AVG Logistics Limited — Q4 FY26

AVG Logistics Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=UPJ5qfx6Czk Published: 5 hours ago

0:01 1 second Ladies and gentlemen, good day and welcome to AVG Logistics Limited Q4 FI26 and FI26 Reserve Conference call hosted 0:10 10 seconds by Kina Advisor. This conference call may contain forward-looking statement about the company which are based on the beliefs, opinions and expectation of the 0:18 18 seconds company as on date of this call. This statement are not the guarantee of future performance and involve risk and uncertainties that are difficult to 0:26 26 seconds predict. As a reminder, all participant line will be in the listen only mode and there will be an opportunity for you to ask question after the presentation 0:34 34 seconds conclude. Should you need assistant during the conference call, please signal an operator by pressing star then zero on your touchstone phone. Please 0:42 42 seconds note that this conference is being recorded. Also, please note that today's meeting is expected to last 0:49 49 seconds approximately 40 to 45 minutes including the discussion and Q&A session. I now hand the conference over to Mr. Hershel 0:57 57 seconds Ganchshani from Kin Advisor. Thank you and over to you Hershel. 1:02 1 minute, 2 seconds Yes, thank you. Thank you everyone um for joining the conference call. On behalf of Kan Advisor, I welcome you on 1:09 1 minute, 9 seconds on the conference call of AVG Logistic Limited for U4 F26 and F26. From the management team, we have Mr. Sanjay Gupta, managing director and CEO. 1:21 1 minute, 21 seconds We have Mr. Rajes Roya, Chief Financial Officer. Now I hand the call to Mr. 1:27 1 minute, 27 seconds Sanjay Gupta sir. Over to you. Thank you sir. 1:33 1 minute, 33 seconds Uh good afternoon esteemed investors and warm to Agric Limited Q4 26 earning 1:41 1 minute, 41 seconds call. We sincerely appreciate your continued trust and support as we continue to strengthen our position as a 1:49 1 minute, 49 seconds technologydriven integrated multimodel logistic solution provider. ABC logistics is a leading 1:57 1 minute, 57 seconds integrated logistic solution provider in India offering end to end supply chain services across road rail warehousing 2:05 2 minutes, 5 seconds cold chain liquid logistics third party logistics 3PL operations since our 2:12 2 minutes, 12 seconds inspection of 2010 we have built a strong Canadian network embraing over 70 2:19 2 minutes, 19 seconds branches more than 3,000 owned and hired vehicles over 7.41 lakh square ft² of 2:27 2 minutes, 27 seconds warehousing space as a diversified customer base spanning FMPG, food and 2:33 2 minutes, 33 seconds beverage, cement, retail, telecom, steel, automotive, pharma and industrial 2:40 2 minutes, 40 seconds sector. Our integrated multimodal capabilities continue to enable efficient, reliable and cost effective 2:47 2 minutes, 47 seconds logistic solution for customer across India. 2:51 2 minutes, 51 seconds Operationally, we continued to execute on our strength growth initiative during the quarter. We strengthen our 2:59 2 minutes, 59 seconds multimodal capability through our entry into the railbased liquid logistics segment, expanding into a high growth 3:06 3 minutes, 6 seconds market and reinforcing our ability to offer safe, efficient and sustainable transport solution for the chemical and 3:16 3 minutes, 16 seconds allied industries. We also advanced our infrastructure expansion with the strategic acquisition of 3:24 3 minutes, 24 seconds land personel in Himachel to a place called Taliwal for warehouse parach. 3:30 3 minutes, 30 seconds This investment will support future warehousing and logistic capacity, enhance our regional presence in north India, improve operational efficiencies 3:39 3 minutes, 39 seconds and strengthen relationship with key customers. 3:42 3 minutes, 42 seconds Further we reinforce our commitment to sustainable logistic through our collaboration with national India and 3:49 3 minutes, 49 seconds Ashok land for deployment of PNG powered vehicle. This dedicated green logistic corridor not only reduce carbon emission 3:58 3 minutes, 58 seconds but also improve operational efficiency and a long contract with the customer reflecting our continued focus on 4:06 4 minutes, 6 seconds building environmentally responsible and future ready logistic solution. 4:12 4 minutes, 12 seconds Also the Indian logistic industry continue to benefit from strong structural support driven by sustained 4:20 4 minutes, 20 seconds government investment in infrastructure, increasing merry model connectivity, formalization of supply chain and the 4:27 4 minutes, 27 seconds continued implementation of initiative under the national logistic policy and the PMIS. 4:36 4 minutes, 36 seconds These developments are expected to improve create efficiency, reduce logistic cost and create significant 4:43 4 minutes, 43 seconds opportunities for integrated logistic players with nationwide capabilities. 4:49 4 minutes, 49 seconds Our multimodel strategy remains central to our long-term growth road map by effectively integrating road vehicles 4:58 4 minutes, 58 seconds cold coal chain and supply specialized logistic solution. We aim to deliver greater efficiency 5:06 5 minutes, 6 seconds lower transit cost and improve reliability of our customers. The recent expansion into rail based liquid 5:13 5 minutes, 13 seconds logistics further strength this integrated approach and open new avenue for growth in specialized wastment. 5:22 5 minutes, 22 seconds Sustainability continues to be a integral part of our business strategy along with the deployment of cleaner 5:30 5 minutes, 30 seconds fuel vehicles. We are also continuously evaluating initiatives that improve fuel efficiency, optimize vehicle 5:38 5 minutes, 38 seconds utilization, reduce carbon emission and promote environmentally responsible logistic practice. We believe that 5:46 5 minutes, 46 seconds sustainable operation not only contribute positively to the environment but also create long-term operational commercial advantage for the company. 5:57 5 minutes, 57 seconds This year we are focusing on asset uh asset pract. 6:03 6 minutes, 3 seconds So we are trying to improve the uh running uh condition of the vehicle so 6:10 6 minutes, 10 seconds that we can make uh take maximum revenue by asset of our uh sweat of our asset. 6:19 6 minutes, 19 seconds Looking ahead with the global economic uncertainties and involving market condition may continue to create 6:26 6 minutes, 26 seconds short-term short-term challenges. The long-term fundamentals of the Indian logistic sector remain highly increasing. Rising manufacturing 6:34 6 minutes, 34 seconds activity, increasing consumption, continued growth in e-commerce, government-led infrastructure development and the ongoing shift 6:43 6 minutes, 43 seconds towards organized logistic continue to provide a strong foundation for sustain sustained industry growth. 6:52 6 minutes, 52 seconds With our establishment network, nationwide network, diversified service portfolio, experienced management team 7:00 7 minutes and disciplined approach towards execution, we remain confident of delivering constant growth while 7:07 7 minutes, 7 seconds maintaining financial produce of the operational efficiency. We will continue to pursue opportunity that enhance 7:15 7 minutes, 15 seconds shareholder value, strengthen customer relationship and refers APG logistic position as one of the India's leading 7:23 7 minutes, 23 seconds integrated multimodel logistic solution provider. 7:27 7 minutes, 27 seconds I would like to now invite our CFO to take through detail financial performance for the quarter. 7:36 7 minutes, 36 seconds Thank you. 7:41 7 minutes, 41 seconds Hi uh good afternoon investors beside Aish Rohila ch key chief financial officer with uh AVG logistics 7:49 7 minutes, 49 seconds Limited. Coming to the financial performance we are pleased to report a strong moderate 7:58 7 minutes, 58 seconds uh financial year 26 reflecting healthy growth across both revenue and profitability. 8:04 8 minutes, 4 seconds During Q4, FY263 recorded total revenue of 176.61 K registering a growth of 8:14 8 minutes, 14 seconds 19.4% yearonear. AITA stood at 34.72 K 8:21 8 minutes, 21 seconds increasing 45.21% yearonear while AITA margin expanded by 8:27 8 minutes, 27 seconds 349 point to 19.66% 66% profit after tax stood at 10.71 crores reflecting a 8:36 8 minutes, 36 seconds moderate growth of 104.78 uh year on year with pack margin improving by 252 basis to 6.06%. 8:47 8 minutes, 47 seconds For the full year financial year 26 we achieved total income of 582.48 8:54 8 minutes, 54 seconds crores representing a growth of 5.07% 07% yearonear. Avita increased to 112.45 9:04 9 minutes, 4 seconds crores up 14.27% year on year with AITA margin improving to 19.31%. 9:13 9 minutes, 13 seconds Profit after tax stood at 26.17 cr registering a healthy growth of 22.71%. 9:22 9 minutes, 22 seconds While pet margin expanded to 4.49%. 9:27 9 minutes, 27 seconds These results reflect our continued focus on operational excellence, prudent cost management and the strength of our integrated work model, logistic model. 9:40 9 minutes, 40 seconds I would also like to share a few thoughts on the direction in which the company is progressing. Over the past few years, our strategy has been 9:48 9 minutes, 48 seconds centered not only on expanding scale but also on improving the quality of our earning by increasing operational 9:57 9 minutes, 57 seconds efficiency, enhancing service offerings and building stronger customer relationship. We believe that 10:05 10 minutes, 5 seconds sustainable growth in the logistics sector is driven by discipline execution, operational excellence and 10:12 10 minutes, 12 seconds the ability to consistently deliver superior service levels. Accordingly, we continue to focus on improving 10:20 10 minutes, 20 seconds turnaround times, optimizing network utilization and strengthening our execution capability across all business 10:29 10 minutes, 29 seconds vertical. One of the key strength of AVG logistics continues to be our diversified business model. Our presence 10:38 10 minutes, 38 seconds across uh multiple logistics segment including transportation, multimodal logistics, 10:45 10 minutes, 45 seconds cold chain, warehousing, liquid logistics and value added supply chain solutions. 10:53 10 minutes, 53 seconds It reduces dependence on any single service line or customer segment. This diversification allow us to respond 11:02 11 minutes, 2 seconds effectively to changing market dynamics while providing customer with integrated logistics solutions through a single service platform. 11:12 11 minutes, 12 seconds We are also witnessing increasing demand from customer for customized and integrated supply chain solutions rather than standalone transportation services. 11:23 11 minutes, 23 seconds Large enterprises today are looking for logistics partners who can optimize their end to end supply chains improving 11:32 11 minutes, 32 seconds inventory management ensure timely deliveries and provide greater visibility across the movement of the goods. Our integrated services offering 11:41 11 minutes, 41 seconds supported by our nationwide network and experience operational team position us well to capitalize on the structural 11:51 11 minutes, 51 seconds shift in customers requirement. Another important area of focus is customer retention and valid care expansion. We 11:59 11 minutes, 59 seconds continue to work closely with our existing customers to identify new logistic requirement across different geographies and business verticles. 12:09 12 minutes, 9 seconds This approach has enabled us to strengthen long-term partnership while generating incremental business opportunities from our existing client 12:17 12 minutes, 17 seconds base. We believe that deep customer engagement remains one of the most effective drivers of profitable and 12:26 12 minutes, 26 seconds sustainable growth. Operational discipline continues to remain at the core of our business philosophy. We are 12:34 12 minutes, 34 seconds constantly evaluating opportunity to improve fleet productivity, reduce empty runs, optimizing fleet planning, enhance 12:44 12 minutes, 44 seconds warehouse productivity and improve asset utilization. These initiatives not only improve operating efficiency but also 12:52 12 minutes, 52 seconds strengthen our competitiveness in an increasingly dynamic logistic market. As 12:59 12 minutes, 59 seconds supply chains across India continue to become more organized, customers are increasingly prioritizing compliance, 13:07 13 minutes, 7 seconds safety standards, service reliability and technology enabled operations. While selecting logistics partner, EVG 13:17 13 minutes, 17 seconds logistics has consistently investing in building robust, operational processes, compliance framework and quality 13:25 13 minutes, 25 seconds standards with help which that help us maintain long-term relationship with leading domestic and multinational customers. 13:34 13 minutes, 34 seconds Going forward, we remain focused on expanding our presence in high growth sectors such as FMCG, food processing, 13:43 13 minutes, 43 seconds pharmaceuticals, chemicals, retail and industrial logistics. We also see meaningful opportunity emerging from the 13:52 13 minutes, 52 seconds government continued emphasis on manufacturing infrastructure, developing dedicated freight corridors, industrial corridors and multimodal logistics 14:01 14 minutes, 1 second parks. These structural developments are expected to create incremental demand for integrated logistics providers with 14:09 14 minutes, 9 seconds nationwide capability and diverse uh service offerings. Our capital allocation strategy continues to remain 14:17 14 minutes, 17 seconds broad and disciplined. He will collectively invest in expanding our logistic infra warehousing capacity, 14:25 14 minutes, 25 seconds specialized transport capabilities and technology platform while maintaining a balanced financial profile. Our 14:32 14 minutes, 32 seconds objective is to create scalable infrastructure that support future growth while generating healthy return on capital over the long run. 14:43 14 minutes, 43 seconds Overall, we remain confident in the long-term outlook for both the company and the Indian logistic industry. Our 14:50 14 minutes, 50 seconds strong customer relationship, diversified business portfolio, expanding infrastructure, experienced 14:58 14 minutes, 58 seconds leadership team and unwavering commitment to operational excellence provide a solid foundation for sustained 15:06 15 minutes, 6 seconds and profitable growth in the years ahead. 15:10 15 minutes, 10 seconds With these remarks, I would like thank you once again for your continuous 15:17 15 minutes, 17 seconds trust and support. We remain committed to delivering consistent performance and creating long-term value for all our 15:24 15 minutes, 24 seconds stakeholders. Thank you over to you uh her. 15:31 15 minutes, 31 seconds Thank you. Yeah, thank you so much sir. Ladies and gentlemen, we will now begin with the question and answer session. Anyone who 15:38 15 minutes, 38 seconds wishes to ask a question may press R and one on their touchstone telephone. If you wish to remove yourself from the 15:45 15 minutes, 45 seconds question queue, you may press R. And participants are requested to use handsets while asking a question. 15:53 15 minutes, 53 seconds Ladies and gentlemen, we'll wait for a moment while the question assembles. 16:05 16 minutes, 5 seconds Our first question comes from the line of Mayor Parit with Dana Ventures. Please go ahead. 16:16 16 minutes, 16 seconds Yeah. Hello. Can you hear me? 16:18 16 minutes, 18 seconds Yes sir, we can hear you. Please proceed ahead with the question. 16:22 16 minutes, 22 seconds Yeah. Uh so uh I just wanted to know like we have closed uh FI26 with a 16:28 16 minutes, 28 seconds revenue of 578 cr. So uh what revenue are we targeting for the next financial year? 16:38 16 minutes, 38 seconds Yeah, our uh focus is on achieving sustainable and profitable growth based on our 16:45 16 minutes, 45 seconds current order book customer pipeline and expansion is into new business segment. 16:50 16 minutes, 50 seconds We expect to deliver healthy double digit double digit revenue growth in FY27 16:57 16 minutes, 57 seconds and we are confident that our existing customer base and the new customers which we are identified are already in 17:06 17 minutes, 6 seconds pipeline along with the new business openity will support our growth during the year and uh more or less our 17:16 17 minutes, 16 seconds industry growth is around uh double digit in around 15 uh percent approximately 15 to 20%. So our target 17:24 17 minutes, 24 seconds is to achieve uh 15 to 20% growth in the next year. Okay, got it. 15 to 20%. 17:33 17 minutes, 33 seconds Uh like uh I also want to know what was the capex done by the company in pre uh this financial year and the project 17:42 17 minutes, 42 seconds projected capex for uh like FYI 27 and what will what will be the I will give 17:50 17 minutes, 50 seconds to my CFO. He will give to Yeah. Yeah. 17:59 17 minutes, 59 seconds uh capacity in the financial year 26 is uh 60 cr plus and uh the financial year 18:07 18 minutes, 7 seconds 27 we are also targeting 50 cr plus uh to have our growth income because we 18:15 18 minutes, 15 seconds need to place the uh additional vehicles and uh we add uh some new customer for long-term contact basis. So it's a very 18:24 18 minutes, 24 seconds regular feature for our industry to keep running our business with the uh modified and improved technology. So 60 18:34 18 minutes, 34 seconds cr is our uh this year and 50 cr plus we are targeting for this financial year. 18:42 18 minutes, 42 seconds Over to you sir. 18:47 18 minutes, 47 seconds Okay. Uh and uh can you also provide more details on uh rupees uh 100 cr capex plan? 19:00 19 minutes Yeah, basically the uh capex is done for the liquid logistics train we have started this financial year. One more uh 19:07 19 minutes, 7 seconds the rack we are targeting in FY27 and uh besides that we have added lots 19:14 19 minutes, 14 seconds of uh CNG, EV and LG vehicles which are sustainable as well as uh uh supporting 19:23 19 minutes, 23 seconds our uh zero emission. So besides that we are also adding some uh regular vehicles which is as for the requirement of the 19:31 19 minutes, 31 seconds customer. So around uh 100 plus we have added last year and 19:40 19 minutes, 40 seconds same we are targeting in the next year. 19:46 19 minutes, 46 seconds Okay. Okay. Got it. Thank you. Over to I'll have more. I'll come back in. 19:55 19 minutes, 55 seconds Thank you. Our next question come from the line of Sakshi Sinde from Sh Consultancy Limited. Please go ahead. 20:09 20 minutes, 9 seconds Sakshi, you may please proceed ahead with the question. 20:12 20 minutes, 12 seconds Yeah. Am I available? I Yeah. So a few questions with me. Uh 20:19 20 minutes, 19 seconds firstly on the revenue target. So are we expecting to achieve what is the revenue target we are expecting to achieve in next five financial years? 20:30 20 minutes, 30 seconds Next is five years. Yes. Yes. Correct. 20:36 20 minutes, 36 seconds Actually we have yesterday uh we have uploaded our vision of 2030 with a 1250 20:43 20 minutes, 43 seconds cr turnover and by 2030 we have made the vision like for next four years. 20:54 20 minutes, 54 seconds Okay. So surely I will go through it and uh if you talk about warehousing in warehousing whether we want to increase our income from warehousing segment also 21:02 21 minutes, 2 seconds or logistic will remain our main focus segment. 21:06 21 minutes, 6 seconds No no no total as a multimodal logistic service provider. We are dealing in the five segment of the transportation. One 21:14 21 minutes, 14 seconds is the uh road transportation another is the rate transportation. Third one is the cold chain. Fourth one is the warehousing and supply chain management. 21:23 21 minutes, 23 seconds Nowadays we are getting the business from the customer to maintain the supply chain within the their factory. And 21:30 21 minutes, 30 seconds fifth one is alternative fuel. Nowadays the customers are asking for electric vehicles, gas vehicles, CNG and LG. So 21:40 21 minutes, 40 seconds because of the war etc with CNG, LNG or uh pricing uh segments. So there is a 21:48 21 minutes, 48 seconds huge demand on the alternative fuel vehicle. So that uh dependency on the diesel uh will be less and they are sustainable and zero emission vehicles. 21:59 21 minutes, 59 seconds And the fifth one is our liquid logistics because liquid logistics business is which are little better 22:05 22 minutes, 5 seconds because of uh very few companies are into this business. Hence we have 22:12 22 minutes, 12 seconds entered into the last year and uh we grow uh in a uh manner. uh with the 8 10 by 2030. 22:26 22 minutes, 26 seconds Good to hear sir. Uh also uh in your previous call you have mentioned that we are providing the supply chain 22:33 22 minutes, 33 seconds management service also. Can you please give brief details on this and are we focusing on scale scaling up this or 22:41 22 minutes, 41 seconds this is a good margin has this is a good margin segment. 22:46 22 minutes, 46 seconds Yeah, it's a good segment because uh we are supplying the uh managing the uh their warehouse and uh business uh 22:55 22 minutes, 55 seconds movement, inventory movement etc. So margin is there but it is highly responsible work because earlier 23:03 23 minutes, 3 seconds companies appointing uh their team and nowadays they are giving to the 3PL companies. 23:10 23 minutes, 10 seconds Good to all the looking forward to your update. Thank you. 23:18 23 minutes, 18 seconds Our next question come from the line of Josh Agaral and individual investor. Please go ahead. 23:30 23 minutes, 30 seconds Yeah. Am I audible? Yes. Yes sir. 23:39 23 minutes, 39 seconds Uh Josh, please proceed with the question. We are not able to hear you. 23:47 23 minutes, 47 seconds Uh Josh, we are still not able to hear you. Hello. Yes, we can hear you. Please go ahead. Hello. 23:55 23 minutes, 55 seconds Yes. Yes. Yeah. Yeah. Yeah. Yeah. Yeah. 23:58 23 minutes, 58 seconds Uh yeah. Yeah. Thank you for the opportunity. So there is a significant uh increase in the disease world. So in 24:06 24 minutes, 6 seconds previous months so how that has impacted the uh business in future 24:17 24 minutes, 17 seconds can you repeat the question please? 24:19 24 minutes, 19 seconds Yeah. Yeah. I am asking for there has been a significant increase in the diesel prices uh the fuel prices. So 24:28 24 minutes, 28 seconds yeah, how that has impacted the business? 24:32 24 minutes, 32 seconds No no fuel prices uh as an very important cost and main cost in our 24:38 24 minutes, 38 seconds industry. But uh uh uh maximum customers contracts includes the fuel application flows. 24:47 24 minutes, 47 seconds So the all the contracts are having the rider and uh the percentage of the diesel consumption is mentioned in the 24:54 24 minutes, 54 seconds contract. So there is no much impact on us due to increase in due price. Uh we 25:02 25 minutes, 2 seconds are getting the uh increase from the customer as and when the digital increasing for few days we have to manage our own 25:10 25 minutes, 10 seconds but within a week time or 15 days time they are uh increasing our rates. 25:16 25 minutes, 16 seconds Okay. Okay. So what are our targets in green energy? So as we are investing in EV or CNG trucks. 25:24 25 minutes, 24 seconds Yeah. Sustainability is an important part of our long strategy. So we have 25:32 25 minutes, 32 seconds already starting uh buying the CNG vehicle, LMG vehicles and electric vehicle and uh customers are also uh 25:41 25 minutes, 41 seconds insisting us to deploy uh alternative fuel vehicles for which we are trying our level best but uh one uh one 25:50 25 minutes, 50 seconds condition is from our side we want a long-term contract because there is a huge investment in the uh EV and LG 25:59 25 minutes, 59 seconds vehicle. So whichever customer is providing us a long long-term contract of 3 to 5 years or 7 years we are uh 26:08 26 minutes, 8 seconds buying the vehicles and uh providing them for their services. 26:12 26 minutes, 12 seconds So we have a huge plan for investing in electric and CNG vehicle LMG vehicles. 26:19 26 minutes, 19 seconds Okay. Okay. And future future future fuel will be like alternative fuel only because uh ultimately we have to come 26:27 26 minutes, 27 seconds out from the diesel and diesel uh the very polluting and other things this EV 26:36 26 minutes, 36 seconds and LG vehicles are less polluting and emission. 26:40 26 minutes, 40 seconds Okay. Uh sir uh but do you think that the EV trucks will be sustainable in 26:47 26 minutes, 47 seconds future? Suppose if it is a long distance uh but if the distance is long suppose maybe 26:56 26 minutes, 56 seconds yeah as of now the uh their range is around 150 to 200 km in one charging 27:03 27 minutes, 3 seconds point but uh like uh Delhi to Abisha, Chennai to Bangalore uh there are 500 km 27:11 27 minutes, 11 seconds journey. So what we are doing we are investing in the infra also. So we are 27:16 27 minutes, 16 seconds putting uh charger in between and uh uh we are taking like a diesel uh which our 27:25 27 minutes, 25 seconds vehicle is taking similarly the vehicle will be charged at a in middle point. So ultimately like if you are going from 27:34 27 minutes, 34 seconds Pune to Mumbai, Nasik to Mumbai or uh even Ahmedabad to Mumbai. So there are 27:41 27 minutes, 41 seconds uh chargers are available and we can charge the vehicle and can go. So ultimately uh the chargers will come out 27:49 27 minutes, 49 seconds come uh infra will come and there will be no problem for running the vehicle on long route also. 27:56 27 minutes, 56 seconds Okay. So what is the capacity that uh that the EV vehicle can carry? 28:04 28 minutes, 4 seconds There are uh uh one of rigid vehicle one is trailers. Trailer can carry up to 40 tons at one time. And uh small vehicles can carry up to 9 ton, 6 t, 3 t, 1 ton. 28:17 28 minutes, 17 seconds So maximum vehicles as in as of now in the industry is using uh within the range of 150 km. But now we are getting 28:26 28 minutes, 26 seconds the contract for like uh Chennai to Bangalore route and uh uh that is around 28:34 28 minutes, 34 seconds 400 kilometer. So we are putting infra uh in between middle way so that uh both 28:41 28 minutes, 41 seconds way this vehicle will run and can go up to 400 500 km. 28:46 28 minutes, 46 seconds Okay. Okay. uh just want to have an idea like uh if it is a 40 ton EV vehicle for 28:54 28 minutes, 54 seconds and a contract for 5 years for 500 kilometers. So what will be the like impact on the P&L? So like it is better 29:03 29 minutes, 3 seconds from diesel vehicle or uh it is better better from the diesel vehicle because my operational cost is 29:10 29 minutes, 10 seconds very less because uh uh the asset cost is very high compared to digital vehicle but operating cost is 29:18 29 minutes, 18 seconds very less and uh maintain free maintenance is not there. So EV profit 29:25 29 minutes, 25 seconds is much better than the Okay. Okay. Okay. Uh one last question 29:33 29 minutes, 33 seconds like we have also started one liquid logistics segment. So can you give a brief detail on what is that and what 29:40 29 minutes, 40 seconds are the margin look like in that segment and how we are going to expand that segment. 29:46 29 minutes, 46 seconds Liquid logistics means means carrying transportation of the liquid material. 29:51 29 minutes, 51 seconds So there are two type of we are earlier we don't have any liquid tankers with us. It is basically tankers of tanker 30:01 30 minutes, 1 second with chemicals is transportation and it is by road and rail both we can do. So it is a huge huge demand in India and uh 30:09 30 minutes, 9 seconds as of now we are uh only 180 contain tankers but gradually we have to increase up to 1,800 tankers. So that is 30:19 30 minutes, 19 seconds around uh double of the five times capacity. So uh we are uh 30:27 30 minutes, 27 seconds there are two option we can buy it from import from China or uh we can take the 30:33 30 minutes, 33 seconds lease in uh India also. So two tank train we have already purchased and third one we are trying to take on le also. 30:43 30 minutes, 43 seconds Okay. So okay gradually it will increase. 30:49 30 minutes, 49 seconds Okay. Okay. Uh can I just want the idea about like just wanted to know suppose if you are purchasing a vehicle and then 30:58 30 minutes, 58 seconds when the like when we get to see the positive return on that vehicle uh what is the timeline for that? 31:06 31 minutes, 6 seconds So no my vehicle is my vehicle is the earning till the day one. So we are 31:12 31 minutes, 12 seconds taking a maximum uh uh 90 80% loan from the bank or NBFC. So uh my truck is 31:21 31 minutes, 21 seconds earning from the day one and we are paying the EMI and uh over a period of time of the five years or 6 year that 31:29 31 minutes, 29 seconds EMI will also close whereas the life of the vehicle is 10 years in the NCR and 31:35 31 minutes, 35 seconds major cities and uh 15 years in the uh small cities. So earlier we are running 31:41 31 minutes, 41 seconds in the long route of uh uh 2,000 km and 2,500 km and later on we will shift uh 31:49 31 minutes, 49 seconds these vehicles to a lesser route of 500 to 1,000 km. So ve is uh profit making from the lab itself. 32:00 32 minutes Okay. Okay. Okay. 32:03 32 minutes, 3 seconds We are not we are not paying the EMI from our pocket. EMI is the self dependent vehicle is self-dependent. If you buy 32:12 32 minutes, 12 seconds the vehicle, it it will run the money from the day one. 32:18 32 minutes, 18 seconds Thank you. Our next question come from the line of money with Thermo Capital Private Limited. Please go ahead. 32:28 32 minutes, 28 seconds Yeah. Am I audible? Yes sir. 32:33 32 minutes, 33 seconds This is uh regarding the FI26 financials. 32:39 32 minutes, 39 seconds The company has recognized a one time lease reversal gain of 21 crores in the financials. 32:46 32 minutes, 46 seconds Is it being considered as a recurring revenue? 32:51 32 minutes, 51 seconds If not like the normalized financial performances of SA26 is to be published. 33:02 33 minutes, 2 seconds Uh can you repeat your question please? 33:06 33 minutes, 6 seconds The one time lease reversal gain of 21.19 crores which is recognized in the last quarter of the financial year 26. 33:16 33 minutes, 16 seconds Mhm. 33:17 33 minutes, 17 seconds Is it a recurring income or a one-time income by virtue of adjustment of accounting standard 116? 33:26 33 minutes, 26 seconds If it is not recurring like the normalized financial performance are you going to publish? 33:34 33 minutes, 34 seconds Uh let me clarify you this. This is a normal business income because we had entered into a long-term contract uh uh 33:42 33 minutes, 42 seconds for different our requirement lease basis. So uh in certain cases where the 33:49 33 minutes, 49 seconds lease is long-term so we need to uh create some uh India's provisions one on 33:56 33 minutes, 56 seconds the asset side another on the uh expense side that the side so gradually we have 34:02 34 minutes, 2 seconds completed a period uh on this contract which has been cancelled during the financial year. So here the expenses 34:11 34 minutes, 11 seconds which is more uh debited toward our P&L and uh asset is created more as compared 34:18 34 minutes, 18 seconds to the liability we have in this current financial year. So basically it's our operational profit only. This is not a 34:27 34 minutes, 27 seconds win for profit and it is very well the whatever investment entry as for the India requirement we are doing in the 34:36 34 minutes, 36 seconds P&L it has the impact of that on the one side it is showing as income on the other side it is deficit toward 34:43 34 minutes, 43 seconds depreciation and the finance cost so you can say it is our operational income this is not a windfall gain 34:52 34 minutes, 52 seconds uh that's it for now yeah That's that part is very clear sir 34:58 34 minutes, 58 seconds uh like uh uh the adjustment the ind116 standard is clear to me my question was 35:07 35 minutes, 7 seconds is it is it going to be a recurring uh recurring in nature but I got to understand by virtue of closing a 35:14 35 minutes, 14 seconds contract pre-clos by Indian railways this effect was to be given in the financials so as per my understanding 35:22 35 minutes, 22 seconds this is not going to be uh recurring in nature therefore Therefore it is not a normal operational result. That is the doubt I had. 35:32 35 minutes, 32 seconds Actually we have taken opinion from lot of professional firms on this. Actually it is operational income. They even they 35:40 35 minutes, 40 seconds had opinions from the PWC also. So it is actual operational other income but uh 35:48 35 minutes, 48 seconds the uh we want to have this uh set off with the expenses we have debited to the P 35:56 35 minutes, 56 seconds and L but want to show it separately as a line item. So we have did that actually it is operational income only 36:05 36 minutes, 5 seconds and it pertains to current financial year as well as uh some previous year in the current financial year also we have 36:12 36 minutes, 12 seconds taken uh some warehouses on these where we have created this uh in their uh these lies and the right to use asset. 36:21 36 minutes, 21 seconds So it's a very normal process every year as and when we are entering into any long-term lease agreement. So where uh 36:29 36 minutes, 29 seconds this as for the ind116 we have to create this provision in our books of accounts. 36:36 36 minutes, 36 seconds So these are as per the specy requirement note our uh uh this is so we the company tax on it. 36:46 36 minutes, 46 seconds No if it is a gain so when we are computing the uh computation for income tax purpose these gains are already 36:54 36 minutes, 54 seconds debited toward P&L in the previous years. So that is why this will not be considered as our gain and tax is not variable on that. 37:04 37 minutes, 4 seconds So the year which is debited to the P&L that year you'll have to add back and pay tax on that. On this year you'll have to diminish and you don't have to 37:12 37 minutes, 12 seconds pay tax on it. Is my understanding correct sir? 37:15 37 minutes, 15 seconds Yeah actually previous year we have added more expenses against the contract and uh we have paid more taxes in 37:23 37 minutes, 23 seconds previous years. This year it has been reversed. uh ahead has been reversed as our revenue. So as per income tax 37:31 37 minutes, 31 seconds provisions these addition is not considered as our uh income. These are considered as revenue but not taxable purposes. 37:40 37 minutes, 40 seconds Yeah. So these are book entries like basically to show correct picture of the company. Correct. Sorry I can't get. So 37:47 37 minutes, 47 seconds these are the book entries to show the correct picture of the company. As far as tax is concerned these are not recurrent. 37:57 37 minutes, 57 seconds Can you can see because we are entering multiple uh long-term agreements on regular basis and sometime due to the requirement it gets terminated in 38:05 38 minutes, 5 seconds between also. So it's a very regular and decreeing nature. It's it's not a exceptional thing. So it's very natural. 38:14 38 minutes, 14 seconds So uh uh it can happen to uh any year this year next year uh another year. So 38:22 38 minutes, 22 seconds it's all as for the industry requirements. Okay. Thank you. 38:30 38 minutes, 30 seconds Thank you. 38:31 38 minutes, 31 seconds Next question come from the line of Visjit Ayer and individual English. Please go ahead. 38:37 38 minutes, 37 seconds Yeah. Good afternoon sir. Thank you for the opportunity. 38:42 38 minutes, 42 seconds Yeah. So I just have couple of questions. 38:45 38 minutes, 45 seconds Yeah. I just have some couple of questions. Uh so can you uh please brief us on the halam contract that you are entering into? 38:56 38 minutes, 56 seconds Yes, we got the recently we got the contract from Hiram Npur and uh they are the leading FMCG brands. uh they are 39:05 39 minutes, 5 seconds supplying towards Maharashtra and Gujarat and uh this Udisa Chhattisgarh and uh Telangana Andra Karnataka. 39:17 39 minutes, 17 seconds So uh there will be a huge requirement and upcoming festival season. So they have given us the contract for 3 year 39:25 39 minutes, 25 seconds extendable to another five years for the 100 vehicles dedicated supplies to them. 39:31 39 minutes, 31 seconds And uh this is uh food segment and uh overall uh requirement is very high but 39:39 39 minutes, 39 seconds initially we have given 100 vehicles 100 vehicles contract may further come by another two to three month after deployment of these vehicles. So these 39:48 39 minutes, 48 seconds are very large customer and having lot of movement uh from Nagpur to pan India 39:54 39 minutes, 54 seconds like uh state I have already told three four five states they are sending them that you 40:03 40 minutes, 3 seconds okay this and sir which industries are you targeting to put targets 40:13 40 minutes, 13 seconds so which industries you will be targeting going forward Yeah, we are basically AVG we have 40:20 40 minutes, 20 seconds developed with the FMCG companies. Now we are in into beverage, liquor industries, steel, cement, pharma, 40:30 40 minutes, 30 seconds chemical and industrial and uh solar power industries. So there are many 40:37 40 minutes, 37 seconds industries are there which is lot of opportunities are there like solar power maker 40:44 40 minutes, 44 seconds braveries these are the major transportation uh required for these companies for the raw material and for 40:51 40 minutes, 51 seconds this box. So these are the basic industries which we are trying to uh catch up uh for growth. 41:00 41 minutes Yes sir. Uh just one last question from my side. like uh we have delayed our financial results for the J4. So what 41:08 41 minutes, 8 seconds was the reason for the delay? You know it does not really indicate a good time. 41:16 41 minutes, 16 seconds Uh yes, you're right. The delay was only due to the procedural and audit delivery requirements. As our business has grown, 41:24 41 minutes, 24 seconds the audit process has become more detailed and require additional reviews. 41:29 41 minutes, 29 seconds So it look took some additional time in those reviews and consultation from our grant and after completion of the review 41:36 41 minutes, 36 seconds the financial results were placed before the board of directors. We remain committed to maintain high standards of corporate governance and timely 41:45 41 minutes, 45 seconds disclosure. We'll try to keep it uh well within the factory timelines. 41:52 41 minutes, 52 seconds Sorry for this time. Yeah. Okay. Okay. Fine. 41:59 41 minutes, 59 seconds Thank you. The next question comes from the line of cable Gala with Gala Ventures. Please go ahead. 42:06 42 minutes, 6 seconds Yeah. Hi, good afternoon. Uh sir, can you please brief us about the new venture with uh BNA group and uh what 42:14 42 minutes, 14 seconds kind of services uh we will be giving under that venture? 42:21 42 minutes, 21 seconds Yeah. Uh sir with data uh we are not providing the logistic service actually 42:28 42 minutes, 28 seconds we have made a uh logistic company separately with theat is already uh having the license for uh 42:38 42 minutes, 38 seconds LNG gas. So now uh LNG cast is uh their their own company like D LNG LNG and now 42:48 42 minutes, 48 seconds we have joint venture with 50/50 and a logistry. So we buy the truck from the 42:56 42 minutes, 56 seconds Tata shop or uh some other manufacturer which we are buying BG vehicles. So we 43:03 43 minutes, 3 seconds have made a separate logistic company for uh that name is carbon light 43:10 43 minutes, 10 seconds logistics private limited that is 50% subsidiary of the ABC and 50% subsidiary of the data group. So uh nowadays the 43:20 43 minutes, 20 seconds customers are asking for the green roastings like Tata Steel and uh the other cement companies there is a huge 43:28 43 minutes, 28 seconds demand and for the uh long-term contract they are giving so we are having a very 43:36 43 minutes, 36 seconds high growth plan in this uh company of DNA group because DNA group is very big group of 18,000 crores. So we got 43:44 43 minutes, 44 seconds opportunity and uh signed the agreement with the long-term and uh made the 43:51 43 minutes, 51 seconds company called carbon light. So we will start the all the formalities has been completed and now hopefully we will 43:59 43 minutes, 59 seconds start the uh operation of this uh company uh which is a subsidiary of the 44:06 44 minutes, 6 seconds AGC uh in the maximum next uh 1 month or so. 44:15 44 minutes, 15 seconds Okay. Okay. So, yes, sir. Yes. Yes. Yes. Uh, thank you so much, sir, for giving us an about the 44:23 44 minutes, 23 seconds business. So, yes, that's all from my time, sir. Thank you. 44:28 44 minutes, 28 seconds Thank you, ladies and gentlemen. Due to the time constraint, that was the last question for today. I now held the conference over to Mr. Hershel Gansani 44:36 44 minutes, 36 seconds from Korean Advisers for the closing remarks. Thank you. And over to you, Hersel. Yes, thank you. Thank you everyone for joining the conference call 44:44 44 minutes, 44 seconds of AVG Logistics Limited. If you have any queries, you can write us at visa at the redadvisor.com. 44:52 44 minutes, 52 seconds Once again, thank you everyone for joining the conference call. 44:57 44 minutes, 57 seconds Thank you Arish. Ladies and gentlemen on behalf of Kina Advisor that concludes this conference. Thank you for joining us and you may now disconnect your lines. 45:07 45 minutes, 7 seconds Thank you. Thank you all. Thank you.