Mallcom (India) Ltd. (NSE: MALLCOM) Q2 2025 Earnings Call dated Nov. 14, 2024
Corporate Participants:
Shyam Sundar Agrawal — Chief Financial Officer
Rohit Mall — Associate Vice President
Analysts:
Aradhana Jain — Analyst
Rishabh Shah — Analyst
Kashvi Chandgothia — Analyst
Zakin Ashar — Analyst
Gagan Shah — Analyst
Manav Vijay — Analyst
Anik Mitra — Analyst
Abdul Qadir — Analyst
Tushar Vasuja — Analyst
Presentation:
Operator
Ladies and gentlemen, good day and welcome to the Mallcom (India) Limited Conference Call hosted by PhillipCapital (India) Private Limited. [Operator Instructions] Please note that this conference is being recorded.
This conference call may contain forward-looking statements about the company which are based on the beliefs, opinions and expectations of the company as on the date of this call. These statements are not guarantees of future performance and involve risks and uncertainties that are difficult to predict.
I now hand the conference over to Mr. Vikram Suryavanshi from PhillipCapital (India) Private Limited. Thank you, and over to you.
Shyam Sundar Agrawal — Chief Financial Officer
Thank you, Mike. Good afternoon and very warm welcome to everyone. On behalf of PhillipCapital, I am pleased to welcome you all on earnings call of Mallcom (India) Limited. We are happy to have the management with us here today for question-and-answer session with the investment community. Management is represented by Mr. Rohit Mall,Associate Vice President; and Mr. Shyam Sundar Agrawal, Chief Financial Officer.
Before we start the call, we will have opening comments from the management. And now I hand over call to Mr. Rohit. Over to you, sir.
Rohit Mall — Associate Vice President
Thank you. It is a pleasure to welcome you to our earnings conference call for the second quarter and the first half of the financial year 2025. Let me first start off by thanking our host, PhillipCapital, for hosting today’s earnings call. I’ll begin with some operational highlights for the second quarter of the financial year 2025, and after which our CFO, Mr. Shyam Agarwal will provide the detailed briefing on the financials.
We continued on our growth path in Q2 of FY ’25 with strong growth in topline and bottom line. In our effort to provide certified genuine products at list price and to cater to the ever-growing demand for both B2B and B2C, the company has launched a new e-commerce website with encouraging response. The company also launched newly designed single density sole with Docker and Doxle range of shoes having wider toe caps for the Indian market, which is witnessing rapid change in product demand with more and more value-added user-friendly products. The company also participated in various exhibitions held in the USA, Middle East, Europe and Southeast Asia, all well renowned and largely participated by key players worldwide and got very good response, interest and enquiries.
On the capex front, the first phase of Sanand-II Gujarat project being set-up for manufacturing of Protec is nearing completion as per the schedule and trial run for manufacturing of Dipped Gloves is likely to commence in November 2024. The company has already invested INR75 crores against projected investment of INR90 crores. Additionally, the Phase-2 expansion at Ghatakpukur for setting up a new unit for designing and manufacturing industrial safety shoes test issues with a built-up floor area of 30,000 square feet and a capex involving INR20 crores is also progressing as per schedule with completion expected within FY ’25.
Now I will request Mr. Shyam Agarwal, our CFO, to brief you on the financial performance of the company.
Shyam Sundar Agrawal — Chief Financial Officer
Thank you, you, Rohit, and good afternoon, everyone. Let me brief you on the consolidated financial performance for the second quarter and the first-half of the financial year 2025. On a consolidated basis, operating revenue stood at approximately INR129 crores, reflecting a growth of nearly 90% year-over-year. EBITDA for the quarter was around INR16 crores, representing a growth of 3% year-on-year with EBITDA margin at 12.24%. The decline in EBITDA margin was mainly due to higher branding and self-promotion expenses, consultancy and other operating expenses. The net profit was reported to be close to INR10 crores, showing a yearly growth of 10% with PAT margin at 7.82%.
For the first-half of the financial year 2025, the operating revenue grew by around 14% to INR232 crores. EBITDA grew by 2% year-on-year to INR30 crores. EBITDA margin for this period was 13%. The net profit for the period grew by 5% year-on-year to INR19 crores with PAT margin reported at 8.03%. During the period, company made capex of around INR45 crores and we’ll be making additional investment of INR30 crores during the current financial year against the completion of planned ongoing expansion projects both at Sanand, Gujarat and Ghatakpukur, West Bengal. As you stated earlier, the entire capex plan to be sourced through internal cash accruals of the company. ICRA, the rating agency has once again reaffirmed the long-term credit rating of the company as ICRA (A) with a stable outlook.
Thank you. With this, we can now open the floor for the questions and answers session.
Questions and Answers:
Operator
Thank you. We will now begin the question-and-answer session. [Operator Instructions]. we have the first question from the line of Aradhana Jain from B&K Securities. Please go ahead.
Aradhana Jain
Hi, am I audible?
Operator
Yes, you are.
Aradhana Jain
Yeah. So thank you for the opportunity and congratulations to the team for a good set of numbers. I have a couple of questions. My first question is on the Sanand, Gujarat facility. I believe that the trial run for the dipped gloves has commenced as it was to commence in November. So if you could throw some light on the timelines for that? And in our previous call, we were told that in that particular facility we’ll also have gloves, both PU and NBR, shoes, helmets and eyewear to be produced. So what’s the status on that? That’s my first question.
Rohit Mall
So yes, the trials have commenced. So, we within like right now as we speak, I think this week, next week is when we are doing all these trials. And so hopefully by the end of the month we should have successfully set up a infrastructure for the trials and the trials will have been completed and we would be ready for commercial production of NBR gloves.
And the second line we would add is for PU gloves, which will happen right after maybe by within one month or two months or so. And regarding the other product line, I think helmet as well will — that is something we plan to move and start production by December of this year and the eyewear and other products will follow later. So, first is NBR, the PU and the helmets which will start within this financial area itself and the others will take more time for development.
Aradhana Jain
So, what are the sort of revenue expectations that we have from this particular facility? I believe that the peak sales from this particular facility was around INR100 crores that we had projected. So, in the current year do you see some bit of revenue flowing in from this particular facility? And by when do we expect this INR100 crore of peak sales to start kicking in?
Rohit Mall
Yes, I think for the current year we will see probably INR4 crores, INR5 crores coming from this facility and the INR100 crores target should be hit. Hopefully, we are expecting it to hit within three years’ time.
Aradhana Jain
All right. Also, if you would throw some light on the export market, how has the demand outlook been in the second quarter? Also, was there any logistic challenges that you guys faced? And how has the competitive landscape developed?
Rohit Mall
So, the demand from the export market has been good, barring some countries like Turkey and Argentina, where they had their own internal issues and not being very importer friendly in those countries, rest of the countries have been good. Europe is coming out of the economic issues that they were in last year and due to the war and everything. So, it’s getting better and because last year we have also had some of our issues where we couldn’t fulfill the order, so that’s also happened and now we are on track. So, that has also added. So, it’s a good place we are in.
And as compared to the competitive landscape, mostly and also because of, I think Trump winning the American election, a lot of people, especially in the States and then the rest of the country — rest of the world, they are worried about increasing taxes on Chinese imports into the country, and probably they are looking to have a parallel supply chain, and we have had a lot of interesting discussions about this as well with American companies especially. That’s also a country where we want to grow. So, we are keeping a close watch, and we are hopeful that this will reap some good benefits for us.
Aradhana Jain
Sure. That was helpful. And if any logistic challenges that you guys faced? I understand that Mallcom, most of the sales happen on FOB basis, but any issue that you guys would have faced because of the Red Sea crisis still persisting or any sort of issue?
Rohit Mall
Yeah, so this is almost like regular business for us. There are something or the other which is happening. Earlier it was COVID and then this Red Sea crisis, and there are container shortages in between. Also, because there are very few shipping lines who are servicing worldwide, so it’s a very oligopoly kind of market and they control the prices, they control the availability. So, our hands as a manufacturer are tied. Even our importers’ hands are tied. But we try to ensure that we are able to service our clients, but that definitely leads to longer lead times and the revenue cycle extends for us. But I think this is just part and parcel of the business that we are in.
Aradhana Jain
Got it. And just on the…
Operator
Aradhan, I will request you, kindly can you come back in the queue for follow up questions.
Aradhana Jain
Sure, sure. Thank you.
Operator
Thank you. We have the next question from the line of Rishabh Shah from BugleRock PMS. Please go ahead.
Rishabh Shah
Thank you. Yeah. Hello. Am I audible?
Operator
Rishabh, your audio is a bit low, request you kindly come on the handset mode.
Rishabh Shah
Yeah, am I audible now. Hello?
Operator
Yes, go ahead.
Rishabh Shah
In the last call we had discussed that we are in the mode of adding more distributors. So, how many have we added them in the last four to five years and what new steps are we taking to add more distributors?
Rohit Mall
So, that number specifically, Rishabh, I don’t have it ready with me, but if I am not wrong, I think definitely we would have added anywhere between 15 to 20 or maybe more in the last four to five years. And yes, we are always on the lookout for adding new distributors. And we regularly, when we are going to, let’s say, these exhibitions or conducting technical seminars and symposiums, we are looking for distributors. We have a good, healthy database and inbound inquiries also coming in for distributorship. And we consider each application properly, but we have our list of criteria which will be fulfilled. We are also targeting the distributors who have better reach into the markets where we are not present. So, these kinds of regular activities are taken up on our end to ensure that our reach in the country and outside is covered properly.
Rishabh Shah
So, sir, roughly on top of your head, you said around 15 to 20 distributors in the last four to five years. Is it because the number is low. Is it because the criteria which you have to fulfill other distributors or this is the pace we add the distributors?
Rohit Mall
Yeah. So, we definitely are a little picky with our distributors because a lot of people, lot of our distributors may also be doing a lot of volume for us, but they may not be, let’s say, meeting the criteria. So, we are getting it serviced through one of our existing distributors also, because for us, as you know, that we work on only a cash basis in the market. So, that’s an important criteria, which especially in India, not all distributors are oriented to this kind of working. So, that’s why it gets a little picky when we select our distributors, but we would like to follow that.
Rishabh Shah
Okay. So, my second question is since certifications is the major differentiating factor for Mallcom than the others, so is the Government of India more supportive of it? And how has the support from the Government of India changed in the past years for you?
Rohit Mall
Yeah, so certification is one of the USPs that we have apart from others. And that’s definitely something that we would like to propagate more about. And in the last four, five years the government and BIS has been very active in ensuring that certifications are followed and ensuring the cheap, low quality uncertified products are not imported or not manufactured, or the fake and spurious products are taken out of the market or the market study is being done properly. So, we are definitely seeing a lot of now activity happening as compared to previous years. And we are hopeful that more and more standards will come into the picture and implementation of the standards will get even more stricter, but there is only till a certain level that the government can do. It’s also about the users and the purchasers, and then exercising their rights and being aware about the certification standards. So, a lot of awareness also needs to happen with the users and the purchasers.
Rishabh Shah
So, just a follow up on that one. You said the standards are already there. The implementation is happening. So, as compared to previous years, were the standards there and implementation was not happening? Or did it change? The implementation is happening right now and new standards are coming in place?
Rohit Mall
It depends on the product category. So, some standards, for example, standard for footwear, standard for helmets has been there for a long time, but the implementation was weaker, that’s getting stronger. Something like a standard for hand protection, India still does not have it. So, we need to make new standards and there are already talks of making new standards and a lot of these products, India did not like for high visibility clothing, that was a recent standard that was created for the new market. So, I think it is in different stages for the product category.
Rishabh Shah
Sir, my last question, and then I will join back in the queue. You said that product awareness and availability should be there. So, as you say, the market is shifting from the unorganized sector to the organized sector. So, what steps Mallcom is taking for product awareness and availability?
Rohit Mall
So, in fact, a lot of steps and that has been our idea to go into the market where we talk about the products. So, like I mentioned before, we do seminars and symposiums where we call safety officers and all the key decision makers and explain them about the standards and certifications and what kind of products will be used for what kind of hazard. We have actually recently partnered with Chacha Chaudhary and Sabu IP where we are using Chacha Chaudhary and Sabu’s character to propagate about safety standards and workplace safety and hazard in general, and so these kind of activities. When we are going into exhibitions, we are talking about these sort of things as well, and even if you ever follow our social media or on YouTube or on Facebook that, that’s what we majorly also talk about. So, it’s a regular and continuous exercise and it’s a, I think joint effort by everybody in the industry including our competitors and the government, but these are some of the activities that we are doing to ensure that our users get awareness.
Rishabh Shah
Sure, sir. Thank you so much. I’ll join back in queue.
Operator
Thank you. We have the next question from the line of Kashvi from JRK Stock Broking. Please go ahead.
Kashvi Chandgothia
Hi. Can you hear me? Hello?
Operator
Yes, we can hear you.
Kashvi Chandgothia
First of all, I would like to congratulate the management on a great set of numbers. I have a couple of questions. As we said, we are aiming for a INR1,000 crore revenue in two years’ time. Sir, can you please elaborate like what are the specific drivers for the demand growth and what percentage of growth is anticipated from domestic versus international markets in the coming quarters?
Rohit Mall
So, in terms of demand, I think there is healthy demand in the export market as well as the domestic market. Definitely, we would like to, and I think the idea is and what will eventually happen is the growth — large chunk of the growth will come from the domestic market. But like I said to a previous caller, with the kind of landscape in the export market, it seems interesting that the export market will also be likely to grow if you are able to meet with the requirements for the importers. So, on the demand side, I think there is sufficient demand for us to achieve this target. It is on us how quickly we are able to ensure that operationally and expansion-wise we are prepared to cater to this demand and reach to our target, it is in the defined time.
Kashvi Chandgothia
But sir, we do not have any clarification on the domestic versus international demand, right?
Rohit Mall
Sorry, can you come again?
Kashvi Chandgothia
But we do not have any bifurcation or any clarification on the domestic versus the international demand.
Rohit Mall
So, I think it’s a 60:40 ratio, I think probably in the next two, three years this ratio will start moving more towards the domestic. Eventually, we want to go into 50:50, but I am not sure if that will happen in the next few years, but maybe in the long term, yes, that’s where we want to go.
Kashvi Chandgothia
Okay, great. And sir, can you elaborate on the company’s strategy for launching new products and segments like head and hand protection? And how much is the revenue expected out of these new launches?
Rohit Mall
So, in terms of this, so one, the NBR glove that we are doing, it’s more of a product going in depth into a single product because we are already doing NBR, but PU what we are launching is a new — it’s a product extension that we are doing. Helmets is also not a product extension, but again depth, because we are adding more designs with more styles to it. Eyewear in the future, yes, will be a product extension. And I believe from the Sanand plant where most of these things are happening, definitely INR100 crore revenue is expected. And also from the phase 2 expansion that we are doing in Ghatakpukur here for shoes, I think maybe around INR20 crore more additional revenue is what we are expecting.
Kashvi Chandgothia
Okay. Thank you so much.
Operator
Thank you. We have the next question from the line of Zakin Ashar an Investor. Please go ahead.
Zakin Ashar
Hello. Congratulations Rohit Ji for the recent growth numbers which Mallcom has projected — done for this quarter. Sir, what would be the white label versus branded share as of now, and what are your thoughts on what Mallcom would like to be maybe next three to four quarters or when you
Reach INR1000 crore turnover? Thank you sir.
Rohit Mall
So, the split is very much similar as the export versus domestic because largely we — in domestic we are only doing branded and some parts of Southeast Asia and Middle East where we are doing branded. So, I think the ratio is largely 60% of private label and 40% of branded that we are doing. We will take a couple of percentage here and there and in the future, yes, that’s what I said that 50:50 is what we are looking at. Maybe in the next two, three years it will start gradually moving. Maybe in the three years, maybe we see like 45:55 something like that, and eventually in five years maybe 50:50 is where we want to head.
Zakin Ashar
Thank you sir. And are you satisfied with the way things are moving towards ’28, sir, when broadly you have projected a INR1,000 crore?
Rohit Mall
We would definitely like to do better. We, like if you ask me, we would like to definitely hit the target before the timeline comes. That’s the best case scenario, but we are are very mindful of what we have committed and we are on it. And like I said, it depends — it’s the function of how quickly we are able to expand and how much operational efficiency we can bring to ensure that we are able to capture the demand. So, like I said, there is demand. It just needs to be captured.
Zakin Ashar
And one small follow-up, sir. Do you see the Indian safety sector in terms of statutory regulations improving over time sir, or it still remains flat?
Rohit Mall
So, definitely we are seeing most of the sectors in India, in terms of compliances they are getting better. Also because the statutory norms are getting stricter. And I think, in general, because when the wages increases, the cost of labor is higher, you want to ensure that you are keeping your labors protected. Otherwise, there is a lot of implications and not to mention the cost of replacing that labor as well. So, I think because of those kinds of issues, it is getting more and more prevalent in the Indian landscape. And I think going ahead, also a lot of these MNCs will bring in their international standards. So, they are also influencing what the Indian MNCs are purchasing. So, I think it’s a function of all of these, and it is definitely getting better.
Zakin Ashar
And sir, how easy or difficult is it to import these kinds of stuff into India, sir?
Rohit Mall
Not so easy. It’s a large country. A lot of different states have a lot of different regulations. Different industries work in different manners. A lot of bureaucracy as well in the country. So, it is taking time. It won’t come easy.
Zakin Ashar
No, but is it easy to import the FDA equipment into the country, sir? Maybe something like a helmet or gloves, is it easy to import or are there some restrictions on import of these?
Rohit Mall
Yeah, yeah. So it depends on the product. So, the basic rule is, if there is an Indian standard to it, then importers and the exporters from the other countries are required to have the BIS license. But if there is no standard, for example in safety gloves, then anybody can import anything from anywhere. So, it depends on; one, if there is a standard or not; and two, how strictly they are being followed. Sometimes even with the standard, these things come into the country without any checks. But where there is no standard, then anybody can order anything, 100%.
Zakin Ashar
Thank you. Thank you, sir, and best wishes.
Operator
Thank you. [Operator Instructions] Thank you. We have the next question from the line of Gagan Shah, an Investor. Please go ahead.
Gagan Shah
Yeah. So, broadly all my questions are answered. Just a quick comment. Sorry, I might have missed your initial remarks. So, can you comment — I think this quarter there was a big drop in our margins. Can you comment on that?
And subsequent to that, the second question would be, so when we reach our — when you said that the demand is there, the market has to be captured, and when we reach our target of which is INR1,000 crores, and all our capacity is coming in and getting fully utilized, with operating leverage coming in, so can we go to margins above 15%, 18%? Any thoughts, color on that? For this quarter as well as when we reach INR1,000 crores, what can we look at?
Rohit Mall
Yeah. Shyam Ji, if you can address.
Shyam Sundar Agrawal
Yeah. So, regarding margin this quarter, yeah definitely we had a little bit drop in the EBITDA margin because of, as Rohit mentioned, looking at our future growth plans and we are now investing into brand promotion and the marketing efforts as well as we have appointed few consultants who are helping us in getting these targets and also some system oriented issues like production efficiency we are trying to improve. So, this is there we are investing. So, these are for this half and quarter, we definitely have incurred some additional expenditure, but going forward we don’t see the percentage might be going down, and yeah, definitely to take care of future growth requirement we are doing this. So, because of that, we had a little bit decline in the EBITDA margin.
Gagan Shah
Okay. And when we reach the full scale, what can we look at?
Shyam Sundar Agrawal
Yeah, definitely, in that case the margin — EBITDA margin has to improve. This is what we target. And as I mentioned, that the effort we are taking now, that is sort of investment which we are making and must give us better result and better margins also in future.
Gagan Shah
Can it be above 15%?
Shyam Sundar Agrawal
Pardon?
Gagan Shah
Can it be above 15%, 8% range?
Shyam Sundar Agrawal
Not 18%, but let us target first 15%. So, that should be the first step. And definitely if we are doing 13%, 13.5% as of now with the operation efficiency and we are also, as you will see that we are consolidating our operations also. So, one big plant in Sanand, one in Ghatakpukur. So, definitely scale will give us some additional benefit also. So, Yeah, let us target first 15% and then we will see. So, that is achievable, Yeah, over the period.
Gagan Shah
Okay, okay. That’ all, and all the best.
Operator
Thank you. We have the next question from the line of Aradhana Jain from B&K Securities. Please go ahead.
Aradhana Jain
Hi. Thank you for the opportunity again. Just to follow up on the previous question. So, on the other expenses side, like you said that you actually incurred expenses on the advertisement and sales promotion. So, could you just give us how much have you spent on that in terms of your percentage of sales and whether going forward that is going to continue, or it is a one-time cost that you have incurred towards selling and consultancy cost? How are we placed on that?
Shyam Sundar Agrawal
So, it is for the period it is in the range of 2% almost. So, how it is happening that there is a consultant cost also in the range of 1%, and apart from that we have, as Rohit mentioned in his address, we are attending a lot of fairs and seminars both in India, outside India. So, this time we attended in U.S., Europe, also then Middle East, then South Asia. So, everywhere all the big fairs we are attending. So, there has to be cost associated with this. So, going forward, yeah, this cost has to be there, but with the increasing turnover definitely the percentage will go down.
Aradhana Jain
Understood. Secondly, your inventory has gone up in the first half of the year. So, what are the reasons for that? And is there any seasonality angle to your business because of which you put in more inventory in the first half?
Shyam Sundar Agrawal
No, so let me tell you this. In our type of business we are supposed to keep the inventory in the range of up to 100 days. So, this quarter and half, the inventory is basically in line with the growth also. So, we had 14% growth and there is an increase in inventory. Apart from that, definitely as of now what we have seen that in last year also we had supply chain issues and because of that to take care of that and also to increase the operational efficiency and productivity, we are keeping some buffer stock. So, definitely little bit, not much, but yeah, stock is on little bit higher side, but in going forward it should be coming down, but it remains in the range of 90 to 110 days, that would be there because, you know, type of nature of operations we are into.
Aradhana Jain
Understood. Just last question from my end. The e-commerce website that you guys have launched, so any thoughts on that? What’s it going to be like? What are you expecting from it? Is it going to cater to B2C or it will also have B2B client? What sort of expectations are there from the website?
Rohit Mall
So, we were already on e-commerce marketplaces like Amazon, Flipkart, JioMart, etc. Now, after almost two, three years of having experience from there, we have launched our own e-commerce website and this is in a very initial stage. The idea is to, because we saw that there was demand from direct consumers for our product as well, so we thought, okay, why not reach out to them directly? So, that’s why this is primarily to cater to the D2C audience. Also, maybe to small consumers of our products, maybe having 10, 20 pairs of orders for gloves, shoes whatever. They don’t want to go maybe through the distributor route as there is no benefit, so they would like to purchase directly. So, the idea is to capture that kind of a market and we very hopeful. We have not done any marketing of this as yet and we are already getting orders on it. So, we are just engaging and improving also the website based on feedback. Hopefully within six months or a year’s time, we will have more inputs on this.
Aradhana Jain
Understood. Thank you so much and all the best.
Operator
Thank you. We have the next question from the line of Rishabh Shah from BugleRock PMS. Please go ahead.
Rishabh Shah
Yeah. Thanks for the opportunity. I have one question. On the pricing front, can you explain in detail the domestic and the international front, what is the difference in the strategy you use as well as the difference in the price between you and the peers, both domestic as well as the international?
Rohit Mall
See, strategy wise, the export market in each, we try to focus on each country, on each product category, which country, which product category makes sense for us, where we are competitive against, let’s say, the other countries, mostly China, and which is based on the raw material, based on duties, based on our expertise. So, we filter it like that and that’s how we approach. And we try and target the large importers and brand owners there by visiting them and meeting them in the fairs.
And for the domestic, the idea is to increase the penetration in the market, add more distributors, add more resellers, have our planning exercise done properly and also have a complete basket of products that they would like to buy. So, the idea is to basically ensure a good distribution channel and service levels of our products. Obviously in both cases, quality is the basic idea that we have to meet.
In terms of pricing, that’s a very — I can’t make a generalized statement. It depends on the market. It depends on the product category. So, in the Indian market, brands are definitely not the most cheapest ones that there is, but there is a quality to each price, I would say. It is very specific. It is a case-to-case basis.
Rishabh Shah
Okay. And sir, my last question just wanted to ask, there is a, let’s say, from the 21st to 23rd of November there is an exhibition on the Premier Occupational Safety and Health event. Is Mallcom coming there?
Rohit Mall
You are talking about OSH in Mumbai?
Rishabh Shah
Yes.
Rohit Mall
We will be only going as a visitor, not as an exhibitor. We used to be an exhibitor in the past in that, and now we are not there as an exhibitor. We are participating in a lot more other industries’ specific exhibitions. For example, we took part in exhibition. We are taking part in the Bauma, which is for construction in Delhi. So, we are going into other industries’ exhibitions more so than our industries’ exhibitions because that’s a more smaller scale compared to the other industries are much, much larger. So, our strategy is a little different.
Rishabh Shah
Okay, okay. Thank you so much.
Operator
Thank you. We have the next question from the line of Manav Vijay from MV Investments. Please go ahead.
Manav Vijay
Yes, thank you very much. Am I audible?
Operator
Yes, we can hear you.
Manav Vijay
Thank you, okay. So, Rohit, I have, let’s say, two questions for you. If you can just help us understand, I think you were sounding positive for demand in EU and for U.S. as well. So, is it more to do with the outcome of the U.S. elections, or is it more fundamental in nature because the manufacturing activity is making a comeback in these two continents?
Rohit Mall
So, different, different reasons I would say. So, Trump election has just happened now, but what had happened before is that a lot of people were trying to prepare themselves in case of this eventuality. And if tariffs are to be increased from, let’s say, China-made products, so a lot of people had started this discussion of resourcing. So, that’s what — one of the issues is that’s what happened and definitely the other thing is the increase in the manufacturing activities in these countries.
For Europe, again, it’s not as great of a demand as, let’s say, other countries because it’s a very saturated market and the economy there itself isn’t growing as much, but definitely they are also thinking of this China Plus One policy. And also for them a lot of manufacturing that used to happen for the low-cost products from, let’s say, North Africa or East Europe, that’s also starting to get expensive because these countries are starting to get expensive. So, that’s why they are looking to move further East into Asia, and also the increase of their own manufacturing in some of the countries like France, because of energy mostly happening. And in Europe also not all countries have the same kind of demand and economy. It depends on
Country to country, but yeah there are different factors which are contributing.
Manav Vijay
Sure. Second question is, so we have done roughly INR130 crores of sales in this quarter, 20% up Y-o-Y and 26% up quarter-on-quarter. Is any one-off that you can call out that was there in this quarter which helped you to have this kind of growth or it was business as usual?
Rohit Mall
This has been business as usual and I don’t think there is any one specific activity which happened. The only thing that I have said in the past is last year we had faced supply chain issue for our garmenting operations and I think those back orders are also being cleared. So, that’s something that has added on to this first half of the year. But other than that I don’t think anything else has happened.
Manav Vijay
Okay. So, the probability of you, let’s say, repeating this quarter number in H2 as well, is that probability is high or that is low?
Rohit Mall
We are trying to stay on this path and that’s the target, and that’s what we want to achieve.
Manav Vijay
Okay. My last question is, can you spell out the capex for next year because I believe that this year your second phase of Sanand will get done and also the expansion that you are doing in Ghatakpukur as well, that should get over. So, what do we have for FY ’26?
Shyam Sundar Agrawal
Yeah. So as I mentioned, this year itself we are investing around INR75 crores by March ’25. And for the next year, as of now there would be only normal capacity addition we should keep doing. So, normal capex in the range of INR10 crores, which is routine capex we are doing. No specific further expansion is planned as of now.
Manav Vijay
Okay. And Rohit, if you can also share about that land in Kolkata. Has anything happened further on that?
Shyam Sundar Agrawal
Rohit, let me answer this. So, just look at the notes which we have in the account. So, this year we have received around INR27 crore as advance from the JDA. And so what has happened that they have approached us with the proposal for outright sale, which we are still considering and the deal is yet to be finalized. So, the idea is that instead of going for partnership thing, we might be coming out of this with an outright sale. And so whenever it happens, we will let you know. And yeah, so that is what is happening as of now.
Manav Vijay
And Shyamji, this amount of INR27 crores is already there in the cash flow or is it yet to come?
Shyam Sundar Agrawal
Yeah, it is already there in the cash flow as on date. So, on the date of the balance sheet that is 30th September it was INR17 crores and till date it is INR27 crores, which we have already received. And most likely we will be going for the outright sale of the land. So, whenever it happens, we will let
You know.
Manav Vijay
Thank you and all the best sir.
Operator
Thank you. We have the next question from the line of Anik Mitra from Finnomics Solution. Please go ahead.
Anik Mitra
Good afternoon sir. Am I audible? Hello?
Operator
Yes, we can hear you.
Anik Mitra
Sir, can you give me a guide — roadmap for your INR1,000 crore top line?
Rohit Mall
Yes, but I don’t understand what you mean by a roadmap.
Anik Mitra
Roadmap means how we will be arriving at INR1,000 crore top line. So, production from the new facilities, what kind of revenue addition from various new facilities from your expansion and how this INR1,000 crore will be achieved?
Rohit Mall
See, in terms of market and in terms of our business as we mentioned, I think out of that, INR400 crores to INR500 crores should be from domestic and INR500 crores to INR600 crores should be from the export market which is also private label versus branded. That should be the mix. And the Phase 1 of Sanand and Phase 2 of Ghatakpukur should be able to add this kind of revenue. Maybe we will have to start Phase 2 of Sanand as well for this, but that call we will only take maybe in a year’s time and the rest of the facilities are already geared up. We are regularly also based on — these are the fixed capacities that we are increasing, but there are also a lot of fungible capacities where we can increase shift, we can add more lines to our stitching. So, we can subcontract also. Those kind of things can also be done too, but those only happen when we see the order book is healthy and it’s a sustained order book. So, that’s how we are trying to achieve. And also like I said, there is product extension happening and more depth into a product category also happening across product lines. So, I think all these activities will help to achieve that target.
Anik Mitra
And are we to anticipate a similar kind of margin like as Mr. Shyam was saying about 15% target margin, EBITDA margin. So, at INR1,000 crore also can we anticipate a 15% margin or are you looking for something — some addition over there — some further expansion over there?
Rohit Mall
No, I think as Shyam ji mentioned that the margin profile I think will largely remain the same. We are not expecting it to grow. And I think because also a lot of this expansion, the product development, the selling expenses are also increasing. So, that’s where margin is also taking a hit. So, we are hoping to maintain the same margins with the growth.
Anik Mitra
Okay. And any ballpark number for — means I am saying about in ratio term, what is the contribution of helmet, glove and shoes in the top line?
Shyam Sundar Agrawal
So, Rohit, let me answer this. So, as of now for the current half year, the shoe remains the leading contributor around 42%, then we have hand safety and garment equally 27%, 28%, and rest coming from other products like helmets. Helmets may be 2% as of now, but it is growing fast. So, this is what as of now we are doing.
Anik Mitra
Okay. Thank you so much. Thank you, Rohit.
Operator
Thank you. We have the next question from the line of Rishabh from RSPL. Please go ahead.
Abdul Qadir
Hello. This is Abdul Qadir here. Thank you for the opportunity sir. So, just a couple of questions, sir. I just wanted to understand now with the U.S. elections behind us, like this China Plus One policy, like what opportunity this could throw for us? So if you could just please explain in terms of numbers if you can just throw some light on it, like how much opportunity can we expect from this?
Rohit Mall
So, very difficult to quantify it because we are still going through the phase. And like I said, nothing has changed in business sense, but people are anticipating that things will change. It might also happen that things don’t change and the duties structure still remains the same. But we are definitely receiving a lot of inquiries and new inquiries also and from existing customers also increased inquiry, but very difficult to quantify it at this point in time. Our idea will be to grow and penetrate deeper into the U.S. market. And every year, every quarter that number should increase for us and the revenue percent coming out of the U.S. should also increase for us. That is what our idea.
Abdul Qadir
So, like, is it possible to give a sense based on like historical trends, so like in ’17-’18, when this thing had happened, so what quantum of growth had come to us? So, is it possible to at least get a sense on that?
Rohit Mall
Even historically, U.S. was never a big market for us. When in the past also we were putting our effort, but it was a slow growing market. And because it is a market where it’s difficult to get an entry into a customer. But once you have gotten an entry, it’s a sticky customer as compared to maybe, let’s say, European or South American customers. So, the efforts are still there. We would definitely like to grow in the U.S. in terms of percentage more than what the overall export growth is because we see more growth coming out and we are also preparing ourselves in terms of the products that they like in terms of the raw materials that they like to ensure that we get the same thing that they are expecting from, let’s say, China or any other competitor in India. I am expecting a healthy growth from that market.
Shyam Sundar Agrawal
Rohit, just to add on, we can refer to what is the world market size of PPE. So, it is in the range of 60 billion almost. And most of it, so maybe up to 75% of this has been catered by China. So, big market, basically if anyone start talking of shifting it to some other place, just look at the numbers, you know, how big it number can be. But to cater this you need infra and capacity. So, this is what will happen gradually and slowly. So, this is what we are looking at trying it.
Abdul Qadir
Understood. Just one more follow up. So, I just wanted to understand your point of view, like if there is any acquisition which you guys are contemplating? So, to achieve INR1,000 crore target sales, is there anything on table or if it comes during the course of the year, like is this possible?
Rohit Mall
Yes, definitely. We are always on the lookout if an opportunity presents we would like to take a look into it. We are not discussing with anyone actively right now, but yeah if there is a possibility we are open to it.
Abdul Qadir
Okay, got it. Thank you so much.
Operator
Thank you. We have the next question from the line of Tushar Vasuja from Yogya Capital. Please go ahead.
Tushar Vasuja
Hello, am I audible?
Operator
Yes, we can hear you.
Tushar Vasuja
Thank you for the opportunity sir. I have a couple of questions on your new capacity. So firstly, what could be the margin profile of the new products in Sanand facility?
Shyam Sundar Agrawal
So, we expect it to be in the range of, see, these are all basically the synthetic glass which we are planning and helmet we are planning initially. So, we have currently margin in the range of 10% to 15%. So, we target that. So, up to 15% it should be, Yeah.
Tushar Vasuja
And sir with eye protection?
Shyam Sundar Agrawal
Yeah, that would be the new product. So, let us see. So, again, the overall part, as you see, it should be in a similar range, 13%, 15% margin we will target.
Tushar Vasuja
Okay sir. And sir, how much additional manufacturing capacity will you get after Sanand and Ghatakpukur capex?
Shyam Sundar Agrawal
So it should be — both the units should be giving us around additional turnover of up to INR200 crores to INR225 crore turnover in excess of what we are doing now.
Tushar Vasuja
Okay sir. And sir, can you give us capacity or revenue breakdown from the, let’s say, INR100 crores around for the Sanand capacity, what would be the breakup in terms of eye protection, gloves and helmet?
Shyam Sundar Agrawal
Mostly it would be hand protection. Helmet would be on the, you know, maybe up to 10% to 20% of turnover will come from helmet, but mostly it would be hand protection.
Tushar Vasuja
Okay. And sir last question. What would be the utilization ramp-up scheduled for Sanand facility?
Shyam Sundar Agrawal
We are just starting. So, we target to achieve the top line, you know, the target turnover within the next two, three years. So, this year we target turnover in the range of INR5 crores to INR10 crores and up to INR5 crores maybe. Then let us see how it develops.
Tushar Vasuja
Okay, sir. Thank you.
Operator
Thank you. [Operator Instructions] As we have no further questions, I would like to now hand it over to the management for closing comments.
Rohit Mall
Thank you all for participating in the earnings conference call. I hope we were able to answer your questions satisfactorily and at the same time offer insights into our business. If you have any further questions or would like to know more about the company, please reach out to our Investor Relations Managers at Valorem Advisors. Thank you. Stay safe and stay healthy.
Operator
[Operator Closing Remarks]