CCL Products (India) Limited — Q3 FY26

CCL Products (India) Ltd Q3 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=4LVsmznzJL0 Published: 3 months ago

0:01 1 second Ladies and gentlemen, good day and welcome to CCL Products India Limited Q3 FY26 earnings call hosted by Nirmal Bank Institutional Equities. 0:12 12 seconds As a reminder, all participant clients will be in the listenon mode and there will be an opportunity for you to ask questions after the presentation 0:20 20 seconds concludes. Should you need assistance during the conference call, please signal an operator by pressing star then 0:28 28 seconds zero on your touchstone phone. Please note that this conference is being recorded. Anna hand the conference over to Mr. Deepak Saha from Nirmal Bank 0:37 37 seconds institutional equities. Thank you and over to you sir. Thank you Vitra. Good morning everyone. 0:45 45 seconds On behalf of Neimal Institution, I welcome you all to the three QFI26 call of CCL products. The management is represented by Mr. Chalas Susant MD, Mr. 0:55 55 seconds Provinury, CEO, Mr. B. Moan Krishna, ED, uh, Mr. Chhattani AF Raju, CFO and Miss 1:03 1 minute, 3 seconds Sidi Rasari, CS of the company. I'll now hand over to the management for the opening remarks which will be followed by Q&A. hand over to I'll hand over the 1:12 1 minute, 12 seconds call to Deepak. Hello. 1:17 1 minute, 17 seconds Yeah, Deepak even our chairman Rajan Prasad Sir is also on the call. 1:23 1 minute, 23 seconds Okay. So, we also have Mr. Rajendra Chella with us on the call and I'll request Mr. Pravin sir uh to start the 1:31 1 minute, 31 seconds call and give his opening remark. Thank you. 1:37 1 minute, 37 seconds Yeah. Uh thank you Deepak and thank you Nulang for arranging this uh call. Uh good morning everyone. I welcome you all to the third conference call of FY 2526. 1:50 1 minute, 50 seconds And now I'll give you a brief overview of the uh company's performance of the third quarter and also the 9 months uh 1:57 1 minute, 57 seconds period gone by. Uh as far as the group performance is concerned, the group has achieved a turnover of rupees 1053 2:05 2 minutes, 5 seconds crores for the third quarter of 2526 as compared to rupees 761 crores for the corresponding quarter of the previous 2:13 2 minutes, 13 seconds year achieving a growth of 38%. The AITA stands at rupees 187.56 crores as 2:20 2 minutes, 20 seconds against 127.22 crores which is a growth of 47% while PBT is rupees 116.27 27 2:28 2 minutes, 28 seconds crores growing at 62% and the net profit stands at rupees 100.26 crores with a growth of 59%. 2:36 2 minutes, 36 seconds As far as the 9 months figures are concerned, the group has achieved a turnover of rupes 3239.41 crores for the 9 month period as 2:44 2 minutes, 44 seconds compared to rupees 2274.54 crores for the corresponding 9 months period achieving a growth of 42%. The 2:52 2 minutes, 52 seconds AITA stands at rupes 547.6 6 crores as against 396.46 crores which is a growth of 38% while 3:00 3 minutes PBT is rupees 337.55 crores growing at 37% and the net profit stands at rupees 273.57 crores with a growth of 31%. 3:11 3 minutes, 11 seconds The domestic market continues its growth momentum with a gross sales of approximately 180 crores for the third quarter and approximately 480 crores for 3:20 3 minutes, 20 seconds the 9 months period. Out of this the branded sales contribute close to 120 course for the quarter and around 330 3:26 3 minutes, 26 seconds course for the 9 months period. Uh as far as the green we have been speaking about this intermittently but the green coffee prices as far as they are 3:35 3 minutes, 35 seconds concerned they remain in the range of 3,600 to 4,000 levels. We'll have to wait and watch uh you know postad told 3:43 3 minutes, 43 seconds this before as well how post holidays how things pan out and that will determine the range of green coffee prices going forward. Uh additionally 3:52 3 minutes, 52 seconds the company has declared an interim dividend of rupees 2.75 per equity share for rupees 2526. 3:59 3 minutes, 59 seconds Uh that is a brief update from our side. 4:02 4 minutes, 2 seconds I would now open the floor for questions. Thank you. Thank you very much. 4:10 4 minutes, 10 seconds We will now begin the question and answer session. Anyone who wishes to ask a question may press star N1 on the 4:17 4 minutes, 17 seconds touchstone telephone. If you wish to remove yourself from the question cube, you may press star and two. Participants 4:24 4 minutes, 24 seconds are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question Q assembles. 4:57 4 minutes, 57 seconds The first question is from the line of Shirish Paresi from Motila Losal. Please go ahead. [clears throat] 5:08 5 minutes, 8 seconds Yeah. Hi Pravin. Uh Susan, good morning. 5:11 5 minutes, 11 seconds Thank you for the opportunity. Pravin if you can give the outlook on the coffee prices because the new crop has just come in. Uh so I think what are the 5:20 5 minutes, 20 seconds pressure which we see at this time and my related question is that in the quarter of 38 and a half% uh revenue 5:28 5 minutes, 28 seconds growth what is the volume momentum we would have and maybe if number you can share. Yeah. Uh thanks Siri for the question. 5:36 5 minutes, 36 seconds uh as I told you you know the green coffee prices the outlook as of now uh looks much better than what it was an 5:43 5 minutes, 43 seconds year ago. If you remember a year ago this quarter was a a most tough quarter in terms of prices that it where it had 5:50 5 minutes, 50 seconds surged at the maximum levels. Uh and uh but however this uh uh this quarter things are looking far more stable than 5:58 5 minutes, 58 seconds the last uh year. But having said so, we will still in a little wait and watch period. Uh considering that you know Vietnam goes for T holidays and there is 6:07 6 minutes, 7 seconds a little bit of a uh you know selling off tendency before the T holidays. So prices are at uh you know softer levels. 6:15 6 minutes, 15 seconds Uh but the real you know test would be after the T holidays. If the uh you know farmers uh decide to hold on to the 6:23 6 minutes, 23 seconds stocks then we could see some more volatility coming in some more price increases coming in. Uh but as of now things look uh you know the only uh 6:31 6 minutes, 31 seconds guidance that I would give is that it looks far more stable. Uh the Brazil news is is good as of now. Uh the broth 6:38 6 minutes, 38 seconds looks good unless until there is some other bad news coming in. I think going forward things are looking much much better than what it was an year ago. So 6:47 6 minutes, 47 seconds that's on the green coffee uh prices. uh as far as the uh volume trajectory is concerned sir the out of this 38% the 6:56 6 minutes, 56 seconds volume is close to you know 20% or so there is another 18 to 20% of value growth that we got for this quarter and therefore the value growth was at 38%. 7:07 7 minutes, 7 seconds So just to follow up with the volume uh which is which is going to pick up and that's my understanding will this price 7:17 7 minutes, 17 seconds stability will come down and therefore to follow is the customer is now giving you a steady order or there is also a 7:24 7 minutes, 24 seconds wait and watch mode and second how [clears throat] much price increase reduction uh on the account of of all 7:31 7 minutes, 31 seconds this situation now panning out we will have to take or the price will remain elevated for some Uh so two two things we have always 7:40 7 minutes, 40 seconds maintained that it's actually not right to look at the price growth because that is determined on the green coffee prices 7:47 7 minutes, 47 seconds considering we do costless model. So the real you know uh marer would be to see the volume growth and the actor growth 7:55 7 minutes, 55 seconds and that as we have always maintained that the guidance is remain stable there is no uh fluctuation there. So really we are not so bothered around the prices 8:03 8 minutes, 3 seconds that even if the prices drop that's okay because uh that's not what we are you know guiding the market or we are 8:10 8 minutes, 10 seconds looking at as a as a parameter. So that so the guidance uh you know stays from our side that keep looking at the volume growths and the growths from our side. 8:20 8 minutes, 20 seconds Okay. Just last question uh with the stability in the uh US tariff and other thing does that customer which was 8:28 8 minutes, 28 seconds holding the uh inventory uh or maybe they were lower inventory uh is that reflected in the month of January. So 8:36 8 minutes, 36 seconds there is some spillover which would have happened in the quarter 4. Is that the understanding correct? 8:41 8 minutes, 41 seconds Not really you know uh I don't think so people have been holding finished goods inventory across the globe. Uh yes in 8:49 8 minutes, 49 seconds green coffee uh there there are speculative holdings that happen with the green coffee farmers and the aggregators but I don't think so this 8:57 8 minutes, 57 seconds tariff impact is going to impact much of the trade and especially for for us because we had good flexibility to 9:04 9 minutes, 4 seconds supply from Vietnam so it did not affect us. So even if the lowering of tariff also is not going to help us or you know ad it did not adversely help us uh you 9:13 9 minutes, 13 seconds know adversely affect us two three quarters ago it's not going to you know give us undue advantage now also. So our position remains stable as it was before uh going forward as well. 9:24 9 minutes, 24 seconds Okay. 9:25 9 minutes, 25 seconds And the customers are you know considering the green coffee prices are now you know the more stable they are they are more you know assured they are. 9:32 9 minutes, 32 seconds So the long-term contracts obviously start coming in and this is evident in our volume growth also. If you see last year when the prices were so choppy our 9:40 9 minutes, 40 seconds volume growths were in the range of 10 to 15% which goes to now 15 to 20% considering long-term contracts have started to seep in the confidence 9:49 9 minutes, 49 seconds started to seep in amongst customer that the prices are much more stable than what it used to be last year. So I was just asking thank you uh prair but I was 9:57 9 minutes, 57 seconds just asking the priceability is there expectation that quarter 4 volume will be much more than 20% what you pay about this quarter 10:05 10 minutes, 5 seconds no no not really not really see quarter four we have already you know uh for the next subsequent quarters our contracts 10:13 10 minutes, 13 seconds are almost done we are kind of we know how it will be so there won't be any you know undue advantage that we'll get on 10:22 10 minutes, 22 seconds in Okay. Yeah. Thank you and all the best. 10:30 10 minutes, 30 seconds This is Rajendar. Yes sir. 10:34 10 minutes, 34 seconds Most important I always maintain we maintain CCL. It's a year on year company. Don't look at quarter to 10:42 10 minutes, 42 seconds quarter history sir. 10:48 10 minutes, 48 seconds So there is nothing you know we have built the capacity slowly it will come. 10:53 10 minutes, 53 seconds And you know everything falls in place you know they will not nobody buys just like that and keep stuck especially in a 11:02 11 minutes, 2 seconds volatile market like green coffee what exactly is happening nobody knows nobody can predict so what as far as CCL is 11:11 11 minutes, 11 seconds concerned we always look for long-term stable business 11:17 11 minutes, 17 seconds so there is no issue at all okay all of you should only to PCL on a year-to-year basis. 11:26 11 minutes, 26 seconds Okay sir. 11:27 11 minutes, 27 seconds Okay. Just like just now explained what we have done in the domestic also slowly know it [clears throat] will take 11:34 11 minutes, 34 seconds little time doesn't matter but we are very much there. Okay sir. Thank you. 11:40 11 minutes, 40 seconds Thank you. 11:45 11 minutes, 45 seconds Thank you. The next question is from the line of Vive Ganguli from TCG AMC. Please go ahead. 11:53 11 minutes, 53 seconds Uh thank you. I just wanted uh what would be the debt level uh as of the quarter end and if you can give the debt 12:01 12 minutes, 1 second level for the corresponding period and also the interest cost rate of interest. 12:07 12 minutes, 7 seconds Uh yes. Uh uh we continue to channelize our efforts to deliver the balance sheet. There is a subtle shift in our finance strategy towards a more cash 12:15 12 minutes, 15 seconds flow oriented and working capital oriented approach which is actually helping us in terms of reducing the debt. The gross debt which used to be 12:23 12 minutes, 23 seconds around 2,000 crores a year ago has come down to,448 crores as 31st December 25. This is the 12:30 12 minutes, 30 seconds gross debt net debt would be around,248 crores. 12:35 12 minutes, 35 seconds Thank you. and the interest uh interest rate would be around 7% on an average across across the board and our guidance 12:43 12 minutes, 43 seconds was 2,250 crores for the end of uh as at 31st March 26 we have given a guidance 12:50 12 minutes, 50 seconds of,250 crores we can see we are almost a quarter ahead of the guidance but we'll stick to that guidance 12:56 12 minutes, 56 seconds right thank you that's all from my so one small aspect is basically in spite of the significant increase in the 13:05 13 minutes, 5 seconds volumes the debt has actually come down with the increase in volumes the working capital should have ideally gone up but we have actually bought it in the opposite direction 13:13 13 minutes, 13 seconds right yeah very credible thank you 13:21 13 minutes, 21 seconds thank you the next question is from the line of Kesha Zaviri from MK investment manager please go ahead 13:29 13 minutes, 29 seconds yeah hi uh thank you very much for the opportunity uh and uh really heartening to see uh Mr. Rajendra Prasad also being 13:37 13 minutes, 37 seconds on the call. Thank you so much sir for being there. Uh I have a question on our volume number uh and slightly longer 13:44 13 minutes, 44 seconds term uh once we hit let's say the full capacity uh which is to be about 77 13:51 13 minutes, 51 seconds 78,000 tons um when we do the you know the peak utilization there what would we 13:58 13 minutes, 58 seconds be as a market share of the outsourced instant coffee uh globally and uh once we hit that number then should one 14:07 14 minutes, 7 seconds assume that uh you suppose that the growth uh will be in line with what the market would grow at because we would be 14:15 14 minutes, 15 seconds fairly large market share that's the question one um and second question is on our uh retail business in India the 14:24 14 minutes, 24 seconds branded coffee u if you can give some u you know uh idea on how that business has progressed in third quarter this 14:30 14 minutes, 30 seconds year thank you uh so hi Kasha uh so uh on your first question uh you know when we are at peak 14:39 14 minutes, 39 seconds capacity utilization which is sometime away from now we probably will hit at 12 13% global market share of the outsource 14:46 14 minutes, 46 seconds market right now that is you know there are two ways to look at it one is to say that even 12% or 13% is there is still some way to grow so we could be growing 14:55 14 minutes, 55 seconds ahead of the market even there uh sorry Pravin um uh Pravin um just to interject here when you say 12 13% 15:03 15 minutes, 3 seconds this is the total market or the outsourced market outsourced market I'm just talking about the outsourced market because see we can't compete in the branded and the you 15:11 15 minutes, 11 seconds know captive consumption market. So that is I'm I'm segregating that. So this is only the outsourced market. We'll be 12 13%. Which means that we still have some 15:19 15 minutes, 19 seconds headroom to grow and we'll continue to kind of strive for higher growth than the market. Even the market you know we have seen that the instant coffee market 15:27 15 minutes, 27 seconds considering that the growing economies are growing the way they are and they are more likely to adapt to more instant coffee. We see a better growth of instant coffee than other coffees as 15:36 15 minutes, 36 seconds well. So I think both put together the market growth and our ability to still gain market shares we should be growing at a little higher levels. So that is 15:44 15 minutes, 44 seconds that is the long-term guidance but it is really long term. We'll see how things pan out going forward. Uh so that's from 15:51 15 minutes, 51 seconds your answer to your first question. The second question you talked about the branded retail sales. So as I told in my 15:58 15 minutes, 58 seconds opening uh remark that the branded retail sales continue to grow at a very good momentum. We are growing at almost 40 50% this year. uh and this year we 16:07 16 minutes, 7 seconds are likely to close at around 430 440 crores of only branded sales and the India sales will be around 350 crores and uh we have been gaining con constant 16:16 16 minutes, 16 seconds uh you know market share and expanding our distribution uh we are now distributed directly distributed in 1 lakh 40,000 outlets uh we are also 16:24 16 minutes, 24 seconds expanding our networks beyond south which is northeast and west markets on most of the e-commerce and the modern retail platforms we are very strong you 16:32 16 minutes, 32 seconds know number three and in some cases even number two player uh we are like kind of you know outgrown uh some of our more illustrious 16:40 16 minutes, 40 seconds competitors. So that is uh the uh you know little color on how the domestic market has fared and we'll continue to 16:47 16 minutes, 47 seconds grow aggressively in this market as well. 16:50 16 minutes, 50 seconds And just a clarification when you say 430 crores uh at MRP levels this would be what about 800 to,000 crores? 16:58 16 minutes, 58 seconds No no no we are not now at 50% discount. 17:01 17 minutes, 1 second So you may add 30% in any retail loan approximately considering the retail margin and the schemes you build 30 to 35% you can add at MRP levels. 17:10 17 minutes, 10 seconds Okay. And last question on the Thai on on the Vietnam um side we have capitalized uh large blocks uh in this 17:19 17 minutes, 19 seconds year. Uh in fact March last year as well as mid of this year but u if I look at the sales we are not uh seeing that kind 17:28 17 minutes, 28 seconds of growth which we are seeing in the gross block there. Um what could be the reason there? So we are at about you 17:35 17 minutes, 35 seconds know similar number for now about let's say two or three quarters. uh but the new capitalization should have added a topline growth uh in the third quarter also. 17:47 17 minutes, 47 seconds So I I I uh if you you know if I read your question right you're asking that are we getting commence rate growth in 17:54 17 minutes, 54 seconds terms of volumes in in NCL I would say yes we are because you know a lot of if you see even a margin profile improvement is because of the FD 18:02 18 minutes, 2 seconds capacity utilization which is now at much better levels than because last year there was no FD capacity in Vietnam. So we are getting growth from Vietnam as well. 18:11 18 minutes, 11 seconds But utilization even today would be in the new capitalization would be less than 50%. 18:18 18 minutes, 18 seconds No. Yeah. Less than 50%. But this you know considering that this is the first year of operation. Yeah. 18:23 18 minutes, 23 seconds Utilization of 25 30% is in fact a very very healthy utilization and that's what we had planned and that's what we are completely on target 18:32 18 minutes, 32 seconds on that. [snorts] Absolutely. And and again um you know prevenant team uh Mr. ation. Mr. Djin Prasad, fantastic show. Uh, thank you so much for these numbers. 18:43 18 minutes, 43 seconds Thank you. Thank you. 18:48 18 minutes, 48 seconds Thank you. The next question is from the line of Abhishek Mat from Group. Please go ahead. 18:56 18 minutes, 56 seconds Yes. Hi sir, thank you for the opportunity. Uh, my first question was on our EIDA per kg which is a key metric for us. uh if I'm not wrong it would 19:04 19 minutes, 4 seconds have been approaching about rupees 140 for the quarter and you can correct me if that's not accurate but the question here is that you know now with with 19:12 19 minutes, 12 seconds coffee prices uh probably on a downtrend on a yon y basis at least uh what should we expect in terms of the response on 19:19 19 minutes, 19 seconds the aida per kg um as we enter into a cycle of maybe declining coffee prices y uh would this metric uh respond 19:27 19 minutes, 27 seconds negatively would it come down or would it not be affected just trying to understand the uh the dynamics between these to the coffee price and the AIDA per kg here. 19:36 19 minutes, 36 seconds So I'll answer your second question first. Absolutely there will be no impact on because you know a lot of people ask this questions. We don't you 19:44 19 minutes, 44 seconds know speculate on coffee prices. It's a costless model very uh sound in terms of how we build prices. So even if the 19:52 19 minutes, 52 seconds coffee prices come down our per kiloa will remain intact remain intact. So there is no impact there. Now coming to your first question. Yes you're right. 20:00 20 minutes We now improved our AITA per kilo. It's now at 135 140 levels and we'll continue to maintain try and continue to maintain 20:07 20 minutes, 7 seconds at these levels. You know as Mr. Prasad right now just said that don't look at quarterto quarter. There will be some variations. Uh you know a lot goes in a 20:16 20 minutes, 16 seconds per kilo what is the product miss? What is the type of SKU you are selling? 20:21 20 minutes, 21 seconds Large packs small packs. A lot of things come into play freeze-dried versus dried. So uh long-term guidance has been 20:28 20 minutes, 28 seconds that you know we'll keep improving but 135 140 levels we have achieved and we'll try and maintain these levels going forward as well and of course there'll be quarterly variations don't 20:37 20 minutes, 37 seconds look at quarters maintain the long-term uh view on our AIA sure great sir uh second question sir on 20:45 20 minutes, 45 seconds uh just wanted to understand if there is uh any contribution or impact from the uh foreign exchange uh changes um so 20:53 20 minutes, 53 seconds obviously part of our business would be naturally hedged but even so if you can talk about whether we are seeing any impact of FX changes on our business and 21:02 21 minutes, 2 seconds if you can talk about any other kind of hedging that we follow uh uh we are we have a natural hedge 21:11 21 minutes, 11 seconds sort of thing most of our imports most of our raw material procurement happens only from most of our imports most of 21:18 21 minutes, 18 seconds our procurement is only through imports and uh since you have exports and you have imports it is supposed to get naturally hedged 21:25 21 minutes, 25 seconds Having said that when rupee depreciates you will have little bit of exchange impact uh because we are net exporter and we have little bit of impact in the 21:34 21 minutes, 34 seconds sense that uh there is an exchange which will be there in the books right but this is not material to call 21:41 21 minutes, 41 seconds out. So that's not material enough because the thing is that we are naturally hedged. We have imports, we have exports which will automatically negate the extreme risk. 21:52 21 minutes, 52 seconds Understood. And just one final quick one if I can squeeze in on the India branded business. [clears throat] Our operating margins would be in the range of 5 to 8% 22:00 22 minutes or any other range that you want to specify. 22:01 22 minutes, 1 second Yeah. Yeah. Yeah. Yeah. That is there and we keep loying that to the business so that we can grow this business. This business has just started to you know uh 22:09 22 minutes, 9 seconds kind of having green shoots and it is important for us to keep investing into the business. So which we'll keep doing for the long periods of and that is the guidance we have given that we'll maintain at these levels. 22:19 22 minutes, 19 seconds Yeah. So is it is it uh if you can give a specific number between 5 to 8 or uh any specific number stay with this number because we don't 22:26 22 minutes, 26 seconds you know kind of uh granularly kind of publish numbers. So let us stay with that kind and it's not a very broad margin. 5 to 8% to my mind is quite a 22:36 22 minutes, 36 seconds you know decent uh you know spectrum that we are giving. 22:41 22 minutes, 41 seconds Sure sir. Thank you for the responses and all the best. Thanks. Thank you. Thank you Mr. 22:48 22 minutes, 48 seconds Thank you. The next question is from the line of Lokesh Manik from Balum Capital. Please go ahead. 22:55 22 minutes, 55 seconds Yes. Hi good morning to the team. Uh uh heartening to see the chairman from the on this call today. Sorry to interrupt Mr. Manik. Uh we are unable to hear you. 23:06 23 minutes, 6 seconds Can you please speak a little louder? Yeah. Is this better now? Yeah, please go ahead. 23:12 23 minutes, 12 seconds Yes. Hi, good morning to the team. Uh heartening to see the chairman sir on the call today. Uh Provin, my question is more from a uh portfolio 23:21 23 minutes, 21 seconds diversification perspective. Uh so how am I looking at it is core coffee business and then you have the B2C uh 23:28 23 minutes, 28 seconds which has grown fantastically uh domestic market and then you have also in the UK market acquired a couple of brands uh and then the third piece is 23:37 23 minutes, 37 seconds the new products uh that we keep uh you know experimenting with we had uh uh cold brew coffee earlier we are now 23:44 23 minutes, 44 seconds doing plant-based uh uh snacks uh so on these three areas if you can give a sense how the portfolio is diversified 23:53 23 minutes, 53 seconds pride or contribution from these segments can help us you know just understand how the diversification is progressing. 23:59 23 minutes, 59 seconds Uh absolutely Romesh let me give you some color you know that and we have been speaking this for long that the whole foundation of the company is based 24:07 24 minutes, 7 seconds on innovation which means that we come constantly offer new products to our client understanding the market needs understanding what the client needs and 24:15 24 minutes, 15 seconds that's the reason uh we have been showing these kind of performance over the period of s so many years that every time we have been a little ahead of the 24:23 24 minutes, 23 seconds curve in terms of providing the products we were the first ones to set up a free light grant in India which when nobody thought of it. Uh which clearly you know 24:31 24 minutes, 31 seconds demonstrates our pension to do newer products for for our customers and that also helps us to diversify our portfolio 24:38 24 minutes, 38 seconds and not be dependent on one product and that's the reason we have been able to get a consistent uh growth over a period 24:46 24 minutes, 46 seconds of time. uh we also diversified into you know creating our own brands which also has done well for the for a period of 24:53 24 minutes, 53 seconds now last six seven years which is also part of our diversification process because it helps us to kind of you know be a complete company in terms of our 25:01 25 minutes, 1 second coffee not only supplying good products and diversified products for our B2B consumers but also to our B2C consumers 25:08 25 minutes, 8 seconds even in B2C if you see our product range has been very really vast in fact when we started a lot of people had questioned us that you know as a start a 25:16 25 minutes, 16 seconds company which is only starting, why do you have so many ranges of coffee? Our very simple answer was that we, you know, we understand the consumer 25:24 25 minutes, 24 seconds palette. We understand what consumers want. For every region, we developed a new blend. For every type of consumers, we developed a new brand and that's the 25:32 25 minutes, 32 seconds reason we ended up creating a very good portfolio even in the branded segment in the domestic market. Uh the EU acquisition continues to grow. We are 25:40 25 minutes, 40 seconds handsomely going there. the business you know it was it it is so tough to uh create and grow a brand in in in these kind of countries which are very very 25:48 25 minutes, 48 seconds brand conscious right so there also we have been doing uh extremely well as far as the question of plant-based meat is 25:56 25 minutes, 56 seconds concerned location that category itself if you see around you has kind of uh you know uh has not done well in fact the 26:03 26 minutes, 3 seconds whole category is almost on a shutdown basis and we quickly took a call because we didn't want to you know further our losses in that category So we quickly 26:12 26 minutes, 12 seconds cut down on the losses and we stopped that category because we didn't see the category the way it was evolving is going to evolve well in the future. Uh 26:20 26 minutes, 20 seconds so we are now rethinking that is protein a good category and how we can participate in that category and while we are doing that our thought of 26:28 26 minutes, 28 seconds diversification doesn't end here. We said that can we can we see beyond coffee and that's the reason we started experimenting with some traditional 26:35 26 minutes, 35 seconds snacks under the brand name Malhuri which goes with traditional ethos of the country and we have started to launch very you know micro launch these 26:44 26 minutes, 44 seconds products in some of the outlets in Hyderabad to see how the response is if we get good responses and we get the product mix right the pricing mix right 26:52 26 minutes, 52 seconds then we will expand this further so that's uh that's you know in all with the base being innovation a color on how diversific ification has been the key 27:01 27 minutes, 1 second for the company in any segment that we operate. So that probably you know completes your answer to your question. 27:07 27 minutes, 7 seconds If you have anything uh in more detail to ask just one more on the uh on the success of twoin one and threein ones uh 27:16 27 minutes, 16 seconds in Europe especially they were quite uh you know uh well known and famous India also we tried to introduce. So on both 27:24 27 minutes, 24 seconds these fronts how are we doing on those product portfolios? 27:27 27 minutes, 27 seconds Yeah. So look just a just a small correction. It was not very popular in Europe. It was very popular in Southeast Asia. 27:34 27 minutes, 34 seconds Yeah. It was very popular in markets like Vietnam, Singapore, Malaysia, Indonesia. And you know the prime reason for this was that there was always a shortage of milk in these countries. 27:44 27 minutes, 44 seconds Yeah. So for them 3 in1 and 2 in1 became very popular choice and they kind of you know grew up on such kind of coffee. Now 27:52 27 minutes, 52 seconds coming to uh you know India and European markets the these categories are doing well because [clears throat] it's not as big as what Southeast Asia is because 28:01 28 minutes, 1 second you know fundamentally these countries the these sorry these countries are you know milk surplus countries they have enough of milk so 3 in1 2 in1 will take 28:10 28 minutes, 10 seconds its own time to develop but in certain segments like let's say the student segment uh the you know uh single office going segment these these segments it is 28:19 28 minutes, 19 seconds catching up and growing uh Europe I we are yet to see massive growths also in Europe supplying of green one is a 28:28 28 minutes, 28 seconds challenge because they don't allow dairy from any other country so we have to look at other options so as and when things evolve we'll keep you updated but 28:36 28 minutes, 36 seconds that's the update on this so just last one just to add on this if you see the growth in the future coming for coffee mainly for emerging markets 28:44 28 minutes, 44 seconds and mainly Southeast Asia uh then 3 in1 and 2 in1's would be a good bet then that should I should I take this forward 28:51 28 minutes, 51 seconds No, it's already a good bet. We not we not you know saying that it's not a good bet. But you know all these countries, Southeast Asian countries, they have 28:58 28 minutes, 58 seconds they're very strong brands. In fact, a lot of brands we supply coffee to. So we are already in a way participating in that growth that is happening in two in 29:06 29 minutes, 6 seconds one and three in one because a lot of brands we are the suppliers of coffee. 29:11 29 minutes, 11 seconds Now the only question that remains is that do we participate in these markets with our own brands that we'll check and 29:17 29 minutes, 17 seconds see that is it is it fruitful to you know operate in already crowded market which is unless and until we have a product innovation some differentiator 29:26 29 minutes, 26 seconds we would not like just to kind of you know go ahead and uh participate in the market. So we'll we'll see how things pan out in these markets. Right now our 29:34 29 minutes, 34 seconds focus is in India and we'll start seeding some of our brands in some of the other markets but that's been the focus right now. Great. Great. That's it from my side. 29:43 29 minutes, 43 seconds Thank you so much. 29:47 29 minutes, 47 seconds Thank you. The next question is from the line of Krishal from Asian Broking. 29:53 29 minutes, 53 seconds Please go ahead Kishal. Your line is unmuted. Please go ahead. 30:05 30 minutes, 5 seconds Hello. Yes, you are audible. Please go ahead. 30:10 30 minutes, 10 seconds Yeah, I just uh wanted to know new product segments the company's exploring like uh any uh new segments the 30:20 30 minutes, 20 seconds company's planning to get into apart from you asking about sorry just to interject are you asking about new segments within 30:28 30 minutes, 28 seconds coffee or new segments outside coffee overall business overall business yeah so okay uh let me 30:36 30 minutes, 36 seconds answer you in two phases one is within coffee also I just now spoke about the new uh you know types of coffee that we have been experimenting with with. I 30:44 30 minutes, 44 seconds told you about how we were the first ones to introduce or get into freeze-dried coffee in India. Then you know things like instant cold brew which 30:52 30 minutes, 52 seconds was like unheard of phenomena. We developed it and that is going handsomely for us. Uh we are also now developing specialtity coffee which was 30:59 30 minutes, 59 seconds only you know restricted to roast and ground and green beans. Oh sorry roasted beans. we are now kind of we are experimenting that can we bring these 31:07 31 minutes, 7 seconds concepts into instant coffee. So these are some of the innovations that we are doing uh the the micrograms and things like that. So various innovations we are 31:16 31 minutes, 16 seconds doing depending on which markets we want to operate in and which clients we are you know supplying to. So lots of innovation on B2B. On the B2C front as I 31:25 31 minutes, 25 seconds just explained we are also seeding uh or let's say experimenting with you know some of the categories which are outside coffee. Uh can we look at things like 31:34 31 minutes, 34 seconds snacks which go well with coffee and helps us with our distribution and kind of you know [clears throat] helps us penetrate uh the market better 31:42 31 minutes, 42 seconds in the FMCG segment. So these are some of the experience already on the vending side we are supplying tea to a lot of our clients because the vending business 31:51 31 minutes, 51 seconds is not just about coffee it is about coffee and tea as well. So these are the segments that we will be experimenting 31:58 31 minutes, 58 seconds seeding the seeds. You know we are not uh we have never been one company wherein you know we uh suddenly kind of you know do a market bombing we seed the 32:07 32 minutes, 7 seconds markets we see how things are uh you know how responses are coming in do some product changes as per the market close go step by step and that's how we will 32:16 32 minutes, 16 seconds grow the market. So that's uh that's what uh we will continue to do in the future. So these are some of the categories that we will uh try and experiment with. 32:27 32 minutes, 27 seconds Thank you sir. 32:32 32 minutes, 32 seconds Thank you. The next question is from the line of Deepak from Sundaram Mutual Fund. Please go ahead. 32:40 32 minutes, 40 seconds Yeah. Thank you for the opportunity. I'm audible. Yeah. Yeah. You're audible. 32:44 32 minutes, 44 seconds Yeah. [clears throat] Hi sir. So my first question is on small pack. Could you please highlight it? what is the small pack capacity we have right now 32:52 32 minutes, 52 seconds and what is the utilization level and is there any expansion plan let's say in the next 12 months for that uh so uh the expansion plan deep will 33:01 33 minutes, 1 second depend on uh how the future orders are so let's say for example let me break it down uh into you know let's say small packs within small packs also you have 33:10 33 minutes, 10 seconds different types of packaging yeah right from sticks and sachets to pouches to you know jh glass jars tins so All these 33:19 33 minutes, 19 seconds kinds of packing are there. So let's take an example of small packs. So we have seen a lot of you know demand for the real small pouches because these are 33:26 33 minutes, 26 seconds unit price pouches and especially in economies like the growing economies. 33:30 33 minutes, 30 seconds The demand for these kind of uh small packs or lups as you popularly call them is very high and it is growing. So 33:37 33 minutes, 37 seconds markets like Africa, India, they're responding very very well to the small packs. So definitely we are going to expand this capacity. Right now if I 33:45 33 minutes, 45 seconds aggregate all the small packs our capacity is 12 to 14,000 metric tons of small packs we can do already we are running out of capacity in the small 33:54 33 minutes, 54 seconds units like six and the baches so we are going to expand this in the near future uh for glass jars and cans we have 34:02 34 minutes, 2 seconds enough of capacity as of now but if we see that we are nearing full capacity we'll expand that also uh last time also 34:09 34 minutes, 9 seconds we had briefed that the unit our units are constructed in such a manner that uh if you can kind of you know do modular 34:16 34 minutes, 16 seconds expansion as well. So as of now uh the the small pack facility is such that by just adding machines uh we can add the 34:24 34 minutes, 24 seconds capacities for the small pack. So that's where it is. So uh again to reiterate sticks and pouches we are almost running 34:33 34 minutes, 33 seconds at full capacity and in glass jars and cans we are at 50 to 60% of capacity utilization. So there is some way to go 34:40 34 minutes, 40 seconds and this we are going to expand in near future. 34:44 34 minutes, 44 seconds Okay, thank you. And the second question is on volume front. So if I look at our 9 months volume growth, we are almost 34:50 34 minutes, 50 seconds doing 18 to 20% uh volume growth. So in Q4, is this kind of volume growth sustainable for us? I'm asking because I 34:58 34 minutes, 58 seconds guess relatively the base is higher versus uh last Q4 since that was a quarter where we also had double digit 35:06 35 minutes, 6 seconds volume growth. And to continue on this you know would it be fair to assume that you know on a higher base of FI26 at 35:13 35 minutes, 13 seconds least 11 to 12% volume growth is possible for us let's say in 27 and 28 definitely u u you know this quarter uh 35:22 35 minutes, 22 seconds our volume growth should be uh you know as good as what we have seen in the first nine months. Yes you're right last year the same quarter was a very high 35:30 35 minutes, 30 seconds quarter for us. So we had also expected that the you know growths at least while we'll keep the momentum the growth will be a little less but we are confident 35:39 35 minutes, 39 seconds that on a yearly basis we will be growing at a you know 18 20% uh volume growth. Uh so that remains intact. Next 35:47 35 minutes, 47 seconds year we will see because a lot of things are evolving uh as I told in my opening call post state holidays we'll see how the prices uh kind of you know pan out. 35:57 35 minutes, 57 seconds If they remain stable, we are likely to get more long-term contracts and that will help us assess our volume growths better. So maybe by end of next quarter, 36:05 36 minutes, 5 seconds we'll be able to give you a better guidance for next year. Okay. And there any particular areas where we are 36:12 36 minutes, 12 seconds penetrating further. I just wanted to understand that since instant coffee market itself is growing at a lower single digit and we are growing at a 36:20 36 minutes, 20 seconds higher double digit. then where exactly we are gaining more wallet share and how much uh let's say client additions are 36:27 36 minutes, 27 seconds we factoring in that for those kind of volume growth uh so you know client addition I can't you know quantify it but it's a it's an 36:35 36 minutes, 35 seconds ongoing process see every day we add clients every day there'll be some clients also go away from us it's a leaking bucket it's not that everybody 36:42 36 minutes, 42 seconds stays with us and nobody will come to us so that's not the case every time we are adding new clients yes our ability to add new clients because of the product 36:51 36 minutes, 51 seconds portfolio our servicing levels our cost structures is better and that is the reason we have been growing a little ahead of the market right if the market 36:59 36 minutes, 59 seconds you're right the market is low single digits that's the growth but we have been maintaining better growth now where are these growths coming from I think this growth is well panned out we are 37:07 37 minutes, 7 seconds getting getting growth from all geographies we are getting very good growth from you know Africa we're getting good growth from the the American markets as well as the European 37:16 37 minutes, 16 seconds markets Asia is growing for us our brand is growing for us uh very handsomely. So we are getting very allrounded growth and it is not skewed towards a geography 37:26 37 minutes, 26 seconds or a client uh that is there. Even our client base is you know very well spread out. Uh we have already spoken about 37:33 37 minutes, 33 seconds this our top 20% of the client contribute only 40 to 50%. Which means that the diversification of our clients 37:40 37 minutes, 40 seconds is also very good. So so so yeah so that's the bottom line that the growth are coming from all quarters. 37:48 37 minutes, 48 seconds Very helpful. If I may squeeze in one more uh just on the gross debt part. So earlier sir highlighted that you know our gross debt has come down despite 37:57 37 minutes, 57 seconds such a high volume growth. Just wanted to understand sir how we are able to manage this. Is it because of change in sourcing mix or is it because of better 38:05 38 minutes, 5 seconds inventory management. Just wanted to understand what is going right for us in terms of working capital management. 38:13 38 minutes, 13 seconds It's all about working capital management bringing in operational efficiencies into the system. So if you bring down the DIO days obviously your 38:21 38 minutes, 21 seconds working capital get will get will get freed up right. So the same is the case with DSO if your realizations are faster right. So it obviously generates free 38:30 38 minutes, 30 seconds cash flow which in turn will be utilized to service the debt. So what we have been doing for the uh uh last few uh quarters is that we have been uh 38:39 38 minutes, 39 seconds approaching we approached the customers and then renegotiated the contracts saying that we'll reduce the credit periods and that has helped us in terms 38:47 38 minutes, 47 seconds of reducing the DSO days which in turn helped us reduce the debt also just to add to this you know one 38:56 38 minutes, 56 seconds would deny that the softening of coffee prices our ability to hold less of green coffee because in a higher rising coffee prices market you tend to hold more 39:04 39 minutes, 4 seconds inventories as well. So again it's not a single factor that is helping us it's a multiple of factors that is helping us to get to a better debt levels uh as we see today. 39:15 39 minutes, 15 seconds Very helpful sir and all the thank you. 39:21 39 minutes, 21 seconds Thank you. The next question is from the line of Deepak Saha from Bank institutional equity. Please go ahead. 39:29 39 minutes, 29 seconds Hi uh first of all congratulations on this great execution sir and uh really pleasure to see uh chairman sir on the 39:37 39 minutes, 37 seconds call. Uh so just one question provin first of all see I mean given the kind of a volume growth that we have seen and the working capital management that we 39:46 39 minutes, 46 seconds have done. So so earlier we had this sourcing uh issue uh given the geographical proximity from say Brazil 39:54 39 minutes, 54 seconds and our dependence on Brazil and Vietnam. uh now uh given the coffee prices have started coming down so what 40:01 40 minutes, 1 second would be the sourcing mix uh between the Brazil as far as green coffee is concerned uh on the Brazil side and Vietnam side. 40:09 40 minutes, 9 seconds So Deepak we never have a sourcing issue because see we are an export oriented unit. We have the flexibility to source 40:16 40 minutes, 16 seconds from Brazil, Africa, Vietnam. Yes, the the logistics time does increase when you import from Brazil. But having said 40:24 40 minutes, 24 seconds so, if you do your planning well in advance, we have that flexibility to import wherever we can from wherever we can. Now coming to the question where we 40:32 40 minutes, 32 seconds will you know do more sourcing from going forward. It will all depend on how prices pan out. Let's say if the prices you know stay stay very stable in 40:40 40 minutes, 40 seconds Vietnam. Definitely we would love to source from Vietnam considering we have a factory there and its proximity to India as well. But let's say Brazil crop 40:48 40 minutes, 48 seconds comes out good and there the prices soften. We also have the ability to source from there. So our sourcing will really also a lot also depends on what are the kind of client profile you have. 40:59 40 minutes, 59 seconds What is their demand? Uh what kind of sourcing or type of product they want. 41:04 41 minutes, 4 seconds So again multiple factors will come into play. The only thing that we would like to say is because considering the way we are structured we have a massive 41:13 41 minutes, 13 seconds flexibility and which helps us uh helps our business to grow. So that wouldn't be a challenge going forward to us is the only point that I would like to say. 41:23 41 minutes, 23 seconds Got it sir. Basically what I was uh trying to highlight the fact that G earlier when the prices were say on the elevated side and dependence on Brazil 41:31 41 minutes, 31 seconds would have because of the geographic proximity would have increased our average inventory holding period. right now given prices have come down we would 41:40 41 minutes, 40 seconds not have that problem now and which is also a reason we are seeing a better inventory management uh which is the the biggest yeah yeah that's all 41:48 41 minutes, 48 seconds that's what I added to's comment that even the coffee prices has helped us uh the price the fact that if Vietnam 41:55 41 minutes, 55 seconds softens we don't have to kind of you know hold much of stocks from the third thing is that you see in a in a market when it is growing no there is always a 42:04 42 minutes, 4 seconds tendency for small guys to falter also Because today you contracted let's say at 100 tomorrow the price at 120 he may falter also. So we would want to secure 42:12 42 minutes, 12 seconds that green buffy and put it out go down which increases your inventory. Yeah. So that also adds to the pressure of working capital. Now in a in a in a 42:21 42 minutes, 21 seconds inverted market as you say when it is going down you know it is more beneficial for that guy to hold the stocks for me than me holding the stock. 42:28 42 minutes, 28 seconds So definitely all of these factors are helping us and going forward if things remain stable it will further improve. 42:34 42 minutes, 34 seconds So even our debt position will further improve going forward. 42:40 42 minutes, 40 seconds Got it. That's really helpful. So second question is uh if I see 9 month uh this year I mean uh we have we have done as 42:47 42 minutes, 47 seconds you know earlier you mentioned say 18 20% kind of a volume growth and EITA for KG has also improved. I mean earlier our guidance was say 15 20% kind of an EIT 42:56 42 minutes, 56 seconds growth. We are at 9 month uh 38% kind of an EIA growth. Y why right now looking at next year even on decent volume 43:04 43 minutes, 4 seconds growth of in alignment with what we did last year or the the guidance that we gave uh earlier uh given our EITA per kg 43:12 43 minutes, 12 seconds is materially improving trajectory uh so will it be fair to assume that that 15 20% YITA growth guidance that we had 43:21 43 minutes, 21 seconds that remains very much intact not only intact see this year again as you have to see all year we already at 43:28 43 minutes, 28 seconds 30% So in fact we can you can take it from our side that the guidance gets revised for this year at approximately 43:36 43 minutes, 36 seconds you know 25% or so. Uh so that that we are very definite about. Now going forward next year as I told you give us 43:44 43 minutes, 44 seconds a couple of months time because a lot will depend on how the prices and uh coffee prices and all pan pan pan and how the contracts will evolve if the 43:53 43 minutes, 53 seconds contracts are going to be you know if the coffee prices remain soft the contracts will be long-term and our guidance of 15 20% will give an impact 44:00 44 minutes but we will wait and watch for one or two months to before giving a guidance for next year. 44:07 44 minutes, 7 seconds Got it. Got it. Got it. So incrementally we have that you know potential of say that 20% going to a little bit on the higher side. I mean depending upon how things pan out but that remains 44:15 44 minutes, 15 seconds fundamentally intact and that really helps deep last year when the coffee prices were very choppy. That is the reason we had broadened our guidance to 44:23 44 minutes, 23 seconds 10 to 20%. Uh but you know things panned out well for us we will continue to strive for it but if you ask me a guidance you know I will wait for a 44:31 44 minutes, 31 seconds month or two for the coffee prices to come in then we will give a guidance for next year as well. Yeah. 44:38 44 minutes, 38 seconds No, fair enough. Fair enough. Sir coming to the B2C side. Uh so now now as we're targeting say 430 kind of a number this 44:47 44 minutes, 47 seconds year. Uh and what would be the number for 9 month so far that we have done. So 330 we have already done. We're going to add another 100 110 in the last quarter. 44:57 44 minutes, 57 seconds Uh of course these are you know primary numbers. We'll see the last month because last month we drive more of collection and less of you know pushing 45:04 45 minutes, 4 seconds into the market. So that will determine but yeah 100 110 is definitely so that's not a problem at all. 45:11 45 minutes, 11 seconds Got it. So on this trade just uh last two questions sir. One is uh the kind of marketing measurements we have seen on the western side of the country is is is 45:20 45 minutes, 20 seconds quite meaningful and uh earlier we had quite of a dominance in southern market especially Andra and Telangana we you 45:28 45 minutes, 28 seconds know uh increased our market share and almost uh replaced the number two player. So now what's the strategy and 45:35 45 minutes, 35 seconds and more than that what's the feedback or market frismos you are getting from western side or other parts of the country because southern market we are 45:42 45 minutes, 42 seconds already doing good. Uh what do you think going ahead what would be the growth levers for the you know other parts of the country especially northern side and 45:51 45 minutes, 51 seconds western side of the country if you can slightly you know give some color on this. Uh so Deepak in spite of you know doing well in south we'll continue to 45:59 45 minutes, 59 seconds aggressively drive in south as well because some of the geographies we feel that we still can drive a lot of penetration espec especially markets 46:06 46 minutes, 6 seconds like Tamil Nadu and Karnataka we have gained very handsome shares. We started our activity 8 n months ago to drive more penetration in Tamil Nadu that has 46:14 46 minutes, 14 seconds reaped us very good benefits. We have gained good market share. The growth momentum has come out very good in these markets. So we will continue to drive penetration in these markets. In the 46:23 46 minutes, 23 seconds other markets, we have a very different strategy where we are saying that we will cream the distribution there. What it means is that we will continue to 46:30 46 minutes, 30 seconds drive very aggressively on e-commerce platform because that is not you know manpowered uh heavy and it now reaches 46:37 46 minutes, 37 seconds to all and sunundry in the in the northeast and west markets. Already in some of these platforms we are doubledigit market share. Yeah. Which is 46:45 46 minutes, 45 seconds very good news for us. And some of the activities that have we have taken in the in the northeast and west markets have already started to reap very good 46:53 46 minutes, 53 seconds uh results you know in in in platforms like blinkage and all that which are very very concentrated in the north Indian markets. We have already gained 47:01 47 minutes, 1 second [clears throat] very very handsome market shares as I already told you in most of these platforms we are doubledigit market share including Amazon. So these are the kind of 47:10 47 minutes, 10 seconds initiatives we will do in the non-south markets and continue to drive much more aggressively. Of course because of the lower grace they will grow at higher 47:17 47 minutes, 17 seconds levels and we will also do cream distribution which means that let's say in the top five to 10% of the outlets. 47:24 47 minutes, 24 seconds Thankfully coffee is not so well penetrated in rest of these markets. So what we'll do is we'll say that okay direct distribution in 5 to 10% of the 47:31 47 minutes, 31 seconds outlets which has a lot of heavy weighted distributions and continue to drive from through e-commerce and the uh other quick commerce. Even in modern retail we are doing extremely well. 47:41 47 minutes, 41 seconds Reliance we have crossed double digit market share which is very good news because you know Reliance again is very strong in all the parts of the country. 47:48 47 minutes, 48 seconds So there also we are gain so these are markers of the fact that the brand has started gaining traction some of these markets and some of the initiatives that 47:55 47 minutes, 55 seconds we have taken is giving us good results and we'll continue to do that. 48:01 48 minutes, 1 second Really heartening to see that the kind of response is there. I mean really great to say. Thank you. Last question to CFO sir. uh on the cash flow from 48:09 48 minutes, 9 seconds operations and free cash flow side given debt has come down and uh overall you know there's no meaningful K is going to 48:16 48 minutes, 16 seconds happen say in FI27 and subsequent year so what kind of and and and our working capital efficiencies have really kicked in right so congratulations on that part 48:25 48 minutes, 25 seconds so what kind of CFO and free cash flows that we're looking for FI27 and FI28 uh 48:32 48 minutes, 32 seconds just some color on that yeah thank you so probably it may be too premature for me to uh comment on that for the current 48:41 48 minutes, 41 seconds year we have generated close to on a TTM basis we have generated close to 700 crores of uh free cash flows right so uh 48:50 48 minutes, 50 seconds we continue the same momentum and probably now that we have higher operating profit and working capital efficiencies both will lead to higher 48:57 48 minutes, 57 seconds free cash flows so uh so we continue that and probably it may be slightly 49:04 49 minutes, 4 seconds ahead of 700 cr is what we Got it sir. Thank you. That's helpful. 49:13 49 minutes, 13 seconds Thank you. The next question is from the line of Samney from Hilo Capital. Please go ahead. 49:21 49 minutes, 21 seconds Um good morning. Thanks for the opportunity. So in Q3 what would be the blended utilization level? 49:30 49 minutes, 30 seconds So at a at an overall level we are around 65%. 65 to 70%. Yeah. 49:37 49 minutes, 37 seconds And so so we are at 6570 right now in Q3. Now could you just share some timeline now? We are going to could you 49:44 49 minutes, 44 seconds share a timeline on how we are going to reach like full capacity levels by what? 49:50 49 minutes, 50 seconds So do we see 65% in the next maintain 65% in next few quarters and when should we start seeing an uptake like could you 49:56 49 minutes, 56 seconds share some color on that? So you know uh let's say at an annual level next by the end of two years from now let's say we 50:04 50 minutes, 4 seconds are looking at an 85 90 kind of a capacity utilization and that's the time we'll see that going forward how do we want to you know build capacity which 50:13 50 minutes, 13 seconds areas do we build it ourselves get into strategic partnerships uh so all that will start happening after two years yes we'll put our thinking hats maybe after 50:22 50 minutes, 22 seconds one and a half years to see uh that uh what directions we can we we look forward to go But next year will be really critical. If let's say uh the 50:31 50 minutes, 31 seconds volume growth are maintained in a similar trajectory of 15 to 20%. Then you know we definitely will be very 50:38 50 minutes, 38 seconds close to 80 85% in two years and that's the time we'll start thinking about uh adding fresh capacities. 50:45 50 minutes, 45 seconds Okay. Thank you for that and that was really helpful. 50:53 50 minutes, 53 seconds Thank you ladies and gentlemen. If you'll take that as a last question for today. I now hand the conference over to the management for closing comments. 51:03 51 minutes, 3 seconds Uh I thank you all to uh uh for attending this uh conference and uh thank you Nul Bang for uh you know 51:12 51 minutes, 12 seconds arranging this conference. Uh we will look forward to meet all of you uh in the next quarter margin calls. I would 51:19 51 minutes, 19 seconds just like chairman to uh you know give a closing remark on the on the call. 51:26 51 minutes, 26 seconds [clears throat] 51:32 51 minutes, 32 seconds Thank you everybody. 51:35 51 minutes, 35 seconds Just have patience. That's all I can say. Everything will go as we had planned. Okay. Thank you Nirmala. 51:44 51 minutes, 44 seconds Thank you everybody. 51:46 51 minutes, 46 seconds We are always open to any kind of question. So there is no issue at all. Thank you. 51:55 51 minutes, 55 seconds Thank you very much sir. 51:58 51 minutes, 58 seconds On behalf of Nirmal Bank Institutional Equities, that concludes this conference. Thank you all for joining us today and you may now disconnect your line.