CCL Products (India) Limited — Q1 FY26

CCL Products (India) Ltd Q1 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=w3xSMfJn7ng Published: 9 months ago

0:00 [Music] 0:01 1 second Ladies and gentlemen, good day and welcome to the CCL Products India Limited Q and FI26 earnings conference 0:08 8 seconds call hosted by Antic Stock Broking Limited. As a reminder, all participant lines will be in the listenonly mode and 0:16 16 seconds there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please 0:25 25 seconds signal an operator by pressing star then zero on your touchstone phone. Please note that this conference has been recorded. I now hand the conference over 0:34 34 seconds to Mr. Manish Mahavar. Thank you and over to you sir. Thank you Anushka. Good afternoon everyone. I am pleased to host 0:42 42 seconds today's learning call of CL products. We have leadership team represented by Mr. Chalachi Shant managing director Mr. 0:50 50 seconds Pavin Japya CEO Mr. Chhattanya Austu CFO and Mr. David Dasari company executing on the call. Without any delay, I would like to hand over the call to Mr. 1:01 1 minute, 1 second for opening remarks. Post which we will open the floor for Q&A. Thank you. Over to you. 1:08 1 minute, 8 seconds Thank you Manish and thank you team for arranging the call. Uh good afternoon everyone. I welcome you all to the first conference call of uh 252. 1:20 1 minute, 20 seconds Uh let me just give a brief overview of company's performance for the first quarter. uh the group has achieved a 1:27 1 minute, 27 seconds turnover of uh rupees 1058 crores for the first quarter as compared to rupees 774.6 1:34 1 minute, 34 seconds crores for the corresponding quarter of the previous year achieving a growth of 37%. 1:40 1 minute, 40 seconds This incidentally is the first time we achieved a turnover of rupees 1,000 crores in a quarter. Uh the AITA stands 1:47 1 minute, 47 seconds at rupees 100 rupees 161.43 crores as against 131.62 60 crores which 1:54 1 minute, 54 seconds is a growth of 23%. Uh while PBT is rupees 31.60 crores growing at 8% and 2:02 2 minutes, 2 seconds the net profit stands at rupees 72.45 crores with a growth of 1%. The PBT and past got impacted due to higher interest 2:11 2 minutes, 11 seconds and acupation component. Uh the domestic market uh where we sell our branded products uh continues uh uh with its 2:19 2 minutes, 19 seconds growth momentum and we clocked approximately 150 crores in the first quarter uh itself. Out of this 150 2:26 2 minutes, 26 seconds crores almost 100 crores was from uh brand and the retail business. Uh so and because of this aggressive growth there 2:35 2 minutes, 35 seconds continues uh the there is a continuous market share gain uh across uh channels and across geographies. 2:42 2 minutes, 42 seconds As far as the green coffee prices are concerned uh they have softened u 20% or so or 20 to 30% in the last two three 2:52 2 minutes, 52 seconds months. Uh however there is still there is a lot of volatility in the market. 2:57 2 minutes, 57 seconds Every day we see a lot of ups and downs that is happening which is making the buyers uh you know still the buyers are 3:04 3 minutes, 4 seconds very tentative. Uh the period between the Brazil crop which is ending ending now the harvesting of Brazil crop and the harvesting of starting of the 3:12 3 minutes, 12 seconds harvesting of Vietnam crop which happens in December time. I think this is a period of uh you know wait and watch for uh all of us because if prices were to 3:21 3 minutes, 21 seconds remain stable during this period then it augars well uh in terms of uh the price uh you know softening and stabilizing 3:30 3 minutes, 30 seconds post the Vietnam crop. Uh so that's a little brief uh from uh our side. Uh I open the house for questions now. 3:58 3 minutes, 58 seconds Hello sir, can we start with the Q&A? 4:00 4 minutes Yeah. Yeah, please. I said we can open the house for questions. Thank you. 4:04 4 minutes, 4 seconds All right, sir. All right. Thank you very much. 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. 4:15 4 minutes, 15 seconds If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use 4:23 4 minutes, 23 seconds handsets while asking a question. Ladies and gentlemen, we will wait for a moment while a question assembles. 4:32 4 minutes, 32 seconds We take the first question from the line of Akash from CC products. Please proceed. 4:39 4 minutes, 39 seconds Hello. Hello. Yeah. Hi. Hi. Am I audible? Yeah. Yeah, you are audible. 4:46 4 minutes, 46 seconds Yeah, sir. So good morning and uh you know very congratulations on good volume numbers. I just have a few questions regarding uh the volatility in margins 4:54 4 minutes, 54 seconds because I know the the correct way to go your company is AITA AITA AITA number as you have previously mentioned but uh the 5:02 5 minutes, 2 seconds huge variations in quarterly margins uh what do you think is a stable number to look at because uh I can understand with 5:09 5 minutes, 9 seconds copy prices decreasing your beta will be the same and therefore margins will increase if the copy prices stay the 5:16 5 minutes, 16 seconds same but then what is the good way to see your margins sir because there's a huge volatility quarter on quarter. Yeah, absolutely. Akash, you're right. 5:25 5 minutes, 25 seconds And this volatility is uh simply because our you know selling price is related we are we operate on costless model. So our selling price is related to coffee 5:34 5 minutes, 34 seconds prices and if the coffee prices fluctuate uh you know AITA as a percentage to topline becomes very confusing. Uh so the right way and that 5:41 5 minutes, 41 seconds is what we have guided that the right way is to look at your AITA growth numbers. So you know in most uh last 2 5:49 5 minutes, 49 seconds three years of uh we have always guided that uh our AITA will grow in line with our volumes and we have given a guidance 5:56 5 minutes, 56 seconds of 15 to 20% volume growth and IITA growth year and year. Uh and that is what we have been maintaining. So if you 6:03 6 minutes, 3 seconds see our EITA growth at a consolidated level which is at 23%. Which is what one should look at that is this growth momentum being continued or not and that 6:12 6 minutes, 12 seconds is how we internally also look at that uh we are uh are we maintaining this momentum or not because there are a lot of other factors apart from the coffee 6:21 6 minutes, 21 seconds prices also that determine this percentage to you know EITA percentage to topline things like what is your product miss what what kind of clients 6:30 6 minutes, 30 seconds you are uh you know serving what kind of pack sizes you are serving so these are all determined and there could be quarterly only fluctuations in terms of 6:38 6 minutes, 38 seconds you know uh what kind of uh product mix was there, what kind of client mix was there, what kind of tax size mix was 6:45 6 minutes, 45 seconds there. So therefore keeping all of this in mind we have always guided that you should look at the growth figures when it comes to AITA and our guidance has 6:54 6 minutes, 54 seconds always been 15 to 20% and that is what we have been maintaining for the last 3 four years and that's our aim to kind of at least for the next 3 to four years 7:03 7 minutes, 3 seconds that will be our aim to maintain that kind of a growth momentum. 7:07 7 minutes, 7 seconds Okay sir just uh just just a follow up sir you know with Brazil having 50% tariff okay uh and most probably the 7:15 7 minutes, 15 seconds coffee prices will be coffee prices will be passed on with 50% tariff uh is there any chances of you know those coffees getting reserveed to countries like 7:23 7 minutes, 23 seconds Vietnam and India for processing and therefore we stand at advantage for that is it is this a possibility so there is definitely a possibility 7:31 7 minutes, 31 seconds because of 50% tariff they would want to sell the coffee um you know to other other regions as well. The good thing 7:39 7 minutes, 39 seconds about us is that both at India and Vietnam, we are placed in such a manner that we can buy coffee from across the world. So that gives us a lot of 7:47 7 minutes, 47 seconds flexibility which is not necessarily there with a lot of producers across the globe. So uh whether you know coffee 7:55 7 minutes, 55 seconds gets uh sold in Vietnam at a good price or Vietnam coffee comes down because of our flexibility we are always in an 8:02 8 minutes, 2 seconds advantages position. So you know either ways we are not speculating or wanting to kind of you know uh double game the market that what will happen. We are 8:10 8 minutes, 10 seconds taking as things come along because you know anyways we are in a a good advantageous position. 8:16 8 minutes, 16 seconds Yes sir. Okay. Great sir. Thank you. Thank you. 8:24 8 minutes, 24 seconds Before we proceed with the next question, ladies and gentlemen, in order to ensure that the management is able to address questions from all the 8:33 8 minutes, 33 seconds participants, please limit your questions to two per participant. The next question is from the line of Aishoy from Noama. Please proceed. 8:43 8 minutes, 43 seconds Yeah, thanks. Uh my first question is on the India coffee costing uh based on the current tariff structure and these can 8:50 8 minutes, 50 seconds change. We all know that. uh but if we assume that this is the current India tariff uh uh structure and this is the 8:57 8 minutes, 57 seconds current Brazil tariff structure and then taking the uh international price of coffee my sense is international coffee 9:04 9 minutes, 4 seconds has corrected 30% from the peak if you could uh confirm that and uh based on the two crops which we have robust and 9:12 9 minutes, 12 seconds arabica what will be your sense if we ignore the tariff related noise and based on the supply demand what will be 9:19 9 minutes, 19 seconds your expectation you expect more coffee correction in India on the in terms of the India prices. 9:26 9 minutes, 26 seconds Uh so yeah, you're right. There's a lot of flux in the market and uh that is actually has kept all of us guessing. Uh 9:33 9 minutes, 33 seconds first and foremost is tariff. Tariff also uh we all know while the statement come at a very broad level that there is 9:40 9 minutes, 40 seconds 20% tariff or 25% tariff or let's say 50% for Brazil. uh you know the final prints have to be read because uh there 9:48 9 minutes, 48 seconds are a lot of segments which they are also choosing to uh kind of let go. uh so that is keeping uh you know uh all of 9:56 9 minutes, 56 seconds us you know guessing that what is going to happen but leave alone that fact uh because at both India and at Vietnam 10:04 10 minutes, 4 seconds levels the tariff structures as of now comparatively are at an advantageous position because Vietnam is at 20 and 10:10 10 minutes, 10 seconds India at 25 uh so we don't see any you know disadvantage on that front as of now coming to your uh second part of the 10:18 10 minutes, 18 seconds question that uh you know with 30% uh uh lowering of coffee prices. See anyways we work on a costless model. So any 10:26 10 minutes, 26 seconds lowering of prices or any stable lowering is while it is good news on the front that you know our holding costs 10:33 10 minutes, 33 seconds become lower and therefore our requirement for working capital becomes lower. It does not affect our margin profile. In terms of growth prospects, 10:41 10 minutes, 41 seconds one has to see because you know uh we have discussed this in um many number of times that any growing price hike and uh 10:50 10 minutes, 50 seconds you know declining prices actually are not good news. The good news is when the prices are stable that's when you know the clients get committed uh towards 10:58 10 minutes, 58 seconds longer contracts toward more volume. So that is the situation. Today what has happened is that while the prices have corrected 30% if you see every day 11:06 11 minutes, 6 seconds there's almost a $100 fluctuation up and down up and down that is happening. So everybody is in a little guess mode that people are trying to double guess what's going to happen in terms of prices going 11:15 11 minutes, 15 seconds forward. So people are a little non-committal at this point of time and that's the reason we said that uh you know this entering period between Brazil 11:23 11 minutes, 23 seconds crop ending and Vietnam crop starting will be a key uh you know period for all of us to watch because if the prices hold on to these levels till the next 11:31 11 minutes, 31 seconds for the next 3 four months and then the Vietnam crop arrives then I think it'll be good news for all the you know buyers as well as manufacturers because food 11:40 11 minutes, 40 seconds has stabilized and that uh in turn kind of you know a well for all of Uh I understood the cost plus model. Uh 11:49 11 minutes, 49 seconds wanted one followup here in terms of the supply side say the crop quantity etc. 11:54 11 minutes, 54 seconds in Brazil. Uh is it is it a good uh increase versus last year and versus the demand side. Uh is it good? Vietnam crop 12:02 12 minutes, 2 seconds you said 3 four months. So I think it will be a bit early to really guess there how the supply side is. If you could comment on this right. 12:09 12 minutes, 9 seconds So actually yes Brazil crop uh there was a good flow of Brazil crop this year and uh you know uh that is actually that was 12:18 12 minutes, 18 seconds a trigger point for uh the prices to start uh softening and the good part was that the prices softened not only by 30% 12:26 12 minutes, 26 seconds but for good now two three months uh the trend has been on the softening side. So that's a good good indicator as of now. 12:34 12 minutes, 34 seconds So yes, Brazil crop we had a good flow this year but more than that a lot of you know if you were to map the supply 12:41 12 minutes, 41 seconds and the demand trend for last 25 30 years uh you will see that you know the difference sometimes is not more than 12:49 12 minutes, 49 seconds four to 5% but the speculation and the market spiral kind of you know make the coffee prices go up by 40 50%. So 12:59 12 minutes, 59 seconds actually what happens is that probably because of the fact that it's the second most traded commodity after all oil there's a lot of uh interest and 13:06 13 minutes, 6 seconds therefore leads to a lot of speculation as well. So uh yeah but you know to answer your first question that uh has the supply been good? Yes the supply from the deal was good good this year. 13:17 13 minutes, 17 seconds So my second and last question is on the two line items depreciation 45% y increase 24% quarteronquarter increase. 13:25 13 minutes, 25 seconds uh does the number stabilize at this 34 crore number and uh the lower uh coffee costing uh you did say the working 13:32 13 minutes, 32 seconds capital needs will reduce so interest cost uh at 34 crores uh that should uh hopefully reduce if we assume this 30% lower costing will continue. 13:44 13 minutes, 44 seconds So both the answers are yes at least. 13:45 13 minutes, 45 seconds First one is about that you know these are peak levels of depreciation. Yes because uh after first quarter of last 13:53 13 minutes, 53 seconds year we commissioned the both our India unit and Vietnam unit in the last quarter. So now the full depreciation is 14:00 14 minutes coming to the books and therefore these are the peak levels and uh secondly interest cost. Yes again these are peak level. uh considering two three things 14:10 14 minutes, 10 seconds that uh one because of the cash flows we'll be able to you know over a period of time start retiring the debt our 14:17 14 minutes, 17 seconds working capital requirement if the coffee prices remain at the levels that they are uh will also come down uh so all of these so improved cash flow 14:26 14 minutes, 26 seconds working capital coming down would mean that the interest uh outflow will be lower but yes there is a lag effect that 14:34 14 minutes, 34 seconds happens because we do hold uh you know uh two months of because of our quarter book two months of inventories which will be at higher prices with that lag. 14:42 14 minutes, 42 seconds I think uh from next quarter end onwards we can start seeing uh some you know uh relief on that front as well 14:50 14 minutes, 50 seconds and could you confirm gross debt net debt and cash levels at the last second year to kind of you 14:57 14 minutes, 57 seconds know give you uh this uh asset 15:04 15 minutes, 4 seconds cr12 as a 31st March and 1974 of 15:12 15 minutes, 12 seconds as December 24th. So from 1,94 in December 21, we brought it down to 2012 and now it is 1,671. 15:22 15 minutes, 22 seconds This is gross right net. Net from my side. Thank you. 15:32 15 minutes, 32 seconds Thank you. Thank you. 15:35 15 minutes, 35 seconds The next question is from the line of Abhishek Nalun from Sentrum Broking. Please proceed. 15:43 15 minutes, 43 seconds Uh hi thanks for the opportunity. 15:45 15 minutes, 45 seconds Congrats on a good operating performance sir. So our first question is on uh uh basically India and Vietnam SBC capacities which we have started like 15:53 15 minutes, 53 seconds one one and a half years back. So possible to share broadly the utilization levels at both these capacities. 16:01 16 minutes, 1 second So um Abishek because of the fact that you know a lot of new capacities have come in a staggered manner very difficult to uh break everything down 16:09 16 minutes, 9 seconds but largely you know let's say uh if I were to kind of we have doubled the capacity so one way to look at it is 16:17 16 minutes, 17 seconds that our existing capacity which was there is running at full uh full capacity level and the new capacity we have started utilizing around 10 to 15% 16:26 16 minutes, 26 seconds of that capacity. So at an aggregate level you could say 60% of the utilization is there. So that is where we are on the capacity utilization. 16:34 16 minutes, 34 seconds Sure. Sure. Uh and you spoke about the B2C part also. Uh is it possible to also give some color on the per call outlook 16:42 16 minutes, 42 seconds in UK. Uh maybe from this year or next year's uh perspective. 16:47 16 minutes, 47 seconds Uh so per call Aishek has you know we kind of at least turn the downward spiral that Paul was in. Uh this year we 16:56 16 minutes, 56 seconds are looking to double the uh value from last year. uh so last year because we were kind of ending the takeover uh 17:04 17 minutes, 4 seconds formalities. Uh we were doing around you know just to give you a brief idea on the top line around 15 16 crores. We are 17:11 17 minutes, 11 seconds looking to double that this year. Uh so that's uh that's what's happening in UK. 17:16 17 minutes, 16 seconds We are going for a lot of relisting. The challenge in UK is that you only get uh you know there are designated times for 17:23 17 minutes, 23 seconds listing uh in UK stores. Uh so we have to wait for the full cycle to get over for new listings and all that. Uh we are 17:31 17 minutes, 31 seconds getting very aggressive on Amazon. And the good part is we started to build the brand uh by spending um you know on social media and outdoor uh to make sure 17:40 17 minutes, 40 seconds that we build the brand on a sustainable uh basis. So that's the uh that's the uh you know on the UK personal front. uh UK 17:49 17 minutes, 49 seconds India we just launched uh you know a couple of months back you have seen a lot of activity uh especially in the you know in the print media and all. So we 17:58 17 minutes, 58 seconds are again looking to build this brand as a premium offering in the uh Indian market trying to capture the the niche 18:05 18 minutes, 5 seconds premium segment uh uh in the Indian market. So too early to give any numbers or any uh this thing uh directions but 18:13 18 minutes, 13 seconds yeah things are moving good. We are now selling on almost all the platforms. uh we are very particular about putting it in very very niche you know modern 18:21 18 minutes, 21 seconds retail outlets uh so all that work is as we speak is going along uh we'll wait for a couple of quarters for us to kind 18:29 18 minutes, 29 seconds of get a firm hold on the kind of feedback that is that we are getting from this launch in India sure uh again coming back to the B2B 18:38 18 minutes, 38 seconds sorry u so uh is it possible to share what percentage of our orders are let's say on spot basis the question I'm asking the reason I'm asking this is 18:46 18 minutes, 46 seconds basically Just wanted to understand you in a gradually declining pricing scenario. Uh is it possible to quantify any inventory loss during the quarterly or there's no testing uh for the spot? 18:57 18 minutes, 57 seconds There's no you know there's not much of change because you know while the prices are falling I mentioned that you know in 19:04 19 minutes, 4 seconds both rising and falling markets there is a sense of tentiveness. we look to see how stabilization happened but as I had told earlier also that you know we have 19:13 19 minutes, 13 seconds full visibility of the quarter uh almost near to 50 60% of the visibility for the subsequent quarter so that stays see our 19:22 19 minutes, 22 seconds long-term clients stay uh that they stay with us only thing is that instead of giving me a 12-month contract they will give me a three-month contract or a four 19:30 19 minutes, 30 seconds month contract so that is how uh it is still panning out there's not much of a uh difference but we have a feeling think that going forward and as we close 19:39 19 minutes, 39 seconds into the Vietnam stock cycle, we will start seeing a lot more long-term contracts coming in. 19:46 19 minutes, 46 seconds Sure. My last question is on tax rate. 19:49 19 minutes, 49 seconds Uh possible to share the I would request you to join back as Yeah. Thank you so much. 19:59 19 minutes, 59 seconds The next question is from the line of Shirish Pradeshi from Motila Lwal. Please proceed. 20:06 20 minutes, 6 seconds Hi Pravin Susant good afternoon thanks for the opportunity. 20:11 20 minutes, 11 seconds Just two quick question uh Pravin uh the prices has come down very severely. So just more curious uh what is the high 20:19 20 minutes, 19 seconds cost inventory we are holding at this point of time uh in terms of number of days or in terms of sales. 20:27 20 minutes, 27 seconds So seriously whatever inventory what we hold is what we have sold already. So there is no uh no you know uh inventory 20:35 20 minutes, 35 seconds uh which is lose inventory with us. We don't buy inventory at all. Yeah. But generally yes we uh uh because our you 20:42 20 minutes, 42 seconds know you know that 3 to four months of we have definitive contracts which are there volumes are sold. So at any point 20:50 20 minutes, 50 seconds of time we would hold two to three months of stocks with us. But all of this is sold stocks. So we don't we're not holding any inventory. So prices 20:57 20 minutes, 57 seconds going up and coming down doesn't bother us. What bothers us that there shouldn't be much of a fluctuation around in the market. 21:04 21 minutes, 4 seconds So you mean to say that the price drop for the inventory is im is immediately can be passed on because we have a cost plus model. 21:12 21 minutes, 12 seconds Yeah, we have a cost plus model and we buy after we have sold. So price drop can be passed on to the customer. So we today we will do a contract uh at 21:21 21 minutes, 21 seconds today's Okay. Uh my second question uh is on the uh outlook. You mentioned that Brazil is 21:30 21 minutes, 30 seconds already dropping and Vietnam is also looking good. But in that context uh if I go back exactly 90 days before the 21:37 21 minutes, 37 seconds customers were having the order but they were not giving you the visibility but is there any uh behavioral change which has happened sentiment change have 21:45 21 minutes, 45 seconds happened people are now giving you maybe maybe 90 days inventory uh visibility. 21:51 21 minutes, 51 seconds So uh as I was telling that they our long-term clients they give us a visibility. Only thing is that we only advise them not to go for very long-term 22:00 22 minutes contracts in terms of volatile market situations. So we know we have a visibility but you know there are two things. One is having a visibility and 22:08 22 minutes, 8 seconds that is the reason we have expanded our capacity. We have given aggressive guidance otherwise we wouldn't have given this aggressive guidance if you didn't have visibility. The only thing 22:16 22 minutes, 16 seconds is that if you ask me that do I have a confirmed contract in my hands for next 12 months? Probably not. That is when we say that okay for the next uh 3 to 6 22:25 22 minutes, 25 seconds months I know that uh the contracts are there in the hand but in terms of visibility yes uh there is a behavioral shift now people are breathing a sigh of 22:34 22 minutes, 34 seconds relief uh because you know a lot of these price uh there has been an incessant price increase for the consumers also in the market across the 22:42 22 minutes, 42 seconds globe and last two years there has always there is a price increase of 40% or so uh which is very steep in any 22:50 22 minutes, 50 seconds consumer consumer goods category. So what it does is that it probably puts uh puts a stress on the consumption pattern. So now you know brand owners 22:59 22 minutes, 59 seconds and uh uh suppliers and retailers they are obviously you know breathing a higher relief because at least they'll 23:06 23 minutes, 6 seconds be able to kind of either reduce prices or hold on to the prices and this will mean that there will be a consumption drive that would again come back to this 23:13 23 minutes, 13 seconds category. So I think on that front it is there. Yes, it will translate to orders uh as we go along because obviously everybody wants to make sure that things are settled now going forward. 23:24 23 minutes, 24 seconds That's exactly my point which I was trying to uh understand. Uh with this visibility uh the volume what we have reported this quarter does that gives 23:32 23 minutes, 32 seconds the confidence that we will be able to maintain or surpass the volume in the second quarter. 23:37 23 minutes, 37 seconds So uh absolutely uh it gives the confidence and that's the reason you know actually even when the prices were going at a ber pace our confidence on 23:46 23 minutes, 46 seconds volume growth was always intact because uh you know ultimately there are two things that not in in fact not two things there is only one thing that we 23:54 23 minutes, 54 seconds are concerned about the consumption should stay intact as long as people are drinking coffee we are in the business and because of this operative edge that 24:03 24 minutes, 3 seconds we bring to the market and that's the reason we So even when the prices were at 5,000 levels, we were confident and we had given a guidance that we will go 24:10 24 minutes, 10 seconds at. Yes, we had kind of broadened the guidance from a very stark 15 to 20% to 10 to 20%. But that was about it. Uh we 24:19 24 minutes, 19 seconds were always committed to that kind of a growth and that's what we have delivered in the in the you know worst of times when the coffee prices were at uh such high level. 24:27 24 minutes, 27 seconds Wonderful. That's really helpful and all the best to you. Thank you. Thank you. Thank you. 24:36 24 minutes, 36 seconds We take the next question from the line of Bhagavia Sonavala from Samata Capital. Please proceed. 24:45 24 minutes, 45 seconds Hi. So, thank you for the opportunity. Uh, am I audible? Yes, you're audible. 24:50 24 minutes, 50 seconds Yeah. Yeah. Just two questions. First question is, has the been in line with the road that you always uh kind of fight, right? 24:59 24 minutes, 59 seconds Sorry Bhava, I think your uh voice got very feeble after uh the first line. 25:05 25 minutes, 5 seconds No. Yeah. So just wanted to know in line with the group that uh you know usually a little Yeah. 25:13 25 minutes, 13 seconds Yeah. So it not exactly in line probably a little lower than the group but yeah almost the same pattern continues for us. 25:23 25 minutes, 23 seconds Okay. And uh just wanted to uh also understand our investment going ahead in the branded business that uh which we 25:30 25 minutes, 30 seconds are already in coffee and plus now we have started snacks which I understand is going to be a pilot but in the next two three years in terms of advertising 25:39 25 minutes, 39 seconds and any other for investments can you just throw some light how that is going to pan out? 25:45 25 minutes, 45 seconds uh so a I think what investments we are doing is largely uh to build the brand we're not doing any investment in terms of capex uh as far as B2C is concerned 25:54 25 minutes, 54 seconds even if we are getting into new category like snacks uh we are going for third party manufacturing so all the investment is on the brand and what we 26:01 26 minutes, 1 second have uh now since the brand business itself is uh you know profitable so what we are doing is you know instead of 26:08 26 minutes, 8 seconds making the brand we are trying to kind of plow in the profits going forward and that's the reason uh we has been experiencing such aggressive growth and 26:16 26 minutes, 16 seconds we we are looking to maintain this momentum by maintaining the spends that uh we have been doing and in fact as the brand is growing we are in fact 26:24 26 minutes, 24 seconds increasing the spend as well. So that is something that we'll continue to grow because not only we have you know coffee itself we are very small right now there 26:32 26 minutes, 32 seconds is a large scope of to grow but also now we are kind of spending to build on some of the other categories right now at very test market levels but I'm sure 26:41 26 minutes, 41 seconds soon we'll we'll start investing there also in terms of brand building nothing on the cape side 26:48 26 minutes, 48 seconds just just a last question by the year end uh do you see the branded business around 4 500 crores Is that something that is on on the paper? 27:00 27 minutes So I I think you have you have given as broad guidance that we have been giving 400 to 500. Definitely first quarter itself we have done 400. So definitely 27:09 27 minutes, 9 seconds we are going to touch 400. Now how far we go beyond 400 is the question that uh we all have we are we are putting you 27:16 27 minutes, 16 seconds know all the measures and all that all our might to make sure that we go as far as possible. 27:23 27 minutes, 23 seconds Thank you so much. That's all for my friend. Thank you. Thank you. 27:28 27 minutes, 28 seconds Thank you. We take the next question from the line of reach from Equity Master. Please proceed. 27:36 27 minutes, 36 seconds Thank you for the opportunity sir. Sir, I just want more insights on uh with this uh different tariffs that are being imposed. 27:46 27 minutes, 46 seconds Yeah. Great. Could you please? 27:49 27 minutes, 49 seconds Oh, okay. Uh I'll just try again. And I I just wanted to understand that with this tariff what is the sourcing pattern 27:57 27 minutes, 57 seconds in the US? How much of uh you know what is the Brazil share versus India share and are you witnessing increased inquiries from the US customers uh with this tariff talk? 28:07 28 minutes, 7 seconds Uh so it's a yes actually uh there has been a increase increased inquiries but you know with this tariff also there is 28:15 28 minutes, 15 seconds a lot of uh you know layers into this tariff and every day everybody is discovering newer things. So while 28:22 28 minutes, 22 seconds Brazil had you know Brazil has had 50% of tariffs we still are trying to figure out that you know what is the because 28:31 28 minutes, 31 seconds when Trump announces tariff he just gives a statement broad statement that 50% 25% 20%. uh but in in between the 28:40 28 minutes, 40 seconds lines there are categories which are getting exempted uh for example u you know US said that all the agree products 28:48 28 minutes, 48 seconds which they don't grow will be zero tariff so there are news like these also so we'll have to see you know we have to 28:55 28 minutes, 55 seconds let the dust settle down yes there has been an increased inquiry but has it quickly translated into sale as of now I can't say for sure uh yeah we are 29:04 29 minutes, 4 seconds dealing with those inquiries as far as possible Well, because you know while Brazil has got 50%, Mexico has got a 29:11 29 minutes, 11 seconds leeway for another 90 days. So there are these kind of you know uh lots of uh you know let's say what should I say 29:19 29 minutes, 19 seconds fluidity in terms of uh uh this tariff thing the whole world is under confusion and it will take a little bit of a time for us to understand where things are 29:27 29 minutes, 27 seconds going but yes we are getting more inquiries and we are addressing them as far as concern. 29:35 29 minutes, 35 seconds Okay. And this so my second question is on the tax rate. I see some sharp variations. So if you could just guide us you know where the tax rates could land over the next three years. 29:46 29 minutes, 46 seconds I don't think so there's a variation. We are at full tax rate in India. So the whatever the profit that flowed in in 29:54 29 minutes, 54 seconds the standalone uh that profit whatever tax was applicable that is there otherwise it remains uh pretty much uh 30:02 30 minutes, 2 seconds similar if you to see and this tax is under Matt credit so a portion of it you know kind of just gets into the book it 30:11 30 minutes, 11 seconds but otherwise in terms of cash flow it improves the cash flow so it is actually you know uh good in terms of cash flow. 30:17 30 minutes, 17 seconds Yes, on the book in the beginning it uh uh it does show at that. 30:24 30 minutes, 24 seconds Okay. Okay. And I just wanted to understand if I may ask one more question. Uh what would be the margin difference between FD and SDC? 30:32 30 minutes, 32 seconds So in lots of years rich the margin difference on a baseto-base thumb rule level could be anywhere between 30 to 30:40 30 minutes, 40 seconds 40% between an SDP and SDP but really depends on you know what kind of sometimes even SDC very high quality SDC 30:48 30 minutes, 48 seconds is also equally you know margin you get high high margins there also so it depends on blend the type of you know 30:55 30 minutes, 55 seconds the type of customer lots of layers into it but yeah as a whole could say that FDC would be 30% 31:02 31 minutes, 2 seconds uh then please okay thank you I'll come back in the queue yeah thank you 31:10 31 minutes, 10 seconds thank you the next question is from the line of Deepak from Sundaran Mutual fund please proceed 31:17 31 minutes, 17 seconds thanks for the opportunity I audible sir yeah yeah you're a uh sir could you please highlight what was our uh y volume growth for Q1 31:26 31 minutes, 26 seconds quarter so it was almost double digit uh yeah So uh and and that's uh uh little lower 31:35 31 minutes, 35 seconds than the AITA growth because we got better margins uh this time as well like it happened in the last quarter as well. 31:42 31 minutes, 42 seconds So that is uh that is how we should look at it. So double digit volume was leading to around 23%. 31:49 31 minutes, 49 seconds Okay. So double digit meaning let's say between 11 to 12 or 12 to 14 means it was very difficult for me. you know 31:57 31 minutes, 57 seconds I'll tell you what this is something that we don't you know we give a little broader guidance on this because this is also sensitive information which kind of 32:04 32 minutes, 4 seconds leads to you know a lot of uh coaching and a lot of understanding about us by the competitors. So we stay a little 32:12 32 minutes, 12 seconds this thing you know broad on this in terms of our uh uh explanation but uh you could as I told you volume growth 32:20 32 minutes, 20 seconds and ITA growth generally go in line but for last quarter also and this quarter we have seen much higher growth than the volume so if I grow is at 23 you're 32:30 32 minutes, 30 seconds saying that we have got double digit volume growth. Yeah. So double digit means somewhere lying in between and don't want to push it towards you know 32:37 32 minutes, 37 seconds the higher mark. So you could kind of you know take the mean median mode of 10 to 20. 32:45 32 minutes, 45 seconds Okay. And so in this domestic business which we clocked around 150 cr are we beta positive in that business or we are 32:52 32 minutes, 52 seconds still to break even at a beta level as well? No last to last year itself we broke even last year we were positive 33:00 33 minutes and this year also we'll be in fact more positive but yeah we are not kind of you know uh keeping we are plowing back as 33:08 33 minutes, 8 seconds much as possible whatever the brand requirement is whatever it requires to build the brand whatever it requires to uh be aggressive as we have been because 33:17 33 minutes, 17 seconds there's a lot of aggression in terms of uh you know uh the branded business we're going very handsomely so uh so we are plowing back a lot of money but it 33:25 33 minutes, 25 seconds is uh yes even after clawing back we are year by year increasing our margins on the branded 33:33 33 minutes, 33 seconds okay is it in the higher single digit or is it let's say below 5% no no no so it's uh this year last year 33:41 33 minutes, 41 seconds was around 4 to 5% before that I told you grow and this year will be again between 5 to 10 33:49 33 minutes, 49 seconds but the good uh the good thing is that whatever uh now uh since last year what 33:56 33 minutes, 56 seconds we uh the uh the interesting thing is that the additional volume that is coming is coming at a very because the 34:04 34 minutes, 4 seconds all the you know break evens the negatives are already built in the base. 34:07 34 minutes, 7 seconds So which means that if we are adding let's say 100 crores to the branded business that 100 crores is coming at a much higher margin. Yeah. So in fact 34:16 34 minutes, 16 seconds almost uh as much as equal to the company AITA margin. So now the incremental business is now no more uh 34:23 34 minutes, 23 seconds you know uh uh margin uh diluting it is kind of you know adding to the market. 34:31 34 minutes, 31 seconds Okay. So even that should be helping our this 22%. 34:34 34 minutes, 34 seconds Absolutely. Absolutely all of it. So there is a lot of things that has helped us and that being one of them. 34:40 34 minutes, 40 seconds Okay. Okay. And so last question means uh in the past on call you have highlighted that you wanted to expand in 34:47 34 minutes, 47 seconds some US market for premium coffee and then again Southeast Asia market. So can you just elaborate what is the broad strategy around it? Means has something 34:56 34 minutes, 56 seconds changed in the last 6 months given the volatility of coffee prices or our strategy remains the same more or less and we are focused on premium at the 35:05 35 minutes, 5 seconds western world and let's say more economic coffee at the Southeast Asian countries. 35:11 35 minutes, 11 seconds So yeah more or less our strategy remains same very uh you know it's very simple there are two sets of consumers 35:18 35 minutes, 18 seconds we are wanting to target. One is the Indian diaspora because now our brand has become very brand awareness in India has become uh pretty high. Uh which 35:27 35 minutes, 27 seconds means that the Indian diaspora is now you know they know our brand. So uh with the current itself our own brands continental we are wanting to serve the 35:36 35 minutes, 36 seconds Indian diaspora. So wherever diaspora we would be uh wanting to launch our brand there. And for the 35:43 35 minutes, 43 seconds western diaspora or the local diaspora, we are using brands like purple uh and rocket fuel which we acquired last year 35:51 35 minutes, 51 seconds uh to serve you know the premium or the more uh coffee or a blend which is more tuned towards the local diaspora. So 35:59 35 minutes, 59 seconds that is our strategy. We are working on that and uh uh as and when because even in uh UK now that the brand is gaining 36:07 36 minutes, 7 seconds momentum there is a brand work happening brand building happening. So a lot of European markets we will look to kind of seed the brand because once it is you 36:16 36 minutes, 16 seconds know known in UK awareness is there then other countries also uh they start showing signs of uh demand. So that is 36:23 36 minutes, 23 seconds the strategy for uh western diaspora for fallen rocket fuel and for Indian diaspora our current brand. So that strategy remains the same and the 36:31 36 minutes, 31 seconds Southeast Asian market is actually not a low coffee market low cost market. It is actually more of a premix market. So that is a strategy we will we are 36:40 36 minutes, 40 seconds looking to kind of you know enter the market that product strategy of how can we enter through premix. So all that 36:46 36 minutes, 46 seconds work is happening at the back end and as and when we are ready for launch or some news is there we'll share it with you. 36:54 36 minutes, 54 seconds Okay. Thank you for answering the questions of all the question. Thank you. 36:59 36 minutes, 59 seconds Thank you. The next question is from the line of Anand S from Aendas Park. Please proceed. 37:07 37 minutes, 7 seconds Thank you sir. This is Sundra from Aendas. Uh so a couple of questions. Uh if you were to look about couple of years ago we had this phenomena when 37:14 37 minutes, 14 seconds robust stock prices still decline. We had a huge variation between Arabica and our volumes had a significant uptrend. 37:22 37 minutes, 22 seconds Now is that something that we can expect with uh on keeping in mind that there has been high production numbers factor in especially for Vietnam going over the 37:31 37 minutes, 31 seconds to medium term and volume back about a 20% number. 37:36 37 minutes, 36 seconds So basically you know what happens is that for a short period of time even two years ago when the robust did not kind of you know come down and come very 37:44 37 minutes, 44 seconds close to Arabica these are short-term phenomena because you know over a period of time the table corrects itself because Arabica is used a lot for fresh 37:52 37 minutes, 52 seconds coffee and a lot of fresh coffee is being used in the more developed economies. So what happens is that if 37:58 37 minutes, 58 seconds the price you know kind of Arabica and Babaka they come close to each other or go very far from each other over a 38:06 38 minutes, 6 seconds period of time the table corrects and they have that kind of a difference which is a 30% uh difference that uh that autocorrects and comes to that 38:15 38 minutes, 15 seconds level. So that is there currently also that difference continues to be there and while you know Vietnam is a lot more 38:23 38 minutes, 23 seconds about Robusta. So when the Vietnam crops come that's a correction time for robusta you see now Brazil is also growing robust. So they also have a good 38:32 38 minutes, 32 seconds flow of both Arabica and so we don't see much of a you know closure closing of the gaps or uh you know or the gaps widening beyond the justifiable limits. 38:43 38 minutes, 43 seconds So they are in you know the gaps are there the rightful gaps are there in the 38:51 38 minutes, 51 seconds list of followup in terms of robusta prices already down about 30% in the last month and anticipated to further go down with 38:59 38 minutes, 59 seconds great robusta productions expected to be as22 uh what kind of uh debt levels can get 39:06 39 minutes, 6 seconds reduced from our books on price corrections so you know uh the debt levels will 39:14 39 minutes, 14 seconds reduce on two three fronts. One is of course the cash flow. Now we are you know we done with our KEX there's no new 39:21 39 minutes, 21 seconds KEX there. See all the cash flow that we will generate uh will be used to uh retire the debts. That is one. Second is 39:28 39 minutes, 28 seconds that with 30% if the 30% uh you know uh price reduction stays on track. So the working capital requirement over a period of time will come down by 30%. 39:39 39 minutes, 39 seconds You know uh uh like you like when we speak about it. So that should be there. 39:45 39 minutes, 45 seconds Uh so we will see this happening you know towards the end of next quarter and that is again with a hope that uh the prices stay where they are. So we'll 39:54 39 minutes, 54 seconds start seeing uh these kind of reductions uh and hopefully by the end of the year uh I cannot just pinpoint a percentage 40:01 40 minutes, 1 second but there will be a reasonable uh drop in our uh debt level. 40:08 40 minutes, 8 seconds Thank you. Thank you. 40:14 40 minutes, 14 seconds Thank you. We take the next question from the line of Vign Ayar from Sequent Investments. Please proceed. 40:22 40 minutes, 22 seconds Uh I thank you for the opportunity. My first question is uh due to the you know 40:30 40 minutes, 30 seconds that has been imposed on Brazil uh of 50%. 40:34 40 minutes, 34 seconds uh there there I mean there's a lot of reports coming up saying that this additional teams might make 40:43 40 minutes, 43 seconds might make way towards China and EU. So considering I remember from our earlier calls where we have said that we target 40:51 40 minutes, 51 seconds China and Middle East as a market where we see potential growth. So how does this uh you know uh new uh setup 41:00 41 minutes competition that we foresee due to this uh tail situation. 41:07 41 minutes, 7 seconds So you know fundamentally speaking yes these news are there but you know uh Brazil uh green coffee coming to uh 41:15 41 minutes, 15 seconds China and other places we also have our setup at Vietnam. So in fact uh last time if you remember we had also told 41:22 41 minutes, 22 seconds that last year because the Brazil coffee prices went below Vietnam prices we also bought a lot of Brazil coffee. So when these news comes these are largely about 41:31 41 minutes, 31 seconds green coffee itself. Uh in terms of instant coffee I don't see Brazil having a advantage over us if they want to sell 41:38 41 minutes, 38 seconds in China. Right. Right. because from Vietnam also there is no duty to China and our logistics will be much faster 41:45 41 minutes, 45 seconds there than the Brazilian you know products. So I don't see Brazil having advantage in Asia because they want to 41:53 41 minutes, 53 seconds supply more to Asia because of the US tariffs and if this tariff was to continue for Brazil I think it will give us an advantage in US. So it's a good 42:01 42 minutes, 1 second news for us because we will not lose any advantage in the uh uh non strong Brazil market but we will get an advantage in 42:08 42 minutes, 8 seconds the strong market like us. So let us see but as I told you you know in one of my answers to the previous question that 42:16 42 minutes, 16 seconds we'll need to see how the dust settles because while these are again we are quoting broad numbers of tariff 50% 25% 42:23 42 minutes, 23 seconds 20%. uh we also know even if India is at 25% some of the iPhone components and iPhones and pharmaceuticals 42:32 42 minutes, 32 seconds they have either been kind of you know given leeway for that or they are thinking to reduce direct to 0% on those 42:39 42 minutes, 39 seconds product categories so let's see how things settle down maybe for coffee because they don't grow coffee uh US 42:46 42 minutes, 46 seconds they may also uh want to uh kind of give uh leeway on uh on coffee in post as well so we will We wait and watch on 42:54 42 minutes, 54 seconds this front but as of now uh things are pretty fluid and uh double guessing is you know is not going to help uh anyone of us. 43:05 43 minutes, 5 seconds All right sir. Uh on my second question uh on that interest part of uh you know this quarter the last two quarters now 43:14 43 minutes, 14 seconds we've seen around 34 KS of outflow when it comes to interest with prices coming down uh you know can we uh more or less 43:23 43 minutes, 23 seconds say that this could be the peak interest cost and some type of short-term debt you know will be reduced due to lower working capital requirement. 43:33 43 minutes, 33 seconds Yeah. Yeah. 100% these are peak levels don't go beyond this uh going forward this will only come down but as I was 43:41 43 minutes, 41 seconds telling you because of the lag effect it may take a little time but definitely the the interest cost will be on a downward trade itself 43:50 43 minutes, 50 seconds okay so one highlighted in addition to what you have 43:57 43 minutes, 57 seconds a debt reduction plan in place now uh so the process will come over a period of 44:04 44 minutes, 4 seconds time but also 44:16 44 minutes, 16 seconds it's that it's also my side and all the best for the year ahead. Thank you. Thank you so much. 44:25 44 minutes, 25 seconds Thank you. The next question is from the line of Gopin Nadha Ready from PNR. Please Prat. 44:34 44 minutes, 34 seconds Yes, thank you sir. Coming to continental brand that we are selling in India as retail when it comes to instant 44:41 44 minutes, 41 seconds coffee small cakes. Uh last time last conference we said that uh to maintain the prices. 44:58 44 minutes, 58 seconds We are actually not able to hear you. 45:00 45 minutes Your voice is breaking. Could you please fix that? 45:04 45 minutes, 4 seconds Okay, I'll repeat it. Uh, when it comes to continental brands in India in retail, sir, when it comes to small pockets, due to the coffee price 45:12 45 minutes, 12 seconds increase, we said that we are changing the mixing mixing of roast mixing of picori and roasting and uh and uh that 45:22 45 minutes, 22 seconds has changed the taste obviously. uh is it not going to impact our brand uh image when it comes to a particular 45:30 45 minutes, 30 seconds brand a customer expects that particular brand to have particular taste right how are we looking into it 45:38 45 minutes, 38 seconds so there are two things that we do internally we make sure that the taste doesn't change right so we do very strong uh consumer test only when we 45:46 45 minutes, 46 seconds release any blend or any blend change so this is done with utmost uh care so that uh the uh the final taste uh doesn't 45:55 45 minutes, 55 seconds change. So that is something that we take care because with the brands uh we don't want to as you rightly said the taste change should not be there. So we 46:03 46 minutes, 3 seconds don't uh take any blend change without doing any consumer test. So very strong consumer test happens very detailed consumer test only then when we get a final pick on that only then we proceed. 46:15 46 minutes, 15 seconds Okay sir I I I got the feedback from customers. So I just said whatever I got to know that I'll be happy to kind of you know if you 46:22 46 minutes, 22 seconds could share the feedback uh with um you know on our website or on other mail I'll be happy to engage and then you 46:30 46 minutes, 30 seconds know kind of take it up with our R&D but that is something that we make sure that we don't uh kind of you know uh tamper with the taste at all. 46:39 46 minutes, 39 seconds Sure. 46:39 46 minutes, 39 seconds But would be happy to kind of you know take this feedback. Yeah. 46:43 46 minutes, 43 seconds Sure. Thanks. Thanks. That is for my Thank you. The next question is from the 46:52 46 minutes, 52 seconds line of Vaynavi Gurong from craving Alpha Wealth Fund. Please proceed. 46:58 46 minutes, 58 seconds Thank you for taking my question here. I just had two quick questions. The one was on the revenue certification provide 47:05 47 minutes, 5 seconds by geography for the company and the second one was uh with plans to reduce debt. what that level we can expect in next for one year. 47:19 47 minutes, 19 seconds Uh okay. So first thing let's say if I were to give you a a sense of a field of the geographical split uh out of our 47:29 47 minutes, 29 seconds exports business around 10% or so comes from uh from the American markets around 47:36 47 minutes, 36 seconds uh uh 35 to uh 40% comes from uh European markets including Russia and 47:44 47 minutes, 44 seconds the CIS countries and the balance 3540 comes from Asian markets uh with very 47:51 47 minutes, 51 seconds little business in uh in in let's say uh uh Australian market. So, so that's the 47:58 47 minutes, 58 seconds split in terms of our export market. Uh add to this again our brand only right now is selling in Indian market. Yes, a little bit of it of perhaul is now 48:07 48 minutes, 7 seconds started to sell in the UK market. So that's uh that's broadly the split between the markets and the debt levels. 48:15 48 minutes, 15 seconds I think uh you could give a color by year end it should be starting. So uh so as 48:23 48 minutes, 23 seconds indicated in one of the previous session we were at 2,000 crores as of December 24 we brought it down to 1,8 48:31 48 minutes, 31 seconds reduction of close to 150 plus a quarter. Then again in this quarter from March to June we brought it down by 48:37 48 minutes, 37 seconds additional 170 odds. Uh so our target is to create it to 1500 probably by 48:44 48 minutes, 44 seconds customer and additional 150 by end of the year. 48:50 48 minutes, 50 seconds sir can you please the number my so that would be around so that would be around 354 as of December 25 49:01 49 minutes, 1 second okay thank you s also just one more question on the UK India FDA do we anticipate any benefit or are we seeing 49:09 49 minutes, 9 seconds any increase in queries sorry what did you say uh sorry my question is regarding the UK 49:18 49 minutes, 18 seconds India FDA since you mentioned that 30 to 40% comes from UK. So any not UK I said Europe Europe sorry I said Europe. 49:27 49 minutes, 27 seconds Yeah. 49:29 49 minutes, 29 seconds Okay sir. That's it from my side. Thank you. 49:35 49 minutes, 35 seconds Thank you. We take the next question from the line of Abhishek Mun from systematics. Please proceed. 49:43 49 minutes, 43 seconds Yeah. Hi Pin sir. Uh thank you for the opportunity. uh just wanted to check uh our volume growth guidance is it maintained at 10 to 20% that you had 49:51 49 minutes, 51 seconds mentioned some time back also uh what was the a bit up kg for the quarter if you can uh sort of guide on that and what is our guidance for uh this uh 50:00 50 minutes metric going forward and finally on the inventory uh that we keep uh a few months of inventory is there some 50:07 50 minutes, 7 seconds marktomarket uh revaluation that we do which hits the AIDA uh those were my questions 50:14 50 minutes, 14 seconds uh okay so yeah the volume projection remains the same 10 to uh 20%, but AITA guidance is like between 15 to 20% for 50:23 50 minutes, 23 seconds the full year. So that also remains uh the same. Uh the AITA per kilo uh is approximately if I'm not wrong around 50:32 50 minutes, 32 seconds between 125 to 135 somewhere in somewhere in that range. uh and uh uh no 50:39 50 minutes, 39 seconds there won't be any uh it hit on the AITA because of the inventory that we carried because once we have sold the uh you know coffee that uh rate remains so 50:48 50 minutes, 48 seconds there's no change in the rate uh uh when the green coffee prices either go up or go down so that won't change our uh AIA 50:57 50 minutes, 57 seconds you know it won't hit our AITA at all great uh thanks just wanted to clarify one more thing uh do we also do some 51:06 51 minutes, 6 seconds bulk sales at at a lower eida. Is that part of our volume also? 51:14 51 minutes, 14 seconds Yeah. So we do very lots of types of sales right from lowa sales to high a bit per kilo sales. 51:21 51 minutes, 21 seconds So that is part of our strategy. Uh it's not that we don't kind of think but yeah below there are certain things which we don't like to do. We don't like to do 51:30 51 minutes, 30 seconds you know pillar coffee or an adulterated coffee and things like that. So that quality we maintain. So beyond a point 51:37 51 minutes, 37 seconds we also don't kind of do the race to the bottom kind of a strategy. But yes there are low margin contracts also which we do. 51:45 51 minutes, 45 seconds Great. So thanks for the clarification. That's all from me. All the best. Thanks. 51:52 51 minutes, 52 seconds Thank you. We take the next question from the line of Manish Mahaval from Antic Stock Broking Limited. Please proceed with your question. 52:01 52 minutes, 1 second Yeah. I most of the question is the answer. a few data point I wanted to understand uh during one key what are the growth SDC and MDC possible to share 52:11 52 minutes, 11 seconds uh Manish will kind of give us colors separately but we don't kind of share the you know uh product wise and market 52:18 52 minutes, 18 seconds wise or customer wise roles and all that okay but FDC is better than uh it's higher than FDC that you right to understand this quarter 52:27 52 minutes, 27 seconds uh yeah directionally it should be higher than uh FDC understood And just in terms of just wanted to reconfirm the date number what 52:36 52 minutes, 36 seconds uh said right the number was 1671 for the this is a gross date and net date 1671 for the quarter 52:47 52 minutes, 47 seconds net okay and you said by by December 25 it is 1350 right it will be it will be 52:54 52 minutes, 54 seconds 150 so the plan is to bring down the debt by around 154 okay okay understood and By by March 53:03 53 minutes, 3 seconds 26th, what what's the number you're looking out? 53:06 53 minutes, 6 seconds So an additional 154. So it should be around 1,200. Okay. Sorry. March 24th. Yeah. March 26. 53:15 53 minutes, 15 seconds March 26. March 26 would be,200. 53:20 53 minutes, 20 seconds Okay. Understood. And uh capacity you said at the at the opening uh right around 50% utilization at a blended 53:28 53 minutes, 28 seconds basis for all the capacity, right? Can you break it up in terms of India and and Vietnam utilization level? 53:34 53 minutes, 34 seconds Uh so at a you know broad level both the places and we are taking it as a you know as a uh as a group only uh it's at 53:43 53 minutes, 43 seconds around 60% managed because the last capacity or let's say the existing capacity is not fully utilized 10 to 15% 53:50 53 minutes, 50 seconds is the new capacity utilization and both these places the figures are similar. 53:56 53 minutes, 56 seconds Okay. So 60% at a company level company level right? Yes. 54:01 54 minutes, 1 second Yeah. Okay. And definitely VSM will be bit lower because the new capacity came into 4. 54:06 54 minutes, 6 seconds Very very very so that buildup is happening. So I think yeah there is a little catch up here but even in India there is a catch up to happen with the full 16,000 tons of FDP that is there. 54:17 54 minutes, 17 seconds So, so it's like you know uh uh quarterly basis there could be little up and down but at the year end we are looking at a similar kind of a utilization at both the places. 54:27 54 minutes, 27 seconds Understood. And last one in the B2C what is the number you said in the call branded do B2C basically almost 100 we did this 54:36 54 minutes, 36 seconds quarter 150 course was the domestic number out of which 100 was B2C. 54:41 54 minutes, 41 seconds Okay understood. Sure. Thank you. That's from myself. 54:47 54 minutes, 47 seconds Thank you ladies and gentlemen. Due to time constraints, we take that as the last question and would now like to hand the 54:55 54 minutes, 55 seconds conference over to the management for closing comments. 55:04 55 minutes, 4 seconds So uh thank you very much. Thank you Antigan team for organizing the call. Uh we will look forward to interacting with 55:12 55 minutes, 12 seconds you uh in the next quarter. All the best to everyone. 55:19 55 minutes, 19 seconds Thank you on behalf of Anti Stock Broking Limited. That concludes this conference. Thank you for joining us and you may now disconnect your lines.