Dodla Dairy Limited — Q2 FY26

Dodla Dairy Ltd Q2 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=Ayyh16PM7aY Published: 6 months ago

0:01 1 second Ladies and gentlemen, good day and welcome to the Dola Daily Limited Q2 FY26 earnings conference call. This conference call may contain 0:10 10 seconds forward-looking statements about the company which are based on the beliefs, opinions and expectations of the company as on date of this call. These 0:18 18 seconds statements are not the guarantee of future performance and involve risk and uncertainties that are difficult to 0:25 25 seconds predict. As a reminder, all participants lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation 0:34 34 seconds concludes. Should you need assistance during this conference call, please signal an operator by pressing star 10 on your touchstone phone. I'm Amanda 0:42 42 seconds conference over to Mr. Dla, managing director of Dola Daily Limited. Thank you and over to you sir. 0:51 51 seconds Uh thank you very much. Uh good morning and seasons greetings to all the parts on behalf of BLA radio limited I extend 0:58 58 seconds a warm welcome to everyone joining us on our call today on this call I'm joined by my CEO Mr. BK ready CFO Mr. from 1:05 1 minute, 5 seconds Mudri Moan Raju and SGA are investor relation advisers. I hope everyone had an opportunity to go through the financial results and investor the 1:13 1 minute, 13 seconds presentation. This has been uploaded on the stock exchanges and our company website. We are happy to share that the acquisition of Osam was successfully 1:22 1 minute, 22 seconds completed by the end of July. The performance for this quarter reflects two months of contribution from newly acquired business. In the Q2 financial 1:31 1 minute, 31 seconds year 26, BLAD area delivered a good consolidated performance with revenues reaching uh rupees 1,019 1:40 1 minute, 40 seconds crores, 19 cr, 19 crores and a neat margin of 9.1% and a pack margin of 6.4%. 1:49 1 minute, 49 seconds This is the second consecutive quarter where we have crossed the,000 cr revenue mark despite a notable shift in the product mix as compared to Q2 FI25. 1:59 1 minute, 59 seconds In the previous year, bulk sales of S&P and butter amounted to rupees 165 crores for the quarter where in Q2 FY26 this 2:09 2 minutes, 9 seconds only at 28 crores. These bulk sales are strategic in nature in order to maintain a balance between demand and supply of liquid milk throughout the year and 2:18 2 minutes, 18 seconds manage the seasonal fluctuations on a like to-like basis. Our core business excluding Osam Dairy as well as the bulk 2:25 2 minutes, 25 seconds sales delivered a revenue growth of 13% year-on-year basis in the quarter. 2:31 2 minutes, 31 seconds During the quarter, we witnessed a robust volume growth in liquid milk sales. Higher contribution of WAP products exceeding bulk sales and rupees 2:39 2 minutes, 39 seconds 52.6 cr sales contribution from the newly acquired Osan for two months that is August and September. Collectively 2:48 2 minutes, 48 seconds all of these help foster the impact of reduction in bulk sales. As a result we have achieved a healthy gross profit 2:55 2 minutes, 55 seconds margin of 27.7% as against of 25.5% in Q2 FY25. 3:02 3 minutes, 2 seconds This margin improvement is despite the fact that OSAM business uh typically generates a relatively low margins. 3:09 3 minutes, 9 seconds Furthermore, EITA margins were impacted as we saw some uptakes in employee expenses, advertising and promotion, 3:17 3 minutes, 17 seconds transcode and stores and spares which Moody will talk about in a bit. I would like to emphasize that the brand is at the core of our business and we continue 3:24 3 minutes, 24 seconds to spend towards the same. Some of our recent brand building initiatives including sponsorship in cuckoo with 3:31 3 minutes, 31 seconds Japu in the zoo hawka targeted OPT creative strategy innovative weather reports in TV channels and Ganesh 3:39 3 minutes, 39 seconds festival sites. These are targeted initiatives to increase brand sales in our local markets. On the procurement front due to the lean season and erratic 3:48 3 minutes, 48 seconds rainfall the overall supply of milk remain under pressure resulting in an increase in procurement prices. During this the quarter, we also took some 3:56 3 minutes, 56 seconds price hikes in line with the increased performance cost costs. In Africa, our revenue recorded a healthy yearon-year 4:03 4 minutes, 3 seconds growth of 21.7% with an META margin of 7.4% higher than the Q2 of last year. As 4:11 4 minutes, 11 seconds mentioned in the earlier call, we are currently for in earlier calls, we are currently focused on capturing the markets in Kenya and then strategically 4:19 4 minutes, 19 seconds keeping a milk product on the lower side. Over long term, we expect to see gradual improvement in the profitability in the Africa business. Coming to the 4:27 4 minutes, 27 seconds orga business, the business has delivered consistent high double digit growth. The revenue for the quarter grew by 28.3% with an avatar margin of 13.7%. 4:37 4 minutes, 37 seconds During the quarter, the raw material cost has increased as compared to Q1 FY26 resulting in a relatively low margin, but on a year on a year basis, it is in line with the Q2 FY25. 4:49 4 minutes, 49 seconds Going ahead with the GSP benefits and festive demand is well positioned to deliver consistent growth with further improvement in that contribution. We 4:58 4 minutes, 58 seconds continue to work towards brand building, increasing procurement, expanding our product portfolio and reaching new markets. Before I hand over to BBK, I 5:07 5 minutes, 7 seconds would like to take a moment to congratulate Muri and our finance team on winning the best digital finance team of the year at the NextGen CO awards of 5:15 5 minutes, 15 seconds 2025 and also the the overall team and the Osan team at HR foods for being able to integrate our process and systems in 5:23 5 minutes, 23 seconds a short time of 60 days. Uh which is I think is a great job done by the team. At Dodl, we are focused on 5:31 5 minutes, 31 seconds creating best-in-class systems and processes under our Tuite leadership to take the business to the new heights. 5:37 5 minutes, 37 seconds With this brief, I will now hand it over to the CEO of our company, Mr. DK. Thank you very much. Over to you, DK. Uh, 5:44 5 minutes, 44 seconds thank you, sir. During the quarter, our milk procurements took 19.5 lakh per day, which is an increase of 13.4% 4% on 5:53 5 minutes, 53 seconds year-on-year basis due to efficiency improvement by total as well as addition of oan volumes. The average consolidated 6:01 6 minutes, 1 second procurement cost in Q2 FI26 was 37.29 per liter which was around 34.64 per liter in the same period of last year. 6:13 6 minutes, 13 seconds Our liquid sales delivered a volume growth of 12.6 6 year on year and stood at 13.1 lakh lit per day. 6:23 6 minutes, 23 seconds Average consolidated milk sales price in Q2 FI76 was 57.07 6:30 6 minutes, 30 seconds per liter and Q2 FI25 it was 54.82 per liter. The third sales for the quarters 6:37 6 minutes, 37 seconds took 360 metric tons per day in a yearonar volume growth of 11.2%. 6:44 6 minutes, 44 seconds Now to give a clear picture of our performance excluding me numbers. I would like to share the volume details of excluding the milk procurement volume 6:54 6 minutes, 54 seconds stood 18.8 lers per day on year basis growth is 9.4%. 7:00 7 minutes Milk sales volume stood at 12.4 lators per day on year basis 6.3%. 7:07 7 minutes, 7 seconds Third sales volume should be 346 metrics per day and year basis rate is 6.7%. 7:15 7 minutes, 15 seconds These details are also available on slide number seven on the presentation. 7:21 7 minutes, 21 seconds Speaking of valuated there is a deep in terms of gap sales mainly due to lack of 7:27 7 minutes, 27 seconds sales in the water as explained by school. 7:34 7 minutes, 34 seconds However, given an exceptional growth of 22% on sales exceeding the sales which 7:41 7 minutes, 41 seconds is a positive sign of S&P and purpose 7:49 7 minutes, 49 seconds in the current quartri excluding the sales at 27%. 8:00 8 minutes in QB26 as the next 32% of FI25 8:06 8 minutes, 6 seconds rap sales in stood rupees 14.84 such as accelerated increase in the app 8:15 8 minutes, 15 seconds sales as a result of our continuous efforts to pushing the high margins along with the regular brand building activities. 8:25 8 minutes, 25 seconds Additionally, we are progressing well with our Maharasa expansion project. 8:30 8 minutes, 30 seconds Once the facility starts getting operational, we plan to gradually increase our speed recruitment from the state. 8:38 8 minutes, 38 seconds In the initial few quarters, this will primarily be used for sales until we strengthen our sales business in the 8:45 8 minutes, 45 seconds near business and expand our geographic footprint for selling economy and value. 8:53 8 minutes, 53 seconds Currently in H1 April 26 we produce 2.4 lakh per day of mail from Maharash 9:02 9 minutes, 2 seconds currently operates in 3% margin. Our focus is on enhancing operating 9:08 9 minutes, 8 seconds efficiency and scaling values from the current 1.2 2 lakh l per day to two lakh lit per day by the 9:18 9 minutes, 18 seconds we to bring res to consulted level within two years recruitment optimization increased 9:27 9 minutes, 27 seconds contribution and operational improvement we expect to play a strategic role in speed revenue and profitability 9:36 9 minutes, 36 seconds supporting our expansion to the northeast region of India. Additionally, we implemented 9:44 9 minutes, 44 seconds effective from in addition to these developments 9:52 9 minutes, 52 seconds [clears throat] with its direct form of next seller strategies grow presence in Africa steadily expanding business 10:01 10 minutes, 1 second remains confident of developing max growth while maintaining healthy profitability across all businesses 10:08 10 minutes, 8 seconds needs the long term. So now I request Mr. 10:15 10 minutes, 15 seconds Financial. Thank you. 10:19 10 minutes, 19 seconds Thank you sir and a very good afternoon to all the participants on the call. 10:24 10 minutes, 24 seconds Talking about quarterly performance in Q2 FI26 revenue from operations to date 2019 10:30 10 minutes, 30 seconds growth a 2.1% year on year growth compared to 998 cr in Q2 FI25. 10:37 10 minutes, 37 seconds We delivered a gross profit of 282 crores with gross profit margin reaching at 27.7% 10:44 10 minutes, 44 seconds as 25.5% in the same period last year. Employee expenses for the quarter increased by 10:52 10 minutes, 52 seconds 25.7% to 50 crores primarily due to 3.8 8 crores addition from Ozari regular 11:00 11 minutes annual increments and the addition of new manpower with higher skills and qualifications along with the info 11:08 11 minutes, 8 seconds addition other expenses rose by 18% to 139 crores compared to 118 crores in Q2 11:15 11 minutes, 15 seconds FI25 mainly on account of advertisement and promotional expenses as well as increase in price and overhead cost due 11:23 11 minutes, 23 seconds to higher proportion of milk and raw product sales Instead of milk sales of butter and essenti of butter and 11:33 11 minutes, 33 seconds advertisement and promotion spent is important for us in order to increase the brand sales for all the products. 11:41 11 minutes, 41 seconds Our evida stood at 93 crores with an evida margin of 9.1%. 11:47 11 minutes, 47 seconds Depreciation expense came in at 21 cr as compared to 19 crores in Q2 FI25. 11:55 11 minutes, 55 seconds Other income for the quarter increased by 18.9% to 11 crores compared to previous year. Net profit for the 12:04 12 minutes, 4 seconds quarter stood 66 cr with a margin of 6.4%. 12:09 12 minutes, 9 seconds Now coming to HR FI26 performance revenues from operations grew by 6.1% 12:17 12 minutes, 17 seconds year on year to 226 crores compared to,99 12:24 12 minutes, 24 seconds crores. Gross profit improved to 542 crores a 4.2% increase on year-on-year 12:31 12 minutes, 31 seconds basis. Debit for off year 275 crores and the company reported a profit 12:38 12 minutes, 38 seconds after tax of 129 crores with a part margin of 6.3%. 12:44 12 minutes, 44 seconds In this period we incurred capex of 77 crores largely towards Maharashtra expansion. On the balance sheet front we 12:52 12 minutes, 52 seconds maintained a healthy cash and bank balances of 596 cr as of September 2025. 13:02 13 minutes, 2 seconds Thank you to open. 13:16 13 minutes, 16 seconds Hello. 13:21 13 minutes, 21 seconds Thank you very much. We will now begin with the question and answer session. 13:24 13 minutes, 24 seconds Anyone who wishes to ask a question may press star and one on the touch telephone. If you wish to remove yourself from the question queue, you may press down and two. 13:36 13 minutes, 36 seconds Participants are requested to use handsets while asking the question. 13:39 13 minutes, 39 seconds Ladies and gentlemen, we will wait for a moment while the question to attend. 13:44 13 minutes, 44 seconds The first question is from the line of Lakshmi Narayan from Tunga Investment. Please go ahead. 13:50 13 minutes, 50 seconds Yeah, thank you. Uh just want to understand your uh you know m procurement across uh the four states. 13:56 13 minutes, 56 seconds So what is the mix of fulfillment you get from these two states? That's my first question. Uh the second question is that uh there has been a volume 14:05 14 minutes, 5 seconds growth in milk. I mean I mean if you explore just want to understand what is the volume growth and whether the volume 14:12 14 minutes, 12 seconds growth in milk is coming by uh the expansion in uh distribution or how how it has actually made possible because 14:20 14 minutes, 20 seconds you have you know you recorded a very good uh uh growth in the uh liquid milk consumption. The third question I just 14:27 14 minutes, 27 seconds want to understand uh what is the mix of pouch curd versus u uh uh the non-pouch curd uh mix if you can give that these 14:36 14 minutes, 36 seconds are the three questions so I'll just answer the question on the middle growth of why it happens sir and woody will give the specifics on 14:43 14 minutes, 43 seconds procurement of the statewide and pouch card versus this and the middle growth volume predominantly what we have been spending on our advertisement and also 14:51 14 minutes, 51 seconds improving our distribution stance we are seeing an uptake a little bit coming from our existing markets where our market share is also improving in terms 14:59 14 minutes, 59 seconds of uh you know other customers or penetrating deeper also we are we are expanding areas consistently we still 15:07 15 minutes, 7 seconds have a lot of areas to expand in the areas of Tamil Nadu Karnataka we planted most of the areas for sale Telangana we still have some more penetration to do 15:15 15 minutes, 15 seconds so on the cont of these deepening our existing operations is where I think our uh sales percentage would be on 50/50 15:22 15 minutes, 22 seconds basis of the meat volume growth existing locations uh volume penetration is coming down to 50%. Uh new areas is 15:30 15 minutes, 30 seconds giving us 50% of our volume growth and brand is helping the recall and customer only now we give you the procurement and 15:37 15 minutes, 37 seconds pouch and this milk growth do you think this can be sustained over what period of time and also how much of these milk 15:46 15 minutes, 46 seconds sales come from uh you know the shops the model trade versus the regular daily supplies. 15:54 15 minutes, 54 seconds So modern trade is still very minimal. 15:56 15 minutes, 56 seconds It's only hardly contribute pressure milk and all will be much lower. It's only products that push more towards modern sales. So all this comes only 16:04 16 minutes, 4 seconds through the sales of the local kana store/ milk vendor who's coming and delivering it to you. The major area of growth too. So the volume growth comes 16:12 16 minutes, 12 seconds only from them. Yeah. So coming to the statewide recruitment overall the growth uh of the quarter is 8.2%. 16:20 16 minutes, 20 seconds So in India last quart last year this Q2 we have done 15.4 lakhs and against currently quarter we have done 16.75 16:29 16 minutes, 29 seconds lakh m so basically growth has come from 7.49 Karnataka 12.8 Tamilad we are more 16:37 16 minutes, 37 seconds or less good 19.86 Maharashtra 26%. That is the quarter growth when you talk 16:44 16 minutes, 44 seconds about 6 months growth also 7.9 for AP 8.2 Tamilana 16:53 16 minutes, 53 seconds 3.7 and 21 this is the procurement mix what is the procurement mix did you 17:02 17 minutes, 2 seconds give that number what mean yeah both 17:11 17 minutes, 11 seconds yes okay straight mix I'll give you yeah I'll give you straight mix 32% comes from 80 kaka comes from 26% 17:21 17 minutes, 21 seconds 26% 2% and also 14%. Got it. 17:28 17 minutes, 28 seconds Come to the sales of data excluding Africa overall we have in the volume 17:35 17 minutes, 35 seconds 1.1% that is excludable in the diary we have grown by 5.6%. for the quarter when 17:43 17 minutes, 43 seconds you talk about normally 17:57 17 minutes, 57 seconds almost 80% is the cost and 80%. 18:05 18 minutes, 5 seconds Okay. Okay. Thank you. I'll come back with you. Thank you. 18:11 18 minutes, 11 seconds The next question is from the line of Abishek Mur from systemic. Please go ahead. 18:17 18 minutes, 17 seconds Yeah. Hi sir, thank you for the opportunity. Uh just wanted to check what is the mid- procurement uh cost trend that we are seeing in October and 18:25 18 minutes, 25 seconds what is it that we are expecting uh in the near term going forward. uh if you can give the number also that we saw uh for the previous quarter and what is 18:33 18 minutes, 33 seconds what is it we are seeing for October and going forward expectation for November December and what was the price hike that we took also 18:41 18 minutes, 41 seconds uh see actually in third quarter slightly in the procurement cost is going up because you know see because of continuous range you know the 18:49 18 minutes, 49 seconds procurement you know see it is not coming expected level so because lot of farmers have diverted towards agriculture so procurement what we 18:57 18 minutes, 57 seconds expected in the month of October and November 19 only stand itself is it is slightly you know 19:05 19 minutes, 5 seconds it is behind the target target level so slightly there is a pressure in the market so prices have slightly gone up 19:13 19 minutes, 13 seconds uh so how do you know rupee 1 has already gone up but I think trying to compensate that 19:21 19 minutes, 21 seconds with better product mix and uh improvement in overall consolidated numbers so it won't impact our numbers 19:28 19 minutes, 28 seconds as much as as much and sir in the VA segment x of bulk sales we seem to have recorded quite 19:37 19 minutes, 37 seconds strong 20% plus growth as you indicated at your commentary uh which are the products uh in web which are driving this growth which which are the ones 19:45 19 minutes, 45 seconds which are growing faster for us it's 19:59 19 minutes, 59 seconds Yeah, got it sir. And finally sir uh if we can give our outlook for the near term what is the segment wise growth outlook that 20:07 20 minutes, 7 seconds we're expecting for the second half of the year of this year and do you think that we can do a margin of somewhere 20:14 20 minutes, 14 seconds close to 10% in the second half given that we are out of this seasonally difficult period that's it for me 20:22 20 minutes, 22 seconds so I think when you look at it from a growth point of view we will improve compared to the last quarters we will maintain standalone India will continue 20:30 20 minutes, 30 seconds to grow in the six seven 8% ranges of revenue growth that will come in. Africa is doing well for us. Africa will also improve on profitability before the seasonal changes have already come in. 20:40 20 minutes, 40 seconds Procurement prices there are coming down. Ora will also continue to do well and we looking at all improvement happening uh much much faster than what 20:50 20 minutes, 50 seconds we anticipated and we are confident that it will also do well for us. Our hope is that we will maintain that you know between the 8 to 10% kind of uh margin outlook also won't drop significantly. 21:00 21 minutes It will be between the 8 to 10. It's very difficult to take a call right now because you're still not too sure about the weather scenario because weather reports do state that Nina is coming in. 21:11 21 minutes, 11 seconds It is going to be a very bitter winter. 21:13 21 minutes, 13 seconds So we are not sure about it. I think uh that is the reason but otherwise we will maintain between that 8 to 10%. We will always we'll be able to maintain margins there. 21:23 21 minutes, 23 seconds Sure sir. And just one last quick followup to my first question. uh if you can give the third the second quarter procurement cost uh the console 21:30 21 minutes, 30 seconds procurement cost number and I think you have indicated that it is going up by 1 rupee uh in the third quarter but if you can give the second quarter number please that's it 21:38 21 minutes, 38 seconds uh so number would you like to give the specifics what happen is in the third quarter we will have an increase maybe marginally coming in from India but it 21:46 21 minutes, 46 seconds will also be compensated by reduction of prices in Africa so that will be the console impact will not be that much because Africa will improve for us but 21:54 21 minutes, 54 seconds Mood will give you the specifics Um yeah confirmator number for this quarter is 37.29. 22:02 22 minutes, 2 seconds Got it sir. That's it for me. Thank you. Thank you. 22:09 22 minutes, 9 seconds The next question is from the line of securities investment management. Please go ahead. 22:16 22 minutes, 16 seconds Yeah. Hi sir. Thanks for the opportunity taken. I just wanted to know the 22:25 22 minutes, 25 seconds rationality of doing the same because I believe we would be one of the only few players who who would have taken price hikes. Uh so just want some 22:33 22 minutes, 33 seconds understanding on that price hack from the sales side or on the procurement side. 22:40 22 minutes, 40 seconds Uh sales side is not much of price hack that you're taking. Overall because of the revenue mix that is there the prices are looking 22:49 22 minutes, 49 seconds at a higher in terms of net realization that we've got more than a price hike there's been not much of a price hike it's a price uh product mix that is the 22:58 22 minutes, 58 seconds reason that has changed which is shown an improvement of four 4% sorry 4% because of that change in the product 23:04 23 minutes, 4 seconds mix also I guess 4% has increase understood and s when was the last price 23:12 23 minutes, 12 seconds hike taken by us in India and are we think to take any price hike in the near future? 23:18 23 minutes, 18 seconds Uh right now there's no price s only internal slight corrections no m price the last price taken were more months 23:27 23 minutes, 27 seconds ago I think is when the last price were taken. 23:31 23 minutes, 31 seconds So recently for GST whatever is necessary that we have done it. 23:37 23 minutes, 37 seconds Uh so next was what was the revenue gross profit and aida for us in this quarter? 23:45 23 minutes, 45 seconds Uh it's only what we have taken as 2 months I think but we will be able to give you numbers specific to yeah so revenue was 52.6 crores able 23:54 23 minutes, 54 seconds 1.38 crores that is 2.6% 6% margin and we have done a volume of 1.35 lakh latest per day but when you consol that 24:03 24 minutes, 3 seconds as average it has come as 89,000 because two months operating we are at 1.35 lakhs. Yeah. 24:10 24 minutes, 10 seconds Perfect. Understood. Now sir you have been operating now for almost 2 to 3 months. So any lowhanging fruits you think are present in the business uh 24:19 24 minutes, 19 seconds which you could which you could you know work on immediately to improve margins in the short term. uh and second to the long-term pieces what kind of margins 24:27 24 minutes, 27 seconds are you targeting over there over what time frame and what would be the levers for doing the same 24:34 24 minutes, 34 seconds uh so broadly speaking it is a good market that we're looking at we're taking it from the you know population point of view the preration that is 24:41 24 minutes, 41 seconds being available and there the low hanging fruits are I think we are trying to get the efficiencies of the operating systems like we are doing our you know what we are doing as our practice is 24:50 24 minutes, 50 seconds here to be implemented there like we are doing in costing and other areas uh no improvement in the uh the facilities of the plant for qualitative 24:58 24 minutes, 58 seconds improvements. It's very early enough now to give you specific numbers of growth but we're very confident that the improvement will show in the coming few quarters itself on the bottom line on 25:06 25 minutes, 6 seconds the profitability front. uh volume growth is already growing 20% year on year as per what the predictions were there last year was to what the current 25:15 25 minutes, 15 seconds year is like I told you system integration successfully we been able to do the SAP integration which is basically showing the ability of both 25:22 25 minutes, 22 seconds the teams the team at Osam has been able to adapt as well as our team being able to integrate them with us very comfortably distributing and 25:30 25 minutes, 30 seconds strengthening the network infrastructure is an ongoing process which will continue system chain optimization is leveraging our existing networks by 25:37 25 minutes, 37 seconds supplying conventional from Maharashwa in that shortage is one of the things that we are doing to increase our own butter and SMP that we have here and our 25:46 25 minutes, 46 seconds stocks being sent there. So all these things added together will start showing the the improvement and we hoping that it'll do well for us in the coming few quarters. 25:56 25 minutes, 56 seconds Yes. So structurally canam operate at India standable margins of 8 to 9% considering the scale is lower over there. 26:05 26 minutes, 5 seconds uh we are actually targeting for that but it might take us some time to get there because I think the immediate very low margins of this one to two person 26:14 26 minutes, 14 seconds that will improve dramatically but to make it a little higher after a point of end we have to consider local conditions there because this number grow that we 26:21 26 minutes, 21 seconds take we'll be number two to the local cooperators in Sudha which will be existing or whatever I think based on the brand residence and other 26:30 26 minutes, 30 seconds we will be able to get it there but it might take us 3 to four quarters or more to get Yes. 26:35 26 minutes, 35 seconds Amazing. So this last last question, what was the curve field amount in terms of for India including Mosam or just 26:44 26 minutes, 44 seconds standalone India? Sir total uh total. Okay. 26:50 26 minutes, 50 seconds Uh for India this quarter 156 cr 26:58 26 minutes, 58 seconds 194 crores in total 194. 27:04 27 minutes, 4 seconds Yeah, thank you. Thank you. 27:13 27 minutes, 13 seconds The next question is from the line of Shiva Mittal from Care PMS. Please go ahead. 27:20 27 minutes, 20 seconds Um hello. Thank you. Thank you sir for the opportunity. So sir in terms of valuated products uh if I exclude bulk 27:29 27 minutes, 29 seconds sales so non-bulk sales has begrown uh sequentially. 27:33 27 minutes, 33 seconds So sales non sales have grown will give you 27:40 27 minutes, 40 seconds the specifics of standalone India the W sales grow overall excluding that the growth was around 5.6% 6% inense 27:49 27 minutes, 49 seconds onlyense sense was grown basically that was 7.7% 27:56 27 minutes, 56 seconds is in the car and other products is almost 10%. 28:01 28 minutes, 1 second 1 minute so we just give you the exact matches the numbers that we are looking at. 28:07 28 minutes, 7 seconds Okay. Uh sir 24.2% we have grown uh 3.3% excluding bulk. 28:20 28 minutes, 20 seconds Okay sir. Ver excluding uh bulk here. So uh Q1 versus Q2. 28:28 28 minutes, 28 seconds Yes. No. Q2. 28:38 28 minutes, 38 seconds Um uh you mention it. So for example Q2 we have done a 28:47 28 minutes, 47 seconds turnover of 230 cr in the Q2 of last year we have done that Q2 of last year 28:56 28 minutes, 56 seconds 189 cr resulting to 21.4% 4% of the growth Q2 to Q2 last year. 29:03 29 minutes, 3 seconds Yeah. Because even when you compare it last year excluding them to 69 cr but because that is a summer season we have 29:11 29 minutes, 11 seconds a more of the milk and that's so when you compare with that growth of 29% 29:20 29 minutes, 20 seconds yeah and in the past product because we will see separately in the current quarter we have 31 cr last year similar 29:28 29 minutes, 28 seconds quarter 22 crores there is a growth of 47 last year and this year when you come 29:38 29 minutes, 38 seconds back because this is Q1 so there was a big growth of 29:45 29 minutes, 45 seconds uh 10% so Q2 has improved so Q1 damage of not having the weather on our side was the one the VA came down but Q2 it 29:54 29 minutes, 54 seconds has improved and grown okay thanks understood um so you mentioned uh OM is a low margin business so any any particular reason for that? 30:07 30 minutes, 7 seconds BK will answer the question. Uh basically know see there are two reasons. One is operational efficiency uh lot of operational inefficiency is 30:15 30 minutes, 15 seconds there that we are correcting and you know see systems and process are not in place you know so that's why within 60 days now we implemented SAP so in couple 30:24 30 minutes, 24 seconds of months you know there will be some change in margins basically also like what we mean by operational efficiencies 30:31 30 minutes, 31 seconds that there is such a business that on every end we'll have to make sure that everything is uh up to the peak in terms 30:38 30 minutes, 38 seconds of quality of product logistics takes uh efficiencies in terms of logistics, temperature controls and all that. I 30:45 30 minutes, 45 seconds think these basics which are more know what do you say touch and feel of the business that you need has been what we're getting to and we hope to see that 30:54 30 minutes, 54 seconds that will immediately give you results in the short uh short will be there. 31:00 31 minutes All right sir sir. Uh for the quarter advertisement uh number you can specify 31:10 31 minutes, 10 seconds advertisement uh we have 10 and we have spent in the quarter which 31:19 31 minutes, 19 seconds comes 10 cr and what was the last last year same quarter 31:26 31 minutes, 26 seconds last year similar quarter we done only 7.2 No correct 72. 31:34 31 minutes, 34 seconds Okay sir. And how s I request you to rejoin the queue for followup as there are many participants left in the queue. 31:43 31 minutes, 43 seconds Okay. 31:45 31 minutes, 45 seconds Thank you. I request each participants to ask two questions from now on. The next question is from the line of man 31:53 31 minutes, 53 seconds Goyel from ICICI securities. Please go ahead. 31:57 31 minutes, 57 seconds Hi sir. Good morning sir. I can see in the paper that the bulk sales for S&P and butter is 283 million in Q26 32:06 32 minutes, 6 seconds but it is uh 1,666 in Q25. Could you specify the reason for this name? Why is much decaying? 32:15 32 minutes, 15 seconds So basically this uh bulk what we are trying to do is basically a balancing between our procurement and sale. I think strategically as we go forward we 32:24 32 minutes, 24 seconds want to as the size of the company is growing we cannot be precise about our procurement and fair value and therefore we will have to build out more in terms 32:33 32 minutes, 33 seconds of keeping this variation in how seasonality will play. So keeping that in view last year when the procurement prices were a little over there was an 32:41 32 minutes, 41 seconds abundance of milk we started to continue with procurement and we didn't want to consider procurement and therefore we had a buildup of inventory which we did 32:49 32 minutes, 49 seconds sell. So that is already shown as strategically benefiting us. Now when the procurement volumes have come down overall we are still able to maintain 32:57 32 minutes, 57 seconds our surplus in terms of that additional one lakh lers which we need for our home balancing and we're continuing to do it. 33:03 33 minutes, 3 seconds This is what happens when the seasonality that comes in to the farmers we continue to increase our outtake and continuing to uh if there is a surplus 33:12 33 minutes, 12 seconds we convert that into the inventory of the powder and butter. 33:16 33 minutes, 16 seconds So as we go that is the reason why when the Maharashtra plant also comes into operation we will start going and doing more of aggressive procurement and also 33:23 33 minutes, 23 seconds keeping cost into consideration of you know which plant of conversion and where it moves and maintaining inventory levels to see whether it will benefit us 33:31 33 minutes, 31 seconds if required or uh we will have lower inventory like how it is showing up between last year to the current year. 33:37 33 minutes, 37 seconds So this is only a funeral balancing that we are doing and it will be there. Understood sir. Thank you. 33:48 33 minutes, 48 seconds Thank you. 33:50 33 minutes, 50 seconds The next question is from the line of Prain Kumar from Acuteness Capital Advisor. Please go ahead. 33:57 33 minutes, 57 seconds Uh hi, good morning. Uh thanks for the opportunity. I had a couple of questions. The first one was on you know this year has been beset by you know 34:04 34 minutes, 4 seconds volatility on the supply side in terms of high procurement prices and you know uh decision to come down to you know 34:12 34 minutes, 12 seconds weather volatility. So I wanted to ask a couple of questions around that. One is that how do you deal with this you know on an ongoing basis in terms of uh both 34:20 34 minutes, 20 seconds the supply side and demand side volatility due to seasonal variations and do we foresee uh I mean the last 34:27 34 minutes, 27 seconds time we had a procurement and uh sales kind of a mismatch uh we had to you know we ended up building uh some inventory 34:35 34 minutes, 35 seconds and you know uh taking a hit on the cash flows in FI24. So, do we see a repeat? I mean, are we likely to see a repeat of 34:42 34 minutes, 42 seconds that? That's question number one. Uh, question number two was I wanted to understand the breakup of the employee expenses and other expenses. You you 34:51 34 minutes, 51 seconds have attributed to a few factors, but I wanted to get a more uh detailed breakup of the expenses to understand where the uh increase has. Thank you. 35:00 35 minutes Yeah. So, I think thank you sir. I think Mli will give the specifics on the employee details. I will just take the thing on the the bulk rate that we're 35:07 35 minutes, 7 seconds looking at as saying will it repeat current year it will not repeat because of lack of low procurement you know and uh not having enough of milk coming in 35:16 35 minutes, 16 seconds the system but going ahead for next year again we're not see to maintain a variation between 20 days and 30 days of 35:23 35 minutes, 23 seconds inventory to 5 or 10 days will be a variation that we will have to be prepared for in terms of cash flow it is not a significant increase we have ample 35:32 35 minutes, 32 seconds uh cash reserves and we have debt pre- company. So that is not at all an issue. 35:36 35 minutes, 36 seconds It is only done from our side for more balancing out recruitment and sales. So for the current year no for the next year we still not sure. We have to wait 35:44 35 minutes, 44 seconds and see how this happens. The normal industry trend in the dairy sector last year was excessive procurement in 35:51 35 minutes, 51 seconds procurement which did show the inventory and what we s this year is less not able to give you the break up of the salary details. 35:59 35 minutes, 59 seconds Yeah. uh for this quarter actually uh we have total 10 course of increase on this 36:06 36 minutes, 6 seconds uh in the salary cost around 10 10 course majorly one of the OSM addition is there and apart from that 10% of 36:14 36 minutes, 14 seconds incident is there apart from that regular headcount increase because of we have g up for the volume today around 19 36:22 36 minutes, 22 seconds lakhs of procurement volume and volume because of the rainfall all those couldn't be able to do so the buildup we have done for the head that was one of 36:30 36 minutes, 30 seconds the Second is in the transport cost almost 7 cr was in place because of that 36:36 36 minutes, 36 seconds construction into yeah so basically I think increments were around 10 12% sir and the 36:44 36 minutes, 44 seconds additional 67% has come because of our increase in procurement and for marasha project that we're putting in 36:52 36 minutes, 52 seconds so so to understand that in more detail you're saying that the head increase part of it is more towards the procurement and not necessarily towards pushing your value added products etc. 37:02 37 minutes, 2 seconds That's right. 37:03 37 minutes, 3 seconds Okay. Procurement and sales also a little bit there but we're trying to put this whole growth plan for together for 37:10 37 minutes, 10 seconds agreement from our the standalone in India to reach 20 lakh liter that cannot be done instantly. So we're building the 37:17 37 minutes, 17 seconds team out for that in the future and also advertisement extra. Yeah. 37:23 37 minutes, 23 seconds I understand. Okay. Thank you. Thanks for the thank you. 37:28 37 minutes, 28 seconds The next question is from the line of Padan from Maximal Capital. Please go ahead. 37:36 37 minutes, 36 seconds Hi, I hope I'm audible. Uh my first question is regarding the supply side the procurement uh uh trails. Uh so sir 37:45 37 minutes, 45 seconds you highlighted that you know there has been supply pressure uh this year. So if you can just elaborate on you know how 37:51 37 minutes, 51 seconds the document price growth was in say 2025 2024 and how that situation has 37:58 37 minutes, 58 seconds changed this year um and uh what are the factors now attributing to it and uh also H1 versus H2 seasonality in terms 38:08 38 minutes, 8 seconds of the uh supply and in terms of the floods that you are mentioning one of the slides uh what to expect October 38:15 38 minutes, 15 seconds hasn't been good but um you know from uh from next month onwards uh what are your expectations and uh where do you see 38:23 38 minutes, 23 seconds when do you see the uh supply situation improving uh the as expected it has not come 38:32 38 minutes, 32 seconds because of excessive range especially in southern India not only southern India entire India even in northern India also so far you know normally after given 38:40 38 minutes, 40 seconds only the procurement goes up prices will come down but you know as of now now see that we have not seen any impact now the 38:48 38 minutes, 48 seconds information what we getting the procurement level is not comparatively expected level as compared to last year. 38:55 38 minutes, 55 seconds So because of that no slightly prices are is slightly forming around that is the main reason and the trends also will be the same sir because also coming 39:03 39 minutes, 3 seconds months it not look like it will be the same we will give you the specific numbers of the previous years to 39:09 39 minutes, 9 seconds yeah last year uh this year 34.86 was the price now we are at 37.07 land prices for India. Yeah. 39:22 39 minutes, 22 seconds Confirmed 31.29. 39:27 39 minutes, 27 seconds Sorry. So what are the factors that have contributed to this? Like you know this year what changed only because of the effect is more because we have 39:34 39 minutes, 34 seconds unusual rain. So summer anyhow we don't get much of milk and the when the weather improves the animals will be able to yield better. But when you say 39:42 39 minutes, 42 seconds that there's excessive rain there is no disease, malnutrition and all that comes from the animal side. On the farmer's side when there is rainfall which is 39:50 39 minutes, 50 seconds more the attention towards growing of his crop becomes more and less care towards the animal assembly side because he likes to look at his revenue from 39:58 39 minutes, 58 seconds saying that an animal has been decided is doing better. Sorry, there's more revenue from a crop and concentration there is more. When there is a little 40:06 40 minutes, 6 seconds less of rainfall also it's the same thing that we have to take care of the animals more than the agriculture because there's no agriculture and then the milking. So when there is abundant 40:14 40 minutes, 14 seconds oxide is a problem which is there which has come this year. So that is a basic reason. If it was optimal then it would have been great. The animals would have 40:22 40 minutes, 22 seconds been producing more resolution. So it is abundant of rain having the health impact on the animals and concentration more on the farming. 40:30 40 minutes, 30 seconds Got it. Got it. Sir, uh the second question is related to the aid the computation from your milk sales versus 40:36 40 minutes, 36 seconds the D cells. Uh so you do like somewhere around 90 to 100 CR per quarter. So how much you generate from your main sales? 40:47 40 minutes, 47 seconds Uh and how much normally be lower sir and back will be a little higher. I think will give you the number 40:56 40 minutes, 56 seconds with the contribution is around 9.23 23 and VA is around 11.91 41:06 41 minutes, 6 seconds understated. So what is your mixer? Like paneer and cod are your highest selling products. So u you will normally be your most high selling product in the wax followed by others. 41:16 41 minutes, 16 seconds So kurd will be will give you the specific of how much is kurd and how much is others. uh card is contributed around sale of 155 crores in this quarter and paneer is around 10 crores. 41:27 41 minutes, 27 seconds So we have margins around 15%. Paneer is around 67% of now it is picking up uh 41:37 41 minutes, 37 seconds can you come again paneer 60 paneer is actually lower margin of 67% because we're pushing it into modern day 41:44 41 minutes, 44 seconds and online. So we doing promos attribute to the cost otherwise that allows to improve to the 10 12% margins in the days to come. 41:51 41 minutes, 51 seconds Got it. So and and the makes changes from H1 to H2 depending on the regions or uh normally H1 is always better 41:59 41 minutes, 59 seconds performing but this year unfortunately it was not there because in terms of rains and coming in lassi buttermilk which are other high volume products 42:07 42 minutes, 7 seconds don't sell. Would you believe the difference between H1 and H2? uh H1 and H2 generally H1 will be higher H2 we 42:15 42 minutes, 15 seconds don't have H2 we are expecting that it will be the similar similar lines of last year yeah but the C both products get 42:23 42 minutes, 23 seconds impacted due to this uh you know between X1 and S2 and Paneer or C and Paneer is more steadier and all that 42:31 42 minutes, 31 seconds okay Paneer will be on the growth trajectory because that is not that much weather related it's more a market push that we give uh third is more weather related in terms of the south of India 42:40 42 minutes, 40 seconds there becomes too much of a winter people might cut down the consumption or increase as long as summers are higher we have more of third and bary consumption H2 and winter it maintains 42:48 42 minutes, 48 seconds the status quo it won't increase rapidly but it also as I said it depends on for us surprisingly right now October the past four five days have been wrong 42:57 42 minutes, 57 seconds compared to what we are expecting so I think but it'll maintain the same numbers of uh volumes marginal growth will be there because of no penetration 43:06 43 minutes, 6 seconds instead of having a substantial growth Okay, that's all for my sir. Thank you. 43:13 43 minutes, 13 seconds Thank you. 43:16 43 minutes, 16 seconds I request each participants to ask two questions only. The next question is from the line of Kyra Sundar from Spark Capital. Please go ahead. 43:26 43 minutes, 26 seconds Yeah. Hi sir, good afternoon. Uh just want to check on the orga feed business. 43:31 43 minutes, 31 seconds I see there's a moderation in margins uh between 79% to 39%. What what contributed to that? 43:38 43 minutes, 38 seconds Basically mared will be predominantly driven by the commodity of maze and uh uh prices of maze I think that would 43:47 43 minutes, 47 seconds have contributed the most but will give you the yeah basically uh the quantity was increased earlier we are doing 4.1 41 43:56 43 minutes, 56 seconds now we are doing around 46 per month per month uh which was actually 3% of 44:03 44 minutes, 3 seconds growth in the value and revenue also increased by 28% because the margin is increase because of the uh 6% was the 44:12 44 minutes, 12 seconds price or days. Yeah, correct. 44:17 44 minutes, 17 seconds Mainly because of the value and the other reason is the changes in the price. 44:23 44 minutes, 23 seconds Okay. Okay. Sure. So, thank you. I'll get back into the queue. 44:38 44 minutes, 38 seconds Next question. 44:48 44 minutes, 48 seconds Excuse me. Thank you. 44:55 44 minutes, 55 seconds Thank you. 44:59 44 minutes, 59 seconds The next question is from the line of Mohit toa from MK Global. Please go ahead. 45:06 45 minutes, 6 seconds Uh yeah, hi sir. Uh sorry I joined a little late. Uh just wanted to ask one question that uh how this recent GST 45:13 45 minutes, 13 seconds changes are likely to help our valued portfolio. 45:19 45 minutes, 19 seconds GST changes basically we have reduced the price and looking at it will the consumption uptake be significantly larger? I don't think so. it will be 45:26 45 minutes, 26 seconds modest improvement. The example I give is nobody's going to be consuming extra in terms of the major product of B because whatever is standard consumption 45:35 45 minutes, 35 seconds at the household level will continue to be the same. But I think you know it improves because of other products like the flavor meat and which have more of 45:44 45 minutes, 44 seconds kind of consumption products where there will be little uptake because it will be more competitive with the other refreshments or services that are there 45:52 45 minutes, 52 seconds but unfortunately for us I think we have to wait back in the next summer and winter seasons. 46:01 46 minutes, 1 second Okay. So how much are we trying for like uh the la market is informal. So are we trying to push products in that region? 46:14 46 minutes, 14 seconds Not significantly only there is still a significant amount of informal and formal 46:22 46 minutes, 22 seconds workers to improve becauseization won't be dramatic in nature but like how it was in the rest of the country maybe a decade or decade and a half ago is where 46:31 46 minutes, 31 seconds we will be looking at the formalization happening and improvement going further in the northern markets of BR and Jaken. 46:37 46 minutes, 37 seconds It is also related to GDP and the overall infrastructure improvement. We are very confident that that will happen because looking at other sectors, 46:44 46 minutes, 44 seconds they've been doing extremely well in these markets and uh uh growing very fast and we also are confident that we will be able to do the same. 46:54 46 minutes, 54 seconds Okay. Okay. Thank you. Thank you. 47:00 47 minutes The next question is from the line of Risha Ma from Green Edge. Please go ahead. Yeah. Uh thank you for the opportunity. 47:08 47 minutes, 8 seconds I just have a couple of data questions. 47:10 47 minutes, 10 seconds So uh uh for FI25, what would be our revenues from B2B? 47:17 47 minutes, 17 seconds Uh B2B for us is a very small segment ma'am. Uh we we have I mean B2B is only the bulk trade that we did in terms of 47:25 47 minutes, 25 seconds our bulk volume. So I'll just get you that number. Yeah. Basically last year 47:30 47 minutes, 30 seconds for the full year we have done uh S&P we had done two or two crores of butter and 47:38 47 minutes, 38 seconds S&P of 110. So that's resulting into total value of yeah that's it 47:46 47 minutes, 46 seconds 312 crores last year. So this is consol right. 47:51 47 minutes, 51 seconds Okay. Yeah. Consolved it. And current year it is only 86 crores for the half year. 47:58 47 minutes, 58 seconds Okay. We have subscriber with 57.7 cran 28.3 cr. 48:03 48 minutes, 3 seconds So this console man bulk is only in console. Other areas we don't do bulk at It's all B day B to C 48:10 48 minutes, 10 seconds right and uh in terms of what is your revenue mix for CH from you know different channels for FI25 like how much would be you know through the 48:17 48 minutes, 17 seconds traditional uh milkman/kana route how much through ecom quickcom uh yeah so for us broadly ecomi will give 48:26 48 minutes, 26 seconds you the specifics ma'am we have what we call as agents we have our own retail parsers distributors and others will give you the 48:33 48 minutes, 33 seconds yeah uh distributor is 49% agent is 22 2% DRP is our own retail parlas is 17%. 48:42 48 minutes, 42 seconds And another hybrid DRC where they will do 2% mainly institutional is 1.8 our modern trade is only 4.1% including 48:50 48 minutes, 50 seconds e-commerce and super stock is 2.6% Sorry I can you go a little slow. Uh uh sorry. Yeah. 48:58 48 minutes, 58 seconds Milk distributors is 49 plus 22 right. 49:03 49 minutes, 3 seconds Uh our own retail parlor is 19 plus somewhere around two uh as you said. Yeah. 49:10 49 minutes, 10 seconds Right. And uh institutional is uh uh 1.8 and modern trade is 4.8 and ecom 49:18 49 minutes, 18 seconds 4.1 super stockish. So the bigger distributor model you can say that 49:25 49 minutes, 25 seconds add to the distributor model 2.6 stock is 2.6 and then how about ecom quickcom 49:33 49 minutes, 33 seconds 4 point ecom is a part of 4.8 it will be very small so it'll largely be 4.5%. 49:40 49 minutes, 40 seconds Okay. Okay. Okay. And uh you know what would be our revenues uh from different states in FI25? If you 49:48 49 minutes, 48 seconds could just give the percentage terms uh and also what would be our procurement from different states uh for FI25 and 49:58 49 minutes, 58 seconds so FI25 procurement I think we'll give you statewise and uh go ahead. Statewide procurement madam AP is 32%. 50:07 50 minutes, 7 seconds Karnataka is 26. Tamil lad is 26 Tanga 2% Maharashtra 14%. This is under 50:14 50 minutes, 14 seconds statewide that's procurement. 50:17 50 minutes, 17 seconds That is procurement ma'am. Sales wise 25 right annualized annualized number you're giving right? 50:23 50 minutes, 23 seconds Yes analyze number right and for the revenue sales sales 31% from 80 karnataka 37% 19% kangana 13%. 50:37 50 minutes, 37 seconds It is called Q2. No, no. I want you both. Full year, ma'am. About you too, ma'am. 50:45 50 minutes, 45 seconds No, no. For full year. Full year. Yeah. 50:49 50 minutes, 49 seconds Full year. It will be minor change in the grand almost the same proportion. I'll get you the numbers later, but it will be almost the same proportion. 50:58 50 minutes, 58 seconds Got it. And the procurement numbers also that you mentioned were for full year FI25, right? across 51:04 51 minutes, 4 seconds that was also forced for one quart also. 51:11 51 minutes, 11 seconds Yeah, I think no no and and Maharashtra we don't have any revenue. No no sales yet ma'am. 51:19 51 minutes, 19 seconds Okay. And then lastly I think a clarification you mentioned that the uh standalone India numbers are expected to grow at 5 6%. Uh did I hear that right? 51:30 51 minutes, 30 seconds Yes ma'am. for 8 to 10 for because go ahead again come and why would it be such a low number 51:38 51 minutes, 38 seconds that we are expecting five to 6% India stand alone the revenue volumes because again we're entering into the winter seasons where 51:46 51 minutes, 46 seconds the value added product numbers will come down normally and that is what we're looking at now 51:54 51 minutes, 54 seconds all right all right thank you and all the best thank you thank you the next question is from the line of Kan from Green Investor. Please go ahead. 52:04 52 minutes, 4 seconds Please go ahead. 52:09 52 minutes, 9 seconds Good morning. Uh thanks for the opportunity. I hope I'm audible. Yes, please. 52:15 52 minutes, 15 seconds Yeah. The first question I would like to ask is like margin for Paneer for Indian standalone operations. 52:23 52 minutes, 23 seconds Yeah. uh would just give you the margins for for a bit. Currently we just told you 15.29%. 52:31 52 minutes, 31 seconds Pney is around 6 to 7% but we are hoping that that will increasing going forward because now we are in the stage of capturing the market and more we are 52:40 52 minutes, 40 seconds penetrating into the modern trade and income that is the reason the margins are little. 52:46 52 minutes, 46 seconds So coming to the next question I would like to ask like uh uh for prior GST refund we had I think for FA 2122 52:54 52 minutes, 54 seconds can you give the clarification regarding that? 52:58 52 minutes, 58 seconds Yeah refund was basically there was a industry as a whole the flavored milk there was a debate on which category GST 53:07 53 minutes, 7 seconds should be classified under. uh so later I think the industry and most of the independent dies went to the respective courts and courts gave favorable order 53:15 53 minutes, 15 seconds that the department was classifying under the category instead of category and gave us the relief and that's why 53:22 53 minutes, 22 seconds the advantages came so we have received the refund in this 53:30 53 minutes, 30 seconds yeah this quart we have not received it we are yet to receive another karmat which we are expecting around 1 cr will come in 53:38 53 minutes, 38 seconds subsequent quarters once we won the case. 53:41 53 minutes, 41 seconds So I think yeah we already got it was factored in the earlier quarter not in the Q2. 53:50 53 minutes, 50 seconds So it was faced in Q1. Yeah. 53:55 53 minutes, 55 seconds So in PMP uh just to know in access uh okay access thanks for the information uh I thank you. Sure. 54:08 54 minutes, 8 seconds Thank you. 54:10 54 minutes, 10 seconds The next question is from the line of Madhas from SKP securities. Please go ahead. Yes. Hi, thank you for the opportunity. 54:19 54 minutes, 19 seconds So my question was more on industry standpoint. So I wanted to know like what what what are the dynamics demand 54:29 54 minutes, 29 seconds supply dynamics like I know you have answered that like in the current quarter you witnessed that there was a surge in procurement prices uh because 54:38 54 minutes, 38 seconds of unfavorable weather and all these things but like only fundamentally like what are your views like is it that the 54:46 54 minutes, 46 seconds demand for dairy products is like rising so the demand for milk is rising at a higher speed in supply or the supply and 54:55 54 minutes, 55 seconds increase is higher. So fundamentally what is your take on this and secondly like is there statewise a very big 55:02 55 minutes, 2 seconds divergence uh so yeah on this if you can uh no big divergence statewise sir and the basic broad milk is what we call as 55:12 55 minutes, 12 seconds B2C which you can look at it as a consumer products like milk paneer what all the other products then there is a whole segment of what we call as the 55:19 55 minutes, 19 seconds ingredient space which is basics are powder and fat that you look at the ingredients can go into a host of industries right from you have variants 55:28 55 minutes, 28 seconds like casine and such things which can go from pharmaceutical to biscuit factories to other food products. So the balance 55:36 55 minutes, 36 seconds of what we have as like you said rightly supply demand of what we produce locally there's a shortage in these production buildings of other ingredient sort of 55:44 55 minutes, 44 seconds prices go up and the ingredient business needs more volume then we increase the procurement prices once there is a surplus in procurement when there is 55:52 55 minutes, 52 seconds ingredient is under pressure because they're building up too much of stock procurement prices then come down we being majority B2C business we're able 56:00 56 minutes to know keep that status of profitability and go forward sometimes We do have a lag. We're not too sure of how much the procurement prices will go 56:08 56 minutes, 8 seconds up if there is a shortage and that by value will be stabilizing and the passing prices will take that effort of time and that will see a slight dip. 56:16 56 minutes, 16 seconds Whereas the procurement prices drop then we don't normally increase the selling prices and that comes into our bottom end quicker. That is broadly the way the 56:26 56 minutes, 26 seconds scenario works. Not much of a divergence. The predominant growth is coming from Indian consumers uh consuming increased what we call as a 56:34 56 minutes, 34 seconds per capita consumption. As more people are becoming health and aware be the new protein or looking at it as from an 56:41 56 minutes, 41 seconds earlier point of view consumption is increasing. I think we see four to 5% growth in terms of basic market size increasing and uh the procurement is also keeping up in tandem. 56:54 56 minutes, 54 seconds Okay. So like in a normal scenario so can we assume like like at what rate do you believe like the milk procurement 57:02 57 minutes, 2 seconds sizes for you like are like can we expect to increase or decrease or whatever or remain stable in a normal 57:10 57 minutes, 10 seconds scenario for like in medium to long term like let's say medium term long crops if you look at it as a 30-year long-term cycle since you have 57:18 57 minutes, 18 seconds been in business I mean inflationary milk has been growing at around a 10% inflation on both procurement and sales over a 30-year period. I'm not looking at it as the short term of 2 to 3 years. 57:29 57 minutes, 29 seconds 2 to 3 years you will have the four 5% inflationary pressure which comes both from procurement and sales. It's only the timing of when the companies pass on 57:37 57 minutes, 37 seconds or how do you take it forward. So also the difference is coming is that multiple channels are changing. So that is also another reason we will see more 57:46 57 minutes, 46 seconds I think inflationary pressures coming because you know for the convenience customers are willing to pay more. So the cost are going to increase on this edge front. 57:55 57 minutes, 55 seconds Okay, understood. And just one last question. So on this e-commerce trend uh like especially quickcommerce front. So like there are you know several 58:04 58 minutes, 4 seconds companies coming out with like they are growing their presence in these modern channels. So like what are your plans like as of now like there is no such 58:13 58 minutes, 13 seconds like any big uh like you know strategies from your end or like you are smoking on those kind like one of the players like 58:21 58 minutes, 21 seconds if I have to mention like entry de like so they are like going big so like what are your like use currently on on this 58:30 58 minutes, 30 seconds so we basically would like to look at quickcommerce and we keep track of them so we are also on stores like link it and big basket and all of them those are 58:38 58 minutes, 38 seconds majority We try to do it with the long-term products. Dairy industry per se has been a sort of a home delivery, right? Majority of the consumer milk 58:46 58 minutes, 46 seconds earlier was delivered at home via different kind of a channel maybe not very comfortable in terms of order placement. But I think right now the 58:54 58 minutes, 54 seconds delivery costs are still high. The older channel of delivery costs are little comparatively more cost effective than the newer channel. So the subscription 59:03 59 minutes, 3 seconds business largely is still with the older channel. We are keeping a close watch. 59:07 59 minutes, 7 seconds If the modern channels start coming down in terms of cost and we are becoming more competitive, all of us will also shift to a uh delivery channel. So we 59:15 59 minutes, 15 seconds consider quickcom as more of a delivery channel for me because it's predominantly subscription and the non requirement or the the surplus 59:23 59 minutes, 23 seconds requirements comes in only very rarely that uh which can be catered by modern trade kirana and all right. Okay. Thank you. 59:35 59 minutes, 35 seconds Thank you. We will take that as the last question for today. I now hand the conference over to the management for closing comments. 59:43 59 minutes, 43 seconds Uh thank you everyone for joining us today on this earnings call. We appreciate your interest in Dudla Daily. 59:49 59 minutes, 49 seconds If you have any further queries, please contact SGA, our investor relation advisor. Thank you very much everyone. Thank you. 59:57 59 minutes, 57 seconds On behalf of God, Wisconsin. Thank you for joining us and you may not disconnect. Thank you.