Somany Ceramics Limited (NSE: SOMANYCERA) Q3 2026 Earnings Call dated Jan. 28, 2026
Corporate Participants:
Abhishek Somany — Managing Director & Chief Executive Officer
Shrivatsa Somany — Head-Bathware
Sailesh Raj Kedawat — Chief Financial Officer
Analysts:
Navin Agrawal — Analyst
Sneha Talreja — Analyst
Keshav Lahoti — Analyst
Love Gupta — Analyst
Nilesh Sharma — Analyst
Ritesh Shah — Analyst
Rahul Agarwal — Analyst
Presentation:
operator
Ladies and gentlemen, welcome to Somani Ceramics Limited’s Q3FY26 earnings conference call. As a reminder, all participant lines will be in the listen only mode. There will be an opportunity for you to ask questions after the management’s opening remarks. Should you need assistance during the conference call, please signal an operator by pressing Star then zero on your touchstone phone. Please note that this conference is being recorded.
I now hand the conference over to Mr. Naveen Agarwal Head Institutional equities at SKP Securities Limited. Thank you. And over to you, sir.
Navin Agrawal — Analyst
Good afternoon ladies and gentlemen. It’s my pleasure to welcome you on behalf of Somani Ceramics Ltd. And SKP securities to this financial results conference call. We have with us Mr. Abhishek Sumani, MD and CEO Sir Srivatsa Somani, Head Bathware, Mr. Amer Somani, DGM and Mr. Salish Shahj Kidawat, CFO.
We’ll have the opening remarks from Mr. Somani followed by Q and A session. Thank you. And over to you, Abhishek Ji.
Abhishek Somany — Managing Director & Chief Executive Officer
Thank you. Good evening ladies and gentlemen. Welcome to the earning calls of Somani Ceramics for Q3. I’ll take you through the broad highlights and then transfer the call to Mr. Sailesh Khadawat our CFO for the numbers. So the domestic demand saw gradual improvement in Q3 on account of reducing pressure from exports. And also have seen some uptake of the tiles offtake from the building sector where buildings are getting completed. So we’ve been talking about it. So more and more material is going there and we will keep seeing this increased offtake over the next whole year.
We are hoping that the export would be close to the 19 19,500 crore rupee level which is approximately up by about 8 to 9% from last year which is really helping a lot of the offtake from the Murbi industry. For us specifically, sales growth has been 6% in Q3. We would have expected it to be slightly better but it’s at 6% in Q3. Gross margins obviously improved as a result of that by 2.2% from last quarter. Capacity utilization decreased in Q3 YoY from 85 to 80%. But there’s an increase of approximately 4% from 76% on quarter.
On quarter gas price remained largely stable and we are seeing the future of the gas pricing also going to be largely stable. The JV loss is primarily on account of Somani Max due to lower capacity utilization. It’s still continuing although it is slightly lower. And the steps taken to get that into control has been already augmented. We will see production coming in in February and March. That itself would start showing some results in quarter four. And like we had indicated in the last call, in the next year this loss would be brought down very significantly or probably we completely turn around.
The plant depreciation impact was approximately 5 crores in Q3 compared to Q3.25 on account of reduction of life of certain key assets. As far as advertising was concerned, we have been on track and our brand spend is at that 2.5% level. What you see on the report is at 2% because we have reduced the expenditure this quarter of Mr. Salman Khan who is no longer associated with the brand. That’s been a reduction and certain expenses around him has been a reduction. Therefore you see this. But otherwise every other thing has been maintained and this will remain at that 2.5% of sales working capital marginally increased by 3 days as compared to 14 days as compared to FY25 of 11 days.
However, the receivable cycle has been slightly better. And the net dealer addition was approximately 170 in nine months taking the total to about 3,050. And the showroom count is up to 500. There is no change in our guidance. We remain with the same guidance of decent single digit growth for the year. And EBITDA margin should improve by 1.1.5% in Q4FY26. This is as far as the broad highlights are concerned. Specifics of these highlights will be taken by Mr. Shailesh Khadala. So I’m passing the call on to Saylesh.
Sailesh Raj Kedawat — Chief Financial Officer
Thank you Abhishekji. So this quarter our sales grew by 6%. Consolidated sales were the 677crore. There was a 16% EBITDA growth. So from 53 crore it became 62 crores. EBITDA as a percentage was 9.2%. So 80 bits improvement in EBITDA. Our PBT from 19 crore grew to 25 crore. Around 28% improvement in PBT and PAT almost doubled from 9 crore to 18 crore. As far as vertical wide breakup goes, we grew close to 12.5% last year we grew close to around 35% in red segment waterproofing. Vertical tile growth was 3.6% overall growth which is around 6%. The tile segment constitutes now around 83.5% of our overall business. Against 80 85.3% of our overall business. The GDP segment continues to grow. There’s a 4% improvement in DVD over last year. From 38%. It becomes 42% now. The gas prices predominantly remain stable.
Outlook also for the gas prices released. Our debt continues to reduce. Our total outside debt which was 288 crore at the beginning of the year reduces to 231 crore now. Of this 121 crore is the term loan and working capital is at 95 crore. Predominantly this is in two entities, Subha and Max. The term loan of 121 crore gets paid majority next three years by 29. We’Ll pay majority of this debt. And on the max front the plant is getting stabilized. The losses which was around 7.5 crore in previous two quarters have reduced to 6 crore on account of improvement in capacity utilization. Quarter four we should see these losses coming down substantially. We are open for questions now.
Questions and Answers:
operator
Thank you very much, sir. We will now begin the question and answer session. Each participant is requested to limit to a maximum of two questions. Time permitting we shall revert for any further questions that you may have that remain unanswered. Anyone who wishes to ask questions may please press star and one on the Touchstone phone. If you wish to withdraw yourself from the question queue you may press star N2 participants are requested to use only handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue ascends. The first question is from the line of Sneha Talreja from Nuvama. Please go ahead.
Sneha Talreja
Good evening sir and thanks a lot for the opportunity. There’s a couple of questions from mine. Firstly related to domestic demand. You have mentioned in your PPT that you know you are seeing signs of export demand improving and domestic oversupply easing. But can we actually see some light at the end of panel in the domestic market itself? Because the volume growth still seems to be on a muted side.
Abhishek Somany
Yes, there is a delight at the end of the tunnel. We’re seeing better walk ins in the market recently and also spoken to many dealers. So there’s been an improved walk in. So there is clearly a light at the end of the tunnel.
Sneha Talreja
Sure, that was in the retail side. Can we also get some flavor on what’s really happening with the projects market? How has the demand been for projects for you? Where do we stand now as a percentage of sales and projects.
Abhishek Somany
So retail still is significant portion and it will remain so. Although the project is increasing. But projects don’t increase overnight. It’s a whole cycle of getting it approved and sample flat and then immaterial going in the projects over the next two years. So currently our retail is approximately 77%. 77, 78%. And this probably in the next year would be. You would be looking at about 75%. Which means that the private project would go up and also the government would go up a little bit.
Sneha Talreja
Understood. Understood. And lastly on the debt repayment cycle, could you repeat the number and where would we see this number falling to? In effect 27. Some.Some guidance they would be
Abhishek Somany
That number right now. What would it fall to?
Sailesh Raj Kedawat
The outside debt today is 231 crore. What we pay in this year is around 9 crore. And we pay around 70 crore in FY27 and 28. So this number will come down to around 50 crore at the end of FY28.
Sneha Talreja
That’s helpful. Thanks. Thanks a lot team and all the very best.
Sailesh Raj Kedawat
The working capital remains there. There’s a small amount of working capital which we utilize in our subsidiary. So that will remain. That’s around 100 crore to 160 crore.
Sneha Talreja
Sure. Thanks.
operator
Thank you. The next question is from the line of Keshav Vijay Ratan Lahoti from HDFC securities. Please go ahead.
Keshav Lahoti
Thank you for the opportunity. Currently how is your gas and propane mix? Right now.
Abhishek Somany
We hardly using. So it depends. In the north plant we’re using natural gas. Three different kinds of gas which we get. And also we’re using a lot of biofuel. In the multi plant we are using depending on which month propane is cheaper and which month gas is cheaper. They’re both fungible. But currently we are on. I’m not sure actually it’s exactly the same price. I don’t remember exactly whether we are on gas or propane. And in the south plant we are completely on natural gas.
Keshav Lahoti
Understood. And if I remember correctly earlier we were sort of expecting match to break even in FY26. And now the revised guidance stands at Q4. There would be a substantial reduction in loss and we possibly might have some losses in FY27 also. So it looks like it’s taking, you know a lot more than what we anticipated to stabilize and how.
Abhishek Somany
We had mentioned that in FY26 the losses would be in the same range. In FY27 we had said that the losses from 2526 crore will be down to below 10 crores. And we continue with that guideline and we will demonstrate that from a moving average in quarter four itself. So you would be able to extrapolate what that would be next year. Obviously, quarter one is a poor figure. It’s the lowest figure. But you would be able to see where we’ll be. We’re very, very confident of lowering these losses or turning around in FY20.
Keshav Lahoti
Understood? Got it. One last question from my side. You were planning to take some sort of price. Like how is that shaping up?
Abhishek Somany
No, we had not really set any price hikes. We had said that we will control more on discounting. That is work in progress. As and when the market opens and becomes slightly better, we get a better reason to reduce the discounting and hence increase the prices. From that point of view, we’re continuing to do that alongside value addition, which is happening. This is as far as style is concerned. Of course, in sanitary wear, we are taking a fairly substantial. Not in sanitary wear, I’m sorry, bath fittings, we are taking a very substantial price increase. That would be known on the 1st of February. I would not wish to talk about it right now. Which will be largely in line with the industry of the leaders.
Keshav Lahoti
Understood. Got it. That is helpful.
Abhishek Somany
Thank you so much.
operator
Thank you. The next question is from the line of Love Gupta from Counter Cyclical Investments. Please go ahead.
Love Gupta
So I’m seeing the gross margins have reduced from like 60% plus levels during the FY 1724 period to now.
operator
I’m sorry, Mr. Gupta, your audio is not clear. Can you please increase the volume a little bit?
Love Gupta
Hello, can you hear me now?
operator
Yes, sir. Please proceed.
Love Gupta
So your gross margins during the FY17 to 20, 2024 period were upwards of 60% and have now gone down to like 50, 55% despite introduction of like higher margin products like GVT dials, et cetera. So what could be the reason for this?
Sailesh Raj Kedawat
Two things. One is when you calculate gross margins, you have to calculate taking power and fuel cost. Also. I think you’re only calculating it on material cost. So that’s one correction you have to do. What has happened from 17 to 25 is there’s a substantial reduction which has happened like to like if I do inflation adjustment, the prices of price have actually not gone up. The cost of.
Abhishek Somany
Density has come down.
Sailesh Raj Kedawat
It has come down wherein the cost. Of material has not come down. Though companies have done lot of R and D, we have done lot of R and D and we have reduced cost of input material. But the reduction in cost is not in same proportion as the prices of sites that have come down. So you see a reflection of that in margin and that ultimately gets reflected into EBITDA numbers also. What we are doing is we are on trajectory now wherein we have worked on our cost. We are also working on the product mix bringing more valuation. So you see our EBITDA coming up. I think that’s the correct metrics to. See and not the gross margin. And when you are checking gross margin please adjust it for power and fuel also.
Love Gupta
And also you know ROCE for that period was upwards of 20%. So this would be the same reason for like the declining ROCE numbers.
Sailesh Raj Kedawat
Yeah, of course the absolute profit is down. ROC roe is going to come down. It’s ultimately a function of profit and capital. Employee.
Love Gupta
All right, thank you.
operator
Thank you. A reminder to all the participants that you may please press star and one to ask questions. The next question is from the line of Nilesh Sharma from Anantanath Skycon Private Limited. Please go ahead.
Nilesh Sharma
Hello. Thank you so much. And sir, can you please tell me when we can see the max plan will be neutralized from the loss perspective.
Abhishek Somany
Can you please repeat? Max plant getting replaced. Sorry, could you please repeat?
Nilesh Sharma
So my is when we can expect the max plant loss can be neutralized and we can see at least break even point from that plant.
Abhishek Somany
Hopefully 18 months from today. But we will be able to reduce the loss of 26, 27 crores this year to less than 10 crores for next year for sure. So that itself will add to EBITDA. And this is I’m talking which is something which is absolutely a given. We would try to achieve better than that. And next year 27, 28, this would be in a profit situation.
Nilesh Sharma
Okay sir, our EBITDA margin is slightly improved in Q3 which is 9 more than 9%. So can we expect it is on a growth trajectory or we can also expect in Q4 double digit.
Abhishek Somany
As I mentioned in my opening remarks, we are expecting another percent percent and a half in Q4.
Nilesh Sharma
Okay sir. And sir, any guidance of volume increment?
Abhishek Somany
So there is slight improvement as far as volume is concerned. I would not want to quantify it specifically but there is slight improvement as far as volume is concerned and you can see that in our capacity utilization.
Nilesh Sharma
Okay. Okay. Thank you sir. Thank you so much.
Abhishek Somany
Thank you.
operator
Thank you. The next question is from the line of Ritesh Shah from Investec. I’m sorry. The next question is from the line of Rahul Agarwal from Ikigai Asset. Please go ahead.
Rahul Agarwal
Hi Good evening, thanks for the opportunity. So just two questions further on to the fuel mix side you mentioned in north plant you have natural gas and biofuel and more B you have propane and gas. I believe there is some spike in Henry hub pricing purely because of snowstorm and that should have some, you know some linkage with the natural gas which you’re sourcing in the northern plants. So just wanted to understand does that impact doesn’t impact the short term, long term contract. Second also is that Gujarat Gas I think cut pricing for gas for Murbi I think last month. So net net what is really happening on the fuel side? A bit more detail will really help if you could just explain that. Thanks.
Abhishek Somany
Sure. So we have four kinds of formulas in the north plant. Therefore we are kind of insulated when the Henry hub goes up. So we have a Henry hub we have the radcast piping which is linked to Brent sorry is related to crude. Crude it linked to crude which is from the Qatar gas. We have JCC and we have the HPHT gas. So Gale has basketed all of that. So one going up, the other becomes cheaper. So therefore we’re kind of insulated as far as that is concerned. So Henry up 50 degrees spiking is really not mattering to us as we speak.
This is as far as the Qatar plant is concerned as far as the Gujarat plant is concerned which is the our plant in Ahmedabad city and also Morbi both put together there has been a slight reduction in prices by rupee and a half. But now propane and natural gas is kind of the same. So no major difference. It went up by a rupee, rupee and a half. Now it’s come down by rupee rupee and a half. So the total difference is approximately three rupees from from a swing point of view from a quarter and a half to two. So no major major difference.
Rahul Agarwal
So let’s say third quarter 26 what was the average fuel price for Somani overall for own manufacturing.
Abhishek Somany
This is only gas pricing. This does not include anything which we do on on the biogas. So some of the industry people report it as a consolidated price where they mix up the biofuel and the natural gas pricing. What I’m giving you is only the gaseous fuel which is our south plant, west plant and north plant which we get from Gale, jspc, ioc.
Rahul Agarwal
Right. And this number you’re saying the swing factor was 3 rupees SCM so we should see 41 rupees for the fourth quarter. Is that understanding Correct.
Abhishek Somany
No, we should see approximately 42 and a half, 43 as a blend of all three locations. Because the other locations, you know, Gujarat going down, the other locations, if they go up, then it kind of compensates. So we should look at it about 42 and 43 and not 41.
Rahul Agarwal
Okay, get that.
Abhishek Somany
There’s no significant impact for gas. If you were only a 4B player, then there was a difference of about 3, 3.5 rupees. But because we’re a national player and we get gas in the south and the north and the blended does not move that much.
Rahul Agarwal
Very clear. And secondly, you mentioned about price hikes happening on the bath fitting side. This is largely driven by the brass cost. Or is there anything else?
Shrivatsa Somany
Yes, Shiva, it’s largely driven by the brass cost.
Rahul Agarwal
So what kind of inflation are we seeing on the brass side? I’m sorry, pardon me, I don’t, I didn’t really follow that. But just in terms of ballpark, what is the inflation you’re seeing on the brass side?
Shrivatsa Somany
Yeah, so I mean, if you give you an idea, in April we were buying brass around 570, 580 per kilogram. Now we are doing 780, 770, about 20 to 26.
Rahul Agarwal
And this entire, this entire pass through is not really happened since April. That’s what you mean? Hello.
Abhishek Somany
Sorry, can you repeat.
Sailesh Raj Kedawat
Pass through since the increase?
Abhishek Somany
Yes, because the increase has not been. It’s been a gradual increase since then and there is a very large player in the industry which. Without which the prices don’t increase and they have increased prices only 15 days ago and therefore everybody will follow suit.
Rahul Agarwal
Okay. Okay, got it. Very clear. Thank you so much and best of luck.
Abhishek Somany
Thank you.
operator
Thank you. Participants, you may please press star and one to ask questions. The next question is from the line of Ritesh Shah from Investech. Please go ahead.
Ritesh Shah
Hi sir. Thanks for the opportunity. Couple of questions, sir. First is how do we measure our distribution efficiency? Is our distribution strategy very different from the peers and have we already resorted to bundling given we have new growth engines already in place? That’s the first question.
Abhishek Somany
No bundling. What? I’m sorry .
Ritesh Shah
Bundling. say tile other service with tiles. When we do, we incentivize the the channel to cross sell or to sell together.
Abhishek Somany
Right. So I think there’s two parts to this question. How do we do the efficiency and the bundling. So the efficiency part obviously is a legacy cost company. We’ve been dealing with dealers and not distributors. So it is different from various payers. I Don’t know which payers you would look at. But there are some people in the industry which have larger distributors. Which means that let’s say they have more dealers of a larger size. We have more number of dealers, but smaller in size. One could argue which is a better way. I personally believe that over time tested is that you have many more outlets even though they are small.
Because in case a proprietorship has to go down, you are well diversified. There are some other people in the industry which are newcomers. They are working with the principle of one dealer in one town that has certain limitations. Once they grow beyond the size of that dealer, then they will have to make more dealers, which means the specific dealer which was enjoying a lot of the margins would go down and then they would be in the same boat as usual. So our principle and our efficiency, how we measure this is how many net additions we made to our Platinum Club, which is an X number of crores and above how many net additions we have made to our Gold Club, which is slightly lower than the Platinum Club.
And there is another club which is lower than the Gold club. So how many additions which we made? That is one matrix. And what is our total sale from these three club dealers as part of our total sale and how we are increasing that. The second matrix which we do, the efficiency is when we add a dealer. For example, if we add 100 dealers in the entire year. I’m only giving an example, if we add 100 dealers in a particular year, what is my sales contribution from those new 100 dealers? And how do we see those new 100 dealers going forward in the next year? The third matrix is that how we are seeing our exclusive dealer as to how many of them are growing and at what pace they are growing.
The other matrix is of course to basically see some dealers which cease to be our dealers, as to why they cease to be our dealers. So these are the four metrics which we use on a continuous basis to see how we are moving in the past. This is the first question. The second question is bundling. Yes, we completely try to bundle as much as possible. However, as far as sanitary ware is concerned, all the other brands in India are also legacy brands. The top three brands of India and the other two foreign brands of India which have been in India, which have been the around for the last 25, 30 and the other legacy brands have been there for 60 and 70 years.
They have the same relations with the dealers, which means that it is that much more difficult for me to get that sanitary ware counter right. Now our growth has happened where approximately 25% of our tile counters are bathware counters. But now that we’ve grown very large in bathware and formed our relations and proven to the market that we are excellent in quality and excellent in product, it is becoming easier for us to bundle this going forward with our tile dealers. The same is the case with adhesives. Again, it is becoming more and more easier for us to bundle this with our tile dealers. So yes, our endeavor is to bundle as much as possible and milk the same counter as much as possible. I hope I’m able to answer the questions.
Ritesh Shah
Yes, thanks for this. So just a clarification on the first part of the answer. Are there any variables beyond the spread of dealers or something like turnaround time or say, basically, does the material directly go from the factory to the dealer or do we have depots on a Pan India basis? And is that business model consistent with other players or is it any, any different?
Abhishek Somany
Yeah, kind of consistent with the other players. It goes from factory directly to dealer. There are some depots we used to have pre GST. We used to have 19 depots and now we have how many? About four. We have four depots and that also of very small sizes. What we are keeping in this depot is a high value product where we can afford the depot. That is how it is. So from scratch, 19 depots, we are down to four depots. And I don’t think this is really going anywhere. It is going to remain there. Maybe another depot will come up somewhere where we want to keep more value added product, but that’s it. So yeah, it goes largely from factory to dealer.
Ritesh Shah
Perfect. This is helpful. So second question. You did touch upon discounts and you indicated that probably we will revisit it in next few months. But sir, what do we make of competitive intensity in the marketplace? And there is a specific player called infra market. I think they have tied up a lot of capacity in more B. How do you see that influence in the local market? Has it made any difference to us?
Abhishek Somany
No, not at all. We don’t see them in the market. We haven’t seen any competition from that. I can take that offline. I have my views on that which may not be right to say on an open call.
Ritesh Shah
Perfect. Thank you so much. All the very best, sir. Thank you.
operator
Thank you. Before we take the next question, a reminder to all the participants that you may please press star and one to ask questions at this time. The next question is from the line of Nilesh Sharma from Anant NATH Skycon Private Ltd. Please go ahead.
Nilesh Sharma
Sir. Does the EU India FTA structurally improve the realization for more B exporter or it will be at largely from volume LED opportunity and how this deal eventually impact Somani ceramics.
Abhishek Somany
So first of all, the EU deal will take more than a year to come to light. Let’s see what happens. It’s too early. It’s just an announcement. Nothing really known on that. But I think the volume which has grown up grown in more B from 16,500 crores to about 19,19,500 crores this year of export. That is clearly benefiting the Murbi industry. Secondly, I think what will benefit more and is likely to happen faster, faster than the EU deal is the Chinese apparently have reduced their VAT on tires. I’m not sure whether it’s 9% or 12% but they’ve reduced or taken off the VAT which means that they have become that much more expensive.
So now the companies there have two choices. Either to absorb that cost or then partially absorb the cost and pass it to the consumer. Any which way, India will become slightly more competitive in the export market wherever China was very significant. So that’s something which we think will benefit the Indian industry. As far as Sumani ceramics is concerned, we don’t export very much. It’s only about a cent and a half to two we export and we think we will be at that figure only. So these strategic falls of EU et cetera doesn’t really affect Sumani ceramics immediately.
Nilesh Sharma
Okay. My concern is just to understand if the more we export increase then it will eventually better for us.
Abhishek Somany
Yes, of course, absolutely. With every time export increases is better for the domestic industry and the domestic players because their offtake then happens in the export market. So you’re absolutely right on that effect.
Nilesh Sharma
Okay, so we can expect the Chinese China eventually reduce the price and so that export will be increased and that eventually impact so many at positive front.
Abhishek Somany
China will increase the prices, not reduce the prices. They will increase the prices. Their VAT has gone so they become 9 to 12% less competitive.
Nilesh Sharma
Okay, okay. Okay. Okay, sir. Thank you sir.
Abhishek Somany
Thank you.
operator
Thank you. The next question is from the line of Keshav from HDFC securities. Please go ahead.
Keshav Lahoti
Hi, thank you for the follow up. So how much was the ad spend for this quarter versus last year and what is the target for this year?
Abhishek Somany
Yes, sure. So if you remove the effect of the star which we do not have associated with us anymore and the expenses around that, if we remove that because that happened in this quarter, then it’s 2.5%. If we take that into account then it’s 2%. But this will catch up to 2.5% and we will maintain an ad spend of 2.5%. That’s where we are.
Keshav Lahoti
Sorry I missed you. So you said it will be 2.5% before that. I missed you. What you said.
Abhishek Somany
What I said is that this year, this quarter, the effect of the superstar which we had associated with us, we know that’s no longer associated. So that money has been not paid out and the expenses around him has not been paid out. Therefore you see a slightly lower ad expense. But other than that it will catch up at 2.5.
Keshav Lahoti
Understood? Got it. And one last question from my side. The depreciation has got in stock. So this will be the going forward 100 of 28 crore per quarter.
Abhishek Somany
Yeah, yeah. This is going to be a Runway.
Sailesh Raj Kedawat
It’s going to be between 26, 27 crores. That’s going to be a stable run rate now unless and until we do some more significant additions. We adjusted life of some assets in quarter four of last year. That’s where you see an increased depreciation number with corresponding quarters of previous years. But it’s going to be a stable number.
Keshav Lahoti
Got it. Okay, thank you. That’s it.
operator
Thank you. You may please press star and one to ask questions at this time. Ladies and gentlemen, as there are no further questions I would now like to hand the conference over to Mr. Somani for closing comments. Thank you. And over to you sir.
Abhishek Somany
Thank you everyone for patiently listening. I think we are looking at better times. This quarter should be a good quarter on all accounts. We should be better in sales and also we should be able to reduce the losses of max. And very confident of increasing our ebitda. And in line with what we had discussed in our meeting and also in our calls, previous calls and also this call. So if this quarter goes well, it gives us that much more confidence for the next year where no investments are coming up. We will be better in capacity utilization, loans will be paid down and also better on value addition and in our asp. So overall looking good after a long time. Very confident of that. Thank you so much. And until we meet next time for the annual earnings call. Thank you.
operator
Thank you members of the management on behalf of SKP Securities Limited. That concludes this conference. Thank you for joining us ladies and gentlemen. You may now disconnect your lines. Thank you.