Allied Blenders and Distillers Limited — Q3 FY26

Allied Blenders and Distillers Ltd Q3 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=uu_O4DRUCUA Published: 3 months ago

0:01 1 second Ladies and gentlemen, good day and welcome to Allied Blenders and Tistlers Q3 and 9M FI26 post earnings conference 0:10 10 seconds call hosted by Antic Talk token. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask 0:18 18 seconds questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then 0:26 26 seconds zero on your Touchstone phone. Please note that this conference is being recorded. I now hand the conference over 0:33 33 seconds to Mr. Abijit Kundu. Thank you and over to you Mr. Kund. 0:38 38 seconds Yeah. Hi. Thanks. It's our absolute pleasure to host the management of a light blenders and distillers limited for the third quarter of 26. Over to uh 0:46 46 seconds Mr. Mukun, head of investor relations and uh chief risk officer for further proceedings. Thank you. 0:53 53 seconds Thank you Vij. Good evening everyone and thank you for joining our Q3 FI26 results conference call. I hope you have received a copy of our results 1:01 1 minute, 1 second presentation. I would like to urge you to go through this along with the disclaimer slides. Today we have with us from the management of ABD Mr. Shikhar Ram Morti executive deputy chairman Mr. 1:12 1 minute, 12 seconds Aloo Gupta managing director Mr. Jan Banar chief financial officer. I would like to hand over the call to our MD Aloo Gupta who will give the summary of 1:20 1 minute, 20 seconds the company's quarterly performance before we open up a Q&A. Over to you. 1:24 1 minute, 24 seconds Uh thanks Lukun. Uh good evening ladies and gentlemen. Uh thank you all for joining us today for the Q3 and the 9 month FI26 earning call of a line vendor 1:33 1 minute, 33 seconds and distillers. Um and also take this opportunity to wish each one of you the very best for the year ahead. Uh I'm pleased to share that this quarter marks 1:41 1 minute, 41 seconds our sixth consecutive quarter of strong performance post testing with consistent improvement in the premiumization of our portfolio margins and cash flows. The 1:51 1 minute, 51 seconds sustained performance over the last several quarters underscores the effectiveness of our strategy which remains firmly centered around driving 1:58 1 minute, 58 seconds profitable growth, extending our premium portfolio and investing in backward integration to enhance margin and ensure supply chain security. 2:07 2 minutes, 7 seconds During Q3 FI26, our consolidated income from operations stood at 1,04 crores, 2:14 2 minutes, 14 seconds representing a 2.8% increase over Q3 FI25. 2:19 2 minutes, 19 seconds AITA for the quarter was 137 crores reflecting a 14.1% year-on-year growth with an IITA margin improvement to 13.6%. 2:30 2 minutes, 30 seconds This improvement was driven by better product mix operating leverage and benefits from backward integration while we continue to invest behind our brand and building our luxury portfolio. 2:41 2 minutes, 41 seconds On the profitability front, PAT grew by 10.9% yearonear to 64 cr during the quarter. 2:48 2 minutes, 48 seconds For the 9month period, our consolidated income operations stood at 2,929 2:55 2 minutes, 55 seconds crores, representing a 12.4% increase over 9 months FY25. 3:01 3 minutes, 1 second IITA for the period was 386 crores reflecting a 28.1% year-on-year growth 3:08 3 minutes, 8 seconds with IITA margin improving to 30.2 and PAT at rupees 182 crores reflecting a 3:14 3 minutes, 14 seconds 57% year-on-year growth. Our 9 month performance is a performance reflection of strong fundamentals, steady revenue growth, improving margins and strong 3:23 3 minutes, 23 seconds operating cash flow generation, reinforcing the scalability of our business model and structural benefits of premiumization. 3:30 3 minutes, 30 seconds In terms of volume, we sold 9 million cases in quarter 3 FI26, marking 1.3% year-on-year increase, supported by a 7% 3:39 3 minutes, 39 seconds improvement in realization per case, driven by an improved product mix and selective price increases. 3:45 3 minutes, 45 seconds At the industry level, the mass premium whi segment softness during Q3 FI26. 3:51 3 minutes, 51 seconds As already discussed over Q2 FI26 earning call, stocking loans in Pelangalana were impacted due to the retail license auction process which led 3:59 3 minutes, 59 seconds to temporary moderation in the trade inventory levels. We are expecting normalization during uh QCF FYI26 itself 4:06 4 minutes, 6 seconds and normalization is also visible in January 2026. In Maharashtra, policydriven price changes affected 4:14 4 minutes, 14 seconds consumer affordability and buying behavior resulting in a lower consumer uptake. Together these region specific factors contribute to subdued demand 4:22 4 minutes, 22 seconds condition across the industry for the quarter. 4:25 4 minutes, 25 seconds Within our portfolio officer's choice continues to play a pivotal role in the business. The brand maintained maintains its leadership position in the mass 4:33 4 minutes, 33 seconds premium segment in India and remains country's top exported whiskey brand. 4:38 4 minutes, 38 seconds Despite category level headwinds, officer choice gained incremental market share during 9 month FI26 and also in Q3 4:45 4 minutes, 45 seconds FI26 reflecting sustained brand strength and distribution reach. Importantly, the brand continues to deliver improving 4:53 4 minutes, 53 seconds gross margins now at about 45% making it a critical driver of profitability and cash flow in the company. Our PMA 5:02 5 minutes, 2 seconds portfolio continue to demonstrate strong momentum. Volume grew 16.9% on year-on-year basis, resulting in a meaningful improvement in the salience 5:10 5 minutes, 10 seconds of PN segment to 48.5% in Q3 FI26 compared to 42% in Q3 FI25. 5:18 5 minutes, 18 seconds The sharp improvement reflects the continued success of our premiumization strategy and our focus on building scale with value. 5:27 5 minutes, 27 seconds Iconic continues to be standout performer and remains one of the strongest pillars of our premiumization journey. Iconic White has also emerged 5:35 5 minutes, 35 seconds as a brand of choice for the new uh consumer coming to the legal drinking age, further strengthening its long-term 5:43 5 minutes, 43 seconds growth potential. The brand continues to expand its presence both domestically and internationally, reinforcing its role as a key growth engine within our 5:51 5 minutes, 51 seconds PNA portfolio. For the 9month period, it has delivered 7.7 million cases uh compared to 5.7 million cases delivered in the entire previous financial FI25. 6:04 6 minutes, 4 seconds It is well on progress to touch 10 million cases mark in this financial year. 6:10 6 minutes, 10 seconds Coming to our next millennia brand, Sterling is a V7. In Q2 FI26, we introduced a refreshed blend with enhanced smoothness and tail supported 6:17 6 minutes, 17 seconds by nationwide campaign so smooth must be magic and a differentiated digital collaboration with cricketer SHA. This 6:25 6 minutes, 25 seconds initiative helps strengthen consumer engagement and grow traction across select priority markets. This underscores our continued focus on 6:33 6 minutes, 33 seconds product improvement and consumer centric brand building. Building on this momentum, we are progressing towards the launch of a contemporary packaging by Q1 6:41 6 minutes, 41 seconds FI27 aimed at appealing to the new age consumer and supporting further market share expansion. 6:47 6 minutes, 47 seconds Officers choice blue one of a million brand in the prestige segment continues to be a strong regional power brand supported by the equity and recall of 6:56 6 minutes, 56 seconds officers choice franchise. Currently our focus on refreshing the brand through a international thrive packaging is well on track and we expect it to roll out in Q1 FI27. 7:08 7 minutes, 8 seconds Update on a CSV market. CSV is one of the most profitable sales channel for the industry with the annual volume of 10 to 12 million cases and is 7:16 7 minutes, 16 seconds strategically important. We are pleased to share that four new brand of ours have now been approved uh within the CSD 7:23 7 minutes, 23 seconds market. Jolly Roger Ram Sterling with a V7 Chiron and iconic. Some of these brands we've also started building. This 7:32 7 minutes, 32 seconds approval in CSV will become yet another growth track for our brands especially for SRB7 and iconic whiskey. 7:41 7 minutes, 41 seconds ABD Maestro made strong progress progress during the quarter. We launched three new brandka yellow designer whiskey and out which is 7:50 7 minutes, 50 seconds pronounced as a Irish whiskey. Further strengthening our premium and luxury offering. These launches are aligned with ABD Masters focus on building 7:58 7 minutes, 58 seconds differentiated design brands anchored in quality and craftsmanship and position us where to participate in the fast evolving premium consumption landscape. 8:07 8 minutes, 7 seconds Now we have built nine brand portfolio with unique flavor price point through a build buy and partner model. Alongside 8:15 8 minutes, 15 seconds new brand AD Maestro continue to expand its presence across e consumption channel. During the quarter, we introduced our premium portfolio at 8:23 8 minutes, 23 seconds Mumbai International Airport, adding to the existing 2TV presence at Delhi and Bangalore airport and enhancing brand visibility among international travelers and premium consumer. 8:34 8 minutes, 34 seconds Our international expansion strategy continues to deliver strong results. 8:38 8 minutes, 38 seconds Over the last 21 months, ABD has expanded its footprint from 14 countries to 31 countries, highlighting the effectiveness of our asset light high 8:46 8 minutes, 46 seconds margin export model. This model delivers high profitability uh than the domestic business and operates at significantly 8:53 8 minutes, 53 seconds lower working capital for cases. Iconic wipe now is present in nine countries. 8:59 8 minutes, 59 seconds AVD Mastro brand Zoya and our house is now available in three countries in UAE, Ivory Coast and New Zealand. By Q4 FI26, 9:07 9 minutes, 7 seconds we are targeting to expand our international presence to 35 countries. 9:12 9 minutes, 12 seconds Moving to our backward integration program. 9:17 9 minutes, 17 seconds Uh backward integration program as you all know uh has been designed uh in terms of being aida accurative and it 9:24 9 minutes, 24 seconds continues to be executed in a phase manner and a discipline where the focus is on cost of build time to build and delivering the margin and is aligned 9:32 9 minutes, 32 seconds with our long-term objective of growth margin expansion and balance sheet setting. Phase one outlined in previous 9:40 9 minutes, 40 seconds quarters, we had announced 525 crores of investment program including a pet bottling manufacturing facility which is 9:47 9 minutes, 47 seconds fully commissioned and is running to capacity and adding to the margin. Our two other projects of mall distillary in 9:55 9 minutes, 55 seconds Telangana and ENA Maharashtra are on track. Together these strate strategic initiatives are expected to enhance our 10:01 10 minutes, 1 second gross margin by 300 basis point by FY28 quarter 4. 10:07 10 minutes, 7 seconds In the phase two uh in the phase 2 comprises of incremental growth capex announced in January 26 focused on expanding own capacity across critical 10:16 10 minutes, 16 seconds nodes of the value chain. These include an investment of approximately 110 crores in Uttar Pradesh which is a large 10:24 10 minutes, 24 seconds market for us. Uh the investment includes around 40 cr towards upgradation and commissioning of a fully automated bottling facility enabling 10:32 10 minutes, 32 seconds meaningful own versus outsourcing arbitrage with the optionality of future ENA distillation expansion on the site. 10:39 10 minutes, 39 seconds This bottling unit is expected to be operational by Q3 FI27 and will also save us a franchise fee of M 27 per case 10:46 10 minutes, 46 seconds which is currently payable. In addition, the company has approved a further investment of approximately 54 crores in 10:53 10 minutes, 53 seconds our subsidiary Minashi which is in uh Maharashtra towards expansion of bottling capacity at Orangabadar 11:00 11 minutes facility. This investment will support growing demand in the western region and international market while improving the operational efficiency, optimizing 11:09 11 minutes, 9 seconds logistics cost and enhancing margin through high utilization of own bottling infrastructure. The expanded facility is 11:16 11 minutes, 16 seconds expected to be operational by FI Q4 of FI27 and will again add to our AIDA margins. Overall, our capex strategy 11:24 11 minutes, 24 seconds remains centered on discipline capital deployment, deeper backward integration and building scalable margin accredited capacity while maintaining balance sheet 11:33 11 minutes, 33 seconds prudence. Our performance continues to reflect strong operating cash flow generation supported by robust profitability and disciplined working 11:41 11 minutes, 41 seconds capital management. During Q3 FI26, we generated operating cash flow of 173 crores. Our net debt position stood at 11:50 11 minutes, 50 seconds 785 crores as on 31st December 25 compared to 893 crores as on 30th 11:56 11 minutes, 56 seconds September 25. And this reduction in the net debt is is during our capex phase and continued invest in our luxury 12:03 12 minutes, 3 seconds portfolio with leverage metrics remaining well within our stated framework during Q3 FI26. Some of the long pending 12:12 12 minutes, 12 seconds overviews of were clear in the Langala market for the industry participating uh including ABD. The overall industry outlook remains cautiously optimistic 12:21 12 minutes, 21 seconds with respect to progressive clearance of remaining dues in addition to collection of regular. 12:27 12 minutes, 27 seconds Looking ahead uh the Indian alcoh industry continues to witness growth driven by premiumization, portfolio expansion and evolving consumer 12:36 12 minutes, 36 seconds preference. The P segment remains the key uh growth driver supported by innovation and improving roottomarket framework. Regulatory reforms in select 12:44 12 minutes, 44 seconds states have been supported have supported volume recovery with a stable raw material environment that continues to aid margin stability while state 12:54 12 minutes, 54 seconds level regulatory changes and emergence of local brands in certain markets such as Maharashtra remains area to monitor. 13:00 13 minutes We remain confident in our ability to navigate this dynamic through a portfolio strengthening, execution discipline and deep market understanding. 13:09 13 minutes, 9 seconds Overall, we expect strong pipeline uh strong topline growth in quarter 4 underpinned by our focus on consumer 13:17 13 minutes, 17 seconds centric uh growth. As we move forward, our focus remains on improving unit economics, driving value added volume 13:24 13 minutes, 24 seconds growth, keeping our portfolio consumer ccentric and deploying capital with discipline. With a strong brand portfolio, expanding international 13:32 13 minutes, 32 seconds presence and robust manufacturing backbone, ABD is well poised to play a leading role in India's growing premium consumption market and continue 13:39 13 minutes, 39 seconds delivering long-term value to all our stakeholders. Thank you once again for your continued interest and support. We will now open the floor for questions. 13:49 13 minutes, 49 seconds Thank you. We will now begin the question and answer session. Anyone who wishes to ask a question, they press star and one on touched on telephone. If 13:58 13 minutes, 58 seconds you wish to remove yourself from the question key, you may press star and two. Participants are requested to use handsets for asking a question. Ladies 14:05 14 minutes, 5 seconds and gentlemen, we will wait for a moment while the question assembles. 14:13 14 minutes, 13 seconds The first question comes from the line of Nitan with MK. Please go ahead. 14:19 14 minutes, 19 seconds Yeah, thanks for the opportunity. Uh my first question pertains to Telangana market. uh could you shed some light on what really affected our volume in 14:27 14 minutes, 27 seconds Telangana market in terms of the route to market changes and uh uh like it would be great like if you can highlight 14:34 14 minutes, 34 seconds what is the split of TNA and mass premium in Telangana market and lastly in Telangana as the restocking is 14:41 14 minutes, 41 seconds progressing so can we expect uh equally good quarter Q4 compared to the weaker quarter in Q3 so that's the first 14:49 14 minutes, 49 seconds question uh thank you uh as far Tangana is concerned it's been a it's been an interesting uh uh quarter 14:57 14 minutes, 57 seconds three um therefore in quarter three what really happened was that the PNA segment 15:04 15 minutes, 4 seconds actually grew by 17%. Um ABD portfolio also grew at 17.5 so marly ahead of the the market. It was the mass premium 15:13 15 minutes, 13 seconds segment uh that we grew at about 7.4 and we also grew about 7%. Overall uh the 15:19 15 minutes, 19 seconds industry grew at about 9%. So what really happened was that the licences came back for um rebrand and uh the the 15:28 15 minutes, 28 seconds rule is that whatever stock is held by a current lency needs to be sold off because the government does not take 15:35 15 minutes, 35 seconds back the stock and essentially uh therefore the buying by the current licenses come down dramatically. They stop buying because they have to finish 15:44 15 minutes, 44 seconds all the stocks that they are holding and it's only when the new licenses come into place they start buying. This creates a disruption of about six to eight weeks. That is what we saw in Q3. 15:53 15 minutes, 53 seconds Keeping in mind that they also look at rotation of stock the margin that they make. Typically PNA continues to get support but the stocking gets 16:02 16 minutes, 2 seconds decelerated on mass premium. That's why it reflects in continuous growth on the PNA segment and a degrowth of 7% in the mass premium segment. In January we are 16:11 16 minutes, 11 seconds expecting from January we already seeing that the stocking patterns are getting back to normal. So Q Q4 hopefully will be on track as things said. Uh your 16:20 16 minutes, 20 seconds second question was on what is our outlook on Q4. Is that right? Hello. Yes. 16:28 16 minutes, 28 seconds Yeah. Yeah. Yeah. Yeah. 16:30 16 minutes, 30 seconds Yeah. So uh I think uh just one quick number that if you were to look at our growth without Telangana and Maharashtra, you would find that we've 16:38 16 minutes, 38 seconds actually grown significantly faster now that in Q3. U the environment seems reasonably settled in Telangana. uh and 16:46 16 minutes, 46 seconds seemingly reasonably settled in Maharashtra. We are back on our growth track. So like we've said earlier we are targeting a double digit growth in Q4. 16:57 16 minutes, 57 seconds Thank you. And uh with respect to this mass premium sort of seeing a decline. So this is like 17:06 17 minutes, 6 seconds given we are the sort of having a largest share in this market. So that's where this impact is visible for us 17:13 17 minutes, 13 seconds unlike the competition. Would that be a fair assessment? 17:17 17 minutes, 17 seconds Uh so in Telangana specifically the mass premium segment comprises of where we operate we are virtually 100% of the market but there is also a growing uh 17:26 17 minutes, 26 seconds price point below the officer's choice price price point. So the 7% regrowth that you are seeing in the segment is on 17:33 17 minutes, 33 seconds both the our price point which is about 160 and 130 rupee price point. 17:41 17 minutes, 41 seconds Okay, thanks. Uh, second question pertains to this Minakshi Agro like where we are looking to go for 54 KS of 17:48 17 minutes, 48 seconds capex. So like this is our additional capacity announced for the bottling unit. uh like just wanted to know your thoughts around like uh uh like when we 17:57 17 minutes, 57 seconds initially wanted to have the distillation capacity why we have not budget for this and is this also related 18:04 18 minutes, 4 seconds to like uh another question I have in terms of the MML participation master made liquor participation so is it 18:12 18 minutes, 12 seconds somewhere related to that can you clarify on that most certainly so currently uh given the cyber business in Maharashtra and the 18:20 18 minutes, 20 seconds fact that we also export X Maharash Astra across the globe. Uh we are we are currently getting our brands bottled 18:28 18 minutes, 28 seconds across four different units for which ENA has to be moved let's say through tankers uh to all the units. So the 18:35 18 minutes, 35 seconds immediate efficiency that we see coming on back of having bottling at the same premises where ENA distillation is happening is that you will we will we 18:43 18 minutes, 43 seconds will move ENA through pipe. So it's extremely value creative in cutting down the transportation cost one and secondly cutting down the working capital because 18:51 18 minutes, 51 seconds currently we are stocking ENA at four different location there is ENA which is in transit here everything is on a pipeline so therefore it is clearly 18:58 18 minutes, 58 seconds there's a clear business case merit that the bottling should coexist with uh the ENA facility the reason why we have 19:06 19 minutes, 6 seconds announced now is because as you are aware that we need to get approvals only once we got approvals in our hand have we announced this facility uh um um in 19:15 19 minutes, 15 seconds in January. Uh so that that answers mark. As far as MMA is concerned, I'm sure all of you are aware that there has been a recent development where high 19:23 19 minutes, 23 seconds court has uh high court has advised that uh you know all manufacturers should go ahead and file their applications if they want to participate in MML. Minoxi 19:32 19 minutes, 32 seconds has indeed filed its application uh as they qualify for MML and if MML application of ours is approved then 19:39 19 minutes, 39 seconds this bottling facility will also come in handy um to serve the MML market but standalone there's a significant merit 19:47 19 minutes, 47 seconds for us to have the bottling plant within the ENA premises. 19:52 19 minutes, 52 seconds Yeah, thanks uh uh really helpful updates. And lastly around this realization, so we have uh seen uh sort 20:01 20 minutes, 1 second of a decline in realization for both PNA and mass premium. So does this pertains to state mix or is there anything to read through? 20:09 20 minutes, 9 seconds Yeah, state mix nothing else. 20:12 20 minutes, 12 seconds Sure. Got it. Thanks a lot and all the very best. Thank you very much. 20:19 20 minutes, 19 seconds Thank you. Next question comes from the line of Abin Shiroy with Nuama. Please go ahead. 20:25 20 minutes, 25 seconds Yeah, thanks. Uh my first question is on the FDA. So first is what will be your take on UK FDA delay given UK parliament 20:33 20 minutes, 33 seconds is yet to approve. Do you think that Q2 is the realistic date or H2? Uh second related question is uh the EU deal mother of all uh deals has been signed. 20:45 20 minutes, 45 seconds uh that does suggest uh gradual reduction in terms of imported uh spirits from EU. uh would you see the this as a non-event or would you see 20:54 20 minutes, 54 seconds this as a mild positive or a mild negative? 20:57 20 minutes, 57 seconds Right. So as far as the India UK FDA is concerned the feedback that we have is that Q2 looks like uh uh Q2 looks like 21:07 21 minutes, 7 seconds uh the period in which the FDA should come into place. So for now we are holding on to the onto the Q2 guidance. 21:13 21 minutes, 13 seconds As far as the India UK FDA is concerned, I think the world order has changed significantly and we are hopeful that that will also uh act as a reason to 21:22 21 minutes, 22 seconds accelerate the uh uh the the FDA implementation. As far as the India UA India EU FDA is concerned, uh I think 21:31 21 minutes, 31 seconds from a India business perspective uh it's not a relevant event because what we import from EU is largely uh vodkas. 21:40 21 minutes, 40 seconds Uh we import liquores and brandy. This is a very small part of the Elcob uh consumption in India. I feel that what 21:47 21 minutes, 47 seconds could be a very interesting opportunity is for us to participate in the EU market. We for example are considering 21:54 21 minutes, 54 seconds setting up a hub in in Europe right to be able to feed multiple countries within EU. Uh so our view is that this 22:02 22 minutes, 2 seconds could be a very interesting opportunity uh for our luxury portfolio, our mainstream portfolio. We already shipping to Spain and Italy. So we have 22:10 22 minutes, 10 seconds started our business in Europe and as our single mod comes on steam in 2029. 22:14 22 minutes, 14 seconds Uh this route could become very very effective in terms of driving growth. So I would say that interesting opportunity on outbound trade and very n to negligible impact on inbound trade. 22:27 22 minutes, 27 seconds Sure. Uh your comment that uh Q4 uh you are targeting a double date in uh because uh kind of stability is coming 22:35 22 minutes, 35 seconds in uh both the key states where there was the issue in Q3. The fifth question is the Maharashtra what will be the 22:44 22 minutes, 44 seconds additional impact of Maharashtra may become because Q4 will see all three months see that impact. So given that uh 22:51 22 minutes, 51 seconds is it a bit early to say that stability is coming in Maharashtra. 22:57 22 minutes, 57 seconds So so when I say when I mentioned stability what I meant was that we believe that significant consumer movement has happened in terms of those 23:05 23 minutes, 5 seconds who are opting for MML and those who are staying with IMFL. So it's easy for us to model as to what volumes we can get out of Maharashtra. And therefore when 23:13 23 minutes, 13 seconds we are talking about our guidance for Q4, we've already factored sort of the the uh that what sort of volumes will come on Maharashtra. That's the point I 23:21 23 minutes, 21 seconds was trying to by stability. It's not uh it's not it's not that the market is back on track. We see now we know what the stable state of market is going to look like. 23:31 23 minutes, 31 seconds No, I could not uh fully get it. Uh simple question is in Q3 Maharashtra industry has seen a double digit volume 23:39 23 minutes, 39 seconds decline. Uh in Q4 also it will be a decline. So how will it not impact your numbers in that case? 23:48 23 minutes, 48 seconds So when you're saying Q4 there will be further decline that will be on back of what? 23:53 23 minutes, 53 seconds No on a Y still there will be a decline uh Q4. 23:56 23 minutes, 56 seconds I've got answer I've understood your question now. So I think the way we are we are saying we have the Q3 numbers right? So it's not about what happened 24:04 24 minutes, 4 seconds in Q4 last year. We have the Q3 numbers for FI26 and therefore we've modeled saying what are the likely size of the 24:11 24 minutes, 11 seconds industry in Q4, FI26 in Maharashtra. And when we are talking about overall growth uh to be double digit, we have factored 24:18 24 minutes, 18 seconds that Maharashtra will continue to operate at significantly lower level. 24:24 24 minutes, 24 seconds So the comparison is not with the degrowth that we will see in Q4 FI26 versus Q4 FI25. We have actually modeled 24:32 24 minutes, 32 seconds this in saying that the that the market is down as you're rightly saying by high double digits. 24:38 24 minutes, 38 seconds So that does mean that Telangana and rest of India X or Maharashtra should uh compensate for the say double date 24:46 24 minutes, 46 seconds decline in Maharashtra even in Q4 only then it's possible right that is right that is correct. 24:52 24 minutes, 52 seconds Understood. That's all from my thanks a lot. All right. Thank you. 24:58 24 minutes, 58 seconds Thank you. Next question comes from the line of Mahul Kirish Desai with JM Financial. Please go ahead. 25:05 25 minutes, 5 seconds Uh hi sir, good evening. Uh thanks for the opportunity. Firstly uh obviously you gave a guidance of you know double 25:11 25 minutes, 11 seconds digit growth in 4Q uh which looks like you know if we maintain our uh mid teens kind of sales growth in PNA maybe let's 25:20 25 minutes, 20 seconds say 16 17%. It looks like uh the mass premium segment your assumption is should be at least low singledigit 25:27 25 minutes, 27 seconds decline or flattish on a y basis. So just wanted to get your understanding is that understanding correct and obviously 25:34 25 minutes, 34 seconds 4q double digit but how do you look FI27 I mean you will be lapping up uh high base now so how does uh one what is your 25:43 25 minutes, 43 seconds guidance for FI27 both on PNA side and mass premium segment if you give if you can give some color on that. Uh that's my first question. 25:52 25 minutes, 52 seconds Right. Uh I think there is one more u uh uh factor to consider when we're talking about our value growth is uh that the 26:00 26 minutes ABDM uh portfolio is now complete. We have nine beautiful brands out there. Uh we are already seeing about a 40% width 26:07 26 minutes, 7 seconds of distribution in the premium on premise. We've been able to open up uh the duty-free. We have started to ship in international market. uh if you' 26:15 26 minutes, 15 seconds recall one of the one of the uh we had we had said that we are running currently at about a 40 cr in quarter 3 which we should double in quarter 4 and 26:24 26 minutes, 24 seconds go on to double uh the next year. So another significant driver of our value growth is going to be the revenue that will flow to us from our luxury 26:32 26 minutes, 32 seconds portfolio. So that will be on top of our mainstream legacy portfolio. So that's an important uh part of how uh we see 26:40 26 minutes, 40 seconds our value growth engine uh getting shaped up. uh as far as the FI27 is concerned uh there are two or three 26:48 26 minutes, 48 seconds things that we are planning. Uh one I've already covered which is the ABDM u uh accelerated growth. So we should we are 26:56 26 minutes, 56 seconds looking at doubling our AR in the next financial year. Uh secondly, we are looking at u uh two new launches. Uh one new launch, one already existing launch 27:04 27 minutes, 4 seconds in the PNA non- whiskey segment, which is really the prestige vodka and the prestige brandy. And we are hopeful of gardening uh gardening profitable shares 27:14 27 minutes, 14 seconds from these two flavors, which is brandy and vodka put together. There are about 30 million cases. uh also in the southern market we've been able to get 27:21 27 minutes, 21 seconds some uh approvals for long pending uh new brand introduction there and that will allow us to participate in high 27:28 27 minutes, 28 seconds volume uh profitable segments. So in Q4 we expecting these two approvals to fall in place that will also create a growth 27:35 27 minutes, 35 seconds pipeline for us in the next financial year. 27:39 27 minutes, 39 seconds Understood. Um secondly on the on the margin front obviously your gross margin progression is much faster than what 27:46 27 minutes, 46 seconds your guidance is of you know 45% plus in FI28 you are already at 46 odd%. Uh and 27:54 27 minutes, 54 seconds there are few more backward integration projects that are going to come in FI27 and obviously something in FI28 too. uh 28:02 28 minutes, 2 seconds to that extent how do you see this gross margin trajectory also in FI27 and would you think that you know your 15% margin 28:10 28 minutes, 10 seconds guidance of FI28 you know can come uh in FI27 itself 28:17 28 minutes, 17 seconds so the FI28 margin guidance we had revised last quarter we had taken the margin guidance to 18% uh largely on 28:25 28 minutes, 25 seconds back of the fact that we are seeing a faster gross margin u progress uh on our current portfolio uh the capex program 28:34 28 minutes, 34 seconds will add uh 300 basis point of which uh right now in quarter 3 we have captured just about 7 so there's another 230 28:42 28 minutes, 42 seconds basis point to flow in from our capex project and of course uh let's assume that quarter 2 the India UK FD is up and 28:49 28 minutes, 49 seconds running that will add another 200 basis point so we are expecting that by FYI 28 we should be at least at a 18% margin guidance 28:58 28 minutes, 58 seconds understood okay that's helpful and lis uh if you could quantify the capeex for FI27 29:05 29 minutes, 5 seconds overall capex with all the projects that you are undertaking in FI27 and FI28. 29:11 29 minutes, 11 seconds So the capex uh the capex that we have uh the capex uh that we have uh we had announced uh till quarter 3 fi27 is 29:21 29 minutes, 21 seconds about 575 crores. The two new capex program that we have announced gets us to about another 150 crores of capex. So 29:28 29 minutes, 28 seconds that is about 700 cr of capex that we have announced so far. Of course we keep looking for opportunities that uh that that come our way. Uh uh again from a 29:37 29 minutes, 37 seconds guidance perspective we said that we would want to get ENA ENA capacity equal to our consumption. We would have needed three units ENA units. So one we have in 29:46 29 minutes, 46 seconds Telangana second we are doing in Maharashtra and we will need uh we will need one more ENA unit in a large market 29:54 29 minutes, 54 seconds like UP or in Andra. So we are figuring that out. So that is the capex that we'll announce in the future. But as of now the total capital commitment is just over 700 crores. 30:05 30 minutes, 5 seconds Uh that's helpful. Thank you. Thank you. 30:11 30 minutes, 11 seconds Thank you. Next question comes from the line of Kosu Pawkar with IC direct. Please go ahead. 30:18 30 minutes, 18 seconds Yeah. Good evening sir. Thanks for the opportunity and congrats for uh good margin performance. Uh so uh just a clarification on the margin guidance you 30:26 30 minutes, 26 seconds just mentioned that uh 230 bits is going to flow through the capex project. So does it include uh this phase two of the 30:34 30 minutes, 34 seconds capex which you are planning to do or that will be the incremental over what uh the capex you are planning to do in phase one. 30:44 30 minutes, 44 seconds This is from phase one. The first phase of uh the investment which was roughly 550 crores 300 basis point was to come 30:52 30 minutes, 52 seconds from that 7 we've realized which is a pet project. So the balance 230 basis point will come from the first phase. 30:58 30 minutes, 58 seconds The second phase will become value accreative in H2 of next financial year. 31:03 31 minutes, 3 seconds Okay. So there is a scope of further uh uh margin expansion because of the second phase second phase of your 31:10 31 minutes, 10 seconds that is correct. I mean in UP alone for example once the once the bottling unit is up and running we we did not pay the 31:17 31 minutes, 17 seconds 27 rupees franchise fee on a base of our 6 million cases that in itself is uh you know that itself is better uh 31:24 31 minutes, 24 seconds realization in UP right uh and so my second question is on uh you know the funding of the capex so 31:33 31 minutes, 33 seconds uh all the capex what you are planning to do like including the 150 crores the additional capex what you are planning to do it will be largely funded through 31:40 31 minutes, 40 seconds internal approval So uh since your cash flows are improving uh you are also expecting uh the telman over you to you 31:47 31 minutes, 47 seconds know flow in in the coming quarters if uh so that should help you know uh to 31:54 31 minutes, 54 seconds have a uh create a good cash flow to fund all this uh capex. 32:00 32 minutes So u uh first of all uh all our investment decision will be guided by the financial KPIs that we already committed to in terms of net debt to equity and other key financial ratios. 32:11 32 minutes, 11 seconds So we'll make sure that all our decisions respect those guidelines. I think we're working with two scenarios. 32:16 32 minutes, 16 seconds One scenario is as you have mentioned is Telangala payments coming through and second scenario is that if you know 32:25 32 minutes, 25 seconds Telangana payments were still slow to come by because these capex programs have a merit on standalone basis we 32:32 32 minutes, 32 seconds don't want to link the implementation of the capex program to telangana receivables therefore if telangana money was to come through we will we will see 32:40 32 minutes, 40 seconds we will see incremental change in our uh in our net debt but even if telangana payment does not comes through to the level expected, we'll still go on with 32:49 32 minutes, 49 seconds our capex program because like I said this two new capex program will become value creative within 6 months. So there's no point in delaying this capex program. 32:58 32 minutes, 58 seconds Sure. Uh and so my last question is on you know having a bottling unit uh in Uttar Pradesh you know how will will how 33:05 33 minutes, 5 seconds will it help you you know uh to expand your share in the UP market as we know that UP is one of the you know largest 33:13 33 minutes, 13 seconds market uh and uh you know how uh will it help us you know uh maybe to expand uh our share in that particular market. 33:23 33 minutes, 23 seconds Well there are two aspects of the UP investment. One of course is the saving on the franchise fee of 27 rupees a case as it exists today and therefore becomes 33:31 33 minutes, 31 seconds margin accused from day one. Uh secondly UP is a very large state. Uh therefore in addition to our own 6 million u uh 33:39 33 minutes, 39 seconds capacity uh we are also exploring maintaining something maintaining a second unit uh for manufacturing uh 33:47 33 minutes, 47 seconds because there are significant savings in terms of logistics when we look at inbound cost and outbound cost. So I think we should be looking at u we 33:54 33 minutes, 54 seconds should be looking at um uh running more than one bottling unit but the key driver for this unit is really the franchise fee which is 27 rupees a case. 34:04 34 minutes, 4 seconds Okay. Thank you sir. Thanks for that. 34:10 34 minutes, 10 seconds Thank you. Next question comes from the line of Ali Agar Shakir with Motil Oswell Mutual Fund. Please go ahead. 34:18 34 minutes, 18 seconds Yeah. Hi sir. Thanks a lot for the opportunity. Couple of questions sir. 34:22 34 minutes, 22 seconds First uh question is on the uh uh you know uh volumes. So uh you know this year PNA has done very well uh thanks to 34:30 34 minutes, 30 seconds the you know success of iconic. Now you did discuss about the you know uh the scope opportunity of ABD MRO and uh also 34:40 34 minutes, 40 seconds some of the other brands that you are trying to rejuvenate. So just wondering I mean uh next year what is the thought 34:47 34 minutes, 47 seconds in terms of growth how much of this PNA growth you are expecting iconics to continue and you know the new branch to 34:55 34 minutes, 55 seconds uh you know uh contribute because right now PNA is largely driven by the iconics growth that's question number one question number two is now uh you have 35:04 35 minutes, 4 seconds improved increased your margin guidance to 18% uh thanks to the backward integration measures uh but uh quick 35:12 35 minutes, 12 seconds question over here is that uh uh should we build also some impact coming from 35:19 35 minutes, 19 seconds two areas. Point number one is uh the new brands that you have will be launching or rather you have launched in ABD MOT and others uh you know what is 35:28 35 minutes, 28 seconds the investment that will go towards them in the initial period when the scale will be you know suboptimal and also the uh projects that we are doing on 35:35 35 minutes, 35 seconds backward integration will probably take some time to achieve scale until then they may probably operate at suboptimal 35:43 35 minutes, 43 seconds level and therefore could be margin diluted. So you know is that are these two impacts already built in your margin when you are building the 18% and how 35:51 35 minutes, 51 seconds much is it these two right so let me take the capex um uh question first I think you should look I 35:58 35 minutes, 58 seconds mean I'm just taking an example I think at the heart of our capex strategy are three simple principle one is cost of build uh second is time to build and 36:07 36 minutes, 7 seconds third is uh targeted margin so therefore if you take up as an example we've announced the acquisition a few days 36:14 36 minutes, 14 seconds back We are targeting uh the asset to turn around in the next 6 to9 months. So we know the cost of build, we know the 36:22 36 minutes, 22 seconds time to build and essentially uh we are putting a 6 million uh case fully automated state-of-the-art automated uh 36:30 36 minutes, 30 seconds plant. Uh our current volumes um are enough to support the entire capacity utilization. So I think we are quite 36:37 36 minutes, 37 seconds conscious that when we are putting capex behind any program uh we are quite conscious that our capacity utilization must be at a targeted level only then we 36:46 36 minutes, 46 seconds will be able to realize the rupee critta that we have put into our modeling. So that's one thing I can assure you that 36:53 36 minutes, 53 seconds we will not invest in in in capex where it'll take us um inordinate amount of time from a capacity utilization. So 37:01 37 minutes, 1 second even if you look at the single mold display we are setting up in Telangana roughly 55% of our volume will go in 37:08 37 minutes, 8 seconds replacing our current mold that we are buying from third party and the balance will go into maturation for our own single mold. So capacity utilization is 37:15 37 minutes, 15 seconds going to be the key u time to build and cost of build is going to be uh our important drivers of um uh uh the way 37:23 37 minutes, 23 seconds our capex decision are being done. So when we are giving a when we're giving a margin guidance all this has been baked into our uh into our model. Uh on the on 37:32 37 minutes, 32 seconds the on the on the growth front I think I would I would say that we have to at this point I believe earlier that I think when we are talking about 37:39 37 minutes, 39 seconds premiumization in the Indian subcontinent we have to start focusing on value growth because volume growth may not be a correct indication of 37:46 37 minutes, 46 seconds what's happening with the consumer. Uh so we are talking about a mid double digit uh value growth. um a it'll come 37:54 37 minutes, 54 seconds on back of what we're doing with ABD MRO uh because quarteron quarter we are looking at um uh you know accelerated 38:00 38 minutes run rates u about 40 crores last quarter hopefully 80 crores plus this quarter so doubling and we should exit again double this run rate in next year and therefore 38:09 38 minutes, 9 seconds it really brings in a significant topline growth uh we are looking at uh two new brands in the PNA brandy and 38:18 38 minutes, 18 seconds vodka segment and in the mass premium segment as you know in Andhra Pradesh specifically quickly uh there is this 38:24 38 minutes, 24 seconds big uh profitable brandy u uh brandy brandy brandy uh price point which has 38:32 38 minutes, 32 seconds now gone on to become roughly 12 million cases in which we did not have a presence till last quarter uh and we've been able to we've been able to get our 38:40 38 minutes, 40 seconds our inprincipal clearance and we are hopeful in this quarter we start participating in this 12 million case market in which we didn't exist till 38:48 38 minutes, 48 seconds last quarter. So even at a reasonable market share of X percentage uh we should be able to get uh get a very very 38:56 38 minutes, 56 seconds large volume I mean another million case millionaire brand in making. So I think the the volume growth focus will 39:03 39 minutes, 3 seconds continue both in uh the mass premium segment wherever there's a profitable uh price point available profitable flavor 39:12 39 minutes, 12 seconds available. We are largely a risky company however this particular opportunity in another for example is a brandy. So we are expanding our flavor 39:19 39 minutes, 19 seconds reper in mass premium. Earlier we were only risk only. Now we'll do brandy as well. Um and and therefore the volume 39:26 39 minutes, 26 seconds growth will come from mass premium. It will come from PNA and it'll come through new brand and the value growth 39:34 39 minutes, 34 seconds will come on back of both volume growth in our in our core portfolio but also growth in the ABDM portfolio. Sorry 39:42 39 minutes, 42 seconds slightly uh long response but I hope it clarifies the subject on growth. 39:47 39 minutes, 47 seconds Yeah, this is very very useful and very insightful. Only point if you can just also clarify on the impact of these new 39:55 39 minutes, 55 seconds brand launches. Uh will that be margin diluted in the first year and uh is that also built into your margin expectations? 40:03 40 minutes, 3 seconds The investment that we need to make in our luxury portfolio is already built in a margin guidance of 70 to 18% accounts for this investment. 40:13 40 minutes, 13 seconds Okay. It's 18% right or it's a range of 17 to 18. 17 to 18%. Pick a numbers. 40:20 40 minutes, 20 seconds Got it. Okay. Uh another question quickly on your you know impact from Maharasha and Telangana. So Telenai uh 40:30 40 minutes, 30 seconds given that now the route to market will be stabilized all that you have lost I know you said that you will do double digit growth uh aim for double digit 40:38 40 minutes, 38 seconds growth in Q4 but all that you have lost in the you know revenue for Q4 Q3 should be recovered more or less in Q4 I mean 40:46 40 minutes, 46 seconds you should be the stable state volume numbers in Q4 or should there be any more impact uh prolonging even in Q4 and 40:55 40 minutes, 55 seconds uh what about Maharashtra Maharashtra should uh take longer So Telangana I think we believe that Q 41:02 41 minutes, 2 seconds Q4 is back to normal um for us uh Maharashtra like I was trying to explain earlier that we have taken Q3 exit base 41:11 41 minutes, 11 seconds as a likely market size in Q4 um so the if if so that's our assumption that the 41:18 41 minutes, 18 seconds Q4 market size would be similar to Q3 and we've done our modeling growth modeling on on that base we are hopeful 41:25 41 minutes, 25 seconds that it'll it'll it'll not materally alter Yeah. 41:29 41 minutes, 29 seconds And how is the trend being post Q3 in in Maharash? Has it further degraded or it has uh improved or just 41:37 41 minutes, 37 seconds January January numbers are yet to come in. I think we'll get to know by midFebruary once the industry data comes in uh whether our assumption is holding 41:45 41 minutes, 45 seconds good or not but so far from what we are seeing it seems to be okay. 41:50 41 minutes, 50 seconds Got it. Very useful. Thank you so much for ask answering all the questions. 41:56 41 minutes, 56 seconds Thank you. Next question comes from the line of Sanjay Manal with Dan Capital. Please go ahead. Uh hello sir. Uh I have few questions. 42:05 42 minutes, 5 seconds Uh firstly on the iconic white uh you have seen a brilliant growth in last few years in the brand. Uh uh I believe uh a 42:14 42 minutes, 14 seconds decent growth would have been coming from uh uh uh uh you know gaining the shares from the a competing brand. 42:22 42 minutes, 22 seconds Now have you seen any renewed uh uh competition specifically from this brand given that uh uh you know change of brand owner over there? 42:34 42 minutes, 34 seconds Uh I think uh we were we are and we were and we are mentally prepared that uh 42:42 42 minutes, 42 seconds with the new owner having acquired Imperial Blue they would do whatever it takes. Uh so we have proactively 42:48 42 minutes, 48 seconds strengthened our um uh sort of program in the market be it in terms of trade engagement, consumer engagement, be in 42:57 42 minutes, 57 seconds terms of what we do at BTL level. So I think we are reasonably well prepared uh to ensure that the growth trajectory of 43:04 43 minutes, 4 seconds iconic is not compromised. Uh so what is in our control is what we do. What is not in our control is what the competition does. So we have proactively 43:12 43 minutes, 12 seconds taken all required steps. I'm also happy to share with you is that Ionic is now sort of running at a million case a 43:19 43 minutes, 19 seconds month which gets us to a 12 million case AR r any which way also I spoke about earlier that we have received approval 43:26 43 minutes, 26 seconds for iconic in CSV that opens up opens up another growth opportunity for us not present there um and uh Iconic is now 43:35 43 minutes, 35 seconds getting shipped to nine country internationally we are looking at aggressively uh expanding the footprint of iconic so apart from uh the growth in 43:44 43 minutes, 44 seconds the market where it's already operating CSD will become a very important channel for us international market will become a very important channel for us and the 43:51 43 minutes, 51 seconds brand in any case is currently running at a 12 million case AR r and that's how we are that's how we are sort of prepared to ensure that the growth 43:59 43 minutes, 59 seconds momentum on iconic is maintained sure and uh one on the uh AB maestro 44:09 44 minutes, 9 seconds if you can highlight any success uh of late or which brand seems to be uh uh 44:15 44 minutes, 15 seconds break even first or or reaching a a sort of a benchmark volume number uh uh if you can highlight that. 44:23 44 minutes, 23 seconds Uh most certainly I think January 24 is when we started our journey in the luxury build of the luxury portfolio. 44:30 44 minutes, 30 seconds Zoa was our first brand launched in January 24. Extremely happy to share with you that the brand has grown almost 300% since its launch. Um uh more 44:40 44 minutes, 40 seconds importantly uh we've spoken about you know right to win from a consumer point of view. Uh we have launched two new 44:47 44 minutes, 47 seconds flavors uh which is the Zoya watermelon and the Zoya uh espresso martini gin. Um now I'll tell you why why I'm talking 44:56 44 minutes, 56 seconds about these two flavors. Our thesis was that postco a lot of consumptions consumption has moved in home but making 45:03 45 minutes, 3 seconds cocktails is not easy. And the idea was to bring flavors that allow consumer to enjoy cocktail in the comfort of their home. So espresso martini is one of the 45:11 45 minutes, 11 seconds largest selling uh cocktails in the bar with our espresso martini gene. All you have to do is to buy a a shaker which you can buy off Amazon. Ice is 45:18 45 minutes, 18 seconds available. Just shake it up and pour in a glass of your choice and your espresso martini is ready. And same is the case with the watermelon gin that you can you 45:26 45 minutes, 26 seconds know just put ice in the shaker and pour in a glass of your choice. And you want to add a strawberry just get it off instant. So I think what really is 45:34 45 minutes, 34 seconds happening with Zoya is that it is just making it convenient for a consumer to enjoy uh the cocktails and the interesting data point is that today 30% 45:42 45 minutes, 42 seconds of Zoya sale comes from flavor but more importantly 95% of the sales happens off premise which is an indication that 45:50 45 minutes, 50 seconds consumers are actually picking it up taking it home and actually enjoying these flavors. So I think uh this is one success story and we've built on the success story um uh for all our brands. 46:01 46 minutes, 1 second The portfolio has got nine brands now um uh in which we have a scotch malt uh scotch blended malt. We have an Irish 46:09 46 minutes, 9 seconds whiskey. We've got two beautiful Indian whiskies. Uh we got two cars Danila which is sort of the bold face of India and Russian standard which is a global 46:17 46 minutes, 17 seconds brand. So the portfolio buildup is complete but I can walk you through more case studies but Zoe is the most interesting one because we are a whiskey 46:24 46 minutes, 24 seconds forward company for us getting a success in gin flavor uh is is very important 46:32 46 minutes, 32 seconds right and and lastly if you can uh uh mention one thing that your what would be your ENA requirement as of now and by 46:40 46 minutes, 40 seconds say at the end of FI27 once your district new district comes on stream uh what percentage of ENA would you be sourcing indigenously? 46:51 46 minutes, 51 seconds Yes. I think the way to look at is that what is our forward requirement. So let's say even at 50 million cases the requirement is 200 million L of ENA. Uh 47:00 47 minutes we produce currently about 70 million L inhouse which is 60 million liters in Rapur and about 10 in Maharashtra. Uh with the expansion of the Minaki 47:09 47 minutes, 9 seconds distillery we'll take the number at another 50 million. So by FY27 we should be about 120 million and that is why we 47:16 47 minutes, 16 seconds need to invest in one more plant about 60 to 70 million liter to get us to about 200. So we are targeting 200 47:24 47 minutes, 24 seconds million liters of which we are currently at 70. We'll be at about 120 million by FI27 and balance by end of FI28. 47:33 47 minutes, 33 seconds Uh perfect. Uh thank you. Thank you very much for all the answers. Thank you. 47:40 47 minutes, 40 seconds Thank you. Next question comes from the line of PJ Mistri with ICA securities. Please go ahead. Yeah. 47:47 47 minutes, 47 seconds Hi Alo. Hi Mun. Congratulation on uh your margin surprise. Uh sir I have only 47:53 47 minutes, 53 seconds two questions. Uh one is uh if I look at uh X of iconic white how's the traction 48:01 48 minutes, 1 second especially in the premium end of the portfolio? Let's say sterling reserve B7 B10 and officer officer's choice blue. 48:11 48 minutes, 11 seconds Uh sorry uh I didn't get your question. Can you please repeat it for me? 48:16 48 minutes, 16 seconds So I I want uh can you comment the growth trajectory for noniconic part of the portfolio that is sterling reserve group 7 B10 and officers choice blue? 48:27 48 minutes, 27 seconds How's the volume growth traction in those uh brands? Uh so as far as uh uh our approach has been slightly different 48:36 48 minutes, 36 seconds if you look at the 410 million case industry uh roughly 120 million cases what we call as prestige whiskey which 48:43 48 minutes, 43 seconds is really the price point of McDonald's number one royal challenge royal stag and uh Imperial blue. Uh so our approach has been that how do we meaningfully 48:52 48 minutes, 52 seconds profitably carve out market share. So currently we are at about 15% market share on back of office choice blue 48:59 48 minutes, 59 seconds iconic and SRV7 and idea is to keep uh keep looking at getting market share uh at an aggregate 49:07 49 minutes, 7 seconds level. So that's the response in terms of what the approach is uh in terms of growth uh Iconic of course is continuing to 49:14 49 minutes, 14 seconds grow uh OCL and Iconic operate at the same price point. So we look at OC blue uh being a regional brand brand in core 49:23 49 minutes, 23 seconds pockets of strength and we look at numbers together. SRB7 is where our task is cut out. Uh currently we are we are 49:30 49 minutes, 30 seconds experiencing a bit of degrowth on the brand. Uh we have put together a program on the new blend which has given us success. We are also looking at now uh 49:40 49 minutes, 40 seconds launching a new pack in Q1 of the next financial year and I think with that uh targeting growth to targeting to bring back growth back in SRB7. 49:51 49 minutes, 51 seconds Got it. Got it. Thanks. Uh some follow-up question on this part is is my assertion right that B7 would be uh much 49:59 49 minutes, 59 seconds more gross margin accative compared to iconic white uh as even as a percentage is is that your question? 50:09 50 minutes, 9 seconds Yes. Yes. 50:11 50 minutes, 11 seconds E7 uh I think it be it'll be it'll be in the same range. Maybe iconic is 150 200 basis points behind SR7 uh but it'll be the same range. 50:23 50 minutes, 23 seconds Got it. Got it. And second question is on what would be the uh which would be the five key states for iconic white and 50:31 50 minutes, 31 seconds when I compare it with let's say officer's choice how how are what uh which are the five top states for officer's choice also. 50:42 50 minutes, 42 seconds So the top five states for Iconic would be UP where the brand is clocking close to 2 million cases. Uh uh the big state 50:51 50 minutes, 51 seconds is Telangala, the big state is Andra, the big state is uh uh 51:00 51 minutes yeah these are the three I mean because you know these these these states two they're all crossing of course Hana so I 51:07 51 minutes, 7 seconds think Hiana UP north uh Telangana Andra in south are the four big markets for iconic um uh Telangana UP are the two 51:17 51 minutes, 17 seconds top markets for uh offices choice is is is the is the is the way the stacker would be. So Kangana and UP are common to both the brands. 51:27 51 minutes, 27 seconds Got it. That's it from my side. Thank you. 51:33 51 minutes, 33 seconds Thank you. Next question comes from the line of Karan Kamal with Choice Institution Equities. Please go ahead. 51:40 51 minutes, 40 seconds Hello sir. Uh great set of numbers. uh I wanted to understand how uh how do you view your playbook for distribution 51:49 51 minutes, 49 seconds given that we are growing at a very fast pace. I'm sure the competition is also doing something. So what what are we doing differently from the competition? 51:58 51 minutes, 58 seconds Well, I think I'll broadly divide this into two part. Uh the first is our portfolio with ABD uh which is operating at a price point of let's say 1,500 52:08 52 minutes, 8 seconds rupees where the focus continues to be on off- premise. our our distribution width is about 93%. Um and um uh we have 52:18 52 minutes, 18 seconds a very strong uh what we call as PJP permanent journey plan discipline. We have automated uh the sales calling 52:25 52 minutes, 25 seconds process of uh RTSC's onto the retail to be able to get u you know enough data and diagnostic in terms of how well we 52:33 52 minutes, 33 seconds are covering the retail um what is the classification of retail which outlet needs to be covered uh how many times so there is there is a bit of a science uh 52:42 52 minutes, 42 seconds uh that is at play when it comes to off-remise because we're dealing with a very large universe and combined with a tech intervention and automation we're 52:50 52 minutes, 50 seconds now using data to our data to our advantage in terms of figuring out how do we improve and make the sales calls 52:56 52 minutes, 56 seconds efficient. We've also deployed we also using uh a tech platform to monitor uh the various incentives that we run for 53:05 53 minutes, 5 seconds counter salesmen uh which allows us the ability to directly communicate with them. So if I was a salesman uh in a market it could be Korapur, it could be 53:13 53 minutes, 13 seconds Gour, it could be uh Dhanbad, I know as an individual I know what is the incentive offered to me. I know what am 53:20 53 minutes, 20 seconds I earning. I know what I need to do to earn that incentive. So, we have seen a significant change in the engagement of the counter salesman because now we are 53:28 53 minutes, 28 seconds talking one-on-one. We are not necessarily relying on a sales guy, a salesperson to reach their uh uh reach there and inform and guide. Uh pretty 53:36 53 minutes, 36 seconds much it's an app on their phone and they can actually see what they are what they're making. So, that's really the the big focus as far as the off-remise 53:44 53 minutes, 44 seconds is concerned. uh on the on-remise side with u uh with the ABDM portfolio. The focus is on key accounts. So the team 53:52 53 minutes, 52 seconds that we've built out comes out comes from uh significant knowledge of managing key accounts, managing uh travel, retail uh because that requires 54:00 54 minutes a very different u uh engagement as you know we've been able to get our listing done in uh the the Taj, we've been able to get our listing done in ITC also 54:09 54 minutes, 9 seconds partially in Marriott. So that's a very different skill set. Uh so we have to make sure that uh the teams bring in the 54:16 54 minutes, 16 seconds skill set how can we leverage technology how can we leverage data and how can we start taking uh decisions that will help 54:24 54 minutes, 24 seconds us uh to get that distribution edge. On top of it, one big initiative that we're doing is uh digitizing the entire trading program because uh till about a 54:32 54 minutes, 32 seconds year back, year and a half back, uh most of our sales team was really selling officers choice, officers choice blue, sterling, reserve B7 and and a few other 54:41 54 minutes, 41 seconds brand iconic but now they also need to carry uh right from Zoya all the way to artouse. So we have now digitized our 54:49 54 minutes, 49 seconds entire training program um in terms of range selling in terms of uh what makes a brand unique, what are the unique cocktails associated with it, what is 54:58 54 minutes, 58 seconds the trivia uh and once the whole digitization uh process will get completed which we are targeting over by end of next quarter which means every 55:07 55 minutes, 7 seconds salesman whether it is in um Dubar or it is in Goa should be able to access information on the brand uh quiz FAQs 55:16 55 minutes, 16 seconds should be able to answer the question of the retailer. or the consumer. So combination of the right manpower uh technology data bringing the right 55:24 55 minutes, 24 seconds training intervention is the way we are maintaining our distribution edge. 55:30 55 minutes, 30 seconds Great sir sir uh if I may ask what is our onremise currently and uh where do we see it over the next few years uh as a percentage of sales? 55:39 55 minutes, 39 seconds So our uh on-remise width of distribution is at about 40%, premium on-remise distribution is 40%, where which is relevant for ABDM. Uh I think 55:48 55 minutes, 48 seconds the way to look at is we should see about 5 to 7% um increase in distribution quarter on quarter. So we should exit next year say about 65 70% distribution reach. 56:00 56 minutes Uh distribution reach know I mean as a percentage of volumes what would it be? 56:05 56 minutes, 5 seconds Maybe PNA volumes. So as far as PNA volumes are concerned, it's really uh 982. I mean uh in PNA it's largely an 56:13 56 minutes, 13 seconds off-remise off-remise uh uh revenue right uh but as far as the equity maestro portfolio is concerned it'll be 56:21 56 minutes, 21 seconds like a 2575 25 coming from premium haka and 75 coming from retail 56:28 56 minutes, 28 seconds 25 okay perfect thanks thank you so much thank you next question comes from the 56:37 56 minutes, 37 seconds line of Tan Gupta with Bank of India fund please. 56:43 56 minutes, 43 seconds Yeah. Hi sir, thank you for the opportunity. So my question is toward the mask. 56:47 56 minutes, 47 seconds Mr. Gupta, sorry for interrupting. We cannot hear you. Can you come a little closer to the mic and speak? Sure. Can you hear me now? 56:54 56 minutes, 54 seconds Yes, please. 56:58 56 minutes, 58 seconds Okay. So the question is regarding to the M segment. So uh you Mr. Gupta once again sorry for interrupting. Uh we cannot hear you. Can 57:06 57 minutes, 6 seconds you come a little closer to the mic and speak now? Now it's audible. 57:10 57 minutes, 10 seconds Yeah. Go ahead. I'll repeat the question. Why don't you go and ask a question? I'll repeat it for you. Go ahead please. Thank you. 57:15 57 minutes, 15 seconds Okay. So the uh the question is regarding the mass premium segment. So uh you mentioned that there has been 7% 57:23 57 minutes, 23 seconds impact due to Telangana. So even after factoring that we are seeing around 5% degrowth uh in last two quarters uh 57:31 57 minutes, 31 seconds consistently. So first of all how uh do we restrict this loss or losing the market share or either we should expect 57:39 57 minutes, 39 seconds uh this segment will be like 4 and a half to 5 million rate uh quarterly going forward. 57:45 57 minutes, 45 seconds So I I want to just repeat the question for benefit of others who are listening in. The question is that uh and the f that we've seen uh uh degrowth in the 57:55 57 minutes, 55 seconds mass premium because of Telangana and Maharashtra going forward um you know what will be the source of growth right is that largely your question 58:03 58 minutes, 3 seconds yeah no again the question like sir um like we are uh we are making a some you know how would we restrict the loss like 58:11 58 minutes, 11 seconds uh you know even after factoring these two states we are still uh around 5% deg growth right in terms of volume for the last two quarters 58:19 58 minutes, 19 seconds Right. So I think going state by state we are expecting Q4 uh to be uh to be back to normal and therefore we expect 58:27 58 minutes, 27 seconds our regular volumes to pick up in Telangana. Uh so that's one. Secondly I spoke about the big opportunity inherently 58:35 58 minutes, 35 seconds brandy uh let's say mass premium brandy segment is now 12 million cases uh in which we currently do not operate. Now we have our approvals in place and we 58:44 58 minutes, 44 seconds are hopeful of starting our billing in quarter four. So with even a you know even even with a reasonable market share of uh 15% 20% I think we're looking at 58:53 58 minutes, 53 seconds another one and a about two million cases to come from um uh the the mass premium branding segment in which we 59:00 59 minutes were uh not operating. Uh so I think the the source of growth for us is going to be uh a Telangana getting back to normal 59:08 59 minutes, 8 seconds and our entry into the brandy segment in the state of Andhra Pradesh in the mass premium segment where we were not operating. Of course, our focus will 59:15 59 minutes, 15 seconds continue on uh growing our our our volume and other state. For example, UP will continue to deliver us growth and many other states will deliver growth. I 59:23 59 minutes, 23 seconds think one more point which we have not stressed enough is the fact that we have applied through Minakia subsidiary to 59:30 59 minutes, 30 seconds participate in the MML uh MML category and u um uh um we believe that we 59:38 59 minutes, 38 seconds qualify to participate in the MML category and if we were to get those permission then that will open up a significant growth opportunity for us. 59:46 59 minutes, 46 seconds It's not factored into our our guidance. 59:48 59 minutes, 48 seconds Uh this will be on top of whatever guidance we have given. So um just wanted to sort of give you a uh a 30,000 ft view on where do we see where do we think the growth will come from? 59:59 59 minutes, 59 seconds Okay. So going forward we can expect like uh 4Q could be the normalized quarter and we can expect 5% around uh you know mid-s singledigit volume growth 1:00:07 1 hour, 7 seconds in this segment. Is that right understanding? 1:00:09 1 hour, 9 seconds Yes. Yes. So I think in the mass segment we should look at a low singledigit growth. I don't want to put a number to it. PNA will continue to grow at double 1:00:17 1 hour, 17 seconds digit high double digit and that that should get us to uh a near double digit growth with a mid double digit growth in terms of volume uh value. 1:00:27 1 hour, 27 seconds Overall mid double digit growth uh because of these two things. 1:00:31 1 hour, 31 seconds Uh mid double digit growth in terms of value and early uh double digit growth in terms of volume. 1:00:38 1 hour, 38 seconds Okay sir. and sir in PNA uh how should we uh like measure the growth uh or success story in the evid metro 1:00:46 1 hour, 46 seconds portfolio? Uh I understand you mentioned about Zoya which is doing phenomenally well but uh any KPI if you want to 1:00:54 1 hour, 54 seconds highlight uh which we should track uh for this portfolio. So I think uh there are u the segment is about 12 million 1:01:01 1 hour, 1 minute, 1 second cases and continues to uh grow uh fastest within the within the within the alcoar space. Uh so if you were to look 1:01:10 1 hour, 1 minute, 10 seconds at the current 12 13 million cases is likely to grow to in the next 3 to 5 years let's say 17 18 million cases. Our portfolio approach is that if we can 1:01:19 1 hour, 1 minute, 19 seconds meaningfully carve out a singledigit market share of this uh large portfolio uh then it should have a significant 1:01:25 1 hour, 1 minute, 25 seconds impact both in terms of value and in terms of the beta that it'll make. Uh there is one more opportunity that will 1:01:33 1 hour, 1 minute, 33 seconds come uh come our way which is post UK uh FDA implementation we believe that there'll be an opportunity for us to 1:01:41 1 hour, 1 minute, 41 seconds participate profitably in the value segment. Currently uh the value cost segment is growing but there is no money there. Uh so we are we are sort of brand 1:01:50 1 hour, 1 minute, 50 seconds ready in the sense that uh as and when the uh as and when the India UK FDA is implemented we would like to participate 1:01:58 1 hour, 1 minute, 58 seconds in the value cost segment as you know of the 123 million cases in luxury about 50% is value and currently we are not playing in that segment because there's 1:02:06 1 hour, 2 minutes, 6 seconds no money to be made. So I think AVD Maestro will have a significant role to play in terms of driving our value growth and also in terms of adding to our margins. 1:02:17 1 hour, 2 minutes, 17 seconds Okay. And lastly sir this PNA uh volume growth if I look at it it uh clocks at around 19% for this quarter. What if if 1:02:24 1 hour, 2 minutes, 24 seconds this Telangana impact doesn't have happened then what could be the growth like uh it should be continued at 25%. 1:02:31 1 hour, 2 minutes, 31 seconds Uh well actually uh for Telangana like I had mentioned earlier the PNA industry in Telangana grew at about 17% and we also grew at about 17 and a half%. 1:02:40 1 hour, 2 minutes, 40 seconds Tangana impact was largely the Telangana change in the the sort of uh the license disruption that happened actually hit 1:02:48 1 hour, 2 minutes, 48 seconds just the mass premium segment PNA grew there at 17%. Understood. Thank you very much sir. 1:02:56 1 hour, 2 minutes, 56 seconds Thank you. 1:02:58 1 hour, 2 minutes, 58 seconds Thank you. Next question comes from the line of web of Gupta with Boehad India fund. Please go ahead. 1:03:05 1 hour, 3 minutes, 5 seconds Hi sir. Uh thank you for the opportunity. With regard to your brand launch pipeline, I just wanted to understand uh do we plan to launch two 1:03:14 1 hour, 3 minutes, 14 seconds uh brandy brands uh one in the PNA and one in uh regular and one more PNA. What have done and what would be the typical force? 1:03:24 1 hour, 3 minutes, 24 seconds Uh yes. So we we are we are looking at a brandy launch in the in the mass premium segment uh in the prestige segment we 1:03:32 1 hour, 3 minutes, 32 seconds and we already have Chiron uh which is our premium brandy and the reason I'm mentioning this to you is that we have a reasonable uh market share of 25% in the 1:03:42 1 hour, 3 minutes, 42 seconds in the two markets that it operates is in Telangana and in Andra. Now that we've received CSD approval, uh we are 1:03:49 1 hour, 3 minutes, 49 seconds going to look at carving out growth from CSD as well of the millionk segment. 1:03:54 1 hour, 3 minutes, 54 seconds Roughly about 27% of sales comes from CSD. So it's a very large cohort in terms of driving the Chiron sales. So a 1:04:02 1 hour, 4 minutes, 2 seconds brandy in the mass premium segment, a brandy in the prestige segment and a brandy in the uh premium segment. So three brandy brands. 1:04:10 1 hour, 4 minutes, 10 seconds Okay. Okay. So uh I understand golden mist would be around 1,000 rupees price point. How how is Kiron played? 1:04:20 1 hour, 4 minutes, 20 seconds Kiron is roughly 1,400 rupees. 1:04:23 1 hour, 4 minutes, 23 seconds Okay. Okay. Answer uh what about the PNA? What's the brand? What are the plans there and typical price point at which you would be looking to launch? 1:04:33 1 hour, 4 minutes, 33 seconds Uh so we've already uh launched the brand in Telangana. currently at at the sort of the uh the market uh width of 1:04:40 1 hour, 4 minutes, 40 seconds distribution driving the width of distribution. It's called Golden Myth and we'll expand it in the coming quarters. Uh sir, I was asking about PNA vodka brand. 1:04:49 1 hour, 4 minutes, 49 seconds Oh, PNA vodka brand. PNA vodka brand. 1:04:52 1 hour, 4 minutes, 52 seconds We're looking at Q1 exponential year. Um the segment is large and growing as you know. Um and we're quite excited about 1:04:59 1 hour, 4 minutes, 59 seconds the new brand launch in in the PNA vodka. 1:05:03 1 hour, 5 minutes, 3 seconds Got it. Got it. And just one final clarification. So our exit run rate in the luxury ABD NASCRO portfolio is 1:05:11 1 hour, 5 minutes, 11 seconds around 40 K and we would be doubling for the next two years. So reach around 160 200 K. Right sir that's what that's what we're targeting. 1:05:20 1 hour, 5 minutes, 20 seconds Sure that's all from my side. Thank you sir. Thank you. 1:05:25 1 hour, 5 minutes, 25 seconds Thank you. Next question comes on the line of Chaitan with Systematics Group. Please go ahead. Yeah. Uh thank you for the opportunity. 1:05:35 1 hour, 5 minutes, 35 seconds So I just wanted to understand so our higher&p spend had say partially offset our gross margins this quarter and which 1:05:42 1 hour, 5 minutes, 42 seconds were basically towards the luxury brands. Uh so going ahead how should we look at uh&p spend and and is this 18% 1:05:50 1 hour, 5 minutes, 50 seconds margin guidance taking into consideration say the elevated promotional spends which will come ahead? 1:05:56 1 hour, 5 minutes, 56 seconds Yes. The so the 17 to 18% guidance takes into account the increased A&B investment both in our uh portfolio at ABD and also the portfolio at ABDM. 1:06:10 1 hour, 6 minutes, 10 seconds Okay, got it sir. Okay, thank you. 1:06:15 1 hour, 6 minutes, 15 seconds Thank you. Next question comes from the line of DIAD with Varia change LLP. 1:06:22 1 hour, 6 minutes, 22 seconds Please go ahead. 1:06:24 1 hour, 6 minutes, 24 seconds Hi. uh since you're making uh investments in in UP and you articulated uh rational for them can you compare the 1:06:33 1 hour, 6 minutes, 33 seconds state policy uh environment uh in UP u in terms of your outlook as well as a competitive 1:06:42 1 hour, 6 minutes, 42 seconds environment uh in the categories which you are trying to go into. 1:06:48 1 hour, 6 minutes, 48 seconds Uh well I think uh the framework of UP has been fairly progressive. We have seen u uh we have seen a policy uh that 1:06:57 1 hour, 6 minutes, 57 seconds drives premiumization therefore healthier margins for the industry. We also saw last year that the incident of 1:07:05 1 hour, 7 minutes, 5 seconds excise duty payment was moved from the manufacturer to the wholesaler that made uh that made the entire industry more 1:07:12 1 hour, 7 minutes, 12 seconds working capital efficient because uh the duty funding moved to the wholesaler. Uh we are also hearing of uh we're also 1:07:20 1 hour, 7 minutes, 20 seconds hearing of the fact that um uh you know the UPML which is a large category would move move from molasses based ENA to a 1:07:27 1 hour, 7 minutes, 27 seconds grainbased ENA. So that is extremely good news because we are looking at setting up a state of art uh ENA distillery uh in in UP which means 1:07:36 1 hour, 7 minutes, 36 seconds there'll be a very very large market for for ENA in that state. uh and what it has essentially done is that it has created a positive investment 1:07:44 1 hour, 7 minutes, 44 seconds environment because when it's a larger market where you're making money and it is u uh is working capital efficient uh like we are setting up we've acquired 1:07:52 1 hour, 7 minutes, 52 seconds Nicole uh we are setting up a state-of-the-art fully automated bottling unit there uh we are also looking at expanding the ENA capacity in 1:08:00 1 hour, 8 minutes time to come uh the state actually has made itself very attractive in terms of drawing uh investments so that would be 1:08:06 1 hour, 8 minutes, 6 seconds my thesis on UP as a state um as far as competitive uh landscape is concerned um 1:08:14 1 hour, 8 minutes, 14 seconds I I I I I think it's no different than any other market except having a large asset base manufacturing asset base in 1:08:22 1 hour, 8 minutes, 22 seconds UP gives you a definite edge and that's what we are trying to build in UP and within that category now this is 1:08:30 1 hour, 8 minutes, 30 seconds more on the liquor consumption so let's say the categories you are present versus for example beers or u some other 1:08:38 1 hour, 8 minutes, 38 seconds category where is the up as a consumer uh is picking up more which getting the volumes are low and the highest. 1:08:46 1 hour, 8 minutes, 46 seconds I am afraid I I I do not have the numbers on uh on on me ready but we'll be happy to get some data out and share it with you. 1:08:55 1 hour, 8 minutes, 55 seconds Okay, great. No worries. Thank you very much. Thank you. 1:09:00 1 hour, 9 minutes Thank you. Next question comes from the line of Abijit Kundu with Anticstroke Broking. Please go ahead. 1:09:07 1 hour, 9 minutes, 7 seconds Yeah. Hi Alo. uh great set of numbers. U so my I had two questions. One was on uh 1:09:15 1 hour, 9 minutes, 15 seconds iconic white. Now you know everyone has a concern that uh iconic wide has u uh I 1:09:22 1 hour, 9 minutes, 22 seconds mean has the base has become pretty large and uh going ahead uh the growth may not not be as substantial but still 1:09:31 1 hour, 9 minutes, 31 seconds you know uh there should be good amount of u scaling up opportunity right because no one about 2 years back no one 1:09:38 1 hour, 9 minutes, 38 seconds thought that uh this brand would uh scale up so fast and do so well. So uh you know and and other brands when they 1:09:48 1 hour, 9 minutes, 48 seconds grow to this size uh there have been very few such instances of uh of a brand doing so well and going to this uh I 1:09:57 1 hour, 9 minutes, 57 seconds mean scaling up to this size in such a short time uh and and primarily it has been driven by these four states. So you 1:10:05 1 hour, 10 minutes, 5 seconds know you would have some so my question was that you would have some more scaling up opportunities in other states also right because general ch channel 1:10:13 1 hour, 10 minutes, 13 seconds checks also suggests that in West Bengal also you have been doing well in in iconic white. So there would be such states where uh you would be getting 1:10:21 1 hour, 10 minutes, 21 seconds some uh fillers and you know you can still scale up Iconic white and still grow that brand even from these levels. 1:10:28 1 hour, 10 minutes, 28 seconds My first question was this. 1:10:31 1 hour, 10 minutes, 31 seconds Yeah, thanks Ajit. I think um um I would agree with your uh thesis uh that apart from the four or five large markets uh 1:10:39 1 hour, 10 minutes, 39 seconds that the brand has u uh uh is you know is is of reasonable uh presence uh there is an opportunity across many market the 1:10:47 1 hour, 10 minutes, 47 seconds brand that last year we did 5.7 million which should be crossing 10 million it is happening because the brand is growing practically in every market in 1:10:54 1 hour, 10 minutes, 54 seconds some market significantly higher in some market higher right so all all markets continue to contribute uh contribute the brand is already running at a million 1:11:03 1 hour, 11 minutes, 3 seconds case AR R that gets us to about a 12 million case uh run rate um put some growth on top of that I have I will maintain uh we'll maintain our position 1:11:12 1 hour, 11 minutes, 12 seconds that this brand has the ability to be a market leader whether it takes year and a half or it takes two years that's a 1:11:18 1 hour, 11 minutes, 18 seconds matter of time um also what makes iconic and interesting uh case is that it is 1:11:25 1 hour, 11 minutes, 25 seconds getting larger share of new consumers who are moving into the segment largely because it's a fresher more younger 1:11:32 1 hour, 11 minutes, 32 seconds brand and if if the first time consumer who's moving at this price point would look at what are their peers franchising 1:11:39 1 hour, 11 minutes, 39 seconds and therefore iconic comes through uh the word of mouth which is very very strong uh in addition there are u uh 1:11:47 1 hour, 11 minutes, 47 seconds there are two more growth hacks one like I spoke about is CSB where we have received our approval it's a fairly large segment and therefore that will 1:11:54 1 hour, 11 minutes, 54 seconds also add uh to uh to the iconic growth and international markets we are currently shipping to about nine 1:12:01 1 hour, 12 minutes, 1 second countries our footprint will be 35 by the end of this financial year and therefore that gives us a very long 1:12:08 1 hour, 12 minutes, 8 seconds distribution uh opportunity even in the international market so uh that's really where we are with brand iconic we stay 1:12:16 1 hour, 12 minutes, 16 seconds optimistic I think I will just connect to a question that was uh was asked to us I think important thing is that we do 1:12:24 1 hour, 12 minutes, 24 seconds not take the success u for granted and we continuously stay hungry about driving the growth and also recognize that there is a change in the 1:12:32 1 hour, 12 minutes, 32 seconds competitive landscape and uh we have a program that recognizes it and maintains the growth momentum. 1:12:41 1 hour, 12 minutes, 41 seconds Okay, great. Uh my second question was on Zoya. So Zoya, how do you see the brand evolving over the next two years? 1:12:49 1 hour, 12 minutes, 49 seconds What would be the ARR right now? Uh I mean something on that. Uh so u um you 1:12:56 1 hour, 12 minutes, 56 seconds know we I we've said this earlier that when we started our journey in the luxury segment by design we are a whiskey forward company you know 99% of 1:13:04 1 hour, 13 minutes, 4 seconds our revenue comes from whiskey so by design we said that our first luxury brand if you make it non- whiskey it'll be really stress testing uh you know our 1:13:13 1 hour, 13 minutes, 13 seconds capability in terms of building brand blend and route to market. So I think to that extent we are quite happy with what we've done with Zoya. Zoa of course 1:13:20 1 hour, 13 minutes, 20 seconds operates uh uh in a in a in a segment in a segment which is not the largest 1:13:28 1 hour, 13 minutes, 28 seconds segment but from a gross margin perspective the highest gross margin category you know gross margins about 70%. uh we've got two new flavors 1:13:36 1 hour, 13 minutes, 36 seconds launched. We've now shipped it to three countries. So I think u Zoya will continue its growth journey both in India and overseas market. But it will 1:13:44 1 hour, 13 minutes, 44 seconds be limited by the size of the market. Uh the portfolio that we've now built out um some of the newer brands for example 1:13:51 1 hour, 13 minutes, 51 seconds the Irish whiskey as you know is one of the fastest growing category in India and it's a single brand play. Uh so we're quite excited about a which is the 1:14:01 1 hour, 14 minutes, 1 second Irish whiskey. Uh if you look at woodburns and you look at yellow, the two craft whiskies that we have, Indian whiskies that we have, again very 1:14:09 1 hour, 14 minutes, 9 seconds excited about um uh these price point and these products because they will scale up in terms of larger volume. So 1:14:16 1 hour, 14 minutes, 16 seconds like I've said earlier, I think the way to look at the ABDM portfolio, the ABDM business is at a portfolio level and not at a brand level. Uh because it reduces 1:14:24 1 hour, 14 minutes, 24 seconds our cost of sale when we go to a premium premium on premises. uh we go with a one brand it's binary either the person buys it or doesn't buy it when we go with a 1:14:32 1 hour, 14 minutes, 32 seconds portfolio uh then we have the ability of at least making a sale and that is proving to be true uh so apart from zoya 1:14:40 1 hour, 14 minutes, 40 seconds I think some of the big volume drivers in time to come to my mind are going to be uh the Irish whiskey um uh woodburn 1:14:49 1 hour, 14 minutes, 49 seconds uh and and and and yellow and once the UK is in place uh I think the opportunity that will open up in value 1:14:56 1 hour, 14 minutes, 56 seconds scremendous Understood. That's it from my side. Thanks. Thanks. Thanks. 1:15:04 1 hour, 15 minutes, 4 seconds Thank you. Ladies and gentlemen, as there are no further questions, we have reached the end of question and answer session. I would now like to hand the 1:15:12 1 hour, 15 minutes, 12 seconds conference over to the management for closing comments. 1:15:16 1 hour, 15 minutes, 16 seconds Well, thank you once again uh for taking the time out and uh and listening in. 1:15:20 1 hour, 15 minutes, 20 seconds Thank you for all the questions. Um I think we are quite excited about quarter 4 and look forward to connecting again sometime in April and early May. 1:15:31 1 hour, 15 minutes, 31 seconds Thank you. On behalf of all lenders and distillers, that concludes this conference. Thank you for joining us. You may now disconnect your elements.