Allied Blenders and Distillers Limited — Q4 FY26

Allied Blenders and Distillers Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=5l9c3svDeT8 Published: 1d ago

0:00 Ladies and gentlemen, good day and welcome to Allied Blenders and Distillers Q4 and FI26 postarning conference call hosted by Antic Stock 0:09 9 seconds Broking Limited. As a reminder, all participant line will be in the listen only mode and there will be opportunity for you to ask question after the 0:16 16 seconds presentation conclude. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touchstone phone. 0:25 25 seconds Please note that this conference is being recorded. I now hand the conference over to Mr. Abiji Kundu. Thank you and over to you sir. 0:34 34 seconds Hi it's our absolute pleasure to host the management of all vendors and distillers limited for the fourth quarter of 26. Over to Mr. Mukun head of 0:42 42 seconds investor relations and chief risk officer for further proceedings. Thank you. 0:48 48 seconds Thank you Aij. Good evening everyone and thank you for joining our Q4 FI26 results conference call. I hope you have 0:55 55 seconds received a copy of our results presentation. I would like to urge you to go through this along with the disclaimer slides. Today we have with us 1:03 1 minute, 3 seconds from the management of EBD Mr. Shikhar Ramon Morti, executive deputy chairman, Mr. Alo Gupta, managing director, Mr. 1:10 1 minute, 10 seconds Amas Sa, managing director designate and Mr. Ramakrishna Ramaswami, chief financial officer. Now I would like to hand over the call to our MD Mr. Alo 1:18 1 minute, 18 seconds Gupta who will give you the summary of the company's quarterly performance before we open up for Q&A. Over to you Al. Thanks Rul. Uh good afternoon 1:26 1 minute, 26 seconds everyone and thank you for joining us today uh for Q4 and full year FI26 earning call of Ali Blenders and Dist 1:32 1 minute, 32 seconds Limited. Uh we are absolutely pleased to report another quarter of strong and consistent performance marking our seventh consecutive quarter of profitable delivery post listing. 1:44 1 minute, 44 seconds FY26 stands out as a year defining year for EBD where disciplined execution, accelerated premiumization, focus 1:52 1 minute, 52 seconds invested and a prudent capital allocation enabled us to deliver record annual profit while simultaneously strengthening the foundation of long-term sustainable growth. 2:04 2 minutes, 4 seconds On a consolidated basis, income from operation for FI26 stood at 3,949 2:11 2 minutes, 11 seconds cr registering a growth of 11.5% yearon year. We reported highest ever IITA of 2:19 2 minutes, 19 seconds 568 crores, a growth of 28.5% over last year of 451 crores and IITA margin 2:28 2 minutes, 28 seconds expanded by 163 basis point to 14.4%. 2:33 2 minutes, 33 seconds We delivered highest ever pack of rupees 220 cr reflecting the benefits of improved gross margins uh premium mix 2:41 2 minutes, 41 seconds enhancement operating leverage and discipline cost management. 2:45 2 minutes, 45 seconds The above excludes tax expenses which including interest for earlier year of a total of rupees 45.45 cr. adjusted for 2:55 2 minutes, 55 seconds the same the adjusted pack for FI26 would have been rupees 266 cr which is 36.3% 3:03 3 minutes, 3 seconds over last financial year stack of rupees 195 crores our standalone business also delivers 3:11 3 minutes, 11 seconds its highest ever annual financial performance during FI26 income from operation grew by 10.4% to 3:18 3 minutes, 18 seconds 3,99 crores while IITA increased by 33.4% 4% to 604 cr. 3:27 3 minutes, 27 seconds Standalone liida margin improved significantly by 267 basis point to 15.5%. 3:35 3 minutes, 35 seconds While pack grew by 34.1% to 268 cr highlighting the strength and profitability profile of our core operations. 3:45 3 minutes, 45 seconds Looking at the overall performance for the year, FI26 reflects the continued execution of our future ready transformation agenda. Our well- 3:54 3 minutes, 54 seconds definfined four strategic pillars continue to drive overall performance. 3:58 3 minutes, 58 seconds First, premiumization continues to accelerate with PNA contributing 47.2% 4:05 4 minutes, 5 seconds of overall volume and 57.3% during FY26. 4:11 4 minutes, 11 seconds Second, ABD MRO strengthened our entry into the super premium and luxury segment through our asset line built buy 4:19 4 minutes, 19 seconds and partner approach enabling us to establish a diverse portfolio across multiple flavor profiles and price points in record time frame. 4:30 4 minutes, 30 seconds Third, our backward integration projects progress well and remains on track, helping improve supply chain security 4:37 4 minutes, 37 seconds and structural cost efficiency, enabling margin expansion. 4:42 4 minutes, 42 seconds Finally, disciplined execution, neutral to favorable commodity and packaging cost environment and operating leverage collectively enabled meaningful margin 4:51 4 minutes, 51 seconds enhancement with gross margin expanding to 45.6% and ITA margin improving to 14.4%. 4% during FI26. 5:02 5 minutes, 2 seconds Complementing this momentum is the continued success of Iconic White, which crossed a significant milestone and 5:08 5 minutes, 8 seconds recorded sales of 10.7 million cases during FI26 and continues to be the 5:15 5 minutes, 15 seconds fastest growing Millennium Space brand globally. 5:20 5 minutes, 20 seconds Reflecting the company's strong financial performance and confidence in the long-term growth outlook, the board of director has recommended a dividend 5:27 5 minutes, 27 seconds of 270% which is rupees 5.4 per equity share of rupees 2 each for the financial year 5:35 5 minutes, 35 seconds FI26 for the approval of the shareholders at the ensuing annual general meeting of the company. 5:42 5 minutes, 42 seconds Moving to Q4 FY26, we delivered another quarter of healthy consolidated performance supported by resilient consumer demand trends and improved realization across all key markets. 5:54 5 minutes, 54 seconds Income from operations for the quarter stood at 1,020 crores, reflecting a growth of 9.1% yearonear and IITA 6:02 6 minutes, 2 seconds increased by 21.2% to a record 182 crores for the quarter. 6:09 6 minutes, 9 seconds A beta margin expanded from 16.1 to 17.9 highlighting continued improvement in business quality and operating leverage 6:18 6 minutes, 18 seconds growth during the quarter continued to be led by PNA category which delivered strong year-on-year volume growth of 6:25 6 minutes, 25 seconds 20.4 20.5% reaching point reaching to 4.4 million cases. The segment 6:32 6 minutes, 32 seconds contributed 57.7% of overall sales during the quarter reinforcing the strength of our PNA portfolio and improving mix profiles. 6:43 6 minutes, 43 seconds We also witnessed progressive transformation normalization in the Telangana during the quarter with improving trade confidence and 6:50 6 minutes, 50 seconds stabilization in market operation and supporting recovery trend supporting recovery trends with a mass premium and 6:57 6 minutes, 57 seconds other segment quarteron quarter volume growth of 5.6% 6% was driven by southern and eastern market. However, on a y-on 7:06 7 minutes, 6 seconds basis, the segment remained flat as we continue to prioritize profitable state band mixed optimization. 7:13 7 minutes, 13 seconds From a profitability perspective, gross margin expanded sharply by 80 basis point on my basis to 48.2%. 7:23 7 minutes, 23 seconds Supported by a favorable commodity and a packaging cost environment along with backward integration benefits. These gains were partially reinvested towards 7:31 7 minutes, 31 seconds brand building initiatives across core brands and luxury portfolio as well as strengthening organizational capability. 7:38 7 minutes, 38 seconds As a result, the IBITA margin expanded by 179 basis point uh year-on-year basis to 17.9%. 7:47 7 minutes, 47 seconds IITA growth during the quarter was driven by premium mix improvement, favorable input cost, operating leverage, and initial benefits flowing 7:55 7 minutes, 55 seconds from backward integration project. The increase in depreciation during Q4 FI26 and FI26 was primarily attributable to 8:05 8 minutes, 5 seconds accelerated depreciation arising from reassessment of useful life of certain plant asset including the pet bottle manufacturing facility. 8:15 8 minutes, 15 seconds From a cash flow perspective, FI26 marked a significant improvement in operating cash flow generation. 8:23 8 minutes, 23 seconds Operating cash flow improved sharply to rupees 362 crores during FI26 driven by strong profitability and sustained 8:32 8 minutes, 32 seconds working capital support. Our improved cash generation and disciplined financial management have further strengthened the balance sheet. Net debt 8:40 8 minutes, 40 seconds to aid stood at 1.7 times as of March 26 comfortably within our stated framework of below 2x. 8:48 8 minutes, 48 seconds Similarly, net debt to equity remained at 6 well below our internal ceiling of 75x. Even during the peak capex phase, 8:56 8 minutes, 56 seconds we continue to maintain a prudent capital structure while investing aggressively towards long-term profitable growth. Our capital structure 9:04 9 minutes, 4 seconds continues to provide adequate headroom to support future growth plans. 9:10 9 minutes, 10 seconds During the year, we also made significant progress on our phase backward integration and supply chain optimization capex initiatives. 9:18 9 minutes, 18 seconds Phase one pet bottling manufacturing facility in Telangana was successfully commissioned during Q2 FI26 and has 9:26 9 minutes, 26 seconds already become an AIDA accretive from Q3 onwards. Modestly project in Telangana is expected to become operational during H1 FY27. 9:36 9 minutes, 36 seconds Similarly, ELA disciplinary expansion project in Maharashtra is expected to become operational during H1 FY28. 9:44 9 minutes, 44 seconds The expansion will significantly enhance captive blending and ENA capabilities and improve long-term raw material security. 9:53 9 minutes, 53 seconds Phase two of our strategic backward integration expansion. This includes investment across Uttar Pradesh, 9:59 9 minutes, 59 seconds Maharashtra and Arunachal Pradesh aimed at strengthening bottling and EA capabilities across three growth markets. These projects are expected to 10:09 10 minutes, 9 seconds be strongly value created and structurally improve our profitability profile over the medium term. While phase one initiatives are expected to 10:17 10 minutes, 17 seconds contribute approximately 300 business point towards IITA margin enhancement by FI28, the newly announced phase 2 10:25 10 minutes, 25 seconds projects are expected to provide an incremental margin improvement of nearly 100 basis point by FI29. 10:34 10 minutes, 34 seconds ABD Maestro continues to play a pivotal role in shaping our long-term premium and luxury journey. Through this platform, we have successfully 10:42 10 minutes, 42 seconds established a differentiated super premium and luxury portfolio across whiskey, gin, vodka, and run categories 10:49 10 minutes, 49 seconds through our asset light built by partner approach. 10:54 10 minutes, 54 seconds During the years, we further strengthen the portfolio with launches such as the collective, a limited edition 34 year old single mod scotch whiskey. The 11:03 11 minutes, 3 seconds collective has had a strong consumer response with over 50% of the allocations already secured through pre-order and sale. This validates the 11:11 11 minutes, 11 seconds growing appetite for experienceled ultra luxury offering in India. 11:17 11 minutes, 17 seconds We continue to invest in premium consumer engagement mixology activation expanding the markets travel retail and 11:25 11 minutes, 25 seconds CSG presence positioning ABD Maestro as a key long-term growth engine for the company. 11:33 11 minutes, 33 seconds Finally, our export business continued to deliver strong momentum during FI26. 11:39 11 minutes, 39 seconds Export revenue grew by 14.1% year on year to rupees 235 crores supported by our asset light and high margin operating model. 11:51 11 minutes, 51 seconds We also expanded our international footprint significantly from 23 countries to 36 countries during the year. However, during the quarter 4, 12:00 12 minutes exports were partially impacted by geopolitical development and war related disruption in select international market. 12:08 12 minutes, 8 seconds As we enter FI27, the ongoing trend of premiumization continues on the back of growing consumer preference for high quality and experience-driven 12:16 12 minutes, 16 seconds consumption. We believe this structural trend will continue to support our premiumization journey and help us build 12:23 12 minutes, 23 seconds scale with value. Accordingly, we remain sharply focused on driving premiumization value growth and 12:30 12 minutes, 30 seconds consistently increasing the salience of our PNA portfolio. At the same time, in mass premium portfolio, our focus 12:38 12 minutes, 38 seconds remains retaining market leadership in whiskey segment in terms of volume and gross margin and continue to innovate to expand market size. 12:47 12 minutes, 47 seconds In addition, we continue to see encouraging opportunities emerging from relatively underpenetrated premium channels such as CSV and travel retail. 12:56 12 minutes, 56 seconds During FI26, we secured CSV approval for key brands including Iconic, Sterling Reserve, B7, Chiron, and Jolly Roger Ra. 13:06 13 minutes, 6 seconds This strengthens our presence in one of the industry's largest and most profitable channel with an esteemed estimated industry size of 12 million 13:14 13 minutes, 14 seconds cases annually. Going forward, we expect CSG to become an important growth lever particularly for our prestige and our 13:22 13 minutes, 22 seconds portfolio supported by increasing premium brand acceptance with wider channel penetration. 13:28 13 minutes, 28 seconds We also strengthen our presence in travel retail channels through ABD Microsoft with launches across Bangaluru, Delhi, Mumbai and Lucknau 13:35 13 minutes, 35 seconds International Airport. We believe travel retail will continue to play an important role in enhancing premium brand visibility, engaging affluent 13:43 13 minutes, 43 seconds consumers and supporting the global positioning of a luxury luxury portfolio amongst both domestic and international travelers. 13:52 13 minutes, 52 seconds Uh a summary note on a few key brands. 13:54 13 minutes, 54 seconds Officers choice whiskey. For officers choice whiskey, the focus is on stabilizing performance through brand refresh and improved market relevance. 14:03 14 minutes, 3 seconds Efforts are centered on strengthening the consumer connect, enhancing visibility and selectively investing in key market. The objective is to arrest 14:10 14 minutes, 10 seconds decline while enabling gradual recovery and retention. Also in certain high volume key southern markets of Tangan 14:18 14 minutes, 18 seconds and AP driving growth at value price point in the risky category to cater the consumer demand. 14:25 14 minutes, 25 seconds Additionally, as highlighted in our Q3 FI26 earning call, we see a compelling opportunity in Andhra Pradesh mass 14:32 14 minutes, 32 seconds premium brandy segment, a large 12 million case market where ABD had limited prior presence with necessary 14:40 14 minutes, 40 seconds approvals now in place. We have commenced participated participation with our flagship brand officers choice brandy in this attractive and high 14:49 14 minutes, 49 seconds growth segment which is expected to contribute meaningfully over the medium term. Through a combination of above we expect mass premium and other category to grow by low to mid single digit. 15:01 15 minutes, 1 second Now in our prestige and above segment, we remain focused on driving aggregated market share in the whiskey category through our three millennia brands, 15:09 15 minutes, 9 seconds iconic white, officers choice blue and sterling reserve reset. 15:14 15 minutes, 14 seconds We expect to maintain the growth momentum in iconic white through further penetration across key market and expanding in CSD and international markets as well. 15:24 15 minutes, 24 seconds The approach on officer choice blue is to is anchored on broader brand reset to resource salient and competitiveness in 15:32 15 minutes, 32 seconds the deluxe segment. This includes strengthening brand cues, improving visibility and driving consumer reappraisal. The focus remains on 15:40 15 minutes, 40 seconds rebuilding consideration, accelerating recovery in core market. 15:44 15 minutes, 44 seconds As regards serving as a B7, the strategy is focused on reinforcing its premium positioning and improving brand momentum. Marketing efforts are directed 15:53 15 minutes, 53 seconds towards enhancing consumer engagement, sampling brand salience and driving relevance across key consumption occasions. This is expected to support 16:01 16 minutes, 1 second steady performance within the prestige and above segment. We are also in the pipeline to launch a new what offering in the PMA category to further 16:10 16 minutes, 10 seconds strengthen our participation in the large volume high growth widespirits category. Through a combination of 16:17 16 minutes, 17 seconds above, we expect PNA category to grow at high teen by FI28. 16:23 16 minutes, 23 seconds For ABD Maestro, FI26 was a year of establishment, while FI27 will be the year of growth and market scale up. We 16:31 16 minutes, 31 seconds also remain focused on expanding across key markets, strengthening presence in travel, retail, and CSV channel, scaling consumer engagement, and accelerating 16:40 16 minutes, 40 seconds port visibility across luxury and super premium categories. 16:44 16 minutes, 44 seconds We are evaluating the launch of additional scotch offering and further variance across established brands leveraging improving 16:52 16 minutes, 52 seconds market access opportunities under the FDA framework. Overall we expect the topline growth at a consolidated level to be in the range of mid to high at the 17:02 17 minutes, 2 seconds backdrop of higher investment in further scaling up iconified RSD growth of the other three million brand and establish 17:10 17 minutes, 10 seconds establishment of super premium to luxury portfolio of ABD Maestro. Together these initiative provide us confidence of delivering mid-team stopline growth in line with our stated guideline. 17:21 17 minutes, 21 seconds Uh as regards our IIDA outlook, uh the IBIDA will be supported by above and above stated topline growth momentum and 17:29 17 minutes, 29 seconds further aided by benefits from backward integration initiative and potential upside from upcoming UK FDA alongside 17:36 17 minutes, 36 seconds expected Telangana price increase. These gains will be partially offset by rising inflationary environment, ongoing geopolitical uncertaintity impacting 17:44 17 minutes, 44 seconds input cost, incremental ESOP charge which was not applicable last year and continued investment to investment 17:53 17 minutes, 53 seconds behind our brands through calibrated marketing and spend to support long-term growth. From campus perspective, we are 18:00 18 minutes focused on disciplined execution of strategic investment in beta creative backward integration projects. We 18:07 18 minutes, 7 seconds continue to maintain discipline capital allocation and expect leverage metrics to remain within the company's stated guard rails on an annualized basis 18:15 18 minutes, 15 seconds through the capital cycle. With the integrated value chain, disciplined execution to run capital all education and increasing consumer engagement 18:23 18 minutes, 23 seconds across categories. ABD is well poised to deliver long-term profitable growth and sustainable shareholder value. Thank you for your patience listening. Over to you muk and we can start the Q&A now. 18:36 18 minutes, 36 seconds Thank you ladies and gentlemen. We will now begin with the question and answer session. Anyone who wishes to ask a question may press star and one on their 18:44 18 minutes, 44 seconds touchstone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are request to use handsets while asking a question. 18:54 18 minutes, 54 seconds Ladies and gentlemen, we'll wait for a moment while the question Q assembles. 19:01 19 minutes, 1 second Our first question come from the line of Amnish Roy from Noama Wealth Management Limited. Please go ahead. 19:11 19 minutes, 11 seconds Yeah, thanks and congrats. Uh my first question is on uh the near-term margins. 19:16 19 minutes, 16 seconds uh FI26 was a very strong year in all parameters and in H2 FI27 you'll see the UK FTA benefits kick in and if you could 19:25 19 minutes, 25 seconds elaborate on where is the status currently is Q2 also possible or we should build in from H2 only uh why I'm 19:33 19 minutes, 33 seconds asking if this is clearly glass bottles there's a clear inflation the beer companies highlighted this quite clearly and now petrol diesel hike will keep 19:42 19 minutes, 42 seconds happening which means distribution cost every company will go up FMPG companies have taken around four to 5% hike. So if you could tell us any price hike you're 19:51 19 minutes, 51 seconds getting from any states and how do you see margins you discussed that in some detail but if you could clarify H H H H H H H H H H H H H H H H H H H H H H H H H H H H H H H H H H H H H H H H H1, how do you see the margin? 19:59 19 minutes, 59 seconds Uh thank you Agnes. Uh I think if you were to look on what could positively drive the margin, you've already covered FDA. Uh 20:08 20 minutes, 8 seconds basically as we understand Q2 looks like a distinct possibility that the FDA will come in place. Uh so that's a tick. Uh 20:16 20 minutes, 16 seconds the second important uh upside will come from Telangana price increase. Uh as you know the committee has already been formed and they have requested all 20:24 20 minutes, 24 seconds marketeers and manufacturers to provide necessary details in terms of what price increase is required. This is a very important one for the industry but 20:32 20 minutes, 32 seconds especially for us given the fact that it's a very very large market for us and we've got a very very large base. this 20:39 20 minutes, 39 seconds will uh not just incrementally impact um uh margins but significantly impact margins. Uh the third is that in many 20:47 20 minutes, 47 seconds markets announcements have already been made uh and wherever it was possible the industry including us have uh taken the 20:54 20 minutes, 54 seconds price increases. So that's third one. So these really are three things that are sort of common to environment. Uh the 21:02 21 minutes, 2 seconds fourth and more importantly for us is our cash cycle. uh if you would recall our guidance was that by FYI 28 we see 21:09 21 minutes, 9 seconds about 300 basis point improvement in our gross margins and by your your question is limited to FI27 but just to conclude 21:17 21 minutes, 17 seconds and by FI29 an incremental 100 basis point. So these are three or four areas where we believe our margins uh will 21:24 21 minutes, 24 seconds have a positive uh kickoff. As regards the geopolitical related uh uh inflationary pressure um uh for time 21:33 21 minutes, 33 seconds being our assumption is that this issue will resolve over the next month or so and uh some bit of correction and normaly will come in the market. So our 21:41 21 minutes, 41 seconds our view is that if this issue was to resolve over the next couple of months, we will see some short-term pressure. 21:48 21 minutes, 48 seconds But overall for FY27, we should be able to by and large deliver margin no different than FYI uh 26. 21:57 21 minutes, 57 seconds Sure. Uh that's helpful. One followup on this is uh in Telangana that price hike you think that can come uh as in in the 22:07 22 minutes, 7 seconds near term and in Karnataka I had a specific question uh the number of slabs have been reduced very sharply and uh 22:14 22 minutes, 14 seconds alcohol content and taxation there is uh some level of uh linkage is it negative for officer's choice in any way or and 22:23 22 minutes, 23 seconds do you see opportunity in some of the other brands but slight negative for officer's choice in Karnataka Uh I think Karnataka we have to keep in 22:32 22 minutes, 32 seconds mind that the policy is yet to be implemented. Therefore drawing any conclusion at this stage may not be prudent. Uh having said that if the 22:39 22 minutes, 39 seconds policy was implemented in the manner that it is currently outlined or discussions are on uh definitely an up for the PNA segment we are seeing iconic 22:47 22 minutes, 47 seconds doing uh very well in the state of Karnataka and therefore it could get a hockeyistic opportunity in Karnataka. Uh we do expect moderation to happen in the 22:55 22 minutes, 55 seconds lower slabs. uh and if that moderation takes place we believe for a brand like officer's choice it could be neutral to positive having said that it is a it's a 23:03 23 minutes, 3 seconds very very small market for us I mean we put together do on officers's choice maybe about 300,000 cases annually therefore 23:12 23 minutes, 12 seconds the bigger opportunities in the PNA segment but the policies yet to be implemented uh as far as selena is concerned I think our view is uh bit uh 23:21 23 minutes, 21 seconds conservative uh but optimistic uh we are of the view that the price increase will definitely come through. Uh whether it 23:28 23 minutes, 28 seconds will happen in the next two months or not is not the way we are looking at. We we are hopeful that in Q2 sometime this price increase should come through but better to plan from an H2 perspective. 23:40 23 minutes, 40 seconds Your last big question and I'll end there. Uh so my question is to Amarina. 23:44 23 minutes, 44 seconds Uh so firstly in terms of his role and experience obviously fantastic role and experience at Radico White and Meta. I 23:52 23 minutes, 52 seconds wanted to understand his initial thought on allied blenders and what will be his long-term vision and how does the leadership transition happen any 24:00 24 minutes bifurcation in the role in the near term and when does the transition happen. 24:07 24 minutes, 7 seconds So thank you for the question. 24:10 24 minutes, 10 seconds I've obviously joined uh ABD L with a lot of optimism because uh as my friend 24:19 24 minutes, 19 seconds just mentioned, Alo has already set the ball rolling uh for the company to move to the next level. But I see great opportunities in this company. Why? 24:29 24 minutes, 29 seconds Because uh it is at probably the same stage as uh it it was as Radico was when 24:39 24 minutes, 39 seconds I joined them. 10 years back. So we have a 24:45 24 minutes, 45 seconds great set of brands in ABDL with O OC, OC blue and Iconic is uh the fastest 24:54 24 minutes, 54 seconds growing brand in the world today. Uh and of course B7. So there are four millionaire brands which itself is an asset for the company. Uh besides that, 25:03 25 minutes, 3 seconds ABDA ABDM has launched premium to luxury brands 10 10 of them and I I believe 25:10 25 minutes, 10 seconds that since they have launched products in uh every category and price point uh hopefully most of them will practify and 25:19 25 minutes, 19 seconds do well. So it's it's the time right now for the next three years is for me to consolidate and grow the ABDM brands and 25:29 25 minutes, 29 seconds at the same time nurture brands within the ABD setup uh and take them to the next level. Iconic is one product which 25:38 25 minutes, 38 seconds I'm hopeful is going to play a major role in my entire initiative because it is in the segment uh which is a 70 plus 25:47 25 minutes, 47 seconds million plus market and uh I think uh it has aggressively 25:56 25 minutes, 56 seconds moved into this space and is vastly gaining market share. So this is 26:02 26 minutes, 2 seconds one product that I'm winding on. I would certainly like to uh we would certainly like to uh revise officer's choice blue. 26:12 26 minutes, 12 seconds Uh you can see the new face of officer's choice blue in Q2 that will add to the growth momentum of the company. 26:22 26 minutes, 22 seconds Officer's choice I personally believe has a great brand equity. the mother brand 26:29 26 minutes, 29 seconds somewhere this segment has taken a beating in the last couple of years but as far as we are concerned 26:38 26 minutes, 38 seconds we still have more than uh 50 40% market share and uh with some very strong 26:45 26 minutes, 45 seconds markets like Telangana M uh Andra uh Rajasthan 26:53 26 minutes, 53 seconds I believe it's time to strengthen these markets with officers choice again with a new look. So I think these are as far as brands are concerned. 27:03 27 minutes, 3 seconds As far as the next three years are concerned, I have divided my task into a couple of 27:11 27 minutes, 11 seconds cohorts. The first one I said is topline and portfolio buildup which as far as brands are concerned I 27:19 27 minutes, 19 seconds have talked about. We see a revenue growth in the next three years to reach 27:27 27 minutes, 27 seconds high teams. The premium and above segment I believe that it should cross 27:37 27 minutes, 37 seconds the 50% mark as far as volume is concerned and uh as far as value is 27:43 27 minutes, 43 seconds concerned it should be between 70 to 75% mark. 27:49 27 minutes, 49 seconds We have so many. Okay. So as far as we are 27:57 27 minutes, 57 seconds concerned that takes care of the top right and portfolio buildup. The next one is backward integration benefits 28:05 28 minutes, 5 seconds which means optimization of infrastructure. 28:11 28 minutes, 11 seconds one ENA we have initiated projects to produce 28:18 28 minutes, 18 seconds ENA which will take care of 100% of our captive consumption and in the next 3 years we need to make 28:27 28 minutes, 27 seconds sure that the growth takes into account this factor and helps us achieve 28:35 28 minutes, 35 seconds utilization of the ENA capabilities that we Thank you. That was 28:43 28 minutes, 43 seconds so so I have not finished. I'll just complete it quickly. Then we have mold. 28:48 28 minutes, 48 seconds We have initiated projects of uh producing 4 million liters of mold at 28:54 28 minutes, 54 seconds Ranga Core and obviously my objective is to have mold consumption of used for our 29:02 29 minutes, 2 seconds own products in the premium categories and at the same time over the next three years launch our new single mold within in the ABD portfolio. 29:15 29 minutes, 15 seconds As far as the the pet plant is concerned, we have commissioned a project which takes care of our 70 to 29:24 29 minutes, 24 seconds 75% of our requirement. As you know that the normal regular segment of uh in the 29:33 29 minutes, 33 seconds alcob space is very huge. So we will make sure that this consumption uh the the production is used for our captive 29:42 29 minutes, 42 seconds consumption and that brings down our cost substantially. 29:48 29 minutes, 48 seconds Uh the third cohort would be margin enhancement from a level of 45%. 29:58 29 minutes, 58 seconds It is it would be my endeavor that over the next 3 years we take it to 48 to 30:04 30 minutes, 4 seconds 50%. because gross margins in the alco space in India are still very low and I 30:11 30 minutes, 11 seconds think there's huge potential and with the CAGGR growth expected to be in excess of 8 to 10% in the years ahead 30:19 30 minutes, 19 seconds this should be a distinct possibility premium migration is the name of the game 30:26 30 minutes, 26 seconds margin I am I I hopefully with a 40 50% gross margin I think should cross the 20% % mark easily over the next 3 years. 30:37 30 minutes, 37 seconds The return on capital the which is a prudent capital allocation that I see 30:44 30 minutes, 44 seconds should be in the region of 25% over the next 3 years. So that's all. 30:51 30 minutes, 51 seconds So thanks a lot. Uh that was very detailed and a lot of insights. So that's all from my side. Thanks a lot. I think just to answer the second part of 31:00 31 minutes your question on transition, I think we are already um uh at a fairly um 31:07 31 minutes, 7 seconds uh clear stage of transition and uh hopefully should announce it within this quarter and uh uh I think things are progressing very well. 31:16 31 minutes, 16 seconds Thank you. 31:18 31 minutes, 18 seconds Thank you. The next question come from the line of Nitin from HDFC Securities. Please go ahead. 31:26 31 minutes, 26 seconds Thanks for taking my question. Uh some of the question got answered in a detailed uh from uh my first question 31:34 31 minutes, 34 seconds pertains to PMA volumes. Uh congratulations on another year of robust growth in iconic. Uh I'd like to know the aspiration for the next year 31:43 31 minutes, 43 seconds and in terms of you can uh help us understand like how many chains the brand is present and how many states you are aspiring to go in FI27. 31:53 31 minutes, 53 seconds Uh uh listen u uh thanks for being on the call sir your question is not clear about the state if you can repeat uh thanks very much 32:01 32 minutes, 1 second yeah I just want to understand like Iconic is has grown 88% this year and what is the aspiration we have for 27 32:09 32 minutes, 9 seconds and uh also based on like how many number of states we are present and what is the plan ahead like how many more states we will go into 32:18 32 minutes, 18 seconds okay I got it thank you thank you n uh n so from a distribution footprint point of We have a 100% distribution in the 32:26 32 minutes, 26 seconds domestic market be it government market, wholesale or retail market. We are present across all states uh in the 32:33 32 minutes, 33 seconds country. Uh we have been able to get approvals for iconic in CSV channel which is a very large segment and the 32:41 32 minutes, 41 seconds billing has started. So we are very happy because CSD becomes another avenue for growth. In addition, we are currently exporting iconic to six 32:49 32 minutes, 49 seconds countries. We believe this footprint could multiply on an accelerated basis uh largely because of the repeat orders that we are getting. So the growth of 32:58 32 minutes, 58 seconds the brand will continue to come from domestic CSD and international market. 33:04 33 minutes, 4 seconds Uh rather than answer your question of what we expect the brand to do on FY27 which interesting is already running at about a 12 million plus uh ARR. I think 33:13 33 minutes, 13 seconds our aspiration is that we believe truly that Iconic can be a market leader brand and how quickly we can get there is really what keeps us excited. 33:25 33 minutes, 25 seconds So that's uh very good. Uh and second in terms of this ABD milestone performance for FI26 and your aspiration for 27 and 33:34 33 minutes, 34 seconds how is the brand available in on trade off trade. 33:38 33 minutes, 38 seconds Right. So uh Maestro uh by and large is at a stage where they have the core portfolio ready. We have 10 very 33:47 33 minutes, 47 seconds interesting differentiated brands. In addition, we shall be adding two more brands uh to this portfolio. So I think they are through the cons portfolio 33:55 33 minutes, 55 seconds consolidation. It's a 70 member team now which is working at AB maestro largely looking at key accounts. Uh the brands 34:03 34 minutes, 3 seconds are now available in about 13 states as we speak uh exiting March 26 and the further expansion is planned during the 34:12 34 minutes, 12 seconds financial year. Uh since these are uh super premium to luxury brand the focus also on travel retails and they are 34:19 34 minutes, 19 seconds currently available in four travel retails and more to come. And we've also started shipping these brands into some of the international markets. So in FY27 34:28 34 minutes, 28 seconds we will see two new brands roll out into at least 10 more domestic markets. 34:33 34 minutes, 33 seconds Expansion of travel retail and expansion of the international um uh international footprint. So that's really the game plan for AVD Maestro. 34:44 34 minutes, 44 seconds And what is the AR for this AVD master portfolio? 34:48 34 minutes, 48 seconds uh the ARR the next year the next year outlook uh well we're hoping to hit a 34:55 34 minutes, 55 seconds century if not higher in terms of topline can you repeat that I didn't get it 35:03 35 minutes, 3 seconds I think as far as ABD MRO is concerned we are hoping to cross the 100 cr mark soon in terms of annual okay 35:12 35 minutes, 12 seconds is all I think we we'll hit a century if not higher So and last question pertains to this uh 35:21 35 minutes, 21 seconds net to diga and net to equity like uh uh seems to be stretched in fi27 uh because of the assated capacity are 35:29 35 minutes, 29 seconds doing uh do we have the flexibility to cross the uh maximum ceiling or will uh we will do the phased sort of expansion 35:38 35 minutes, 38 seconds so that our ratios are within limit. Uh listen we are quite committed our entire capex investment will be a combination 35:46 35 minutes, 46 seconds of internal acruals and borrowing wherever required but we do not intend breaching these time uh breaching these uh covenants uh at all. 35:56 35 minutes, 56 seconds Sure that's all for my s thank you and thank you thank you thank you our next question comes from 36:04 36 minutes, 4 seconds the line of Mihul from JM Financial please go ahead. 36:09 36 minutes, 9 seconds Yeah. Hi sir. Uh thanks for taking my question. Uh my first question is obviously on your uh overall sales growth guidance of you know uh mid- 36:18 36 minutes, 18 seconds teens and PNA sales growth guidance of uh you know close to high teens. Now if you can for the PNA sales growth while 36:26 36 minutes, 26 seconds you did allude to how iconic will grow uh and obviously to some extent Maestro will be in the scale up mode in FI27 but 36:34 36 minutes, 34 seconds X of iconic and X of ADD MRO we do have OC blue and sterling reserves. I just wanted to understand what are the issue 36:42 36 minutes, 42 seconds what is the issue with actually OC blue and sterling reserve and how do you see these brands playing role in FI27 growth. 36:52 36 minutes, 52 seconds All right. Uh thank you very much. Let me just uh also add to the mix uh a bit about mass premium. So in addition to 36:59 36 minutes, 59 seconds the point that Amar made that we are doing we are trying to do a few things. 37:03 37 minutes, 3 seconds Uh we have now approvals for OC branding in the state of Andra and we see another million millionaire brand in making in OC brandy uh in this financial year. So 37:12 37 minutes, 12 seconds I think that's something that we are excited about again. Uh so I just thought I'll uh add that to the mix. uh 37:19 37 minutes, 19 seconds as far as uh iconic is concerned I've already sort of responded to Nathan's query. So that gives uh reasonably good 37:26 37 minutes, 26 seconds u uh u view to you uh ABDM brand I think it's an interesting point that 37:32 37 minutes, 32 seconds uh you know we keep making that uh as we keep scaling up ABDM portfolio for 1% 37:40 37 minutes, 40 seconds volume contribution that comes to ABD it translates roughly 9% value growth. So when we're talking about our mid teams value growth, I think we have to keep 37:48 37 minutes, 48 seconds one thing in mind that AVDM will not necessarily move the volume growth lever but it substantially impacts the value 37:56 37 minutes, 56 seconds growth lever. Uh as regards OC blue and SRB7 um essentially uh both these brands are 38:04 38 minutes, 4 seconds now more than 10 years old. uh they are operating in highly competitive segment uh with uh uh you know uh strong a strong strong number one and two brands. 38:14 38 minutes, 14 seconds Uh I think uh now that we are able to provide right amount of capital to these brands combined with newer packaging I think 38:23 38 minutes, 23 seconds all we have to do is to address the issue of represent these brands to the consumer uh put the right amount of AMP so the brand is on top of mind and and 38:31 38 minutes, 31 seconds and and it drives back sales. So uh this is one agenda point that is going to keep us busy this year. 38:37 38 minutes, 37 seconds And you you think that the decline will get arrested for these two brands in FI27 and they'll be back to positive growth trajectory. 38:46 38 minutes, 46 seconds Yes. So the marketing program that we put together on SRB7 we first experimented in some of the uh some of our key markets and which is uh which 38:54 38 minutes, 54 seconds which g which has given us enough confidence. Not only we are able to arrest the growth we were able to bring in growth of low single digit. So we're able to see that the marketing the idea 39:03 39 minutes, 3 seconds was that instead of developing AMP money in one go like a bull china shop approach. Let's make sure that we test that what we are doing on the brand is 39:11 39 minutes, 11 seconds actually delivering now that we are satisfied that the marketing program that we put on SRB7 indeed not only growth is is also able to bring some 39:20 39 minutes, 20 seconds growth back. We are happy to contribute a larger AMT sum towards the brand. OC Blue is a very interesting brand because it is uh it's a it operates it's a 39:29 39 minutes, 29 seconds regional uh powerhouse brand. So the focus is not in phase one the focus is that in the pockets of strength how does 39:36 39 minutes, 36 seconds it get back to its leadership position and then the opportunity of rolling out in some of the other markets. Uh I think 39:43 39 minutes, 43 seconds a point again amar has made in Q2 we are rolling out uh perhaps a best-in-class packaging never ever seen packaging on 39:51 39 minutes, 51 seconds OC. uh and we are hopeful that the consumers will love it. 39:55 39 minutes, 55 seconds And sir, you give guidance on the margins and you said that in FI27 we should be able to at least maintain the margins. You are saying uh this with 40:04 40 minutes, 4 seconds respect to Q4 margins or you are saying that you would like to your AIDA margins will be closer to FI26 overall AIDA margins. 40:13 40 minutes, 13 seconds FI26 overall margins. 40:15 40 minutes, 15 seconds Okay. So and and so okay you're not looking at a I mean uh this is like a base case assumption that there is no I 40:22 40 minutes, 22 seconds mean uh expansion won't be there in FI27 or this is a conservative uh estimate 40:28 40 minutes, 28 seconds that uh you know FI27 won't see a bida margin expansion over fi26 it's neither conservative uh I think the 40:37 40 minutes, 37 seconds way to look at is when we look at the overall numbers we will see in Q1 and early parts of Q2 some stress on margin on account of West Asia war as we get 40:45 40 minutes, 45 seconds into Q2 and X2 three or four things are going to happen FTA should kick in the Lara branding should kick in the capex benefit should kick in the season should 40:54 40 minutes, 54 seconds kick in so what we'll see is uh some bit of margin contraction in Q1 early uh Q2 we then see margin expansion happening 41:03 41 minutes, 3 seconds and as we're exiting the year we will see further margin expansion so the guidance that we are giving is that the FY27 41:11 41 minutes, 11 seconds overall uh overall margins we should be hold on to the FY 26 it's not better it uh so that that's the way we are looking 41:19 41 minutes, 19 seconds at it could it be better we answer uh you know the answer is obviously that's the endeavor but that's the base comfort 41:26 41 minutes, 26 seconds that at overall level FI27 margin will be uh will be will be equal to FI26 margin and if this war was to sort of 41:35 41 minutes, 35 seconds wind up quickly then we could see even a better uh position emerging understood and uh on the ESOP chart that 41:43 41 minutes, 43 seconds you me uh mentioned And what is the kind of uh charge that one can see in FI27? 41:51 41 minutes, 51 seconds Uh I think on a quarterly basis you could see a number of about 5 to 6 crores. 41:57 41 minutes, 57 seconds And last question of ABD Master obviously you did allude to 100 crore kind of uh you know revenue guidance for FI27 but how should one look at the 42:06 42 minutes, 6 seconds profitability of this portfolio not from an FI27 perspective but let's say from a two to three year time frame when do you 42:14 42 minutes, 14 seconds see this portfolio break even or is it uh or 100 cr you will see a break even I mean any thoughts on the profitability of this portfolio 42:22 42 minutes, 22 seconds sure um I think the way we had put together the three-ear plan for ABD Maestro was that year one it's it's 42:30 42 minutes, 30 seconds going to be a bitter negative right which you can see uh in the numbers uh we will target towards CM2 neutral which 42:37 42 minutes, 37 seconds is the business being able to uh invest back in the brand from its own internal growth so we'll try and get to as close 42:44 42 minutes, 44 seconds to CM2 neutral and in year three it'll become a CM3 or a beta neutral company that's our threeear outlook so the idea 42:52 42 minutes, 52 seconds is to drive the top line with some clear financial margin guidelines in terms of go from CM3 negative to CM2 neutral to 43:01 43 minutes, 1 second CM3 neutral. So that's really the way we are looking at it. Understood. Thank you so much sir. That's all my that's all from my side. All the best. 43:09 43 minutes, 9 seconds If I just add one more point maybe I think we've not spoken about it. Uh you know our bottling unit that we are planning to put in uh up you know we have fairly large volume base there now. 43:19 43 minutes, 19 seconds Uh the 27 rupee franchise 3 will not be applicable. This will happen sometime in H2. So if you can just multiply 27 43:26 43 minutes, 26 seconds rupees into the into the portfolio we have that's incremental margin on a brand like officer's choice which is going to just change uh which is going 43:34 43 minutes, 34 seconds to change favorably the overall margin position. So I think uh I'm just trying to uh maybe be repetitive we will see 43:41 43 minutes, 41 seconds some margin contraction Q1 early Q2 and thereafter we should see margin expansion and overall delivery. I think 43:48 43 minutes, 48 seconds wants to add something. So uh the up distillery that uh and botting plant 43:55 43 minutes, 55 seconds that we plan to put is going to give us substantial uh leverage into the margin 44:02 44 minutes, 2 seconds accreditation accretion uh and as far as uh brands are concerned up we will definitely as we said as an said that 44:11 44 minutes, 11 seconds we'll gain the benefit of uh 27 rupees franchise fee and today we are the second largest company in UP 44:19 44 minutes, 19 seconds It's it's happened very very quickly and uh we will get this franchise duty benefit on this large volume. One two 44:28 44 minutes, 28 seconds sometime next year we will also uh also look at adding more brands 44:36 44 minutes, 36 seconds which will add to the uh add to the portfolio and profit margins. Thank you. 44:43 44 minutes, 43 seconds Understood. So, so just to summarize while you know while 27 first half might have uh some pressures uh but FI28 you 44:51 44 minutes, 51 seconds are pretty confident at least you have the right levers to get that 300 bits expansion uh that you have been uh that you are targeting 44:59 44 minutes, 59 seconds if you recall we have increased our guidance we had earlier our guidance was 17% margin by if you would notice we 45:07 45 minutes, 7 seconds have increased it to 18% 100 basis point and uh uh we will stay with that guidance That's it. Great sir. Thank you so much for this. 45:18 45 minutes, 18 seconds Thank you. 45:20 45 minutes, 20 seconds Our next question come from the line of Diji from Jeff. Please go ahead. 45:26 45 minutes, 26 seconds Yeah. Hi. Uh good evening sir. Uh sir my first question is on gross margin expansion. So the 300 gross margin 45:34 45 minutes, 34 seconds expansion we have seen the roughly 300 cr of gross uh gross profit expansion. 45:39 45 minutes, 39 seconds uh what uh amount would be because of backward integration and uh what would be because of the raw material price 45:47 45 minutes, 47 seconds benefit or let's say price cycle uh for the uh current financial year as you know that uh only the pet unit by 45:55 45 minutes, 55 seconds and large is operational and the margin expansion on account of that would be about 30 basis point or so uh right and 46:02 46 minutes, 2 seconds balance is purely on account of uh price increases uh control on u uh our our trade spend and of course uh you know 46:11 46 minutes, 11 seconds ongoing focus on the same branding. So this is uh reasonably sustainable um and as the projects keeping the margin we keep on expanding. 46:22 46 minutes, 22 seconds Got it. Uh some of the very very very quick questions are what are the view from Telangana now? 46:30 46 minutes, 30 seconds View from uh do you want to do you want to uh uh share all the questions with me while I pull the information out be? 46:38 46 minutes, 38 seconds Got it. Okay. 46:42 46 minutes, 42 seconds Yeah. Yeah. Uh and one is that uh the iconic white growth is phenomenal. No doubt about it. But when I look at the 46:51 46 minutes, 51 seconds price point of OC uh blue and sterling reserve which is very close to uh iconic 46:58 46 minutes, 58 seconds white. I know the product positioning and everything is quite different but uh in your sense does it cannibalize uh 47:07 47 minutes, 7 seconds iconic white growth cannibalize growth of sterling reserve B7 and uh OC blue 47:14 47 minutes, 14 seconds okay so uh let me respond to this see uh white interestingly operate at a price 47:22 47 minutes, 22 seconds point uh between equal to deluxe and somewhere higher than du so it's able to get consumer both from the deluxe segment and the prey segment that's 47:30 47 minutes, 30 seconds about 120 million cases. Um one thing that uh you know whenever we are in the retail outlets we talk to our our retail 47:38 47 minutes, 38 seconds partners and we ask them what is the source of growth they consistently and they they reaffirm that iconic white continues to grow and get share both 47:47 47 minutes, 47 seconds from Deluxe consumer and from the prestige consumer but they also qualify it is a younger consumer. So I think that is very heartening for us uh 47:56 47 minutes, 56 seconds because uh we we are adding about India is adding about 12 to 13 million consumers of legal drinking age of which 48:03 48 minutes, 3 seconds some of them will take informed choices and when they will look at what is trending amongst the youngsters and the brand iconic should get disproportionate 48:11 48 minutes, 11 seconds shareh from um from versus the other brands. So that's really the growth engine of iconic to your question that 48:19 48 minutes, 19 seconds uh is it taking shares away from SRV7 it is taking share away from all brands operating in that segment including SRV7 48:27 48 minutes, 27 seconds so therefore the way we look at it is that the segment is about 120 million cases OC blue Iconic and Sterling B7 put 48:35 48 minutes, 35 seconds together right we're looking at about 18 20 million cases and this is 20 million cases of a 120 million cases segment and 48:42 48 minutes, 42 seconds in the earlier speech I said that we're looking at a strategy which is how through a combination of three brand and very specific perhaps geography 48:50 48 minutes, 50 seconds initiative how do we continuously get higher market share from this 120 million K segment there is bound to be 48:57 48 minutes, 57 seconds some yeah uh sorry sorry continue 49:06 49 minutes, 6 seconds yeah so uh just from the saleserson perspective when he goes to the market and all uh let's say if he's getting 49:13 49 minutes, 13 seconds high volume from iconic Does it uh let's say is there any differentiation for the saleserson to push OC uh OC blue versus iconic white versus sterling reserve. 49:25 49 minutes, 25 seconds So I think uh fundamentally this is part of our entire budgeting process which happens at a salesman level. So at the start of the year we would know at each 49:33 49 minutes, 33 seconds salesman level what's the market potential what's happening the segment what is the competitive intensity. So the targets get agreed at a brand level. 49:41 49 minutes, 41 seconds Therefore, every TSC is aware that what is the target that has been agreed to the entire incentive structure is aligned to those targets. So, I think 49:49 49 minutes, 49 seconds there is there is honestly great amount of clarity in terms of what needs to be driven, which brand needs to be driven in what market. Like I said, ideas to look at uh overall aggregate shares. 50:01 50 minutes, 1 second Got it. Yeah, you talking about Telangana. So Telangana Q4 50:08 50 minutes, 8 seconds FY 26 over Q3 FY 26 we are seeing reduction both in the overall receivables and in the overdue receivables. 50:19 50 minutes, 19 seconds There's nothing pending from the previous year which is not the previous last two years which is 524 50:29 50 minutes, 29 seconds 2425 there's nothing pending they have cleared up the dues and very soon the balance will also be clear 50:36 50 minutes, 36 seconds got sir my last question is very broad uh it's on premium category strategy let's say we have been quite aggressive 50:45 50 minutes, 45 seconds on premium uh uh entry level at PMA and mixed prestige segment while our product 50:52 50 minutes, 52 seconds innovation or let's say any pipeline to launch in premium strategy where many people let's say market leader are quite 51:00 51 minutes aggressive in expanding that market uh I'm going to request someone to take this question it's to future I think he 51:08 51 minutes, 8 seconds best position to share this okay so can you can you just repeat the question once so in premium segment where uh let's say 51:17 51 minutes, 17 seconds signature uh then uh Blender Pride and then uh uh recently Radico has launched Morpheus 51:25 51 minutes, 25 seconds whiskey in those segment uh many action has been taking place while as a company we are not seeing any product launches in that segment. 51:35 51 minutes, 35 seconds Okay. So let me say that uh that's an important segment that's an important segment of uh more 51:43 51 minutes, 43 seconds than 20 million cases and uh there have been fairly high degree of success that's been seen with some new brands uh 51:52 51 minutes, 52 seconds that have entered. So we recognize the potential of this space and uh we are 52:00 52 minutes also working on a premium brand and we hope to launch it in uh very soon. I would say in edu you will see the a 52:08 52 minutes, 8 seconds launch of a premium brand from uh the ABD uh ABDM portfolio. Okay. 52:16 52 minutes, 16 seconds Thank you very much and all the best for future. Thank you. Thank you. Thank you. 52:22 52 minutes, 22 seconds Our next question come from the line of Karan Kamandar from Choice Institutional Equities. Please go ahead. 52:32 52 minutes, 32 seconds Uh hello sir, congrats on a great set of numbers here. Uh sir, while near-term margin presence is explained quite well. 52:40 52 minutes, 40 seconds Uh what I wanted to know is that uh how are we planning to build into the luxury portfolio and how far out would you see single mold coming out from our end? 52:52 52 minutes, 52 seconds like a proper premium single mold. 52:55 52 minutes, 55 seconds Yeah. So, so I think over the next 3 years we do see a single mold being launched from our portfolio. Uh we are 53:04 53 minutes, 4 seconds working towards it and uh it's too soon to say share any further details on it but we are conscious. You see we are 53:11 53 minutes, 11 seconds setting up a mold plant uh which is uh going to be quite big in its own way. 53:18 53 minutes, 18 seconds It's a 12k plant and hopefully you'll see in the next three years a good product coming out. 53:25 53 minutes, 25 seconds Okay. Okay. Sir, any plans to sort of capture the 3,000 4,000x Maharashtra price market? As I understand that is a 53:33 53 minutes, 33 seconds huge market with great margin. So any any color on that that side of the marketing 53:42 53 minutes, 42 seconds that is what I understand you're talking about 3,000 to 4,000 uh consumer price 53:50 53 minutes, 50 seconds retail price yeah retail retail yeah so first of all uh as far as we are 53:57 53 minutes, 57 seconds concerned we already have brands uh within the ABDM portfolio 54:04 54 minutes, 4 seconds uh that's going to be playing in that price segment. In Maharashtra, we've got woodburns which we are going to promote 54:11 54 minutes, 11 seconds aggressively. Now, uh we've launched an Irish whiskey which is ours that we will promote aggressively. There's a designer 54:20 54 minutes, 20 seconds whiskey yellow that is close to that segment. That's what being going to be promoted uh aggressively and sooner or 54:28 54 minutes, 28 seconds later of course ABD from its own portfolio will probably explore launching a brand as well. 54:38 54 minutes, 38 seconds Got it. Got it. Thank you so much. Thank you for the opportunity. Thank you. 54:46 54 minutes, 46 seconds Thank you. 54:48 54 minutes, 48 seconds Next question comes from the line of Kosto Pawkar from ICC Direct. Please go ahead. 54:55 54 minutes, 55 seconds Yeah. Uh thanks for giving me the opportunity and uh for a good set of numbers. Uh sir, I have just one broader 55:01 55 minutes, 1 second uh question which I want to ask about uh the uh prestige and above that. So now if you look into the segment uh 16.9 55:09 55 minutes, 9 seconds million cases volumes will be achieved in FY26 out of that 10.7 million cases have been achieved by iconic. uh so 55:18 55 minutes, 18 seconds would like to understand like once iconic attain certain scale which other brands would you like to grow uh you 55:26 55 minutes, 26 seconds know parallelly like iconic which can be a millionear brand over the period of time I'm not asking from one or twoear 55:33 55 minutes, 33 seconds perspective this is a kind of question we have done lot of launches in the recent past so uh you know we must be 55:41 55 minutes, 41 seconds having some sense that this grand can you know attempt certain scale and can be a million brand for us and can help 55:48 55 minutes, 48 seconds us to achieve that uh you know uh whatever we are targeting in terms of above you know consistently growing in 55:56 55 minutes, 56 seconds terms of uh volumes and also in terms of contribution. 56:00 56 minutes Thank you, Pas. The segment that you're talking about actually of the 420 million cases is about 160 million 56:08 56 minutes, 8 seconds cases. 120 million cases is whiskey and 40 million is non- whiskey largely brandy and uh vodka segment. Uh so our 56:17 56 minutes, 17 seconds approach in the 120 million case segment is to leverage iconic SRB7 and OCL and to aggregate drive market share year on 56:26 56 minutes, 26 seconds year. That leaves an opportunity in 40 million cases which is non- whiskey which is brandy and vodka. I think Amar has already shared that you know we are 56:34 56 minutes, 34 seconds planning to launch a deluxe vodka. We already have uh under a market prototype a brandy. Uh so looking into medium and 56:43 56 minutes, 43 seconds long term the aspiration is to build a successful uh prestige brandy and a prestige watka 56:51 56 minutes, 51 seconds cuz that segment is now voluminous 30 to 40 million cases. So that we see as the next phase of growth. 57:00 57 minutes Okay. Okay. And I have one book uh bookkeeping question. Uh this one our inventory days have gone up. So any particular reason for it? 57:10 57 minutes, 10 seconds Uh you're talking about increase in inventory. I think one large there are two big drivers there. One is that we have done some uh proactive buying of 57:18 57 minutes, 18 seconds scotch keeping in mind uh uh what's happening to uh the rupee depreciation against pound. uh we'll still get the duty benefit because we are storing 57:26 57 minutes, 26 seconds everything under FTWZ. So we pay the duty at the time of debonding. So that's one reason and AVD Maestro are high uh 57:34 57 minutes, 34 seconds NFC product and uh they are made in smaller batches. So uh these are the two reasons why you would see a increase in our inventory. 57:43 57 minutes, 43 seconds Thank you and all the best. 57:45 57 minutes, 45 seconds Yeah. Thank you. Thank you Costa very much. 57:48 57 minutes, 48 seconds Thank you ladies and gentlemen. Anyone who wishes to ask a question may press star and one on the touchstone telephone. 58:08 58 minutes, 8 seconds Reminder to all the participant if you have a question you may press star and one. 58:28 58 minutes, 28 seconds As there are no further question from the participant, I would like to turn the conference over to management for the closing remarks. Over to you. 58:34 58 minutes, 34 seconds Thank you very much. Uh um thank you very much uh um uh for taking the time out. I know it's been a busy day for you. You have uh other calls to jump on. 58:43 58 minutes, 43 seconds So really appreciate your time and look forward to uh you guys joining us back um for our next quarter. 58:51 58 minutes, 51 seconds Thank you sir. Yeah. Thank you. Thank you. 58:54 58 minutes, 54 seconds Ladies and ladies and gentlemen on behalf of Fantic Drug Working that conclude this conference. Thank you for joining us. And you may now disconnect your