Avanti Feeds Ltd — Q3 FY26

Avanti Feeds Ltd Q3 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=u7uB8gxZBhg Published: 2 months ago

0:01 1 second Greeting ladies and gentlemen. I'm Patrick, moderator for the conference call. Welcome to Aanti Feats Limited Q3 0:09 9 seconds FY26 earnings conference call. We have with us today Mr. S. Ramatandra Ra, 0:16 16 seconds joint managing director, PFO and company secretary. 0:20 20 seconds Shay Wenasanji, executive director of Avanti Feeds Limited and Avanti Petcare Private Limited. 0:28 28 seconds A Nikile director Aanti Feeds Limited and executive director Aanti Force and Foods Private Limited. Mrs. B. Shanti 0:36 36 seconds Lata GM Finance and Accounts Aanti Feeds Limited. Mr. Dia Satya Narayana CFO 0:44 44 seconds Aanti Fosen Foods Private Limited and Mr. KSD CFO Aanti Petare Private Limited. 0:52 52 seconds As a reminder, all participants will be in listenonly mode and there will be an opportunity for you to ask questions after the presentation concludes. 1:01 1 minute, 1 second Do you need assistance during the conference call? Please signal an operator addressing staff then zero on a touchstone telephone. Please note this 1:10 1 minute, 10 seconds conference is recorded. I would now like to hand over the floor to Mr. C. 1:14 1 minute, 14 seconds Ramasandra Ra joint managing director, CFO and company secretary. Thank you. Thank you Mr. 1:22 1 minute, 22 seconds Good evening ladies and gentlemen. I am pleased to extend a warm welcome to all of you for this investors conference 1:30 1 minute, 30 seconds call to review the unodudited financial results for Q3 FY26 and for the period ended 31st December 2025. 1:40 1 minute, 40 seconds Mr. Wanker Sanji and Mr. Nicl executive directors are joining from the shrimp feed um and processing plants respectively. 1:51 1 minute, 51 seconds Along with me here are Mrs. San Kilata GM Finance and Accounts DBS Sachin CFO 1:58 1 minute, 58 seconds of Fanti frozen and case CFO of Fanti Petare private limited begin with Mrs. 2:05 2 minutes, 5 seconds Santila will present highlights of financial results for the quarter ended 31st December 25 of Shim Fe division and 2:13 2 minutes, 13 seconds also consolidated financials of the company for the same period. Thereafter Mr. Dia Sachinana will present the 2:20 2 minutes, 20 seconds financial highlights of shrimp processing and export division. 2:24 2 minutes, 24 seconds Thereafter sinasi will present the status of pet care project. After presentation by all of them we'll take a 2:31 2 minutes, 31 seconds question and answer session. Over to Mrs. Sila. Thank you sir. Good evening everyone. 2:39 2 minutes, 39 seconds Now I'll take you through the consolidated and standalone financial performance highlights for the quarter and 9 months ended 31st December 2025. 2:50 2 minutes, 50 seconds So first we'll go through the consolidated financial results for the quarter ended uh December 26 Q3 26 2:58 2 minutes, 58 seconds results. So the comparative performance of Q3 FI26 with that of F_sub_2 Q2 FI26 3:06 3 minutes, 6 seconds and Q3 FI25 have been given in the circ in the presentation already circulated. 3:14 3 minutes, 14 seconds Gross income in Q3 FI26 is,447 crores as compared to,659 crores in the 3:23 3 minutes, 23 seconds previous quarter of Q2 FI26 a decrease of 212 crores by about 12.78%. 3:32 3 minutes, 32 seconds Compared to Q3 FI25 gross income of,45 crores, there is an increase of 42 crores by about 2.99%. 3:43 3 minutes, 43 seconds The PBT for the Q3 FI26 is 222 crores as 3:49 3 minutes, 49 seconds compared to 227 crores in Q2 FI26 a decrease of 5 crores by 2.2% 3:58 3 minutes, 58 seconds and compared to Q3 FI25 PBT of 184 crores there is an increase of 38 crores by about 20.65%. 4:08 4 minutes, 8 seconds The 9 months results uh financial results for the 9 months ended 31st December 2025 is the comparative 4:17 4 minutes, 17 seconds performance of 9 months FI26 with that of 9 months FI25 are also given in the presentation already circulated. 4:27 4 minutes, 27 seconds Gross income in 9 months FI26 is 4761 crores as compared to 4341 crores in 9 4:36 4 minutes, 36 seconds months of FI25 an increase of 420 crores by 9.67%. 4:44 4 minutes, 44 seconds The PBT is 698 crores in 9 months FI26 as compared to 526 crores in 9 months 4:52 4 minutes, 52 seconds FI25 an increase of 172 crores by about 32.7%. 4:59 4 minutes, 59 seconds The consolidated results indicate net impact of several factors such as increase or decrease in income 5:06 5 minutes, 6 seconds expenditure and exceptional items relating to both feed and frozen divisions which will be discussed in the 5:14 5 minutes, 14 seconds divisional performance of these units individually. 5:19 5 minutes, 19 seconds So standalone financial results of feed division. So Q3 FI26 results the gross 5:26 5 minutes, 26 seconds income for the Q3 FI26 is 993 crores as compared to 1200 crores in the previous 5:34 5 minutes, 34 seconds quarter of Q2 FI26 a decrease of about 207 crores due to decrease in the 5:40 5 minutes, 40 seconds quantity of field feed sold. The gross income in Q3 FI26 decreased to 993 5:47 5 minutes, 47 seconds crores from,73 crores in the corresponding quarter of Q3 FI25. A 5:54 5 minutes, 54 seconds decrease of 80 crores. Uh this is offset by the decrease in the sale price and also increase in sales quantity by 6:03 6 minutes, 3 seconds 13,922 MT. The PBT for Q3 FI26 is 172 crores as 6:10 6 minutes, 10 seconds compared to 180 crores in Q2 FI26 a decrease of 8 crores by 4.44% 44% since 6:18 6 minutes, 18 seconds Q2 is the main reason for the aquaculture industry and compared to Q3 FI25 PBT of 167 crores there is an 6:28 6 minutes, 28 seconds increase of 5 crores by 2.99% mainly due to decrease in raw material cost the feed sales decreased to 1 lak 6:37 6 minutes, 37 seconds 18,127 MTS in Q3 as compared to 1 lak 54644 6:43 6 minutes, 43 seconds empties in Q2 FI26 6 and from 1 lak 32049 empties in Q3 FI25 6:51 6 minutes, 51 seconds to the 9 months FI26 results gross income in 9 months FI26 is 3,471 6:59 6 minutes, 59 seconds crores as compared to 3,484 crores in 9 months FI25 a decrease of 13 crores by 0.37%. 7:10 7 minutes, 10 seconds The PBT is 576 crores in 9 months FI26 as compared to 7:16 7 minutes, 16 seconds 465 crores in 9 months FI25 an increase of 111 crores by 23.87%. 7:27 7 minutes, 27 seconds The feed sales increased to 4 lak 38,335 empties in 9 months. FI26 7:34 7 minutes, 34 seconds as compared to 4 lakh 25 537 empties in 9 months FI25. 7:41 7 minutes, 41 seconds The major raw materials of feed are fish meal, soya bean meal and beet flour. The noticeable 7:49 7 minutes, 49 seconds development in this quarter is increasing trend of two major raw materials that is fish meal and soya 7:56 7 minutes, 56 seconds bean meal resulting in decrease in the profitability when compared with previous quarter. The prices of these 8:03 8 minutes, 3 seconds raw materials keep frustrating since their production is based on agriculture and fish crashes from the ocean. The 8:11 8 minutes, 11 seconds prices of fish meal increased in Q3 FI26 to 117 per kg from 98 in Q2 and increased from 93 per kg in Q3 FI25. 8:25 8 minutes, 25 seconds In case of soya bean meal, their prices increased to 43 per kg in Q3 FI26 from 8:32 8 minutes, 32 seconds 43 in Q2 FI26 and decreased from 46 in Q3 FI25. 8:39 8 minutes, 39 seconds However, the wheat floor price decreased to 32 per kg in Q3 FI26 from 33 per kg 8:47 8 minutes, 47 seconds in Q2 FI26 and 35 per kg in Q3 FI25. 8:53 8 minutes, 53 seconds The present purchase price of fish meal is 145 per kg. Soya bean meal is 56 per kg and wheat flour is 32 per kg. 9:04 9 minutes, 4 seconds While on one hand the raw materials are instrumental in determining the margins. 9:08 9 minutes, 8 seconds On the other hand, the status of aquaculture activity conditions such as climate, diseases, etc. determine the 9:17 9 minutes, 17 seconds consumption of feed in terms of volume, which will have an impact on the overall performance of the company. 9:25 9 minutes, 25 seconds The PBT stood at 16% on revenues during the 9-month period ended 31st December 9:32 9 minutes, 32 seconds 25 as compared to 13.3% during the corresponding period of the previous year that is 31st December 2024. 9:42 9 minutes, 42 seconds The full impact of reduced and stabilized raw material prices during the 9 months of FI26 9:48 9 minutes, 48 seconds enabled to achieve 16% PBT. Considering continued steep increase in prices of 9:55 9 minutes, 55 seconds major raw materials like fish meal and soya bean meal during the past 3 months which will have an impact on Q4 FI26. 10:05 10 minutes, 5 seconds The PBT for the FI26 is expected to be around 14.5% to 15%. 10:13 10 minutes, 13 seconds To sum up, in general, FI 2526 is expected to be a mix of favorable and 10:20 10 minutes, 20 seconds challenging seasons for the aquaculture industry both in respect of shrimp production as well as exports from India and global demand for shrimp exports. 10:31 10 minutes, 31 seconds However, considering the performance during the first 9 months of FI26 as compared to performance during 9 months 10:39 10 minutes, 39 seconds of FI25, the results are likely to register marginal improvement. 10:50 10 minutes, 50 seconds shrimp production and feed consumption FI25 and company plans for FI26 10:58 10 minutes, 58 seconds on the basis of estimated shrimp production of about 8 to 9 lakh empties in calendar year 2025. The feed 11:06 11 minutes, 6 seconds consumption is estimated to be about 11 to 12 lakh metric tons. The company's feed sales during the 9 months FI26 is 4 11:15 11 minutes, 15 seconds lakh 38 335 empty against 4 lakh 255 537 empty in 9 months 25. It is estimated 11:23 11 minutes, 23 seconds that the feed sales during FI26 would be around 5 lakh 55,000 empty shrimp 11:30 11 minutes, 30 seconds processing and export. The export of frozen shrimp during 2425 was to the 11:37 11 minutes, 37 seconds tune of 7 lakh 41,529 empty worth USD dollar 5,177.01 million. 11:47 11 minutes, 47 seconds USA is the largest importer with 3 lak 11,948 empty of frozen shrimp followed 11:54 11 minutes, 54 seconds by China 1 lakh 36,164 empty. European Union 99,310 12:02 12 minutes, 2 seconds empty, Southeast Asia 58,3 empty, Japan 38,917 12:09 12 minutes, 9 seconds empty, Middle East 32,784 empty, and other countries 64,43 empty. 12:19 12 minutes, 19 seconds Frozen shrimp contributed to the major item of export in terms of quantity and value, accounting for a share of 43.67% 12:27 12 minutes, 27 seconds 67% in quantity and 69.46% of the total US dollar earnings. Frozen 12:36 12 minutes, 36 seconds shrimp exports during 2425 increased by 8.3% in value terms and 6.06% 12:44 12 minutes, 44 seconds in US dollar terms and 3.56% by volume. 12:51 12 minutes, 51 seconds The company's shrimp exports during FI25 was 14,149 as compared to 13,444 13:00 13 minutes in FI24, an increase of 682 empty. It is estimated that the exports during FI26 13:08 13 minutes, 8 seconds would be around 16,500 empty. 13:14 13 minutes, 14 seconds Now I hand over to Mr. Dia Satin Aarina to present highlights of shim processing and export division. 13:21 13 minutes, 21 seconds Thank you ma'am. Good evening everyone. 13:25 13 minutes, 25 seconds Now I would like to take you through the financial highlights of shrimp processing and export division. 13:33 13 minutes, 33 seconds Q3 FI 2026 results. The gross income for Q3 FI 2026 was 455 cr as compared to 462 13:43 13 minutes, 43 seconds crores in Q2 FI 2026. a decrease by 7 crores representing 1.5%. 13:50 13 minutes, 50 seconds Mainly due to decrease in sales quantity by,95 metric tons which represents 23%. 13:58 13 minutes, 58 seconds However, the increase in other income during Q3 FI 2026 partially offset the impact of the lower sales volume. 14:08 14 minutes, 8 seconds The gross income in Q3 FI 2026 increased to 455 crores from 328 crores during Q3 14:17 14 minutes, 17 seconds FI 2025 an increase of 127 crores representing 39% yearon-year growth. 14:27 14 minutes, 27 seconds Higher sales in Q3 FI 2026 was driven by an increase in average selling price 14:34 14 minutes, 34 seconds realization, favorable foreign exchange rate and increase in other incomes. 14:41 14 minutes, 41 seconds The profit before tax before exceptional item for Q3 FI 2026 stood at 52 crores 14:47 14 minutes, 47 seconds compared to 53 crores in Q2 FI 2026 reflecting the marginal decrease mainly due to other income. 14:59 14 minutes, 59 seconds The profit before tax in Q3 FI 2026 was 52 cr and increase from 18 crores in the 15:06 15 minutes, 6 seconds corresponding quarter that is Q3 FI 2025 reflecting a significant increase primarily due to improved sales price 15:15 15 minutes, 15 seconds realization favorable foreign exchange rates higher other income and a reduction in ocean rates. 15:23 15 minutes, 23 seconds Comparison of performance per 9 months ended 31st December 2025 with 9 months ended 31st December 2024. 15:32 15 minutes, 32 seconds The gross income for 9 months during FI 2026 was 1,296 15:39 15 minutes, 39 seconds crores as compared to 855 cr in the corresponding 9 months period of previous year that is financial year 2025. 15:49 15 minutes, 49 seconds An increase of 441 crores representing 52% in the gross income during 9 months 15:57 15 minutes, 57 seconds of FI 2026 is mainly due to increase in sales quantity by 2,84 16:04 16 minutes, 4 seconds metric tons representing 28% growth and also improved sales average sales price realization. 16:13 16 minutes, 13 seconds The profit before tax for the 9 months ended FI 2026 stood at 130 crores compared to 68 crores for the 16:22 16 minutes, 22 seconds corresponding period in FI 2025 reflecting an increase of 62 crores in the PBT. 16:30 16 minutes, 30 seconds This growth is mainly attributable to higher sales volumes, improved sales price realization, favorable foreign 16:38 16 minutes, 38 seconds exchange rates, increased other income and also there is a marginal reduction in ocean pride rates. 16:45 16 minutes, 45 seconds Yeah, with this proen results are completed. Now I hand over to Mr. Casein was ready to update the status of pet food project. Thank you. 16:57 16 minutes, 57 seconds Thank you Mr. 17:00 17 minutes Good evening all. Now, now I would like to update our pet food project. As already informed, company commenced 17:07 17 minutes, 7 seconds their trading in cat food and dog food under the Aan petcase brand that is AAN first. The company is planning to expand 17:14 17 minutes, 14 seconds its portfolio with the additional flavors in a due course. The response the response from the pet owners for the 17:20 17 minutes, 20 seconds both cat and dog food has been highly positive with a strong market acceptance and observed across all regions. 17:29 17 minutes, 29 seconds During Q3 FI 2026 the company recorded sales of rupees 136.2 lakh compared to 17:37 17 minutes, 37 seconds rups 95.08 08 lakhs in Q2 FI 2526 reflecting continued growth movement uh mment 17:45 17 minutes, 45 seconds growth was driven by the increasing portronage of our cat food product as well as the steady traction in the dog 17:53 17 minutes, 53 seconds food segment on the market expansion the company is strengthening its presence in uh tier one cities and has initiated 18:01 18 minutes, 1 second expansion into tai 2 and t3 markets e e-commerce operations our products are 18:08 18 minutes, 8 seconds uh now live on Supertale and Amazon platform strengthening our presence and improving accessibility for customers nationwide. 18:18 18 minutes, 18 seconds The company continues to focus on building strong brand visibility brand visibility for Aan first uh through the 18:25 18 minutes, 25 seconds ongoing digital market campaign in Instagram and Facebook that is a first enhancing customer awareness and brand engagement across our target audience. 18:37 18 minutes, 37 seconds On the project side as informed earlier the company has purchased a land near Hyderabad converted from agriculture to 18:44 18 minutes, 44 seconds non-aggriculture use for setting up a state of art manufacturing facility. The land development works are in progress 18:52 18 minutes, 52 seconds and we are in the final stage of finalizing the design and drawings. Upon completion of the detailed project report and the receip of necessary 19:00 19 minutes government approval construction activity will come commence. 19:05 19 minutes, 5 seconds Now I'll hand over to Jim S for a closing remark. Thank you Mr. J. 19:15 19 minutes, 15 seconds As anticipated the first season of shim culture of this year commenced with highly positive expectation by farmers 19:24 19 minutes, 24 seconds and all the stakeholders prepare the farmers preparing pawns and stocking from midFebruary 26 and the stockings 19:33 19 minutes, 33 seconds are going on progressive impressively along with the increase in sim culture this year as expected the volume of feed 19:41 19 minutes, 41 seconds sales also will increase however the Prices of raw material major rail 19:48 19 minutes, 48 seconds particularly fish meal and soybean meal are increasing steeply as explained by my colleague earlier impacting on 19:55 19 minutes, 55 seconds margins. We do hope that prices of these raw materials will stabilize during the course of the year. 20:03 20 minutes, 3 seconds Reviewing the status of ship exports we have been discussing on impact of reciprocal tariff imposed by US on imports of shrimps from India. As you 20:12 20 minutes, 12 seconds all know there has been a high degree of uncertaintity on levy of reciprocal tariff and extent of its impact on seafood industry. It is a positive 20:20 20 minutes, 20 seconds development to see withdrawal of 25% duty imposed as a penalty for import of Russian oil. It has given much needed relief to the export of shrimps to USA. 20:31 20 minutes, 31 seconds Further the other 25% duty has also been removed. However, the US government chose to ley import such charge of 10% 20:40 20 minutes, 40 seconds on imports. But s uncertainity whether it is increase it to 15% still exists 20:47 20 minutes, 47 seconds awaiting clarity. Overall export environment also poised to be more encouraging with the tariffs coming down 20:54 20 minutes, 54 seconds and the company working on exports to other global markets. As you are aware on 28th February 2026, the US Supreme 21:02 21 minutes, 2 seconds Court ruled in a 63 decision that international emergency economic powers act 21:10 21 minutes, 10 seconds does not authorize the US president to impose tariffs on imports because of the act does not grant clear statuto 21:17 21 minutes, 17 seconds authority to levy taxes or duties a power reserved for Congress. As a result of the ruling EPA based products 21:26 21 minutes, 26 seconds including reciprocal duties previously imposed were invalidated and are no longer legally enforcable. US Customs 21:33 21 minutes, 33 seconds and Border Protection stopped collecting these unoffa tariffs effective from 25 4th February 21:41 21 minutes, 41 seconds 2026 by deactivating the related tariff codes. However, the Supreme Court's opinion did not directly address the refund for the duties already collected. 21:53 21 minutes, 53 seconds Importers may need to pursue refunds through customs process or litigation. 21:58 21 minutes, 58 seconds Within hours of the decision, the US administration introduced a new temporary global import subcharge under section 122 of the trade act of 1974. 22:08 22 minutes, 8 seconds initially set at 10% and subsequently announced to be raised at 15% effective from 24th February for up to 150 days. 22:21 22 minutes, 21 seconds The new satch effectively replaces the EPA tariffs but under a different statuto authority. 22:29 22 minutes, 29 seconds Having said so much about this tariff, Mr. Nicholas would be able to give more throw more light on this subsequently 22:37 22 minutes, 37 seconds later on in the course of question and answer uh discussions. 22:43 22 minutes, 43 seconds Now I'll just give the highlights of the union budget announced recently. 22:48 22 minutes, 48 seconds The government has increased allocation to the fisheries sector under schemes such as Padan Mantri Mat Sada Yojana 22:56 22 minutes, 56 seconds with continued focus on agriculture value chain development and export promotion. The customs duty on imported 23:04 23 minutes, 4 seconds ship fee has been reinstated at 15% but withdrawing consistent duty at 5% given in the budget of the pre previous year that is 2025. 23:15 23 minutes, 15 seconds This has been the the association has been pursuing with the government for reinstating 50% 15% duty because the 23:25 23 minutes, 25 seconds imported feed was available. their highly reduced prices making a big competition for the domestic feed 23:33 23 minutes, 33 seconds manufacturers. This step would help domestic feed suppliers to compete with the imported shim feed. The budget 23:40 23 minutes, 40 seconds emphasizes strengthening cold chain processing infrastructure and export ecosystem which is expected to support 23:47 23 minutes, 47 seconds shim processes and exporters. Earlier custom duty rationalization on key feed and processing imports continues to 23:55 23 minutes, 55 seconds improve cost competitiveness for shrimp feed manufacturers and exporters. 23:59 23 minutes, 59 seconds Overall policy direction remains supportive of seafood exports with a focus on enhancing global competitiveness and boosting value 24:07 24 minutes, 7 seconds addition. I think with this we will take up the questions uh from the investors. 24:14 24 minutes, 14 seconds Uh I think we can start this question and answer session. Thank you sir. Over to you Mr. Karti. 24:21 24 minutes, 21 seconds Thank you sir. Ladies and gentlemen, we will now begin the question and answer session. If you have a question, please 24:29 24 minutes, 29 seconds press star and one on your telephone keypad and wait for your turn to ask a question. 24:35 24 minutes, 35 seconds If you'd like to withdraw your request, you may do so by pressing star and one again. 24:45 24 minutes, 45 seconds Ladies and gentlemen, if you have a question, please press star and one on a telephone keypad. 24:54 24 minutes, 54 seconds Wait for a moment while the question queue assembles. 25:18 25 minutes, 18 seconds Ladies and gentlemen, if you have a question, please press star and one on the telephone keypad. 25:29 25 minutes, 29 seconds First question comes from the line of Nitan AI from Ink Capital. Please go ahead. 25:36 25 minutes, 36 seconds ask three questions on your food business and uh two questions on the new food business. 25:43 25 minutes, 43 seconds You are not audible. Can you just speak a bit louder? Hello sir. Am I clearly audible now? 25:51 25 minutes, 51 seconds No, it's okay. 25:53 25 minutes, 53 seconds Okay. Uh so three questions on your core business, two on the pet food business. 25:58 25 minutes, 58 seconds I'll start with the four business. Uh so we are going to have UK's trade deal be implemented first. Um the talks are 26:07 26 minutes, 7 seconds probably from April we'll have the implementation of the UK trade deal and EU by the end of the year. Uh given that 26:15 26 minutes, 15 seconds if these when these trade deals are implemented the duty reduction is substantial. Do you see the end market size as a whole increasing? 26:26 26 minutes, 26 seconds I think Nichles would take this call and this question. 26:29 26 minutes, 29 seconds Could you repeat the question please? So given that UK's trade deal and EU's trade deal, of course EU is uh expected 26:38 26 minutes, 38 seconds by the end of this year or beginning of next year and UK by April this year is going to be at a substantially uh what do you call lower the tariff rate 26:46 26 minutes, 46 seconds because in EU we had tariffs up to 26% in UK we haded up to 9%. 26:53 26 minutes, 53 seconds So given this scenario, do you see the market in EU expanding for shrimps itself because suddenly the price will 27:00 27 minutes drop and become more competitive against other proteins? 27:03 27 minutes, 3 seconds Yes, I I would definitely say that the market access um into EU and UK um would 27:12 27 minutes, 12 seconds be better. U there'd be higher demand coming from these markets. Yes, 100%. 27:18 27 minutes, 18 seconds because they're reducing duty. 27:22 27 minutes, 22 seconds Understood. And on UK are we already collaborating um for April failures without duty or is it still uh undecided? 27:32 27 minutes, 32 seconds So like I think these policies have been u announced these agreements have been announced but u I I what uh the industry 27:41 27 minutes, 41 seconds is watching is when and how quickly are they implemented. So there's no um news on the implementation official news on 27:50 27 minutes, 50 seconds the implementation date. Uh we're hoping that it um comes into effect quickly. 27:57 27 minutes, 57 seconds So I may add to what said it is I think it is around 6 to 9 months time they want to uh complete all the formalities 28:05 28 minutes, 5 seconds the uh according to the what is the bilateral trade agreement has to be implemented from both sides. Both governments have to approve that. I think it will take about 6 to9 months. 28:16 28 minutes, 16 seconds That's what I read in a uh newspaper the other day. 28:20 28 minutes, 20 seconds Understood sir. Uh the next question is on the NO impact on the weather. Um one of our core raw materials fish will be 28:29 28 minutes, 29 seconds very heavily impacted by this uh weather condition. Uh that is for India and for 28:37 28 minutes, 37 seconds Ecuador they have their own challenges with Elino. Uh so how are you reading it for both the countries? 28:44 28 minutes, 44 seconds Is this question for fish meal? Yeah. 28:47 28 minutes, 47 seconds See the fish meal as you know the same the catches from the ocean. It depends upon the nature definitely. uh the each 28:56 28 minutes, 56 seconds year it keeps varying but uh the last year it was not so good in particularly 29:04 29 minutes, 4 seconds Chile and Peru are the major suppliers of fish meal uh to the almost global 29:10 29 minutes, 10 seconds consumers and uh the this year their uh catches have been fairly good and uh the 29:18 29 minutes, 18 seconds some in between there was less demand for Indian fish meal because of the availability of fish meal from Chile in Peru. But again the prices have gone up. 29:29 29 minutes, 29 seconds Again the demand has gone up from the particularly east the east west Asia because particularly 29:38 29 minutes, 38 seconds from Taiwan and other countries they would like to have a cheaper fish meal available from India. As far as the quality is concerned it is the same. 29:49 29 minutes, 49 seconds That is how the the prices in the Indian fish meal is going up. Moreover, the dollar is becoming very strong and rupee 29:58 29 minutes, 58 seconds depreciation is giving a more advantage to the exporters. So they compare the price the local price, domestic price 30:06 30 minutes, 6 seconds and with the export price and uh the government also gives some incentive for that for exports. So overall the uh the 30:15 30 minutes, 15 seconds fish meal producers get much more higher margins on exports. So uh it is uh this 30:23 30 minutes, 23 seconds is definitely going to be a big challenge uh for us and we have made representation to the government to 30:29 30 minutes, 29 seconds bring some sort of a uh regulatory mechanism by which the exports are limited and adequate fish meal is 30:38 30 minutes, 38 seconds available for the domestic consumption but we'll have to wait and see because the government is also interested in getting more and more forex so they 30:47 30 minutes, 47 seconds would not really agree to that but we have making our efforts to somehow bring a balance between these two exported fish meal and domestic availability. 30:58 30 minutes, 58 seconds Let's wait and see for that. 31:01 31 minutes, 1 second Understood, sir. Last question on the core business. Um the shipping rates and the container movement on our export front um are they stable given the 31:10 31 minutes, 10 seconds Middle East situation at least is bad for shipping? 31:14 31 minutes, 14 seconds What? Currently currently we it's this war is quite new. So right now we don't 31:22 31 minutes, 22 seconds have u any changes. Um our uh shipping 31:28 31 minutes, 28 seconds currently is um below um like the Cape of Good Hope Africa. So we don't expect 31:37 31 minutes, 37 seconds so much but of course um there should be some disruption. We need to see um what happens for us since most of our markets 31:47 31 minutes, 47 seconds are to US, Europe, Japan. I I don't think there's any immediate direct 31:54 31 minutes, 54 seconds effect, but there'll be some kind of trickle down effect depending on how containers are blocked or um inventory 32:02 32 minutes, 2 seconds is managed by the shipping company. So that we need to wait and watch. Um moving to the pet food business. 32:12 32 minutes, 12 seconds I'm very sorry to interrupt Mr. Could you please join back with you? Of course. Of course. Thank you. 32:18 32 minutes, 18 seconds Can you come back to restrict yourselves to two questions in the initial round and join back the queue for more questions. Next question 32:28 32 minutes, 28 seconds comes from the line of Arjun Ka from Kota mutual funds. Please go ahead. Uh so thank you for taking my question. 32:35 32 minutes, 35 seconds Uh the first query is on the outlook for processing for FI27. So we have given a target of 16,500 for FI26 four quarters. 32:45 32 minutes, 45 seconds How do we look at FI27 given these trade agreements? 32:51 32 minutes, 51 seconds I I I'll take that question. Um so um I I so uh frankly speaking on a lighter 32:59 32 minutes, 59 seconds note um you know things um um I must uh um thank the Indian government for 33:05 33 minutes, 5 seconds taking a proactive approach to support um the country and the exporters not only for shim but all the categories by 33:14 33 minutes, 14 seconds unlocking and giving good uh m market access to countries like EU and UK and 33:21 33 minutes, 21 seconds also negotiating a trade deal with uh the US eventually which now doesn't matter but u because of all these 33:29 33 minutes, 29 seconds reasons um of improved bilateral trade we do expect better um market access so 33:36 33 minutes, 36 seconds our quite um robust for the year 27 33:43 33 minutes, 43 seconds um but our guidance uh I need to relook uh at it because we're finalizing some 33:49 33 minutes, 49 seconds of those numbers with the change in compared structures. 33:57 33 minutes, 57 seconds Sure. Uh so just to understand we have capacity of around 28,000. Uh would that be the right understanding? 34:06 34 minutes, 6 seconds Yes. Uh 28,000 uh be the right understanding. 34:11 34 minutes, 11 seconds Sure. Uh the second is uh given uh that there is positivity in terms of the uh 34:19 34 minutes, 19 seconds shrimp side of it uh do you see farmers feeding more uh going forward uh because obviously that uh uh impact both on the 34:28 34 minutes, 28 seconds feed side and processing side. So what's the sentiment at the farmer side? 34:33 34 minutes, 33 seconds It's quite positive. Um this is not only for the processor or feed mill or uh farmer generally everyone in the supply 34:41 34 minutes, 41 seconds chain is positive even the importers are positive because they don't you know it's just a tax that goes into uh a 34:48 34 minutes, 48 seconds government coffer so we can pass it on to the consumer instead of paying taxes. 34:54 34 minutes, 54 seconds So definitely everyone is happy about it. So, so uh just uh to understand this 35:00 35 minutes a little further uh in terms of for us on the processing side uh do you see operating leverage kick in for us as 35:09 35 minutes, 9 seconds uh volumes move up or potentially uh given that we are trying to get entry into newer markets we would try to price a little bit more competitively? 35:20 35 minutes, 20 seconds Uh I I I I I I wouldn't say that we would price very competitively because we have better market access that means we have better demand for our product. 35:30 35 minutes, 30 seconds Um but what we need to really say is see is how do these things pan out right these are announcements and so for them 35:39 35 minutes, 39 seconds to be um implemented um like Mr. Ra had said previously it might take 6 to9 months or even longer. I don't even know 35:47 35 minutes, 47 seconds it's uh difficult to comment on that but once they start kicking in I think it's more of a long-term perspective that I 35:54 35 minutes, 54 seconds would take uh an approach not only FI27 that there should be theoretically better margin but the question that 36:03 36 minutes, 3 seconds you're asking is quite new right it's very um tariffs were removed a month ago um so we need to see how this pans out 36:12 36 minutes, 12 seconds but theoretically it should give better margin uh recovery. 36:17 36 minutes, 17 seconds Uh so for example, US where we did uh bring out that uh post ended uh tariffs have been devised downwards for us. Uh 36:26 36 minutes, 26 seconds are we seeing importers pull in a lot more uh inventory from India given that now we are a little bit more competitive 36:34 36 minutes, 34 seconds uh with uh uh Ecuador and some other countries have been hit by higher tariffs in terms of anti-dumping, CVD etc. 36:43 36 minutes, 43 seconds Uh so those it's a very broad question I'll just try to make it simple. So right now we're in we're in offseason so 36:51 36 minutes, 51 seconds there's not much material at the farm level because it's winter but uh on general level of inquiry level 36:59 36 minutes, 59 seconds there's a higher uh inquiry level more positivity u more uh um interactions with the 37:06 37 minutes, 6 seconds customers on their plans uh for the year. So definitely it's looking positive but uh uh again um we're in the 37:14 37 minutes, 14 seconds off season so we're quite confident I I would say that we're quite confident that um demand would come back um once the season opens. 37:25 37 minutes, 25 seconds I'll uh get back to the questions but uh wishing you all the best. Thank you. 37:33 37 minutes, 33 seconds Thank you. Next question comes from the line of Ronak Sha from Equid Securities. Please go ahead. 37:40 37 minutes, 40 seconds Yeah, thanks for the opportunity. So my first question is on the feed business. 37:44 37 minutes, 44 seconds So first of all when the management is guiding for around five and a half odds metric sort of feed say in FY26 37:51 37 minutes, 51 seconds which sounds bit optimistic or or like a practice kind of thing considering the evolving things where majority of the 37:59 37 minutes, 59 seconds things are favoring us in terms of the overall outlook. So how the company is seeing the business in FY 27 and 28 and 38:06 38 minutes, 6 seconds can we expect a mid to high single digit sort of growth rate in terms of the overall uh overall uh sales volume. 38:14 38 minutes, 14 seconds See the the uh the growth of volume depends on the circumstances the prevailing during the main culture 38:21 38 minutes, 21 seconds seasons that is first season and the second season. So it as you know that year after year these climatic 38:29 38 minutes, 29 seconds conditions keep changing and last year we had lot of problems in the climatic conditions and this year we are hoping 38:36 38 minutes, 36 seconds that the climate would be more friendly and more suitable for the aquaculture improved aquaculture and 38:44 38 minutes, 44 seconds with this hope and with this confidence all the farmers have really worked out 38:51 38 minutes, 51 seconds and making efforts to increase the area of culture. Uh this year the also those who have left the culture the time of 39:00 39 minutes covid also have now trying to see that whether they can start restart this. So it with these positive developments we 39:09 39 minutes, 9 seconds are expecting that the the growth would be better this year and but this is still a very primitive stage. We have 39:17 39 minutes, 17 seconds just started the stockings and as we see next couple of months we will know how the the culture uh keeps progressing. 39:26 39 minutes, 26 seconds Depending upon that we will be in a position to estimate the growth that we can expect in the uh first season. Of 39:34 39 minutes, 34 seconds course uh you know each season unique by itself. So we know what would 39:40 39 minutes, 40 seconds be the first year season's real uh demand for the feed and also thereafter the second season will start. So it's 39:49 39 minutes, 49 seconds very difficult to exactly estimate but we with all the present circumstances we expect that there should be minimum 10% 39:57 39 minutes, 57 seconds growth uh in the feed volume consumption if not more because this area 40:06 40 minutes, 6 seconds culture going up and farmers are also very uh positive about the uh the culture season ahead. So with this we'll 40:14 40 minutes, 14 seconds be able to see a growth of about 10% uh uh if not more. 40:21 40 minutes, 21 seconds Understood. Understood. Secondly sir when we see the gross margin for the feed division so uh when we were into the 2FY 26 conference call wherein you 40:29 40 minutes, 29 seconds were highlighting a increase in the fish and me prices but when we see the third quarter's number we can see a few improvement into your gross margin. So 40:38 40 minutes, 38 seconds have we taken some price hike into the fit division and going forward how you are seeing uh those numbers panning out? 40:45 40 minutes, 45 seconds So what has happened here is the averaging of the raw material cost has really given that additional advantage 40:53 40 minutes, 53 seconds in the uh Q3. So what is happening is when the prices keep going up we follow 41:00 41 minutes the weighted average consumption. So the the prices earlier low prices will have some impact on the uh Q3 raw material 41:09 41 minutes, 9 seconds prices also that's how we have got a better uh you know improvement than what I said in the last uh the the call 41:19 41 minutes, 19 seconds investors call so but again this as again I'm saying the same thing now because tube 4 is going to be again the 41:27 41 minutes, 27 seconds same story repeats so that is the reason why when we said that the Average increase in the profitability is likely 41:35 41 minutes, 35 seconds to be more about 1 to 1 and a half% more than what it was there earlier. But if you look at 9 months, it is very good 41:43 41 minutes, 43 seconds about 16% we have recorded. But that is not going to be there for the average for the whole year where we complete by 41:51 41 minutes, 51 seconds 31st March 26 2026. So that would be around 15% 14.5 to 15% because of the 41:58 41 minutes, 58 seconds price hike. So these raw material prices because of the averaging that difference in profitability uh comes in quarterly results. 42:08 42 minutes, 8 seconds Understood. So so can we expect around 2 to 3 months more we are having those low low cost inventory which is likely to consume after we seeing the Yes. Yes. Yes. You are right. 42:20 42 minutes, 20 seconds Understood. And sir lastly on the processing business so we can see a significant improvement into the realization per kg. uh however if we see 42:28 42 minutes, 28 seconds from the AITA front there was some steep increase in your opex into the third quarter. So can you explain the reason 42:35 42 minutes, 35 seconds for that and how we are seeing the profitability in these division going forward considering the updates across 42:42 42 minutes, 42 seconds the micro should I think um my colleague had um clearly 42:50 42 minutes, 50 seconds explained um the point that there was better volume there was better um um um 43:00 43 minutes realizations of uh price realization better other income. So all these pretty 43:06 43 minutes, 6 seconds much are the main uh reasons for um um the better margin. Um and on on top of 43:15 43 minutes, 15 seconds that we were able to pass on um the tariffs um which now have been reversed. 43:21 43 minutes, 21 seconds uh so that's the main uh point of it. We also diversified into other markets 43:28 43 minutes, 28 seconds which were which was good uh considering the instability or volatility in the US 43:34 43 minutes, 34 seconds market which was positive um in just running the operations uh continuously. 43:41 43 minutes, 41 seconds So yeah, I hope that answers but uh that the note that my colleague said was actually like on point 43:48 43 minutes, 48 seconds and and just justly on the uh your OPEX front as I was asking that currently we have around 194 cr sort of OPEX visa v 43:55 43 minutes, 55 seconds your 77 cr last year. So what led to this steep jump uh in current quarter and what can be the sustainable run for that? 44:04 44 minutes, 4 seconds What? 44:05 44 minutes, 5 seconds So the major reason for going off the opex was because of the reciprocal tariff which was at highest at 50% 44:15 44 minutes, 15 seconds during Q3 FI 2026. So that is the reason major jump you can see in OPEX. 44:22 44 minutes, 22 seconds Okay. So we are accounting that into our OPEC fund. Yes. Yes. Okay. Okay. That's it from my side. Thank you. 44:31 44 minutes, 31 seconds Thank you. The next question comes from the line of Sor Banik from Divas Consultants. Please go ahead. 44:39 44 minutes, 39 seconds Uh good evening sir. Am I audible? Yes sir. Please go ahead. 44:44 44 minutes, 44 seconds Uh congratulation on a mix set of number. So I just want to clarify from all of you that uh in FY27 what are the 44:52 44 minutes, 52 seconds target markets for all the business segments that we're looking for? Is just uh a plan that you made. if it is made if you can explain us. 45:03 45 minutes, 3 seconds See for FI27 we are working on the uh the projections because till recently we 45:10 45 minutes, 10 seconds had so many challenges like tariffs and also our own culture season how it's going to be and what efforts should we 45:18 45 minutes, 18 seconds make to encourage the farmers to undertake more culture and all this planning was going on. So we are in the 45:25 45 minutes, 25 seconds process of preparing the uh you know budgets for the 26 27 I think we'll be able to share with you sometime the next 45:33 45 minutes, 33 seconds call we should be able to give you more details on that. 45:37 45 minutes, 37 seconds Okay thank you so much for the clarification and sir one more question regarding this in Africa and west Asia and overall Asia you are also taking a few market share and operating as well. 45:48 45 minutes, 48 seconds So how much expectations of that self-realizations that we expect from you know uh this Asia and Africa as 45:56 45 minutes, 56 seconds well. So if you please share this at least Niches is it is it go to 46:05 46 minutes, 5 seconds Hi can you question uh yes sir uh what you say sir can you repeat can you repeat? 46:13 46 minutes, 13 seconds Uh okay. So in FI27 as I said so your plans and projections are on. I just want to know uh that in uh Africa and in 46:22 46 minutes, 22 seconds Asia are there any opportunities to grow your markets for all the you know business segments that we are operating? 46:30 46 minutes, 30 seconds Uh so Africa generally it's um in terms of uh income level quite low. So um the 46:37 46 minutes, 37 seconds opportunity in Africa may be not immediate but more long-term. So I wouldn't say in the immediate next two three years Asia in particular has been 46:46 46 minutes, 46 seconds doing quite well. If you see our share in Asian markets is has been blowing over the past few years. So we're still 46:55 46 minutes, 55 seconds very bullish on the Asian market. So um we do expect um higher sales towards this region. 47:05 47 minutes, 5 seconds As far as speed is concerned, we are making efforts to go to the Middle East and we are trying to enter that market. 47:13 47 minutes, 13 seconds We are trials are going on and their culture there. We are supporting them with the technical advice and also we 47:21 47 minutes, 21 seconds have spent some trial products also to feed to them and we are making efforts 47:28 47 minutes, 28 seconds to uh supply to these uh middle east countries also for this simp 47:39 47 minutes, 39 seconds okay so sir can you please share your uh I mean percentage how much how far are you are I mean your trials and it is it 47:46 47 minutes, 46 seconds 50% 60% % or 70% completion if you just share the number. 47:53 47 minutes, 53 seconds I mean how can you come back on it? We we can't we can't use this as a percentage, right? 48:00 48 minutes Because this is like it's like a trial. 48:03 48 minutes, 3 seconds So it's you cannot give like Okay. Yeah. Okay. Sir, got your uh got your answers. 48:10 48 minutes, 10 seconds Uh lastly, sir, one question on financial numbers. Uh so is there any expectations of yours or calculations that uh how much numbers on top line and 48:18 48 minutes, 18 seconds bottom line you will end this year? I mean FYI 26. 48:23 48 minutes, 23 seconds No, not not now. We are still working on that. 48:27 48 minutes, 27 seconds After after 30 days we will close the quarter. So we can give you that. 48:35 48 minutes, 35 seconds Okay. Okay. Congratulations. Okay. 48:41 48 minutes, 41 seconds Thank you. The next question comes in the line of Akilesh Raat from Riddanta Private Limited. Please go ahead. 48:49 48 minutes, 49 seconds Uh hi. So uh so my question is regarding pet business. I just want to understand like uh how we are going to you know 48:56 48 minutes, 56 seconds penetrate the market and the market is uh you know surrounded by and dominated by some few key players. So could you 49:04 49 minutes, 4 seconds please uh shed some light on your plan like in long term how are we going to you know uh penetrate the market. 49:11 49 minutes, 11 seconds Writer can you please take this uh question? 49:15 49 minutes, 15 seconds Hi um so right now we are concentrating mostly on the product itself. Uh the 49:21 49 minutes, 21 seconds product has gotten great um u um reply from the market and all the dog owners 49:28 49 minutes, 28 seconds and the cat owners who have used it are becoming a uh customers. Uh so product is going to be the key uh for it and 49:37 49 minutes, 37 seconds also we're going to soon launch new products uh which will compete with with with the bigger brands with better 49:44 49 minutes, 44 seconds quality. That's uh what has been our uh goal since the start. 49:52 49 minutes, 52 seconds Okay. And sir, if you uh could please uh shed line light on some uh revenue figures like our major revenues coming from dog food or cat food. 50:02 50 minutes, 2 seconds Um so dog food is around uh uh around 60 to 65% and the rest. 50:10 50 minutes, 10 seconds Uh and and if you could uh like shed some light on some margin margin guidance like what kind of margin are we looking from this business in long term? 50:21 50 minutes, 21 seconds Uh can I take this call? 50:26 50 minutes, 26 seconds I mean would you like to answer this call better? 50:32 50 minutes, 32 seconds Yeah, see uh the margins I think it is too premature to talk about the margins at this stage because we have just 50:41 50 minutes, 41 seconds started and you know the initial years we'll have to incur lot of expenditure on the promotion of the product and 50:49 50 minutes, 49 seconds building the brand image. So we'll have to do lot of work on that and more expenditure is incurred to the create 50:57 50 minutes, 57 seconds the brand image and to various the market segments also we have to see and also the regions see this product is 51:06 51 minutes, 6 seconds supposed to be marketed pan India so we are now concentrating on region wide east west north south like that we have 51:15 51 minutes, 15 seconds divided and we are in the process of recruiting people to and also to e-commerce also we are penetrating into 51:23 51 minutes, 23 seconds the market and to make the product visible availability is a very important aspect in this kind of business and 51:32 51 minutes, 32 seconds simultaneously we have our own distributors as well as the e-commerce so it will take some time for us to uh 51:40 51 minutes, 40 seconds develop this give the numbers and margins so because the initial expenditure is high and moreover see now 51:47 51 minutes, 47 seconds we are doing it more of a trading The real the benefit of this comes to the company when we start our own 51:55 51 minutes, 55 seconds production because the as long as you import the product you know the price the how the the foreign exchange that 52:03 52 minutes, 3 seconds the rupee getting depreciated against the dollar and all when we import distribution and all the expenses are 52:09 52 minutes, 9 seconds bound to be higher and uh when we start our production maybe in next uh 1 year 52:15 52 minutes, 15 seconds or 16 12 14 15 months so we be able to start our own production then well a real uh you know benefit of the project 52:24 52 minutes, 24 seconds would uh be seen at that time. So now it is only the uh the process is only to 52:31 52 minutes, 31 seconds develop the brand and uh in the stabilize the market base. So people should know that ai's product is 52:39 52 minutes, 39 seconds available and which are the uh flavors that whether it is a dog food or a cat food and we are focusing mostly on that 52:47 52 minutes, 47 seconds and also recruiting the people to promote the product. Business promotion is another important thing. These are 52:54 52 minutes, 54 seconds the two things which we are doing that expenditure but at this stage it is very difficult to make any margins at this point of time. 53:04 53 minutes, 4 seconds Uh and sir a last question regarding this uh only so sir as you have said that uh we are going to start our own production. So how much capex are we 53:13 53 minutes, 13 seconds going to do or or is it uh or do we have any facility uh as of now running uh in which we'll do production. So so that's my last question sir. Thank you. 53:23 53 minutes, 23 seconds We have purchased the land development is going on. We are working with our collaborators for preparing the drawings 53:31 53 minutes, 31 seconds and also the missionary estimates, civil works, all these work is in actively working on that and we should be able to 53:40 53 minutes, 40 seconds really give the clear estimate of the total project cost where the next couple of months we should be able to do it and 53:49 53 minutes, 49 seconds we start working on the drawings and we you know in India we need so many approvals from the government to start the construction itself. 53:57 53 minutes, 57 seconds So we'll we will start working on that. 54:01 54 minutes, 1 second So once we get the approvals we'll start construction and the total estimated 54:08 54 minutes, 8 seconds cost of the project and profitability etc. would be able to give you maybe the next one or two quarters results. 54:18 54 minutes, 18 seconds Thank you so much sir. Thank you for taking my question. Thank you. All the very best for upcoming quarters. Thank you. Thank you. 54:26 54 minutes, 26 seconds Thank you. Ladies and gentlemen, if you have a question, please press star and one on your telephone keypad. 54:33 54 minutes, 33 seconds Next, we have a follow-up question from Nitin ASI from Inkit Capital. Please go ahead. 54:39 54 minutes, 39 seconds Um, thank you for the opportunity for follow-up questions. Uh, this is the questions are two questions on the pet 54:46 54 minutes, 46 seconds uh food business. Uh, number one, our uh products were on display and available for purchase on super tales last 54:54 54 minutes, 54 seconds quarter. Um we aim to expand it to Amazon. We mentioned expanding it to Amazon this quarter but however it's still not visible on the port. 55:07 55 minutes, 7 seconds Can you take Amazon um since there's another brand called as Aant um which sells shoes and they've been there for a longer time. 55:18 55 minutes, 18 seconds they see invisible on the top. Uh but we're working with Amazon uh to get our u brand on top of the page. 55:27 55 minutes, 27 seconds Understood. Understood. And on follow up on that, Amazon uh pet foods if you go in that uh page, they have started their 55:35 55 minutes, 35 seconds own brand. Um which is a tough call given that any other online uh supplier that you use could also start their own 55:44 55 minutes, 44 seconds brand. you guys have given any thought to that whether these will be successful or not successful or as a threat. Do you see it as a threat because your distributor having its own brand? 55:53 55 minutes, 53 seconds Okay, could you repeat that question again please? 55:57 55 minutes, 57 seconds Amazon on Amazon uh pet food page where all the other brands are displayed and you are aiming for your own brand to be 56:03 56 minutes, 3 seconds displayed has started its own pet food brand. 56:08 56 minutes, 8 seconds Yeah. And it's it's also being uh upfront about it, you know, in the labeling and marketing and the packaging 56:14 56 minutes, 14 seconds saying it's an Amazon brand. Uh given that significant amount of pet food is 56:20 56 minutes, 20 seconds being bought by online distributors, um do you see this as a threat going forward? Even at Super Tales, I think 56:28 56 minutes, 28 seconds your brands are at display and all throughout the last uh five months, they have been increasing more and more products have been showing on Super 56:36 56 minutes, 36 seconds Tales. I'm also hearing good feedback from people. But do you see this as a threat that the distributor website itself can start its own brand? 56:44 56 minutes, 44 seconds Uh yes uh we do see it as a threat that uh distributor can um start his own page 56:51 56 minutes, 51 seconds but uh he won't be able to give the same uh discounts as the company's being able to give. So and um I think that's going to affect their business more than ours. 57:05 57 minutes, 5 seconds And that's good stuff. Thank you. 57:09 57 minutes, 9 seconds Thank you. The next question from the line of Karan Sharma from Kan Capital. Please go ahead. 57:26 57 minutes, 26 seconds Can you speak a bit louder please? Yeah. Am I audible now? 57:34 57 minutes, 34 seconds Hello. Is this Yeah. Nicholas my question was to you. So in the shrimp processing division we have seen uh in 57:42 57 minutes, 42 seconds last 9 months recent volume growth. So uh what I was asking was that since this chaos of the last one year where uh 57:51 57 minutes, 51 seconds duties were changed do you see any possibility of uh gaining reasonable market share considering your market 57:58 57 minutes, 58 seconds share volume wise in the last four five years has been quite stagnant in this division around the 1 2% mark. So considering this is a very fragmented 58:06 58 minutes, 6 seconds market as you had guys had mentioned earlier with these recent changes in the last 12 15 months do you think there is a possibility of gaining decent market 58:15 58 minutes, 15 seconds share this market share in the country that's what you uh in terms of global market yeah in terms 58:22 58 minutes, 22 seconds of in terms of the players in the country yeah correct the so so historically right um this has 58:30 58 minutes, 30 seconds been especially in India it's been very fragmented that like 100 plus uh packers. Um so that way it's just 58:39 58 minutes, 39 seconds because of the size of the country, the people on the west coast, east coast, different areas, different people 58:46 58 minutes, 46 seconds specialize, some people trying to move only commodity, we try to do more value. 58:52 58 minutes, 52 seconds Um so that said like if you just look at in a broad perspective right um when um 58:58 58 minutes, 58 seconds about uh when we formed the JV with uh uh Thai union for the processing division we were I think um below top 59:08 59 minutes, 8 seconds we're not even top 10 importers now we climb the rank and amongst the top 59:15 59 minutes, 15 seconds importers for frozen shrimp today. So that way we have been increasing our 59:22 59 minutes, 22 seconds volume uh but also um we're also looking to uh play where there's better margin 59:29 59 minutes, 29 seconds by doing more value added products and trying to work with more pre premium client where the expectations or the 59:36 59 minutes, 36 seconds very demanding gen generally so that's that but uh in the next few years uh 59:43 59 minutes, 43 seconds from FI27 onwards our main target is to scaries continue to scale. If you see 59:50 59 minutes, 50 seconds our ker percent on volume or revenue, every year they continue to grow the business step by step. And with food 59:59 59 minutes, 59 seconds processing, uh you that's the way to do it because when a consumer gets uh the bag of shrimp, they find any problems, 1:00:08 1 hour, 8 seconds they race complaint, right? So, and we and food safety issue itself is very sensitive. So every year we're going to 1:00:16 1 hour, 16 seconds increase step by step step by step that we're quite confident and that's how we see we've showed the business in last 10 years. 1:00:27 1 hour, 27 seconds Thank you. Thank you. 1:00:32 1 hour, 32 seconds Thank you sir. There are no further questions. Now I hand over the floor Mr. S. Ramosandra for closing comments. 1:00:42 1 hour, 42 seconds Thank you for all the investors for actively participating and sharing your views on the uh performance of the 1:00:51 1 hour, 51 seconds company for the quarter and as well as 9 months in the 31st December 25 and I 1:00:58 1 hour, 58 seconds conclude this conference call with a note that the next call we'll be able to really uh see the year end results as 1:01:08 1 hour, 1 minute, 8 seconds well as the future uh planning of the company. Thank you for uh your time. 1:01:14 1 hour, 1 minute, 14 seconds Thank you very much. 1:01:18 1 hour, 1 minute, 18 seconds Thank you sir. Ladies and gentlemen, this concludes your conference for today. Thank you for your participation and for using this conference call 1:01:26 1 hour, 1 minute, 26 seconds service. You may disconnect your lines now. Thank you and have a blessing day.