Analyzing...
Thank you. ParƟcipants are now requested to use the Raise Hand opƟon to ask quesƟons. We'll wait for some Ɵme for the quesƟon queue to assemble. The first quesƟon is from Ashok. Please go ahead, sir.
Thank you so much. Very good aŌernoon to everyone. First of all, hearty congratulaƟons for achieving this kind of results and geƫng back to the dividend list. Kudos to the Singer team and Mr. Rakesh Khanna.
So, my first quesƟon is regarding that as per media reports, the major texƟle hubs like Tirupur, Surat, etc. are facing a massive labor shortage due to the non-availability of LPG cylinders and inflaƟon. Under these circumstances, most of the companies expanding their garment capacity would like to go for high-speed machines offering around 5,000 sƟtches per minute, which is being offered by Juki.
Is this report correct? And if it is correct, then do we have these kinds of models to take on global players?
Thank you so much, Mr. Ashok. Let me tell you about the labor shortage. It has been across India, in other manufacturing areas as well, be it sewing machine manufacturing or appliances manufacturing.
The increase in commodity prices has also been impacƟng all areas.
Regarding the garment manufacturers moving towards high-speed machines, that trend has already been there.
The change in trend is very obvious, and today, nearly 50% of the Indian market, revenue-wise, comes from high- speed machines.
Singer India is being growing very well. As I menƟoned, we have grown by 30% in this category during the year, and we are conƟnuously growing in this category. We have great products, and we are very confident about them. This is a very promising category for us in the near future.
Great, sir. Got it, sir.
So, this year, almost all of India is facing heatwave-like condiƟons. As we are very focused on fans, will our cooling products help turn the quarterly losses into break-even in Q1 FY27? Because we have been talking about fans for quite some Ɵme, and we have introduced a lot of models, including fans and coolers. Has it picked up, and will it help us reduce the losses?
Okay, let me answer it in two parts.
One, about the weather. Yes, as of now, the heat is on, but this is the kind of heat that comes every year. Currently, the speed of sales is good, and we are experiencing good tracƟon in the market.
As it comes to the fan business, I said in Q4, we've grown by 50%. We have a strong team, and the new porƞolio is geƫng very good acceptance from the market. There have been shortage pressures in the market because of labor condiƟons and very steeply rising commodity prices.
But despite that, this is the kind of growth that we have been able to achieve. It reflects the correct product porƞolio that we have been able to build up and the very good team of our people and the new distributors who have joined us. So, we remain confident going forward that we have a strong future in this segment.
I will not be able to comment exactly on future profits, but I can assure you of one thing: we are very confident that the Appliances Business is going to be a very profitable business for us because we believe Singer is a great brand. We just need to make a few correcƟons. Last year, we faced a lot of headwinds, and I think every company
in this parƟcular space faced those headwinds. But in the coming year, we are confident that we will do very well.
You mean to say that the tough Ɵmes are over?
I hope so. I have not seen the future, but last year we had a lot of headwinds. We do hope that if the coming year is a normal year, our strengths are very good, and we will be able to deliver good results.
Great, Sir, great.
And Sir, my last quesƟon is, as you menƟoned, there is a lot of raw material price inflaƟon. Are these PMY orders which we have received fixed prices contract, or is there a scope to pass on the raw material price increase to the government?
They are fixed-price orders, and we cannot change the price there.
So, whatever increase happens in raw material prices, we have to absorb it. Am I right?
We have to absorb it. Absolutely.
Okay, sir. Thanks a lot, Sir. All the best for the rest of the year. Thank you so much.
Thank you so much.
ParƟcipants, if you have a quesƟon, please use the Raise Hand opƟon. The next quesƟon is from Amrut Kalantri. Please go ahead.
Sir, can you talk about what is the plans of your promoters, Retail Holdings (India) BV? There has always been talk in the market that they want to exit, and that's an overhang on the stock. Could you please clarify?
I will not be able to comment on any talks outside. To my knowledge, there is nothing that I can comment on.
But can you say whether they are acƟvely involved in the business on a day-to-day basis, or whether you and the Board run it independently? I'm sure they would have told you something because I think they have been exiƟng businesses in other countries.
I can assure you that we have a very professionally managed Board. The Board trusts us and has supported us in every acƟon we are taking. They are completely involved at every stage in our decision-making and are very encouraging.
We have a very good Board, and I am very thankful for the kind of support, encouragement, and empowerment they have given us to do the kind of business that we are doing and to create the organizaƟon that we have been able to create.
Okay, sir. No big deal can happen here without your involvement, and any incoming person, if at all, would want to meet you. So, are you confirming that you are not involved in any sort of M&A or sellout discussions?
See, I cannot either confirm or deny anything. There is nothing that I can talk on this subject.
Please be transparent with us. You have to tell us whether you are involved or not involved.
Such are the quesƟons I am not allowed to answer anywhere, and I am sure you understand that these maƩers are confidenƟal. Therefore, there is nothing that I can talk about, and I would appreciate it if such quesƟons are not asked also.
However, since you have asked, I would like to reassure you that we have a very stable, very strong, and very good Board having a great ambiƟon for the Company. We are geƫng our team together, and the results are in front of you.
Fair enough. Thank you so much.
Laxman Pandey, you can go ahead with your quesƟon.
Hi, Sir. Many congratulaƟons on the good set of numbers. I have one quesƟon. When it comes to the business of Sewing Machines contribute 81% and home appliances contribute 19%. For the coming year, what are the numbers you are looking forward to in percentages when it comes to Sewing Machines and Home Appliances? Thank you.
Thank you, Laxman. The business mix is not going to shiŌ dramaƟcally in one or two years because our growth ambiƟons are equal in both categories. We are going to grow very well in the Sewing Machine business, and we also have strong ambiƟons in the Appliances category. Therefore, I do not see a major shiŌ in the proporƟon of the Businesses. We have generally been in the range of 20–25% in Appliances Business and around 75–80% in Sewing Machines Business, depending on the quarter and season.
One last quesƟon regarding your Fan Business. How do you see the tracƟon in the Fan Business?
Currently, it is very good. As I said, last quarter we grew by 50%, and the pace of growth we are seeing is very good. At present, the limitaƟon is geƫng the supply chain right because there is a lot of labor shortage and cost inflaƟon. However, we are managing all of them, and the market response is excellent. It is very encouraging for us.
Thank you very much, Sir, and CongratulaƟons on these numbers. Wishing you conƟnued success in the business.
Thank you, Laxman.
Thank you. Next, can we have Kush from Care PMS?
Hi. I had a couple of quesƟons. My first quesƟon is regarding the execuƟon Ɵmeline of the government contract. Have we started execuƟon, and has all the growth that we have seen come from the retail channel itself, or has there been some contribuƟon from the government contract as well?
Yes, Kush, the government supplies are going on. We have already completed more than 60% of the government supply, and the balance 40% remains.
The growth has been across channels. We have done well in Government supplies, Retail, and E-commerce. So, growth has been strong across all channels.
Right. Okay. And by when do we expect the balance order to be completed?
Before the beginning of the second half, we should complete the rest of the order.
So, within the next two quarters.
Yes.
Okay. And what kind of growth do we see in the Retail channel, in the Sewing Machine division, going forward? Any guidance? And what you menƟoned about the new capex, sorry, is commissioning capacity for ZigZag Machines. Can you highlight the capex and what kind of capacity do we plan to start over there?
So, we will try to conƟnue to maintain the kind of growth momentum that we have, and we are reasonably confident that we have the capability to sustain this kind of growth momentum.
Regarding the new manufacturing facility which we are seƫng up now, the capex will be in phases. Although the long-term capex in the next 3 years is fairly steep, in the iniƟal formaƟve years, we will stay lean and thin. We have taken the factory on a leased basis as of now. We are starƟng with the assembly of the products, and components will be outsourced. In some Ɵme, as we start stabilizing, we will start manufacturing the criƟcal components in-house. It's a 3-year journey.
Overall, over a 3-year period, what can be the capex figure?
In 3 years, the capex can go as high as Rs. 90 crores.
Rs. 90 crores?
Yes, it can go as high as Rs. 90 crores. But as of now, I'm not commiƫng because we are going one step at a Ɵme.
Sure. And we only plan ZigZag, Industrial, and maybe some Appliances, so these three things are in plan for manufacturing, right?
Yes. As of now, this is it.
Okay. And just to understand a bit more about your Sewing Machine growth, what kind of rate has the industry grown at? What is happening? AŌer so many years, we are seeing this growth.
I understand we have done company-level iniƟaƟves, new product introducƟons, etc. But if you can break that growth down in some detail, like how much has the industry grown, how much have we grown due to new product introducƟons, and how much has been due to distribuƟon? Some more color on this, Sir.
Okay. Kush, to the best of our knowledge and understanding, because there is no formal data available, the market has been growing at a rate of 4% to 6%. We have gained significantly for a few reasons.
One is with all the iniƟaƟves that we have been taking over the last 3 years, and the new products that we have been bringing one aŌer the other. The dealer engagements that we have been making, the kind of service improvements that we have done, bringing digital into servicing, and iniƟaƟves like Live Assist and on-call resoluƟons. All of them together have created interest in the Singer brand, and we have been able to gain market share. The growth has mainly come through increase in market share across channels, be it trade or e-commerce.
Because this has been built on a very solid foundaƟon, this seems to be sustainable growth for some Ɵme.
Okay. And last quesƟon. If you can, give me two breakups: one would be Retail/Trade channel, E- commerce, and Government sales; and the second would be ZigZag, Industrial, and our original core Black Machine sales.
Let me tell you about the categories. The total sewing machine market is around Rs. 3,000 crores. This is the best esƟmate. Out of which, around 55% is the industrial sewing machine business, around Rs.
700 crores is the straight-sƟtch household machine business, around Rs. 350 crores is arƟsan, and around Rs. 250 crores is the zigzag business. So, approximately 55% is industrial, around 35% is household classic cast-iron machines, and around 8% is zigzag sewing machines. The growing businesses among them are zigzag and industrial sewing machines.
Kush, Care PMS: Okay. I was asking for our company revenue breakup. What would it be for ZigZag, Industrial, and Household?
In our case, for the year, ZigZag is approximately 20%, classic Black Machines is approximately 55%, and Industrial and accessories put together are around 28%. Kush, Care PMS: Thank you.
Thank you. Can we have the next quesƟon from Dilip?
Good aŌernoon, Sir.
HearƟest congratulaƟons on another great set of numbers. My first query was that Q4, in most of the years in the past, actually aŌer you have come, has usually been higher by about 10–15% compared to Q3 of every year. But in FY25-26, Q3 and Q4 showed almost a similar top line. So, I was just wondering why Q4 was not a big bang like every year.
Okay. I think Q4 has been good.
We clocked Rs. 166 crores of top line with 37% growth. So, Q4 of FY26 itself has delivered 37% revenue growth.
So, what you're saying is that there is not much of a difference between Q3 and Q4. Is that your quesƟon?
Yes, Sir.
There is no reason. I think it's all dependent on the demand. We have been able to supply well.
There is no specific reason. Q3 has been very good, and Q4 has been very good. So, there is no specific reason.
Q3 had a top line of Rs. 160 crores, and Q4 was Rs. 165 crores. So, your point is right, but as Rakesh has explained, this is where the growth is heading towards.
Okay. So, this is more of a sustainable rate of sales because of the PMY order that we have. Historically, Q3 seems to be an outlier. Q4, aŌer hearing you, is also very good. So, can we expect a similar trend going forward? I think it's more of a sustainable level of sales every quarter. Is that fair to assume?
Yes. As I said, because the growth is coming from all sides and across all categories, it should be sustainable.
Great. Very nice, sir. I heard another shareholder who alluded to PMY finishing up. In the last concall, I completely understand these are government orders, so a quarter here or there is no big deal, but we were targeƟng June 2026. But should we now move the target to September 2026 for finishing of this PMY order?
Dilip, we supply as many orders as we receive. It works in two parts. One is the total order, and then we need to get the allocaƟons regularly. Accordingly, we supply. So, it depends on what kind of allocaƟons we are receiving and accordingly we keep on supplying.
Okay. Has there been some slowdown in the allocaƟons received?
I would say that iniƟally, our esƟmate was that allocaƟons would come at one speed. Now they are coming at a slightly different speed. So, it is a revised esƟmate.
I see. Okay, all right. And do we expect the second one soon? Like we discussed in the last concall, are things moving well towards the second PMY order?
Yes. But it will come as and when it comes. It is a government department. Whenever the order comes, we will immediately reach out to you and inform you.
Great, sir. That's very nice. Sir, in the assets and liabiliƟes statement, we have shown about Rs. 11.6 crores as other intangible assets and about Rs. 8.5 crores as other financial assets. Could you please explain what these assets are?
Yes, Dilip. Regarding the other intangible assets, we acquired manufacturing rights from SVP in November 2025. The value paid was Rs. 11.6 crores. It has been capitalized over a tenure of more than 24 years and is siƫng in our books as other intangible assets.
Coming to the other financial assets of Rs. 8.49 crores, around Rs. 7 crores relate to fixed deposits placed with Yes Bank for a tenure of more than one year. Therefore, it has been classified as a non-current asset at Rs. 7 crores of value.
Very nice, Sir. Thank you very much. And lastly, you did share the breakup for the full year across different types of sewing machines. Could you also provide the breakup for the quarter between Straight SƟtch, ArƟsan, Industrial, Zigzag, and Accessories?
I can do that, but I don't think it is really the right way to look at it because there is seasonality involved. Personally, I believe these raƟos should be looked at on an annual basis. Nevertheless, ZigZag was approximately 20%, classic Black Machines were around 55%, and Industrial Machines and accessories together were around 30%. So, the mix was broadly similar.
All right, Sir. All the very best from us. We look forward to great Ɵmes ahead. Thank you very much for your Ɵme.
Thank you, Dilip.
Thank you, Dilip.
The next quesƟon is from Yogesh.
Hello. CongratulaƟons on the very good set of numbers, Sir. I just wanted to understand your strategy over the next three years. What's driving this demand? Is it more of a shiŌ from the unorganized to the organized sector, or do you see this segment upgrading itself? Do you think this will conƟnue for at least the next four to five years?
Okay, Yogesh, two parts. First, where is our growth coming from? It's clearly coming from market share gains.
Second, is this category going to grow? My brief answer is Yes, because the large part of the market is the classic black cast-iron machines in India. Globally, these machines are becoming obsolete and globally, modern sewing machines dominate sales, whereas in India, zigzag machines for the household are sƟll
relaƟvely small and we believe that this category, as we bring Made-in-India machines to the market, in line with the Government's vision and our manufacturing plans, these machines will gain greater acceptance as we are able to bridge the price gap. Therefore, there will be growth for many years to come because the enƟre market is likely to shiŌ, as it has shiŌed globally.
The second aspect is industrial sewing machines. Again, in line with the Government's vision, it is very likely that these machines will be made in India and we are already working in that direcƟon and as these machines manufactured in India, the growth opportunity in these machines will also be very significant. I do see in the coming future, sewing machine category will do very well.
Considering the populaƟon and assuming consumpƟon picks up over Ɵme, can we say that this sector can double in less than five to six years?
I will not make that comment, Yogesh. I can only say that demand for modern machines, where we are focusing, is certainly going to grow many fold. Specifically, with the Government's Make in India iniƟaƟve, we believe Indian organisaƟon focusing on technology and manufacturing are likely to be gaining the most.
Singer India today is well posiƟoned at the forefront of this change.
And considering that the rupee has depreciated by around 20% over the last one and a half years, would that also give us some advantage over imported machines and exports?
As of now, we are not very keenly looking at exports. We think India for India itself is a huge opportunity that we need to be targeƟng. Within India, once we are able to make in India, the costs will definitely be lower. It is about seƫng up the supply chain for components, it’s going to the journey that we have to take up and we are very confident that it is a worthwhile journey.
Okay. As our scale will increase so the benefits of operaƟng leverage and indigenizaƟon help improve margins?
It should. It is very logical what you're saying.
Okay. All the best, sir, and thank you very much.
Thank you, Yogesh. Thank you.
Thank you. Next quesƟon we'll have from Amrut Kalantri.
So, just one quesƟon. Our return on capital employed is less, and we're also siƫng on almost Rs. 83 crores of cash, but the dividend you have announced is only Rs. 0.40, right, if I'm not wrong. Why don't you pay out a larger one-Ɵme dividend? You have cash, and that will increase your return on capital employed (ROCE). That will help give back cash to shareholders. And since the business is generaƟng cash and good margins, you always have access to debt to fund any capex that you plan. So, what's you think about it? Because I'm seeing that since 2023, we have had around Rs. 80 crores of cash. What's the use of that?
Yeah. So, I will answer the quesƟon in two parts. The first is about the dividend. I think the dividend has to be seen in the way that we are seƫng a direcƟon now that we are clearly set on a profitable journey ahead. That's the way to see the dividend.
In terms of the cash lying with us, we are clear that we are going to deploy the cash for posiƟve opportuniƟes, and there are many opportuniƟes coming our way. We are exploring the opportuniƟes, and we do plan to invest this cash profitably in catapulƟng the organizaƟon to the new level.
And by when would you be making these investments?
You see, we are constantly evaluaƟng and exploring opportuniƟes, and as we come to the right plan, we will definitely come back to you and share our plan.
So, this is just a suggesƟon. It's not that we generated this cash this year. We have been siƫng on this cash since 2023. It's almost 3–4 years.
If you don't get any opportuniƟes over this year, then ideally, I think you should pay out a big chunk of this as at least a one-Ɵme dividend. That would help your metrics and benefit shareholders. Please do discuss it.
No, we understand, and we are aware that the cash needs to be posiƟvely deployed and needs to be more producƟvely uƟlized. But having said that, we will be careful wherever we invest the cash because it should be a good, strong opportunity.
Also, Amrut, just on this point. If you look at our ROCE this year, we have touched almost 10%, which by any standard is beƩer compared to last year, for sure. Second, as we are going to deploy capex in the upcoming Bhiwadi locaƟon, which will be a factory setup, that is going to be another. During the year, we have also been able to carve cash on a working capital basis also in parallel manner what we generated from operaƟons. So, one was profitability, and the second was improved working capital management. All these are healthy parameters, and our balance sheet is staking up right now.
I agree. The working capital improvement is good. But you would agree that 10% is not a great metric from a business perspecƟve. No one does business for a 10% return.
I appreciate the Bhiwadi point as well, but I sƟll think you'll have excess cash. This is just a suggesƟon that if you're not going to use it for one or two years, then I think you should return it to shareholders.
Well, noted. Thank you.
Thank you.
Thank you. Next quesƟon will be from Ashok Jain.
Thanks for giving me one more chance. Sir, I just wanted to know about your Tailor Mate machine. I think the price point is very similar to the Black machines. Can you throw some light on the Tailor Mate machine and how it is going to fare in the near future?
Oh, yes. As I said, the classic black cast-iron machines have more or less become obsolete globally. Consumers are definitely looking for a more modern and easier-to-use machine. With that belief, we introduced these machines, which are motorized, light in weight, and designed for basic sewing purposes. Priced at a similar price point as a classic black machines, these machines have got a very good level of interest from consumers and trade partners.
Based on this success, we will conƟnue to put more efforts in designing and introducing beƩer machines in this category, and seeing how we can transform the Indian sewing machine to more modern, consumer-friendly, easy-to-use, and durable sewing machines.
Great, sir. And from a usage point of view, can a tailor who uses a black machine use the Tailor Mate machine without aƩending your sewing classes?
Oh, these machines are as easy to learn as the black machines, or even easier.
Oh, great, sir. This is basically your R&D effort that brought this machine to the market?
Yes.
Very, very great. Great job done. Thank you so much, Sir.
Thank you, Ashok.
Thank you. We'll take this as the last quesƟon. We'll now have the closing remarks from the management.
Thank you, Marazban, and Thank You, Emkay Global, for hosƟng this call. Thanks to all the listeners for your conƟnued interest in and support of the organizaƟon. Wishing you all a very happy year ahead and a successful next financial year. Thank you, everyone.
Thank you, everyone.
Thank you, ladies and gentlemen. On behalf of Emkay Global, we will now end the conference.
Thank you, everyone, for joining and may exit from the link.