ORIENT BELL LIMITED (NSE: ORIENTBELL) Q3 2025 Earnings Call dated Jan. 27, 2025
Corporate Participants:
Aditya Gupta — Chief Executive Officer
Himanshu Jindal — Chief Financial Officer
Analysts:
Suyash Samant — Analyst
Madhur Rathi — Analyst
Rishikesh Oza — Analyst
Aman Agarwal — Analyst
Avinash Baskar — Analyst
Resha Mehta — Analyst
Karan Bhatelia — Analyst
Presentation:
Operator
Ladies and gentlemen, good day and welcome to Orient Pell Limited Q3 and 9M FY ’25 Earnings Conference Call. As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing Star 100 on your touchstone phone. Please note that this conference is being recorded.
I now hand the conference over to Mr Suyash Saman from IR Advisors. Thank you, and over to you, you, Mr.
Suyash Samant — Analyst
Thank you. Good afternoon, everyone, and thank you for joining us today. We have with us today the senior management team of Orient Bell Limited, Mr Aditya Gupta, CEO; and Mr Himanshu Jindal, CFO, who will represent Limited on the call. The management will be sharing the key operating and financial highlights for the quarter and nine months ended, 31 December 2024, followed by a question-and-answer session.
Please note, this call may contain some of the forward-looking statements, which are completely based upon the company’s beliefs, opinions and expectations as of today. These statements are not a guarantee of the company’s future performance and involve unforeseen risks and uncertainties. The company also undertakes no obligation to update any forward-looking statement to reflect developments that occur after a statement is made.
I now hand over the conference to Mr Aditya Gupta. Thank you, and over to you, sir.
Aditya Gupta — Chief Executive Officer
Thank you. Good afternoon, ladies and gentlemen, and welcome to our quarter three FY ’25 earnings call. Retail consumption has not been holding up for quite some time and Q3 was also not too different. A continued slowdown in the exports market, given the volatility on container freight over the last 12 months has added to the pressure. Steep discounting continued, but OBL has been able to this through our drive on selling more premium products with more GBT and slabs. Despite the overall market gloom with our sustained efforts on-sales and marketing initiatives, we were able to protect our market-share. Our revenues have grown by 1.2% over last year to INR469 crores.
While the demand recovery may take some more time, we have continued to stay on course with our firm belief and thus investments to support making time shopping easier for buyers, whether it be consumers or our dealers have continued. Some operational highlights over the last nine months are GBT salience has grown to 40%, which is up from 27% last year Nine-Month period. Our mix has improved to almost 58%, a highest-ever for OEM so-far. Our marketing investments continue to be at about 4% of revenues versus an historical run-rate of less than 3%. The active belt style boutiques, the number has grown to 375 implying a total addition — net addition of 23 more displays in the last nine months.
Some early green shoots are becoming more-and-more visible now with projects both private and government expected to enter the tiling stage in 2025, this should help OBL in the coming quarters.
With this, I request our CFO, Himanshu Jindal, for the financial updates. Over to you,.
Himanshu Jindal — Chief Financial Officer
Thank you, Aditya. Good afternoon all. Since Aditya has already covered revenues and the initiatives that we have been taking to drive and support sales of more premium products this fiscal, let me give you more insights on our costs and margins. So our sharp focus has helped us save approximately 4% operational cost of production on a like-for-like basis in the first-nine months, which is after factoring constant product mix and stable energy costs. The blended fuel cost to have softened by roughly 14% on a Y-o-Y basis. While some portion of this was definitely market-driven, we saved a bit more through our own efforts by optimizing fuel mixes, further at both and Hoscott. As a result, our average blended fuel cost was approximately INR33 per SCM versus 30 at INR39 Scm per SCM last year. The gas costs have started inching up from quarter three onwards though.
The go-live of our solar PPA at earlier this year has helped us to keep the power cost lower as well. While a significant portion of these savings were indeed passed on to the markets in-line with the competition to retain market-share, we did retain some piece of this as well, which has helped us improve our overall gross margins to 35.5% roughly, which is an improvement of 1% over the last year. While we continue to support sales via the continued investments on branding, our checks on overall fixed costs have helped, which is why our EBITDA margins have expanded by 2% over the last year. On the balance sheet side, we stay strong as always with very little leverage so-far, which allows us more flexibility to take calculated risk to support business as and when the opportunities become available.
On that positive note, I think we can open the Q&A. Thank you.
Questions and Answers:
Operator
Thank you. We will now begin the question-and-answer session. Anyone who wishes to ask a question may press star and one on the touchstone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we’ll wait for a moment while the question queue assembles. The first question comes from the line of Madhu Rathi from Counter Cyclical Investment. Please go-ahead. Sir.
Madhur Rathi
Thank you for the opportunity. Sir, earlier we used to give volume numbers as well as realization numbers. So please kind of give me the volume and realization for Q3 as well as nine months and similarly for these two periods?
Himanshu Jindal
I missed your name. Can I –? Okay. Yeah, hi. See, I think we mentioned on our last call also, starting Q3 — Q2, we’ve been holding on to volumes as a number. The moment I give volumes, obviously, ASPs are available. Now the rationale for this is two or three reasons, yeah. One, you know we do only trials versus all our peers who are much more diversified. So our revenues in a way are quasi, you know, they in a way reflect what we are doing in the markets. The other point is very strategic. See you see volumes in isolation are not KPIs when you are trying to drive multiple angles, especially premiumization. So you know there have been investments into capex, there have been investments into branding and all of this is being done to change the product mix significantly from where we were. And this is why you’re seeing gains on GBT, especially on Vetrified. Now given too much out in the public domain also sometimes becomes counterproductive strategically on operations on a day-to-day basis, yeah. So I think we are holding on to it for now. Maybe after the full-year results are out, when we publish the annual report, maybe the volumes can come in that time with a bit of a lag. Should we okay? Anything more you want to ask this?
Madhur Rathi
Yes, sir. Sir, the second question was on the margin side. So we’ve constantly spoken about these cost-saving initiatives that we have done as well as branding initiatives that we are doing. So for what kind of margins do we expect like for the Q4 — so from this 4.5%, 5% kind of margin, where do we see our margins going over the FY ’26 and over the next two to three years.
Himanshu Jindal
We need to understand the initiatives that we have taken, whether it’s on the — it’s largely on the variable-cost side, yeah. So we’ve been holding on to cost. We have been optimizing it wherever possible to keep our gross margins intact or to be better than the industry, yeah. Fixed-cost, we have been scaling it up, we have been optimizing it wherever we need to but largely we are supporting multiple initiatives at this point in time, especially on the people on the sales and the marketing front. In the absence of volumes, somewhere the operational leverage is not playing out at the moment for the last few quarters. And therefore, EBITDA is what it is. Yeah, there have been conscious calls like we explained previously also that we are supporting branding much more than before. So there is a hit to the P&L in the short-to-medium term. Let’s see how the margins develop, but I think our gross margins are largely in our control. No figurative guidances for the moment, huh?
Madhur Rathi
Okay, got it. Sir. So can we expect some kind of improvement in gross margin or can we expect this to maintain sustain going-forward?
Himanshu Jindal
It should be in-line with the market better than the market for sure. I think we have been demonstrating that very, very consistently now for the last many quarters.
Madhur Rathi
Okay. Sir, just a final question from my side. Sir, when the industry is not doing well, we are doing marketing and branding initiatives. So at what point do we decide, are we going-in the right direction or what is the minimum return on our investment that we would expect for these initiatives in a market downturn that is going on?
Himanshu Jindal
And the market is not doing well. You are right. Yeah, we are supporting our — we want to continue building the brand image of OBL. The awareness has to be there. What you need to remember like Aditya mentioned, the projects are now going to get into tiling stage soon. Now the point is, should I discontinue these investments in the short-term and give you a joy on the P&L or should I wait support — continue supporting brand awareness with a very clear hope that as and when the projects in the retail demand is back, I am the first one to be picked-up by consumers, yeah. So I think with that belief, I think these investments are continuing, yes, we keep optimizing our spends on a quarter-to-quarter basis on a month-to-month basis, depending on what works, what doesn’t. If there is something — there is some learning coming in, we take that and then decide on the next course. Okay.
Madhur Rathi
Okay, sir. Sir. Thank you so much and all the best.
Himanshu Jindal
Thank you.
Operator
Thank you. Next question comes from the line of Rishikesh from Robo Capital. Please go-ahead.
Rishikesh Oza
Yeah, hi. Thank you for the opportunity. Am I audible?
Aditya Gupta
Yes, please go-ahead.
Rishikesh Oza
Yeah. Thank you. So sir, you mentioned about some marketing expenses that we have been taking. Can you please let us know what the marketing expense we have taken for this quarter as a percentage of the revenues?
Aditya Gupta
See, we are in nine months we are about 4% of our total revenues does the marketing and we are in terms of what exactly contributes marketing expenses. So we have been on TV, including in the last quarter and we have — we do a lot of digital marketing. So all social media platforms see a lot of investment from our side and apart from that, there are investments in-product collaterals in shop branding or does that — does that answer your question?
Rishikesh Oza
Yes. Also, I got a sense that this is over and above-normal marketing expenses because the market itself is down, so you are trying to push more into marketing. Can you just give us a sense what kind of normal marketing expense you would do if once market gets better? Better.
Aditya Gupta
So see, see, we are talking about ratio. So because market is down, a 4% kind of looks still doesn’t add-up to as much as one would want it to be. So the revenues had been better growing at least with a double-digit this thing, we would maybe have taken a call to do more than 4% that what we are doing today. As I said, I think I mentioned that about one, one and a half years back when we started TV. I think actually December ’24 when we started our TV burst first time that we are planning to for the next couple of years for foreseeable future to invest aggressively in the marketing in-building of our brand. I also mentioned that how our GBT growth has outpaced the company growth rates and that’s only been possible because of what we are doing on the brand side to make it more acceptable to a more premium kind of customer. So I forese — our interest is that this will continue. The exact amount would vary slightly depending on how responsive the market condition is. But future — if you’re asking about future listing and all, the intent is to keep investing in marketing as much as possible.
Rishikesh Oza
Got it. Also, sir, we are currently on a — around annual revenue run-rate of around INR700 crores. Would it be fair to say that we have a capacity to do almost around INR1,000 crores of revenues? And also with a lot of real-estate projects coming up and there’s a lot of pre-sales booking which are happening. How do you see us achieving that INR1,000 crore number?
Aditya Gupta
Yes. So actually more than INR1,000 crores, we have enough capacity between our JVs and our own manufacturing to easily hit the number — to cross the number that you have quoted. That’s one. On the second part, there are different strategies which are playing out. That’s why I think in-spite of a very bad market in the first-nine months, we have still managed to keep ourselves afloat. In terms of strategy, we are — we are trying to build-up our sales teams and distribution capabilities in Southern India, South and West, which have historically been very weak for us. I’ve already talked about the product side that this whole premiumization piece is something we are pushing very, very aggressively and there are a lot of new products which have been launched in the last nine months, same size, different designs or new design or new sizes and all, which way which will continue.
Rishikesh Oza
Visibility of when can we achieve the 1,000 crores figure
Aditya Gupta
See, historically we have stayed away from giving any futuristic guidelines simply because ours is a very, very cyclical market and given how much dependent we are as an industry — the domestic industry on exports and what gets — how much gets exported from Mobi and stuff like that. It is — it’s kind of difficult to forecast how things will go. As I said earlier, 2025, we are hopeful that the export scenario for the Indian tile industry will improve, because the freights are lower today than what they were in say September, October, November. And if this trend continues and there is better demand coming up internationally. So a lot of the spare capacity of, which is getting diverted into India, domestic market will kind of go back into exports and the domestic business will bounce. But we will not be giving out any future projections about next year revenues or next quarter revenues.
Rishikesh Oza
Got it. No problem. Just last one question. Earlier we used to do around 8% to 10% EBITDA margin. So just wanted to get a sense that what has to happen that in coming — going ahead, we would again do that 10% margin. I understand that our marketing expense are not going to slow-down. So where would the — how would you bridge this gap?
Aditya Gupta
Yeah. So I think kind of briefly mentioned this, this gap, what you see today we are in the 5% range going up to the 8%, 98% to 10% range is largely the single biggest driver of that would be operating leverage, which is basically our volumes going up with a similar testing. If we kind of go for volumes at very steep discounting to the market, obviously, we are not going to hit that 8% plus margin. But given we have kind of similar margins, similar pricing strategy that we have followed. If we are able to take-up our volumes by about, I would say, 20 odd percent or definitely, 20%, 30%, definitely we would be in the EBITDA margin range that you have talked about.
Rishikesh Oza
Got it. Got it. Thank you very much.
Aditya Gupta
Thank you. Thank you.
Operator
Thank you. Next question comes from the line of Aman Agarwal with Avik Seth Financial Advisory. Please go-ahead.
Aman Agarwal
Very good afternoon, sir. I would like to know that we have expanded capacity couple of last quarters. I would like to know [Foreign Speech]
Aditya Gupta
[Foreign Speech] Historically, ceramic capacity was the bulk of capacity that Orient had. And last three to four years, we have invested significantly. Today, our capacity, including our JVs is upwards of 40 million square meters per year, which I think four, five years back was maybe about 25 to 30 million square meters. So we have added a lot of capacity, which has largely gone into GBT. We have added it in a very cost-efficient manner with hardly any debt on our balance sheet, largely coming out of internal accruals. Unfortunately, the market for the last couple of years has been sluggish, so we have not been able to monetize it as fast as what we would want to. But as the market improves, I think we are in a great position to start doing that to start doing volumes.
Aman Agarwal
So in the capacity on the [Foreign Speech] with along with prices or prices are stable with volume, these were the sort of demand going on?
Aditya Gupta
Aman, I, can you please repeat your question? I’m not very clear.
Aman Agarwal
I’m saying. In the ceramic segment, [Foreign Speech]
Aditya Gupta
So Aman [Foreign Speech] GVT salience is up 13% year-on year, [Foreign Speech] GBT salience and revenues are up only by 1.5%. So yes, you are absolutely right. The ceramic sales in volume terms is lower than what it was last year.
Aman Agarwal
Okay. And my next question is [Foreign Speech] strategy next two to three years down the line.
Aditya Gupta
So Aman, [Foreign Speech] GVT is the thing which is growing. Ceramics is within the market also. Ceramics is not that fashionable and developing category. Ultimately [Foreign Speech] So I see a lot of this ceramic capacity moving into GVT. But as I said a couple of minutes back, we have, over the last three, four years built substantial capacities on GVT, which are today available to us and once the market turns, so I don’t see a requirement for any in-house, you know, a big investments for capacity enhancement. As I had answered the earlier question also that we clearly have enough and more capacity between us and our JVs to cross INR1,000 crore-plus top-line irrespective of whatever mix of GBT and Ceramics you take. [Foreign Speech] definitely that’s a call that we have to take.
Aman Agarwal
Okay. And next question is regarding the industry. Now what’s the situation at regarding the prices and all those things and the export market completing the next previous financial year
Aditya Gupta
Aman [Foreign Speech]
Aman Agarwal
Surely my question is that [Foreign Speech] export market demand
Aditya Gupta
Aman, so I was last almost the whole week I was in Mobi and I must-have met at least some 35 plus various vendors and so people are cautiously hopeful that with these peace talks, the disagreement between Hamas and Israel, they are hoping that some of the bottlenecks, some of the problems which have been impacting freight rates and insurance charges and all will start getting sorted-out. Having said that, there is a lot of uncertainty in terms of how you know these geographies, the market and these geographies will go. Indian tiles are extremely price-competitive and extremely good on quality. So I think that these two things we have got it right. If the markets abroad are decent, I foresee a lot of the capacity, which a lot of capacity, which has been diverted into the domestic market will go back to exports and that will give us — we need what 5% to 10% of the 10% of the capacity or 5% of the capacity to get diverted into export and the whole market can just pivot around domestically.
Aman Agarwal
Okay. One last question from my side [Foreign Speech] in terms of distribution and our presence showing. So [Foreign Speech]
Aditya Gupta
See [Foreign Speech] we are strengthening our sales teams there, adding more people. We have started working on a lot of demand-generation activities there, which is architects with various government departments and even going down to the level of. Unfortunately the market has not very not been very responsive and because of the pressure on discounting, every month the discounting has been more than the previous rates. So dealers have also been kind of cutting down their inventories. So it has unfortunately, all the investment and all the efforts that we have done in the recent past over the last one year since the new DOLA GVD capacity came online has not given us the kind of volumes that we had hoped for. So — but we are continuing on the same three, four activities. We are investing on the brand. We are showing up our teams, we are looking at what kind of customers and what kind of demand-generation activities we go-ahead with and that effort will continue. We’re just waiting for the tipping point to happen.
Aman Agarwal
Sure. Thank you and for your. Thank you.
Aditya Gupta
Thank you,. Thank you.
Operator
Thank you. A reminder to all the participants that you may press star and one to ask a question. Next question comes from the line of Avinash Baskar with Quality. Please go-ahead.
Avinash Baskar
Hey, hi. Thanks for the opportunity. So my first question is just to understand, let’s say, all these players in there, there are no exports so what happens to the market? So do they have a dealer network that they can tap into how do they just the market? Because on one-hand, we are doing a lot of branding initiatives working with dealers to build our capacity. So how is it possible for them to when they exports, is it like taking substantial discount to what the prevailing rates in the market sir?
Aditya Gupta
Yes. So I think, yeah, you said that. So what I’ve understood from your question is how easy or difficult it is for players to dumb their stuff in the domestic market. Is that the question?
Avinash Baskar
Yes. Correct.
Aditya Gupta
Right. So I think it is — it is much, much more easier than what I would have wanted it to be and the two levers that they use are one is discounting, the other is longer credit periods, [Foreign Speech] types and some of them not all but some of them are also not very ethical in terms of compliance will definitely makes make the price they offer even more even more attractive to the dealer. So these are two, three factors. They don’t invest, you are right, they don’t invest in brand, they don’t invest in-building up our sales team and all. It’s largely telephone marketing saying that, okay, this is my late. This is all I’m willing to do for you on the call and all, and that’s it. So a lot of the lower-end of the market kind of gets taken away by.
Avinash Baskar
Got it. That’s super helpful. The second question that I just have is, to understand because I’m little new to this entire industry, should I think of it like the paints industry where the middlemen have a lot of power and ultimately whoever does a good job in engaging with the distributors and the middlemen would be the ones who have a large share of market or again, this is going to be consumer school driven, how should I just think about this entire tile space?
Aditya Gupta
So I think million dollar question, it is not — it is not as evolved as the pinch industry. Now if you see take — if you kind of just ignore the recent happening in the paint industry in the last six, 12 months, typically paint industry was one where the top four players were holding 80% of the market. Versus in the tile industry, if you add-up all the revenues of the listed companies, all of them put together will be about INR9,000-odd crores in a market, which is about almost INR50,000 crores, including exports. So paint industry 80% top 4, 5 players tile industry, 20% top 4, 5 players, so it’s very different that that’s one. I think tile is somewhere in the middle. Unfortunately, once the tile is installed, you don’t see the brand be tiled. That’s not visible unlike in sanitaryway, faucet or anywhere.
So the dealer end of up — historically, the dealer has played a very, very important role in detail industry. What he chooses to stock makes a big difference. The loan of branding has been increasing, it’s kind of becoming more-and-more important because just to differentiate yourselves for you need to have that consumer franchise and I think that’s the part that we have been trying to follow digitally and for the last one year are now using many more marketing, many more media vehicles like TV and that’s the way we are trying to go. It will take time. It will not change overnight. But I think with every passing year, the consumer is getting a lot more severe than what she used to be earlier with respect to totally.
Avinash Baskar
Yeah. Got it. Can I ask one more question? The moderator. Okay, I’ll just maybe squeeze one more in. So sir, just for me to kind of visualize, right? I know that we are doing a lot of initiatives like that quick look, revamping the websites, marketing and all of this. So maybe five or 10 years down the line, how do you see this company and it’s like would we be taking market-share from these unorganized players a lot more or are we going to compete head-on with some of the leaders and then get market-share from them? And where will we be stronger than some of the players and where would we kind of give us telling that, okay, this is not a place that we want to be. And I’m purely talking from five, eight, 10 years whenever all these initiatives fructify and give us some sort of advantages in the market. So just from that perspective, what is like the vision that where this would be where?
Aditya Gupta
So I really don’t have an answer to the question from where we will win more market-share, because unlike, as I said, other industries, our industry is kind of extremely splintered and but let me tell you where we will get our growth from, not from whom will we get our growth, but where will we get our growth from. I think let me talk more consumer than competitor because ultimately that is what makes more sense. I don’t know which competitor will — will I gain more or less from. But I’m very clear in terms of which is the consumer segment that will drive my growth over the next five to 10 years. Both consumer and product.
So on product, I would say it would be a GBT, it would be more of a bigger size labs, the whole premiumization of our product portfolio that is going to be a growth driver for us. From a consumer perspective, I would say that informed B2B buyers like architects, that’s a segment which we have — which we are very weake in is one which is going to contribute a lot more aggressively to us over the next five years. In terms of geographies, I would see both South and West becoming much bigger contributors to our overall revenues and what they are today.
Avinash Baskar
Got it, perfect. Thank you so much.
Operator
A reminder to all the participants that you must press star and one to ask a question once again, a reminder to all the participants that you may press star and one to ask a question. The next question comes from the line of Avinash Baskar from Quality. Please go-ahead.
Avinash Baskar
Hey, thanks. I think I got lucky again. Just couple of more questions from my side. So one that I’m just seeing is on one-hand, we continuously see all this news that real-estate is in an upcycle, there is a lot more flash that are coming up, et-cetera, et-cetera, right, whereas here the building products are not following that. So I just want to understand, is this pricing pressure that we are facing? Of course, I understand there is a component of exports, but have the supply-side also expanded something drastically in the last two to three years or something which is contributing to this entire problem.
Himanshu Jindal
Decide see you’re right in a way the supply gluttered Morbi. So what has really happened over the last four, five years? So while post-COVID the demand came back with a bank, both from retail and projects, you also saw supply coming up thereafter, yeah. So ’23, ’24, a lot of supply glut came into Morbi and also the organized players also have pushed in a lot more capacities, yeah. Today, unfortunately, the way the demand is both on the retail and the project side, it’s not the best, yeah. So oversupply, less demand, both are contributing to what you’re seeing today. Having said that, over the last 12-odd months, very little capacity has come into Morpi. Yeah.
The other side that you should also know, a lot of inefficient whole capacities have been weeded out. So there are more than 300 factories in Morbi, which have been permanently shut-down, okay. There is another thing that you should know and this is something to note, I think the others can take a note as well. What we are hearing is again in the month of February, there is a plant shutdown by Morbi, yeah. So they are planning to shut-down all the GBT lines. Let that happen and then you’ll see. Yeah. So in a way, Morbi is becoming more-and-more clear that they can produce, they can’t sell especially when the export markets are not doing well. So let’s see how the markets evolve.
Avinash Baskar
Yeah, I think that’s helpful. I understood that the supply followed the demand and then kind of — there is a two-way problem. Okay. Thank you so much for that. And the last thing is, so I understood this initiative on this quickly cataloging and working with some dealers to do that. So do those dealers currently do you see them selling more of generally tiles overall and also our brand tiles? Is there like a positive correlation between the investments we make and the results that those dealers derives?
Aditya Gupta
Yeah. So we see — we see a very strong correlation between usage of Quick Look and the business volume of that dealer. We are seeing it across the country the challenge which we are now trying to solve is that how to make Quick Look far more easier for the dealer to use because while we have a large number of dealers, 600 plus who are very active users of this, but unfortunately, we need not 600, we need maybe 1,200, 1,500 dealers to start using it as actively. And our trade is not very tech-savvy. They are actually a tech phobic, if I may say so. So that has been — we got some — we got these first 500, 600 people to use it. But the next 500, 600, we are seeing a challenge to kind of make them comfortable with technology and there are some new product features and all which we are working on. Hopefully, we will launch it in the current quarter to take-away that tech phobia which a lot of people have.
Avinash Baskar
Got it. And so do these dealers are they exclusive dealers or they can be multi-brand dealers of which we are just one of their brands?
Aditya Gupta
So see the way we work is they are they — did they have — should they have given exclusive space, a showroom, what we call an orient boutique to us to display our products. So from that perspective, there would be that there is an exclusive space where only Orient products are being displayed and talked about. They might have another area of where they are selling some other brand that that’s quite possible. But they can use quick room for the other because it’s a proprietary tool where only — which only works with my tile designs and products and SKUs.
Avinash Baskar
And are these tiles like standard for example, let’s say, can I see that you know like tile on Quick quick look and tell, hey, this looks great. What is the cheapest tile you have for this particular marble — I mean like green marble finish this size SKU. So are the SKUs like super standardized, so I can just see it in Quick Look and then sell the lowest-cost ones.
Aditya Gupta
So we offer something like that on our website. So as a consumer, if you go to my website, you can actually get a MOP kind of a figure there. And if on my website, you actually fill-up a very small, simple form, which identifies the PIN code of where you want supplies, then we are able to give you a much, much more accurate cost estimate of what that particular time will cost you at that particular location. This is important because unlike in other categories which are one of the billing from the company is in FOB, but in our case, freight is — in our industry, freight is being paid by the dealer. So we basically work on extractory prices INR300 per square meter or whatever it is and the landed cost to a dealer in is very different versus a dealer sitting in Delhi.
Avinash Baskar
Okay, okay. Cool. That’s it from my side. Thank you so much for patient
Operator
Thank you. Next question comes from the line of Amar Agarwal with Financial Advisor. Please go-ahead.
Aman Agarwal
Yeah. Thanks again for giving me opportunity. You have mentioned that in coming, the GBT line is that will be. Is it because of very lack demand or is it something
Himanshu Jindal
As I try and-answer that Himanshu again as of now, there is this news which is emerging from Morbi that they — they are planning to take a shutdown. How effectively this gets done, we still need to see. In the past, they have generally taking — they have been taking the shutdown in the month of August, yeah. Largely in the last three, four years, you’ve seen that happening there. Now what are the reasons for that? Reasons are very simple. The domestic demand is not great, you take shutdowns because you can’t sell otherwise, right? Why unnecessarily. More importantly, I think last 12 months with the container freight issues with the freights are being so volatile, getting spiked up, coming down, going up again, etc., etc, you know, the exports haven’t happened the way they should have, right? So that’s one reason you know why you know there is no joy producing and storing it in your warehouses, especially for Morbi, yeah, unless they can dispatch, buy, why produce. I think this is a very simple logic that they are following right now and that in a way helps us also.
Aditya Gupta
So Aman, there was the GVT association had met up I think three weeks or four weeks back also. And there was some discussion that in the month of January, they will close GVT units. It did not happen. And so let’s see they might they might come to an agreement for next month or so. We will know only when it happens. But the bigger-picture here is that they are also a kind of not finding it easy. So looking at various alternatives to kind of cut-down their costs. So let’s see, let’s see what they decide as and when it happens, we’ll know.
Aman Agarwal
Okay. I have one last question. In last couple of nine months or years so, our sales from our own tech showrooms, has remained constant like 43% to 45% of our sales. And in this past 12 months also, we have invested aggressively on marketing on through social media and all those platforms. So I would like to know [Foreign Speech]
Himanshu Jindal
You know your voice was not very audible, but whatever little I picked-up, you are right the OBTB per se. Yes, the displays have gone up, not that they have not — they have increased from 350 352 as on March to something like 375 now. So there is a net addition happening for shop. Please do remember, this is the count of the active displays, yeah. So which means there are displays going out, there are new displays getting added at the same time. So the net addition and those who are working for us taking billing consistently, that 375, it’s gone up — marginally as well in terms of the sales that we’ve made from them. Markets you know already have been very choppy, yeah. They are not the best, unfortunately, but let’s see how it goes.
Aman Agarwal
Okay, sure. Thank you for taking the question and well wishes for the business.
Himanshu Jindal
Thank you.
Operator
Thank you. Next question comes from the line of Risha Mehta with Green Edge Wealth. Please go-ahead.
Resha Mehta
Yeah, thank you. I have just one question. So if we see the leader has also gotten into tile adhessive because that also seems like to be like a INR5,000 crore market and a decently high double-digit EBITDA margin. So the question here is that do we then we — are we already present in this segment? And if not, then do we have any plans and why not? If you could just comment on that?
Aditya Gupta
Okay, sir. So we are not present in this segment now, but this is something which we are evaluating and exploring and if, if we decide to launch it we, we will let you know.
Resha Mehta
Sure, thank you
Operator
Thank you. Next question comes from the line of Karan Batelia with Asian Market Securities. Please go-ahead.
Karan Bhatelia
Hi, thank you for the opportunity. Am I audible?
Aditya Gupta
Yes, please..
Karan Bhatelia
Yeah, sir, we’ve mentioned of steep discounts in Morbi in our initial comments. So can we have some quantification, it could be in higher single-digit or in mid-teens and with gas cost now again inching up from December, do we think this discounting has kind of bottomed down
Aditya Gupta
Unfortunately it’s not bottomed-out. Yes, there have been two price increases in the last two, three months 2.5 per cubic meter every time. But that has really not — it has really slowed down the discounting, but it has not really kind of stopped it. And it’s because of this higher gas pricing and all that maybe people in are today talking about curtailing production and taking shutdowns and all. Now to your question in terms of, you know, let’s quantifying it. So I would say that from October, say four months back to now, there would have been maybe some 3% odd change in extra discounting which would have happened. But 2% to 4% you can say that they would be in the last four months or so.
Karan Bhatelia
And YTD could be higher single-digit.
Aditya Gupta
Yeah, YTD would be compared to — compared to FY ’24, yes, YT, would be on this — yeah, YTD would be at least 5%, 6% plus, maybe 5% to 8% or so in that change.
Karan Bhatelia
Right. Thank you. Thank you. That’s it from mind.
Aditya Gupta
Yes, because the product mix keeps changing so much.
Karan Bhatelia
Right, right. Understood thank you.
Operator
Thank you. Ladies and gentlemen, as there are no further questions, we have reached the end of question-and-answer session. I would now like to hand the conference over to Himanshu Jindal for closing comments.
Himanshu Jindal
Okay. Thank you so much for your interest in Patience in OBL. Have a great day. Take care. Bye-bye.
Operator
Thank you. On behalf of STELAR IR Advisors, that concludes this conference. Thank you for joining us. You may now disconnect your lines.