HIL - HIL Limited Share Price

1. Question: "I wanted to ask, in a segmented result, I see a loss of Rs.18 crore for the floor division, whereas in our presentation, we mentioned that for Parador, it is currently operating profit of Rs.5 crore. So, why is there a discrepancy, could you please explain that?"

Answer: "The operating profit is before depreciation and interest, while segment results report profit before tax. So at the EBITDA level, it is indeed positive. This marks the third consecutive quarter where Parador has been EBITDA positive."

2. Question: "Q1 generally is very strong for us, especially our roofing business. Even after significant cost-cutting, we are not seeing margin expansion. Why is that?"

Answer: "In roofing, industry-wide, volume contraction is about 1.5%-2%, with price erosion around 4%-5%. Our volume decline is only about 1%, and price realization has dropped 3%, affecting margins. However, our decline is less than the overall industry metrics, reflecting better execution on our part."

3. Question: "For the $1 billion sales target, can you tell me any timeframe for achieving it?"

Answer: "While I refrain from giving specific forecasts, we are focused on doubling our current revenues over the next two to three years, which is within our sights."

4. Question: "How do you see the European markets for Parador for the rest of the financial year?"

Answer: "The second half looks promising, particularly post-September. We expect to resume the positive momentum seen last quarter, and anticipate recovering any revenue declines by year-end."

5. Question: "What is your margin guidance for the pipes and construction chemicals segment for FY26?"

Answer: "Predicting PVC pricing is complex due to multiple factors. Our immediate focus is on market share and volume increases. Any positive movements in PVC prices will reflect on margins, but we expect to maintain our current trajectory."

6. Question: "Are the recent results indicating a new normal for roofing margins at 9%-10% or do you believe 15% is achievable in a few quarters?"

Answer: "This quarter's operating profit was about 14%. The current pricing environment presents challenges, as we experienced a year-on-year price drop. We believe that achieving better pricing will be essential for improving profitability."

7. Question: "Are we acquiring capital through internal accruals and debt, or considering raising equity?"

Answer: "Currently, we plan to fund our CAPEX primarily through debt and, as margins improve, lean on internal accruals. Equity options would be a board decision."

8. Question: "Are we on track for OPVC plant commissioning in Q4 of this financial year?"

Answer: "Yes, we are on track with commissioning and expect to begin production and supply in Q4 as planned."

9. Question: "What was the capacity utilization for all segments this quarter?"

Answer: "We achieved 100% utilization in roofing, around 75%-80% for blocks, and about 70% for pipes. The overall capacity utilization is robust, with plans for increased output as demand improves."