AVG Logistics Ltd — Q3 FY26

AVG Logistics Ltd Q3 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=znWZZhdcU0E Published: 2 months ago

0:00 Ladies and gentlemen, good day and welcome to the Q3 and 9month FI26 results conference call of AVT Logistics 0:09 9 seconds Limited hosted by Kidden Advisers Private Limited. As a reminder, all participant lines will be in the written 0:16 16 seconds mode and there will be an opportunity for you to ask questions after the presentation concludes. 0:24 24 seconds Should you need assistance during this conference call, please signal an operator by pressing star then zero on your touchstone. 0:32 32 seconds Please note that this conference is being recorded. Before we proceed, a quick disclaimer. 0:39 39 seconds Please note this conference call may contain forward-looking statements about the company which are based on the 0:46 46 seconds beliefs, opinions and expectations of the company as on date of this call. 0:52 52 seconds These statements are not the guarantee of future performance and involve risk and uncertainties that are difficult to predict. 1:01 1 minute, 1 second I now hand the conference over to Mr. 1:03 1 minute, 3 seconds Harshel Ganchani from Kirin Advisers Private Limited. Thank you and over to you sir. 1:10 1 minute, 10 seconds Yes, thank you uh everyone. On behalf of Kiran Advisor, I welcome you all on the conference call of EVG Logistic Limited 1:18 1 minute, 18 seconds for Q3 and 9 months. From the management team we have Mr. Sanjay Gupta, management director and CEO. We have Mr. 1:26 1 minute, 26 seconds Raja Sha, chief financial official. Now I hand over the call to Mr. Sanjay Gupta. Over to you sir. 1:34 1 minute, 34 seconds Thank you sir. 1:36 1 minute, 36 seconds Good morning esteemed investors and warm welcome to Alo limited ski three and 9 month uh 1:45 1 minute, 45 seconds 26 earning call. We sincerely appreciate your continued trust and confidence in AG logistic. Your support has been 1:53 1 minute, 53 seconds significant in shaping our journey from a single client startup in 2010 to a leading multimodel logistic solution 2:01 2 minutes, 1 second provider with a strong pan India project and international connectivity. Our journey so far has been defined by 2:09 2 minutes, 9 seconds continuous innovation. We have entered into new verticals. adopted sustainable transportation models such as rail lead 2:18 2 minutes, 18 seconds movement alternative fuel fleet expanding our warehousing capabilities digital integration and depend 2:26 2 minutes, 26 seconds relationship with market clients across FMCG consumer durable heavy commodities such 2:33 2 minutes, 33 seconds as steel cement chemical pharmaceutical PSR automotive and other key industries 2:41 2 minutes, 41 seconds during Q326 Six. We continue to streng our operational and financial foundation. A key milestone this quarter 2:49 2 minutes, 49 seconds was the introduction of and expansion of our LG powered fleet reinforcing our commitment towards green 2:58 2 minutes, 58 seconds and cost efficient logistics. Further in this year become the first in India to 3:05 3 minutes, 5 seconds commercially deploy 25 ton uh electric motor Tata motor and Tata steel services for intra plant and short hall 3:13 3 minutes, 13 seconds deliveries with electric vehicle advancing our green logistic strategy and supporting data steel carbon 3:21 3 minutes, 21 seconds reduction goal we also secured a six-year lease contract from Indian railways for running a train from 3:29 3 minutes, 29 seconds Azarala Gojhati to Dilli and Ludana. We entered into contract with renowned atom company for supply chain management 3:38 3 minutes, 38 seconds services within their plant and warehouse for supply chain management without any capex and decent margin. I 3:46 3 minutes, 46 seconds would say this financial year is consolidation for the company and logistic industry which our industry affected by several factors. 3:57 3 minutes, 57 seconds We believe in continually and long-term goals. The company continued to expand its business made 65 cap capex till date 4:07 4 minutes, 7 seconds in this year. We believe next financial will be very good for the company as well as start getting benefit of the 4:15 4 minutes, 15 seconds capex with done in this year by the company for the next financial year. 4:21 4 minutes, 21 seconds Also the Indian logistic industry continues to undergo structural transformation driven by sustained 4:28 4 minutes, 28 seconds policy support infrastructure expansion and increasing formulation and supply chains. In the union budget of 2627 the 4:37 4 minutes, 37 seconds government in of India has proposed a record capital expenditure outlay approximately 12.2 lakh cr reframing its 4:47 4 minutes, 47 seconds infrastructure growth strategy. The continued enhance on the multimodal connectivity, freight efficiency 4:56 4 minutes, 56 seconds infrastructure development. It is expected to improve transit time, enhance asset utilization, better 5:05 5 minutes, 5 seconds utilization of the asset and reduce overall loit cost across the country. 5:12 5 minutes, 12 seconds We are very much hope that uh in coming years we will grow uh as but as we have 5:19 5 minutes, 19 seconds grown in last uh our 10 years and I would now like to invite our CFO to take through the detail financial performance of the quarter. Thank you. 5:32 5 minutes, 32 seconds Uh thank you Sanjay sir and good morning investors. 5:36 5 minutes, 36 seconds Uh now coming to the uh financial performance we are pleased to report a stable performance for the third quarter 5:43 5 minutes, 43 seconds and 9 month period ended 31st December 25. So financial year 26 during Q3 at uh 5:51 5 minutes, 51 seconds financial year 26 we recorded revenue from operations of 134.08 K with aa 5:57 5 minutes, 57 seconds margin of 27.20 cr and aa margin of 20.29%. 6:05 6 minutes, 5 seconds PAT stood at 5.40 crores with PAT margin of 4.030 uh%. 6:13 6 minutes, 13 seconds For the 9 month period, we achieved revenue from operations of 402.13 6:20 6 minutes, 20 seconds crit of 77.73 cr with a healthy margin of 19.33%. 6:28 6 minutes, 28 seconds And fat of 15.46 cr with fat margin 3.84% 84% overall. These numbers reflect 6:36 6 minutes, 36 seconds the resilience of our integrated multiodern logistic and our continued focus on execution excellence across 6:45 6 minutes, 45 seconds transportation, warehousing, rail and cold scale segment. Going forward, our 6:52 6 minutes, 52 seconds focus remains on calibrated growth through network expansion, technology integration, lead modernization, 7:00 7 minutes strategic partnership, prudent capital allocation. We are confident that our asset light approach, integrated 7:08 7 minutes, 8 seconds services offering and sustainable le initiative will enable us to create long-term value for all stakeholders. 7:17 7 minutes, 17 seconds Thank you once again for your continued support. Over to Sanjay 7:32 7 minutes, 32 seconds sir. Yeah. Uh can we open the floor for questions? Yes. 7:41 7 minutes, 41 seconds Thank you very much. We will now begin with a question and answer session. 7:46 7 minutes, 46 seconds Anyone who wishes to ask a question may press star and one on the touchstone telephone. 7:53 7 minutes, 53 seconds If you wish to remove yourself from the question queue, you may press star and two. Participants, you are requested to use handsets while asking a question. 8:04 8 minutes, 4 seconds Ladies and gentlemen, we will wait for a moment while the question to assemble. 8:12 8 minutes, 12 seconds Participants, you may press star one to ask a question. 8:20 8 minutes, 20 seconds We have the first question from the line of Abhishek Sharma from Sharma Investment. Please go ahead. Hello. Good morning sir. 8:29 8 minutes, 29 seconds Yes, good morning sir. 8:32 8 minutes, 32 seconds Uh sir like which segment is like currently the most profitable for us from the like liquid logistics or cold 8:39 8 minutes, 39 seconds chain logistics? So which is like the most profitable? Most profitable. 8:44 8 minutes, 44 seconds Yeah. Actually uh in our we are doing business in three four segment. One is our old old legacy business of the 8:52 8 minutes, 52 seconds freight transportation by road and now we are uh entering into the liquid logistics and cold chain. Uh definitely 9:01 9 minutes, 1 second the profit margin and less competition in the liquid logistics and cold chain. 9:07 9 minutes, 7 seconds So now we are trying to uh we have brought two trains uh from imported uh 9:14 9 minutes, 14 seconds import of banker which we service are liquid logistics and uh coin business is also increasing which will give us a more uh increase our uh profitability. 9:27 9 minutes, 27 seconds Okay. And like how are we planning to scale them for the companies? 9:33 9 minutes, 33 seconds Yeah, because now in uh uh in India cold chain is a huge demand because earlier 9:40 9 minutes, 40 seconds uh lot of uh material is moving in the dry vehicles and uh because of the uh 9:47 9 minutes, 47 seconds growing country lot of uh like uh uh uh fruit, vegetables, chocolates and uh uh 9:56 9 minutes, 56 seconds many many things are QSR items which we are doing uh ice cream these are thing 10:02 10 minutes, 2 seconds will product, di etc. These are packing material moving from here and there and uh there is a huge demand and as of now 10:12 10 minutes, 12 seconds we have total around 920 vehicles. So out of that around 450 vehicles we are 10:18 10 minutes, 18 seconds in the cold chain. So uh because it's this business can be do only with our own capex only. So gradually we are 10:26 10 minutes, 26 seconds increasing and this year uh next year we are trying to uh add around 200 vehicles 10:33 10 minutes, 33 seconds and uh uh after that we will get more uh milk dairy product fruit vegetables and 10:41 10 minutes, 41 seconds uh chocolate business in the supply chain and liquid logistics also uh two bigger plant jumbo plant is coming by 10:50 10 minutes, 50 seconds Reliance and Adani group and uh there is a huge demand and only three four service provider is there in India as of 10:59 10 minutes, 59 seconds now. So we are one of them and uh uh we are planning to make five six train next 11:05 11 minutes, 5 seconds year uh for this uh liquid logistics. So this is a uh good business in logistics 11:12 11 minutes, 12 seconds industry and better margins and sir on warehousing and what is our 11:18 11 minutes, 18 seconds current util capacity utilization there it is 100% only so we are in warehousing 11:26 11 minutes, 26 seconds we are using uh two type of model one is our own warehouse and one is a lease model so on warehouse uh we have around 11:35 11 minutes, 35 seconds 2.25 25 lakh square ft² that is situated in Goa, Messur, Agatala and another uh 11:42 11 minutes, 42 seconds warehouses we are in Kajabad, Panipat uh these are the lease model. So we are taking on lease and uh giving to the 11:50 11 minutes, 50 seconds customer on lease along with the uh value added services. So all the services at both the warehouse, four 11:58 11 minutes, 58 seconds five warehouses we are providing our own and uh now we have last year we have been allotted a land in uh Odisa and uh 12:08 12 minutes, 8 seconds now we are talking to the Gojhati and Patma also. So as of now we are managing 12:14 12 minutes, 14 seconds around 9 lakh square and uh our target for next year is around 15 lakh square. 12:20 12 minutes, 20 seconds Five lakh square is coming up in Kohjhati and Patna. So these are under uh discussion with the government that 12:27 12 minutes, 27 seconds uh uh two three lands we are taking from the industries department of the concern 12:33 12 minutes, 33 seconds state and uh these are developing as per the customer requirement and how are margins in this uh warehousing segment? 12:44 12 minutes, 44 seconds It's a margin is better compared to the uh truck business but uh 9 lakhs we are 12:51 12 minutes, 51 seconds already have. So because this is a one time capex investment later on there is no expenses from our side. So we are 12:58 12 minutes, 58 seconds getting margin on each and every services we are providing. We are providing manpower. We are providing security. We are providing rack uh rack 13:07 13 minutes, 7 seconds placement in the warehouse and uh warehouse management supply chain management also inventory management. So 13:14 13 minutes, 14 seconds all these sectors we are getting the uh profit margin over and above the investment. So one time investment and 13:22 13 minutes, 22 seconds uh more or less our uh uh investment which we did we'll get back in 10 years 13:28 13 minutes, 28 seconds and uh 9 to 9 years actually and uh margin is around 25 to 30%. 13:36 13 minutes, 36 seconds Okay. 25 to 30. Okay great sir. So one last because yeah continue. 13:47 13 minutes, 47 seconds Yes sir. 13:49 13 minutes, 49 seconds Yeah. Yeah. So this is planning to add uh five lakh squaret in 20 by 27 in next one year or so. 13:58 13 minutes, 58 seconds Okay. Okay sir. One last question. As the global equity markets are quite volatile right now. So there is a clear 14:07 14 minutes, 7 seconds like uh direction in the stock price across uh industry. So logistics is more exception to that. 14:14 14 minutes, 14 seconds So how should like shareholders think about companies stock performance over uh like let's just say next three four 14:21 14 minutes, 21 seconds years like for a long term how should we think about it? 14:26 14 minutes, 26 seconds Yeah, you know the company was established in 2010 uh with the business of around 5 cr and now we are touching 14:33 14 minutes, 33 seconds around 5 550 560 cr and uh uh we are up upgrading ourself according to the 14:41 14 minutes, 41 seconds market requirement. So as and when now is market is asking for the uh alternative fuel train movement liquid 14:50 14 minutes, 50 seconds logistics supply chain management and uh uh trucking business is also there. So 14:56 14 minutes, 56 seconds at AV uh I'm having experience of more than around 30 uh 35 years. So uh we 15:04 15 minutes, 4 seconds know the customer and that is the our strength what is the customer requirement. So if we do uh business 15:12 15 minutes, 12 seconds according to the customer requirement so we'll sustain and grow according to the customer because as of now our all the 15:19 15 minutes, 19 seconds customers are FMCG and market customers which they are growing around 7 to 8% year-on-year basis and uh uh because of 15:28 15 minutes, 28 seconds the many changes GST etc uh last year was little 15:36 15 minutes, 36 seconds but the this market is stable now and the international market uh and the US 15:42 15 minutes, 42 seconds deals etc. uh overall market is down but I feel that over a period of time it will come back and uh uh companies 15:51 15 minutes, 51 seconds growing and uh country is growing so huge demand is there and logistic business government has given the budget 15:57 15 minutes, 57 seconds of uh 12 lakh cr so a lot of uh this uh road conditions are better and uh 16:06 16 minutes, 6 seconds highways are uh constructed by the uh government and uh uh our uh we are trying to reduce the cost of our 16:14 16 minutes, 14 seconds operation and uh we are also uh working on uh using our asset better utilization 16:22 16 minutes, 22 seconds of our asset sweating of asset so that uh because uh there are two type of cost in logistics. One is the uh fixed cost 16:31 16 minutes, 31 seconds another is the variable cost. Variable cost will be always increase but we can 16:37 16 minutes, 37 seconds uh manage our uh fixed cost. For example, if our vehicle is running 7,000 16:43 16 minutes, 43 seconds kilometer and our cost is uh 70,000. So 10 rupees per kilometer and whereas if 16:50 16 minutes, 50 seconds we able to run my vehicle at 9,000 kilometer then my cost will reduce to 8 rupees per kilometer. So that is the uh 16:59 16 minutes, 59 seconds strategy we are following to in uh run by more running in the vehicle so that uh it will benefit to increase the profitability. 17:10 17 minutes, 10 seconds Okay. Okay. That is all from Thank you. 17:15 17 minutes, 15 seconds Thank you. We will take the next question from the line of Pria Jen from Green Capital. Please go ahead. 17:23 17 minutes, 23 seconds Hello sir, I have two questions. One is on capex. So what is our budget for 27 for capex and what returns do you project on incremental assets? 17:34 17 minutes, 34 seconds So we are adding uh the fleet and capex according to the customer requirement 17:40 17 minutes, 40 seconds because uh just as our customers are uh increasing their business by 10% or 7% 17:48 17 minutes, 48 seconds so we are adding uh 7 to 8% business we will get our from our existing client and uh around 7 8% or 10% will come with 17:57 17 minutes, 57 seconds the uh additional client and also what is current fleet utilization and how do you plan to improve it? 18:07 18 minutes, 7 seconds Yeah, my my fleet utilization is around 97 to 98%. Because uh uh few vehicles 18:14 18 minutes, 14 seconds are always in breakdown out of 900 vehicle we have. So around 20 30 vehicles is maintenance and some 18:23 18 minutes, 23 seconds accident cases. So motor more or less around 70 uh 98% vehicles are on road only uh daily basis. 18:34 18 minutes, 34 seconds That's good to hear you sir. Also uh one last thing like you know like logistic is booming and there's a lot of budge 18:42 18 minutes, 42 seconds going around larger industry and uh we are sitting at a market cap of around 200 K. So how do you see this valuation going up in next 3 to 5 years? 18:55 18 minutes, 55 seconds Yeah, we are doing hard working and trying my best to increase the business and uh uh in different different segment 19:03 19 minutes, 3 seconds and uh like cold chain, supply chain management, rail business. So overall uh 19:10 19 minutes, 10 seconds we are uh definitely uh 15 to 20% uh growth we are expecting year only 19:17 19 minutes, 17 seconds business. So uh when the actually overall market is uh we have discussed earlier that overall market is uh down 19:26 19 minutes, 26 seconds so because of some internal international policies etc. So over a period of time it will get corrected 19:36 19 minutes, 36 seconds fair and I'm looking forward to the updates. Thank you for taking 19:43 19 minutes, 43 seconds Thank you. We have the next question from the line of Mahade from BY Capital. Please go ahead. 19:51 19 minutes, 51 seconds Uh yes, can you hear me? Yes, you're audible. 19:56 19 minutes, 56 seconds Uh yeah. Uh so uh I wanted to know like as we have seen uh the company filing uh 20:03 20 minutes, 3 seconds company has expanded its field size and services like revenue growth uh but the revenue growth has been modded. So what 20:12 20 minutes, 12 seconds specific uh client wins or contracts will drive 15% plus growth in FY27 as 20:20 20 minutes, 20 seconds suggested by the man from very beginning. 20:25 20 minutes, 25 seconds Yeah actually uh in the business now so we are doing the business of uh two type of business one business is about on 20:32 20 minutes, 32 seconds fleet and another business we are doing with the uh market fleet. So market fleet uh margins are less and uh own 20:42 20 minutes, 42 seconds fleet is under control and if the market is vital then uh uh our profitability will become less than questionable. So 20:51 20 minutes, 51 seconds to avoid that uh we are now talking to the customer to with the own uh fleet 20:57 20 minutes, 57 seconds and uh uh this is increasing our uh capex but we are getting the long-term 21:04 21 minutes, 4 seconds contract of 5 to 8 years. So whichever vehicles we are providing to the uh customer with a long-term contract of 5 21:12 21 minutes, 12 seconds to 8 years and uh uh profitability and uh business commitment is uh uh good from customer. 21:24 21 minutes, 24 seconds So market vehicles we are using less now. So uh so maintain our uh uh business growth and uh uh profitability both. 21:36 21 minutes, 36 seconds Okay. Okay. Fine. And uh like uh can you also uh suggest a revenue target of the company for FI26? 21:47 21 minutes, 47 seconds FI26. FK FI26 is more or less actually stable only say uh we have touch 400 cr 21:56 21 minutes, 56 seconds now and 170 160 cr maybe another another merchant. So say it will be last last year was 550. Maybe 560 570 group. 22:08 22 minutes, 8 seconds Okay. 570. Okay. Okay. 22:11 22 minutes, 11 seconds Because we we what is happening that because of the GS GST changes and etc. 22:17 22 minutes, 17 seconds there were uh market was little bit up and down but now it is stable and uh we are working hard towards uh increasing 22:26 22 minutes, 26 seconds the top line and uh maintaining the bottom line also. 22:32 22 minutes, 32 seconds Okay. Okay. Thank you for answering. 22:38 22 minutes, 38 seconds Thank you. We have the next question from the line of Vidi Jen from Phoenix Capital. Please go ahead. 22:46 22 minutes, 46 seconds Hello. Yeah. Yeah. Hi sir. 22:50 22 minutes, 50 seconds A could you please share the current capacity utilization across uh your railroads like specifically what 22:57 22 minutes, 57 seconds percentage of your rack capacity is currently deployed versus available? 23:04 23 minutes, 4 seconds So ma'am uh the rail capacity which we are using like uh we are having one route from Delhi to Bangalore and 23:12 23 minutes, 12 seconds Bangalore to Delhi. So Delhi Bangalore is around more 105%. 23:18 23 minutes, 18 seconds And uh 105% means uh we are sending the material from one place to another place and from another place to final 23:26 23 minutes, 26 seconds destination also we are sending hence it is be becoming 105%. 23:31 23 minutes, 31 seconds But uh sometimes in the return load there are uh less loads and our rates are decided according to the uh 23:40 23 minutes, 40 seconds uh load availability like uh Delhi Gojhati load is there and Gojhati Bindi load is very less. So we see the revenue 23:48 23 minutes, 48 seconds of the train which we are paying to railways and what we are getting. So if it is see Delhi Bangalore route it is 23:56 23 minutes, 56 seconds 95% 5% less and in case of uh Delhi Gohhati it is going it is 110% while coming it is only 20%. 24:10 24 minutes, 10 seconds So but we are taking the freight from the customer uh on the Delhi Guhati road 24:17 24 minutes, 17 seconds more than 100 200% so that our uh revenue will complete and we should not have any loss in the transaction. 24:26 24 minutes, 26 seconds You understood ma'am? Okay. Hello. So uh hello. You understood or not? 24:34 24 minutes, 34 seconds Uh yes actually. So uh like like how many uh like do you have any additional 24:41 24 minutes, 41 seconds routes or rags which can be added without significant infrastructure bottlenecks? 24:48 24 minutes, 48 seconds Yeah. Yeah. We are uh we are talking to railways uh railways for the new routes like uh Delhi Kolkata we have just uh 24:56 24 minutes, 56 seconds recently launched uh and uh we have not taken the entire train we have taken the small quantity of the 100 tons per train 25:06 25 minutes, 6 seconds and uh like Ahmedabad, Kolkata because uh what is happening ma'am this the northeast and east India there is 25:14 25 minutes, 14 seconds productions are less so production in Maharashtra, Gujarat and north India is very high. So all the 25:21 25 minutes, 21 seconds consumable items are moving from north and west to east and northeast. So there 25:28 25 minutes, 28 seconds is huge material is going over all the states. Hence the our return load is empty. So we are talking around another 25:36 25 minutes, 36 seconds two three uh routes uh which is like uh uh Ahmedabad to Bjhati and uh Delhi to 25:43 25 minutes, 43 seconds Bjhati, Delhi to Kolkata. So, so gradually uh now railway is launching because railway is also very aggressive 25:50 25 minutes, 50 seconds for the developing their business. So, now few trains are expected in next 6 month uh which may use on a 30% 40% 25:59 25 minutes, 59 seconds basis. Uh we will not take the 100% train uh in our day this time because uh 26:06 26 minutes, 6 seconds it's a uh huge infrastructure is required for this. 26:14 26 minutes, 14 seconds Okay. So uh my last suggestion would be like how does this mix of owned versus partner vehicles improve flexibility 26:23 26 minutes, 23 seconds during demand cycles and this is for the can you please repeat again ma'am 26:30 26 minutes, 30 seconds disturbance okay so like how does the mix of own versus partner vehicle like fleets okay 26:39 26 minutes, 39 seconds I'm talking about fleets like improve flexibility during the demand cycle Okay. 26:45 26 minutes, 45 seconds Yeah. So like uh for example as of now we are around 40 45% with on on fleet and 55% is the market fleet. 26:58 26 minutes, 58 seconds So uh now for example now the holi festival is coming up. So there will be huge demand uh from the customer side in 27:06 27 minutes, 6 seconds Holi and uh drivers may be on leave or uh uh huge demand from the many many other clients. So market will go up rate 27:16 27 minutes, 16 seconds will increase and during that time we are also asking the customer to increase our rate as a special case for a uh uh 27:25 27 minutes, 25 seconds one week time like uh 28th February to 7th of March. So in this scenario what 27:32 27 minutes, 32 seconds we are doing we use trains and uh we will run our vehicle more and giving 27:38 27 minutes, 38 seconds incentive to the drivers to provide services during this tough time like we 27:45 27 minutes, 45 seconds are doing business in uh Kolkata. So Kolkata Bihar driver will go away from 27:51 27 minutes, 51 seconds holy festival. So we ensure that all the drivers will stay and we uh put mix uh 28:00 28 minutes mixed type of driver from other state also and uh we are giving incentive to the driver to provide service during the festival season. 28:12 28 minutes, 12 seconds Uh okay uh thank you sir. That's all from my side. Thank you. 28:18 28 minutes, 18 seconds Thank you. And we have the next question from the line of Kat Sha from Shah Ventur. Please go ahead. 28:26 28 minutes, 26 seconds Yeah. Hi. Uh good afternoon sir. Yeah. Hi sir. Good afternoon sir. 28:31 28 minutes, 31 seconds Uh sir my question is uh how does the management see the company's revenue growth trajectory over the next uh 3 to four years. 28:42 28 minutes, 42 seconds Yeah, it is already discussed that uh if you see organic growth it is around 15 to 20% yearon-year basis. So sometimes 28:51 28 minutes, 51 seconds uh if you see in 22 23 there was covid time companies stable and there is no increase. So overall increase around 15 28:59 28 minutes, 59 seconds to 20% year on year because logistically service industry. 29:07 29 minutes, 7 seconds So service industries may we need to uh keep watch on our margins and other things also because otherwise uh if we 29:16 29 minutes, 16 seconds took some wrong decision then immediately our profit will uh uh burn there and reduce that. 29:26 29 minutes, 26 seconds Okay. Okay. Got it. 29:28 29 minutes, 28 seconds To maintain the maintain the profitability and sustainability and we we uh keep watch on our all the 29:35 29 minutes, 35 seconds businesses. If some businesses is not giving profit then we stop that business and adding new business during that time 29:46 29 minutes, 46 seconds because our total logistic business is in demand and supply cases only. So somewhere demand is increased then cost is increasing. If demand is less then 29:55 29 minutes, 55 seconds cost is decreasing. So uh like next two month is very very crucial for us uh because there will be huge demand in 30:02 30 minutes, 2 seconds view of our year end and uh uh coming time. 30:11 30 minutes, 11 seconds Uh sir uh also I want to know about the business verticals like uh which business vertical uh do you believe like 30:19 30 minutes, 19 seconds uh will drive the next phase of growth for the company? 30:24 30 minutes, 24 seconds Actually now the alternative fuel is the main uh business in the industry. The customers are looking after because they 30:31 30 minutes, 31 seconds are under tremendous pressure from the government side and uh uh business growth will come with the uh big 30:39 30 minutes, 39 seconds customer only. So now we have changed the strategy. 30:43 30 minutes, 43 seconds We are in touch with the big book clients who are spending more than 5,000 cr 3,000 cr in logistics and uh uh this 30:52 30 minutes, 52 seconds growth will come from the uh s uh sustainable uh logistics which is green logistic electric vehicle and LG vehicle and CG vehicles. 31:05 31 minutes, 5 seconds So the next five years uh there will be huge change in the industry. Digital vehicles will very less now and uh uh 31:13 31 minutes, 13 seconds production also reduced of diesel vehicle and uh lot of demand from the customer side for this uh sustainable 31:21 31 minutes, 21 seconds vehicle of LG hydrogen hydrogen to be ion but uh electric and uh LG CNG has 31:29 31 minutes, 29 seconds came up very well and cost of operations cost of cost of 31:37 31 minutes, 37 seconds operations are also uh little less compared to the digital writer. 31:44 31 minutes, 44 seconds Okay, got it sir. Got it. Uh yes uh thank you so much sir for giving uh the insight for the business. Uh yes uh yeah that's it from my side sir. Thank you. 31:55 31 minutes, 55 seconds Thank you. 31:58 31 minutes, 58 seconds Thank you. Do you have the next question from the line of Sakshi Shandai from Shaha Consultancy Limited. Please go ahead. 32:10 32 minutes, 10 seconds Yeah. Hello sir. Yeah. 32:15 32 minutes, 15 seconds Um I have couple of questions. So my first question is what is the current overall capacity utilization across uh your multi-model operations? 32:28 32 minutes, 28 seconds It is around 95 to 97 98%. 32:32 32 minutes, 32 seconds Okay. And uh how much headrooms exist within your existing infrastructure to support the near-term growth? 32:45 32 minutes, 45 seconds Then so can you repeat please? 32:49 32 minutes, 49 seconds How much headrooms exist within your existing infrastructure? 32:56 32 minutes, 56 seconds Yeah, within infra within uh infrastructure there is the growth is around 7 to 8%. But uh we are adding our new uh business line and uh capex also. 33:09 33 minutes, 9 seconds So overall growth we are uh accepting around 15 to 20%. 33:15 33 minutes, 15 seconds Okay. Uh and so uh at what utilization level do you start uh witnessing strong operational leverage benefits? 33:26 33 minutes, 26 seconds Limit benefits will be like uh for example if our business will grow by 15%. So our uh expenses will not 33:35 33 minutes, 35 seconds increase uh in the same percentage. So uh as and when business will incro 33:41 33 minutes, 41 seconds increase. So uh our overall p will improve uh once we uh increase the uh 33:48 33 minutes, 48 seconds top line because uh by same team and same infra we will increase the business and uh that will help us to improve the overall profitability. 34:00 34 minutes Okay. 34:02 34 minutes, 2 seconds Uh my last question is uh how do you plan to optimize the asset turns across the rail, roads and warehousing? 34:14 34 minutes, 14 seconds Yeah, we are uh talking to the customer for providing the 4PL now 5PL services which is now warehousing, warehouse 34:22 34 minutes, 22 seconds supply chain management, primary transportation and secondary transportation. So if we got all the 34:28 34 minutes, 28 seconds five things on one table then uh a business comes to us and uh better asset 34:36 34 minutes, 36 seconds utilization and thus the overall improvement in the uh business and uh profitability. So this will be help us 34:44 34 minutes, 44 seconds to increase the business and profit both. Okay. Thank you so much. 34:55 34 minutes, 55 seconds Thank you. We have the next question from the line of Shabbanker Oja from SK's Capital. Please go ahead. 35:08 35 minutes, 8 seconds Shanker, please proceed with your question. 35:18 35 minutes, 18 seconds Shanker, please proceed with your question. 35:24 35 minutes, 24 seconds Did you not respond? We will take the next participant. 35:30 35 minutes, 30 seconds We have the next question from the line of Vicas Warma, an individual investor. Please go ahead. 35:38 35 minutes, 38 seconds Hello. Yes sir. 35:50 35 minutes, 50 seconds Thank you. for months. 36:09 36 minutes, 9 seconds 80 cr 80. 36:23 36 minutes, 23 seconds market. 36:58 36 minutes, 58 seconds huge investment or high tax. 65 to 70. 37:06 37 minutes, 6 seconds Soare. 37:18 37 minutes, 18 seconds So we are also uh talking to the customer for providing warehousing also that is also fixed business. 37:30 37 minutes, 30 seconds Income. 37:52 37 minutes, 52 seconds You're right. 38:01 38 minutes, 1 second Can we do a different company or can we do something 38:16 38 minutes, 16 seconds I think 38:35 38 minutes, 35 seconds CCX BC. next year. 39:03 39 minutes, 3 seconds But alternative fuel chain, warehousing, supply chain management. 39:36 39 minutes, 36 seconds Because like food grain 39:51 39 minutes, 51 seconds and food grain and this will help us a lot to improve 39:59 39 minutes, 59 seconds our business in all the sectors in commodities. 40:07 40 minutes, 7 seconds customer. 40:50 40 minutes, 50 seconds We are doing very hard. 41:17 41 minutes, 17 seconds perform 41:36 41 minutes, 36 seconds at least. 41:40 41 minutes, 40 seconds Best of luck. Thank you sir. Thank you sir. 41:46 41 minutes, 46 seconds Thank you ladies and gentlemen. We will take that as the last question and with that concludes the question and answer 41:53 41 minutes, 53 seconds session. I now hand the conference over to Mr. Harshel Ganchani for closing comments. Sach over to you sir. 42:02 42 minutes, 2 seconds Yes. Thank you everybody for joining the conference call of a If you have any queries, you can write 42:08 42 minutes, 8 seconds us at research advisor.com. Once again, thank you everyone for joining the conference call. 42:17 42 minutes, 17 seconds Thank you very much members of the management. Thank you sir. Thank you ma'am. 42:23 42 minutes, 23 seconds Thank you sir. On behalf of Logistics Limited that concludes this conference. 42:29 42 minutes, 29 seconds Thank you all for joining us today and you may now disconnect. Good. Thank you. Thank you. Thank you. Thank you.