Orient Bell Ltd

Meeting Details

• Date: 27 August 2026; virtual one-to-one meeting with Analysts/Investors.

Participants

• Key company participant: Company Secretary & Head - Legal.

Purpose

• Purpose: discuss publicly available information; UPSI not discussed.

Additional Notes

• Investor update copy submitted to exchanges and uploaded on company website.

Financial Performance

• Volume +22.9%; revenue +42.8% YoY to INR 203 cr; ASP + ~15.9%.
• Gross margin 39.7% (highest ever).
• EBITDA INR 17.6 cr; EBITDA margin 8.7% (up 480 bps YoY).
• PBT INR 11.2 cr; from a loss of INR 0.6 cr last year.
• Working capital cycle 18 days; debt-free with cash > INR 47.7 cr.
• Capacity utilization 73% (Q4 64%).
• Capex plan: INR 10 cr to convert 1 mn m ceramic to GVT.
• Dora share of GVT: ~15%–20%; Morbi sourcing ~4%–5%.
• Project revenue share: 18% in Q1.
• Sellout share: ~40% of primary sales in Q1 vs 26% last year.
• Gas price in Q1: average INR 60; no price cuts planned; volatility persists.
• Exports in early year: first two months average ~INR 800 cr per month.

Operations and Pricing Dynamics

• Price hike taken: around 18%–19% vs pre-war; passes through nearly all.
• Gas-cost volatility; no cuts yet; monitoring market dynamics.
• Morbi plant shutdown Apr–May; supply has since resumed; plants operating at capacity.
• Gap vs Morbi prices narrowed; organized players benefit from reduced gap.
• Dora expansion focus: convert ceramic line to GVT; digital/printing upgrades.

Balance Sheet and Cash Flow

• Debt-free; cash and liquid investments over INR 47.7 cr net of debt.
• DSO improved by 5 days in Q1.
• Strong cash generation and disciplined working capital management noted.

Projects and Capex

• Capex: INR 10 cr to convert 1 mn m to GVT.
• Additional capex: around INR 15 cr over next 4–5 months; internally funded.
• Replacing/ upgrading equipment: digital printers, polishing machines; maintaining asset utilization.

Q&A Highlights

• Q: Price-hike sustainability? A: On course to retain margins; will respond to market.
• Q: Gas price trajectory? A: No cuts yet; volatility to be watched.
• Q: Dora vs Morbi mix? A: Dora ~15–20% of GVT; Morbi ~4–5%.
• Q: Project vs retail mix? A: 18% project revenue in Q1; no fixed target mix.
• Q: Cash usage plan? A: INR 15 cr capex in 4–5 months; internally financed.
• Q: Bathware entry plans? A: No plans; focus remains tile plus adhesives.
• Q: Export outlook? A: Exports down in early months; freight costs elevated; first months ~INR 800 cr/month.

Directorate changes

• Re-appoint Mahendra K. Daga as Chairman & WTD for 01 Apr 2027–31 Mar 2030; term renewed per AGM.
• Re-appoint K.M. Pai as Non-Executive Independent Director for 01 Apr 2027–31 Mar 2032; second and final term approved.
• Re-appoint Bindiya Shyam Agrawal as Non-Executive Non-Independent Director for 28 Oct 2026–27 Oct 2027; AGM approved 1-year extension.
• Appoint Sreeji Kamala Gopinathhan as Non-Executive Independent Director for 19 May 2026–18 May 2029; not liable to retire.

AGM Details

• Held on 11 August 2026 at 10:30 AM via VC/OAVM.
• Record date: 24 July 2026.
• Meeting duration: about 1 hour 13 minutes.

Key Resolutions

• Resolution 1: Adopt audited financial statements, consolidated accounts, and Directors’ and Auditors’ reports.
• Resolution 2: Re-appoint director retiring by rotation.
• Resolution 3: Declare dividend of Rs 1 per equity share.
• Resolution 4: Re-appoint Non-Executive Director for three years.
• Resolution 5: Re-appoint Independent Director for five years.
• Resolution 6: Re-appoint Non-Executive Director for a second term.
• Resolution 7: Appoint Non-Executive Independent Director for three years.
• Resolution 8: Approve remuneration to Directors for three years.
• Resolution 9: Approve related party contracts/transactions with specified parties for ordinary course.

Voting Results

• All resolutions passed; overwhelming in-favour with minimal dissent.
• Resolution 1: passed with near-unanimous support.
• Resolution 2: passed with near-unanimous support.
• Resolution 3: dividend approved.
• Resolution 4: passed.
• Resolution 5: passed.
• Resolution 6: passed.
• Resolution 7: passed.
• Resolution 8: passed.
• Resolution 9: related party approvals obtained.

Dividend

• Dividend declared: Rs 1 per equity share.

Director Changes

• Multiple director appointments/re-appointments approved, including Non-Executive and Independent roles; terms up to three/five years.

Auditor Appointments

• No changes in statutory, secretarial, or internal auditors reported.

Material Related Party Transactions

• Approved contracts/transactions with related parties Proton Granito Pvt Ltd and Corial Ceramics for ordinary course.

Other Material Approvals

• Remuneration framework for Directors approved for three-year period.

Meeting Details

• Date and time: 11 August 2026, 05:00 PM IST.
• Type and mode: Post-earnings call; audio recording.
• Organizer: Orient Bell Limited.
• Purpose: Audio recording of post-earnings call for unaudited quarter ended 30 June 2026.
• Availability: Recording link provided; uploaded on company website under Investor Relations disclosures.

AGM Details

• Date and time: 11 August 2026 at 10:30 a.m.
• Mode: VC/OAVM; meeting deemed held at registered office.

Key Resolutions

• Adoption of annual accounts for FY2025-26 and reports.
• Re-appointment of Ms. Bindiya Shyam Agrawal retiring by rotation.
• Dividend declaration of Rs 1 per equity share.
• Re-appointment and remuneration of Mahendra K. Daga as Chairman & WTD for 3 years.
• Re-appointment of K.M. Pai as Independent Director for second and final term.
• Re-appointment of Ms. Bindiya Shyam Agrawal as non-independent director for 1 year.
• Appointment of Sreeji Kalama Gopinathan as Independent Director for 3 years.
• Remuneration to non-executive directors by commission for 3 years.
• Approval of related party transactions by ordinary resolution.

Dividend

• Dividend of Rs 1 per share declared.

Director Changes

• Ms. Bindiya Shyam Agrawal re-appointed as non-independent director for 1 year.
• Mr. K.M. Pai re-appointed as Independent Director for second term.
• Mr. Sreeji Kalama Gopinathan appointed as Independent Director for 3 years.
• Mr. Mahendra K. Daga to continue as Chairman & WTD for 3 years.

Auditor Status

• No changes announced; existing statutory and secretarial auditors continue.

Related Party Transactions

• Related party transactions approved by ordinary resolution.

Voting Status

• E-voting results to be announced within 2 working days after scrutinizer's report.

Business Overview

• Leading tile manufacturer with five plants and 42.4 MSM capacity including AE.
• Operates 4,000+ SKUs; 48+ years in the tile industry.
• Digital ecosystem with QuickLook, PMT, Lakshya and AI tools InstaLook/Drishti.
• Brand investments ~3.7% of revenue; year-round multi-language campaigns.
• Shift toward premium vitrified tiles; GVT growth.

Operational Highlights

• Q1FY27 tile volume 63 lakh sq m; +22.9% YoY.
• Revenue from operation ₹203.8 Cr; YoY growth ~42.6%.
• EBITDA margin expanded to 8.7%.
• Gross margin rose to ~39.7% in Q1FY27.
• Premium vitrified tile share 60%; GVT share 47%.
• Negative net debt; 18-day CCC; liquidity ample.
• Balance sheet: cash ~₹30 Cr; borrowings ~₹29.7 Cr.

Financial Performance

• Consolidated Q1 FY27 revenue ₹203.8 Cr; PAT ₹8.3 Cr.
• PBT ₹11.2 Cr; PBT margin 5.5%.
• EBITDA ₹17.6 Cr; EBITDA margin 8.7%.
• Balance sheet: cash ~₹30 Cr; borrowings ~₹29.7 Cr; net debt negative.

Capital & Liquidity

• Net debt negative; liquidity ample to fund growth.
• CCC 18 days indicates efficient working capital.
• No major debt actions disclosed; steady capacity utilization.

Strategy & Outlook

• Premiumization focus: higher share of premium vitrified and GVT.
• Digital transformation to drive sales and data-driven decisions.
• Advertising ~3.7% of revenue; ongoing brand investments.
• ESG initiatives: solar power, water recycling, zero-waste discharge.
• NPD driving premium portfolio.

Financial results and disclosures

• Board approved unaudited standalone and consolidated quarterly results for June 30, 2026, with limited review.
• Results to be uploaded on the company website and published in newspapers with a QR code.
• Statement prepared in Ind AS 34 and reviewed by the Audit Committee; Board has taken on record.
• Single primary business segment: Ceramic Tiles and Allied Products; no reportable segment.
• Independent auditor's review concluded no material misstatement; conclusion not modified.
• Unaudited results for June 30, 2026 available on company website and BSE/NSE.

Financial results & audit

• Board approved unaudited standalone and consolidated results for quarter ended 30 June 2026.
• Limited review conducted by S.R. Dinodia & Co. LLP; Ind AS 34 compliant.
• Standalone and consolidated results include subsidiary Cestrum Enterprises Pvt Ltd with revenue ₹323.20 lakh.
• Subsidiary net profit after tax ₹14.32 lakh; group share of associates’ PAT ₹(25.88) lakh.
• Group’s share of profit/(loss) from associates: ₹(25.88) lakh for Q1 Jun 30, 2026.
• Company activities: primary segment Ceramic Tiles and Allied Products; no other reportable segment.
• Results approved August 11, 2026; meeting 12:35 PM to 14:25 PM.
• Results available on Orient Bell website; unaudited results on BSE/NSE.
• March 31, 2026 quarter figures are balancing figures between audited full year and prior-year Q3.