Greenlam Industries Limited (GREENLAM) Earnings Call Transcript & Summary

Ladies and gentlemen, good day, and welcome to Greenlam Industries Limited Q3 FY '25 Earnings Conference Call. [Operator Instructions] Please note that this call is being recorded. I now hand the conference over to Mr. Saurabh Mittal, Managing Director and CEO.

Thank you. Good afternoon, friends, and welcome to the Q3 FY '25 Earnings Call. I'm joined by Ashok, our CFO and Samarth from the finance team. So on the -- I'll speak a bit on the results and on the developments in the company, you probably are aware that we've completed the expansion and the announcement of the commercial production of the particle board plant which happened on 23rd of January. And the product, the equipment -- the production is heading stabilized. And with this completion of the chipboard of the particle plant, by and large, all the CapEx we announced in FY '22 is largely done. So, I think after this, we have no capacity creation pending as of now. So the particle board has started in January 23, 2025. Plywood and Andhra Pradesh Laminate plant started in FY '24, in September and June, respectively. And the Gujarat plant expansion also got completed in FY '24 in May. So now capacity creation across Laminate division, Veneer floor and doors, Plywood, Chipboard is largely done. We'll have some pending CapEx of completion of these projects from several work, some other CapEx work is still pending, which will happen over the, let's say, next 6 to 9 months. So that's on the CapEx side, which means that we have now largely free and just to focus on execution of these projects and winning more business across the segments we are presenting across all the markets. On Q3, because the quarter was slightly subdued in terms of growth, while the Flooring, Door and Plywood businesses did better, the export of Laminates also did better comparatively with slightly over 12% of growth. Domestic Laminates and Domestic Decorative Veneer is where we had sales pressure. And overall, we could just manage slightly shy of 7% growth. While Q3 typically is slightly lower than Q2 always, you see a fast track record, this time, unfortunately, it's been a bit low than the usual reduction. The feedback we get from people is that demand has been slow in the last 3 to 6 months. My sense is that despite a slower growth, we have potentially won more market share in both international and domestic market. That's our sense, but we'll wait for the numbers to come out of the other companies. And some numbers don't come out in a category as you're aware, they'll come out maybe at the end of their [ FY ]. Price realizations, value mix, gross profits, RM costs are largely well maintained, and I think has been passing discipline. I think on those fronts, not much challenges. Raw material costs have, by and large, been stable in most of our segments. In the Plywood segment, costs continue to remain slightly higher, but we had already taken price increases for that in Q2. So from a raw material side, by and large, we think that part will be stable. We have to focus on building more business and more volumes. Freight inwards, freight outward of the import and export side also remain largely stable as of now -- with the truce and with the -- hopefully, the closure of the war between Israel and Hamas, where we think sea freights might further reduce shipping time to several markets might further reduce helping us improve our working capital cycle, reduce some costs and have faster supply chain into the markets in Europe and some other parts of the world. So that's on the supply chain side. Product development, streamlining of manufacturing plants at Plywood, Andhra Pradesh Laminate, by and large, all settled. Factories are nicely settled, the challenge is to build demand. [ Data spirit ] also, by and large, remain under control despite the flatness in the demand. I think we're able to manage that well. Certain inventories are slightly higher, which also includes some Particle Board inventory of raw material, et cetera. CFO will give us -- will communicate on that. So, by and large, on ground, things are under control. Our preparation, our preparedness is going well. And we really hope that we bounce back with a better growth in Q4. And obviously, next year, we expect the better growth coming in. So, by and large, that is from my side. I will have Ashok take you through the financial performance, and we'll be happy to respond to your queries. Ashok Ji, over to you.

Good afternoon, friends. I'll take you through the financial performance. First, for the quarter, on a consol basis, net revenue for this quarter grew by 6.9% on a year-on-year basis, however, de-grew by 11.6% on a sequential basis to INR 602 crores as compared to INR 680 crores in quarter 2 in FY '25. Gross margin grew by 20 basis points to 55% in Q3 this year from 54.8% in Q3 last year. On a sequential basis, gross margin grew by 340 basis points. Gross margin in absolute terms grew by 7.3% to INR 331 crores in Q3 this year as compared to INR 308 crores in Q3 last year. EBITDA margin was down by 200 basis points and stood at 10.6% in Q3 this year, as compared to 12.6% in Q3 last year. EBITDA in absolute terms, de-grew by 10.7% to INR 63.5 crores in Q3 this year, as compared to INR 71 crores in quarter 3 last year. This is due to slower growth in the domestic market. Net profit for the quarter stood at INR 12.5 crores in this quarter as against INR 25.3 crores in quarter last year, due to lower EBITDA, interest -- higher interest and depreciation for new projects and onetime tax for earlier years. Moving on to 9 months. Consolidated net revenue for the 9 months grew by 12.2% to INR 1,888 crores, as compared to INR 1,682 crore in 9 months last year. Gross margin was flat at 52.8%. Gross margin in absolute terms grew by 12.3% to INR 997 crores, in 9 months this year as compared to INR 888 crores in 9 months last year. EBITDA margin was down by 150 basis points at 11.1% in 9 months from 12.6% in 9 months last year. EBITDA in absolute terms, de-grew by 1% and stood at INR 209 crores, as compared to INR 211 crores in 9 months last year. Net profit, de-grew by 31% to INR 67 crores in 9 months this year, as compared to INR 97 crores last year. Now I'll move on to segmental performance. First, the Laminate, which is the major segment for us. For the quarter, Laminate revenue grew by 4% on a year-on-year basis, however, de-grew by 12.9% on sequential basis to INR 520 crores from INR 500 crores in quarter 3 last year. EBITDA margin stood at 13.2%, a degrowth of 270 basis points on a year-on-year basis and a degrowth of 150 basis points on a quarter-on-quarter basis. Products and volumes were at 4.86 million sheets with a utilization level of 79% on the immense capacity of INR 24.52 million. Sales volume for the quarter stood at 4.77 million sheets and boards, a growth of 2.6% on a year-on-year basis, and a growth of 7.8% on a sequential basis. Our average realization for the quarter stood at INR 1,050 per sheet and board, which was marginally up by 1.3% on a year-on-year basis. Moving on to 9 months. Laminate revenue grew by 9.9% and stood at INR 1,651 crores from INR 1,503 crores in 9 months last year. Volume grew by 7.8% on a year-on-year basis. EBITDA margin stood at 13.9%, a degrowth of 180 basis points on year-on-year basis. Products and volumes were at 15.56 million sheets, a utilization level of 85%. Sales volume for the 9 months stood at 14.82 million sheets and boards, and our average utilization in this 9 months was at INR 1,075. Moving on to another segment, Decorative Veneers & Allied. This segment includes Decorative Wood Veneers, Engineered Floors and Engineered Doors. In the Veneer segment, overall Veneer segment revenue of decorative -- in the Decorative Veneer segment, revenue of Decorative Veneer business de-grew by 4% on a year-on-year basis, and de-grew by 9% on a sequential basis to INR 26.3 crores in this quarter from INR 27.4 crores in quarter 3 last year. The revenue of Decorative Veneer business de-grew by 12% on a year-on-year basis to INR 78.3 crores in 9 months from INR 88.7 crores in 9 months last year. Volume de-grew by 7.8% on a year-on-year basis. Sales volume for quarter 3 stood at 0.26 million square meters, and for the 9 months, it stood at 0.82 million square meters. Capacity utilization for this quarter was 27% and for the 9 months, it stood at 28%. Average realization for the quarter was INR 988 per square meter, and for 9 months, it was INR 944 per square meter. Moving on to Engineered Wood Flooring. Revenue for the Engineered Wood Flooring business grew by 13.8% on a year-on-year basis and grew by 7.2% on a sequential basis to INR 15.2 crores in quarter 3 this year as against INR 13.3 crores in quarter 3 last year. For the 9 months, revenue of Engineered Wood Flooring business grew by 15.7% to INR 42.7 crores, as against INR 36.9 crores in 9 months last year. Capacity utilization stood at 13% in this quarter and 14% for the 9 months as a whole. Moving on to Engineered Doors. Revenue of Engineered Doors business grew by 49.5% on a year-on-year basis, and de-grew by 8.6% on a sequential basis to INR 10.4 crores in quarter 3 this year, as against INR 7 crores in quarter 3 last year. For the 9 months, revenue of Engineered Doors business grew by 42.8% to 31 points from -- to INR 31.6 crores as against INR 22.1 crores in 9 months last year. Capacity utilization for the quarter stood at 27% and for the 9 months, it stood at 24%. Moving on to next business segment, Plywood. Revenue of Plywood business stood at INR 30.4 crores in quarter 3 this year and INR 84 crores in 9 months. Sales volume for the quarter stood at 1.16 million square meters and 3.3 million square meters for the 9 months. Capacity utilization for the quarter was at 24%, and for the 9 months also was at 24%. Average realization in this quarter stood at INR 257 per square meter and for the 9 months was INR 248 per square meter, respectively. In the current quarter, working capital cycle stood at 67 days, as compared to 59 days in quarter 3 -- in quarter 2 of this year. Net debt stood at INR 1,012 crores. Thank you. That's all in this. Now I'll open the floor for the question and answers.

[Operator Instructions] First question from the line of Keshav Lahoti from HDFC Securities.

Sir, firstly, I know it's early days, but now the Particle Board plant in submission, how is the initial thing going up? And what is sort of -- what sort of ramp-up you are looking and when you feel this plant will break even? And how is the current market scenario?

I'll take the question on the demand side and all that. The initial feedback from a demand side and signing up of dealers, wholesalers is quite encouraging. So, I think that, that part is pretty okay. And, as I said earlier, the stabilization of the commercial production because of -- it's an automated line, a lot of sync needs to be done from the process control perspective from raw material to the board production, that is underway as we talk. And we should be looking at 40% to 50% kind of utilization in FY '26. And we should be near breakeven at, I think, a 50% kind of utilization revenue.

Understood. Got it. And sir, what about your revenue growth guidance which you have given 18% to 20% for this? Will you maintain that? And how do you see the Laminates margin going forward? This quarter, we have seen some dip. Should we expect that quarter 2 margin will be back in upcoming quarters because we have also taken a price hike in Q2 end?

So, FY '25, I think we'll miss the 18%, 20% growth. We are about 12% in 9 months. And my sense is if things go -- as we see things, probably we'll end the year somewhere in the band of 12%, 13% type of growth in FY '25. FY '26, we maintain that we should be in the band of 18%, 20% top line growth. So that's on that. On Laminates, so clearly, the challenge is more on the volume side, as you probably have seen gross profit for sheet renovation, that's all well. We just need to expand the volumes and then I think the profit or the EBITDA margin, et cetera, should get back to that 14%, 15, in that band, percent. So let's see how this quarter goes, but price realizations and value mix, et cetera, is all going well, as we can see things now.

Okay. One small question from my side. Has the demand picked up in January for Laminates?

So, Jan has been okay. It's not like -- it's not extraordinary, great or negative. I think it's fine.

Better than, I think, what we are experiencing the demand?

I can't say all that a lot. But, yes, it's as of now, going in line with what we think we should be able to deliver in this quarter.

[Operator Instructions] Next question is from the line of Udit Gajiwala from Yes Securities.

Sir, firstly, on the gross margins for the Laminate business. So what can be the steady gross margin that we can look at? It's moved up from 52% to 55% on a sequential basis.

Yes. So this is at the similar level what we are -- we believe that it should be in the range of around 53% to 55% kind of a thing. It should be within that range. Quarter-on-quarter, there might be some variation, but it should be within this band. We believe this is what it is there as of now, can be maintained unless there is a significant jump in the price of raw material, which is not as of now, doesn't look like.

So sir, just trying to understand that what changed on a sequential basis? Of course, our ASP are up, but not so much on a sequential basis. Any particular RM that came down in terms of cost?

Nothing in general in terms of that because in the December quarter what happens, every time we give some year-end bonuses on some packages. So that is the reason that in the December, it has slightly -- go up in comparison to another quarter. Otherwise, it is normally within the same band. That is specifically for the Laminate.

So 9 months on 9 months, we had a similar gross profit of 53.5 lakhs.

Understood, sir. And sir, lastly, in terms of the growth guidance that you have maintained of 18% to 20% for next year, any sense on what kind of blended margin should we look at? Like because Particle Boards will not contribute in terms of EBITDA. But, overall, where you see the margins moving?

So, in the next quarter -- next year, we are hoping to have the breakeven in the Particle Board. And -- but obviously, that may not happen in the first quarter or quarter 1. So that may take time probably in terms of that. So, it s difficult to predict as of now what the EBITDA looks like, but we believe that normal EBITDA in the -- other than Particle Board, we will have a normal EBITDA. Particle Board, probably we have to wait for one or two quarters to watch. But the intention is to breakeven in the next year.

Understood, sir. And just the last, if I may squeeze in for the Plywood segment. How do you see the ramp up happening in ex of the Southern region? If you can throw some light in terms of your acceptability of the product there?

Sure. So if you see Plywood, the feedback, we said last time also on the product quality, on just the performance of the product, I think it's been exceptionally good. And the channel partners and customers who start using up ply, the feedback we've received is that the country is using our plywood. The channel expansion or the creation, I think, up to 80% is largely done in South India. We also started opening markets of Maharashtra in April 2025. That process is still going on. And we are hopeful like this year, we see -- we are already INR 84 crores of sales in ply. My sense is, what we did last year, we'll leave 2x this year. And I think in the coming year, we should double from FY '25 number in FY '26. So, clearly, I think -- because we're going to operate in the segment in the long term, I think the product performance of quality, the secondary working channel partners who have been created, I think it's going in a good direction, maybe a bit slower than what we expected. But I think from a qualitative point, I think it's going good. So -- and we should keep growing this part of our business.

Understood sir. And sir, specifically for ply, what was the timber cost in Q3 versus Q2 for the client?

So, by and large, the wood costs have been similar in our -- because our plant is in South, is in, by and large, at the same average vicinity, say, maybe some local costs might have gone up a bit. We have taken certain increases in Q2, and that's why your gross margin are similar -- a little -- maybe Ashok can add something.

So in the beginning of the quarter 3, it was -- there was some upward movement. But later on, it got stabilized in terms of that. So, as of now, prices have not reversed, but it's not increasing also either. It's stable as of now. And we are hoping that probably if the supply situation increase, so it may have an impact on the price.

And the same trend has been in January as well, right, prices have been stable, is that what it is?

Yes, that's right. Yes.

[Operator Instructions] We'll take our next question from the line of Sneha Talreja from Nuvama Wealth.

Just 2 questions from my end. Firstly, on your FY '26 guidance of 18% to 20% growth. Just wanted to know what would be the proportion of Particle Board itself. Because we had given the guidance, it will be operating at about 40% to 50% utilization. If I make a rough calculation and bring it down to even minimum of INR 300 crores to INR 350-odd crores revenue that you do, are you aiming for like a single-digit -- medium single-digit terms of volumes for your system -- Laminates business? Or am I missing something?

No, no. So you got the question right. We're not aiming to do all that. But our mind is if it doesn't get achieved at times. So I don't know what to do on this front or not. So clearly, that is not the plan. But, yes, considering market situation, so there are unpredictable circumstances which we can't, particularly at the moment, so we've given a broad direction on where the growth numbers sort of reflects there.

So single-digit growth at this point of time for the Laminate business is what I understand or including your other businesses put together?

No. Because we see ply, I think, we should -- decent growth, more Flooring and the Veneer also, we expect decent growth coming in, and likewise for domestic and international Laminates. So, we're quite positive on all our businesses and -- but yes, sometimes things don't go as per plan and then...

Do you want to quantify some numbers out there, maybe in terms of growth numbers for Laminate separately, Plywood separately, or maybe just Particle Board itself so that we can do a dive on certain number?

I think it's very hard to do all that because we can give a broad kind of view. Speak to Ashok off-line on that -- very hard -- so from our side, I said that earlier, most of the CapEx on the capacities have been built -- have been built well and with the product quality, the product programs have also been nicely done. We really hope things will get better from here.

Right. In terms of Particle Board, given we are almost there, any sort of visibility that you have already started getting from OEMs for your product? Any visibility out there? And what is the percentage of imports at this point of time coming up would be coming in the market? Could you plan to replace some numbers there?

So the feedback of the product is on the shade card, range selection, the finish, is quite good. Wherever it's gone, it's not ready data as of now in the market. It will take a few more months to get there. The initial order booking by customers of inventory, et cetera, is also quite decent. So I would say the feedback is positive. I think we will just go, settle a plant and keep delivering. As we know that there are hardly few meaningful committed players in the space in terms of capabilities, capacities, sales marketing team, and we have this advantage of alignment of Melamine chip board. As you know, Particle Board mostly get sold as pre-laminated product, and not the plain board. So this alignment of melamine particle board, pre-lam Laminates, wood, Greenlam, sort of Greenlam compacts. So this whole alignment of product program with the other products which are used in interiors, I think it's a great strength our company possesses. And we hope that we'll use it to the fullest. So I think the feedback as of now, what I know is quite good as we speak.

Understood. And lastly, if at all, I can just ask one more question. Anything on the BIS? We are closer to the date of implementation. Anything that you're hearing on ground? Is it likely to get implemented this time? Seeing some delays. Anything here would be helpful.

I think chip boards have extended, but to answer your other question, imports of particle board is not so much scaling in our country. I don't know the exact number. It's very small. And so maybe Ashok can give that number.

Whatever last two years, got the number, it was in the range of around INR 300-odd crores per annum. Yes, it was INR 300 crores, INR 350 crores in that region only, not very high.

On the BIS, we are hopeful it gets implemented, but I'm not sure whether they will implement or there will be some extension or will there be some extension for some parts of some kind of manufacturers. I'm not so clear on this, but we've heard that it should get implemented. People have boasted its implementation, but I'm not completely clear on the subject.

Next question is from the line of Utkarsh Nopany from BOB Capital Markets.

Sir, my first question is for Laminate segment. So, if you could specify what is the Laminate volume growth for domestic and export market in December quarter? And like what is the reason for sharp contraction in Laminate margin in December quarter on both Q-on-Q and Y-o-Y basis? And this would be our margin guidance for the current March quarter and FY '26 for your Laminate segment?

Yes, Utkarsh, in terms of the -- we don't give the figures separately for the domestic and export. Overall total figure is we have already shared in terms of growth in this quarter. The volume growth was 2.6% on a year-on-year basis.

Okay. So earlier, like we have been specifying the percentage of what kind of growth we have seen in export and domestic markets. So that's what I was asking -- but that's fine. And if you can just mention the reason for the sharp contraction in Laminate margin on a Q-on-Q basis in December quarter, what is the reason for that?

So in terms of -- if you see that the revenue -- Laminate is grown by 4% only in this quarter on a year-on-year basis. So basically, the sales is lower and whereas the operating cost is at an [ air ] level in comparison to previous year. So that is the one of the reasons in terms of that. We expect that sales to correct going forward and which will correct the overall margin scenario.

And so what would be your margin guidance for current March quarter and FY '26 for Laminate segment?

So normal margin, which we have -- if you see in this quarter, we were having around 13% margin. Of course, from the previous year, it was 15.9%. So we are hopeful that it would be in the range of our normal margin, which is around 14-odd percent is the margin which we -- and that can be achievable. Otherwise, that there are some additional expenses in the quarter 3, like the starting of our -- 2 of our depots overseas. So due to that, there were some additional expenses, which going forward will not -- these were onetime expenses. So, going forward, they will come back to normal margin.

Okay. And sir, second question is on your Particle Board project. Like we have spent around INR 735 crores on this project to complete it versus our earlier guidance of INR 875 crores, which was there in last quarter. So what is the reason for a sharp reduction in our project cost? And are we going to enter any additional cost on this project going forward?

Yes, yes. So it's not the change in the spending. It was -- this was the money, which has spent till now. The project even though the commercial production has started, but still the construction and spend is going on as of now. So this will be there till as mentioned by [ Fed ] also, it will be next 6 to 9 months, it is going to be spent in -- it will be in the range of that what we've earlier intimated -- in the range of INR 875 crores only.

Okay. And sir, what would be the budgeted CapEx for FY '25, and FY '26, and how much we've spent in the 9 months of it, by '25?

So, 9 months, we have spent close to around -- including Veneer project around INR 190 crores. We expect including the project, it should be in the range of around INR 250-odd crores. And for the FY '26, including some of the CapEx, which we need to do for the project, pending CapEx for the project, it should be in the range of around INR 100-odd crores.

Okay. And sir, lastly, like if I look at your balance sheet, your net debt to EBITDA has now gone up to close to 4x. This is on a vulnerable side based on December quarter number. So where do you see this ratio shaping up in FY '26?

I think this is at the highest level in terms of the -- what we can see as of now. That is also at the highest level because most of the CapEx has been already been done. And now from the -- and since we don't have any large CapEx going forward, so whatever cash will be generated, that will be used to bring the debt down, and we believe that it will be lower than this year.

[Operator Instructions] Next question is from the line of Rishab Bothra from Anand Rathi Share and Stock Brokers, Institutional equities.

Just wanted to understand what kind of exposure do we have in UP market? And is there a meaningful change with respect to Kumbh? And secondly, what's our exposure to the U.S. market? Will the tariff impact somehow our business in Laminates export market?

So there is not much of an exposure in terms of -- to the UP market. And the Kumbh practically is not impacting us in terms of any additional demand and all these because most of these demands are at the very low end of the segment for the construction material, where our product is not in use in most of the cases. And moving on, in terms of the export, the U.S., which is North America, is not a very significant portion of our export around of our export, global -- total international revenue -- it will be in the range of around 5%, 6% of our overall export revenue, global revenue. We don't -- we are not expecting much problem in that.

Okay. And lastly, sir, if you can tell the guidance for FY '26 and the debt trajectory, how it will pan out, I mean reduction in debt?

Debt, within this year, it will be in the range of -- similar to what we are -- around INR 1,050 crores, in that range only. And next year, it should come down from this level, close to earlier -- it should be within INR 1,000 crores.

Okay. And the guidance, if you could spell out once again, I missed out on that.

It's already told by us, sir, it's around 18% to 20%.

[Operator Instructions] We'll take our next question from the line of [ Bhavani ] from JM Financial.

I just wanted to understand on the Veneer side of the business and Laminates door category. So what has been changing in the door and the floor category, particularly? If you -- can you just once again spell out the door revenue and the floor revenue, if you can?

Yes. So, for the 9 months, the floor is around INR 43 crores and door is INR 32 crores. So total put together, floors and doors are INR 75 crores in these 9 months, which is in the last year, during the same period, it was INR 59 crores.

Got it. Got it. So sir, just wanted to understand that the door business, I know that has been on a lower base, but what has been changing over here? And how one should look at down the line for next 2 to 3 years?

So on the door business, there's decent traction. Our order book and pending orders is quite encouraging. And, so we think the business will keep improving in this 3 months and even in the coming one and two years. So what has changed, I would say, just continuous effort over the last couple of years, where we struggled to bring in the orders, get the product mix right, win on to customers, maybe that's happening as we talk right now. And the full capacity of the door plant in terms of value because either we produce door leads or door sets is something in the band of INR 80 crores to INR 100 crores. So I think we should start hitting -- we should keep improving on utilizing and improving revenues in FY '26 and FY '27.

Got it. So if you can also help me with the guidance on the Veneer and the entire category, if you can just help me also on the margin side, how one should look at on the margin side? I think in Q3, you have done on overall basis in Veneer and Allied products 2.6% kind of EBITDA margin. How one should look at this EBITDA margin going forward?

So, going ahead, our sense is, this will keep improving, like floor has become EBITDA positive in Q3 and in the 9 months. The losses in door vertical has reduced. So we think with now these 3 categories and you probably have noticed capital employed in this category also has gradually come down over the next 2, 3 years. So we're not -- we don't need fresh CapEx or capital in this category. And with business improving with sales volume increasing, clearly also flow down to the profitability and cash flow because we don't need to add much resources in terms of people or marketing and all that. So I think it should keep improving.

In FY '26, can we assume 4% to 5% band of EBITDA level in this category?

Yes, yes.

We'll take our next question from the line of Saurabh Ginodia from SMIFS Limited.

Sir, on an annualized basis, what kind of an increase in the depreciation and interest one should estimate on the new Particle Board plan?

So the depreciation will be in the range of around INR 30 crores to INR 35 crores and interest will be in the range of -- also in the range of around INR 35 crores to INR 40 crores. This is in the -- as of now interest scenario in case the interest rate moves, which is everybody is expecting to go down, so then this cost can come down.

Next question is from the line of Parth Bhavsar from Investec.

My question is related to Laminates exports. So, over the last two quarters, Q2 and Q3, and as we enter Jan, so which are the markets where you see your green shoots, like is it Europe? Or is it U.S.? Or the other way, like which has declined for us year-on-year and even quarter-on-quarter?

So, as you know, our markets are quite disparate because we shipped too many countries because of the nature of the business and different products and different sizes are needed everywhere in different markets. So hard to give you analysis. So, 9 months, I think, export business has grown by about 15-odd percent, 9 months on 9 months. So hard to give you a number, obviously, some markets end up doing slightly better than the other markets, but hard to exactly pinpoint today.

If I had to ask you, specifically -- if I had to ask you about Europe and U.S., like how is the demand looking like over there?

So generally, in the international market, markets are growing at a very small pace or not growing. So in the international markets, in Europe, including U.K., we are winning market share from the local companies because they have not added capacities or they have their own challenges or winning business from somebody else. So I think in the international markets mostly -- the story is more about market share gains and less about organic growth coming in. So Europe has become our largest market, which is all Central, Eastern and Western Europe and U.K. combined. So, we're doing okay there. We're doing pretty okay there. U.S., I would say, we are flattish, more or less.

As there are no further questions, I would now like to hand the conference over to Mr. Saurabh Mittal for closing comments. Over to you, sir.

Thank you for your time and patience and also for you queries and interest in the organization, and we appreciate them. We also would like to -- I think you already know, but we still like to inform you that our company is completing 10 years of listing in March 2025, and the Board has announced one-to-one bonus share issue, and this will be our first bonus share issue by the company. And we would like to thank all of you for your support and contribution through the last decade. I really hope that we continue doing well, and thank you for your time.

Thank you, everyone.

On behalf of Greenlam Industries Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.