Note: This is a preliminary transcript and may contain inaccuracies. It will be updated with a final, fully-reviewed version soon.
Huhtamaki India Ltd (NSE: HUHTAMAKI) Q4 2026 Earnings Call dated May. 13, 2026
Corporate Participants:
Kamal Taneja — Managing Director
Amit Gupta — Chief Financial Officer
Analysts:
Mohit Mishra — Analyst
Aryan Vidaria — Analyst
Unidentified Participant
Vipul Shah — Analyst
Presentation:
Operator
Ladies and gentlemen, Kathay. And welcome to the Hota Market India Limited Q1 CY26 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 the conference call, please signal an operator by pressing start and zero on your touchstone phone. I now hand the conference over to Mr. Mohit Mishra from ICSA Securities Limited.
Thank you. And over to you, Mohit.
Mohit Mishra — Analyst
Thank you so much. Good afternoon everyone. Thank you for joining on Huttamaki India Limited Q1 CY26 results conference call. We have India management on this call represented by Mr. Kamal Taneja, Managing Director and Mr. Amit Gupta, CFO. I would now like to invite Kamal sir to initiate with opening remarks post which we will have a Q and A session. Thank you. And over to you sir.
Kamal Taneja — Managing Director
Thank you Mohit. And thank you Rutuja. Welcome everyone. Thank you for joining the call today. I hope you had time to go through the financials yesterday. So I’ll along with Amit give you some flavor of, you know, how management is doing different things before actually I get into the call itself, couple of disclaimer statements which I think we should talk about. Number one, you know, we may be talking about few things or share some information with you which could be deemed as forward looking.
But the intention is to share with you as openly as possible our strategy and initiatives. And they should not be taken as any advice on any investment you need to do in any securities or solicit any investment from you. So once again thank you for joining us before actually I went, I go into the main presentation. Let me invite Amit Gupta because he’s my new colleague who’s recently joined as cfo. Maybe he can introduce himself to you.
Amit Gupta — Chief Financial Officer
Yeah. Hello everyone and good afternoon to everyone. I actually joined as the CFO of the company last month. So almost like completing a month in this particular role. I had joined the company, you know, relocating back from Singapore to India. My last assignment was with Procter and Gamble Health Limited in the Indian healthcare vertical as the for the Regional Finance Leader for Asia, Middle east and Africa. I started my career primarily in FMCG and healthcare. Worked with itc, then Kulvit Pharmalev, Sanofi and the Procter and YAML Health Limited first in India as the CFO and Executive Director on the board of Procter and Yambal Health Ltd.
Before moving to Singapore. I look forward to the engagement and hopefully we’ll have some good questions coming our way. Thank you.
Kamal Taneja — Managing Director
Thank you Amit, very happy to have you in the team. So I’m going to start with the content of the presentation. I hope you had time to go through that but I’ll give you a very high level information on what Amit will actually go more details into the financials. So at the very top line we actually improved slightly on our sales versus quarter last year. When I say slightly it’s about 10bps. However we improved our margin significantly. Now we’ve been saying that for last few quarters that our focus has been on the margin improvement because what we are doing in last few quarters is we’ve been selective in participation in the business that we want to operate in.
We are going after higher value business which is also consistent with our strategy and our strength in terms of the innovation leader in the industry. We really think that we are on a solid ground now and gives us a lot of momentum for growth in future. So just coming back to the results, we had kind of sales which was stable but we improved our margins which were supported by sales mix like I mentioned earlier and also operational efficiency. We’ve been actually doing a lot of work in the last couple of years, you know, in optimization, improving efficiency in the assets.
We have, you know, bringing a lot of expertise within India and overseas as well. And in this quarter we had a few one offs. Firstly we had higher interest income but they were also offset by some non recurring charges which we’ve disclosed in the market before. There’s also a huge charge in Q1 which relates to the depreciation which is related to prior year and Amit will talk you through that. So if I can summarize, net sales up by 10bps. EBITDA improved by 25% 24.8% quarter on like year on year first quarter last year versus this year quarter one EBIT went up by 4% but that’s also because of the depreciation that I spoke to you about earlier.
PBT similarly increased by 2.9% and we were slightly lower on EPS. Now all these things we are doing, like I said, we’ve been consistent in our approach. We are also consistent in our approach on global strategy which we are very focused on which is mainly on profitable growth, disciplined capital allocation and much stronger accountability. So with those opening notes I’m going to hand over to Amit who is going to take you through the financials.
Amit Gupta — Chief Financial Officer
Yeah, thanks Kamal. So actually the financials for the quarter actually relate the strategy that Kamal just laid out on the top line. When we are looking at the top line construct, we are actually improving by 10 basis points versus last year for the same quarter. And that’s again driven by our focus with respect to growth in the selected set of customers and the portfolio choices that we are making with respect to the categories and the customer pool that we are going to service in future. So it’s consistent with our overall strategy that is reflecting in the top line.
And as Kamal mentioned, from a standpoint of EBITDA margins, we are growing by 25 percentage points. This is by the way, not a standalone improvement in one particular quarter, but we are seeing a sequential growth in our profitability. And those of you who would have followed our agm, you would have seen that our profitability numbers have been consistently going up, which actually demonstrates the effective way our strategies is being played. And that’s flowing through our financials. From an EBIT perspective, we have a one off.
There’s about 88 million INR charge in this particular quarter which is pertaining to the prior two years we had. Although this was not material taking into consideration the maturity thresholds that we had for the last two years, you know, 2024 and 2025. But we chose to reflect it in the in the current quarter itself because we don’t see this particular charge to be breaching our maturity threshold for the current financial year also. So fundamentally we had this particular charge which is reflective of the lower depreciation charge in the prior two years primarily because of the fact that there has been an error which led to the depreciation calculation on WDV instead of the SLM method which is being done with this particular charge.
We have corrected the books of accounts both from a P and L and the balance sheet standpoint. And all the reflections in the P and L are coming correct starting from January 2026. So our EBIT margins because of this has actually improved by only 4%. If I exclude the exceptional item of depreciation, it has actually gone up by 27.8 which is consistent with the growth that we have seen in the ebitda. However, this particular charge is actually bringing the ebit margins down to 4%. Our overall profit and loss for the period is actually about 256 crore which is almost 2% down versus the same quarter last year.
But again this has the implication with respect to the depreciation charge that I just mentioned. If I have to exclude that particular charge, the profit before the prior year postings is actually going up by almost 23.1. So all in all if I have to summarize from a financial result standpoint, our strategy in play is reflecting in the numbers with the substantial growth in profitability excluding the one time corrections of the prior years that we have taken and the top line which is holding good in spite of the competition that we see moving on to the trends slide and we actually demonstrated EBIT improvement, ebit of about 386 crore again after taking into consideration the 88 million hit.
But if I look at the sequential trends of our EBIT as a EBIT as a percentage to sales and I take this exceptional prior period item out of the chart, then we are at 8% EBIT for the quarter which is in line with the EBIT that we have demonstrated in the quarter four last year and almost 1.7% or 170 basis point higher versus the quarter one of last year. So I’ll stop at this end and maybe you guys had the chance to look through our annual reports and the financial release and if you have any questions, happy to address in the later part.
Back to you Kamal.
Kamal Taneja — Managing Director
Thank you Amit. I think just to add on what Amit said. So you see in terms of our ways of working, we are always declaring results based on ethical solutions and make sure the integrity is intact and the transparency to the market as well. So I think the other thing I want to note is Amit alluded to is in terms of the return on sales or EBIT percent which was at 8% which is where we were in good old days. So that’s coming back to the comment I made earlier where we said that we think that we are in a pretty solid situation at the moment and this gives us a lot of positive momentum for growth in future.
Actually there’s one more thing which I’m very excited about which is on sustainability. So I want to share a few good stories that we have going similar to what I mentioned in the last quarter as well. So when we look at our climate ambition and sustainability we look at it from a four pillar point of view. So first pillar for us is people, right? Now when we talk about people we invariably talk about safety and well being. So actually I’m happy to report that we had substantial significant improvement in safety incidents.
Actually our total recordable incidents year on year improved by 67% which is great achievement. And not just in terms of numbers but behaviorally I see a lot of improvement in our plants, in our offices where people are taking time, thinking and following the Processes, the behavior patterns and the initiatives. We have to make sure that we reduce risk to our people. The second pillar is on what we call as climate pillars. So this is about what we do for the environment. So I’m also happy to report that we actually engaged in a formal agreement for developing a solar captive electricity project in our Kapoli plant.
So that’s been signed, it’s been executed now and we expect to go live in next few months. In second half we will start reaping benefits of that as well. The third pillar we call as nature pillar which is focused on water again, Kapoli, Rudrapur, Silvasa, they continue to develop a zero liquid discharge status and we are looking at eliminating waste and liquid waste in other plants as well. The last pillar which is what we call as product pillar again huge progress there and our focus there is improving the solvent consumption.
And I’m happy to report also that we have done a lot of work on that. We install a lot of equipment, we spend some capital in solvent cooling for example and all our plants right now are reducing solvent as we speak and very excited about that. The other thing we are also doing on the product pillar is that actually we are adopting increasingly more PCR or post consumer recycled content in our products which is also in line with our objective to meet long term sustainability goals and also being ahead of the regulation which we see coming up in India in future.
I think in terms of reporting, I think you’ve seen our calendar. Our next reporting is going to be end of July and we’ll talk to you a bit more on our results in second quarter. That’s all I wanted to share. Mohit, if you want to maybe ask people for questions.
Operator
Shall we begin with the question and answer session?
Kamal Taneja — Managing Director
Yes please.
Questions and Answers:
Operator
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on the touchtone telephone. If you wish to remove yourself from the question queue you may press star and 2. Participants are requested to use answers while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Aryan Vidaria from MCVITUS Investments. Please go ahead.
Aryan Vidaria
Hi, good afternoon. Thanks for the opportunity. Actually I just wanted to understand. You know I have two questions. Number one, I just wanted to understand a bit more on the raw material situation post one. Do you know what are. What has been the effect on the cost of the raw material? Are we getting any availability? So you know what is the situation on Ground.
Kamal Taneja
Yep. And you had a second question also? Yeah,
Aryan Vidaria
Sure, I can ask that second. I just wanted to get a better understanding on the demand and you know, actually post war which segments are we seeing demand from and how is, you know, the cost increase or the cost situation affecting the demand?
Kamal Taneja
Yeah, sure. So this is Kamal. Thank you, thank you for the question Aryan. I’m going to start and Amit, feel free to jump in. Your first question was on the raw material situation. So firstly the situation is changing every day as you can imagine due to the political situation there. What we have seen in last, I think it started like end of March. We see prices going up significantly and then we see kind of a bit of let’s say tapering and we are even seeing sometimes the prices are changing again negatively and positively.
I think overall we have probably low to medium double digit raw material impact on our products overall. The good news there is firstly there’s no issue with availability. So you know, being a large multinational company, we have resources, we have the procurement power I guess to source these materials from different parts of the world. So availability is not an issue. Sometimes there’s a delay in shipments because especially if they’re coming from overseas. And I’m also happy to report that we’ve been very successful actually.
Our team did an excellent job. Procurement, supply chain, sales team. We did an excellent job where we passed on most of these costs to our customers. So in terms of impact to us, probably we don’t feel much impact in terms of margins etc. But I think we would know more as we close second quarter because that’s where we will start the most impact. I think your second question was on demand. How is the demand growing or reducing because of this? So firstly, you know, as you can imagine a lot of our customers were in kind of a panic situation.
So they came to us and asked for more volume and then they realized that the volume was not there. So it’s kind of stabilizing at the moment. So we don’t see any significant change because of this situation. But we do see a demand growing as usual like we see in every quarter in the industry. Like I think you must be following up with other FMCG customers we have when they declare their results, usually you know, 6, 5 to 7% is the increase every year. Some customers increase more, some customers do less.
For example, the large customers that we play in, usually they are less, maybe 2 to 3 to 5%. And then you see regional customers, smaller customers who are growing much faster because they are coming from A much smaller base. Anything to add, Amit, on that? No, Kamal, I think you covered it well. Thank you. Hope that answers your question, Arit?
Aryan Vidaria
Sure. If I can just squeeze in one more question please. So just, you know, on specifically our materials in terms of, you know, packaging, film, signs, paper, etc. So the cost increase, how much percentage cost increase are you seeing in these products? Paper and packaging films?
Kamal Taneja
Yeah, I wish I could tell you Aryan, but you know, it’s kind of confidential because you know it’s competitive in nature. So I would not like to disclose that. But I think, I think we do a pretty good job being a global company on getting the best material and availability in the market.
Aryan Vidaria
Understood? Sure. Yeah. Thank you. And all the best.
Kamal Taneja
Thank you.
Operator
Thank you. The next question is from the line of Vishnu from Icici Prudential Mutual Fund. Please go ahead.
Unidentified Participant
Yeah, hello. So I’ll give you the annual report. It’s mentioned in Indian flexible packaging industry is going at a 1212, 10 to 12%. And if your volumes are declining or it is staying stable. Staying stable. Do you mean that you’re seeing market share, other players or unorganized players?
Kamal Taneja
Look, thank you for asking. Question Vishnu. I think again this is consistent with what we have been saying. The market, I don’t know, is 10%, 12%. I think it depends on which segment you look at, etc. Like I mentioned, they are kind of two different segments that we see in the market. So there are large multinationals, for example Unilever or Mondelez or Nestle. And then there are smaller, not so small Indian players but also smaller Indian players who are operating more into regional markets, smaller markets.
So they may increase or grow faster than the others. Right, because like I said, they’re coming from a smaller base and probably if you accumulate all this volume it looks much bigger than, than the growth that the multinational customers see. Now what we’ve been saying all these, you know, at least for the last couple of years that our focus has been very selective. You know, we are, let’s say sweet spot or our strength is innovation, you know, premiumization, sustainability. Where unfortunately we only have select customers who are interested in those value proposals with them.
I think we are growing pretty okay now selectively, if we do not participate in other segments which are not aligned with our value proposition. So sometimes it may seem that we are not growing with them. So I think like I said earlier, I’m pretty happy with where we are today. I feel we are much more stronger now than we were before which gives us actually good ticket to go from. And we’re doing a lot of good work with our customers, especially on the sustainability front. And we hope to grow in future in line with market expectations.
Amit Gupta
Yeah, maybe just to add on to this, when you’re looking at the market per se, the definition of the packaging market where you actually included paper also, you refer to paper also, it’s not comparable to the segment that we play in. So there is no lateral equation that you can draw from the overall market growth to what is being reflected on our side. And hence that correlation is a bit inconsistent. But I think Kamal covered well the strategy that we are playing on and the results of that strategy are clearly visible and consistently visible not only in this quarter but even in the last year.
Unidentified Participant
Okay. And the other income has also doubled versus last year. Can you provide any split for that? What is driving that growth?
Amit Gupta
Yeah, so our other income in this particular quarter actually includes, you know, an interest on the income tax refund which we have received in this particular quarter. Plus there is an increase in the FD interest. So these are the two big components which is leading to a higher other income. Plus we have FX gain which is actually from the exports that we are having. With the rupee actually getting weaker, we are having these gains which are flowing in and reflected in our other income. So these are the broad three components which is driving our other income pool.
Kamal Taneja
And Amit, however, we also have several one offs which actually netted off that. So it’s not that we are improving our margin just because of.
Unidentified Participant
Okay, understood. Thank you.
Operator
Thank you. The next question is from the line of Rajkumar Vaidanathan from RK Invest. Please go ahead.
Mohit Mishra
Yeah, good afternoon. Thanks for the opportunity. Kamal. The question is, you know, I think you guys have fixed the margins, which is good to know. But just want to know when do we see this dynamic growth being corrected? How long do you think that will. Yeah.
Kamal Taneja
Thank you. Rajkumar. We get asked this question. So this is my second quarterly call and I believe you know that I’m only on the job for the last three months or so. Not even three months yet. Oh, it is three months actually. Sorry. Yeah, it feels like a long time ago, but I think. I think it’s a very valid question. We get asked that a few times in the past as well. Like I said, I can’t disclose the exact numbers and hopefully you see that in future. But I can tell you we are laser focused on profitable growth which is also our corporate strategy.
And that is the reason we are here. And we are forming a very Strong team. We are getting closer to customers, we are trying to understand their needs, we are innovating, etc, etc and, and hopefully will be in near future.
Mohit Mishra
Okay, but with this inflation on this raw material happening, so do you think that will at least help us in terms of the top line? Because you said the margin should be protected
Kamal Taneja
Because they’ll be passed through to the customers. Like I said, you know, there’ll be no impact or virtually no impact on our margin because of that. So top line definitely you would see just virtue of that, barring any market changes, et cetera, at least that one we would see. But we are trying to grow on top of that as well.
Mohit Mishra
And any upside on the rupee depreciation going forward.
Amit Gupta
Fundamentally, the way we are constructed, we have a good representation of the exports in our overall business. So the rupee fluctuations actually works both ways. And when you look at monthly to month and quarter to quarter, while from a last year standpoint the rupee is devaluating, but from a quarter on quarter basis there are a lot of swings happening. So we continue to expect both helps and hurts from the FX movements because we have a good chunk of our inputs from raw materials, although our net position is still positive on the fx.
But you know, we cannot comment with respect to the future implication of the fx. But yes, it will be in line with how the market and the rupee behaves versus the global currencies.
Mohit Mishra
Okay, and just couple of questions, housekeeping questions for the cfo. First one is can you quantify what is the amount of interest on the income tax refund that you mentioned?
Amit Gupta
Yeah, so it’s, it’s about six and a half crores that we have received. Yeah. Okay.
Mohit Mishra
Okay. And the next question is there is an other expense. There is a jump quarter on quarter from 95 crores to 106 crores. So what is causing this moment?
Amit Gupta
Yeah, so fundamentally I don’t think so. The jump is substantial. You know, from the baseline of 95 to this is not a major jump. Looking at it from a short term perspective of a quarter may not be relevant. And we are not looking at a substantial increase in our operating cost. We are actually on a percentage to sales. We are actually coming, our expenses are coming down. So I would not like to comment on the individual elements contributing to it. But what I can tell you is that our expense ratios are in line with what has been in the past and in fact are decreasing going forward.
And our profitability numbers are actually showing the way that we have been able to drive profitability with the, with us a flat amount of sales which is again a reflection of the efficiencies that we have in the operations.
Mohit Mishra
The reason why I asked is Kamal mentioned that there are some one off non recurring expenses also in the quarter. So that is the reason where is that item situation?
Amit Gupta
Yeah. So the one off non recurring expenses as we were talking about are basically with respect to some of the provisions, reversals in the base that we have as well as the interest income that that was there. We have depreciation of about 88 million INR for the, for the prior 2 periods that we have that we have actually charged to the P and L. So some of these, the biggest item on all of These is the 88 billion INR depreciation that has been charged.
Kamal Taneja
There is also a property charge here. So.
Amit Gupta
Okay.
Mohit Mishra
Okay. Yeah. Thank you so much. All the best.
Operator
Thank you. The next question is from the line of Vipul Shah from Triple Weave Equity. Please go ahead.
Vipul Shah
Yeah, hi. Am I audible?
Amit Gupta
Yes.
Vipul Shah
Yeah. Thanks for the opportunity. So Kamala had you know, a couple of questions for you. You alluded earlier all that you know, post the war end of March and Now you’ve seen 10 to sort of hide or I would say double digit inflation in the raw material cost. Just wanted to understand, you know, how fast is, you know, the transmission of these RM cost to our customers because I believe there will be a pass through arrangement and a lot of, a lot of, you know, products that have been force measure declared.
I believe that you said that, you know, there is ample availability. So I assume there will not be any force measure at least on you know, the raw material basket which we have. But is the transmission of, you know, these cost pretty swift or is there a lag which means that at least for the next quarter or the short term we will be have, you know, facing to absorb these margins. Second question, you know, I had was that the annual report mentioned that you know, the hundred crores which we were supposed to pay back our parents in February 26 has been amended to June 27.
I just wanted to understand the reason for this. You know, because it inflates the balance. I understand there is no liquidity risk but it just inflates the balance sheet. And you know, from a ROC perspective also there is, you know, it brings down that ratio.
Kamal Taneja
Yes. So I think we’ll let Amit answer you on the hundred crores first. Then I’ll come back to the raw material.
Amit Gupta
Yeah, so hi, you know, thanks for the question. From a standpoint of the loan that Specific loan that you talked about, this is ECB loan from the parent which is covered by the RBI guidelines on the tenure for the repayment part. So we have paid a part of it, a part of it still remains which has to be paid, you know, over the period of time as prescribed
Unidentified Participant
By
Amit Gupta
June 27th. You know, this is subject to the, subject to the limitation that we have based on the RBI guidelines. So I think that’s the reason why this is still reflecting. But as I mentioned in the AGM also, you know, from a standpoint of our service cost with respect to debt, it is benchmarked to the returns that we are earning from the fixed deposits which are being maintained. So there is no kind of negative impact with respect to this.
Kamal Taneja
Thank you. Amit Vipul, on your question on the RM cost pass through, you know, how sweet we are, etc. So firstly I think your question was what’s the impact? You know, because it cannot be, it has to be, you know, it cannot be instant. Right. So once you get the RM increase, we increase our price as well because we looked at our inventory, current inventory, old inventory, new inventory, what we need to order, etc. Etc. And we take a pragmatic, like an average, almost like an average cost review on what we have and we went with, with the price increase accordingly to our customer.
Yeah, because there will always be a mix, right. Of inventory which we bought at a lower price and the one which we got at the higher price. Now we have the fortune of actually seeing how our parent company is doing with the other regions as well. So actually India was one of the first, first ones compared to the other regions to implement this price pass through and we were very quick. I think it’s also because we are so focused on our bottom line and as you know, we’ve been growing that for the last few quarters.
We took a very, very swift action on that. In fact, by end of March we had almost all our future orders locked in with the new pricing. Now this pricing is not just one time also because, you know, a lot of our customers actually have access to the availability and the pricing situation themselves. So we are, we have been very transparent with them and whenever there’s an adjustment, we are also very quick in adjusting our price up or down depending on, you know, how they are moving. So actually I would say in my experience, what I’ve seen over the years, I think this is one of the best practices we had in India in terms of the price realization because the raw material cost increase.
Vipul Shah
So I mean it’s really fantastic to hear that. At least from what I understand, you know, that at least we’ve been able to protect, you know, our per kilogram realization. You know, if I may. So that’s, that’s heartening. Amit. The other thing, you know, request I had is that, and I also mentioned it, I believe in the earlier calls also when the company makes, you know, the presentation, you guys also plug in the other financial income as part of your operational, you know, ebitda. Whereas most companies, you know, you know, quite discerning and you know, at least, you know, as analysts like us also we review them, we review the other non operational or financial income separately.
So I would request if, you know, you guys can consider this aspect when you make the new presentation, you know, in the future. Thank you so much.
Amit Gupta
Thanks again for the input. But I’m actually looking at the unaudited or the audited results that we have released yesterday. Other income is actually separately called out. So you know, is there a specific kind of a disclosure that you. No, no. In your
Vipul Shah
Presentation today when you make and you, you, you know, the operational EBIT and operational ebitda. So that, that actual number is not, you know, most analysts would. Would remove the other income part which is non, non operational or financial in nature, which is reflected in the notes, your audited results. So that is where I was coming to. Yeah,
Kamal Taneja
Okay. Yeah, noted on that point. Noted. Thank you.
Vipul Shah
Thanks. Thanks.
Operator
Thank you. The next question is from the line of Aryan Vidaria from Equitas Investments. Please go ahead.
Aryan Vidaria
Yeah, thanks for the opportunity. So actually just, you know, thinking from it in this perspective, would you say that the war, the inflation cost due to the war rather has been kind of, you know, blessing in disguise for you because you know, you guys would have seen higher prices and it would. So margin you are, it would not help us, but obviously you would see higher income, right? So in terms of, you know, versus the regular packaging players which we have, you know, what would be your high level opinion there?
Kamal Taneja
I think what you’re saying is comparatively being a bigger organization, do we have advantage? Right, that’s what your question is, right?
Aryan Vidaria
Kind of. Yeah, that too. Plus, you know, the overall inflation being good for you because it leads to higher revenue.
Kamal Taneja
Yeah, I think. Yes. So maybe there are probably two questions there. So first of all, let me address the higher revenue because of inflation, right? That is true. You know, when we are passing on higher cost to our customers, obviously our revenue would increase. But again, you know, we like, you know, we are a company, we are very Transparent with our customers. We value their partnership, they value our partnership. And most of the time, actually all the time we are very transparent with them when we incur increased cost.
Actually it’s also in our contracts, to tell you the truth. So they understand that we are passing on the exact cost or very similar to that. So actually the revenue goes up, but actually it doesn’t make much difference to the margin. Right. Because it’s just passing through. So I think revenue, yes. But I guess as investors on the call here, you know, you’re looking much more on margin itself. So I think that has minimal impact if anything. Your second comment was, you know, where does it put us compared to other competitors who are smaller, who do not have the reach, for example, in terms of, you know, buying power or having the availability, etc.
Definitely I would think so that’s the case with us because we have the global resources and the reach where we can source many of these raw materials from alternative sources. So pretty happy about that actually the way we handle the overall situation. Well, more to go. Who knows where it’s going to end up. But right now I think we are sitting in a good position.
Amit Gupta
Yeah. And I would also like to confirm that, you know, war is not good for anybody. And from a standpoint of the business, we are not profiteering from the war.
Unidentified Participant
So
Amit Gupta
We are finally operating a business where we are transparent with respect to the cost increases and the pass throughs that we do to the customers. And this particular piece has no implications from a VPs standpoint. You know, we didn’t have WAR last year, we didn’t have the war impact in the quarter one of this year. But we have expanded our margins consistently.
Kamal Taneja
So
Amit Gupta
Fundamentally from a standpoint of the operating discipline and our strategy of expanding the margin that’s reflected irrespective of the war. And top line inflation because of the price correction is not impacting us. No, no, obviously,
Aryan Vidaria
Obviously what I meant is as in like let’s say your revenue is 100 and you have 20% margin, then your profit is 20, but if the revenue only becomes 200 then at 20 margin you earn 40 rupees. So that is in, I’m not saying because of the war, but in some way inflation is beneficial for you is what I mean. But I think I got my answer. The operations have been, you know, very well managed.
Amit Gupta
Thank you. Thank you.
Operator
Thank you. The next question is from the line of N. Modi, an individual investor. Please go ahead.
Unidentified Participant
Yes sir. Thank you sir. Just I wanted to know at what capacity we Are.
Kamal Taneja
Mr. Modi, I think what you meant is the capacity utilization or. Okay, okay. Yeah. I think again competitive in nature. I can’t give you exact number but I think we have a lot of room to grow, if I can say that. Yeah. So capacity is not a constraint at the moment.
Unidentified Participant
That’s what I wanted to do.
Kamal Taneja
Thank you.
Operator
Thank you. The next question is from the line of Rajkumar Vaidanathan from RKN West. Please go ahead.
Mohit Mishra
Yeah, thanks for the follow up. So Kamal, the question is, are you looking at any inorganic opportunities?
Kamal Taneja
So thank you for the question. I think it’s like you know, somebody asking you to run before walking. You know, I think we are trying to strengthen our organization. We are trying to strengthen our operations. I think we are very happy with what we have done so far. Again, the results will show in future. But I think at the moment we think there is enough demand in the market, there’s enough opportunity that we can grab in the market which is aligned to our value proposition. So I think the short answer is not at the moment.
But you know, if something comes up, we would definitely look at that. But right now it’s not in our radar at the moment.
Mohit Mishra
Okay. So organically
Kamal Taneja
A lot of room to grow here.
Mohit Mishra
Yeah. Okay. And the second question is just looking at the shareholding pattern. So I don’t see much of institutional participation in our company. So just wanted to know any plans on that. Do you engage with the institutional investors? Because given Tamati is a multinational company, I mean it’s very rare to see MNC having no institutional participation. So just wanted to get your comments.
Amit Gupta
Yeah, so thanks for the question. Again, you know, the choices with respect to the investors in a particular company is not kind of determined by the company and you know, it depends upon the individual choices that the institutions would like to make. It’s not that we don’t have any institution investors and you know, the shareholdings of the institutions across the scripts keep moving but we don’t kind of engage with respect to, you know. Yeah. Solicit any kind of participation from specific set of investors.
So I think I would rest the at this but you know, it is entirely market driven.
Mohit Mishra
Okay. No, the reason for asking this question is because your stock is poorly valued. I mean it’s almost trading at one times book that is unheard of for a multinational company. So I mean, you know, if you have institutional interest then you know the liquidity in the stock will be more and you will enjoy a better valuation. And the question is coming more from that Standpoint.
Amit Gupta
Yeah. So looking at the way our EPS and return on capital ratios are improving, we believe that, you know, the valued investors will look at it differently. But we don’t solicit any kind of engagement on that. Please.
Mohit Mishra
Okay. Thank you.
Operator
Thank you. Participants who wishes to ask a question may Press Star and 1. The next question is from the line of Anil Sharma, individual investor. Please go ahead.
Unidentified Participant
Yes, so my question is regarding you have put aside to assets for sale. What. What are those assets and what any guidance for the guidance you have already told. But what are those assets? When we are at.
Amit Gupta
Sorry, Anilji, we didn’t get your question. Assets. Did you say assets or
Unidentified Participant
You have put aside assets for sale?
Amit Gupta
Access
Unidentified Participant
Current assets, other current assets.
Amit Gupta
Yeah.
Unidentified Participant
Land and buildings.
Amit Gupta
Yeah. So we have a. We have a property in Daman we have actually put up on sale. You know, so we have curtailed our operations there. And. And it’s related to that.
Unidentified Participant
Okay, thank you, sir. That’s riches.
Amit Gupta
Thank you.
Operator
Thank you, ladies and gentlemen. That was the last question for today. I now hand the conference over to management for closing comments.
Kamal Taneja
Thank you, Rutuja. Well, first of all, thank you all of you for joining the call today. Appreciate your support and there were some very good questions asked in this call and I look forward to engaging with you along with Amit next time. We hope. We answered all your questions satisfactorily and like I said, thank you very much once again and we look forward to talking to you again in future after the second quarter. Thank you very much. Thank you.
Operator
Thank you. Ladies and gentlemen, on behalf of ICICI securities limited that concludes this conference. Thank you for joining us. And you may now disconnect your lines. Thank you.