Himatsingka Seide Limited (NSE: HIMATSEIDE) Q3 2025 Earnings Call dated Feb. 13, 2025
Corporate Participants:
Shrikant Himatsingka — Executive Vice Chairman and Managing Director
Analysts:
Prerna Jhunjhunwala — Analyst
Aditya Singh — Analyst
Riya Mehta — Analyst
Shaurya Punyani — Analyst
Rusmik Oza — Analyst
Nirav Savai — Analyst
Rishikesh Oza — Analyst
Shrikant — Analyst
Presentation:
Operator
Good day. Ladies and gentlemen, good day and welcome to the Q3 FY ’25 Earnings Conference Call of Limited hosted by Elara Securities India Private Limited. 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 assistant during the conference call, please signal an operator by pressing star then zero on it has turned phone. Please note that this conference is being recorded.
I now hand the conference over to Ms from Elara Securities India Private Limited. Thank you, and over to you, ma’am.
Prerna Jhunjhunwala — Analyst
Thank you, Mudkan. Good afternoon, everyone. On behalf of Ira Securities India Private Limited, I would like to welcome you all for Q3 and nine months FY ’25 post-results conference call of Limited. Today, we have with us the senior management of the company, including Mr Srikant Himat, Executive Vice-Chairman and Managing Director; Mr, M., President — President of Finance and Group CFO; Mrs Shilpa, Vice-President, Strategy Finance. I would now like to hand over the call to Mr Shikanti for opening remarks, post which we can take the Q&A session. Thank you, and over to you, sir.
Shrikant Himatsingka — Executive Vice Chairman and Managing Director
Thank you. Thank you, Frena. Thank you very much everybody for taking the time this afternoon. As always, I presume you’ve gone through the numbers. I’ll take you through a quick update on business share some thoughts about the market that I that I see and then I’ll be opening the floor to Q&A. So our operating performance for the quarter was largely range-bound, saw some marginal corrections in total income in-line with our expectations and the reasons for this has been shared with stakeholders in the second-quarter as well. Our capacity utilizations have also been largely rainbunk with the marginal movements both negative and positive in the Sheating and territile divisions respectively.
The Spinning division continued to clock 99%. The Sheating division was at 60% and division was at 68%. So we continue to focus on broad-basing our market presence and in-line with this strategy, we continue to make progress on growing our presence in India across channels and we remain optimistic on the prospects of growth in the Indian market going-forward. As part of our ESG commitment and our initiatives to optimize our energy costs. We are pleased to share with stakeholders that our green energy portfolio has now and has now been enhanced to 28.7 megawatts from approximately 4.2 megawatts earlier and this will aid us in optimizing energy costs going-forward and also help us in achieving our sustainability goals you know, in times to come.
And in addition, as we shared the last-time, we closed — successfully closed our INR400 crore QIP during Q3 FY ’25 and consequently delever our balance sheet by approximately INR325 crores during the quarter. And all-in all, on the demand front, we are seeing a relatively stable environment and. We are seeing a buoyant demand for territal products and more stable demand for sheeting products. We are in the midst of trying to debottleneck some of our territal operations in order to align ourselves for movements in-product mix and to be able to sweat the territal plant more and to enhance utilization. So that’s something that we are working on. So buoyant demand on front, as I see since FY ’26 is around the corner and I think the demand for sheeting is more stable.
India is looking promising. We are in-line with our thinking vis-a-vis growing in the EMA markets and I think that should come through as well going into the next fiscal. All-in all, our areas of focus remain the same, strengthening our balance sheet, delivering our balance sheet, our focus on enhancing capacity utilizations, you know the worst is behind us whatever volatility we have to face on the revenue front has largely been digested. And now we are focused on getting this back on-track. Some last bits and pieces of it which we are currently going through, which I shared with stakeholders even during the last call is something that we are concluding as soon as we can. In addition to this, our focus remains broad-basing markets.
So we’d like to grow in-markets outside of North-America, we’d like to grow in both the EMEA region and the India APAC regions, which we are definitely seeing growth in. The macroeconomic factors also continue to play-out, the China plus one sort of opportunity/broad movements is something that’s still in the air as far as our industry is concerned. We also see movement because of some of the challenges that are being seen in Pakistan. I think that’s something that also could potentially or is potentially throwing up opportunities for the industry and for India. And in addition, the strong domestic consumption sort of piece also seems to be playing out as we had thought.
So the cotton crop for the season seems stable. We don’t see any cause of concern on that front. And as far as volatility on the currency is concerned, I’d like to highlight that the other income in our financial results include foreign-exchange gains, both realized and unrealized that are incurred in the ordinary course of business and is integral to our operations. This is in-line with the accounting standards and is classified accordingly. So I urge investors to read the numbers in with that. The other income does not include anything that is outside the ordinary course of business.
With this I would like to conclude my update. I will be happy to take any questions that you might have.
Questions and Answers:
Operator
Thank you very much. We will now begin the question-and-answer session. Anyone who wishes to ask questions may press star and run on the attached on telephone. If you wish to remove yourself from question queue, you may press star in two. Participants, I request you to use answers while asking a question. Ladies and gentlemen, we’ll wait for a moment while the question queue assembles. The first question is from the line of Aditya Singh from Multi-begger Stocks. Please go-ahead.
Aditya Singh
Good afternoon. Am I audible?
Shrikant Himatsingka
Yes, you are.
Aditya Singh
Thank you for taking my question, team. I had two questions. First is regarding the capacity utilization on our sheeting division. Can we get any estimate of around when it might go up from 60%.
Shrikant Himatsingka
Yeah. And also go-ahead with your second as well and then I’ll answer both.
Aditya Singh
Okay. And the second question is regarding revenue guidance for this and the next fiscal year, basically FY ’25 and FY ’25.
Shrikant Himatsingka
Right. So thanks, Aditya. I feel that the real — the capacity utilization in our sheeting division will see movement as we go into FY ’26. And as far as you know the Tal division is concerned, I definitely think it will be moving up north. From here going into FY ’26 and sorry, what was your second question?
Aditya Singh
My second question was regarding the revenue guidance for FY ’25 and FY ’24.
Shrikant Himatsingka
So I, as you know, Adity, we — does not offer any revenue guidances per se and we don’t — we don’t give guidances. But you know, the Nine-Month performance has largely been rainbound and stable for FY ’25. So I expect that to continue for the rest of fiscal. And as far as FY ’26 is concerned, I definitely, as I said, look-forward to blocking improvements on our capacity utilizations in both divisions and consequent to that you continue to grow from here
Aditya Singh
Okay, thank you. That was all from my side. Thank you so much taking my question.
Shrikant Himatsingka
Thank you. Thank you much.
Operator
Thank you. Thank you. I remind you to all participants same at this time and one to ask questions. Thank you. The next question is from the line of Mehta from Equitas Investments. Please go-ahead.
Riya Mehta
Thank you for giving me an opportunity. My first question is, what would be the ForEx gain for this quarter for us
Shrikant Himatsingka
Here the ForEx gain is in the region of approximately INR27 INR28 crores somewhere
Riya Mehta
’27. Also, we are seeing a lot of purchases happening this quarter, like around INR82 crore worth of purchases and we have stocked up inventory about INR30 crores. So was there any inventory arbitrage this quarter that we have piled up on inventory?
Shrikant Himatsingka
No, actually inventory movements and the ordinary costs the purchases reflect some requirements of clients the specifications of which were not something that we wanted to manufacture internally at this point and so we had to outsource it we do accommodate such requests from time-to-time. So it was one of those requirements on essentially.
Riya Mehta
Got it. And in terms of our contribution from US and Europe, what would be the breakup
Shrikant Himatsingka
The breakup between the geographies, I’ll have to get back to you on that. Could we take that offline, please?
Riya Mehta
Yeah.
Shrikant Himatsingka
Yeah,
Riya Mehta
I’ll get back to and further questions.
Shrikant Himatsingka
Yeah, but on that question, I would like to say that our overall movements in the Europe, Middle-East and African regions have been encouraging and so on for our India and Asia-Pacific presence a core priority for the group to grow in regions outside of North-America while North-America remains the largest and most important market. But I think that a lot of these key markets in other regions offer immense opportunities for us to tap into. And we will continue to broad-base our revenue streams to bring down the revenue contribution from North-America?
Riya Mehta
Got it. And in terms of the margin contraction, was there any particular reason for that? Did we have to reduce the pricing?
Shrikant Himatsingka
No, I mean the contraction is really range-bound. I would urge you to look at in it in tandem with other income. I’ve always maintained that with stakeholders even in the past, pleased, I mean there could be some quarters where the other income is a little higher, but it’s large — it’s something if you look at nine months, it was approximately INR15 crore INR20 crores for the Nine-Month period and it’s about close to INR40 crores for this about a INR15 crore INR20 crore movement during the nine-month period. So you know, I think there is probably a movement of 100 basis-points on the operating margin front. Otherwise, please look at it in tandem with the other income as well.
Riya Mehta
So basically, we have to pass-on any forex gain or loss. They pass it on to the customer.
Shrikant Himatsingka
No, I mean that I mean it’s not necessary. I think some of it will be passed on, some of it will remain. But our operating margins are largely range-bound and haven’t really are you been hit as such, maybe 100 basis movements in the ordinary cost because you have to look at it in tandem without income. And given the fact that we did see the movements during the quarter. We thought it prudent to calibrate the quarter accordingly.
Riya Mehta
We got it. And going-forward, what will be our growth guidance for the next year?
Shrikant Himatsingka
, we don’t give any guidances on growth, but the narrative has really been strengthening our balance sheet, which we took initiatives for delevering our balance sheet, optimizing our cycles and you know, broad-basing our geographical presence and driving capacity utilization. This is really the focus. And our assets are world-class, our capacities are world-class, you know, it’s probably industry-leading from a standpoint of our technology platforms and capabilities. And our sole focus is to sweat back and deliver the numbers that we had spoken about with stakeholders earlier. We believe our manufacturing platforms are capable of delivering approximately INR4,000 crores of revenue at full capacity and that’s something we continue to be focused on delivering.
Riya Mehta
Okay. Thank you. I’ll get back-in queue for further questions.
Operator
Thank you. The next question is from the line of from Elara Securities India Private Limited. Please go-ahead.
Prerna Jhunjhunwala
Thank you. Just wanted to understand this debottlenecking, is there any capacity enhancement and how much with this debottlenecking come in?
Shrikant Himatsingka
Yeah. So is this?
Prerna Jhunjhunwala
Yeah, Predna.
Shrikant Himatsingka
Predna, we are working on debottlenecking our capacities because of movements in-product mix. So you know the world — Terry in spoken English sounds like tape product and you know but in reality it’s very nuanced. There are all kinds of products and the mathematical equations change as product as product mix changes. So some of our capacities have taken a hit because of product mix changes, which is why we need to debottleneck some of our some parts of our value chain. And in addition to that, we’re also working to look at taking to 40,000 tonnes per annum from 25,000 tonnes to per annum in due course.
Prerna Jhunjhunwala
So can we expect that to complete by next year? INR40,000?
Shrikant Himatsingka
Yeah. We are looking at it somewhere in the next 12 to 14 months-12 to, 14 16 months somewhere that
Prerna Jhunjhunwala
Okay. And what is the capex for that sir?
Shrikant Himatsingka
As I shared earlier, whatever it is will be part of our ordinary cost, maintenance and organic CapEx budgets, which are INR60 crore to INR80 crores for that.
Prerna Jhunjhunwala
Okay. Understood. And sir, in the — I understand that capacity utilization in bed sheets has come off due to strategic decisions taken earlier. Could we have an understanding on how are we progressing on improving the capacities and forth and what would be the levers for us to improve our capacity utilization there?
Shrikant Himatsingka
So as far as steady is concerned, right now we see a clear path on capacity enhancement, there is adequate demand as far as we see. And as far as our strategies are concerned, it’s yielding well as far — which is essentially driven by broad-basing our market presence and a broad cross-section of products that we offer and of course, our pursuit of larger client tools in key markets. So we seem to be seeing positive response on all those fronts. It’s not visible to our investors at this point because some of these challenges on debottlenecking we are going through. But directionally speaking, I see Territal utilizations going north with clarity. As far as sheeting is concerned, the environment is more stable, but the same set of strategies is something that we feel will yield results on enhancing utilizations there as well. And I think that you know, that should that should start seeing traction, as I said earlier in ’26 as well.
Prerna Jhunjhunwala
Okay. And some update on India business penetration or where are we currently as compared to what we had targeted?
Shrikant Himatsingka
Yeah. So India was pretty much non-existent income in terms of absolute values. It was very low, even if I look at early parts of FY — if I look at FY ’24, India was close to — I mean, it was a sub INR25 crore business FY ’25, we saw it grow as I’ve shared with stakeholders near the approximately INR100 crore mark-on thereabouts and are on-track to achieve something of that nature and we continue to see growth going-forward into FY ’26. So I think India is proceeding and progressing well. Given its fragmented nature, of course, it has its own challenges, but its sheer size and its sheer requirements are such that we think that we should be in-line with achieving or looking at India as a substantial revenue stream in the next five years as I had indicated earlier. You know, directionally, we are looking at INR1,000 crores from the nation over the next five years is what I’ve shared with our investors. And I think that directionally, I’d like to maintain that you know that number coming from this jurisdiction during this period.
Prerna Jhunjhunwala
Okay. And sir, what about profitability in India business? How is it shaping up? When do we — what kind of costs are increasing? And when do we achieve breakeven, if at all, we are making not making money over there?
Shrikant Himatsingka
So I’d like to share with investors that as far as-is concerned, when we say India, we mean all of our bedding and bath businesses and rate paint upholstery businesses in the — in the country, across channels, across your price points. And the EBITDA profile question has come earlier as well. We feel that the EBITDA from India should be, you know, in the region of approximately 15%, you know, or thereabouts and this is what we are projecting at this point. There are some buckets of business in India where the margins are little higher, somewhere it’s a little lower, but as an average, I think it is in that — in that realm as an integrated model, that’s what I think we should be able to clock.
As far as your question on breakeven is concerned, overall as a jurisdiction, it’s you know, it’s in — it’s already sort of broken even as we went through FY ’25. There was a drag in the first couple of quarters. Now it’s largely evenish. And the reason for that, Prena is at least as far as we are concerned, we are a little prudent about how much we spend on-brand building. The Home Textile segment is a little more benign on-brand building costs than the fashion segments, if you will. And of course, different corporates can have different views on this. But as far as we think the home textile segments is not is not heavy on that front. The obsolescence is also very controlled and therefore you know the margins should come in this region as we go-forward?
Prerna Jhunjhunwala
Understood, sir. And my last question on debt. This time would like to understand how is the debt position today post QIP
Shrikant Himatsingka
So our debt has corrected by approximately over 200 crores and has now stands at just over INR2,300 crores. Our net-debt has corrected, you know by INR324 crores during the quarter and stands at just over INR2,300 crores for the quarter.
Prerna Jhunjhunwala
Okay. And sir, see this
Shrikant Himatsingka
INR2,680 crores as net-debt in the end of September. We are now down INR2,350 crores at the end of December. And our focus on deleveraging will continue going into FY ’26.
Prerna Jhunjhunwala
Understood, sir. Any debt number target that you would like to give for ’26?
Shrikant Himatsingka
No target as such, but I’ve shared with investors that directionally on the one-hand, we’ll be working to sweat our assets better considering some of the turbulence we went through. And so on the one-hand, our assets will sweat better. On the other hand, we’ll delever and improve our leverage ratios from that standpoint and the health of the balance sheet and also position us for growth and opportunities that will definitely come our way. And in addition to that, from a standpoint of our next bus stop, we’d like to bring it closer to the 2,000 mark you know, as we go-forward and then we’ll take it from there. But over a two-year time-frame, you know, if I look at over the next 18 to 24 months, we should — we would like to bring that down to in the region of approximately 15 crores to INR15 crores to INR1,600 crores.
Prerna Jhunjhunwala
Fantastic, sir. Thank you and all the best.
Shrikant Himatsingka
Thank you.
Operator
Thank you. The next question is from the line of Shariya Bunyani from Arjav Partners. Please go-ahead.
Shaurya Punyani
Hi, I’m audible?
Operator
Yes, sir.
Shaurya Punyani
Sir, sir, one question. So you said at peak capacity you can do around 4,000 revenue. So does that include the division expansion like from 25 to 40
Shrikant Himatsingka
Yeah, part of it, yes And I mean it’s strictly I mean it’s a it includes a small part of it, not the entire part of it from what we currently have, we should be able to deliver in that region. The additional capacity is over and above, but there could be a little give-and-take.
Shaurya Punyani
So we can — at what expected time we can reach a potential optimum capacity like in 18 months or so.
Shrikant Himatsingka
I’m sorry, could you repeat your question.
Shaurya Punyani
The — by when we can reach optimum capacity utilization in like 18 months or so?
Shrikant Himatsingka
And what we have spoken with our stakeholders and is this 18 to 24 months is what we look at
Shaurya Punyani
18 to 24 months. Okay, sir. Okay. Thank you. Thank you.
Operator
You. The next question is from the line of Oza from Nine Grays Equi Research. Please go-ahead.
Rusmik Oza
Thanks for the opportunity. Sir, as you mentioned that all the realignment which you were trying to do is over. Can India expect a decent growth starting from Q4 onwards on a Y-o-Y basis because competitors are growing in the last two quarters, we have not grown because of that some issues we had and you were trying to deal with it, but if that is over, can there be a 10% plus volume revenue growth coming from Q4 onwards on a Y-o-Y basis?
Shrikant Himatsingka
Yeah. As I indicated last quarter, we felt that for a couple of quarters, we’re going to have some range-bound movements. So I think we should look at that more coming in from going.
Rusmik Oza
Okay. Okay. So does it mean that probably growth could resume from then Q1 of FY ’26. Is that a fair assessment, sir?
Shrikant Himatsingka
Yes. I think, yes, directionally from ’26 is when we’d like to see that unfold. That’s right.
Rusmik Oza
Okay. Okay. And you just did mention that maybe it will take around 24 months for the utilization levels to go to around 80%. But just to get a ballpark figure in next fiscal year, can we go to around between 72% to 75% utilization if growth comes back.
Shrikant Himatsingka
Yes, I mean I wouldn’t want to give a guidance. So what I’m saying is not a guidance, but conceptually and from a standpoint of availability of infrastructure and capacities and our alignments to global clients, yes, absolutely, that’s very possible.
Rusmik Oza
Okay. Sir, one question on the interest cost also. We raised money in end of October 30 October. But considering that two months were in the last quarter, the interest cost has come down from INR81 to INR78 crores only. So is it that the full impact of the debt reduction will be visible from this quarter onwards? Is it like that?
Shrikant Himatsingka
That’s right. This quarter should show more clearly the impact of the debt reduction. But I would like to state here that there are other — there are other, you know, let’s just say, charges and hits that sit in the interest and finance line, including some foreign currency convertible bond translation costs, which in this quarter is actually INR2 crores that’s sitting there in that interest cost line. So corrected for that, it’s a INR2 crore lower number. But we have movements like this every quarter. So to answer your question, yes, we should see more clear interest cost-reduction in Q4 because we really didn’t get the whole quarter for last quarter.
Rusmik Oza
Okay. Okay. And my last question, sir, is on the margin side. If I add-back the INR27 crores of, you know, income on account of currency depreciation to the margins, it comes around 19%. We were operating at 20% for the last previous two quarters. And considering that the currencies now in this quarter depreciated very sharply, even if we add-back the gain on currency, will we go to 20% EBITDA margins or operating profit margins from Q4 of this kind of fiscal year or Q1 of next fiscal year.
Shrikant Himatsingka
You know,, the EBITDA margin of, the EBITDA profile of the company as I’ve shared with stakeholders before will be between 18% and 22%. That’s what we have ordinarily clocked. If you see our operating performance, you know, that’s what you will see in recent times. And going-forward is something that we feel that we continue to talk. This quarter’s aberration is largely optical because of the other income piece. Please read it in tandem. It’s broadly in the same range, plus-minus 100 bps. So our EBITDA profile going-forward or should be in the same region as I said,
Rusmik Oza
Okay,. Okay. Sir, I was coming from the background that last year INR was around 83.5%, now it’s almost 87.5%. So there is a 5% currency depreciation assuming you pass-on half of it also, you get a realization benefit of 2% to 3% and cotton mostly cotton procurement is more or less domestic and you said cotton prices are stable. So in that background, then probably logically we should hit 20% plus EBITDA margin going-forward. Is this assessment correct or am I missing something?
Shrikant Himatsingka
No to the best of my knowledge and in our experience in this industry, while what you say is mathematically and theoretically correct I feel that you know a lot of these games are, you know, essentially erode away in some form and shape, either in the form of costs or in the form of prices or you know or a combination of the two. So just taking a prudent view, I feel that despite some of the currency movements, you know, I think that the margins will remain between 18% and 22%, there could be movements between quarters here and there. This quarter has also largely ranged down and I think going-forward, we should be safely in that well. Because if I were to look at it from your standpoint, let’s say this, let’s argue for a second that the rupee was 60 at some point and now it’s 87%. And so now that’s a 45% movement. And so if we gave half of it away, the rest should be within the ecosystem. But if you really look at it in a span of time, it erodes away and it sort of comes back to you know reasonable frameworks. So that’s what I feel will happen this time as well.
Rusmik Oza
Okay. No, sir. Thank you so much.
Shrikant Himatsingka
Thank you.
Operator
Thank you. The next question is from the line of Nirav from Abasco. Please go-ahead.
Nirav Savai
Yes, sir. Just wanted to understand this captive power, which we have ramped-up from what 4 gigawatt to 28 gigawatt, what can be the cost-saving on the power side, which we see FY ’26 onwards?
Shrikant Himatsingka
Hi, we think that we should save approximately around three rupees a kilowatt-hour
Nirav Savai
And in absolute terms what would be the amount
Shrikant Himatsingka
It — we’ll have to just work that out because this is a 28.7 megawatt of green energy. So we will just work-out what the units would mean in terms of converted units and then we can take that offline in terms of what the absolute benefit would be.
Nirav Savai
Okay. And what would be as this as a part of overall requirement, let’s say, 28 megawatt is what we have keptive now, but what percentage of this would be for the overall power requirement?
Shrikant Himatsingka
So this is approximately 20%.
Nirav Savai
The 20% we will have captive now and current rate would be what about 6% or something or what is it?
Shrikant Himatsingka
Our current rates are in the region of over INR9 per kilowatt-hour.
Nirav Savai
So this nine will come down to 3%. So at least on 20%, we have about
Shrikant Himatsingka
2%, 3%, it will come down by 3%,
Nirav Savai
Come down by three. Okay. So it will be 6%. So basically when we see there can be a substantial amount of savings on the power side, is it right to assume for ’26 or at least on the 20% which is captive now?
Shrikant Himatsingka
The savings will be to the tune of what this converted numbers would be, which we will share with you once we calculate it. Yeah, to that degree, we should see savings. That’s right.
Nirav Savai
Right. Another thing is on the ForEx side, how much would be mark-to-market and how much is realized? The ForEx gain of INR28 crores, which you had diluted
Shrikant Himatsingka
Nira, we’ll have to look at the breakup it does include both. Yeah
Nirav Savai
Okay, all right, that’s it from my side. Thank you
Shrikant Himatsingka
Thank you.
Operator
Thank you. The next question is from the line of Rishikesh from RoboCapital. Please go-ahead.
Rishikesh Oza
Yeah, hi. Thank you for the opportunity. Sir, my first question is regarding debt. I think to a previous participant, if I’m not wrong, you mentioned around INR1,500 crores to INR1,600 crores debt that you are targeting. This is by when?
Shrikant Himatsingka
I would like to say that tomorrow morning, but I’m kidding. No, I said we would be like — we would like to achieve those kinds of number INR150 crore to INR1,700 crores over the next two years is what we would like to ideally aim.
Rishikesh Oza
Okay, got it. And secondly, we are also expanding into Middle-East and Africa and Asia-Pacific. Can you share revenue target that you have? I think you had shared that in India, you will be targeting around INR300 crores to INR400 crores in next two years. Can you share for the other regions as well?
Shrikant Himatsingka
We can’t give you region-wise revenue targets, Rishikesh, that will be a little difficult, but our current capacities should be able to throw up revenues in the region of INR4,000 crores at full capacity. That’s one thing I had shared with stakeholders earlier as well. And the other thing I’ve shared with stakeholders is, I feel or rather we feel that India is an important destination in terms of market. The strong domestic consumption and the growing urbanization and obviously will throw up opportunities for us to capture. And in light of that, we think India should be a INR1,000 crore market for us in the next five years. You know, we started out a little late, but we now operate in India with four brands. We operate in India with the Him brand, Himea, LIVE and Atmosphere brands and we are present across channels.
We are present in India through multi-brand outlets, through large-format stores, through commerce platforms, through e-commerce platforms, through private-label channels and other channels. So you know, we have a comprehensive presence. We also operate not just in the bedding and bath segments in the country, but we also operate in the and upholstery segments in the country. And our current brand offering, Atmosphere, which is a luxury brand offering is something that we are going to bring down in price points and go much broader in terms of audiences and reach as far as straight train upholstery is concerned as well. So we will be looking at our India presence holistically, not just across channels, but across price points and product categories that span bedding, bath, drapery, upholstery and accessories.
Rishikesh Oza
Okay. Okay. Lastly on — again on debt for FY ’25, what debt levels are we going to have for FY ’25 end?
Shrikant Himatsingka
Well, I wish I knew. What I do know, is at this point, at the end of December, we are at INR2,350 crores in terms of net-debt, which is a reduction of over INR300 crores from September. And I think we are tracking March to be a net-debt stable, yes, from here.
Rishikesh Oza
Okay. Thank you.
Shrikant Himatsingka
Thank you.
Operator
Thank you. The next question is from the line of from YellowCorpor LLP. Please go-ahead.
Shrikant
Hello.
Operator
Yes, sir.
Shrikant
Thank you. Am I audible?
Shrikant Himatsingka
Yes. Go-ahead.
Shrikant
Thank you for the opportunity. Next there is a new thing. As I heard from your conversation with the past participant, the purchase of something which is new thing in like few quarters, whether this is a recurring thing or like is it going to affect the revenue going-forward or can you throw some light on that?
Shrikant Himatsingka
Yeah, very good question. You know it — the requirements were such that I mean it was needed some tweaks in our operations and so we chose to outsource it. So it could last a few quarters, but eventually will come back-in house.
Shrikant
So is it the thing affecting your EBITDA margin?
Shrikant Himatsingka
Yeah of course, because they are not manufacturing it, so it could — you know a little bit of that 100 bps impact that I spoke about was also probably because of this reason. But you know, these are certain things that pop-in and out. You see it once in a while, some requirements which are not necessarily suited for current configurations. So, but we are attending to that. So we might see some of this for a few quarters. It’s a opportunity that we are tapping into or that we are servicing at this point, but eventually we’ll come back-in house into our manufacturing metrics.
Shrikant
Can you guys look till when would last okay, if it’s possible
Shrikant Himatsingka
So sorry
Shrikant
So can you write me till when and how many quarters this could last?
Shrikant Himatsingka
Maybe at this point 2, 3, 2, 3 quarter than that.
Shrikant
Thank you so much.
Operator
Thank you. As there was the last question for the day, I now hand the conference over to the management for closing comments. Over to you, sir.
Shrikant Himatsingka
Thank you as always, an absolute pleasure to interact with everyone. Thank you all for your questions. I hope I’ve given you clarity on your queries and in some cases, where we request you to reach-out to us offline, please do so and then we will be more than glad to get you aligned as far as your queries are concerned. Thank you very much and have a nice evening.
Operator
Thank you. On behalf of Elara Securities India Private Limited, that concludes this conference. Thank you for joining us and you may now disconnect your lines. Thank you.