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Ladies and gentlemen, good day, and welcome to Bajaj Electricals Limited Q4 FY '22 Results Conference Call hosted by Ambit Capital. [Operator Instructions] Please note that this conference is being recorded.
I now hand the conference over to Mr. Dhruv Jain from Ambit Capital. Thank you, and over to you, sir.
Thanks. Good evening, everyone. Welcome to Bajaj Electricals 4Q FY '22 Earnings Call. From the management side today, we have with us Mr. Anuj Poddar, Executive Director; and Mr. E.C. Prasad, CFO.
Thank you, and over to you, sir, for your opening remarks.
Thank you. Thank you, Dhruv, and good evening, everyone. Thank you for joining our investor call today. I'll just share quick opening comments. Hopefully, you've all seen the financial results as well as investor deck presentation which we started publishing from the last quarter to give you a little more texture and qualitative information around the results here. It has been and continues to be a tough business environment, particularly due to supply chain disruptions and commodity costs. That said, in that environment, we believe we've had a good quarter.
The good news from our side, as you have seen the single digit milestone that we've been working towards the last 3 years is achieving a net debt free status. We are ahead of guidance on that because our guidance was to achieve that by end of this fiscal on a standalone Bajaj Electricals basis. It may take a few more months to do that in a consol basis, but we've achieved as a consol basis. This on the back of continued good cash from operations, we have done that about 12 quarters consecutively. In Q4, we've had INR 260 crores of positive cash from operations. On an annual basis, this year has been over INR 900 crores of cash from operations.
Coming subsequent to revenues. On an overall basis, we've had a revenue on Q4 of about 6%. Within that, the Consumer business has gone at about 6.4%. This is the third consecutive quarter for us of over INR 1,000 crores of revenue being clocked in our Consumer business. If I further dissect in the same year seeming in the light of presentation, 2 of that categories, which traditionally we've not been as strong in, which is fans and lighting. We started categorizing based on that. Fans category has grown by over 20% for the quarter as well as on a per annum basis, as well as lighting has grown by over 32% in Q4. Happy to talk about both of those going forward.
Appliances, it's high base effect. Last year, Q4 was continuously have been see pent-up demand. So that's degrown by about 5%. But on a 2-year CAGR basis, appliances has grown by about 14%. On the other side of the business, the EPC on an overall basis has broken even reported positive. And within that, the Illumination business continues to drives growth for us. On a full year basis, Illumination has grown at about 16% at the time and the industry overall in that business, we've actually degrown, which means we've taken up significant market share in the Illumination business.
Last point I'll make is that this growth is in the back of, there has been no price hike that we've taken in Q4, so the margin contraction et cetera, you must factor that in. We've taken certain price hikes after this quarter within Q1. But in the Q4 numbers that you see, there has been no price hikes taken by us and that has break into the numbers. And one last point I'd make is we continue to see certain softness on the rural demand. Bajaj Electricals contribution from rural and therefore, our exposure and vulnerability in rural is slightly higher in the rest of the industry, and that has a bearing on our cumulative aggregated numbers. Rural demand continues to be soft relatively in this entire fiscal. But going forward, from anecdotal information that I gathered, hopefully, we see in FY '23, in few months from now, rural demand should also pick up.
So with that, I'll take a pause and back to you for questions. Thank you.
[Operator Instructions] The first question is from the line of Rahul Gajare from Haitong Securities.
And I think congratulations on solid improvement on the balance sheet and cash generation that the company has done. I've got a couple of questions. You touched on some of that when you said rural has impacted the growth. Is there any way you can give us a sense, how much is rural ultimately contributing to the overall ECD business? Because we've seen strong growth coming from the fans and lighting business. So I'm just wondering whether it is appliances, which is actually dragging largely by rural. Or what is this happen -- what is happening over here when you break up the ECD business? That is the first question.
So Rahul, as you know, we don't publish the mix or specific slicing of data between rural/urban for various reasons, including the accuracy question on that. It's more anecdotal or direction that rural will continuously soft and our exposure to rural is significantly higher than competition, of 2x that of higher than -- from the numbers deck. It is other than spoken about, but have picked up there. So to that extent, that will be a headwind for us in a weak rural economy. But I think, like I said, going forward, I do expect rural economy to pick up, and therefore, that should come back to us. Yes.
I think the other part of the question was despite that, EPC, fans and other growth have happened on a cumulative basis that you see. Some of that is a mix of both are actually driving greater market share in both market segments, rural and urban. But within urban also, if you look at our Investor Day, I think some samples are there of news and product launches, et cetera. We are starting to move our fan product portfolio little more towards premium, more contemporary, energy efficient, BIBC, aesthetic sense, et cetera. And therefore, I presume we are gaining market share in that segment also.
Last point I would say that, while we don't publish it, we do source and actively monitor research, primary and secondary research from the market, that is all pointing towards this production of -- as gaining market share in the fans business here, across segments here.
Yes. Actually, where I was coming from was if had -- since rural has a large part in the ECD business. I'm just wondering, the fans growth and the lighting growth that we are seeing, which is 20% and 30% plus, would this be -- this would have been higher, had things would have been normalized even on the rural side. Is that a fair conclusion over here?
Absolutely. Yes, absolutely. That's the same point I made in Q3 also that our growth is after factoring in slow rural. So had that been normal like previous year, you would have seen a better growth across our categories and across the consumer business.
Okay. My second question is on your receivable. While there is a significant improvement in the balance sheet, receivable are still at about INR 1,100-odd crores. Can you help just decipher what exactly is sitting over here? How much is from EPC? And can you just help us understand this INR 1,100 crores? And I think connected with that, I think we can just -- tell me about this receivable. I have a couple of more questions. I'll ask after this.
Yes. So on this total receivable comprise of the predominantly EPC receivables, which is about INR 910 crores. That's about INR 486 crores is coming from the distributions business. But here again, we are having -- seeing some strong collections. Even in the current month April, we had some strong collections coming from there. Also on outstanding, we have enclosed about INR 400-odd crores of retention, so which will come in only after we hand over these projects. On the consumer side, we have got a receivable of INR 450 crores. But having said that, there is also a factor of -- the receivables factoring that we do, that is close to INR 269 crores, which we gross it up. So if we net it off, the CP receivables is only about less than INR 200 crores.
Rahul, one thing I want to clarify, I think you said INR 1,100 crores, but our total receivable is about INR 1,360 crores as I see it, of -- INR 450 crores is consumer, INR 910 crores is EPC.
Okay. Fair enough. The third question I have got is on that Wtech tie up. You also had a tie up with Cisco earlier, which was essentially towards smart cities. Could you throw some light on what is happening on that? And how does Wtech really -- what does Wtech really bring to the table for the company?
So Rahul, I really remember Cisco one, but that was I think a project specific tie up. I don't think it's a long-term tie up. Wtech is a Europe, Germany-based company, EOE solutions that they have. They are best-in-class in that. So exclusive tie up that we had with them for some key sectors in India. We think it will allow us to leap forward on providing smart lighting solutions powered by them by this technology to integrate well with our IBMS resolution and offering in the marketplace. And I think it will provide competitive advantage for us. But some -- nobody else right now in the marketplace. None of the other Indian companies actually had that.
Having said that, the way we are looking at this is semi open architecture. So I think there are multiple technology platforms as such that are coming up across the world. We don't want to lock ourselves into similar technology platform as these various technology solutions come up. We are partnering with multiple of these ones. We still note the different traction and different solution in the market segment. So we will continue to offer all of them. What that does for us is a win-win because beyond the point, our ability to invest in R&D to create this cutting-edge technology solution in-house for the Indian market is finite. But in these platforms, the technologies are developed for a global basis, our ability to market them -- take them to market in India is better than what some of these people can then do themselves. So we are looking at being the preferred partner of choice for many such technology companies from across the world.
Okay. And my last question is on this…
Sorry, sir. I would request you to please come back in the queue. The next -- [Operator Instructions] The next question is from the line of Chetan Gindodia from AlfAccurate Advisors.
Congratulations, Anuj, for the wonderful efforts and balance sheet -- achieving the balance sheet target. Just wanted to understand on the consumer segment. So the margins for the consumer segment were impacted because of the RM inflation. And so what kind of price hike are we -- have we taken in Q1 already? And will this price hike cover for the RM inflation of 200 basis points that we saw in this quarter? And going ahead, how do you see the consumer segment margin in a medium-term basis?
So Chetan, the price hike we've taken is about 5% average in April for most product categories led by clients. We had planned or had planned another price hike in Q1, but now we're waiting and watching on that for 2 things, both to see some competition actions, not payment, and also we had announced a price hike in May, but I don't think that is fully implemented as well as we're starting to see in the last 1 or 2 weeks, certain softening in commodity price trends. So based on both of these aspects, we'll decide in the near future, the second hike whether we take that in this quarter or not. So far, we've taken a about a 5% price hike.
To your question on whether that's adequate, had commodities continue to stay at the level they were at about 2, 3 weeks ago, then it would not be adequate because commodities have continued to increase in April over March. But the May trends look positive. So that's the reason for our pause on that. If that continues on a downward trajectory, then I think it should even out soon enough. In terms of future, while we can't share a projection with on margins, et cetera, going forward, we do think FY '22 has been an aberration in terms of commodity costs and therefore, margins. And as these cool off, we think we'll hope the increase latter half, if not all of FY '23 will come back to normalized margin or normalized margin expansion through them.
Okay. And just lastly, on the EPC segment. So going ahead from here on, this segment will continue to be in the profit. And secondly, if you can also share illumination segment revenue and EBIT because this is going to merge with the consumer segment, I think.
So on the EPC, we have broken even. I think from here on, it should on an annualized basis be break even. We may have certain quarterly swings, for example, monsoon quarters typically bag, et cetera, there's a higher cost impact. But on an annualized basis, EPC should be on a breakeven level. On illumination, our revenue for the quarter is over INR 150 crores and for the year is over INR 600 crores. The EBIT, we don't report that or disclose that separately. We may going forward once the demerger happens to that, but it is diluted in single-digit positive growth.
The next question is from the line of Rajesh Kothari from AlfAccurate Advisors.
Just trying to understand a little bit more about that degrowth in appliance. You briefly touched upon the rural slowdown. But I think it will be great if you can give a little bit more color because at times, it becomes very difficult to understand such a stark difference between the performance of various companies. So can you elaborate a little bit more? And that's number one. And number 2, while the market upturn, downturn and all these things do continue, what is our strategy in terms of the new product launches, the responding to the market? What is the average decline in rural? What is our decline in rural? Have we done better than industry in rural? Can you throw some color on that? That would be useful.
So on your second question first, when -- based on the research that we get in third-party research data that we have, we have had -- so we've not dropped market share either in rural or urban. If anything, we have grown a little bit in our market share in the Urban India, not top 10 in the rural. So while our aggregate growth may not be as good as the best there, when you cut that between rural/urban, we are holding market share. This quarter, like you said, has seen more fluctuation in top line performance. So I have seen, and I'm comparing to the best there. Our growth is not the same, but there are other players who -- we've entered a decline in overall revenue. That's all I've got.
In terms of, again, your question on appliances uptake besides the rural/urban, I think it's also channel linked. We had seen in Q4 FY '21, very strong growth across channels but particularly led by e-commerce. This year, in Q4, we've see e-commerce growth slowdown, e-commerce, some of them in Republic day and other sales, et cetera, but not as -- but not have the same traction this year as we did in the past year. So I think to that extent, that has been one driver for slower performance in the appliances. We cut it by a segmented channel basis there. Having said that, our other smaller segments, but they are smaller channels for us, our institutional exports, government, et cetera. All of those have continued to show growth, even the modern trade. That last year FY '21, modern trade was lagging. That is known.
But I think amongst all of these alternate channels, this is e-commerce that was a big driver in FY '21. That has been a dampener in FY '22, particularly in Q4. So that just to give you a mix of the confluence of the rural/urban geographically speaking, and so mix of channels, particularly alternate channels that we have performed differently.
And from the overall perspective, from the product portfolio perspective, are you planning any further new product launches, the categories I'm talking about?
So newer categories, no, not at this point, nothing that we have to announce. As in when we are in a position to announce, we will do that. But within the categories, as you may have seen in the investor presentation, that multiple SKU, and we showcase some of those, including fan and the other categories. Gas stove is another category that we've been expanding in the last few quarters.
Understood. Last question from my side. From the sourcing perspective, how much of your total products you are sourcing from China directly or indirectly? And what are the plans over there to reduce the Chinese dependency if any?
Well, Chinese dependence is extremely low. As I talk about Q4, I think total imports was about 7%. I think 90% of that must be China, so must be of 6%. So more than 90% is made in India and what -- dependence has been coming down. On an annualized basis, that could go up to about 10%. But compared to where we were 2, 3 years ago, that is coming down. Going forward, that will continue to reduce overall on a percentage basis.
The next question is from the line of Mr. Achal Lohade from JM Financial.
What I wanted to check was, is it possible to give some color in terms of price hike in some of the key categories in the entire full year FY '22, say fans, appliances, lighting?
Achal, I don't remember a drop, but I mean each category, but overall, we have taken in the range of 12% to 17% in FY '22 full year basis. And this was -- sorry, this was calendar year, so then January until about August '21, okay? Post August '21, we've not taken any price hike, August or September '21. The next price hike that we have taken is in April '22.
Understood. Okay. The next question I had with respect to the status of the UP project, where are we in terms of the closure? And how do we see the momentum in the EPC business? You think it will be maintained at the current levels? Or you think it could see some increase because I see I think the order book for TLT has at least has gone up Q-o-Q.
So the UP is to get 35 or 36 packages. Many of those packages are now actually closed. We've also started getting retention money back from some of those packages, which was not the situation we were in 2, 3 quarters ago. So there is significant movement. In terms of receivables from UP, E.C. can make that out. So current receivables?
Yes. So the current receivables from UP is about INR 240-odd crores.
What was that a quarter ago, do you -- just check that. We'll just put that data up for you. So both in terms of package closures, in terms of retention money and in terms of receivables, UP continues to be on good track. I would expect that the actual groundwork will be done in another quarter or so in the monsoon. We should have significant collection. If not in Q1, in Q2, we should have significant more collections. So that receivable should come down significantly. What was the other part of the question? Yes, on the order book, et cetera. So transmission line, if you remember our earlier commentary, our order book had gone very thin. On an individual project basis, we were making profits on the transmission project. But on a cumulative basis, because the order book was very low, we had been losing some money.
We are happy to see further traction in projects and order book on transmission business. So that helps us offset our overhead. Individually, all of these projects are designed to make money. So we are confident about our transmission line projects also going forward. Coming back to power distribution projects itself, as the demerger happened, we do expect to see growth in Power Distribution business itself. But this is not be the rural electrification projects that we had in the past. With the new revamp scheme and other infrastructure has been, we think there is adequate space to do selective profitable projects in power distribution also. And that is the reason to set up the new company. I think that will give us a flexibility to do that in a risk calibrated manner.
Got it. And just one more clarification on the logistics project with Mahindra Logistics…
Sorry, just one second, Achal. I'll tell you all the details. So our receivable in December from this year was 337, which is down to about 240 now.
Great. Just update on the UP -- the Mahindra Logistics, the project with Mahindra Logistics on the logistics side. Can you give us the update where are we? We sense there is some delay. So in terms of the benefits of how much of that is already there in this quarter, and how do we see that in FY '23 and '24?
So that is continuing our trend. We are not at end state or ideal state yet, both because of internal and external reasons. External reasons being COVID. We've just gone live with SAP this quarter, by the way, fuel costs, et cetera. So these are inventory or elevated. So they are not because of these various reasons as the targeted logistics cost as a percent of sales that we wish to be, but we hope we will get there sooner rather than in that area.
The next question is from the line of Manjari Bapat from State Bank of India.
Just a couple of questions regarding e-commerce. We just wanted to understand like, what is the share of e-commerce in your sales if the company is mapping it by the platform wise? And any significant change in strategy post COVID for focusing on e-commerce? And my second question is regarding Bajel. We just wanted to understand whether like it will be a separate carve out. And is the company looking at illumination distribution transmission, the same mix of projects or something beyond that?
Manjari, our e-commerce shares on a full year basis is about between 11% and 12% of our total sales. It used to be higher. But this year, as I said, e-commerce has seen a certain slowdown in their growth as a platform, not to do with Bajaj Electricals, particularly. In terms of focus, yes, it's very much remains a focus. We expect to continue to drive the growth in that going forward. COVID has only accelerated that, but with respect to the COVID, we expect that to remain a growth channel for us. I do believe it will come back to higher growth rates and other channels very soon.
In terms of Bajel carve-out, the power transmission and power distribution business will be part of Bajel. The Illumination business will be part of the continuing Bajaj Electricals operations. So that's the way the carve-out will happen. The illumination will not be going that side. Does that answer your question?
Yes. And one more thing regarding Nirlep, like you're acquiring very interesting brands. Any plan to list it or take it to the market list it or expand it or something like that?
If you need in terms of taking it public on the share market, no. So right now, that's the only subsidiary we acquired 100%. And if anything, we will look at corporate action within, but there is no plan to separately list that. We think it's going to be a integrated function with Bajaj Electricals. We don't see any benefit of adding back to the separate entity because synergies will be lost in that case. Separate entity means separate public entity. Okay. Having said that, you are bang on, right. We believe it's a strong brand. And over the next 2, 3 years, you'll see us do a lot more under that brand as well.
The next question is from the line of Vihang Subramanian from Saba Capital.
So just -- I mean, in our conversations and just to speak like 1 year back, I think we had like a strong road map to sort of reaching double-digit margins in the Consumer business, especially by targeting a lot of low-hanging fruits, right? So just wanted to get a sense on where we are when we think about that trajectory. And if you could just remind us again what are the low-hanging fruits that we can sort of target to kind of at least get to double-digit margins in the Consumer business?
Vihang, to be honest, there are no low-hanging fruits, not in this environment. We are in a tough environment. And it's not been for this last 1 year unpreceded commodity price hikes, et cetera. Our cost hikes, we would have been in a double-digit hopefully in FY '22, which is why I'm hopeful that FY '23 as everything start cooling off at least second half of the year, we should be getting back to normalized margins, which should be within touching digit of -- touching distance of double-digit margin. That's the best guidance I can give at this point of time.
In a different way to answer you, which should be consistent with what we've shared before, we only have a low-hanging fruit that we can see to get to double digit quickly, which we can do to stop investing for the future. But we are continuing to invest for the future. If you look at our publicity spend in the Q4 also versus our leading competitor, our spend as a percent of sales is higher than that. If you look at R&D spends, et cetera, last 2, 3 years, as we don't publish that separately, we've enhanced our spends on that. So these are all to our mind investments for the future, which we are not shying away from and we'll continue to drive on these.
Understood, sir. And I mean, in terms of SKU rationalization and stuff like it's -- all that already behind us? Like in terms of the…
Yes, that one is behind us. I think we had few rationalization around. We are, in fact, adding it fuels of your own. But these are far more well-thought out strategically enhancing the accruals for the portfolio, not long until the '23.
The next question is from the line of Chirag Lodaya from Valuequest.
My first question was on fans. So we have been extremely well in overall fans division. I just wanted to know what kind of market share we would have gained this year. And second, where are we in terms of profitability? I remember that our overall fans profitability was well below the overall consumer product division margin. So how are we tracking there?
So on the first question on fans, we don't publish a top market share, but I will give you a sense in terms. I think we would have gained about 2 to 3 percentage points in market share. But from our rank is what we're looking at, and that's what we've spoken on the past, where we used to be a #5 rank there. I think as of date, we'll be in #4 place. We have moved 1 rank upper. we continue to try and improve our rank in the fans category here. Sorry, your second question on the margin, I didn't fully hear that.
So our fans margins were relatively lower compared to our overall say consumer product division margins or say kitchen appliances margins. So where are we -- have you improved significantly in fans margins with the scale you have got now? Or still our margins are low in fans category?
Our fans compared to -- our overall consumer margins are similar, just moderate difference. But competition margin in fans are higher because they have typically been premium fans, et cetera, we'll be [indiscernible]. So as we continue to premiumize our fans margin, and therefore, our overall CP margin will both continue to [indiscernible].
Okay. Got it. And second question was on the Morphy Richards performance…
Sorry, just to add to that because it's our single largest product category, if you look at it. Out of our INR 3,700 crores, fans is over INR 1,000 crores. So that has the largest impact on our margins and everything.
Correct. Correct. On Morphy Richard, what we should expect going ahead? This year performance was not that great. Now you had a good long-term commitment also. So what kind of improvement one should expect in overall Morphy Richard business?
So Morphy Richards, firstly, yes, it has been a disappointing performance through this financial year for 2, 3 reasons, not to be defensive. Last year was an exceptional performance. So there is a high base effect, but I don't think that's good enough reason for us to have decline this year. We've seen far more online, offline price conflict in Morphy that the trade has not accepted this year. And I think that's because of the environment of sharp price increase like 12% to 15%, 17% I spoke about. As both kind of price increases start normalizing, our ability to manage online offline conflict in Morphy is better. In a year like this, it was much tougher to manage that. We are taking significant multiple price hikes and offline work. Online platform some times out of your control into your price management there.
But more importantly, steadily going forward, since we now have a 15-year road map, we will be looking into the future in terms of product development, product portfolio expansion, et cetera. And how do we have to build that? In the past, we've not done that strategically. It's been more adhoc opportunistic, we driven business for Morphy Richards.
Is it fair to assume FY '23 onwards, we'll be seeing good growth in Morphy Richards overall?
'23 or maybe FY '24 because now we are starting that process of creating a product road map, which we did not. So unlike others, that's the fans that you see, now this last 2 years that we've been working on getting all of these fans products out, lighting the growth that you're seeing right now. We have started a lot of these changes that we bring. So maybe in the FY '24, you'll start seeing the impact of the product rollouts for Morphy.
[Operator Instructions] The next question is from the line of Rakesh Roy from Indsec Securities and Finance Limited. We'll move to the next participant from the line of Rahul Gajare from Haitong Securities.
I just had one question remaining. In this result, I see there is an enabling resolutions to raise INR 300 crores. I wonder, can you just throw some light on that? Especially given your balance sheet has improved so much, what is this for?
So Rahul, we don't need that debt. We don't have any immediate [indiscernible] of these debt which is broadly enabling as the resolution says, for 2 reasons. If in the future for any reason, we want to raise that, we should have access to that. I'll bring E.C. into. I'll just finish the comment on that. And also because more from our this access to market credit trading, et cetera, we may choose to sometimes have some of it from a treasury operation, so that we are active in the CP and debt market while maintaining cash. So that's more from a being active and having that enabling opportunity should be required. But the reason to have a resolution is still confirmed. I think CP paper in particular requires Board and maybe shareholder also approval or not?
We need a shareholder approval.
So I think this is also require shareholder. So we want to make sure we have that the approvals in place should we ever use -- intent to utilize it in future.
The next question is from the line of Mr. Achal Lohade from JM Financial.
I just wanted to check in terms of preparedness for the energy change norms with respect to fans portfolio. Where are we -- how do we see that impacting us as well as the industry? And what kind of cost impact this BLDC change could have on a per fan basis, if there is any unit?
Achal, from a development standpoint, we are prepared for that. Just as of Thursday or Friday, the government has published the gazette notification for the new star rating. That said, along with that gazette notification is the second part, which is the regulation and rules for the transition that was due to be published any time this week. We are waiting for that. What that will determine, the exact transition plan is to when one can manufacture and sell the non-star rated fans. Basis that, we will decide a production and supply in go-to-market and -- when I say we, I think that's common to all of industry, I say that also in my capacity as Vice Chairman of [indiscernible]. We are waiting for that clarification so that we can all plan a production should use in go-to-market. As of now, the industry is waiting for a clarity from the government. But from a development standpoint, we are ready with that, yes.
And you don't see this having a disproportionate impact on the industry or as an opportunity for the players like us to gain significant market share over the smaller regional players?
I do. So in fact, let me also answer your previous question, it's a lot. On cost side, yes, energy rating -- energy efficiency star rating will have a cost impact that could vary between 15% to 20%. But I think you may have a certain consumer segment willing to pay that premium. In terms of consolidation, I think this will trigger greater consolidation in the fans industry and therefore to the benefit of the larger organized players who actually have to meet these standards because the standards now cannot be paid with.
There's one other aspect of sweep sizes that we also are waiting clarification from BIS. But having said that, irrespective of that, we see this being a favorable movement towards consolidation. And consolidation in favor of consumers, not against consumers because I think this is consolidation in favor of organized players who stand for quality and are committed to deliver their able to meet standards, which benefits consumers in a transparent manner.
Understood. And just last question. In terms of the -- if you could help us with the inventory and the trade payables for the consumer business?
Yes. Yes. E.C. will share that.
Yes. So the inventory for CP business is INR 819 crores. The creditors is INR 873 crores.
Sorry. Was that INR 819 crores?
INR 819 crores is the inventory and INR 873 is the creditors.
The next question is from the line of Rakesh Roy from Indsec Securities and Finance Limited.
Sir, maybe I missed, sir. Sir, can you give me the number of unit growth on Morphy Richard and fans business compared to FY '21 - '22?
So Morphy has degrown on a full year basis -- Morphy has a degrowth about 4.6%.
Okay. And fans business, sir?
Fans had grown 13.5% full year basis. Fans has grown 20.9%, and lighting has grown 9.8% with all full year numbers.
The next question is from the line of Chirag Lodaya from Valuequest.
Sir, my question was on the lighting portfolio. So in last few con call, you have said that lot of work needs to be done on lighting side. So I just wanted to get an update where are we in terms of that. And what kind of outlook you share on overall lighting segment?
In the earlier quarters, that we're saying that from second FY '22, we will start seeing better performance from us on consumer lighting. But you've got a sampler of that in this quarter itself, Q4 where you've seen that. It's in the back of more product launches and then also product launches, and it's based on Battens and resistor panels, et cetera, which traditionally we have not be strong at. So and as that continues, we will keep rolling out more products in the coming -- in this ongoing FY '23 fiscal. And as that happens, our share or revenue should continue to grow, and the margin should also continue to improve because these are higher value product side. So we think second half of FY '23 should be good for us in consumer lighting.
Okay. Okay. And sir, kitchen appliances and the categories, sir, what exactly is doing good for us? Or where are we focusing? You highlighted one category, which is gas stove where you are expanding. But apart from that, if you can qualitatively help us understand where are we focusing more and which categories are already doing well even in this tough environment.
So it's a mixed bag. It's a very long tail of product categories. Mixer grinders and [indiscernible] has been slightly flattish right now given the high base effect. But within that, we are launching the higher wattages, [indiscernible] 1,000 watt mixer, et cetera. We are making some traction in South India, but to be honest, that is a long way to go in terms of having meaningful shares in South India. On the other hand, the NPGs, which includes gas stoves, et cetera, is where there's movement. But it's a much more longer [indiscernible] answer to that question, to be honest. And we are also seeing more competition with kitchen appliances [indiscernible] used to do that.
Got it. Got it. And just lastly, if you can just call out A&P spend for the quarter as well as full year Y-o-Y?
For the quarter was about 2.7%, which is at about INR 28 crores. And for the full year is INR 118 crores, which was 3.1%.
Got it. Okay. Q4 last quarter same year?
Sorry, Q4?
Q4 FY '21?
INR 36 crores, yes. Q4 '21 is the INR 36 crores.
INR 36 crores. Okay.
The next question is from the line of Manjari Bapat from State Bank of India.
One question regarding Starlight Lighting Limited, the merger. Could you elaborate on it a bit? And once merged, is it going to significantly add to your sourcing requirements? Like will it have some significant impact? Will it ease your sourcing? Or it is not going to have a significant impact like 5% or 2%, 10%? What is the sourcing that you will receive from that merger?
So the net debt from the Starlight merger, the 31st of May, we have a shareholder meeting for fuel of the merger. Post that I think, we should have a little bit, the merger actually takes place there. In terms of the sourcing, so that sourcing irrespective of this corporate action. Sourcing is something we've been doing from Starlight, any which way. We have historically been sourcing the water heaters. Starlight's capacity of water heaters has been increasing, and therefore, to that extent, a sourcing from them for water heaters has been increasing.
The other product categories I think the last I think 18 months that they've set up capability, they're assembling and supplying mixer grinders to us and hand blenders and choppers, et cetera, in our smaller product categories. So that continues. So the single largest sourcing from them is water heater. That is a slightly seasonal category, so it doesn't happen evenly through year -- through all the quarters, but it's more focused on 2 quarters. Yes.
[Operator Instructions] We have a question from the line of Hitesh Taunk from ICICIdirect.
Sir, you shared -- my question is pertains to the inventory level of the consumer product category. Recently, we have seen a substantial rise in the inventory level of most of the consumer companies either due because of significant price rise or say or building on the inventory larger to cover at the upcoming demands and due to supply disruption on -- to avoid the supply disruption and all. But for our case, I believe there is a kind of flattish inventory in the consumer product category. So is it changing any strategy to building up the inventory in the company side or say or anything else? What -- how can we read this step? This is my first question.
Hitesh, to be honest, I think it may be relatively flattish between March '21 and '22. But I think March '21 probably was much higher than March '20 was if I remember correct, or at least March '19 for sure. So I would just say, March '21 itself was a slightly elevated inventory. Therefore, to that extent, I think this is elevated by our yard sticks. We would want it ideally to be lesser than this, but we're not fully able to do that because, like you said, COVID disruptions, et cetera. So we have to sometimes keep some buffer and there is a volatility and what supplies you get to in. It's not easy now. Then we should plan that accurately as we typically like to climb that ladder. But I would say this is on the higher side from what we've traditionally like to keep that.
Okay. Got it, sir. Sir, my next question pertains to the retail touch points. Can you throw some light how much retail touch point by the end of FY '22? And was it kind of, how much was it in FY '21?
It is 230,000. It's marginally increased by about 1,000 or so. It's 2.3 lakhs. Sorry, on an annual basis, we increased by about 11,000. On a quarterly basis, about 1,000. As we've been flagging off in the past, now our focus on expanding that thing is -- that will happen organically. But its focus is more on enhancing the sales per counter. So therefore, you'll see sales grow faster than actual distribution virtually.
As there are no further questions, I now hand the conference over to management for closing comments.
Thank you very much, and thanks, everyone for joining us. We believe that in a tough environment, we've had a good reasonably good quarter, both on settlement milestones that we rate on a P&L basis. And most importantly, the milestone that we rate on our balance sheet, which has been 3 years in the making. We are happy with that. Going forward, it is a big driver for us. This year will be the demerger that we'll see through in the coming year in our calendar year '23 onwards. We look forward to driving growth across all these businesses in the 2 independent entities. Thank you very much.
Thank you. On behalf of Ambit Capital, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.