Varmora Granito Ltd (VARMORA) Q2FY27 Concall Transcript - Sep-2026 Qtr
Moderator: Your passcode has been confirmed. Please wait while you are joined to the conference. The conference is now being recorded.
Moderator: Ladies and gentlemen, good day, and welcome to the Q1, Q2, and H1 FY27 conference call hosted by Varmora Granito Limited. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star and then zero on your touchtone phone. We are pleased to have with us today the senior management team led by our Chairman and Managing Director, Mr. Bhavesh Varmora, who will share his perspective on the company's performance for the quarter and the key business developments during the period. He is joined by our Chief Strategy Officer, Mr. Amit Doshi, and our Chief Financial Officer, Mr. Bhavesh Kosti. Before we begin, I would like to remind everyone that certain statements made during this call may be forward-looking in nature. These statements are not based on correct expectations and are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied. I now hand the conference over to Mr. Bhavesh Varmora. Thank you, and over to you.
Bhavesh Varmora (Varmora Granito Ltd): Thank you. So, welcome you all on first earnings call as a listed company. So, our listing was on 29 September 2026. So, sabse pehle mai shukriya ada karna chahoonga hamare naye public shareholders, anchor investors, our long standing partner Carlyle, hamare saare BRLMs, hamare dealers, distributors, employees, architects, builders, contractors jinhone hamare saath mil ke ye poora brand ko banaya hai. So, hamara jo IPO tha wo 708 crore ka tha. 320 crore ka fresh issue tha jisse hum log debt repayment karne waale hain.
Bhavesh Varmora (Varmora Granito Ltd): waha se start karke abhi ham log yaha tak pahuche hai. So hamara core raha hai pehle se naye product. So hamne sabs- bahut saalo se product ke upar kaam karna shuru kiya hai. So hamne ham pehli company thi India ki jisne digital printing technology 2008-09 me launch ki thi. Waha se start karke abhi latest Integrated Stone Technology again Asia me first machine hai jo hamne lagaya hai, jo last year me last quarter me start hua tha. To ham product pe kaam kar rahe hai. Waha se start karke agar hamare SKU ke bare me baat ki jaye to 3500 se zyada SKU's hai, 309 hamare EBO's hai. Around 2000 MBO's hai aur hamara GVT pe focus zyada hai. So is saal ka GVT number is around 86% contribute karta hai GVT ka. So we are a GVT company jaha pe ham log 18 different sizes and 20 different surfaces banate hai. So product mix wo hamara always focus me raha hai aur GVT ke upar hamara focus raha hai. PVT ceramics hamara decline hai business jo ham log last year 11% revenue tha PVT ka jo is saal me 8% hai. Aur last year me ceramics ka 6% revenue tha jo is saal me 5% hai. So contribution hamara GV GVT ka increase ho raha hai aur PVT ceramics ka kam ho raha hai. Aur volume level pe bhi same numbers hai, I think. So agar first half ki baat kare to quarter 1 sab aap sab ko shayad maloom hi hoga ki quarter 1 me April was shut because of non-availability of fuel aur disruption raha tha. May 10-11 tarikh se wo start hua hai. So second quarter hamara ek tarike se aap bol sakte hai ki recovery quarter tha. Jisme hamne bahut hi achha growth kiya hai aur numbers already aapke paas hai aur sabko mil chuke hai. So quarter 1 me revenue revenue growth 3% hai versus margin growth I think EBITDA margin growth is gross margin is 8% improvement EBITDA margin 17% se improve hua hai. Aur H1 versus H1, I am talking about YoY numbers, all numbers are YoY. And PAT improved by 498%. So this is H1 numbers. Now we can start Q&A.
Moderator: Mr. Bhavesh can we start with the Q&A session?
Bhavesh Varmora (Varmora Granito Ltd): Yeah.
Moderator: Sure. Ladies and gentlemen we will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen we will wait for a moment while the question queue assembles. Participants who wish to ask a question may press star and one on your touchtone telephone. We have the first question from the line of Nishita from Sapphire Capital, please go ahead.
Nishita (Sapphire Capital): Hello, am I audible?
Moderator: Yeah. Yes we can hear you.
Nishita (Sapphire Capital): Yeah so I had a few questions. So, my first question is on our EBITDA margin. So, like our EBITDA margin in Q2 have has improved a lot. Like and even our PAT margin, so what has led this profitability growth in Q2? QoQ and YoY, both like QoQ, I understand that Q1 was bad but even YoY our margins and profitability has improved a lot. So, what led this growth?
Bhavesh Varmora (Varmora Granito Ltd): Yeah, so ek tarike se aap bol sakte hai ki jo maine bataya ki product mix agar hamara number dekhenge to hamare number me aapko 21% ka hamara improvement hua hai on average realization jisme se 3.5% ka improvement hai on product mix side. Baaki ka hamara price hike hai. So, ye 3.5% hai wo saara ka saara aapko niche dikhega and then operating efficiency hai so ye dono cheezon se hamara EBITDA margin improve hua hai on Q2.
Nishita (Sapphire Capital): अच्छा तो मतलब हमारा प्रॉडक्ट मिक्स किस हिसाब से चेंज वो जीवीटी बढ़ रहा है और पीवीटी कम हो रहा है? दैट इस द प्रॉडक्ट मिक्स यु आर टॉकिंग अबाउट?
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