Finolex Industries Ltd Q1 2021 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Shrenik Bachhawat - JM Financial Institutional Securities Limited, Research Division - Analyst : Sir, actually, I've got an opportunity to speak to a few large distributors of Agri Pipes. So they have highlighted that they used to stock up inventory from September, October for the next monsoon season. But due to high volatility in PVC prices, they have reduced this buying to Jan-Feb. Are you seeing such a trend? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. AUGUST 10, 2020 / 5:30AM, FINX.NS - Q1 2021 Finolex Industries Ltd Earnings Call

Question: Shrenik Bachhawat - JM Financial Institutional Securities Limited, Research Division - Analyst : So basically, during the peak month season, due to high demand levels, it was tough for the companies to service the distributors. So they used to build inventory from October for the next monsoon season. But due to the PVC volatility, they have started -- they have started bank from Jan-Feb versus October. Are you seeing this trend in the industry?

Question: Shrenik Bachhawat - JM Financial Institutional Securities Limited, Research Division - Analyst : Okay, sir. And sir, like market leaders like us in Agri Pipes the -- I believe, the life of the pipes would easily be about 7, 8 years and -- because of the high-quality of our pipes. So why is it that Agri Pipe sees a larger share in replacement demand? Like why does the replacement demand come every year? That was the one thing I was trying to understand.