Dodla Dairy Limited — Q3 FY26

Dodla Dairy Ltd Q3 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=imBw_C36q6Q Published: 3 months ago

0:03 3 seconds [music] 0:06 6 seconds Ladies and gentlemen, good day and welcome to Dodla Dairy Limited Q3 FY26 earnings conference call. This 0:14 14 seconds conference call may contain forward-looking statements about the company which are based on the beliefs, opinions, and expectations of the company as on the date of this call. 0:22 22 seconds These statements are not guarantees of future performance and involve risks and uncertaintities that are difficult to predict. As a reminder, all participant 0:31 31 seconds lines will be in the listenon mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance 0:38 38 seconds during this conference call, please signal an operator by pressing star then zero on a stone telephone. Please note 0:45 45 seconds that this conference is been recorded. I now hand the conference over to Mr. Bodlas Sunni Reddi managing director. 0:52 52 seconds Thank you and over to you sir. 0:56 56 seconds Uh thank you very much. Uh good morning to all the participants. On behalf of Burlader Limited I extend a warm welcome to everyone joining us on our call 1:04 1 minute, 4 seconds today. On this call I'm joined by our CEO Mr. BK Rei our CFO Mr. Mud Moan Raju and SGA our investor relations advisor. 1:14 1 minute, 14 seconds I hope that uh everyone had an opportunity to go through the financial results and the investor presentation which have been uploaded on the stock exchange and our company website. Uh 1:23 1 minute, 23 seconds during the quarter we continue to maintain a revenue growth momentum and register a top line of,00025 1:30 1 minute, 30 seconds crores with a year-on-year growth of 13.75% backed by strong volumes. This quarter performance uh reflects steady 1:39 1 minute, 39 seconds execution across our core business despite a challenging operating environment marked by weather related impact on product mix and elevated 1:46 1 minute, 46 seconds procurement cost. In this broad broad backdrop, we record an EITA margin of 7.7% and a PAT margin of 6.7%. 1:56 1 minute, 56 seconds On the volume side, we saw an increase in the volumes for milk sales, curd sales, as well as WAP products on a 2:04 2 minutes, 4 seconds year-on-year basis. The increase reflects our volume growth in Dla products aided by the inclusion of Osan's full quarter performance and robust growth in the African business. 2:14 2 minutes, 14 seconds However, bulk sales of S&P and butter drop in negligible levels in Q3 FY26 as compared to 72 crores in the same 2:23 2 minutes, 23 seconds period last year. This indicates that the entire growth is driven by liquid milk and product sales. Additional value added products like ghee, lassi, 2:32 2 minutes, 32 seconds buttermilk and ice cream etc. which carry higher margins had a lower sales contribution during the quarter on a 2:39 2 minutes, 39 seconds sequential bas basis due to the onset of earlier winters and severe winters on a year-to-year basis. These products continue to deliver healthy growth. 2:48 2 minutes, 48 seconds Typically, our procurement costs come down with the arrival of the flush season. However, the trend was reversed this time around and we saw about a 2.5 2:58 2 minutes, 58 seconds rupees per liter sequential increase in procurement cost. This was primarily due to an industry-wide shortage of milk supply caused by erratic rain rainfall 3:07 3 minutes, 7 seconds last year. This increase in price was even higher in regions where we have stronger presence. For instance, Maharashtra increased to about 10% and 3:15 3 minutes, 15 seconds the other four states it was around 6 to 7%. The increase in cost was not fully passed on to the selling price only to the subdued demand during the winter 3:24 3 minutes, 24 seconds season. Therefore, focusing on maintaining market share. This created additional pressure on the gross margins. The pricing strategy is in line with industry trends and we expect the 3:33 3 minutes, 33 seconds situation to improve in the upcoming quarters. With a combination of these above factors, we have registered a gross margin of 26% as against 28.2% in Q3 FY25. 3:44 3 minutes, 44 seconds We expect some pressure to persist in Q4 FY26 with a revival anticipated as we move into summer. We also took a 3:53 3 minutes, 53 seconds one-time provision of approximately 6 crores during the quarter towards the revised labor code guidelines which was counterbalanced by a positive impact of 4:01 4 minutes, 1 second tax reversal relating to earlier years of rupees 22 crores due to a favorable order at ITAC. Uh in Africa we delivered 4:09 4 minutes, 9 seconds strong year-on-year revenue growth of 34.5% during the quarter driven by a focus and expansion in Kenya markets. We 4:17 4 minutes, 17 seconds are currently pricing our products competitively to gain market share and scale. Uh they uh in the 9 months ended 4:25 4 minutes, 25 seconds uh of Africa operations we have done uh uh well in terms of our operations we have actually increased our AITA from 31 4:34 4 minutes, 34 seconds crores to 39 crores. Although as a percentage it might seem slightly on the same percentages our profitability has increased in the 9 months. We see a 4:43 4 minutes, 43 seconds strong growth potential in East Africa dairy markets and towards that we are planning for a green field expansion project in Uganda where we secured a 4:50 4 minutes, 50 seconds land parcel of 70 acres. We plan to do an indicative capex of around 50 to 60 years over a span of 2 years. With this 4:57 4 minutes, 57 seconds we expect to expand our market share in East Africa from low single digits to high single digits. This will help Kla D 5:05 5 minutes, 5 seconds in capturing growing marketing opportunities in East African dairy sectors in the long term. Coming to orgraphy, this business continues to 5:13 5 minutes, 13 seconds deliver stable performance with double-digit growth. The revenue for the quarter grew by 16% with a neat margin of 11.6. In Q3, there was increasingly 5:22 5 minutes, 22 seconds pressure on the raw material prices for the feed business which we did not pass on immediately to the customers to maintain farmer relationship. This resulted in some additional pressure on 5:31 5 minutes, 31 seconds the margins. We will be increasing our volumes and growing this business for the 9 months. The orga business has done 5:38 5 minutes, 38 seconds well from a 13.4% 4% AITA margin to around 14.3% AITA margin which is roughly an increase of EIA from 13 5:46 5 minutes, 46 seconds crores to 17.6 crores as an absolute number. We continue to focus on product innovation. We have recently launched new offerings such as masala paneer 5:54 5 minutes, 54 seconds chocolate zone property milk cake and new flavor ice cream variants. As a peopledriven business a priority remains a strong farmer and customer 6:02 6 minutes, 2 seconds relationship. We are hopeful that we will reap the benefits of this healthy relationship in the upcoming quarters. 6:08 6 minutes, 8 seconds With this brief I now hand over to our CEO of our company Mr. Bri. Thank you very much. 6:15 6 minutes, 15 seconds Thank you Mr. Sunili. So I will now walk you through consolidated performance highlights of our business. During the 6:23 6 minutes, 23 seconds quarter our meal procurement stood 18.3 lakh liters per day which is an increase of 7.5% yearon-year basis. The average 6:31 6 minutes, 31 seconds procurement cost in Q3 FI26 stood 39.8 8 per liter as 37.3 per liter in the 6:39 6 minutes, 39 seconds previous quarter and 35.6 per liter in Q3 FI25. 6:45 6 minutes, 45 seconds However, we did not pass on the entire increase in cost of the customers. Our average milk sales price for the 6:52 6 minutes, 52 seconds quarters stood 57.7 per per liter which was 57 rupees per liter in the previous 6:59 6 minutes, 59 seconds quarter and 55 rupees per liter in Q3 of FI25. 7:06 7 minutes, 6 seconds This was a primary reason for our margin being under pressure during this quarter. We expect to mitigate this situation in the coming quarters. 7:14 7 minutes, 14 seconds Additionally, since there is no increase in our fixed expenses pertaining to the WOM business, we expect margin 7:21 7 minutes, 21 seconds improvement once we start scaling up in terms of revenue. 7:25 7 minutes, 25 seconds So now upcoming product sales mix, our liquid milk sales remained at a healthy level 13.9 lakh liters per day 7:33 7 minutes, 33 seconds delivering a growth of 19.6% on year basis. 7:37 7 minutes, 37 seconds Total value added products stood 258 crores as well as 281 crores in Q3 of FI25. 7:46 7 minutes, 46 seconds Excluding bulk sales, VAP delivered the growth of 23% on year-on-year basis. Cur sales remained stable at 355 metric tons 7:54 7 minutes, 54 seconds per day with a growth of 15.5% yearon-year basis. Other products like ghee, buttermilk, lassi, ice cream, 8:01 8 minutes, 1 second flour milk, etc. had a lower contribution compared to Q2 due to early offset of of winter on on yearon-year 8:09 8 minutes, 9 seconds basis. These projects continue to deliver healthy growth. So speaking to expansion projects, our Maharasa project 8:18 8 minutes, 18 seconds is progressing as per the schedule timelines and is expected to start commercial operation by end of FI27. 8:26 8 minutes, 26 seconds The civil work is under process and 69 crores worth investment is already been done and we also made an decent progress 8:34 8 minutes, 34 seconds towards improving wasam business operational efficiencies. Since after the acquisition we are continuously worked on improving its quality and 8:42 8 minutes, 42 seconds upgrade the infrastructure. This will position Osam to improve its contribution towards overall profitability once we start scaling up the revenues. 8:52 8 minutes, 52 seconds Lastly, as mentioned by Mr. solarity. We are also working towards the green field expansion in Uganda. The project will be 8:59 8 minutes, 59 seconds completed in two-phase manner. The phase one will be compromising uh comprising the uh diverse dairy portfolio including 9:07 9 minutes, 7 seconds flavored yogurt and uh milk variants like you know tone milk, skimmed milk and full cream milk value added products 9:14 9 minutes, 14 seconds also such as paneer, cheese, ghee along with a along with the mineral water. 9:19 9 minutes, 19 seconds Phase two will be expanding a long life milk, ice cream and milk powder. This project is expected to start generating revenue by end of FI28. 9:29 9 minutes, 29 seconds All these initiatives will help us to build a strong base for Dota to capture the continually growing opportunities in 9:36 9 minutes, 36 seconds India as well as Africa and deliver a constituent growth for a longer period of time. We remain committed to discipline, capital allocation and 9:44 9 minutes, 44 seconds long-term value creation for all the stakeholders. So with this now I request Mr. 9:51 9 minutes, 51 seconds Mo Raju to share the financial results. 9:55 9 minutes, 55 seconds Thank you Mr. Bri and a very good afternoon to all the participants on the call. Talking about consolidated 10:02 10 minutes, 2 seconds financial performance in Q3 FI26 revenue from operations for Q3 stood at,025 cr 10:09 10 minutes, 9 seconds we staying a healthy 13.7 yearon year growth compared to 9.1 cr in Q3 FI25. 10:16 10 minutes, 16 seconds Gross profits today 67 crores with a margin of 26%. From this quarter our fixed expenses include impact of OAP in 10:26 10 minutes, 26 seconds fullness. Employee expenses for the quarter increased by 30% to 52 cr on a year-on-year basis. Other expenses 10:34 10 minutes, 34 seconds increased broadly in line with the revenue as a percentage of sales and stood at 135 cr compared to 118 cr in Q3 10:44 10 minutes, 44 seconds FI25. However, in absolute term, there was increase which was primarily driven by the volume growth of 15% on total 10:53 10 minutes, 53 seconds diary value infra addition towards rent, employees, travel and conveyance cost and headc count during increase by 11:01 11 minutes, 1 second approximately 250 employees. Higher transport costs due to a product shift from bulk sales towards liquid milk and 11:09 11 minutes, 9 seconds value added products. AIDA for the quarters today 79 cr with an AIDA margin of 7.7%. 11:17 11 minutes, 17 seconds Depreciation expense increased to 22 cr compared to 20 cr in the same quarter last year. Other income for the quarter 11:26 11 minutes, 26 seconds grew by 8.3% to 12 cr on a yearon-year basis. During the quarter, we recorded 11:33 11 minutes, 33 seconds exceptional items of 5.7 cr representing a one-time impact due to an increase in gratitude liability arising out of past 11:42 11 minutes, 42 seconds service cost on account of changes in labor laws. Additionally, we received 21.8 8 crores of tax reversal relate 11:51 11 minutes, 51 seconds into earlier year due to favorable order at ITAC uh net profit for the quarter to date 69 cr with net profit margin of 6.7%. 12:02 12 minutes, 2 seconds Now coming to 9 months FI26 performance revenue from operations grew by 8.5% 12:10 12 minutes, 10 seconds yearon year and stood at 351 cr as compared to 2018 cr in previous year. 12:18 12 minutes, 18 seconds Gross profit stood at 8.8 cr up 4 4.4% on a year-on-year basis. Aida for the 12:26 12 minutes, 26 seconds period stood at 255 cr with a bida margin of 8.3%. 12:30 12 minutes, 30 seconds We reported profit after tax of 197 cr with a part margin of 6.5%. 12:37 12 minutes, 37 seconds Thank you. We are open for questions now. 12:45 12 minutes, 45 seconds Thank you very much. We will now begin with the question and answer session. 12:48 12 minutes, 48 seconds Anyone who wishes to ask a question may press star and one on the touchstone telephone. If you wish to remove yourself from the question cube, you may 12:56 12 minutes, 56 seconds press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question 13:04 13 minutes, 4 seconds assembles. The first question comes from the line of kitten from green investors. Please go. 13:16 13 minutes, 16 seconds Yes, you may proceed with your question. 13:24 13 minutes, 24 seconds As there is no response from the current participant, we will move towards the next question. The next question comes from the line of Sanjay Manal from Dam Capital Advisor. Please go ahead. 13:34 13 minutes, 34 seconds Uh hi sir. Uh just have a few questions. 13:37 13 minutes, 37 seconds One specifically regarding the uh when are you expected to take the price hike 13:44 13 minutes, 44 seconds to sort of safeguard from this uh uh higher procurement prices and what quantum of price hike would you require uh uh in the near term. 13:56 13 minutes, 56 seconds Uh basically we will be looking at it more from a point of view of the summer setting in based on the u from a market 14:03 14 minutes, 3 seconds point of view. So as the sales volume start to shoot up, we normally take a price increase because we will have to compensate that lack of milk. But in 14:11 14 minutes, 11 seconds terms the other way around, if procurement does come much earlier and if there is more milk, there will be a reduction in procurement and we will anyhow get the benefit of both. I think 14:20 14 minutes, 20 seconds the arbitrage that we will be looking at at the current moment will be anywhere between two to three rupees as a requirement of the price increase that 14:27 14 minutes, 27 seconds we need to do across the board. Roughly we are now at a 60 61 rupees as an average realization and with the product mix we'll have to make it to 63 or 64 14:35 14 minutes, 35 seconds rupees is where we'll be looking at from a standalone India point. Okay. Okay. 14:43 14 minutes, 43 seconds And uh uh my second question about the value added part uh uh so how should we uh sort of see the entire value added 14:52 14 minutes, 52 seconds part over the next uh uh say few years how it is uh uh likely to grow uh and 14:59 14 minutes, 59 seconds what would be the larger composition of value added I think as of now kurd is the maximum uh of the value added part 15:06 15 minutes, 6 seconds how this will change and will it affect our working capital because our working capital as of now is pretty lean uh will Also suppose if if the valuated part is 15:16 15 minutes, 16 seconds uh sort of higher for paneer and other value added product will it impact a working capital also over the next few years. 15:24 15 minutes, 24 seconds So basically our value added product portfolio has in fact grown from 23% to 25% compared last year to this year 15:31 15 minutes, 31 seconds grown by 2%. It was only the impact of what we had as our bulk sales which I think was close to around 250 or 300 crores that we had last year that is not 15:40 15 minutes, 40 seconds there this year but is showing the overall decline. Otherwise we've been having uh good growth in our value added products from 23 to 25% our milk growth 15:48 15 minutes, 48 seconds has also been growing steadily because of the lack of the bulk volume that we have it is showing a significant drop. 15:55 15 minutes, 55 seconds uh yes they also the despite having a bad uh no summer where there was no summer and we didn't sell our high value 16:02 16 minutes, 2 seconds products we still been able to move our value added portfolio so in my view I think paneer is also beginning to move inch up from our point of view of sales 16:10 16 minutes, 10 seconds which I think has moved from around uh that one term to three four terms ice cream is also moving and kurd will continue to move paneer will be a new 16:18 16 minutes, 18 seconds entrance coming in with a the volume based game that we'll be playing with so that will be the drivers for our value 16:25 16 minutes, 25 seconds added component as a domestic part of India and I think over a longer period like I've always been repeating that 16:32 16 minutes, 32 seconds that it'll have a around a 30 32% can be the targeted value added component in uh 16:39 16 minutes, 39 seconds uh the overall composition uh and on working capital point sir uh how how it would in fact to work 16:47 16 minutes, 47 seconds remaining the same sir because whatever we do we either move it through distributors we have only a very small exposure that we directly sell to the modern retail where it might be a 30-day 16:56 16 minutes, 56 seconds uh payment but that number is very very small. It won't move it will not move the needle at all. It is only the bulk commodity of the working capital will be 17:04 17 minutes, 4 seconds required for uh okay sir uh thanks thanks for the answers. 17:11 17 minutes, 11 seconds Thank you. The next question comes from the line of Adita from securities investment management please go. Yeah hi sir thanks for the opportunity. 17:20 17 minutes, 20 seconds Uh so I just wanted to check how the procurement prices trending in uh Q4. So generally we see Q4 has higher procurement prices than Q3. So is it the case uh this year as well? 17:32 17 minutes, 32 seconds Uh you see I think Q3 itself prices have gone up. So Q4 is only a marginal difference of prices. This is what we 17:39 17 minutes, 39 seconds anticipate our summer prices to be. that is after the March season that we see and unless there's going to be a significant drop in milk, we don't see any more further price increases happening in uh Q4. 17:52 17 minutes, 52 seconds Understood. Understood sir. And so secondly now this Africa expansion uh so just wanted to understand how big a 17:59 17 minutes, 59 seconds capacity we are putting in Uganda and from what I understand we already have a good market share uh in Uganda. So this 18:06 18 minutes, 6 seconds cap capacity is uh for any other country or for Uganda only. 18:13 18 minutes, 13 seconds It's basically for Uganda only. What was earlier that we have as our capacity is for the flush the variations that we have as earlier capacity and that was 18:21 18 minutes, 21 seconds predominantly designed for our long life milk. The newer expansion is for entering into a whole new category of pasturized and day-to-day milk. Mr. BBK will explain it more in detail for you. 18:31 18 minutes, 31 seconds Uh yes see in Uganda especially know we are see planning only for Uganda market only in Uganda I know the see fresh milk 18:39 18 minutes, 39 seconds sales is very dominant actually lose milk sales is more you know especially in compala city so our existing plant is 18:46 18 minutes, 46 seconds you know more than 300 km away from the compala city now what we acquired land is you know is closer to the compala city capital city 100 km closer to the 18:54 18 minutes, 54 seconds city so there we are planning a fresh milk in the compala city because we have a lot of scope because the local dair is also Fresh milk is selling and one more 19:03 19 minutes, 3 seconds yogurt you know capacity is already full the existing plant and yogurt plant also now we are planning you know bigger yogurt plant in the new capacity and 19:12 19 minutes, 12 seconds apart from that also we are planning you know see maybe in future phase two you know ice cream mineral water and some 19:19 19 minutes, 19 seconds Indian products like paneer some ghee see because a lot of Indian population also is there so we take it up this is know phase one and phase two 19:28 19 minutes, 28 seconds understood sir and sir what is the uh capacity for this expansion and what kind of revenue potential would be possible on full utilization. 19:37 19 minutes, 37 seconds So this now the new plant what we are planning now we are planning to set up a three lakh lit capacity 19:49 19 minutes, 49 seconds yeah doubling the existing capacity and revenue you can roughly look at it at being around that 60 rupees liter kind 19:56 19 minutes, 56 seconds of a scenario. So even if we do around one lakh we can go to the 100 crores 150 crores to start with. 20:04 20 minutes, 4 seconds Understood. And if you have to understand what is the current market share in Uganda? 20:08 20 minutes, 8 seconds Uh that is a very difficult question because what happens is is the unorganized loose milk that is extremely large to get specific data but I think 20:16 20 minutes, 16 seconds we can still look at it as a reasonably large in terms of you know 3 to 5 lakh liters as the market that we are targeting as in this fresh and uh 20:25 20 minutes, 25 seconds pasteurized milk segment along with the yogurt. In yogurt we are we are significant number one actually see the yogurt market you know if you see in a 20:32 20 minutes, 32 seconds bural Uganda yogurt market is only roughly about know one lakh lit and then know 50% almost 40 to 50% we are doing 20:40 20 minutes, 40 seconds yogurt market see this this fresh milk you know fresh milk it is totally still it is unorganized 20:47 20 minutes, 47 seconds understood sir understood uh sir uh next was an orga feed uh so if I look at your revenues they have stagnated around 40 20:55 20 minutes, 55 seconds kores for the three quarters. So just wanted to get a sense how is all of you doing now? Uh because I think we were guiding for I don't know 180 to 200 21:04 21 minutes, 4 seconds kores this year but I think we'll fall short on that. So just wanted to get some sense how are you doing on that front. 21:11 21 minutes, 11 seconds So basically or feed like we have always been saying that this year has been a weather anomaly of the summer not existing which is also a peak sale for 21:18 21 minutes, 18 seconds orga when there is no cattle feed available shortage will be there and concentrate feed also increases. In spite of that we've been continuing to 21:26 21 minutes, 26 seconds do so. So the differential will only be off by a kind of a one month of a difference in terms of revenue. I think already we are seeing uptake increase coming in in Jan itself we are moving 21:35 21 minutes, 35 seconds from our 5,000 crores to 6,000 tons of give specifics. Last year if you see Arafield quarter of quarterize revenue 21:44 21 minutes, 44 seconds which was very um like 31 32 34 and 33 average around 33 crores but if you see 21:50 21 minutes, 50 seconds current quarter we are at on quarter basis there is 16% of growth 22:00 22 minutes in the revenue and on 9 months period also there is always a 24% of growth in the revenue. Even if you see bottom line 22:07 22 minutes, 7 seconds also even for the quarter little lower side but if you see 9 months period we are at 13.4% of uh eida increase to 14.3 22:16 22 minutes, 16 seconds in absolute terms from 13 crores to 17 crores. So that is almost 33% of growth in the eida itself in the ara field we 22:25 22 minutes, 25 seconds are going in the right direction as of now but we agree that there is 1 cr of shortfall in the current quarter. 22:32 22 minutes, 32 seconds Sure sir understood and sir what was the revenue and aida for usam uh this quarter 22:39 22 minutes, 39 seconds uh I think this is a full quarter and muri will just be giving you the specific sir yeah the revenue for the last last time 22:46 22 minutes, 46 seconds we had only 2 months that is 52 crores for the current quarter it is 80 crores is the revenue and a beta last time it 22:53 22 minutes, 53 seconds is 1.3 but this time it is only 85 lakh because of so much of streamline was there and sap implemented and 23:00 23 minutes infrastructure was also increased Understood siring some uptake in the market. 23:09 23 minutes, 9 seconds Got it. And lastly, sir, what was the question? 23:12 23 minutes, 12 seconds Mr. Arit, we request that you to return to the questions for the follow-up questions. 23:20 23 minutes, 20 seconds Thank you. A request to all participants, please restrict your question to one per participants. For more questions, please rejoin the queue. 23:29 23 minutes, 29 seconds The next question comes from the line of Anuda Jooshi from ICICA securities. Please word. 23:35 23 minutes, 35 seconds Yeah. Uh thanks for the opportunity and uh sir uh congrats for a good set of numbers considering the macro 23:42 23 minutes, 42 seconds environment. Uh two questions. Uh there is a expectation of El Nino uh in this year. Uh so how do you see the milk 23:51 23 minutes, 51 seconds prices because mostly it may result in higher summer days or maybe weaker rainfall also. So if that happens u how 23:58 23 minutes, 58 seconds are we protected? And then second question how are the cooperatives reacting to the milk inflationary situation means uh have they been uh 24:07 24 minutes, 7 seconds proactive in terms of taking price hikes or uh uh there has not been uh much price hikes. So how do we uh see the 24:15 24 minutes, 15 seconds situation from a competitive perspective also? Yeah thanks thanks for my sake. 24:20 24 minutes, 20 seconds Thank you very much Andida. uh basically for you know in preparation of our Maharashtra itself we have added a lot more capacity in terms of procurement 24:28 24 minutes, 28 seconds chilling centers BVK will also give you the specifics as we go forward it is as an ongoing scenario but to your question if there's an elino and there is a 24:36 24 minutes, 36 seconds severe summer that comes in and if the gap between the sales and the procurement does keep on increasing there will be no other option but to 24:44 24 minutes, 44 seconds pass on the impact of cost to the customers and it will happen as a regular process that goes on if the severe El Nino does come in uh if not 24:52 24 minutes, 52 seconds and if it is a regular year and I think if it is my personal opinion that if the farmers have become more organized and if we don't see that much of an impact it will maintain status quo and we will 25:02 25 minutes, 2 seconds be able to take a price increase in the summer for as the regular other value added products will start to increase the elino summer days are good which we 25:09 25 minutes, 9 seconds missed in the current year financial year which what we missed in the current financial year coming to the cooperatives it is becoming a little 25:16 25 minutes, 16 seconds more h I mean I think everybody is sort of maintaining a status score not much of a difference. Maybe Amul might have done a little corrections here and there 25:25 25 minutes, 25 seconds but otherwise I think everybody is maintaining a status quo and more or less waiting to watch and see how the midFebruary end or the beginning of 25:33 25 minutes, 33 seconds Marches will start to turn around in terms of temperature, climate and weather. BBK will explain a bit more in terms of the procurement and how we are trying to see to improve our 25:41 25 minutes, 41 seconds procurement. uh Anura if you see know last year entire year from January to December we added roughly about 51 25:48 25 minutes, 48 seconds locations in the procurement so majority you know CMC's and some chilling centers all that improv whatever we added in 25:55 25 minutes, 55 seconds this last financial year that is going to reflect in this coming years so we I think you know the kind of impro what we added so any kind of situation you know 26:04 26 minutes, 4 seconds we'll be self-sufficient in our procurement maybe any cost you know depends upon the overall market scenario but as far As the volume is concerned, 26:12 26 minutes, 12 seconds know that we have done enough since flaw so we will not run short of any procurement. 26:18 26 minutes, 18 seconds Yeah sure sir this is uh extremely comforting. Just one uh uh point uh this year has been a bit softer for value 26:25 26 minutes, 25 seconds added products considering the rainy season uh started early and in fact it ended also pretty late. So for next year 26:33 26 minutes, 33 seconds do we see higher potential uh in the uh value added products especially ice cream and uh curd 26:42 26 minutes, 42 seconds uh more than ice cream we are confident that our paneer and kurd will move up the sale and Osam also which we have acquired has a little lower in terms of 26:50 26 minutes, 50 seconds value added products there as a consolidated but I think from a standalone of India minus Osam we will increase our paneer kurd and because the 26:58 26 minutes, 58 seconds summer comes as we're saying elino the what we missed out on the first quarter of this year we'll again come back and we'll be showing stronger growth and uh 27:06 27 minutes, 6 seconds I think it'll do well for us this year this is very helpful many thanks thank you 27:14 27 minutes, 14 seconds thank you the next question comes from the line of Jane from Vidia set managers please go ahead 27:23 27 minutes, 23 seconds yeah hi uh good morning sir so uh I have two questions the first one is uh uh 27:30 27 minutes, 30 seconds specifically with respect to paneer which is very small right now but growing at a very healthy clip and uh as 27:38 27 minutes, 38 seconds a byproduct we are also getting whey so uh and India as a country anyways uh 27:45 27 minutes, 45 seconds we have lower protein consumption per capita so overall how are you thinking about uh growing both paneer as well as 27:53 27 minutes, 53 seconds whey going forward uh for us see paneer will not be know compared to say in terms of whey Paneer 28:01 28 minutes, 1 second we will not be having that much of paneer in the next one year that it will come to the extent of looking at whey in the summer months we anyhow used the whey into our other fermented products 28:10 28 minutes, 10 seconds as a regular operational process that we do we have now moved from a let's say a one ton scenario to a three and a half four tons kind of a daily sales of 28:18 28 minutes, 18 seconds paneer which we are trying to see if we can push it more in terms of growth I think the way game will come in once we move significantly larger to 10 15 tons 28:27 28 minutes, 27 seconds of paneer per day is when we will start adding the the weight requirement that is as far as the operation concern in 28:34 28 minutes, 34 seconds terms of protein requirement coming from our the operations of what we are looking currently as a standalone but also the other opportunity that we have 28:41 28 minutes, 41 seconds is OSAM where currently it is only 13% of Osam sale is value added products which we think we can also see a 28:48 28 minutes, 48 seconds significant uh uptake there even if you move it back to the 20% or so the overall size that will also significantly add to terms of the 28:56 28 minutes, 56 seconds overall uh uh value added portfolio as we go forward in the days to come. So paneer and way that is to your question 29:03 29 minutes, 3 seconds and I think from a protein point of view we are all waiting to see significantly if it is going to move from a a niche product to a little bit more of a mass 29:12 29 minutes, 12 seconds product and if it does even show some tractions I think most of us are ready to immediately be able to get into the higher protein market because it's uh 29:20 29 minutes, 20 seconds it's not a very complicated uh part on the manufacturing side. It's more on the placement and the demand optics side 29:30 29 minutes, 30 seconds and the structure. So the second question is with respect to Maharashtra given that uh next year uh we will start 29:39 29 minutes, 39 seconds uh the commissioning or we'll we'll commission our factory. So uh given that you can keep increasing procurement in 29:47 29 minutes, 47 seconds that uh geography uh to begin with what could be the like the ramp up uh plans 29:55 29 minutes, 55 seconds in Maharashtra uh because you are already doing lot of procurement in that state. 30:02 30 minutes, 2 seconds No right now we are doing around two two lakhs two lakh 10,000 procurement for Maharashtra we have planned you know so this financial end of this financial our own procurement will be around five 30:10 30 minutes, 10 seconds lakhs. So the infra we already creating we have taken enough manpower the people are in the field and we keep on expanding we're adding new ceiling 30:18 30 minutes, 18 seconds centers. So before commencing our plan you know we will have in maras roughly about five lakh lit 30:27 30 minutes, 27 seconds addition will be another three lakhs existing is two lakhs so additionally there will be three lakhs procurement in this financial year that is from a Maharashtra point alone sir. 30:38 30 minutes, 38 seconds Understood sir. Thank you sir. Uh and all the best. Thanks. 30:44 30 minutes, 44 seconds Thank you. The next question comes from the line of Abhishek Matur from systematic group. Please go ahead. 30:51 30 minutes, 51 seconds Yeah. Thank you for the opportunity. Uh first question is on the Uganda capacity expansion. Uh so what is the current utilization for Kenya and Uganda if you 31:00 31 minutes can give and also for India. uh what will how will this 50 to 60 cr be funded uh through will it be through internal approvals and when is the plant uh 31:08 31 minutes, 8 seconds commencing for Uganda that's my first question okay uh so thank you very much see basically what is happening is our Kenya 31:16 31 minutes, 16 seconds plant is also reaching almost full capacity utilization Uganda although we have a capacity that we keep declaring 31:23 31 minutes, 23 seconds as uh three lakhs effectively from a cur point of view that plant has reached its own uh fulfillment and the UHD lines and 31:32 31 minutes, 32 seconds the other lines that we have still have that growth of capacity but like Mr. the DVK explained earlier. Now this we are looking at getting more of the opportunity of the fresh side of milk 31:40 31 minutes, 40 seconds and considering both the distance that is required and the pasturized milk segment which is larger than the UHD 31:48 31 minutes, 48 seconds segment in Uganda. We want to be in the whole milk cycle of the Ugandan uh country and I think by going into the fresh milk we'll do well. uh and also as 31:56 31 minutes, 56 seconds DBK was saying earlier this gives us opportunities because now we've got a well- entrenched uh sales distribution and collection scenario with even the 32:04 32 minutes, 4 seconds addition of the other things although it might be small like uh mineral water or the ice creams in the days to come we will be a significantly large player 32:11 32 minutes, 11 seconds there so that is the reason why we are looking at it as an expansion to make sure that even know the next five six years we will be able to be very comfortable without looking and also 32:20 32 minutes, 20 seconds diversify our portfolio into other Indian products like paneer which can cater to the local population as well as the Indian diaspora. Now bringing it to 32:28 32 minutes, 28 seconds the point of the uh capital requirement, we generate healthy profits in Uganda and we will redeploy only those profits. 32:34 32 minutes, 34 seconds We don't need any additional money unless we see some opportunity of interest arbitrage or any other such things. Otherwise we have enough of 32:42 32 minutes, 42 seconds internal approvals to take care of our own requirement of capital growth. Uh and so when is the plant commencing? 32:51 32 minutes, 51 seconds Uh two years from now. So we think it'll be in the end of the financial year 28. 32:58 32 minutes, 58 seconds Great sir. And just one last bookkeeping question from me. If you can give the console overall uh realization and the VAP realization for the third quarter. 33:06 33 minutes, 6 seconds Well the console for third quarter realization and VA realization console right sir. 33:12 33 minutes, 12 seconds The console realization is uh is 59 rupees console. Okay. Standalone for the quarter is 60.3. And when you talk about 33:21 33 minutes, 21 seconds only milk realization uh is uh 58.15 for the standalone 33:28 33 minutes, 28 seconds console 57.68 hands up for VAP. 33:34 33 minutes, 34 seconds Okay for the for the VA concern just I just mod will give you the details for the VA realization and 33:42 33 minutes, 42 seconds VA realization in the India per liter is basically it's a mix of 251 for the value order products f it is around 486 33:51 33 minutes, 51 seconds rupees uh and at the console level sir for the VA 33:58 33 minutes, 58 seconds uh VA it is a mix only that's what the console level we that will be the console level at level only but DDL 34:06 34 minutes, 6 seconds India it is only if you talk about only uh DDL VA it is 65 rupees because more depends on the product mix LDL it is 34:14 34 minutes, 14 seconds only 82 rupees and fat products it is 486 for DDL India unders understood so maybe I'll take it 34:21 34 minutes, 21 seconds offline just a final one uh in response to an earlier question you said that in Maharashtra you will have five liters per day by the end of the current 34:29 34 minutes, 29 seconds financial year uh before commencement of the plant where is this five lpd where is Three extra LPD coming from just wanted to clarify that 34:37 34 minutes, 37 seconds see the surrounding districts only we are see targeting only from our main plant 150 km radius. 34:44 34 minutes, 44 seconds Say we have you see we are we are setting up plant you know closer to the solar pore 30 km before solar pore and we are concentrating only couple of 34:52 34 minutes, 52 seconds districts closer to the plant. So radiuses are applicable to 150 to 175 km radius we are concentrating and to add 35:00 35 minutes to it that there is plenty of availability there and that's the reason we have also started that infrastructure like we explained earlier of these CMCs and chilling centers that we are being 35:08 35 minutes, 8 seconds creating. So that I think we will have it's a balancing act of when the plant comes closer to production when do you push your procurement so that is the way it will go forward. 35:18 35 minutes, 18 seconds All right sir thank you for the uh responses and all the best. Thanks. 35:22 35 minutes, 22 seconds Thank you. Thank you. The next question comes from the line of Pravin Kumar from Equities Capital Advisor. Please go ahead. 35:30 35 minutes, 30 seconds Yeah. Hi. Uh thanks for the opportunity. 35:32 35 minutes, 32 seconds I had a couple of questions. Uh the first one was on the procurement uh in terms of uh the X OSAM kind of a 35:39 35 minutes, 39 seconds procurement growth. So there uh that uh that growth seems to have been only about 1% 1.2% yearonear. So just wanted 35:47 35 minutes, 47 seconds to understand despite the contribution of Maharashtra to the procurement uh if this uh XO OSAM procurement has only 35:54 35 minutes, 54 seconds grown 1.2%. Does that indicate that uh procurement is the non-M Maharashtra kind of soccer field has kind of taken a 36:03 36 minutes, 3 seconds dip during the year and if you could throw some light on that uh no last year also it was inclusive of Maharashtra which Maharashtra also had I 36:11 36 minutes, 11 seconds think 1.5 or 1.6 lakh liters of procurement was already there. This was it was not that came in the current year. Current year maybe it increased as 36:20 36 minutes, 20 seconds it was only that OSA that came in as additional. Yes, like we were saying the whole reason of the shortage of milk in terms of the flush season there has been 36:27 36 minutes, 27 seconds absolutely no flush. It's been continuing to maintain only a flattish kind of growth of in terms of no growth or being very flat in terms of volume of 36:36 36 minutes, 36 seconds milk and that is the reason why the the whole reason of the price is increasing sir. So excluding OSU DDL India the growth of the procurement is 3.74%. 36:47 36 minutes, 47 seconds Q3 right? Okay. 36:53 36 minutes, 53 seconds Right. Right. No I I was looking at more from a Q3 to Q3 perspective that that growth seems to have been to flat 1% down it is always a flat. 37:04 37 minutes, 4 seconds That's the whole reason like last year there was a what we call as a flush available. This year there has been absolutely no flush. 37:10 37 minutes, 10 seconds or yeah unders understood and the other quick question was on the margins right say I think for a 9 month basis the beta 37:17 37 minutes, 17 seconds margin is somewhere around 8.3%. So just wanted to understand you know in previously you had talked about margin ranges being between 8 to 9% to 11%. So 37:26 37 minutes, 26 seconds do you still think you know given the current challenges uh is that that that is a range that can be maintained over the next two to three years or you will 37:34 37 minutes, 34 seconds look at it that will be the range like I said it's always you know it's one quarter issue like we had in fact it's a uh summer quarter not having the rains 37:42 37 minutes, 42 seconds as well as the winter not having flush it's a very you know unique kind of a scenario and even in that scenario we've been able to maintain our average uh 8% 37:51 37 minutes, 51 seconds margin so it is only optimism that it can only go up and not come down so in a good year like last year it will go up to the 10 11%. If it is a bad year it 37:59 37 minutes, 59 seconds will move up to the 8 9% kind of a margin which we have been saying all the time. Understood. Thanks for the response. 38:08 38 minutes, 8 seconds Thank you. The next question comes from the line of Deepak from Unifi Capital. Please go ahead. 38:15 38 minutes, 15 seconds Hello sir. Thank you for the opportunity. So first question uh how much was the India volume growth x of 38:22 38 minutes, 22 seconds osam in liquid milk and uh in VA separately yeah India uh total overall growth including the bulk business milk is 4%. 38:34 38 minutes, 34 seconds Excluding uh milk that is vap is minus 3 because these are the last year we had around 312 course of the bulk business. 38:41 38 minutes, 41 seconds If you exclude the bulk with regard to the milk business we have gone by 3%, and uh non-milk 3%, so 3.5. So overall 38:51 38 minutes, 51 seconds average also 4%. But if you see the excluding the bulk the revenue when you talk about so 9% was the growth in the 38:58 38 minutes, 58 seconds milk and 11% was the growth in the uh non milk without bulk. So overall the revenue was increased by 10%. 39:08 39 minutes, 8 seconds Now so the followup question to this is you know what's the company doing to increase the growth rate in terms of distribution touch points or uh 39:17 39 minutes, 17 seconds sacrificing on pricing because the growth rate uh for the company has fallen quite a bit. So if you can give some sense on this and uh second 39:26 39 minutes, 26 seconds question is uh you know the margin trajectory that you spoke about that this quarter would be the lowest uh how should we look at it from a margin 39:35 39 minutes, 35 seconds standpoint from Q4 and next year given that you have variable moving parts uh procurement prices your own price hikes 39:43 39 minutes, 43 seconds competition so how should we view growth and margins both so I think uh we have no doing this 39:51 39 minutes, 51 seconds lower volume growth for us I think is actually we're taking it as you know even a tough year where we have lost to an entire summer and also having a price 39:59 39 minutes, 59 seconds pressure in the winter time we are able to maintain at least a four five% growth I think is more from a point of view of what the work has been done in terms of brand brand recognition and deeper 40:08 40 minutes, 8 seconds penetration that is happening and I think it depends again right if there slight improvement in seasonality and this should have been a little more come 40:15 40 minutes, 15 seconds up to the 78% very easily uh entire summer quarter that was lost is the reason why the overall is dropping thing and also a good reasonably bitter winter 40:24 40 minutes, 24 seconds that has been existing now and we expect that to come back to the 8 10% of volume which we always keep saying that is in the short in the little longer term 40:31 40 minutes, 31 seconds short term for this quarter we will know by end Feb or March we can see what the uptakes and volumes are going to be like 40:38 40 minutes, 38 seconds now uh the other question coming to the margins the margins that we're looking at I think we'll be able to maintain this 8 8 40:46 40 minutes, 46 seconds and a half% margins for the coming quarter also with a consolid level of all all Africa and all that and uh there 40:54 40 minutes, 54 seconds might be a slight dip from the India side because if you look at HR foods it will be a little larger in terms of two quarters and there'll be a lower margin 41:01 41 minutes, 1 second there since we set it right so that might bring it down a bit uh in terms of the overall but it'll be very small overall we will be able to maintain 41:08 41 minutes, 8 seconds these uh uh 8 to 9% margins for the fourth quarter and for a year awesome got it and so uh you mentioned 41:17 41 minutes, 17 seconds about the Maharashtra procurement plan so if you can uh talk about the revenue plan from Maharashtra uh from uh 41:25 41 minutes, 25 seconds starting the first year. Uh how much how much revenues do you expect to come and is it entirely B2C milk, B2B milk and 41:34 41 minutes, 34 seconds what kind of margins would you make in the first year? Uh considering the product mix and also the manufacturing cost that you'd have to intake. 41:42 41 minutes, 42 seconds So roughly we can look at a 500 to 600 cr of revenue in the first year coming in because I look at it very simply as a BVK said even a three lakh increase with 41:51 41 minutes, 51 seconds a 200 cr per lakh liter even if I consider it to be base commodity kind of a business also that will give that kind 41:58 41 minutes, 58 seconds of 500 kind of cr of revenue that again I'm giving you two sides one side saying if it is only a pure commodity and we are stuck with a 3 to 5% kind of an 42:06 42 minutes, 6 seconds ebita margin that can add the three the 500 600 crores into 3% will be the 18 20 crores of EIT. If the volume of other 42:15 42 minutes, 15 seconds products and sales comparatively in the matching size go up even a little more because even local sales of Sholakur will start and we will be in the initial 42:23 42 minutes, 23 seconds feing time that can also move up to 76 7% as in just that piece of the operation itself because we will also be 42:30 42 minutes, 30 seconds pushing more of the consumer ghee and other such things. So the variation can be if it is pure only bulk and nothing we do also can be between 3 4% or 5% and 42:39 42 minutes, 39 seconds it can move to 7 8% as a regular operation. So that is the range that it will be at and considering the 500 to 600 cr kind of a top line purely Maharashtra additional. 42:49 42 minutes, 49 seconds Understood. And sir from Uganda what should be the similar uh financial trajectory looking like from for the new 42:57 42 minutes, 57 seconds plant that we're putting up. Uh the top line that we should build in and uh the margins I suppose are higher in Africa. 43:04 43 minutes, 4 seconds Yes sir. So Uganda because it's still two years away. We'll have to wait and see exactly what will pan out by that time. But we are going at it now at least to start with in a year of 43:13 43 minutes, 13 seconds operations commencement adding at least 100 cr of revenue and normally in Uganda is also a little higher in terms of rebbitita margins. We can think of 15% 43:22 43 minutes, 22 seconds kind of revita margins on what we are going to be adding in the year one of operation itself. So in a couple of years as soon as the plant turns on that 43:30 43 minutes, 30 seconds is the kind of operation size we're looking at and in the longer term it has also got that much larger potential of growing if it can cross that one and a 43:38 43 minutes, 38 seconds half lakh liters kind of a milk and product uh portfolio it'll be significantly larger 43:45 43 minutes, 45 seconds s got it last question sir what's the balance amount of capeex spending for the Maharashtra plant how are we looking to fund it and Uganda apart from the 43:54 43 minutes, 54 seconds land how much uh how much capeex would be needed So basically Moody will give the specifics. I think Uganda will as you 44:01 44 minutes, 1 second said it's a two-year long process. We're taking an additional 50 60 crores for Uganda. And regarding Maharashtra, Muri will give you that. We have planned for 280 crores of capex. 44:10 44 minutes, 10 seconds Out of that 69 crores we already spent. 44:13 44 minutes, 13 seconds 212 crores is yet to be spent but all the orders have been placed. 44:18 44 minutes, 18 seconds It's only as the timing of everything coming into place and going and the funding of this would be internal approvals, right? 44:25 44 minutes, 25 seconds uh as of now we are planning for subvention scheme but the application is in process if that happens before March we'll do that we'll utilize that 44:33 44 minutes, 33 seconds otherwise we'll go for the internal approvals as of date we have around 630 crores in 44:39 44 minutes, 39 seconds the bank so we'll utilize that sir thank you so much thanks 44:47 44 minutes, 47 seconds thank you the next question comes from the line of Siddhhat from Chanaka wealth creation please go ahead uh hi thanks Thanks for the opportunity. 44:56 44 minutes, 56 seconds Just wanted to understand you spoke about the milk shortage. A are you seeing a milk shortage being more accentuated in cow milk or in buffalo 45:04 45 minutes, 4 seconds milk? And in that context, yes sir. 45:10 45 minutes, 10 seconds Sir, if you see the milk procurement in the first quarter, second quarter, third quarter, no slightly know overall procurement is coming down in India. 45:18 45 minutes, 18 seconds Even in the buffalo milk also see not much of growth. See first quarter we have done you know standalone in see DDL you know 16.75 lakhs but second quarter 45:27 45 minutes, 27 seconds it become you know 16 7 and third quarter become you know 15 lakhs so we are now fourth quarter we 45:35 45 minutes, 35 seconds are expecting MC now averaging at only 14 and a half lakhs so again you know the first quarter of the next year so may it may go up so basically our 45:44 45 minutes, 44 seconds buffalo is very very small portion so we are majority only in cows and it's I think it's an overall all the areas the 45:52 45 minutes, 52 seconds impact is there. It's not only been one area here and there at India. 45:56 45 minutes, 56 seconds Got it. And therefore in that context the reason I was asking that is the bulk pack sales that were there this year. 46:02 46 minutes, 2 seconds How should one think about those in context of the coming financial year? uh you know based on this procurement 46:09 46 minutes, 9 seconds strategy uh do you see those bulk pack sales sort of coming down because they are both margin and working capital 46:16 46 minutes, 16 seconds intensive margin dilutive and yes sir that's we didn't have any bulk this year itself like if you take the 46:23 46 minutes, 23 seconds quarter last year the same quarter we had around 70 crores this year was zero almost negligible it was only 1 we might in fact 46:32 46 minutes, 32 seconds cr we might become net buyers rather than net sellers if there is a remaining shortage in the quarter coming up. So in fact whatever we've been gearing up for 46:41 46 minutes, 41 seconds Maharashtra will only work out positive for us in terms of getting more milk into the system even if the drought sort of tends to continue failing which we 46:49 46 minutes, 49 seconds will then be moving back to our ability of moving into the commodity but as of now we don't see any commodity happening in the near term. 46:58 46 minutes, 58 seconds Got it. The second question was in terms of milk procurement prices being different across states. uh you know 47:06 47 minutes, 6 seconds with Maharashtra having added are you seeing the weighted average price move up uh for your procurement uh and and 47:15 47 minutes, 15 seconds therefore in in context of you know that plan of five lakh liters for a day how should one think of procurement prices on a weighted average basis 47:25 47 minutes, 25 seconds so Maharashtra because it's got a lot more of a commodity players the yo-yo effect is significantly higher in Maharashtra like I said if you compare 47:32 47 minutes, 32 seconds it this year Maharashtra has gone up 10% compared to the rest of the states going by 6%. But when the drop happens, 47:39 47 minutes, 39 seconds Maharashtra also drops significantly. So I think as an average we normally see Maharashtra to be a lower price player than a uh no high price cost player. It 47:48 47 minutes, 48 seconds is only that it goes through that little bit of that high and low seasonality that comes into play. So that is what it will be and it the overall basket will 47:56 47 minutes, 56 seconds always sort of not be significantly larger. It'll be in the averages they'll all be the same. Got it. Thank you. 48:06 48 minutes, 6 seconds Thank you. 48:07 48 minutes, 7 seconds A reminder to all participants. Anyone who wishes to ask a question may press star and one. The next question comes from the line of ma from green edge. 48:17 48 minutes, 17 seconds Please go ahead. 48:19 48 minutes, 19 seconds Um thank you. Um so so clearly this has been you know a challenging quarter and uh if I were to look at you know the 48:26 48 minutes, 26 seconds India standalone numbers and exclude fat revenues right. So uh there's been a challenge here in terms of growth for 48:34 48 minutes, 34 seconds the last 1 and a half years uh almost 2 years now uh right so in FI25 if I were to exclude you know the fat revenues we 48:42 48 minutes, 42 seconds grew at 7%. Uh versus FI24 and even if I look at the first 9 months and if I were to exclude the fat revenues uh from the 48:50 48 minutes, 50 seconds India standalone numbers we seem to have grown in those single digits. Uh so so what is the challenge here in India 48:57 48 minutes, 57 seconds standalone numbers excluding fat? uh are there you know certain uh you know gaps uh or uh you know specific challenges 49:05 49 minutes, 5 seconds gaps in terms of execution which you know we are trying to fix or if you would like to talk about and also in that context uh you know what uh is 49:14 49 minutes, 14 seconds there some market share loss that has happened in the India business because if I look at our peers uh the two southern listed peers right they have uh 49:22 49 minutes, 22 seconds still grown in their uh India business right over the last uh uh almost two years so and also uh your market share 49:30 49 minutes, 30 seconds estimates if any are they based on internal estimates or do we subscribe to any syndicated data like Neielson u yes 49:38 49 minutes, 38 seconds so that it's not syndicated data our market share estimates are only our own but compared to the things that we saying as the volume growth but we look at it as a 49:46 49 minutes, 46 seconds 4% I think even with the listed peers will not be significantly different in terms of it it is only that value ad or the bulk sales that keep uh adding the 49:55 49 minutes, 55 seconds differential of moving it around uh the major issue that we think is that know the cooperators which are normally as comparatively sell it at a less and we 50:03 50 minutes, 3 seconds are more of a I mean the private sector being more at a premium sale the B2B business is not something that we normally get to and I think from the 50:11 50 minutes, 11 seconds overall consumption pattern most of the states we are there that the conversion from unorganized to organized is sort of over and it's only the organized 50:18 50 minutes, 18 seconds consumption growth that we are trying to cater to and keep getting more of the the market share that grows there are no more white spaces that are available that is why we are doing our 50:27 50 minutes, 27 seconds acquisitions and growing into northern India and certain territories that there's more of whites space availability existing markets that is the reason why we look at them as no the 50:36 50 minutes, 36 seconds lower that's the reason that we see lower trends that unorganized to organized is declining a and the B2B going to more of the cooperators on a 50:44 50 minutes, 44 seconds pricing ground and B taking up more of the premium consumer market share is where it will be there 50:51 50 minutes, 51 seconds so uh from the southern markets would it be fair to say that we have fairly you know become like a mature player there is that what you're trying to suggest 50:59 50 minutes, 59 seconds and hence the route to grow in Indian market should largely be you know inorganic uh inorganic yeah from the liquid milk 51:06 51 minutes, 6 seconds side man but I think again we'll have a little more opportunity coming from the product side where the consumption pattern the southern states as the GDPs are growing up more than liquid milk it 51:15 51 minutes, 15 seconds will start adding into the paneer and the uh the the the curd and the lassi and buttermilk those will start moving 51:23 51 minutes, 23 seconds in more the value ad will start moving in a little more and the liquid milk will also move but not in at significant volumes 51:31 51 minutes, 31 seconds right and uh you know the second question is uh on the price hikes uh so I think you did allude to you know the price hikes uh which will be uh taken 51:40 51 minutes, 40 seconds when the summer sets in so would it be fair to say that you know we won't be able to take price hikes before March end or early April which means any uh 51:49 51 minutes, 49 seconds uptick that we see in terms of margin will largely happen in uh you know the Q1 of the next financial year 51:57 51 minutes, 57 seconds uh not that I think the definition of summer is going to be where we'll have to wait and watch. If the the temperatures start moving up in say midfebber, early March, then the uptake 52:05 52 minutes, 5 seconds will start happening from March. Fail in which it will be from April onwards. 52:09 52 minutes, 9 seconds Definitely because I'm sure this cold weather waves are not going to continue from uh know last year to the the current year also and Eli know is what 52:17 52 minutes, 17 seconds the prediction is that it'll be the other extreme now of severe summers. 52:23 52 minutes, 23 seconds So the last question is basically on the Africa business. So for 9 months uh what's been the broad revenue split between Uganda and Kenya and even 52:30 52 minutes, 30 seconds between those these two nations do we see any differential in the margin and also if you could explain that what is 52:37 52 minutes, 37 seconds so we've seen inflation in the African business as well. So typically what is the uh you know seasonality or cyclicality in terms of milk inflation there. 52:48 52 minutes, 48 seconds So Africa also does go through seasonality of the winter rains, monsoon and summer coming in. Uganda is a low volume, high margin country of 52:56 52 minutes, 56 seconds operation. Kenya is a significantly larger volume and uh so comparatively to Uganda maybe 2 3% in terms of margin 53:05 53 minutes, 5 seconds being a lower margin and we also have interplay between Uganda and Kenya as these two countries sometimes when there's a shortage if Kenya allows we 53:13 53 minutes, 13 seconds move more cheaper milk from Uganda into Kenya and if the country does not allow it. So as a combined margin is what we maintain as uh as both as that's the 53:22 53 minutes, 22 seconds reason why we call it as Africa because it's sort of interlin as both the countries. Kenya I think and and my market numbers are just my estimates or 53:29 53 minutes, 29 seconds our company's estimates. We think of it as a 40 to 50 lakh liter kind of a market that is there in Kenya in 53:36 53 minutes, 36 seconds comparison to a Uganda maybe being a 10 to 12 lakh liter kind of a market. So that is where we operate as overall and Muri will give you the specifics of the Kenyan revenue Ugandan revenue. 53:46 53 minutes, 46 seconds Yeah. Overall revenue we had around 354 out of that the major revenue LDL is 229 crores and CDDL is 142 crores. 53:56 53 minutes, 56 seconds LDL being Uganda and CDL being Kenya. 53:58 53 minutes, 58 seconds CDL being India. There will be some interrupting transaction 229 54:06 54 minutes, 6 seconds Uganda Kenya is around 142 and like Mi was saying but we will have intra company like I said earlier sometimes we do sell product from Uganda 54:15 54 minutes, 15 seconds into Kenya also. The overall turnover as a consult is that after the inter company it is 354 crores. 54:22 54 minutes, 22 seconds This is 9 months right? 9 months. Yes. 9 months. 54:27 54 minutes, 27 seconds And so just one followup to the first question. Why don't we subscribe to some uh you know syndicated data like Neielson or something of that sort any specific? 54:35 54 minutes, 35 seconds Most of the data that we have already subscribed is way vastly varying from what they give to what we see on the ground. the compatibility is becoming 54:43 54 minutes, 43 seconds different because company to company definition of the area itself is becoming uh very difficult like for me what Hyderabad city definition is 54:52 54 minutes, 52 seconds whether it's a pin code of Hyderabad or some people will say that the geographical area in terms of a ring road being verified and when we compare 54:59 54 minutes, 59 seconds that to the on ground reality the variations are being significant so that is the reason we do get some data but they're not correlating to what our 55:06 55 minutes, 6 seconds ground uh reality says but we will try to see it and if maybe offline if you can help us in know recommending anything. We'll also try to see how best it can work for us. 55:17 55 minutes, 17 seconds Sure. Sure. And then lastly, just a clarification, Uganda has two to three 200 to 300 bits higher margins versus Kenya, right? Yes. 55:26 55 minutes, 26 seconds All right. Thank you so much. All the best. Thank you ma'am. 55:29 55 minutes, 29 seconds Thank you. A reminder to all participants. Anyone who wishes to ask a question may press N1. The next question 55:36 55 minutes, 36 seconds comes from the line of Ankit Sha from White Equity. Please go. Thanks for taking my question. 55:44 55 minutes, 44 seconds So I just wanted uh revenue and Aida for Africa business for current quarter and same quarter last year if you can. 55:55 55 minutes, 55 seconds Yeah. Current quarter revenue Africa is 133 crores. Last year same quarter it is 56:02 56 minutes, 2 seconds 98 crores. So there is a 34 crores of increase was there. That is almost 35%. 56:08 56 minutes, 8 seconds Second AITA current quarter it is 17 crores last year it is 8 crores that is a increase of 8.7 crores so overall 56:17 56 minutes, 17 seconds there is a 1.5% of increase for the quarter 9 month period if you see 56:24 56 minutes, 24 seconds yes please go 31 crores increase to 39 crores there is a 77% 56:31 56 minutes, 31 seconds increase in the evida revenue 276 crores to 350 54 crores that 56:39 56 minutes, 39 seconds is 77 crores increase that is 28% of revenue increase right so as said our margins have 56:47 56 minutes, 47 seconds actually improved in Africa whether we look at this quarter or 9 months that's right yes sir our revenues have improved in 56:56 56 minutes, 56 seconds sorry our margins have improved in Africa sir as a percentage there might be is lower because they had a significant growth in 57:03 57 minutes, 3 seconds volume but as an absolute number there is they have improved Okay. Okay. All right. Thank you. 57:12 57 minutes, 12 seconds Thank you. The next question comes from the line of Vana from common capital. Please go ahead. 57:19 57 minutes, 19 seconds Uh yeah. Hi sir. So so my question is uh so Dodla has always 57:26 57 minutes, 26 seconds been a basically the first mover in taking price hikes but this time you say that you have not taken price hike to 57:33 57 minutes, 33 seconds maintain market share. So I I just wanted to ask what have other players done in the market in terms of price hikes. 57:40 57 minutes, 40 seconds Nobody has taken a price hike per se because like we said it's normally we have a surplus in the winter months and then there's a more of a procurement 57:48 57 minutes, 48 seconds gain. There's a peculiar time when we didn't have anything in the winter months itself and inter in the winter months itself markets are subdued. I 57:55 57 minutes, 55 seconds think it'll be in another couple of months once we see how the summers pan out that there will be the price increases that will have to be passed on to the customer. So as I think like we 58:03 58 minutes, 3 seconds always say that the impact normally which used to be a quarter which used to take time to decide where they stabilize and pass on this year it is extended not 58:12 58 minutes, 12 seconds for one quarter but maybe for a little more than a quarter that it is there. So we'll have to make that call I think as the following months come into play and we see how the weather patterns play out. 58:22 58 minutes, 22 seconds Okay. Okay. Thank you sir. So next question. So I just wanted to know see all most of the your peers are you know 58:29 58 minutes, 29 seconds increasing their VIAP shares and so how do you see that as a competition currently so VAP even our shares have increased if 58:38 58 minutes, 38 seconds you look at it minus the bulk sales that we have done we have grown from 23% to 25% which is 2% and we keep saying that 58:45 58 minutes, 45 seconds because the overall pie is larger that know it is difficult to say that more than the 2% growth that we look at and also when we look at Osam that we have 58:52 58 minutes, 52 seconds added as an acquisition in the consolidated basis that will bring it down a little more because there Africa has been only sorry Osan and Bihar has 59:00 59 minutes only been 13%. I think once we improve that in the overall we'll show but I think stand alone we have grown from 23% to 25% in uh the VA compared to last 59:10 59 minutes, 10 seconds year in in spite of having a a bad summer where we didn't we didn't sell any of the higher value added VA products like lassi buttermilk and ice 59:18 59 minutes, 18 seconds cream which also came down in spite of that we have grown 2%. 59:22 59 minutes, 22 seconds You got it sir. Thank you so much. 59:26 59 minutes, 26 seconds Thank you ladies and gentlemen. That was the last question for today and now hand the conference over to the management 59:33 59 minutes, 33 seconds for closing comments. Thank you and over to you sir. 59:37 59 minutes, 37 seconds Uh thank you very much uh everyone for joining us today on our earning call. We appreciate your interest in Babla. If you have any further queries please 59:45 59 minutes, 45 seconds contact SGA our investor relation advisor. Thank you very much once again. Have a great day. Thank you all. 59:53 59 minutes, 53 seconds Thank you on behalf of Dla Daily Limited. That concludes this conference. 59:57 59 minutes, 57 seconds Thank you for joining us in now disconnect your lines.