Avanti Feeds Limited — Q4 FY26

Avanti Feeds Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=Uyunup5NyuU Published: 3 days ago

0:00 Good evening and ladies and gentlemen. 0:03 3 seconds I'm pleased to extend a warm welcome to all of you for this investor conference call to review the audited financial 0:10 10 seconds results for Q4 FI26 and for the period ended 31st March 2026. 0:16 16 seconds Sri Aut Sanjie Ed aanti feeds Limited and Shri A Nikish Ed aanti frozen foods limited have joined from feed and frosting plants respectively. 0:25 25 seconds Along with me are Mr. Shantiata CFO of Aanti Fits Limited, Mr. DBS Satinar, CFO 0:32 32 seconds of Avanti frozen foods private limited and Mr. K. Shinasi CFO of Aanti Pete Private Limited 0:41 41 seconds begin with Mr. Shantila will present highlights of financial results for the quarter ended 31st March 2026 of shrimp fleet division and also consolidated 0:50 50 seconds financials of the company for the same period. Thereafter, Mr. PBS Satinara will present the financial highlights of shrimp processing and export division. 0:58 58 seconds Thereafter, Mr. Keshi Vasadi will present the stat status of the project. 1:04 1 minute, 4 seconds After presentation by all of them, we will take up the question association. I would now like to hand over the call to Mr. S. Ramachandra the JMD. Thank you and over to you sir. 1:15 1 minute, 15 seconds Thank you Mr. Akers. Good evening ladies and gentlemen. I am pleased to extend a warm welcome to all of you for this investors conference call to review the 1:25 1 minute, 25 seconds audited financial results for Q4 F526 and for the period ended 31st March 2026 of course he has already told that Mr. 1:36 1 minute, 36 seconds Sanji executive director and Mr. Nikesh executive director have joined 1:43 1 minute, 43 seconds online. Uh along with me here Shanti Laka CFO of Aanti Fees Limited and DBS Satana CFO of Aanti frozen foods private 1:52 1 minute, 52 seconds limited and K University CFO of Aanti Pure Limited. To begin with business will present highlights of financial 2:01 2 minutes, 1 second results for the quarter and year end 31st March 2026 of shim division and also consolidated financial 2:09 2 minutes, 9 seconds company for the same period. Thereafter Mr. D Sat will present the financial highlights of shim processing and expo division. Thereafter Mr. Case University 2:18 2 minutes, 18 seconds will present the status of Medare project. the after presentation all by all of them I'll give a just brief sum 2:26 2 minutes, 26 seconds up of the uh the events that have taken place and a bit of future uh forecast 2:33 2 minutes, 33 seconds and uh then before we take up the question and questions from you now I 2:39 2 minutes, 39 seconds hand it over to Shantila to uh give the financial highlights of our consultative 2:47 2 minutes, 47 seconds statements thank you sir good evening everyone I will take you through the consolidated and standalone financial performance 2:55 2 minutes, 55 seconds highlights for the quarter and year ended 31st March 2026. 3:01 3 minutes, 1 second The comparative performance of Q4 FI26 with that of Q3 FI26 and Q4 FI25 3:10 3 minutes, 10 seconds and of financial year 26 with that of financial year 25 have been given in the presentation already circulated. 3:19 3 minutes, 19 seconds So moving on to consolidated financial results for Q4 FI26. 3:24 3 minutes, 24 seconds Q4 FI26 financial highlights. The gross income in Q4 FI26 is 1516 crores as 3:34 3 minutes, 34 seconds compared to 1447 crores in the previous quarter. Q3 FI26 an increase of 69 crores by about 4.77%. 3:46 3 minutes, 46 seconds And when compared with Q4 FI205 gross income of 1,432 crores, there is an increase of 84 crores by 5.86%. 3:57 3 minutes, 57 seconds The PBT is 184 crores in Q4 FI26 as compared to 222 crores in Q3 FI26 4:06 4 minutes, 6 seconds a decrease of 38 crores by 17.12%. 4:12 4 minutes, 12 seconds In compared to Q4 FI25 PBT of 211 crores, there is a decrease of 27 crores by about 12.8%. 4:22 4 minutes, 22 seconds Coming to the financial results for the financial year ended 31st March 26. The 4:28 4 minutes, 28 seconds gross income in FI26 is 6,279 crores as compared to 5,766 4:35 4 minutes, 35 seconds crores in FI25. an increase of 513 crores by about 8.9%. 4:43 4 minutes, 43 seconds The PBT is 882 crores in FI26 as compared to 737 crores in FI25, an increase of 145 crores by about 20%. 4:56 4 minutes, 56 seconds The consolidated results indicate net impact of several factors such as increase or decrease in income, 5:03 5 minutes, 3 seconds expenditure and exceptional items relating to both feed and frozen divisions which will be discussed in the 5:11 5 minutes, 11 seconds following divisional performance of these units individually. 5:18 5 minutes, 18 seconds Standalone financial results of the division. So Q4 FI26 results financial 5:25 5 minutes, 25 seconds results the gross income of feed division for the Q4 FI26 is,68 crores as 5:33 5 minutes, 33 seconds compared to 993 crores in the previous quarter of Q3 FI26 an increase of 75 crores due to increase in quantity of 5:42 5 minutes, 42 seconds feed sold. The gross income in Q4 FI26 increases to,68 crores from 1067 crores. 5:51 5 minutes, 51 seconds a marginal increase of 1 cr. The PBT for Q4 FI26 is 139 crores as compared to 172 6:00 6 minutes crores in Q3 FI26 a decrease of 33 crores by 19% due to increase in raw 6:07 6 minutes, 7 seconds material cost and compared to Q4 TV of 194 crores there is a decrease of 55 6:14 6 minutes, 14 seconds crores about 28% mainly due to decrease in quantity sold by 5,986 empty and also 6:24 6 minutes, 24 seconds increase in raw material cost. The feed sales increased to 1 lak 23,725 6:31 6 minutes, 31 seconds MT in Q4 FI26 as compared to 1 lakh 18127 in Q3 and 6:38 6 minutes, 38 seconds decreased from 1 lakh 29711 in Q4 FI25. 6:44 6 minutes, 44 seconds Now coming to the financial year highlights of feed division. The gross income in FI26 is 453 6:53 6 minutes, 53 seconds 538 crores as compared to 4549 crores in FI25. 7:00 7 minutes A decrease of rupees of 11 crores mainly due to decrease in sale price during April 25 of the previous year. 7:10 7 minutes, 10 seconds The PBT is 715 crores in FI26 as compared to 658 crores in FI25, an increase of 57 crores by 8.66%. 7:23 7 minutes, 23 seconds The feed sales during the year increased to 5 lakh 62,60 MT as compared to 5 lakh 55248 empties in previous year. 7:36 7 minutes, 36 seconds The major raw materials are fish meal, soya bean meal and wheat flour. The noticeable development in this quarter 7:44 7 minutes, 44 seconds is increasing trend of two major raw materials that is fish meal and soya bean meal resulting in decrease in the 7:52 7 minutes, 52 seconds profitability when compared with the previous quarters. The prices of these raw materials keep fluctuating since 7:59 7 minutes, 59 seconds their production is based on fish catchers and agriculture and agriculture. The average consumption 8:06 8 minutes, 6 seconds prices of fish meal increased in Q4 FI26 to 130 per kg from 117 in Q3 FI26 and from 91 rupees in Q4 FI25. 8:20 8 minutes, 20 seconds In case of soya bean meal, their prices increased to rupees 55 per kg in Q4 FI26 8:28 8 minutes, 28 seconds from 44 in Q3 FI26 and increased from 41 in Q4 FI25. 8:35 8 minutes, 35 seconds However, the wheat floor price decreased to 31 in Q4 FI26 from 32 per kg in Q3 8:43 8 minutes, 43 seconds FI26 and decreased from 36 in Q4 FI25. 8:50 8 minutes, 50 seconds Present purchase price of fish meal is 230 rupees per kg and soya bean meal is 8:56 8 minutes, 56 seconds 72 rupees per kg and weight flow is 30 per kg. 9:02 9 minutes, 2 seconds While on one hand the raw materials are instrumental in determining the margins on the other hand the status of 9:09 9 minutes, 9 seconds aquacapial activity conditions like climatic changes, diseases etc. 9:15 9 minutes, 15 seconds determine the consumption of seed in terms of volume which will have an impact on the overall performance of the company. 9:25 9 minutes, 25 seconds The PPT during the financial year 26 stood at 15.5% 9:31 9 minutes, 31 seconds on revenues as compared to about 14.34 during FI25. 9:37 9 minutes, 37 seconds Uh TAL's period ended 31st March 2025. 9:42 9 minutes, 42 seconds To sum up in general, FI 2627 is expected to be a challenging season for the aquaculture industry in the aspect 9:51 9 minutes, 51 seconds of shrimp production due to steep increase in free raw material prices as well as exports from India and global demand for shrimp exports. 10:01 10 minutes, 1 second So the shrimp production and cons feed consumption FI26 and company plants for FI27 10:09 10 minutes, 9 seconds on the basis of estimated shrimp production of about 8 to 9 lakh metric tons in calendar year 2026. 10:16 10 minutes, 16 seconds The feed consumption is estimated to be about 11 to 12 lakh metric tons. The company feed sales during FI26 is 5 lakh 10:26 10 minutes, 26 seconds 62,60 MT against 5 lakh 55247 MT in FI25. 10:33 10 minutes, 33 seconds It is estimated that the feed sales during FI27 would be around 5 lakh 80,000 lit shrimp processing and export division. 10:46 10 minutes, 46 seconds The export of frozen shrimp during 2526 was to the tune of 7 lakh 92647 10:54 10 minutes, 54 seconds MT worth US dollars 5 lakh five 5,624.48 million. 11:01 11 minutes, 1 second USA was the largest importer about 2 lakh 56128 empty of frozen 11:08 11 minutes, 8 seconds shrimp followed by China 1 lakh 69,5 European Union 1 lakh 35599 11:18 11 minutes, 18 seconds Southeast Asia 83810 Japan 40,776 Middle East 30,478 11:27 11 minutes, 27 seconds and other countries 76,351 On a year- round basis, export volumes to the US declined by 17.9%. 11:38 11 minutes, 38 seconds Whereas export to China increased by 24% to the European year union by 36 and to 11:47 11 minutes, 47 seconds Japan by 5% in metric uh ter terms frozen shrimp contributed to be the 11:55 11 minutes, 55 seconds major item of export in terms of quantity and value accounting for a share of 40% in quantity and 67% of the total US dollar earnings during FI206. 12:08 12 minutes, 8 seconds Six foreign frozen shrimp exports uh registered a growth of 13.16% 12:15 12 minutes, 15 seconds in rupee value and 8.64% in dollar value and 6.9% by volumes. 12:24 12 minutes, 24 seconds Your company shrimp exports during the FI26 was 16,976M 12:31 12 minutes, 31 seconds as compared to 14,149 in FI25, an increase by 2,827 MTS. It is 12:39 12 minutes, 39 seconds estimated that the exports during FI25 would be around 19,000 MTS. Now I would 12:45 12 minutes, 45 seconds like to hand over to Mr. Dia Satinar to present highlights of shin sourcing and export division. 12:54 12 minutes, 54 seconds Thank you madam. Good evening everyone. 12:58 12 minutes, 58 seconds Now I would like to take you through the financial highlights of shrimp processing and export division. 13:06 13 minutes, 6 seconds Q4 FI 2026 results. The gross income for Q4 FI26 was 446 crores as compared to 455 crores in Q3 FI 2026. 13:19 13 minutes, 19 seconds a decrease by 9 crores representing 2% mainly due to decrease in average sales price realization. 13:28 13 minutes, 28 seconds The gross income in Q4 FI 2020 202 26 increased to 446 crores from 364 crores 13:36 13 minutes, 36 seconds during Q4 FI 2025. An increase of 82 crores representing 22% yearon-year growth. 13:45 13 minutes, 45 seconds Higher sales in Q4 FI26 were driven by an increase in average selling price realization and favorable for exchange rates. 13:56 13 minutes, 56 seconds The profit before tax for Q4's FI 2026 was 48 crores as compared to 52 crores 14:04 14 minutes, 4 seconds in Q3 FI 2026 preceding immediate quarter decreasing mainly due to decrease in average price realization 14:13 14 minutes, 13 seconds and also there was an additional provision for graduity and leave and catchment in Q4 FI 2026 as part of the new labor code. 14:23 14 minutes, 23 seconds The profit before tax in Q4 FI 2026 was 48 crores, an increase from 18 crores in 14:30 14 minutes, 30 seconds the corresponding quarter that is Q4 FI 2025 reflecting a significant increase primarily due to improved sales file 14:39 14 minutes, 39 seconds realization, favorable foreign exchange rates and higher other income and also there was a reduction in ocean fright rates during the current quarter. 14:50 14 minutes, 50 seconds Comparison of performance for 12 months ended 31st March 2026 with 12 months ended 31st March 2025. 14:58 14 minutes, 58 seconds The gross income for the 12 months of FI 2026 was 1,741 cr compared to 1,220 cr in the 15:08 15 minutes, 8 seconds corresponding 12 months period of previous year that is FI 2025. 15:13 15 minutes, 13 seconds This represents an increase of 521 cr reflecting a growth of 43%. 15:20 15 minutes, 20 seconds The increase in gross income during FI 2026 was primarily driven by a rise in 15:26 15 minutes, 26 seconds the sales volume of 20827 metric ton representing 20% growth improved average 15:34 15 minutes, 34 seconds sales price realization and also there was a higher other income the profit before tax for the 12 months 15:43 15 minutes, 43 seconds ended FI 2026 was 178 cr as compared to 86 cr in the corresponding ing period of 15:51 15 minutes, 51 seconds financial year 2025 reflecting an increase of 92 cr. This growth was primarily attributable to 16:00 16 minutes higher sales volumes during the current year, improved sales price realization, traverable effects rates and also 16:07 16 minutes, 7 seconds increased other incomes. So this completes the presentation of processing and export division financial results. 16:15 16 minutes, 15 seconds Thank you. Now I hand over to Mr. case invas to update the status of pet food project. 16:27 16 minutes, 27 seconds Uh thank you Mr. DBS. Uh good evening all. Uh now I would like to update pet 16:34 16 minutes, 34 seconds pet food project as already informed company continue to strengthen its presence in the pet food segment during Q4 FI 2526 under its care brand first. 16:46 16 minutes, 46 seconds The response from the pet owners for both uh cat food and dog food products have been encouraging with the growth 16:53 16 minutes, 53 seconds growing acuh acceptance across various various markets reflecting the uh strong potential potential of the business. 17:01 17 minutes, 1 second During Q4 FI 2526, the company recorded sale rupees 151 lakh compared to rupees 17:08 17 minutes, 8 seconds 136 lakh in Q3 FI 2526 reflecting a sustained growth uh and increasing market access of our products. The 17:17 17 minutes, 17 seconds growth was supported by continuous demand for our cash food drain and steady expansion of dog food segment 17:23 17 minutes, 23 seconds across existing and new markets. The company continued to expand its market reach by strengthening its presence in 17:31 17 minutes, 31 seconds Taiwan cities and gradually entering Tai 2 and Tai 3 markets. Our products are also available on leading e-commerce 17:40 17 minutes, 40 seconds platform including Amazon and Supertail uh improving accessibility and enhancing our reach to customer across the 17:47 17 minutes, 47 seconds country. The company continue to focus on strengthening the a first the brand through the targeted digital marketing 17:55 17 minutes, 55 seconds initiatives on Instagram and Facebook that is ours first. The effects are aimed to enhancing the brand awareness, 18:03 18 minutes, 3 seconds increasing the customer engagement and expanding our reach among pet owners across the country. The company also 18:11 18 minutes, 11 seconds actively working on expanding its product portfolio and plans to introduce additional flavors and v variants to 18:18 18 minutes, 18 seconds cater to evolve the customer preference and strengthen its market position. 18:24 18 minutes, 24 seconds On the profit side as informed earlier the company has purchased the land near Hyderabad converted from agriculture to non-aggriculture use for setting up a state-of-the-art manufacturing facility. 18:36 18 minutes, 36 seconds The land development works are in progress and we are in the final stage of finalizing the designs and drawings. 18:42 18 minutes, 42 seconds Upon completion of the detailed project uh report and receipts of necessary government approval, construction activities will commence. Now I hand 18:51 18 minutes, 51 seconds over to GMD sir for closing remarks. 19:00 19 minutes Thank you. 19:03 19 minutes, 3 seconds At the outset, I am delighted to share with you that India's seafood exports reached a all-time high of US dollars 8.546 billion in financial year 2526. 19:17 19 minutes, 17 seconds The volume and value of exports touch historic peak despite global challenges. 19:23 19 minutes, 23 seconds US and China remain main key markets and frozen shrimp continues to dominate exports with 66% in terms of value of the seafood exports from India. 19:36 19 minutes, 36 seconds As you know the Q1 representing April, May, June months is a peak seasoning culture. Basing on basing on the 19:45 19 minutes, 45 seconds successful performance in FI26, the farmers started stopping for the main season with high expectations for the 19:54 19 minutes, 54 seconds financial year 27. Also, the shim culture is progressing without much hurdles. So far, the export market is 20:02 20 minutes, 2 seconds promising and also farmgate prices of shrimp is stable. to the expectations of the farmers. Unfortunately, the things 20:10 20 minutes, 10 seconds were going smoothly. The prices of raw materials used for manufactur are going up 20:19 20 minutes, 19 seconds lot of going up steeply since since two months. Major reason attributed is Gulf 20:26 20 minutes, 26 seconds war on one hand and added to it is the threat of sugar alino this year seriously impacting the rainfall and agriculture crops. 20:37 20 minutes, 37 seconds As you know fish meal, fish oil, soya bean meal, soyaine, soy oil, wheat flour 20:44 20 minutes, 44 seconds are the major raw materials used in the manufacturer of feed. My colleagues have already explained to you the increasing 20:51 20 minutes, 51 seconds trend of these raw materials. The price of fish meal doubled from 100 rupees to 240 rupees in a span of two months May 21:00 21 minutes and June. Even soybean meal prices has also gone up steeply by about 45%. The prices of soybean meal increasing 21:08 21 minutes, 8 seconds steeply due to shortage in the previous year crop by 13 lakh tons and fear of failure of current year's crop due to 21:16 21 minutes, 16 seconds any low conditions. Moreover, the government of India has increased minimum support price of soybean meal by 21:24 21 minutes, 24 seconds about 380 rupees per quintil making the soybean me soybean price at 5,78 per 21:32 21 minutes, 32 seconds quintil. In the light of increasing in these raw materials, the company is preparing for increase in feed price at 21:39 21 minutes, 39 seconds the earliest to compensate the price height as much as possible keeping in view the overall shim culture. So we are 21:46 21 minutes, 46 seconds confident that with increasing in price the increasing cost will be absorbed to a great extent and at this stage I would 21:54 21 minutes, 54 seconds like to share with you the major reason for steep increase in fish price is export of about 75% of the fish meal 22:02 22 minutes, 2 seconds manufactured in India uh due to higher price realization and also incentives given by the government of India for 22:11 22 minutes, 11 seconds export of fish meal. Moreover, 5% GST is applicable for local purchase of fish whereas there is no GST on exports. The 22:20 22 minutes, 20 seconds company along with feed manufacturers association and plasma is making efforts to represent the government regulate the 22:28 22 minutes, 28 seconds fish by bringing in appropriate pressure by limiting the export quantity and withdrawal of incentives so that fish 22:36 22 minutes, 36 seconds mean available to the local shrimp feed manufacturer which is used for production of shrimp for export purpose earning valuable foreign exchange. 22:47 22 minutes, 47 seconds Even in the case of soybean meal, the government is being approached for permission to import soybean meal to 22:54 22 minutes, 54 seconds regulate the increasing price. With all these efforts, the company is confident that feed prices would be stabilized in 23:01 23 minutes, 1 second course of time to continue the shrimp culture without interruption. 23:06 23 minutes, 6 seconds Coming to the outlook for shrimp exports, the uh shrimp exports to the United States has improved following the recent developments in US trade policy. 23:14 23 minutes, 14 seconds While some uncertity uncertainty revived regarding the final direct structure applicable to seafood imports, the 23:21 23 minutes, 21 seconds overall environment has become more favorable for exports. In parallel, the company continues to strengthen its presence in other international markets, 23:30 23 minutes, 30 seconds thereby reducing its dependence on any single geography. The company is focusing on increasing the value added 23:37 23 minutes, 37 seconds products and also expanding the new markets. A significant development occurred on 20th February 2026 when the 23:45 23 minutes, 45 seconds US Supreme Court by a 63 majority ruled the that the international emergency economic powers act 23:53 23 minutes, 53 seconds does not authorize the president to impose tariffs on imports as the authority to levy taxes and duties rest 24:00 24 minutes with the Congress. Consequently, the tariffs reciprocal tariffs imposed under EA including the reciprocal duties were 24:09 24 minutes, 9 seconds invalidated and ceased to be legally be enforcable. As a result, CBP uh the customs US customs initiated 24:18 24 minutes, 18 seconds process for refund of reciprocal tariffs collected by it. 24:24 24 minutes, 24 seconds Further, US customs and border protection for border protection discontinued the collection of IEPA based status with effect from 24th 24:32 24 minutes, 32 seconds February 26. The US administration subsequently introduced a temporary global import charge under the section 24:40 24 minutes, 40 seconds 122 of the trade act of 1974 effective from the same date for a period of up to 150 days. Although the subchhat was 24:48 24 minutes, 48 seconds initially fixed at 10% there have been indications of a possible increase and further clarity is awaited. Subsequently 24:55 24 minutes, 55 seconds US court decisions including filtration incorporation and United States and Euro nations Florida incorporation and versus 25:04 25 minutes, 4 seconds United States directed CBP to refund duties collected under facilitate large scale refund 25:12 25 minutes, 12 seconds processing. CBP launched keep consolidated administration and processing of entries a new functionality with automated commercial environment on 28th April 2026. 25:24 25 minutes, 24 seconds According to the legal consultants of the seafood exporters association the initial phase of the refund process is likely to cover entries that remain 25:32 25 minutes, 32 seconds unlquidated due to ongo ongoing anti-dumping and counterveailing duty administrative reviews. In the case of frozen ship exports from India, entries 25:42 25 minutes, 42 seconds on E8 tariffs were paid since 1st April 2025 remain suspended pending completion 25:49 25 minutes, 49 seconds of these reviews which are expected to conclude over the next 12 to 18 months. 25:55 25 minutes, 55 seconds CPP uh customs US customs is expected to process the related refunds once the suspension of liquidation on these entries is listed. 26:05 26 minutes, 5 seconds So the with this I uh we will take up the questions from you uh gentlemen I 26:12 26 minutes, 12 seconds think uh Ahash yeah Mr. Akash. Yes sir. 26:17 26 minutes, 17 seconds Now I think you can proceed with the question and answer session. 26:21 26 minutes, 21 seconds Thank you sir. Ladies and gentlemen we will now begin the question and answer session. If you have a question please press star and one on your telephone 26:29 26 minutes, 29 seconds keypad and wait for your turn to ask your question. If you would like to withdraw your request, you may do so by pressing star and one again. 26:39 26 minutes, 39 seconds Ladies and gentlemen, if you have any question, please press star and one on the telephone keypad. 26:44 26 minutes, 44 seconds The first question comes from the line of Mr. Roaksha from Equest Securities. Please go ahead. 26:51 26 minutes, 51 seconds Yeah. Hi team and thanks for the opportunity. Uh I have multiple question. So first is on the feed division. So when the in opening remarks 26:59 26 minutes, 59 seconds uh the management is highlighting around 11 to 12 lakh or uh metric turn uptake of the feed uh which implies like uh we 27:08 27 minutes, 8 seconds can see a platish kind of feed uptake wherein sir is highlighting regarding uh incremental positive uh farm get price 27:16 27 minutes, 16 seconds related benefit and all. So is there something I am missing on and how you are seeing the fit division to perform 27:22 27 minutes, 22 seconds in FY27 and secondly from the margin perspective which implies you have taken a meaningful price hike in fourth 27:30 27 minutes, 30 seconds quarter FY27 what is the quantum of that and how you are seeing uh margins to pan out in FY27 especially from the feed division. 27:40 27 minutes, 40 seconds See let me see the feed division see we are preparing for taking a uh price hike 27:48 27 minutes, 48 seconds price increase because we working on that because the prices of raw materials are keeping almost increasing every day. 27:56 27 minutes, 56 seconds So the we work out the total uh impact on account of this price increase and we 28:03 28 minutes, 3 seconds propose to increase depending upon the the acceptability of the market also. We have to balance this these two and uh we 28:12 28 minutes, 12 seconds hope that maybe in as early as possible we will take a exact the price increase 28:19 28 minutes, 19 seconds how much it needs some time to really uh get the complete picture about the how much increase we can uh go for it uh and how much is acceptable to the market. 28:30 28 minutes, 30 seconds All these things are being considered. 28:33 28 minutes, 33 seconds uh I think in the next maybe in 1 week or 10 days we should be able to come to a specific numbers as far as the price 28:41 28 minutes, 41 seconds increase is concerned and as far as the the market is concerned the market is the culture is stable the export market 28:50 28 minutes, 50 seconds is stable and there is no significant uh the changes in the market conditions and as 29:00 29 minutes of now the farmers are able to get reasonably good uh uh returns on their culture uh ship culture and we do not 29:08 29 minutes, 8 seconds foresee any big uh change in the expectations for the current year unless some unforeseen events take place in the 29:17 29 minutes, 17 seconds rest of the year. See we are still in the first quarter. So there's the second quarter the July, August, September is 29:25 29 minutes, 25 seconds of equally is equally important for the first season to complete and the total 29:31 29 minutes, 31 seconds uh the production figures that they come being the first season being the major uh season for shrimp production and as 29:40 29 minutes, 40 seconds of now we are very confident very positive about the uh the market positive about the performance of the 29:48 29 minutes, 48 seconds company also. So haven't we any taken price hike into the fourth quarter? 29:55 29 minutes, 55 seconds We have taken a price increase uh in February of the fourth quarter. So the impact is not there uh much because only 30:03 30 minutes, 3 seconds one month we had the improved price and that is also not a full price impact because we are going another price uh 30:12 30 minutes, 12 seconds hike right now. As I stated in my uh introductory uh remarks that the the prices of soya 30:21 30 minutes, 21 seconds bean meal and fish meal have gone up very steeply in the last two months. 30:26 30 minutes, 26 seconds Unprecedented price increase for uh the reasons I have mentioned as one fish meal 30:33 30 minutes, 33 seconds prices gone up and also the soybean meal price. So this has impacted on the cost. 30:39 30 minutes, 39 seconds So we are working on that very seriously and maybe in the next few days we we'll be going for another price increase of 30:47 30 minutes, 47 seconds the feed. I think that should take care of uh you know whatever the cost that is going to get a great expense. 30:56 30 minutes, 56 seconds Uh second question is on the export front. So when the management is aspiring for around 19,000 odd metric on export in FY27 which implies like 10 to 31:05 31 minutes, 5 seconds 12 odd person sort of growth. But when we compare it with the peers or even the benefit of FTAs, doesn't the man 31:13 31 minutes, 13 seconds management sound bit conservative on that front or uh am I missing something over here? 31:20 31 minutes, 20 seconds Uh can you take this question? 31:22 31 minutes, 22 seconds Yeah. Yeah. Um thank you. Uh thank you for that question. I think uh generally uh if you've seen um I think um look at 31:32 31 minutes, 32 seconds last 10 years uh every year um there's year on year year on year year on year 31:39 31 minutes, 39 seconds increase last 10 years if you even put it with so this business cannot increase 31:48 31 minutes, 48 seconds exponentially uh at one point it has to be built step by step so that will 31:55 31 minutes, 55 seconds continue to happen. Um that's um um I hope that answered your question. So 32:02 32 minutes, 2 seconds this is uh the opening of FCA with Europe everything is better market access but we will need to build the 32:11 32 minutes, 11 seconds production step by step because it's food it's quality this quality food consumption uh safety and 32:19 32 minutes, 19 seconds everything. So we need to take it step by step. 32:24 32 minutes, 24 seconds Uh so so are there any capex required both in terms of the feed or in terms of the processing fund? Uh are we aspiring for any major capex over next two to 32:32 32 minutes, 32 seconds three odd years? Right now we don't foresee any big uh capex in the next two years. 32:40 32 minutes, 40 seconds Understood. Friends lastly on the pet care front so so what is the scale of the petare business right now and 32:47 32 minutes, 47 seconds considering the initial burn what is the burn rate which we are seeing and how the distribution is expanding can you 32:54 32 minutes, 54 seconds just highlight on qualitative engineer can you take this question please 33:02 33 minutes, 2 seconds sir um so we've been increasing the cost of 33:08 33 minutes, 8 seconds from uh 53 tons to right now 100 tons with uh goal of 8 800 metric tons by end 33:17 33 minutes, 17 seconds of this year. Our distribution network uh as of now we have uh uh 31 33:23 33 minutes, 23 seconds distributors in 13 uh in 13 cities and we're constantly expanding and we're also looking to expand into other 33:32 33 minutes, 32 seconds products like treats uh more economical food and also wet food in the coming months. 33:40 33 minutes, 40 seconds So what I may add to what Mr. 33:46 33 minutes, 46 seconds said that you see this is now presently what we are doing is we are importing the products from Thailand we are 33:55 33 minutes, 55 seconds according to our formulations and our brands we are marketing now. So uh till such a time we have our own uh 34:03 34 minutes, 3 seconds producting facility we would like to uh focus more on brand image and uh on the 34:12 34 minutes, 12 seconds products. So because the cost and effectiveness will really start getting realized only once we start our own 34:21 34 minutes, 21 seconds production uh unit. So till such a time we are trying to uh the diversify the markets and also uh improve the I mean 34:30 34 minutes, 30 seconds image and make products or products more popular. So that is a brand image exercise is going on now and once we uh 34:39 34 minutes, 39 seconds start our own production we'll be able to see the real fruits of this project they once we start manufacturing in our own production facility. 34:50 34 minutes, 50 seconds Understood sir. Understood. That's it from AA. Thank you. 34:55 34 minutes, 55 seconds Thank you so much sir. The next question comes from the line of Mr. Arjun Karna from Kotak Mutual Fund. Please go ahead. 35:01 35 minutes, 1 second Uh thank you for taking my question. Uh my first question is uh related to uh the uh imports uh uh into the US. So 35:10 35 minutes, 10 seconds just to understand is Avanti feeds or its subsidiaries uh the uh importer on record for this and what is the tune of 35:20 35 minutes, 20 seconds uh uh these reciprocal tariffs that we have asked uh for uh reimbursement previous 35:29 35 minutes, 29 seconds uh Nik would you like to take this question or let DBS take it? Yes. Yes. Okay. 35:38 35 minutes, 38 seconds Yeah. So uh api frozen foods private limited is the importer of record in US. 35:45 35 minutes, 45 seconds So uh ape itself import the goods and do the customs clearance and arrange for the deliveries to the respective buyers. 35:54 35 minutes, 54 seconds And with regard to carries ap frozen as an importer of record will file the 36:02 36 minutes, 2 seconds entries into AC portal to get the refunds. And what would be the quantum sir? 36:09 36 minutes, 9 seconds So quantum we are just calculating it. 36:11 36 minutes, 11 seconds So still it is in the process we are validating it. Roughly it will come around 15 to $20 million. 36:20 36 minutes, 20 seconds Okay perfect. Uh uh this yeah open the account also in US uh see 36:28 36 minutes, 28 seconds when the refund starts it gets credited to that US account. uh which is that I 36:35 36 minutes, 35 seconds think that gives the that is one of the conditions for refund that we have complied with. 36:41 36 minutes, 41 seconds Absolutely. Absolutely sir. Uh the uh second query is uh regarding uh the growth. So we mentioned that uh uh we 36:50 36 minutes, 50 seconds would grow step by step over a period of time. Uh so uh just to understand sir uh in terms of our capacities uh I 36:59 36 minutes, 59 seconds understand would be north of 19,000 tons. So does that mean those additional capacities are unmanned at this time or 37:06 37 minutes, 6 seconds is the difficulty in sourcing of uh uh uh uh the shrimp and hence uh step by step. So just if you could run us 37:15 37 minutes, 15 seconds through what prevents us from scaling up capacities faster than the 10 15% uh that have been uh mentioned. 37:24 37 minutes, 24 seconds Um so there are few things um um to answer that uh uh question. Um 37:34 37 minutes, 34 seconds overall uh the capacity that we stated is about 26 or 28,000 metric tons. Um but this business is very seasonal. 37:45 37 minutes, 45 seconds There are months where we want raw material but we don't have enough raw material because um um that's how the 37:53 37 minutes, 53 seconds growth cycle installed capacity u so technically I mean uh if you don't 38:02 38 minutes, 2 seconds understand the seasonality then on paper it looks large uh but uh in the season we try to process as much as we can and 38:12 38 minutes, 12 seconds after season we try to procure whatever we Sure there uh that helps. So what would be 38:19 38 minutes, 19 seconds the effective capacity of this 26 or 28,000 tons given that there are probably uh uh two seasons at max. Uh so 38:27 38 minutes, 27 seconds uh in terms of what is the max rated capacity of this? 38:35 38 minutes, 35 seconds See uh it uh maybe uh we can if you send an email then 38:42 38 minutes, 42 seconds perfect sure uh the context is that we are indicating we aren't looking at expanding uh capacities over the next 38:49 38 minutes, 49 seconds two years. uh and hence I was wondering that uh uh no we are right we we are we are 38:56 38 minutes, 56 seconds expanding the sense that uh there are lot of things that we are doing in the business to take it up step by step um 39:05 39 minutes, 5 seconds so we are going to increase capacity utilization that is uh the uh thought process behind it but uh there's a lot 39:14 39 minutes, 14 seconds of uh uh work which it uh needs to prepare So it takes one step by step 39:21 39 minutes, 21 seconds with the product that we're doing next looking to continue to grow. That's the question. 39:28 39 minutes, 28 seconds Sure. Uh the last question is that uh we are hearing uh that apart from the Indo uh Europe FDA there is talk of some bilateral trade agreement with the US. 39:40 39 minutes, 40 seconds Now as part of it uh we would probably be importing some of the agri products from there such as say DDGS or maybe red 39:47 39 minutes, 47 seconds sorghum. Now uh in terms of our input materials, this ideally should come at a lower price uh uh than uh in uh the 39:56 39 minutes, 56 seconds agree inputs available in India. Uh is this a right understanding and are these possible substitutes uh for the higher priced agree inputs available in the country? 40:07 40 minutes, 7 seconds No, we are not we are not importing anything from US products. We have absolutely sir. Uh this is more in terms 40:16 40 minutes, 16 seconds of in the future uh if the bilateral treaty allows it uh in terms of uh duty-free imports. Uh is that something that can be looked at? 40:26 40 minutes, 26 seconds We have to see you know today we cannot see because it is a policy of the government to permit or not to permit. 40:34 40 minutes, 34 seconds In respect of soybean meal, we are already approaching the government for giving us a a limited period permission 40:43 40 minutes, 43 seconds for import of soybean meal so that it's that would stabilize the prices which are going up now. They have done earlier once and we are to do it again. 40:55 40 minutes, 55 seconds Yes. Yes. Yes. Yes. So these particularly agri products India being 41:00 41 minutes agri economy it depends upon hello 41:09 41 minutes, 9 seconds there's some disturbance sir right yeah see uh you see India being the agree economy the lot depends upon the 41:17 41 minutes, 17 seconds crop that comes with the year after year and the uh local consumption requirement food requirements essentials of the 41:25 41 minutes, 25 seconds country and how these things determine the uh the the need for the products the whether it is to be imported or to be 41:34 41 minutes, 34 seconds not to be imported or even exported. So we never expected that wheat would be allowed to be exported wheat. Now they 41:42 41 minutes, 42 seconds allowing the wheat export because there is a big huge production and stock available in India like that it depends on the situation. Okay. 41:53 41 minutes, 53 seconds Perfect. Perfect. uh uh my uh just uh the final bit uh in terms of uh the uh 42:00 42 minutes shrimp uh uh processing side of things uh we've been talking of moving into more value addition so uh in terms of 42:07 42 minutes, 7 seconds value added shrimp say for FI26 uh how is that changed versus FI25 and how do we envisage this changing in FI27 42:17 42 minutes, 17 seconds thank So uh uh maybe uh if DBS could you pull 42:28 42 minutes, 28 seconds out statistics uh but on the value added side I can uh tell you generally that um 42:35 42 minutes, 35 seconds we've done a lot of work over here where we're doing a lot more value added products uh than what we were doing 10 42:42 42 minutes, 42 seconds years ago u in the sense that uh uh I guess in India We were probably one of the larger producers of value addended 42:50 42 minutes, 50 seconds products. Um initially um from um in 2005 15 uh we used to produce raw 43:01 43 minutes, 1 second products only. Um but today we do ready to eat which is um cooked product 43:12 43 minutes, 12 seconds consumption. We do breading. We do some shrimpings. to do Japanese preparation. 43:18 43 minutes, 18 seconds So we do a wide range of uh uh products with uh and we also have a partnership with the food ingredients company. So 43:26 43 minutes, 26 seconds we're accelerating R&D into value added products in our facilities in India. But 43:34 43 minutes, 34 seconds this is uh you know um in generally the scheme of the business u India produces 43:41 43 minutes, 41 seconds a lot of raw material. So we also try to do as much as commodity as possible. We try to maintain the balance uh to get 43:49 43 minutes, 49 seconds the right margin output. Um if that answers your question. 43:56 43 minutes, 56 seconds Sure. U uh just wanted to understand in context of margin. So should we assume that going forward with better 44:03 44 minutes, 3 seconds utilization higher throughput uh the beta margin should move north for the processing piece? 44:10 44 minutes, 10 seconds I would generally say if you compare to our peers, if you look do a general analysis, you will see that our margin 44:17 44 minutes, 17 seconds structure is much better because we do all these products. So we're already upwards of a general market uh margin 44:24 44 minutes, 24 seconds level because of these products. So we want to keep that balance because we also I think just before this you asked about capacity utilization. 44:34 44 minutes, 34 seconds The more value added products we do, the lesser output from the factory. Sure. Additional process. Yeah. 44:43 44 minutes, 43 seconds Sure. Thank you and wish me all the best. 44:47 44 minutes, 47 seconds Thank you, sir. Ladies and gentlemen, if you have any questions, please press star and one on a telephone keypad. 44:55 44 minutes, 55 seconds I repeat, if you have any questions, please press star and one on a telephone keypad. 45:00 45 minutes We have a question from uh the line of indigenous minister. Please go ahead. 45:05 45 minutes, 5 seconds Uh hello sir. Uh thank you for opportunity. Uh my question is in next two two three year uh company is 45:14 45 minutes, 14 seconds expecting how much percentage of revenue growth and profit growth. 45:21 45 minutes, 21 seconds Yeah. See now to answer your question and see as you know that we have been uh as a group 45:30 45 minutes, 30 seconds we have been expanding our activities not only diversifying also we have this pet care business also coming and we are 45:38 45 minutes, 38 seconds expecting lot of growth in that apart from uh capacity utilization of frozen 45:44 45 minutes, 44 seconds uh products value added products which will increase the uh bottom line as well as the top line And also the aquaculture 45:53 45 minutes, 53 seconds also we have enough capacity we would be able to uh the uh increase the total uh bottom and top line of both the units. 46:04 46 minutes, 4 seconds So it overall the the target if you put around 10 to 15% growth with the present 46:13 46 minutes, 13 seconds global situation it will be a big achievement because today we are in a situation where many things are uncertain. We don't know today we are 46:22 46 minutes, 22 seconds unable to even prepare the budget for 26 27 even though three months have already lapsed. We are not sure how things are 46:31 46 minutes, 31 seconds going to do what is going to be the cost. So I think you know better that all these developments will definitely 46:39 46 minutes, 39 seconds uh influence the the process of our budgeting and also targets and also the revenues topline and all these things. I 46:48 46 minutes, 48 seconds think it will take some time for us to really understand these situations to come to have a reasonably good budget 46:55 46 minutes, 55 seconds estimates. Madam okay sir. Thank you. 47:01 47 minutes, 1 second Thank you ma'am. We have a follow-up question from Mr. Roaksha from Equities. Please. 47:08 47 minutes, 8 seconds Yeah thanks for the followup. Uh so my question is regarding the competition. 47:12 47 minutes, 12 seconds So right now if we see from the auador perspective uh we are gauging that there are certain issues which are coming up 47:19 47 minutes, 19 seconds over there. So uh earlier when we are highlighting we we were detrimental compared to the equivalent cost how we 47:27 47 minutes, 27 seconds are positioned right now and if something else is emerging in terms of the other geographies can you highlight? 47:37 47 minutes, 37 seconds Um I I would uh um say it Equinox continues 47:45 47 minutes, 45 seconds to be uh large the largest exporter. Um India also continues to be one of the 47:54 47 minutes, 54 seconds largest exporters and number two in the US market. we still with the tariffs 48:00 48 minutes gone um and everything we were u um it's looking bright there and also in Europe it's looking very bright so hopefully 48:09 48 minutes, 9 seconds the higher demand um encourages more farmers to do more um um uh feeding and 48:18 48 minutes, 18 seconds everything but uh on a general level um um India continues to play a very 48:24 48 minutes, 24 seconds important role in the shrimp supply chain globally we'll continue to do so. 48:31 48 minutes, 31 seconds Uh government and the industry is doing everything they can. Um the last point I 48:38 48 minutes, 38 seconds wanted to say is as you know Avanti also invested into Equidos uh in partnership 48:45 48 minutes, 45 seconds with the union. So it's about uh working with the global supply chain and equaling market along with India. 48:57 48 minutes, 57 seconds Understood. Understood. Mr. Akas, are you hear me? 49:09 49 minutes, 9 seconds Yes sir. 49:10 49 minutes, 10 seconds If there is no further question, we can conclude the call. Sure, sir. 49:16 49 minutes, 16 seconds I would request you to conclude the uh go ahead with the closing comments, sir. 49:25 49 minutes, 25 seconds Yeah, thank you everyone. Thanks, thank you all the investors for joining this conference call of Apanti FE Limited. 49:35 49 minutes, 35 seconds Thank you. 49:38 49 minutes, 38 seconds Thank you sir. Ladies and gentlemen, this concludes our conference for today. 49:42 49 minutes, 42 seconds Thank you for your participation and for using Dusabas conference call service. 49:45 49 minutes, 45 seconds You may disconnect your lines now. Thank you and have pleasant.