Agarwal Industrial Corporation Limited — Q1 FY26

Agarwal Industrial Corporation Ltd Q1 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=Dfa8hoJEdzA Published: 8 months ago

0:02 2 seconds Ladies and gentlemen, good day and welcome to the Agraal Industrial Corporation Limited Q1 FI26 earnings conference call hosted by HM Securities. 0:13 13 seconds As a reminder, all participant lines will be in the listenonly mode and there will be an opportunity for you to ask questions after the presentation concludes. 0:23 23 seconds Should you need assistance during this conference, please signal an operator by pressing star and then zero on your touchstone phone. Please note that this conference is being recorded. 0:34 34 seconds I now hand the conference over to Miss Aaraj Jen from H Securities. Thank you and over to you ma'am. 0:41 41 seconds Dan, very good evening ladies and gentlemen. Thank you for joining the Agaval Industrial Corporation Limited Q1 and FI26 earnings call. Joining us on 0:51 51 seconds the call today from the management team is Mr. Whippin Aval, chief financial officer. We will commence the call with the opening thoughts from the management 0:59 59 seconds post which we will open the forum for Q&A session where the management will be glad to respond to any queries that you may have. Before we go on to the main 1:07 1 minute, 7 seconds call, I would like to read the standard disclaimer. There may be forward-looking statements about the company and the subsidiaries which are based on the belief, opinion and expectation of the 1:16 1 minute, 16 seconds company's management. As on the date of this call, the company do not assume any obligation to update their forward-looking statement if those 1:23 1 minute, 23 seconds beliefs, opinion, expectation or other circumstances should change. These statements are not guarantee of future performance and involve risk and 1:31 1 minute, 31 seconds uncertaintities that are difficult to predict. Consequently, listeners should not place any undue reliance on such forward-looking statements. With this, I 1:39 1 minute, 39 seconds will hand over the call to Mr. Vipin Azawal, chief financial officer, to take it forward. Over to you, Vipin, sir. 1:46 1 minute, 46 seconds Thank you Assam. Good afternoon everyone. Thank you for joining the Agava Industrial Corporation Limited earnings conference call for the first quarter ended 30th June 2025. 1:58 1 minute, 58 seconds The earning presentation has been uploaded to the stock exchanges and is also available on the company's website. 2:05 2 minutes, 5 seconds We trust you have reviewed the information provided. 2:09 2 minutes, 9 seconds The company's performance during Q1 FI26 was impacted by a combination of external challenges. Revenue and 2:16 2 minutes, 16 seconds operations was 594 crores reflecting a decrease of 16.1% year on year. AITA was 2:24 2 minutes, 24 seconds 38 crores resulting in an AITA margin of 6.4%. Net profit for the quarter was 13 growth while the performance was 2:32 2 minutes, 32 seconds impacted by certain external factors. We continue to focus on driving long-term growth. and strengthening our market position. 2:41 2 minutes, 41 seconds During the quarter, Bitmen volumes were at 1 lakh 24,600 metric tons 2:49 2 minutes, 49 seconds which were lower than anticipated volumes due to certain external factors. 2:53 2 minutes, 53 seconds Despite these challenges, the Bitman segment remained the largest contributor generating 49 496 crores in revenue. The 3:00 3 minutes shipping segment also played a key role contributing 72 crores or 12.1% of total revenue. These results 3:09 3 minutes, 9 seconds underscore the strength of our integrated model which combines imports, sourcing, manufacturing and logistics ensuring consistent operations even in a 3:18 3 minutes, 18 seconds challenging environment. The quarter was impacted by a combination of geopolitical disruptions and the early onset of the monsoon season. 3:28 3 minutes, 28 seconds Geopolitical tensions particularly between India, Pakistan led to disruption in trade flows and shipping schedules resulting in an estimated loss 3:36 3 minutes, 36 seconds of the field days. Additionally highlighted the geopolitical tensions across USA, 3:44 3 minutes, 44 seconds Iran, the Middle East and Israel disrupted regional trade particularly affecting the UAE and the wider Middle East causing nearly one month of impact 3:52 3 minutes, 52 seconds on shipping movements. The early onset of the monsoon season in India further slowed construction activities leading to softer demand for bitammen. These 4:02 4 minutes, 2 seconds external factors combined with seasonal moderation directly impacted volume bitin volumes and effective overall 4:09 4 minutes, 9 seconds performance during the quarter. Despite these external challenges, India's road infrastructure sector remains a strong 4:17 4 minutes, 17 seconds growth driver. The government has set ambitious targets with projects award expected to reach seven lakh crores by 4:23 4 minutes, 23 seconds FI26 and scaling up to 10 lakhs annually thereafter. Key programs such as Barat Mala and PM Gati are expected to drive 4:32 4 minutes, 32 seconds this growth with the growth of construction 100 constructing more than 100 kilometers of road per year underscoring the scale and urgency of infrastructure development. 4:43 4 minutes, 43 seconds These government initiatives offer strong visibility and sustainability demand for Bitman positioning it as a crucial raw material for the country's 4:51 4 minutes, 51 seconds road construction projects. Building on these development post Q1 FI26 the company announced the acquisition of 4:58 4 minutes, 58 seconds 100% equity shares of conquer storage still private limited a company engaged in portbased industrial and such 5:06 5 minutes, 6 seconds activities. This efficient will further strengthens our logistics and infrastructure capabilities enabling 5:12 5 minutes, 12 seconds EICL to capitalize on the growing demand driven by these government initiative. 5:19 5 minutes, 19 seconds Projected regulatory approvals and execution of the shares share purchase agreement component storage system will become a owned subsidiary of AICS. This 5:28 5 minutes, 28 seconds equation aligns with ASIL integrated platform which spans importing sourcing portbased storage manufacturing and last 5:36 5 minutes, 36 seconds mile delivery and remain a key differentiator in the market with a private sector between market share of 5:43 5 minutes, 43 seconds nearly 20% as statically positioned to capture the opportities arising from 5:49 5 minutes, 49 seconds India's growing infositive demand. The company remains focused on expanding its capacity and strengthening its market position as infrastructure development accelerates. 6:00 6 minutes Looking ahead, Q1 FI26 demonstrates our commitment to demon to operational disciplines and resilience discip 6:09 6 minutes, 9 seconds despite external challenges with the continued enhancement of our infrastructure and logistics capabilities. Kel is well positioned to 6:16 6 minutes, 16 seconds capitalize on the long-term growth opportunities within India's infrastructure sector. We remain focused on scaling our operations, driving 6:24 6 minutes, 24 seconds efficiencies and delivering sustained value as the infrastructure landscape evolves. 6:31 6 minutes, 31 seconds Thank you all for attending today's call. The floor is now open for the questions. 6:37 6 minutes, 37 seconds Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchtone 6:45 6 minutes, 45 seconds telephone. If you wish to remove yourself from the queue, you may press star and two. Participants are requested to please use handsets while asking a 6:53 6 minutes, 53 seconds question. Ladies and gentlemen, we will now wait for a moment while the question queue assembles. Our 7:02 7 minutes, 2 seconds first question is from the line of Kosuk Shaha from Walford PMS. Please go ahead. 7:08 7 minutes, 8 seconds Yeah. Hi. Uh thanks for the opportunity sir. Uh so I had couple of questions. 7:12 7 minutes, 12 seconds Firstly sir u on the you know the volume so obviously in the first quarter we have just clocked one lakh 25,000 uh 7:19 7 minutes, 19 seconds tons and second quarter is usually a dull quarter. So uh last year we guided 6 lakh 50,000 uh tons of volume for 7:28 7 minutes, 28 seconds FI26. So what according to you should we look at in terms of the full year guidance for the volumes? 7:34 7 minutes, 34 seconds Uh as explained in my last call also we uh though we have a shortfall of uh 50,000 metric tons in the first quarter 7:43 7 minutes, 43 seconds we we assume that by the end of this year we should be able to achieve uh the growth as predicted in the earlier corn 7:53 7 minutes, 53 seconds call. So we should be able to do around six lakh tons. Around six lakh tons. 7:59 7 minutes, 59 seconds Yeah. The guidance still remains around 10% of of the volume that we did last year. 8:05 8 minutes, 5 seconds Okay. Okay. Okay. And uh other thing was that on our vessel charting if I look at 8:12 8 minutes, 12 seconds the segmental split uh so over there the EBIT uh no has come down from an average 28% to 11.3% in the quarter. So any specific reasons for the things? 8:24 8 minutes, 24 seconds Yeah, as explained in my opening remarks, there has been uh uh due to the geopolitical situation, the vessels were 8:32 8 minutes, 32 seconds not optimally utilized. So they vessels were under utilization in this quarter. Okay. 8:38 8 minutes, 38 seconds Hence affected the margins. 8:42 8 minutes, 42 seconds Okay. So now almost two months have passed in this quarter. So any improvement uh that we should assume from the previous quarter or 8:49 8 minutes, 49 seconds Yeah, there are improvements in this quarter because as explained these geopolitical situations no one can predict and no one will even assume that 8:58 8 minutes, 58 seconds there can be a India park war which lasted maybe for a short period but it impact does impact business. 9:06 9 minutes, 6 seconds Okay so we should uh okay fair enough. 9:09 9 minutes, 9 seconds And lastly I'll again the last question was that how much BTN volume are handled through our own vessels out of the 1 lakh 25,000 it's almost 60% 60 63%. 9:20 9 minutes, 20 seconds 63%. 9:22 9 minutes, 22 seconds Okay. I'll join back with you for further questions. Thank you sir. Thank you. 9:29 9 minutes, 29 seconds The next question is from the line of Yash WHMA from Abnwise. Please go ahead. 9:36 9 minutes, 36 seconds Hi am I audible? Uh sir you are audible you may proceed. 9:42 9 minutes, 42 seconds Uh so sir in FI25 the company miss it 20% volume growth guidance due to the uh vess maintenance and cyclone related 9:50 9 minutes, 50 seconds disruption. So now for fi 26 the company again guided for 20% volume growth with stronger quarter expected in quarter 1 9:58 9 minutes, 58 seconds and quarter 4. However the quarter 1 has already seen a 26.9% yearon-year dio. So does the management is still confident 10:07 10 minutes, 7 seconds in the achieving this guidance and uh what specific actions are you going to take to mitigate such external uh risk 10:15 10 minutes, 15 seconds and ensure the volume recovery in the remaining quarters? 10:19 10 minutes, 19 seconds We have done close to 5 lakh 35,000 in FI25 425 and we assume that we would be 10:26 10 minutes, 26 seconds growing at around 10% nearly 10% of the given volume. So we should be our guidance still remains at around 6 10:33 10 minutes, 33 seconds months all depending upon geopolitical again this time we would I would like to add a disclaimer of geopolitical situations because if there is any 10:42 10 minutes, 42 seconds disturbance in geopolitical maybe between any country it may impact 10:49 10 minutes, 49 seconds the flow of product but these all factors are already passed now hence for 10:56 10 minutes, 56 seconds the balance two quarters we will be able to give you better guidance in the third quarter. 11:04 11 minutes, 4 seconds Okay sir and sir if you could provide me with your AIA guidance per 11:12 11 minutes, 12 seconds return still remains around same level that we had given in the first quarter around 4300 more than 4300 for the year. 11:20 11 minutes, 20 seconds Okay. Thanks. Thanks. 11:24 11 minutes, 24 seconds Thank you. Ladies and gentlemen, if you wish to ask questions, you may please press star and one. 11:32 11 minutes, 32 seconds The next question comes from the line of Tanmi from H Securities. Please go ahead. 11:37 11 minutes, 37 seconds Yeah. Uh hello sir. Again I think it would be a bit of a repetition but the question remains same regarding the guidance that you know earlier we had 11:45 11 minutes, 45 seconds guided for FI28 that you'll be doubling your re uh your volume from FI25 given the disciplines that we had placed 11:54 11 minutes, 54 seconds in FI25 due to dry docking and maintenance and now in FI26 due to geopolitical situation so are we also 12:02 12 minutes, 2 seconds shifting our target of FI28 to any later years or something? 12:08 12 minutes, 8 seconds Uh thank you so much. If you have seen the track record of the company in FY22 23 we clocked around 4 lakh 25,000 tons. 12:16 12 minutes, 16 seconds In the next year we clocked around 4 lakh 90,000 which is almost a 10% growth and uh in 2425 we we did around 5 lakh 36,000 tons which is again 10% growth. 12:30 12 minutes, 30 seconds uh I would like to recolor in FI2324 we we did around 16% growth from 4 lakh 12:37 12 minutes, 37 seconds 24,000 to 490 and in 2425 we did around 5 lakh 35,0004 from 4 lakh 90,000 which is almost a 9.19% 12:46 12 minutes, 46 seconds growth given these factors the guidance for the FY28 still remains the same because this the this this last quarter 12:54 12 minutes, 54 seconds was one of the quarters wherein which is affected due to geopolitical situation which may not arise every year. Hence, our guidance remains the same for FI28. 13:08 13 minutes, 8 seconds Okay. But given the fact that you also lowered your EDIA guidance from 45,00 to 4,300 levels and I said more than 4,300 ma'am. 13:18 13 minutes, 18 seconds Okay. But still I think lower than 4,500 which you earlier guided and there'll be also higher depreciation due to the one more vessel you had acquired and 13:26 13 minutes, 26 seconds acquired in last quarter. So how do you see your bottom line going forward? 13:32 13 minutes, 32 seconds Bottom line I would like to give you in meta terms only. We we had around 4100 in FY 2425. The guidance earlier was given at 4500. We still maintain. 13:43 13 minutes, 43 seconds However would be adding a disclaimer at minimum 4,300. 13:48 13 minutes, 48 seconds Okay. Okay. Okay. Perfect. That makes sense. Thank you so much. Thank you. 13:53 13 minutes, 53 seconds Thank you. We have our next question from the line of Suesh B from Wealth Guardian. Please go ahead. 14:01 14 minutes, 1 second Uh yeah, thank you for the opportunity. Am I audible? Uh yes, you are audible, sir. 14:06 14 minutes, 6 seconds Yeah. Yeah. Uh sir, in Q1 as per official data, the total bits to 14:13 14 minutes, 13 seconds India have risen by 3%. While we have lost your volumes of 27%. 14:19 14 minutes, 19 seconds So what kind of market share loss have we have have we experienced in Q1? 14:24 14 minutes, 24 seconds In the first quarter, our uh sales volume is volume is down by almost uh 20%. 14:33 14 minutes, 33 seconds From the preceding last year's first quarter, divide 170 and now this year we are going to know 126. Yes. Yes. 14:41 14 minutes, 41 seconds 125. 14:42 14 minutes, 42 seconds Yes, I understand the volume drop. I'm asking about the market share drop because the total bit and Indian uh imports have risen by 3% but we have 14:50 14 minutes, 50 seconds actually lost volumes. So Hank I was talking about the market share drop what the increase that you in is in terms of 14:58 14 minutes, 58 seconds drums not in bulk and the bulk volume still was lower by almost 8 to 10% in the first quarter. 15:08 15 minutes, 8 seconds Okay. Okay. Understood. And um uh in this quarter as in for the last couple 15:15 15 minutes, 15 seconds of quarters uh we are seeing higher tax provisioning for example in Q4 tax provisioning was 17% in Q1 that is 22%. 15:25 15 minutes, 25 seconds Uh has there been any uh change in tax laws in UAE? 15:30 15 minutes, 30 seconds No. The difference between Q1 and Q4 is basically due to the volumes. As we 15:36 15 minutes, 36 seconds assume in Q4 when we have we we see that the volumes are high does the taxation we have to pay higher taxes as as per 15:44 15 minutes, 44 seconds the advanced tax norms by the income tax. Hence you see the differences but the tax uh plan remains the same. 15:54 15 minutes, 54 seconds Uh all right. Uh so and um uh in the shipping vertical uh we have seen a big uh margin drop as well as a revenue 16:02 16 minutes, 2 seconds drop. Uh what are the key costs in the shipping vertical? Sorry, can you come back again please? 16:09 16 minutes, 9 seconds Sir, in the shipping vertical uh we have seen a margin drop from 32% to 11%. And we have also seen a uh revenue drop by 16:18 16 minutes, 18 seconds almost 22 24 crores. There has been a drop in revenues. What are the key costs in the shipping vertical? Why why is there such a 20% uh margin drop? 16:29 16 minutes, 29 seconds Your cost fixed cost remains the same in any business that you do. Even in the shipping side, your fixed cost of wages, 16:36 16 minutes, 36 seconds crew, the shipping operation, everything remains same irrespective whether the vessel is moving or not. as as uh as 16:45 16 minutes, 45 seconds explained due to the geopolitical situations when the vessels were not moving but your cost fixed cost was remains the same and you you you tend to 16:52 16 minutes, 52 seconds lose on the revenues because the voyages are not complete due to the factors explained that is that is the reasons the expenses side remains the same 17:01 17 minutes, 1 second whereas the revenues are on the lower side. 17:05 17 minutes, 5 seconds All right. So so I have one last question on the recent acquisition that we did. uh so even before that we were 17:13 17 minutes, 13 seconds already building up a 40,000 uh metric ton uh storage at the Mangalore and I'm assuming this recent acquisition was 17:20 17 minutes, 20 seconds very nearby in car is what I'm assuming because of the name of the company so can you give more details about it as in what is our cost 17:28 17 minutes, 28 seconds for that uh what kind of capacity does it hold and what is the strategy for having another port nearby to one that we are already building 17:36 17 minutes, 36 seconds we are already operating at both the places even in carvar and mangor both the both the places are giving almost 35 17:43 17 minutes, 43 seconds to 40% of company's revenue every year and at both the places we are having tankages on lease hence we have acquired 17:51 17 minutes, 51 seconds uh existing company in carvar and building our own storage in Mangalore thus this will contribute in in saving 18:00 18 minutes our rental expenses that we are paying towards the operations in both the two locations thereby adding to the bottom 18:07 18 minutes, 7 seconds line in terms living addition to renters by increasing throughputs. 18:14 18 minutes, 14 seconds Okay. All right. So, can you give us the cost and capacity for this new acquisition? The cost the new equation is having existing 18:21 18 minutes, 21 seconds capacity of more than 24,000 tons and the total capex will be more than 30 crores in this. 18:28 18 minutes, 28 seconds Okay sir. Understood. Thank you sir. Thank you sir. Thank you. 18:35 18 minutes, 35 seconds participants to ask a question you may press star and one on your touchstone telephones. 18:40 18 minutes, 40 seconds Our next question comes from the line of Vishuanat A from Prosperity Wealth Management. Please go ahead. 18:47 18 minutes, 47 seconds Good evening sir. Thanks for taking question. So we have recently added capacity during the quarter of the so I just wanted to understand how what is 18:56 18 minutes, 56 seconds the capex for it and how have we funed it. 19:02 19 minutes, 2 seconds Can you please repeat your question again please? 19:05 19 minutes, 5 seconds Yes, regarding the edition, sorry to interrupt. Uh, you're coming through a little muffled. So, may we request you to please check on the mode yet that you're using for your handset. 19:16 19 minutes, 16 seconds Is it better? This is much better. Please go ahead. 19:19 19 minutes, 19 seconds Yeah. So, regarding the virtual edition in Q1, I wanted to understand what was the capex and how have we funded it? 19:29 19 minutes, 29 seconds The vessel was acquired in the fourth quarter which is operational in this quarter. We had already given the details of this vessel in the previous phone call. 19:40 19 minutes, 40 seconds Okay. Okay. Okay. And my second question is are uh in our presentation you have mentioned that demand growth is four to 19:47 19 minutes, 47 seconds 6% a year but we are targeting uh mic growth for so what is the rational 19:55 19 minutes, 55 seconds behind the problem every year as we have explained in the earlier phone calls this volumes that we 20:03 20 minutes, 3 seconds are anticipated to uh bring inside in into the Indian ports it requires lot of logistical challenges. is 20:12 20 minutes, 12 seconds thus we we are focusing on the challenges to increase the volume and 20:19 20 minutes, 19 seconds also get into the market share of existing importers. 20:27 20 minutes, 27 seconds Okay, that questions. Thank you. Thank you. 20:32 20 minutes, 32 seconds Thank you. Our next question is from the line of Yash from Equitry Capital. Please go ahead. Yeah. uh thank you for the opportunity. 20:41 20 minutes, 41 seconds So in the previous course that you have mentioned that demand has never been the problem but uh also you said uh recently 20:48 20 minutes, 48 seconds that there is uh there has been dropped by 10%. So Bitman consumption has dropped by 10% in this quarter. So sir 20:55 20 minutes, 55 seconds uh first is that so how is demand looking as of now and so second you said on the logistics side that uh bringing 21:02 21 minutes, 2 seconds the is a problem but we have brainstoring it by adding more it's a 21:09 21 minutes, 9 seconds challenge problem correct sir so uh we have the capacity of around 1 lakh 13,000 and we can do 21:17 21 minutes, 17 seconds around 8 to nine round trips so considering that we can do 9 to 10 lakh ts So I want to understand on both the fronts like how are we seeing it. 21:28 21 minutes, 28 seconds Can you put can you break your questions for me to answer please? 21:32 21 minutes, 32 seconds Correct. So first is on the demand side and second is on the logistic side. So these are the two questions. 21:37 21 minutes, 37 seconds As I explained there is no no problem in terms of demand for the product. But if you are seeing the weather conditions 21:45 21 minutes, 45 seconds which from the month of May the monsoons have arrived earlier this year. Hence there was a low demand of product 21:54 21 minutes, 54 seconds because construction activities do not happen during monsoons. That is one of the factors which is uh which is lead to 22:01 22 minutes, 1 second lower production uh of construction of the road. Hence requirement of betammen. 22:09 22 minutes, 9 seconds I hope I have addressed your question. Got it. Sir on the logistics. 22:15 22 minutes, 15 seconds Can you repeat the question again please? 22:17 22 minutes, 17 seconds Yes. So as I said the with the vessel capacity of of around 1 lakh 13,000 and also we can do around long round trips of 8 to 9 tons. So we can bring in around 9 to 10 lakhs of right? 22:30 22 minutes, 30 seconds Yes. So uh so as as I've explained earlier in my concourse when we are 22:36 22 minutes, 36 seconds going to the east uh eastern co coast of India it takes around 40 to 45 days for us to complete the uh one cycle of 22:45 22 minutes, 45 seconds vitamin uh supply towards east and we are working only during 8 months in a year. 4 months of the monsoons we are 22:53 22 minutes, 53 seconds not bringing any product into India or you can say lower volumes are moved into India. So hence for India we are 23:00 23 minutes only doing 8 months of uh vessels uh turning around. 23:07 23 minutes, 7 seconds Okay. Got it. And um also uh 23:20 23 minutes, 20 seconds can you hear me? 23:21 23 minutes, 21 seconds Uh yes you are not audible at the moment. Hello. Can you hear me? Yes we can hear you. Please go ahead. 23:28 23 minutes, 28 seconds Yes. So, so second question is can you please help us understand about the shipping segment like how is the revenue generated? What is the charter rate per 23:36 23 minutes, 36 seconds day offered and and how is what is the fix? When does it break even? 23:42 23 minutes, 42 seconds Commercials we usually do not disclose commercials but other vessels are always moved on maybe a void charter or a time charter. 23:54 23 minutes, 54 seconds Okay, that's it from Thank you sir. 23:58 23 minutes, 58 seconds Thank you. The next question comes from Botala Lakshman Kumar from Chrysell. Please go ahead. 24:05 24 minutes, 5 seconds Yeah. Uh am I audible? You are audible. So you may proceed. 24:10 24 minutes, 10 seconds Yeah. Uh sir, thank you for the opportunity. Uh sir, I would like I mean as majorly uh on business side many people has asked questions. So I would 24:18 24 minutes, 18 seconds like to know uh know better regarding the liquidity profile. So how is the liquidity currently regarding our company? Absolutely no problem in terms of liquidity. 24:29 24 minutes, 29 seconds Okay. So uh in terms of any free cash or uh you know uh anything you can disclose that is one of the reasons we have 24:38 24 minutes, 38 seconds putting a Mangalore and carvar projects wherein as on date the companies funded all the cost of these two projects through their internal appro. 24:47 24 minutes, 47 seconds Okay. Thanks. Thank you. 24:55 24 minutes, 55 seconds Participants you may press star and one to ask a question. Our next question comes from the line of Kesha from Rakan investors. Please go ahead. 25:04 25 minutes, 4 seconds Uh yes sir you mentioned uh the Indian Bitamin imports have dropped by 8% year on year and our volumes have uh come down by 24%. 25:15 25 minutes, 15 seconds So how significant is this underperformance? So are there quarters where these kinds of differences are expected or are we seeing uh increased 25:23 25 minutes, 23 seconds competition which might be straining our market share? 25:26 25 minutes, 26 seconds Uh thank you so much. I have explained earlier it the demand of the bitmen has gone down in the first quarter due to 25:33 25 minutes, 33 seconds the early onset of monsoon along with the factors uh geopolitical issues in the middle east and the gulf 25:42 25 minutes, 42 seconds region that is one of the reasons where which led to lower imports of bitammen. 25:48 25 minutes, 48 seconds There is no problem in terms of requirement of bitammen into India. It is purely because of two reason three 25:55 25 minutes, 55 seconds reasons. the geopolitical situation between India Park, US, Israel and the 26:01 26 minutes, 1 second Middle East and the monsoons these three factors 26:08 26 minutes, 8 seconds in lower imports of bitammen okay so there's no impact on our market share that is basically what I was 26:16 26 minutes, 16 seconds trying to understand if you if you see the entire year I think you you you should be able to see better performance than we did into 2425 Right. 26:26 26 minutes, 26 seconds Okay. And sir, the the chartering margins should they also bounce back to earlier figures in the upcoming quarters? 26:32 26 minutes, 32 seconds Bounce back as and when we start uh increasing the volumes and the vessels are utilized 100%. 26:40 26 minutes, 40 seconds All all the numbers and aa that we used to see in the earlier quarters you'll be able to see in the next three quarters. 26:49 26 minutes, 49 seconds Usually even quarter 2 is a slow quarter for us if you see here on here but Q3 Q4 should be a good quarter this year. 26:57 26 minutes, 57 seconds Okay. And sir lastly uh with the opening up of NHI tenders worth 3.4 lakh crores this year. So do you think we could see 27:05 27 minutes, 5 seconds a higher volume growth than 10% what we are guiding now or could there be a much better growth in the following year? 27:12 27 minutes, 12 seconds I I assume we should be able to grow better than uh the the forecast that guidance that we are giving as you as 27:21 27 minutes, 21 seconds you mentioned there are a lot of tenders being awarded which which are scheduled to be executed in this next two three quarters. 27:29 27 minutes, 29 seconds Okay. Thank you sir. That's all from my side. Thank you. 27:36 27 minutes, 36 seconds Our next question comes from the line of cost Saha from Walford PMS. Please go ahead. 27:47 27 minutes, 47 seconds Uh Costa your line has been unmuted. You may proceed with your question. 27:52 27 minutes, 52 seconds Hello. Oh yeah. Thanks. Thanks for the opportunity again sir. Uh I had two questions. One was uh so you some participant asked about the maximum 28:01 28 minutes, 1 second volume that we can do and you gave a very detailed answer but uh in in terms of tonnages if you can just know uh can you give a number that on 1 lakh 25,000 28:10 28 minutes, 10 seconds capacity of vessels what is it that no peak capacity that we can handle for 8 months or for 9 months whatever business 28:17 28 minutes, 17 seconds we can do if at all at full capacity we operate we we we can easily do five to six lakh tons 28:24 28 minutes, 24 seconds only that much so for any uh Now we'll be hitting six lakh tons this year. So this have to be sorry sorry go ahead say 28:32 28 minutes, 32 seconds there are turnaround see all the vessels when they are going to a particular port there is a time consuming 28:40 28 minutes, 40 seconds there are days lad days which they take from one port to the another and in during that time we require additional products. Hence we have to take we are 28:49 28 minutes, 49 seconds always taking vessels from outside even on date. So the total capacity that you will be having it is not necessary that 28:56 28 minutes, 56 seconds you can use it 100% all the time because some vessels may be at the load port for loading and some vessels will be at the 29:02 29 minutes, 2 seconds discharge port for discharging sense understood and continuous movement of vessels when we try to optimize the 29:10 29 minutes, 10 seconds maximum uh utilization of the vessels for the particular period. 29:17 29 minutes, 17 seconds Okay sir. Okay. So which means that uh our capex will continue whenever we get a good opportunity we may still keep on buying the vessels. Correct? 29:24 29 minutes, 24 seconds Yes. As explained in all my earlier conference uh conf calls as and when we get any good opportunity for acquiring any new vessels the company will 29:31 29 minutes, 31 seconds definitely go for it because we still require vessels as we are taking from third parties. Understood. Understood sir. Thank you. 29:38 29 minutes, 38 seconds That was on uh the this and secondly on the uh Konen uh storage acquisition. I had one or two questions on that. Uh so 29:46 29 minutes, 46 seconds what is the capacity uh which the storage facility will be able to handle? 29:52 29 minutes, 52 seconds It is already having a capacity of more than 24,000 metric tons k 24,000 metric tons. Okay. And over here 30:00 30 minutes so you had mentioned in the precise also that all all solid liquides all all three know kind of forms of material can 30:09 30 minutes, 9 seconds be uh handled through this facility. Is that right? Yes. 30:15 30 minutes, 15 seconds Okay. And in which part of the country is this facility available? 30:23 30 minutes, 23 seconds And one last question on this side. So we paid uh some uh 22 crores of no uh compensation for for this acquisition. 30:31 30 minutes, 31 seconds Uh whereas know the FI 24 turnover was just about 3.5 crores. So uh do you feel that no uh the acquisition was a bit too pricey at 6.5 price to sales? No, no. 30:42 30 minutes, 42 seconds See these are terminals wherein you always have to see a the replacement cost of any terminal or if you have to 30:50 30 minutes, 50 seconds set up a terminal what will take for you to set up that uh that equation that you are acquiring. If you see Mangalore we are building a new tanks. 31:02 31 minutes, 2 seconds So we know the cost of making any tankages and here this this is a ready establishment wherein it is having the 31:10 31 minutes, 10 seconds licenses already already having B and C class licenses as well. So we need to capitalize on the readyment infrastructure that we have. 31:22 31 minutes, 22 seconds Okay sir. Got it. Got it. Thank you. 31:24 31 minutes, 24 seconds Thank you sir. Thanks for answering all my questions and all the best for the future. Thank you. Thank you so much. 31:30 31 minutes, 30 seconds Thank you. Our next question is from the line of Riddhi Agarwal from an individual investor. Please go ahead. 31:37 31 minutes, 37 seconds Thank you for the opportunity. So basically uh I got through your point that we are confident to do good uh 31:44 31 minutes, 44 seconds margins and good financials in the coming quarter but can you specifically um lay down the steps which will be take 31:53 31 minutes, 53 seconds uh improve the margins and determine volume. So apart from being affected by the geopolitical conditions so what are 32:00 32 minutes the steps taking companies taking to improve the margin as as explained in the earlier con calls 32:07 32 minutes, 7 seconds as we increase the volume your bottom line will tend to improve because your fixed all the fixed expenses remains the same and thereby you are increasing your 32:16 32 minutes, 16 seconds throwboard which with the addition of the new two uh terminals which are which will be operational in 32:23 32 minutes, 23 seconds this year we will tend to save even on the rental side and thereby increasing the volume the cost of throughput would be lower. Hence it will add to the bottom lines in terms of water margin. 32:36 32 minutes, 36 seconds Okay. Okay. Fair enough. My second question would be sir on the dry docking impact like we have the problem of our 32:43 32 minutes, 43 seconds vessels being drying up and in the earlier phone call also we you guided that around 15,000 to 30,000 metric ton 32:51 32 minutes, 51 seconds is expected to be um dyed off. So are we expecting this to reduce or you are just being consistent with this numbers? 33:00 33 minutes You see as as the number of vessel increases there will be one or two vessels which are required to do bride do in a year and that is part of normal 33:09 33 minutes, 9 seconds business. So it is not that but those day those period you have to count as nonoperational which affects in a particular quarter when they are in in dried off. 33:20 33 minutes, 20 seconds So we are expecting around 15 to 30,000 metric ton capacity to dry out this year also. 33:25 33 minutes, 25 seconds This year's dry dock of two vessels has already been completed as on date. 33:29 33 minutes, 29 seconds Two. Okay. Sure. Sure. Thank you so much and all the vessels. Thank you. Thank you. 33:37 33 minutes, 37 seconds Our next question comes from the line of Miraa Muzafurin an individual investor. Please go ahead. 33:45 33 minutes, 45 seconds Hello. Thank you for providing me the opportunity. So my question is that uh with carvar and conan operational how 33:52 33 minutes, 52 seconds much impact will that it have on our margin? 33:57 33 minutes, 57 seconds This will add to saving of the rentals that we are paying at that port. 34:05 34 minutes, 5 seconds Uh so in terms of a percentage point and you haven't can you give percentage is very difficult to answer. 34:14 34 minutes, 14 seconds Okay. And uh my second question is like uh I already asked by another participant that this year around 3 and 34:22 34 minutes, 22 seconds a half lakh kes of um projects are being awarded. How much incremental bit demand can capture in Q3 Q2 in the corresponding quart? 34:32 34 minutes, 32 seconds It varies from project to process as as and when they execute once they start the earth work the requirement of all the projects are in different phases. 34:42 34 minutes, 42 seconds very difficult to answer in terms of uh volume or when how much they will require but as the projects will be 34:50 34 minutes, 50 seconds executed there will be demand created which is anyways additional to the existing demand in India. 34:57 34 minutes, 57 seconds Okay. Thank you. Thank you so much. Thank you. 35:06 35 minutes, 6 seconds Ladies and gentlemen, we have no further questions. I would now like to hand the conference over to Miss Aasta Jen for any closing remarks. Over to you. 35:15 35 minutes, 15 seconds Thank you Darin. On behalf of Securities Limited, I thank Limited team for giving the time spent 35:23 35 minutes, 23 seconds on the call and responding all the queries in a detailed way. I would also like to thank all the participants for joining this call. Now I would like to hand over the call to moderator for closing remarks. 35:34 35 minutes, 34 seconds Thank you. On behalf of H Securities, that concludes this conference. Thank you all for joining us. You may now disconnect your lines.