we had approximately 250,000 units. So we are restarting that.
Resha Mehta
Okay, Understood.
Chirag Parekh
Capacity remains at 100,000 sinks. It is not 12.5 remains at 10 lakh units. So the 85, 90% capacity is on 10 lakh units.
Resha Mehta
Understood?
operator
Sorry to interrupt you ma’ am. But we request you to rejoin the queue for follow up questions. The next question is from the line of Vishal Dudwala from Trimetra asset managers. Please go ahead.
Chirag Parekh
Yes.
Anand Sharma
Okay.
Vishal Dudhwala
Thank you.
Chirag Parekh
We are not able to hear you. We’re not able to hear you, sir.
operator
So we request you to use handset.
Chirag Parekh
Your connectivity is bad.
Vishal Dudhwala
Okay. Am I audible now?
Chirag Parekh
Yes.
Vishal Dudhwala
So what has caused the significant increase in freight cost in recent years? Given that the majority of your export. Are on fob basis. So are the export handled on FOB shipping point or the destination basis? And additionally since your import are on cis is that expense included in cogs or other expense?
Anand Sharma
So can I answer this question?
Chirag Parekh
No. So. Yeah. Yeah, yeah.
Anand Sharma
Okay. So like you said, most of our export is on a full basis. That’s why the impact what we are seeing is much lower than it could have been if more terms would have been. Okay. So impact is not that major. It is 1 and a half, 1 and a half percent only against the two time cost increase coming to import. Import is on a CI basis. So everything goes into a raw material cost. It is not shown separately.
Vishal Dudhwala
Okay. And one more question. Is the company open to include the promoter entity in its consolidated financials? Say next. Supplies important raw material. It might help improve transparency and be good for company in long term.
Anand Sharma
Sir. Hello.
Chirag Parekh
Can you come? Okay. I’m not able to. I’m not able to hear him properly. Okay.
Vishal Dudhwala
Is the company open to include the promoter entity in its consolidated financials? Since it supplies important raw materials it might help improve transparency and be good for the company in the long run.
Anand Sharma
So I can answer this question?
Chirag Parekh
Yeah, answer. Yeah, yeah, yeah.
Anand Sharma
So the parts material which we buy from the promoter entity, Agricult Mineral. This is a related party transaction which is already disclosed in the annual report. There is a transfer pricing policy approved by the board. So the transparency is already maintained. Now coming to your question. Whether that can become a consolidation income under the consolidated balance sheet. That’s a question for future which may be addressed at appropriate time.
Vishal Dudhwala
Okay. And one last question if you allow.
Anand Sharma
Yes.
Vishal Dudhwala
Okay. So how is the company viewing the outlook for the export market this year?
Anand Sharma
Sir.
Chirag Parekh
What is it? I’m sorry, I’m just having a lot of problems hearing this gentleman. Sorry, can you talk slowly and loudly please.
Vishal Dudhwala
How is the company giving the outlook for the export market this year? Are you seeing any key opportunities or challenges?
Chirag Parekh
So we are. I already mentioned in my speech. No my friend. What are the deals we are making? We did lows. We got RFQ for Ikea.
Vishal Dudhwala
Okay. I don’t believe.
Chirag Parekh
And we have a. And okay. So we have a huge tail tailwind coming in for the export market across all the categories. One of the. If you have joined late but then let me brief you that loads. We signed a significant deal and now we got award from IKEA’s global tender for increasing our share from 25% to 75% which is a significant increase. So overall the demand, the tailwind looks good in the export market across. Across. Across the world.
Vishal Dudhwala
Okay, that’s it. My side. Thank you.
Chirag Parekh
Thank you.
operator
Thank you. We’ll take our next question from the line of Vedik from Monarch network. Captain, please go ahead.
Vaidik Bafna
Congratulations sir on good set of numbers. Sir, I have two questions. Firstly on the cotton side as you mentioned in your opening remarks that for Karen we have received an agreement that we have signed an agreement to supply 1 lakh 50,000 COD sinks on an annual basis to 1800 stores. So can you just mention how much did we supply in FY24 to carrot a ballpark volume number.
Chirag Parekh
Yeah. So I think. I think we’ll be able to later on give you this information for customer what it is but us approximately Anand does about 25% revenue. 25 30% 30% of our business export. 30% of export of our business. If you take our eggs. Yeah. So if you take about 5 500, 550,000 units approximately export 30,000 would be us would be around 175 80,000 out of it. Current should be around 120,000 approximately. So this would be. You are actually talking about doubling the business by adding lows to it.
Vaidik Bafna
So does this mean that in FY24 kerosene supplied around 1 lakh 20,000 units to Karen and overall in FY sorry approximately. Okay.
Chirag Parekh
We expecting 2526. We are looking it could be a potential about 240,000 units with Kiran for including the low steel.
Vaidik Bafna
So that is for FY27, right. In FY26 she mentioned in her Opening remark that will go to 150,000.
Chirag Parekh
No, no combining. I’m saying this is a. I said additional. We are doing 150,000 additional.
Vaidik Bafna
Okay, so additional 150,000 you will start supplying to.
Chirag Parekh
Correct? Yeah, so correct. So there will be some cannibalization but we are talking about 200 and approximately 240,000 units. It includes the U.S. deal, the new major for the U.S.
Vaidik Bafna
Okay sir, got it. And sir, on the children.
operator
Sorry to interrupt you but we request you to rejoin the queue for follow up questions as there are participants waiting for the. Thank you. The next question is from the line of. Thank you. The next question is from the line of. Sanjay from Bastion Research. Please go ahead.
Sanjay Ladha
Hi. Thank you for the opportunity. So my first question will be on. Sir, we have seen significant growth in the volumes during the quarter. But when I see the realization per kg it has been dropped both in case of caught sink and in case of steel sink. So how do we see realization going forward? So during the quarter we have seen 20% drop in the realization per kg in quartz and steel thing.
Chirag Parekh
So I can just tell you a very, just a very ballpark thing is that it is based on the product mix. So the product mix has changed and hence this has gone up. For example a single board will cost much less now since the US which is a high value added product which is going to now have with the new crackdown deal with the US Major this will increase the realization and I think we should see it from the quarter one results.
Sanjay Ladha
Okay so my second question since we are seeing so much demand from across the globe and we are focusing on India as well and probably from Q1, Q2 we will be you know at 90% capacity utilization. So how are we planning on the CapEx side? Can you share any ballpark numbers? What are the CapEx plans we have and what is the amount we are seeing for FY26 and 27 going forward?
Chirag Parekh
So for the current year we have envisat capex about 50 crores which includes expansion of overall from sinks to fabrication to these appliances. Like I said in the coming quarters we will take the decision if we need to further enhance the quartz sinks capacity as well as the stainless steel sinks. It all depends upon how the market reacts demand sustainable or no. So I think within the coming quarters we’ll have a better clarity on this.
Sanjay Ladha
Thank you so much sir. We’ll come back.
Chirag Parekh
Thanks.
operator
Thank you. The next question is from the line of Resham Jain from DSP Asset managers. Please go ahead.
Resham Jain
Yeah, hi. Good Evening Chiragar. I have two questions.
Chirag Parekh
Yeah. How are you Rishya?
Resham Jain
I am good sir.
Chirag Parekh
So two questions.
Resham Jain
One is with respect to India business which is 150 odd crores and you mentioned that in medium term you see that business going to 300 odd crores. So if you can just give a sense because in India we are doing multiple things, cord sink, steel sink, faucets, appliances. So what will drive majority of the growth? That is question number one and secondly from the overall economics perspective on margins and all because we are investing currently, I presume margins will be much lower than our overall business. So how do you see the margin also moving over the next few years? Or would you focus more on revenue and margin is okay to get maybe two, three years later?
Chirag Parekh
Yeah, thanks Jason. So I like I said in the quarter one I would be displaying my whole next hundred million dollar Plan and my 300 midterm and 500 crore domestic plan which I would like to meet the investors and I’m going to display it that what our plan, how we are going to achieve it, with what strategy. So I think definitely you will have more clarity. But just to give you answer right now in a very very brief way I think we are seeing an opportunity across the categories from quartz things to steel sinks to faucets and the appliances.
So I think we see all the categories, the growth needle moving very fast. But I do believe that we have a strong significant opportunity to move this needle further up in the sinks and the faucet category which should be the largest contributor in this as far as the margins are concerned. The margins are concerned. The company in the last year has taken some significant efforts to cut down the operation cost on innovation, technology improvement, efficiencies at your operation level. The material prices are cooling, cooling, cooling down, freights are cooling down. Our new customers, our new models have a much better value addition.
For example the USD, the Ikea which are coming, we’ll have a great value addition. So that’s why I think we are sticking to our margin guidance 18, 20% and I absolutely believe answer your last question, we would not be focusing on numbers. Like I said number is the outcome. We will not compromise on our margins. So we have always remained very prudent and agile that our margin model should not be discussed. I mean it can be for a quarter, one or two but on the long term the margin model should have a constant improvement moving forward.
Resham Jain
Yeah, I saw that. And the second question is with respect to the cot sink volume you mentioned that you can reach 90% utilization of 10 lakh capacity in next three to four months for the full year. How should one think about the volume? Is it whatever volume you are getting, is it like one time and then it will happen the next big one time will come later or it will be more sustainable order. How should one think about the overall full year volume growth outlook?
Chirag Parekh
Yeah, so you know, very good question. Even I’m also looking for the same answer. So I think right now I think it is all good. We will see in the coming quarters how honestly she. It’s very, very hard to predict at this point of time how the markets are reacting. You still have this tariff sword hanging up. But right now all looks good. But we’ll have more clarity in the coming quarters how it looks. The only silver lining here I see is that we have a significant opportunity because of the cost and the quality what we have.
So I think the consumers are going to have a much better cost levels at the stores. There has been a lot of inventory stocking in the. You know, in the last years a lot of destocking has happened. So I think now the home improvement category will. You’ll be looking at a. You know, I think I’m very bullish on it. I think this year you see people building on inventory as well as the consumers will have a better price as a better product. So I believe that the home improvement sector should overall improve significantly across the world.
Resham Jain
Okay, thank you. Thank you Chidagwai. All the best.
Chirag Parekh
Thank you.
operator
Thank you. The next question is from the line of Reet Ranavat from Evndesk Capital. Please go ahead. Yes, sir.
Chirag Parekh
Yes.
operator
Sorry to interrupt you sir, but there’s a lot of background noise coming from your la.
Reet Ranawat
Hello, I’m audible now.
operator
Yes sir.
Chirag Parekh
There’s lot of background background noise we’re not able to hear.
Reet Ranawat
So we started with the kitchen effects manufacturing in the last two years. So the volume repository applies is another is only from process. Right.
Chirag Parekh
Sorry, I’m not able to understand.
Reet Ranawat
So the volume recorded under your kitchen appliances and other segment the mainly all the volume is from faucets, right? Or is it from.
Chirag Parekh
No. So I think make it clear. We are building the manufacturing capacity of the faucets also like I said, we are at 35,000 pieces a year. We are also building the end of the year faucets. We have 100,000 pieces and we are building the new built in appliances factory also of the mix of ovens, hoods and the hobs to over 100,000 units a year.
Reet Ranawat
Okay, got it.
Chirag Parekh
No, go on please.
Reet Ranawat
No, no.
Chirag Parekh
No. Please answer.
Reet Ranawat
Okay. So. So I can see that from 35,000 to 1 lakh rock faucet and around 1 lakh capacity for. Am I right?
Chirag Parekh
Yes. We are putting up the factory for that.
Reet Ranawat
Okay, got it.
Chirag Parekh
And stone next month to build a new appliances factory.
Reet Ranawat
Okay, got it. And do you have a timeline for. For that surfaces that you mentioned in your opening record comments? So the facility for services and countertops.
Chirag Parekh
Surfaces and countertops. We have a timeline we should be achieving in within 1:50 to 180 days.
Reet Ranawat
Okay, got it. Thank you so much.
Chirag Parekh
So it will. It. So it will happen approximately by end of quarter three latest this year.
Reet Ranawat
Okay. So do we have the capacity for that or.
Chirag Parekh
Yeah, so. So I think the capacity. We are still on a working stage. But we will. We will know in the next couple quarter for exactly how much you’d be doing it.
Reet Ranawat
Okay, got it. Thank you.
operator
Thank you. The next question is from the line of Ravi Naredi from Naredi Investment. Please go ahead.
Ravi Naredi
Thank you. Chirag bhai. In spite of quarking volume growing age 22 level and still sink dry base from 105 to 155 kitchen appliances also rise. Our net profit in financial year 22 was 64.8 and financier 25 by 63.7. So our margin is half in compared to financial year 22. So we want the return and when our.
Chirag Parekh
From quarter on quarter that we are under severe pressure for the increase in the raw material prices have been severe increase in the. You know in the. In the freight company were invested heavily on the other divisions, subsidiaries and all. So that all the input prices are cooling cooling off. Now freight charges also have gone down. The customers knew the product which will also attract a higher value addition. So you have already seen it from quarter four. Right? You would have seen for the year. But if you have to See the Compare the 20 in the quarter for the margin expansion has been significant.
Has been significant. I think if I’m not mistaken our CFO would probably say. I think there’s improved Anand from 16 to 19%. Right. Give it US quarter four.
Anand Sharma
Yes. 18%. 16 to 18%.
Chirag Parekh
Yeah, 16 to 18. So it has increase and we stick to our margin guidance of 18 to 20%.
Ravi Naredi
Okay. FY 25 26. Thank you sir.
operator
Thank you. We’ll take our next question from the line of Ashutosh Parashar from Mirablis. Go ahead.
Ashutosh Parashar
Just two questions. First is on if you could please provide the pickup of the revenue between faucets and plant in that segment and how much of this was from uae. So largely the exports to UAE and the split between appliances and faucets part and second is if you would please elaborate on the plans of the new Carry Stone brand that called out in your commentary. What are we trying to do here in that in India? Are we trying to tie up with real estate developers or we do it through our dealer distribute designing just plans on that front.
Chirag Parekh
Okay, so the coming to your first question, I’ll ask our CFO to answer but I’ll answer your second, third and fourth question. So starting with your last question, the Gary Stone is we have already in advanced talks with some of the major Stone guys and the modular kitchen guys which they have promised to give a certain amount of guaranteed quantity. So I think that’s how we want to start. Why we’re doing Carry Stone is because if you want to have seamless integration, you need to have the same colors of our sinks in the quad surfaces.
Hence we are launching our new line of our own designed quads which will which will have a seamless integration to our sinks. As far as the UAE appliances we don’t export. Right now the UAE is an independent subsidiary based in uae. So they procure these appliances, they trade it to various parts of the world and they sell it. The only thing what we export is the sinks to the uae. I request my CFO to give you breakup of the faucets and appliances. Anand, if you can share that.
Anand Sharma
So the faucet this year turnover for FY2425 is 15.22 crore against last year 11.27 crore. So there is a growth of 35% on faucet side. Coming to appliances. Appliances turnover for this financial is 31.45 crore against last year 29.81 crore growth of 6%. This is for our India business. UAE business are already spoken about. So total UAE business for this year is 14.41 crore. Which mainly applies which is from their sourcing. It is not going from India.
Ashutosh Parashar
Okay. And just one follow up on this uae. We had plans of opening showrooms in a lot of places like Sharjah and Oman. And also what is the progress on that front?
Chirag Parekh
So the plan is already, the deal is done. So already the showroom is on the making. We expect opening in the first week of July or in the month of July.
Ashutosh Parashar
Got it. So thanks for answering.
operator
Thank you. The next question is from the line of Nikhil Gara from Abacus amc. Please go ahead.
Nikhil Gada
Yeah. Hi sir. Thanks for the opportunity. Opportunity and congrats on a good set of numbers for the fourth quarter. So firstly sir, just regarding the IKEA business, can you call out what kind of a volume, incremental volume can we see with this deal signing that you’ve.
Chirag Parekh
Done to the potential is going to be about 3, 3x from our, you know current volume. We have significant, significant revenue with Ikea I would say in a digit about 10% of our total revenue. So that could, you know, so if in the stuff in terms of numbers it is huge. 3 3x of that would somewhere be in the range of about 180,000 to 200,000 units. What we gonna have. So I think there’s going to be a significant rise and this comes a complete non US business. So I think you know the potential to achieve this is quite high.
Nikhil Gada
Right sir. And is the assumption right that this is also going to be a high value added product as in in terms of margin?
Chirag Parekh
So that’s correct. That’s correct
Nikhil Gada
in that context. You know, just looking at your standalone numbers, you know FY24 we did margin somewhere around 21.7%. Do you think this is these margins, you know we can surpass these margins with this contracts and the overall capacity utilization in 26, do we look at 20 to 23% EBITDA margin?
Chirag Parekh
I would rather say that, you know, by that our focus has always been on a margin improvement. Sometimes you can have a bad quarter here. But I think overall the company’s endeavor is always to improve to not to sacrifice the margin model to come to constantly improve that. So I think you know, that is going to be our emphasis in the coming quarters, coming years.
Nikhil Gada
Understood, but
operator
thank you. Sir, we request you to rejoin the queue for follow up questions.
Nikhil Gada
Sure, no problem. Thank you.
operator
Thank you. The next question is from the line of sojourn from ASP finsourve. Please go ahead.
Unidentified Participant
Hello. Am I audible?
operator
Yeah. Yes sir.
Unidentified Participant
So first of all congratulations for your good set of numbers. My first question is I just want to know that can you please clarify your target market in audience? In which regions in India are you primarily focusing on and is there a Stronger emphasis on B2B sales and B2C for odds also and for the.
Chirag Parekh
We lost you.
Unidentified Participant
Am I audible now, sir?
Chirag Parekh
Hello? We lost you. Yes, you’re audible now.
Unidentified Participant
Am I audible now, sir?
operator
Yes.
Unidentified Participant
Hello.
operator
Please repeat your question. Please repeat your question.
Unidentified Participant
Sir, sorry for the interruption, I just want to ask.
Chirag Parekh
I understand, I understand. We are focusing in India on the premium, premium market segment. So mid to premium for the.
Unidentified Participant
Yeah,
Chirag Parekh
yes. Yeah. Overall. Overall our category. Category that we target the premium segment of the market.
Unidentified Participant
I just want to know about like randomly focusing on like B2B or B2C and which like in segment like Kitchen Advantage, you do the B2C more and smooths and quartz B2B. So overall, which part of your mode in. In the domestic market.
Chirag Parekh
Yeah, domestic market we’re doing about 80% B2B2C and we do 20% B2B 20 to 25% B2B.
Unidentified Participant
Thank you sir. And another question sir from my side is could you please provide the insight into complete distribution strategy for kitchen appliances? Are you leveraging existing distribution channels or you are considering partnership with retail channels?
Chirag Parekh
Correct. Good question. I think 70% we are. We are leveraging our, you know, network in terms of appliances but we are about 30% of that. We are tying up with the electronic chain like we did two big tie ups in Kerala with. One is with GMART and second is with some other large retail. I forget the name. So we are now I was very happy and pleased to see that our brand was. Our brand was placed with Panasonic’s whirlpool of the large appliance of the company. So I think we are emerging in at least in parts of the.
I mean the whole of Kerala now the electronic brand. So I think it takes time. It’s. It’s not that something which you can achieve overnight but I think our constant effort will result into that. So I think somewhere we need to leverage. But looking in the next three to five years down the line, I think we have 50% of our channels completely new than our current set of dealers. So we have to get into inroads with large modern trade electronic stores to get to up our game in the appliances segment.
Unidentified Participant
Thank you. So just follow up question on the last one.
operator
Sorry to interrupt you but we request you to rejoin the queue for follow up questions.
Unidentified Participant
Okay,
operator
thanks. Thank you. The next question is from the line of one Solanki from RSP and Venture. Please go ahead.
Vansh Solanki
Hello. Am I audible?
Chirag Parekh
Yeah.
operator
Yes sir.
Vansh Solanki
Yeah, I just want to ask one of Karen order regarding the US So is it a one time contract or a multi year agreement and is there a renewal terms or a minimum volume commitment like something like that? If you can give details about.
Chirag Parekh
No, these are all long term contracts which are at least for the last source they change was after 15 years or something. These are very, very long long term contracts. We do not have any period of time mentioned.
Vansh Solanki
Okay, and what is the guidance about average effective tax rate because in last two years we are getting about 27, 28% because of the USA subsidy laws. So what would you think whether it will go to 24 25% like before?
Chirag Parekh
Can you answer? I’m not able to understand.
Anand Sharma
Sorry, you have to repeat your question.
Vansh Solanki
Yeah, in last two years our average effective tax rate was around 27 28% but if we see. Okay, yeah if we see before that our will be around 24% in last four years. So what would you think for next period it will be?
Anand Sharma
Okay, so tax rate has gone up because of the higher tax rate in UK. Earlier tax rate in UK was 90 which from the last financier raised to 25%. So because of that our every tax rate has gone up. There is no change in tax rate in domestic business standalone.
Vansh Solanki
Okay. And the last question is about working capital days you mentioned it is 87 days as of now. So will there be decreasing that?
Anand Sharma
Yes. So we are working because there are some onetime inventory stock we have built up for our future demand because of the diag issues but that will get consumed and then overall normal operating cycle will come into play and we will improve from this level. So they definitely going to have a lower working capital going forward.
Vansh Solanki
Okay, thank you. That’s for me. Thank you.
operator
Thank you. The next question is from the line of Rupesh from Intel Sense Capital. Please go ahead.
Rupesh Tatiya
Hello. Hello. Am I audible?
Chirag Parekh
Yes.
Rupesh Tatiya
Yeah. So I have several questions. First I think on subsidiary. So first question I think is on United Granite. Maybe if you can give how was the profitability for Q4 and how do you see next year panning out? The second question on subsidiary is Caddisil Products UK the revenue moved from £9 million to £12 million. So if you can give some idea about what what led to this growth and can we expect you know, similar growth in FY26? That is another question. And then in UK I think you said you had some deal with some retailer.
I didn’t, you know if you can get. I didn’t understand that part. So if you can give some details around that. So that is first question on subsidiaries.
Chirag Parekh
Okay, so I think the subsidiary there was a downturn. It was in the US the home improvement business for the high mortgage rates which is still there. But I think the improvement on we have improved from our part. We have started targeting the upper high class of the US market. So we have started cutting the marbles and quads of very high and unique exotic marbles and quad which has led into Higher profit margins, so which we are about negative 8 to 10%.
We have now crossed the break, break even. I think we are about a 2 or 2 or 3% profit now coming quarters. I think we see a significant improvement in the margins moving forward. That’s for the US subsidiary. As far as UK is concerned, we are immensely focusing on new products. We have. We have launched ceramic sink, we have launched a new kind of faucets, we have introduced new kind of things. We have additional about 12 to 14 new customers on board. So I think that our, you know, our team is very, very active because we have a massive cost leverage here to take, to take on the competition.
As I mentioned in my speech, we are emerging to be in the first three majors in the UK market. Howdens was the largest kitchen manufacturer in uk, which we had signed a deal last year. So we are exclusively to Howdens. It’s a very, very strong business. About 80 to 100,000 sinks a year just for Howards and they are still going very strong. I had just. I am in UK while I’m speaking and I’m meeting them and they are still few of the. While the UK is, you know, is not in the best of the economic situation, in the situation, but surprisingly, the home improvement with some of the large retailers still have been very strong.
So I think by expanding our product range and by adding new customers, we should be able to continue our momentum.
Rupesh Tatiya
Thank you for the answer.
operator
Thank you, sir. Ladies and gentlemen, in the interest of time, we’ll take this as our last question. I now hand the conference over to the management for closing comments.
Chirag Parekh
Yeah, I’m just trying to open my. Thank you, everyone. I hope we’ve been able to answer all your questions satisfactorily. However, if you need any further clarification, I want to know more about the company. Please contact the SGA team, our investment relations advisor. Thank you and have a great evening.
operator
Thank you. On behalf of Carousel limited That concludes this conference. Thank you for joining us and you may now disconnect your lines.