Mayur Uniquoters Ltd (NSE: MAYURUNIQ) Q2 2025 Earnings Call dated Nov. 11, 2024
Corporate Participants:
Rahul Dani — Analyst
Vinod Kumar Sharma — Chief Financial Officer
Suresh Kumar Poddar — Chairman and Managing Director
Analysts:
Awanish Chandra — Analyst
Dhaval Shah — Analyst
Ritika Garg — Analyst
Rushabh Shah — Analyst
Riham Goel — Analyst
Rahul Picha — Analyst
Viraj Kacharia — Analyst
Unidentified Participant
Gurvinder Juneja — Analyst
Presentation:
Operator
Ladies and gentlemen, good day, and welcome to Mayur Uniquoters Limited Q2 FY ’25 Earnings Conference Call hosted by Monarch Networth Capital. [Operator Instructions] Please note that this conference is being recorded.
I now hand the conference over to Mr. Rahul Dani from Monarch Networth Capital. Thank you. And over to you, sir.
Rahul Dani — Analyst
Yes. Thank you, Steve. Good afternoon, everyone.
On behalf of Monarch Networth Capital, it’s my pleasure to host the senior management of Mayur Uniquoters. We have with us Mr. Suresh Kumar Poddar, Chairman and Managing Director of the company; and Mr. Vinod Sharma, CFO of the company. We will begin the call with opening remarks from Mr. Sharma and then move to Q&A.
Thank you. And over to you, sir.
Vinod Kumar Sharma — Chief Financial Officer
Thank you, Rahul. Good afternoon, dear investors and analysts. It’s a great pleasure to address you as we reflect on the past years and look forward to the future of the company. Your support and trust in Mayur Uniquoters have been instrumental in our success, and we are honored to share with you the performance of Mayur.
Thanks for giving your precious time to join Mayur Uniquoters Limited Q2 FY ’25 Conference Call. Mayur Uniquoters Limited, being a market leader in the synthetic leather industry and an organized player, has been able to leverage the emerging opportunities and delivered exemplary performance in past years, both in national and international business markets.
Now, I would like to start with financial highlights for Q2 FY ’25 under review, and we will also give replies to your queries after our review of the financial results for the quarter. The company has achieved the revenue from operations on a standalone basis is INR216.36 crores; PBT INR54.71 crores and PAT INR41.43 crores. In the quarter, the standalone revenue increased by 11%. PBT and PAT have increased by 20% and 19%, respectively, on Q-on-Q basis.
The revenue from operations on consolidated basis is INR208 crores. PBT is INR50.56 crores and PAT INR39.84 crores. In the quarter, the revenue and PBT have decreased 2%, but PAT has increased 7%. Our endeavor is to make the company a preferred supplier for the leading OEMs, especially in U.S. and European regions. As informed earlier, we have been selected and received some good orders for OEM supplies to new models in export markets and based on that, our OEM exports are expected to increase [Technical Issues]
Operator
Ladies and gentlemen, the line for the management line has been disconnected. Please hold while we reconnect them back. Thank you.
Ladies and gentlemen, thanks for patiently holding. The line for the management line has been connected back. Yes, sir, please go ahead.
Vinod Kumar Sharma — Chief Financial Officer
Yes. As informed earlier, we have been selected and received some good orders from our OEM supplies to new models in export market and based on that, our OEM export sales are expected to increase further in this year and in coming two years. The supply to some new models has already started and some models is expected to start in coming quarters so that we are hoping for a good performance in these three years.
Further to start, general and furnishing segment business in European market, we have acquired and set up a subsidiary company to start the trading activities in Lithuania to cater European market and the nearby markets in furnishing segment. While pursuing our business interests, Mayur Uniquoters has also been endeavoring to fulfill our responsibilities to our society. Under the Corporate Social Responsibility programs, we have contributed towards the regular plantations and almost 15,000 plants we have already planted and have a plan to do it at large scale in coming years.
The company has also adopted many happy schools for educations of children. The company has worked on education for all and underprivileged children. Various healthcare initiatives, especially child skill development, water for all, sanitation at school area, distribution of books, bags, clothes, etc., and most importantly, family planning and family welfare schemes in nearby villages. The State Government has also recognized these initiatives taken by Mayur on various platforms. And I’m thankful to all the investors for their valuable time to those who have become the part of this earning call.
With this positive note, I’d like to conclude and request you all to open the form for questions. And I also request that the time for this call is 45 minutes. Therefore, please avoid repeated questions. And because of certain reasons, we will avoid to discuss volume data. So, please avoid the volume data discussion. And secondly, I’m also giving you — because in later stage, you asked the questions for segment-wise breakup, so I’m giving you at this initial stage only, the breakup of the segment results for the quarter, you can note down.
Our total INR216 crores total revenue, the breakup is export general INR25 crores, export OEM INR60 crores, auto OEM INR40 crores, auto replacement INR37 crores, footwear INR43 crores, furnishing INR7 crores and others INR4 crores. The export is INR85 crores out of INR216 crores and domestic is INR132 crores, which is 40% and 60% in ratio. And if we take the OEM supplies total out of INR216 crores, then INR137 crores is OEM supply, which comes to 63% of total sales revenue for the quarter. And other than OEMs, it’s 79% [Phonetic], which is 37%. And if we see the increase in sell value, then it is an 11% increase over the last quarter and 19% increase on a Y-o-Y basis. And if we see the increase in quantum or volume, then 7.5% increase on a quarter-to-quarter basis, a 9% increase on Y-o-Y basis. So it’s an overall picture of volume and sales segment.
Now, we can start question-and-answer, please.
Questions and Answers:
Operator
Thank you very much. [Operator Instructions] The first question is from the line of Awanish Chandra from SMIFS. Please go ahead.
Awanish Chandra
Congratulations, Poddar sir and Vinod sir on a strong set of numbers. Sir, in previous calls, you have talked about several plants. So, I just wanted to understand in terms of actual numbers, what is the capex plan we have for the next two years? And what are the capacity, what kind of things we are doing in that capex? That’s my first.
Suresh Kumar Poddar
See, next two years capex, still we have 20% extra capacity at the moment. And of course, we are thinking to go to Mexico. We have put up a plant there. But because of this America and Mexico, this election, we’ve postponed it for the time being. So within next three months, we’ll take a decision. Otherwise also, we can put up there one separately, one line we will put up here in the next six months or nine months. The way things are moving, I don’t know what will happen to next quarter, but it looks all right.
Awanish Chandra
So if everything goes as per your plan, what will be the ballpark figure of capex we can think of over next two years?
Vinod Kumar Sharma
Capex, over next two years, what will be the capex amount, amount-wise?
Suresh Kumar Poddar
Capex for…
Vinod Kumar Sharma
Awanish, it is not the right time to tell you the exact amount of capex. Yes, we have plans to put a plant in Mexico, U.S. Then it would be around INR250 crores capex. And it’s the regular capex here in India, we are doing for the upgradation and — time to time. Yes, we are doing for the upgradation of the machineries and capacity enhancement.
Awanish Chandra
Sure, sir. Understood. And sir, your commentary on the PU side and footwear recovery, anything happening on that side?
Suresh Kumar Poddar
Footwear is down, because BIS problem and all that, but we are working very seriously on branded footwears. Basically, their prices are good, and the results are stable. So we are working. We have submitted good quantity of samples to three, four foreign brands. They are showing our materials by making the final product to their customers. I think in the next six months’ time, we’ll come to know. And if that has happened, then it will be good for footwear. So, that we will come to know after six months only how we are moving, although we have made not less than 500 different kind of samples. We are taking it up to the market. So definitely, something will come out and once it starts coming out, we will continue because thing is that once these kind of products are approved, then they buy from the same supplier. They don’t go here and there.
Awanish Chandra
And the PU side?
Vinod Kumar Sharma
PU. PU.
Suresh Kumar Poddar
So PU, you see, we are, at the moment, one-third capacity. And the product which I’m talking to you for foreign brands, they are mostly on PU.
Awanish Chandra
Okay. And the last thing, sir on the BMW business start that we are doing a very small quantity. When the regular large quantity will start, BMW?
Suresh Kumar Poddar
BMW, we have started already.
Awanish Chandra
But that was a small quantity. You said in the last quarter that a good volume will start sometime?
Vinod Kumar Sharma
Small quantity you said.
Suresh Kumar Poddar
So, large volume has started already. By fourth quarter or by February, March, we’ll have between 20,000 to 25,000 yards per month.
Awanish Chandra
Okay, sir. Thank you very much, sir. I will come back in the queue.
Operator
Thank you. The next question is from the line of Dhaval Shah from Girik Capital. Please go ahead.
Dhaval Shah
Yeah. Hello, sir. I joined a bit late, so I could have missed your answer. I wanted to understand the top — there is no growth on the top line for H1. So, when do we expect the volume growth to come or absolute growth in the top line?
And second, between standalone and consolidated, the last year base is different in both. So, I could be missing something. If you could you just explain me what is the difference between the growth rates year-over-year between standalone and consol look different? These are my two questions.
Hello?
Vinod Kumar Sharma
Yeah.
Suresh Kumar Poddar
See, you know that footwear growth was less and automotive OEM export is a fantastic growth.
Vinod Kumar Sharma
If you see the growth, then export growth is 35% — 36% overall export growth and volume-wise is at 22%. And in domestic 4% volume-wise growth is there already.
Suresh Kumar Poddar
See, because the footwear has gone down, because of BIS I’ve told you. Then further automotive growth was — Vinod, how much is the automotive OEM growth?
Vinod Kumar Sharma
Automotive OEM growth, 20% auto replacement.
Suresh Kumar Poddar
[Foreign Speech]. It is no growth, same quantity. Auto OEM domestic I’m talking.
Dhaval Shah
Okay. Got it. So that’s also — and these numbers what you gave, 22% volume growth in export is for H1, right, half year? And domestic charter size [Phonetic] is also for half year?
Vinod Kumar Sharma
Yeah.
Dhaval Shah
Okay. So now realistically, what sort of — when do you expect the domestic to bounce back and show a growth on an absolute top line basis? This year H2 or next year, how do you see the scenario?
Suresh Kumar Poddar
See, domestic is very up and down. I can’t say too much, but we are concentrating very much on export. Because export, there is a big potential and that the margin is also very good. So, we are concentrating more on this. Automotive OEM domestic may increase little bit. But I don’t think much in the footwear this year also. I’m talking about domestic. As I told you, footwear, we are working very seriously on exports and branded products. So if that comes on, of course, it will start, but it will grow gradually. In this year, you will not see much difference. This year also the difference will be on export. Domestic is not too much.
Dhaval Shah
Footwear is not growing. So that’s INR43 crores revenue out of INR216 crores, correct?
Vinod Kumar Sharma
INR37 crores [Phonetic], INR30 crores [Phonetic].
Dhaval Shah
How much is footwear?
Vinod Kumar Sharma
Footwear is INR43 crores.
Dhaval Shah
So this is the segment which is not growing for you?
Vinod Kumar Sharma
Yeah.
Dhaval Shah
So out of INR216 crores, INR43 crores segment is not growing for you, right? So the rest of the INR173 crores what we have done, out of that INR85 crores is exports?
Vinod Kumar Sharma
Just a minute. INR37 crores was the sale in last year, footwear. And this year, it is INR43 crores. If you see, the increase is also there. Last year, July to September ’23, INR37 crores. And now it is INR43 crores.
Suresh Kumar Poddar
[Foreign Speech]
Vinod Kumar Sharma
[Foreign Speech] July to September, same quarter.
Dhaval Shah
So sir, what is the — which segments are pulling your growth down? Then if footwear has grown marginally and this INR85 crores exports out of INR216 crores must have also grown. So, then what is it that is pulling it down there?
Vinod Kumar Sharma
Can you read out your question again?
Dhaval Shah
[Foreign Speech] Because it is exports. Segment pulling it down. So footwear is INR43 crores and then the other segments are also not growing, maybe?
Vinod Kumar Sharma
Replacement is also growing, replacement.
Suresh Kumar Poddar
[Foreign Speech].
Vinod Kumar Sharma
INR37 crores.
Suresh Kumar Poddar
INR37 crores. [Foreign Speech].
Vinod Kumar Sharma
[Foreign Speech] INR30 crores.
Suresh Kumar Poddar
Replacement market has grown 20%. OEM domestic has reduced.
Vinod Kumar Sharma
OEM domestic has reduced. Replacement has increased.
Suresh Kumar Poddar
Domestic [Foreign Speech].
Vinod Kumar Sharma
Domestic has reduced [Foreign Speech] OEM [Foreign Speech] around 10%.
Dhaval Shah
Okay. Okay. Sir, it will be great if you can just give out this number in a press release, so that the investors can absorb the numbers before the call. It will have a better discussion on the call and not — yeah.
And sir, my second question is on the gross profit. Our gross profit has grown…
Vinod Kumar Sharma
[Foreign Speech].
Suresh Kumar Poddar
See, why domestic OEM is down, you try to understand there is a lot of new companies are coming and they are just throwing the material. Now, we are in every segment. We are very considerable. We’ll do only that business, which I have got reasonable margin. That’s why we are moving automotive OEM and domestic where — and in the low price material, we are not supplying. We are getting away. You understand?
Dhaval Shah
Yes, sir. Very well.
Suresh Kumar Poddar
So, this is because of the prices.
Dhaval Shah
Because of the prices. Okay. Okay. So [Foreign Speech].
Suresh Kumar Poddar
See, we concentrate more on the bottom line. Just for the top line, we don’t do business. We have to see that the minimum profit of margin, if it is so what I think, then only I go to that type of a model. Otherwise, I don’t go.
Dhaval Shah
And sir, [Foreign Speech] so there, will we be [Foreign Speech].
Vinod Kumar Sharma
[Foreign Speech]
Suresh Kumar Poddar
[Foreign Speech]. Next three months, we have to see the Mexico position, because how is the relation between USA and Mexico. Because USA is not happy with China. And in Mexico, a lot of Chinese companies are there with which Americans are not satisfied. So how America and Mexico relationship moves, so those all things will come in the picture in next three months to four months’ time. Then only we will take the decision. We have finalized the machinery. We have finalized the place, everything, but we have not done anything. But as soon as we take a decision within four months, five months, the production will start.
Vinod Kumar Sharma
[Foreign Speech].
Suresh Kumar Poddar
[Foreign Speech].
Vinod Kumar Sharma
[Foreign Speech].
Suresh Kumar Poddar
[Foreign Speech].
Dhaval Shah
[Foreign Speech].
Suresh Kumar Poddar
[Foreign Speech].
Vinod Kumar Sharma
[Foreign Speech].
Dhaval Shah
[Foreign Speech].
Suresh Kumar Poddar
[Foreign Speech].
Dhaval Shah
It will be proper made in Mexico. Okay. Got it. [Foreign Speech] I will come back in the queue. Thank you. Good luck.
Vinod Kumar Sharma
Okay. Thank you.
Operator
Thank you. The next question is from the line of Ritika Garg [Phonetic], an Individual Investor [Phonetic]. Please go ahead.
Ritika Garg
Hi, sir. Good afternoon. Congratulations on a good set of numbers. My question is relating to PVC. Firstly, on the export front, we’ve done about INR85 crores in total this quarter. Is it possible to give a breakup of how much of this was from U.S. in percentage terms?
Vinod Kumar Sharma
[Foreign Speech] how much percentage is U.S. and South Africa? Because the OEM, we are supplying to U.S. and South Africa.
Ritika Garg
Okay. And you were also supplying to Far East, right?
Vinod Kumar Sharma
So immediately — I’ll give you the percentage. But immediately, I don’t have that number. So, you can send me the query on my mail or WhatsApp, I’ll reply.
Ritika Garg
Okay. Sure. And secondly, my question again on PVC only is for domestic. So, we did see a slowdown in the OEM segment and even — I mean, the auto numbers are coming out. How do we see this panning out for the next six months?
Vinod Kumar Sharma
OEM domestic because of PVC.
Ritika Garg
Because of competition that you just said.
Suresh Kumar Poddar
Domestic OEMs will be the same, not changed. Whatever we have done these six months, coming six months also will remain same. Because we know, the sales goes down in the month of December because everybody wants to buy the next new year model. So, I don’t think that this six months auto OEM will be changed.
Ritika Garg
Okay. So, auto OEM will remain the same and you also — and Mr. Sharma also mentioned in his opening remarks that good growth is expected in this year in export OEM. So, what kind of percentage growth can we expect in export OEM? And like last quarter, we had reduced our guidance for revenue.
Suresh Kumar Poddar
[Foreign Speech]
Vinod Kumar Sharma
[Foreign Speech] in coming years.
Ritika Garg
Okay. But our BMW order is going to keep increasing, right?
Suresh Kumar Poddar
We have told our BMW order, we have got full-fledged supply will start from October. Maybe January, February already started increasing. Every month, it is increasing. The full volume, which they have said will be from maybe you can say from February or March. But it is increasing every month.
Ritika Garg
Okay. And sir, what according to you is the biggest risk for your business in the U.S. market right now? Are you fearful of anything?
Suresh Kumar Poddar
I have no risk.
Ritika Garg
Okay.
Suresh Kumar Poddar
I have no risk.
Ritika Garg
Okay. Thank you.
Operator
Thank you. The next question is from the line of Rushabh Shah from Buglerock PMS. Please go ahead.
Rushabh Shah
Hello?
Vinod Kumar Sharma
Yeah.
Rushabh Shah
Sir, in one of the calls, you mentioned that you entered into PU segment because PVC was stagnant and there was increasing competition. So why is that the competition cannot enter into the PU segment like it has entered into the PVC segment?
Vinod Kumar Sharma
[Foreign Speech].
Suresh Kumar Poddar
Hello? Mr. Rushabh Shah, are you on line?
Rushabh Shah
Yes, sir. I’m online.
Suresh Kumar Poddar
Yeah. You see in any business, there is always competition. PVC is competition. PU is competition with the whole world. Otherwise, I could have moved to three shift immediately. Lot of materials coming from China is under-invoicing. In spite of increasing the import duty and anti-dumping duty, still material is coming in very like $3 material is coming in $1. Now when I put up an anti-dumping duty, where the price doesn’t matter, it is $0.46 per meter, now they have started manipulating in quantity. So, that is the problem.
So we are — the government is fighting with China. And hopefully, the things should be better. That’s why I told you already that we are working with big brands. And there, I have no problem for the prices. So it will take some time. We are moving on that seriously. As I told you that more than 1,000 samples we have made and given it to them. They are making the end product, showing it to their customers. And they have started asking us small, small quantity. So, that thing will move forward because I’m concentrating for these, and they all buy maximum 80% in PU.
Rushabh Shah
Okay. Okay. And sir, what would be the market size of the PUC and PVC currently Mayur is catering to, and how could the size change in the next five years?
Vinod Kumar Sharma
Market share [Foreign Speech].
Suresh Kumar Poddar
See, there are a lot of unorganized companies. It is very difficult to say the share, because there are more than 100 factories in India. So how I tell you the share? The share has got nothing to do with us. We have to see the premium product, which is bought by different segments, where we are moving. See, with the quantity, what is our share, you will not understand anything because they are very, very cheap materials, which we will never be able to make it.
Operator
Thank you. The next question is from the line of Riham Goel from Spark PMS. Please go ahead.
Riham Goel
Hello, sir. In the beginning, you had given a segment-wise revenue breakup. [Foreign Speech].
Vinod Kumar Sharma
Furnishing.
Riham Goel
Okay. Thank you.
Operator
Thank you. The next question is from the line of Rahul Picha from Multi-Act PMS. Please go ahead.
Rahul Picha
Yeah. Thank you. Sir, wanted to understand one thing. In last few quarters, our other expenses have been around INR34 crores, INR35 crores. This quarter, it has gone up to almost close to INR43 crores. So, what is the reason for that?
Vinod Kumar Sharma
Actually, it has two impacts. One is increase in the ocean freight because of this Suez Canal issue. And second one is, we have dispatched the material from here, India, and that material has reached, but could not go ultimately to the customer, okay? It has increased only the inventory at the warehouse. So the expenses incurred on clearance the port, and dispatch material from the port, that’s why this sea freight as well as custom clearance expenses has clubbed into the other expenses. Comparatively, revenue has not been reported because ultimately, the sale was not there in last quarter. It has come in this quarter.
Rahul Picha
Okay. So the revenue will come in this quarter and expenses have already been booked in the previous quarter?
Vinod Kumar Sharma
Yes, yes. Because the material…
Suresh Kumar Poddar
[Foreign Speech].
Vinod Kumar Sharma
[Foreign Speech].
Rahul Picha
So can you quantify that amount? How much is that? The extra expenses that have come in this quarter, can you quantify that amount? How much is that?
Suresh Kumar Poddar
What amount?
Vinod Kumar Sharma
Sorry?
Rahul Picha
The extra expenses that have come in this quarter, can you quantify that amount? How much is that?
Suresh Kumar Poddar
No, it is not possible to tell you right now. You can ask us, we will find out and tell you.
Rahul Picha
All right. Fine. And the difference between standalone and consolidated revenue is also because of the same reason, right?
Vinod Kumar Sharma
Yes, yes.
Suresh Kumar Poddar
Yes.
Rahul Picha
Okay. And that is booked in the third quarter?
Vinod Kumar Sharma
Yeah.
Rahul Picha
Okay. Fine.
Operator
Thank you. The next question is from the line of Viraj from SiMPL. Please go ahead.
Viraj Kacharia
Yeah. Am I audible? Hello?
Suresh Kumar Poddar
Yeah.
Viraj Kacharia
Sir, [Foreign Speech] question, in the domestic OEM, you said that there was a lot of competition from players who are very aggressive in terms of price. So, have we kind of exited the segment in domestic OE? Because the degrowth, what we see is, in modern terms, seems much sharper than what the end auto PV sector has grown in Q2.
Vinod Kumar Sharma
Your voice is not clear. Can you repeat your question, please? Hello? Hello?
Viraj Kacharia
Am I audible?
Vinod Kumar Sharma
Just a minute. Just a minute. Speak something.
Viraj Kacharia
Yeah. Am I audible now?
Vinod Kumar Sharma
Yeah. It’s now.
Viraj Kacharia
Yeah. I am saying that domestic PV [Foreign Speech, we have grown marginally in volume terms in second quarter versus the performance we have seen in domestic OE, we have seen a double-digit de-growth. So even if you adjust for the realization drop, in volume terms, we have seen a de-growth for us, it seems like that. So, have we exited any segment? Or have we lost any business in domestic OE?
Vinod Kumar Sharma
No, no, no.
Viraj Kacharia
So what explains the de-growth in domestic OE for us?
Vinod Kumar Sharma
[Foreign Speech].
Suresh Kumar Poddar
See, as I told you that we are only working on higher segments. Lower segments, we are not working. And because of the sales force like that only, automotive sales is not very good. It’s okay, not bad, but it is not growing the way it was supposed to grow.
Viraj Kacharia
Sir, the higher segments have grown even in this quarter for the industry. But [Foreign Speech] INR40 crores against INR47 crores, almost 15% drop [Foreign Speech].
Suresh Kumar Poddar
See, every company has got different type [Technical Issues].
Operator
Sorry to interrupt, we have lost the connection to the management line. Please hold while we reconnect them back. Ladies and gentlemen, thank you for patiently holding. The management line has been reconnected back with us.
Suresh Kumar Poddar
[Foreign Speech]
Viraj Kacharia
Hello?
Vinod Kumar Sharma
Actually, in quarter, some models — it depends on the models. Sometimes [Speech Overlap].
Suresh Kumar Poddar
See, every price and profit depends on model to model. You don’t know which model is supplied in last quarter, which models are supplied in this quarter. Maybe in this quarter, the certain models, which are of less price that might have been done. From a quantity point of view, it is same. From sales amount point of view, it is a little bit down. Maybe the model where our margin is less, maybe that model has been produced more. But quantity-wise, it is same.
Viraj Kacharia
Okay. Just two questions. Export, can you give a similar figure for last year, export OE and export general, how much we did in same quarter last year?
Vinod Kumar Sharma
Export OE is INR38 crores and general INR15 crores last quarter. FY ’24?
Suresh Kumar Poddar
Last year, last quarter.
Viraj Kacharia
Yes, sir. FY ’24, Q2.
Vinod Kumar Sharma
Yeah.
Viraj Kacharia
Okay. Just last question. You in the starting of the call commentary, you said that you’ve seen an increased order wins in export. So is this from — can you just give some color? Are these from similar customers or…
Vinod Kumar Sharma
No, your voice is breaking. Your voice is breaking.
Viraj Kacharia
Yeah. Am I audible now?
Vinod Kumar Sharma
You’re audible now.
Viraj Kacharia
Yeah. I’m just trying to understand, if you can give more granularity [Speech Overlap].
Suresh Kumar Poddar
Customers are changing time to time. No customers are fixed. But one thing I can tell you, we are not losing any business, because of our quality problem or price problem or delivery problem. That is not happening. Whatever up and down, it is because the production is automotive OEMs are up and down.
Viraj Kacharia
No, sir, what I was asking [Speech Overlap].
Suresh Kumar Poddar
We’ve not lost a single customer.
Viraj Kacharia
Yeah. In the past, Ford, Chrysler and now Mercedes used to be a good part of our overall exports. So, these new wins, are those from the same OEs? If you can just give some color, which customers, which OEs, regions are we seeing this increase in demand?
Suresh Kumar Poddar
[Foreign Speech].
Vinod Kumar Sharma
[Foreign Speech].
Suresh Kumar Poddar
[Foreign Speech].
Vinod Kumar Sharma
Have you heard?
Viraj Kacharia
Yeah, I heard for sure. Thank you very much.
Vinod Kumar Sharma
Okay. Thank you.
Operator
Thank you. The next question is from the line of Kiran [Phonetic] from Table Tree Capital [Phonetic]. Please go ahead.
Unidentified Participant
Good afternoon, sir. Sir, couple of basic questions. From a growth perspective, as we look ahead into FY ’26, right, specifically on OEM exports and OEM in general, not the PU, sir, just the PVC. How do you look through the growth? Because I know the orders keep changing from the OEM customers, but from a meters perspective, we had certain commitments where we would have tripled our meters, number of meters in two years that was the comment on some channels video. So if you could just tell us how FY ’26 is looking, or is it going to be as similar to FY ’25? Just OEM, export and general and PVC, sir.
Suresh Kumar Poddar
[Foreign Speech].
Vinod Kumar Sharma
[Foreign Speech].
Suresh Kumar Poddar
[Foreign Speech].
Vinod Kumar Sharma
[Foreign Speech].
Suresh Kumar Poddar
[Foreign Speech].
Vinod Kumar Sharma
[Foreign Speech].
Unidentified Participant
Got it. If you could just quantify in terms of meters, sir? I can understand the value may go up and down because of different models. But just in terms of meters, what is the expected meters in FY ’25 OEMs, sir, just purely exports?
Vinod Kumar Sharma
That we can’t tell you right now.
Suresh Kumar Poddar
Likely it will grow. Yes.
Unidentified Participant
I mean, grow by 20%, 10%, what is the current estimate, sir?
Suresh Kumar Poddar
How can we tell that? It all depends on the market. But I can simply say that it will grow. Because it all depends on how the automotive industry grows. But I’m telling from the point of view that we are getting most of the time new models or old models, which we were not supplying. I’m telling you on that basis.
Unidentified Participant
Fantastic. Understood, sir. Understood. Understood. Sir, the second question that I had was in terms of — two sub-questions. Again, this is a bookkeeping question. Our gross margin increased this quarter from 44% to 47%. Is it because of product mix or our PVC prices have fallen right? Because other companies where you attract PVC prices, they keep saying that prices have fallen. So is the gross margin expansion because of PVC prices or because our OEM export mix has increased?
Suresh Kumar Poddar
[Foreign Speech].
Vinod Kumar Sharma
[Foreign Speech].
Unidentified Participant
Got it. Got it.
Vinod Kumar Sharma
Because of increase in exports. Majorly, it is on account of increase in exports.
Unidentified Participant
So, sir, last question. Bookkeeping question. [Speech Overlap].
Operator
Sorry to interrupt, sir. Kiran sir, can you please come back in the queue for further questions?
Unidentified Participant
Sure.
Operator
Thank you. The next question is from the line of from Jasmeen Kaur from Fortuna Investment Advisors. Please go ahead.
Gurvinder Juneja
Thank you, sir. My name is Gurvinder Juneja. I’m with Fortuna Investment Advisors. I have two questions, sir. One is, as we understand, the growth in Q2 has been largely from the export OEM bucket of your revenue. And so we were thinking the gross margins at the company level should have gone up. They have gone up, but not as per what we understand. So, is it the case that the gross margins in the domestic business have gone down this quarter? That’s my first question.
My second question, sir, is that, there is a fair value gain on investments in your first half FY ’25. We wanted to understand that what is this fair value gain on your investment book? Thank you.
Suresh Kumar Poddar
[Foreign Speech].
Vinod Kumar Sharma
[Foreign Speech].
Gurvinder Juneja
Sir, our assumption [Phonetic] is that the growth is primarily from the export.
Suresh Kumar Poddar
Hello. Hello. Hello.
Gurvinder Juneja
Yes, sir.
Suresh Kumar Poddar
Please tell one thing. You just go to all the leather cloth industries in the world and find out their data, how much gross margin, how much PAT they are doing. Like ours, you will not find one company in the whole world who is making the kind of a profit we are making. I’m not talking about top line. I’m talking about bottom line. So please check up. You see we have to compare with industry-to-industry. I mean, we are in artificial leather industry. So, you have to compare with artificial leather industry. How the artificial leather industry is doing in the whole world? This is my challenge. Not even one company you can find better than our company is the bottom line. I’m talking about artificial leather. So it is very difficult to say. We are trying our best to get more and more models.
Even we are trying to snatch the old models, which is done by somebody else. But you see, automotive is — you see, why our stock has increased? They have given certain requirements that, okay, this quarter, we will buy this much. But suddenly, if their business is down, they suddenly stop, so their stock increases. Suddenly, their requirement comes in. So many times, we have to supply by air. So, it is very difficult to 100% tell you. Even the OEMs are not able to predict properly. So many times, it depends. We can tell you that, okay, whether it will increase or not increase or decrease. It’s very difficult to say quantum.
You understand my point? Hello?
Vinod Kumar Sharma
Hello?
Operator
Sorry to interrupt, sir. The current participant has been disconnected. We’ll move on to the next question. It’s from the line of Ritika Garg, an Individual Investor. Please go ahead.
Ritika Garg
And sir, I have just one question. You did INR85 crores of exports this quarter. When do we plan to reach INR100 crores by?
Vinod Kumar Sharma
[Foreign Speech].
Suresh Kumar Poddar
Difficult to say, but of course, next year we should.
Vinod Kumar Sharma
Soon you will see.
Suresh Kumar Poddar
FY ’26.
Ritika Garg
In FY ’26, do we plan to reach INR1,000 crores of revenue?
Vinod Kumar Sharma
[Foreign Speech]. We are expecting. It should happen, okay? We are trying our best to make sure that it should happen.
Ritika Garg
Okay. Thank you.
Operator
Thank you. That was the last question for today’s conference call. I now hand the conference over to the management for their closing comments.
Vinod Kumar Sharma
Closing Comments.
Suresh Kumar Poddar
Thanks all of you for participating and asking so many questions. What is in your mind is good. But every question to reply point to point is very difficult. In short, we can say whether we are going to improve or not and little bit percentage here and there. You see we are working on organized sectors. And we work on their requirements, whatever they predict, every month they predict something. And it is always different. Sometimes it is less, sometimes more. But I’m very happy, and we will like you to ask as many questions as you can ask. We are here to reply your questions as far as possible. And the certain question, which we said, it is not possible to tell because those figures are not here, you are free to ask us, send us a letter, we will reply you. And once again, thank you all. And simply, I can say that your company is going to grow regularly. Thank you.
Vinod Kumar Sharma
Thank you.
Operator
[Operator Closing Remarks]