Globus Spirits Limited — Q4 FY26

Globus Spirits Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=Yam8J9bIrTA Published: 5 days ago

0:01 1 second Ladies and gentlemen, good day and welcome to Global Spirits Limited Q4 and FI26 earning conference call. As a 0:09 9 seconds reminder, all participant line will be the listen only mode and there will be an opportunity for you to ask question after the presentation conclude. Should 0:17 17 seconds you need assistance during the conference call, please signal an operator by pressing star then zero on your touchstone form. 0:25 25 seconds I now hand the conference over to Mr. 0:27 27 seconds Suya Sam Shant from Stellar Investor relations advisor. Thank you and over to you sir. 0:34 34 seconds Thank you. Good afternoon everyone and thank you for joining us today. We have with us today the senior management team of global spirits limited Mr. Shikha 0:42 42 seconds Swarup CEO and joint managing director Mr. Paramjit Singh CEO of the consumer division and Mr. Nilandan Sarcar Chief 0:51 51 seconds Financial Officer who will represent Global Spirits Limited on the call. The management will be sharing the key operating and financial highlights for 0:59 59 seconds the quarter and full year ended 31st March 2026 followed by a question and answer session. Please note this call 1:07 1 minute, 7 seconds may contain some of the forward-looking statements which are completely based upon the company's beliefs, opinions and expectations as of today. These 1:16 1 minute, 16 seconds statements are not a guarantee of the company's future performance and involve unforeseen risk and uncertaintities. The 1:22 1 minute, 22 seconds company also undertakes no obligation to update any forward-looking statements to reflect developments that occur after 1:29 1 minute, 29 seconds the statement is made. I now hand over the conference to Mr. Shakhas Faru. Thank you and over to you sir. 1:37 1 minute, 37 seconds Thank you Sash. Um good afternoon everyone and thank you for joining us today for the Q4 and FY26 earnings call. 1:46 1 minute, 46 seconds I assume you've reviewed the investor presentation uploaded to the exchanges and our website. Pam and Nandrian are 1:52 1 minute, 52 seconds also with me on this call. In the year gone by, we have executed a structural overhaul across multiple facets of the 2:01 2 minutes, 1 second business this year and the underlying growth in our core areas is exceptionally strong. 2:08 2 minutes, 8 seconds Let me uh once talk about the fundamental architecture of the business before coming to operational updates. We 2:16 2 minutes, 16 seconds operate our business with a consumer focus built upon a solid manufacturing base. This dual structure allows us to 2:24 2 minutes, 24 seconds innovate rapidly in the Alcob space with the lowest cost of production and the fastest time to market. This is not just 2:31 2 minutes, 31 seconds a structural setup but also a financial engine. The robust cash flows generated by our manufacturing operations act as 2:39 2 minutes, 39 seconds the primary funding mechanism for the aggressive expansion of our consumer business. Our consumer portfolio is 2:46 2 minutes, 46 seconds segmented to drive specific strategic outcomes. Regular and others is our core category. It delivers high volume and 2:55 2 minutes, 55 seconds deep distribution across our core markets of Rajasthan, UP, Delhi and West Bengal offering superior value to the conscious consumer. 3:06 3 minutes, 6 seconds Prestige and above um is our future core category operating at substantially higher per unit contribution. This 3:14 3 minutes, 14 seconds segment is a vehicle for our geographic expansion and is systematically driving up our average realizations per case. 3:22 3 minutes, 22 seconds Within the PNA segment, we have isolated a luxury segment. These brands are not just premium offerings, they're market 3:29 3 minutes, 29 seconds makers designed to define categories and lead consumer trends. We take immense pride in the fact that our portfolio has 3:37 3 minutes, 37 seconds secured 34 national and international awards. 3:42 3 minutes, 42 seconds to quantify the shift that's been taking place in the business in FY26 nearly 40% of our total revenues came from the 3:50 3 minutes, 50 seconds consumer portfolio and within this PNA contributed 16% of the revenue 3:56 3 minutes, 56 seconds um just by example in FY24 the PNA business contributed just 6% of our 4:04 4 minutes, 4 seconds total consumer revenues coming to some manufacturing updates Pam will of course give you a deep dive in 4:12 4 minutes, 12 seconds the consumer um business. I I'll talk about the manufacturing updates now. Um following the commissioning of our UP 4:19 4 minutes, 19 seconds distillery last quarter, our installed capacity base stands at 334 million L peranom. This marks the culmination of 4:27 4 minutes, 27 seconds the capacity enhancement journey we initiated a few years ago. We now operate six highly flexible distilleries 4:35 4 minutes, 35 seconds strategically located across the raw material and consumption hubs of north and east India. For the year we achieved 4:42 4 minutes, 42 seconds a strong 80% capacity utilization adjusting for the up startup period. 4:49 4 minutes, 49 seconds Our multi- raw material multi-product strategy has successfully stabilized our margins delivering 6.2 2 rupees per 4:57 4 minutes, 57 seconds liter IBITA for FY26 um and 8.3 rupees per liter for Q4 FY26. 5:06 5 minutes, 6 seconds I want to proactively address uh some concerns around volume pressure and revenue dynamics observed um in this 5:13 5 minutes, 13 seconds segment for the quarter gone by. Um, we executed a strategic shift in our Bihar and Hartland facilities, transitioning 5:22 5 minutes, 22 seconds from predominantly ethanol production to a mix of ENA and ethanol on the back of lower of ethanol by oil marketing 5:31 5 minutes, 31 seconds companies. Because ENA currently commands a lower market price in ethanol, this shift naturally 5:38 5 minutes, 38 seconds contributed to a slight topline revenue drop. More importantly, the supply and dispatch cycle for ENA is inherently 5:47 5 minutes, 47 seconds longer due to the web of state permissions required. 5:51 5 minutes, 51 seconds This friction resulted in a one-time inventory buildup at our facilities during Q4. This is obviously a timing 5:59 5 minutes, 59 seconds issue and we do not see this as a demand issue. This liquidity um this inventory buildup will get liquidated in Q1. 6:09 6 minutes, 9 seconds Um, additionally, optimizing our raw material feed between maize and rice uh requires certain technical changes. For 6:18 6 minutes, 18 seconds instance, when we run our eastern plants entirely on maze as opposed to rice, the system derates our total capacity by 75 6:27 6 minutes, 27 seconds kl for those units 75 kl per day. This D rating is known is a known operational variable that we actively factor into 6:36 6 minutes, 36 seconds our profitability models when deciding between maze and rice procurement. 6:41 6 minutes, 41 seconds We're obviously optimizing for margins and cash flow and not just absolute volume. 6:48 6 minutes, 48 seconds Um some macro tailwinds and strategic outlook going ahead. We've positioned the manufacturing business to capitalize 6:57 6 minutes, 57 seconds on three distinct trends. First, ethanol blending. Um, we are seeing that the national mandates for ethanol blending 7:05 7 minutes, 5 seconds is on the up. Uh, and we forecast strong and sustained demand growth. Um, second, 7:12 7 minutes, 12 seconds there's a a global ENA arbitrage available. Uh, the current global environment has presented an opportunity 7:19 7 minutes, 19 seconds with elevated global energy costs severely constraining international ENA supply. Um we have actively pivoted to 7:29 7 minutes, 29 seconds exploit this and our facilities in Hana, Bihar and UP are already already operationally geared for large scale ENA 7:37 7 minutes, 37 seconds exports. In Q4 we started this journey and exported 3.7 million liters. This 7:44 7 minutes, 44 seconds opportunity is an additional volume driver for us. 7:49 7 minutes, 49 seconds Um third is obviously the situation in Bihar. We we're actively monitoring the legislative landscape and policy uh 7:57 7 minutes, 57 seconds regarding prohibition. Um if or when that market reopens the first mover advantage should be significant. Um 8:06 8 minutes, 6 seconds because we have a fully operational footprint in the state. Um we are perfectly positioned to take advantage of this opportunity. 8:14 8 minutes, 14 seconds Uh finally I want to provide clarity on u the enabling resolutions for a fund raise. Over the past few months, we have 8:22 8 minutes, 22 seconds proactively engaged with the invest in investor community. These conversations have been highly productive, providing us with a clear validation of our 8:31 8 minutes, 31 seconds strategic roadmap and confirming strong instit institutional appetites for the globus consumer story. 8:39 8 minutes, 39 seconds However, as we move into the execution phase of our FY27 business plan, the immediate necessity for external capital 8:48 8 minutes, 48 seconds has been abated. Two factors have shifted our stance. Uh number one, internal approvals. Our revised business 8:56 8 minutes, 56 seconds plan demonstrate a cash flow trajectory that is stronger than was initially projected around Q2 or Q3 of last year, 9:05 9 minutes, 5 seconds allowing us to self-fund our current growth initiatives. 9:10 9 minutes, 10 seconds Secondly, um debt optimization. We have successfully renegotiated our debt terms fundamentally improving our liquidity 9:18 9 minutes, 18 seconds profile and reducing our cost of capital. Nanjan will talk more about this later today. 9:25 9 minutes, 25 seconds Um while we continue to evaluate opportunities and maintain a dialogue with potential investors within the validity period of our resolution, we 9:34 9 minutes, 34 seconds are in no immediate pressure to dilute equity at this stage. Our priority is clear. We will leverage our robust 9:41 9 minutes, 41 seconds internal engine to drive towards our FY29 goals. Pam, I request you to take us through the consumer business performance. 9:52 9 minutes, 52 seconds Thank you Shaker and good afternoon everyone. 9:57 9 minutes, 57 seconds Starting with the prestige and above the PNA segment, FYI26 delivered a robust aggregate 10:05 10 minutes, 5 seconds performance with revenue increasing 27% yearonear to 164 crores and volumes rising 31% to 1.19 million cases. 10:17 10 minutes, 17 seconds Surpassing the 1 million case mark is a critical milestone for his business. 10:23 10 minutes, 23 seconds However, looking strictly at the blended topline growth masked the true underlying momentum of our PNA portfolio. 10:34 10 minutes, 34 seconds To accurately contextualize our performance and to understand where this business is heading, it is necessary to break down our market architecture. 10:45 10 minutes, 45 seconds Our distribution strategy is built on two distinct classifications, core markets and emerging markets. Now core 10:53 10 minutes, 53 seconds markets are those where we have surpassed three full years of operations. 10:59 10 minutes, 59 seconds These are the engines of near-term volume growth and profitability. 11:04 11 minutes, 4 seconds We currently have five core markets, four of which are already profitable. 11:11 11 minutes, 11 seconds Emerging markets are those in the zero to threeear gestation phase. 11:16 11 minutes, 16 seconds These geographies require foundational investment and are systematically being groomed to transition into core markets 11:24 11 minutes, 24 seconds at which point they will contribute significantly to the top and the bottom line. 11:29 11 minutes, 29 seconds We began this journey four to five years ago and our pipeline is functioning precisely as designed. 11:37 11 minutes, 37 seconds Uh let me chat a bit about the Delhi impact and the underlying growth within our core markets. Delhi has historically 11:45 11 minutes, 45 seconds been an outside contributor representing 33% of our total volumes in FY25. 11:54 11 minutes, 54 seconds In FY26, a specific isolated disruption in Delhi severely impacted our aggregate growth. 12:02 12 minutes, 2 seconds Delhi volumes in Q3 FY26 dropped drastically to 60% of the Q3 FY FY25 volumes. 12:13 12 minutes, 13 seconds While we engineered a sharp recovery in Q4 FY26, bringing Delhi volumes back to 90% of Q4 FY25 levels. 12:24 12 minutes, 24 seconds The Q3 trough diluted Delhi's share of our overall business to 23% for the full year. 12:32 12 minutes, 32 seconds When we isolate and remove the Delhi anomaly from the data, our PNA business grew at an exceptional 58% yearon year. 12:41 12 minutes, 41 seconds This 58% underlying growth rate aggressively outpaces industry benchmarks and demonstrates the immense traction our brands possess where operations are uninterrupted. 12:52 12 minutes, 52 seconds Furthermore, as our emerging markets scale and transition into core markets, our reliance on any single state like Delhi is systematically diluting. 13:05 13 minutes, 5 seconds This provides a structural hedge against state specific volatility and secures a more stable accelerated growth journey. 13:16 13 minutes, 16 seconds Coming to operational and regional updates in Q4 FY26 specifically, PNA revenue 13:24 13 minutes, 24 seconds stood at uh rupees 40 crores reflecting 34% year-on-year growth with volumes of 39% to 0.29 million cases. 13:35 13 minutes, 35 seconds We are executing a clear path towards profitability effectively reducing losses within the segment. 13:42 13 minutes, 42 seconds Overall, the segment generated an AITA level loss of rupees 5 crores in the quarter and rupees 9.4 crores for the year. 13:51 13 minutes, 51 seconds Regionally the north continues to function as our primary springboard followed closely by the east. In the 13:58 13 minutes, 58 seconds north, we have doubled our execution in UP, penetrating deeper into tier three and tier four cities and expanding the 14:07 14 minutes, 7 seconds availability of our portfolio in Hana and Rajasthan. 14:12 14 minutes, 12 seconds We are simultaneously expanding our luxury footprint into smaller affluent markets 14:19 14 minutes, 19 seconds in the east. Following the stabilization of a singing, we advanced into Assam in Q3 and initiated operations in Jarand last month. 14:31 14 minutes, 31 seconds The early data is highly encouraging, validating our strategy to expand our portfolio in these states. 14:39 14 minutes, 39 seconds In Assam, we have already initiated phase two of our geographical spread this quarter, establishing the east as a definitive second growth engine. 14:50 14 minutes, 50 seconds Now coming to regulars and other segment. 14:53 14 minutes, 53 seconds Transitioning to the regulars and other segment, Q4 FY26 revenues stood at rupees 224 crores reflecting a topline 15:01 15 minutes, 1 second growth of 2% yearon year with volumes holding stable at 3.97 million cases. 15:09 15 minutes, 9 seconds AITA for the quarter however outpaced revenue expanding by 8% yearonear to rupees 41 crores 15:17 15 minutes, 17 seconds for the full year FY26 revenue was 900 crores up 4% with volumes at 15.7 million cases and avicta 15:27 15 minutes, 27 seconds delivering a 12% expansion to rupees 158 crores. 15:33 15 minutes, 33 seconds The headline volume growth in this segment requires immediate contextualization as it masks a deliberate and aggressive 15:41 15 minutes, 41 seconds structural overall of our operational footprint. 15:44 15 minutes, 44 seconds During FY26, we executed a strategic windown of our legacy portfolios in key markets, specifically West Bengal and Hana. 15:54 15 minutes, 54 seconds This was a calculated near-term absorption of the volume pressure. We intentionally cleared the channels in these geographies to prepare for the 16:02 16 minutes, 2 seconds deployment of an entirely new highly optimized portfolio in the near future. 16:07 16 minutes, 7 seconds While this transition inherently suppressed our aggregate growth, it was a necessary structural reset. 16:14 16 minutes, 14 seconds That transitional phase is now decisively behind us and the rebasing of this segment is complete. The operational constraints of FI26 have effectively created a coiled spring. 16:27 16 minutes, 27 seconds We are already deploying the catalyst to unlock this pent-up momentum. 16:33 16 minutes, 33 seconds We are highly confident that UP will emerge as a massive growth engine and we have backed that conviction by introducing our full range of brands adding five new SKUs to the market. 16:45 16 minutes, 45 seconds Simultaneously we are attacking the sluggishness in Rajasthan headon. We are sequentially injecting four new to 16:53 16 minutes, 53 seconds category brands to expand consumer choice. reignite category growth and aggressively reclaim market momentum. 17:03 17 minutes, 3 seconds Investors should view the F26 RNO performance not as a plateau but as a foundational exercise. 17:11 17 minutes, 11 seconds With the imminent portfolio injections in West Bengal and Hayana, the rapid scaling of UP and the strategic 17:18 17 minutes, 18 seconds interventions in Rajasthan, we are entering the new fiscal year at a very definitive inflection point. 17:24 17 minutes, 24 seconds I now request London to uh continue with this speech on the financials. Thank you. 17:32 17 minutes, 32 seconds Thank you sir and good afternoon to everyone. Following the strategic overview provided by our joint MD, I 17:39 17 minutes, 39 seconds will now detail the financial mechanics and balance sheet developments executed during Q4 and the fullear FY26. Our 17:47 17 minutes, 47 seconds mandate for FY26 was not just revenue expansion but rigorous balance sheet optimization. We have aggressively 17:56 17 minutes, 56 seconds refined our capital profile to ensure our financial foundation is as formidable as our operational footprint. 18:04 18 minutes, 4 seconds Debt optimization. The most critical intervention this quarter was the optimization of a long-term debt 18:11 18 minutes, 11 seconds profile. We recognized an inefficiency in our cost of capital and executed a comprehensive strategic refinancing of 18:19 18 minutes, 19 seconds our existing term loans. This proactive step acts as a massive catalyst for free cash flow. By leveraging our 18:26 18 minutes, 26 seconds strengthened credit profile to secure superior interest rates and optimizing the repayment schedule, we have systematically reduced our annual debt 18:35 18 minutes, 35 seconds outflow from 67 per core perom to just 14 crore projected for FY27. 18:42 18 minutes, 42 seconds This action alone unlocks 53 crore of direct liquidity in the coming year. 18:47 18 minutes, 47 seconds This is unencumbered cash flow that is immediately available to fund the consumer business expansion entirely bypassing the need for external equity. 18:56 18 minutes, 56 seconds Through this refinancing and broader treasury management, we have driven down a blended rate of interest combining all forms of borrowing by a full 50 basis 19:05 19 minutes, 5 seconds points. Now let me touch uh deleveraging and capital efficiency. While we are expanding our consumer footprint, we are 19:14 19 minutes, 14 seconds simultaneously deleveraging the enterprise. In FY26, we reduced our absolute borrowings by 57 cr compared to 19:22 19 minutes, 22 seconds FY25. We are funding our growth through internal acrals, not the balance sheet. 19:27 19 minutes, 27 seconds The disciplined capital allocation has resulted in a radical improvement in our solveny and return metrics. current 19:34 19 minutes, 34 seconds ratio. We have successfully driven a current ratio from 96x in FY25 to 1.01x 19:41 19 minutes, 41 seconds in FY26. Crossing this 1x threshold is a critical indicator of structural health. 19:47 19 minutes, 47 seconds It proves that our aggressive interventions in working capital management have eliminated short-term liquidity deficits, shifting the company into a position of operational surplus. 19:57 19 minutes, 57 seconds Interest coverage ratio. Our ability to service our debt has expanded drastically. The interest coverage ratio 20:04 20 minutes, 4 seconds has improved from 1.76x in FY25 to 3.14x in FY26. We have nearly doubled our 20:12 20 minutes, 12 seconds safety margin effectively derisking the d-risking the enterprise against macroeconomic volatility or interest 20:19 20 minutes, 19 seconds rate shocks. Return on equity ultimately our capital strategy is measured by the value generated for shareholders through 20:26 20 minutes, 26 seconds the combination of debt reduction lower interest burdens and optimize asset utilization. Our return on equity has 20:33 20 minutes, 33 seconds increased three-fold 3x in FI26 compared to FI25. I now leave the phone to the moderator for question and answers. 20:42 20 minutes, 42 seconds Thank you. 20:44 20 minutes, 44 seconds Thank you so much sir. Ladies and gentlemen, we will now begin with a question and answer session. Anyone who wishes to ask a question may press star and one on their touchstone telephone. 20:55 20 minutes, 55 seconds If you wish to remove yourself from the question queue, you may press star and one. Participants are requested to use handsets while asking a question. 21:05 21 minutes, 5 seconds Ladies and gentlemen, we wait for a moment while the question assembles. 21:15 21 minutes, 15 seconds Our first question comes from the line of Amnish Roy from Noama Wealth Management. Please go ahead. 21:21 21 minutes, 21 seconds Yeah, thanks uh and congrats. Uh my first question is on uh the consumer part of the business of PNA. overall uh 21:29 21 minutes, 29 seconds year ended on a strong note and clearly Delhi will soon come back to growth. Uh what kind of growth would you be 21:36 21 minutes, 36 seconds targeting for PNA for FI27 and given favorable policy changes in some of the states like Karnataka where they are 21:44 21 minutes, 44 seconds saying that based on liquor content, alcohol content, taxation that flexibility will be there. uh and maybe 21:52 21 minutes, 52 seconds some more markets and maybe UP is a big market for you given you have entered a few quarters back what kind of growth you'll be targeting in P&A and maybe 22:00 22 minutes even the regular also if you could give some kind of guidance thank you 22:07 22 minutes, 7 seconds um thanks uh so you know uh coming to the second part of the question you know after as of now we do 22:16 22 minutes, 16 seconds not have presence in south with reference to the Karnataka uh uh landscape change but uh we intend as uh 22:26 22 minutes, 26 seconds as soon as we strengthen our east then obviously we intend picking up the next region and those are greener pastures 22:33 22 minutes, 33 seconds for us. uh UP each and every positive opportunity we are going to leverage because UP we have a full presence uh 22:41 22 minutes, 41 seconds with a captive dist where uh the expansion has ensured that we are servicing our requirement on the growth 22:49 22 minutes, 49 seconds target uh Amnish we are totally committed to delivering the F29 objective which we said that we are 22:57 22 minutes, 57 seconds going to ultimately work towards managing a a 50% uh total growth on our 23:04 23 minutes, 4 seconds PNA portfolio and we are totally committed to that. Time to time there will be quarters up and down where some growth projections will either exceed 23:12 23 minutes, 12 seconds expectations or uh fall soft and we would not like to give you know peace meal uh commitments to growth at this stage. 23:24 23 minutes, 24 seconds Understood. Now uh a followup to what you said uh Eastern India clearly a big opportunity especially given what has 23:31 23 minutes, 31 seconds happened in Bengal. uh why I wanted to highlight first Bengal was uh clearly same party uh runs in government in 23:39 23 minutes, 39 seconds Uttar Pradesh which I think is one of the best examples of how favorable liquor policy should be there for customer government and for the 23:46 23 minutes, 46 seconds industry. So do you think uh any changes possible in Bengal medium long-term given new government or or the Bengal 23:55 23 minutes, 55 seconds taxation or policies are reasonably good and second follow up on eastern India is obviously on the most important state 24:02 24 minutes, 2 seconds from your uh uh side Bihar uh Bihar one is uh the current chief minister the new chief minister just few months back had 24:11 24 minutes, 11 seconds highlighted the uh loss of opportunity given the taxation uh impact So would you think that at some stage 24:19 24 minutes, 19 seconds clearly government uh would uh want to open up any any initial uh uh talks happening and second is supposing at 24:28 24 minutes, 28 seconds some stage and this is not some timeline I'm putting from a FI27 or 28 perspective I'm just saying uh currently you would do utilize your current assets 24:37 24 minutes, 37 seconds in Bihar. Supposing there is a reasonable opening uh of Bihar market at some stage then what changes for you because already obviously B2B and 24:45 24 minutes, 45 seconds exports are happening uh then what changes either from revenue or profitability perspective I know a lot of things are unknown given taxation but 24:54 24 minutes, 54 seconds we have seen Andra market for example open up right it was restricted to local players so some clarity I'm asking not full clarity 25:02 25 minutes, 2 seconds thanks thanks Anish see on West Bengal while at this point of time we have a corporation market and uh uh private 25:10 25 minutes, 10 seconds retail uh our subject is obviously such a constrained subject that there is always opportunity to become more 25:18 25 minutes, 18 seconds liberal in the excise policy to propel resol to the next level of growth. Uh my my thought is that over the medium term 25:27 25 minutes, 27 seconds the environment to operate uh alcob industry especially spirits in West Bengal is likely to get more favorable 25:35 25 minutes, 35 seconds and that is something we are very keenly uh waiting and looking forward to while we build our strength in the state. Uh 25:43 25 minutes, 43 seconds so from my side we are holding and watching like you are but overall uh it is likely to move into a positive more 25:51 25 minutes, 51 seconds positive zone in the medium term. Coming to Bihar the see Bihar in my personal 25:59 25 minutes, 59 seconds view is going to open uh it's a question of when u because you know it's it's 26:07 26 minutes, 7 seconds uh it's it's surrounded by all sides with the states aggressively reaping in a lot of revenue from our 26:15 26 minutes, 15 seconds category and there is no reason why it should just be missing out on it. The one change that will happen when VR 26:22 26 minutes, 22 seconds opens whether selectively in about two three steps or overall in one step will 26:28 26 minutes, 28 seconds be that when Globus entered the PNA segment about uh four and a half five 26:35 26 minutes, 35 seconds years ago we came in brand by brand we built a momentum for the brand learned 26:42 26 minutes, 42 seconds our lesson but now when Bihar opens we will have the full portfolio moving in uh like any uh a strong and a stable 26:50 26 minutes, 50 seconds organization. So the journey in Bihar will be full-fledged because it will be literally the same for every company. So 26:58 26 minutes, 58 seconds we do not have to start testing the waters in Bihar and go in phases. So Globus will enter lock, stock and barrel in Bihar the moment Bihar opens. Uh we 27:07 27 minutes, 7 seconds definitely see an inherent advantage for any organization that has a base layer of manufacturing. 27:14 27 minutes, 14 seconds uh we definitely have and we see that as a structural advantage for us um in the short medium term for sure and probably 27:24 27 minutes, 24 seconds on this strength once we build our base this advantage will be there for many years to continue. 27:31 27 minutes, 31 seconds Understood. The last quick question uh obviously Iran crisis has impact on everything in the world. So I wanted to understand from glass bottles and say 27:40 27 minutes, 40 seconds now elections done, results done. uh diesel price hike is just a formality in my view. How do you see your uh P&L 27:48 27 minutes, 48 seconds getting impacted especially the P&A because there was a increase in losses there 5 crores versus the full year 27:55 27 minutes, 55 seconds number and uh clearly everyone will feel the pain. So wanted to understand uh glass bottles and logistics cost what can be the impact. 28:04 28 minutes, 4 seconds So, so uh you are you are correct in saying that obviously this political development has just come as a 28:13 28 minutes, 13 seconds surprise to uh most industries if not all and we are no exception. 28:19 28 minutes, 19 seconds Uh while while we were caught by surprise we have quickly geared up and a lot of efficiency measures are already 28:27 28 minutes, 27 seconds up and about. uh while we see uh very very I mean there will be an impact but 28:34 28 minutes, 34 seconds the way we see most of the impact we should be able to neutralize and I'm also confident that you know looking at 28:41 28 minutes, 41 seconds what's happening is the governments will eventually concede into a price increase because uh many operators will struggle 28:50 28 minutes, 50 seconds under these circumstances. Luckily we have activated very promptly on all efficiency measures uh whether it is on 28:59 28 minutes, 59 seconds uh packaging material raw material freight costs we have a full-fledged project going on for that and we are 29:06 29 minutes, 6 seconds tracking it so we should come out with uh much more modest uh uh hits if I may say so 29:15 29 minutes, 15 seconds I just wanted to add uh I just wanted to add to what Pam said you know one mitigating factor uh to higher raw 29:22 29 minutes, 22 seconds material cost this year is going to be lower um uh tariff on scotch. Um so 29:30 29 minutes, 30 seconds that's a mitigating factor. It doesn't offset the entire amount but uh so overall there will be an impact but not very considerable. 29:41 29 minutes, 41 seconds Scotch benefit from Q3 or you expect maybe Q2 also some benefit can come. 29:48 29 minutes, 48 seconds Let's see how it finally plays out Anishh uh uh in terms of the timing of um inventories that are in the pipeline 29:56 29 minutes, 56 seconds and so on. Uh but this year of course you will start getting that benefit. 30:01 30 minutes, 1 second Sure. Thanks uh for all this. That's all for my thank you. Thank you. 30:11 30 minutes, 11 seconds Our next question comes from the line of VGA Buddha from Ambit Asset Management. Please go ahead. 30:17 30 minutes, 17 seconds Yeah, good afternoon sir and u uh thank you very much for giving clarity on the uh fund raise part. Uh so just to extend 30:26 30 minutes, 26 seconds that uh question. So uh is it possible to quantify what is the funding requirement now to expand uh the IMFL 30:34 30 minutes, 34 seconds portfolio I mean uh as we uh build our vision for FI29 we're looking to sort of 30:41 30 minutes, 41 seconds reach to about uh closer to 500 odd crores. How much money do we need and uh is the internal cash flow good enough 30:49 30 minutes, 49 seconds post the debt uh restructuring uh to fund that plan? 30:54 30 minutes, 54 seconds Hi Bar uh thanks for the question. So you know many of these things are um uh wait to 31:02 31 minutes, 2 seconds watch. We can say that this year we do not see a need to achieve the business plan given some of the operational uh 31:10 31 minutes, 10 seconds improvements and leverage we've been able to get. uh the added um liquidity from the debt uh debt optimization that 31:20 31 minutes, 20 seconds Nunan spoke about also supported that um we expecting um you know margins cash flow from 31:28 31 minutes, 28 seconds manufacturing to remain stable um at these levels going forward. Um and if that's the case we should be able to 31:37 31 minutes, 37 seconds avoid the fund raise altogether. Uh but for now this year we don't see um a need at all. For subsequent periods let's um 31:47 31 minutes, 47 seconds um you know let's wait and watch a little bit. See how the first two or three quarters of this year plays out in terms of of course our own performance 31:55 31 minutes, 55 seconds but more importantly some of the you know larger political macroeconomic events. Um and then we'll be in a better position to comment. 32:08 32 minutes, 8 seconds Okay. And uh secondly sir uh is it correct to uh highlight that in a rising 32:16 32 minutes, 16 seconds crude prices typically the oil and marketing companies would want to buy ethanol more from uh sugar based 32:25 32 minutes, 25 seconds companies rather than alcohol based companies or that hypothesis? No, we don't see that. I mean, ethanol whether 32:32 32 minutes, 32 seconds sugar or grain um the oil companies have zero um you know preference or any of 32:41 32 minutes, 41 seconds that. Uh the other factor to consider is that um sugar has a limits to the amount 32:47 32 minutes, 47 seconds of uh capacity it can um uh shift to ethanol. Uh there's also the need to 32:54 32 minutes, 54 seconds produce sugar, right? Um uh there is a very significant grain ethanol capacity 33:01 33 minutes, 1 second base in the country. Uh over the last few months we've seen um uh oil marketing companies, government of India 33:10 33 minutes, 10 seconds um start preparing towards higher ethanol blends uh and I believe um flex 33:16 33 minutes, 16 seconds fuel uh mandates uh for new cars is is also on the anvil. Uh so you know 33:24 33 minutes, 24 seconds overall ethanol demands are going to be quite strong going forward. Um and you know I guess it has been expedited due to higher crude prices. 33:37 33 minutes, 37 seconds Okay. Right sir. Thank you very much for the answers and all the very best. 33:41 33 minutes, 41 seconds Thank you. Thank you so much. Our next question come from the line of Himman Shuisha from Dalat Capital. Please go ahead. 33:51 33 minutes, 51 seconds Uh thanks. Thanks a lot for the opportunity. Uh so just couple of questions. First is on the manufacturing 33:57 33 minutes, 57 seconds business. Uh we have shifted on the eastern side of our plants from ethnol to ENA which has resulted into lower volumes. Is that what you clarified? 34:10 34 minutes, 10 seconds So there are a few different um uh aspects that have gone into play here. 34:15 34 minutes, 15 seconds Um, one is that when we shift from rice to maze, there is a small capacity derating that takes place in each plant. 34:25 34 minutes, 25 seconds I explained in my opening remarks that if we are to shift all three of our eastern plants to base, it would lead to a derating of 75 kl per day. 34:37 34 minutes, 37 seconds Okay. Um, okay. Uh, this of course it's not a decision taken for all three plants all at the same time. Each plant 34:44 34 minutes, 44 seconds has its own uh decision parameters and we optimize the model for profitability and cash flow um rather than volume. Um 34:54 34 minutes, 54 seconds so that's uh that's number one. Number two is that when we are shifting from ethanol to ENA uh in a sizable uh uh 35:03 35 minutes, 3 seconds quantity, there is a period of inventory buildup due to an extended permissions 35:10 35 minutes, 10 seconds process that is required in India from you know multiple state excess departments u you know multiple in the sense the importing state, the receiving 35:19 35 minutes, 19 seconds state as well as the supplying state. Um and thirdly with increasing exports 35:25 35 minutes, 25 seconds there is also an increased amount of material in the pipeline. Uh so a combination of these three factors led 35:34 35 minutes, 34 seconds to a slightly lower volume in Q3 uh in sorry Q4. Overall our capacity 35:42 35 minutes, 42 seconds utilization was 80% and that's well within the um the annual guidance that we have of 80 to 85%. 35:52 35 minutes, 52 seconds um the lower or rather the volume buildup the inventory buildup that we've seen in Q4 will get liquidated in Q1 in 36:00 36 minutes addition to the capacity of Q1. So we're going to see a increase in volume in Q1 um uh because of this pipeline build up that we had in Q4. 36:12 36 minutes, 12 seconds Okay. Uh so just to simplify this uh historically we have been able to sell around 19 to 20 cr lers of bulk alcohol 36:21 36 minutes, 21 seconds annually and with UP capacity coming on stream and till the time it gets captively consumed in UP over the next 36:29 36 minutes, 29 seconds couple of years to assume we should be able to sell [clears throat] 22 to 23 cr lers of bulk alcohol sales in FY27. 36:40 36 minutes, 40 seconds We have those kind of visibility and ethanol orders. Uh combination of ethanol and ENA. Yes. 36:47 36 minutes, 47 seconds Not just ethanol. 36:49 36 minutes, 49 seconds Yeah. I'm saying all put together. ENA, ethnol export sales all put together. We should because our exit run rate has 36:56 36 minutes, 56 seconds been much lower 4.2 cr which is like annually 16 17 cr. 37:00 37 minutes Although you have clarified that the left out cap uh sales inventory buildup should get sold in. Hello. 37:09 37 minutes, 9 seconds Yeah, I um Nan can you uh comment on this? What is our exit FY volume for 37:16 37 minutes, 16 seconds bulk for a manufacturing business? Exit FYI volume for bulk for manufacturing business FYI26 has been 199.5 37:25 37 minutes, 25 seconds million liters right okay so it's you know it's in the 20 cr it's it's nearly 20 crores so that's the it's it's in the guidance 37:33 37 minutes, 33 seconds that we have okay but so I'm not sure what you were talking about 16 cr 16.4 crores I'm not sure what that was 37:41 37 minutes, 41 seconds sir I was going I said quarter run rate 4 cr 4.2 2 cr liters into four 17 cr liters. 37:49 37 minutes, 49 seconds Right. Right. Got it. Got it. 37:51 37 minutes, 51 seconds And okay. No, so I mean it's you're right in in saying that 20 cr is our annual guidance and on top of that there's UP. 38:00 38 minutes So um um uh so yes there is going to be growth on top of the 20 crores. 38:06 38 minutes, 6 seconds So can we have visibility of ethanol orders, export orders from that front? Yes. 38:13 38 minutes, 13 seconds Okay. And secondly sir you mentioned that uh the AITA per liter or spread should remain in ballpark in the current 38:21 38 minutes, 21 seconds range which is uh annual range or the H2 range. 38:26 38 minutes, 26 seconds No no 5 to 7 rupees is our guidance for uh the per liter that's the range in which it will remain for the year. Um we've seen higher uh realizations in Q4. 38:39 38 minutes, 39 seconds Um but uh my expectation is to be firmly within 5 to 7 rupees for a year. 38:47 38 minutes, 47 seconds So the the AITA per liter range should actually go down is what you are indicating on a full year basis in FY27. 38:55 38 minutes, 55 seconds Uh 63 rupees in Q4 39:02 39 minutes, 2 seconds and that's you know it's within that 5 to seven range. The strategic margin profile of the bulk business is in that 39:11 39 minutes, 11 seconds five to seven range. I do not see any event in FY27 um where our margins will be 39:20 39 minutes, 20 seconds strategically higher. So 5 to 7 is our guidance um for each of the years. Um 39:26 39 minutes, 26 seconds the FY26 was that range and FY27 we expect the same range. 39:32 39 minutes, 32 seconds Sure. And what kind of cost increase are we looking at such because of this uh uh 39:39 39 minutes, 39 seconds geopolitical situation uh on our PET bottle and across our other uh uh other 39:46 39 minutes, 46 seconds cost line items some ballots indicator while we have some mitigating measures but if you can just give what kind of cost pressures are we looking at? 39:56 39 minutes, 56 seconds Sure. So so param you want to talk a little bit about this please? Yeah. So, so thanks thanks Shaker and hi 40:03 40 minutes, 3 seconds Himmanshu. So it's difficult to put a number out there uh Himmanshu. What we have as of now is uh you know we've 40:12 40 minutes, 12 seconds built multiple scenarios of the timeline uh what if scenarios and basis that what 40:19 40 minutes, 19 seconds we have done is we have uh our mitigation plan already rolled out uh as we are speaking it is in full force 40:29 40 minutes, 29 seconds basis that outcome you know regardless of u you know how long this agony prolongs within this year we see that 40:38 40 minutes, 38 seconds our hit will be modest. Uh should should this agony uh you know sort of immediately get 40:46 40 minutes, 46 seconds capped uh then maybe with a with a good day we may have some benefit also coming to us with all the efficiency measures 40:54 40 minutes, 54 seconds we have put in. So we are we are fairly uh you know uh how how should I say uh 41:01 41 minutes, 1 second uninterrupted in our pursuit of where we are going and assume that these are things that will happen every you know year or two years there will be this 41:10 41 minutes, 10 seconds sort of a thing. So we are not overtly concerned about this uh uh unlike unlike some other pairs we are not overtly concerned about it at this stage. 41:21 41 minutes, 21 seconds Yeah sure. And just lastly sir while you're maintaining your vision 29 uh uh or guidance which has been given it 41:30 41 minutes, 30 seconds implies a very significant uh caggr in terms of revenue across all the three business segments. So we remain 41:38 41 minutes, 38 seconds confident on that particular front. Uh now it looks slight challenging. 41:45 41 minutes, 45 seconds We see the the yeah no so point is point is well noted. See the way we see it is 41:51 41 minutes, 51 seconds and as I have uh uh sort of shared a little bit more detail, you see as more 41:59 41 minutes, 59 seconds and more emerging markets move into uh the core markets, the number of core 42:07 42 minutes, 7 seconds markets will uh eventually outweigh the emerging markets uh within this uh uh 42:14 42 minutes, 14 seconds 2.0 business plan. And that is where the momentum will start multiplying because when when we have X number of emerging 42:22 42 minutes, 22 seconds markets and five core markets the ratio starts uh seeing diluted but as the five 42:28 42 minutes, 28 seconds uh core markets become 8 9 10 suddenly the the whole drawing board starts giving different results and that's what 42:37 42 minutes, 37 seconds we are trying to clarify that you know uh the number of core markets as it starts increasing the whole momentum 42:45 42 minutes, 45 seconds will continue to build and accelerate for times to come. Uh and that is why we are still confident that what we have we 42:52 42 minutes, 52 seconds have set out we are still online or on track regardless of you know uh this thing of Delhi and you know uh who knows 43:00 43 minutes in future there could be another uh small spring uh surprise round the corner you know. 43:06 43 minutes, 6 seconds Sure. And just last small followup uh Delhi has now fully normalized for us almost there. We as I said the last 43:14 43 minutes, 14 seconds quarter we we came up with 10 10% uh the shortfall uh to to come at par with the 43:22 43 minutes, 22 seconds previous year. So it shows from 40 we came down to 10. So we are we are fairly confident that we are almost over the 43:31 43 minutes, 31 seconds hump and uh the buildup of the growth should start beginning. how soon we can uh you know neutralize this and build it 43:39 43 minutes, 39 seconds into an accelerated momentum is is uh as we'll go forward we will keep sharing uh you know the Delhi performance for a 43:48 43 minutes, 48 seconds couple of quarters so that so that you know uh all the investors also have a little bit more view into how we have 43:56 43 minutes, 56 seconds traversed the journey from two points one is obviously since it has been uh something we have spoken about and 44:02 44 minutes, 2 seconds second also to to for for everybody out there to sort of understand that these challenges will happen. It's the ability 44:10 44 minutes, 10 seconds of the organization and the professional team how to navigate them quickly and turn them around into opportunities 44:17 44 minutes, 17 seconds uh rather than let them keep draining the medium term. The short-term hiccups of course can't be prevented. So we will we will keep sharing but I'm very optimistic on Delhi going forward. 44:29 44 minutes, 29 seconds Sure sir that's very helpful and that's it from my side. All the best. Thanks. Thanks. Thank you. Thank you. 44:37 44 minutes, 37 seconds Our next question come from the line of Somia S from Insightful Investments. Please go ahead. 44:44 44 minutes, 44 seconds Hi sir, thank you for the opportunity. I just had a question regarding the PNA EITA for Q4. 44:52 44 minutes, 52 seconds Um it is uh increased as in the loss has increased from what was around 1.2 to2 45:00 45 minutes for the previous quarters to five crores this time. So uh could you just explain the reason for the team? 45:07 45 minutes, 7 seconds Yeah so so thanks thanks for the question um and the opportunity Somia see the way uh we have structured our 45:14 45 minutes, 14 seconds business journey is that there are some quarters when new emerging markets are not uh opened up or they are in that 45:23 45 minutes, 23 seconds mode where we are still uh sort of in a very early seeding place and then a time comes when emerging market needs 45:30 45 minutes, 30 seconds investment. So and that reflects in quarter to quarter. So the yo-yo of these quarters is likely to continue for 45:38 45 minutes, 38 seconds another uh maybe another year and a bit and then this starts moving into the next zone of profitability because in 45:46 45 minutes, 46 seconds the quarter when we have expanded and opened up east extra investments have gone in we have opened up Jarand and 45:53 45 minutes, 53 seconds hence it is very difficult for us to track our business decisions basis to try and level out each quarter 46:01 46 minutes, 1 second performance in PNA because that would be suboptimal. 46:05 46 minutes, 5 seconds So, so we are sticking to our business plan and as and when the right moment comes, we inject our uh uh financial 46:14 46 minutes, 14 seconds force onto the market either to expand or bring new launches for deeper either 46:22 46 minutes, 22 seconds uh width of distribution or depth of distribution. So, and that obviously I just want to give a little adds up to the 46:29 46 minutes, 29 seconds Sorry to sorry to interrupt. I just want to give a little color. Uh so in this quarter for example um uh we had around 46:38 46 minutes, 38 seconds 3 to three and a half cr rupees of uh additional label registration costs uh that were paid for new brand launches. 46:47 46 minutes, 47 seconds Um and this was done because we felt the timing for launching these brands in um 46:54 46 minutes, 54 seconds Jan and Feb um is more uh favorable than doing it as soon as the excise year 47:01 47 minutes, 1 second changes. Um now of course all of that has to be booked into um um um you know 47:08 47 minutes, 8 seconds expenses and that drives the um losses a little bit higher but this does not of 47:14 47 minutes, 14 seconds course show accurately the underlying health of the business which is that you know what Param mentioned in his opening 47:22 47 minutes, 22 seconds remarks that four out of five states uh of the core markets are now profitable. 47:30 47 minutes, 30 seconds Absolutely sir. Thank you so much. Thanks. Thank you. 47:38 47 minutes, 38 seconds Our next question comes from the line of Nitin Asti from Ingred Capital. Please go ahead. 47:44 47 minutes, 44 seconds Hello sir. Um first question could we get a numerical clarity on the Delhi numbers like we have understood that our 47:52 47 minutes, 52 seconds segment numbers of um the uh regular category are significantly impacted 48:00 48 minutes because of Delhi and hence looking at the overall number doesn't give a true picture of the growth of the company. So 48:06 48 minutes, 6 seconds if you could just quantify FI25 what was the sales million cases sales in the regular segment in Delhi and FI26 what 48:15 48 minutes, 15 seconds it is so that uh the distinction could be clearly made. 48:24 48 minutes, 24 seconds Yeah I accept your uh uh feedback on this. I don't we we're not prepared to give you the numbers immediately on this 48:32 48 minutes, 32 seconds fall. Uh but what I can say is that um year on year uh UP and uh Rajasthan 48:42 48 minutes, 42 seconds together Mhm. um have grown in volume by 7%. Yeah. 48:50 48 minutes, 50 seconds Okay. So I don't have the number zero, right? Last year up was zero. 48:56 48 minutes, 56 seconds Correct. So if I put those two states together then we have seen a 7% growth Rajasthan and UP in the last year um 49:06 49 minutes, 6 seconds overall our volumes are flat so the other markets degrew by 7%. in the overall contribution. 49:14 49 minutes, 14 seconds Understood. Understood. Okay. Now that clarifies uh a lot of things. So if you just remove the impact of Delhi, we actually have grown 7%. 49:22 49 minutes, 22 seconds No, no, it's not just Delhi. It's not just Delhi. 49:26 49 minutes, 26 seconds So Param mentioned this in an opening remarks. Delhi um and this is okay. Let's separate ENA Delhi and RNO Delhi. 49:36 49 minutes, 36 seconds Okay. No, he's talking of RNA RNO. 49:38 49 minutes, 38 seconds Yeah. Yeah. So I just want to clarify to Nitan as well as the others who are on the call that right now we're talking 49:44 49 minutes, 44 seconds about RNO Delhi not PMA Delhi. Okay. So RNO Delhi in the last year we we have 49:53 49 minutes, 53 seconds experienced in some periods absolutely zero volumes and in some periods we've experienced in fact growth over last year. Okay. And 50:02 50 minutes, 2 seconds this is a month-on-month variation. So Delhi policy for R& brands has been in complete flux 50:10 50 minutes, 10 seconds as of uh the end of Q4 we decided till the policy is not stabilized we will not 50:17 50 minutes, 17 seconds operate in Delhi okay for RNO brands um the 7% degrowth in volumes essentially from overall 50:26 50 minutes, 26 seconds volumes from the other markets is a combination of Delhi West Bengal and Hana 50:34 50 minutes, 34 seconds Invest in all we have also pulled out our portfolio uh redoing the portfolio as well as 50:41 50 minutes, 41 seconds shifting the manufacturing location and in the near term we will um relaunch that kit. So essentially it's UP and Raj 50:50 50 minutes, 50 seconds UP and Rajasthan that have grow 7% you know hopefully we'll be getting to higher levels of growth from these two 50:58 50 minutes, 58 seconds markets in the near future. uh and the other markets has been quite problematic 51:05 51 minutes, 5 seconds and therefore overall volumes are flat and a little more detail on West Bengal. 51:12 51 minutes, 12 seconds See West Bengal we had constraints to grow and as a result it was a choice we made to shift our whole manufacturing 51:20 51 minutes, 20 seconds license to a different location to set ourselves up because the industry is uh almost about just short of 3 million 51:27 51 minutes, 27 seconds cases a month uh there. So so the whole objective was and the whole license shifting and setting up is going to take 51:36 51 minutes, 36 seconds some time. So we have kept it out of the equation and when we enter it back we are going to enter with a full-fledged new portfolio with the same aggressive 51:44 51 minutes, 44 seconds stance as we have done in UP uh to make it then the next uh powerful state by which time we obviously would have 51:52 51 minutes, 52 seconds picked up a lot of momentum in UP uh as you will see in the coming quarters. 51:58 51 minutes, 58 seconds Understood sir. Uh got it. So second question on the balance sheet front. Um, of course, uh, you've given a detailed 52:06 52 minutes, 6 seconds presentation on how the cost constraints, how the treasury management, how the renegotiation of terms of the loans have happened. 52:13 52 minutes, 13 seconds However, one clarification will be required is that we had seen a trajectory of the interest cost per 52:20 52 minutes, 20 seconds quarter continuously falling. Q4 we saw a jump. So basically we were at 13 crores roughly. Q4 we saw a jump to 16.5 52:28 52 minutes, 28 seconds crores. Now was that a result of the cost of renegotiation being incurred and 52:36 52 minutes, 36 seconds if so what should be the trajectory going forward? Did you talk about this? 52:42 52 minutes, 42 seconds No no no Q4 the increase of 3 crores is basically till Q3 we were capitalizing the interest cost on UP term loan. Okay. 52:53 52 minutes, 53 seconds So the interest cost was less in Q3 which from Q4 has gone up uh by 3 crores when we had to when after commissioning the interest cost had to be expensed up. 53:04 53 minutes, 4 seconds However with this refinancing again it will plateau down to a reasonable level. 53:11 53 minutes, 11 seconds So so so what is the expected interest cost? I think that's the question going forward. Yes but interest rate. 53:18 53 minutes, 18 seconds No no interest cost. So you can do it either which way is rates or wise also or costwise also 14 to 15%. 53:27 53 minutes, 27 seconds 14 to 15 cr sorry 14 to 15 cr understood. Understood sir. Thank you. Got it. 53:35 53 minutes, 35 seconds Thank you. Thank you. 53:39 53 minutes, 39 seconds Our next question comes from the line of Sani Goar from MK Venture. Please go ahead. 53:44 53 minutes, 44 seconds Yeah. Uh I thanks for taking my question. uh uh I just wanted to basically build on to the earlier participants question on the regular and 53:53 53 minutes, 53 seconds others category. So if we take a 2 three year historical view of the performance in the category we were at about 14 and 54:01 54 minutes, 1 second a half million cases 3 years back we are at now about 15 uh 7 million cases uh like so low 54:09 54 minutes, 9 seconds singledigit growth and I understand there have been lots of challenges with state level challenges with Hana Delhi 54:18 54 minutes, 18 seconds uh West Bengal now assuming that lot of these have kind of been solved for and 54:24 54 minutes, 24 seconds in ways. How should we look at the next 2 three years from the regular and others category and uh what is our uh outlook on the growth in this category? 54:38 54 minutes, 38 seconds So thanks Sunonni. It is it is you know uh it is precisely this very uh 54:47 54 minutes, 47 seconds uh sort of a scenario which prompted us to pivot into UP with a full-fledged uh 54:54 54 minutes, 54 seconds commitment and investment uh that the overall because Rajasthan was the growing market and the couple of 55:01 55 minutes, 1 second other markets were yo-yoing and not showing long-term stability. So and that is exactly the reason why we entered into UP which is three times bigger 55:10 55 minutes, 10 seconds market than Rajasthan itself and uh the Delhi obviously as we have pointed out we are waiting uh for 55:19 55 minutes, 19 seconds clarity on uh way forward on the policy front and the tender front in West Bengal our license is in process and 55:27 55 minutes, 27 seconds it's very difficult to commit a a particular quarter when everything uh gets ticked off and signed off but the 55:34 55 minutes, 34 seconds process is robustly being chased. Uh Hana still happens to be a yo-yo but UP itself is going to be the huge driver. 55:44 55 minutes, 44 seconds We since we don't give volume projections uh in the short term but the very fact that 55:52 55 minutes, 52 seconds Uttar Pradesh is a three times bigger industry uh size almost like 95 lakh cases to a 1 cr case market per month. 56:04 56 minutes, 4 seconds We are very very confident of pulling in robust volume growth in this category collectively. 56:11 56 minutes, 11 seconds Sorry. Uh sorry to harp on this a little more but why you mentioned that uh there is uh there is still lack of clarity in 56:20 56 minutes, 20 seconds terms of when we can kind of get back to West Bengal at full swing. uh uh so there would still be an impact in the 56:29 56 minutes, 29 seconds base quarter right like at least for the next one or two quarters we will have West Bengal in the it's negligible it's now negligible 56:37 56 minutes, 37 seconds going forward it's it's negligible because we had initiated when did we initiate milen I think somewhere around 56:45 56 minutes, 45 seconds August September already we have started isn't it August end of July end of July and so it's almost negligible now 56:53 56 minutes, 53 seconds because we have started uh softening our whole approach and uh sort of heading towards zero waste while we were 57:00 57 minutes migrating. So uh I think most of it is behind us already. 57:05 57 minutes, 5 seconds Yeah. So Q1 will have some West Bengal marginal very marginal. Yeah. That will be the end. 57:12 57 minutes, 12 seconds So the the the rebasing is nearly complete. Uh Sunny um and I you know the earlier question I gave some color as to 57:20 57 minutes, 20 seconds the Rajasthan BP combined growth in the last year. 57:25 57 minutes, 25 seconds um you know I I think we'll be able to be grow more than that um up Rajasthan 57:34 57 minutes, 34 seconds combined uh and uh since the rebasing is complete or nearly complete that should reflect in the overall number as well 57:43 57 minutes, 43 seconds there should be some Bengal volume in Q1 I don't recall what it was uh so that's the only caveat over here 57:52 57 minutes, 52 seconds got it and uh From a profitability standpoint, does it uh mean that both UP 58:00 58 minutes and Rajasthan as a portfolio will be better will have better profitability and as some of these smaller states 58:08 58 minutes, 8 seconds become negligible the overall profitability also will kind of start improving uh on the regular. 58:14 58 minutes, 14 seconds So, so our profitability in the regular and others um I think Q4 was 18% uh Nanjan please correct me if I'm wrong. 58:23 58 minutes, 23 seconds Yeah. Yeah. 58:24 58 minutes, 24 seconds Um that's a that's a little bit on the higher end of what we feel is sustainable. Um 58:33 58 minutes, 33 seconds uh UP growth is not as profitable as Rajasthan volumes. Uh naturally um so I 58:41 58 minutes, 41 seconds don't foresee this 18% margin uh continuing. Um it it is going to be a 58:48 58 minutes, 48 seconds little bit lower. I think our target in this space is 16 to 18%. 58:53 58 minutes, 53 seconds Um so you know it'll be a little bit lower than that. Um for sure from an absolute margin standpoint it should be 59:01 59 minutes, 1 second Oh yes. Oh yes. Yeah. Yeah. Right. Of course. On a on absolute rupee term it'll be it'll be larger. Yeah. 59:09 59 minutes, 9 seconds Of course that goes. Yeah. Absolutely. 59:11 59 minutes, 11 seconds Yeah. Just one last question from my side on the on the prestige and above uh 59:18 59 minutes, 18 seconds segment in terms of the brand portfolio that you've kind of built up now in terms of uh what the uh whiskey and 59:28 59 minutes, 28 seconds vodka that we have. So is so what is our thought process on the brand build out or will we kind of try and go deeper on 59:37 59 minutes, 37 seconds the current portfolio of brands at least for a while and then look to add uh more brands. So what is the thought process 59:43 59 minutes, 43 seconds on the growth there? So we we see at this point of time obviously if we if we 59:51 59 minutes, 51 seconds keep luxury still as a as a bucket and luxury at this point of time has uh Dwab 59:58 59 minutes, 58 seconds and Thai families and we see ourselves making a lot of effort at strengthening them uh at this point of time on the 1:00:07 1 hour, 7 seconds mainstream uh PNA uh Mountain Oak including its family brothers uh and 1:00:14 1 hour, 14 seconds company including ing its family. Uh, Snowski including its family and also uh 1:00:21 1 hour, 21 seconds you know that these are the ones which are going to be core drivers as we are driving these families. There will be variance and time to time there will be 1:00:30 1 hour, 30 seconds strategic fits but in terms of real contributors to top line and bottom line all these three families will continue 1:00:38 1 hour, 38 seconds to be significant drivers for us and we are building around these families. 1:00:43 1 hour, 43 seconds Mountain Oak has now varietal of uh lemony rum uh along with it. Snowski has 1:00:50 1 hour, 50 seconds quite a few flavors and there are some more uh works which we will all see in the future. Similarly, brothers has B15. 1:00:59 1 hour, 59 seconds So these brands are being built and we see these three as main drivers in the short medium term these three families. 1:01:07 1 hour, 1 minute, 7 seconds Yeah, got it. This is uh very helpful and thanks for the detailed answers to my question. Yeah, the whole the whole 1:01:14 1 hour, 1 minute, 14 seconds intent here is Sunny that we started with being a one brand show which was Mountain Oak and like the whole 1:01:22 1 hour, 1 minute, 22 seconds experience of Delhi as a state we realize that eventually when we are a many market uh PNA segment we also will 1:01:31 1 hour, 1 minute, 31 seconds be a good brands PNA segment so that we are not dependent on any short-term vagaries of the environment of business. 1:01:39 1 hour, 1 minute, 39 seconds So that's where we are building these portfolios. Yeah. Sorry. Thank you so much. Thank you. 1:01:48 1 hour, 1 minute, 48 seconds Thank you. Our next question come from the line of Raml from Electron PMS. Please go ahead. 1:01:55 1 hour, 1 minute, 55 seconds Hello. Uh yeah, thanks for the opportunity sir. Uh and uh uh it's heartening to know that uh I think this year uh you unlocked good amount of free 1:02:03 1 hour, 2 minutes, 3 seconds cash flows and uh probably might not need external funding. Uh and I hope uh you know you you do better uh in the coming years. uh just a a couple of 1:02:12 1 hour, 2 minutes, 12 seconds things on uh so first is just needed some breakup of uh you know manufacturing. So how much was ethanol, 1:02:19 1 hour, 2 minutes, 19 seconds how much was ENA and how much was captive probably if you can give some data points around this. 1:02:25 1 hour, 2 minutes, 25 seconds So for the whole year and Q4 also around 20 cr uh liters of sale of uh in the manufacturing space there is 1:02:35 1 hour, 2 minutes, 35 seconds zero um captive within this captive is on top. Okay. 1:02:41 1 hour, 2 minutes, 41 seconds Okay. Uh and within 20 crores um uh I Nanjan again just feel free to come in. 1:02:47 1 hour, 2 minutes, 47 seconds Uh we at about 7030 70 now 30 EMA. Yes, almost there. 7228. 1:02:55 1 hour, 2 minutes, 55 seconds Okay. Got it. And uh I think there was uh uh we also mentioned that there was some issue on the pricing front on the uh ENA side. So if you can just throw 1:03:04 1 hour, 3 minutes, 4 seconds some light on what was it and it's not an issue. It's just the way the uh markets are structured. ENA prices 1:03:11 1 hour, 3 minutes, 11 seconds are a little bit lower um than that of ethanol and u the quarter um uh this 1:03:19 1 hour, 3 minutes, 19 seconds quarter gone by Q4 um the the the same quarter previous year had a much higher 1:03:26 1 hour, 3 minutes, 26 seconds ethanol share. Um so as we shifted to ENA that revenue was a little bit lower. 1:03:32 1 hour, 3 minutes, 32 seconds In addition, we had an inventory build up which also impacted um revenue. So, it's not an issue per se. It's just, you 1:03:40 1 hour, 3 minutes, 40 seconds know, those markets are strategically different. Um uh what's what's what's essential for us is monitoring our um 1:03:49 1 hour, 3 minutes, 49 seconds profit per meter. Um and you know, we've been we we've overd delivered on um our guidance for 1:03:57 1 hour, 3 minutes, 57 seconds this quarter. uh but going forward uh our guidance remains between five and 7 rupees a liter regardless of ENA or ethanol. 1:04:07 1 hour, 4 minutes, 7 seconds Okay. And uh uh so this year did we export ethanol? I think you mentioned about three we started we started in Q4 3.7 million liters. 1:04:17 1 hour, 4 minutes, 17 seconds Okay. 3.7 million liters. We started in Q4. uh uh so so going ahead uh you know this number can keep on increasing and 1:04:25 1 hour, 4 minutes, 25 seconds whether this is like in terms of profitability is export similar to what we are doing uh for the bulk sales in terms of profitability overall 1:04:33 1 hour, 4 minutes, 33 seconds you know it it changes month so I don't want to it's not strategically more profitable or less profitable um I think 1:04:42 1 hour, 4 minutes, 42 seconds overall the basket will give us this 5 to seven rupees okay okay got it uh it becomes an additional volume driver I think that's really the point Yeah. 1:04:51 1 hour, 4 minutes, 51 seconds Yeah. Yeah. Correct. Correct. So I was just coming to the volume side. So with exports now also coming in uh and UP also coming in, how do you see the 1:04:59 1 hour, 4 minutes, 59 seconds overall bulk uh you know volume growth uh going ahead. 1:05:04 1 hour, 5 minutes, 4 seconds So uh 20 crores is what the other uh units will give us aside from UP. Uh and up should give us about 1:05:13 1 hour, 5 minutes, 13 seconds somewhere around 2 cr liters. Um we seeing we're seeing um sort of a volume 1:05:20 1 hour, 5 minutes, 20 seconds we're projecting volume growth in UP. Um so some part of that capacity might get consumed internally. Um so you know well 1:05:28 1 hour, 5 minutes, 28 seconds over 20 crores uh will be the target for this year. 1:05:34 1 hour, 5 minutes, 34 seconds Okay. uh and and on this uh uh you know just on the uh premium segment so uh the 1:05:41 1 hour, 5 minutes, 41 seconds realization per case uh you know what we can just calculate how do you see that moving uh you know going ahead so apart 1:05:48 1 hour, 5 minutes, 48 seconds from the volume growth which is obviously coming in uh very well how do you see this this shift 1:05:55 1 hour, 5 minutes, 55 seconds so you know again that answer of course this is pam's domain and pam please come in after I'm done but that answer is 1:06:02 1 hour, 6 minutes, 2 seconds really has to be thought through in this way that Param sort of spoke about earlier in his opening remarks um which 1:06:10 1 hour, 6 minutes, 10 seconds is that we have these four markets and emerging markets. So um uh you know on the in the core markets uh that number 1:06:18 1 hour, 6 minutes, 18 seconds is a little more easily pro we can easily project that number a lot easier than we can for emerging markets because 1:06:26 1 hour, 6 minutes, 26 seconds you know we don't have u we launch a portfolio sometimes uh certain set of brands do better than the others um and 1:06:34 1 hour, 6 minutes, 34 seconds and you know and those brands may have higher price or a lower price. So strategically um as the luxury uh 1:06:41 1 hour, 6 minutes, 41 seconds portfolio um starts coming in into all the markets uh on top of the prestige and above um uh or rather the core 1:06:50 1 hour, 6 minutes, 50 seconds segments of mountains and brothers uh the NSVs are going to go up uh but on a quarterby quarter basis 1:07:00 1 hour, 7 minutes they they may well be blitz and those those don't really affect the strategic nature of the business. Correct. 1:07:08 1 hour, 7 minutes, 8 seconds Last clarification. Yeah. Sure. Sure. 1:07:11 1 hour, 7 minutes, 11 seconds What we can do is that you know like we keep calling out that at this point of time four out of five core markets are 1:07:19 1 hour, 7 minutes, 19 seconds profitable even when the emerging markets start becoming core markets. We will keep on sharing that information so 1:07:27 1 hour, 7 minutes, 27 seconds that you know uh because the whole objective is for us to increase more and more core markets at the best possible pace. 1:07:37 1 hour, 7 minutes, 37 seconds uh and because those are the ones which give stable top and bottom line growth. 1:07:42 1 hour, 7 minutes, 42 seconds Uh so we will keep going forward also updating uh the investor community uh on that how you know as soon as the market 1:07:50 1 hour, 7 minutes, 50 seconds moves into it we will keep changing our uh numerical numbers and when the fourth become fifth we will call it out that now we have so many markets we'll keep updating that part at least surely. 1:08:01 1 hour, 8 minutes, 1 second Okay. Okay. Uh and lastly uh on the UP side uh if you can just give uh some number on the monthly volumes and as a suggestion because UP is now getting 1:08:10 1 hour, 8 minutes, 10 seconds bigger and bigger of the overall pie uh would you call out separate numbers going ahead on on this? 1:08:20 1 hour, 8 minutes, 20 seconds Um currently we are not uh calling out separate numbers for UP. Um we'll have a we'll have a sync internally uh um on 1:08:29 1 hour, 8 minutes, 29 seconds how to do that to protect our uh competitive um you know competitor sort of information as well. 1:08:37 1 hour, 8 minutes, 37 seconds Um [clears throat] and uh you know if we feel that the information is not going to weaken our position in UP then 1:08:45 1 hour, 8 minutes, 45 seconds perhaps we can start putting it out. Our primary objective is to secure our strategic u um sort of expansion in the 1:08:52 1 hour, 8 minutes, 52 seconds state uh uh or in in the various states that we're in uh whilst being as transparent with uh investors as possible. 1:09:01 1 hour, 9 minutes, 1 second Okay. Okay. Uh thanks a lot and uh all the best. Thank you. 1:09:09 1 hour, 9 minutes, 9 seconds Our next question comes from the line of Pradhan from Maximum Capital. Please go ahead. 1:09:18 1 hour, 9 minutes, 18 seconds Yeah. Hi sir. Uh so sir first question on the PNA side. Um so given since you 1:09:25 1 hour, 9 minutes, 25 seconds alluded that we are still going by our FI29. 1:09:31 1 hour, 9 minutes, 31 seconds Uh so your voice is a bit your voice was a bit your voice. Is it better? Is it better now? 1:09:39 1 hour, 9 minutes, 39 seconds Yeah. Yeah. Yeah. Yeah. Clear. 1:09:41 1 hour, 9 minutes, 41 seconds Yeah. Yeah. So on the PNA side sir u you know this uh year we have seen a uh sort of a steep deceleration in the growth 1:09:50 1 hour, 9 minutes, 50 seconds rate and even excluding Delhi you called out a number of 58%. 1:09:55 1 hour, 9 minutes, 55 seconds Now given your FY29 sort of a vision of 1,000 cr plus in this segment uh you 1:10:02 1 hour, 10 minutes, 2 seconds know we need to almost double our revenues every year for the next three years. So uh so the number 1:10:11 1 hour, 10 minutes, 11 seconds So the number has not is not thousand crores for PNA. 1:10:15 1 hour, 10 minutes, 15 seconds Hitendra the number the number for PNA is 500 crores not thousand 1:10:22 1 hour, 10 minutes, 22 seconds 500 is what we had called out. Yeah. So yeah that's the number we are holding on to not thousand crores. 1:10:29 1 hour, 10 minutes, 29 seconds Okay. And I don't think we've ever we've ever given that guidance of thousands of this. Yeah. 1:10:35 1 hour, 10 minutes, 35 seconds Okay. My bad. Uh no no problem. But given given that sort of a vision also I think we need to grow 1:10:42 1 hour, 10 minutes, 42 seconds 3x in 3 years. So that is even now like 40 odd% growth and our growth rate has decelerated. So so what I mean is it 1:10:52 1 hour, 10 minutes, 52 seconds looking achievable uh given where we stand. 1:10:56 1 hour, 10 minutes, 56 seconds Yeah. So just I think even even after Delhi last year we grew 40% uh grow our volumes 40%. 1:11:05 1 hour, 11 minutes, 5 seconds um there was a nearly 3% uh price mix based change and that's why the revenue 1:11:12 1 hour, 11 minutes, 12 seconds doesn't reflect it. Um I don't see any concern on achieving this target. Yeah. 1:11:21 1 hour, 11 minutes, 21 seconds So you know it's yeah I mean see as the base keeps on increasing 1:11:28 1 hour, 11 minutes, 28 seconds uh you you you can see the numbers multiplying if you do your own maths you will see the numbers multiplying because 1:11:35 1 hour, 11 minutes, 35 seconds as we have called out as more and more markets move from emerging to core the buildup will start happening on a higher 1:11:43 1 hour, 11 minutes, 43 seconds base and so what looks like it's like when we were when we were 20 cr suddenly 164 crores looks very difficult to us. 1:11:52 1 hour, 11 minutes, 52 seconds So it's the multiplier effect that starts moving. So moving a 100 crores plus a year is not something that is 1:12:00 1 hour, 12 minutes going to be uh something to be to be to be thought out as uh is it too tall an 1:12:07 1 hour, 12 minutes, 7 seconds order. So because the base will keep on increasing with every year. Yeah. 1:12:12 1 hour, 12 minutes, 12 seconds Yeah. So that was my question. As the base increases your growth rate is decelerating. So given that do we still 1:12:20 1 hour, 12 minutes, 20 seconds feel that we will be able to achieve let's say 40% because on a higher base even a lesser uh slightly modest growth brings us to 1:12:29 1 hour, 12 minutes, 29 seconds 500. Exactly. That is the reason why we are very confident. Exactly the reason. 1:12:36 1 hour, 12 minutes, 36 seconds Okay. And and secondly on the RNO market now uh given that we will be having up 1:12:43 1 hour, 12 minutes, 43 seconds this year. So what is the so you know as one more participant alluded to that this has been growing in a lower 1:12:51 1 hour, 12 minutes, 51 seconds singledigit fashion but at least for this FI27 FI28 you know how are we looking at the growth 1:13:01 1 hour, 13 minutes, 1 second so you know I I mentioned this earlier as well um Rajasthan plus UP last year 1:13:07 1 hour, 13 minutes, 7 seconds gave us 7% growth um I believe in the coming year Rajasthan plus UP 1:13:15 1 hour, 13 minutes, 15 seconds will give us um you know higher than 7% growth. At this point we are not in a 1:13:22 1 hour, 13 minutes, 22 seconds position to give uh a more specific guidance for Rajasthan plus UP for this 1:13:29 1 hour, 13 minutes, 29 seconds year. Uh but you know basis the brand launches we've had that Palam spoke about earlier um the markets are are 1:13:37 1 hour, 13 minutes, 37 seconds looking quite exciting in UP specifically. So let's say in the last month let's say April you know what 1:13:44 1 hour, 13 minutes, 44 seconds kind of monthly run rate have we received here in terms of cases um 1:13:53 1 hour, 13 minutes, 53 seconds so you know um let's just wait a little bit for the momentum to settle down um 1:13:59 1 hour, 13 minutes, 59 seconds in April is a new excise year there is a uh in this year there was a a change in the route to market so we saw inventory 1:14:08 1 hour, 14 minutes, 8 seconds buildup uh taking place in April We also saw new brand launches. Um so I don't want to uh talk about the April 1:14:16 1 hour, 14 minutes, 16 seconds number at this point. Um suffice it to say we're going to exceed our uh Rajasthan plus UP FR26 growth number and 1:14:25 1 hour, 14 minutes, 25 seconds you'll start seeing that performance in Q1 and onwards. 1:14:29 1 hour, 14 minutes, 29 seconds Okay. Rajasthan last year sir we had got a uh you know four 5% price increase also. So that also helped our revenues 1:14:38 1 hour, 14 minutes, 38 seconds uh in FI26. Uh for this year have we got any price increase in Rajasthan, Hana or any of the major markets? 1:14:48 1 hour, 14 minutes, 48 seconds Uh Nanjan can you just confirm that? 1:14:51 1 hour, 14 minutes, 51 seconds Yeah. Yeah. This year also we've got a pricing in Rajasthan to the ex to the extent of 30 rupees a case. Uh so that has been replicated for this year also. 1:15:03 1 hour, 15 minutes, 3 seconds UP uh as of now no hana no but Rajasthan you've got a price increase yeah but we got to be a little cautious of that price increase because there's 1:15:11 1 hour, 15 minutes, 11 seconds been um um inflation in uh PD prices so uh and in addition um up growth is 1:15:21 1 hour, 15 minutes, 21 seconds going to be at a lower margin than Rajasthan uh we closed Q4 with 18% which is a 1:15:29 1 hour, 15 minutes, 29 seconds little bit higher than the sustainable uh margin profile um our guidance is you 1:15:36 1 hour, 15 minutes, 36 seconds know around the 16% 17% kind of mark. So uh we do see margins coming down a bit 1:15:45 1 hour, 15 minutes, 45 seconds but the overall pool is going to be much larger in terms of rupees as the business grows in the coming years. 1:15:53 1 hour, 15 minutes, 53 seconds Okay. And uh on the manufacturing segment so what is our maintenance capex now that we won't be growing any further 1:16:00 1 hour, 16 minutes beyond up what is our maintenance capex per year? 1:16:05 1 hour, 16 minutes, 5 seconds Uh maintenance capex is uh around um 40 to 50 crores. Um however we also have 1:16:14 1 hour, 16 minutes, 14 seconds additional capex in terms of uh increasing our malt whiskey uh inventory 1:16:21 1 hour, 16 minutes, 21 seconds capacity uh uh so for uh for aging malt whiskey as well as growing our bottling infrastructure to keep up with the 1:16:30 1 hour, 16 minutes, 30 seconds demands of the consumer business. So overall I foresee somewhere between um 1:16:37 1 hour, 16 minutes, 37 seconds 60 to 80 crores of capex um sustaining for a few years. So 40 to 50 is that maintenance. 1:16:46 1 hour, 16 minutes, 46 seconds Yeah 40 to 50 is maintenance plus another 20 to 30 um to grow um uh uh 1:16:54 1 hour, 16 minutes, 54 seconds risky as well as bottling infrastructure risky injury and bottling infrastructure. So sir given that plan 1:17:02 1 hour, 17 minutes, 2 seconds so that means that this year onwards we'll start paying down our debt aggressively given the kind of cash flow 1:17:08 1 hour, 17 minutes, 8 seconds we are earning. So maybe next one or two years we can go to zero debt. 1:17:15 1 hour, 17 minutes, 15 seconds Um I I won't comment on zero debt but yes what uh what I mentioned earlier uh on the call as well that given the cash 1:17:24 1 hour, 17 minutes, 24 seconds flows that we have the the plan for uh for capital raise equity capital raise has been put on hold uh we're able to 1:17:32 1 hour, 17 minutes, 32 seconds manage our expansion based on our internal cash flow. um uh debt will be 1:17:38 1 hour, 17 minutes, 38 seconds uh the residual cash that is uh in the year um after providing for working capital for our IMFL business. The 1:17:47 1 hour, 17 minutes, 47 seconds residual cash will obviously go to pay down debt. Okay. Okay. Thank you sir. All the best. 1:17:56 1 hour, 17 minutes, 56 seconds Thank you. Thank you. 1:18:02 1 hour, 18 minutes, 2 seconds Our next question come from the line of Dwam from IDO. Please go ahead. 1:18:07 1 hour, 18 minutes, 7 seconds Yeah, thank you sir for the opportunity for the question. Uh really appreciate the striking down of the QIP since it's managed from debt and internal across 1:18:16 1 hour, 18 minutes, 16 seconds combination of the both. So my question was more regarding that let's say we are doing multiple businesses ethanol ENA 1:18:22 1 hour, 18 minutes, 22 seconds RNO PNA luxury and there are different narratives drivers asset turns different margins different gross margins return 1:18:30 1 hour, 18 minutes, 30 seconds ratios involved in each of them. Now in the last three years we have been trying and there were probably some headwinds from some of those verticals. We have 1:18:37 1 hour, 18 minutes, 37 seconds seen some releases of the the numbers are struggling because of one-offs in one of the divisions or 1:18:45 1 hour, 18 minutes, 45 seconds whatever that is happening. As an investor I would just like to understand that what is our commitment and thought process to sort of deliver a respectable ROE at an aggregate basis in the coming 1:18:54 1 hour, 18 minutes, 54 seconds two to three years period and what is the timelines what is the accountability on that front. 1:19:01 1 hour, 19 minutes, 1 second Um uh so you know we have uh in the past uh published uh FY29 guidance uh for revenues as well as profitability. 1:19:11 1 hour, 19 minutes, 11 seconds Um and you know whereas in the process of rolling out uh that plan process of growing our footprint uh in a 1:19:19 1 hour, 19 minutes, 19 seconds stateby-state fashion and a brand by brand fashion uh there are going to be blips in a quarterly uh in a quarterly 1:19:27 1 hour, 19 minutes, 27 seconds manner but we remain committed to our FY29 um uh volume as well as profitability 1:19:34 1 hour, 19 minutes, 34 seconds guidance and sir any reason why the margins in our manufacturing business have 1:19:43 1 hour, 19 minutes, 43 seconds consistently especially the ethanol piece have been a tad lower than competition in the past few quarters. 1:19:51 1 hour, 19 minutes, 51 seconds Um for us uh we we believe that the basket 1:19:58 1 hour, 19 minutes, 58 seconds of ENA plus ethanol at a capacity utilization of 80 to 85% will give us 5 1:20:05 1 hour, 20 minutes, 5 seconds to 7 rupees of EBIT. Um we operate a scale business uh which includes um uh 1:20:14 1 hour, 20 minutes, 14 seconds uh integration in bottling as well as um uh as I said EMA ethanol multi markets 1:20:22 1 hour, 20 minutes, 22 seconds whether it's um uh within the state outside the state as well as outside India um at that capacity utilization at 1:20:31 1 hour, 20 minutes, 31 seconds the scale we are we believe that uh the margins are around 5 to 7 rupees per liter 1:20:38 1 hour, 20 minutes, 38 seconds um each each company has their own um situation. Some people are more 1:20:44 1 hour, 20 minutes, 44 seconds concentrated in a particular region. So if you did do a deep dive uh into one of our factories, you might find that 1:20:52 1 hour, 20 minutes, 52 seconds margins are a little bit higher. Um so given the spread we have the scale we have u uh we believe 5 to 7 is what is 1:21:02 1 hour, 21 minutes, 2 seconds our number and there because of the fact that probably ENA or bulk alcohol is the raw 1:21:11 1 hour, 21 minutes, 11 seconds material for all the divisions there is no risk of any cross subsidization of margins interdivision right 1:21:19 1 hour, 21 minutes, 19 seconds um no we have a policy on that we maintain uh uh transfer prices of ENA 1:21:26 1 hour, 21 minutes, 26 seconds between divisions uh uh act um after factoring in a 5 rupee margin for the 1:21:34 1 hour, 21 minutes, 34 seconds manufacturing business. So that's within the uh zone. However, uh the bulk sale 1:21:41 1 hour, 21 minutes, 41 seconds number that I'm reporting to you uh does not include the the volume does not include the manufacturing volume. 1:21:52 1 hour, 21 minutes, 52 seconds Okay, sure. Thanks. Thank you. 1:22:00 1 hour, 22 minutes Our next question come from the line of AKA Mana from ANS World. Please go ahead. 1:22:11 1 hour, 22 minutes, 11 seconds Participant uh has left the queue. We'll move forward to the next participant. 1:22:15 1 hour, 22 minutes, 15 seconds Our next question come from the line of Nishant Bud from Equity Works Limited. Please go ahead. 1:22:22 1 hour, 22 minutes, 22 seconds Uh yeah, good afternoon uh Schaefer. Uh can you uh just um explain uh the manufacturing segment once more because 1:22:31 1 hour, 22 minutes, 31 seconds uh you mentioned that uh there was a strategic uh shift uh which you did in uh which led to the one-time inventory 1:22:40 1 hour, 22 minutes, 40 seconds build up. So uh will this um the bliss which has been caused in the volumes will it be recovered in the next quarter in the few month? 1:22:50 1 hour, 22 minutes, 50 seconds Yes, it will be. So, this is due to a longer supply cycle that exists in EMA 1:22:57 1 hour, 22 minutes, 57 seconds both for within India sale and for outside India sale um because of a 1:23:04 1 hour, 23 minutes, 4 seconds larger um you know paperwork requirement because EMA can be converted to alcohol. 1:23:10 1 hour, 23 minutes, 10 seconds states want to protect their revenue. Uh and therefore need far more accountability on the movement of uh um 1:23:18 1 hour, 23 minutes, 18 seconds of alcohol. Uh uh so that increases the supply lead time uh as compared to 1:23:26 1 hour, 23 minutes, 26 seconds ethanol which doesn't have that uh requirement of paperwork. uh because of the substantial shift in the east 1:23:33 1 hour, 23 minutes, 33 seconds especially in Bihar and Jiharand uh we saw uh a buildup in inventory um and 1:23:40 1 hour, 23 minutes, 40 seconds that should get normalized or reduced in Q1. 1:23:46 1 hour, 23 minutes, 46 seconds Got it. And uh regarding uh this one question was regarding the Rajasthan policy which uh which was a recent uh 1:23:54 1 hour, 23 minutes, 54 seconds announcement right? uh I think you you declared that there is a 50% uh decrease in the bottling fee which will happen. 1:24:03 1 hour, 24 minutes, 3 seconds Uh yeah that's for export. So that is uh the material um so the material that's 1:24:10 1 hour, 24 minutes, 10 seconds produced in Rajasthan and that is sold outside of Rajasthan um we will have a nominal increase in um 1:24:19 1 hour, 24 minutes, 19 seconds profit or rather reduction in cost um uh on that uh portion. that impacts our PNA business. Uh but frankly, it's a nominal 1:24:27 1 hour, 24 minutes, 27 seconds amount which which is you know part of the business plan now going forward. 1:24:35 1 hour, 24 minutes, 35 seconds Got it. Got it. That's about it from my side. Thank you. Thank you. 1:24:45 1 hour, 24 minutes, 45 seconds Our next question comes from the line of Ashish from Leo Capital. Please go ahead. Hi. Uh thank you for taking my question. 1:24:52 1 hour, 24 minutes, 52 seconds uh I wanted to know what's the net debt levels as of now and what are the working capital needs in the RNO uh as 1:24:59 1 hour, 24 minutes, 59 seconds well as the IMFL business and how many days of working capital does it need uh Nan can you take that please 1:25:08 1 hour, 25 minutes, 8 seconds so the net debt business for the company is at 627 crores that's the net debt and the 1:25:15 1 hour, 25 minutes, 15 seconds working capital days for RNO is 5 to 6 1:25:23 1 hour, 25 minutes, 23 seconds That's exit right. So, so for RNO that number will go up slightly. Yeah. Uh in Q1 and onwards. 1:25:33 1 hour, 25 minutes, 33 seconds Okay. Okay. Okay. Got it. Thank you. 1:25:41 1 hour, 25 minutes, 41 seconds Thank you. 1:25:43 1 hour, 25 minutes, 43 seconds Our next question come from the line of Adita Patil from State Street. Please go ahead. Hi, am I audible? 1:25:52 1 hour, 25 minutes, 52 seconds Hello. I'm sorry but your voice is very low. It is better. Am I audible now? Management can be confirmed. 1:26:00 1 hour, 26 minutes Yeah. Hello. 1:26:07 1 hour, 26 minutes, 7 seconds Uh because still we can't hear you. 1:26:17 1 hour, 26 minutes, 17 seconds participant has left the queue. Next question comes from the line of manoj and individual please. 1:26:25 1 hour, 26 minutes, 25 seconds Yeah thank you very much sir giving the opportunity. So my question is just I was going through your investor 1:26:33 1 hour, 26 minutes, 33 seconds presentation that you have the plan uh by FY29 to go in another 8th state. So 1:26:42 1 hour, 26 minutes, 42 seconds what will be the your strategy for going to the other geography? So is it by acquisition or our existing 1:26:50 1 hour, 26 minutes, 50 seconds manufacturing unit will be able to handle all this new territory. 1:26:58 1 hour, 26 minutes, 58 seconds That's my first question. 1:27:02 1 hour, 27 minutes, 2 seconds Okay. So, so the expansion see uh even in the one of the let me just step back even in the current market of 1:27:10 1 hour, 27 minutes, 10 seconds for example Assam we are going with third party manufacturing. So every state that we expand will not have uh a 1:27:19 1 hour, 27 minutes, 19 seconds captive globus manufacturing unit servicing it. It depends on the efficiency. If we find that our unit 1:27:27 1 hour, 27 minutes, 27 seconds servicing is more efficient, we will choose our unit obviously as a as a base unit to service that state whether in state or the neighboring state. 1:27:36 1 hour, 27 minutes, 36 seconds Alternately, we will choose the best possible business partner who will manufacture on our behalf. when we said the eight stage that is the minimum 1:27:44 1 hour, 27 minutes, 44 seconds number where we definitely are ensuring the expansion will happen and as we keep moving forward uh you know the there is 1:27:52 1 hour, 27 minutes, 52 seconds no reason to say that number can't go up but that is what we have baked in and envisaged in our uh guidance when we 1:28:00 1 hour, 28 minutes came up with the F29 business plan yeah and we stand [clears throat] committed to that okay sir thank you very much for 1:28:07 1 hour, 28 minutes, 7 seconds spreading my another question is uh means what is the realization per per 1:28:15 1 hour, 28 minutes, 15 seconds cases for our that that is this is a premium product which is the dwab and family 1:28:24 1 hour, 28 minutes, 24 seconds this is nowhere it is mentioned so that's I wanted to know how much means 1:28:30 1 hour, 28 minutes, 30 seconds the realization purposes in Hindu wisdom we we do not release that isn't it. 1:28:41 1 hour, 28 minutes, 41 seconds No, we don't release it. We don't release that. 1:28:43 1 hour, 28 minutes, 43 seconds We don't release it. You know, we will have to do an internal huddle because uh you know, as of now, we are not releasing the realization by category. 1:28:54 1 hour, 28 minutes, 54 seconds Uh so yeah we we have we have obviously in our paper called out our uh uh gross 1:29:02 1 hour, 29 minutes, 2 seconds margins and we have u in the in the business plan called out that our gross 1:29:10 1 hour, 29 minutes, 10 seconds margins will be in the range of if I'm uh if I'm just recalling correctly in the range of about 47 odd percent. 1:29:18 1 hour, 29 minutes, 18 seconds Yeah. And also and also if you refer to our last investor date, you'll get a fair idea of our MRP equivalent to 1:29:26 1 hour, 29 minutes, 26 seconds Mumbai pricing that will give you an MRP. 1:29:28 1 hour, 29 minutes, 28 seconds Yeah. So we don't realize we don't release realization per case on an ongoing basis. 1:29:34 1 hour, 29 minutes, 34 seconds So is there any harm for giving something of some food for us to think about? Uh we let let us see if there is 1:29:43 1 hour, 29 minutes, 43 seconds any anything that uh sort of comes as a concern to us. 1:29:48 1 hour, 29 minutes, 48 seconds uh let's let's take your question uh away and uh and mull through it. U so 1:29:55 1 hour, 29 minutes, 55 seconds we'll make a note of it. I'm sorry I my line got disconnected. I think it makes sense to uh show the core markets NSV 1:30:05 1 hour, 30 minutes, 5 seconds and keep emerging markets out because emerging markets can impact the numbers considerably. 1:30:13 1 hour, 30 minutes, 13 seconds Yeah. No the net realization per case the the conversation was around net realization and I've taken it on board 1:30:20 1 hour, 30 minutes, 20 seconds uh as as uh Manoj was asking is there any harm in sharing that information I said no it's something we will we will 1:30:29 1 hour, 30 minutes, 29 seconds just do internal uh think around it and uh try and weigh the decision and then we'll come back on it but we've taken 1:30:36 1 hour, 30 minutes, 36 seconds your uh thought and input on board okay sir thank you very much that's all for my s thank you thank Thank you. Thank you. 1:30:45 1 hour, 30 minutes, 45 seconds Thank you. 1:30:50 1 hour, 30 minutes, 50 seconds Our next question come from the line of Chandra Shaker Shidar from Fidelity International. Please go ahead. 1:30:57 1 hour, 30 minutes, 57 seconds Hi. Uh good afternoon. I have three questions. Um one of Niranjan sorry if you could just remind me again on the 1:31:03 1 hour, 31 minutes, 3 seconds mathematics and how are you going to um save on interest cost because it just seems that um we're going to go down it's going to be 14 15 crores a quarter. 1:31:12 1 hour, 31 minutes, 12 seconds So where does it free up um sort of the money to invest uh in the IMF business? 1:31:18 1 hour, 31 minutes, 18 seconds That's the first question. Um second question for Shaker. Uh you did mention about the profitability of the bulk 1:31:26 1 hour, 31 minutes, 26 seconds segment but and but you did say it's that's more structurally you think the long term is 5 to 7. So you you do say there is a possibility I mean just in 1:31:34 1 hour, 31 minutes, 34 seconds the near term that we we can still overshoot that number. But just from a prudent assumption, the way you think about it is it's more a five to seven uh 1:31:42 1 hour, 31 minutes, 42 seconds over the long run. And and maybe just one question for Param. Did I hear you right that you said that sort of IMF profitability is now pushed to F27? 1:31:52 1 hour, 31 minutes, 52 seconds Thank you. 1:31:53 1 hour, 31 minutes, 53 seconds No, no, no. So the way we said it was that we had called out Chandra Shakhar 1:32:01 1 hour, 32 minutes, 1 second was that in the third complete year of operation our endeavor is to make each individual state profitable. Okay. After 1:32:10 1 hour, 32 minutes, 10 seconds completing three full years we have called out that out of five states four are profitable and one is still work in 1:32:18 1 hour, 32 minutes, 18 seconds progress purely from the fairness of where we set out from. 1:32:24 1 hour, 32 minutes, 24 seconds Then the question there was another question which revolved around that while our cumulative losses in the first 1:32:31 1 hour, 32 minutes, 31 seconds three quarters were in the range of about 4 and a half crores which means 1.5 crores per quarter Q4 suddenly came 1:32:39 1 hour, 32 minutes, 39 seconds at 5 crores what does it do contextually answering that I said these investments are basis the requirement of uh our 1:32:48 1 hour, 32 minutes, 48 seconds growth path at that point of time we may choose to overinvest in an emerging market. We may choose to spread geography. We may choose to add a 1:32:57 1 hour, 32 minutes, 57 seconds market. And then Shakhar had uh also given a addendum to it that in this particular case there was a 3 cr 1:33:05 1 hour, 33 minutes, 5 seconds additional investment made because over the years we have realized that it is better to enter new brands uh a little 1:33:13 1 hour, 33 minutes, 13 seconds before the excise year begins rather than delay or drag if they are up and ready. So in that context we had 1:33:20 1 hour, 33 minutes, 20 seconds answered we had not said in any way that the profitability is pushed forward or backward. It was the concern that uh are 1:33:28 1 hour, 33 minutes, 28 seconds the losses going to be 5 crores per quarter by one of the uh investor family uh persons on the call. I don't remember 1:33:36 1 hour, 33 minutes, 36 seconds the name it was in that context the conversation happened. Yeah. Does that clarify? Sure. Sure. 1:33:44 1 hour, 33 minutes, 44 seconds Yeah. Thanks. Yeah. So your question regarding uh margins in fact I can take up both um regarding uh liquidity and margins. 1:33:52 1 hour, 33 minutes, 52 seconds uh margins uh you know you've understood correctly we've overshot the guidance um strategically we should be within the 1:34:00 1 hour, 34 minutes guidance um uh um what we do see is typically um end of Q1 into Q2 and this 1:34:09 1 hour, 34 minutes, 9 seconds is an annual sort of feature um with monsoons um you know across the country 1:34:16 1 hour, 34 minutes, 16 seconds uh um raw material fuel prices that is just a general a bit of inflation in in 1:34:23 1 hour, 34 minutes, 23 seconds agreeing commodities. Uh and then again going into u end of Q3 1:34:30 1 hour, 34 minutes, 30 seconds um uh and Q4 we see raw material prices come down. Um uh so you know uh chaker 1:34:38 1 hour, 34 minutes, 38 seconds it's 5 to 7 is the guidance. Um you know we will have periods of a little bit higher and a little bit lower. Um and 1:34:47 1 hour, 34 minutes, 47 seconds you know the year we've uh closed at 6 um three uh so I see that we will continue to be within that 5 to 7 range. 1:34:57 1 hour, 34 minutes, 57 seconds Uh Q4 8.3 doesn't mean that Q1 also will be 8.3 1:35:03 1 hour, 35 minutes, 3 seconds it's it is a bit of a seasonal um business with regard to agri commodity 1:35:10 1 hour, 35 minutes, 10 seconds purchase. Um with regard to liquidity um the debt optimization had two parts. Um I think the first thing that we were 1:35:18 1 hour, 35 minutes, 18 seconds after was reducing um cash flow debt repayment burden. Um uh um so that u you 1:35:26 1 hour, 35 minutes, 26 seconds know it brings up liquidity. Uh and the other thing that we went after was uh interest rates. Uh the team did a 1:35:33 1 hour, 35 minutes, 33 seconds fantastic job on this and um I think we've saved the total of um uh 50 crores. Nan, is that right? 50 crores for FY27. 1:35:43 1 hour, 35 minutes, 43 seconds 50 crores. Yes. Yeah. 1:35:47 1 hour, 35 minutes, 47 seconds Sorry. So you're essentially saying you you're refied it in sort of the principles um you push it back little further sort of principal payments. Is that what you're essentially saying? 1:35:56 1 hour, 35 minutes, 56 seconds Okay. So that Yeah, that saves up the Okay. Okay. So the debt repayment obligations go down this year. 1:36:03 1 hour, 36 minutes, 3 seconds Also also to add to what Shaker says that we we have also renegotiated our interest interest rates. Our interest 1:36:10 1 hour, 36 minutes, 10 seconds rate should effectively come down by come down by 2 and a half to three crores which effectively means that our debt levels will also come down on borrowings by another 30 to 35 crores. 1:36:22 1 hour, 36 minutes, 22 seconds Understood. Thank you. 1:36:25 1 hour, 36 minutes, 25 seconds Yeah. See that as it may, UP has been capitalized. So interest will go back to around 14 15 crores per quarter. Yeah. Yeah. Yeah. Yeah. 1:36:34 1 hour, 36 minutes, 34 seconds Thank you. 1:36:36 1 hour, 36 minutes, 36 seconds Thank you so much lady ladies and gentlemen due to the time constant that was the last question for today. I now hand the conference over to Mr. Shaker 1:36:45 1 hour, 36 minutes, 45 seconds Suru for closing. Thank you and over to you. Um, thank you everyone for joining us today and uh um if there are any 1:36:52 1 hour, 36 minutes, 52 seconds unanswered questions, please do reach out to us and we will get back to you as soon as possible. Um, thank you again. Have a great day and a good weekend. 1:37:01 1 hour, 37 minutes, 1 second Bye. 1:37:12 1 hour, 37 minutes, 12 seconds Thank you so much on behalf of Global Spirits Limited. That concludes this conference. Thank you for joining us and you may now disconnect your links.