Mayur Uniquoters Limited (522249) Earnings Call Transcript & Summary

Ladies & gentlemen, good day and welcome to Mayur Uniquoters Limited Q4 FY '21 Earnings Conference Call hosted by Monarch Networth Capital Limited. [Operator Instructions] Please note that this conference is being recorded. I now hand the conference over to Mr. Anubhav Rawat. Thank you and over to you, sir.

Thank you, Aysha. Good morning, everyone. I hope you and all your loved ones are safe and health. On behalf of Monarch Networth Capital, it is our pleasure to host the senior management team of Mayur Uniquoters. Today, we have with us Mr. Suresh Kumar Poddar, Chairman and Managing Director of the company; and Mr. Vinod Kumar Sharma, CFO of the company. I would request the management to provide their initial comments about the results, and then we will take your questions. Over to you, sir.

Sure. CFO will start.

Thank you, Anubhav. Good afternoon, dear investors and analysts. Ladies and gentlemen, it's a great pleasure to be here to share with you the performance of Mayur. Thanks for giving your precious time to join Mayur Uniquoters Limited Q4 FY '21 Conference Call. Mayur Uniquoters Limited, being a market leader in the synthetic leather industry and organized player, has been able to leverage the emerging opportunities and deliver exemplary performance in past years, both in national and international business markets. As you all are aware, the manufacturers are again facing the similar downward pressures on demand, productions and revenue as the second wave of COVID-19 pandemic affected badly to our country during the first 2 months of this new financial year. Due to seasonal lockdowns declared by the different state governments for the different periods, the OEMs and other manufacturing industries severely impacted and stopped their operation due to no demand from in the market. However, from June, the cases are getting reduced and possibility of vaccination rise is also expected to pick up their feet again from 21st January 2021, as the central government has taken the charge back for free vaccination of entire country. Also, the start of lifting of the lockdowns from the state governments for this month, we are quite hopeful to regain business operations and demand from the market back on track on its normalcy in coming months. Mayur company has been a very -- with a very good track record of being an investor-friendly company, and it is committed to drive value creation for all the shareholders. Now I'm going to tell you that the Board of Directors of your company has proposed a final dividend of INR 2, that is 40% for the financial year 2021. I would also like to start with the financial highlights for Q4 FY '21 under review. We will reply your queries after my review on the financial results. The company has achieved revenue from operations on a stand-alone basis, amounting to INR 188.3 crores, PBT of INR 52.53 crores, and PAT INR 39.15 crores during the quarter, which are higher by 14% and 16% and 30%, respectively, over the last quarter. The revenue from operations on consolidated basis yield INR 178.35 crores, EBITDA is INR 46.82 crores, and PAT, INR 34.66 crores, and it has increased by 5% compared to the last quarter. Our endeavor is to make the company a preferred supplier for the leading OEM, especially in the U.S. and European regions. I'm pleased to share that the company is already approved by Mercedes-Benz for supply to their South Africa plant, and product supply has also started of the [ limited ] quantity for the new models on this coming month. The product approval from BMW is also obtained, and material supplies [ existed ] from until 2022. Regarding projects. PU plant project equities are almost completed, except some civil -- small civil work going on at the site. The small supply orders and dispatches is also getting increased gradually. While pursuing our business interest, Mayur Uniquoters has also been endeavoring to fulfill our responsibility towards the society under the corporate social responsibility programs. The company has done 3 phases of COVID-19 RT-PCR tests and vaccinations in the plants and nearby villages. And staff members have also contributed for the oxygen plant, donated COVID safety kits and oxygen [indiscernible] through CI and [indiscernible]. And the company has also adopted many [indiscernible] schools for education of children. And the company has also worked on education, especially for girls and underprivileged child educations. Various health care initiatives, especially child skill developments, water for all, sanitation at the school area, distribution of books, bags, clothes, et cetera, and most importantly, family planning and family welfare schemes. The state government has recognized these initiatives on various platforms. I'm thankful to all the investors for their valuable time to those who became the part of this conference call. And with this positive note, I would like to conclude and request you all to open the floor for questions. And before that, I would request that, due to time constraint, we need to end this within 45 to 50 minutes. We therefore request to kindly avoid repeat questions during the call. And volume data will not be discussed, so please avoid volume-related queries. Thank you.

[Operator Instructions] The first question is from the line of Chintan Sheth from Sameeksha Capital.

Congrats on a good set of number. I hope everybody in the east [indiscernible] is safe and healthy.

Thank you.

Sir, a couple of questions on the PVC side. The seventh line, which we have installed in the last quarter. Have you commissioned this, this quarter and started production from that?

Pardon. Hello?

Seventh line?

Seventh line.

Yes, so we were supposed to commission this in Q4. Have you commissioned and started commercial production from that?

No. It is under commissioning still.

[indiscernible].

No, no. [ 749 ].

Let me start by saying by July end, it will start.

And production will be expected to start by end of July.

Sure. And on the PU.

Sorry?

And on PU side, so the first line has been commissioned. They started small quantities, as you explained earlier. So can you elaborate on how the product has been getting accepted in the market? And what is the way forward for FY '22? What are our targets for FY '22 for Q1?

Yes. You see, first of all, I would like to tell you that the production in Valiant Airline has started only in March 2020. By that time, the corona effect has started. So this year was very crucial. And although, in general, PVC market also was very bad in footwear. But anyhow, we have now, at the present, prepared all kind of products, which are being used for local and export purpose. But since the market is very, very down, and there are a lot of stock, this PU is mainly 90% supplied by China. So everybody is faced with a -- up to the next -- up to the nose. So the sale was not very attractive, although we were selling approximate 40,000 to 50,000 meters, but that is not enough. Just to have breakeven, we have to have at least 200,000 meters. So now I think -- and again, the second wave has come. Now the market has started opening up because almost in all the states, it was locked down. So this lockdown was affecting too much to the other industry, other than automotive. Automotive, we are doing their production and keeping the stock. So there was no problem in April. And May also, it was just okay, but June is very bad. And I think now and you know our main market and so [ queries out ]. and south, all the 4 states are in lockdown. Now some of them will start opening from this Monday. Let's see what happens. And I hope, if everything is all right, it should have good business. But unfortunately, the automotive is also getting down, too much down in May and June also until now. They are not in a very good shape, but I hope that from second or third week of June, things should start moving. Already in footwear in few places in South, we have started getting the order. But from last 2 weeks, there was no order at all. So now things are moving. And so far PU is concerned, we have to wait for this year. Let's see how the COVID move. It all depends on that. But our most of the product, which is being used by manufacturers that are approved. I mean, DMF less than 1,000 DMF, that also we have made less than 500. We have made less 250. And then so far, product is concerned, there is no issue. And they are buying also, but the quantity is less at the moment. So we move from last quarter, third quarter, it should have good improvement, now that we can supply the right material to them.

Correct. Correct. And also, any new engagements we have been able to finance over this quarter? Any new agreement with in part [indiscernible] now?

are you saying for this quarter?

Yes, last -- from last quarter to this quarter, have been able to get into any alien types during this quarter and engagement is progressing further?

You are talking about quarter 4?

Yes, sir. Quarter 4.

Quarter 4 versus quarter 1 of this year.

No. So basically, any new engagement with OEMs that We have started discussing with the OEM clients? Any...

As I have told you that we have already started supplying to Mercedes in South Africa. Consignment has started growing. Hopefully, already, we have got more than INR 3 crores per month order in our hand and -- which will be supplied from this month only until -- BMW we have also been approved, but their supply should start in 2022 already [indiscernible]. Volkswagen also India, we have got approval. And small, small quantity has started growing. I hope to start a business, improving business from second quarter, third quarter. And by fourth quarter, they will gain full production, which is about 30,000 to 40,000 meters every month. It all depends on COVID. I think COVID is all right, then there is no problem at all. And now in May, June, the problem is in U.S.A., the demand is very good. But because of the chips problem, many companies are closing down and they are reducing their shifts. And hopefully, what they have given us, the product prediction, the second quarter is good. The first quarter was very bad. I mean, almost, they were working 30%, 35%. But now, they -- the statement, which we have given in July, we still [indiscernible] this production according to them. And in others -- from others, it should be 120% to 130%. That is according to their estimate, but what will happen actually, we don't know. Maybe at least 80% should happen.

Okay. So 80% is the sequential or we are talking about the run rate versus the 80% we will be able to deliver?

Chintan, your voice is not clear. Can you come over your phone and...

Yes. So is it okay? Is it [ clearer ] now?

Not much clear.

I will go back in queue and get a better reception, then jump back in queue, all right?

The next question is from the line of Pritesh Chheda from Lucky Investment.

Sir, just a clarification. So in the quarter, which is gone by, we did not supply to Mercedes and we did not supply to Volkswagen. Is it right?

No, no. We have started supplying to Mercedes. But in fourth quarter, it was not.

So in fourth quarter, it was not there, right?

Yes.

We have been continuously...

Volkswagen were in there, too. But in fourth quarter, we have sold not bad. In the case, INR 2 crores, we have sold in the fourth quarter also.

How much crores?

INR 2 crores to INR 3 crores.

Okay. Okay. Okay. We have been going through continuous margin expansion. So what we got reported in quarter 4 is about 29% margin. And this is also, let's say, without large Mercedes or one of those value-added orders. We have not reported these kinds of margins ever. So if you have to look at your business and the changes that you have made, what should be a good indicative margin or per meter EBITDA, if you could help us understand that?

You see, margin from last 4, 5 years, I'm saying [ 10% ]. When the margin was 10%, few people used to ask how much margin you will maintain, but you are seeing continuously improving. Now the margin depends on how you make your production, how efficiently you make your production, how efficiently you reduce your cost, how efficiently you make a new product which can add value to your product. We -- I'm trying my best every year. I mean, you see, what is the main thing? The main thing is that to produce new kind of product, which company required and which is not supplied by others. There, only, you can make money, right? And then you need to have your R&D like we are working very seriously on to you. Now PU material, we are in -- 70%, 80% we have achieved with Chrysler in America. Now that material is $20, and this is going to be approved. We have reached 80%, 85%. Maybe in the next 3 to 6 months' time, we will start. And now many companies are shifting from genuine leather to PU, right, because PU is more eco-friendly compared to PVC and leather. In leather, when you have [indiscernible], the leather, there is huge production. And the cost is also very high. So what I'm trying to say that as soon as this material approves, the margin will automatically increase. And this is a good business, and people are gradually converting. Now we are approaching to other companies also. They are all excited. So I think it's a matter of maybe another 2 quarters. By that time, we should be able to enter in this PU market, right? And further, margin depends on how you work out our fifth line, sixth line, seventh line. All the line has got a wide -- this wide material like we were supplying 140. Now we are supplying 170 centimeters. So what happened? Only your cost of the material increase, but you are getting 20% more value. So that you are competitive also as well as you are getting more margin. So this is the ongoing process. It is very difficult to say that whether we will continue with this. We are trying our best and, every time, we are improving. That's what I can say.

From your answer, is it fair to assume at least that, in PVC, not asking you on PU, but in PVC, whatever historic margins that we were making at about, let's say, a higher of about 25%, 26% a couple of years, we have made that margin because we have changed the product mix and because we have added these 2 -- last 2, 3 lines or more wider with more value adds and with the new customer -- higher value-add customer orders, which will get executed incrementally because whatever, Mercedes, BMW, Volkswagen is yet to reflect in the numbers. Is it fair to assume that your margin would be higher than what in the past that you have made without asking how much percent higher? But is it a fair assumption to assume that it will be at least higher than what we have made?

No, no. Higher than what we have made means, you are comparing it with what? This last quarter, fourth quarter?

No, sir. So the best margin that we have made in the past is about 26%, and that was made in the years of -- I just tell that, sir.

You are talking about EBITDA?

Yes, sir, EBITDA. We had made that in 2017, '18.

No. Let's talk about last year. Last year, it was about this last year.

Last year, EBITDA 24%.

How much?

24% last year.

Last year, it was good margin. It was 24%. We hope we'd be able to maintain this.

Okay. Okay. And my last question is on the volume side, despite the fact that...

We think [indiscernible] on volume side. It all depends on this COVID. No -- other than automotive was doing fantastic. I mean, when I saw this last -- this April, it was fantastic. And suddenly May, it's down. And then automotive was booming in April. But in May, it is down. June also, it is down because more of the South India is in lockup. Now they have started a little bit. So it all depends. If everything goes all right, the way things are moving in the last 15 days. If that continues, I think next quarter should be good. And at least, I will say from last year, first quarter was so bad. Comparatively, even this quarter, we'll do much better. So the broad willing from July, if the things happen, I think we will be doing better than last year also in spite of that good result.

Can you just share what would be the volume growth in FY '21 without sharing what is the volume number or at least the volume growth percentage?

Volume. Last year, compared to '19, '20, 2021 was INR 20 lakhs less, and it's about 8%, 9% in this.

8% last year.

In volume, in volumes.

[Operator Instructions] The next question is from the line Awanish Chandra from East India Securities.

Congratulations. The best investor on [indiscernible] set of numbers. Sir, I understand the PU business was pretty low, but approximately how much contribution into all FY '21 from the PU business approximately?

In this quarter?

In the year, FY '21.

So PU was not very much. It was maybe [indiscernible]. If you see about [ 400,000 ]. You can say it about INR 7 crores to INR 8 crores -- INR 8 crores to INR 10 crores.

Okay. And sir, any expectation we can have in FY '22 from the PU business, your own estimates, sir?

PU business is, as I told you, all market [indiscernible] India, everywhere [indiscernible]. So there was no [indiscernible] that much. [indiscernible] like to be [indiscernible] quarter. We are talking to the customers, they say people will start coming from the next week -- middle of next week. So all the market other than automotive, from third week of this month, it will start moving, if everything goes the way it is going on from last 2 weeks. I'm talking about COVID. And this automotive business is also -- was very good in April. But in May, it was down. You are reading newspaper everyday, and because the showrooms are not opening. Now the situation is -- before, showrooms are not opening. They are building up the stocks. Now I tell you, in U.S.A., the business is also down because they don't accept -- must be reading in the newspaper. And because of this, they have reduced their production. Now in U.S.A., all the showrooms are vacant. There is no car even in the showroom. But the things are moving, like last month -- I mean, this month, we are hardly having 40% to 55% business in U.S.A., also automotive. But for the next year, they said that they will buy 100%. And from hereafter, month after next, I mean, from August, they say that we will be having 120%. Now that is their prediction. So what is happening in India, the problem is that shops are not opening, the showrooms are not opening. And the -- worldwide, the biggest shortage of the chips. The board chips are made by only 2 countries, mainly Japan and Taiwan. And this increasing production chip takes at least 1 year to 2 year time. So -- but abroad, the demand is fantastic. And here, also, the demand was very good. Because of this lockdown, this is happening. So, so far as market is concerned, people are there to buy the material, companies are ready to produce. The only thing in India market, it depends on COVID. Export market is good. General export is increasing every year. Even in this time, our general export is going very well. Approximately 2.25 to 2.5 left meter, we are still making. There is no problem. New products are also coming. So less so. From our point of view, why we have put 7 lines. At the moment, we are running only 4 to 5 lines. Sometimes 4 lines, sometimes 5 lines in the month of May and June. April was the best month in our history because of automotive. This demand did not come much. And now the market is opening, it all depends on COVID. Because if the market opens, the demand will decrease. And Mayur's demand is there because we are catering all type of customers everywhere, not only in India, whether you talk about furnishing, you talk about footwear, you talk about leather goods, you talk about aftermarket, automotive, everything. So once the market open, you don't worry. Mayur will do a very good business.

The update on the Tesla front and how the talks going on with the Volkswagen in the European market?

At the Volkswagen, I told you, now, we have got the order. Everything is finalized. The production of the...

That was for the India market, right? For the European market I asked.

We are talking about India Volkswagen. We are not supplying to abroad.

Okay. And sir, update on Tesla?

Tesla. Update on Tesla.

Tesla, you see they came and we are talking. But still, I don't know when they will start because the factory has not started yet. And then it depends on where from they will buy the interior. Because generally, we have seen any new companies coming in the business, in the interior there in both. And then, gradually the substitute. So [indiscernible] came also to meet us. He have also went to the Delhi office. But they are not able to tell anything when they will start. So of course, and then -- there, in America, they are using PU. So we are preparing PU also. So that will be advantage to Mayur. I don't know whether they come here and they start using PVC. I don't know.

Okay, sir. All the best.

in U.S.A. also with Tesla to move for PU materials. So of course, when they come here, we will definitely help the business.

[Operator Instructions] The next question is from the line of Manish Oswal from Thielmann Bank. [Operator Instructions] Due to no response, we move to the next question. This is from the line of Depesh Kashyap from Equirus Securities.

Sir, to Mercedes earlier, you were hoping to supply 50,000 meters per month. So I just want to understand when exactly have you started supplying to Mercedes. And is there any change in the volume per month consumptions going there for Mercedes?

No, we have started supplying. And at the moment, there, from next month, they have given us the order of 30,000 meters every month. And hopefully, by third quarter -- end of the third quarter, they should start 50,000. That's what they are predicting now. 30,000 already started.

Okay. So it started in June only or from May, we started?

Yes. No, we have started before in the last quarter also, but it is picking up from last 2 months. And June and today, but July and -- July, August, September, we must supply minimum 30,000. And from maybe October onwards, we may have a start 40,000 to 50,000 what they are predicting.

Understood. Understood. And sir, what kind of CapEx are you targeting for this year? And are you going to increase the capacity of PU plant?

No. PU, first of all, I have to fulfill whatever machine -- one machine is there, one set of machine is there in [ Valiant ]. And with that, I can make 400,000 meters every month. But at the moment, we are hardly making 30,000 to 40,000 meters. And hopefully, with the next 1 to 1.5 years, we should be able to increase it. It's a question of just getting the market open because most, as I told somebody now, that most of our material, which is required for export or for India market is accepted by the customers. How is the question of market, and because there was no sense and everything 95% material was coming PU material from China. So people are holding stocks. Now as soon as they're open first, they have to clear their stocks. But still, few distributors are buying from us. They are satisfied with our quality, and they are ready to give whatever cost is from China, at least 10% for [indiscernible] because they don't have to keep their stock. So as soon as the market open, the thing will start moving. At the same time, we are working in PU -- making PU resin also. And the fabric for -- especially for this PU materials because I have to fight with China. So my raw material cost has to be very competitive. So within next 1 to 1.5 years, I will start making this fabric and as well as PU resin also. We are working very seriously.

Sir, what kind of CapEx would this solve, a raise in CapEx?

This will be maybe about, you can say, INR 100 crores, INR 150 crores.

INR 150 crores. Okay. Okay. Got it. And sir, the PV resin prices have started falling from the month of April, right? So just wanted to check the view like how the automobiles revise their prices. Like when the revision generally happen, in 15 days or something? Because we might be sitting on high-cost inventory on PVC resin?

You see PU, there are 2 kind of PU. One is called high-solid PU and one is coagulated PU. All these American companies are going for high solid because coagulated is also containing DMF, a minimum of DMF. So other than Korea, now we are talking to one very big company in Korea, [ Datsun ] Limited, to have a joint venture with them for coagulated PU used for automotive companies. And we are in very advanced stage, and we are capable of taking that because you see, what is happening, the big quantity and big price material -- I mean, quality products like PU. Now coagulated PU, Koreans are using in their heavy parts, and it is supplied by Koreans all over the world. So that's why we are working on [ Datsun ], the Korean company, and their team has listed our factory, they like our factory. We are in very advanced stage of talking with them. So once in next 2, 3 months, it don't matter, okay. And we will start supplying to Hyundai here, and we are talking to -- even we are talking with them because they are not making PVC. We are having contract with them that all over the world, wherever they are supplying PU, they can introduce us in PVC also in Korean companies. So there are a lot of things happening. I'm not giving any strong answer. We are talking to the new, having joint ventures. We are talking to the new machine. They are talking to the new product like PU. So that is the way to keep your margin intact, and so over margin. If you are making same thing, a lot of new people come in -- has come in. Naturally, competition take place. So you have to be at least 2, 3 steps ahead of your competitor. That's what we are doing.

Understood. Sir, lastly, sir, your working capital seems to have set a loss towards the end of the year, so since our customers are generally the larger corporate. So just wondering what kind of -- what led to this increase in receivable days?

Yes. Please repeat your question again.

Sir, receivable days have increased in FY '21. So your EBITDA has increased by 20%, but your cash from operation has not increased mainly because of the working capital stretch that you have got towards the end of the year.

Yes. [indiscernible]

Yes. [indiscernible] Yes.

Yes. It has increased normally at the end of its financial year and March because of this COVID.

Now it will reduce in this quarter. End of the second quarter, you will find that it is reduced. It is according to the sales, but now it is definitely more like we see Bombay. Bombay is closed from last 3 months. So nothing is coming from Bombay. We have not sold a single meter, and we have not got money from them. How can I ask? Now U.K. is also closed. Delhi was closed. Now they have started working. But we are very careful for money that. Now even those monies are overdue. Whatever value they are saying, we are hardly supplying 50% of the maturity. And the biggest problem we faced further south because south was never closed, and the -- my south companies are tremendous -- particular and above the [indiscernible]. This time in the month of May and June until now, we are supplying with their incrementals because they are tied with the stocks and not a single player are moving. Now it is the slight -- we can see very big companies, they have started production. They have started giving the order. Paragon is still grows. But I think from next week, they -- all of them, eventually, will start moving. Actually, with this COVID problem, the working capital is the problem. And we see the problem is from both the side. Now one side where people are not paying. So I'm very strict that whoever in the world you are, I'm not going to supply the materials. I don't need margin, but I can't lose the CapEx. So we are in very much [ come through ]. And other side, you see there is one -- another reason also for having good margin because we are buying cash. So if you buy cash and you buy in quantity, you get discount -- tax discount, you get quantity discount. Of course, you have to have the stocks, but what is the cost of the money? Nothing. So that is also one of the reasons that we are getting good buys. Like most of the PVC revenue in last 3 months, 4 months -- 4 months means 5 months, have brought in cash, and was getting 3% to 4% discount. So business is the mix of everything, not one thing.

Understood. Yes. Lastly, sir, can you please give the sales mix for the fourth quarter, like how much from exports and domestic auto, et cetera?

For the last quarter?

Yes, sir.

Just a minute. 32% is export and 68% is domestic.

And domestic is how much for auto and footwear, sir?

13% or 13 -- 34% is the auto, including replacement, and footwear is 33%.

Okay, okay, okay.

No, no, no, one minute. Auto is 13% plus 23%. 36% and this, the replacement was...

Domestic.

[indiscernible] domestic only?

You're asking on a domestic only now?

Total for exports [indiscernible] domestic, there was general breakup that you give the exports or OEM EBITDA-wise for general [indiscernible] and then the domestic part that you generally give, sir.

You want the share? [indiscernible] Hello?

Total breakup, the total breakup. Automotive...

Total breakup. Okay, okay, okay. Total breakup. He wants to [indiscernible].

[indiscernible] Automotive...

Okay.

Automotive, there are 3 categories. One is export OEM. Another is domestic OEM, but that is the replacement [ match ]. If you are talking about automotive, it is all total with this [indiscernible]. It's about 57%.

Okay.

57% to 58%.

Including exports. Okay.

And then this includes export OEM, domestic OEM and automotive replacement.

All 3 segments.

All 3 categories. About 59%, 58%.

Okay. And exporter exactly was 32%, yes.

[ Individual ] exports, 32%.

No, no.

Export, export, export.

Export, there are 2 kinds of export. One is automotive export and another is general export. The general export and automotive export leads to mix, it's about 32%. And OEM export is about 23.85%, and 8 percentage, general export.

Okay. Got it. Got it. Sir, your breakup of domestic and replacement OEM also, that would be great, sir. Domestic OEM and the replacement auto.

Okay. You note down, you note down. Export general, 8%; export OEM, 24%. Total, it comes to 32%. Auto OEMs: 13%; domestics; and replacement, 21%; footwear, 33%; and furnishing; and others is 1.5%, above 2% -- about 2%, okay?

Okay. Great. So very, very helpful.

The next question is from the line of [ Alok ], an individual investor.

Sir, I just wanted to understand the industry dynamics as such, like we are in the business of PU, like -- but who will be our major competitors in this segment will be applying to our -- to this OEM auto manufacturers now?

Nobody. In India, nobody.

India, nobody. So we are -- we obviously having the majority share who are supplying to major auto OEMs, sir?

Automotive, will you please listen. Now PU in automotive industry, very few companies that have started right away, but they are moving to ours. Now we are working very seriously with Chrysler. 85%, we have come closer, and we are talking to Indian companies also, and they are also showing interest. Once my product is approved and that is past 100% in Chrysler, openly move to Indian market. And this material is the replacement of genuine leather.

Yes, sir. So sir, one more thing. Like we have a plant in [indiscernible]. Actually, I joined late on the con call. So we have a plant in [indiscernible]. And what would be the capacity utilization for that plant for the last financial year?

No, no, no. We don't have any plant in [indiscernible].

Sir, we have like -- I was just going through the annual...

Earlier, we were having any plan to put up a plant in [indiscernible] for a system land, but it has some problems, size and the slot problem. So we dropped the idea to put up the plant in [indiscernible].

Okay. So as of now, we are not operating in [indiscernible]. We are operating from Rajasthan and MP?

Yes, Rajasthan and MP. Yes.

[Operator Instructions] The next question is from the line of [ Ryan Pritesh ] from [ Main Learning Center ].

Sir, good afternoon. Congratulations for your good set of numbers for the Q4. I would like to know what is your capacity utilization for all your plants?

You see, at the moment, we have 6 plants, including PU, so run in line. One PVC line is also coming up. By the end of the next month, we will be having all total 8 lines. So if you calculate all these 8 lines, the [indiscernible] will be about -- how much?

One minute.

Our capacity is around 3.15 million meters per month.

3.5 million per month.

3.15 million.

Okay. 3.15 million per month, okay. So that is our capacity.

Yes. But this...

Okay. How much percentage we are in having that order, sir?

No, no, that is in the month of May. It was hardly 30%, 35%.

Okay. Okay.

Now actually, seventh line will be starting from...

July.

July end. And PU, as I explained you, what is the situation of PU. So one case, COVID [indiscernible]. I think this is '21, '22. If everything is all right from '22, '23, we should be able to produce at least 85%.

Okay. From 33% to 85%, we can go from FY '22 to '23.

Yes, sir.

Okay, okay. So what is your top line guidance for FY '22, sir, compared to FY '21?

The way market is moving, even one cannot predict. If anybody say I can do this, I think just beating the bush. You see everything is good. We are capable of doing the -- making the product anywhere in the world. We have got good marketing lineup. Everything is in our favor. But the God has to be in the present, and he is not answering to me, but...

In total scenario, it is very difficult to say with the short figures. But yes, we are expecting the same figures we will achieve at the end of FY '22.

I tell you, at the moment, Mayur is capable of making any kind of PU, PVC material under the sun.

Okay. Okay, sir. Okay.

Now everything takes time. If -- when you are approaching any automotive company, if everything goes all right, it needs minimum 3 years' time to start with.

Okay.

Now you see, when I started with Mercedes, it took us 2.5 years to just get an appointment.

Okay. Okay.

So this is all the work of 4 years when we have started the business. And whereas my marketing person was very well known to that German person, he was already selling genuine leather. And now our R&D [indiscernible], which are products from Portugal, and she -- our company -- previous company was supplying to Mercedes. That's how we are able to get the business.

Okay, okay. So...

Automotive is it takes a long time to get in. But once you are get in, if your quality is okay, your supply is consistent, they will not change this. That is the advantage [indiscernible].

Okay. So FY '22 and '23 going to be a real year -- great year for Mayur Uniquoters because of all the hard work you have put in for so many years.

Yes, yes, yes. That's correct.

I think the time is over. We can close. Hello? Hello? Can we close?

Sorry, we have one last question.

Last question?

Yes, sir.

Okay. Okay.

It is the last question from the line of Arun Baid from BOB Capital.

Just a few questions, sir. One is you mentioned that the R&D head was supposed to come from Taiwan. Has he come, sir, for the few plants?

No, no. Nobody wants to come to India now. The biggest problem I had for Chinese technicians, which has gone back -- 6 months back because of this COVID. This Taiwan person is ready with everything, but everybody is scared until unless the things improve. So I have got a guy from Europe also to bring in, but the problem is COVID. Everything is set up.

And sir, you are also looking to appoint some senior professionals with regards to the key areas in your position. Is something that happened there, sir? Is there a development there that you can share?

Yes, yes. We have wanted many people now. I've appointed one senior as [ CEO ] for the production. We have got a senior guy marketing from this company. And you can almost -- what do you call that? BMB.

BMB.

Then from [indiscernible], the marketing guy for position. Now we have appointed a new HR person. Now we are developing. I mean, in next 2 year time, on the professional [indiscernible], my [indiscernible] will be reduced.

Great, sir. And sir, just one question for Vinod, sir. Vinod, typically, you just shared the absolute volume numbers, not the breakup. So can you just give the absolute volume number for Q4 and full FY '21, absolute volume number?

FY '20 -- '21.

No, no, no. So for quarter 4 and FY '21, both. Total volume number on the breakup.

Okay. Okay. For Q4, it's 79,000 -- 79 lakhs.

Okay, sir.

And for the year, it's INR 2 crores, 30 lakhs -- INR 2 crores, 31 lakhs per meter.

Thank you. That was the last question. I would now like to hand the conference over to the management for closing comments.

Thank you very much for letting join all the startups, and I have tried my best to answer their questions. And only thing I can tell that -- is that COVID doesn't persist. Our future, Mayur future is very good. We are -- every day, we are increasing the new customers. We are making the new products. And if everything goes all right, you will see the results in '22, '23 because '21, '22 still this -- first quarter is not good enough. But still, I can tell you that compared to last year, this year is -- will be, in spite of everything, first quarter will be better, much better than last. So if everything goes all right, this year should be better than last year and '22, '23 that's really whatever the new products we are catching up. We will always start producing good quantity. So I am very hopeful for '22, '23, and the company will give you good results. And I call up the blessing [indiscernible] doing better. Thank you.

Thank you. On behalf of Mayur Uniquoters and Monarch Networth Capital, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.

Okay.