Best Agrolife Limited — Q3 FY26

Best Agrolife Ltd Q3 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=usspUC5Y7H0 Published: 3 months ago

0:01 1 second Ladies and gentlemen, good day and welcome to the Q3 and 9 months FY26 conference call of Best Agro Life 0:10 10 seconds Limited. As a reminder, all participant lines will be in the listenonly mode and there will be an opportunity for you to 0:17 17 seconds ask questions after the presentation concludes. Should you need assistance during this conference call, please 0:24 24 seconds signal an operator by pressing star then zero on your touchstone phone. Please note that this conference is being recorded. 0:33 33 seconds This conference call may contain forward-looking statements about the company which are based on the beliefs, opinions, and expectations of the 0:42 42 seconds company as on date of this call. The statements are not the guarantees of future performance and involve risks and 0:50 50 seconds uncertaintities that are difficult to predict. Today from the management side we have with us Mr. Viml Kumar managing 0:58 58 seconds director, Mr. Surendra Sai, executive director and Mr. Vikas Jen, Chief Financial Officer. I would now like to 1:07 1 minute, 7 seconds hand the call over to Mr. Viml Kumar for his opening remarks. Thank you and over to you sir. 1:18 1 minute, 18 seconds Thank you. Good afternoon everyone and thank you for joining us today. I will start by sharing an overview of our 1:27 1 minute, 27 seconds performance for quarter 3 FI26 followed by our outlook for the coming quarters. 1:35 1 minute, 35 seconds During Q3 FI26, our sales performance was lower on a year on basis. 1:43 1 minute, 43 seconds This was mostly due to a combination of climate and market related factors. 1:49 1 minute, 49 seconds Q3 was significantly impacted by unusual weather conditions. October 2025 1:57 1 minute, 57 seconds witnessed exceptionally high rainfall across the country. 2:02 2 minutes, 2 seconds India recorded rainfall that was nearly 49% higher than the long period average 2:10 2 minutes, 10 seconds making it the second highest October rainfall since 2001. 2:16 2 minutes, 16 seconds Rainfall was also eric and uneven across many regions. North, west and central 2:22 2 minutes, 22 seconds India saw heavy rains with parts of Punjab and Hiana heavy flooding having floods. This condition 2:31 2 minutes, 31 seconds disrupted sewing schedule and the overall croping cycle. 2:36 2 minutes, 36 seconds At the same time, test pressure in petty crops remain very low. While this is positive for a crop health perspective, 2:46 2 minutes, 46 seconds it reduced the need for crop protection products. As a result, demand in some of our important markets were affected 2:55 2 minutes, 55 seconds during the quarter. In west India and central India, excess rainfall impacted sust programs. Important regions such as 3:04 3 minutes, 4 seconds Madhya Pradesh and South Rasan were affected. Because of this, inventory from Q2 got carried forward into quarter 3:12 3 minutes, 12 seconds 3. Fresh product placement and field activity could not take place as originally planned. Official data has 3:21 3 minutes, 21 seconds indicated that during October to December 2025 all kar crops exceptional 3:28 3 minutes, 28 seconds except steady traded and discount 9 to 30% of the MSP the impacted purchases by 3:36 3 minutes, 36 seconds the farmer for Rabi the weather condition remained favorable with stable temperatures across many growing regions but we saw 3:45 3 minutes, 45 seconds less disease and pest in crop like wheat cumin in potato and onion. 3:52 3 minutes, 52 seconds These costs usually contribute to our quarterfree revenues and this softness has a impact on our Q3 performance. On 4:01 4 minutes, 1 second the market side, industry face challenges related to high inventory of generic as a trade level. This lead to 4:09 4 minutes, 9 seconds higher price competition across the industry. Despite these near-term challenges, we remain confident in the long-term fundamentals of our business. 4:20 4 minutes, 20 seconds We are taking active actions for improving productivity, have better predictability and increasing increase profitability. 4:31 4 minutes, 31 seconds Step we are taking include databased inventory control, ERP analytic for tracking sales and collections, 4:39 4 minutes, 39 seconds comprehensive app for the sales team operations, connecting dealer and farmer through digital campaigns and introducing chat boards for the dealers. 4:50 4 minutes, 50 seconds These step have begun to show results and we hope to leverage data analytic and AI to take a company forward to 4:58 4 minutes, 58 seconds increase productivity, lower cost and improve capability. 5:04 5 minutes, 4 seconds Our patent product portfolio continue to perform and our distribution reach 5:10 5 minutes, 10 seconds remains strong. I am particularly encouraged by the performance of our two newly launched patent combination 5:19 5 minutes, 19 seconds Bestman and Pagin. Both products have received strong acceptance from the farming community. In this very first 5:28 5 minutes, 28 seconds year even we got the registration at the end of the season in the last uh we can say July and se August in the two month 5:37 5 minutes, 37 seconds we got very good response for this two product. So we are confident that coming year 262 27 we will get very good for this best managing. 5:48 5 minutes, 48 seconds Each product has crossed more than four lakh treated acres which is a strong validation of our innovation efforts. 5:56 5 minutes, 56 seconds Alongside growth initiative we have remained focused on improving operational efficiency. Our continued 6:03 6 minutes, 3 seconds emphasis on cost optimization, inventory reduction and disciplined receivables management has helped our balance sheet. 6:13 6 minutes, 13 seconds Looking ahead, seasonal activity is progressing well across central, western, eastern and northern India. 6:20 6 minutes, 20 seconds Field conditions are improving and farmer sentiment are is stable. With a strong pipeline, better cost discipline 6:28 6 minutes, 28 seconds and improving market conditions. We are positioned for growth in the coming quarters. We remain committed to deliver 6:36 6 minutes, 36 seconds delivering sustainable value to our farmer partners and stakeholders. 6:42 6 minutes, 42 seconds With that, I would like to hand over to Mr. Vikin who will walk you through the detailed financial performance for Q3 6:51 6 minutes, 51 seconds and 9 month 26. Thank you. 6:59 6 minutes, 59 seconds Thank you Vimli and uh good afternoon everyone. I'll take you through the financial performance for the quarter and 9 months ended December 31st 2025. 7:08 7 minutes, 8 seconds Starting with Q3 FI26 revenue from operations stood at 202.9 crores compared to 274.1 crores in Q3 FI25. 7:19 7 minutes, 19 seconds This was largely due to unseasonal rainfall affecting crop patterns. Gross margin for the quarter was 65 crores down from 89 crores in Q3 FI25. 7:30 7 minutes, 30 seconds Despite the unfavorable seasonal conditions, we were able to maintain gross margins of 32%. 7:36 7 minutes, 36 seconds AITA for the AITA for the quarter was a profit of 3.8 crores and improvement over a loss of 5.8 8 crores in Q3 FI25 7:45 7 minutes, 45 seconds with the AITA margin improving to 1.9% from a negative 2.1% in the same period last year. Operationally, we focused on 7:54 7 minutes, 54 seconds cost optimization with OPEX excluding the finance and depreciation reduced by 8:00 8 minutes 36% in Q3 and 20% over 9 months helping maintain financial discipline despite 8:08 8 minutes, 8 seconds lower revenue. On the profit after tax front, we reported a loss of 12.7 crores, improving on a loss of 24.2 crores in Q3 FI25. 8:20 8 minutes, 20 seconds Looking at the 9 month performance, revenue from operations was 11 cr compared to 1540 crores in 9 months FI25. 8:28 8 minutes, 28 seconds Gross margin stood at 345 crores, down from 468 crores in the same period last year. AITA for 9 months FI26 was 127 crores with an AITA margin of 11.5%. 8:41 8 minutes, 41 seconds While PAD for the period was 46.1 cr compared to 91.8 cr in 9 month FI25. 8:49 8 minutes, 49 seconds 9 month yearon-year sales declined by 28% with 23% attributable to volume decline and 5% due to price variation. 8:57 8 minutes, 57 seconds Despite the overall decline, the patented portfolio remained relatively stable with only a 5% reduction whereas 9:05 9 minutes, 5 seconds the non-patent portfolio declined by 48%. 9:08 9 minutes, 8 seconds Sales return were also much lower than last year largely due to implementation of the stringent sales return policies. 9:15 9 minutes, 15 seconds This concludes my overview of the financials. I now hand over to Mr. Sai who will walk you through the other business highlights. 9:26 9 minutes, 26 seconds Good afternoon everyone. 9:28 9 minutes, 28 seconds I will quickly take you through what's happening on the international business plan mainly around exports registration and IP. Uh starting with our exports 9:35 9 minutes, 35 seconds markets are moving steadily across regions across key markets progress remains steady. Our registration for our 9:43 9 minutes, 43 seconds patented products in Sri Lanka are moving well. Doctor preparation is underway for finalized products in Vietnam and in Morocco. We continued 9:50 9 minutes, 50 seconds discussion around pesticides and our patented nanogura. On the execution front, we finalized our third export 9:58 9 minutes, 58 seconds shipment to Sudan. Uh we continue to do these exports on a cash basis. Uh the IP side uh has been particularly strong. We 10:06 10 minutes, 6 seconds secured three patents for novel combination formulation. Uh in additions, we were awarded a process patent for an intermediate with export 10:14 10 minutes, 14 seconds potential. Uh this patent improves the yield and purity of the product. Uh beyond this we have filed four international patent applications which 10:22 10 minutes, 22 seconds continue to strengthen our global IP position. 10:26 10 minutes, 26 seconds We also received our first grant in a nano formulation. Our nano particulate fertilizer is aimed at improving nutrient efficiency across crop yields. 10:36 10 minutes, 36 seconds Overall we are seeing a steady progress both in expanding our international footprint and in building a strong innovation and IPL pipeline. Uh that's a quick uh just from my side. Thank you. 10:48 10 minutes, 48 seconds Uh we can now open the floor for questions. Thank you. 10:53 10 minutes, 53 seconds Thank you. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchstone telephone. 11:03 11 minutes, 3 seconds If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use 11:09 11 minutes, 9 seconds handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question Q assembles. Our 11:21 11 minutes, 21 seconds first question comes from the line of Hmon Gupta, an individual investor. Please go ahead. 11:28 11 minutes, 28 seconds Hi sir. Good afternoon. Good afternoon. 11:34 11 minutes, 34 seconds Uh sir in the previous call we were discussing mostly about the sales return and the H2 numbers and you were uh very 11:44 11 minutes, 44 seconds very confident that you will achieve 600 crores in H2 uh with uh positive flat in both the quarters 11:52 11 minutes, 52 seconds what happened sir suddenly it's not about sale return 12:01 12 minutes, 1 second what we talking about there is not uh that is under in the provision only this sale return that is under the provision only. 12:11 12 minutes, 11 seconds So a month mostly in the sense uh if you uh you're aware most part of September 12:19 12 minutes, 19 seconds August and September and including October there was continuous rainfalls especially in the north most of the 12:26 12 minutes, 26 seconds flooding has also happened. So this impacted a little bit of sales. So we were pretty confident that we've been positive. 12:34 12 minutes, 34 seconds Yeah. Can you hear me? 12:35 12 minutes, 35 seconds But we had this Yeah. Yeah. But we had this call in middle of November. So not October. 12:42 12 minutes, 42 seconds Yes, you're right. What I'm saying is that the liquidation and all the impact of 12:49 12 minutes, 49 seconds we come to know only at the end of December and at the end of the quarter. 12:54 12 minutes, 54 seconds So even though we were hopeful that we might do a good placement for Rabi but even Rabi is little softer. So the 13:01 13 minutes, 1 second placement also for Rabi has not happened up to the mark. So that was the reason that uh some sales was missed but still 13:09 13 minutes, 9 seconds uh as was committed that we'll we'll not have major losses like last year. Our key uh key key improvement was that we 13:19 13 minutes, 19 seconds had reduced our inventory drastically along with the reduction in OPEX even though we missed out a little bit on the profit front. 13:29 13 minutes, 29 seconds Sir, even in one of the call which you had in uh this end of December with one of the news channel you were clearly 13:37 13 minutes, 37 seconds mentioning that you are trying to have uh profitability in both the quarter and uh it is just a week before the 13:45 13 minutes, 45 seconds quarter ending and I'm not I'm not understanding why this suddenly how this loss has come. 13:53 13 minutes, 53 seconds Yeah Mr. payment as I mentioned mostly the happens from the placement happens 14:00 14 minutes from end of December and most of the liquidation will happen during now. So presently liquidation is going on. So 14:07 14 minutes, 7 seconds yes we were confident with respect to our profitability but we had missed a little bit on the placement front 14:14 14 minutes, 14 seconds because of the soft ruby season. So still as you see our our losses are still pretty limiting to 12 crores which 14:22 14 minutes, 22 seconds we could have done uh based on the placement what we were expecting but that didn't happen. So again uh our 14:31 14 minutes, 31 seconds expectation is that Q3 Q4 we should be uh not having losses. So we had little losses this year. Again we are trying for Q4 not to have any losses. 14:42 14 minutes, 42 seconds Okay. And in terms of this warrants issue sir uh do you have any communication now with the shareholders 14:51 14 minutes, 51 seconds are they willing to pay before May of this year based on the market prices we have to 14:58 14 minutes, 58 seconds wait for few more months before we can take any call as to what what will happen and if they don't pay before May what 15:07 15 minutes, 7 seconds will happen sir so as per the terms the amount will get 450 tweeted. So we don't want that 15:15 15 minutes, 15 seconds situation to happen but yeah based on the market situation we will take a call and uh discuss with the investors. 15:24 15 minutes, 24 seconds Okay. Okay sir. Thank you. Thank you. Thank you. 15:32 15 minutes, 32 seconds Thank you. The next question comes from the line of Gunit Singh from Counter Silic PMS. Please go ahead. 15:40 15 minutes, 40 seconds Hi sir. Thank you for the opportunity. 15:42 15 minutes, 42 seconds So I would like to understand uh if uh we have been losing market share uh if 15:48 15 minutes, 48 seconds we compare from FY 24 to currently so the revenues went down from 1800 CR to 15:54 15 minutes, 54 seconds about 1400 CR trading per month. So I want to understand what were the sales volumes for 9 months of FY25 versus the 16:03 16 minutes, 3 seconds 9 months currently to understand if we're losing any market share or not because if you see one of our competitors Dhanuka agreite they have 16:12 16 minutes, 12 seconds been maintaining their revenues as well as improving u theira margins. So for example our AITA margins in FY23 were 16:20 16 minutes, 20 seconds about 18% and theirs were also the same then but now theirs have gone up to about 20% but ours has come down to 10%. 16:28 16 minutes, 28 seconds So can you please help me understand uh all what's going on? 16:34 16 minutes, 34 seconds So so with respect to with respect to the market share. So uh obviously Danuka and we are obviously in a different 16:42 16 minutes, 42 seconds growth phase because ours is mostly recently that we have gone into B2C in recent three four years. But yeah 16:51 16 minutes, 51 seconds compared to the volumes our uh NDV at the beginning of the year itself was that we want to increase our uh uh sales 17:00 17 minutes of patented product. So which we were able to do. So our patent portfolio compared to last 9 months and this 9 17:07 17 minutes, 7 seconds months was just about minus 4%. That was also because of the prices otherwise our volumes are up. But for the non-patent 17:15 17 minutes, 15 seconds because last two years we had suffered little higher on the sales on the sales return front wherein we had to take little bit of inventory that also 17:23 17 minutes, 23 seconds affected our working capital. Our sales of the non-patent was lower. So that we said was lower by 35 to 40%. Yes, we 17:33 17 minutes, 33 seconds might have lost a little bit but not on the patent portfolio but on the non-patent uh sales a little bit and 17:40 17 minutes, 40 seconds with respect to Danuka yes only for Q3 if you see most of the companies who were able to show better results was 17:48 17 minutes, 48 seconds because of the exports but if you see other peer players what we have most of them had a reduction of 10 to 20% 17:56 17 minutes, 56 seconds reduction in the sales as well as in the profitability. 18:02 18 minutes, 2 seconds So, so overall our volumes have fallen by about 30 35%, if you compare year on year. So, uh whereas the competitors their volumes have not fallen this much. 18:13 18 minutes, 13 seconds So, can you I mean help me understand why are we losing market share? What are we not doing right and what is the forward for us? 18:22 18 minutes, 22 seconds Yes Mr. G. Um yeah in fact say we are losing our market share. It depend on the products like you know uh last uh 18:31 18 minutes, 31 seconds some years we were doing mix of some generics and our patent portfolio and now we are mainly focusing our patent 18:38 18 minutes, 38 seconds product definitely uh if I say when our patent product are selling more and our generics are we not selling that way. So 18:45 18 minutes, 45 seconds definitely our profitability should be high. Our beta margin should be high. 18:49 18 minutes, 49 seconds That is correct. Your your question is very correct and our concern is the same. But at the same time when we are 18:56 18 minutes, 56 seconds pushing when we are developing this kind of our patented molecule which in India if you see any of the company you say 19:04 19 minutes, 4 seconds the name no company have that much of uh own patent molecules they are doing in India. uh but uh this is the this is the 19:12 19 minutes, 12 seconds period where the last year and this year we are we are totally changing toward from genic to patent and when we are 19:20 19 minutes, 20 seconds developing these kind of patent products like our one product you know uh because you know some depth also so the wrong friend you know so that itself one wrong 19:28 19 minutes, 28 seconds product is we are selling more than 200 cr and it was we have started in 2022 mainly so in you can see in three year 19:36 19 minutes, 36 seconds four year 21 we started but 22 was the main year So in three year one product we are getting 200 cr but definitely 19:43 19 minutes, 43 seconds what about the others. So we are in the phase where we are doing marketing more where we are doing sales force more 19:51 19 minutes, 51 seconds where we are expenses more. So the main reason is our expenses is more and sometimes this kind of condition climing 19:58 19 minutes, 58 seconds things and to develop the new molecule little bit harder. So that is the only thing if we talk about the next year and 20:07 20 minutes, 7 seconds one year it is enough for us if if it will go well I can say like this way and we are in a some of the product like I 20:14 20 minutes, 14 seconds said you two products Twin and this our best man these two products are fantastically doing that can be bigger 20:21 20 minutes, 21 seconds than Pen in coming year that we are we can see so so it depend so of course but 20:28 20 minutes, 28 seconds reality is where we are now standing up near 10% 11% % of beta and uh we have to reach 20%. Um we are not far away but 20:37 20 minutes, 37 seconds the definitely the results are results and I hope next year will be uh very good. 20:42 20 minutes, 42 seconds Yes sir in my understanding uh it is because the R&D spends this year that the margins are falling down is that correct? So how much is the R&D spend 20:50 20 minutes, 50 seconds for 9 months and what are the margins for the patient products? 20:55 20 minutes, 55 seconds No I'm not talking about R&D. I'm talking about the expenses on the sales and marketing. 21:00 21 minutes sales and marketing as well as R&D but not R&D is not that big part uh but major part is sales and marketing for the new products 21:09 21 minutes, 9 seconds so uh if you talk about margin if you talk about please go ahead 21:17 21 minutes, 17 seconds if you talk about our gross margin so our gross margin already is around 32%. 21:22 21 minutes, 22 seconds So gross margin is good but when we come into the I beta I beta less just because of the uh new product it is taking some 21:30 21 minutes, 30 seconds time and if if any any climatic things or any anything come that will hit us uh more than others because we are in a new 21:38 21 minutes, 38 seconds product and development stage. So definitely nobody will try if there is a very less demand or already market is hitting in that way. So but the way we 21:46 21 minutes, 46 seconds are doing the way we are uh you know doing our new products so I I think one year is enough to change all the scenario because we are on the same path 21:55 21 minutes, 55 seconds and uh I think we on the right path over the last 2 three years we have seen uh generic slowly slowly it is decreasing 22:03 22 minutes, 3 seconds and uh the exclusive molecule which we have is increasing uh uh year by year but definitely we are ready with the 22:10 22 minutes, 10 seconds product so whenever chance we get and one year is enough to come Okay. So, so based on the current demand scenario and outlook, uh I mean what do 22:19 22 minutes, 19 seconds you feel like would should be our top line and ITA margins for FI27? Yeah, please. 22:28 22 minutes, 28 seconds So, uh FI27 still pretty early to say for this year for FI26 already for 9 months are saved 22:37 22 minutes, 37 seconds around 1100 crores. So, we expect to close the year between 1,300 to,400 crores. So this is for the current year 22:46 22 minutes, 46 seconds which will close by March 26. For 2627 still we are in the process to have our number but uh we should see our growth 22:55 22 minutes, 55 seconds coming back and uh we should be coming back to our earlier numbers which we had since our earlier two years. 23:03 23 minutes, 3 seconds On it we did a uh acquisition of about 140 cr in March 2024. But if we look at 23:10 23 minutes, 10 seconds the numbers for FY25 uh I mean it does not reflect either in the neither in the revenues nor in the bottom line. So can 23:19 23 minutes, 19 seconds you throw some light on uh uh how the operations are going there and I mean why did the numbers not reflect in our revenues? 23:29 23 minutes, 29 seconds See this year we are already at the beginning of the year itself we had uh uh given to say that this year we will 23:37 23 minutes, 37 seconds stabilize because what happens is when the sales team since last two years were in a mode to do a lot of placements and 23:44 23 minutes, 44 seconds do higher sales but because of sales didn't we were getting affected on our inventory and working capital front trend. So this one year it takes time 23:53 23 minutes, 53 seconds for the sales team to come to newer policies and we had already informed at the beginning that uh this year we will stabilize and once we are in good shape 24:02 24 minutes, 2 seconds with respect to our balance sheet next year we can think of growing our sales. 24:07 24 minutes, 7 seconds So it was not that it was it was surprised to some extent because of the continuous rainfall that we missed around uh 70 to 100 crores of sales but 24:17 24 minutes, 17 seconds otherwise this year was expected as we had thought at the beginning of the year with respect to as I said inventory 24:24 24 minutes, 24 seconds front reduction in the inventory reduction in sales return and reduction in opex. Now all these three are mostly 24:30 24 minutes, 30 seconds achieved and there is uh uh there is already awareness in the market with respect to dealers and sales team that 24:39 24 minutes, 39 seconds we are more concentrating on our patented products and uh we will not accept such huge sales return which is 24:46 24 minutes, 46 seconds stabilized this year. So next year again we are talking about the present numbers what we are taking from sales team. We are uh pretty confident of having our 24:56 24 minutes, 56 seconds growth back especially that we are our three products which we introduced last year. It was little late but next year 25:03 25 minutes, 3 seconds we'll see the full results and also three new products which are going to come. So so our growth will be back from next year uh after whatever we have done 25:13 25 minutes, 13 seconds in this year with respect to stabilizing the inventory and working capital. 25:18 25 minutes, 18 seconds Okay. So my last question would be uh what is the revenge potential from our existing capacity and in your judgment 25:26 25 minutes, 26 seconds and opinion do you think that the worst is uh behind us and I mean our uh revenues and VA margins cannot go uh 25:34 25 minutes, 34 seconds below the current levels and there's only uh upside uh going forward. 25:41 25 minutes, 41 seconds So, so our capacity so earlier at 1,800 crores also we have sufficient capacity. 25:47 25 minutes, 47 seconds So, based on our existing capacity, we can do 2,000 plus crores. So, capacity is not a constraint. Uh so, so that 25:56 25 minutes, 56 seconds thing more or less we can easily achieve from our existing capacity without actually adding anything. So it was only 26:04 26 minutes, 4 seconds because that our uh B2C business was pretty much uh happened or we pushed a 26:11 26 minutes, 11 seconds lot in last 2 three years. So whatever we had gained from around 400 crores to today 1,000 crores in our branded business happened in last two to three 26:20 26 minutes, 20 seconds years. So we took a year to stabilize that operation and we'll see that next year uh our our numbers will go up. So 26:30 26 minutes, 30 seconds our capacity is more than enough for us and even our opex which we had reduced drastically asked have stabilized we had 26:38 26 minutes, 38 seconds done a lot of restructuring on our uh locations on the territories that also has happened and have stabilized this year. 26:50 26 minutes, 50 seconds All right sir go ahead. Thank you very much John. 26:54 26 minutes, 54 seconds Thank you. The next question comes from the line of Chintan Meta, an individual investor. Please go ahead. 27:02 27 minutes, 2 seconds Uh hello sir. So my name is uh so thank you for numbers. Uh I just want to understand uh what is the projection for 27:11 27 minutes, 11 seconds the international expansion uh for web going forward like because uh the margins will be much better. So where we 27:18 27 minutes, 18 seconds are looking where we are looking uh in terms of numbers or in terms of potential in the international expansion. 27:26 27 minutes, 26 seconds Yes please. Uh so I so in terms of uh in terms of a new revenue stream uh exports 27:34 27 minutes, 34 seconds and international markets will definitely be one big area and in that one of the key challenges in 27:41 27 minutes, 41 seconds case of uh uh international business is the number of registrations. So currently we are progressing on our patented portfolio registrations uh 27:49 27 minutes, 49 seconds which are expensive and there we have found very good partners who are doing that. Uh so in addition to this particular registration process which is 27:57 27 minutes, 57 seconds going on there is a parallel R&D which is going on in terms of identifying certain intermediates which can also be sold abroad where the registration cost 28:05 28 minutes, 5 seconds or the registration challenges do not exist. Uh the third uh thing that has been working on is in the area of nanoa where we are seeing a good amount of a 28:13 28 minutes, 13 seconds potential abroad. So as a result of these multiple uh initiatives that we have taken on the export front, we 28:20 28 minutes, 20 seconds opened our China subsidiary and China subsidiary currently is doing uh at least it is doing a some degree of 28:28 28 minutes, 28 seconds revenue although it is okay on the gross margin. There is a slight amount of loss in terms of the net profitability that 28:36 28 minutes, 36 seconds is because of the initial expenses. uh this this China subsidiary is currently doing some degree of trading practices for buying and selling in China itself. 28:46 28 minutes, 46 seconds Overall overall there is a there is a potential upside that we see in terms of our export revenues. uh it would be a 28:54 28 minutes, 54 seconds little bit difficult to be able to give a hard number because that would be a projection but uh we do expect our export revenues to be a good percentage 29:02 29 minutes, 2 seconds of our to total topline and as you mentioned correctly yes uh India has been doing a significant amount of 29:10 29 minutes, 10 seconds exports we are one of the largest exporters of pesticides in the whole world 29:18 29 minutes, 18 seconds given given the challenges in China and other things I do expect and the options and the advantages in India. I do expect 29:25 29 minutes, 25 seconds this export market to grow. We are little slow on this particular front because uh initially we have not been able to you know leverage and catch this 29:34 29 minutes, 34 seconds but uh but yes this will be this will be one big area for us going ahead. 29:41 29 minutes, 41 seconds Okay. The followup question is that like let's say for example the patent is granted. how much time it takes from registration because I'm not like uh we 29:49 29 minutes, 49 seconds I do not have understanding of how that registration works but if I want to understand if registration is completed what is the time frame or a time period 29:58 29 minutes, 58 seconds uh from which the you know revenue gets start generating after the patent is granted because I I uh in the recent uh uh discussion you have mentioned one of 30:06 30 minutes, 6 seconds the patent is granted right so that does mean that the a product can be developed on that or like what is the time frame or a time duration that it takes from a 30:15 30 minutes, 15 seconds patent grant grant to convert into the real numbers like what what the journey looks like. 30:23 30 minutes, 23 seconds Yes. Uh well that's a good question because in case of the agrochemical industry what happens is getting the patent is little different from being 30:31 30 minutes, 31 seconds registering that particular agrochemical in that country and being allowed to export and sale. Uh the two are 30:38 30 minutes, 38 seconds different. Now what happens is while we are getting an an patent portfolio as far as the export is concerned that 30:46 30 minutes, 46 seconds country country's registration time takes anywhere between 2 to 6 years in case of Brazil it may take even more 30:53 30 minutes, 53 seconds longer than that. Uh so the reason for that is very simple. uh this is a patented product and hence it is a new 31:00 31 minutes new formulation or a new technical sort of combination in that particular country and hence the amount of a regulatory oversight is more. So uh we 31:10 31 minutes, 10 seconds have started multiple uh products registration in multiple countries. 31:15 31 minutes, 15 seconds These will come up anywhere between the next I would say certain certain things will be available for you registered in the next year especially in Vietnam and 31:24 31 minutes, 24 seconds uh Sri Lanka and from the year the that is 27 onwards uh you should be able to see a good amount of a revenue once this 31:32 31 minutes, 32 seconds is registered uh the sale sale of that particular product can happen. 31:38 31 minutes, 38 seconds Okay. Okay. So the this is similar to the Sharda crop chem. So basically if we are uh and any kind of a European 31:47 31 minutes, 47 seconds agreement that recently we completed the European uh union. So is there going to be any benefit beneficial for that group and trade deal? So as of this Yeah. 31:59 31 minutes, 59 seconds Yeah. As of this minute, if we had had multiple active registration for registered products, we could have immediately been able to utilize the 32:07 32 minutes, 7 seconds opening up of the uh both the US trade market, European market as well as in certain parts of the Australian market. 32:14 32 minutes, 14 seconds Uh but right now we don't have that. Uh so once our products get registered, yes, obviously the open trade regime which is happening that will help us a lot. 32:24 32 minutes, 24 seconds Okay. 32:24 32 minutes, 24 seconds In fact, it will help us more because Yeah. Yeah. It will help us more because what we are registering is all high value high margin products. 32:33 32 minutes, 33 seconds Okay sir. Thank you. Okay. 32:38 32 minutes, 38 seconds The next question comes from the line of Kas Chander an individual investor. Please go ahead. 32:44 32 minutes, 44 seconds Uh hi good afternoon. Uh my question is basically regarding receivables. So it has been observed that receivables below 32:51 32 minutes, 51 seconds 6 months are continuously I mean being increasing uh ratio wise then the receables more than 6 months. So can you please elaborate uh in this front? 33:03 33 minutes, 3 seconds Yeah. So receivables more or less it's in line with what we had previous year. So this year's uh 33:12 33 minutes, 12 seconds because of the continuous rainfall and there was a delay in the produce and the same uh being repaid by the government. 33:20 33 minutes, 20 seconds So there was a delay by say just about a month or so but most of the receivables are under control and uh there's not a 33:29 33 minutes, 29 seconds big surprise there actually ratio wise if you if you see ratio wise I mean uh initially 33:38 33 minutes, 38 seconds uh in the financial year previous financial year previous financial years uh if we see so uh ratio was lower lower 33:49 33 minutes, 49 seconds side 3 months uh particularly if you see three uh three 3 months below it was uh somewhere 33:57 33 minutes, 57 seconds around so I'll uh just open that thing 34:04 34 minutes, 4 seconds so if we look at the balance sheet so uh in it was 34:22 34 minutes, 22 seconds So taking little time so sorry about that. So uh for the time being I'll ask 34:29 34 minutes, 29 seconds uh second question. So uh yeah as you mentioned that you are most focusing on the patented product. So what is the time for these products? 34:40 34 minutes, 40 seconds total addressable market we are we are focusing on the patented products we are 34:47 34 minutes, 47 seconds not focusing on non-patented the generic ones so and with respect to tam it's it's not uh 34:56 34 minutes, 56 seconds the overall market uh for the agri industry in that we define which are the highest selling uh crops and within that 35:05 35 minutes, 5 seconds crops which are the solutions we want to provide so for each of the crops would be different but yeah we are still we as 35:13 35 minutes, 13 seconds others are playing we are playing in the overall market which is around 3.5 billion or so 35:19 35 minutes, 19 seconds okay okay so that receable part uh in the March 2022 35:26 35 minutes, 26 seconds so uh receivable 6 months were 38 crores as compared to receables under 6 months was 2 to3 now it has increased 35:35 35 minutes, 35 seconds drastically uh for year 2025 if we So it is 182 uh over 6 months and uh 35:45 35 minutes, 45 seconds under 6 months it is 400. So ratio wise it is very uh at the higher side. So that part I was talking about. 35:55 35 minutes, 55 seconds So, so as I said uh in in our business the collection period is defined based on how the produce sells and the money 36:04 36 minutes, 4 seconds flows from the government through the uh uh farmers dealers and to us. So this 36:11 36 minutes, 11 seconds this year mostly it has been delayed by a month or so but we don't see any major uh surprises as I said. So most of our 36:19 36 minutes, 19 seconds collections will happen now between December to April. So each month we are getting collections and each month we see that there's a reduction in in in 36:27 36 minutes, 27 seconds the six months. So March once you see you'll see a improvement in our more than six months from what you would have seen in September or March numbers. 36:37 36 minutes, 37 seconds Okay. Great. So my last question is uh as you mentioned uh that the company will try to achieve somewhere between 36:46 36 minutes, 46 seconds 1300 to,400 uh cr of revenue in this particular financial year. So can you please uh let us know about the AITA margin? 36:58 36 minutes, 58 seconds So AITA with with respect to AIA we will be uh similarly our endeavor would be to so possibly not to have losses but we'll 37:06 37 minutes, 6 seconds have minimum profits. So our EIA would be little higher than what we have in Q3 because Q3 and Q4 are softer seasons 37:15 37 minutes, 15 seconds compared to main Q1 and Q2. So again like how we had planned for Q3 our plan is not to have losses. So AITA would be 37:25 37 minutes, 25 seconds uh would be in similar lines like current quarter but it would be little better and I try we will try not to have losses in in Q4. 37:34 37 minutes, 34 seconds Actually I was talking about annualized basis uh for financial year annualized basis annualized basis uh we 37:41 37 minutes, 41 seconds will be in the range of around we'll be at around 12% or so. So that would be our uh EIA targets. 37:52 37 minutes, 52 seconds Thank you. That's all from my Thank you. The next question comes from the line of Vive Rotella and individual investor. Please go ahead. 38:04 38 minutes, 4 seconds Yeah. Hi all good afternoon. 38:06 38 minutes, 6 seconds So basically I have question regarding the outstanding warrants. So the current the exercise price for them is 64 rupees 38:14 38 minutes, 14 seconds per share. Okay. While the current market price is around 18.94 and it may face further down downside because of 38:22 38 minutes, 22 seconds the recent results as it is in lower circuit today also. So in this context I just wanted to know what is the management view on this warrant 38:30 38 minutes, 30 seconds conversion and how like should they all think about the potential impact of this. 38:37 38 minutes, 37 seconds So our price was 640 that was pre-split and pre- bonus. Now if I consider the 38:44 38 minutes, 44 seconds split and bonus it becomes yeah after considering the split and bonus it is supposed to get 42. So 640 is equivalent 38:53 38 minutes, 53 seconds to 42. So instead of 42 here we are at around between close to 20 or so but uh 39:00 39 minutes as I said we are hopeful that we are improving. So we are not having the losses like what we had last year. So we 39:07 39 minutes, 7 seconds hope that the prices would come to a level where investors would feel that okay they will pay that balance amount. 39:15 39 minutes, 15 seconds So we are still uh uh wait for our March numbers and then we'll take a decision. 39:22 39 minutes, 22 seconds Yeah. But uh during like I'm following it since two years. Okay. So during this period the company's revenues have been 39:30 39 minutes, 30 seconds like continued to decline. I understand that the business model has undergone changes like you are focusing more on patented products but uh in several 39:39 39 minutes, 39 seconds earnings because mostly I uh I hear all the earnings. So the management has indicated that that the worst phase is 39:47 39 minutes, 47 seconds behind but the financial performance like whether it is revenue or profitability like something happens 39:55 39 minutes, 55 seconds like sometimes uh the weather issue sometimes something so can you like uh tell us like uh uh when we can expect 40:03 40 minutes, 3 seconds the revenue growth to be back at least uh like when it uh to our peak numbers I think it was around 20 uh 2021 or 2022. 40:13 40 minutes, 13 seconds So can we expect the same for? Yeah. 40:17 40 minutes, 17 seconds So so for this year it was not that in one or two quarters we could have come back to a normal term. So for the entire 40:26 40 minutes, 26 seconds year our guidance was that our revenue would be lower but we would still go on to improve our profitability percentages 40:34 40 minutes, 34 seconds and reduction in our opex because we had spent heavily on on the nine patents what we had launched. So most of it we 40:43 40 minutes, 43 seconds are able to achieve uh in terms of uh what we had given the guidance but it's not that this year is is was like a big 40:51 40 minutes, 51 seconds surprise surprise was as I said was only to the extent of 50 100 crores which we missed otherwise our results would have 40:58 40 minutes, 58 seconds been better. So, so this year as I this year would be the worst what we say and the worst will be for us and from next 41:06 41 minutes, 6 seconds June onwards already uh we have our plans and we have our policies which are in place uh which 41:15 41 minutes, 15 seconds which till last year was we were about we were changing those policies. So now we are more stable with respect to our 41:23 41 minutes, 23 seconds the the number of people the policies what we have and the products which we want to sell and also on the uh supply 41:30 41 minutes, 30 seconds chain front as well. So so the growth will come and it will come from the next year immediately from June onwards you'll see the growth which will be back. 41:41 41 minutes, 41 seconds Okay. So, just wanted to know one thing. 41:43 41 minutes, 43 seconds Suppose uh if we want to do 1,800 K or 2,000 K of revenue and uh so when can we 41:51 41 minutes, 51 seconds expect that and like within 1 2 years or it will take more time and what should be the P at that time like uh pro profit 41:59 41 minutes, 59 seconds before tax and profit after tax what can be the operating profit if you can tell like a little bit if you can guide it. 42:07 42 minutes, 7 seconds Yeah. Um yeah your question is right in fact next two year uh we are of course changing that number and next year uh we 42:16 42 minutes, 16 seconds will come around 1600700 1800 also uh because just I told in the 42:23 42 minutes, 23 seconds in the Mr. unique uh question also that we are already in the in the uh same path where we are developing our new 42:31 42 minutes, 31 seconds products and each product will give us good revenue in coming year in FI27 and uh I firmly believe FI28 will be the 42:41 42 minutes, 41 seconds again uh very good year uh because each our each of our product which is patented each of our product will have you know 2 year, 3 year, four year, 5 42:49 42 minutes, 49 seconds year history and when there is a history of 3 year, four year uh there will be a big revenue uh we can expect from uh these products and that the profitability will be again very high. 43:00 43 minutes Uh so again I I want to say earlier we were doing in a different way and then we change our way because that was also 43:07 43 minutes, 7 seconds uh important because our inventory level now is very uh drastically down which we uh which is required by our which which 43:15 43 minutes, 15 seconds was required to our balance sheet good balance sheet and also our data set reduced. Uh so so that was our agenda for this current year but definitely uh 43:24 43 minutes, 24 seconds next coming year because of our patented molecule definitely we will do uh better and the revenue uh I can say in next two 43:33 43 minutes, 33 seconds years again we will touch to uh more than uh uh whatever we have did in the past. So what can be the OPM percent can 43:41 43 minutes, 41 seconds you tell me like it you told around 20% we can expect right after two year you can say 43:49 43 minutes, 49 seconds so this year it won't be 20%. Like if we talk about this year like this in the next financial year that is coming yeah 43:58 43 minutes, 58 seconds not 20 but definitely our target is there but I cannot say 20 but definitely it will be uh 16 to 17% will be minimum. 44:07 44 minutes, 7 seconds Okay. So like you are sure like the worst is over like it can't be like worse than this right like just wanted to confirm that thing. 44:16 44 minutes, 16 seconds Yeah. Yeah. uh we can say we can say because um because because I told you everything uh why it is it is it hit 44:24 44 minutes, 24 seconds because we want to create a discipline and we have in my commentary also I said we have done very well uh many things 44:32 44 minutes, 32 seconds databased inventory control ERP and our uh you know comprehensive apps and uh also we are now directly uh looking at 44:40 44 minutes, 40 seconds the liquidation at the farmer level. So definitely when we are tightening this and uh making something like chat board for the dealers. So so many things we 44:49 44 minutes, 49 seconds have did in the one year it was a developing year for us for the new product again I would say and uh definitely I can say according to the 44:57 44 minutes, 57 seconds performance of balance sheet uh definitely you can say I can say we have seen the worst and uh now it will be better only. 45:05 45 minutes, 5 seconds Okay. Okay. Thank you so much for your answers really helpful. Yeah. Thank you. 45:11 45 minutes, 11 seconds Thank you. The next question comes from the line of Saky Kapoor from Kapoor Company. Please go ahead. 45:18 45 minutes, 18 seconds Yeah, sir. I hope sir I'm audible. Yeah. Yeah. Yes. Yeah. 45:26 45 minutes, 26 seconds Just taking into consideration correction exercise. 45:57 45 minutes, 57 seconds already% 46:23 46 minutes, 23 seconds depending depending upon the market condition. 46:32 46 minutes, 32 seconds Other than that, you walk the talk. 46:44 46 minutes, 44 seconds Yes, you are there on the track. 46:49 46 minutes, 49 seconds At 47:03 47 minutes, 3 seconds least thank you and thank you for that to showing interest. 47:18 47 minutes, 18 seconds Um and definitely your concern is correct and as you said uh I have a major shareholding so definitely my concern are the same always with the 47:26 47 minutes, 26 seconds company within the company but definitely uh what I can control on what I can change here uh as a as a small shareholder you cannot do but uh 47:34 47 minutes, 34 seconds definitely I'm doing uh my job and our team is extremely doing very well and in other parties I will say because we all 47:42 47 minutes, 42 seconds are because you are our shareholder stakeholders so I can frankly tell you if other way I would say I'm very happy with the teamwork which ground work they 47:51 47 minutes, 51 seconds are doing if anybody on the call who knows the farmers and every you know who has you know related to dealers if you check in some of the market like 47:59 47 minutes, 59 seconds Maharashtra or if you check some of the Maharash like Gujaratana or some of the states you know they our 48:06 48 minutes, 6 seconds our brand is you know they don't they don't know about balance sheet they don't know about uh you know share guys they don't know about anything but they 48:14 48 minutes, 14 seconds know about uh the the new company which is the new company who is growing very fast in the brand image of the company 48:21 48 minutes, 21 seconds like Ron Pen or Bestro. So it is very popular in the in the in the in the farmer community I would say. So 48:30 48 minutes, 30 seconds I I feel sometime very happy but definitely it is we are doing business. 48:34 48 minutes, 34 seconds So the profitability is equally important and the revenue is also equally important and uh I can say from 48:41 48 minutes, 41 seconds next year it will be definitely better and again I would say last time 48:50 48 minutes, 50 seconds it was worse. So I cannot say worse but definitely we have done much corrections and I don't think so there is any surprise on the downward side you will 48:59 48 minutes, 59 seconds get. Of course I'm hoping uh you should get surprised on the upward side and uh we are doing for our best for that thing. 49:08 49 minutes, 8 seconds Sir and sir uh sales return pay whatever course correction was needed I think. So uh uh Viki would would be answering that 49:16 49 minutes, 16 seconds better that that provision and all if you could just give us some color for the quarter how much have been our sales return and 49:35 49 minutes, 35 seconds So, so if I tell you overall last year almost 280 49:44 49 minutes, 44 seconds months 180. So we had drastically reduced 49:57 49 minutes, 57 seconds sales excess rainfall. So for example 70 provision but what we got was around 50:06 50 minutes, 6 seconds 90 crores. So we thought we'll end up with 40 50 crores of sales return but 50:17 50 minutes, 17 seconds across different crops and still the deviation overall 9 months 9 months 50:25 50 minutes, 25 seconds 40 to 45% sales return and specific question of Q3 around 70 but 50:34 50 minutes, 34 seconds returns actually okay sir fourth quarter 50:47 50 minutes, 47 seconds fourth quarter. 50:55 50 minutes, 55 seconds So we will do little bit of sales uh but with respect to sales return almost 51:03 51 minutes, 3 seconds Q4% 51:24 51 minutes, 24 seconds because of the prices 51:34 51 minutes, 34 seconds but we'll do reasonably okay and try to ensure lastes 51:50 51 minutes, 50 seconds if I remember correctly Yes, it is still on hold. 52:09 52 minutes, 9 seconds man. 52:31 52 minutes, 31 seconds that is give us gains that we are anticipating and we hope for we will participate in this journey with best. 52:39 52 minutes, 39 seconds Uh thank you sir. Thank you. Thank you. 52:44 52 minutes, 44 seconds The next question comes from the line of Vijay Jawer an individual investor. Please go ahead. 52:52 52 minutes, 52 seconds Hi sir, please go ahead. Very want to understand whether we have 53:00 53 minutes utilized the proceeds which we have got from the preferential element whether we what 53:10 53 minutes, 10 seconds the amount which we received during the preferential uh have we used it or not? 53:18 53 minutes, 18 seconds Yeah. Yeah. So the 25% amount what we got those as part of our uh utilization this thing we already utilized it for 53:26 53 minutes, 26 seconds the working capital purpose but uh we need to but we have actually planned for a capeex right some a new 53:34 53 minutes, 34 seconds plant so I thought that we are using that particular amount uh to fund that capeex am I wrong 53:41 53 minutes, 41 seconds so the capeex the capeex was only from that second branch from that 75% which we had part. So that we'll see only once 53:50 53 minutes, 50 seconds we get that balance 75% we'll think of the KPEX. 53:55 53 minutes, 55 seconds So are we looking for any fund rise because we are already at a lifetime low in our share prices. So are we looking 54:02 54 minutes, 2 seconds for any fund rise from promoter or some some institutions. 54:07 54 minutes, 7 seconds So for KPEX we are not doing anything as of now. 54:11 54 minutes, 11 seconds Okay sir. But uh we have a due of uh due around June right? So as the the earlier 54:18 54 minutes, 18 seconds participant asked that uh the price is like uh 50 60% down from what they have actually subscribed. So it looks like 54:26 54 minutes, 26 seconds impossible uh to receive the balance 75% amount. So is there any uh plan B? 54:35 54 minutes, 35 seconds So so see we don't want to commit as of now that okay we are not going to get that 75 and we'll do something else. So 54:44 54 minutes, 44 seconds uh the capeex plan can hold because we have enough capacities to to go for our 54:51 54 minutes, 51 seconds target for next two years. So we will see if if the situation will improve if uh if we feel that we are in a better 54:59 54 minutes, 59 seconds position then we'll think of uh taking the funding from outside but yeah presently we are not uh uh thinking 55:06 55 minutes, 6 seconds about that and sir we have reports from weather agencies. So there is a possible of El 55:13 55 minutes, 13 seconds Nino uh in uh in current in next financial year. So do you have any plans 55:20 55 minutes, 20 seconds because you have now your promoter starts giving the guidance of 1,700,800 cr and uh if at all there is a 55:30 55 minutes, 30 seconds a possibility of l you know then uh do you feel that there is a risk even to the current revenue levels? 55:38 55 minutes, 38 seconds So so 171800 was for for next two years. 55:42 55 minutes, 42 seconds So in a sense uh so next year our plan would be to achieve at least at around higher than 1,500 crores 15600 crores 55:50 55 minutes, 50 seconds and then going up to 17800 crores. So, El Nino obviously there are presently some articles going on to say that there 55:57 55 minutes, 57 seconds are Elnino effect which might be there but the our our nature of industry is that we cannot be waiting to see that 56:06 56 minutes, 6 seconds how it pans out. We have to uh work on our supply chain much before. So we will work with a caution. uh but because we 56:15 56 minutes, 15 seconds have already put uh good good policies to ensure that we'll not place too much and then later on take it that will help 56:23 56 minutes, 23 seconds us so so yes elofort might be there but it it will show only in July August but before that we have to prepare ourselves 56:32 56 minutes, 32 seconds with the inventory which we will do but we'll go with a caution sir uh there is a person called Rajkumar 56:41 56 minutes, 41 seconds in our shareholding pattern so is there is there like any connection to him with the promoter 56:52 56 minutes, 52 seconds not I'm not aware of Rajkumar no no there is a person called Rajkumar 56:59 56 minutes, 59 seconds who is holding 7 to 8% equity in best life so is there any connection with the promoter group 57:08 57 minutes, 8 seconds no no I don't think so because he's a he's a huge equity uh person in the west agro and uh he has 57:17 57 minutes, 17 seconds sold quite a large chunk uh during the split and bonus time. So I I felt that he's an insider or something because 57:27 57 minutes, 27 seconds he keeps on Yeah, you know there's no relation as such. 57:32 57 minutes, 32 seconds Yes, possibly he might have uh higher holdings but then we don't know about it with respect to the relation promoter. 57:42 57 minutes, 42 seconds There's no relationship with your motor. Okay. 57:45 57 minutes, 45 seconds So yeah. So uh what's your expectation from Q4 because we are already at a 12 12 cr loss in Q3. So do you think that 57:54 57 minutes, 54 seconds it will continue or uh we'll have a u uh better uh quarter? Our expectation is 58:03 58 minutes, 3 seconds not to have losses. So in Q4 last year we had we had very high losses. So so 58:10 58 minutes, 10 seconds based on already uh we had worked on the OPEX part which we are releasing drastically. So so sales obviously as I 58:19 58 minutes, 19 seconds said the demand is little uh softer. So we don't we don't expect very high sales but we are we expect not to go into 58:27 58 minutes, 27 seconds losses and have uh even the small profit but our plan is not to have losses 58:34 58 minutes, 34 seconds sir because we are already paying 50 to 55 cr uh uh interest to the banks and our profitability is below since uh last 58:42 58 minutes, 42 seconds few years. So how do you think that the business is sustainable because our interest cost is more than our net profit. 58:50 58 minutes, 50 seconds See there is a huge potential because based on the market situation we see that many of the companies doesn't have 58:59 58 minutes, 59 seconds this kind of portfolio what we have now obviously company is going through a situation wherein we had gone heavily 59:07 59 minutes, 7 seconds into the market and faced certain situation which we are trying to improve and this year we already knew that the 59:14 59 minutes, 14 seconds steps if we take there might be some reduction in the sales. So yes, sales are down, profitability is not so 59:22 59 minutes, 22 seconds heavily lower. So we are still profitable for full year and we'll remain profitable. It's only that after 59:30 59 minutes, 30 seconds uh uh going through these policies now we are in much comfortable position with respect to our inventory. Even our 59:38 59 minutes, 38 seconds dealers are more comfortable with respect to the policies what we are doing and even our sales team is more stable now because last year they 59:46 59 minutes, 46 seconds because of restructuring of territories there might be situation where people are moving from one place to another but 59:53 59 minutes, 53 seconds now everything is pretty stable and we are in a much better position to grow 1:00:00 1 hour because of our portfolio strength. So that means we are going to do this year and we are hopeful that if everything 1:00:08 1 hour, 8 seconds goes well we will see much much better numbers this year. Why has the interest cost gone up in Q3? 1:00:18 1 hour, 18 seconds So interest cost obviously would be based on uh uh the loan what you would have utilized. So if if there was a 1:00:27 1 hour, 27 seconds delay by a month or so uh if dealers have paid late generally we charge dealers with little bit of interest for 1:00:35 1 hour, 35 seconds delay payments. So that we do based on after they do the payment. So even though on one side there will be interest. So this uh next this quarter 1:00:44 1 hour, 44 seconds or next quarter you see that we might be charging some amount as recovery of that interest. So it's not that we are paying 1:00:51 1 hour, 51 seconds higher. We would be recovering this from the dealer who are paying uh little later to us. 1:00:57 1 hour, 57 seconds Thank you ladies and gentlemen. Due to time constraints we would take that as the last question for today. I would now like to hand the conference over to Mr. 1:01:06 1 hour, 1 minute, 6 seconds Surendra Ray for the closing remarks. 1:01:11 1 hour, 1 minute, 11 seconds Uh thank you everyone for your time today. Uh we appreciate your uh interest, feedback and confidence in the 1:01:18 1 hour, 1 minute, 18 seconds company. Uh your engagement will help us sharpen our focus and stay aligned with long-term value creation. I would also 1:01:26 1 hour, 1 minute, 26 seconds like to thank our employees, partners, customers and investors for their support and commitment. Uh we look forward to staying engaged with you and 1:01:34 1 hour, 1 minute, 34 seconds updating you on the progress in the coming quarter. Uh thank you very much and have a good good afternoon. 1:01:41 1 hour, 1 minute, 41 seconds Thank you sir. Ladies and gentlemen, on behalf of Best Agro Life Limited, that concludes this conference call.