IFB Industries Limited (NSE: IFBIND) Q2 2025 Earnings Call dated Nov. 07, 2024
Corporate Participants:
Mr. Bikramjit Nag — Chairman
Mr. Soumitra Goswami — Chief Financial Officer
Kartik Muchandi — Head, Finance and Accounts, Marketing.
Analysts:
Ms. Natasha Jain — Analyst
Unidentified Participant
Manoj Gori — Analyst
Pritesh Chheda — Analyst
Navid Virani — Analyst
Jhalak Rathi — Analyst
Vignesh Iyer — Analyst
Natasha Jain — Analyst
Keshav Garg — Analyst
Shubham Jain — Analyst
Presentation:
Operator
Ladies and gentlemen, good day, and welcome to IFB Industries Q2 FY ’25 Conference Call hosted by Nirmal Bang Equities 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. [Operator Instructions] Please note that this conference is being recorded.
I now hand the conference over to Ms. Natasha Jain from Nirmal Bang Equities Private Limited. Thank you and over to you, ma’am.
Ms. Natasha Jain — Analyst
Thank you, and good evening, everyone. Nirmal Bang Institutional Equities welcome all of you to the Second Quarter FY ’25 Results Conference Call of IFB Industries. I would like to thank the management of IFB for giving us an opportunity to host this call. Management is represented by Mr. Bikramjit Nag, Chairman; Mr. Rajshankar Ray, MD and CEO, Home Appliance Division; Mr. P.H. Narayanan, MD, Engineering Business; Mr. Soumitra Goswami, CFO; and Mr. Jayanta Chanda, CFO of Engineering Division.
I would now like to hand over the call to the management for their opening remarks, post which we shall open the floor for Q&A. Thank you, and over to you, sir.
Mr. Bikramjit Nag — Chairman
Thank you. Thank you. This is Bikram Vikram Nag here. Ritesh, I think there are mistakes. No, this has been corrected. I think they have copied earlier one. Natasha, can you just please clarify?
Ms. Natasha Jain — Analyst
Hello.
Mr. Bikramjit Nag — Chairman
Natasha, can you please clarify the names which have been stated is incorrect. Hello, can I start?
Ms. Natasha Jain — Analyst
Yes, sir.
Mr. Soumitra Goswami — Chief Financial Officer
Good afternoon, everybody. I welcome you all for IFB Industries Limited. I am Soumitra Goswami, the Chief Financial Officer of IFB Industries Limited. I have with me Mr. Bikramjit Nag, Chairman of IFB Industries Limited; Mr. P.H. Narayanan, Managing Director and Chief Executive Officer of our Engineering Division; Mr. Jay Chanda, CFO of our Engineering Division; Mr. C.S. Govindaraj, Executive Director, Manufacturing of our Appliance Division; Mr. Ranjan Mathur, Head of Health of our Appliance Division; Mr. Ashish Singh, Head Plant Accounts of our Home Appliance Division; Mr. Kartik Muchandi, Head of Marketing Accounts of our Home Appliance Division; and Mr. Arup Das, Mr. Das is a member of our Merger and Acquisition team.
Now I will inform you about the quarter 2 results. Revenue for the quarter was INR1,189.24 crores against last year’s INR1,074.12 crores with a growth of 11%. PBDIT for the period was INR79.02 crores and its percentage to revenue was 6.6% as compared to last year’s INR74.83 crores, which was 7% on revenue. PBDIT amount came across a growth of 6% year-on-year.
Flat revenue growth in July and August affected the margin for the quarter, which later on improved in the month of September. Fees [Phonotic] expenditures for the quarter were within budget. PBT for the period was INR4.64 crores against last year figure of INR38.20 crores. Quarter 2 PAT was INR33.30 crores, which is 2.8% on revenue against last year 2.7%.
Now figures of YTD September ’24 are the following. Revenue for the YTD period was INR2,433.68 crores against last year INR2,136.97 crores, which is a growth of 14%.PBT for the period was INR165.57 crores and percent revenue was 6.80% as compared to last year INR115.51 crores, which was 5.4% on revenue. PBT amount came across a growth of 43% year-on-year.
Fixed expenditure for the period were well within budget. PBT for the period was INR97.04 crores against last year INR41.75 crores, which is a growth of 132% over last year. PAT was INR72.14 crores, which is 3% on revenue against last year INR31.32 crores, which is 1.5% on revenue.
With this, I will request to start the question-and-answer session.
Questions and Answers:
Operator
Thank you very much. We will now begin the question-and-answer session [Operator Instructions] The first question is from the line of Viraj Mehta [Phonetic] from Enigma Investors. Please go ahead.
Unidentified Participant
Yes. Hello, Mr. Nag. Sir, my first question is, if you look at last year’s Q2 presentation that you gave and reiterated it multiple times, including when we visited you in the AGM, the savings that you talked about, most of those savings have not panned out the way you said. And it has been over three quarters now, sir. Can you please explain where are we missing?
Mr. Bikramjit Nag
I think what has happened is, if you see on the material cost side, the required saving has not come, and we spoke about two-odd quarters back that we were engaging with McKinsey, etc. And I think in the last call, someone raised the point that have we closed issues with them. So the answer is, yes, we have. But then the Board last week said that we need a counter quote. So we put Alvarez & Marsal into it also. All of this will be done by November 20, and then the contract will be given out.
So we believe on material cost, logistics, etc, the total saving we should get is a little over INR200 crores. And some amount has come in into material cost. But what’s happened is during the changeover of the washing machine introduction. So the old model lineup went out. The new model lineup came in, and in that, there were some delays in introduction, etc. So we’ve not got the full benefit out of it, which Mr. Kartik Muchandi will explain to you better.
But broadly, the work has happened substantially. We’ve not seen the benefits yet. I think from Q3, it will start kicking in. We saw some benefit of this in October, but not fully. October results, however, which are — which we just finished, was actually very good and targets were achieved. But the question that we are asking ourselves is, is this sustainable in November, December and going forward, especially in January, etc, when AC comes in, which is a lower margin product. And the answer is that the work we’ve done on all this, I think, will lead us to the required margins. That’s our internal assessment so far.
Operator
Ladies and gentlemen, good day, and welcome to IFB Industries Q2 FY ’25 Conference Call hosted by Nirmal Bang Equities 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. [Operator Instructions] Please note that this conference is being recorded.
I now hand the conference over to Ms. Natasha Jain from Nirmal Bang Equities Private Limited. Thank you and over to you, ma’am. Thank you, and good evening, everyone. Nirmal Bang Institutional Equities welcome all of you to the Second Quarter FY ’25 Results Conference Call of IFB Industries. I would like to thank the management of IFB for giving us an opportunity to host this call. Management is represented by Mr. Bikramjit Nag, Chairman; Mr. Rajshankar Ray, MD and CEO, Home Appliance Division; Mr. P.H. Narayanan, MD, Engineering Business; Mr. Soumitra Goswami, CFO; and Mr. Jayanta Chanda, CFO of Engineering Division. I would now like to hand over the call to the management for their opening remarks, post which we shall open the floor for Q&A. Thank you, and over to you, sir.
Mr. Bikramjit Nag
Thank you. Thank you. This is Bikram Vikram Nag here. Ritesh, I think there are mistakes. No, this has been corrected. I think they have copied earlier one. Natasha, can you just please clarify?
Ms. Natasha Jain
Hello.
Mr. Bikramjit Nag
Natasha, can you please clarify the names which have been stated is incorrect. Hello, can I start?
Ms. Natasha Jain
Yes, sir.
Mr. Soumitra Goswami
Good afternoon, everybody. I welcome you all for IFB Industries Limited. I am Soumitra Goswami, the Chief Financial Officer of IFB Industries Limited. I have with me Mr. Bikramjit Nag, Chairman of IFB Industries Limited; Mr. P.H. Narayanan, Managing Director and Chief Executive Officer of our Engineering Division; Mr. Jay Chanda, CFO of our Engineering Division; Mr. C.S. Govindaraj, Executive Director, Manufacturing of our Appliance Division; Mr. Ranjan Mathur, Head of Health of our Appliance Division; Mr. Ashish Singh, Head Plant Accounts of our Home Appliance Division; Mr. Kartik Muchandi, Head of Marketing Accounts of our Home Appliance Division; and Mr. Arup Das, Mr. Das is a member of our Merger and Acquisition team.
Now I will inform you about the quarter 2 results. Revenue for the quarter was INR1,189.24 crores against last year’s INR1,074.12 crores with a growth of 11%. PBDIT for the period was INR79.02 crores and its percentage to revenue was 6.6% as compared to last year’s INR74.83 crores, which was 7% on revenue. PBDIT amount came across a growth of 6% year-on-year.
Flat revenue growth in July and August affected the margin for the quarter, which later on improved in the month of September. Fees [Phonotic] expenditures for the quarter were within budget. PBT for the period was INR4.64 crores against last year figure of INR38.20 crores. Quarter 2 PAT was INR33.30 crores, which is 2.8% on revenue against last year 2.7%.
Now figures of YTD September ’24 are the following. Revenue for the YTD period was INR2,433.68 crores against last year INR2,136.97 crores, which is a growth of 14%.PBT for the period was INR165.57 crores and percent revenue was 6.80% as compared to last year INR115.51 crores, which was 5.4% on revenue. PBT amount came across a growth of 43% year-on-year.
Fixed expenditure for the period were well within budget. PBT for the period was INR97.04 crores against last year INR41.75 crores, which is a growth of 132% over last year. PAT was INR72.14 crores, which is 3% on revenue against last year INR31.32 crores, which is 1.5% on revenue.
With this, I will request to start the question-and-answer session.
Operator
Thank you very much. We will now begin the question-and-answer session [Operator Instructions] The first question is from the line of Viraj Mehta [Phonetic] from Enigma Investors. Please go ahead.
Unidentified Participant
Yes. Hello, Mr. Nag. Sir, my first question is, if you look at last year’s Q2 presentation that you gave and reiterated it multiple times, including when we visited you in the AGM, the savings that you talked about, most of those savings have not panned out the way you said. And it has been over three quarters now, sir. Can you please explain where are we missing?
Mr. Bikramjit Nag
I think what has happened is, if you see on the material cost side, the required saving has not come, and we spoke about two-odd quarters back that we were engaging with McKinsey, etc. And I think in the last call, someone raised the point that have we closed issues with them. So the answer is, yes, we have. But then the Board last week said that we need a counter quote. So we put Alvarez & Marsal into it also. All of this will be done by November 20, and then the contract will be given out.
So we believe on material cost, logistics, etc, the total saving we should get is a little over INR200 crores. And some amount has come in into material cost. But what’s happened is during the changeover of the washing machine introduction. So the old model lineup went out. The new model lineup came in, and in that, there were some delays in introduction, etc. So we’ve not got the full benefit out of it, which Mr. Kartik Muchandi will explain to you better.
But broadly, the work has happened substantially. We’ve not seen the benefits yet. I think from Q3, it will start kicking in. We saw some benefit of this in October, but not fully. October results, however, which are — which we just finished, was actually very good and targets were achieved. But the question that we are asking ourselves is, is this sustainable in November, December and going forward, especially in January, etc, when AC comes in, which is a lower margin product. And the answer is that the work we’ve done on all this, I think, will lead us to the required margins. That’s our internal assessment so far.
Unidentified Participant
But sorry to correct, sir, but even Y-o-Y, our gross margins are down. So — and like if I look at the engineering business, I mean, obviously, we don’t get gross margin for each division, but gross margins at an overall company level is down and engineering EBITDA is up. So then the only takeaway I as an investor have is that Y-o-Y, your gross margins in your appliances business are substantially down. So which — I mean, then it begs the question that in the best quarter of the year, if our margins are down Y-o-Y, after which we have done so much work, I just don’t understand how are the numbers tallying to what you are saying? Like the commentary and the numbers just seem very different, sir. Sorry to be honest and brutal about that.
Mr. Bikramjit Nag
Understood. See what happened with us is July, August was bad. But for us, September was good. And October has been very good because those things have kicked in. But Kartik, can you explain it better so that he understands?
Kartik Muchandi
Yes, sir. So in Appliance division, year-on-year H1 last year versus this year, there is a 2% reduction in the gross margin. But in absolute terms, the gross contribution has expanded. The main reason for this is in washing machines, the market was flat and our revenues also what you have seen, the growth is muted. We have had 3% to 5% growth. The major growth is driven by cooling categories, which is AC and refrigerator. In these categories, the margins are positive, but lower than the washer category. Since there is a change in product mix last year versus this year, percentage terms you can see a reduction. But in absolute terms, the margins have expanded.
Mr. Bikramjit Nag
No. But Kartik, is like questioning is, please also convince him on the point of washer margin expansion, what is happening. Where are we on that?
Kartik Muchandi
Yes.
Mr. Bikramjit Nag
And overall, of course, on the cost down, et cetera, which will ultimately be reflected in like margins, which is what we discussed today.
Kartik Muchandi
Yes, sir. In washer, the material cost has reduced by 100 basis points, which is 1% with respect to last year. That can be seen in this quarter. In the current quarter versus last year same quarter, our material cost has reduced. And apart from this, we are running a project of below material cost reduction. And our internal target is to reduce the material cost by INR200 crores in next 12 months.
Mr. Bikramjit Nag
So Kartik, why did the — one second, please. Karthik, you’re not explaining properly. What happened in July and August, explain that to him so that he understands why this margin thing has happened.
Kartik Muchandi
Yes, yes. Okay. We had an entire model changeover in quarter two. Our — the entire old model lineup has been removed and the new model has come in from August. So during this changeover, we have lost substantial sales. If I want to — if I have to quantify, we have lost INR70 crores of sales in quarter two because of this changeover and ramp-up of new model. But if you see September and October, we are experiencing a growth of 20%. So in long term, the new models are received very well in the market. But the impact of change over margin…
Mr. Bikramjit Nag
…is the GP better? You explained that to him.
Kartik Muchandi
Yes, the GP and the EBITDA, both are better than the old model.
Unidentified Participant
Sure, sir. Sir my second is…
Mr. Bikramjit Nag
Karthik, one second, I’m getting Karthik into the call for the first time. So Karthik is getting nervous sorry. Karthi, please explain to him again, this point on, are you having margin expansion or not with the new model expansion and introduction, sorry, explain that to him.
Kartik Muchandi
Okay.
Mr. Bikramjit Nag
And if not, when are you going to have it so that GP is equal to before, if not more?
Kartik Muchandi
Yes. As of October — as of quarter three, our gross margins in new models is better than the earlier, because there are two reasons to this. One is our mix because in the new model, we have — our new models have taken well in the market, and the high-end is selling much better than earlier.
That is why our overall gross margins have improved since September and October. And we see this trend to continue in the quarter three, quarter four as well. And over and above this, we are working on a cost reduction project, which I just explained, which we have an internal target to reduce the material cost by…
Mr. Bikramjit Nag
The new models have been very well received. In September, we were stock out. We had an issue with supply chain, which is much lower than before issues that we’ve had with supply chain, but we were stock out both in top-load and in front-load.
The same situation continued in the month of October, but the stock-out situation was like less, but we were still like stock out. Capacity was sold. November has started off strongly for us. The new model has been very, very well received.
But in the introduction, where the old models were taken out and new models were brought in, there was an issue there, because the lower-end models came in first, and there was an issue there on the mix.
And on the new model introduction, the cost down was delayed by two months. The effect of that has started coming only in the month of October. So you will see the effect of that in Q3.
Unidentified Participant
Sure, sir. If I put all of what you said in terms of gross margin improvement and supply chain, when — by when do — and you always keep mentioning that we have to do double-digit margin. But at least by Q4, can we see high single-digit margin? Can we go back to 8%, 9% margin? Or that also seems a stretch?
Mr. Bikramjit Nag
I think in the month of September, we did far better than before. I’m just answering sequentially.
Unidentified Participant
Sure.
Mr. Bikramjit Nag
Month of October, I think we were close to the target.
Unidentified Participant
The target double-digit?
Mr. Bikramjit Nag
Correct.
Unidentified Participant
Okay.
Mr. Bikramjit Nag
Month of October, we were close to target, if not on target. I’m not going to say more than that now.
Unidentified Participant
Sure.
Mr. Bikramjit Nag
And we believe in month of November, depending on how the volumes pan out, see, November, December, as you know, AC volume picks up because the dealer buildup takes place.
November, not like so much, November production will go up. The dealer offtake starts from the month of December. The dealer stock like buildup starts. And the new washing machine thing is very good.
So I think we’ll be very close to that in Q3. We should be good in that in Q3. And by Q4, we are rather sure we should hit it.
Unidentified Participant
Sure sir.
Mr. Bikramjit Nag
And if we don’t hit it between, 9% to 10% we should be there.
Unidentified Participant
Right. So my last request would be that we have a very large gap between our results and our con call. It leaves a lot to be desired for a company of our stature because that leaves room for insider trading.
Mr. Bikramjit Nag
I agree with you. Soumitra, you will recall what I have said to you on this and Karthik on this you’ll have not done it and we have to hear all this.
Unidentified Participant
But can you please on next quarter make sure it happens next day or the same day please?
Mr. Bikramjit Nag
Next day may not be possible because you know what is happening, I mean others are doing it that I am aware of but the thing is after the board declares the results, it goes to a person who formalized who organizes the report and that firm takes about a day and a half two days this time it took longer but I think in two days it should be done.
Unidentified Participant
Sir, even two days will be great?
Mr. Bikramjit Nag
Yeah. We will we will try and do it. Done.
Unidentified Participant
Thank you. Thank you, Mr. Nag and best of luck.
Mr. Bikramjit Nag
Thank you.
Operator
Thank you very much. The next question is from the line of Manoj Gori from Equirus Securities. Please go ahead.
Manoj Gori
Thanks for the opportunity, sir. So my first question would be, so if we talk about supply chain issues that we face from July onwards. So I was just concerned like in the month of August, on 6th of August to be more specific when we had our corn call. Probably I think even this should have been highlighted because obviously we were not aware of the thing and we were expecting that Q2 the margin improvement probably we are very much on track.
And in the presentation, it definitely came as a surprise that we had some supply chain issues during Q2 and September obviously things have improved materially. Because if you look at some washing machine being one of our major category and the most profitable category, if we mess up with the supply chain over here, our entire yearly profitability goes for a toss.
Mr. Bikramjit Nag
I’ll explain what happened. The new models being introduced together all of them at the same time with different capacities and the old and the old models being tapered out it changed over me we actually sort of even mistook the pull of the new models. From the market we actually — we did not expect the demand to be as overwhelming as it has been and we were caught unawares the sales team was caught unawares. And we lost we lost out as a result of this. And therefore, in supply chain some things are imported which has a 90-day cycle.
Manoj Gori
Correct.
Mr. Bikramjit Nag
You see. So there we got caught up. And also some things that come in from China customs is taking longer. So all these things just added up and we did not manage it well enough. So internally we took stock of that but it’s happened.
Manoj Gori
Right sir. Then in the month of October the active season did come in October this year. Did we see we saw some impact in October but still what we understand from our channel check that washing machine market or category would have grown by roughly around 20%. Are we in line with that? Because obviously, we would have lost sales during Q2 so ideally, we should have done better.
Mr. Bikramjit Nag
I think our October sales have been very good. We could not supply, as I’m saying. The supply loss was slightly less in October compared to September, but we were stock out. Company capacity was sold.
Manoj Gori
Correct.
Mr. Bikramjit Nag
So we had that issue. But the good thing is, we think there’s possibly been a reset in the demand for the products that have been designed and introduced in the market, and we don’t expect, especially for top loader, et cetera, the demand to fall much, which means September, October [Foreign Speech] average, I think that will be the demand, which is a substantial increase to before and it’s more than 20% increase.
Manoj Gori
Correct, sir. Yes. Secondly, if you look at, we have been talking about achieving better efficiencies from the existing retail touch points.
Mr. Bikramjit Nag
Yes.
Manoj Gori
And we have been talking this for a while. In fact, this is — in fact, for last three, four years, we have been hearing.
Mr. Bikramjit Nag
Yes.
Manoj Gori
So what has been the progress? How we look at the extraction — in the presentation, we have also talked about market share gains in the coming times. So probably it’s not visible even on that front, so?
Mr. Bikramjit Nag
I think the market share gains have happened in September, October. And what has happened is the market share. Actually, companies look at the data. The data comes from an independent third-party firm called GfK. And GfK is the most widely used data service for the appliance industry. Now GfK and Nielsen have like merged, but GfK is the best like company for this.
GfK data is directionally correct. It is directionally correct because it takes care of a significant portion of dealers, but it does not take care of the brand stores, et cetera. It doesn’t take care of e-com, et cetera. But directionally correct, GfK shows there has been significant brand pull and market share gain by IFB in the last few months as far as the washer category goes. And we are feeling bad, because we are having capacity for the first time.
Manoj Gori
Correct, sir.
Mr. Bikramjit Nag
We have not had this.
Manoj Gori
Yes. So, secondly, if we look at the air conditioners, even that’s one category where we have taken…
Mr. Bikramjit Nag
Having said this — sorry, sorry, I’ll just take a second. Whilst I’m saying this, whilst we are saying this, I think we must also point out that had our planning been better, had we foreseen this, we would have built up stock starting July, for example. We did not do that. So there was a small error in planning as well. But honestly, we did not see the market pull for our products to be as good as it has been.
Manoj Gori
Correct, sir. Sir, secondly, on the air conditioners, even there, we have taken a number of initiatives. So obviously…
Mr. Bikramjit Nag
On what, sorry?
Manoj Gori
On the air conditioners.
Mr. Bikramjit Nag
Air conditioners.
Manoj Gori
Yes. So if you look at from December onwards, there will be inventory buildup on air conditioners as well from — especially the larger format players. So in this scenario, our cost obviously would be lower as compared to a year ago as a percentage of sales. So overall, on a net-net basis, from year on, we are just moving northwards on the margin side. Is that understanding correct?
Mr. Bikramjit Nag
Yes. And I think Karthik can answer this in a more eloquent manner, but we are confident of margins in this. Karthik, can you answer?
Kartik Muchandi
Yes, sir. On margin terms, last year, we were negative EBITDA of INR31 crores. This year, we are at positive EBITDA YTD.
Manoj Gori
Okay. That’s great.
Mr. Bikramjit Nag
No going back forward, Karthik, going back forward, what’s happening from now to March? They’
Kartik Muchandi
Okay. Now to March, we have further projects for bill of material cost reduction as well as our sales volume is going to go up in quarter 3 and quarter 4.re asking that.
Manoj Gori
Correct. And sir, lastly, if we look at — so currently, what are the plans for the CEO position that currently is vacant for home appliances? Any progress over there?
Mr. Bikramjit Nag
Yes. So we have interviewed a number of people. And we have still not zeroed in on someone. The reason is we are not — I am not able to find someone who has complete 360-degree knowledge on all aspects, including balance sheet control. And we are wanting that. It’s not only someone who will lead for sales and marketing, for example, but he should have good control over factory and other balance sheet matters. So we interviewed a lot of people, shortlisted some and the process is on…
Manoj Gori
Sure, sir. So thanks for this and wish you all the best.
Mr. Bikramjit Nag
Thank you.
Operator
Thank you very much. The next question is from the line of Pritesh Chheda from Lucky Investments. Please go ahead.
Pritesh Chheda
Sir, can you give some color on the categories — industry category performance in the festivals. So basically, whatever post shot, so half of September, mid of October. So in that period, the main category is washers, AC, — what, in your opinion, should have gone in the market. And for us, where will be there any market share changes?
Mr. Bikramjit Nag
I think washing machine, we have answered. Both top load, front load, we had capacity sold out and we couldn’t supply to the market as per the demand of the market because we had supply chain issues and the planning in July was not to the extent that it could have been. But we underestimated the demand for the product launched.
Pritesh Chheda
So the demand would have grown at what — so market would have grown at what rate in your opinion? It will be like 15%, 20%, more than that?
Mr. Bikramjit Nag
I’m not sure how much market has grown by per se, but we have grown substantially. Okay. and if you see…
Pritesh Chheda
And if you any differences within the washer that you would have seen in the top load and the front load?
Mr. Bikramjit Nag
See, for us, the top load has grown — the top load demand we see with the new model we have is actually tremendous and we may have to take up capacities. As far as the front load goes, I think with the further — with the work we started quite some time back on numerical reach and extraction, et cetera, I think it started paying dividends. And I think we’ll be close to capacity selling, which is a substantial growth from last year’s average. And the growth is more than 20% to answer your question.
Pritesh Chheda
Okay. Is there any loss of market share?
Mr. Bikramjit Nag
No, I just answered some time back, two minutes back that we have gained market share as per GFK data.
Pritesh Chheda
Okay. You — could give the same comments for your other categories.?
Mr. Bikramjit Nag
Other categories, we feel with the work we are doing on AC, et cetera, we should be able to achieve our — or at least close to our budgeted target. And in refrigerator, we have our internal target of around, I think, over 40,000 a month. And we are now about 28,000 to 30,000 a month, but refrigerator is an EBITDA positive business.
Pritesh Chheda
But how about that category, sir? Would it have grown just like — has it grown in the festive, the ref and microwave?
Mr. Bikramjit Nag
I’m not sure of the category growth in ref and microwave, but we have grown. But then in ref, our like base is small. So the growth is not something that we really look at. You see because if we were doing, let’s say, 20,000 ref and we go to 28,000, that is not a correct representation of the category.
Pritesh Chheda
Okay. I’ll sum up here. Let’s say, as a festive, was it a really good festive versus what last couple of years, the category was good?
Mr. Bikramjit Nag
Our festive was good, and we could have done much, much better, especially in refrigerator, et cetera. And washing machine, as I said — and I’m like repeating, we had issues of capacity.
Pritesh Chheda
Okay, sir. Thank you very much.
Mr. Bikramjit Nag
As far as margin goes, we were towards our target.
Pritesh Chheda
Okay. Thank you very much.
Mr. Bikramjit Nag
Thank you.
Operator
Thank you very much. The next question is from the line of from Shrinji [phonetic] from small Investments. Please go ahead. Mr. Shrin, your line has been unmated. Please proceed with your question.
Unidentified Participant
Can you hear me?
Operator
Mr. Shrin, please proceed with your question. Your line has been unmated.
Unidentified Participant
Hello. Thank you for the opportunity sir. Sir, my first question
Mr. Bikramjit Nag
Hello. Hi.
Unidentified Participant
Yes. Hi. Sir, my first question is on the AC front. AC, our base also is comparatively low versus last year. And I think in the PPT, you have mentioned we could have done better sales in ACs. And I look at other players who’ve done 20%, 20%-odd growth rates at their base. So I’m just trying to understand what went wrong for us in ACs in this quarter, sir?
Mr. Bikramjit Nag
We’ve still not got distribution and all right. The team is still not right as far as AC is concerned. We fixed it substantially for the washer. But what we realized was that in every branch, we need further depth as far as AC and ref goes, which means within a branch, we need more number of individuals to focus on these categories. And that team is being built up.
Unidentified Participant
Okay. Okay. Sir, my second question is we’ve hired Mr. Govindaraj. So can you just help us understand…
Mr. Bikramjit Nag
Govindaraj has been in the system for a long time. He was managing the industrial business and his background is manufacturing. So all manufacturing units of IFB have been put under him and the industrial business is anywhere within him. He used to head LG factories before.
Unidentified Participant
Okay. Okay. So he’s been with us since 2018.
Mr. Bikramjit Nag
He’s been with us — he was with us before, then he left for a few years, and then he came back when we all bought this company in Bangalore, which is the industrial laundry company, because he had wanted to relocate to Bangalore from Goa, because of his mother.
Unidentified Participant
Okay. Sir, my other question is, we do service.
Mr. Bikramjit Nag
Sorry, sorry. So now the structure is in Mr. Ray’s absence, yes, we don’t have a CEO, but Mr. Govindaraj manages manufacturing fully along with industrial business. Ranjan Mathur, who’s on this call, manufactures end-to-end sales and marketing and finance is managed separately, which is Soumitra manages finance.
Unidentified Participant
Okay. So what exactly is responsibly of Mr. Govindaraj, sir?
Mr. Bikramjit Nag
Sorry?
Unidentified Participant
What is exactly the responsibly for Mr. Govindaraj in the appliances business?
Mr. Bikramjit Nag
Managing all the factories.
Unidentified Participant
So he’s been tasked with the gross margin improvement that we’re looking at about INR200-odd crores?
Mr. Bikramjit Nag
Correct. So material cost reduction, quality issues, warranty reduction, et cetera, et cetera, that is all like with him, apart from industrial business, which is also with him.
Unidentified Participant
Okay. Okay. Sir, the other question is, I was seeing your presentation, so we have about…
Operator
May we request you to come back in the queue, because there are other participants waiting in the queue.
Mr. Bikramjit Nag
Let him ask the last question.
Operator
Okay, sir.
Mr. Bikramjit Nag
Go on, please.
Unidentified Participant
Yeah. Thank you, sir. Sir, looking at your presentation, we do about INR150-odd crores of services and out of that INR50-odd crores is some IFB products that we sell. So I’m just trying to understand what is the balance INR100 crores of service revenues that we do, sir?
Mr. Bikramjit Nag
Kartik answer?
Kartik Muchandi
Yeah. These are out of warranty spare sales and AMC.
Unidentified Participant
Sir, INR100 crores of…
Kartik Muchandi
Yeah. And these are essentials, which are liquid detergent and other accessories like trolley for the washing machine, et cetera.
Unidentified Participant
Okay, okay. All right. Thank you so much.
Mr. Bikramjit Nag
Also Kartik, AMC income is there. AMC income is a big part.
Kartik Muchandi
In the service revenue, AMC income is there, sale of spare, sale of accessory and and sale of essentials.
Unidentified Participant
So AMC bit would be the larger portion out of this INR150 crores?
Kartik Muchandi
It is around INR35 crores to INR38 crores.
Unidentified Participant
Okay, okay. And essentials is INR50 crores?
Kartik Muchandi
Essential is there, accessory is there, and also sale of deed.
Unidentified Participant
Okay, okay. All right. Thank you and all the best.
Mr. Bikramjit Nag
Thank you.
Operator
Thank you very much. The next question is from the line of Navid Virani from Bastion Research. Please go ahead.
Navid Virani
Hello, am I audible?
Mr. Bikramjit Nag
Yes.
Navid Virani
I just have one question. So, I understand that we can capture a lot of growth that the industry is [indecipherable] still grappling with some internal [indecipherable] of getting things right. So, keeping these things in mind that industry growth, but there are some internal changes which have been made. I just want to understand what kind of initiatives are we taking on the ground, which can help us avoid situations like the stockout situation which we were discussing also having the right kind of sales representatives at all the counters which are relevant.
Mr. Bikramjit Nag
Your voice is getting cut off. Can you just repeat the question, please?
Navid Virani
Is it better?
Mr. Bikramjit Nag
Yes, somewhat.
Navid Virani
Yes. So I was just asking that I understand that there’s a lot of growth in the industry, which could be captured. But at the same time, there are some internal affairs that we have to get right first, right? So keeping both these things in mind, can you share some examples of the initiatives which we have taken to avoid situations like stockout or avoid situations where we don’t have the right kind of sales representative present at counter. So, if you can give a couple of examples that would give us a better clarity on how strategically the company is moving in terms of addressing these issues?
Mr. Bikramjit Nag
No, I think on the supply chain matter, we need better visibility from — on projected sales from market so that we can plan supply chain. Because in supply chain, you have to tell a vendor to produce something so and sometimes parts are imported, which is a 90-day cycle, for example. I think this thing between front-end and back-end integration, I think we need better visibility, which is a factor of how we look at the market and also some IT integration that we need in supply chain, and we are working on that.
On the point of what else we need to do on the ground, this point we’ve discussed many, many times, and we’ve not done a good job on this, which is to have each area manned well by a competent person who is able to manage that area. Now have we completed this? I think on the senior management side, this is done. All the regions are manned. All the branches are now manned. On that front, there is no gap. That gap has existed before, but that gap is by and large closed. Are all the people up to a certain standard? Answer is no. Answer is no, we still have to work on that. Now is every territory manned competently? Answer is no. Is it better than before? Answer is yes.
Now, this is a constant thing that we have to work on and that work is going on. I can only say it’s going on with a lot more rigor. And I think the branches and the regions are very well sensitized to this now. This work was started by Mr. Ray. He only started it. It’s taken a very long time. I am aware of this, and I’ve been the most impatient on this as well. But this work was started. It’s really taken enormous time. But I think we are coming to a situation where the rank and file have understood that there is — that we are not going to relent on this, and I think it’s working now. I think we’ll see the upside fast, at least hopefully from my side. Yes.
Navid Virani
Thank you for the answers.
Mr. Bikramjit Nag
Thank you.
Operator
Thank you very much. The next question is from the line of Jhalak Rathi [Phonetic] from Agility Advisors. Please go ahead.
Jhalak Rathi
Hello.
Mr. Bikramjit Nag
Yes.
Jhalak Rathi
Sir, my question is, what is the traction that we are seeing from IFB Point? Is it giving revenue visibility?
Mr. Bikramjit Nag
Is it like giving us?
Jhalak Rathi
Revenue visibility increase any incremental revenue like in the last…
Mr. Bikramjit Nag
September IFB Point in September, October has done much, much better. There is being — we are doing some management reinforcements there, and that work is on. But October sales from IFB Point was actually good. It was good. And hopefully, that will be carried forward and IFB Point is going back into expansion mode.
Jhalak Rathi
So as we are expanding this from 215 stores to 465 stores.
Mr. Bikramjit Nag
We have 475 now, I think.
Mr. Soumitra Goswami
465.
Mr. Bikramjit Nag
465, sorry.
Jhalak Rathi
So what’s the revenue growth that you are expecting from these stores?
Mr. Bikramjit Nag
I think I will not give a revenue target now, but I’d like to say we want IFB Point to be maintained at least 15% of our sales. We don’t give guidance on sales, but we would like it to be at about 15% of sales. It had slipped earlier, but now it’s coming back up.
Jhalak Rathi
Okay. Thank you.
Mr. Bikramjit Nag
Thank you.
Operator
Thank you very much. The next question is from the line of Vignesh Iyer from Sequent Investments. Please go ahead.
Vignesh Iyer
Hello. Yes. Thank you for the opportunity. So basically, interacting with a few other players in the industry, there is a general understanding that quarter two with quarter two of last year is not really a straightforward comparison because of the festive days shifting from quarter two to quarter three in a few occasions. So just to get more understanding on the sales part, can you help us understand how the festive season has panned out this year versus the festive season that was there last year to get an increase in the sales volume as such?
Mr. Bikramjit Nag
Last year, festive happened in like November, Diwali was in November.
Vignesh Iyer
Yes. But because of what I understand there was one this Pitru Paksha that 14 days came in quarter two. So there were less sales. That is when told about the industry. That’s why I’m asking, did it impact us in anyway?
Mr. Bikramjit Nag
I think our understanding is that from September onwards, we’ve seen an uptick because of the products launched. I would like to stick to that point. I think the product launched has been very well received. And the work done on the ground on putting the right product in the right counter, et cetera, et cetera, which is the model mix, et cetera, et cetera, that work has been done relatively better. We’ve seen impact of that in September and October, and we are confident that this will do better November, December also.
As far as the other product categories go, our share is very, very small in terms of number, and we expect to see uptick in that as well. So as far as we are concerned as a company, we think we’ll do much better. And to answer your specific question on the season, I think we are better off compared to last year. But I don’t know how we’ve done vis-a-vis others because we’ve not seen — we have not reviewed the results of others, even though Blue Star has come out today. I’m aware of that. But we don’t know the others results.
Vignesh Iyer
Got it. Got it. Sir, also on the refrigeration, refrigerator part of the business. So we’ve done around 70,000 units production in this quarter. And we have a target of monthly sales of 50,000 units. So what is the strategy behind it? How — what is the time line that we see trying to achieve the same?
Mr. Bikramjit Nag
Our target is that by February, March, we should achieve it.
Vignesh Iyer
February, March, 50,000 units per month.
Mr. Bikramjit Nag
We should be close to that, yes.
Vignesh Iyer
Okay. Got it, sir.
Mr. Bikramjit Nag
Internal target is that. But — if you see now, we are hovering between 25,000 to 28,000, 30,000. And I think we will get there. That is what my sales heads prediction is. Thank you.
Operator
Thank you very much. The next question is from the line of Natasha Jain from Nirmal Bang. Please go ahead.
Natasha Jain
Yeah. Thank you for the opportunity. Sir, just a follow-up on the last participant’s question. In terms of refrigeration, are we on track to achieve the 6 lakh guidance that we said earlier? Or should we land somewhere?
Mr. Bikramjit Nag
Because the months — the first 6 months has passed. So we are not going to be there. But going forward, we hope that by February, we should be averaging close to what we need to be averaging. And then going forward, we will achieve that. But I don’t think we’ll achieve guidance of 50,000 for the year — I mean, monthly for the year.
Natasha Jain
Got it. So we should be landing somewhere around 4 lakh, 4.5 lakh units for FY ’25?
Mr. Bikramjit Nag
Yes, somewhere like that, I think.
Natasha Jain
And sir, we have broken even at EBITDA level, right, for refrigeration?
Mr. Bikramjit Nag
Yes, yes.
Natasha Jain
Understood.
Mr. Bikramjit Nag
We have broken even at EBITDA level.
Natasha Jain
Great. And sir, on for AC, I may have missed out. So have you called out the volume numbers sold in second quarter?
Mr. Bikramjit Nag
Volume in second quarter has not been good for us. For AC, you’re talking, right?
Natasha Jain
Okay.
Mr. Bikramjit Nag
Are you talking air conditioners?
Natasha Jain
Sir, only AC sales, I wanted to know the volume growth for second quarter.
Mr. Bikramjit Nag
What’s the Volume growth, Karthik? No, in terms of growth, how much are we cutting…
Kartik Muchandi
Growth will be 80%.
Ms. Natasha Jain
Understood.
Mr. Bikramjit Nag
But again, because our base is small, this is irrelevant. It is absolutely irrelevant and we have to get into starting now, the build-up to the season, whether we can supply or not, and all of that work is going on now. And if we can do what we are supposed to do between now and 31st of March, then we will be achieving our budgeted number.
Natasha Jain
Which would be ideally INR5 lakh units for FY ’25?
Mr. Bikramjit Nag
Close to that, yes.
Natasha Jain
And, sir, we are already at EBITDA positive level, right, for room air conditioners category?
Mr. Bikramjit Nag
Yes, by and large. Karthik? Karthik?
Kartik Muchandi
[indecipherable] September the EBITDA is positive?
Mr. Bikramjit Nag
Yeah, EBITDA positive.
Natasha Jain
Understood. Thank you so much, sir. Thank you very much.
Mr. Bikramjit Nag
Thank you.
Operator
Thank you very much. The next question is from the line of Keshav Garg from Countercyclical PMS. Please go ahead.
Keshav Garg
Sir, firstly, I wanted to know that the rupee is depreciating and we are importing roughly one-third of our raw materials and cost of goods sold. So whatever you are talking about, INR200 crore cost savings, sir, it is adjusted for the rupee depreciation? Or, sir, we will realize this in the subsequent quarter that why we haven’t been able to achieve 10% of raw, basically margin because the rupee has depreciated?
Mr. Bikramjit Nag
Whatever rupee depreciation takes place now, et cetera., let’s say, we will have it compensated either by price increase or like whatever. But the thing is, internally when we did the budget for the year, we never thought rupee will be at say, AP4 whatever now, so soon. So that has been an issue, but we will overcome this. I don’t think this will affect what are targeted EBITDA numbers, EBITDA percentage numbers.
Keshav Garg
Sir, also, sir, now if we see that there are so many global giants in every single category that we are in, like, for example, in ACs, there are so many people like Daiken, even Blue Star from India, O General, and Carrier. So they do only air conditioning, and they focus on that, and, sir, they are globally, they are giants, but somehow we think that we can compete with all of these global giants in each of the categories. I mean, sir, if you look at some of our verticals, they are totally minuscule. Like, I think in Modular Kitchen, we did INR1.4 crore revenue in one quarter. So I’m sure that this vertical must be loss-making. Our inventory would have been stuck. The management bandwidth is going over all these small, small segments. Sir, now, similarly, if we see the built-in oven, chimney, hob, sir, it is less than INR6 crore revenue per quarter. So, again, this would also be, I’m assuming, loss-making. So why don’t we just focus on a few major categories so that we can really scale up our number?
Mr. Bikramjit Nag
I think the fact of the matter is we compete with LG, Samsung, Bosch in every product category. So I would not single out air conditioning from that angle. So, let’s say with washer, you will always compete with LG, Samsung, Bosch, for example, plus now Haier, et ctera. In AC, you will compete with whoever you are talking about. Refrigerator, everyone. I think this is part and parcel of the game. And I think there’s no company that can really over time I think will do well with a single-minded focus on one like product. The reason why in AC, the companies you’re talking about are doing relatively okay is because of the industrial segment helping them. So Blue Star has a large industrial segment. Voltas has a large industrial segment and so does Daikin. We are not in that. We just prefer to be in the home thing, in the room thing. And our internal strategy document formulated long, long back, basically said, we should make all products for the house, electronics for the house, in terms of white goods, et cetera, and brown goods. So we are just like progressing on that. In certain things, we have not done well is a fact. In certain things, whether we should close it down or not, we keep evaluating it. And as and when we take a decision, you will get to know. But as a company, our aim is to grow faster and to achieve the required margin, we are very focused on that. And I think in Q3 and Q4, hopefully, you will see substantial difference.
Keshav Garg
Since this is such a hypercompetitive market, this home appliances market and sir, also now there are free trade agreements and duty free goods are coming from Thailand, sir, please correct me if I’m wrong. So I mean, our competitors are global in scale and manufacturing. And sir, they are the global leaders in technology. So basically, I’m trying to understand that what is our USP? What is our right to win over…
Operator
Keshav, may we request that you return to the queue…
Keshav Garg
Ma’am my question is already over, so I’m waiting for the answer.
Mr. Bikramjit Nag
Yes. So I think to answer your question, we must be doing something right for people to buy IRB and for you having invested in IRB. Something you must have seen in it. [Foreign Speech] because I don’t know you personally, but you must have done your homework. So I think I don’t dwell much on this.
As far as I’m concerned, I talk to my team on one single matter. Please make a very good product and sell it in every corner of India. Now on that, on the selling part, we have failed. We have not done as well as we should have done. And for that, whatever management changes are being made are being made, the reinforcements are being introduced, et cetera. The project was started. It just took too long. But I think we are on the right track. And I think you will see it in the results soon.
Keshav Garg
Right, sir. Thank you very much and best of luck.
Mr. Bikramjit Nag
Thank you.
Operator
Thank you very much. The next question is from the line of Shubham Jain from NV Alpha Fund. Please go ahead.
Shubham Jain
Hello, Hi, am I audible?
Mr. Bikramjit Nag
Hi.
Shubham Jain
Sir, I just wanted to reask this question. I know the first participant asked this. And you mentioned that what is the reason for the gross margin decline of 200, 230 bps. I understand that there was a transition period that was happening in washers. But could you just help quantify how this impacted us from an RM procurement point of view?
Mr. Bikramjit Nag
Kartik, you can answer this very well. Kartik and Mr. Govindaraj.
Kartik Muchandi
Yes. The first part, you already know, washer category, we lost INR70 crores sales, which would have definitely…
Mr. Bikramjit Nag
They are asking why? How has it happened?
Shubham Jain
My focus is more on the gross margin. So if you’ve lost INR70 crores sales, so all that procurement has happened and is that sitting on the RM. Is that the reason?
Kartik Muchandi
No, no, no. The INR70 crores sale, what we lost is washer, where the gross margins are very high. So that is the first point. And second point is that in quarter one, our washer sale is flat, but we got 80% growth in AC. So what happens is that, the gross margin in AC is relatively lesser compared to washer. That is why in absolute terms, you will see our gross margin has expanded. But as a percentage to sale, it is reduced.
Shubham Jain
Sir, if I compare 2Q ’24 to 2Q ’25, right, our washer sales are flat. We had done INR378 crores in front-load, INR133 crores in top-load, which is more or less flat in 2Q ’25. And AC sales has gone up only by INR12 crores, that to our own brand sales have increased. So I would assume the gross margins are higher. So this still doesn’t explain why our gross margins have fallen from a Y-on-Y perspective?
Kartik Muchandi
No, this is for the…
Mr. Bikramjit Nag
Carry on, carry on Kartik.
Kartik Muchandi
Yes. For Y-on-Y, if you see, our growth in AC is more than 100%. I’ll just give you the numbers. Just one second.
Shubham Jain
Sure.
Kartik Muchandi
Yes. Yes, it is exactly 100% growth in AC. But the washer sale is less than 10%. So that is the reason why percentage gross margin is…
Mr. Bikramjit Nag
Yes. But Karthik, please tell him what is — that’s because of July, August in washer, because of the changeover plan, et cetera. What happened in washer in September, October?
Kartik Muchandi
Yes. In September, October, the trend has reversed completely. We have got more than 20% growth in top line. And whatever we produce, everything is sold in washer. We could have further sold, but we did not have stock or neither we had capacity. So had we sold the washer enough, then the gross margin would have been better than last year same quarter, even in terms of percentage.
Shubham Jain
Sorry, I’m going to repeat this question. AC sales, again, INR51 crores have gone to INR63 crores. So — and on an overall basis, it’s not a very high number that it can impact the gross margins. So it doesn’t seem like — seem to be an AC thing. And if you can just help me understand this washer, what happened in July, August for our gross margins to get hit?
Mr. Soumitra Goswami
Yes. In July, August, there was a changeover. So in changeover, the new models were coming in. So initially, we introduced the low end. The old models have to be taken out. So the new model coming in and the old model taken out, we could not do a one-to-one replacement.
Shubham Jain
Got it. So in the new models, we made a lower gross margin?
Mr. Soumitra Goswami
No, the new model did not go in to the extent required, first and foremost. So sales got hit. And new model, the cost out was 2 months delayed. The BOM cost was not achieved in new — in the models when it was launched. That came 2 months later. That affected the business.
Shubham Jain
Out of the INR375 crores plus INR130 crores, almost INR500 crores of washer sales that we have done in this quarter, how much was new models and how much was old models like a broad sense?
Mr. Soumitra Goswami
Karthik?
Kartik Muchandi
Yes. Exact numbers, we don’t have, but maybe 60% old model and 40% new model, but we can give you the exact thing.
Shubham Jain
So if I could just request, if I could take this offline and clarify some of these numbers with you, if I can just have — yes, I’ll just reach out and we can have this clarified then.
Mr. Soumitra Goswami
Yes, Karthik, you can reach out to like Karthik. Karthik and Ritesh.
Shubham Jain
Okay, sure.
Mr. Soumitra Goswami
Thank you.
Operator
Thank you very much. The next question is from the line of Aditya from [Indecipherable] Investment Managers [Phonetic]. Please go ahead.
Unidentified Participant
Hi. Thank you for taking my questions. So my question was more on the washers. So like where — is it like a particular region we are seeing growth? Or is it pan-India? I mean I’m just trying to understand, what is the driver for such a good offtake when you say that you’ve been — I mean, you’re out of capacity to produce. So I’m just trying to understand what is the exact reason?
Mr. Soumitra Goswami
Sorry, what was…
Unidentified Participant
The exact reason? Like is it like — did you like find a new geography where you expanded because of which the…
Mr. Soumitra Goswami
I think the new models, if you go into the market and see has been very well received. The looks are very good. The pricing is right. I think we just got the whole thing right, including dealer by dealer [Indecipherable] has been right. What should go in where, how it should — I think that whole 360 work has been very well received. The looks are very good. The pricing is right. I think we just got the whole thing right, including dealer-by-dealer planogram has been right. What should go in where, how it should — I think that, whole 360 work has been done very well.
Unidentified Participant
So basically, if you look at it that way, then it’s — so that’s something…
Mr. Bikramjit Nag
It’s like saying that in like Mahindra, let’s say, the XUV700 has been received very well. Why? Because it’s a very good car, it looks good, it feels good. Customers have liked it. I think, what has been launched by this team, by the R&D team and the manufacturing team together, this was overseen by like Mr. Ray has been very, very well received by the market. That’s my point.
Unidentified Participant
I mean, you gave the example of Mahindra on there, we’ve always — I mean, we’ve been speaking about it for these last three, four years, right? The preference of customers toward SUVs overall has gone up.
So it’s not just a Mahindra thing. Everybody — all brands, the SUV sales have been picking up. And added to that, yeah, you had a good line of sight from Mahindra and their SUV sales have really picked up. So there, you had this whole theme of the premiumization, the buyer wanting to prefer SUVs over…
Mr. Bikramjit Nag
It happened in make sure as well, in Front Load Washer, it’s happened, premiumization, higher-end models are selling more. And our models are now really, really contemporary and people have liked it more, more than competition.
Kartik Muchandi
And the growth is across…
Mr. Bikramjit Nag
Yeah. Growth is across India, yeah.
Unidentified Participant
Got it. Thank you.
Operator
Thank you very much. As there are no further questions, I would now like to hand the conference over to Ms. Natasha Jain, for closing comments.
Ms. Natasha Jain
Thank you. I would request the management to give closing comments, if any.
Mr. Bikramjit Nag
Thank you.
Mr. Soumitra Goswami
Thank you everybody.
Mr. Bikramjit Nag
Please.
Mr. Soumitra Goswami
Thank you, everybody, for participating in this call. We’ll meet again in quarter three earnings call. Thank you everybody, again.
Mr. Bikramjit Nag
Yeah. One more point from my side, Bikram Nag here again. We, as a company, are acutely aware of the fact that we should be doing better across product category, mainly Washing Machine Front Load, Top Load, Air Conditioner, Refrigerator, apart from the smaller ones. But these are the four major categories, Microwave also, I think.
And we are acutely aware that we not hit the required margins, neither have we done as well as we should do in terms of revenue. And it’s not something that we are happy about or we are proud about. And every day, we are looking at this seriously and making the necessary changes to achieve required results. More than satisfying shareholders, it is something we need to do for ourselves internally. So I can only say that a lot of focus is going into it. Thank you.
Ms. Natasha Jain
Thank you, sir.
Mr. Bikramjit Nag
Thank you.
Operator
Yeah. That concludes the conference. Participants can disconnect their lines. Thank you.