Hindware Home Innovation Ltd (NSE: HINDWAREAP) Q3 2026 Earnings Call dated Feb. 13, 2026
Corporate Participants:
Nirupam Sahay — Chief Executive Officer
Rajesh Pajnoo — Chief Executive Officer of Pipe Business
Sandeep Sikka — Group Chief Financial Officer
Analysts:
Unidentified Participant
Nikat Koor — Analyst
Madhur Rathi — Analyst
Parikshit Gupta — Analyst
Jasmine — Analyst
Akshay Chheda — Analyst
Presentation:
operator
Ladies and gentlemen, Good day and welcome to Q3 and nine month FY26 earnings conference call of Hindwear Home Innovation Limited hosted by Dollars Capital Private Limited. As a reminder, all possible 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 attached on phone. Please note that this content is being recorded. I would now hand the conference over to Ms. Nikat Kohl, Daulat Capital Private Limited. Thank you and over to you Ma’.
Am.
Nikat Koor — Analyst
Thank you. Good evening and welcome everyone. On behalf of Dallas Capital, we invite you to henware Home Innovation Limited Q3 and 9M FY26 earnings conference calls. From the management side we have Mr. Nehru, Pam Sahai, CEO of Bath and Consumer Appliance Business, Mr. Rajesh Pajnu, CEO of Pipe Business and Mr. Sandeep Sikka, the Group CFO. Kindly note that some of the remarks or observations made during today’s call might be forward looking, such as financial projection or statements regarding the Company’s plans, objectives, expectations or intentions. The Company does not have any obligation to revise these forward looking statements to reflect any future events or developments.
For a comprehensive disclaimer, please refer to slide 2 of the result presentation. With that, I would now like to hand over the call to the management for the opening remarks post which we’ll open for the question and answer session. Thank you and over to you, Mr. Neerupam Sahai.
Nirupam Sahay — Chief Executive Officer
Good evening everyone and welcome to Hindu Home Innovation Limited Q3FY26 earnings call. Kindly note that some remarks and observations made during today’s call might be forward looking. These may include, but are not limited to financial projections and statements regarding the Company’s plans, objectives, expectations or intentions. The Company does not have any obligation to revise these forward looking statements to reflect any future events or developments. For a comprehensive disclaimer, please refer to slide number two of the results presentation. I will start with a brief summary of our performance for nine months and quarter three of FY26.
For nine months FY26, the company reported consolidated revenue of 1,848 crores compared to 1,824 crores in nine months of FY25. Reflecting a year on year growth of 1%, EBITDA stood at 170 crores against 132 crores in the same period last year, registering a year on year growth of 28%. With EBITDA margins at 9% compared to 7% in the corresponding period last year. PBT before exceptional items was 30 crores compared to negative 30 crores in nine months of FYI. For quarter three FY26, the company reported a consolidated revenue of 640 crores compared to 594 crores in Q3 FY25, representing a year on year growth of 8%.
EBITDA for the quarter stood at 52 crores versus 37 crores last year up 38% year on year with margins at 8% compared to 6% in Q3 of FY25, profit before tax before exceptional items for the quarter was 6 crores as against negative 16 crores in the corresponding quarter last year. As communicated in our previous investor calls, In a strategic move to sharpen our focus on the kitchen appliances segment including chimneys, hobs, cooktops and sinks, the Board has approved the discontinuation of high loss making product categories such as air coolers other than through the E Commerce channel ceiling and other fans, air purifiers, water purifiers and furniture fittings.
Please refer to note number two of the published financials for further details. Now I will cover the bathware and consumer appliance businesses. For nine months FY26 the bathware business reported a revenue of 1123crores compared to 1024crores in nine months of FY25 reflecting a year on year growth of 10%. EBITDA stood at 126crores as against 110crores last year registering a growth of 14% with EBITDA margins of 11%. PBT was 43crores compared to 18crores in nine months of FY 25, a year on year increase of 146% while for quarter three FY26 the business reported a revenue of 386crores compared to 338crores in Q3 FY25, representing a year on year growth of 14%.
EBITDA for the quarter stood at 40crores versus 35crores last year up 16% year on year with margins of 10%. PBT for the quarter was 13crores as against 4crores in the corresponding quarter last year. During quarter three, business faced headwinds from global commodity inflation. To manage this, we implemented calibrated price hikes during quarter three and have implemented another price increase in quarter four to fully offset the ongoing rise in raw material costs. As shared in our previous call, we have undertaken Several strategic initiatives in the pathway segment including refining our go to market approach, accelerating premiumization in santiware and faucets, and implementing a zero based budgeting framework to structurally improve margins.
These initiatives are now delivering tangible results reflecting an improved operating performance, better product mix and stronger momentum across key markets. We continue to strengthen engagement with the influencer community through on ground programs for the Plumber network while deepening collaborations with architects and interior designers. These efforts aim to expand market reach, reinforce brand advocacy, and we will continue to invest in brand building as well as comprehensive customer influencer engagement programs. Premiumization remains a key growth lever. The introduction of premium sanitary wear and faucet ranges and new product developments which carry higher average selling prices and stronger margins has positively contributed to both revenue mix and profitability.
Premium product segment constitutes approximately 40% of quarter three revenues. From a channel perspective, retail sales accounted for 76% of revenue while institutional and project sales made up 24%. Demand trends remain steady supported by a stable real estate environment and improving traction in the mid to premium housing segments. We have also initiated focused working capital improvement measures including tighter receivables management, inventory optimization and improved supply chain efficiencies. As a result, working Capital days improved by 5 days from 100 days to 95 days. Turning to consumer appliances business, the quarter 3 FY26 revenue stood at 81 crores, a growth of 21% with EBITDA of 0.58 crores.
For 9 months FY26 revenue was 237 crores with EBITDA of 17 crores at a 7% margin. Strategic portfolio rationalization and focusing on high demand and higher margin categories such as kitchen appliances is now driving an improved product mix and stronger profitability. With that I now hand over to Mr. Rajesh Pajnu to take you through the pipes at the meeting. Over to you Rajesh.
Rajesh Pajnoo — Chief Executive Officer of Pipe Business
Thank you Nirubam. Good evening everyone and welcome to our investors call. It’s a pleasure to be speaking with you today. For nine months FY26 the company reported revenue of 488 crores, EBITDA of 32 crores and PBT of minus 19 crore. In quarter three FY26 our revenue stood at 173 crores with an EBITDA of 12 crores and PBT of negative 5 crores. During the year the industry witnessed significant volatility in resin prices which impacted realizations and channel sentiment. However, after a lengthy period of fluctuations, resin prices seems to have stabilized in quarter four. This is a positive development for the Industry and we expect quarter four to be relatively better supported by improved pricing stability and gradually strengthening demand.
In response to the volatile environment earlier this year, we took several calibrated steps to manage the situation effectively. We strengthened our procurement strategy through tighter inventory controls and shorter pricing cycles to reduce exposure to regional volatility. We implemented timely price adjustments to protect margins while ensuring channel competitiveness. In addition, we aim to improve our product mix by increasing the share of value added segments such as CPVC and SWR and specialized fittings which offer better margin stability. We also intensified engagement with our distribution network to normalize channel inventory and drive secondary sales. Despite these initiatives, the sharp and prolonged correction in wind prices coupled with cautious channel behavior did impact our realization and volumes during the period and consequently our reported performance.
However, these measures helped us mitigate the impact, trigger margins to the extent possible and maintain operational stability. I am pleased to share that Roorkee plant commenced commercial production at the end of January 26th. This facility enhances our cost competitiveness by rationalizing freight costs, improving service levels in North India and increasing our responsiveness to market demand. We plan to ramp up capacity over the next three quarters and once stabilized, we expect to generate incremental annual revenue of approximately 200 crores. With resin prices stabilizing, early signs of channel stock restocking, emerging and infrastructure and housing demand gradually improving, we are beginning to see better momentum in order flows.
As this normalization continues and channel inventories rebuild, we expect working capital levels to improve progressively over the coming quarters. Going forward, our focus remains on disciplined working capital management, deeper penetration in high growth region, expansion of our dealer network and accelerating our share in high margin categories. With improved market conditions and the ramp up of facility, we are confident of driving margin improvement and delivering sustainable growth over the medium term. We are now ready to take your questions. Thank you.
Questions and Answers:
operator
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask question may press star and one on the touchdown telephone. If you wish to remove yourself from question queue, you may press star in two. Participants are requested to use handsets 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 Madhurati from Countercyclical Investments. Please go ahead.
Madhur Rathi
So, thank you for the opportunity, Sir. Home innovation segment has seen a decent. Growth if I compare yoy. But sir, if I remove the products. That we have discontinued, sir, what would be the growth and do we expect. This growth to sustain going forward?
Nirupam Sahay
So there is an impact of approximately 8 to 9 crores of products that have been discontinued which still appears in the base for the previous year. So there is a marginal impact there. But on the growth momentum we are confident now that with our strategy of focusing on a few categories which is basically kitchen appliances, the chimneys, cooktops, hobs, sinks, built in microwaves and ovens, etc. And coolers only through the E Commerce channel and water heaters. So with that very clear strategy to focus on these products, we have a clear path forward to growth both in top line and profitability.
Our kitchen appliances business. Overall we expect a CAGR of 15 to 20% over the coming two to three years in this business. So we expect steady growth going forward in the quarters to come and we’re confident that with this targeted strategy we will get there.
Madhur Rathi
Right. And sir, on the margin front, where can we expect, can we expect a low or low single digit margin or 10 low double digit margin kind of that scenario.
Nirupam Sahay
So for this year we’re at about 7% for the nine months in terms of margin. We believe that very clearly as we scale up the business with the kind of CAGR that we are talking about, we start getting operating leverage. We are targeting a revenue milestone of about 650 to 700 crores by FY31. And as we drive the top line up, we expect significant operating leverage to drive margin expansion. So we will transition to double digit profitability over the space rate.
Madhur Rathi
Got it. And so this segment is asset light, right? We don’t manufacture, we just source and use our distribution network to sell these products. Is that understanding correct?
Nirupam Sahay
Absolutely. So it is outsourced model, deliberately kept asset light. We leverage our distribution, our go to market and marketing spends to build the brand and those will help us to drive growth.
Madhur Rathi
Sir, just a final question from mine sir. Is there due to the Chinese BIS and quality control norms on Chimneys and the one that is expected on Hogs, do we expect to further gain market share? And sir, what would be the market size because of this BIS norms and quality control getting in?
Nirupam Sahay
Yes. So since this was already in play for some time, I think the localization has happened over a period of time for the industry, for us as well as the industry. So the overall impact will not be very large on the industry or on us.
Madhur Rathi
Got it. Sir, can you just help us understand. What is the current volumes that we do?
Nirupam Sahay
We don’t normally share the volume number.
Madhur Rathi
Got it. So that was from my. Sir, thank you so much and all the best.
Nirupam Sahay
Thank you.
operator
Thank you. The next question is from the Line of Parishik Gupta from Fair Value Capital. Please go ahead.
Parikshit Gupta
Thank you very much for the opportunity. My questions are for Rajesh sir. Sir, what was the share of faucet wear in our pipes and fitting segment for the quarter?
Rajesh Pajnoo
Which faucets you are talking about? Hello.
Parikshit Gupta
So can you hear me?
Rajesh Pajnoo
Yeah, you are talking about the share.
Parikshit Gupta
Of faucet wear in the pipes and fitting segment.
Nirupam Sahay
Faucets is part of the bathware business and it is about 43% of our sales in the bathware business.
Parikshit Gupta
Sorry about that mistake. In terms of the, you know, pipes business, in terms of the volume, we have done a lower number as compared with the industry. While competition has grown like a high single digit or early double digits. We have actually come down in terms of our volumes. Can you please articulate why was that?
Rajesh Pajnoo
Yeah, actually we were expecting this from. See if you talk about the competition, they are. They are into this for a long time and they have various manufacturing capacities across the nation. We are just operating with one facility at our Hyderabad plant. We are expecting that in the last quarter we would come up with our facility in Gurki because north we are not able to sell agricultural pipes and SWR pipes because of their fake factor. But what happened is because due to certain statutory obligations and approvals it got delayed. So we were not able to hold on to that market, the north market.
In any case the competition is very high. But we were not able to sustain that as we could not supply those items from Hyderabad. So that was the particular reason that we have not done well in north as far as the operations are concerned. But since now this will not be there because we have the end of last month we have commercialized our road key operations. All approvals are in place and we expect better things to happen in future.
Parikshit Gupta
Understood? Sir, in terms of the PVC prices you already mentioned that it has already bottomed out and we are seeing an upward trend. We see that in the reliance PVC prices as well. But there is I believe an export restriction from the Chinese manufacturers from 1st of April. Do you anticipate that to be significant support to the prices and if that is sustainable for us.
Rajesh Pajnoo
To see from 1st of April, it is just a proposal. There is no government here. There is no thing which has come up for this. It’s a proposal. It may take some more time. I don’t see anything coming up. It looks like that the market, the secondaries has started taking place because there was no material in the secondary and the market has started growing. You see, after. It is after a Long long time that is say July 24th the rates, the PVC resin rates were 94 rupees and they bottomed out to in two years time to 68 rupees.
Now for the first time we are seeing a price hike of almost around 7 and a half rupees in just 15 days time things look positive.
Parikshit Gupta
Okay, so just my final question before I join back the queue. How are the channel inventory levels for the you know, pipes deal and how was January month in terms of the volume flow into the market?
Rajesh Pajnoo
So now things have started picking up. January we have done very very well and we have almost registered even a growth in our value that is around 23% of value. So you can understand that all this destocking which had happened has started taking place. People have started stalking and there is a volume growth, growth of 30% also in general.
Parikshit Gupta
Understood. So this is helpful. I’ll rejoin the queue. Thank you very much.
Rajesh Pajnoo
Thank you.
operator
Thank you. The next question is from the line of female Brahmabad from choice Institutional equities. Please go ahead.
Unidentified Participant
Hello. Yeah, thank you for this opportunity. So I have some busy questions so I want to know is there any capacity expansion plan in the shorter term other than the Roorkee which already we have started in January so and how we will strategically manage this new supply considering the current market and competition and all.
Rajesh Pajnoo
This is the question to pipes by its division Sir.
Unidentified Participant
Yeah, pipes.
Rajesh Pajnoo
So yeah, no we don’t have any. Yeah we don’t have any plans of any expansions Further the capex which has been incurred at Roorkee is already over. We have commissioned the plant we expect the north market to pick up from this facility which has already started taking place in future in the near two, three years. We don’t have any plans of putting up any further capacities we believe as such we have a huge capacity in Hyderabad and we have installed a capacity of 12,500 metric tons in good key and we can ramp it up so we don’t see any reason why we should go for some new facilities and including incoming capex.
Unidentified Participant
Okay, okay. And regarding the piping segment itself the volume decline on a Yoyowa and QMQ during the quarter to 10,327 MT. So what is the management guidance or outlook on the same for upcoming period? So do we have any guidance or any, any sustainable level for the.
Rajesh Pajnoo
Yes, the way we are, we are seeing it now and the way things are happening we are just. We can give you a guideline of around 12 to 15% of volume growth in future.
Unidentified Participant
Okay, and what is the sustainable EBITDA margin for our consumer appliances? Because it’s too much volatile from last two to three quarters. So what, what, what is the government, what is the like guidance on this like sustainable margin for consumer appliances?
Nirupam Sahay
So in terms of the strategy that we adopted to focus on a few categories, if I look at the largest category that we will play in going forward, it’s kitchen appliances where we have a significant market share for chimneys already and are focusing on high growth in the other categories as well of cooktops, hobs, things, etc. The gross margins for the kitchen appliances business is in the 40s and we believe that as we grow that business, I talked about a CAGR of 15% to 20% year on year for the next few years, we get operating leverage there as well.
So we believe that with that mix now in a relatively high margin category, we can sustain profitability at the level that we must be hit for the nine months this year. And we look over a period of time to getting to double digits over the next few years.
Unidentified Participant
Okay. Okay. And the last question I had read somewhere like the company completed the sale of its manufacturing assets in Telangana to ariston for almost 115 crore on the 11th of December something. So can you, can you share some color on this and the impact of this in our on our financials.
Sandeep Sikka
So this is not a part of hhil. This factory sale was part of our joint venture with Group A Atlantic. We have set up a water heater factory there. But as you can see from the results initially we could not load the factory the way we anticipated the market would behave. So a joint decision was taken to dispose of the manufacturing operations and which was successfully done. And we use that money to pay off the entire debt of HPL in December. Going forward this will be a trading module and as an opportunity exists, you know, we can source from vendors from the manufacturing facility.
We can, we have sold. But definitely the whole idea of doing all these activities to have a healthy bottom line. You know, if you see, you know, number of initiatives we have done over the last 12 to 18 months, you know, to take step by step improvement in improving the bottom line as well as maintaining the growth at the same time. So these are the steps towards that direction.
Unidentified Participant
Okay. Noted, noted. Thanks. Thanks for the. Thanks for your answer. This is all from my side.
operator
Thank you. A reminder to all the participants, you may press star in one to ask question. The next question is from the line of Ronak from Earth Capital Market Ltd. Please go ahead.
Unidentified Participant
Thank you. For the opportunity. Sir. Sir, I just wanted to know what is the amount of inventory loss in pipe segment.
Rajesh Pajnoo
Sir, in this whole year it’s 4. Crore rupees
Unidentified Participant
for current quarter. And what is for?
Rajesh Pajnoo
No for the whole. For the whole year.
Unidentified Participant
For a whole year. And for the multi.
Rajesh Pajnoo
If you see our inventory level it’s all. It’s around 1.2 crores for the whole year we have maintained very less inventory. So we are managing with various inventories this year.
Unidentified Participant
Okay and so my next question is on kitten segment part. Earlier you mentioned that you will you were targeting of quarterly run rate of 100 crore by quarter four. So when we can expect that run rate.
Nirupam Sahay
So in quarter four we’ll be close to that number and by quarter one of next year we will hit that number. So we’ll get 90 plus in quarter four is what we are looking at and hitting the 100 number in the next quarter. So on a run rate basis we’ll. We should get to 100 by early next year or the next this financial year.
Unidentified Participant
Okay sir. Okay. And sir, on in pipe segment on gel even side like are we seeing any improvement in jail driven mission?
Rajesh Pajnoo
Please come back again. I couldn’t hear Sir.
Unidentified Participant
Sir, on J1 mission size I just wanted to know that we are seeing any, we are seeing any improvement.
Rajesh Pajnoo
We are not in jail driven. The specified product mainly is high density polyethylene and we are not into that segment at all.
Unidentified Participant
Okay sir. Got it. Thanks.
operator
Thank you. The next question is from the line of Rahir from Sapphire Capital. Please go ahead.
Unidentified Participant
Hi sir, good evening. Can you hear me?
Nirupam Sahay
Yes.
Unidentified Participant
So the way you explained, you know for the consumer product business that your focus is mainly on the higher margin and kitchen appliances and all. Similarly what is your plan for the bathware segment? What kind of growth do you see there and what products you’re focusing on and what kind of margins are sustainable in that segment.
Nirupam Sahay
So in this quarter in quarter three we grew at 14.3% so it was a healthy double digit growth in quarter three. We expect to continue that momentum in quarter four of this financial year. And going forward the ambition is to stay in the mid teens in terms of growth in the bathware business and the profitability. So what we are working on is a couple of things to improve profitability further. One is really focusing on the product mix. So I mentioned that all the new products that we are launching are higher ASP average selling price as well as higher margin than the existing range that we have.
So we focus a lot on new products at Higher margins. We’re also focused on improving productivity and efficiency at our plants. So the two sand repair plants and, and our faucet plant and we believe that that can also give us a good impact in terms of profitability. So we are looking at both top line increase, that’s obviously one primary driver. The second is working systematically on improving gross margin through mix and cogs improvement and then looking at all levers in terms of cost below gross margin. So I think all actions in place already results starting to show both in terms of top line growth.
We’ve all had four months in a row of double digit growth. So I think it’s good to get consistency in terms of double digit growth as well. And we believe going forward that all the steps we’re taking will lead to healthy top line growth as well as.
Unidentified Participant
Can you give a certain EBITDA margin range for this segment? Particularly like where it can, you know, sustain and then grow ahead.
Nirupam Sahay
So what we’re Targeting is a 3 to 4% improvement in the EBITDA margin over the next 18 to 24 months.
Unidentified Participant
Okay. And the 90 to 100 crore hundred was you mentioned for the pipeline, correct?
Nirupam Sahay
No, that was for the consumer appliances.
Unidentified Participant
Okay. Okay, I’ll get back. Thank you.
Nirupam Sahay
Thank you.
operator
Thank you. The next question is from the line of Jasmine from VT Capital. Please go ahead.
Jasmine
Hi. My questions were answered. Thank you so much.
operator
Thank you. The next question is from the line of Yash Mantu, an individual investor. Please go ahead.
Unidentified Participant
Hi, good evening sir. Thank you for taking my question. I have a couple of questions regarding the bathware segment. Could you please tell me the capacity utilization for both sanitary as well as faucet ware?
Nirupam Sahay
Yeah. So in quarter three we had a capacity utilization of over 80% in our sanitary ware plant and over 90% in our faucet plant.
Unidentified Participant
Okay sir. And if I look at the, the revenue growth for the bathware segment, how much would you say is it an effect of outsourcing? So if you could maybe give me the outsourcing versus manufacturer number for maybe the segment segment wise or the total bathware.
Nirupam Sahay
Yes. So in sanitary wear it’s 70% in house manufacturing and roughly 30% which is outsourced. In the case of faucets it’s 50 odd percent. So 50, 50 in in house versus credit.
Unidentified Participant
Okay sir, thank you so much. And sir, a couple of other questions as well. So now that we have grown at about 14% for the quarter, has the discount scenario improved that we’re not giving as much discount to our dealers or is that still the same, yes.
Nirupam Sahay
The discounts have not changed majorly over the course of the last couple of years. We also are very careful that we take a look at what is happening in the market as well. So we are not out of whack with what is happening in the market. We put in the inputs which will help us to drive both top line growth as well as profitability improvements. So whether it’s inbuilt discounts or cns, all the schemes are basically targeted at top line and bottom line growth. So there’s been no substantial change either upwards or downwards in terms of discounts.
Unidentified Participant
Okay, so just one last question. So over the years we have reduced our dependence from the Chinese imports. Has there been any important. Sorry. Has there been any change related to that or is it still in that 7 to 8% range?
Nirupam Sahay
Yeah, it’s probably a little less than that now. We’ve consciously over the last couple of years tried to indigenize wherever we can multiple benefits of that of course in terms of flexibility, in terms of time for supply, etc. So now it could be in the very low single digits from China.
Unidentified Participant
Okay, sir, so would you say that is the reason for the decrease in net working capital days for the segment.
Nirupam Sahay
That’S part of the reason for the inventory reduction? Yes.
Unidentified Participant
Okay. Okay. Thank you so much sir. Thank you.
Nirupam Sahay
Thank you.
operator
Thank you. The next question is from the line of Bharat, an individual investor. Please go ahead.
Unidentified Participant
Hello. Thanks for the opportunity. Looking at the current raw material environment, do you plan to getting in long term contracts with suppliers in bathware segment?
Nirupam Sahay
So given our experience over the past few years and the volatility that has been there in recent times, we have contracts with them but we don’t necessarily believe that long term contracts will benefit majorly.
Unidentified Participant
Next question would be, could you throw some light on how you are going to focus on increasing distribution network? As you mentioned that.
Nirupam Sahay
Yeah. So there are a couple of strategies that we are following in terms of go to market. One is increasing a number of brand stores. I’m talking right now about bathware. In case you want consumer plans. I can cover that as well. But in bathware we’re basically focusing on brand stores. So roughly one third of our sale comes through our brand stores across the country. We have 500 odd. So really making sure that we set up brand stores in Tier 1, Tier 2 and in some cases even and extract as much as we can. It’s obviously great for the brand.
It’s a good customer experience. If they get with hindwear and we obviously get Sales out of that and normally we sell the higher priced products on the brand stores. So there are multiple advantages. The second is in terms of increasing our penetration in Tier 1 and Tier 2 and Tier 3 towns in terms of the number of dealers that we have. So we’ve been very conscious of making sure that we look at the quality of distributors and dealers that we have rather than just looking at numbers. The numbers can be misleading. So we are targeting growth from what we call weighted dealers.
So the more important dealers in each market really making sure that we increase counter share at each one of these weighted dealers that we identified across the country. So setting up brand stores, focus on weighted dealers and increasing the number of dealers that we have in tier one, tier two and tier three. I think it’s a three pronged strategy that we’re following.
Unidentified Participant
Oh, that answers my question. Thank you.
Nirupam Sahay
Thank you.
operator
Thank you. A reminder to all the participants, you may press Star in one to ask question. The next question is from the line of Kabir and individual investor. Please go ahead.
Unidentified Participant
Thank you sir for the opportunity. My first question is the 4.65 crore one time charge for the labor code. Is this complete or should we expect the more provisions in the future?
Sandeep Sikka
So this is based on the fair assessment as we could do on the basis the current provisions which are there. There are still more regulations as we understand which regulation and some benchmarks which government may release. So anything additional, you know, then we’ll have to take at that particular time.
Unidentified Participant
Okay, my next question is in the building products, how are you differentiating from the other competitor like Sarah Kazari and Somani? Are you gaining the market share or just growing with the industry?
Nirupam Sahay
So I think in this financial year and particularly in the last couple of quarters, we are growing ahead of the market. So we are gaining market share. The strategy that we’re following is I talked about about new product developments and launching premium faucets and Santi wear ranges. So the focus has really been on creating differentiated products across all of our brands. So we have Hindwear which is mass, we have Hindwear, Italian collection which is MAF premium and we have Kio which is premium. So across all three brands that we have, we are making sure that we have differentiated products as far as possible.
So big focus in terms of design, aesthetics, performance. So that is really helping us to differentiate in the market and helping us to grow ahead of the market. The other thing that we really focused a lot on is customer service and we believe that that is actually a big differentiator. So we now have invested. So for example, consumers can reach out to us on WhatsApp in nine Indian languages. So we are the first in the industry to offer it not just in Hindi and English, but consumers can actually interact with us in nine Indian languages now.
So we’re using automation, we’re using technology and making sure that the ability of consumers to reach out to us, whether it’s website, whether it’s WhatsApp, etc. Becomes simpler and simpler and the interaction is better and better. And we are measuring that constantly through nps. So we take the net promoter score from every consumer who interacts with us. I’m happy to say that the net promoter score is high and has been increasing over the lasting on that as a big differentiator as well.
Unidentified Participant
Okay, thank you. That’s answered my question.
Nirupam Sahay
Thank you.
operator
Thank you. The next question is from the line of Akshay from Karana Robicoa Mutual fund. Please go ahead.
Akshay Chheda
Yeah, so thank you for the opportunity. Two questions. So first is on this plastic piping. So you hinted at improved.
operator
I just requested to speak a little louder.
Akshay Chheda
Yeah. Is it, is it audible now?
operator
Yes, sir.
Rajesh Pajnoo
Now it is. Fine.
Akshay Chheda
Yeah. So sir, first question is on the plastic piping piece. So you mentioned that a better outlook for the Q4. So is it entirely to do with the restocking or even the secondary sales are equally strong? Basically just wanted to understand is the end demand also improving or it will be largely driven by restocking? So that was only plastic piping piece. And so second question on the bathur side, obviously you have posted a healthy number this time. So sir, again here also is it that in anticipation of price hike and hence there was an element of restocking or again, even here the end demand per se is improving or is it that they completed initiatives that you spoke about and hence better numbers that we could show? Yeah, these are the two question.
Thank you.
Rajesh Pajnoo
Okay, we’ll answer first the pipes question. Yes, definitely. There looks like both things are happening parallelly. The restocking is taking place and we are also seeing a traction from the market. There are inquiries. The projects which have got held up for a long time has started taking off and we have also started now receiving continuous BOQs from builders and other projects. So we are seeing both the things happening parallel. Looks very positive.
Nirupam Sahay
Yeah. On bathware, what we’ve. Sorry, could you repeat the bathware question please?
Akshay Chheda
In the bathware also the same question. I mean there is anticipation of price hike. Right? So is it that there was some element of upstocking before the price hike, typically that happens. So is that the reason hence the numbers were good or per say the end demand is also improving and hence we are looking at a strong numbers going ahead.
Nirupam Sahay
So there are combination of a few things which have happened.
Akshay Chheda
Okay.
Nirupam Sahay
I think one is that demand sentiment in general has improved. Okay. I won’t say it’s brilliant at this point of time, but it definitely improved quarter three versus quarter quarter one and quarter two. So that’s obviously led to a little bit of an upside in terms of consumer sentiment. Having said that, I think a lot of the actions that we’ve taken have led to this kind of growth. I’ve talked about the go to market. The other thing which I talked in earlier investor calls also was that we are focusing very heavily on markets where we have a relatively low market share.
So putting in focused sales and marketing efforts to grow our market share in areas where we have relatively low market share that is paying us good dividends and a lot of the markets where over the last few years we had relatively low market share, we are gaining market share. So that is helping then the other is in terms of the increase in the average selling price through the new products that we are selling in the market, that is also helping in terms of growth. So I think a lot of the strategic action that we have taken over the last few quarters are paying off in terms of of growth on pricing particularly.
We had taken a price increase in November on faucets and a little bit in sanitary wear. The brass prices, as you probably know, have really gone up over the last couple of weeks and months. So in the month of January now across the industry pretty much everyone’s taken a price increase of what, 14 to 16% in faucets and about 4, 5% in insanity wear. So there’s a minor uptick because of stocking before the price increase, but that’s not the primary factor driving the growth.
Akshay Chheda
And so the pricing action that we have taken, is it sufficient to counter the RM inflation or some more will be needed, assuming that the prices stay here.
Nirupam Sahay
So at this point of time, the price increase that we’ve taken, so we’ve taken about 15 to 17% in faucets and we’ve taken about 5 to 6% in. So we believe that that’s enough to cover whatever raw material impact there is as of now, if it goes up substantially further, then we’ll have to look at another price increase. But at this point of time we don’t believe in the short term we will need to do that. But we’ll keep an eye out.
Akshay Chheda
Got it. This was very helpful, sir. Thank you.
Nirupam Sahay
Thank you.
operator
Thank you. The next question is from the line of Yash, an individual investor. Please go ahead.
Unidentified Participant
No sir, you have already answered all my questions. Thank you so much.
operator
Thank you. A reminder to all the participants. You may press star in one to ask question. The next question is from the line of Alish Gopani from Gopani securities and Investment Limited. Please go ahead.
Unidentified Participant
Good evening sir. Thank you for taking my question. I wanted to ask the what is the net debt as on 31st December and what will be the debt allocation for bathware business and that consumer business that we are demerging the company.
Sandeep Sikka
So the total debt as on this is a bank debt which I’m Talking is around 740 crores and bathware it is around 265 and pipes is around 450 and balance is for the hindwear home.
Unidentified Participant
Thank you sir.
operator
Thank you. To ask questions. If there are no further questions from the participants I would hand the conference over to the management for the closing comments. Over to you.
Sandeep Sikka
Thank you everybody who joined the day. Really appreciate all the questions. There is a step by step improvement if you see over the last four, four or five quarters which we are demonstrating and still a good way to go. And we’re just trying to target, you know, you know, how we maximize our growth. How to, you know, bring back the profitability numbers who are there in the. So it’s a keep walking stage right now and we’ll very soon the trajectory as. Thanks again for joining us.
operator
Thank you on behalf of College Capital Private Limited. That concludes this conference. Thank you for joining us. And you may now disconnect your lines. Thank you.