CCL Products (India) Limited — Q2 FY26

CCL Products (India) Ltd Q2 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=Mm5StEFizw8 Published: 6 months ago

0:00 Ladies and gentlemen, good day and welcome to CCL Products India Limited Q2 and FY26 earnings conference call hosted 0:08 8 seconds by Nirmalan Equities. As a reminder, all participant lines will be in the listenon mode and there will be an opportunity for you to ask questions 0:16 16 seconds after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on a 0:23 23 seconds touchstone phone. Please note that this conference is being recorded. I now hand the conference to Mr. Deepak Saha from 0:30 30 seconds Nirmalbang Institution Equities. Thank you and over to you. 0:36 36 seconds Thank you Samut. Good morning ladies and gentlemen. On behalf of Nimalbang Institution Equities, I welcome you to the Q2 FI26 earnings call of CCL 0:44 44 seconds products. The management today is represented by Mr. Chalasant, managing director, Mr. Pravinurya, CEO, Mr. Bou Krishna, executive director, Mr. Mr. 0:53 53 seconds Chhatanya Raju CFO and Miss Svi Desari company secretary on the call without any delay I would like to hand over the 1:01 1 minute, 1 second call to Mr. Japury for opening remarks post which we will open the floor for Q&A. Thank you and over to you Pragir. 1:09 1 minute, 9 seconds Thank you Deepak. Uh and thank you for uh setting up this call. Uh good morning everyone. I welcome you all to the second conference call of uh FY226. 1:22 1 minute, 22 seconds uh now I'll give a brief overview of the company's performance uh for the second quarter and the first half of the year and thereafter we will open the floor 1:30 1 minute, 30 seconds for questions. Uh so as far as the numbers are concerned the group has achieved a turnover of rupees 1128.21 1:38 1 minute, 38 seconds crores for the second quarter as compared to rupees 738.74 crores for the corresponding quarter of 1:45 1 minute, 45 seconds the previous year achieving a growth of 52.7%. 1:49 1 minute, 49 seconds The AITA stands at rupes 198.61 crores as against 137.62 crores which is a growth of 44.3%. 1:58 1 minute, 58 seconds While PBT is rupes 127.09 crores uh which grew at 45.5% and the net profit stands at rupees 100.86 crores with a growth of 36.4%. 2:12 2 minutes, 12 seconds As far as H1 is concerned the group has achieved a turnover of rupees 2186.25 25 crores as compared to rupees 1513.37 2:21 2 minutes, 21 seconds crores for the corresponding half of the previous year achieving a growth of 44.5. 2:26 2 minutes, 26 seconds The stands at rupees 360.05 crores as against 269.23 crores which is a growth of 33.7%. 2:34 2 minutes, 34 seconds While PBT is rupees 221.28 crores growing at 26.8% and the net profit stands at rupes 173.31 crores with a growth of 19.2%. 2:46 2 minutes, 46 seconds 2%. Uh the domestic market continues its growth momentum with a gross sales of rupees 160 odd crores in the second 2:53 2 minutes, 53 seconds quarter and rups 310 odd crores for the first half. Out of this 310 crores uh 3:01 3 minutes, 1 second almost 210 crores was the branded business and there is a continuous market share improvement across channels 3:07 3 minutes, 7 seconds and states as we speak. Uh as far as the green coffee uh scenario is concerned, the green coffee prices continue to be 3:16 3 minutes, 16 seconds volatile. There was some softening in Q1 which we saw but um post Brahd supplies but then the prices went up again in Q2 3:25 3 minutes, 25 seconds and the news about Vietnam crop has been conflicting right now. So the prices continue to be volatile. We will wait 3:32 3 minutes, 32 seconds and watch uh till the month of December when the crop starts to flow in. That's when we'll get uh some idea that where 3:40 3 minutes, 40 seconds the prices are settling down. Uh that is a brief note from our side. Now I open the floor for further questions. 3:50 3 minutes, 50 seconds 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 the touchstone 3:57 3 minutes, 57 seconds telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a 4:05 4 minutes, 5 seconds question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Shroy from Nama. 4:14 4 minutes, 14 seconds Yeah. My first question is on the last point which you made in terms of coffee clarity coming in December. So in terms of crop if you could tell us till now 4:23 4 minutes, 23 seconds what is the indication? Uh we have seen many agri commodities globally and India also they have been slightly soft only 4:30 4 minutes, 30 seconds and we have seen uh Robusta and Arabica the chart is a bit divergence. if you could comment between the two what is 4:37 4 minutes, 37 seconds the sense you are getting in terms of pricing in the next 3 months. 4:41 4 minutes, 41 seconds So actually as I was mentioning uh Abishek that you know there has been conflicting reports and therefore you are seeing some divergent uh you know 4:49 4 minutes, 49 seconds chart movements across uh both the types of coffee. uh but as we speak uh you know what has happened is that and this 4:58 4 minutes, 58 seconds I have been mentioning in uh you know our previous calls as well that a lot of uh considering coffee is so much traded 5:06 5 minutes, 6 seconds there's a lot of speculative tendencies that have crept in uh which means that conflicting reports keep coming in as far as the crop is concerned so till two 5:15 5 minutes, 15 seconds weeks before uh we were getting good news about the flow of crops in Vietnam but you know last week onwards we have 5:22 5 minutes, 22 seconds heard that there has been certain uh you know amount of flooding in uh some coffee growing region of Vietnam which could impact the supplies. So uh 5:31 5 minutes, 31 seconds therefore it's become very very difficult to predict that uh which way the prices would settle and therefore you know there is no other way but to 5:40 5 minutes, 40 seconds wait till December to see how the crop flows happen and where does the price settle in. So while I agree that a lot 5:47 5 minutes, 47 seconds of agree commodities have softened settled in but coffee somehow remains to be volatile and this also you know 5:55 5 minutes, 55 seconds points to the fact that uh the demand has been robust for coffee which means that uh you know the volatility is uh is 6:03 6 minutes, 3 seconds easier to manage when the demand is uh demand is pretty robust. In most of the other commodities you'll see that uh generally softening happens at the 6:10 6 minutes, 10 seconds demand side as well. uh you know kind of that settles the demand and the supply gap but here considering the demand has 6:18 6 minutes, 18 seconds always been robust uh the supply fluctuations have led to these kind of you know price volatility 6:25 6 minutes, 25 seconds and last question on the branded coffee in India if you could tell us uh in the e-commerce and commerce what kind of uh 6:32 6 minutes, 32 seconds uh share uh performance you have had market share performance and uh which channels you have a uh good presence uh 6:39 6 minutes, 39 seconds because the number one player is still seeing 20 25% sales growth of course uh large part will be the inflation but how 6:48 6 minutes, 48 seconds are you doing because both the number one number two seem to be doing quite well um so yeah I think if you see our 6:55 6 minutes, 55 seconds numbers uh when it when when it comes to growth we almost growing at you know 40 to 50% at least in the first half so our 7:03 7 minutes, 3 seconds growth have been very very robust and these are backed by uh volume growth as well it's just not uh price increase so 7:09 7 minutes, 9 seconds almost you know uh almost uh 25 30 odd% out of this is uh is is due to the volumes itself. So that's a pretty 7:17 7 minutes, 17 seconds pretty strong growth and we are gaining uh market shares as I told not only in states but also in channels. So now uh 7:24 7 minutes, 24 seconds again we look at uh in in two ways. One is the southern markets where we are trying to drive penetration. So here our 7:32 7 minutes, 32 seconds presence in general trade and modern trade and e-commerce are equally strong. 7:37 7 minutes, 37 seconds But when it comes to other markets like the northeast and the west where our distribution may not be so penetrative as it is in south there our presence in 7:46 7 minutes, 46 seconds uh you know ecom and modern trade is very strong. So as we speak we are pretty uh you know uh pretty well 7:53 7 minutes, 53 seconds positioned and in fact our our uh channel shares in ecom and modern trade are much better than our you know 8:00 8 minutes overall market shares. So we are doing pretty well in all the all the platforms so as to say will it be high singledigit market share 8:07 8 minutes, 7 seconds e-commerce e-commerce modern trade at least so e-commerce modern trade and this thing is doubledigit market share of 8:15 8 minutes, 15 seconds pan India pan India yeah see most of the plat platforms we are doubledigit market shares both in modern trade and in 8:24 8 minutes, 24 seconds e-commerce so that's very good news and in some of the states we are now pretty much let's say if you were to take the states of 80 in Telangana where we are 8:32 8 minutes, 32 seconds very strong we are number two player now so that's uh how strongly we are gaining market shares 8:39 8 minutes, 39 seconds and AP Telangana you will be displacing the number two sorry 8:46 8 minutes, 46 seconds who who have you replaced in terms of number two because number two is the other large MNC so let me not you know comment in details you can put your guesses who 8:55 8 minutes, 55 seconds will be the number two in south because it's pretty clear market who's the number one in north and who's number one in How? So the tools are automatically 9:04 9 minutes, 4 seconds you know you can you can spell it out and you will be a bit competitive price uh compared to the other two players. 9:12 9 minutes, 12 seconds So depends on me. Some places will be competitive some places we are higher and in some places we will be kind of same pricing. So for example the small 9:21 9 minutes, 21 seconds pouches and all that everybody is at the same pricing level right. uh in some SKUs we do become competitive at times 9:28 9 minutes, 28 seconds but now you know the pricing has become pretty much uh kind of you know uh you can change it uh by channel by the day 9:36 9 minutes, 36 seconds and uh by the month. So a lot of times we are not necessarily competitive prices and especially considering that 9:43 9 minutes, 43 seconds the way we have gained market share a lot of players are you know kind of pushing very hard on the pricing front as well. So uh so yeah but but there has 9:52 9 minutes, 52 seconds been a pretty good uh equity building on the brand also we are seeing in our equity scores also uh there's quite a good uptick in the awareness levels and 10:01 10 minutes, 1 second the conversion ratio all of them are leading to good results for us. 10:05 10 minutes, 5 seconds So thanks that's all from my side. Thank you. Thanks Aish. 10:11 10 minutes, 11 seconds Thank you. The next question is from the line of Siddhan Mantri from Invest Investments. Please go ahead. 10:19 10 minutes, 19 seconds Hello. Yeah. Am I audible? 10:21 10 minutes, 21 seconds Yes, you're allowed here. Please go ahead. 10:24 10 minutes, 24 seconds Yeah. Uh, hi sir. Congratulations on the uh strong device. 10:28 10 minutes, 28 seconds Actually, my question was on the working capital changes. There has been some uh cash release on the inventory side. So, 10:37 10 minutes, 37 seconds and also the side. So is this a one time thing due to the prices or like uh could you some could you like throw some picture on this? 10:47 10 minutes, 47 seconds Uh with regard to receivable there are a lot of operational efficiencies which you have brought in. Uh so we are pushing for early realization from the 10:55 10 minutes, 55 seconds customer and then offering the discounts to them in case if they pay us little early and then we are renegotiating the contracts as well to reduce the uh 11:04 11 minutes, 4 seconds credit period. So uh this has led to a drop in the receivables. Inventory uh inventory has come down because there is 11:11 11 minutes, 11 seconds better utilization of the existing stock uh in this quarter compared to the proced 11:22 11 minutes, 22 seconds working capital and this has led to a reduction in the debt. 11:28 11 minutes, 28 seconds All right. All right. So is this going to be a durable uh a sustainable level or is this uh a one-time thing which 11:35 11 minutes, 35 seconds will happen due to the pricing of the coffee? 11:40 11 minutes, 40 seconds Uh last quarter we have given the guidance that uh by this by by the end of September 25 we have a net debt 11:47 11 minutes, 47 seconds of,500 crores. Of course, we are ahead of the guidance uh but uh we would like to maintain the guidance that we have given in the last quarter because the 11:56 11 minutes, 56 seconds seasons that we have effect the next two quarters that we have ahead is basically the harvesting season. There will be a lot of procurement that will be uh that we'll have to do in the next two 12:04 12 minutes, 4 seconds quarters. So we'll retain our guidance of,350 crores by December and 1,200 crores by March. We are not revising that guidance. We keep it. 12:15 12 minutes, 15 seconds All right. All right. In short, the efficiencies are long-term, but let's say the things that are related to the prices could be uh could be because of 12:24 12 minutes, 24 seconds the lower prices. So, we'll have to wait and watch to see how things pan out. 12:30 12 minutes, 30 seconds All right. And just a followup question sir about the uh whole uh tariff situation and how is that fared till now 12:38 12 minutes, 38 seconds and going forward how do you think the situation is going to be? So the tariff situation continues to be the way it was 12:46 12 minutes, 46 seconds last quarter. India is uh at high tariff levels. But you know considering our facilities in India and Vietnam, we were 12:53 12 minutes, 53 seconds able to uh divert quite of uh quite a bit of the US business to Vietnam which meant that uh we would there was no 13:01 13 minutes, 1 second disruption. We continued to be you know uh competitive in that market and we continue to grow in that market. So that 13:09 13 minutes, 9 seconds is the situation as of now. uh we all are hoping not just us the whole of India is hoping that uh you know post the deal uh the tariffs should come down 13:18 13 minutes, 18 seconds and if that happens then uh you know uh it's not that we'll get an added advantage but we get a better leeway in terms of deciding where do we want to 13:25 13 minutes, 25 seconds supplies from whether it is India or Vietnam all right because actually what has 13:32 13 minutes, 32 seconds happened is that a lot of uh coffee from Brazil has been diverted from US over to Europe so is that affecting our market 13:40 13 minutes, 40 seconds share over there has something that has happened. So you know it's I yes Brazil coffee could be coming to Europe but it 13:49 13 minutes, 49 seconds is not just you know during tariff times. See anytime when the Brazil crop would be cheaper than the Vietnam crops they become a little more competitive 13:57 13 minutes, 57 seconds and therefore uh the uh the movement could have happened. Uh probably it was a coincidence that tariff also happened 14:05 14 minutes, 5 seconds and the crops were also good for Brazil this time. But I don't see a direct relationship that because Brazil crops 14:12 14 minutes, 12 seconds are coming to uh Europe, it has added to our competitiveness. The competitive competitiveness remains the same as it was before. 14:24 14 minutes, 24 seconds All right. All right. That's it for my thank you so much sir and all the best. 14:31 14 minutes, 31 seconds Thank you. The next question is from the line of Naim Patel from Bastian Research. Please go ahead. 14:37 14 minutes, 37 seconds Hi. Uh congratulations on a good set of numbers and thank you for this opportunity. Hello am I audible? 14:45 14 minutes, 45 seconds Hello. Hello. Am I audible? 14:48 14 minutes, 48 seconds As there was no response from this participant. We will move on to the next one. 14:54 14 minutes, 54 seconds The next question is from the line of Bhavia Sonawala from Samasa Capital. Please go ahead. 15:01 15 minutes, 1 second Yeah. Am I audible? Hello. 15:07 15 minutes, 7 seconds Hi. Am I audible? 15:11 15 minutes, 11 seconds Is there an issue with line? People are not able to connect. Am I audible? Yes, you're able. 15:21 15 minutes, 21 seconds Me, right? Yeah. Yeah. Yeah. Yeah. Yeah. Yeah. 15:28 15 minutes, 28 seconds Just a couple of Hello. Hello. Sorry to interrupt you. Actually, your voice is cracking. 15:36 15 minutes, 36 seconds Hello. Is it better now? Yes, it is better now. Please go ahead. 15:41 15 minutes, 41 seconds Yeah. Yeah. So, so just wanted to understand on the utilization uh including our new capacities that have 15:47 15 minutes, 47 seconds come online. Can you give us a blended capacity utilization um uh what's been uh in this quarter? 15:56 15 minutes, 56 seconds So you know this quarter was around 65 to 70% because we had good volume uh growth this quarter. So that's the 16:05 16 minutes, 5 seconds blended capacity utilization. So almost you know uh 100% on the previous capacity around 15 20% on the newer ones. 16:15 16 minutes, 15 seconds Oh so newer ones would be 15 20 uh%. Yeah. 16:19 16 minutes, 19 seconds Okay. Okay. And and would we would we be thinking about any newer capacities you know considering if we continue this growth in the next 2 three years or is 16:28 16 minutes, 28 seconds it uh time for that conversation to come on. 16:31 16 minutes, 31 seconds So right now I don't think so. We are actively thinking uh and as we have always maintained that you know when we 16:39 16 minutes, 39 seconds near uh you know 80% or 85% utilization that's when we will start thinking but as we have always maintained that there 16:47 16 minutes, 47 seconds could be many ways we could kind of you know uh source capacity either we build or we buy so we will take a call you 16:54 16 minutes, 54 seconds know maybe 2 years or 3 years down the line. 16:58 16 minutes, 58 seconds Understood. Uh just a last question on the branded business. uh can you just throw some light on how the marketing uh spends will go ahead from here 17:06 17 minutes, 6 seconds considering we're trying to build per call and a few other brands overall are we going to ramp it up uh how does it look from here 17:14 17 minutes, 14 seconds so actually yeah we have been ramping up our marketing spends and that's the reason we have been gaining market share you know across the board and uh we will 17:23 17 minutes, 23 seconds continue to do that because you know uh the the growths are good we don't want to kind of you know slow down the 17:30 17 minutes, 30 seconds momentum at this stage so we continue to ramp up our marketing initiatives and the marketing initiatives are being ramped up you know almost all 360 17:38 17 minutes, 38 seconds degrees. So whether it is mass media or whether it does select channels online everywhere you would see that our presence is increasing by the day. 17:47 17 minutes, 47 seconds Understood. Understood that uh that makes sense. And can you just hint on the volume growth overall what's been on this quarter? 17:54 17 minutes, 54 seconds So this quarter was 20 plus%. Yeah. So that was the volume growth this quarter. Yeah. 18:00 18 minutes Okay. Can can you just throw some light on you know this 20% comes u after quite a while of volume growth being in single 18:08 18 minutes, 8 seconds digits or higher uh just uh high single digits so you know anything that has changed 18:16 18 minutes, 16 seconds or you know not really I think you know as I have always maintained one quarter 18:24 18 minutes, 24 seconds growth sometimes is uh is is not really the reflection of the right picture. Uh therefore we say that you know go with the annual guidance and a little 18:32 18 minutes, 32 seconds long-term uh view of the company. Uh because multiple factors could play in a quarter but uh long-term is what will 18:39 18 minutes, 39 seconds matter. Uh even things like that how was the the same quarter last year if you remember the same quarter last year was 18:47 18 minutes, 47 seconds wasn't as strong. So that base effect also plays in. So the long-term guidance of 10 to 20% uh volume growth grow 18:53 18 minutes, 53 seconds growth uh remains intact. We are currently closer to you know first half around 15%. So we're looking to maintain that kind of a thing going forward as well. 19:05 19 minutes, 5 seconds Thank you so much. Thanks a lot and all the best. Thank you. 19:09 19 minutes, 9 seconds Thank you. The next question is from the line of Abishek Mur from systematics. Please go ahead. 19:16 19 minutes, 16 seconds Yeah. Hi sir. Uh thank you for the opportunity and congratulations on a good set of numbers. Uh just wanted to understand sir. uh it seems that our 19:22 19 minutes, 22 seconds eida per kg seems to have improved materially uh sequentially as well as on a y and y basis. Uh it would be great if 19:30 19 minutes, 30 seconds you can give an indicative range but also if you can uh talk about what seems to have led to this uh improvement what are the factors that are leading to 19:37 19 minutes, 37 seconds this. Uh it seems that over the past two years this has significantly improved as well. if you can talk a bit about that. 19:45 19 minutes, 45 seconds So you know uh I mean this is you know uh if you see and again I'm just pointing it to some long-term trends. Uh 19:53 19 minutes, 53 seconds yes it has improved in the last two three quarters. Uh but if you were to see maybe a few quarters prior to that it had also kind of softened a bit also. 20:02 20 minutes, 2 seconds I had always maintained that at that point of time our capacity addition was largely in spray dried. sprayed dried the uh the AITA per kilos is lesser than 20:12 20 minutes, 12 seconds freeze-dried. So what happened initially our contribution of spray dried had increased so the AITA per kilo had softened a bit. Then as the new 20:20 20 minutes, 20 seconds freeze-dried capacity came into picture uh which largely happened last quarter. 20:25 20 minutes, 25 seconds So a lot of AITA per kilo improved because of the uh you know uh re-entry of not re-entry let's say more addition 20:32 20 minutes, 32 seconds of freeze-dried uh into our sales profile. our small pack profiles are increasing. I had always maintained that 20:40 20 minutes, 40 seconds you know in tough times which was last year uh we were also looking to when the volume growths were not so high we were looking to drive in more efficiencies. 20:49 20 minutes, 49 seconds So that's uh adding to the growth and also let's say the uh uh things like domestic market which is now the 20:56 20 minutes, 56 seconds additional contribution already the domestic market first few hundred crores were built on break even now whatever is happening additionally is also 21:04 21 minutes, 4 seconds contributing now to the profit. So all of these factors are leading to you know uh u improvement of a beta per kilo 21:11 21 minutes, 11 seconds profile. uh I always say that uh uh that you know there are certain things which are built for long term so efficiencies 21:18 21 minutes, 18 seconds are built for long term but quarter on quarter let's say uh change in the mix change in the profile could lead to some 21:25 21 minutes, 25 seconds fluctuations here and there and uh therefore our guidance doesn't change largely yes it improves a little bit we had given a guidance of ITA growth of 21:33 21 minutes, 33 seconds around 15 to 20% looks like we'll end up uh end the year uh towards the higher end rather than the lower end So uh so that's what uh what we are looking at. 21:46 21 minutes, 46 seconds So in in in totality this is what uh this is what the scenario is. 21:51 21 minutes, 51 seconds Sure sir and and if you can give an indicative range of what was the aid per kg for the for the quarter or for the recent 1. 21:59 21 minutes, 59 seconds So if you if you if you see and I you know because we don't share the volume numbers it's a little bit of a bad calculation but I'll give you some range uh because we are persistently asking 22:07 22 minutes, 7 seconds for it. You know you have seen that last quarter we had mentioned that it was around 120 probably this quarter there is an increase of 10 12 rupees. So that 22:15 22 minutes, 15 seconds is where it is. So that's uh that's that's the uh that's the thing. 22:22 22 minutes, 22 seconds Sure sir. Uh that's all for me. Thank you and all the best. Thank you. 22:27 22 minutes, 27 seconds Thank you. The next question is from the line of Shir Pardesi from Motilos. Please go ahead. 22:35 22 minutes, 35 seconds Hi Pravin Sishant good morning thanks for the opportunity more curious how in the context the crop 22:45 22 minutes, 45 seconds uh gatality which is visible uh in terms of demand how the customers are reacting because now the price increases are 22:53 22 minutes, 53 seconds given so obviously is there any change in ordering is there any change in sentence uh from the customer 23:00 23 minutes yeah yeah I see morning so yeah you know last quarter there was a little change in the sentiment because prices had softened and there were some long-term 23:08 23 minutes, 8 seconds contracts that we saw coming our way. Uh but you know what happened is that very quickly subsequently that whole softening kind of went away and post the 23:18 23 minutes, 18 seconds harvest of Brazil and uh uh before the harvest of Vietnam which is going to happen in November December uh the prices again went up and it remains to 23:26 23 minutes, 26 seconds be volatile because we are seeing fluctuations almost to the tune of $100 every single or every two days. So that 23:33 23 minutes, 33 seconds is again you know keeping the people on tender roofs and people are still not large section of the buyers are not 23:40 23 minutes, 40 seconds still committed to the long term because all said and done while price increase is there uh people are still not willing to accept that this is the real price 23:48 23 minutes, 48 seconds that is uh uh that is going to uh kind of stabilize at so therefore still tentiveness is there so I can't say much 23:56 23 minutes, 56 seconds has changed from uh the previous quarters as far as the sentiment of the buyers is concerned Okay. Now why I'm asking because you did 24:04 24 minutes, 4 seconds a fantastically well and the volumes are very good. So in terms of B2B what kind of volume is it higher of 20% or is 24:13 24 minutes, 13 seconds lower than 20%. Because price also yeah yeah it was closer to 20%. And uh B2C as I was mentioning just 24:20 24 minutes, 20 seconds a while ago was closer to 25 30%. So blended yeah we were a little upwards of 20%. 24:28 24 minutes, 28 seconds Okay. And in domestic what is the business uh we have and uh in that what is the branded? 24:34 24 minutes, 34 seconds So domestic we did around 310 315 crores of business and out of that branded is 210 in the first. Yeah. Yeah. 24:44 24 minutes, 44 seconds Okay. Now particularly this quarter this quarter was out of 210 it was 110 was this quarter because if you remember 24:51 24 minutes, 51 seconds last quarter was 100 so it is 110 this quarter. Yeah. 24:54 24 minutes, 54 seconds Yeah. And in the domestic because we've been saying that we have we've been feeding a lot of markets and the small pack or the pouch pack is growing 25:03 25 minutes, 3 seconds faster. So is there a significant volume rise we are seeing in the south versus north? No. So in fact we are seeing more 25:10 25 minutes, 10 seconds because our bases are small in north. So we are seeing more volume increase and value increase in north. But south also 25:18 25 minutes, 18 seconds grow remains to grow very very uh strongly. So at these levels both are growing uh growing well. In south we are driving more penetration as you rightly 25:27 25 minutes, 27 seconds mentioned we are driving more of you know uh small packs sachets uh and getting into smaller towns and to the 25:36 25 minutes, 36 seconds wholesale business whereas in northeast and west we continue to drive more of variety ecom quickcom and uh and of course the 25:45 25 minutes, 45 seconds modern trade. So from there we are driving a lot of you know variety of uh packs we've done flavored coffee and things like that. So that is what is 25:53 25 minutes, 53 seconds helping us drive more growth in the other markets. 25:57 25 minutes, 57 seconds Okay. Uh this is a little hypothetical but assume that if the price remains elevated uh so what is our quarter 4 exact uh that position you aspire to be? 26:09 26 minutes, 9 seconds So I think CFO had given a guidance of around uh 1,300 to 1400 crores. So that is what we will we probably end up at. 26:19 26 minutes, 19 seconds Okay. All right. Thank you and all the best. Thank you. Thank you. 26:24 26 minutes, 24 seconds Thank you. The next question is from the line of Vignesh Ayar from Sequent Investments. Please go ahead. 26:38 26 minutes, 38 seconds Excuse me. Vignesh. 26:45 26 minutes, 45 seconds As there was no response from the participant, we will move on to the next one. 26:55 26 minutes, 55 seconds The next question is from the line of Nityasha from Kamakia. Please go ahead. 27:01 27 minutes, 1 second Uh hi sir, congrats on a good set of numbers. Uh I just wanted to understand uh the vision of the company going forward. I saw that you have launched 27:09 27 minutes, 9 seconds products such as iced tea and you know some non- coffee kind of products. So what's the vision here? Uh do you plan to be just a coffee company or an FMCG company in the future? 27:21 27 minutes, 21 seconds So I think we have kind of spelt it out. 27:23 27 minutes, 23 seconds You have and you have spelt it out in your second half. We want to be an FMCG company. Uh we want to build more and more brands. Uh that's our long-term 27:32 27 minutes, 32 seconds vision. And therefore you will see our experimentations into some of these categories uh which uh kind of you know 27:40 27 minutes, 40 seconds very well complement our coffee category which is also growing very well. So we are wanting to enter into more categories and you know we are creating 27:48 27 minutes, 48 seconds this distribution network and as we grow into smaller terms we probably will this entering into other categories will also help us expand. So it's like a two-way 27:57 27 minutes, 57 seconds process. Uh so the distribution will help us launch products and the new products will help expand distribution as well. So so it's it's a two-way thing 28:05 28 minutes, 5 seconds that will also benefit us. So longterm yes you're absolutely right. We're looking to be an FMCG company. 28:11 28 minutes, 11 seconds Okay. And uh are we expecting a lot more new kind of product launches this year and next year like uh other than what has already been announced? 28:19 28 minutes, 19 seconds So I uh I don't see a lot of launches because there are quite a few things that we have launched and we want to consolidate that. Uh we are 28:28 28 minutes, 28 seconds experimenting we are test marketing you know how we work. We generally want to make sure that you know in the test market uh we make things right and then 28:36 28 minutes, 36 seconds expand. So there is these things like you know um tea in the institutional segment iced tea for the consumers. We 28:44 28 minutes, 44 seconds also done a very small micro or let's say a nano test lanch of snacks as well. 28:49 28 minutes, 49 seconds So we are looking to kind of you know make sure that our uh all piece of marketing are set right before we expand. So we have our plates full right 28:57 28 minutes, 57 seconds now. So I don't foresee uh any more categories uh getting added very quickly. Uh but yeah at the background 29:04 29 minutes, 4 seconds we keep evaluating things. We are working on lot of things. So that work keeps happening in the background and to fund the growth of this new 29:13 29 minutes, 13 seconds vertical it will all be done through internals or in the future you may require more debt or equity funding. How would you go about it? absolutely 29:20 29 minutes, 20 seconds internal because our old coffee business now hopefully this year we'll end up at 420 430 crores which is profitable and 29:28 29 minutes, 28 seconds as I said not only to grow the coffee business but also for the newer categories we will have enough internal approvals not just internal across from 29:36 29 minutes, 36 seconds the company but from this vertical itself which is the B2C vertical which will be able to fund its own growth going forward. 29:43 29 minutes, 43 seconds Uh so what was the uh revenue number of the B2C segment in this quarter? Yeah 110 I just mentioned uh 110 sorry I missed that. Thank you. 29:53 29 minutes, 53 seconds That's all from my end. All the best. Thank you. 29:58 29 minutes, 58 seconds Thank you. The next question is from the line of Sadhar Kurohit from Invescue Investment Advisers. Please go ahead. 30:06 30 minutes, 6 seconds Yes sir. Uh hi. Hi sir. Uh so just uh one uh clarification and understanding I would like to have uh earlier when we 30:13 30 minutes, 13 seconds used to see a lot of uh price fluctuations and probably price being elevated and continuously up trajectory we used to see a margin pressure and 30:22 30 minutes, 22 seconds when you started the uh short-term contracts it has been largely been uh kind of no insulated you have been 30:29 30 minutes, 29 seconds largely insulated. right now uh from the customer point of view uh does it really uh make a difference if 30:37 30 minutes, 37 seconds prices uh like you know uh if at all starts trending down they will continue to have a short-term contract with you 30:45 30 minutes, 45 seconds and in that case again how do you position your contract going ahead so that we maintain the similar a bit of per kg 30:54 30 minutes, 54 seconds so I think that's a wrong conclusion to draw uh price never uh determines our margin profile because we are we always 31:02 31 minutes, 2 seconds do cost plus model. Yeah. So which means that we we try and maintain our margins whether it is a short-term contract or it is a long-term contract. Yes, 31:10 31 minutes, 10 seconds long-term contracts gives us better vision uh gives gives us better planning. Our supply chain management gets better but largely our margin 31:18 31 minutes, 18 seconds profiles don't change whether it is a short-term contract long-term contract. 31:21 31 minutes, 21 seconds Right? The improvement in margin profiles happens because as we were speaking earlier product makes efficiencies getting built at our end 31:30 31 minutes, 30 seconds you know small packs now domestic market is also contributing so all of these lead to you know better uh better margin profile and sometimes therefore I say 31:39 31 minutes, 39 seconds some of these stay with us like let's say things like efficiency building internal efficiency building and all that they will stay with us product mix 31:46 31 minutes, 46 seconds and all that is also a determinant of how the markets are behaving and how the contracts are coming. So that is why uh 31:54 31 minutes, 54 seconds that is how things will play out as far as the margins are concerned. Now where do we focus on? Obviously we love long-term contracts because it gives us long-term view. It helps us plan better. 32:04 32 minutes, 4 seconds Uh but sometimes we also don't want to kind of you know our clients to go into long-term contracts because of high 32:11 32 minutes, 11 seconds prices because see if they go for long-term contracts at high prices then it is actually a loss for them when the prices fall. It it will not lead 32:18 32 minutes, 18 seconds anything. It will not impact us in any way. But you know we have a very strong relationship with clients. We guide them 32:25 32 minutes, 25 seconds that how do things how should they place the contract. So we also at times of volatility we actually tell them to kind 32:32 32 minutes, 32 seconds of uh you know uh go for short-term rather than long-term contracts. But yeah we would love the prices to stabilize as much as possible because 32:41 32 minutes, 41 seconds long-term contracts obviously are much better in terms of our view in the future. 32:47 32 minutes, 47 seconds Okay. And just to move questions now that our assets have been capitalized. 32:52 32 minutes, 52 seconds Uh is it the the current rate of depreciation will be uh like you know uh is at the peak and uh secondly uh 33:00 33 minutes earlier you used to have lower tax rate now uh last two quarters you have been on a higher side. So is it the normal tax rate uh that we should be considering going ahead. 33:10 33 minutes, 10 seconds So I think first I just answer the first one very broadly because I think your voice was not very clear. So I don't know whether people heard it. Second one about tax rate he will clarify. So we 33:19 33 minutes, 19 seconds are already off the peak levels. If you remember last year and we were at around 1,800 1900 debt levels yeah which has 33:25 33 minutes, 25 seconds now come to 1580 uh and the net debt will be a little lower than that as well. So we are off peak levels as far as debt is concerned. As far as tax 33:33 33 minutes, 33 seconds rates I'll just ask uh Caitana to clarify to you. 33:37 33 minutes, 37 seconds So uh regarding the tax rate again it's a derivative of where the uh profit has come from. Since we have facilities at 33:45 33 minutes, 45 seconds Vietnam, we have uh CZ EO and all. So, so where the profit earned also determines the tax that we have in the P&L. So, average it could be around 17%. 33:58 33 minutes, 58 seconds We so we can take 17% as the average tax rate and also the depreciation is at peak 34:06 34 minutes, 6 seconds right now now that we have capitalized uh RS. 34:09 34 minutes, 9 seconds Yes. Yes. Yes. So, so depreciation is at it peak. Interest is also uh interest will interest will start slightly 34:16 34 minutes, 16 seconds moderating. It may not come down significantly because last year we would have capitalized lot of uh interest. So uh in terms of depreciation uh it is at 34:25 34 minutes, 25 seconds the peak level. Interest rates will more or less remain the same. Little bit of more. 34:31 34 minutes, 31 seconds Thank you sir. Thanks a lot and all the best. Thank you. 34:37 34 minutes, 37 seconds Thank you. The next question is from the line of Nihal Sha from Prudent Corporate Advisory Services. Please go ahead. 34:45 34 minutes, 45 seconds Thank you for the opportunity. Am I audible? Yeah. Yeah. Yeah. 34:50 34 minutes, 50 seconds Uh yeah. Uh congratulations on a great set of numbers. So uh as we have seen a lot of growth segment uh can you some color on the 34:59 34 minutes, 59 seconds margin profile that uh we are managing right now in that segment? 35:05 35 minutes, 5 seconds So I your voice was a little cracking but what I hear you is that you are asking to give some some color on the 35:12 35 minutes, 12 seconds margin profile right of B2C aa of B2C okay fine so you know the 35:19 35 minutes, 19 seconds margin profile is uh is pretty much similar to what we had seen last year again you know there is a lot of uh 35:28 35 minutes, 28 seconds things that play into it the more penetrative we are becoming the more small packs we are telling small packs don't necessarily have very high margin 35:36 35 minutes, 36 seconds profile. But what we are doing is at two levels. One is we are keeping an eye on our topline growth and we are keeping an 35:43 35 minutes, 43 seconds eye on our AITA levels. Now what is happening in between is that we are playing it around so that we keep the momentum happening. So at times we are 35:51 35 minutes, 51 seconds pushing the brand because you know some SKUs need to be pushed and uh at the same time we are also creating enough pull. So, so that is where it is as far 36:00 36 minutes as EITA is concerned. We are at around 5 to 6% AITA level uh for this B2C uh setup and we will continue to be at 36:08 36 minutes, 8 seconds these levels going forward because we want to reinvest as I told you that not only in driving the coffee growth and distribution but also making sure that 36:17 36 minutes, 17 seconds some of our new initiatives also are nurtured and nourished. So, we will we keep using the fund to drive all of this and keep the margins at these levels and continue drive the MSI growth. 36:29 36 minutes, 29 seconds Oh okay. Thank you. Thank you very much. 36:34 36 minutes, 34 seconds Thank you. The next question is from the line of Paramora from Trinetra Asset Managers. Please go ahead. 36:42 36 minutes, 42 seconds Hello. Thank you for taking my question and congratulations on great set of number. So sir can you you know give us 36:50 36 minutes, 50 seconds some light on the 26% stake you took in Mukunda renewables like what will be the timeline for commissioning and what aida margins can we expect? 37:02 37 minutes, 2 seconds So you know uh so there is a dual purpose of this first and foremost yeah you know as a company uh we we are you 37:09 37 minutes, 9 seconds know a responsible company as far as the energy requirements are concerned. So we want to go for greener energy more and more. So that was our primary objective 37:17 37 minutes, 17 seconds to do this or take this project. Uh this project will take around uh you know uh 12 to 18 months to complete because it's a hybrid thing. Therefore I'm giving you 37:26 37 minutes, 26 seconds a broad uh guideline. In 12 months certain uh certain set of energy will start coming in and in 18 months the 37:33 37 minutes, 33 seconds full energy that we have contracted with them will start coming in and almost you know uh 50 to 60% of our energy 37:40 37 minutes, 40 seconds requirements will be uh sufficed through this uh uh through this arrangement and this will mean that 50 60% of energy 37:50 37 minutes, 50 seconds requirement will be green energy. So that is there. Yes. uh there is a there is there will be an improvement in terms 37:56 37 minutes, 56 seconds of operational uh costs. Uh but we are looking it in both ways because we're also you know kind of uh spending money 38:03 38 minutes, 3 seconds up front to uh get this thing done. Uh which will mean that there'll be a 2 three years of payback period as well. 38:11 38 minutes, 11 seconds Uh so that that's where it is right now. 38:14 38 minutes, 14 seconds We are not uh uh too predictive about that what is the you know margin improvement that will happen because 38:20 38 minutes, 20 seconds energy is contributing very very small portion into the margin profile 60 70% we all know is green coffee so that is 38:28 38 minutes, 28 seconds what will drive the margins growing forward okay thank you 38:36 38 minutes, 36 seconds thank you next question is from the line of Deepak Saha from Nirmalbang institutional equities please go ahead 38:44 38 minutes, 44 seconds Hi uh Prair one question on the uh B2C path if you can double click on the demand driver uh I mean is it more of 38:51 38 minutes, 51 seconds out of home consumption or inhouse consumption that we are seeing which is if you're doing 40 45%. I understand base is small but uh what is largely 38:59 38 minutes, 59 seconds driving from the end user perspective is it out of home or uh it's you know consumption or something else if you can give some color on that. 39:08 39 minutes, 8 seconds So let me first give you a little category this thing. uh so category if you see the out of home is growing much faster than in home. Yeah. So there is 39:17 39 minutes, 17 seconds uh there is quite a bit of consumption increase. The inhome consumption still is not not not very euphoric. It is it 39:24 39 minutes, 24 seconds is uh let's say I were to speak of volumes it is low single digits only. So it is not uh not very high. Uh but for 39:33 39 minutes, 33 seconds us the growth is not necessarily coming from the category growth. We are more focused because we are a very small player. Uh we are a new entrant in the 39:40 39 minutes, 40 seconds market. So most of our growth is largely dependent on market share gains and that is where our focus is that how do we gain more and more market share. 39:51 39 minutes, 51 seconds Okay. Got it sir. And so just a follow up from the previous participants question on the investments that you have done on the renewable side and you 39:58 39 minutes, 58 seconds also highlighted the kind of efficiencies kicking in uh uh from you know working capital point of view and other measures that you are taking. So 40:07 40 minutes, 7 seconds uh if you can list out all these other uh you know different measurements that you are taking to bring uh operation efficiencies uh both on the operation 40:15 40 minutes, 15 seconds side and as well as it is reflected on the working capital side. It would be best bit helpful for us to understand. 40:21 40 minutes, 21 seconds Um so you know it it it kind of uh you know uh uh span across the whole value 40:28 40 minutes, 28 seconds chain. Uh so basically uh right from making sure that you get the most optimum yields uh the better utilization 40:37 40 minutes, 37 seconds as we increase our utilization the fixed cost spread becomes better so you're able to spread towards a higher volume 40:43 40 minutes, 43 seconds uh you know all of this leads to uh better efficiencies. Now energy cost yes this will also add so it's like you know 40:51 40 minutes, 51 seconds in Hindi we say that's the kind of thing that is going to happen on the efficiency front and most of this is going to stay uh but yes considering as 41:00 41 minutes I told as I always tell 60 70% is green coffee which determines the where the margins will be so yes efficiency 41:09 41 minutes, 9 seconds building is something that we have taken forward now if you were to ask if you were to break it down very difficult to break it down that okay if I got a 10 41:18 41 minutes, 18 seconds rupee better margin every kilo. How much was it through uh you know energy and how much was it through yield improvement but yes all of them have 41:26 41 minutes, 26 seconds kind of added to this 10 rupee is what I would like to say. 41:31 41 minutes, 31 seconds Got it sir. And uh sir one last thing I mean quite structurally if I see I mean our capex cycle is behind us. we are 41:38 41 minutes, 38 seconds talking about you know debt reduction working capital is improving your cash flow from operations has gone up quite meaningfully now and uh B2C has started 41:47 41 minutes, 47 seconds firing right so considering all this when you're talking about 15 to 20% kind of a beta growth right and there has 41:54 41 minutes, 54 seconds been steady improvement on the operation efficiency side so uh is it fair to say that we are being quite conservative of those numbers and uh the structurally 42:03 42 minutes, 3 seconds not from a near-term point of view next couple of years we can actually do even better than So you know 42:11 42 minutes, 11 seconds it time will tell whether we were conservative or not but uh yeah we kind of as I was always uh said one quarter 42:19 42 minutes, 19 seconds may not be reflection of a long-term performance uh and when we say long-term performance we always and you know uh if 42:26 42 minutes, 26 seconds you were to see CCL we always have been kind of saying that we want to maintain steady uh state of growth and uh to do 42:33 42 minutes, 33 seconds that uh last conference call mentioned that uh you know there are times where volume will drive our growth. There are times where efficiency and other aspects 42:41 42 minutes, 41 seconds mix will drive our growth. Sometimes a quarter like this happens where all of them come together. So the growth becomes that much more nicer. Uh so 42:50 42 minutes, 50 seconds therefore you know and so therefore I cannot for sure say that this will happen every time. Uh thus the long-term guidance remains but yes I do kind of 42:59 42 minutes, 59 seconds accept that when we had given a guidance of 15 20% we could have landed anywhere between 15 to 20. Now it looks like we 43:06 43 minutes, 6 seconds probably will land closer to the higher end of the uh guidance than at the lower end. So that's uh the uh you know that's the submission from my side. 43:18 43 minutes, 18 seconds Appreciate it sir. Thank you. Just one last thing before I join the queue. 43:21 43 minutes, 21 seconds structurally uh now you mentioned that even last call and today also you mentioned that uh you know the desire to 43:28 43 minutes, 28 seconds be a safeg company and we have seen uh the kind of measurements you have taken for with Malgoodi brand and different other snacks also some of the 43:37 43 minutes, 37 seconds experiments that you are doing so if you just can uh very you know briefly give a uh your thought process on where how we 43:46 43 minutes, 46 seconds position ourselves from a longerterm point of view uh one is coffee business and definitely doing But beyond that what's your vision on that? 43:54 43 minutes, 54 seconds So you know very very clear I kind of spelling it out again. We want to be an FMCG company. We are building 44:01 44 minutes, 1 second distribution. Uh you know we were the probably the only company six seven years ago when everybody was uh kind of 44:10 44 minutes, 10 seconds focusing on uh um you know direct to consumer and were not ready to build distribution because of the challenges it has. uh we went the other way around 44:19 44 minutes, 19 seconds and we went uh we went ahead and build distribution because we were clear that if this were to succeed we probably in future would like to uh transition 44:27 44 minutes, 27 seconds ourselves into an FMCG company. So that is the thought process and therefore seeding of some of these initiatives like a iced tea or let's say a snack all 44:37 44 minutes, 37 seconds of this is happening. Uh there are a few categories we are always on the lookout or kind of working at the back end at what could be some of the other 44:44 44 minutes, 44 seconds categories. But you know right now we have our plates full in terms of you know um driving growths in some of these 44:52 44 minutes, 52 seconds agencies that we have entered into and uh going forward yes we are putting all our might behind uh uh all of these 45:00 45 minutes categories and developing ourselves into an FMCG company today as as we speak we are already directly distributing to one 45:06 45 minutes, 6 seconds lakh 30 or 1 lakh 40,000 outlets uh which is uh which is quite significant and uh we have a belief that since we We have built this distribution network. 45:17 45 minutes, 17 seconds Now we need to supplement it with some more categories and these more categories which help us go beyond from 150 to two lakh. So because you know 45:26 45 minutes, 26 seconds every additional out outlet you go the throughput has to match uh the cost of going to that outlet. So and unless and until we add to our portfolio this may 45:34 45 minutes, 34 seconds not be you know feasible. So keeping all this in mind our vision and our way forward is pretty much clear. But yes, 45:43 45 minutes, 43 seconds while we say so, we always know that all of this has to be taken with a pinch of salt because uh not every initiative 45:50 45 minutes, 50 seconds succeeds. Uh so therefore we are we are taking calibrated steps doing test marketing. Be sure that in the test market things are working and only then 45:58 45 minutes, 58 seconds we will expand and spend uh money behind it. Thank you sir. It's really helpful. 46:04 46 minutes, 4 seconds Thank you and all the best for rest of you. Thank you. 46:08 46 minutes, 8 seconds Thank you. The next question is from the line of Akil Pay from BNK Securities. Please go ahead. 46:15 46 minutes, 15 seconds Hi. Uh thanks for the opportunity and uh many congratulations Pravin Shisha uh uh 46:22 46 minutes, 22 seconds for the good set of numbers and it's really heartening to see the gradual and consistent progress that CCL has achieved over last uh uh 10 years and more so specifically in last five years. 46:32 46 minutes, 32 seconds Uh uh so my first question is on the branded business right we have seen last two years we have maintained 70 30% 46:41 46 minutes, 41 seconds right in the domestic 70 comes from branded while non-branded is 30%. Uh while in first half we see that 46:49 46 minutes, 49 seconds proportion has gone down to uh slightly below 50% for branded. uh so any specific pockets where we have seen 46:56 46 minutes, 56 seconds growth in uh uh in the non-branded part and uh what has led to that uh uh distortion basically and how should one 47:03 47 minutes, 3 seconds look at it uh uh between branded and non-branded is domestic for next two years that's my first question 47:10 47 minutes, 10 seconds so okay fine akil so again you know one of the first things that uh uh I've been 47:17 47 minutes, 17 seconds telling that let's not look at proportions because it's not that we will compromise on any one segment uh uh 47:25 47 minutes, 25 seconds for the other. So what it means is that yes we would like all our business to come from B2C but there is a nonbranded segment also which we drive very 47:34 47 minutes, 34 seconds aggressively today you know as we speak almost 80% of the private label that we are doing in India 80% of private label 47:42 47 minutes, 42 seconds in India we are doing so we're aggressively driving that segment as well so we don't want to leave any piece saying that okay because we anyways are 47:49 47 minutes, 49 seconds a coffee manufacturer we have been in the B2B business for so long and our ability to uh deliver on the B2B part is 47:58 47 minutes, 58 seconds equally good. So what is happening is that we have set up a separate vertical which is now very aggressively going to all the uh private labels the B2B 48:07 48 minutes, 7 seconds parties in India and we are aggressively driving the growth there as well. So it's more like you know we driving equal 48:14 48 minutes, 14 seconds very strongly all the segments and it so happened that uh that segment we gained a lot of contracts in the near uh near 48:22 48 minutes, 22 seconds time last uh 6 months we have added two three more private labels to our kitty which has led to you know much better growth there as well. 48:32 48 minutes, 32 seconds Sure. And the margin profile would be broadly similar between the two. 48:37 48 minutes, 37 seconds uh so you know depends if you were to see at a gross margin levels the the B2B will be lower but when you look at net 48:44 48 minutes, 44 seconds margin levels the B2B will be higher because you don't spend anything on that on marketing spends and all that so it 48:51 48 minutes, 51 seconds is like that but yeah uh we we kind of uh uh play it uh uh contract by contract 48:59 48 minutes, 59 seconds and uh target by target client by client sure thanks and my second question you mentioned that we have reached 1.5 lakh 49:08 49 minutes, 8 seconds retail outlets. Uh what would be the true potential in terms of uh the retail outlet 49:15 49 minutes, 15 seconds uh reach we can achieve say over next three years. Okay. 49:19 49 minutes, 19 seconds So in next 3 4 years uh 3 years at least we'll try and double it. It will all depend on some of our other initiatives. 49:28 49 minutes, 28 seconds So the more uh you know uh things we add to the portfolio or the speed of uh uh reaching the outlets will become that 49:35 49 minutes, 35 seconds much more bigger because now after 1 lakh 50 what happens is that the cost of going to that outlet sometime doesn't justify the throughput. Yeah. But when 49:43 49 minutes, 43 seconds you have other things in your portfolio then it's getting justified. So really depends how things shape up in the future but in 3 years time we can definitely double it. 49:54 49 minutes, 54 seconds Sure. My last question uh slightly uh short-term based uh usually what we have seen in second half is better than first 50:01 50 minutes, 1 second half right and our growth is far better than 20% in first half uh while you're alluding that you maintain 20% plus I am 50:09 50 minutes, 9 seconds a growth portfolio uh so how should one feel about the second half uh so you know two things one is that I 50:17 50 minutes, 17 seconds think yes you're right maybe five years ago we used to see that second half used to be a little better than the first half but I think last five years I haven't seen in terms of and this I'm 50:26 50 minutes, 26 seconds talking about in terms of business I haven't seen uh uh you know much of a difference yes in India the second half is definitely bit a little better 50:33 50 minutes, 33 seconds because India is a little seasonal market but rest of the markets like a Europe market uh US market uh CIS country market these are generally you 50:42 50 minutes, 42 seconds know and the buying for the second half the the season time also happens preseason so I don't see much of an impact in terms of uh uh sales or margin 50:52 50 minutes, 52 seconds also a little will depend on how the bases are. So I don't want to dampen the spirits here but you remember that last 50:59 50 minutes, 59 seconds year the second and third quarters were a little weaker than the first and the last. So you will see the last this year the last quarter uh will probably will 51:09 51 minutes, 9 seconds be facing a very good last quarter last year as well. So so that will also determine how the growth level are. So I can't say that this growth will better 51:17 51 minutes, 17 seconds off. We'll try and maintain as much as possible but yeah the guidance remains that we probably will be at the upper end of the 15 20% guidance of a bit. 51:27 51 minutes, 27 seconds So thanks a lot uh this is very helpful and best wishes to uh you for uh coming quarters. Thanks so much. 51:34 51 minutes, 34 seconds Thank you. Thank you. 51:38 51 minutes, 38 seconds Thank you. The next question is from the line of vaynav gurum from craving alpha fund. Please go ahead. 51:46 51 minutes, 46 seconds Hello. Hello. Yeah. Uh, thank you for the opportunity, sir. 51:53 51 minutes, 53 seconds My first question is on the capacity side. If you can help me with the capacity in India versus Vietnam and the respective capacity utilization. 52:04 52 minutes, 4 seconds So in India we have a capacity of around 40,000 metric tons. Vietnam is 36 37. So the total is around 77, right? And uh 52:13 52 minutes, 13 seconds the utilization at a blended level is around this quarter was 65 to 70%. Uh so 52:20 52 minutes, 20 seconds uh which is which means that the the uh the old capacity is fully utilized and the new one is at around uh 15 20%. 52:29 52 minutes, 29 seconds So a follow-up question uh when can we expect better capacity utilization for the new capacities added? So it will so 52:37 52 minutes, 37 seconds the better is a is a question which is can be answered in this way that we are anyways looking at consistent volume growth. So it won't happen that overnight the capacity gets utilized. 52:48 52 minutes, 48 seconds What will happen year after year as we are driving volume growth you will see you know probably every year maybe 30% 52:56 52 minutes, 56 seconds additional capacity gets utilized uh the new one. So that is how the trajectory will be and therefore we said in 3 years time 3 to four years time we will look 53:04 53 minutes, 4 seconds to kind of fully ramp up the capacity but as we have maintained that some of these capacity utilizations are in a 53:12 53 minutes, 12 seconds it's a step up process. So for any gradual increase also you have to increase the capacity in such a manner that it takes care of next 3 to four years. 53:24 53 minutes, 24 seconds Okay. Uh thank you sir. The last question is on the revenue side. Our quarteronquarter uh sales have been 53:30 53 minutes, 30 seconds increasing by 40 to 50% if I'm not wrong yearon-year basis. So just wanted to ask how s how sustainable is that and where do we expect to close for f26. 53:42 53 minutes, 42 seconds So as uh you know you know this growth is largely dependent on the green coffee prices and may not be reflective of the 53:50 53 minutes, 50 seconds long-term performance because it all depends how the green coffee prices uh pan out and therefore we kind of you know give you a little color on how the 53:57 53 minutes, 57 seconds volume growths have been. So that is the true picture of our performance and our even our AIA growths are mostly in line with uh the uh volume growth. So our 54:06 54 minutes, 6 seconds volume growths have been uh you know this quarter uh the quarter gone by was a little upwards of 20%. And the first 54:14 54 minutes, 14 seconds quarter was closer to 8 to 10%. So the blended first half is around uh uh 15% and we would like to maintain this kind of a volume growth uh going forward. 54:25 54 minutes, 25 seconds Okay. Any guidance on the revenue for F26? 54:29 54 minutes, 29 seconds So revenue again I said that it's a little uh uh not gives doesn't give you the right picture. we have already done 2,000 crores. If I were to 2,000 and if 54:38 54 minutes, 38 seconds the same coffee rates were to uh hold on then 2,000 will become another 2,000. It will be closer to 4,000 crores. But 54:46 54 minutes, 46 seconds we'll really depend on the coffee prices and therefore uh sometimes there could be fluctuation on the uh value numbers. 54:54 54 minutes, 54 seconds Okay, that's it from my side. Thank you sir. Thank you. 54:59 54 minutes, 59 seconds Thank you. The next question is from the line of Lokesh Mani from William Capital. Please go ahead. 55:05 55 minutes, 5 seconds Yeah. Hi, good afternoon and uh my first question was on the new capacity utilization 15% you mentioned. What is the size of this capacity? 55:19 55 minutes, 19 seconds So the new capacity is almost uh you know half of the total capacity that we have because uh almost half couple of thousand crores here or there. Yeah. 55:29 55 minutes, 29 seconds 35,000 give or take. 55:31 55 minutes, 31 seconds Right. Right. Right. Great. Uh my second question is if I look at the conversion margins uh they are at the lower end 55:40 55 minutes, 40 seconds compared to historical levels. Uh then would it be a fair assessment that the mix would have more spray dry compared to freeze dry? 55:50 55 minutes, 50 seconds Uh no not necessarily because what is happening is also that because of the new capacity it also uh you know adds to 55:57 55 minutes, 57 seconds the fixed the fixed cost gets added and therefore you will see some uh you know uh some lowering of the conversion 56:04 56 minutes, 4 seconds margins here or there uh but uh it's not necessarily because spray dried has increased in fact our freeze-dried 56:12 56 minutes, 12 seconds component increase and therefore a bit per kilos you see are better than uh previous quarters okay And but the new capacity is of 56:20 56 minutes, 20 seconds freeze ride the farm system which is coming out both freeze ride also and spray ride also. 56:26 56 minutes, 26 seconds Oh okay. Um my last question was on the blended business side on the B2C side specifically. Uh so uh if you could just 56:34 56 minutes, 34 seconds give a sense of what would be the since you mentioned it's profitable now uh if the margins evita margins are you know 56:42 56 minutes, 42 seconds at the company level below that above that uh because because of two reasons one is it is also you mentioned 56:48 56 minutes, 48 seconds contributing to our perk uh and secondly uh you know you mentioned that uh the new initiators would be self-funded 56:56 56 minutes, 56 seconds through this vertical so there's a plus and minus kind of a scenario so just getting a sense uh you know where where these margins 57:04 57 minutes, 4 seconds for new businesses would be uh B2C business vertical would be uh compared to the company level. 57:11 57 minutes, 11 seconds Yeah. So it is it is lower than the company level that is because we are reinvesting uh uh a lot of this back into the business. But if you see the 57:20 57 minutes, 20 seconds additional volume that is coming. So let's say for example we did 200 crores let's say last year and if we were to do 300 crores. So what happens is that 57:28 57 minutes, 28 seconds additional additional amount is and 200 crores is the let's say the break even of that 200 crores is already built into the business. So the 100 crores is 57:35 57 minutes, 35 seconds coming at a much higher uh clip than it was coming last year and therefore I said it is started now contributing. So at a at a full level like let's say we 57:43 57 minutes, 43 seconds have done uh already 210 crores in the first half. uh there we are at 5 to 6% a bit margin. Yeah. But come to think of 57:51 57 minutes, 51 seconds it last year this 210 was let's say 130 that kind of a number and uh that number 57:59 57 minutes, 59 seconds was break even. So the additional number the full five six% is actually contributed by the additional volumes and that is why I said it it is now 58:08 58 minutes, 8 seconds contributing but having said so uh we would want to maintain this 56% not kind of milk it as of now uh because as we 58:16 58 minutes, 16 seconds said we want to kind of grow the business not only this business but also add couple of uh other categories which will require investment so therefore we 58:25 58 minutes, 25 seconds will we will continue to kind of you know spend at those levels. The last one the B2B business uh in this what would 58:33 58 minutes, 33 seconds be the revenue for this quarter or half year if you can share I missed that I'm sorry which B2B India B2B 58:40 58 minutes, 40 seconds yeah the private label part so basically in India first half we have done around 310 crores so if you remove 210 almost 58:49 58 minutes, 49 seconds 100 crores is B2 B2B which is both bulk and private label right bulk and private label okay and these 58:56 58 minutes, 56 seconds would include the snacks and the new initiatives The entire vertical no snack is very small but hardly anything to write home about. So these 59:03 59 minutes, 3 seconds are very small. This is built into 210 crores not in the but those will be few lakhs because we are only you know micro marketing test marketing 59:13 59 minutes, 13 seconds right and any development on the or update on the UK brand acquisitions that we had done how is that progressing this 59:20 59 minutes, 20 seconds that's uh that's progressing quite well in spite of uh uh the hugely competitive market and a market which requires very 59:27 59 minutes, 27 seconds very high level of investment in spite of that we are growing we are kind of you know adding new accounts and uh uh 59:35 59 minutes, 35 seconds so so so that business is also doing uh uh doing pretty well. So we should get a you know 30 40% growth in that business as well. 59:44 59 minutes, 44 seconds Great. That's it from my side. Thank you so much. Thank you. 59:50 59 minutes, 50 seconds Thank you. The next question is from the line of Manish Mahava from Antic Broking. Please go ahead. 59:57 59 minutes, 57 seconds Yeah. Hi. Uh just in terms of AITA per kg, I think last two quarters, right? uh our AIA is around 120 to 130 per kg 1:00:05 1 hour, 5 seconds right going forward uh maybe 27 28 once our capacity will reach to optimal level how do you see this a bitter per kg should be 1:00:13 1 hour, 13 seconds so should improve Manish very difficult to put a number but as we have been speaking uh it will improve because of 1:00:20 1 hour, 20 seconds uh you know two three things as we said more and more you know end clients that we are targeting more and more small packs we are doing already we are 1:00:28 1 hour, 28 seconds building certain efficiencies so that efficiencies will stay it's already there in that uh a bit per kilo that we got last couple of quarters. So it's 1:00:36 1 hour, 36 seconds it's it's definitely going to increase and if you remember you know we probably have kind of advanced it a little bit because two quarters ago we were saying 1:00:44 1 hour, 44 seconds that when people ask that a bit of a kilo when will it increase and all that. 1:00:48 1 hour, 48 seconds We had been saying that you know uh because of the efforts that we are taking in terms of changing the product mix going to the end customers doing 1:00:56 1 hour, 56 seconds more small pack the new additional domestic volume all this will keep adding to the profile only thing is that we said that for a year or so don't 1:01:04 1 hour, 1 minute, 4 seconds expect too much of an increase but yes some of that increase has started to build in uh going forward put an exact number to this that whether this will 1:01:13 1 hour, 1 minute, 13 seconds increase becomes very difficult because sometimes you know these things add to the a bit per kilo But the proportion or let's say the product profile mix would 1:01:22 1 hour, 1 minute, 22 seconds also change. So that is very unpredictable. I cannot for sure say that my product mix profile will remain same or will improve in the future. And 1:01:31 1 hour, 1 minute, 31 seconds therefore we'll remain with this guidance of 15 20% a beta growth year on year. Whether it comes through only volume increase or it comes through 1:01:39 1 hour, 1 minute, 39 seconds proportion uh changes and all that uh that is something that we'll keep an eye on. But uh nothing more or less to add 1:01:47 1 hour, 1 minute, 47 seconds to this from here. But product side I think so your DC and SVC mix will remain you know right by whenever you reach to 1:01:55 1 hour, 1 minute, 55 seconds optimal level it will be stagnant on that you know the capacity numbers right now only I I I understand this small 1:02:02 1 hour, 2 minutes, 2 seconds pack and bulk proportion may change which you can't predict and anyways operating level fixed cost you know the company right so definitely you must be 1:02:11 1 hour, 2 minutes, 11 seconds knowing the per kg ballpark number can come over next two years no no so I'll tell you even the mix of SD and FD sometimes difficult to predict 1:02:19 1 hour, 2 minutes, 19 seconds Because right now let's say this quarter we had a very good uh FD mix and that's the reason you saw much better profile right now if you if you know in India 1:02:28 1 hour, 2 minutes, 28 seconds also we had increased 16,000 tons of SD and Vietnam also 16,000 tons of FD so if you see that our SD profiling is in fact 1:02:36 1 hour, 2 minutes, 36 seconds capacity profiling has been more than FD right so that also plays a role and therefore predictability becomes a little challenging here. 1:02:44 1 hour, 2 minutes, 44 seconds Okay, understood. And second question in terms of debt number I think loans right you said we will close by 1 1300 to 1400 1:02:52 1 hour, 2 minutes, 52 seconds crores by this year end right already first half if I look at the number I think 1500 to 1600 cr of gross debt and we are sitting on a cash of around 350 1:02:59 1 hour, 2 minutes, 59 seconds obo in the balance sheet right so we already have reached to a number of net number of around 1250 odd crores right uh so 1:03:06 1 hour, 3 minutes, 6 seconds you are not expecting any any improvement or dial in the second half yeah so it depends again that is what 1:03:14 1 hour, 3 minutes, 14 seconds CFO was mentioning will depend hand on the Vietnam crop how does the prices and all that pan out and therefore we don't want to be committed on saying that it will go down let us see how it happens 1:03:22 1 hour, 3 minutes, 22 seconds but yeah definitely it will not go up and this is the guidance we had given at the start of the year yes it has got advanced by a quarter or couple of 1:03:30 1 hour, 3 minutes, 30 seconds quarters but as of now let's maintain the guidance rather than uh you know being bullish on that because we'll want to wait for the uh Vietnam crop to come 1:03:39 1 hour, 3 minutes, 39 seconds in okay understood and last one um give me question hello sorry to But uh due to time con we need to close this corner. 1:03:48 1 hour, 3 minutes, 48 seconds Yeah sure. Just last booking grouping question if I may. Yeah I please go ahead ma'am. 1:03:55 1 hour, 3 minutes, 55 seconds Yeah just the number available for your sub your Vietnam and your south subsidiary which is number for first 1:04:03 1 hour, 4 minutes, 3 seconds half a and both separately I'll ask this thing to give some color but you'll get the number at the end of the year. Okay, sure. 1:04:14 1 hour, 4 minutes, 14 seconds We'll be able to give you some color. 1:04:17 1 hour, 4 minutes, 17 seconds Sure, sure, sir. Thanks, thanks and all the best. Okay, thanks Manish. 1:04:22 1 hour, 4 minutes, 22 seconds Thank you. Due to time constant, that was the last question. I would now like to hand the conference over to the management for closing comments. Over to you, sir. 1:04:31 1 hour, 4 minutes, 31 seconds Yeah, thank you everyone for joining the call and thank you Nirmal Bang and team to uh arrange this call. Uh we will look 1:04:38 1 hour, 4 minutes, 38 seconds to meet you all again uh in the next quarter. Uh thank you everyone on behalf of Nmarbang Institutional 1:04:46 1 hour, 4 minutes, 46 seconds Equities. That concludes this conference. Thank you for joining us and you may not disconnect your lines.