Greenpanel Industries Limited ($GREENPANEL)

Ladies and gentlemen, good day, and welcome to Greenpanel Industries Limited Q4 FY '26 Earnings Conference Call. Please note that this conference is being recorded. I now hand the conference over to Mr. Gavin Desa from CDR India. Thank you, and over to you.

Thank you. Good day, everyone, and thank you for joining us on Greenpanel Industries Q4 and FY '26 Earnings Conference Call. We have with us today Mr. Shobhan Mittal, the Managing Director; and Mr. Himanshu Jindal, the CFO. Before we begin, I would like to share that some statements made in today's discussion may be forward-looking in nature and may involve risks and uncertainties. A detailed statement in this regard is available in the results presentation, which was shared with you earlier. I would now like to invite Mr. Shobhan Mittal to begin the call. Over to you, Shobhan.

Thank you. Good evening, ladies and gentlemen, and welcome to our Q4 and annual FY '26 earnings call. The year '25-'26 has been a transformational year for Greenpanel. As you are aware, we added a new MDF manufacturing line at Andhra Pradesh end of FY '25 and with a long-term strategy in mind, introduced changes to reengage and reenergize our people, our customers and our vendors while simultaneously renovating our ways of working. On the people front, we brought in Prakash last year in March to lead domestic sales and got Himanshu on board later in Q1 to lead finance. The strategy clearly shifted to customer excellence and volume scale up, supplemented by drive to move to a leaner cost base in manufacturing. This was a key reason for us growing more than the weighted average volume growth of the industry despite us having a larger base leading to a turnaround of both operational and financial parameters over the last 9 months of FY '26. During the course of the year, a number of initiatives were undertaken to support sales. Top channel partners were facilitated in Bali in Q1, followed by the announcement of a new foreign travel scheme in the second half FY '26. Ft engagements were amplified cumulatively more than 21,000 participants such as carpenters, contractors and subdealers were connected with Green Panel under this drive. Revamped loyalty program app was launched in June 2025. The Mi 2.0 app provides a seamless experience for our partners and the associated [indiscernible] and the active user count has increased since then to more than 18,000. New high-value products like ACWR doors, MDF and fire retardant MDF were launched in the first half of the year, followed by the launch of the country's strongest toughest and heaviest balling waterproof MDF ball in the second half. These new product launches reflect our commitment to the changing customer needs and also support our ambition for more value and margin-accretive businesses in the future. Coming to sales numbers. We achieved MDF domestic volumes growth of 29.5% year-on-year in quarter 4, while the full year growth was 16.9% exports which was significantly impacted in March after the onset of the war in the Middle East, the total MDF volumes for quarter 4 grew by 27.8% year-on-year in the quarter and by 12.9% year-on-year for the full year FY '26. One thing I wish to highlight is that despite the impact on exports in quarter 4, our full year volume numbers are still broadly in line with the revised guidance that we had shared in middle of last year. MDF realizations were lower by 3.6% over the last year in FY '26. Some portion of this was also attributable to the increase in OEM sales apart from the change in product mix post addition of the new plant at AP. The high-value MDF product mix for the year being 43% in volume terms and 55% in value terms. On the plywood side, we had a strong growth of 18% in volumes in quarter 4 as a result of which on a full year basis, we closed the year almost flat over last year. On a combined basis, revenues for the quarter grew to INR 391 crores, a growth of 15.5% over the last year, while the full year sales were at INR 1,502 crores, a growth of 7.8% over the last year. Consolidated operating EBITDA, excluding the impact of currency movement on the euro borrowing for the new plant and the one-offs impacting the results was INR 35.4 crores or 9.1% of revenues in Q4, while the full year number was INR 132.7 crores or 8.8% of revenues, again, in line with the revised guidance shared in November 2025. Coming to what's happening currently in the sector and the outlook for FY '27. The ongoing geopolitical situation in the Middle East is the biggest variable at play right now. Supply chains have been impacted adversely, leading to significant escalation on costs front, especially in case of chemicals, which is 40% to 45% of our raw material costs. Timber costs have, however, continued to remain stable, though over the last 3 to 4 months -- through over the last 3 to 4 months. Like others, we do have announced price increase of 15% to reduce the impact on our margins. On the supply side, the overall MDF capacity in the country is 4 million to 4.5 million cubic meter per annum, depending on the actual product mix offered by the suppliers. There are a few capacity additions announced already, some portion of which is expected to become operational by mid end of the current year FY '27. Domestic demand -- MDF demand is expected to continue at a healthy pace of early double digit to mid-teens. On our side, we operated at 60% capacity utilization in quarter 4 FY '26 and thus have a significant headroom available for organic growth next year without any additional material investments. However, given the uncertainty around the war in the Middle East, I will be optimistically cautious at this point of time. So instead of giving a figurative guidance for FY '27 for the moment, what I can share is that we will continue to pursue volume growth as the primary goal this year with a clear intent of regaining increasing our relative market share while trying to maintain or improve our margins over the last 2. With this request, I request our CFO, Himanshu Jindal, to look for the financial and other updates.

Thank you, Shobhan-ji. Good evening all. Since a lot of [indiscernible] by Shobhan-ji [indiscernible] I keep my opening remarks brief as tie. So while the operational EBITDA was 4% in quarter 1 with the change in our approach over the next 3 quarters of the last fiscal, both in terms of the volume [indiscernible] year volumes were roughly the domestic volumes by roughly 26% and the total volumes by 23% in the last 9 months of the last fiscal. And with a clear focus on manufacturing costs and [indiscernible], we were still able to manage a full year operational EBITDA of INR 132.7 crores, which is 8.8% of our revenues. Exceptions, however, clearly weighed [indiscernible] our reported EBITDA net profits. The adverse change rate movement on our outstanding euro-denominated borrowings had an impact of INR 6 crores on the bottom line during quarter 4 with a cumulative impact of INR 49 crores for the full year. Apart [indiscernible] there was impact to profitability as well on account of: a, the inefficiencies during the stabilization phase of the new line at [indiscernible] which was largely [indiscernible], basically, power and fuel presumption being higher than what it should have been and the higher interest in depreciation excess post capitalization of the new line. Counting these in, our reported EBITDA for the full year was INR 94.2 crores or 6.3% of our revenues. The PBT was negative INR 43.8 crores, and the PAT was negative INR 29.1 crores. On the balance sheet side, we have continued to stay strong at [indiscernible]. Our DSOs at 21 days is the best in the wood panel industry and reflects our very strong brand positioning. Our core cash conversion cycle is up 38 days for the full year. Again, something which shows our commitment to financial prudence while simultaneously maintaining a double-digit volume growth of our business at the same time. The leverage remains comfortable as well. Our debt is further into this year, although because of the unfavorable FX change, the reported net debt was INR 156 crores at the end of March. I think we can now request the moderator to open the Q&A, please.

[Operator Instructions] The first question is from the line of Keshav Lahoti from HDFC Securities.

So guidance for efforts [indiscernible] be your volume growth? And what sort of margin [indiscernible] Am I audible?

Mr. Lahoti, you are sounding a little muffled. Can you please check?

Is it better now?

Yes, sir, please go ahead.

So my first question is, what is the FY '26 guidance for IND volume growth and margin?

Himanshu, do you want to get it?

Yes. I'll in fact, repeat what you said [indiscernible] opening remarks. So see, what we are expecting, Keshav, is that this industry will continue to grow at a healthy pace, yes, which is early double digits to, let's say, something like mid-teens. What we are saying is because there are multiple variables playing out at the same time now, it's a little difficult for us to articulate in terms of what the growth numbers could be. But we are going to be with the market or better than the market. So which means we will continue to pursue our volume strategy growing more than the market, hopefully, retaining our market shares or bettering the [indiscernible] On margins, you know where we were in quarter 1 and from there, we have grown and we've come to something like high single digit for the full year. The [indiscernible] be to maintain or even take this up. Obviously, you need to see more and more profitable growth, value-accretive growth coming into place. But times are a little uncertain for us to give you a formal figure it's becoming a little difficult right now.

Okay. [indiscernible] the 15% price hike which you have taken in MDF, as it adopt the entire cost inflation or more price hike you need to take?

No. So that has -- so that is just about absorb our current cost inflation. However, what we -- I mean, of course, we are waiting and watching if there are any further significant cost increases that come into play. However, because of the muted sort of demand scenario at this point of time and the competitive pressures. We are already seeing slight discounting already happening in the market from that 15%. So I won't say that the complete effect of the 15% is already in place. But the 15%, if implemented properly, will cover all the cost increases that have taken place so far.

And how has been the change in this quarter because such as a sharp price increase as the demand impacted?

Sorry. Sorry, Keshav, again, your line is not very clear. I can't hear you.

So I was saying it's already -- we are in mid-May, and you have taken such a sharp increase. So how has the demand responding to this? .

So before price increase in March, there was, of course, a lot of stocking that has happened towards the end of the financial year in April was expected to be a muted month. And now I would say that Finally, people are coming to terms with the cost increases. We also see that building materials in general across sectors. There have been substantial price increases. So unless there are some critical only the critical or the priority projects are actually executing people who are not in a rush to complete projects or to undertake new projects are sort of holding back on this. So that's where the situation remains. So I won't say that the pricing increase has fully been accepted and the demand is completely back to normal.

One last question from my side. If I see your volume even the domestic sales growth sequentially, it is just a flattish to marginal degrowth in Q4. When the stocking of happened in March, [indiscernible] terms of volume on the domestic side.

Himanshu, can you answer that?

Yes. Sequentially, domestic was flat, yes. This is correct. But there was obviously stocking happening in the month of March, but just before the price increases were implemented.

So that is what I'm trying to understand why the volume is [indiscernible] is a strong quarter with stocking happening. So what [indiscernible] on your numbers [indiscernible]

Because of certain -- I mean there was a loss on the export side of our volumes for the whole of March, we were not able to sell any exports.

Just on the monitor side, I was just talking on the domestic side and [indiscernible] I'm not talking about sort of total volume. .

See, if you look at -- even from a last year perspective, Keshav, my volumes on the domestic front comparing Q4 to Q3 were relatively soft [indiscernible] who intent was to build our volumes continue at least with the RMS games that I have seen throughout the last 6 months, yes, prior to Q4 kick. I think overall, if you look at the 9-month holistic picture, see quarter-to-quarter, there could be aberrations. I think 9 months is what is -- what has been a sweet play for us, even from a domestic point of view, all right? So that's kind of grown by 16%, which is, I think, a pretty healthy growth rate considering where we were earlier.

So we were also [indiscernible] in the interest of our own profitability with costs had gone prior before the price increases could take place, right? So we also wanted to sort of -- in cash on the fact that hold back the expensive material and to try to sell in price in the coming quarter.

Understood. It wasn't for all volumes. We had calculated volumes. We wanted to supply at the oil prices in the market.

The next question is from the line of Praveen Sahay from Prabhudas Lilladher.

My first question is related to the industry. Can you give an indication like last year FY '26, how the industry in terms of the volume growth? .

So we foresee that the industry in general grew in the mid-teens to sort of hiding kind of levels. However, this number is fairly varied. If you look at across the listed companies, although information is only out for a couple of them so far. But obviously, companies with a smaller starting base we're able to grow at a higher pace. We can also see that there was the reduction in realizations of certain companies because of discounting structures in order to capture market share. So it sort of is correlated, but the industry in general, I would say, would have grown at the mid-teens to sort of high teens level.

Right, sir. And also you highlighted a few new capacities are coming in mid of '27. So can you quantify how big those capacities are?

So I would say -- sorry, go ahead, Himanshu.

So there are 2 capacities that we are aware of, which are going to come in, in the second half. One is in [indiscernible], the other is an AP. I think the total size that we are looking at is 400,000 for the full year. Obviously, it doesn't come up at [indiscernible]. It will be a calibrated approach in terms of volume ramp-up, et cetera, yes. So you can expect some volumes to trickle in this year. And obviously, next year, the capacities are fully available.

All right. Now coming to the price hike of 15% you had indicated. So this 15% is enough to compensate the chemical price increase, which has impacted your number in Q4?

Yes. That's what the earlier gentlemen had also asked. So based on today's costing levels of the chemicals, this 15% is sufficient to absorb that -- those cost increases. However, the situation remains fluid. Chemical costs are very volatile at this point of time they move on a daily basis. So we're also waiting and watching very carefully and if they move up substantially, then there could be another price increase that needs to be taken and which will decide accordingly.

And as a whole industry is taking such kind of [indiscernible]

Yes. I would say this price increase in 2 cases, which we took 5% plus 10% has been across the industry.

All right, sir. And also, you indicated about the timber price, which were flat last quarter. So any indication for FY '27, how you are seeing the timber price movement? .

We expect it to remain slightly stable. Now many players have moved on to multiple species. So the pressure on [indiscernible], which is predominant raw material initially has reduced significantly. And with multiple species being available Overall, raw material timber costs have been quite stable, and we don't expect it to move much in the current year.

And if you can give benefit for a quarter and a year.

Sure. So this is already there as a footnote. If you see on Slide 8, but I'll repeat it. So for quarter 1, quarter 1 was 5%. The next quarter was 6%, quarter 3 was 8%. In this quarter, we have take INR 6 crores as EPCG. So overall, INR 25-odd crores have been accounted for [indiscernible] against 35%, which was a count one shot in quarter 4 last year.

The next question is from the line of [ Neha ] from Nuvama.

A couple of questions from my end. Firstly, if I look at the domestic realizations now they have been largely flattish. This is despite taking a significant price increase in the month of March, I understand the focus has been in the volume. So could we get some flavor on the realization, where are we headed?

No. So [indiscernible] no price increase impact was actually effective in March. All sales that happened in the month of March was still at oil prices till the 31st of March and with a little bit of trickle on effect oil prices were still being -- was the effective prices. There was no price increase that had happened till 31st of March.

Understood. So do you see the entire impact starting Q1?

Sure. So that would also be sort of, I would say, the entire 15% will not be effective for the quarter because it got implemented in phases and there was sort of a trickle effect of oil prices, dispatches, which were pending still happening and as I mentioned earlier as well, that there is already some instances of discounting going on by certain players, and there is a possibility we might have to react as well. So it's not safe to say that the entire 15% will be visible in this quarter.

Understood. Understood. Secondly, on the margin front? Or did I hear it correctly where you said that you've done higher single-digit margin and you would like to maintain it or marginally improve [indiscernible]

No, I think -- so we expect margins -- we want to be very cautious in giving a margin guidance at this point of time, to be honest with you. Because there is so many variables that play at this point of time with the title cost fluctuating export businesses completely out of the picture for us at this point of time because freight is not letting us fulfill any kind of export orders. At the same time, pricing is also very uncertain at this point. And as I mentioned, there is undercutting going on -- so we're a bit cautious as to give you a long-term guidance on the margins at this point of time. We'd like to refrain from that for this -- at this point of time, at least. We want to set out the first quarter, we can watch till we give you a definitive guidance on where we will stand.

And lastly, on the EPCC benefit, sir, I think in one of the calls you had mentioned that [indiscernible] be having total benefits of INR 86-odd crores of [indiscernible] is already taken. So the remaining INR 26-odd crores, is it due in FY '27 or can that be [indiscernible] forward in the coming quarters in coming years?

Well, again, this benefit is directly linked to the volume of exports that we do. So if things geopolitically settle down, we are quite certain that we'll be able to get this benefit within the current financial year. However, if exports don't open up for a long term, then it might trickle on to the next financial year as well, little portion of this.

The next question is from the line of Utkarsh Nopany from [indiscernible]

So my first question is regarding the [indiscernible] So just wanted to understand what the [indiscernible] in FY '26. And if you can also split it between the trick MDF demand and then they have demand in FY '26. .

So as, so like I think as a number, I think what's safe to say is that before last year numbers, you can assume sort of a 15% growth in the -- on the market size, which is what it has been historically growing at thin MDF traditionally remains about 20% to 25% of the entire market compared to -- of the whole 100%.

Okay. So like in the last Q4 earnings call, it was indicated to us that the India demand was close around [indiscernible] cubic meters. So over there, if we assume 15%, so is it safe to assume that the industry demand would be close to around 3 million cubic meter in FY '26? .

Yes, I think so. I mean with that growth number, I think that's what it would come to.

Okay. And of this, the [indiscernible] demand would be close to around [indiscernible] is it correct [indiscernible]

Yes, anywhere between 25 to -- I mean not 6 lakhs, but I would say about maybe 25% [indiscernible]

Okay. And sir, my second question is like our understanding earlier it was that the MDF was majorly imported, okay? Now the imports have actually become many then why we are not able to utilize our [indiscernible] in FY '26? .

Well, you see, we set up a plant that was designed I mean, which was capable to produce in [indiscernible] in a very optimal way. But it is not just an India time. Now what we are doing is our capacities are sort of [indiscernible] across the 3 lines. Depending on what product we produce, which marketing service, which grade we are reducing, we choose to produce different products in different lines also given efficiencies -- keeping efficiencies in mind, keeping freight costs in mind and keeping in mind which line is the most optimal to produce which products. So I think what is safe to assume in our case is total capacity utilization across the 3 lines. We don't have an allocated line [indiscernible] for that matter. There are instances, for example, that I am still producing a certain quantity of [indiscernible] in the north of India, right? Because North India can also produce in MDF. So I think it's not fair to say that, that thin MDF line is only for [indiscernible] why are we not using capacity because we're calculating the whole capacity utilization in a different way.

Look, just wanted to understand, apart from what [indiscernible] also producing in [indiscernible] India. .

Everyone is produced in [indiscernible]

Okay. And sir, like we [indiscernible]. Sir, my next question is hearing from the dealers that the industry [indiscernible] started providing around 4.5% to 5% discount [indiscernible] and you have mentioned earlier that we [indiscernible]

Sorry, I didn't understand. Can you be a little more specific 4.5% to 5% discount when [indiscernible]

So like what we are doing there, the industry leader has started providing 4.5% to 5% that sound to the leaders for MDF from [indiscernible] so -- and you have mentioned that we might be taking a similar action maybe if the industry will continue with such a discounting structure then is it correct to use that our margin might come under pressure in near future? .

Well, you see these discounts are not across the board to start with. And certain some of them are target based -- some of them are geography based. So it's not a blanket sort of discount across the whole country and all products. Certain times, they're on more value-added products as opposed to -- so everyone modifies the schemes. And the outflow is not necessarily 100% of what is offered. So I would say that what is currently being offered on what you're hearing. I don't think it will significantly affect the long-term margins. These are modified on a month-to-month basis as well. And there's always a benefit factored in by offering these discounts, which then sort of negate the impact on the margins.

Okay. And sir, lastly, sir, like what would be your CapEx guidance for FY '27 and '28. And do we have any growth CapEx pipeline the next, say, 12 to 24-month period? .

So I'll let Himanshu give you the CapEx numbers exactly. But however, at this point of time, I think as a company, our focus remains on our volume utilization in the -- as Himanshu said, we are at about a 55% to 60% annual capacity utilization. The focus remains on increasing this and optimizing our sort of a product mix. And I would say that in this year, there would definitely be no plans of significant CapEx announcement. What we may do is that I think next year, we will start evaluating this. We also want to focus on bringing -- extending our balance sheet and bringing our debt down. So that would be the focus on the current year.

So the CapEx in terms of what we are planning to do is just sustainable on the base CapEx that is required. So I think it would be something between INR 20 crores, INR 30 crores, not more at this point in time.

[Operator Instructions] The next question is from the line of [indiscernible] from Garden Capital Partners.

My first question [indiscernible]

Sorry, you're not audible, sir. Sorry.

Mr. [indiscernible], we are unable to hear you clearly, sir. Your voice is breaking in between.

I'll rejoin the queue.

Next question is from the line of Varun Julasaria from 361 Capital.

Sir, what would be your mix between B2B and say, early [indiscernible]

Sorry B2B and?

And normal retail channel, like...

So see, the majority of our volumes are going through the retail channel on. The only B2B sales that are happening are to large format OEMs and that would be to the tune of maybe 7,000 to 8,000 cubic meters every month, not more than that. So I would say about 15% to 20%.

Okay. And sir, on the brand factor. I just wanted to understand given that now Greenpanel is also expanding significantly. And obviously, if our customers might be a bit more confused in like the [indiscernible] brands. So how do we like differentiate and stay like that [indiscernible]

In the MDF, I think in the MDF business, it is quite established as to what green panel is and what we imply is. So unfortunately, this is still a very influential driven market for the time being. It's not an end consumer decision-making market. So in those segments, we already have quite distinctive places and means within the industry. So we don't see -- we don't foresee a major challenge there for the time being.

And sir, on the climate side, like what is the strategy? I mean we saw some improvement, really good improvement this quarter. So any outlook there, what is the outlook on the growth margin?

So as I mentioned last year as well, given the current situation, we definitely want to be very focused on the plywood business. We consider ourselves to be a very small player and not a very, I would say, a significant player given the size of our peers. But for us to maintain interest in this business, there is no 2 ways about it. We have to increase volumes. We already have certain plans in the pipeline subject to our existing volumes being fully utilized. This could be an addition of capacity at our existing location with a very minimal investment and going forward, an additional investment in another location. However, I think it's pretty much how to decide that -- at the moment, a lot of the growth for plywood companies are also coming inorganically by way of trading, our trading volumes are limited to the extent where we want to support our dealers to sell our main product, and we give them the trading material only to that extent. However, that market also remains a very large market. A lot of the bigger players that growth is coming primarily from that business, which is the outsourcing business. So we have multiple avenues to explore this. Of course, our prerequisite as a company and internally remains that our existing capacities have to be fully utilized before we think about expanding in any which way.

And just last question, sir. If you could just give us like on the value-added mix in the India segment, I don't know how much is the pre-lam and the other value-added products like what is the proportion of...

Himanshu, would you have those numbers [indiscernible] the total number.

Yes. So value-added is approximately 43% by volume in the last fiscal, 55% by value. And when I say high value, it's basically [indiscernible]. It's basically all the higher density products, which is exterior high-density products, GWR, et cetera, right? [indiscernible] flooring, et cetera, all of that is high value for us.

And all the typical margin make difference between when we say prelam or value-added versus the [indiscernible] India?

So [indiscernible] prelam could be as high as 50% also. So it depends on the nature of the product, the high-density products could be as high as 30% also.

No, sorry, are you referring to margins [indiscernible]. They're very geographically as well [indiscernible]. I was talking or about the price differential [indiscernible] if not margin differences.

Okay. And on prior when we are talking, so is it fair to assume that now onwards will be at least on 6%, 7% margin more than that on the annualized vehicle given that now this quarter, we had a substantial improvement.

Sorry, I didn't [indiscernible]

On the plywood side, is it safe to assume that our margins will be about 5%, 6% at least on an annualized basis, EBITDA margin for the plywood segment?

So we did something like 2%. Yes, if we are able to do more volumes automatically the operational efficiencies kick in, yes? So the advantage of operating leverage, operating efficiencies, all of that get [indiscernible]. So we should.

The next question is from the line of [indiscernible].

So the first question is how much price did we take in plywood in Q4 FY '26 and [indiscernible]

So we've taken a 6% price increase on plywood starting this quarter.

Okay. And sir, how much the chemical prices have gone up at present compared to the Q4 FY '26 level?

Are you referring to like all -- like can you -- I mean, again, they're very chemical to telco. But I think overall, I would say chemical costs must have gone up at least 4% to 5%.

Okay. And sir, what was the reason that the CapEx cost per unit for MDF unit is higher compared to the new CapEx announcement made by the [indiscernible].

I think the primary difference would be 100% European line compared to Chinese lines. Sorry, are you there?

Yes, sir.

Sorry, I was on a 100% European investment.

The next question is from the line of [indiscernible] from Ikigai Asset Management.

On looking at the balance sheet that you are forced with the results, and I can see a start increasing the debt or [indiscernible].So something which was [indiscernible] up to 21 days. Is this because winning a growth in the project business in the export business has been higher or [indiscernible] because of the strategy that you have been following where you want to be market share they have been higher period -- credit period to [indiscernible]

Himanshu, you want to answer that?

Yes. Okay. So you're right. [indiscernible] have gone up. They've moved up from 11%. But if you see, otherwise, you look at the pattern across all the quarters that have been reported in the past also we've been operating at an 18, 20, 21 days of cycle. And part of that is also on account of higher OE sales or higher exports coming into play for the very clear reasons that we are putting in more efforts to put up more and more volumes. Please do remember even at 21 days, we are still far better than the entire industry, which operates at a much higher number.

Also I think one thing to factor in would be the fact that the last week of March, sales were abnormally high, which would reflect in that number, right, Himanshu?

Yes. But every quarter that happens. So every month, every quarter, [indiscernible]

March was abnormal.

Yes. Yes, because of the price increases coming into play. Yes, you're right. Otherwise, it could have been [indiscernible]

Understood. And sir, secondly, in your presentation, you have mentioned that almost like [indiscernible] mix rationalization. So what do you mean by rationalization raw material mix and how can that [indiscernible]?

That's [indiscernible] we do. But you see we were again -- the very first company in the industry to move away from eucalyptus to other timber species, which were seemly available. So we continue to pursue the objective because at this point in time, unfortunately, because of the competitive scenario, sales prices are defined by the competition in general. It's not directly in our control. So in order to improve margins, the only thing that we can play with is rationalization of raw materials as well as on the fixed cost side. So both on the resin side, we're continuing to find solutions to improve resin cost, improve consumptions. And again, on the timber front, we're trying to do the same. Now North India, for example, other species pricing is coming very close to that of eucalyptus. Eucalyptus does tend to give us better efficiencies in the plant. So we -- it's an ongoing process. I think it was just a statement to make for us to highlight that.

Understood. So any margin benefit you can quantify from moving a bit on [indiscernible]?

Well, I think that's reflected, for example, in the south of India, eucalyptus continues to be about 20% to 25% more expensive than other species. But again, availability and how far you can transport the other piece you also come into play. So we have to find the right mix as to what's available and at what average cost. But in the north of India, for example, because it's so close, we will have a much higher percentage of colitis consumption. So that would vary plant to plant and location to location.

Thank you. Ladies and gentlemen, that was the last question. I now hand the conference over to management for closing comments.

Thank you, everyone, for joining this call. We look forward to speaking to you again next quarter. If anyone has any further questions, please do feel free to reach out to us, and have a good evening. Thank you.

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