KRITI INDUSTRIES (INDIA) LTD (NSE: KRITIIND) Q4 2025 Earnings Call dated May. 23, 2025
Corporate Participants:
Shiv Singh Mehta — Chairman and Managing Director
Rajesh Sisodia — Chief Financial Officer
Analysts:
Ronak Ostwal — Analyst
Praneeth — Individual Investor
Tanish Jhaveri — Analyst
Rohan — Analyst
Presentation:
Operator
Ladies and gentlemen, good day, and welcome to the Kriti Industries India Limited Q4 FY ’25 Earnings Conference Call hosted by Arihant Capital Markets Limited. [Operator Instructions] And there will be an opportunity for you to ask question after the presentation concludes. [Operator Instructions]
I now hand the conference over to Mr. Ronak Ostwal from Arihant Capital Markets Limited.
Thank you, and over to you, sir.
Ronak Ostwal — Analyst
Thank you. Hello and good afternoon to everyone. On behalf of Arihant Capital Markets Limited, I thank you all for joining into the quarter four FY ’25 earnings conference call of Kriti Industries India Limited. Today, from the management, we have Mr. Shiv Singh Mehta, Managing Director and Chairman of the company; and Mr. Rajesh Sisodia, sir, CFO of the company.
So without any further delay, I will hand over the call to the management. Over to you.
Shiv Singh Mehta — Chairman and Managing Director
Thank you. Good afternoon. I would like to welcome all of you to the earnings conference call of Kriti Industries India Limited for the fourth quarter and the financial year 2025.
We had outlined anticipated challenges for Q4. During the Q3 earnings call, company minimized its impact by balancing market share and price premium in the markets. Redeeming feature is that after a long time, strong material prices look to be stable. Not only that, recently, we have seen one incidence of marginal price increase by the raw material manufacturers.
In Q4, financial year ’25, total sales volume were 13,337 metric tonnes as against 17,554 metric tonnes in Q4 financial year ’24, which was a decrease of roughly 24% on a year-on-year basis.
Segmental performance for Q4 is as under. Agri segment, 9,154 metric tonnes, a decline of 9% on a year-on-year basis. Building Products, 2,513 metric tonnes, a growth of 18% on a year-on-year basis. Industrial segment, which, as a policy, we are keeping our presence low, registered a sales volume of 1,671 meter tonne, a decline of 68% year-on-year basis.
In financial year ’25, on annual basis total sales volume were 67,543 metric tonnes as against 75,655 metric tonnes in the year 2024, which was a decrease of roughly 10.7% on a year-on-year basis.
Segment-based annual performance for the year — financial year ’25 is as under. Agri segment, 53,696 meter tonnes, a growth of 5% year-on-year basis. BP segment, 9,185 metric tonnes, growth of 30% on a year-on-year basis. Industrial segment, 4,662 metric tonnes, a decline of 73% on a year-on-year basis.
The company has begun making new investments, which are taking shape so far, out of INR55 crores raised approximately INR10 crores have been spent on capital expenditure. Rest of the plants are in discussion and in final stages.
Now, I will hand over the call to our CFO, Mr. Rajesh Sisodia, to give you the financial highlights.
Rajesh Sisodia — Chief Financial Officer
Thank you very much, sir. Good afternoon, everyone. Let me take you through the financial performance of our company on a consolidated basis. Your company’s revenue for the quarter was around INR138 crores, which was a decline by 29.3% on a year-on-year basis. The company did EBITDA that stood at about INR0.2 crores. The company reported a net loss of around INR4 crores for the quarter.
Now coming to the full year performance. Our revenue stood around INR722 crores, which indicates degrowth of 16.7% on a year-on-year basis. The EBITDA of the company was about INR28 crores with an EBITDA margin percentage of3.93, which decreased 294 basis points on a year-on-year basis. The net loss was reported at around INR4 crores.
Thank you, gentlemen. I would like to open the floor for questions, if any.
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 Praneeth [Phonetic], who is an Individual Investor. Please go ahead.
Praneeth
Hello, good afternoon. Thank you for the opportunity. Sir, I was wondering about the overall Agri market and Industrial market. The management has mentioned that Industrial market, the management has intentionally steered away from. What are the reasons behind it? And do we also plan on just maintaining this at this level? Or do we plan on growing it going forward? Can you give the reasons behind the tapering down? And where do we see this particular segment going forward?
Shiv Singh Mehta
Industrial segment market is generally dependent on MEP contractors — sorry, these contractors who are supplying to government or other projects. In this year, normally, all these contractors were not getting payments in time. So payments were sluggish, and that was where we wanted to control our business because we are not sure about the type of business, margins in business and timely payments. So we had very clearly decided to stay away as far as we are not sure that now industry has stabilized and government contracts and everything is streamlined, thereafter, still, we will be very cautious and careful in exposing ourselves to this segment.
Praneeth
Understood. So in terms of the Agri market, I understand we have had like a marginal degrowth in terms of the marginal growth in term of value more than volume because of the prices stabilizing in all of it. So going forward, like can you explain — give me some more market dynamics about the Agri industry on what type of vibes and what’s the overall market size and our market share in terms of that? And I understand you also took some market share during the quarter and year, so I was wondering which markets will be able to grow in terms of the overall business? Can you give some perspective on that?
Shiv Singh Mehta
Agri market is growing. Last year was a difficult year in the sense there was a continuous decline of material prices. That’s why the supply chain and even the customer was finding new prices every new day. And this is where there was a little resistance in the overall material flow. However, now as we look at agriculture as a segment, we are certainly that industry will grow, and this segment will grow. And your company has definitely worked on even improving its market share wherever we are present by extensive efforts and to retain not only market share, our price premium as well, which is where the company is very clearly focused.
Praneeth
I understand. But like what — see, what are our key markets at the moment? And how are we planning on expanding? Are we going to expand in our already key markets or we going to include a geographical expansion? And in terms of market share also, how do we cater in terms of, let’s say, our primary markets? What’s our market share in those? And what is the market share on overall base of the market in the country?
Shiv Singh Mehta
You see, we are strong in MP, Rajasthan, and we have established a reasonable presence in Maharashtra over the last couple of years. In the areas where we are strong, we hold over 40% market share single handedly. I mean, there are no specific numbers, but this is a general estimated number. And in the new areas where we have begun, we have been able to make reasonably good inroads and have gained market share. In the very far areas because of the transportation cost, the cost would be very difficult to afford beyond a distance. That’s why we are clear that our plans, as we have been working on, we will have to get to regional areas where we want to grow our Agri business by establishing facility around those markets.
Praneeth
Understood. So is that in the pipeline us establishing new facilities in newer markets at this moment or are you going to concentrate on existing?
Shiv Singh Mehta
Yeah. That’s very much on cards. And that’s where we are planning some initiatives. As soon as they are finalized, we’ll keep you updated on that.
Praneeth
Understood. So I’m sorry if I’m asking, like I’m curious about the Agriculture industry a little bit more. Like how do we see this market growing in terms of the key markets? Because right now, there’s a lot of muted demand over the last few quarters because of this slow situation in the market. How do we see this picking up? And how long do we expect this new cycle to start? Like can you give some business cycle analysis on like how do we see the market going forward?
Shiv Singh Mehta
We are already seeing that there is a definitely positive movement as far as Agricultural market is concerned. And there is a clearly visible opportunity of growth. So Agricultural market will keep growing at about 8% to 10% range, which is very clear because still there is a lot of area to brought under, I mean, planned irrigation.
Praneeth
Understood. And then the Agri products, most of our products in the Agri industry which we cater to, most of our pipes are PVC, right, not PE or HDPE, right? How is the product split in terms of Agri?
Shiv Singh Mehta
We are into PVC, yes, but we are also into sprinklers and coils, which are HDPE made.
Praneeth
Understood. So what would be the split between both in the Agri segment?
Shiv Singh Mehta
Exact numbers, I not have it now, but predominantly still PVC is a major market. And HDPE is a comparatively smaller market in the total proportions.
Praneeth
Okay. So — but like in the Agri segment, which you report, like 70% of your revenues is from, HDPE is also included in it?
Shiv Singh Mehta
Right.
Praneeth
Okay. Like can you just give me a broad-based split on what PVC can account for in the 70% and like what the other pipes might account for? As a percent, I don’t need exact figures.
Shiv Singh Mehta
Most I would say — exact numbers I don’t have, but majority of portion, about 80% — about exact number, I will not have, but majority of is PVC and HDPE is gaining traction, but it takes a long time to come to — equivalent to PVC.
Praneeth
But you see some tailwinds for the HDPE product also?
Shiv Singh Mehta
Can you repeat?
Praneeth
I was asking, do you see like tailwinds for the HDPE product also? Like PE, like HDPE product, like which markets do you see the tailwinds for this product, HDPE?
Shiv Singh Mehta
All the markets while accept HDPE because applications are different. PVC is generally brought — used for bringing water from source to the point of use. And HDPE in many ways is used for sprinklers, which are post bringing water, it is for irrigating a farmland in a certain way.
Praneeth
Got it. So first — so it’s likely to grow slower than compared to PVC then because the use is also a lot lower than PVC. Is that a right understanding?
Shiv Singh Mehta
Yes, yes.
Praneeth
Understood. And in terms of the overall Micro-Irrigation part, how — like how do we plan on growing this part of the business? I understand it’s meaningfully very little in terms of the overall contribution, but how do we plan on — do we plan on scaling this business? Or how is the market dynamics for this particular product or — [Speech Overlap]
Shiv Singh Mehta
Most of MI business is related to government because this is all subsidy-based business. And we, as a company, have chosen to stay away from such businesses.
Praneeth
Understood. So that’s why the contribution is very less. But like what — so then if you have made an intentional choice of staying away from the business, like, why does the contribution still exist? Like why does the company plan just close that particular line down? Is there any specific reason for it?
Shiv Singh Mehta
When we started and over period of time, it became totally subsidiary based government initiated development of business. So we stayed away mostly from that.
Praneeth
Understood. So we do not plan on scaling it going forward rapidly?
Shiv Singh Mehta
No, we don’t plan to scale it up.
Praneeth
So — but Industrial segment, so how — like I understand that because of the government — lack of Central Government inflows and all of that, it has slowed down, but you said that it’s stabilizing, right? So as it stabilizes, we plan on participating in the incremental orders, right?
Shiv Singh Mehta
Very limited. As I said, we are always maintaining, we’ll not go — I mean, increasing much of the business here we will be limiting it to some few percentages of total business because this business will keep having cyclical changes, and we want a stable regular brand-based business where our brand, which is commanding premium is enchased.
Praneeth
Understood. So we are not going to probably see the growth levels we saw in like the previous years or previous quarters of this particular segment?
Shiv Singh Mehta
Yes, from Building material — from the institutional business. Our focus will be Agriculture and Building material. Building material is a major focus at the moment.
Praneeth
I understand. Building material is expected to be a major focus for you going forward. So what incremental growth do we expect from this particular segment?
Shiv Singh Mehta
Because we have a very low base. Building material will grow fairly fast and major percentages in terms of total quarter-on-quarter.
Praneeth
So again, you’re planning on growing and building in existing key markets, right, like Maharashtra, Madhya Pradesh and Gujarat? Or is it going to be new markets?
Shiv Singh Mehta
And then we are spreading out also because building material, freight costs or transport costs are within limits of costing budgets.
Praneeth
Understood. So like which — so you’re saying that it is — so the cost of transport is better priced in for the Building segment, right? So what — in what markets do you think you can expand from your existing facilities? Let’s say, we have three key markets, as you mentioned, right? So which markets are in the —
Shiv Singh Mehta
We have already gone to other markets beyond MP, Rajasthan and Maharashtra, and we have already done some marketing, which we are stabilizing.
Praneeth
Understood. So like this growth is going to be in the mid-teen levels or how is it going to go forward for this?
Shiv Singh Mehta
It should be, yes, fairly good growth.
Praneeth
So — but like Buildings, are we using existing distribution we have for Agri or are we going in building up new distribution network for this?
Shiv Singh Mehta
It’s a combination of two, existing plus new. Because it’s a different type of a distribution approach, so all the people who are doing agriculture may not be tuned to do a BP business.
Praneeth
But how is the working capital on this business? It’s going to be same like cash and carry, right, or is there going to be any different?
Shiv Singh Mehta
So Building material, cash and carry is always — I mean the credit periods are involved in the Building materials, but we are very careful and restrictive towards credits.
Praneeth
Understood. So company will keep eye on the amount of credit they might give for the building materials distributors, right?
Shiv Singh Mehta
Right.
Praneeth
So how was the credit cycle in terms of the Agri business, it has gotten fairly better, right? Like how — is it going to remain the same? What have been the changes over the last two, three years? And where do we see this in terms of the —
Shiv Singh Mehta
These are very firm and clear on Agri side and they don’t change.
Praneeth
So — but the business right now is Agri is also very limited credit or no credit?
Shiv Singh Mehta
Yes.
Praneeth
I’m so sorry, I was not able to hear you. No credit or limited credit?
Shiv Singh Mehta
No, no. Agri is a cash and carry. BP is a credit, which is — [Speech Overlap]
Praneeth
Okay. And Industrial is credit, again?
Shiv Singh Mehta
Industrial is against letter of credit.
Praneeth
Okay. So — but most of the orders were mostly driven for Industrial segment in the last year was Jal Jeevan Mission, right, or was there any other institutional business that you are participating in?
Shiv Singh Mehta
No, it’s only the majority is this major contractors who are buying products.
Praneeth
So despite whatever mission there, it could be driven by Jal-Javeen or anything else? There’s just contactors buying from you?
Shiv Singh Mehta
They may have contract with other government businesses.
Praneeth
Understood. So I’ll just get back in line and I’ll just join the queue again. Thank you, sir.
Operator
Thank you. [Operator Instructions] The next question is from the line of Tanish Jhaveri from Omkara Capital. Please go ahead.
Tanish Jhaveri
Hi. Yeah. I’d like to know where the CapEx amount has been spent, like on which segment in the company spend INR10 crores of capex that we have done recently?
Shiv Singh Mehta
You see, we have already spent — I mean, major focus is on Building material where our maximum capex is going. And along with that, the column pipes, which is where we have spent majority of our investments. These are all value-added products for us.
Tanish Jhaveri
Okay. And how do we see the margins moving forward? Like once the raw material price stabilizes or starts moving up, like what kind of margin can we expect from the business?
Shiv Singh Mehta
We certainly see improvement in margins going forward. And we must be able to improve them towards, I mean, 10% around going forward.
Tanish Jhaveri
Okay. That’s all that I had to ask. Thank you.
Shiv Singh Mehta
Thank you.
Operator
Thank you. The next follow-up question is from the line of Praneeth, who is an Individual Investor. Please go ahead.
Praneeth
Yeah, thank you for the opportunity again. So in terms of margins, the margins we can expect in the range of 10%, right? Can it not go higher? Or how is it in terms of margins — [Speech Overlap]
Shiv Singh Mehta
We haven’t done a year, as we have done in last year, one has to be very cautious and careful.
Praneeth
Okay. In terms of raising the price and increasing the margin. Hello?
Operator
Yes, sir.
Praneeth
So I was wondering, so let’s say, despite the brand premiums, you’re making only 10%, let’s say, the unbranded players how much margin would they be making? It will be much less —
Shiv Singh Mehta
You see, the world over you are seeing the kind of challenges and kind of economic cycles we are going through. So there — I mean, with all the predictions we may go right or wrong in terms of volatility as we have witnessed in last year. So that’s why you have to be very careful in making a projection, and it’s always better to be a little conservative than being overoptimistic.
Praneeth
But like a reasonable stable margin can be 10% for the Agriculture business or the overall business?
Shiv Singh Mehta
BP will offer better margins. Agriculture will offer around 10%.
Praneeth
Okay. Understood. What can BP be? Around like 12% to 15% or would it be lower than that, like how is it — [Speech Overlap]
Shiv Singh Mehta
As a margin, it will be comparatively lower than the industry average because our expenses base will be higher on a smaller top line because we are growing in the industry, so we have to invest into the whole effort.
Praneeth
Understood. But we see the recent tapering down of like prices to be a good sign in terms of growing our demand, right?
Shiv Singh Mehta
Sure. We are all optimistic about that.
Praneeth
But do we see any incremental consumption that started back again, like in terms of the rural markets and all of that? Or is it still going to take a little bit of time to — in terms of sales?
Shiv Singh Mehta
Yes, in terms of sales.
Praneeth
Okay. There has been — can you tell me like which month, like is it during the end of December season or when did it start this growth start back again?
Shiv Singh Mehta
No. I mean, the prices were declining until end of April. It’s only towards after April that we are seeing prices stabilizing, and we are seeing positive traction in the business.
Praneeth
Since till April, it was mostly consumer that are still buying it because of the declining prices. But as it stabilizes, we expect it going up as you’re approaching more stable prices going forward.
Shiv Singh Mehta
Right.
Praneeth
Okay. Thank you so much for your patient answers.
Operator
Thank you. [Operator Instructions] The next question is from the line of Rohan [Phonetic] from Arihant Capital. Please go ahead.
Rohan
Hi, good afternoon, sir. So my question is regarding — with 72% of PVC sourced domestically, primarily from Reliance and 28% is imported. How do you plan to balance this mix, sir, if ADD is implemented or delayed?
Shiv Singh Mehta
ADD is still no clarity because it’s been through courts and courts had intervened. So till courts resolves the subject nothing clearly can be known. And since it has gone to High Court and Supreme Court and still decisions are awaited.
And as far as raw material planning is concerned, we are keeping a very careful balance between local sourcing and imports because ADD and all these things, unless they play out, we cannot be very sure which way we will have to plan our procurement cycle.
Rohan
Okay, sir. So my next question is, how much margin uplift do you expect from shifting to value-added product? And what is the time line of the transition?
Shiv Singh Mehta
You see, as I was mentioning to our earlier question, Agriculture business is a stable business where we have a clear margin. We can foresee that. And Building material, our volumes will bring better margins as they grow up. So we are confident that they will offer better margins than Agriculture going forward.
Rohan
Okay, sri. And sir, sorry, if I have missed this part. But can you please explain the capex you’re addressing for modeling bottleneck — molding bottlenecks, sorry?
Shiv Singh Mehta
No, we have already invested in last — I mean, last few months and more than — I mean, we have invested — put together about INR38 crore, INR39 crores of CapEx and we are further going to invest for augmenting not only our capacity but improving our range and our offerings.
Rohan
Okay, sir. And sir, one last question is like how do you plan to differentiate yourself from the crowded PVC market, especially into underpenetrated regions, sir? And our pricing or branding, like do you have any investment plan for this pricing and branding?
Shiv Singh Mehta
You see already our product is well recognized for its quality and premiumness in the markets we operate. So with the all branding and marketing and services, product quality, we have differentiated ourselves from the competition. And that’s why we hold majority of market shares. So we’ll continue doing what we have been doing, whatever successful way of doing for us. And you will see that we will establish ourselves not only as a premium brand, but brand which is appreciated by customers.
Rohan
Thank you very much, sir. That’s answer my question and a clarity on the spots. Thank you.
Operator
Thank you. [Operator Instructions] The next follow-up question is from the line of Praneeth, who is an Individual Investor. Please go ahead.
Praneeth
Hello, yeah. So I was wondering about the competitive intensity in terms of, let’s say, the bigger players in your markets. Recently, Supreme and like Finolex have been gaining some market share — gaining the market in agricultural pipes and pipes. So I was wondering how the company has been able to steer clear from that competitive intensiveness or how do we see them interfering in the comparative landscape? Like how does the company see that position?
Shiv Singh Mehta
See, all these companies were in this market for all these decades or maybe more. So that is not something not new happening. And we have always retained our market share. Rather our data suggests that in this area, we are now working towards improving our market shares, which is already at a higher side as compared to anyone else.
Praneeth
But how — I understand that since we’re already so dominant, how does the company plan on acquiring more from the existing bigger player? Like what would be the right to win for you in terms of getting — I understand Kriti has one of the best qualities and a great price, but like what will be the distribution factors from the bigger players for you, like in acquiring more market?
Shiv Singh Mehta
You see, one is your distribution strength; number two is your services, that is timely supplies, adequate supplies, right pricing, bringing a new range of products, whatever markets are changing, we have to change along with them. So these are the initiatives which you keep doing along with the ATL and BTL efforts, which we are continuously making.
Praneeth
Got it. And I have few question regarding your PVC pass-through, the price pass-through, in what intervals do you usually pass through the price to the customers and distributors? Is there a lag? Or like how does this pass-through of price — raw material price increment or decrement pass-through? Or does it not at all?
Shiv Singh Mehta
No, we generally pass through immediately on the changes in raw material prices because ultimately, you will see that in an industry where raw material is a major component of the total cost, we cannot afford to delay.
Praneeth
So will it be like if the price changes in the morning, will it change by the evening to our distributors? Or like what is the lag order like?
Shiv Singh Mehta
Usually, within 24 hours it is communicated and it is — normally, within 24 hours it is communicated to everyone about the changes.
Praneeth
So it’s a daily thing. So it’s not — there’s not going to be much lag in between this —
Shiv Singh Mehta
Because normally, the prices change towards the evening. So you’ll have to work out the details because such a large project range, you will have to work out product-wise prices, corrections and everything.
Praneeth
Okay, sir. Understood. Like the thing goes like by the evening, you decide the price and by next day’s morning or something you inform the distributors of the price. Is it something like that?
Shiv Singh Mehta
Changes of prices are known only towards the evening, so next day everyone will work out. By the next day evening, it is announced.
Praneeth
Undwerstood. So — and one more question — but I had a question regarding in terms of the capex we did. I’m pretty sure we got extrusion machines for everything, right? Do you usually source these from like Indian manufacturers or we get import them like because of the price difference or anything? How is it usually?
Shiv Singh Mehta
Can you repeat your question? I couldn’t get it clearly.
Praneeth
So I was asking about the capex we did. So we did capex for the overall business, right? So I’m assuming there’s an extrusion machines that is involved in terms of capacity expansion for pipes. So I was wondering where do we source this machinery from? Is it from like the European nations or China? Or do we source it locally?
Shiv Singh Mehta
No. Today, fortunately, in the extrusion side, India has a few good manufacturers. All the multinationals have their plant here, recognized internationally good extrusion manufacturers. So we are normally buying from them.
Praneeth
So you don’t need to import from some other country at this point of time?
Shiv Singh Mehta
No, we’re not importing. Earlier, we had imported, but not now. Now India has very good manufacturers. All the big manufacturers have established their own facilities in India.
Praneeth
So even the international MNC have established their facilities in India, so there’s no lack of good quality of products?
Shiv Singh Mehta
Right. I mean, the multinationals who are recognized worldwide have their own manufacturing facilities here.
Praneeth
Interesting. And since they have been established, like is there — like how do you see the price? Have they been declining or have they been increasing? I understand there’s more complexity in the new machines, but in terms of value per production you can produce, has it been declining in terms of price or has it been stable?
Shiv Singh Mehta
No, prices are more or less within region. Only the technological changes, which are coming with the automation and other, I mean, electronic equipment, that is the additional cost, one has to be ready to pay.
Praneeth
Understood. So — but it’s source locally, like do — can you disclose like where we get the extrusion machines from or is that not possible?
Shiv Singh Mehta
There are four, five manufacturers. It’s not that you only buy from one. And everybody knows there’s major international players who are here in India.
Praneeth
So we usually use a combination of suppliers for the machinery?
Shiv Singh Mehta
Yes, always because you have to be — when you have so many machines, you have to have a fair balance of all the manufacturers.
Praneeth
Understood. But did the company face any bottlenecks in terms of getting the machines because a lot of these — most of the PVC manufacturers have started their capex drives in the last two years. Did we face any bottlenecks? And did the price increase as result? Or we were able to get our supply on time and there were no issues with that?
Shiv Singh Mehta
See, we were able to get them because we have such long relations with them, they give preference and they are able to support us wherever there is requirement.
Praneeth
Understood. Because of your relationship, long-term relation, you’ll get — you managed to get access?
Shiv Singh Mehta
Right, right.
Praneeth
So what is the typical lifespan of these usually machines or like the capex we do? Let’s say we invested capex this year, right, like how long do we think this CapEx can last, like in terms of life cycle value? Like is it going to be for 10 years, 15 years, or how is it going to be?
Shiv Singh Mehta
Qualitative maintenance and management at the shop floor. But still, there is a clear life cycle for where components which wear out. So that is all — this is part of warranty you get from a manufacturer.
Praneeth
Okay. So basic incremental technology companies your automation, you will need to end up purchasing the new product. But the thing is despite that the quality on the shop floor level matters the most?
Shiv Singh Mehta
Yes. Quality of shop floor and the equipment you choose because what kind of a material was used in manufacturing that particular metallurgy part particularly, it’s very important to know and understand.
Praneeth
So basically — so but it’s like — so each machine has about 15 years or something like that or it’s usually much lower than that?
Shiv Singh Mehta
Machine parts, there are — which have limited life cycle, which even a manufacturer will define, any manufacturer supplying you will tell you what kind of a screw barrel life you can expect or a gearbox life we can expect. So they’ll give you that information.
Praneeth
Understood. So with regular maintenance and regular spare parts, the machine can last for long duration?
Shiv Singh Mehta
Certainly, it will give you a much better life.
Praneeth
Understood. So thank you so much for your insightful answers. It’s been great having conversation with the management.
Operator
Thank you. [Operator Instructions] As there are no further questions from the participants, I would now like to hand the conference over to the management for closing comments.
Shiv Singh Mehta
Thank you all of you for joining this earnings call today. We wish to have your good wishes, so that we can continue to improve on the performance of the company. Thank you so much.
Operator
[Operator Closing Remarks]