Apex Frozen Foods Limited — Q2 FY26

Apex Frozen Foods Ltd Q2 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=NST4je8GwxE Published: 6 months ago

0:01 1 second Ladies and gentlemen, good day and welcome to the Apex Frozen Foods Limited Q2 and H1 FI26 earnings conference call. 0:11 11 seconds As a reminder, all participal lines will remain in the listenon only mode and there will be an opportunity for you to ask questions after the presentation 0:18 18 seconds concludes. Should you need assistance during the conference call, please signal the operator by pressing star then zero on your touchtone telephone. 0:28 28 seconds Please note that this conference is being recorded. 0:32 32 seconds I will now hand the conference over to Mr. Suyas Shaman from Stella Advisor for opening remarks. Thank you and over to you Suesh. 0:40 40 seconds Thank you. Good morning everyone and thank you for joining us today. We have with us the senior management team of 0:47 47 seconds Apex Foods Limited, Mr. Chri Karuchuri, managing director and chief financial officer and Mr. Dura Prasad, senior 0:55 55 seconds manager accounts who will represent Apex frozen foods limited on the call. The management will be sharing the key 1:02 1 minute, 2 seconds operating and financial highlights for the quarter and half year ended 30th September 2025 followed by a question 1:09 1 minute, 9 seconds and answer session. Please note that this call may contain some of the forward-looking statements which are completely based upon the company's 1:17 1 minute, 17 seconds beliefs, opinions and expectations as of today. These statements are not a guarantee of the company's future performance and involves unforeseen risk 1:26 1 minute, 26 seconds and uncertainties. The company also undertakes no obligation to update any forward-looking statements to reflect developments that offer after a 1:35 1 minute, 35 seconds statement is made. I now hand over the conference to Mr. Chri Karudri. Thank you and over to you. 1:42 1 minute, 42 seconds Yeah, thank you Sur. Good morning everyone and thank you for uh joining us on this investor call for Q2 FYI26. We 1:50 1 minute, 50 seconds have uploaded the investor presentation on the website of the stock exchanges and we do hope that you had a chance to 1:57 1 minute, 57 seconds go through it. Uh to begin with we would like to reiterate our diversification strategy that we have been pursuing over 2:06 2 minutes, 6 seconds the past few years in FI22. For example, our non US uh export business accounted 2:13 2 minutes, 13 seconds for roughly around 24% and this has now ex expanded to nearly 50% in the first 2:21 2 minutes, 21 seconds half of FI26. We aim to keep diversifying our client base across geographies to mitigate the risk of dependence on any one single region. 2:32 2 minutes, 32 seconds That said, the US continues to remain an important market both for India as a whole and for our company also. Now 2:41 2 minutes, 41 seconds coming to the financial performance in Q2 of FI26, the net revenue rose by 19% uh year on 2:49 2 minutes, 49 seconds year to uh 238 cr rupees driven mainly by higher realizations uh at uh rupees 2:56 2 minutes, 56 seconds 870 per kilo marking a 25% increase yearonear. The higher realization was 3:04 3 minutes, 4 seconds mainly on account of firm global shrimp prices uh along with favorable exchange rate moments. 3:12 3 minutes, 12 seconds Now uh sales volumes of course uh have uh declined marginally from uh 2710 3:21 3 minutes, 21 seconds metric tons in Q2 last year to 2606 metric tons in Q2 of FI26 3:29 3 minutes, 29 seconds mainly on account of the US uh tariff linked trade uncertaintities. While sales to the US decline in Q2 FY26, the 3:38 3 minutes, 38 seconds European Union market excluding the United Kingdom continued the growth momentum with uh year-on-year sales growth of 18%. 3:47 3 minutes, 47 seconds And quarteronquarter sales growth of 21% in Q2 of FI26. The non- US business share increased to 56% in Q2 FI25. 3:58 3 minutes, 58 seconds Sorry, uh in FI26, I'm sorry. Um the coming to the profit uh profitability 4:08 4 minutes, 8 seconds uh in Q2 FI26 the gross profit increased by 76% yearonear and 9% quarteron 4:15 4 minutes, 15 seconds quarter to uh uh rupees uh 96 cr with a 9 with a gross margin of 39%. 4:24 4 minutes, 24 seconds The margin improved by 1200 bits yearon year and 552 bits quarteron quarter was supported uh growth in realization and 4:34 4 minutes, 34 seconds stable farmgate uh prices. In Q2 of FI26 the average shrimp purchase price uh for 4:42 4 minutes, 42 seconds the company was around rupees 321 per kilo which was flat yearon year and quarteron quarter. The AITA grew 284% 4:51 4 minutes, 51 seconds yearonear and almost flat quarteron quarter to rupes 18 cr forming an AITA 4:58 4 minutes, 58 seconds margin of 7.2% from 2.3% in Q2 FI26. Lower finance costs and 5:06 5 minutes, 6 seconds depreciation aided further growth in profit after tax which increased to rups 5:12 5 minutes, 12 seconds 12 crores in uh Q2 of FI26 and from a loss of 1.7 cr in Q2 last year and rupees 9 cr in Q1 of FI26. 5:24 5 minutes, 24 seconds Now with regards to the first half of FI26 uh financial performance, our net 5:31 5 minutes, 31 seconds revenue grew 29% yearonear to rupees 497 cr versus rupees 386 cr last year. Gross 5:41 5 minutes, 41 seconds profit increased 60% yearonear to rupees 184 cr with a gross margin of 36% versus 5:48 5 minutes, 48 seconds 30% of for last year. EITA grew 130% yearonear to rupees 36 crore with EIA 5:56 5 minutes, 56 seconds margin of 7.1% versus 4% of last year. Profit after tax 6:02 6 minutes, 2 seconds increased 877% yearonear to rupees 21 crores from 2 crores in H1 of FI25. 6:12 6 minutes, 12 seconds In terms of balance sheet, it continues to remain strong with our total borrowings reduced significantly over 6:20 6 minutes, 20 seconds the past 3 years from 167 crores rupees as of March 2022 to rupees 41 crores as 6:28 6 minutes, 28 seconds of September 25, 2025. In the first half of FI26, the company repaid almost uh 6:35 6 minutes, 35 seconds rupees 30 crores in debt, bringing down the short-term borrowings to rupees 40 crores and a long-term to merely um uh 6:42 6 minutes, 42 seconds rupees 1 cr as of September 25. Our net debt to equity ratio has strengthened 6:47 6 minutes, 47 seconds from 34x as of March 2022 to 005 times as of September 2025. 6:57 6 minutes, 57 seconds uh reflecting our sustained focus on debt reduction and balance sheet strength improved profitability uh lower 7:04 7 minutes, 4 seconds working capital requirements and depreciation our cash flow from operations have grown to 46 crores rupees in first half of 7:14 7 minutes, 14 seconds FI26 versus 7.3 cr rupees in first half of FI25. 7:21 7 minutes, 21 seconds Now uh to conclude with I would like to reiterate that with a lot of the headwinds in the previous quarters or 7:27 7 minutes, 27 seconds couple of years playing out. We continue to focus on the basics uh you know like strengthening of our balance sheet 7:36 7 minutes, 36 seconds diversifying our revenues mainly on account of markets and continuing to ensure that we are ready for the markets as the overall situation uh improves. 7:48 7 minutes, 48 seconds We are hopeful of a fruitful outcome from the ongoing India US trade deal talks uh and look forward to improving export 7:57 7 minutes, 57 seconds trade with US as well as other major markets like European Union where uh we 8:04 8 minutes, 4 seconds have been informed that the uh India EU FDA is also uh likely to get concluded very soon. So we are watching the 8:12 8 minutes, 12 seconds developments carefully and continuing our endeavor to take the right steps towards sustainable business development 8:20 8 minutes, 20 seconds and growth. With that we can now open the floor for uh question and answer session. Uh thank you very much. 8:28 8 minutes, 28 seconds Thank you ladies and gentlemen. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their 8:37 8 minutes, 37 seconds touchstone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants 8:45 8 minutes, 45 seconds are requested to use your handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. 8:56 8 minutes, 56 seconds The first question comes from the line of Nitan Navasti from Incred Research. Please go ahead. 9:04 9 minutes, 4 seconds Hello sir. Um I just wanted to understand the developments on the Europe front. Um our facility itself was made you know for the European market 9:12 9 minutes, 12 seconds with my in mind to enter the European market. However there were a lot of barriers to enter that market including approvals not given uh and other quantitative non-quantitative barriers. 9:23 9 minutes, 23 seconds Now that uh India EU seem to be on the right track for trade um have a lot of 9:30 9 minutes, 30 seconds those barriers gone off or are there still some barriers which stand in your way? 9:37 9 minutes, 37 seconds Uh as far as the barriers are concerned uh definitely the EU uh market will 9:45 9 minutes, 45 seconds continue to have uh you know uh its own set of regulations and stringent checks and measures uh checks in place sorry 9:54 9 minutes, 54 seconds which obviously uh you know will just maybe kind of delay the uh time required 10:01 10 minutes, 1 second for shipping a particular order or uh you know uh any of those uh purchase orders what we But uh as far as the 10:09 10 minutes, 9 seconds general barriers which are there, as far as restrictions which are there, they have all been uh removed. And uh like you mentioned our uh new facility which 10:17 10 minutes, 17 seconds has been also you know conceived or made uh which was created 5 years ago was supposed to be significantly utilized 10:24 10 minutes, 24 seconds for this market but because of that uh major issue which got uh resolved a few months ago especially I mean during the 10:31 10 minutes, 31 seconds Q2 and now uh we are as we are also taking up additional orders for ready to eat also from that market. uh so that 10:41 10 minutes, 41 seconds really it is the big uh hindrance for our business to EU has been removed but however the regular uh you know systems 10:49 10 minutes, 49 seconds which are in place for the EU market in general which make it a little bit uh you know tough to I mean it's not really 10:56 10 minutes, 56 seconds tough it's just that the time taken for uh order delivery would be more in the case of uh EU compared to other um you 11:05 11 minutes, 5 seconds know markets because of the testing protocols involved and prior shipment and all that. So otherwise yeah the major barriers have already been totally 11:13 11 minutes, 13 seconds we have overcome all those barriers thanks to the efforts by government of India. 11:18 11 minutes, 18 seconds Uh with in with that in view are uh the regulations currently for approving our exports to EU in line with Vietnam. With 11:28 11 minutes, 28 seconds that what I'm trying to understand is Vietnam is currently the largest exporter to EU and of course India now has an opportunity to make a mark there. 11:36 11 minutes, 36 seconds uh however our uh even the stringent even checks were quite stringent on Indian shipments compared to Vietnam and 11:43 11 minutes, 43 seconds that also was a hindrance in a way. So is at least the um Hindu reduced to the level of Vietnam or is it still more to go? 11:53 11 minutes, 53 seconds Okay. Uh there are two uh Mr. Nan there are two uh parts here. one is the uh 12:02 12 minutes, 2 seconds general entry barrier which was there because they were holding up approvals of the facilities that has been overcome. Now when you are making 12:11 12 minutes, 11 seconds comparison to another market like Vietnam uh we need to acknowledge the fact that Vietnam has an FDA free trade 12:18 12 minutes, 18 seconds agreement in place for almost uh 2 years. Mod this is the third year I guess and they are at 0% 12:27 12 minutes, 27 seconds uh tariff or duty uh the Vietnam Eastern products into the European Union are at 0% uh for raw ready to cook sorry ready to cook products while we are at 4.3%. 12:40 12 minutes, 40 seconds uh and the also their uh testings at the destination on their goods is uh at 10% 12:49 12 minutes, 49 seconds while the testing on Indian consignments to the European Union are at 50%. So these two major topics which are there 12:57 12 minutes, 57 seconds one is that uh tariff barrier and the other is non-tariff barrier as far as the entry of consignments into the EU is concerned that is being addressed right 13:06 13 minutes, 6 seconds now as we speak in the negotiations of the uh India EU FDA talks and the soon 13:14 13 minutes, 14 seconds uh the soonest that we have been given the information as I mentioned in the opening remarks that it is going to get concluded very soon most likely by the 13:22 13 minutes, 22 seconds end of this year. So hope and subsequently whatever the due process which is uh which will be taken up 13:28 13 minutes, 28 seconds within the EU among all its nations then we should be on par with the country or the other markets which you are 13:36 13 minutes, 36 seconds mentioning about of having you know like the tariff barrier of uh that 4.3% additional on our ready to cook and 7.2% 13:45 13 minutes, 45 seconds 2% on the ready to eat uh differences there and also the testing upon arrival of shrimp consignments from India 13:53 13 minutes, 53 seconds currently at 50% which is a non-tariff barrier all these are being addressed right now so once the FDA is done by the 14:00 14 minutes end of this year that will totally keep us on par that I think that should answer your question so we are all waiting for the FDA to even have these 14:08 14 minutes, 8 seconds uh u you know one or two uh tariff as well as non-tariff barriers to be totally be eliminated for the Indian shrimp consignment. 14:17 14 minutes, 17 seconds Understood sir. Thank you. Thank you. 14:21 14 minutes, 21 seconds Thank you. We take the next question from the line of Bala Murali Krishna from Omen Investment Advisor. Please go ahead. 14:31 14 minutes, 31 seconds Uh hi good morning. 14:35 14 minutes, 35 seconds So the question is regarding the new markets which are opened like Australia and also some I think some Russian market approvals also we have received. 14:45 14 minutes, 45 seconds So what is the potential of those markets and do they have any plans to explore to those markets? 14:52 14 minutes, 52 seconds Yeah. Uh we are of course expanding as uh mentioned uh earlier in the opening remarks. We are of course expanding to 15:00 15 minutes other markets including Russia. And uh now Australia they have recently 15:06 15 minutes, 6 seconds approved uh after a long gap uh almost um almost almost a decade more than a decade uh there were restrictions with 15:14 15 minutes, 14 seconds regard to Australia for shrimp from India um um which those restrictions have been eased and we are looking 15:22 15 minutes, 22 seconds forward for uh to starting the shipments again with Australia. In the case of Russia, uh also they have uh we have 15:30 15 minutes, 30 seconds already are in the process of um you know getting the uh approvals done as they are doing it in phases. Russia also 15:38 15 minutes, 38 seconds there were similar issues like EU uh but uh in the present scenario uh we do have 15:46 15 minutes, 46 seconds the word even from the honorable prime minister of uh the country uh Mr. 15:53 15 minutes, 53 seconds Narendra Modi also that it's being taken up uh soon and he's going to have a 16:00 16 minutes interaction even uh with the you know the president and the government uh later. Um so that they are going to 16:08 16 minutes, 8 seconds clear up the proposals for h sorry the all the pending uh approvals for all the shrimp processing factories. 16:15 16 minutes, 15 seconds So uh we are of course we are looking forward for uh uh doing u you know increasing our sales to other markets as 16:22 16 minutes, 22 seconds that answers. uh we have already started uh doing for Canada. Uh I mean we are increasing that Canadian business and 16:30 16 minutes, 30 seconds now uh Russian approval we are looking for awaiting we have already met few customers and we look forward for you 16:37 16 minutes, 37 seconds know exploiting the potential which is there in that market because we already produce those products which are which the Russian market currently imports for other markets already for us and Europe. 16:48 16 minutes, 48 seconds So it's very easy for us to do just to get the regulatory approval which is being done right now uh as the 16:56 16 minutes, 56 seconds negotiations or discussions between the Indian government and the Russian government are happening at a very a very high level that's that I can only 17:04 17 minutes, 4 seconds comment till that point with regard to Russia. So yes, we are definitely looking ahead and uh I think we should 17:11 17 minutes, 11 seconds be able to start uh if not in the Q3 but at least Q4 we should be able to start for Russia and Australia for sure to 17:19 17 minutes, 19 seconds answer your question that how bigger these markets are like maybe 17:28 17 minutes, 28 seconds 5% share the potential for uh Australia itself is 17:35 17 minutes, 35 seconds quite significant in fact uh the company was doing a good uh chunk of business uh 17:43 17 minutes, 43 seconds good part of business uh in the past uh um I mean uh this was uh you know even before the company became uh private uh 17:51 17 minutes, 51 seconds so let us say before uh 2012 around 2012 13 before that time we used 17:58 17 minutes, 58 seconds to do uh quite a lot of business with Australia and there's a lot of potential in Australia um so we can definitely uh 18:06 18 minutes, 6 seconds you know at least to start with we can easily take it up in in the in the first year five and grow it to almost 10% of the overall business or uh you know uh 18:15 18 minutes, 15 seconds on percentile basis um as far as Australia is concerned in Russia there is a good potential and both the markets 18:24 18 minutes, 24 seconds which you have mentioned uh because of various restrictions uh or these um you 18:31 18 minutes, 31 seconds know hurdles which we were having we were our market share has been uh uh 18:38 18 minutes, 38 seconds taken over by countries like Vietnam or um you know even uh Ecuador to certain 18:44 18 minutes, 44 seconds extent. Um so and Indonesia uh and with these hurdles being or hindrances being 18:51 18 minutes, 51 seconds removed or eliminated in the due course of time in the future we are very confident that we will be able to gain 18:59 18 minutes, 59 seconds back our uh business our market uh into those both those markets. I mean in Australia I mean Russia it'll be a first 19:06 19 minutes, 6 seconds time for us but Australia we have there was a pause of business with them for more than a decade since uh they stopped 19:14 19 minutes, 14 seconds Indian consignments but we it's a good very good market both of them uh Australia definitely it's much bigger uh Russia of course even though this is the 19:22 19 minutes, 22 seconds first time we do we did make studies and we do have an understanding of the market potential there yeah so both of them are very uh 19:31 19 minutes, 31 seconds important will be important markets going forward um to be keeping it let us say on par with UK and even higher than we can 19:38 19 minutes, 38 seconds it'll be almost as far as Canada is concerned Australia and Canada are pretty much kind of similar markets yes please 19:47 19 minutes, 47 seconds okay and then farm prices how's the trend now as of earlier there is a drop because of 19:55 19 minutes, 55 seconds any improvement in the farm prices uh they have been uh stable the farmate prices have been uh uh quite stable uh 20:04 20 minutes, 4 seconds for the past uh 3 to four months almost since April uh almost it's been very stable in between of course there will 20:12 20 minutes, 12 seconds be uh here and there a little bit of spikes uh which would be there uh during some gaps in supply but uh 20:21 20 minutes, 21 seconds the primary producers are also quite have comfortable at these levels and uh they have been um the the prices have 20:30 20 minutes, 30 seconds been very stable actually and Uh in fact um since we do a very small part of the seed business on the hatchery front, we 20:38 20 minutes, 38 seconds also have seen a lot of um interest in the seed booking uh and they are taking the shrimp seed and uh definitely 20:46 20 minutes, 46 seconds farmers also have been going for uh stockings. It's just that they are changing their strategy of the sizes 20:53 20 minutes, 53 seconds which they used to produce. Earlier they used to produce mainly the smaller sizes very small sizes and which mostly used 21:00 21 minutes to cater to uh let us say China for example the Chinese market but now they are looking at more of a mediumsiz uh 21:08 21 minutes, 8 seconds target as their first harvest and that that's more of an individual um plan uh of respective farmers or the primary 21:15 21 minutes, 15 seconds producers and but overall the confidence at the farm level is uh good minus any uh chaos or any issue which will be 21:24 21 minutes, 24 seconds created. which would be created if any climatic issues are there like for example there was some cyclone uh effect 21:31 21 minutes, 31 seconds um last month and some some of the farms may get affected but overall everybody 21:38 21 minutes, 38 seconds are in a they currently the sentiment is good as far as the farming uh producers farmers are concerned 21:47 21 minutes, 47 seconds okay okay cost the water 21:54 21 minutes, 54 seconds that is not uh reflecting in the so the other expenses are also increased 22:01 22 minutes, 1 second quarter quarter only um almost 100% by one year so what are the what is the 22:09 22 minutes, 9 seconds reason for this price and other expenses the raw metal advantage advantage can be 22:16 22 minutes, 16 seconds translate to no uh see the raw material price of course was in fact lesser uh for the 22:23 22 minutes, 23 seconds quarantine It was uh 321 rupees on average. Again that uh I mean for the of 22:30 22 minutes, 30 seconds course definitely it is little bit higher if we if we look at on a half yearly basis this year it is higher by 22:38 22 minutes, 38 seconds 10 rupees compared to last year. One of the major reason why this year the farmers uh you know mood is also in a 22:47 22 minutes, 47 seconds much better way compared to last year is of the prices have been very stable and not you know going low and kind of 22:54 22 minutes, 54 seconds affecting them as far as the raw metal prices are concerned. Now your question related to the other income uh sorry other expenses I'm sorry uh one of the 23:03 23 minutes, 3 seconds most important point with regard to the um other expenses which you also need to understand is that our tariffs have 23:12 23 minutes, 12 seconds increased the uh the the tariff which you are aware which is being paid uh in the case of uh US US market the 50% 23:22 23 minutes, 22 seconds tariff that obviously uh gets factored uh I mean that will the part of the other expenses. One of the reason why 23:29 23 minutes, 29 seconds the other expenses uh jump is there. So that uh is not um so uh by the way the 23:36 23 minutes, 36 seconds the same tariff comp uh is also being compensated by the customers which I think we have already informed to you during Q1 also uh I mean quarter 1 also. 23:46 23 minutes, 46 seconds Um so the uh the other expenses increase is mainly in relation to uh the tariffs especially otherwise most of our costs 23:55 23 minutes, 55 seconds uh have actually uh come down uh comparatively compared to the uh previous uh quarter uh last quarter and 24:04 24 minutes, 4 seconds um um this the u overall gross profit as well as the aida margin also if we uh 24:12 24 minutes, 12 seconds look at it it definitely has been has improved compared to the previous quarter or even on you know uh 24:19 24 minutes, 19 seconds quarteron-quarter basis if you see uh even of last year year-on-year basis also it definitely has improved um not 24:28 24 minutes, 28 seconds just the gross profit but even in gross margin but also the AITA margin uh the other expenses part is mainly due to the tariff component which you can see uh 24:37 24 minutes, 37 seconds has significantly increased uh in Q1 as well as Q2 also uh so of this year of FI26 so mainly on the tariff tariff uh 24:47 24 minutes, 47 seconds part from for the US market obviously as we grow our sales to other markets uh where there are this tariff issues are 24:54 24 minutes, 54 seconds not there uh so that will get negated to that ex to that much extent. So with having a stable or firm selling prices 25:02 25 minutes, 2 seconds from the other other markets also and this you know uh stable and good uh 25:09 25 minutes, 9 seconds farmgate prices our margins should maintain in a in a very comfortable manner 25:18 25 minutes, 18 seconds that's a lot thank you thank you ladies and gentlemen please note in the interest of time and fairness to others. 25:29 25 minutes, 29 seconds We request you to restrict to two questions per participant and rejoin the question queue. We take the next question from the line of Sharon from SVS family office. Please go ahead. 25:41 25 minutes, 41 seconds Yeah, good morning sir. Thank you for the opportunity. Uh since our capacity utilization is only 30%. So how are you 25:49 25 minutes, 49 seconds thinking to unlock this or what could be the factors that could drive for unlocking this capacity utilization going forward let's say in another two three years? 25:57 25 minutes, 57 seconds Yeah. Um main of course the capacity as such uh utilization has been on the 26:04 26 minutes, 4 seconds lower side but now compared to last year uh definitely this year it has been uh in a in a much uh better uh manner. Um 26:14 26 minutes, 14 seconds but we are focusing on growing our uh of course as we diversify not only in markets but also our customers in the 26:22 26 minutes, 22 seconds existing markets. We are uh confident that we will be uh ramping up our uh 26:29 26 minutes, 29 seconds utilization. It is uh true that we did make some uh changes within the operations and even consolidated some of 26:36 26 minutes, 36 seconds the operations uh uh during the Q Q2 but that is just a standalone one oneoff 26:44 26 minutes, 44 seconds case uh where we have been uh you focused more on operating uh you know on one in one facility and trying to you 26:53 26 minutes, 53 seconds know produce more out of that so that we can bring bring down our overall costs. 26:58 26 minutes, 58 seconds But um going forward with this diversified uh uh you know diversification in markets and uh adding 27:05 27 minutes, 5 seconds up more uh to the order book uh we do plan to increase our utilization of our 27:12 27 minutes, 12 seconds capacity even further and uh rather take it up to 50% minimum over the next one year for sure. That is the idea. So 27:22 27 minutes, 22 seconds which actually we have been uh planning this year also uh to take it up to almost 14,000 to 15,000 metric tons uh 27:29 27 minutes, 29 seconds in this year but of course in the in the July in Q2 sorry uh there were there in the beginning of Q2 uh there was certain 27:38 27 minutes, 38 seconds issues with regard to supply on certain sizes so we couldn't uh take up that but next uh going into the future years uh 27:47 27 minutes, 47 seconds definitely we look forward to uh you know uh in increasing the capacity utilization even further um uh aided by 27:56 27 minutes, 56 seconds these uh diversification plans especially. 28:00 28 minutes Okay. Okay. Thank you sir. Uh just a follow up to this is see if we unlock this capacity utilization ideally uh rough back of the calc paper calculation 28:09 28 minutes, 9 seconds uh it means that my our revenue should be touching somewhere around uh 2,400 crores. I mean that's the ideal let's 28:18 28 minutes, 18 seconds say if I reach up to the 80% or 85% of the capacity utilization right 28:24 28 minutes, 24 seconds uh two factors uh here is with regard to capacity utilization we would be more focusing on uh producing more volumes. 28:33 28 minutes, 33 seconds Now whether that would entirely uh bring out uh the uh revenue number uh 28:41 28 minutes, 41 seconds is a different question because as you know the revenue is determinal based on our realization in dollar terms or also 28:50 28 minutes, 50 seconds in the rupee terms. uh as you also notice uh uh the foreign exchange uh um 28:57 28 minutes, 57 seconds gains especially with regard to the depreciating rupee in the past two quarters have definitely helped us to 29:05 29 minutes, 5 seconds maintain on the revenue and yeah uh to um you know uh however um you need we 29:12 29 minutes, 12 seconds all need to acknowledge the fact here that the more expensive uh uh a product uh becomes 29:21 29 minutes, 21 seconds uh it cannot sustain for a long period at that levels. So there would be 29:28 29 minutes, 28 seconds corrections whether it is you know you know for example even these tariff uh these current uh selling uh prices which 29:37 29 minutes, 37 seconds are there for US market especially with the tariffs uh whether they can sustain for a prolonged period that is 29:44 29 minutes, 44 seconds definitely questionable obviously and uh the the sooner um you know um the the 29:51 29 minutes, 51 seconds tariffs are removed or reduced uh it should be encouraging more volume. Uh that's what we are looking forward to. 29:59 29 minutes, 59 seconds So uh I wouldn't exactly be able to give you a uh number of I mean idea on the 30:07 30 minutes, 7 seconds number of amount of revenue but rather we would be focused on our um volume growth for sure. uh and in the present 30:15 30 minutes, 15 seconds uh scenario of you know um 7 between 700 800 rupees per kilo and even further 30:22 30 minutes, 22 seconds value addition as we develop even taking it up to 900 and,000 rupees per kilo on realization front definitely the uh 30:31 30 minutes, 31 seconds absolute revenue will be in in relation to that but we our focus mainly will be on growing the volumes especially uh but 30:40 30 minutes, 40 seconds uh if you ask me today today it is not appropriate because tariffs are also playing a big role in the way the 30:48 30 minutes, 48 seconds revenue is placed in today's scenario which you we all have to acknowledge. So but as these tariffs get removed which 30:55 30 minutes, 55 seconds eventually have to be reduced or removed u because for us everybody so that the consumers can continue to you know uh 31:03 31 minutes, 3 seconds consume the products and buy these products and that way we can also grow volumes. Um yeah I hope I I'm sorry but 31:11 31 minutes, 11 seconds we will not be giving you much uh of uh you know so so uh thank you uh but but I'm not asking I 31:21 31 minutes, 21 seconds was just asking from let's say from a 2 three years perspective taking 10 years average rate and then you can just uh help us in understanding the potential 31:29 31 minutes, 29 seconds it's just about I mean measuring the potential of the current capacity if it shoots the capacity utilization grow what would be the potential revenue is 31:38 31 minutes, 38 seconds what I was the maximum I would only I would only be able we would only be able to give you a idea that if we are able 31:44 31 minutes, 44 seconds to achieve uh a 70% utilization of our capacity current capacity we should be looking at around 20,000 metric tons in 31:53 31 minutes, 53 seconds the due course in the next few years right so that is uh and usually 80 85% is the max out of any uh fixed capacity 32:02 32 minutes, 2 seconds we have beyond that it is not possible to do I mean it's not it's a challenging uh it's not in the interest of the um 32:09 32 minutes, 9 seconds you know machinery which is there. Uh so that is what I can uh we can inform you at this time. Uh but definitely based on 32:17 32 minutes, 17 seconds that the you know the revenue uh would be there accordingly. But I've just gave you we just gave you an idea of how uh 32:24 32 minutes, 24 seconds to what level we can uh do our uh volume going into the future years. Uh when we 32:30 32 minutes, 30 seconds touch up around 70% of our uh roughly you know going to 18 20,000 metric tons in the next two two to three years 32:38 32 minutes, 38 seconds definitely a sustained sustained volume uh growth. It should be sustained also. 32:44 32 minutes, 44 seconds It's not like we just do it in one quarter or do it in one year and then again it comes down. That is not the idea. So we want to have a sustainable 32:51 32 minutes, 51 seconds uh growth. In fact we have had issues over the past uh last year especially which we we want to come out of such scenarios now with this diversification 32:59 32 minutes, 59 seconds plans definitely it would it isn't is going to help. Yeah. 33:04 33 minutes, 4 seconds Okay. Just the last last question from my answer. So so so if this let's say uh you know the the capacityization keeps 33:12 33 minutes, 12 seconds on going up and reaches to the levels whatever you are mentioning uh in 2 three years ideally the current margins whatever I'm seeing should also be 33:21 33 minutes, 21 seconds incremental the it will be incremental right I mean what is the steady state margins you will be getting in this 33:27 33 minutes, 27 seconds business is what I want to know see uh in the present uh I mean okay 33:35 33 minutes, 35 seconds with regard to uh the margins uh especially if we look at it we were uh 33:42 33 minutes, 42 seconds doing u uh earlier we used to do an AITA level of 10% uh plus it was always uh 33:48 33 minutes, 48 seconds double digit but then um after the um in the past 1 to two years definitely our uh margins have contracted for various 33:58 33 minutes, 58 seconds um reasons also for certain provisions which were made especially in the past two years for for some legacy related 34:05 34 minutes, 5 seconds related issues whatever. Uh we uh definitely uh you know with growth in uh 34:13 34 minutes, 13 seconds um with the growth in uh the value terms obviously uh uh you know a 10 to 12% uh 34:22 34 minutes, 22 seconds margin is doable uh for sure on an aida level as far as as long as the realization also continues to grow that 34:32 34 minutes, 32 seconds is and we cannot expect higher realizations on commodity level products or the baseline products where the 34:40 34 minutes, 40 seconds volume growth would be there in a good way. But as we definitely increase our value added output which not uh is just 34:49 34 minutes, 49 seconds not our focus even government of India today especially even uh you know to the level of the honorable prime minister is 34:57 34 minutes, 57 seconds uh asking us to grow the value added uh component more uh more in that component. So that definitely would be 35:05 35 minutes, 5 seconds uh you know not only just enhancing our uh you know the on revenue numbers but uh revenue on sales alone but it will 35:13 35 minutes, 13 seconds also be enhancing our margin so that we can have a stable uh you know uh 10 12% uh level which was there. It's not like 35:21 35 minutes, 21 seconds something which we did not uh uh you know have in the past. So it's not something we we missed on the past few years. It it was a little bit 35:29 35 minutes, 29 seconds challenging for various issues but those as we overcome and all these positive news which are there for the our industry uh and especially from the 35:39 35 minutes, 39 seconds markets which with which we deal with uh definitely uh we should be looking in that direction. 35:45 35 minutes, 45 seconds Okay. Okay. I think sir I mean uh you know everything is in the place. It's just that we have to wait for the you know the revenue to come. Uh let's just 35:54 35 minutes, 54 seconds see and all the rest. Thank you. Thank you for the opportunity. Yeah. Thank you. 35:59 35 minutes, 59 seconds Thank you. We take the next question from the line of Sedat Shri Kumar from I thought PMS. Please go ahead. 36:07 36 minutes, 7 seconds Uh hi sir. So my question is like in H2 to SI 26 36:14 36 minutes, 14 seconds uh the realization increased by 22%age compared to H1 FI25 right? 36:23 36 minutes, 23 seconds Uh sorry can you you said the realiz can you repeat I'm sorry. 36:28 36 minutes, 28 seconds So the H1 FI26 realization is higher by 22% compared to the last half year of FI2 right? 36:37 36 minutes, 37 seconds Yes. So how of that how much of that is due to increase in tariff and uh let's 36:44 36 minutes, 44 seconds say the dollar uh depreciates sorry uh the rupee rupee 36:53 36 minutes, 53 seconds uh okay uh see with regard to uh tariffs you need to understand currently especially 37:00 37 minutes um in the first quarter we were mostly uh paying 10% tariffs uh um uh in the 37:08 37 minutes, 8 seconds first during the first quarter but during the uh second quarter actually I mean pretty much from the middle of almost from the beginning of second 37:16 37 minutes, 16 seconds quarter even though the tariffs were announced uh at 50% from uh August onwards that definitely uh affected uh u 37:25 37 minutes, 25 seconds you know um some of our shipments in July also and um uh obviously uh it's a 37:33 37 minutes, 33 seconds blend in the first half of uh the first half of the current uh 37:39 37 minutes, 39 seconds fiscal year where uh the tariff uh component is uh one minute sorry 37:48 37 minutes, 48 seconds that was uh the tariff alone uh was uh it will be roughly around uh on the 37:54 37 minutes, 54 seconds sales um it'll be around 9 I'm sorry it is almost uh it's a blend only the 38:03 38 minutes, 3 seconds tariff component was around 9%. I mean that is because we have diversified our markets and we are not doing everything 38:11 38 minutes, 11 seconds anymore on US. So only on the tariff between the two quarters we on the absolute number basis we had uh we had 38:19 38 minutes, 19 seconds to pay around uh 39 uh 39 crores roughly around 40 crores sorry. So that is uh 38:26 38 minutes, 26 seconds you know which would be uh you know translating to roughly around uh uh 9% 38:33 38 minutes, 33 seconds uh I guess. So hello. Okay. Okay. Okay. 38:38 38 minutes, 38 seconds 8.5% 8.5% on the tariffs comp on the tariffs alone. Uh now rupee depreciation uh in the previous quarter uh and in I 38:47 38 minutes, 47 seconds mean compared to last quarter of course sorry last year first half and this year's uh first half we did have uh 38:55 38 minutes, 55 seconds uh uh definitely a good uh in our advantage in the industry's advantage as well as the company's advantage. 39:02 39 minutes, 2 seconds Definitely we did have uh a good uh depreciation of uh rupee uh which uh 39:08 39 minutes, 8 seconds helped us uh um so so that uh that is to the extent of uh almost we had around uh 39:16 39 minutes, 16 seconds I think we roughly had around five rupees 5 to six rupees compared to last year. But uh the most important point 39:24 39 minutes, 24 seconds here is with regard to revenue, the sales uh the unit value in dollar terms 39:32 39 minutes, 32 seconds uh without the uh tariff also was very stable compared to uh last year. The 39:41 39 minutes, 41 seconds main important part is this that uh even the t the prices the selling prices without the tariff also have remained 39:49 39 minutes, 49 seconds quite stable. uh this year compared to last year. So overall the demand in the market uh from various countries I mean 39:59 39 minutes, 59 seconds USA of course continuing that definitely helped us to have a good realization on in dollar terms as well as um of course 40:08 40 minutes, 8 seconds supported by the foreign exchange definitely it helped us in the rupee terms also. Yeah. 40:14 40 minutes, 14 seconds Understood. So you said to an earlier participant that let's say you see a potential of doing uh up to 10%age of 40:23 40 minutes, 23 seconds your current business in Australia. I mean I don't know if that is what you meant. 40:29 40 minutes, 29 seconds Yeah we said there is a potential to grow till 10% of our business to uh over a period of time. That was what I said when the earlier participant was 40:37 40 minutes, 37 seconds specifically asking what exactly is the potential there with the market of a for the market of Australia. That's what he was specifically asking and I was 40:46 40 minutes, 46 seconds telling we could 10% of our business uh which we we we was we could uh uh take 40:52 40 minutes, 52 seconds it up uh and we I we were telling that I was telling that we could grow it till that uh level because uh it's a very u 41:02 41 minutes, 2 seconds good market which we had in the past but we lost it over the past decade and now we are looking forward to regain it back soon. 41:15 41 minutes, 15 seconds that I would request you to please join the queue. 41:19 41 minutes, 19 seconds Thank you. We take the next question from the line of Uni from Geot Investment Limited. Please go ahead. 41:28 41 minutes, 28 seconds Hi, good morning. Thanks for the opportunity. I have uh two questions. So one is the continuation from the early 41:35 41 minutes, 35 seconds participant. So the tariff impact if I want to understand uh in other expenses how much is the 41:44 41 minutes, 44 seconds tariff amount if we can verificate it it would be helpful it in in our case for the half year it 41:51 41 minutes, 51 seconds was 40 crores 40 crores right and the second question is you had mentioned the previous call 41:58 41 minutes, 58 seconds right if we uh get the approval from EU for the new facility that is the RT 42:05 42 minutes, 5 seconds facilities uh around 2,500 uh tons of additional volumes you 42:13 42 minutes, 13 seconds expect. So you you uh continue with that expectation, maintain that expectation. 42:19 42 minutes, 19 seconds Uh I'm sorry. Can you repeat this question please? I'm sorry. 42:22 42 minutes, 22 seconds The RT facility for the um uh since we got the approval from EU. Yes. 42:29 42 minutes, 29 seconds How say would be the volume additional volume you expect? In the previous calls you mentioned about 2,500 additional 42:36 42 minutes, 36 seconds volume. So if you maintain that is what I am asking. 42:41 42 minutes, 41 seconds So currently in the volume what we have uh so far we have done uh currently uh 42:48 42 minutes, 48 seconds in our uh sales of uh uh for the first half of roughly uh we have so far we have done around 5,600 42:57 42 minutes, 57 seconds uh metric tons and out of which uh currently the EU market is around uh 46%. 43:05 43 minutes, 5 seconds So we are in fact growing it even further. uh we in fact are we have good set of orders for that market uh except 43:14 43 minutes, 14 seconds for uh certain uh regulatory uh hindrances which will be there uh for that market while doing shipments but otherwise we look forward to grow it 43:23 43 minutes, 23 seconds even further um and definitely um in FI26 we will be doing uh the 43:30 43 minutes, 30 seconds highest amount of volume in volume terms we'll be able to do highest amount of sales with uh to the EU market for sure 43:39 43 minutes, 39 seconds um as we have uh engaged with lot of customers in a diversified way in the entire uh European Union market. So 43:47 43 minutes, 47 seconds yeah, we are currently already we are at uh doing uh you know currently we are at 43:53 43 minutes, 53 seconds uh 2,00 200 2,300 metric tons already as far as EU is concerned. 43:58 43 minutes, 58 seconds Uh sorry I'm uh specifically asking for the RT facility that you recently got. 44:03 44 minutes, 3 seconds Yes, RT we have yes RT we will be able to do it for sure which will be more possible in the next fiscal year for 44:10 44 minutes, 10 seconds because as you know we have received the approval and we have already started doing uh RTC uh in 44:18 44 minutes, 18 seconds in Q2 and RTE we have taken up orders now and we are continuing to take more of those RTE orders for the EU market uh 44:28 44 minutes, 28 seconds for in Q3 and Q4. the impact of the RTE uh we should be able to see more of it 44:35 44 minutes, 35 seconds towards uh from you know next year because the full year we will be able to uh you know take it up uh sorry we'll be 44:42 44 minutes, 42 seconds able to uh exploit that potential to the fullest next year. So how much how much if you can uh give a guidance for how 44:51 44 minutes, 51 seconds much it is since you have mentioned the uh you have already um the customers you have already so how 44:59 44 minutes, 59 seconds much it would be in terms of volumes from this RPS uh from this I mean this year of course 45:06 45 minutes, 6 seconds it uh we should be doing around 1,000 metric tons max high side on a higher side which uh tentatively in the current 45:14 45 minutes, 14 seconds financial year roughly we should be able to do around 1,000 but next year we should be uh in only in the RT we should be looking at 2,000 to 2,500 metric tons as stated in the earlier call. 45:26 45 minutes, 26 seconds Okay, thank you very much. Thank you. 45:30 45 minutes, 30 seconds Thank you. We take the next Kumar question from the line of Ashok Kumar from EI company. Please go ahead. 45:42 45 minutes, 42 seconds Hello. Am I audible? Yes, please go ahead. 45:46 45 minutes, 46 seconds Yeah. So first of all congratulations on the good setup numbers. Uh so I have uh one question uh which is a followup to 45:53 45 minutes, 53 seconds the previous uh conference call. Uh so where you have mentioned that uh after getting the EU approval for the new capacity you mentioned that there is 46:01 46 minutes, 1 second some uh new local approvals which are pending. Um so are they gone through I mean got the new 46:08 46 minutes, 8 seconds they are done. Yeah they were done. They were done. We already started. 46:12 46 minutes, 12 seconds Yeah. So I I think we are I have we have been answering that we have already started doing and in fact with regard to the RTC 46:19 46 minutes, 19 seconds consignments we have already started RTE we have we are producing them currently and we'll be uh shipping them as and 46:25 46 minutes, 25 seconds when the required uh uh uh you know requisite testing is done which is mandated as per the EU prior to 46:33 46 minutes, 33 seconds shipment. [clears throat] Uh so that we'll be doing those also we are already doing from the new facility for the EU market. 46:40 46 minutes, 40 seconds Okay. Okay. So that means the the exports also they started. 46:43 46 minutes, 43 seconds Yeah. Yeah. As they have started. It's just that they it started towards you know in the current uh sorry Q3 not I 46:51 46 minutes, 51 seconds mean yeah in the present uh quarter it did start and we are already uh taking up orders and uh further orders also growing them uh from the new facility. 47:01 47 minutes, 1 second Yeah. Out of the new facility. 47:02 47 minutes, 2 seconds Yeah. Yeah. Good to know that. So I have just one more question. Um so with regard to the US tariffs uh you know after they have been moved to the 50%. 47:11 47 minutes, 11 seconds Um I think this would be the first quarter I mean the current quarter which is Q3 which is going on. So this would be the first quarter which will have a 47:19 47 minutes, 19 seconds full quarter impact of the you know the 50% parish of the US. So how do you see the current quarter uh shaping up by 47:27 47 minutes, 27 seconds considering the diversification uh we have in place because why I'm being speech I know that this is a huge short-term call but these kind of 47:34 47 minutes, 34 seconds situations will give us the clarity on the resilience we got into our business after the diversification. So that's the reason I'm to know how this quarter is going to shape up. 47:44 47 minutes, 44 seconds Well uh uh well uh as uh negotiations trade negotiations happen continue to 47:52 47 minutes, 52 seconds happen and there are dialogues happening parallelly during our company's quarterly corn call but also parallelly 48:00 48 minutes there are negotiations happening between the governments. Uh we should see whether the entire Q3 will really be uh 48:08 48 minutes, 8 seconds exposed uh to the 50% tariffs or not. I don't know. It is too premature to say to state. However, uh the impact of the 48:17 48 minutes, 17 seconds tariffs is there and we wouldn't uh uh conceal that fact but it is a fact that it is there and uh we have had uh 48:26 48 minutes, 26 seconds certain um issues where uh some of our orders had to be moved to some other market because obviously at a 50% the 48:34 48 minutes, 34 seconds consumers or the customers are unable to take up uh uh you know at the at that cost. So definitely such impacts are 48:43 48 minutes, 43 seconds there but then uh there are equally there are also other uh clients or customers who have accepted to uh absorb 48:51 48 minutes, 51 seconds the uh 50% tariffs and they are you know willing to give additional orders asking us to continue to ship as they need the 48:59 48 minutes, 59 seconds product and there are certain customers who have uh set uh programs with India specifically and with our company 49:08 49 minutes, 8 seconds specifically we continue we are continuing with them But uh definitely uh there is uh kind of a disturbance uh 49:16 49 minutes, 16 seconds in the overall um uh planning of our customers and it kind of create we believe it will it's a short term and it 49:25 49 minutes, 25 seconds will remain short-term and supposedly the trade negotiations which are uh there uh happening with between India 49:32 49 minutes, 32 seconds and USA and positively they come up with a uh resolution very soon um uh again 49:40 49 minutes, 40 seconds which has been also been uh emphasized uh by the honorable prime minister also 49:46 49 minutes, 46 seconds uh to uh our sector also. uh so we feel that uh you know very soon it should get 49:52 49 minutes, 52 seconds resolved and positively the 50% tariff doesn't impact the entire quarter of current five fiscal year to answer your 50:00 50 minutes question that's what I we can keep we can keep our fingers crossed with regard to that but uh definitely there is an impact there is there are it's a kind of 50:08 50 minutes, 8 seconds a disturbance u because it is becoming a um challenging uh issue for our 50:15 50 minutes, 15 seconds customers also to work with uh us uh as such because this is definitely an added cost and they are unable to push the 50:22 50 minutes, 22 seconds products uh at the same ease like they would do in a normal case. I mean if it was not 50% hypothetically or even if it was 25%. 50:32 50 minutes, 32 seconds If the additional 25% was not there and it was only 25%. 50:36 50 minutes, 36 seconds There would not have been any change most likely. In fact that's what our customers have been informing us that we would have been doing everything 50:44 50 minutes, 44 seconds normally. we didn't we don't need to diversify to other producing nations or we don't need to cancel some of the orders that's what they stated to us so 50:52 50 minutes, 52 seconds yeah so definitely uh I would say the additional 25% definitely uh is has been causing a trouble uh the the penal 25% 51:02 51 minutes, 2 seconds whatever we want to call it as yeah so that impact yeah thanks for the detailed answer actually my intention also the same to 51:09 51 minutes, 9 seconds know uh to know about it because uh thanks to the diversification and the regulation millions which we got into our business. 51:16 51 minutes, 16 seconds Uh hopefully this will be a shortterm scenario and let's hope the best for the coming. Yes. Thank you. Thank you. Yeah. Thank you. Thank you very much. 51:25 51 minutes, 25 seconds Thank you. We take the next question from the line of Sedat Ashri Kumar from I thought PMS. Please go ahead. 51:33 51 minutes, 33 seconds So um in the first half you have done almost 46 crores of uh cash flow from operations right? 51:43 51 minutes, 43 seconds Yes. and and the last year FI25 did almost 50 crores. 51:49 51 minutes, 49 seconds So how do you plan to let do you have any plans to uh you know make the existing ready to 51:58 51 minutes, 58 seconds cook facilities more uh into value added with the cash? 52:06 52 minutes, 6 seconds We so far we have been of course as you can see we have been reducing our debt and keeping it very low. In fact, we are 52:14 52 minutes, 14 seconds positive our uh uh subsequent quarters borrowing also will be coming down significantly as far as utilizing the 52:23 52 minutes, 23 seconds positive cash flows are concerned and also the uh utilization of the uh ready 52:31 52 minutes, 31 seconds to cook uh the old facility rather which is exclusively meant for RTC. um we would be uh you know focusing on doing 52:40 52 minutes, 40 seconds certain customized products for certain markets. We are entering into certain new product categories for the 52:49 52 minutes, 49 seconds certain markets. Unfortunately, we will not be able to uh uh reveal the product 52:57 52 minutes, 57 seconds scope or the markets. I'm sorry. uh on this call um and uh we are going to utilize both our old and new facility uh 53:06 53 minutes, 6 seconds which is the smaller one and the bigger one for these products and we look at because those products are supposedly 53:13 53 minutes, 13 seconds not just uh uh which I think this answers uh partly to another participant's question earlier uh which 53:20 53 minutes, 20 seconds is also a value enhanced uh product uh which is not just um not on just revenue side but also it's going to give us 53:28 53 minutes, 28 seconds better margins. So we are not just restricting the old facility if we whenever we would we would use it again 53:37 53 minutes, 37 seconds we are using it now again last quarter we didn't use it much uh because we wanted to consolidate the operation during that uh phase um so we whenever 53:46 53 minutes, 46 seconds we will be using the old facility we are also doing within the ready to cook in the RTC category itself in the segment itself we will be focusing on enhanced 53:56 53 minutes, 56 seconds value products uh so that even that uh uh it's it needn't be our RTE to just 54:03 54 minutes, 3 seconds get higher value. We have other products which we are working with our customers which have we have already finalized. We have them in our order books. We have 54:11 54 minutes, 11 seconds the required equipment which is uh already being purchased and we even in the RTC we are looking at uh growing our 54:19 54 minutes, 19 seconds value even further in the RTC segment itself. Okay sir. Thanks. Yeah. Okay. Thank you. 54:28 54 minutes, 28 seconds Thank you. We take the next question from the line of Abhishek Singh from SNS Capital. Please go ahead. 54:38 54 minutes, 38 seconds Yeah. Hi sir. Good afternoon. Can you hear me? Yes please. Yes please. 54:43 54 minutes, 43 seconds Yeah. Hi. Uh so so so sir this is a follow up from one of the previous calls and um I think what we understood is um it takes around 45 days for us to 54:52 54 minutes, 52 seconds completely process the order and get it delivered to us. So the question being um I think we might have you here. Did 55:00 55 minutes you say I'm sorry I need to correct you here. Did you say that it takes 45 days to deliver or 45 days to ship? 55:09 55 minutes, 9 seconds I think it is 45 days to ship is it to ship? Yes. Correct. Okay. 55:13 55 minutes, 13 seconds 30 to 45 days. Yeah. To deliver it takes almost 60 days from the time of shipment. Yes. 55:19 55 minutes, 19 seconds Okay. Okay. So, so the question coming is that I think for the upcoming peak season which is Q3 uh for the festivities we might have already closed 55:27 55 minutes, 27 seconds on the bookings uh by now, right? So the question being uh what kind of what kind of impact are you seeing compared to 55:36 55 minutes, 36 seconds last year when we did not have all these uh the tariff situations going on? 55:45 55 minutes, 45 seconds Uh uh uh of course uh like you rightly mentioned uh most of our uh sales that are meant for utilization the products 55:53 55 minutes, 53 seconds meant for utilization during the holidays are already shipped. 55:57 55 minutes, 57 seconds most of the sales have uh have already been done between Q2 and uh early part of Q3 whatever we have already done that 56:05 56 minutes, 5 seconds and uh obviously to negate the tariff uh related issues and you know um our 56:13 56 minutes, 13 seconds company was focusing on diversifying to other markets that's how we increased our um business our sales to the uh non 56:21 56 minutes, 21 seconds US uh markets in a significant manner in a in a good way that is something that's 56:28 56 minutes, 28 seconds how we are u focusing on and maybe uh we should have done it much earlier but now 56:34 56 minutes, 34 seconds this is something which uh um you know if not late but we all need to acknowledge the fact that USA will 56:43 56 minutes, 43 seconds continue to be the largest market for our products in the highest value possible in a normal course that will 56:51 56 minutes, 51 seconds always be so um well if you ask us how whether these tariffs are impacting us. 56:58 56 minutes, 58 seconds Uh yes, which I did state earlier also to another participant. Now if the tariffs are not at this level, it are they are at reduced level or if no 57:08 57 minutes, 8 seconds tariffs definitely the scope for growing in the USA itself is much higher because the potential is quite high there. It's 57:15 57 minutes, 15 seconds not like it can be replaced somewhere elsewhere. 57:19 57 minutes, 19 seconds Yeah, we can make efforts even let it be even domestically here and there. uh but uh still um that is the largest market 57:28 57 minutes, 28 seconds of in the world with regard to shrimp consumption. I mean the the scope of the portfolio of the products uh is very uh 57:35 57 minutes, 35 seconds high um when we compare even though China may be the biggest consumer in volume terms but the products are 57:43 57 minutes, 43 seconds baseline commodity they are not they don't have much scope of value addition when compared to USA example so uh yeah 57:52 57 minutes, 52 seconds we are uh currently that this issue is there that's why we are focusing on other markets so that we 58:00 58 minutes won't entirely get affected because of this from big hindrance from one market. 58:06 58 minutes, 6 seconds Yeah. So that which I think we have been answering the same thing earlier also that with these diversification plans and which we have already implemented 58:14 58 minutes, 14 seconds and we are we have been quite successful that way we that's how we are trying to negate the headache or the problems the troubles which are coming up because of the tariffs. 58:24 58 minutes, 24 seconds Got it. Got it. Got it. And uh so the second question is um I have not heard about but but do we have any ongoing 58:32 58 minutes, 32 seconds issues in terms of you know like because shrimps are very much coherent to the diseases. So do we have anything ongoing recently? 58:42 58 minutes, 42 seconds Um nothing specifically recently which is uh different from what it has been there already. 58:50 58 minutes, 50 seconds So it's not something specific or something new. So as far as diseases at the farms are there uh during during 58:58 58 minutes, 58 seconds certain uh times of the year when the climate is favorable for the disease they kind of attack those farms and 59:08 59 minutes, 8 seconds after a period that just after that period is done um it comes to normaly so that is it's usual it's nothing unusual at this time we didn't have any of these 59:16 59 minutes, 16 seconds specific episodes that have actually impacted uh in a big way. 59:21 59 minutes, 21 seconds Okay. And just the last question. Um, so suppose I mean I'm talking about a best case scenario now. Suppose the trade 59:29 59 minutes, 29 seconds talks whatever have been happening they go in line with what the company or the investors are expecting. So do we have a 59:37 59 minutes, 37 seconds way with these uh with these suppliers based in US for them to come back to us rather than you know whatever they have 59:44 59 minutes, 44 seconds done so far within Q3 obviously as part of their diversification process. 59:50 59 minutes, 50 seconds uh that will more impact Q4 to answer your question. Yeah. If they come in Q3 obviously that will impact the shipments of Q4 not in within Q3. 1:00:01 1 hour, 1 second Right? You get the point. Yeah. 1:00:03 1 hour, 3 seconds Because uh they uh let us say the their plan for buying uh if things are 1:00:11 1 hour, 11 seconds resolved within Q3 definitely their plans for buying uh end of Q3 and early Q4 all that will get changed. Definitely 1:00:18 1 hour, 18 seconds it'll get changed. We are confident of that based on our discussions with our customers. Yes. 1:00:25 1 hour, 25 seconds Okay. Okay. That uh thank you so much and u Yeah. Thank you. 1:00:31 1 hour, 31 seconds Thank you. We take the next question from the line of Nitan Ranjit from Frontline Excess Capital. Please go ahead. 1:00:40 1 hour, 40 seconds Okay. Thanks for the opportunity and I think you have touched upon this issue a few times in the call itself but towards the end of your interaction with 1:00:48 1 hour, 48 seconds the last part. I think the management kind of told us that we are still viewing US as one of the major market 1:00:57 1 hour, 57 seconds and and that that's just kind of that is kind of puzzling because you know actually as favor tariffs when compared 1:01:04 1 hour, 1 minute, 4 seconds to us and you know I'm sure that you know the Indian government and the US government would ultimately reach some 1:01:11 1 hour, 1 minute, 11 seconds consensus on removing these tariffs but in the short term how much peaceable is how how how h How how peaceful is it is 1:01:21 1 hour, 1 minute, 21 seconds it for us to actually export into the US given given the arbitrage because you know 1:01:28 1 hour, 1 minute, 28 seconds just looking at the tariffs which ikura enjoys it's something like this 18% as compared to something as compared to 1:01:36 1 hour, 1 minute, 36 seconds what something like 50% that we actually pay so in the short term don't you think 1:01:42 1 hour, 1 minute, 42 seconds exports in the US as such would be have become kind of unliable because I'm sure that 1:01:50 1 hour, 1 minute, 50 seconds I guess uh the I guess you might have missed the uh point here is uh the customers who 1:01:59 1 hour, 1 minute, 59 seconds are buying produce uh the customers from USA who are buying the produce uh products from India 1:02:06 1 hour, 2 minutes, 6 seconds are bearing those tariffs. 1:02:11 1 hour, 2 minutes, 11 seconds So as far as viability is concerned, it wouldn't be affecting should not be affecting the Indian exporters with 1:02:19 1 hour, 2 minutes, 19 seconds regard to tariffs as far as the viability is concerned. 1:02:24 1 hour, 2 minutes, 24 seconds However, however, the quantum the volumes definitely will have an impact of which we are uh I mean they would 1:02:32 1 hour, 2 minutes, 32 seconds have an impact to certain [clears throat] extent because not all customers in the USA are in a position to absorb these sort of tariffs of 25% 1:02:39 1 hour, 2 minutes, 39 seconds plus 25%. example but uh they are obviously whether it is please understand whether it was 10% in April 1:02:46 1 hour, 2 minutes, 46 seconds 2025 or 25% in August and subsequently another 25% making it total 50% from 10 to 25 then again from 25 they added 1:02:55 1 hour, 2 minutes, 55 seconds another 25 and made it 50%. So whoever have been buying they are absorbing those tariffs. So it's more about our 1:03:03 1 hour, 3 minutes, 3 seconds volumes uh maintaining uh growing or you know or continuing or reducing that is the only point which we would have with 1:03:11 1 hour, 3 minutes, 11 seconds regard to USA market. Uh but definitely viability wise also as uh we I we stated to an earlier participant the prices 1:03:19 1 hour, 3 minutes, 19 seconds have remained firm and stable. they have not uh uh soften or anything at the customer level with the 50% tariff also 1:03:29 1 hour, 3 minutes, 29 seconds the prices remained stable. It is not like 50% has come in to play and the our uh general without the tariffs our sales 1:03:38 1 hour, 3 minutes, 38 seconds prices have come down. No, that situation was not there. So that way that is one of the reason which we I think we explained in our opening 1:03:45 1 hour, 3 minutes, 45 seconds remarks also that the margins remained uh good uh mainly on account uh these three factors. One was the exchange rate 1:03:54 1 hour, 3 minutes, 54 seconds uh fluctuation and farm gate prices but our realization in dollar terms also was good. It was it was it maintained very 1:04:01 1 hour, 4 minutes, 1 second it was very stable. So right now because of the demand within the US or whatever certain other issues from other origins 1:04:09 1 hour, 4 minutes, 9 seconds whatever it may be reason but uh our prices remain quite stable there so we don't really have an issue as far as viability is concerned while doing 1:04:17 1 hour, 4 minutes, 17 seconds business with USA the whole point comes to whether we are able to do more and more volume what we would have done if 1:04:25 1 hour, 4 minutes, 25 seconds it was not 50% tariff maybe that's that that's how that is where the situation is currently 1:04:32 1 hour, 4 minutes, 32 seconds So you don't see our market customers in the US moving towards suppliers potentially from the from the level. 1:04:41 1 hour, 4 minutes, 41 seconds Yeah. No no no we we did not see I did tell you I think we answered that that some customers have moved their buying 1:04:48 1 hour, 4 minutes, 48 seconds uh diversified their buying from us to some other uh origins. It did it did happen because 50 I but your question 1:04:57 1 hour, 4 minutes, 57 seconds was talking your earlier question was about viability and in in such a case the cost of the company did not increase 1:05:04 1 hour, 5 minutes, 4 seconds because of the tariffs. However, the volumes the our sales definitely we could have we would have we definitely have lost some of our volumes. We should 1:05:12 1 hour, 5 minutes, 12 seconds have we could have done even more if we had not had some cancellations or if some of our new future orders which were uh supposed to come to us did not come 1:05:21 1 hour, 5 minutes, 21 seconds to us and they have moved to other origins. That was one of the reason I mean not the only reason but because we have started our diversification much 1:05:28 1 hour, 5 minutes, 28 seconds earlier even before these tariffs actually kicked in in April 2025 but we have diversified even further and now we are growing our business into other 1:05:37 1 hour, 5 minutes, 37 seconds markets. So but to say that USA will no longer be viable or it will not be a um 1:05:44 1 hour, 5 minutes, 44 seconds you know a feasible market to do business not right because even today there are customers who are continuing 1:05:51 1 hour, 5 minutes, 51 seconds to buy or who are willing to buy from us by bearing those tariffs. 1:05:57 1 hour, 5 minutes, 57 seconds So I'm not saying the entire set of customers in the USA are willing to do that but we do have a good chunk of customers who are uh some of our 1:06:05 1 hour, 6 minutes, 5 seconds customers both in the retail as well as the food service companies food service customers are uh continuing to buy from us uh with the tariffs. Yes, they would 1:06:13 1 hour, 6 minutes, 13 seconds have reduced to certain extent or they are buying on required basis rather than or bringing down their inventory days what you know instead of because they 1:06:21 1 hour, 6 minutes, 21 seconds are also waiting eagerly if the trade deal can happen if India can do something or if the duties or tariffs could be reduced they are also waiting 1:06:30 1 hour, 6 minutes, 30 seconds eagerly so you know so that is uh there so it's a USA is not a negative market for us for our industry in general or 1:06:39 1 hour, 6 minutes, 39 seconds our company got it and one more thing I Just to add on this so uh so how are these contracts 1:06:46 1 hour, 6 minutes, 46 seconds actually are these like long-term arrangements that we have with some of these or assurance or should I say could 1:06:54 1 hour, 6 minutes, 54 seconds change how is that there are both there are short-term medium-term as well as long-term but long-term is not beyond uh 10 months 12 1:07:02 1 hour, 7 minutes, 2 seconds months very there's very limited customers which we deal with where certain customers where we have such 1:07:09 1 hour, 7 minutes, 9 seconds contracts but most of them are short and medium-term Like to answer your question, it is 3 to 4 months at the most max usually. But the ones which are 1:07:18 1 hour, 7 minutes, 18 seconds at 10 months, 12 months and all that very limited and there are specific customers who need uh their programs which they have been working with us for 1:07:25 1 hour, 7 minutes, 25 seconds many years and we continue to do such contracts and even in such contracts please understand all our contracts post tariffs have been revised accommodating these tariffs. 1:07:35 1 hour, 7 minutes, 35 seconds So just because we have had a 6 months contract and suddenly because this change on tariffs was not specific to 1:07:43 1 hour, 7 minutes, 43 seconds our uh product or our country alone, right? It happened everywhere and when the customers needed these products from 1:07:50 1 hour, 7 minutes, 50 seconds us, they have amended their contracts accordingly and tomorrow when these tariffs will be removed, they we will again be going back to our contracted 1:07:59 1 hour, 7 minutes, 59 seconds price. So we have that is very clear understanding between the customers and us on that part. 1:08:08 1 hour, 8 minutes, 8 seconds Okay. 1:08:09 1 hour, 8 minutes, 9 seconds Yeah. And if I could just squeeze in one more question and this is regarding I think you had kind of invention something like 2,500 1:08:18 1 hour, 8 minutes, 18 seconds tons of tons of um ready to eat exports into the into Europe. So how is that how 1:08:25 1 hour, 8 minutes, 25 seconds is this going to par? Is this going to be some kind of a white label thing by which we supply or are we going to actually brand our products? 1:08:34 1 hour, 8 minutes, 34 seconds No, we are going to brand our product. 1:08:36 1 hour, 8 minutes, 36 seconds It'll be in customers brands only. We have our customers who are currently sourcing those products from other origins. They while they have been 1:08:44 1 hour, 8 minutes, 44 seconds sourcing the RTC products from us. Now ready to eat products they have been sourcing from other origins and now they have started after they understood that 1:08:51 1 hour, 8 minutes, 51 seconds we they got the confirmation that we are done with all these procedural part and approvals have been done. they have started and as I think we have mentioned 1:09:00 1 hour, 9 minutes specifically to an earlier participant that we we would see a bigger impact of the RTE more into next year uh next 1:09:08 1 hour, 9 minutes, 8 seconds fiscal year because um in April May is the time when they will be locking in most of those contracts even for because 1:09:16 1 hour, 9 minutes, 16 seconds as as we also stated to a different participant that the most of the buying almost till the end of this current calendar year is pretty much done and 1:09:24 1 hour, 9 minutes, 24 seconds whatever is required for the next two three months in Jan Feb March is mostly the residues post holidays and so we are 1:09:32 1 hour, 9 minutes, 32 seconds looking forward for a good buying even for RTE from the European Union market uh for in the calendar year 2026 for 1:09:39 1 hour, 9 minutes, 39 seconds sure and that will definitely have a big um u a good impact uh let us say uh for our company for FI27 for sure for the 1:09:49 1 hour, 9 minutes, 49 seconds full year okay I know it's early times to make a to make to make how much of a margin meth centric 1:09:56 1 hour, 9 minutes, 56 seconds how much of impact this RP is going to going to have on the margin but all the rest 1:10:03 1 hour, 10 minutes, 3 seconds I'm sorry I did not get your question in terms so in terms of ready to eat 1:10:10 1 hour, 10 minutes, 10 seconds wide level sales to the to the European Union I know that these are earlier times but what sort of marginal impact 1:10:18 1 hour, 10 minutes, 18 seconds marginric impact can we actually envision going forward because of this I Typically generally uh on an average 1:10:27 1 hour, 10 minutes, 27 seconds all RTE products margins will be hovering around you know roughly around 50 cents plus or minus per kilo. 1:10:37 1 hour, 10 minutes, 37 seconds Sorry could you please repeat that once more? 1:10:39 1 hour, 10 minutes, 39 seconds 50 cents per kilo. I said roughly 50 cents per US 50 cents. Okay. Thank you and all the best. 1:10:47 1 hour, 10 minutes, 47 seconds Thank you. Thank you. 1:10:49 1 hour, 10 minutes, 49 seconds Thank you ladies and gentlemen. Due to time constraint, we take the last question from the line of Chintan Mata from Lloyd's LLP. Please go ahead. 1:10:59 1 hour, 10 minutes, 59 seconds Hi, Congratulations sir for the good set of numbers. Extremely happy with the kind of numbers and the management uh you 1:11:07 1 hour, 11 minutes, 7 seconds know efforts. Sir, I've been listening to the whole call and there the things you've been uh there's a definite fact 1:11:16 1 hour, 11 minutes, 16 seconds that uh we lost some of the clients in US but you the team privated the management privated and you know get uh 1:11:23 1 hour, 11 minutes, 23 seconds to the other geographies but I'm bit I'm bit confused out here is that you want to understand that okay we have lost 1:11:30 1 hour, 11 minutes, 30 seconds volumes in US and we try to made up to different geog geographies I want to understand uh when we shifted this volume to different geographies 1:11:38 1 hour, 11 minutes, 38 seconds uh are we seeing that those volumes would be more in permanent permanent in nature or it's kind of a one-off that 1:11:46 1 hour, 11 minutes, 46 seconds you are seeing you know the shift and you know we've just diverted our shipments so once the volumes come back 1:11:54 1 hour, 11 minutes, 54 seconds to us uh those volumes still remain intact and the US will regain the lost volumes and that would actually add to 1:12:02 1 hour, 12 minutes, 2 seconds the volumes so are or are there any possibilities that the new relationships are explored in that different markets 1:12:09 1 hour, 12 minutes, 9 seconds we see a more uh double growth over time and I'm trying to understand the overall picture is it possible for you to 1:12:17 1 hour, 12 minutes, 17 seconds succeed yeah first thing uh the relationships which are new relationships or new 1:12:24 1 hour, 12 minutes, 24 seconds markets which we are diversifying into or the new business which we are uh trying to um you know grow is not 1:12:32 1 hour, 12 minutes, 32 seconds temporary and is not purely only because uh there is a a pro temporary problem or 1:12:40 1 hour, 12 minutes, 40 seconds there's likely to be a temporary problem in the US because of these tariffs. No, these uh markets, these relationships 1:12:47 1 hour, 12 minutes, 47 seconds and those sales will continue uh to grow and of course it depends on that market potential and those customers obviously but we it is more on 1:12:55 1 hour, 12 minutes, 55 seconds a permanent basis to answer your first question and uh when uh hypothetically whenever the tariff 1:13:04 1 hour, 13 minutes, 4 seconds reduction or tariff removal whatever either of those happens and as our volumes grow even with the US um market 1:13:13 1 hour, 13 minutes, 13 seconds which will we'll be gaining back our volumes also for sure. There's uh no doubt about that. Uh which has been clearly stated by our customers multiple 1:13:22 1 hour, 13 minutes, 22 seconds times because of this additional 25% the second 25% it's becoming really a problem for them to absorb. Um uh 1:13:30 1 hour, 13 minutes, 30 seconds definitely we'll be gaining back the volume and uh obviously uh this will be in a more uh to a in a win-win situation 1:13:39 1 hour, 13 minutes, 39 seconds for the company as such with uh regaining the volume from the US market 1:13:45 1 hour, 13 minutes, 45 seconds as well as the um newly uh achieved volume sales volume which out of these 1:13:52 1 hour, 13 minutes, 52 seconds new markets definitely it is in the help in the in the interest of the company and it'll be uh it's only in the good um 1:14:00 1 hour, 14 minutes for the better betterment of the future of the company for sure and it should be uh long long long-term long-standing. So 1:14:08 1 hour, 14 minutes, 8 seconds it's not nothing none of this diversification is temporary to state to answer your question very simply it's all permanent it's on permanent basis 1:14:16 1 hour, 14 minutes, 16 seconds please mean excellent that's uh that quite sums up a lot so I mean uh you know somewhere in the conqueror you again mentioned that you know that uh the client's laws 1:14:24 1 hour, 14 minutes, 24 seconds have uh you know they have diverted the volumes from the different uh originating countries so when the you 1:14:32 1 hour, 14 minutes, 32 seconds know the when the US comes back or the situation gets normal from on tariff And so you mean to say that those lost 1:14:39 1 hour, 14 minutes, 39 seconds volume uh they will be discontinuing uh with their temporary uh you know originator I mean I mean how how the 1:14:47 1 hour, 14 minutes, 47 seconds things works out I'm trying to understand that u you know when we have lost a certain kind of a relationship due to tariff and they might have found 1:14:54 1 hour, 14 minutes, 54 seconds that volume from a different player so when the uh you know the tariff uh gets normalized so they will discontinue with 1:15:02 1 hour, 15 minutes, 2 seconds that part of market I mean I'm understand that wouldn't that be a challenge again to uh you know reinitiate that particular volumes lost. 1:15:11 1 hour, 15 minutes, 11 seconds Well uh the only reason why our volumes currently if any lost if any being reduced with any customers are purely 1:15:18 1 hour, 15 minutes, 18 seconds based on the tariffs additional cost which obviously certain those other origins necessarily 1:15:26 1 hour, 15 minutes, 26 seconds do not cost them that much. But however the delivery point and uh consistent uh 1:15:33 1 hour, 15 minutes, 33 seconds supply which is possible uh you know uh from India from our company you know in India in general uh 1:15:41 1 hour, 15 minutes, 41 seconds definitely customers are looking forward to take come back again to India and absorb that you know their requirements future needs obviously they are not it's 1:15:50 1 hour, 15 minutes, 50 seconds not like they're going to cancel today's contracts which they have yes which they did in our case maybe I I I it's 1:15:57 1 hour, 15 minutes, 57 seconds premature for me to state today that they will be cancelling their contracts and awarding that to us. Currently, we know they have had lot of delays also. 1:16:07 1 hour, 16 minutes, 7 seconds In fact, some of them have been taking some additional volume which was not planned with this 50% tariff. They are also taking some additional volume from 1:16:14 1 hour, 16 minutes, 14 seconds us uh even cancelling from the other origins because there they have also they are having lot of delays from their 1:16:22 1 hour, 16 minutes, 22 seconds side. So in because they need the product. So in spite of I mean getting their customers end customers confirmation they are actually uh taking 1:16:29 1 hour, 16 minutes, 29 seconds a c getting end customers confirmation on bearing the additional cost they are taking the volume from us also additional volume it's not significant 1:16:37 1 hour, 16 minutes, 37 seconds but it is there. So uh getting back the volume if the tariffs are removed or reduced is not going to be a big problem 1:16:47 1 hour, 16 minutes, 47 seconds for us from the US market. No, I mean as India also it will not be a problem and for for the company also it's not going to be a problem. That's how we see it. 1:16:57 1 hour, 16 minutes, 57 seconds Thanks and thanks for answering my questions patiently. Really appreciate. Thank you. Thank you. 1:17:03 1 hour, 17 minutes, 3 seconds Thank you ladies and gentlemen. With that we conclude the question and answer session. I now hand the conference over to Mr. Chri Karuturi for his closing comments. 1:17:14 1 hour, 17 minutes, 14 seconds Yeah. Thank you uh one and all for uh making it to our uh investor call of Q2 FY26. Uh for any uh further queries or 1:17:23 1 hour, 17 minutes, 23 seconds clarifications you can always reach out uh to our company uh on the email address IR at apexfrozenfoods.com 1:17:32 1 hour, 17 minutes, 32 seconds and uh you can you always we also have stellar IR advisor as our investor relations they they can clarify any 1:17:39 1 hour, 17 minutes, 39 seconds information any queries or doubts you have. Thank you very much. Have a good day. Thank you. 1:17:44 1 hour, 17 minutes, 44 seconds Thank you, sir. On behalf of Apex Frozen Foods Limited, that concludes this conference call. Thank you for joining us. And you may now disconnect your lines.