AWL Agri Business Limited — Q4 FY26

AWL Agri Business Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=gKPxPUN7luc Published: 2 weeks ago

0:01 1 second Ladies and gentlemen, good day and welcome to the AW Agri Business Limited Q4 FI26 conference call hosted by ICICA Securities. 0:13 13 seconds As a reminder, all participant lines will be in the listenon mode and there will be an opportunity for you to ask questions after the presentation 0:21 21 seconds concludes. Should you need assistance during the conference call, please signal an operator by pressing star then 0:28 28 seconds zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over 0:35 35 seconds to Mr. Akshai Krishnan from ICIC securities. Thank you and over to you sir. 0:43 43 seconds Hi, morning and afternoon to all. Thanks for uh joining in for the Q4 FI26 AW 0:52 52 seconds conference call from the management we've been represented by Mr. Anumu Malik executive deputy chairman Mr. 0:58 58 seconds Shikhan Tar the CE and MD Mr. Sman the ED coach go interim chief financial 1:06 1 minute, 6 seconds officer. I right now hand over the call to the management for further remarks and questions. Good day and thank you. 1:14 1 minute, 14 seconds Yeah, thank you very much and very warm uh welcome and good morning to everyone who is attending this call. Uh we'll 1:22 1 minute, 22 seconds spend couple of uh minutes maybe 10 minutes uh to discuss about the result. 1:28 1 minute, 28 seconds We'll run through a small presentation and then of course we'll open the floor for question and answers. We all of our 1:35 1 minute, 35 seconds sitting here we will try and address as much as possible the questions coming in from from you all 1:43 1 minute, 43 seconds to start with macro context. I think uh the quarter saw a lot of uh events happening in and around and particularly 1:52 1 minute, 52 seconds the month of the March uh where we saw the Iran conflict raging up and had got an impact on many parameters of the 2:01 2 minutes, 1 second business uh factors affecting the business rather edible oil prices firmed up because the crude oil prices went up 2:10 2 minutes, 10 seconds and as a result the edible oil complex also followed more or less similar the same trends. U conflict also resulted 2:19 2 minutes, 19 seconds into uh supply chain availability of the vessels because of which the inventories tightness was observed throughout the 2:28 2 minutes, 28 seconds industry. Uh all the crude linked uh commodities went up and as a result chemical, coal, packing material all cost shot up uh in the month of March. 2:40 2 minutes, 40 seconds Although the impact of all these cost was not felt too much in the March but I think in the coming quarter in Q1 most 2:48 2 minutes, 48 seconds of the industry player will feel the heat of this increased cost. U as if uh 2:55 2 minutes, 55 seconds this is not enough the rupee kept uh depreciating and there was a sharp depreciation that we saw in the rupee in 3:02 3 minutes, 2 seconds the month of March and given the fact that we run a quite a significant portfolio of imports and exports rupee 3:09 3 minutes, 9 seconds depreciation something is uh we watch very carefully uh export disruption continued in the Middle East because of 3:17 3 minutes, 17 seconds uh the Iran conflict. So all these events were somehow kept that uh businesses on the tender hook and we 3:25 3 minutes, 25 seconds just tried to sail through all these edible oil prices flared up particularly 3:34 3 minutes, 34 seconds in the month of March after the conflict started with sunflower settling above $1,400 a ton. uh soya 3:44 3 minutes, 44 seconds more or less near to the 1300 level and palm ranging between 1220 to 1250 kind 3:52 3 minutes, 52 seconds of level. So what we see today is all the elevated price of edible oil complex which we have not seen at least in last year. 4:05 4 minutes, 5 seconds on the performance. Uh happy to present a very good set of numbers for the Q4. 4:11 4 minutes, 11 seconds We have been able to deliver 14% uh volume growth and delivered close to 1.9 4:18 4 minutes, 18 seconds million uh volume. We also could able to register a highest ever 4:26 4 minutes, 26 seconds quarterly revenue of plus of 21,000 cr which is 18% yearon-year growth. Both on 4:32 4 minutes, 32 seconds operational abita and fat also company was able to deliver better numbers with eita growing by 40% and fat growing by 4:42 4 minutes, 42 seconds more than 50% yearon year on quarterly basis. 4:47 4 minutes, 47 seconds Per unit metrics uh we have been able to maintain what we have been saying. 4:54 4 minutes, 54 seconds We have been able to maintain a gross margins per ton plus of 12,000 and a bit closer to 3,400 rupees a ton for the 5:03 5 minutes, 3 seconds quarter which is again a growth of 19% and 23% yearonear for both the metrics. 5:11 5 minutes, 11 seconds Similarly when we look at a full year number uh happy to share that we finally closed the full year with 6.8 million 5:20 5 minutes, 20 seconds metric tons of uh volumes which is 4% uh growth. In this 4% edible oil grew by by 5:29 5 minutes, 29 seconds 6% mid single digit which is also something which we were expecting. 5:33 5 minutes, 33 seconds We're happy to share that company crossed a highest ever turnover of 5:40 5 minutes, 40 seconds 74,000 plus uh in the year FY26 with 17% 5:46 5 minutes, 46 seconds year-on-year growth. operational EITA at plus of 2,300 and PAT we delivered 5:53 5 minutes, 53 seconds pat of plus of,000 cr which is in line with uh the expectation by the street and the guidance which we have been 6:01 6 minutes, 1 second giving to the analysts for past couple of quarters. Again here also for the full year the port matrix on a gross 6:10 6 minutes, 10 seconds profit per turn as well as AITA per turn we have been able to deliver plus of 11,500 rupees turn for gross 6:18 6 minutes, 18 seconds profit and AITA closer to 3,500 rupees a time. 6:26 6 minutes, 26 seconds Some of the uh some of the other highlights uh for the quarter fortune as 6:34 6 minutes, 34 seconds a brand in oil and food put together grew by 11% year on year which is quite 6:40 6 minutes, 40 seconds encouraging. Coenur brand again for the quarter grew by 39% year on year and all our mastage brands like Kings and Rag 6:49 6 minutes, 49 seconds and uh other brands grew by 18% uh year on year on the volume 6:57 6 minutes, 57 seconds on channel we remain very optimistic uh about the alternate channel uh which is growing very fast for us which grew by 7:05 7 minutes, 5 seconds 43% year on year for the quarter uh Horea as a channel on which we are putting focus for last couple of years 7:13 7 minutes, 13 seconds grew by 64% year on year and the branded exports which is again also a focus area 7:21 7 minutes, 21 seconds for the company grew by 48% year on year when we talk about the Q4 numbers 7:31 7 minutes, 31 seconds full financial performance uh on a standalone basis we did a revenue of plus of 20,000 cr with an AITA of 63 38 7:41 7 minutes, 41 seconds cr which is 38% plus that of 268 cr for the quarter. Similarly when we look at 7:48 7 minutes, 48 seconds for the full year we on a standalone basis we crossed revenue of 72,000 7:55 7 minutes, 55 seconds with a standalone abita of 2,400 cr which is and a pat of little lower 8:02 8 minutes, 2 seconds than,000 at 981 cr on stand alone again the per metric 8:09 8 minutes, 9 seconds matrix the unit matrix rather I would say continue to be healthy uh gross profit of plus of 12,000 rupees 8:17 8 minutes, 17 seconds and AITA plus of 3,500 rupees for the quarter. 8:22 8 minutes, 22 seconds Whereas for the full year we are able to deliver a gross profit of 11,200 8:30 8 minutes, 30 seconds of gross gross profit and 3,600 on the every time when we look at at a consolidated level 8:38 8 minutes, 38 seconds more or less similar story as I said earlier we could achieve highest revenue of 21,000 plus cr in the quarter with a 8:47 8 minutes, 47 seconds fat of 293 crores which is 54% plus and uh for the full year we crossed 8:55 8 minutes, 55 seconds 74,000 cr of revenue with a pat of 1,000 cr plus uh and here also on the key metrics we 9:04 9 minutes, 4 seconds remain more or less same what the guidance we have been given giving to the street 9:12 9 minutes, 12 seconds when we uh look at the segment wise uh for the quarter four while we delivered 9:19 9 minutes, 19 seconds a 14% uh volume growth in this 14%, edible oil uh grew very encouragingly by 9:27 9 minutes, 27 seconds 17%, food and FMCG grew by mid single digit at 6% and industry essential at 13%. So overall all the segment 9:36 9 minutes, 36 seconds delivered the volume growth and also the revenue growth at 18%. 9:42 9 minutes, 42 seconds uh we had a robust operational AIA for the quarter stood at 628 cr reflecting a 9:50 9 minutes, 50 seconds strong growth of 40% year on year and what we saw is the margin expansion basically was driven by improved 9:59 9 minutes, 59 seconds profitability across edible oil and food segment for the full year while the volumes grew 10:07 10 minutes, 7 seconds by 4% but uh on segment basis edible oil grew by 6% uh food and FMCG we grew by 4% and industry essential by 8%. 10:18 10 minutes, 18 seconds However, when we normalize these numbers with one time government to government business that we had last year u the growth is 6%. 10:30 10 minutes, 30 seconds With edible oil at 6% and food and SMCG at 3% plus and industriation still at 8%. 10:39 10 minutes, 39 seconds The food uh performance of singledigit growth is basically coming from two 10:45 10 minutes, 45 seconds aspects. One is we had uh consolidated uh NBR business which we have started 10:54 10 minutes, 54 seconds couple of years back now we are going and focusing market specific business and then we'll slowly grow it. So number 11:02 11 minutes, 2 seconds one, number two, uh during the last full year, the wheat prices uh were more or 11:09 11 minutes, 9 seconds less rangebound. They didn't go up in a sense. All the players who bought the inventory or who bought the wheat at the 11:17 11 minutes, 17 seconds time of harvest were not able to get the carry cost uh the way uh the small players were able to because they were 11:26 11 minutes, 26 seconds buying from the open market and pricing their products. So we had a very tough competition from private labors and a 11:33 11 minutes, 33 seconds small players but I think uh as we go forward uh in FY27 we should be able to 11:40 11 minutes, 40 seconds overcome this and should be able to deliver a strong growth in wheat flour and dry business put together for 11:50 11 minutes, 50 seconds on uh other highlights uh for the Q4 as I said earlier also alternate channel continues to be very focus area for us 11:59 11 minutes, 59 seconds that is grew by 43% branded exports and Hora again remains on our priority list. 12:08 12 minutes, 8 seconds Uh we had couple of new products launched during the quarter 12:14 12 minutes, 14 seconds on edible oil. uh as I said earlier Q4 it grew by 17% we crossed revenue of 17,520 12:23 12 minutes, 23 seconds crores for edible oil in Q4 which is 19 19% yearon-year growth on market share 12:31 12 minutes, 31 seconds we have been able to see consolidation in market share of edible oil for the quarter where it improved by 60 basis 12:39 12 minutes, 39 seconds point in ecom and qcom also our market share of edible oil continue to remain in about 30% 12:48 12 minutes, 48 seconds level on FMCG uh part uh on in terms of the 12:56 12 minutes, 56 seconds market share our wheat flour market share more or less remain flattish at 5.3 5.4% 4% kind 13:05 13 minutes, 5 seconds of number which we we had earlier also but one significant improvement which we saw in the basmati rise where our market 13:13 13 minutes, 13 seconds share improved by 330 basis point and now we are closer to 9% kind of market share from what we had earlier the 13:21 13 minutes, 21 seconds segment recorded also segment also recorded a profitability of close to 35 cr in Q4 and for the full 13:30 13 minutes, 30 seconds year we had a segment result plus of 200 cr. So while we have been positive in 13:39 13 minutes, 39 seconds food but as we have been saying earlier also that we will continue to drive food aggressively and see to it that we get the top line 13:48 13 minutes, 48 seconds first and profitability will certainly follow once we get a volume angle volume handle on our side. 13:58 13 minutes, 58 seconds Industry essential both uh Olio and Caster continues to grow better segment recorded 13% year-on-year volume and 11% 14:06 14 minutes, 6 seconds year-on-year revenue growth in Q426. 14:11 14 minutes, 11 seconds uh oliochemical business which contributes 30% of business continues to remain key growth driver for the segment 14:20 14 minutes, 20 seconds and our new installation coming up at Krishna Patanam by end of uh early uh the Q1 of 14:30 14 minutes, 30 seconds uh uh Q4 of 27 should be able to add more volume to this segment and 14:39 14 minutes, 39 seconds gradually we are diversifying into the specialy chemical which now contributes close to 7 to 8% of the portfolio on subsidiaries and uh joint ventures. 14:52 14 minutes, 52 seconds GD which was acquired last year continued to grow. In Q4 the volume grew by 24% but as and full year volume grew 15:01 15 minutes, 1 second by 15% revenue growth of 21% for the quarter and 12% for the full year. We continue to maintain the material margin 15:10 15 minutes, 10 seconds at level of 55% and 54% for the quarter and full year respectively. 15:22 15 minutes, 22 seconds uh on general trade distribution we our focus continues to play on uh spreading the distribution 15:32 15 minutes, 32 seconds now we reach uh more than 900,000 outlets uh directly 9.7 rather I would 15:38 15 minutes, 38 seconds say on rural reach we are there 63,000 towns listed of those 63 close to 55,000 15:46 15 minutes, 46 seconds outlets that build every 3 months And this is the area where we would continue to 15:53 15 minutes, 53 seconds uh focus and grow. Overall direct plus indirect reach as for the Neielson is now 2.6 million. So we are reaching 16:02 16 minutes, 2 seconds close to 26 lakhs outlet which is still uh not the level where we would want to 16:09 16 minutes, 9 seconds have because the universe of overall outlets is more than 4 million and so there is lot of headroom for us to grow 16:17 16 minutes, 17 seconds which we will continue to do in next couple of years. 16:22 16 minutes, 22 seconds alternate channels I'll not spend much time I think we have spoken earlier that it is continue to grow at 43% revenue 16:29 16 minutes, 29 seconds growth of 51% and now the quick com quick commerce which is one of the like 16:35 16 minutes, 35 seconds part four one of the part of the alternate channel contributes close to 16:42 16 minutes, 42 seconds 32% of uh the overall alternate channel volumes 16:52 16 minutes, 52 seconds There were a couple of new product launches. We launched our new series Fortune Premium or premium brand in the 17:00 17 minutes under which we we launched olive oil and also launched cold press uh mustard oil. 17:08 17 minutes, 8 seconds Uh so this is something which we will develop. Uh currently we have launched a new range in Delhi, Hyderabad, Mumbai 17:16 17 minutes, 16 seconds and Bangalore markets which is where the we we find customers are there for such kind of products. As we go further we 17:23 17 minutes, 23 seconds will be tapping more metro and 50 lakh plus population towns to see that this category also uh expands. 17:34 17 minutes, 34 seconds Now we have uh quite a few products at a premium range as well as health and convenience focus foods which include 17:43 17 minutes, 43 seconds soya nuggets, biryani kit, whole new brown rice and then premium cold press 17:49 17 minutes, 49 seconds oils. Apart from that now we have a bal uh blended oil portfolio which is more 17:56 17 minutes, 56 seconds focused on the health and convenience and we will continue to develop this uh portfolio. 18:06 18 minutes, 6 seconds That is all from my side as far as uh the update on the Q4 numbers as well as performance is concerned. I have with me uh Mr. Malik who is deputy chairman Mr. 18:20 18 minutes, 20 seconds Swamin S who is our chief operating officer and Panka who is our interim CFO here and I request now operator to open 18:28 18 minutes, 28 seconds the floor for question and answer. We we'll take questions one by one and try to answer. Thank you. 18:35 18 minutes, 35 seconds Thank you very much. We will now begin the question and answer session. 18:40 18 minutes, 40 seconds Anyone who wishes to ask a question may press star N1 on their touchstone telephone. 18:47 18 minutes, 47 seconds If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use 18:54 18 minutes, 54 seconds handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. 19:15 19 minutes, 15 seconds The first question is from the line of Aishroy from Noama Wealth. Please go ahead. 19:22 19 minutes, 22 seconds Yeah, thank you. Uh firstly, congrats on good uh recovery. Uh first is uh in terms of Iran crisis, we saw two three 19:30 19 minutes, 30 seconds levels of impact on the sector. One was of course uh gas availability to a lot of the cantens and restaurants was severely restricted for few days and 19:39 19 minutes, 39 seconds then we obviously saw inflation in edible oil etc. uh and lot of the local edible oil players would not have been able to manage the working capital 19:47 19 minutes, 47 seconds sourcing for a few days uh the way you would have managed. If you could tell us on a overall basis uh did you gain or 19:55 19 minutes, 55 seconds did you lose because in Horka I think there could have been some adverse impact if you could clarify on that and second of course convenience food there 20:02 20 minutes, 2 seconds was some optoing for few days because some consumers got worried that uh availability itself could get impacted. 20:10 20 minutes, 10 seconds So overall holistic level what is the impact in Q4 of Iran crisis? 20:16 20 minutes, 16 seconds See Amish on the Q4 per say if I if I if I say I think the impact is not that 20:22 20 minutes, 22 seconds much because u the prices while prices went up in March. uh but it also saw a 20:30 20 minutes, 30 seconds recovery of significant demand in the month of March because trade tried to accumulate lot of inventory and therefore we saw huge amount of uh 20:38 20 minutes, 38 seconds demand coming in the month of March. So that to some extent offseted any any issues uh with respect to the pricing 20:45 20 minutes, 45 seconds and other things. Uh one second uh yes the prices of uh lot of things has gone 20:52 20 minutes, 52 seconds up like packing material chemicals and co and core. I think all this uh will 20:59 20 minutes, 59 seconds get reflected in the Q1 number because uh this real cost which has gone up will actually hit because month of March most 21:07 21 minutes, 7 seconds of the players were having the inventories sufficient inventories to take care of the cost. So this should will be impacting in Q1. 21:15 21 minutes, 15 seconds uh initially we did saw some demand uh destruction because of this LPG shortage and other things but after that we 21:24 21 minutes, 24 seconds didn't saw but yes uh when we got into April uh we did see some of the 21:32 21 minutes, 32 seconds sluggishness in the demand because lot of people who had accumulated inventories in the month of March are now consuming it and therefore we see 21:40 21 minutes, 40 seconds not a very encouraging demand scenario as far as the app is concerned but I'm very sure that in the May month of May and June it will recover and we will 21:48 21 minutes, 48 seconds have a fairly good quarter Q1 as well. 21:54 21 minutes, 54 seconds Okay. And till now how much price hike you have taken pre-Iran versus now 22:02 22 minutes, 2 seconds across your uh products if you could tell us given packaging cost will be say 20% of your broad uh uh raw material uh 22:09 22 minutes, 9 seconds how much hike you would have taken across different parts of the portfolio specific each if you can tell see the packing cost as I said will 22:19 22 minutes, 19 seconds start hitting you actually from the month of April so there is no question of getting taking any price because of the packing material. 22:26 22 minutes, 26 seconds So April asking now yeah so in general the edible oil complex went up in the month of March 22:34 22 minutes, 34 seconds close to 10% and I think that 10% of uh uh increased prices in every player has 22:41 22 minutes, 41 seconds passed it on to the consumer some somewhere in mid of March or end of March so that is already happened as far 22:49 22 minutes, 49 seconds as the packing material is concerned I think slowly people will start passing it off but packing material for us is uh 22:56 22 minutes, 56 seconds you know close to uh I would say two two and a half 3% of our overall cost not more than that and if it has gone up by 23:05 23 minutes, 5 seconds 10 15% the overall impact per se would not be more than a quarter basis or a 50 23:12 23 minutes, 12 seconds basis point but as as we approach uh uh to the to end of April I think uh we will take the corrections accordingly. 23:23 23 minutes, 23 seconds Sure. 23:25 23 minutes, 25 seconds My second and last question is on alternate channels. Uh if you could tell us total alternate channels as a portion 23:32 23 minutes, 32 seconds of domestic business, how much it is and how is the profitability versus overall business? Is it better? Is it slightly 23:40 23 minutes, 40 seconds worse? And second uh question will be uh part of this on Cohenor we have seen a spe spe spe spe spe spe spe spe spe spe spe spe spe spe spe spe spe spe spe spe spectacular recovery. Of course uh first 23:48 23 minutes, 48 seconds few quarters were very challenging. So which means base is quite favorable here. So you could tell us uh uh x of the base effect are you now happy with 23:57 23 minutes, 57 seconds this performance because the base had seen declines and now it's a growth uh are you happy till now whatever has happened in terms of the acquisition is 24:04 24 minutes, 4 seconds it uh is it something you are satisfied or still a lot of things left uh to do here you on alternate channel I will answer and then for cohindur I will request Mr. 24:14 24 minutes, 14 seconds Malik to uh revert to your question. So on alternate channel now in edible oil we sell close to 15% of our volumes 24:23 24 minutes, 23 seconds comes from the alternate channel and as I said earlier it is growing by 40 44%. 24:28 24 minutes, 28 seconds Similarly for the food it is uh close to 25% of volume which comes from the alternate channel and uh these channels 24:36 24 minutes, 36 seconds are certainly more profitable than any other channel whether it is a general trade or uh whether it is export I think 24:45 24 minutes, 45 seconds we will continue to grow on this uh I request uh Mr. Malik to specifically answer your Kohhin related query. 24:54 24 minutes, 54 seconds See on Cohenor um we clocked around 50,000 plus tons uh this year 25 26 25:04 25 minutes, 4 seconds showing a growth of almost 20% over the last year. Uh Cohidor as a brand has its own salience and very strong in south 25:12 25 minutes, 12 seconds and western India. we have concentrated in these markets more but because of AWL's distribution strength we have 25:20 25 minutes, 20 seconds taken it to um entire country um and we see good traction coming from eastern 25:26 25 minutes, 26 seconds India where the brand had a uh good traction earlier but in between there was no supplies by the earlier companies 25:35 25 minutes, 35 seconds but we have taken it and we are not doing it well this year also I expect this momentum to continue and even do 25:42 25 minutes, 42 seconds more our Hora brand is Coin Chef's Choice which has a legacy in hotels and 25:49 25 minutes, 49 seconds restaurants and many top hotels wants uh our flagship brand Kohenu Trophy Royale. 25:56 25 minutes, 56 seconds So that way if you ask me uh Cohenor uh has uh come back into full action and we will see more growth coming in days to come. 26:08 26 minutes, 8 seconds Understood. Sure sir. That's all from my side. Thank you. 26:14 26 minutes, 14 seconds Thank you. The next question is from the line of Manoj Man from ICIC Securities. Please go ahead. 26:22 26 minutes, 22 seconds Hi sir, I have only one question you know which is let's say going into you know the later half of FI27. 26:29 26 minutes, 29 seconds What's your worldview on inflation specifically agree inflation right are there pockets uh you know given the disruption system currently which can 26:37 26 minutes, 37 seconds impact so etc. just your world view on agree inflation general going into fiscal 27 later part thank you 26:46 26 minutes, 46 seconds today CPI is at close to three and a half in which uh food contributes significant 40% of the weightage and 26:53 26 minutes, 53 seconds food itself which wherein you have all these edible oil and other food stuff is there it's actually at sitting at three 27:00 27 minutes and a half uh very difficult to uh estimate anything right now because to 27:08 27 minutes, 8 seconds in In today's world it's it's too much of dynamism there. I think I don't know how is the things are going to pan up 27:15 27 minutes, 15 seconds tomorrow. But if edible oil complex more or less remains same I think uh uh the inflation rate of this three and a half 27:24 27 minutes, 24 seconds CPI of this 3 and a half 23 and 775 should remain same and uh demand dist 27:33 27 minutes, 33 seconds and and whether this will have any impact on the demand I think uh our industry is more of a essential products 27:40 27 minutes, 40 seconds rather than discretionary products so the demand destruction generally doesn't happen in our case what in our case 27:47 27 minutes, 47 seconds happens is downtrading for which we have uh requisite uh brand 27:54 27 minutes, 54 seconds architecture in place where if consumer wants to buy a lower brand we have that brand also to offer to him. So the 28:01 28 minutes, 1 second customer remains within our scheme of the things. uh but yes if inflation goes up the more impacted are the 28:09 28 minutes, 9 seconds discretionary spend FMCG products where customer would try to cut. 28:16 28 minutes, 16 seconds Thank you. Thank you sir. 28:20 28 minutes, 20 seconds Thank you. The next question is from the line of Draj Mistri from Jaff. Please go ahead. 28:28 28 minutes, 28 seconds Yeah. Hi good morning and congrats on good set of number. Uh sir my first question is related to foods. uh the 28:35 28 minutes, 35 seconds kind of improvement what uh in terms of margin what we have witnessed in FY26 uh because of restructuring can we 28:44 28 minutes, 44 seconds assume that uh now this kind of profitability is a new base going ahead if not material improvement from here on 28:51 28 minutes, 51 seconds it can stay at current level that's what uh we have been saying that 28:58 28 minutes, 58 seconds uh the food profitability is something which all depends upon what kind of opportunity that we will get in the 29:06 29 minutes, 6 seconds market to you know grow the top line and therefore our first focus of course will remain to grow the volume. Uh and we 29:14 29 minutes, 14 seconds have been saying this that at least till end of FY27 the the priority will always be a top line and not the bottom line. 29:24 29 minutes, 24 seconds But whatever level we are today uh I think we should be able to continue uh but maybe we may become little 29:33 29 minutes, 33 seconds aggressive as the opportunity comes during FI27 to see that we give priority to the volume over the margins. 29:45 29 minutes, 45 seconds Got it. Got it. And uh in terms of new product launches in food segment that the kind of uh premiumization what you 29:53 29 minutes, 53 seconds are trying to do in edible oil with the recent launch uh is there any particular action you would like to highlight in 30:01 30 minutes, 1 second food segment where you are trying to drive premiumization and improve your gross margin as well as overall profitability. 30:09 30 minutes, 9 seconds Yeah, absolutely. I mean these all all c this this category of premium uh products will certainly has got a better 30:18 30 minutes, 18 seconds margin profile on the gross margin as well as uh AITA but right now they are at a very small scale so doesn't uh 30:29 30 minutes, 29 seconds change the matrix uh at a overall scheme of the things but uh premiumization is something it's not only limited to uh 30:38 30 minutes, 38 seconds this niche products which we are launching This new product is just a beginning. I think over the years we will develop this into a bigger 30:45 30 minutes, 45 seconds category. But premiumization we continue to do in other market other products also which is our normal fortune brand 30:52 30 minutes, 52 seconds where we have both the underindex market and overindex market. So the markets where we are very strong we try to work 31:00 31 minutes out how can we improve the margins from there. So that process is continuous uh 31:06 31 minutes, 6 seconds should reflect uh on the ponton or unit matrix uh which we have been communicating. 31:14 31 minutes, 14 seconds Got it. And uh so my next question is related to the balance sheet. What we have seen is that uh there is a 31:21 31 minutes, 21 seconds significant uh decline in inventory uh while there is a increase in uh trade 31:27 31 minutes, 27 seconds credit. what uh we are uh we we a we uh to buy edible oil. How do we read these two line items? 31:37 31 minutes, 37 seconds No. So basically the trade credit and uh the borrowings keep uh exchanging between the lines and 31:45 31 minutes, 45 seconds therefore uh what you should be looking at is that overall uh inventory plus receivable as compared to the 31:53 31 minutes, 53 seconds borrowings. And if you compare these two set of numbers, you will find more or less uh uh no major movement within 32:02 32 minutes, 2 seconds these two because sometime we opt for a bias credit rather than a trade credits and sometime we opt for a trade credit 32:10 32 minutes, 10 seconds as rather than a bias credit. So that number keeps uh fluctuating between the 32:17 32 minutes, 17 seconds schedules. But if you look at the current liabilities versus current effects, I think we are quite comfortably pleased. 32:28 32 minutes, 28 seconds Got it. Got it. And son, uh, one request. Can you explain the divergence in your uh quarterly press release what 32:36 32 minutes, 36 seconds you highlighted where uh you said that the food volume growth would be in 1% and topline growth would be in a mid-s 32:43 32 minutes, 43 seconds single digit while what you reported is 6% volume growth and 18% topline growth. 32:48 32 minutes, 48 seconds Thank you. That's it from my no. So I think what you are talking is basically between the stand and console. 33:01 33 minutes, 1 second So the consolidated I think we what we are saying is that the food volumes uh uh where actually 33:11 33 minutes, 11 seconds 3% growth uh after normalizing that G2G business standalone is uh what we are saying that it is is it has the growth. 33:22 33 minutes, 22 seconds Got it. Thank you very much sir. 33:28 33 minutes, 28 seconds Thank you. The next question is from the line of H Sha from Bandhan Mutual Fund. Please go ahead. 33:35 33 minutes, 35 seconds Hi sir, good morning. Uh am I audible? Good morning. Good morning. Audible. 33:40 33 minutes, 40 seconds Uh hi sir. Uh so just continuing on uh the comment which you made on the previous participant question that in 33:47 33 minutes, 47 seconds the food business uh we will prioritize uh volumes over margins. uh your uh if an opportunity comes especially you're 33:55 33 minutes, 55 seconds basically wanted to know at what volumes would the margins uh would you be able to maintain the margins 34:03 34 minutes, 3 seconds let's say if yeah no just to answer your question is very straight I don't think uh that we can uh quantify now because many a times 34:12 34 minutes, 12 seconds opportunity comes in and uh you are able to grow also and without you know 34:19 34 minutes, 19 seconds without diluting on the margin so That's that's something which is very difficult to to say but what we are actually trying to communicate is that we will 34:28 34 minutes, 28 seconds have priority on the volume because we would certainly want in FI27 food volumes to uh grow in double digit at 34:36 34 minutes, 36 seconds least in mid- teens kind of number which we are looking at uh profitability profitability I mean that should be the 34:43 34 minutes, 43 seconds first but however if we have any constraint on that we will certainly give a priority to the top line having 34:52 34 minutes, 52 seconds and therefore it's difficult to say at up to what volume you would be a profitable up to up to after what volume you will not be because it all depends 35:00 35 minutes upon what kind of opportunity that we will get in the market as I was I was saying in my uh initial commentary that 35:08 35 minutes, 8 seconds last year we didn't get any opportunity in wheat flour business because wheat prices didn't go up and therefore we had a significant competition coming in from 35:18 35 minutes, 18 seconds the smaller players now this is an opportunity which was not there. If this opportunity comes in this year, I think we will grow volume as well as profitability also. 35:28 35 minutes, 28 seconds Okay. So where I was coming from is that is it fair to assume that as you mentioned that your ambition is somewhere to be to grow in mine is 35:37 35 minutes, 37 seconds that's basically is that the base case for you in your uh EOP you know when you make your EOP that okay fine this is something which we grow and let's say if 35:44 35 minutes, 44 seconds the additional opportunity as you mentioned in let's say from what we are seeing currently the prices are firming 35:51 35 minutes, 51 seconds up there would that be an add-on of what you are building in as a base case of meeting volume growth. 35:59 35 minutes, 59 seconds Yeah, of course the base case see certainly doubledigit growth which is mid- teens kind of growth for food but opportunity strikes and the things comes 36:07 36 minutes, 7 seconds favorably to us. So we would certainly try and make it even better than this. 36:12 36 minutes, 12 seconds That's not an uh that of course is there in that case whatever that three odd% margins which we have done would be 36:19 36 minutes, 19 seconds slightly lower maybe. Yeah. And sir again by 26 as well 36:26 36 minutes, 26 seconds is probably characterized by you know reversing too many opportunistic calls which we had taken in the previous year. 36:33 36 minutes, 33 seconds Right. So when you talk about these opportunities right are these short-term tactical opportunities or these are 36:40 36 minutes, 40 seconds something you know where these are uh areas where you can create a structural uh edge or benefit and then build on it 36:49 36 minutes, 49 seconds because we we would not want to see that reversal you know going ahead as well. 36:54 36 minutes, 54 seconds No no of course these are all structural changes that we want to do. I mean and there are only two things which happened last year when when with respect to the food. One is of course that one-time 37:03 37 minutes, 3 seconds government to government business which was not there and the other is we are just trying to consolidate the NBR business which we earlier tried that we 37:11 37 minutes, 11 seconds will penetrate across India but then we thought that it is better to go uh regions by region and then build this uh 37:19 37 minutes, 19 seconds portfolio and that's the only change which we did uh in the food business. I think that should continue. 37:26 37 minutes, 26 seconds NBR is a private label, right? NBR is nonbasmati rice. Nonbasmati rice. Okay. Yeah. Yeah. Yeah. 37:35 37 minutes, 35 seconds But let's say uh segment by segment if we think of wheat rice and let's say others right uh soya sugar etc. uh where 37:45 37 minutes, 45 seconds do you see I mean you mentioned that a few categories are already going at 30% in your pre-quarter update but let's say going into FI27 which where do you see 37:53 37 minutes, 53 seconds the largest opportunity sir let's say for next one two years in terms of growth for us the largest opportunity to be very frank 38:01 38 minutes, 1 second with you sits uh in rice wheat flour basin and uh we also have a sugar which is also a volume puller for us so these 38:10 38 minutes, 10 seconds are the four categories where and pulses of course so these are the four five categories where we we see a huge amount of potential to grow. 38:19 38 minutes, 19 seconds Okay. Okay. And to the to the earlier comment which you made on wheat right that we did not have the opportunity last year uh because the prices were 38:28 38 minutes, 28 seconds quite uh stable and you know local competition also went in. So basically if the prices firm up would it also mean 38:34 38 minutes, 34 seconds that uh apart from growth even the margins of that particular wheat flour business should improve for us this in FI27 versus FI26? 38:43 38 minutes, 43 seconds No not necessarily. I think if if if prices firms up it will be a benefit beneficial to the big and a big players 38:51 38 minutes, 51 seconds like us who buy uh the stock at the time of the harvest because since we are delivering a consistent quality to the 38:58 38 minutes, 58 seconds to the customer and the local players uh actually doesn't uh not able to compete with uh organized players like us. It 39:06 39 minutes, 6 seconds will help us to build volumes uh not necessarily it will have uh impact on the profitability. Yes, it will have if 39:14 39 minutes, 14 seconds we if the prices goes up uh even beyond the carry cost. So that is a completely a margin uh accretion which will happen 39:23 39 minutes, 23 seconds to us because if prices goes up beyond a carry cost which normally you account for uh certainly it will add to the volume the margins also. 39:35 39 minutes, 35 seconds Okay. And the on the longer term horizon sustainably what is the kind of margins do you foresee or envage in the foods business? 39:47 39 minutes, 47 seconds No in the food business we are actually saying if you read if you if you go through our earlier comments we have always been saying that food will remain 39:55 39 minutes, 55 seconds an ebitita neutral till Fi27 and after that we will try and build,500 per turn to 2,000 rupees a ton kind of 40:04 40 minutes, 4 seconds EITA in the food from Fi 28. So this is what we are working on while we are delivering it today also but that certainly doesn't mean that it is 40:12 40 minutes, 12 seconds something which is sustainable at least for the year but that's what we are looking and then from there uh that from the journey will start wherein you 40:21 40 minutes, 21 seconds should ideally get to a margin level where you start benchmarking yourself with uh your competitor like for us in 40:31 40 minutes, 31 seconds wheat flour the competition is with ITC and in rice we have ARBL and LT food. So you have to go to that level. We are not 40:39 40 minutes, 39 seconds there right now because of course our we are still at investment and growth phase. 40:45 40 minutes, 45 seconds Got it sir. Thank you so much. 40:50 40 minutes, 50 seconds Thank you. Next question is from the line of Akshai Krishnan from ICIC securities. Please go ahead. 40:58 40 minutes, 58 seconds Hi sir. Thanks for the opportunity. Uh my question is on at what point in time does a business uh from the reinvesting 41:07 41 minutes, 7 seconds gross margin gains to the delivering sustained a expansion and what are the key triggers for this transition? Sir 41:16 41 minutes, 16 seconds this your you so your question is specifically for the food for the food exactly 41:23 41 minutes, 23 seconds can you repeat the question again? So I'm what I'm trying to see is uh at what point of what point of the business does 41:31 41 minutes, 31 seconds the shift happens in reinvesting the gross margin gains to delivering sustained EITA margins and what are the key triggers for this? 41:41 41 minutes, 41 seconds So I think u key triggers remains uh u sustain I mean a good market share uh 41:49 41 minutes, 49 seconds which you have and only then you have a pricing power to charge prices until that at that time you are just playing aggressively on pricing and growing I 41:57 41 minutes, 57 seconds think food anywhere closer to or anywhere more than 1.5 million tons of volumes I think 42:06 42 minutes, 6 seconds we should be able to start uh consolidating uh margins. This year we closed at 1.2 million. I am hopeful that 42:14 42 minutes, 14 seconds next year we will uh go beyond 1.5 1.6 million as far as the food is concerned. 42:21 42 minutes, 21 seconds From there I think the consolidation will start on gross margin as well as the AITA margin. 42:28 42 minutes, 28 seconds Okay. Okay. Uh but but uh technically you also gain market share in this quarter. So is is it that are 42:37 42 minutes, 37 seconds you focusing more on market share gains at the cost of the margins then? 42:43 42 minutes, 43 seconds Yeah, at least for uh at least for uh FY27 for sure and maybe some part of uh 42:52 42 minutes, 52 seconds FI28 also we will certainly give priority to the top line rather than margins. 42:59 42 minutes, 59 seconds Okay. Okay. My second is on the uh the volatility in the oil that's been going on in the recent trends. I just wanted 43:06 43 minutes, 6 seconds to have done any sensitivity analysis on every five or 10 rupee drop or increase in the cost of uh oil. What is the 43:15 43 minutes, 15 seconds impact on the margin and how do you protect and price through the pricing measures? 43:24 43 minutes, 24 seconds So uh can you just repeat your question what I'll I'll suggest that sin uh to come in and answer but just repeat the question for sake of clarity. 43:35 43 minutes, 35 seconds So so basically the the recent volatility in edible oil I just wanted to understand the sensitivity analysis. 43:42 43 minutes, 42 seconds So for every five rupee or $5 a $10 decline or an increase in the edible oil 43:49 43 minutes, 49 seconds or crude oil prices what is how are you managing the inventory and how are the margins being protected through pricing in this. 44:00 44 minutes Hi. Uh so I think uh uh as prices goes up uh every our 44:07 44 minutes, 7 seconds experience says that uh at every 10 rupee we see demand uh uh slowing down 44:14 44 minutes, 14 seconds by 1% and uh vice versa as prices comes off the demand increases. based the 44:21 44 minutes, 21 seconds international uh uh price analysis. We also revise our inventory and supply 44:27 44 minutes, 27 seconds chain and also depending upon the season and the festivals. So uh depending upon 44:35 44 minutes, 35 seconds the uh prices and the trend we revise and we manage our inventory supply chain. 44:44 44 minutes, 44 seconds Okay. Okay. Perfect. So uh the next is on the alternate channel. So you've been scaling up rapidly and I just wanted you 44:53 44 minutes, 53 seconds to just help me in understanding and pick your brains on how can you quantify the margin difference versus general trade and how this evolves with scale. 45:04 45 minutes, 4 seconds No, I think uh this alternate channel certainly is more uh profitable than general trade because there are less 45:11 45 minutes, 11 seconds number of intermediaries involved because you are then trying dealing directly with the uh ecom and alternate 45:19 45 minutes, 19 seconds channel operator and also the the stocks are moving very fast. So you certainly 45:26 45 minutes, 26 seconds have a better margin profile as far as uh general trade are concerned. 45:31 45 minutes, 31 seconds Again on the alternate channel also you have other uh costs which you have to [clears throat] incur because alternate 45:37 45 minutes, 37 seconds channel is all about uh ensuring the visibility of your product on the platform. Plus you will have to also 45:45 45 minutes, 45 seconds spend some amount of time some money on ensuring that the fill rate doesn't go down and therefore you have to keep 45:54 45 minutes, 54 seconds supplying to them uh through your logistical uh u capability. So, so all these costs are there but in spite of 46:02 46 minutes, 2 seconds taking all these uh it's a better off in terms of uh margins as compared to 46:09 46 minutes, 9 seconds general trade and and therefore we are saying we are quite optimistic about this channel growing. It's a channel of the future and uh the way it is growing 46:18 46 minutes, 18 seconds at a 40% although the base is low that's why the 40 50% looks very good number as the base increases uh this uh growth 46:27 46 minutes, 27 seconds rate will certainly come down but I'm sure uh in the years to come we will 46:34 46 minutes, 34 seconds have close to 30% 35% of our volumes coming in from the alternate channel which is today at 15%. 46:43 46 minutes, 43 seconds What would be the margin difference versus general character in this? 46:48 46 minutes, 48 seconds The margin difference is like our it's not more than it's very minuscule margin 46:54 46 minutes, 54 seconds difference but uh maybe if in general trade we are making uh uh x percentage I 47:03 47 minutes, 3 seconds think we the the general trade versus this is hardly a 50 60 bits lower than uh higher than uh the general trade 47:12 47 minutes, 12 seconds because in our overall scheme of the things the margin itself is one and a half 2% at the end of the Okay. So any 47:19 47 minutes, 19 seconds change in uh 25 30 pips is quite a significant for us. Okay. Okay. And one final last question. 47:28 47 minutes, 28 seconds The the port aa has improved yi but it's been [clears throat] volatile on a on a sequential basis. Now what is the steady 47:37 47 minutes, 37 seconds state range that we should be building in across the cycles from this? So steady state range you can build is 47:44 47 minutes, 44 seconds around 3,600 rupees a ton or 3,500 for a safer side you you take it I think we should be able to deliver uh within that 47:53 47 minutes, 53 seconds range okay okay even even given given the volatility that's been going on with the world yes yes 48:01 48 minutes, 1 second okay okay thank you and good news thank you thank you before we take the next 48:10 48 minutes, 10 seconds question I reminded to all the participants. Anyone who wishes to ask a question, please press star N1. 48:18 48 minutes, 18 seconds The next question is from the line of Nilles Dshi from Prosperatory. Please go ahead. 48:26 48 minutes, 26 seconds Thanks for the opportunity sir. Uh congratulation for the strong volume and revenue growth in the quarter 4. Sir, my question is related to whether the 48:35 48 minutes, 35 seconds Wilmar define itself as a branded product company or a simple commodity company 48:42 48 minutes, 42 seconds because we are valued far below the peer group company like the LN LT food which has a brand of Dawat, KRBL brand, India, 48:51 48 minutes, 51 seconds Patanjali which are trading more than the one time of the revenue and we are far below because our market cap is 49:00 49 minutes around 26,000 K and revenue is 74,000 K res can you explain the reason for such 49:07 49 minutes, 7 seconds anomaly sir first of all AWL agree business is 49:15 49 minutes, 15 seconds food FMCG that we classify ourself because 70% of our revenue comes from the banks and I think this is what is 49:24 49 minutes, 24 seconds been we are saying and this is our this is how our numbers uh sell now As far as 49:31 49 minutes, 31 seconds the uh valuation is concerned uh I will not be able to comment too much on it 49:38 49 minutes, 38 seconds because it's ultimately a marketdriven price discovery. uh we can only say that 49:46 49 minutes, 46 seconds the kind of potential that AWL agri business has got the investor is taking their own time to understand that potential and and we are quite hopeful 49:55 49 minutes, 55 seconds and very positive that sooner or later investor will understand that potential and will give a valuation that we deserve. 50:05 50 minutes, 5 seconds Thank you sir. Next question. Why the management is constantly guiding the margin per turn? Because the we are 50:13 50 minutes, 13 seconds selling the product on as a as a brand and under the small packaging. When we are selling as a brand and under the 50:20 50 minutes, 20 seconds small packaging the margin much more higher than the per 10 per turn basis. 50:25 50 minutes, 25 seconds So what is the logic to guide the margin per turn rather than the in a percentage term of the each segment. 50:33 50 minutes, 33 seconds See the see the reason for guide given giving a uh guidance in margin per turn is very simple because uh the the 50:42 50 minutes, 42 seconds product levels at which we operate uh gets impacted due to the price movement in the commodities whether it is the 50:50 50 minutes, 50 seconds edible oil whether it is a wheat whether it's the rice and therefore what happens is that since we operate a very significantly strong brand uh most of 50:59 50 minutes, 59 seconds the time we are able to pass on the price increase or commodity price increase to the consumer and therefore 51:07 51 minutes, 7 seconds uh when you pass on the commodity price rise to the consumer your margin percentage actually goes down but you 51:14 51 minutes, 14 seconds normally able to maintain per kg or per ton of margin and that is the reason why we say we are not a pure play 51:22 51 minutes, 22 seconds discretionary FMCG product where you try and maintain margin as a percentage of a 51:30 51 minutes, 30 seconds revenue. Our revenue gets impacted because of the inflationary pressures and therefore we say it is better for us 51:37 51 minutes, 37 seconds better for investing community to track our margins on a per turn basis. 51:46 51 minutes, 46 seconds Thank you. The next question is from the line of Kel Ma from Buring AMC. Please go ahead. 51:54 51 minutes, 54 seconds Uh sir would like to know what portion of your 10 to 15% growth in volumes in edible oil was real consumer demand 52:03 52 minutes, 3 seconds versus distributor stock up and consumer stock up before the price hike and are you seeing slowdown in volumes in April 52:12 52 minutes, 12 seconds due to commercial LPG issue across the restaurant and interviews. 52:19 52 minutes, 19 seconds No see in our scheme of the things the primary and secondary keeps happening hand in hand. So you have a primary in one month and say followed by the 52:27 52 minutes, 27 seconds secondary in the another month. Uh what we are saying is that between one month and two month there are certain pipeline 52:35 52 minutes, 35 seconds corrections between the trade which keeps happening and therefore you might see some slum is one month which is getting then replicate which is get 52:42 52 minutes, 42 seconds which is getting replenished in the next month. So it's only a uh a stop gap which happens between one month and 52:49 52 minutes, 49 seconds another month. I think for us uh whatever we are able to sell I think it's reflective of the secondary uh 52:57 52 minutes, 57 seconds itself. Uh and uh on your second question uh does this uh u uh slowness 53:06 53 minutes, 6 seconds in the demand in month of April is suggestive the fact that there is a shortage of LPG? I don't think that is 53:13 53 minutes, 13 seconds there now in on the street. We don't see any shortage of LPG across the country and uh coming months we have quite a few 53:22 53 minutes, 22 seconds marriage season coming up and therefore we are hopeful that demand will pick up from here. 53:28 53 minutes, 28 seconds Understood. And also sir uh is it uh as the pal price reduces is is it a margin 53:36 53 minutes, 36 seconds remain stable or we have to pass on the uh low prices to the consumers also? 53:44 53 minutes, 44 seconds for us. No. So for us whether price goes up or price goes down uh since we operate in a brand uh we don't uh change 53:52 53 minutes, 52 seconds the prices uh quickly in the case whenever the prices goes up we have that ability of passing on the price to the consumer quickly because of the brand. 54:01 54 minutes, 1 second But when the prices goes down, we uh try and time our time it such that we 54:09 54 minutes, 9 seconds are able to get as far as margins uh before passing in to the customer. So that that happens both the way. 54:16 54 minutes, 16 seconds Understood. I'm sir uh are you also planning to enter into pal plantation business like your peers like Patanjali food and agro due to government push? 54:28 54 minutes, 28 seconds So no as we speak today we don't have any plan because our promoter Wilmar itself they are into a big plantation 54:37 54 minutes, 37 seconds uh in palm in Indonesia and Malaysia but as far as AWL is concerned as we speak today we don't have any plans to get 54:44 54 minutes, 44 seconds into it. Okay. And so as a industry voice, do you think the Indonesian government of increasing palm oil usage 54:53 54 minutes, 53 seconds in diesel instead of importing it uh will see some sort of a price hike and 55:01 55 minutes, 1 second lower production exports to other countries? 55:05 55 minutes, 5 seconds Yeah, I'll request Swin to answer this question. 55:08 55 minutes, 8 seconds Yeah. Hi. Uh so uh as you mentioned Indonesian government has uh planned to increase the biological uh consumption 55:17 55 minutes, 17 seconds to B50 and uh that is happening across the world that all the producing countries are increasing their 55:25 55 minutes, 25 seconds biodeiesel blending into the diesel. The main reason is today the biodeiesel is cheaper than the fossil diesel because 55:33 55 minutes, 33 seconds of the war situation and Indonesia is on the uh you know right path to uh to 55:41 55 minutes, 41 seconds announce and eventually consume more palm into biodeiesel that may not start from tomorrow but yes the plan is uh 55:50 55 minutes, 50 seconds from the second half of the year that may impact the price structure uh which may help a farm prices to go up and the 55:58 55 minutes, 58 seconds other competing oil to remain at a at a reasonable price spread which is 56:05 56 minutes, 5 seconds probably uh probably good for AWS because uh we are uh we are mainly uh 56:14 56 minutes, 14 seconds soft oil uh uh consumer pack very strong soft consumer pack company so I think eventually it will help us. 56:26 56 minutes, 26 seconds Thank you. The next question is from the line of DH Adwani from Indent General Insurance. Please go ahead. 56:35 56 minutes, 35 seconds Yeah. Uh congratulations on good set of numbers. What I wanted to ask is how you see how have we the traction inable oil 56:43 56 minutes, 43 seconds and foods in the month of April and how do you see it panning out in the month of May and June going forward. 56:51 56 minutes, 51 seconds You are you are talking from the consumption point of view. Yeah, from the consumption point of view see uh normally um April first half of 57:00 57 minutes April is always slow because the new year or the wedding season starts from 15th of April. So the first half we 57:08 57 minutes, 8 seconds always see little slow and then the demand picks up. Uh this year the 57:16 57 minutes, 16 seconds uh overall summer has set in uh quite strong and uh we have seen uh very high 57:23 57 minutes, 23 seconds temperatures. which has cut into the consumption overall. Uh small um disruptions in the out of home 57:31 57 minutes, 31 seconds consumption has been seen. Uh hotel workers or other workers going away for 57:38 57 minutes, 38 seconds either for the election or for the wheat harvest season has also disrupted uh the entire labor force in many of the 57:47 57 minutes, 47 seconds places. So this type of disruption we have seen again after 15th April onwards the season picks up and this will 57:56 57 minutes, 56 seconds continue till June. This year the wedding season is good. Uh so the consumption normally will be good one harvest has been good. So we expect the 58:05 58 minutes, 5 seconds rural to do well because we eat mustard and uh chana has been good harvest. We only now have to see how the monsoon 58:12 58 minutes, 12 seconds sets in. Overall overall consumption wise I think uh Q1 should be good. April is low but May and June will be pick up. 58:22 58 minutes, 22 seconds Okay. So overall a growth of double digits in terms of edible oil and foods edible oil. 58:29 58 minutes, 29 seconds Not possibly double digit but surely a single digit growth. Okay. All right. Thank you so much. 58:38 58 minutes, 38 seconds Thank you. That was the last question for today. I now hand the conference over to the management for closing comments. 58:47 58 minutes, 47 seconds Yeah, thank you very much uh for attending this call and keep tracking us. In case of any further queries, you can write down to our team and we will certainly respond. Thanks again. 58:57 58 minutes, 57 seconds Thank you on behalf of ICICI Securities Limited. That concludes this conference. 59:03 59 minutes, 3 seconds Thank you all for joining us today and you may now disconnect your lines.