Finolex Industries Ltd (NSE: FINPIPE) Q1 2026 Earnings Call dated Aug. 05, 2025
Corporate Participants:
Unidentified Speaker
Saurabh Dhanorkar — Managing Director
Chandan Verma — Chief Financial Officer
Analysts:
Unidentified Participant
Arun Baid — Analyst
Shravan Shah — Analyst
Sneha Talreja — Analyst
Praveen Sahay — Analyst
Udit Gajiwala — Analyst
Shivkumar Prajapati — Analyst
Vishal Shah — Analyst
Ritesh Shah — Analyst
Vipulkumar Anopchand Shah — Analyst
Presentation:
operator
Good day and welcome TO Finolex Industries Q1 FY26 earnings conference call hosted by ICICI Securities. 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 this conference call please signal an operator by pressing Star then zero on your touchstone phone. Please note that this conference is being recorded and now hand the conference over to Mr. Arun Be from ICICI Securities. Thank you. And over to you sir.
Arun Baid — Analyst
Good afternoon everyone. On behalf of ICICI Securities I welcome you all to the Q1FY26 Design Con call of FedEx Industries. From the management side we have Mr. Saurabh Dhanalkar, Managing Director and Mr. Chandan Verma, CFO. Now I hand the call over to Mr. Dhanarkar. Over to you sir.
Saurabh Dhanorkar — Managing Director
Thanks Arun. Good afternoon ladies and gentlemen. Welcome to the investor conference call for Q1 FY25 earnings. We thank you all for your continued support and interest in Simulux Industries. FYI has registered a modest growth in pipes and fittings volume in spite of overall weak demand scenario during the quarter. The operating performance of the company is muted mainly due to weaker realization on account of volatility in PVC prices. The company’s endeavor to grow in non agri segment is ongoing. Let me now take you through some of the performance indicators. Pipe cent fittings volume increased by 2% to 92,129 metric tons against 19,620 metric tons in Q1 FY25.
This was in spite of weak demand scenario. Overall total income from operations was rupees 1,043 crores down 9% against rupees 1140 crores in Q1FY25 due to weaker sales reinforcements. EBITDA stood at Rs. 94 crores against rupees 207 crores in Q1FY25. PAT stood at rupees 97 crores against PAT of rupees 505 crores which was including an exceptional gain of Rs. 339 crores in Q1FY25 from current year. We have decided to evaluate the company’s performance as a single entity rather than splitting the performance between the two segments PV Senazin and pipe cell fittings as well earlier. This is because PVC resin is no more being sold in the market and it’s almost entirely for captive consumption.
So as a management we do not really look at PVC resin business. PVC resin segment as a separate device. The company continues to have a strong balance sheet with a net cash surplus of around Rs. 2,533 crores as on 30th June 25th compared to Rs. 2,401 crores in the corresponding previous year’s quarter. On a personal level, as many of you are aware, I stepped in from my role as a non executive Director on the board to the role of managing director in November 2024. This was meant to be a transitory position till we find a new MP after Mr.
Ajit Venkat Raman stepped out. I am pleased to share that our board of directors has now approved a worthy successor for this role and he will be joining soon. Of course I will continue to be associated with the company in an advisory capacity and before I formally hand over to the new incumbent I will. And even after that I will be continuing to mentor him and be involved in the strategic decisions of the company. Let me now leave the floor open for questions as with me Mr. Chandan Varmauga, our CFO who will take the questions regarding the numbers.
Thank you.
Questions and Answers:
operator
Thank you very much. We will now begin with the question and answer session. Anyone who wishes to ask a question may press star and one under a stone phone. If you wish to remove yourself from the question queue you may press star and two participants are requested to use handset while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembled. The first question comes from the line of Sravan S from Dalup Capital. Please go ahead.
Shravan Shah
Hi sir. Thank you. Sir, a couple of questions. So first on the volume front so obviously this quarter was very very muted. 1.7% kind of a growth. So just wanted to understand. Last time I think we have spoken that April and May was very good. And once the rain has started at the end of the May or start of the June then only demand got impacted. So just wondering was the June so bad that for the quarter we just had only 1.7% growth and now how one can look at have this particularly July until now August have we seen the improvement in demand? Because I think we last time we were talking about kind of a double digit volume growth for full year Also how one can look at.
Saurabh Dhanorkar
So as you rightly said because of the early onset of monsoon towards 22 May or something then onwards the demand came down and June yes was Very subdued as compared to the June in the corresponding quarter last year. But overall to answer second part of your question July we have picked up despite the monsoon continuing and as we talk today we are at high single digit growth. So it’s not as low as the first quarter we have picked up in July and we are as a policy though we don’t believe in giving guidance of accurate numbers.
But yes this trend of at least high single digit will definitely continue. Hopefully we will cross the double digit growth.
Shravan Shah
So for that so two three aspects. First is in terms of this 1.7% how was our agree non agree share and if you also can help us in terms of the growth for agree non agree in this quarter.
Chandan Verma
In terms of agree and non agree both have in tandem Agri has also grown around roughly around 2% and none agree has also roughly grown around 2%. So both are both agree and on every more or less we have the similar growth number and in terms of volume cliche we don’t give it’s a roughly around 70:30 ratio that we are having between agreement non agree between current quarter also and the same ratio was there in the corresponding quarter of the last year as well.
Shravan Shah
Okay, got it. And now sir in terms of margin so so pricing a bit present despite our pricing was if I look at QoQ was 1.2% down realization but if I look at FY25 it is 4.9%. So let’s say even if we are seeing a high single digit growth for this year how one can look at so on the pricing front because next net ultimately how one can look at the revenue for this year.
Chandan Verma
So revenue someone it all depends upon the how the prices of PVC is going to remain over the period to come. Right. So we have been seeing the declining trend of PVC prices from the last quarter from the till the current quarter. So this will more or less the price guidance will come how the it is going to remain over the period of time.
Shravan Shah
Yeah, but yeah because now the even the ADD whenever it will come and BIS has also been postponed to December. So in that scenario do we see the pricing to pick up at least in next 23 months or maybe it will be October, November onwards. One can look at.
Saurabh Dhanorkar
To answer your first question about ADD we are expecting the recommendation to go through within this month. But you are right by the time the finance department comes out with the final circular it will be maybe October or so. So after that definitely there will be an increase in the domestic prices internationally. As you know it’s all a volatile situation. You don’t know where. Which way oil will move. It’s going up and down the tariffs. So very difficult to predict what the shall you say as in prices will be and obviously correspondingly that they will reflect in the price.
Shravan Shah
So. So on the EBITDA margin front, so this quarter was a 9% I think normally we talk about kind of a 12% kind of a margin. So how one can look at. Can we. Can we start seeing a double digit plus kind of a EBITDA margin from Q2 onwards or till the time the prices will come up? Then only one can start looking from third quarter onwards kind of a double digit ebitda margin.
Chandan Verma
Yeah. So 7, 4. You have seen in the last quarter also June 24 quarter also we have listed a EBITDA margin of 18%. Because of this declining change pricing came. The EBITDA margin has got down drastically. If the price will remain stable, definitely we are expecting a double digit EBITDA margin for the year. For the year as a whole.
Shravan Shah
Okay, last are on the capacity. We were saying that in February we will be adding a 50,000 ton in 1h FY26. So have we added anything? If not by September, are we adding this 50,000 ton? And is there any plan in terms of the greenfield expansion, sponsor or Brownfield expansion?
Saurabh Dhanorkar
The 25,000 tons came in in the last quarter of the last financial year and 25,000 tons right now is almost completely implemented. Definitely by September everything will be up and running. So once we come back from one, we will have the advantage of this 50,000 tons. As on the greenfield function, there is still no decision of a new location. Because we the next phase of expansion, which we are already talking about internally working on internally, though it’s not approved by the board yet, will still most probably happen at the existing location. Because both at Ratnagiri and Masar we have adequate infrastructure to handle more capacity.
We see growing demand still around the markets around these plants. So the next phase of expansion definitely will come at the existing plants. Greenfield capacity announcement I think probably will take some time. Not. Not in this quarter.
Shravan Shah
Okay. Okay. Thank you and all the best, sir.
Saurabh Dhanorkar
Thank you.
Chandan Verma
Thank you.
operator
Thank you. The next question comes from the line of Sneha from Nawama Wealth. Please go ahead.
Sneha Talreja
Good evening and thanks a lot for the opportunity. Since I wanted to understand on a structural level, given now that you’re an integrated player and you would be reporting, you know, your margins on a consolidated basis, where can we actually see the margins, you know, on A structural level leaving apart the PVC ups and you know, downs which we’ve seen particularly in last one or two years.
Saurabh Dhanorkar
No, as said in the beginning, more and more we are looking at ourselves as a pipes and fitting player with the backward integration earlier when we set up the previous revenue plan that also was a move towards backward integration but we put up a capacity more than what we were concluding. So we were almost 50% of our resume. At one time we were selling and slowly now that has come down to almost zero, maybe one or two thousand tonnes. We sell outside specialty grade. So basically it’s all for captive consumption. So our margins obviously would remain whether we publish segment wise or whether we publish as a whole.
This is basically an accounting treatment and we have been advised for the last impact year or so that slowly you have to start thinking of looking at this whole thing as one unit because there is zero sale practically in the market. So whatever was the volatility of the ethylene prices for the previous present, business growth will continue. There is nothing structurally different in our operations now. So what was happening till last year? The same thing will happen. We will continue to be benefited by low EDC prices and we will continue to be impacted if the delta between PVC and EDC goes down.
Only thing as far as we are concerned, we look at us as purely as a pipe player now, not as a petrochemical player. So that is why this change in accounting method.
Sneha Talreja
Understood. Could you help us with the stress this particular quarter? PVC?
Saurabh Dhanorkar
Yeah, could you help on that?
Chandan Verma
Okay. DC stayed at $522 per metric currently and PVC to VCM it’s 151.
Sneha Talreja
Also could you give us the pricing?
Chandan Verma
So sorry.
Sneha Talreja
Also could you give us the pricing that would be better?
Chandan Verma
Pricing is around 8, $870.
Sneha Talreja
Understood? Understood.
Chandan Verma
Sorry, my bad. It’s $700. $700.
Sneha Talreja
Understood. Lastly, on the growth front, what would I have seen the growth in CTVC this particular quarter and you also mentioned from July you’re seeing a pickup. Is that more to do with the plumbing is what I’m, you know, understanding nfcs, you know, could you give some color? Is it broad based, Is it selective?
Chandan Verma
So current quarter our CPVC volume has grown by 10%. So out of that 56% contributed by pipe and 32% contributed by the fitting. So more or less the same increasing growth trend of TBC we are going to see in the upcoming quarter as well.
Sneha Talreja
That’s helpful, that’s helpful. Thanks. Thanks a lot team and all the best.
operator
Thank you. The next question comes from the line of Praveen Sahai from PL Capital. Please go ahead.
Praveen Sahay
Thank you for opportunity sir. First what’s your capacity in the pipe benefiting right now?
Chandan Verma
So in terms of Our total capacity 4 lakh 70,000 we were reporting earlier. Now as I’m sitting in Today’s date it’s 4 lakh 50. Sorry, 45 20,000. 25,000 we have added in March quarter and 25,000 we have added in the current quarter. So sitting on today’s debt we have the total capacity of 5 20,000.
Praveen Sahay
Right. Okay. Second question is related to the you know gross margin. Because as you said you are integrated player and your cross margin more to do. What I suppose is how the spread is moving PVC EDC or PVC vc. So sequentially if I look at your spread for a PVC EDC has improved from 490 to 522. But in the same case your gross margin has contracted. So is there any inventory loss you had booked for this quarter or why is it so?
Saurabh Dhanorkar
No. So basically if you see we do we are managing our inventory effectively. So this quarter fortunately also we have not seen any inventory loss. This is number one. Number two in terms of pricing margin. See whenever you see the pricing in the international market there are these prices are the more or less indicator. When we see the compare the landed prices and we when it goes to the market there are multiple factors also plays into picture. So that’s why the cost will remain more or less same in terms of number. But margin will also depend upon the how the top line is going to get.
Finally getting price is getting sold in the market. So that is how our margins were impacted.
Praveen Sahay
Okay. So there is a more contraction in the realization than the cost.
Saurabh Dhanorkar
Yes. Yes.
Praveen Sahay
Okay. Got it sir. And so next question is related to the use of your you know the cash which is the 2,500 crore. Is there any plan for a future.
Chandan Verma
See basically we will continue to expand the pipes capacity year after year. So typically a few hundred crores between 200 to 300 crores would be definitely spent every year in the expansion of five speed fittings capacity. But in the meantime we will also be adding to the cash reserve. So definitely if you take a five year span you will have more cash reserve than what we would be using for expansion. So it’s a question of timing. And again as I said in the last call also it’s the board’s decision that when we feel that we have adequate cash surplus which is not likely to Be used by business then we will return to shareholders.
But the timing obviously we cannot commit now.
Praveen Sahay
All right sir. Lastly on the capex for this year you guided last quarter 125 to 150 crore. What exactly like now you are saying about 200300 odd crore of a capex annually you are looking for. So for this year we can assume it’s a more like a 200300 odd crore of a capex you are going to do.
Saurabh Dhanorkar
Additionally maybe another crores.
Praveen Sahay
No. So 150 crore for this year you are saying?
Saurabh Dhanorkar
Yeah.
Praveen Sahay
Okay. Okay. Thank you sir. Thank you. All the best.
operator
Thank you. The next question comes from the line of Odit from yesterday. Please go ahead.
Udit Gajiwala
Yes sir. Thank you for taking up my question. So just one follow up. In the last call you mentioned that the focus of the company now remains on margin. I understand that this was a tough June overall and that must have dragged your overall performance. But you know overall if you had no inventory losses then also the margins are very much suppressed.
Chandan Verma
Yeah, but margins are obvious also factor of because the top line, the expenses remaining the same and the top line coming down. So obviously absorption of fixed cost plays a role. But having said that what we mentioned in the last quarter holds good that some of the incentive fees, some of the discounting schemes which we had during the past we have started withdrawing and we have definitely managed to knock in a few percentage points in the absolute gross margins in the tax business and that will continue. Obviously this is not the right time during monsoon to be very adventurous.
But once the demand picks up post monsoon we will carry this further.
Udit Gajiwala
Right sir. So just I think that is what one is that you withdraw the discounting. But in terms of your agri non agree mix on annualized basis how do you see internally that shifting because otherwise those margins without the volumes may also not suffice the target. Right.
Saurabh Dhanorkar
That will definitely come because we have as we had in our opening remarks we have said our emphasis is already going on regarding the making the mix to the better level at the 5050 level. But we think we are at the at the first quarter conclusion only. Let’s see how the things is moving. But yes our emphasis and our individual is also to make it to the extent possible 5050 over the period to come and that will give us the margin because as the non ag will go up that will give us the margin push as well.
operator
Hello. We are unable to hear you.
Udit Gajiwala
That’s it from my inside. Thank you.
Saurabh Dhanorkar
Thank you.
operator
The next question comes from the line of shivkumar Prajapati from Ambit Investment Advisors. Please go ahead.
Shivkumar Prajapati
Yeah. Hi sir. Thanks for having my question. My first question is what is our current share from fittings? I mean the revenue share from fitting.
Chandan Verma
See Shivam, generally we do not give our breaker between type and wedding. So overall if you agree non agree remains 2030. At that number we do not disclose.
Shivkumar Prajapati
Understood. Okay. And so would you be able to provide me the breakdown of the non agro revenue? I mean just want to understand whether the non aggregate revenue comes from plumbing, construction or industrial.
Chandan Verma
So in terms of our total revenue non aggregate somewhere comprises of 460crore roughly around.
Shivkumar Prajapati
Okay. And this 460. Would you be able to break it down further?
Chandan Verma
No, no that won’t be able to.
Shivkumar Prajapati
Okay. And is there any breakup available for retail versus the institutional?
Saurabh Dhanorkar
No, no no no. That general detail we do not discuss in the market. Generally the number but don’t. Yeah. This was a management. Use.
Shivkumar Prajapati
Understood sir. And that’s it from my end. Thank you.
operator
Thank you. The next question comes from the line of Vishal Shah from Shamiksha Capital. Please go ahead.
Vishal Shah
Am I audible?
operator
Yes sir.
Vishal Shah
Yeah. So like as Mr. Agrabal will join few months later. So what are the key strategic priorities and immediate goals? So Mr. Daniel will transfer. So in the near term
Saurabh Dhanorkar
there’s some background noise.Yeah. Can you please repeat the question? Somebody else was talking.
Vishal Shah
Am I audible?
Saurabh Dhanorkar
There is some background noise from your side.
Saurabh Dhanorkar
Hello Vishal, you can continue please. You can repeat your question please.
Vishal Shah
Yeah. So what are the key strategic priorities and the immediate goals for the Mr. Agrawal? So as you will join them in the upcoming two to three months. So as Mr. Hanaka will be there only. But whether we can expect any change in the stance from the company or any policy.
Saurabh Dhanorkar
Policies will remain the same. Because policy is not dependent on the person. It is as a. As a corporate and that way we are a very well defined vote driven company. Our independent directors are very actively involved in the strategy and planning. So whether it is Saurabh Dhanurpur or that will not change the overall strategy. But for him I would say the immediate carriage would be the looking at the market expansion, market penetration to some extent. Why I would not like to have a long full time role in this. Because the way the market dynamics go today the person at the helm has to travel extensively.
I’m sure with his younger age UDIT will be able to reach out to every corner of India, meet the distributors, understand their pain points and basically make the marketing network robust. As far as the Manufacturing concern. We already have a solid team in place. That’s not a thing. And again the expansion, he would be involved in executing this. As I said, although we have not declared the numbers we would continue to expand the pipes capacity. So one of his CRM would be on here also to see that deck function happens in time at the right location and the products get distributed properly.
Vishal Shah
Thank you. That’s it from my side.
operator
Thank you. The next question comes from the line of Ritesh Shah from Investech. Please go ahead.
Ritesh Shah
Yeah. Hi sir. Thanks for the opportunity. Couple of questions. First just wanted to understand on Nalsejar is there any offtake happening with respect to the scheme? Given there was some corruption related issues on the tendering Specifically if you can give some color in the state of Maharashtra also that would be great. And do we also supply under Naltrega directly or indirectly by contractors?
Saurabh Dhanorkar
No, we don’t supply anything directly through contractors. And I don’t know what this corruption related issues but we are not directly, indirectly, even remotely affected by that. Because if at all something happened at a government level I’m sure somebody must have been involved. But for us we have not seen even the slightest impact of any corruption there.
Ritesh Shah
And sir, how is the offtake with respect to this particular scheme? Is it quite normal or is it improved on a year, on year basis or last year 3 month roing business?
Saurabh Dhanorkar
Again as I said we sell supply to many of these schemes through our distributors. And they pick up the pipes from us as normal purchases. And then they supply to various. Because these schemes happen across the state in smaller villages in smaller amounts also. Some of them are as low as 1 or 2 lakhs. Some of them may be 5 lakhs, 10 lakhs. So to be honest we don’t track each scheme individually at our level. But what we understand from the retail network is that there is not a great surge as of now this year probably that will come only post monsoon.
So the normal pickup is going on. There’s nothing. There’s no lull in that purchase.
Ritesh Shah
Sir, my second question is we have indicated that we will have only one segmental number. So to what I understood, I think earlier we had this logistic cost savings specifically for the Baroda plant wherein we didn’t have to move as in all the way from Ratnagiri to Baroda. So when we say that we won’t have any external sales, is it we are implying that we are okay to bear a higher inbound freight cost even if it impacts profitability?
Saurabh Dhanorkar
No. But even today For Baroda client we are buying from Reliance outside basis. We are not transferring from Ratnagiri today. Our the Ratnagiri production as you know is the capacity is little over 2 lakh tonnes. Whereas our pipe capacity is now for more than 4 lakh tons. So the consumption more than 4 lakh ton. So in any case we have to buy. So there is no question of whether we incur more freight. And it doesn’t go for rap magnet. Now we are buying from the alliance for burn Slide.
Ritesh Shah
Yeah. Sir, this is helpful. Yeah. Thank you. Thank you so much. Thank you.
operator
Thank you. The next question comes from the line of sh. From Dollar Capital. Please go ahead.
Shravan Shah
Hi sir. Sir, just to clarify when we say the capex on 150 crore so all how much already we have done in Q1 and how much more we will be doing in the remaining nine months.
Chandan Verma
So at this moment that number is still order. The order has been started to place so over the period that we’ll be able to materialize. But as of now the order we have started to place roughly around already in place.
Shravan Shah
So Q1 we. We have done cash capex of 3040 odd order.
Chandan Verma
Not actually conversion. It’s the order placement only.
Shravan Shah
Okay. So for full year in terms of the cash capex it would be a 150odd corrode. That’s the way one can look at.
Chandan Verma
Yeah. Yeah.
Shravan Shah
Okay. But going forward as you mentioned it would be a 200300 crore kind of a capex from next year onwards one can look at.
Chandan Verma
Yeah. So that will include our existing replacement capitalization plus the enhancement of capital city board.
Shravan Shah
So. So. So there. So currently as you said we have a 5 lakh 20,000 capacity. So here further is there any capacity that will be coming up and if not in next year, how much more whatever way brownfield wave how much more capacity we will be adding.
Saurabh Dhanorkar
See basically exact numbers we cannot give without the boat. This is. But as I stated earlier the market is growing. We definitely have plans to have a double digit growth over the next five years. Which means we will need to expand capacity. And that is since we have the funds available. Since we have the market available we will continue to expand. But exact numbers today unfortunately we cannot share because that is still under planning.
Shravan Shah
Okay. Okay. Okay. Got it. But whatever the capacity right now we are looking at. But this year definitely we will not be adding any any capacity.
Chandan Verma
So this year towards the end. Yeah we will have some some of it. But as I said it’s not not finalized as yet. But as I said this quarter we are. Right now we are implementing the earlier 20. The 50,000 out of which 25,000 already happened before March. 25,000 is happening right now and we still have nine months to go. So by that time we will have.
Shravan Shah
Some more capacity and then now whatever we will be. Yeah no no I understood. But now onwards whatever we will be adding. So leave apart this 25,000 that will be mostly only in the. In the pipes. And are we also thinking to add capacity in fitt?
Chandan Verma
No, it will be mainly in tight.
Shravan Shah
So. So. So trying to understand when we. When we. For last. I think I. I don’t remember if you can help me Since I think many quarters we are saying that we want to have a 50. 50 agree non agri share. So how we will be achieving this is if we will not be adding a fitting capacity. How? Because this new agri share is already. It is. It is around 70% for last many quarters. 6570 odd percent. So to. To reduce that share and to increase our non agree how that is possible?
Chandan Verma
Because today we already have adequate. I’m not saying we are not going to add fitting capacity at all this year there is no. Because we already have over 50,000 tons of capacity and last year’s fitting sales was about 39. Between 35 to 40,000 tons. So we have adequate capacity to take care of the growth for the current year. Next year will be another year definitely by that time we will have something.
Shravan Shah
Okay and then. And in CBV CPVC also are we adding capacity? Okay. Okay. And and for. For industry. For this as you mentioned that we are looking at a double digit growth for next five years. So this year also are we. Are we looking at kind of 10 odd percent kind of a growth?
Chandan Verma
Definitely. Target is definitely about 10% definitely. With our dealers everything is there. And as I said already as of today we are high single digits. So as the market picks up there’s a good chance we’ll cross.
Shravan Shah
No, for us definitely but for industry. I’m talking for industry growth this year how we are looking at industry growth.
Chandan Verma
Industry Industry also should be close to.
Shravan Shah
And there also as you mentioned the CTVC will also be growing at double digit. Cannot possibly percent and PVC will. So both will be going growing in tandem. Okay. And lastly sir, whenever. Last time we said whenever the add will come. Whether it will come in October, September, whatever we. We said that if the. In terms of the price hike three to six odd rupees. So that’s the way one can look at or has anything changed or Is it a. But do we believe that this 36 rupees kind of a price hike will, will, will. Can. Can push the channel auto group, fill the inventory and then can help us in terms of the growth? Or is it whether this will be a 2 rupee hike or a 6 rupee, it will not have an impact.
The growth will, will be in any way coming a kind of a double digit channel inventory.
Saurabh Dhanorkar
Channel picking up is a temporary phenomenon when they go down maybe for a couple of months, three months, four months, finally at the end of the day how much the market grows by because the channel is not going to keep the inventory for months together. So if the market is growing, the channel will be picking up whether they pick up in 15 days or whether they pick up the same quantity over one and a half months, that’s what the price movements decide. So if you look at quarter to quarter, yes, that growth will come in this portion of the next quarter.
But if you look at annual this, there definitely will be growth.
Shravan Shah
Okay. Okay. Got it sir. Thank you. And all the best.
operator
Thank you. Before we move towards the next question, we would like to remind participants you may press star and one to ask the question. The next question comes from the line of Vipul Kumar Anupchand Shah from Sumangal Investment. Please go ahead.
Vipulkumar Anopchand Shah
Thanks for the opportunity. So my question is, is Mr. Chabaria our chairman and is he actually involved in day to day management of the company and guiding the company strategically? Because he is absent on the call for so many years and company’s performance is also not up to the mark. So are we losing any market share? So can you make some comments regarding the strategic role Mr. Chabaria plays?
Saurabh Dhanorkar
Yeah, no, he’s definitely involved in north only. The strategy of course is involved as a chairman. Plus as I said we have a very, very active independent director on our board who engage with us not only from board meeting to board meeting but also in between we have regular sessions. Chairman and the board and the CEO and our HOD we have as per Mr. Shahre is concerned, we have regular online meetings. So he’s involved in all major decisions like Capex and this. But day to day obviously he doesn’t get into that. It is left to the ND and HODs.
So that way we are a fairly professionally run company with a promoter who is actively monitoring.
Vipulkumar Anopchand Shah
No, but because the churn at the top is very high, sir, before, even before you took over and the performance of the company has also been less inspiring. Have you lost any market share over last Few years, sir.
Saurabh Dhanorkar
Market share obviously is a moving target to some extent. Yes. Some of the competitors have expanded after their public issues or whatever. So that changes from year to year. But that has nothing to do with the chairman being present on the conference call or on the analyst call. He is involved in the decision making. He is involved, very much involved in the both decisions. And if at all there is a dip in the performance, it is market driven or probably the team has to take the. It has nothing to do with the chairman.
Vipulkumar Anopchand Shah
Can you comment on the difference between margins at for fittings and pike? So naturally fittings will have a higher margin. So if you cannot quantify, but directionally they are much higher than pikes.
Saurabh Dhanorkar
Yeah, directly, there must have been five. Definitely.
Vipulkumar Anopchand Shah
Okay, thank you, sir. Thank you.
operator
Thank you. A reminder to all participants, if you wish to ask a question, you may press star and one, the last question for the day comes from the line of Keshav Lahuti from HDFC Securities. Please go ahead.
Unidentified Participant
Firstly, I want to know how are the CPUC prices And secondly, the growth you have indicated in CPVC for Q1 double digits. So whether you have grown, you have gained market share or the market demand was healthy.
Chandan Verma
Yeah, the CPVC prices have been on the decline of late. If you compare to last year, we have got benefits. More CPVC capacity is coming up this year and. And by end of next year we’ll have more capacity. More players are coming into India. So the availability of PPVC has increased. Correspondingly, the prices have come down and we expect them to come down further. And with CBDC becoming more affordable to the customers, the volume is growing. What? What? We have grown to some extent. I believe that yes, we have taken some market share. We have grown more than the market. But having said that, we expect the overall market for CBBC to grow in line with the plumbing market. So it’s not just cpvc. The overall plumbing market is growing. CPVC as part of that is probably growing faster because the base is smaller and we are growing slightly ahead of the industry. That’s the scenario.
Unidentified Participant
Got it. And what is your. Secondly, the CPVC prices have declined. So it is because of a cost pass through or whether the margin has also taken a hit. Secondly, what is your CPUC revenue and volume for this quarter?
Saurabh Dhanorkar
No, I’ll just. On the first part I will say that CPVC resin prices have declined but correspondingly our sales prices are not so in fact the margins in CPVC are better compared to last year. But having said that, the numbers added to. Do you have Them handy.
Chandan Verma
So we have the total 6% share of CPVC in our overall volume.
Unidentified Participant
Okay, understood. Got it. And what was the CPVC growth in July month which you said for the company was high single digit.
Chandan Verma
So we’ll not be able to comment at this moment. We just wrapping up July.
Unidentified Participant
Got it. And sir, on PVC side, how has been the channel inventory for the company maybe on March versus June versus July, how has it changed? And what is your possibly normal channel? How is it now? What is the sense possibly can channel inventory bring a strong growth for a quarter if that get normalized?
Saurabh Dhanorkar
The channel inventory has been right for the last few months has been low because the channel inventory as we discussed earlier picks up when there is a anticipation of price increases and they tend to stop more. So that will really depend on how the international PVC prices move over the next two months. Depending on also the sentiments relating to anti dumping duty. So very difficult to prevent headache to bend the market. But since this is a monsoon period, we don’t really see a surge in this channel inventory pickup during this month. But as we come towards the end of monsoon by end of August or early September, September should be definitely a much better month.
So by that time there will be very low on inventory and as the demand comes up, the demand inventory will pick up.
Unidentified Participant
Okay, got it. So one last question from my side sir. So the excess cash which is there in the balance sheet which has been discussed multiple times so but there is no, still no, you know, clear roadmap missing possibly whether the company won’t be using, why it is not distributing to the shareholders.
Saurabh Dhanorkar
Yeah, but unfortunately I don’t have an answer for that because it is decision taken at the board level. And as I said we are as management we are aware that yes, we are holding the shareholders money interest and if we don’t utilize it effectively for business it would be proper to return it to the shareholders. But unfortunately I can’t place any timeline on this.
Unidentified Participant
Got it. That is helpful. Thank you so much.
Arun Baid
Thank you. As there are no further questions from the participants I now hand the conference over to management for closing comments. Thank you. And over to you sir.
Saurabh Dhanorkar
Thank you Arun. Thank you all for attending today’s call. And if you have any further questions, we’ll be most happy. You can get in touch with us through mail or through call to Mr. Chandan Varma. Thanks once again. Have a wonderful day.
Chandan Verma
Thank you all. Thank you for your active participation. Thank you.
operator
Thank you on behalf of ICICI Securities. That concludes this conference. Thank you for joining us. And you will now disconnect your line. Thank you.