Godrej Agrovet Ltd — Q4 FY26

Godrej Agrovet Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=X1ExnTirwm4 Published: 9 days ago

0:01 1 second Ladies and gentlemen, good day and welcome to the Godidge Agroate Limited Q4 FY26 earnings call hosted by ICICA 0:09 9 seconds Securities. As a reminder, all participant lines will be on listenonly mode and there will be an opportunity for you to ask questions after the 0:17 17 seconds presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your Touchstone phone. 0:26 26 seconds Please note that this conference is being recorded. I would now like to hand the conference over to Mr. Proelin from ICA securities. Thank you and over to you. 0:37 37 seconds Thank you. Uh good afternoon everyone. 0:39 39 seconds Thanks for making the time and joining on joining us on this Agroette Q4 FI26 earnings conference call. From the 0:47 47 seconds company we have with us members of the senior management including Mr. Navidid Godidge the chairman of the company, Mr. 0:53 53 seconds Bajis uh Godidge the chairman designate Mr. Sunil Kataria the chief executive officer and managing director Mr. S. 1:01 1 minute, 1 second Verdaraj the chief financial officer and Mr. Arijit Mukharji the executive director and chief operating officer of Aztec life sciences. We would uh like to 1:10 1 minute, 10 seconds begin the call with brief opening remarks from the management following which we will have the forum open for an interactive Q&A session. Before we 1:18 1 minute, 18 seconds start, I would like to point out that some statements made in today's call may be forward-looking and a disclaimer to this effect has been included in the 1:27 1 minute, 27 seconds earnings presentation that the company has shared with you earlier. Without further ado, I would like now like to invite Mr. Nadridge to make the initial remarks. Over to you, sir. 1:36 1 minute, 36 seconds Thank you. Good afternoon, everyone. I welcome you all to the Godidge Agraet earnings call. I will begin by briefly 1:44 1 minute, 44 seconds commenting on our performance for quarter 4 fiscal year 26 and the full year of fiscal year 26. 1:53 1 minute, 53 seconds Agravet delivered a strong and consistent performance in quarter 4 fiscal year 26 concluding the year on a positive note for the quarter. 2:02 2 minutes, 2 seconds Consolidated revenues grew to 2,333 cr rupees reflecting a 9% year-on-year 2:12 2 minutes, 12 seconds growth. While profit before tax excluding non-recurring and exceptional items increased by 16.8% 2:21 2 minutes, 21 seconds to 87 cr rupees. This performance was driven by broad-based volume-led growth, 2:28 2 minutes, 28 seconds disciplined margin management, and a favorable business mix across key segments. For the full year ended 31st 2:36 2 minutes, 36 seconds March 2026, the company surpassed an important milestone with consolidated 2:42 2 minutes, 42 seconds revenues exceeding 10,000 cr rupees reaching 10,233 2:50 2 minutes, 50 seconds cr rupees rep representing a robust year-on-year growth of 9%. 2:57 2 minutes, 57 seconds Profit before tax excluding non-recurring and exceptional items increased by 17.2% 3:06 3 minutes, 6 seconds year on year to 569 cr rupees reflecting the improved quality of earnings margin 3:13 3 minutes, 13 seconds expansion and strong execution. In addition to earnings growth, fiscal year 26 also saw a meaningful 3:23 3 minutes, 23 seconds reduction in working capital, translating into stronger operating cash flows and a tangible 3:32 3 minutes, 32 seconds improvement in return on capital employed. Let me now briefly walk you through the performance of our key 3:39 3 minutes, 39 seconds business segments. Animal nutrition delivered another strong quarter with quarter 4 volumes growing 15% yearonear significantly ahead of industry growth. 3:52 3 minutes, 52 seconds Cattle feed volumes increased sharply by 24% supported by strong performance of new products launched favorable commodity 4:01 4 minutes, 1 second positions and continued cost optimization. 4:05 4 minutes, 5 seconds Margins expanded meaningfully across the portfolio. The oil farm business concluded a landmark year in fiscal year 4:14 4 minutes, 14 seconds 26 marked by highest ever area expansion, strong volume growth and 4:20 4 minutes, 20 seconds alltime high oil extraction ratio. While quarter 4 is seasonally weak, margins 4:27 4 minutes, 27 seconds were largely resilient, aided by improved oil extraction ratios and improved realizations. The crop care 4:36 4 minutes, 36 seconds business remained impacted in quarter 4 fiscal year 26 due to carry forward of inventory in the core marketing channel 4:44 4 minutes, 44 seconds leading to lower volumes of in-house products. This was partially offset by improved sales of selected specialty 4:52 4 minutes, 52 seconds products. Aztec Life Sciences continued its strong turnaround momentum with 4:58 4 minutes, 58 seconds EDITA break even in fiscal year 26. In quarter 4 fiscal year 26 both revenue 5:06 5 minutes, 6 seconds and EDITA recorded robust year-on-year growth driven by higher volumes led by 5:12 5 minutes, 12 seconds the CDMO category, improved realization and better capacity utilization. 5:19 5 minutes, 19 seconds Enterprise margins improved further compared to quarter 4 fiscal year 25. I would also like to mention that in line 5:29 5 minutes, 29 seconds with our focus on harnessing group expertise in chemicals, we have recently augmented the Aztec board with Mr. 5:37 5 minutes, 37 seconds Vishal Sharma as non-executive chairperson, Mr. Matthew Ike as independent director, Mr. Arijit 5:45 5 minutes, 45 seconds Mukheraji who has been the COO of the business has joined the board as executive director and will be leading 5:54 5 minutes, 54 seconds the business going forward. These appointments meaningfully strengthen Apex leadership and we believe will be 6:02 6 minutes, 2 seconds instrumental in accelerating growth and unlocking its true potential. Streamline Daily recorded approximately 5% 6:11 6 minutes, 11 seconds year-on-year growth in revenues excluding bulk sales during quarter 4 fiscal year 26. Profitability remained 6:19 6 minutes, 19 seconds under pressure due to elevated milk procurement costs though value added product salience improved to around 40% 6:28 6 minutes, 28 seconds up from 38% last year. Gorgeous Foods Limited continued its strategic shift towards branded offerings. In quarter 4 6:37 6 minutes, 37 seconds fiscal year 26, AITA margins improved significantly driven by margin expansion in both the live bird and yummies 6:46 6 minutes, 46 seconds categories supported by improved realizations. Branded revenue salience remained above 80% in fiscal year 26. 6:57 6 minutes, 57 seconds Overall fiscal year 26 was a year of strong performance for Goodrich Acroet underpinned by disciplined execution, 7:06 7 minutes, 6 seconds improving business mix and sustained focus on value added and branded portfolios. We also made meaningful 7:14 7 minutes, 14 seconds progress on our sustainability agenda under the good and green vision with leadership positions across climate, water and renewable energy initiatives. 7:27 7 minutes, 27 seconds Thank you. 7:32 7 minutes, 32 seconds Should we begin the question and answer session? Yeah, let's do that. Yeah. 7:37 7 minutes, 37 seconds Thank you ladies and gentlemen. We will now begin the question and answer session. Anyone who wishes to ask a 7:44 7 minutes, 44 seconds question may press star and one on their touchstone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants 7:53 7 minutes, 53 seconds are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question Q assembles. 8:12 8 minutes, 12 seconds We'll take our first question from the line of Abijit Aka from Kotak Securities. Please go ahead. 8:19 8 minutes, 19 seconds Yeah, good afternoon and thank you so much for taking my questions. Um I limit myself to two or three in the first 8:25 8 minutes, 25 seconds round. uh first u uh you know from the standpoint of FY27 the way you're seeing uh uh the outlook for your various 8:34 8 minutes, 34 seconds segments uh would it be possible to offer us some sort of uh you know outlook or guidance regarding what kind of revenue growth what kind of profitability we it might be fair to 8:42 8 minutes, 42 seconds expect for the year ahead hey hi here 8:50 8 minutes, 50 seconds so obviously uh you know the direction that or let's say broad guidance that we give for 27 7 has one overhang of Iran 8:58 8 minutes, 58 seconds war which you know none of us have anticipated and that's one piece which I would say remains a bit of a variable still I think open for everybody as how 9:06 9 minutes, 6 seconds it pans out currently but given from the you know strong work that we've been doing in the last 8 9 months uh overall 9:13 9 minutes, 13 seconds at a G level we'd like to look at we we'd like to focus on getting a early double- digit revenue growth across put 9:21 9 minutes, 21 seconds together at a console level uh along with the the way our PBD has improved this year would like to again target 9:29 9 minutes, 29 seconds let's say a mid strong double digit mid- teens kind of a PBT growth also for the next year so that's a broad directional 9:38 9 minutes, 38 seconds uh overall growth that we would like to gun for uh between the businesses uh I think animal nutrition business has done 9:44 9 minutes, 44 seconds a very strong showing across and uh and also before that I think the entire revenue growth for us by and large we 9:52 9 minutes, 52 seconds are focused on driving through underlying volume growth. So that's another large piece that will play out for us. So they're focused on getting volumedriven uh revenue growth. Uh the 10:01 10 minutes, 1 second in terms of businesses, I think first of all animal nutrition quickly uh the business has been doing pretty well across led by cattle, feed and even some 10:08 10 minutes, 8 seconds other uh feed businesses. Uh that's something momentum continues. Would like to again go for a double digit growth in 10:15 10 minutes, 15 seconds revenue led by volume in animal nutrition business as we would like to call it now. uh and uh similarly uh for 10:24 10 minutes, 24 seconds our crop care business next the the next year is likely is a year which we'd like to go for a recovery and that's what we 10:31 10 minutes, 31 seconds are calling as a year of recovery for this however at the same time one piece I want to just point out is that the recovery of the crossare business we 10:39 10 minutes, 39 seconds would start f we'll start seeing it coming back fully from quarter two onward because the last year also there's a co-arketing based inventory 10:47 10 minutes, 47 seconds which is sitting in our Q1 base of last year and that will play out in this Q1 for CCB business or the cropare business otherwise we'll go for very strong 10:56 10 minutes, 56 seconds recovery in both bottom line and top line and it will be again a very high double digit numbers that will happen in the cropare business in CDL business the 11:05 11 minutes, 5 seconds journey continues toward increasing value added uh portfolio further uh the the pressure points will be I think on the milk recruitment prices which we 11:13 11 minutes, 13 seconds expect it to cool down somewhere from quarter two gradually and then the broad direction is that quarter two onward the 11:21 11 minutes, 21 seconds milk price should kind of normalize. Uh the good foods part again in the valuated piece which is primarily the branded piece again the focus is very clearly to drive double digit growth. 11:31 11 minutes, 31 seconds The momentum that we already built for ourselves uh that is again going to continue live B continues to keep coming down for us and that's where we'll keep 11:39 11 minutes, 39 seconds on investing in both these businesses behind advertising to ensure that there's a strong double-digit volume growth happening. uh oil palm uh on a very very strong footing right now. 11:49 11 minutes, 49 seconds Again looking for another year of double digit volume growth in oil pal early double digit and we have done some exceptional work on oil extction ratio. 11:57 11 minutes, 57 seconds Uh we definitely see some more work happening there and uh we have done a record area expansion this year. Uh next 12:05 12 minutes, 5 seconds year we're gunning for even beating that record on area expansion. uh we also so I think I have covered animal nutrition 12:12 12 minutes, 12 seconds and ASC and on the ASC business I think Ajit would come in between specific questions but broad direction let me 12:19 12 minutes, 19 seconds give you that we have seen a strong comeback led by CDMMO our pipeline funnels are looking pretty good we 12:26 12 minutes, 26 seconds expect that momentum to continue with a clear focus on CDMO le growth happening and we have become a bit uh break even this year and we will expect that 12:35 12 minutes, 35 seconds journey to continue uh going forward so overall All in all, there is momentum that is there in the business, we expect the momentum to continue across all 12:44 12 minutes, 44 seconds parts of our business and with some businesses which are taking a beating into a recovery mode. 12:50 12 minutes, 50 seconds No, thank you for that Sunil that's really helpful. Um just uh one or two follow-ups if I may. One is on the uh palm oil business. So you mentioned that 12:59 12 minutes, 59 seconds all of the topline growth is uh you know targeted to be driven by volume expansion but at the same time we are seeing fairly strong palm oil prices at 13:07 13 minutes, 7 seconds this point in time. So is that all over and above this guidance that we are kind of uh you know looking at and and what is your outlook for palm oil prices? I 13:16 13 minutes, 16 seconds mean do you see them remaining firm here for the foreseeable future or how do you see the trajectory? 13:20 13 minutes, 20 seconds Okay so this is I'll give my a bit point and then I'll ask NBC it should also step in. uh but first of all I think you know the way we there are certain kind 13:27 13 minutes, 27 seconds of palm oil modeling that had happened pre-Iran war where the output outlook for the year on palm oil was actually a 13:34 13 minutes, 34 seconds little bearish this year let me tell you when I had gone to you know Malaysia the conference which really the world conference which happens which gives a 13:42 13 minutes, 42 seconds kind of outlook this was looking like a little bearish year and then this war happened and obviously now all models have gone a bit haywire on farmer oil so 13:51 13 minutes, 51 seconds for me to be very honest to say that what is the year-long outlook on palm oil. I think we are right now playing it quarter to quarter honestly you know uh 14:00 14 minutes so it's very very uh difficult to give you a very long-term point of view but uh I would say I we will take it by the 14:08 14 minutes, 8 seconds uh quarter and maybe I'll guess NVG if NVG wants to also give any sense of what this take on this is right now. Mr. tourist. Uh, sure. Would you like to? 14:17 14 minutes, 17 seconds Yes. I I would also mention that a lot depends on what happens in the Middle East and palm oil prices are strongly 14:26 14 minutes, 26 seconds correlated with crude oil prices uh because of the connection through biodeiesel and therefore a lot will 14:34 14 minutes, 34 seconds depend on that. But I would also like to say that uh the mini if the Middle East 14:41 14 minutes, 41 seconds war continues it will probably be bad for the crop protection business but good for oil palm. So for agroat overall 14:51 14 minutes, 51 seconds the impact either way may not be very great. Thank you. 14:58 14 minutes, 58 seconds Got it. Yeah. Thank you so much. And and um yeah if I may ask one last one before I return the queue. Uh um just on the 15:06 15 minutes, 6 seconds Aztec business u you know obviously with all this u management uh kind of uh restructuring that has recently happened 15:13 15 minutes, 13 seconds or should I say just you know changes at the the senior management level um would really appreciate some color from uh you 15:20 15 minutes, 20 seconds know the promoters or senior management regarding the way forward for Aztec as well as the overall chemicals business 15:26 15 minutes, 26 seconds of the goodrich group. I will ask you so maybe I would ask Burges to give a few points on this and then over to you. 15:37 15 minutes, 37 seconds Yes. Hi Aijit this is Burgger speaking. 15:40 15 minutes, 40 seconds I just want to say that we do believe that Aztec has very strong underlying potential and this is supported by Goodridge Industries Group's very deep 15:48 15 minutes, 48 seconds chemical experience and manufacturing expertise. So we did make some recent management and board changes which 15:56 15 minutes, 56 seconds reflect our intent to leverage this expertise more effectively and accelerate value creation and synergies. 16:03 16 minutes, 3 seconds The board is strengthened with the induction of Mr. Sharma as chairman and Mr. Matthew Ipe on the board whose 16:10 16 minutes, 10 seconds sectoral experience we believe will materially benefit Aztec and Arijit Mukherji has been closely involved with Aztec's operations as COO for over a 16:20 16 minutes, 20 seconds decade will now drive the business forward as an executive director. Sunil and I will continue on the board and 16:27 16 minutes, 27 seconds this will ensure continuity and we are very confident that leveraging the group expertise will be the starting point for 16:34 16 minutes, 34 seconds an accelerated scale up of this business. 16:38 16 minutes, 38 seconds Yeah and and and uh one more thing which I just want to add here on this Ajit is that in terms of structure it is too premature for us to comment on the same 16:46 16 minutes, 46 seconds you know we are in the process of evaluating what is the most optimal structures and how it will go forward and I think you know maybe over a period 16:53 16 minutes, 53 seconds of next two three quarters then once we have bit more clarity in our mind and thought process we'll come back to all of you on that for now we just want to 17:01 17 minutes, 1 second assure that the interest of all minority shareholders will be protected and our endeavor is actually to make sure that we enhance and shareholder value for 17:08 17 minutes, 8 seconds everyone. So I think uh there was a bit more time. I think as we are more clear we'll come back to you over the coming two three quarters. 17:20 17 minutes, 20 seconds Okay. Sure. Uh yeah and my apology but just a last quick two if I may just squeeze in before I return uh you know 17:28 17 minutes, 28 seconds for more. Um on the animal feed side of things uh the volume growth seems to have accelerated quite sharply in the 17:35 17 minutes, 35 seconds last few quarters. So what's behind this and how do you see that going forward? 17:40 17 minutes, 40 seconds Also are margins expected to stabilize and if so what are the drivers behind that? That was one piece on the animal feed business. The other was just with 17:48 17 minutes, 48 seconds regard to your outlook for capex uh working capital and free cash flow for the year ahead. Uh you know what what should we pencil in for each of these uh 17:56 17 minutes, 56 seconds items and what are the proposed uses of any surplus cash that we might generate. Thank you so much. 18:01 18 minutes, 1 second Okay. So I think on the animal nutrition business I think it's a mix of some very very strong execution which has been happening and some uh you know 18:09 18 minutes, 9 seconds environmental support. So the one let me first say the little bit part of the environmental support I would not say that's played the biggest role is the 18:17 18 minutes, 17 seconds fact that as when milk procurement ru prices remain so elevated it does become a kind of a positive trigger for shift 18:24 18 minutes, 24 seconds from unbranded to branded compound feed business because the farmers see the benefits of the income which they're generating from a better higher leaf 18:31 18 minutes, 31 seconds field. So that obviously is one thing which we have seen in the last you know seven eight months which has impacted our Kremlin dairy business pretty 18:39 18 minutes, 39 seconds negatively but that's something which plays positively in this part of the business. Having said that, I think there have been two truth three some very fundamental execution levers that 18:47 18 minutes, 47 seconds we press. One, first and foremost, I think there has been a strong work across some key geographies that we have 18:54 18 minutes, 54 seconds focused on. Uh we have done very well in west which has always been our stronghold. But I we have done also very focused work towards east and central 19:03 19 minutes, 3 seconds India which have maybe been a bit of a traditionally a weaker part of our business and that we have started seeing some gains uh in this. Obviously the 19:10 19 minutes, 10 seconds business it's very difficult to get a Nissan equivalent share gain report but our hunch is that we have started making some uh share gains out of in these two 19:18 19 minutes, 18 seconds other geographies that we've started focusing on. That's one thing which has happened. Secondly, there are some products that we had launched uh you 19:25 19 minutes, 25 seconds know a few quarters back and some in the last quarter which I think started giving us some gains and these products 19:32 19 minutes, 32 seconds are aimed at more uh you know higher end or what we call as the type one products which are targeted at higher yield uh 19:41 19 minutes, 41 seconds you know animals which again while it's I won't call it premiumization in that sense right now but that is a focus in a way I would say a little bit more valued 19:50 19 minutes, 50 seconds part of the business which we're trying to push to grow. So that is the second piece uh which has very clearly happened. I would also want to call out that our R&D has done some very strong 19:59 19 minutes, 59 seconds work in terms of also uh you know reconfiguring certain cost structures in 20:05 20 minutes, 5 seconds our uh you know raw material prices raw material components here which also has given us some benefits in the uh margin 20:13 20 minutes, 13 seconds expansion. So I think put together these three four things are something which are you know paid out for us pretty well over the animals nutrition business. Can I add something Sunil? 20:23 20 minutes, 23 seconds Yeah. Yeah. Yes. 20:24 20 minutes, 24 seconds Yeah. I would like to add that Sunil has brought a lot of focus on the sales organization and the marketing organization. We always had very strong 20:33 20 minutes, 33 seconds R&D but now we are focusing it more directly on the consumer and as a result we have developed these new products and 20:41 20 minutes, 41 seconds I think these initiatives will continue and we have the potential of helping the farmers greatly by making better quality 20:49 20 minutes, 49 seconds feed which give um more production from the animals at a lower cost and we will 20:56 20 minutes, 56 seconds drive our R&D knowledge in with better marketing to satisfy the farmer and grow the business. 21:06 21 minutes, 6 seconds Thank you. And I think Va also wants to say now take on the question uh on that 21:13 21 minutes, 13 seconds cash flow and capital. So uh be it in terms of animal nutrition uh before I move to the cash flow uh in terms of the 21:22 21 minutes, 22 seconds segment margin improvement which we saw part of the reason for the improvement 21:28 21 minutes, 28 seconds in segment margin in Q4 is that uh that includes the pet food business income of 21:35 21 minutes, 35 seconds around 9 and a half crores. Now uh this is uh this is a uh we sort of take care 21:42 21 minutes, 42 seconds of the back end or the manufacturing business of the pet food. The front end is uh taken care by uh 21:51 21 minutes, 51 seconds GCP codage pet care food business and the back end is sort of taken care of by us. So that's a line of business for us 22:00 22 minutes in a small way the manufacturing in a way I would just add in here in a way it's a new stream of operations for us. You can say it's a bit of a it's actually a kind of a new category 22:08 22 minutes, 8 seconds expansion work for us at the back end where as this uh business area is moving forward we are also going to get some 22:18 22 minutes, 18 seconds strong income coming out of this business right uh and consequently uh unfortunately what has happened is the 22:26 22 minutes, 26 seconds way we have sort of structured this arrangement it sort of sits in the other income uh line and uh that is the reason 22:34 22 minutes, 34 seconds why you don't see it in the normal uh space. So that's one reason why the segmental results for the animal feed business has sort of animal nutrition 22:43 22 minutes, 43 seconds business has gone up. In terms of uh the cash flow uh you know we expect that for 22:50 22 minutes, 50 seconds the full year of FI27 we'll be sort of after taking care of the capex requirement of the year which is close 22:58 22 minutes, 58 seconds to 400 crores we should be left with around 100 125 kind of crash surplus which should be there. Yeah. And in 23:06 23 minutes, 6 seconds terms of capex, I think the capex requirements would be in the coming year we have we pretty much first of first although our overall capex which would 23:13 23 minutes, 13 seconds range around 350 odd crores uh roughly around 75 to 80% of that capex would be growth capex for us and we are pretty 23:20 23 minutes, 20 seconds clear in my mind we have done a that the entire capital allocation would be towards high growth businesses and that is where the entire capex is going 23:28 23 minutes, 28 seconds through if I remember correctly and correct me uh uh wrong roughly right I think 50 odd% of our capex Yes. 23:36 23 minutes, 36 seconds Uh deployment is going towards oil pan oil business. Oil palm business. Correct. Yeah, that's right. 23:44 23 minutes, 44 seconds Yep. Sorry, just to clarify this um pet food business of 9 and a half cr the income there that this is the profit we are talking about is it or the revenue? 23:52 23 minutes, 52 seconds Yeah, this is a profit. Yeah, there's a profit. Yeah. And this is an additional stream of income for us going forward. 23:58 23 minutes, 58 seconds Yes. And what would the corresponding revenue pertaining to that be? 24:03 24 minutes, 3 seconds We revenue doesn't come to us because revenue doesn't uh see we are manufacturing this product for them right yeah so we are the manufacturers of this 24:11 24 minutes, 11 seconds product the revenue doesn't belong to us the profit of it's it's a payout on the manufacturing fees that happen to us so it's kind of a contract manufacturing 24:20 24 minutes, 20 seconds kind of arrangement so Abijit as you would appreciate uh the the manufacturing part of the business 24:28 24 minutes, 28 seconds is taken care of by us but uh you would be you would appreciate that As per our accounting standards, accounting guidelines, we are required required to 24:36 24 minutes, 36 seconds account the entire transaction in a particular manner and that is the reason why we don't see the revenue stream coming in. Yeah. 24:45 24 minutes, 45 seconds Okay. Understood. Thank you so much. 24:48 24 minutes, 48 seconds There's a good adjacency for us which is developing. 24:52 24 minutes, 52 seconds Sure. Thank you so much. I'll return for any more in this. Thank you. 24:58 24 minutes, 58 seconds Next question is from the line of Arjun Karna from Kotab Mutual fund. Please go ahead. 25:03 25 minutes, 3 seconds Uh thank you for taking my question. Uh so the first question is uh regarding uh the impact of monsoons. Uh so there is 25:12 25 minutes, 12 seconds uh a prediction by Sky and uh IMD that we'd probably see uh below normal monsoons this year. Uh you did talk 25:20 25 minutes, 20 seconds about the impact of the war on our business. Uh could you just comment on how you see the outlook for the year? 25:26 25 minutes, 26 seconds while you did give us a brief uh interplay with uh the weaker monsoons segment wise. Thank you. 25:39 25 minutes, 39 seconds Ladies and gentlemen, we've lost the management connection. Please stay on the line while we reconnect them. 26:02 26 minutes, 2 seconds Ladies and gentlemen, we have the management team back on the line. 26:05 26 minutes, 5 seconds Arjun Arjun, we lost you between. 26:08 26 minutes, 8 seconds Sure. I'll just uh reframe my question again. Uh uh uh we did in the opening remarks uh talk about the impact of the 26:17 26 minutes, 17 seconds war uh on our business and I we also give an commentary on the outlook for the year. uh given that there is a prediction from IMD and Skyat that the 26:26 26 minutes, 26 seconds monsoons this year would be below normal uh below long period average. Uh how do you see that interact uh with uh uh our 26:34 26 minutes, 34 seconds uh predictions for the year in terms of volume growth and which segments do you see positively or negatively impacted due to the same? 26:43 26 minutes, 43 seconds Honestly, you know, we all have a smile on our face when you're asking this question. You know to be very honest when we made this whole guidance and this plan we were still not very sure 26:52 26 minutes, 52 seconds how the uh you know Skynet and IMD's predictions would pan out. They have obviously become clear to us in the last 30 odd days especially with IMD giving a 27:00 27 minutes you know a prediction which is worse than Skynet right now. uh honestly uh I mean these numbers don't figure in a 27:09 27 minutes, 9 seconds real Alino impact but at the same time I think it's very difficult for us to right now put in any part of Alino because three reasons or two reasons one 27:17 27 minutes, 17 seconds uh the all the predictions are saying that June will be pretty normal and then there'll be a gradual decline with August and September genuinely becoming 27:26 27 minutes, 26 seconds pretty bad so the severity would I think hit August and September if these predictions were to come right now what this means is that it is not a that June 27:36 27 minutes, 36 seconds July would still fall within the LPA range as the you know mon as the metro department you know describes it. So I 27:45 27 minutes, 45 seconds would say this alino will have maybe a two halves to it. That's point one. 27:48 27 minutes, 48 seconds Second part is there is always in this alino one thing which happens is that how does it play out geographically. Now our businesses have all different kinds 27:57 27 minutes, 57 seconds of skews. Like for example the crop production business for us has a pretty decent skew towards south and west. Now 28:05 28 minutes, 5 seconds as of now if I if I to go by this monsoon it says the only region which is likely to play out normal in the entire 28:12 28 minutes, 12 seconds alino period is south. Now if that happens then this alino is not exactly elino for us in the cropare business 28:20 28 minutes, 20 seconds while it may have impact on some other businesses. And the third part very clearly is there's always this probability of a Indian Ocean dipole or 28:30 28 minutes, 30 seconds something you know developing and then maybe the you know uh you know effect could get in a month some kind of a 28:37 28 minutes, 37 seconds moderated. So honestly there is clearly a you know playing out now how it plays out in geographies how it plays out in 28:44 28 minutes, 44 seconds time period uh is a bit of a variable which is still very difficult to take a hard column. So the way we would see it, 28:53 28 minutes, 53 seconds we would like to stay course on this guidance as of now and uh uh see how we can play it out across once this elino 29:00 29 minutes becomes clear by the month. That's where I would say right stay right now. 29:04 29 minutes, 4 seconds Sure. Uh just wanted you want to say something about oil farm and okay yeah why don't you pitch in you 29:13 29 minutes, 13 seconds know. Yeah I you can pitch in then I'll add on to that. Yeah. Right. 29:18 29 minutes, 18 seconds Yeah. So uh we feel uh that there will not be a very bad impact on oil pal this 29:26 29 minutes, 26 seconds year even if the monsoon is poor uh because it oil pan being a tree it takes a long time to get affected there could 29:35 29 minutes, 35 seconds be some effects next year but we will do a lot of research to see if there are any solutions to prevent bad effects 29:43 29 minutes, 43 seconds next year as well. Yeah, but you know to add on to that we have you know we have certain kind of so in 29:50 29 minutes, 50 seconds an in an overall piece on oil farm we don'tffect uh expect any impact of elon oil farm plantation business this year 29:59 29 minutes, 59 seconds and there are certain kind of intervention we have planned to see how to counter Elino in this year so that it also does not impact us too badly next 30:07 30 minutes, 7 seconds year plus one more thing I want to also add on to oil farm plantation business from a long-term point of view see there is a very interesting Think of what we 30:16 30 minutes, 16 seconds are internally calling as demographic dividend which is playing out for us in this business that a lot of like today roughly around 50% of our trees are in 30:25 30 minutes, 25 seconds the stage which we call as a juvenile stage which is 0 to four when they're completely unproductive and as we have been doing a lot of plantations now over 30:34 30 minutes, 34 seconds a period of time starting from this year the next year and then next year all these juvenile trees will start becoming younger trees which become productive 30:43 30 minutes, 43 seconds it's almost like typically what India has seen the benefit and I love this word I that's why I'm introducing team what the team saying hey this business 30:51 30 minutes, 51 seconds is actually going to see a demographic dividend over the next 5 years so while what NB is mentioning that there first of all this year no impact if at some 30:58 30 minutes, 58 seconds stage some impact comes in a year after my hunch is that my reading is that it will be more than made up by our demographic dividend playing out because 31:07 31 minutes, 7 seconds more and more part of our business will start coming into a productive stage and that that can more 31:15 31 minutes, 15 seconds than offset any negative impact which may happen at some year or so. So I I I'm pretty bullish about that overall 31:24 31 minutes, 24 seconds with the uh intervention that you're playing out the demographic div playing out overall I guess the oil farm plantation business should be pretty strong going forward for us. 31:34 31 minutes, 34 seconds Uh perfect that's good to know. And just the last bit on the animal feed piece because historically uh a poorer monsoon 31:40 31 minutes, 40 seconds as we saw in 23 uh uh calendar year 23 or August 23 uh if I look at FI24 that's 31:48 31 minutes, 48 seconds the highest ever revenues we have done as a company. Uh so if you could just talk about the correlation between our animal feed piece and the monsoons. 31:57 31 minutes, 57 seconds Yeah. Okay. I mean normally I think our correlation is pretty well to what happens to the milk yield. I would say 32:04 32 minutes, 4 seconds you know I think so I think uh I think that's I would say is a larger variable than anything else in this business you know. 32:13 32 minutes, 13 seconds Sure. Fair enough. Uh so the second uh query I had was more bookkeeping. Uh if we look at the other equity line uh in 32:20 32 minutes, 20 seconds our balance sheet for FI26 it's substantially lower than FI25. 32:25 32 minutes, 25 seconds Uh given that you have had uh good profits yes you have paid out dividends. 32:29 32 minutes, 29 seconds Could you explain the difference of the 300 plus crores reduction in other equity? Just give a second. 32:38 32 minutes, 38 seconds Okay. Yes. Arjun the reason why that is happening is because when in the current 32:44 32 minutes, 44 seconds year FI 2526 we acquired the remainder stake in our dairy business that is fair. So the loss is fair. Understood. 32:54 32 minutes, 54 seconds Well understood. Yeah. Okay. Right. 32:58 32 minutes, 58 seconds Okay. Sure. Thanks. That's it from my side. Wishing you all the best. 33:04 33 minutes, 4 seconds Thank you. Before we take the next question, would like to remind participants to ask a question, please press star one on your phone. Next 33:13 33 minutes, 13 seconds question is from the line of Manish Badani from 361 Capital. Please go ahead. 33:18 33 minutes, 18 seconds Uh thank you sir for an opportunity. Uh sir, my first question is on the asset life trans. Uh like we earlier used to 33:25 33 minutes, 25 seconds procure the lot of raw material from the China. So how much currently we are sourcing from the China percentage firms for the asset lifes. 33:35 33 minutes, 35 seconds Okay. So I would ask Arjit to pitch in here. Ajit over to you. 33:39 33 minutes, 39 seconds So for last year the purchase has been in the around 47% of the total imports have come from China. 33:47 33 minutes, 47 seconds Okay. And like uh we also some sort of on the backward integration. So how is it going on? 33:54 33 minutes, 54 seconds So backward integration is in two aspects. One it is done continuously because all not only for our own molecules for other molecules also we 34:02 34 minutes, 2 seconds generally go on reviewing what what to do with the backward integration but always a backward integration is not only based on the price right backward 34:11 34 minutes, 11 seconds also will also generate has to generate some long-term value creation it has to match our assets it has to match our uh 34:19 34 minutes, 19 seconds our chemistries also so as of now what we have done for most of our enterprise molecules we are fully backward integrated in the sense If there is a 34:28 34 minutes, 28 seconds supply constraint or the prices goes up or supplies are not there, we can immediately start the backward integration process so that the supplies 34:35 34 minutes, 35 seconds are not affected. Similarly, for major of the CDMOS, we talk with the partners and we are going for a backward integration. So, it is a continuous but 34:44 34 minutes, 44 seconds it all depends on the valuation on the value creations and also the cost competitiveness. 34:51 34 minutes, 51 seconds Okay, got it. And like as we all know that the Indian currency is depreciating. So given a substantial 34:58 34 minutes, 58 seconds part that we are importing from the China. So how we are managing this input cost and like what sort of the market 35:04 35 minutes, 4 seconds impact we are seeing from this in our sort of business say currency 35:13 35 minutes, 13 seconds management or currency volatility is a part of a structurally we approach to it right but you have to remember that we are a net exporter. So onceever the 35:21 35 minutes, 21 seconds depreciation happens and the export realization actually offers a natural hedge to the imports. So that is one 35:28 35 minutes, 28 seconds aspect. Secondly we manage our import properly in terms of proper time of uh say importing the log so that the 35:36 35 minutes, 36 seconds production there is no too much of inventory buildup. There is also some actions is taken in terms of w with the 35:44 35 minutes, 44 seconds currencies currencies also is there. So that say in the short term we generally take care of the currency volatility and 35:52 35 minutes, 52 seconds being a net exporter it has almost neutral to no neutral impact in terms of the overall businesses margin. It does 36:00 36 minutes not impact too much in the overall business. In fact, maybe I would I maybe maybe I would say maybe a little bit that again this currency volatility is 36:08 36 minutes, 8 seconds something very difficult to predict but yeah I maybe in the short term if this remains too high there could be a mild positive benefit for which happen given 36:15 36 minutes, 15 seconds that we are a net exporter net exporter overall you know but again these are things you know which as we know they are pretty much changing by the month you know. 36:25 36 minutes, 25 seconds Go ahead. Got it. And uh it will be valuable if you share the outlook on the product mix like uh enterprise product 36:32 36 minutes, 32 seconds versus contract manufacturing going forward like if you have any uh target and uh it's on to the domestic exports 36:40 36 minutes, 40 seconds market like what will be the contribution going forward to you? 36:46 36 minutes, 46 seconds Yeah. So in 26 enterprise constitute almost 48% of the enter revenue and CDMOS where CDM are the new products constitute around 52%. 36:56 36 minutes, 56 seconds I think next two years also it will the ratio wise it will be the same a little bit reduction in enterprise will happen only after financial year 28. 37:05 37 minutes, 5 seconds So comp and in terms of the exports this year we clocked around 53% of of the total revenue through exports. Next year 37:12 37 minutes, 12 seconds if we see the enterprise molecules moving up we should be somewhere between 60% of the revenue coming from exports. 37:21 37 minutes, 21 seconds Okay. Okay. Got it. You got it. And sir in I think 2022 or 2023 we also launched some brand. So how is the traction for 37:29 37 minutes, 29 seconds that brand? And uh in the coming future or like uh we uh like launch uh we have 37:36 37 minutes, 36 seconds any idea to launch any new brand like the Samuri brand we launch in 22 23 something like that. 37:43 37 minutes, 43 seconds Yeah. Okay. It's obviously Sabridi brand is one brand which led to a complete you know disruption in the market of Maharashtra for us in post 23 and as I 37:52 37 minutes, 52 seconds mentioned in the earlier uh you know answer to Abij that there are a couple more products which has started coming in for us in the last year and one such 38:01 38 minutes, 1 second product which had come in which is scaling up now pretty well for is a brand called Dhan Lakshmi and that is one piece which has started happening in markets of Maharashtra and Karnataka. 38:11 38 minutes, 11 seconds again it is targeted at the higher uh yield milk yield giving animals. So that is again which is showing us a good 38:18 38 minutes, 18 seconds traction and we hope to take that brand further to uh you know across these three states of Maharashtra, Karnataka and one more state and we expect that to 38:26 38 minutes, 26 seconds become a pretty strong uh uh you know product for us going forward in southern markets. We have also upgraded done a 38:33 38 minutes, 33 seconds renovation of a product uh which is a product from which we earlier used to have called by pro which we have upgraded to a new richer product called 38:42 38 minutes, 42 seconds by pro plus and that again is giving us a pretty decent incremental gains which are happening in parts of south. So I 38:50 38 minutes, 50 seconds think uh as Envir also mentioned somewhere in the middle that one clear focus for us going forward in our all our businesses and while nutrition 38:59 38 minutes, 59 seconds obviously it comes in that is that we are and as part of our long-term strategic uh shift we are becoming more consumercentric we're becoming more 39:07 39 minutes, 7 seconds market facing and uh R&D innovation pipelines across all our businesses will become stronger and stronger. 39:16 39 minutes, 16 seconds So thank you so much for answering all the questions this topic. 39:21 39 minutes, 21 seconds Thank you. Next question is from the line of Sumant Kumar from Motila Los. Please go ahead. 39:27 39 minutes, 27 seconds Yeah. So my questioning crop protection, sorry to interrupt. Can you use your handset mode, please? 39:35 39 minutes, 35 seconds Yeah. Can you hear me now? Yes, please go ahead. 39:38 39 minutes, 38 seconds Yeah. So can you talk on new product launches in the coming year? uh uh the in the key segment uh and also a crop 39:47 39 minutes, 47 seconds wise uh in in the crop protection segment. 39:50 39 minutes, 50 seconds Okay. So the question with respect to specifically to crop uh crop protection. Yes. Yes. 39:55 39 minutes, 55 seconds Okay. Okay. Maybe for the benefit of everybody else there are two pieces that we're changing in terms of nomenclature of businesses internally. One is we're 40:03 40 minutes, 3 seconds moving our animal feed business to a we naming it now animal nutrition business. 40:08 40 minutes, 8 seconds And it's not a name change really because we are shifting the mindset itself of the business as part of our strategic direction to a more uh 40:16 40 minutes, 16 seconds benefitled innovation and you know a market ccentric model. So we believe we would like to uh shift our mindsets to 40:25 40 minutes, 25 seconds more from a feed to a nutrition. That's one. Similarly in our crop protection business we believe that there is a segment of products that we are which we 40:33 40 minutes, 33 seconds are reasonably strong which is plant growth regulators which are about plant nutrition. So hence we would like to not only be a thinking ourselves as crop 40:42 40 minutes, 42 seconds protection business but also as a overall crop care business. So that's a second nomclature chain that we're doing. But more than just name change it's also actually a strategic mindset 40:51 40 minutes, 51 seconds and a strategic direction shift uh direction value ad that we are doing in these names you know. So that's one thing I just wanted to add in uh in the 40:58 40 minutes, 58 seconds beginning. Now uh in the cropare business uh there is one very large strategic shift that we had done that as I had mentioned somewhere earlier that 41:07 41 minutes, 7 seconds we are in the middle of this whole strategy piece is that we have been very much stuck onto a what we call as a 41:13 41 minutes, 13 seconds single point of failure that we uh in in majority of our businesses. So if you see in our cropare business we were 41:20 41 minutes, 20 seconds pretty much very very centric on being a cotton herbicide le vertical and then there was obviously another product of our gracia which was focused on chilies. 41:31 41 minutes, 31 seconds So if these two seasons go bad we see what happens was what happened last year for us which was kind of a you know a perfect storm for us. Now one thing 41:40 41 minutes, 40 seconds which is going to shift drastically over the next 5 years is that we are diversifying our portfolio very sharply. 41:46 41 minutes, 46 seconds Obviously products take time to come out of this but we are going to move away from two crop segment product to a multi-crop segment product company so 41:56 41 minutes, 56 seconds that we'll have more crops coming our way we'll have more segments from herbicide to maybe insecticide and fungicide also coming into our play so 42:04 42 minutes, 4 seconds this business should in five years be a very different business from what it's today in the immediate what you're going to see a change that in the year of FI 42:13 42 minutes, 13 seconds 27 there are two new products that are coming in which completely new products altogether into new crop segments. One is something which got launched in the 42:21 42 minutes, 21 seconds month of December last year which is Ashitaka which is our first maze entry. 42:26 42 minutes, 26 seconds It's a maze herbicide that will see a major scale up this year. So that's one product which is going to be one of our star products. The second is we are 42:34 42 minutes, 34 seconds entering into a rice plus insecticide segment through a product which is called takai which is actually a multi-crop insecticide although it's 42:43 42 minutes, 43 seconds lead uh application is padd uh so this will be a second uh new entry which will happen for us between these two products 42:51 42 minutes, 51 seconds itself we expect next year's uh just to give maybe a number a direction I'll give you how we are moving onto this 42:58 42 minutes, 58 seconds diversification uh last year since this got launched only towards the latter part of the This contribute to roughly around 3 odd% 43:06 43 minutes, 6 seconds of our revenues between these two products itself. If everything goes right in terms of weather, season etc. 43:13 43 minutes, 13 seconds don't play through one. We expect these two products itself to contribute roughly around anywhere between uh 16 to 43:20 43 minutes, 20 seconds 18% of our business. So that's the kind of shift that we'll see roughly around you know a four times salient shifting for that uh you know uh this thing that would happen for us next year. 43:32 43 minutes, 32 seconds Thank you so much. 43:33 43 minutes, 33 seconds And yeah, thank you. Next question is from the line of ages Lakhani from Unifi AMC. 43:41 43 minutes, 41 seconds Please go ahead. 43:44 43 minutes, 44 seconds Uh yeah. Hi. Uh team, my question is for Mr. Godridge. Uh Mr. Modri uh you know as a as a institutional shareholder 43:53 43 minutes, 53 seconds who's been observing your business for five plus years uh you know we appreciate the breadth of strategic 44:01 44 minutes, 1 second changes that uh have been underway to try and improve the quality of the business you know across across lines uh 44:10 44 minutes, 10 seconds from from what you've done in share gains and feed to to improving uh margin profiles in Palm by doing forward and 44:17 44 minutes, 17 seconds backward the restructuring in the buyout of poultry to to speeden up uh the changes that you've made to clean 44:25 44 minutes, 25 seconds up the crop protection portfolio now the sharper focus towards in licensing so we appreciate all of those uh you know 44:32 44 minutes, 32 seconds things uh that you've been engaging in but if I were to ask you just a next two-year view just a two-year view sir 44:41 44 minutes, 41 seconds uh so what should uh we as investors be looking uh to understand should we be 44:48 44 minutes, 48 seconds looking at a at a at a GVL which is uh trying to be more uh you know uh uh strategic uh sort of from a portfolio 44:57 44 minutes, 57 seconds restructuring perspective where you know business units are being uh clustered together uh to to to to unlock probably 45:07 45 minutes, 7 seconds value through that uh and and improve accountability or is it that uh you know given the composite nature of the 45:14 45 minutes, 14 seconds business uh and the capeex requirements which could feed into multiple. It'll continue to be one cohesive unit, but uh 45:22 45 minutes, 22 seconds it'll be more accelerated, more consistent revenue growth, better profiles, better ROC improvements, the same capital allocation discipline. 45:32 45 minutes, 32 seconds Which one of this is the path that GAVL is likely to take? Thank you. So, 45:40 45 minutes, 40 seconds Sil here. So maybe let me take a little bit of a shot at this and then I can ask you know NBG and Burges to also patient 45:47 45 minutes, 47 seconds if required on that but I hear your question loud and clear that what is it that you're seeing and so thank you for you know noting down some of the shift 45:54 45 minutes, 54 seconds that you're making. Uh so one fundamental piece over the next two years what you can expect is that the 46:01 46 minutes, 1 second one see any transformation takes four five years to happen fully and especially in a business like us which is a multi- you know segmental business 46:10 46 minutes, 10 seconds but the shift that you'll start seeing in the from which already started panning out in the next two years is that we will move from fundamentally 46:17 46 minutes, 17 seconds from a commodity ccentric thinking to a market customerf facing approach. 46:22 46 minutes, 22 seconds whatever the nature of the entity itself is right now because that's a fundamental mindset and a capability shift that we're doing. If I have to 46:29 46 minutes, 29 seconds read out a few points, I put down on the headers for you. What you can expect is that our animal nutrition business will 46:36 46 minutes, 36 seconds move from a feed business to a nutrition mindset business which is led by innovation technical services marketing 46:44 46 minutes, 44 seconds and sourcing as modes. Our crop care business would move from a product chemistry and patent focused business to a product innovation distribution and 46:53 46 minutes, 53 seconds branding as modes. our oil pump business as I already talked about from a volume led upstream player only to a 47:00 47 minutes full-fledged differentiated upstream downstream valuated player which happened uh in terms of est from an enterprise 47:09 47 minutes, 9 seconds uh business to a very clearly CDM focused business everything may not play out in the two years because a 3D funnel take a little longer so that some part 47:18 47 minutes, 18 seconds of that layout will happen over from FY 28 onward but you will see that shift already started happening in Godish 47:25 47 minutes, 25 seconds foods very clearly we are dialing down life bird completely and over the next 3 four years it should just remain maybe a back end of ours and that becomes a 47:33 47 minutes, 33 seconds protein forward uh uh you know a company which will have many new segments coming in in fact I would like to call out what you would see in the next two years in 47:42 47 minutes, 42 seconds terms of new in starting this year itself is we are making entry into two new segments in the foods business one 47:51 47 minutes, 51 seconds is we have entered into momos which we believe there's the potential to uh upgrade the streets food business into a 47:58 47 minutes, 58 seconds branded business. And the second one is there is a very piece which I personally think can a very strong ramp up over the 48:05 48 minutes, 5 seconds next three to four years in India would be our entry into frozen chicken now and that's another piece which is playing out for us and in CPL clearly the 48:13 48 minutes, 13 seconds evaluate journey goes forward we have to make it more and more profitable. I think this is the largest shift which is in a way I've given a headline of a 48:21 48 minutes, 21 seconds strategy document for you. Uh it is going to followed by a cost culture with a a mindset shift. Coming back to 48:29 48 minutes, 29 seconds whether there will be a restructuring of these businesses. Uh as I said the models are still taking shape in our 48:36 48 minutes, 36 seconds mind. Uh we cannot say at what time it will pan out. We talked about that question to Aztec is that maybe in a couple of quarters we'll come back and 48:44 48 minutes, 44 seconds to say how does this whole chemical piece plays out for us but this in a nutshell is my take on that that there's 48:52 48 minutes, 52 seconds a larger transformation at play. Uh we have already made portfolio choices also maybe for everybody's benefit I'll say on what we don't want to do which also 49:00 49 minutes you'll see in this next two years. So for example the businesses that we're putting up as a for strategic review right now are our shrimp business uh our 49:09 49 minutes, 9 seconds seed business our cattle genetics business uh we are our live bird business obviously is coming down we are going to take some strategic reviews of 49:17 49 minutes, 17 seconds this business going forward so this in a nutshell is the journey which is started shaking shape you'll see them accelerating over two years and then 49:25 49 minutes, 25 seconds maybe the structural pieces will if any will play out at that stage we don't know right now uh anything which budget you want to add at this stage. 49:33 49 minutes, 33 seconds Yes, thank you Sunil. Hi, this is Burgess Godridge speaking. I appreciate your question and I think the deeper 49:40 49 minutes, 40 seconds subtext if I'm correct is possibly hinting at unlocking shareholder value. 49:44 49 minutes, 44 seconds So I think Sunil has answered the question very well. I'm confident that this approach will lead to good performance and unlocking of shareholder 49:52 49 minutes, 52 seconds value across GL as a whole. But we remain open to suggestions, alternative pathways if you have any for how to 49:59 49 minutes, 59 seconds improve performance and how to unlock shareholder value. So I welcome your thoughts and suggestions on this topic and you reaching out to us separately to discuss it in more detail. 50:10 50 minutes, 10 seconds I'll uh request Mr. Nar Godidge if he has any comments. 50:14 50 minutes, 14 seconds Yes, this is Naril Goodrich. Uh I would urge you to focus on a longer horizon. 50:21 50 minutes, 21 seconds uh in oil farms uh there is likely to be rapid growth because A is the the 50:30 50 minutes, 30 seconds demographic dividend that Sunil talked about B is the rapid expansion in acreage that we did both in uh the 50:39 50 minutes, 39 seconds fiscal year 26 and we are likely to do even better in fiscal year 27 plus we are producing more and more value added 50:48 50 minutes, 48 seconds products and we have very good technologies for 50:55 50 minutes, 55 seconds wealth from waste uh which will also gain traction and all these will get 51:02 51 minutes, 2 seconds magnified by the rapid growth of acreage. So I see a very bright future for this and even for animal nutrition 51:11 51 minutes, 11 seconds we should look further out than just two years. uh we will have good growth in two years but just imagine what kind of 51:19 51 minutes, 19 seconds growth we can have over 10 years and uh thank you Emir uh it just one 51:27 51 minutes, 27 seconds more point which I think you' asked for the comments from your end on the return on capital employed so I think again if you seen the last uh uh two three 51:35 51 minutes, 35 seconds quarters there's an exceptional work which we've done through a focus on working capital and our return on capital employed has also moved along with our results from 16% to now 20% 51:43 51 minutes, 43 seconds which is a very sharp jump of 4% which has never happened in our history of our business. Now as we invest further on 51:50 51 minutes, 50 seconds growth capex one thing we'll be very sure of uh in the next two or two or four or five years in fact for that time that we will be very very stringent and 52:00 52 minutes we'll keep the discipline very strong on managing working capital and return on capital employed we have reached 20% while I wouldn't hazard a guess right on 52:08 52 minutes, 8 seconds saying how ambitious we can be right but we will definitely not let this slip away and if as we find more and more opportunities we'll only try to improve 52:16 52 minutes, 16 seconds it further Noted team. Thank you and all the best. 52:22 52 minutes, 22 seconds Thank you. We'll take our next question from the line of Proal Sen from ICA securities. Please go ahead. 52:29 52 minutes, 29 seconds Thank you for the opportunity sir. Uh just a couple of housekeeping questions first. In terms of the uh foods business, I think you obviously 52:38 52 minutes, 38 seconds mentioned the strategy and the bandwidth salience is going up consistently in maintaining at above 80%. But just as a 52:45 52 minutes, 45 seconds thought in terms of the livebirds business, is there a thought to sort of exiting the lifebird business altogether 52:52 52 minutes, 52 seconds or does this still provide supply chain benefits and pricing boosts from time to time depending on the seasonal factors? 53:00 53 minutes Just your thoughts on that? 53:01 53 minutes, 1 second Yeah. So, thanks for uh question. So one thing is live trading per se is coming down sharply for us and over this next 53:09 53 minutes, 9 seconds four five year period and I think more accelerated manner we would not be in the business of selling live BS that is 53:16 53 minutes, 16 seconds very trading we don't want to do so that's out of question for us what may happen for us and which I think is uh I 53:24 53 minutes, 24 seconds think could be a very strong mode as we build a business I mentioned that you know we would like to maybe try to build certain categories like a new emerging category of frozen chicken in India. 53:35 53 minutes, 35 seconds Right now what is happening in this business is that there is a potential of doing a category creation altogether in 53:42 53 minutes, 42 seconds this business that uh one of the reasons why fresh chicken never sold was because there's a shelf life of 4 days. Now with 53:51 53 minutes, 51 seconds frozen chicken the shelf life changes the the the work that we've done on product innovation is this chicken is as 53:58 53 minutes, 58 seconds good as anything on the fresh side and we have now got a structural tailwind which is happening in this industry in 54:05 54 minutes, 5 seconds the shape of commerce whereby the cold chain also is getting taken care of. We believe that if we go ahead and build 54:13 54 minutes, 13 seconds this category forward then one of the biggest modes actually is a control on the raw material supply of this category 54:22 54 minutes, 22 seconds which is where the having some presence of live word as a source thing 54:28 54 minutes, 28 seconds is a damn good uh you know uh very good what do you call differentiator. So clearly no play on live bird as a 54:36 54 minutes, 36 seconds trading stock sales business. We could have this pure play as a backend supply chain for our future businesses whether it is yummy nugget which you want to 54:45 54 minutes, 45 seconds take it forward or whether it is you know some of these new categories that we're looking forward. 54:50 54 minutes, 50 seconds Yeah absolutely understood sir a couple of more small questions. One was what was the amount of FFB that was processed this quarter 54:58 54 minutes, 58 seconds and what was the extraction ratio just for this quarter? 55:01 55 minutes, 1 second Okay the extraction ratio for this quarter if I remember was 20.4. Let me just check it again. Just give me a minute. 55:08 55 minutes, 8 seconds So uh 20.4 I remember uh 20.77. 55:15 55 minutes, 15 seconds So sorry it was 20 77 was extraction. So because this quarter the overall the number is very small per se for oilcom 55:23 55 minutes, 23 seconds business the become very small just to give an example that out of our you know uh 6 lakh 37,000 55:31 55 minutes, 31 seconds FFP process annually this is just 60 odd,000 tons you know. So this is a very small which comes in this. So it's a 55:39 55 minutes, 39 seconds very marginal quarter for OPB business per se. But but the good part is we were 55:45 55 minutes, 45 seconds at a 19.7 66% last year on OE in the same quarter. Mhm. 55:54 55 minutes, 54 seconds Ladies and gentlemen, please stay connected. We've lost the management connection. Heat. Heat. 57:03 57 minutes, 3 seconds Ladies and gentlemen, thank you for patiently holding the line. We have the management team back online. Robel. 57:10 57 minutes, 10 seconds Yes, sir. Uh, apologies. I uh you know we got cut off in the middle. I think you were mentioning a number of somewhere around 20% plus extraction but on a smaller base for this quarter. 57:21 57 minutes, 21 seconds Yeah the number was to be precise the number was 20.7 on a smaller base. I said that base is so small for us that it just becomes 57:28 57 minutes, 28 seconds you know it's a the base for example is 60,000 on a base of 6.3 lakhs you know so this is seasonally a very very marginal quarter but the good part is 57:36 57 minutes, 36 seconds that even on a you know such a small base where the leverage really doesn't come in also into play in operating leverage our OE was pretty much stronger 57:44 57 minutes, 44 seconds over last year same quarter and that that's direction for which tells you about how the processes and the productivity parameters have got 57:51 57 minutes, 51 seconds established by the teams I think that's a very good sign going forward. 57:58 57 minutes, 58 seconds One last question if I may. Uh in terms of dividend policy, the dividend payout obviously has been a fairly healthy levels of around 45 to 47% in the last 58:07 58 minutes, 7 seconds couple of years. Uh any thoughts in terms of how it will proceed given that they're definitely expecting mid- teens profitability and ITA growth. uh is it 58:16 58 minutes, 16 seconds fair to assume that you know with capeex remaining at you know somewhere around let's say 300 to 350 odd kores that this 58:24 58 minutes, 24 seconds number has the potential to go up as well from here honestly this is something which you know very difficult to come in because 58:32 58 minutes, 32 seconds this is a larger distance which gets taken as the years go uh results come in so I would say that we have had a very strong policy of giving consistently 58:41 58 minutes, 41 seconds good dividends as you mentioned the range of 48 odd% and um I This is a call which we will take along with promoters 58:48 58 minutes, 48 seconds uh every year as the results come by and one thing is very clear that if all these results are good uh I mean it's always good to you know make sure that 58:56 58 minutes, 56 seconds all the shareholders benefit but I think a call which will take more as as the results come in you know understood sir congrats on a good set of 59:04 59 minutes, 4 seconds numbers I'll hand back I'll go back to the operator thank you thank you thank you we'll take our next question from the line of Abija from Kotek 59:12 59 minutes, 12 seconds securities please go ahead yeah thank Thank you so much for the followup. Um just on Aztec um would be possible to get your thoughts for the 59:21 59 minutes, 21 seconds year ahead in terms of uh the growth expectations you know across both as well as enterprise and uh yeah on the profitability as well EBIDA side. 59:30 59 minutes, 30 seconds Yeah. Okay. You would like to question here. 59:35 59 minutes, 35 seconds So the way the entire industry is behaving is little is a positive sense because Q4 also if you have seen the 59:43 59 minutes, 43 seconds numbers Q4 the improvement has been both in terms of the for volumes as also the price realizations. 59:50 59 minutes, 50 seconds This is primarily because more or less the prices have bottomed out. The bottomed out in the sense that the market prices and the competition from 59:58 59 minutes, 58 seconds China has more or less stabilized. That is primarily because most of the geographies are showing local demands. 1:00:05 1 hour, 5 seconds So be it China, be it India, the local demands have improved. 1:00:08 1 hour, 8 seconds So international supplies should be normal right now. So price realization I think has stabilized. Raw material supplies if you remove we don't know 1:00:16 1 hour, 16 seconds what will the impact long-term impact in terms of Iran war or some other problems coming into but more or less it is 1:00:23 1 hour, 23 seconds stabilized. So I think we should we should aim like anyway we should aim around 15% of growth in terms of the top 1:00:30 1 hour, 30 seconds line and CDMO should be growing further a little bit higher than the CDMO margins are intact both in CDMO and for 1:00:37 1 hour, 37 seconds enterprises margins are intact that is much I can see as of now directionally it is a positive growth 1:00:44 1 hour, 44 seconds both for CDMO and and for enterprise business and maybe I will maybe pitch in I think one thing which is very 1:00:53 1 hour, 53 seconds clearly looking positive for us in the Aztec front is that I think the work that the team had been doing on the business development side over the last 1:01:01 1 hour, 1 minute, 1 second year. I think there are some good early leads emerging for us in the CDO space although they're still to come to solution but I think going forward this 1:01:10 1 hour, 1 minute, 10 seconds is a business which where we'll keep the CDM percentage going well in the range of around you know 52 to 53% plus uh 1:01:18 1 hour, 1 minute, 18 seconds kind of salient and while AIT is obviously you know talking about I think a number of around 15 but I I I believe 1:01:26 1 hour, 1 minute, 26 seconds we have a pretty good shot at something in the range of you know 20% of a number going forward on this you 1:01:36 1 hour, 1 minute, 36 seconds Got it. Thank you. And uh just on oil pal um h how much of the earnings now come from the value added side of things 1:01:44 1 hour, 1 minute, 44 seconds and how do you expect that category to sort of continue to you know increase its contribution. Just asking from the context that suppose palm oil prices 1:01:53 1 hour, 1 minute, 53 seconds were to correct uh you know a year down the line then I mean uh you know how do we cushion the impact on our earnings in that business? 1:01:59 1 hour, 1 minute, 59 seconds Yeah I think I think that's a Fair question. So one question one part first I'll give you maybe a bit of a context that the last year uh you know sharp 1:02:08 1 hour, 2 minutes, 8 seconds jump of oil palm profitability that we have seen if I were to purely discount the pricing part of that you know 65% 1:02:16 1 hour, 2 minutes, 16 seconds odd part of that profit which was 70% is come because of our internal efforts. So that's I think a good context to have 1:02:24 1 hour, 2 minutes, 24 seconds you know that uh the pricing play which was abnormal played out last year is still not more than 30 odd% of our 1:02:32 1 hour, 2 minutes, 32 seconds things. So that tells you the structural strength of the work which is happening. 1:02:36 1 hour, 2 minutes, 36 seconds That is one part. Second is yes as part of a strategic exercise that we have done one clear direction is how do we 1:02:43 1 hour, 2 minutes, 43 seconds get into more and more differentiated value added play to further insulate ourself from any of these pricing uh you 1:02:50 1 hour, 2 minutes, 50 seconds know volatility or bearishness that may may happen. uh so what is happening is that this year in May itself we are 1:02:57 1 hour, 2 minutes, 57 seconds rolling out our uh specialy fat refinery also and which will come into full flow from I would say maybe uh let's say 1:03:04 1 hour, 3 minutes, 4 seconds second half of the year in flow full fashion and that will start giving us a very meaningful play uh in second half 1:03:13 1 hour, 3 minutes, 13 seconds onward into valuated products which will then go from strength to strength over a period of next long range plan of four to five years. Our broad direction is 1:03:22 1 hour, 3 minutes, 22 seconds that we would like this business to have roughly around 50 to 55% of its 1:03:29 1 hour, 3 minutes, 29 seconds portfolio over a period of maybe FI31 in that direction if I have to put coming out of valuated products and that should 1:03:37 1 hour, 3 minutes, 37 seconds give us a very very significant insulation from uh any kind of price volatility years which could go down into B sense. So I think that's a very 1:03:45 1 hour, 3 minutes, 45 seconds clear direction when I said from being a upstream uh you know uh player to a complete value added upstream downstream 1:03:53 1 hour, 3 minutes, 53 seconds player that's the aspiration that we are having for ourselves. 1:03:57 1 hour, 3 minutes, 57 seconds Thank you very much. That's very helpful. Uh all the best. Thank you. 1:04:01 1 hour, 4 minutes, 1 second Thank you ladies and gentlemen. We'll take that as the last question for today. I would now like to hand the conference over to management for closing comments. Over to you sir. 1:04:15 1 hour, 4 minutes, 15 seconds Thank you. I hope we have been able to answer all your questions. If you have any further questions or would like to 1:04:22 1 hour, 4 minutes, 22 seconds know more about the company, we would be happy to be of assistance. Thank you once again for taking the time to join us on this call. 1:04:31 1 hour, 4 minutes, 31 seconds Thank you members of the management team. On behalf of ICA securities, that concludes this conference. Thank you for joining us and you may now disconnect your lines.