Apex Frozen Foods Limited — Q3 FY26

Apex Frozen Foods Ltd Q3 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=hz_L1jnDK1s Published: 2 months ago

0:01 1 second Ladies and gentlemen, good day and welcome to the Apex Frozen Foods Limited. Q3 and 9 months FI26 earnings 0:07 7 seconds conference call. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions 0:15 15 seconds after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on 0:24 24 seconds your touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Shuya 0:31 31 seconds Saman from Stellar IR advisor. Thank you and over to you sir. 0:37 37 seconds Thank you. Good morning everyone and thank you for joining us today. We have with us the senior management team of Apex frozen foods limited. Mr. Chri 0:46 46 seconds Haruti managing director and chief financial officer and Mr. Da Prasad senior manager accounts who will 0:53 53 seconds represent Apex Foods Limited on the call. The management will be sharing the key operating and financial highlights 1:01 1 minute, 1 second for the quarter and 9 months ended 31st December 2025 followed by a question and answer session. Please note this call 1:08 1 minute, 8 seconds may contain some of the forward-looking statements which are completely based upon the company's opinions expectations 1:16 1 minute, 16 seconds as of today. These statements are not a guarantee of the company's future performance and involve unforcing risk and uncertaintities. The company also 1:25 1 minute, 25 seconds undertakes no obligation to update any forward-looking statements to reflect developments that occur after a statement is made. I now hand over the 1:33 1 minute, 33 seconds conference to Mr. Chi Karutori. Thank you and over to you sir. 1:38 1 minute, 38 seconds Yeah, thank you Sash. Good morning everyone and thank you for joining us on this investor call for Q3 FI26. 1:46 1 minute, 46 seconds We have uh uploaded the investor presentation on the website of the stock exchanges and uh we do hope that you had a chance to go through it. We would like 1:55 1 minute, 55 seconds to reiterate that diversification remains a key focus for us. Our non- US 2:02 2 minutes, 2 seconds export business has grown from around 37% in 9 months of FI24 to nearly 51% in 2:11 2 minutes, 11 seconds 9 months of FI26, reflecting our continued efforts to expand across geographies and reduce dependence on any one single region. 2:23 2 minutes, 23 seconds At the same time, the US remains an important market for both India and our company. 2:30 2 minutes, 30 seconds While tariffs were increased to 50% in August 2025, Indian shrimp export tariffs have now 2:38 2 minutes, 38 seconds been reduced to 25% effective 7th February 2026. 2:45 2 minutes, 45 seconds This development is expected to support an improvement in the volumes uh going forward. 2:51 2 minutes, 51 seconds Another uh key development is the EU opportunity. uh the proposed India EU 2:58 2 minutes, 58 seconds FDA indicating uh tariff reductions in a structurally positive development is it's a structurally positive development 3:06 3 minutes, 6 seconds for the industry uh as well as the company in specific uh while the benefits will acrue gradually it 3:14 3 minutes, 14 seconds strengthens the medium to long-term growth outlook. 3:19 3 minutes, 19 seconds Now uh coming to the financial performance in Q3 FY26 the net revenue for the quarter grew 15% 3:26 3 minutes, 26 seconds yearonear to uh rupees 264 crores primarily driven by higher shrimp sales 3:33 3 minutes, 33 seconds to the European Union and improved average realizations. 3:38 3 minutes, 38 seconds The improvement in realizations was supported by firm global shrimp prices, a favorable currency exchange rate and also the impact of US tariffs. 3:50 3 minutes, 50 seconds Sales volumes uh declined by 5% yearonear uh to 2754 metric tonses in Q3 3:57 3 minutes, 57 seconds FY26 compared to 2,93 metric tonses in Q3 last year. Sales to the US declined by 12% yearonear. 4:07 4 minutes, 7 seconds However, this was partly offset by a strong 22% year-on-year growth in sales to the European Union. 4:16 4 minutes, 16 seconds Coming to the profitability in Q3 FI26, uh the lower raw material prices at 4:22 4 minutes, 22 seconds rupees 327 per kilo in Q3 FI26 versus 300 rupees 374 per kilo in Q3 of last 4:31 4 minutes, 31 seconds year. uh along with uh other cost and uh control measures uh aided the growth in 4:38 4 minutes, 38 seconds profitability. Overall, AITA increased by 147% yearonear to rupees 17 crores 4:46 4 minutes, 46 seconds and the EITA margin improved by 344 bits yearon year to 6.5% in Q3 of FI26. 4:55 4 minutes, 55 seconds While the previous quarter benefited from low farmgate prices yearon year, they remained flat when compared 5:03 5 minutes, 3 seconds sequentially and witnessing a rising trend in the current quarter. The profit after tax in Q3 FI26 increased to rupees 5:12 5 minutes, 12 seconds 10 crores from approximately rupees 50 lakhs uh in Q3 of FI25. 5:19 5 minutes, 19 seconds Now coming to 9 months FI26 typically a softer quarter like I just 5:28 5 minutes, 28 seconds mentioned uh sorry uh the with regard to the 9 months FI26 uh the net revenue stood at rups 761 5:37 5 minutes, 37 seconds crores up from 23% yearonear sales volume increased by 2% yearonear 5:45 5 minutes, 45 seconds to 8373 metric tons Sales to the European market continued their strong momentum registering a 5:53 5 minutes, 53 seconds growth of 20% yearonear whereas sales to the US declined marginally by 1%. 6:00 6 minutes EITA grew 143% yearonear to rupees 53 crores with EIA margin of 6.9% 6:09 6 minutes, 9 seconds a growth of 336 bits yearon year. The profit after tax stood at rupees 31 crores versus rupees 2 crores in 9 months of FI25. 6:20 6 minutes, 20 seconds Looking ahead uh as we enter Q4 FI26 typically a softer quarter sorry uh like 6:27 6 minutes, 27 seconds I just mentioned uh we are witnessing an uptick in the farm gate or raw material prices. Further uh alongside recent US 6:36 6 minutes, 36 seconds tariff updates realizations may realign in the near term. However, we believe that both the EU, the US and the EU 6:45 6 minutes, 45 seconds trade developments are structurally positive and will support a stronger and more sustainable demand for the Indian 6:52 6 minutes, 52 seconds shrimp industry in general. In conclusion, despite the headwinds over the past few quarters and years, we have 7:00 7 minutes remained focused on strengthening our fundamentals, reinforcing the balance sheet, reducing debt, maintaining 7:08 7 minutes, 8 seconds disciplined cost control, and diversifying our revenue base to enhance resilience. We continue to position 7:15 7 minutes, 15 seconds ourselves to benefit from improving market conditions as they unfold. 7:21 7 minutes, 21 seconds We remain committed to driving sustainable business development and long-term growth. With that, uh we can now open the floor for question and answer session. Uh thank you very much. 7:36 7 minutes, 36 seconds Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press 7:44 7 minutes, 44 seconds star and one on their touchstone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are 7:53 7 minutes, 53 seconds requested to use handset while asking a question. 7:57 7 minutes, 57 seconds Ladies and gentlemen, we will wait for a moment while the question cue assembles. 8:12 8 minutes, 12 seconds The first question comes on the line of Deep Amera with IG India. Please go ahead. 8:24 8 minutes, 24 seconds Hello Mr. Deepak, your line has been unmuted. Hello. Am I audible? Yes sir. 8:32 8 minutes, 32 seconds So uh thank you for the opportunity. uh my caution in on side of the revenue that considering the uh Europe FTA and 8:41 8 minutes, 41 seconds now the tariff has been reduced from the USA. What kind of a revenue are we expecting in uh 2 years and uh how the 8:51 8 minutes, 51 seconds ramp up of our facility will be um will be seen from here and uh on the part of the margin uh what margins uh can we see in near future? 9:03 9 minutes, 3 seconds So uh with regard to uh revenue uh specifically of course we need to uh 9:10 9 minutes, 10 seconds first acknowledge that the recent uh trade agreements and also the reduct both on the EU uh as well as the US 9:19 9 minutes, 19 seconds relaxation and tariffs definitely it'll be boosting the volumes which will uh 9:26 9 minutes, 26 seconds you know uh enhance the company's utilization also of its capacities which is uh you know uh And that obviously 9:34 9 minutes, 34 seconds with increased volumes and with a stable pricing we definitely uh expect uh 9:41 9 minutes, 41 seconds higher uh revenues compared to uh earlier for the past 2 years. Um so over overall uh we do uh expect a higher 9:50 9 minutes, 50 seconds growth in the revenue with regard to you know going into the future especially with these uh uh plus points which are 9:58 9 minutes, 58 seconds there in the market uh because of the relaxation of the duties which are there both in the EU and sorry and the tariffs 10:05 10 minutes, 5 seconds in the US. uh I think that would be uh you know uh with regard to because of the volume enhancement obviously that 10:14 10 minutes, 14 seconds will be enhancing the volume or sorry revenue also over the next uh 2 years. 10:20 10 minutes, 20 seconds So uh specifically it should be you know like around approximately around uh 10:27 10 minutes, 27 seconds 1,200 plus uh rows over the next 2 years and of course as depends as how the 10:34 10 minutes, 34 seconds utilization happens but we are very confident with regard to utilization and growing our volumes and obviously as the 10:41 10 minutes, 41 seconds volumes grow uh the revenue uh also would be picking up margins we expect uh 10:48 10 minutes, 48 seconds a stable pricing uh in the global uh uh export markets. uh we expect a stable pricing depending uh however depending 10:56 10 minutes, 56 seconds on our uh raw material uh farmgate prices in India uh the margins would be 11:03 11 minutes, 3 seconds um you know uh will be uh placed and but however uh at the AIA level we we are um 11:13 11 minutes, 13 seconds pretty much confident that with these changes in the market uh at the beta level the present level uh would be 11:21 11 minutes, 21 seconds sustainable uh going forward. Um so going into the future that is uh our our idea that this as of now. 11:32 11 minutes, 32 seconds Oh okay. Thank thank you. Thank you. 11:39 11 minutes, 39 seconds Thank you. The next question comes from the line of Nathan with incred research. Please go ahead. 11:46 11 minutes, 46 seconds Hello sir. Um two questions. Uh firstly I want to understand when you say EU and the presentation says EU do you include 11:54 11 minutes, 54 seconds UK market in that or do you exclude uh UK from that? 11:58 11 minutes, 58 seconds UK is not included in the EU any in your presentation? 12:02 12 minutes, 2 seconds No. Yeah. It's only the Europe EU block. 12:07 12 minutes, 7 seconds Understood. So that would be part of others if uh it others. Okay. Uh so now that being clarified uh given that both these uh 12:16 12 minutes, 16 seconds markets were one uh previously when there was a lot of blockage for India to export uh to the whole block which 12:23 12 minutes, 23 seconds included UK and now at least there is a bifurcation both are working with their own regulations. Do you see anything happening in a speedier manner in any 12:32 12 minutes, 32 seconds one of them specifically in UK because lesser countries um lesser regulation 12:38 12 minutes, 38 seconds hurdles? Well, well uh see there is no uh relaxation with regard to uh 12:45 12 minutes, 45 seconds regulations as such. Uh even though these free trade agreements are being worked out and they are being finalized or they they are finalized uh 12:54 12 minutes, 54 seconds regulations will continue. However, uh we will be placed on a level playing field with uh comp when compared to our 13:02 13 minutes, 2 seconds competition other Asian or South American competition who uh do not have uh any uh tariffs or sorry any duties. 13:11 13 minutes, 11 seconds uh so obviously currently India we Indian shrimp are levied 4.3% of uh 13:19 13 minutes, 19 seconds tariff around 4.3% of duties uh upon uh for import in both into EU as well as UK 13:27 13 minutes, 27 seconds and uh so obviously those will be uh we are expecting them to be removed first it'll happen in the UK because as you 13:36 13 minutes, 36 seconds are all aware that the UK FDA was signed um much more in advance compared to the EU which was done recently uh last month 13:46 13 minutes, 46 seconds and uh the EU would anyway take time for a few months maybe hopefully in FI before in FIU7 13:53 13 minutes, 53 seconds we should be able to see uh the effect of that uh the UK of course as I stated it'll be uh much earlier 14:02 14 minutes, 2 seconds um but the regulatory part is not really going to change but again uh certain non 14:10 14 minutes, 10 seconds untarist barriers uh to get to the right point may be uh brought down uh for 14:17 14 minutes, 17 seconds example uh they uh you know with regard to 50% mandatory testing of Indian shrimp 14:24 14 minutes, 24 seconds consignments into the UK uh should most likely be uh relaxed uh much earlier to 14:33 14 minutes, 33 seconds answer your question and uh and yes and the EU uh as well would be most likely following suit. Uh but that has we haven't yet received clarity on that. 14:44 14 minutes, 44 seconds But uh definitely uh with regard to the these sort of non-tariff barriers uh yes 14:51 14 minutes, 51 seconds there there could be a relaxation and that will uh definitely uh as I state we mentioned earlier we will be placed on a 14:59 14 minutes, 59 seconds level playing field compared to at the same level as the other competitive nations with whom we are competing with. 15:06 15 minutes, 6 seconds So yeah that is in one way since we would be on a level playing field that is definitely an advantage to our industry as well as the company we could 15:14 15 minutes, 14 seconds focus on growing more volume which we have been losing to others because of these non-tariff barriers also apart 15:21 15 minutes, 21 seconds from tariff barriers understood sir so second question uh given that you now have you are a large hatchery operator across the coast of 15:30 15 minutes, 30 seconds Andhra Pradesh uh how has been the demand how has been workings in January were the hatchery is very busy because that would kind of give a lead 15:39 15 minutes, 39 seconds indication as what the farmers are thinking. Uh because that would be in a way to because the first season uh to 15:46 15 minutes, 46 seconds anticipate the first season from the farmer side would be you having a very busy January February on the hatchy side. 15:53 15 minutes, 53 seconds Oh yes. Uh with regard on to the with regard to the hatchery operations uh we are uh operating of course in the south 16:02 16 minutes, 2 seconds uh currently uh the our major hatchery which is there we are operating there was definitely a lot of uh conservative 16:08 16 minutes, 8 seconds approach uh until uh the end of uh 2025 by the farmers uh because of the various 16:16 16 minutes, 16 seconds disease related issues and overall market uh you know mood being dampened 16:23 16 minutes, 23 seconds because of these tariffs. from USA uh especially but uh however now the temperatures also 16:31 16 minutes, 31 seconds have improved. Uh this is usually stockings happen in January. Uh but this year it is a little bit uh uh kind of 16:40 16 minutes, 40 seconds got late because of uh very cold temperatures in the you know almost uh till the end of January. uh but that uh 16:49 16 minutes, 49 seconds temperatures also improving along with it the good uh news that uh some of these tariff barriers are being removed 16:56 16 minutes, 56 seconds definitely has created a positive uh momentum uh among the uh farmers also. 17:03 17 minutes, 3 seconds So currently yes the stockings are going on and uh definitely like you rightly mentioned the hatchery operations are 17:10 17 minutes, 10 seconds going uh in a in a very um in a good way uh that uh is an encouraging point come 17:18 17 minutes, 18 seconds when it comes to finally it'll come to the when it comes to the supply side like you yeah like you are stating it'll be it'll be it's a positive sign for the 17:27 17 minutes, 27 seconds supply going into the future let us say in another 2 to 3 months when um the crop will start will be harvesting 17:34 17 minutes, 34 seconds sometime around March, April onwards. So it's a yeah we are looking at a positive uh uh impact this time because of these 17:43 17 minutes, 43 seconds uh issues which were prevailing last year especially the US tariffs those being uh squared off and uh removed so 17:52 17 minutes, 52 seconds that definitely that is also creating a positive momentum among the farmers. 17:56 17 minutes, 56 seconds Yes. So but you mentioned uh more operations happening on the southern side of uh Andra where of course you have one hatchery. You had two close to 18:05 18 minutes, 5 seconds Orisa on the northern side of Andra. Uh those two are not operational or are they operational? 18:10 18 minutes, 10 seconds We are we are not operating them. Uh of course the southern side one is the major uh hatchery. We have two units there actually. 18:18 18 minutes, 18 seconds Okay. 18:19 18 minutes, 19 seconds So we are operating them in a in a more of a in an efficient manner. Of course we are also shipping we are sorry we are also shipping from there to other parts 18:26 18 minutes, 26 seconds of the country and not restricting to Andra. So more on an operational point of view since we have two large uh units 18:34 18 minutes, 34 seconds there we are operating up from the south in the south. Understood sir. Thank you. 18:41 18 minutes, 41 seconds Thank you. 18:44 18 minutes, 44 seconds Thank you. The next question comes from the line of UNI with GG Investments Limited. Please go ahead. 18:52 18 minutes, 52 seconds Hello. Am I audible? Oh yes. 18:58 18 minutes, 58 seconds Yeah. First of all, thanks for the opportunity and my question is regarding the realization in sales in terms of 19:04 19 minutes, 4 seconds dollar and INR and in that how much of the tariff has been passed on to the customers. 19:12 19 minutes, 12 seconds With regard to the realization um in rupees it was uh for the quarter it is 19:20 19 minutes, 20 seconds 914 rupees. However, uh we also need to acknowledge the fact that this is the average realization. However, we need to 19:28 19 minutes, 28 seconds acknowledge the fact that this also comprises of the tariffs payable to the US uh government. That's why it is uh 19:35 19 minutes, 35 seconds high. But on an average uh 9 months it was 864 rupees as far as realized per 19:42 19 minutes, 42 seconds kilo uh compared to 711 rupees of last year 9 month FI25. So uh but this is 19:50 19 minutes, 50 seconds inclusive of the tariffs and uh with regard to tariffs uh um from the US uh 19:58 19 minutes, 58 seconds charged by the US. Uh most of it uh of course u uh most of it has been uh taken 20:05 20 minutes, 5 seconds care by the customers uh because these were brought in by the US uh government. 20:12 20 minutes, 12 seconds uh so this is more of a policy from that government and they have been uh taken care by the customers but that did 20:20 20 minutes, 20 seconds create create a dent in their uh volume uh uh plans from us that's why uh our 20:27 20 minutes, 27 seconds volumes to the US also have dropped uh until until the last quarter so that we expect again to be stabilizing so yeah 20:37 20 minutes, 37 seconds 914 rupees sir okay uh one more Question uh in case of other expense how much is the tariff and 20:45 20 minutes, 45 seconds how much is the percentage amount 20:52 20 minutes, 52 seconds see the tariffs was 50% of uh the FOB value 20:57 20 minutes, 57 seconds um so that uh translated to uh prof 21:09 21 minutes, 9 seconds 46 possible that was 46 crores with regard to the tariff component alone. 21:16 21 minutes, 16 seconds Okay. This quarter. 21:19 21 minutes, 19 seconds Yeah. Only this. Yeah. So you want the 9 months? Uh 9 months. Only this quarter. Only this quarter. Only this quarter. Only this quarter. 21:27 21 minutes, 27 seconds 44. Yeah. Okay. Sorry. It was 46 crores. 21:35 21 minutes, 35 seconds Okay. For Q3. Okay. Uh one more question. 21:40 21 minutes, 40 seconds Um so uh in this quarter what is the average farm gate price and what is the current outlook of the sale? 21:49 21 minutes, 49 seconds No average uh purchase price for the company was 327 rupees which was uh I 21:58 21 minutes, 58 seconds think stated in the opening remarks uh it was 327 rupees for the company based on the sizes uh which it has purchased during the quarter Q3. 22:08 22 minutes, 8 seconds Yeah. And sorry your what was your other question like the current current situation of 22:15 22 minutes, 15 seconds the farm gate is there any increase? Uh there has been an increase of course uh I think which was also stated in our in 22:24 22 minutes, 24 seconds our opening remarks. The farm gate prices have increased. They have been increasing uh uh even in fact during Q3 itself they have marginally been 22:31 22 minutes, 31 seconds increasing and currently they are uh little higher. They have increased by almost uh 30 40 rupees. 22:38 22 minutes, 38 seconds uh roughly per kilo u but again this is more driven by the supply demand supply scenario 22:46 22 minutes, 46 seconds presently so usual every year it'll be around this time it'll be like that around Jan February that's what yeah 22:53 22 minutes, 53 seconds okay one more last question uh like after the EU FDA is there any new orders coming for the ready to eat products 23:02 23 minutes, 2 seconds we have been getting the ready to eat orders even before the UFDA and we believe we will be continuing to grow 23:11 23 minutes, 11 seconds them going forward with the FDA uh in place. 23:17 23 minutes, 17 seconds So is there an expectation in the volumes in future? 23:21 23 minutes, 21 seconds Yeah, that's yes correct. That's what we have stated. That's what we just said. 23:25 23 minutes, 25 seconds We already have ready to eat orders even from the EU but now uh that is going growing in a small in a slow manner. But 23:33 23 minutes, 33 seconds now with the FDA when the FDA takes effect uh and uh we get the reduced uh rates applicable from EU we are 23:42 23 minutes, 42 seconds confident that our customers are going to place more more orders with regard to the ready to eat from the EU customers. 23:49 23 minutes, 49 seconds So is there any volume guidance that you can provide for the future 527? 23:56 23 minutes, 56 seconds Uh no at this time we will let us wait. 24:00 24 minutes uh we will provide you of course more as we do more ready to eat for the EU market we will be informing you but like we also stated uh to the one of the 24:08 24 minutes, 8 seconds earlier participants the effectiveness of the EU trade agreement uh FTA hasn't yet been uh done it will take its time 24:16 24 minutes, 16 seconds most likely sometime in the FI27 we don't know which quarter of FI27 but we are very confident that once that is 24:24 24 minutes, 24 seconds done uh we will be having an uptick in the uh orders with regard to ready to eat also. So, but for now we are uh 24:33 24 minutes, 33 seconds focused on increasing the uh ready to eat products irrelevant and irrespective of the FDA uh since we have got the 24:43 24 minutes, 43 seconds approval for the ready to eat in the beginning of this financial year. I mean sorry during the Q1 Q end of Q1. So we 24:50 24 minutes, 50 seconds are uh using that uh um you know opportunity and we are focusing on growing the ready to eat volume. So 24:58 24 minutes, 58 seconds we'll provide you better uh uh idea hopefully by the end of the fiscal year as we grow our orders. 25:08 25 minutes, 8 seconds Okay. Okay. Thank you. Thank you so much. Thank you. 25:13 25 minutes, 13 seconds Thank you. The next question comes from the line of Ha with Seven Rivers Holding. Please go ahead. 25:23 25 minutes, 23 seconds Uh yeah. Uh uh good afternoon sir. Uh so my question was that uh I mean uh we operate at cost quite uh low capacity at 25:32 25 minutes, 32 seconds almost 32 33%. Now with uh tariff related uncertainties uh reduced significantly and we are obviously 25:40 25 minutes, 40 seconds guiding uh much better growth going ahead. So how should we look at margins? 25:46 25 minutes, 46 seconds I mean I'm not holding on to any number but say if we reach to a decent capacity utilization say something like 65 70%. 25:55 25 minutes, 55 seconds Then what kind of I mean it may happen 2 3 years down the line then but what kind of margins are are we looking at I mean how is a business designed uh what kind 26:04 26 minutes, 4 seconds of margins can it achieve at optimal capacity utilization assuming that the current raw material and ship prices prevail. 26:15 26 minutes, 15 seconds Well, we have stated earlier also that uh we would be maintaining the present uh sustainable AIA levels, we'll be 26:23 26 minutes, 23 seconds maintain we'll be able to sustain the present eva levels which is 7 uh% and 26:30 26 minutes, 30 seconds odd. Uh and of course as volumes pick up uh going into next year and the year after we should look at higher uh uh 26:39 26 minutes, 39 seconds margin levels also as uh we would definitely have uh the advantage of uh 26:45 26 minutes, 45 seconds the scale of operation and uh also the costs uh being rationalized overall. So 26:54 26 minutes, 54 seconds yeah so that in that regard uh as stated it'll be uh between 7 10% uh currently 27:02 27 minutes, 2 seconds and as we grow more of our ready to eat uh we should look at 10% plus also but currently we would state we would be 27:11 27 minutes, 11 seconds able to sustain these levels and not uh looking uh anything lower or looking back of what happened in the past two 27:20 27 minutes, 20 seconds years earlier two years. Yeah. Okay. And and US had reduced tariff from 50 to 18%. Uh so is there a specific different 27:29 27 minutes, 29 seconds tariff for uh for shrimps and aqua product at 25%. No see the US has reduced from 50 to 25. 27:38 27 minutes, 38 seconds They removed the penal tariff of 25%. 27:42 27 minutes, 42 seconds No, they have removed the penal rate of 25% for the uh Russian oil component and 27:52 27 minutes, 52 seconds as far as reducing from 25% to 18% it hasn't yet taken effect which is what we 27:59 27 minutes, 59 seconds stated as of February 7th 2026 it has red the 25% has been reduced thereby the 28:06 28 minutes, 6 seconds net tariff impact on the company uh or the industry is uh 25%. That's what we 28:13 28 minutes, 13 seconds stated. Once they would affect the reduced rate of 18%, we would obviously 28:20 28 minutes, 20 seconds uh you know that will take effect and we will make uh the changes accordingly. We will be paying lesser but apart from 28:28 28 minutes, 28 seconds that uh you all know that already the anti-dumping duty and counterveailing duty are there separately that is always there. So that's always that's been 28:36 28 minutes, 36 seconds there already without the tariffs. So but currently we are paying tariff of 25%. That's what uh we we can say as of now. 28:44 28 minutes, 44 seconds Understood. And sir, how how is the supply from Ecuador, Vietnam and uh with 25% tariff on us now? How how do we compete with them in terms of prices? 28:56 28 minutes, 56 seconds Well, uh the supply from Ecuador is definitely of course they are the number one uh producing nation um in the world 29:05 29 minutes, 5 seconds obviously and uh they they have been u very strong and they are also of course 29:13 29 minutes, 13 seconds that is continuing um even making uh their uh you know uh presence felt in 29:20 29 minutes, 20 seconds the US market also that will be there we don't expect it to be getting any slow or but we are not sure at this point 29:29 29 minutes, 29 seconds whether they will they will ramp up any further as uh we understand uh there have been issues with regard to them 29:38 29 minutes, 38 seconds finding market space for their production beyond certain point uh as far as Vietnam is concerned uh their 29:47 29 minutes, 47 seconds their production has been stable but we haven't heard any major uh uptick in their uh supply side Um so we are uh we 29:56 29 minutes, 56 seconds need to watch how it will leave in uh 2026 uh scenario. Currently as you know uh 30:04 30 minutes, 4 seconds everybody will be going for uh stocking uh in the Asian markets. Everybody will be going for stocking after coming out 30:11 30 minutes, 11 seconds of the winter uh climate. So we should look we should see how it'll be in the current uh uh year. But Ecuador is yeah 30:20 30 minutes, 20 seconds it's maintaining its uh supply of 1.4 4 1.5 million metric tons I think roughly 30:30 30 minutes, 30 seconds okay and and yeah in terms of pricing I mean how how do we compare with Vietnam and Ecuador on FOB basis 30:40 30 minutes, 40 seconds uh obviously FOB basis they would be having a with regard to Ecuador their 30:46 30 minutes, 46 seconds FOB pricing uh of course is on a uh higher side they could get some advantage in the past few months 30:55 30 minutes, 55 seconds uh last 6 months we we can say for the uh almost 5 to 6 months during the time we paid that 25% additional they were 31:04 31 minutes, 4 seconds definitely getting some advantage um but that whether it'll continue uh going forward or not uh we're not sure uh now 31:14 31 minutes, 14 seconds uh as far as Vietnam is concerned they have some other issues which we don't have a final confirmation that they are 31:21 31 minutes, 21 seconds likely to be getting a higher uh anti-dumping duty rate uh which we do not have the information yet as of now. 31:31 31 minutes, 31 seconds Okay. And so it's been a week I mean 7th of February is what you have mentioned in the PPT that tariff has come down from 50 to 25%. I know it's still early 31:41 31 minutes, 41 seconds days but it's been like 8 to 10 days but have you have you seen any significant increase in order inquiries from from US market specifically? 31:50 31 minutes, 50 seconds Yes. Yes. Okay. Okay. Okay. That's quite good. Great. Thank you. Thank you so much. 31:57 31 minutes, 57 seconds Thank you. 32:02 32 minutes, 2 seconds The next question comes from the line of Sedat with I thought PMS. Please go ahead. 32:09 32 minutes, 9 seconds Um my question is like uh on a 9 month uh basis 32:15 32 minutes, 15 seconds the top the revenue is uh up by almost let's say 20%age right. 32:22 32 minutes, 22 seconds and uh 23%age right but uh out of this uh increase the volume is just up 2%age so how much of 32:32 32 minutes, 32 seconds this is sheerly driven by the tariff component tariff and like forex component 32:46 32 minutes, 46 seconds US 9 months USA looks at I think you you already 33:10 33 minutes, 10 seconds see on the uh t see for the 9 months uh if we see almost uh 33:22 33 minutes, 22 seconds we have uh the US has been around 49%. 33:27 33 minutes, 27 seconds uh so of course whether whether it is 10% extra tariff or 25% 33:34 33 minutes, 34 seconds uh tariff or subsequently it was 50% now which is again coming down uh 33:41 33 minutes, 41 seconds roughly 49% of the sales was meant for uh US which was also stated in our uh presentation 33:49 33 minutes, 49 seconds now with regard to the exchange rate as far as uh the exchange rate is concerned 33:58 33 minutes, 58 seconds average uh difference between the exchange rate of 34:07 34 minutes, 7 seconds the 390 cr 390 crores sir. Yes sir. 34:16 34 minutes, 16 seconds No, that is 390 crores. But because of tariffs that has grown in in regard to the realization of um US sales but then 34:26 34 minutes, 26 seconds at the same time the even the pricing were also remaining stable in general between Q1 and Q2 in the 9 months period 34:35 34 minutes, 35 seconds Q1 and Q2 the uh unit value at FOB level also was higher 34:41 34 minutes, 41 seconds especially so mainly the only the US sales uh was affected because of the 34:49 34 minutes, 49 seconds tariffs. Uh but not the other markets didn't get affected because of the tariffs component. It is the overall 34:56 34 minutes, 56 seconds market pricing itself remained stable and apart from that the uh exchange rate foreign exchange. 35:15 35 minutes, 15 seconds Does that answer your question? 35:18 35 minutes, 18 seconds 3 crores 60 lakhs. No no 9 months slow just 11 cr 50. 35:27 35 minutes, 27 seconds In the 9 months there was 11 cr uh uh increase mainly because on the on the 35:35 35 minutes, 35 seconds account of foreign exchange uh difference. Yes. Okay. 35:41 35 minutes, 41 seconds Hello. Yeah. So on the 9 months it is 11 crores only on the exch with regard to the exchange fund the depre because the depreciating uh rupee. 35:52 35 minutes, 52 seconds Okay. 35:54 35 minutes, 54 seconds So like another like related to this like say other expenses for 9 months 36:00 36 minutes right it is up by almost 75%age like uh is that because of the tariffs majorly? 36:11 36 minutes, 11 seconds Yes. Yes. In the 9 months uh the tariff component alone whether it is 10% 25% or 50%. All put together only the tariff 36:19 36 minutes, 19 seconds component 86 crit. 36:26 36 minutes, 26 seconds Yeah. So 86 crores was the total tariff component in the 9 months whatever rate 36:32 36 minutes, 32 seconds it is 10% part of the sales 25% some sales and also 50%. 36:38 36 minutes, 38 seconds So at the same time for 9 months of last year that 86 crores will be almost zero right? 36:46 36 minutes, 46 seconds Yeah it was not there right last year 9 months I was not there. 36:50 36 minutes, 50 seconds Okay s one more question I have is like now that the tariff is reduced do you 36:58 36 minutes, 58 seconds like what do you think will be the realization going forward in the US? 37:04 37 minutes, 4 seconds Well, the realization of course when the in the case of US it will get corrected because of the same way at the same time 37:12 37 minutes, 12 seconds the tariff expenditure also would not be there. Uh so that uh you by now it is 37:18 37 minutes, 18 seconds very we should understand here that whatever increase in the case of realization was there it was also offset 37:25 37 minutes, 25 seconds with regard to the tariff payable in the expenditure side like you rightly asked in the other expenses 37:32 37 minutes, 32 seconds component even tariff was there so that now I think from this quarter with the tariffs being at 25% obviously the 37:41 37 minutes, 41 seconds realization for the US sales to that extent uh 25% % on FOB it'll be getting uh reduced uh compared to you know uh 37:51 37 minutes, 51 seconds earlier uh period earlier 9 months sorry earlier uh 3 four four I think it was around four uh four five months between 37:59 37 minutes, 59 seconds August August to uh dece August to January almost 6 months sorry almost 6 38:05 38 minutes, 5 seconds months it was uh the 50% effective rate was there 38:12 38 minutes, 12 seconds okay so like how what would be the price difference between India and Ecuador for your products categories in the US right now with a 25% tariff. 38:23 38 minutes, 23 seconds You see the customers um with regard to the currently the European Ecuador and 38:32 38 minutes, 32 seconds Indian pricing both are uh would be uh obviously uh there are so the customers 38:38 38 minutes, 38 seconds are willing to pay and at least buy from India with in the reduced tariff uh uh 38:45 38 minutes, 45 seconds regime uh because earlier it was 15% and 50%. But uh yes, Ecuador pricing was much higher which we stated earlier also 38:55 38 minutes, 55 seconds they were able to get some advantage uh not some they were able to get some good advantage good advantage because of the 39:02 39 minutes, 2 seconds tariffs on India until recently uh they were able to get higher pricing uh for the demand which was there uh which 39:10 39 minutes, 10 seconds could not be uh taken up from India because of these high tariffs. Now the tariffs being reduced from 50 to 25% uh 39:19 39 minutes, 19 seconds definitely there is certain um you know u positivity among the customers also who would want to go back 39:27 39 minutes, 27 seconds to India and uh place the orders. So currently yes uh Ecuador will uh likely 39:35 39 minutes, 35 seconds be uh trying to charge higher but at the same time India uh which is a very consistent and reliable with regard to 39:44 39 minutes, 44 seconds deliveries. the customers are looking towards buying from India in a uh you know back looking back at India rather 39:52 39 minutes, 52 seconds than go you know having uh to deal with any lesser dependable sources whichever 39:58 39 minutes, 58 seconds they are any part of the world not not specific to Ecuador sir thank you and all the better 40:06 40 minutes, 6 seconds thank you thank you the next question comes from the line of Sukur Dartil with Eyesight 40:15 40 minutes, 15 seconds fin trade private limited please go ahead. 40:18 40 minutes, 18 seconds Good afternoon to the team. Uh I have two questions. My first question is uh you know beyond the guidance which you 40:24 40 minutes, 24 seconds have given. Uh I just want to understand uh your view on the growth outlook. Uh 40:32 40 minutes, 32 seconds how will Apex Foods manage risk and uncertainty in its core business particularly revolving around uh global 40:40 40 minutes, 40 seconds shrimp demand, export market volatility and raw materials cost? What strategic choices will help the company stay 40:48 40 minutes, 48 seconds strong uh you know even if there are some external pressures on it? Thank you. That's my first question. I'll ask my second question after this. 40:55 40 minutes, 55 seconds Uh with regard to you know export markets obviously diversification is the key which we are which have been which 41:02 41 minutes, 2 seconds we have been doing uh and we we will continue to put in our efforts so that we are not we are insulated from any one 41:10 41 minutes, 10 seconds individual uh market uh effect like we had in the beginning of this since we have we have had it since the beginning of this year because of this tariffs and 41:19 41 minutes, 19 seconds other that's one of the reason why we have been pushing more volume to other markets uh than ever before. Obviously 41:27 41 minutes, 27 seconds when we have our uh you know uh our stakes placed in different markets 41:34 41 minutes, 34 seconds obviously we would be insulating ourselves from any major uh hits or any major issues like this. uh with regard 41:43 41 minutes, 43 seconds to the raw material obvious as uh stated definitely in a stable uh shrimp market 41:50 41 minutes, 50 seconds uh environment now uh one of the for example recently with the guidance being given by the nutritionists even by the 41:59 41 minutes, 59 seconds US FDA example specifically with regard to seafood and shrimp there is always uh 42:05 42 minutes, 5 seconds there's we expect uh better demand to be growing overall because of the average consumption 42:12 42 minutes, 12 seconds per capita consumption also growing over the next you know into the future uh because of these guidances being given u 42:21 42 minutes, 21 seconds against rather promoting more white meat like seafood um you know uh so that 42:27 42 minutes, 27 seconds obviously will have its uh relative impact at the uh sourcing side with regard to production at the farm level 42:36 42 minutes, 36 seconds because uh uh steady demand also enables for a stable production at the farm 42:44 42 minutes, 44 seconds level. So that that way I think that that company will by diversifying itself to different markets will insulate 42:53 42 minutes, 53 seconds itself from any one specific issue. the that's one of the that's we have proven by growing our volume into other markets 43:00 43 minutes uh also this year especially um and uh so that I think that that 43:08 43 minutes, 8 seconds answers with regard to the company as well as on the supply side as uh we stated just now uh the demand being 43:14 43 minutes, 14 seconds stable and it also picking up uh with by increase in consumption overall in different markets uh that will also 43:22 43 minutes, 22 seconds create a positive environment for for a stable production uh at the uh farm level, farming level, sorry. Uh and of 43:31 43 minutes, 31 seconds course for us, we will continue to grow our network uh and relationships with our farmers uh even more by supporting 43:39 43 minutes, 39 seconds them at the uh primary uh production area whether by whether it is the seed 43:46 43 minutes, 46 seconds uh by from our hatcheries or in other in other ways that can uh en enable us to have a a stable supply. say uh also for 43:56 43 minutes, 56 seconds our for our company. Yeah, I think thank you Vic. My second question to Mr. 44:02 44 minutes, 2 seconds Prasad is uh beyond the uh margin commentary uh how will Apex manage financial risk and uncertainty in areas 44:10 44 minutes, 10 seconds like receivables working capital and forex uh and forex what uh set of rules 44:18 44 minutes, 18 seconds will ensure earnings quality uh stay even even in certain volatile conditions. I just want to understand your point of view and plan action on this. Thank you. 44:30 44 minutes, 30 seconds The work with regard to receivables actually we don't have any uh uh we don't have any issues as such. We of 44:38 44 minutes, 38 seconds course have been uh more prompt in uh ensuring that our receivables are received in a timely manner both within 44:47 44 minutes, 47 seconds the country as well as from the customers outside. Uh the current uh 44:55 44 minutes, 55 seconds uh one minute uh the current uh if you see our both our inventory days as well 45:01 45 minutes, 1 second as uh our data days are also maintaining low uh overall of course our uh total 45:09 45 minutes, 9 seconds working capital days is currently at 108 uh as of September. Uh but of course that is even uh coming down even further 45:18 45 minutes, 18 seconds uh because uh both our data days as well as our uh inventory days are also coming down. Uh and with regard to forex risk 45:27 45 minutes, 27 seconds of course we do uh cover our risks by way of forward contracts which are supporting our uh realizations uh to the 45:36 45 minutes, 36 seconds extent required. So but uh in a depreciating uh rupee environment uh 45:43 45 minutes, 43 seconds definitely uh the market is also very supportive for our realizations as stated earlier. So that that way uh we 45:51 45 minutes, 51 seconds are able to manage uh these risks um in with with uh you know by in in an efficient manner. 46:12 46 minutes, 12 seconds Thank you and best wishes. Yeah. Thank you. 46:18 46 minutes, 18 seconds Thank you. The next question comes from the line of Yoganch with Metal Analytics. Please go ahead. 46:25 46 minutes, 25 seconds Hi, thanks for the opportunity sir. Uh most of the questions have been answered. Just one uh question I had. Uh so last con you had mentioned about our 46:34 46 minutes, 34 seconds efforts in developing newer markets like uh Russia and Australia. If you could just uh broadly talk about our efforts over there and how those are yielding 46:42 46 minutes, 42 seconds any benefits or what is the kind of u volume that you're expecting from a market like Australia and Russia and any other uh key markets that we are seeing coming up for us. 46:53 46 minutes, 53 seconds We are uh we are continuing to pursue those and uh I think by by the end of 47:00 47 minutes this financial year uh we will be able to uh start our sales there if not or at 47:07 47 minutes, 7 seconds least early April. Uh we are continuing our discussions uh in that regard. There are certain regulatory 47:15 47 minutes, 15 seconds um restrictions with regard to Australia which we are discussing with our customers and uh we are working in 47:23 47 minutes, 23 seconds mitigating them by ensuring that we are meeting those uh standards their expectations at the um you know at the 47:30 47 minutes, 30 seconds border with regard to their health authorities and with their testing. So we are confident that both those two markets which you have specifically 47:39 47 minutes, 39 seconds mentioned uh we will be able to uh start volume even in a smaller manner uh starting from most likely if not by Q4 47:47 47 minutes, 47 seconds uh by Q1 that is next fiscal uh FI 27 Q1 onwards we should be able to start our sales uh in a slow manner but as we 47:56 47 minutes, 56 seconds because this is the first time market also the customers also have to test the product uh as uh they we see 48:04 48 minutes, 4 seconds huge good potential to be precise in both those markets we see a good potential and uh definitely that will be 48:11 48 minutes, 11 seconds an added uh uh boost for the company in FI27 especially with these two markets apart 48:19 48 minutes, 19 seconds from there are few more markets which we don't want to state it at this time but uh we are confident that this will help 48:25 48 minutes, 25 seconds us um going into the future especially next year in the next one quarter onwards Right sir. Uh sir one more question. 48:36 48 minutes, 36 seconds Sorry if it has been already answered. I got dropped in between so I might have missed it. Uh any uh numbers that you 48:43 48 minutes, 43 seconds can share on the capacity utilization scale up that you're expecting for FI27. 48:49 48 minutes, 49 seconds Well uh we we are current of course we are like earlier somebody has stated it's current this year uh for the full 48:56 48 minutes, 56 seconds year it is around 33 35% but we expect to push it up to uh by another 10 15% and try to take it up to at least 50% by 49:05 49 minutes, 5 seconds FY27. So we will see uh how we how that goes but currently we are planning for that uh as of now uh as far as the 49:14 49 minutes, 14 seconds utilization is concerned capacity utilization is concerned. 49:18 49 minutes, 18 seconds Got it. And so still this major uh scale up would be from our uh normal capacity and uh the ready to eat and ready to 49:25 49 minutes, 25 seconds cook which is for the European market that will follow up in the later half of the FI27 right no that will it is part of that when I 49:35 49 minutes, 35 seconds when we mentioned uh yeah yeah it is part of that sir that's it from my side thank you and 49:42 49 minutes, 42 seconds all the very best to you and your team thank you we have a follow-up question 49:50 49 minutes, 50 seconds it's from the line of Sedad with I thought PMS please go ahead hi sir so I just had one question like 49:58 49 minutes, 58 seconds for the this quarter and for 9 months what would be the capacity utilization of the ready to eat 50:08 50 minutes, 8 seconds in comparison to the last year last year okay uh as far as the current 50:15 50 minutes, 15 seconds quarters uh ready to eat sales was there as far as sales is concerned uh there has been a drop by 1% uh because of of 50:23 50 minutes, 23 seconds course the US sales uh not coming into play uh and the Europe still picking up uh that was at around 7%. Uh last year's 50:33 50 minutes, 33 seconds uh Q3 FI25 we did around we did around 8%. and on a full but however of course 50:40 50 minutes, 40 seconds during the first two months uh we did some good uh quantity uh for sorry first cube uh two quarters so on a 9-month 50:48 50 minutes, 48 seconds basis uh last year uh it was 10% uh for 9 months and this year it was 11% it increased marginally by 1%. That's what 50:57 50 minutes, 57 seconds on ready to eat especially what would be the utilization be utilization would pretty that is what uh 51:06 51 minutes, 6 seconds as on the ready to eat especially we have uh oh that's on the total sales sorry with regard to the utilization uh 51:13 51 minutes, 13 seconds that would be uh currently around uh one minute 51:29 51 minutes, 29 seconds It's around uh that is around uh currently 52:04 52 minutes, 4 seconds Yeah, sorry that was uh currently it is around 11%. 52:10 52 minutes, 10 seconds on the with on the yeah currently it is around 11% of ready to meet and there's 52:16 52 minutes, 16 seconds a good headroom for us to grow uh a lot on that only on the ready to eat 52:22 52 minutes, 22 seconds capacity uh what we have utilized as of this year it's only around 11%. 52:30 52 minutes, 30 seconds So what was the same last 9 month? Last year 10% 10% 10%. It was lower last year. 52:39 52 minutes, 39 seconds Okay. Thank you. Yeah. 52:45 52 minutes, 45 seconds Thank you. The next question comes from the line of Mr. an individual investor. Please go ahead. 52:55 52 minutes, 55 seconds Good afternoon sir. Thanks for providing this opportunity. 52:59 52 minutes, 59 seconds Uh so from the recent news that I've been uh uh listening to like the most of the farmers are shifting to black tiger 53:06 53 minutes, 6 seconds because of this global uncertainty. Did you see any outage in the supply going forward? 53:13 53 minutes, 13 seconds No but no both I mean there are of course farmers who are switching to black tiger in some areas but vaname is 53:21 53 minutes, 21 seconds still there. uh apart from those disease issues uh it's good that there are an alternative uh species as such black 53:29 53 minutes, 29 seconds tiger also so we did not uh see a major issue with uh regard to vaname 53:36 53 minutes, 36 seconds production dropping down significantly because parallelly vaname this is especially in the state of pradesh lot of quite a number of farmers we 53:44 53 minutes, 44 seconds shouldn't say lot uh there are farmers in certain areas who have been switching over to black tiger but parallelly there has been vaname growth in other states. 53:54 53 minutes, 54 seconds Okay. 53:55 53 minutes, 55 seconds Yeah, that has also been happening parallelly. And now vaname or shrimp farming is not restricted to the coastal states any longer. 54:04 54 minutes, 4 seconds This has gone more inlands all inland also. Aquaculture is being done more in inland also. Some of the northwestern 54:11 54 minutes, 11 seconds states also have have been increasing uh especially into Hariana and Rajasthan. 54:16 54 minutes, 16 seconds But again uh in Orisa, Bengal and Gujarat also the vaname has been there. 54:22 54 minutes, 22 seconds It has also been increasing. So overall uh definitely black tiger has increased 54:29 54 minutes, 29 seconds in the state of Andhra Pradesh compared to earlier years because of uh uh you know certaintity increasing for certain farmers or the based on their strategy. 54:40 54 minutes, 40 seconds uh but however uh vaname hasn't seen a significant uh drop with regard to the supply as such it is because as I stated 54:48 54 minutes, 48 seconds in other states also vaname has been uh growing overall so that way uh black tiger did not black tiger crop as or uh 54:57 54 minutes, 57 seconds supply did not really uh reduce the vaname supply if that is what you are trying to find out okay my second question is regarding uh 55:06 55 minutes, 6 seconds this anti-dumping duty I think US government is reviewing the anti-dumping duty and they're coming up with a retrospective effect. 55:13 55 minutes, 13 seconds So did you see any uh such big hit in the P&L in Q4 Q sorry 55:19 55 minutes, 19 seconds 2324 I think some review has been conducted by US uh department FDA and they ant with the factor effects I think 55:28 55 minutes, 28 seconds there is an increase in the pricing like earlier it is 1.35%. 55:32 55 minutes, 32 seconds Now they have been uh revised to like 3.86 or like 3.6% six, right? Okay. Yes. 55:38 55 minutes, 38 seconds In fact, in the upcoming quarter, we we should be seeing we we will be knowing about that more. Yes. In the Q4 55:46 55 minutes, 46 seconds once uh because they have made that effective uh I think uh this week onwards they announced it last middle of 55:54 55 minutes, 54 seconds last week. They will be they made it effective this week. So that will be there for a prospective uh payments. Yes. Means uh there will be 56:03 56 minutes, 3 seconds a marginal increase on the anti-dumping duty from um uh not marginal sorry from 1.35 to 3.5 like you rightly stated that 56:11 56 minutes, 11 seconds will be there uh that will be uh effective from this mostly in this week onwards. Yes. So going forward it'll be 56:19 56 minutes, 19 seconds effective that's what you were asking. Yeah. 56:26 56 minutes, 26 seconds My last question is on the debt side. I think uh when I was observing the uh balance sheet there is a significant uh decrease in the uh short-term borrowing 56:36 56 minutes, 36 seconds from almost like 140 crores to 40 crores but there is no impact on the receivable days or turnover days like uh what made 56:43 56 minutes, 43 seconds uh such a significant uh downsizing of the debt? No sorry there is receivables 56:50 56 minutes, 50 seconds of course have also been prompt but at the same time our receivables mainly from government uh departments including 56:58 56 minutes, 58 seconds GST input uh all those credit those also have been typically receivables which are there our datars are only pertaining 57:06 57 minutes, 6 seconds to our receivables right our uh whereas receivables from the government are also there so obviously 57:15 57 minutes, 15 seconds they are uh have been more prompt in this year especially over the past two to three quarters. We have been pursuing 57:23 57 minutes, 23 seconds them and we have been receiving them much earlier. That is how uh it is. But at the same time uh there are we have 57:30 57 minutes, 30 seconds also increased certain customers who are who also pay in much earlier uh period. 57:36 57 minutes, 36 seconds So based on the terms which we are negotiating with them though that is the new set of business which has been brought in this year in FI26. 57:44 57 minutes, 44 seconds So that uh both together from the government side as well as certain new customers also are prompting for uh improvement and as along with it 57:53 57 minutes, 53 seconds utilization of inventories also uh you know makes it possible for us to you know that is obviously liquidation of 58:01 58 minutes, 1 second stocks enhances in uh you know the capital in hand. Uh so definitely that is another key point which is there. So 58:10 58 minutes, 10 seconds within these three parameters we have been uh reducing uh our overall debt for borrowing short-term borrowing from the banks. Yeah. 58:20 58 minutes, 20 seconds Okay. Okay. 58:28 58 minutes, 28 seconds Thank you. The next question comes from the line of hersa with seven rivers holding. Please go ahead. 58:37 58 minutes, 37 seconds Uh hi sir thanks for the followup. 58:39 58 minutes, 39 seconds to a book on bookkeeping side. What was the expert inside for 9 months? 58:47 58 minutes, 47 seconds Three uh night and then 58:54 58 minutes, 54 seconds 37.62 crores. 58:58 58 minutes, 58 seconds 37 37 Yeah. Okay. Okay. Got it. Sure. Thanks. 59:08 59 minutes, 8 seconds Thank you. The next question comes from the line of Anthony Joy, an individual investor. Please go ahead. 59:24 59 minutes, 24 seconds Can you hear me? Yes, please. 59:33 59 minutes, 33 seconds Uh, Anthony, can you please use your handset please? 59:44 59 minutes, 44 seconds Hello sir, can you hear me right now? Yes. Yes. 59:48 59 minutes, 48 seconds Okay. Uh, sir, uh, in the last call you were saying that the inventory level in US has come down. uh is the inventory 59:56 59 minutes, 56 seconds level uh in the US is still low at this moment. 1:00:01 1 hour, 1 second No sorry see the inventory level in the US at that time was lower because of all these factors where uh certain imports 1:00:10 1 hour, 10 seconds also got delayed uh shipments got delayed because of these tariffs confusion and all that that was uh that 1:00:18 1 hour, 18 seconds but uh we but in the case of Q3 uh we need also need to factor in the holiday 1:00:27 1 hour, 27 seconds sales also play a major role and how uh you know the sales happen in in that 1:00:36 1 hour, 36 seconds market post tariff uh regime is a very important part. We need to see whether the 1:00:45 1 hour, 45 seconds consumption is at the same rate at that high pricing u you know at the uh at the retail level or at the restaurant level 1:00:53 1 hour, 53 seconds that also will have an impact we need to see how that would be. uh but as of now we don't uh see uh any shortage of 1:01:02 1 hour, 1 minute, 2 seconds inventories uh at the uh on the US side but of course wherever any the requirements 1:01:09 1 hour, 1 minute, 9 seconds overall from India uh have uh been increasing slowly inquiries have been picking up like we stated to another 1:01:16 1 hour, 1 minute, 16 seconds participant earlier post uh tariff reduction um but uh 1:01:23 1 hour, 1 minute, 23 seconds as uh with regard to the inventories it is more dependent on how the Holiday sales have happened especially during uh Christmas and New Year and this month we 1:01:32 1 hour, 1 minute, 32 seconds should see how it'll be. This is the lent season typically where uh a lot of consumers move towards white meat and avoid red meat altogether. Uh it's 1:01:41 1 hour, 1 minute, 41 seconds especially in the US and Europe. So we need to see how that would be uh affecting the overall indries. Uh so we 1:01:49 1 hour, 1 minute, 49 seconds we are not having a clear picture of that at this as of at this point. to answer your question. 1:01:56 1 hour, 1 minute, 56 seconds Right sir, another question is how about the fright charges? Have they come down after the uh tariffs? 1:02:04 1 hour, 2 minutes, 4 seconds No, there was no change see price the freight rates have freight charges have been lower uh this whole year. There 1:02:11 1 hour, 2 minutes, 11 seconds have been no increases in uh freight rates. Uh in fact they have been yes they have been coming down in phases. Uh 1:02:19 1 hour, 2 minutes, 19 seconds but they are pretty much at among the lowest levels. I mean pretty much at the lowest levels when we compare it to COVID time or during the pandemic time 1:02:28 1 hour, 2 minutes, 28 seconds this is very very low and yeah very at a reasonable level to be precise as far as the freight exp freight rates are 1:02:36 1 hour, 2 minutes, 36 seconds concerned right sir thank you thank you so much thank you thank you ladies and gentlemen that was 1:02:45 1 hour, 2 minutes, 45 seconds the last question for today I now hand the conference over to Mr. Chri for closing comments. 1:02:51 1 hour, 2 minutes, 51 seconds Thank you one and all for uh making it to our uh investor call for uh Q3 FI26 1:02:58 1 hour, 2 minutes, 58 seconds uh uh uh results and uh you may always reach out to us for any queries or clarifications on Iapexroenfoods.com. 1:03:08 1 hour, 3 minutes, 8 seconds That is the email address at apexfroenfoods.com. 1:03:11 1 hour, 3 minutes, 11 seconds Uh thank you and we thank the Stellar team also for supporting us on this. Thank you. Have a nice day. 1:03:21 1 hour, 3 minutes, 21 seconds Thank you. On behalf of Apex Rosen Foods Limited, that concludes this conference. 1:03:26 1 hour, 3 minutes, 26 seconds Thank you for joining us and you may now disconnect your lines. Thank you.