Gopal Snacks Limited — Q3 FY26

Gopal Snacks Ltd Q3 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=DaOl2eiBnjY Published: 3 months ago

0:01 1 second Ladies and gentlemen, good day and welcome to Gopal Snacks Limited Q3 FY26 0:08 8 seconds earnings conference call hosted by MK Global Financial Services Limited. As a reminder, all participant lines will be 0:17 17 seconds in the listenonly mode and there will be an opportunity for you to ask questions after the presentation concludes. Should 0:25 25 seconds you need assistance during the conference call, please signal an operator by pressing star 10 on your touchstone phone. Please note that this 0:34 34 seconds conference is being recorded. I now hand the conference over to Nitin Gupta from MK Global Financial Services. Thank you and over to you sir. 0:46 46 seconds Yeah, thank you. Uh good afternoon everyone. I would like to welcome the management and thank them for this opportunity. We have with us today Navin 0:55 55 seconds Gupta, Chief Business Officer and Rigan Data, uh, Chief Financial Officer. I shall now hand over the call to the 1:04 1 minute, 4 seconds management for the opening remarks. Over to you, sir. Thank you, Nathan. 1:10 1 minute, 10 seconds Good afternoon and thank you for joining us for the earning call. We hope you all got a chance to go through our investor 1:18 1 minute, 18 seconds presentation uploaded on the stock exchange. 1:22 1 minute, 22 seconds We will share our key operating and financial highlights for the quarter and 9 months ended December 31st 2025. 1:30 1 minute, 30 seconds As we reflect on our Q3 FY 2026, it is evident that Bopath next has maintained steady progress demonstrating strong 1:39 1 minute, 39 seconds operational resilience and the ability to scale production despite challenges faced after the fire incident. Our 1:46 1 minute, 46 seconds revenue for Q3 FY26 was at INR 400.8 crores, a 6.7% sequential increase from Q2 FY26. 1:58 1 minute, 58 seconds This growth was driven by strong performance across our four product segments including the snack pallets and gatia categories which grew 20.8% and 10.6% on Q respectively. 2:12 2 minutes, 12 seconds The growth highlights the continued strong demand for our products and the operational efficiencies we have achieved. A key focus for us during this 2:21 2 minutes, 21 seconds quarter was the ramp up of our Morata facility. This facility with an added installed capacity of 63,8500 m t is now 2:30 2 minutes, 30 seconds an integral part of our manufacturing base. It will play a vital role in meeting the growing demand for gatya and nine products across our target regions. 2:41 2 minutes, 41 seconds Additionally, we continue to strengthen our supply chain by working with third party manufacturers, ensuring that we 2:48 2 minutes, 48 seconds can meet market demand without disruption. 2:52 2 minutes, 52 seconds Our efforts to expand our regional footprint have been fruitful with the support of 93 micro distributors under the SSD model. 3:03 3 minutes, 3 seconds This initiative has deepened our presence in untapped regions contributing to 28.7% YI growth in other 3:10 3 minutes, 10 seconds states. The success of this strategy is a testament of our commitment to building a strong distribution network and improving market accessibility. 3:20 3 minutes, 20 seconds In terms of marketing, we successfully secured a significant partnership as the official snack partner for the film fair awards 2025. 3:30 3 minutes, 30 seconds This association has provided us with an exceptional opportunity to enhance our brand visibility and engage with a 3:37 3 minutes, 37 seconds broader consumer base across key media platform. Additionally, our marketing initiative during the festive season including the Navatri campaign further 3:46 3 minutes, 46 seconds increased our consumer reach and brand recognition and also we launched our Gatya digital and TV ad campaign 3 days 3:55 3 minutes, 55 seconds back. We continue to make progress in improving our distribution management system which provides realtime insights to our distributors. 4:05 4 minutes, 5 seconds This system plays a crucial role in improving inventory management, reducing lead times and enhancing supply chain efficiencies. All of which are key to maintaining our competitive edge. 4:16 4 minutes, 16 seconds Looking ahead, our focus remains on expanding our production capacity, enhancing our market penetration and 4:24 4 minutes, 24 seconds investing in strategic growth initiative. With the continued operationalization of the Modasha plant along with our investment in technology 4:32 4 minutes, 32 seconds and infrastructure, we are confident in our stability in our ability to sustain growth. As we move into the final 4:40 4 minutes, 40 seconds quarter of FY26, go next is well positioned for sustained long-term growth and we remain committed to creating value for all the stakeholders. 4:51 4 minutes, 51 seconds I would now like to invite our chief financial officer Mr. Rean Data to share his perspective on the financial performance during the quarter. 5:01 5 minutes, 1 second Thank you Navin. So good afternoon everyone. Let me now take you through the key financial highlights for the quarter and 9 months ended 31st December 2025. 5:12 5 minutes, 12 seconds Starting with the quarterly performance over during Q3 FY26, we achieved the revenue from operation of rupees 400 5:18 5 minutes, 18 seconds 400.8 crores registering 6.7% sequential growth supported by improving demand trend stronger traction in snack 5:26 5 minutes, 26 seconds pellets and gadia in continued distribution expansion across newer geography. Gross profit for the quarter 5:33 5 minutes, 33 seconds was at 110.6 crores translating to gross margin of 27.6% compared to 26.4% in the 5:40 5 minutes, 40 seconds previous quarter. Operational performance during the period benefited from improving manufacturing stability supply chain normalization following the 5:48 5 minutes, 48 seconds commissioning of Modasa facility. With the commencement of commercial production at Modasa Namkin plant, we were able to address key supply challenges that had arisen after the 5:56 5 minutes, 56 seconds fire incident at transport facility. The consolidation of multiple product categories as at a single location is expected to improve order servicing 6:05 6 minutes, 5 seconds timelines, enhance dealer convenience which will aid to lowering of our trade discounts and ultimately will benefit the market. Ebida for the quarter was at 6:15 6 minutes, 15 seconds rupees 30.4 crores reflecting an eidata margin of 7.6%. Sequential margin expansion was aided by operating 6:22 6 minutes, 22 seconds leverage and prudent control over discretionary spends. Our profit before tax increased sequentially 41.5% to 19 6:30 6 minutes, 30 seconds cr rupees driven by stronger revenue and operational performance. Profit after tax for the quarter stood at 15.5 crores 6:37 6 minutes, 37 seconds resulting into packed margin of 3.9% for the quarter. This includes exceptional income of 10 lak rupees uh coming from 6:46 6 minutes, 46 seconds the scrap sale arising out of the fire affected facility. 6:51 6 minutes, 51 seconds Moving to the 9 months performance for 9 months FI26 revenue from operation stood at 1098.6 crores while liit data uh is at 69.7 k reflecting the margin of 6.3%. 7:05 7 minutes, 5 seconds Profit before tax before exceptional item stood at 37.7 crores while profit after tax were 437 crores with a margin 7:12 7 minutes, 12 seconds of 4%. As we move into the final quarter of FI26, our priority remains focused on expanding market presence, improving 7:19 7 minutes, 19 seconds operational efficiency, and continue to drive for innovation in our product offerings. With our strengthened manufacturing network, including the 7:28 7 minutes, 28 seconds newly operational Morasa facility and a disciplined approach to capital allocation, we are well positioned to sustain our growth. We are confident 7:35 7 minutes, 35 seconds that Gopal's next strategic initiative backed by strong financial foundation will continue to deliver long-term value for it all stakeholders. 7:43 7 minutes, 43 seconds Thank you. Over to you. 7:51 7 minutes, 51 seconds Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press 7:58 7 minutes, 58 seconds star and one on their touchstone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are 8:07 8 minutes, 7 seconds requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. 8:18 8 minutes, 18 seconds The first question is from the line of Nitan Gupta from MK Global Financial Services. Please go ahead sir. 8:28 8 minutes, 28 seconds Yeah, thank you. Uh so my first question is around like post commissioning of Modasa facility. So I basically wanted 8:36 8 minutes, 36 seconds to understand like how has been the growth improvement uh like we have seen a three quarters of decline and this is the first quarter like we have seen 2% 8:45 8 minutes, 45 seconds revenue growth. So uh uh how materally a shift is happening now and how management is thinking that the growth 8:53 8 minutes, 53 seconds can improve on a monthly basis from current levels. That's the first question. 9:01 9 minutes, 1 second So Nitan by uh as we had finally declared that from 1st of December we will start getting um our complete range 9:10 9 minutes, 10 seconds from Modasa facility. So we started getting um complete range from our Modasa facility from 1st of December. 9:20 9 minutes, 20 seconds Its reflection also came in our December number as well. So now overall supply chain from Gujarat perspective are 9:29 9 minutes, 29 seconds stable as well. Uh few connecting states like Rajasthan is completely getting 9:36 9 minutes, 36 seconds treated from Modasa only and then there are parts of western uh western Madhya Pradesh and Mumbai and some parts of 9:45 9 minutes, 45 seconds western Maharashtra also getting catered from Morasa facility only. So things are stable now. Overall revenue loss owing 9:54 9 minutes, 54 seconds to the supply chain disruption in Gujarat was to the tune of you know 8 10:01 10 minutes, 1 second 10% and even in the surrounding states uh Rajasthan was impacted the highest. 10:08 10 minutes, 8 seconds So with the improved supply chain we are confident that our run rate will certainly improve. 10:22 10 minutes, 22 seconds Yeah, that's uh really encouraging. So like we are actually uh from December like seeing the growth uh uh sorry uh 10:30 10 minutes, 30 seconds the supply improvement plus additionally the uh GST sort of uh support also from the government in terms of like 10:37 10 minutes, 37 seconds reduction. So u qualitatively you'll be able to highlight like how material is the shift in the numbers from November 10:46 10 minutes, 46 seconds to December. Definitely December we will be ramping up. It will not be a true reflection but some qualitative sense would be really helpful in you. 10:55 10 minutes, 55 seconds December numbers were uh 7% more than November. 11:05 11 minutes, 5 seconds Okay sir this is good. And second with respect to like gross margin expansion of 120 bits to 27.6 this is more of a 11:12 11 minutes, 12 seconds sequential QQ. So could you help us understand the factors which have aided growth uh uh margin expansion? One point 11:20 11 minutes, 20 seconds I can uh take from the commentary is that uh we have taken back some of the trade promotion but uh if you can help 11:27 11 minutes, 27 seconds us understand this better that would be helpful. 11:32 11 minutes, 32 seconds Uh yes m so post our uh supply chain issues uh since started getting resolved. So partially from the mid of 11:41 11 minutes, 41 seconds November we started lowering our uh grid discount schemes and on account of that uh the benefit which flowed on in our 11:48 11 minutes, 48 seconds gross profit was around 1%. And also marginally due to the uh low margin 11:56 11 minutes, 56 seconds products or the loss making products also we are trying to cut out from our product market basket. So that is also aiding to our gross profit margin. 12:05 12 minutes, 5 seconds Raw material prices were by and large stable. So over there.3% benefit is there and again uh post GST regime uh we 12:16 12 minutes, 16 seconds have also reduce the dealer margin which has also benefited.5%. 12:24 12 minutes, 24 seconds Yeah this is helpful. Uh and my last question pertains to like the this new other smacking segment like we have 12:31 12 minutes, 31 seconds basically split uh the other segment into two. So now I can see like other smacking segment is now 4% of revenue 12:39 12 minutes, 39 seconds and sort of it is seeing u uh in a way like this percentage was around 1.7% last year. So like how how we are 12:48 12 minutes, 48 seconds positioned here we have multiple products masala noodles bakery flour oil soap jaggery so like is this more of an 12:55 12 minutes, 55 seconds adjacent business or you think that uh some of the categories can become bigger for us I have seen like there is an ad 13:02 13 minutes, 2 seconds wheat flour also we are getting into. So like just wanted to know your thoughts around like multiple uh new categories we are trying out in other snacking. 13:12 13 minutes, 12 seconds So by in our multiple commentaries we have expressed our intent to gradually reduce 13:21 13 minutes, 21 seconds our dependency on imported oil. So as Regan by stated we are doing two things 13:29 13 minutes, 29 seconds simultaneously. One is cutting tail of those products or SKUs which are low in 13:36 13 minutes, 36 seconds margin contribution as well as revenue and simultaneously adding certain products which has got 13:45 13 minutes, 45 seconds better margins and which are scalable in nature. So to name couple of products we introduced rather three products we 13:53 13 minutes, 53 seconds introduced somewhere in July popcorn. So popcorn run rate is right now 50 55 lakhs per month. We added wafer biscuit. 14:03 14 minutes, 3 seconds So it's a comparatively high margin product and our run rate is 65 to 70 lakhs per month. And we added another 14:13 14 minutes, 13 seconds bakery product which is in 5 rupees price point which is kaju biscuit. So it's a kaju shaped you know biscuit. So 14:20 14 minutes, 20 seconds it has also got good margins and which has started contributing to that you know 3540 lakhs per month. So this this 14:30 14 minutes, 30 seconds is helping us in two ways. One is you know overall product basket. Um we are 14:37 14 minutes, 37 seconds trying to reduce contribution of imported oil and second is we are adding high margin high scalability potential product to our product basket. 14:51 14 minutes, 51 seconds Sure this is helpful. Thanks a lot. Thank you. 14:58 14 minutes, 58 seconds Thank you. The next question is from the line of Risha Mhata from Green Edge Welt. Please go ahead. 15:07 15 minutes, 7 seconds Yeah. Uh thank you and good afternoon. 15:10 15 minutes, 10 seconds So uh congratulations on the commercialization of the Modasa facility. Uh so now with this uh you 15:17 15 minutes, 17 seconds know um like the Q numbers have been better like you called out December is higher versus November by 7%. uh do we 15:25 15 minutes, 25 seconds see a similar kind of uh growth rate which is uh also happening as we speak in January because we are almost at the end of January. 15:35 15 minutes, 35 seconds Yes, numbers are uh in line with our December numbers. Historically out of last five years 15:44 15 minutes, 44 seconds um Q4 has been lower than Q3 uh you know in four years out of five years four 15:51 15 minutes, 51 seconds years Q4 has been lower than Q3 but we are confident of reversing this trend this year. 15:58 15 minutes, 58 seconds January numbers are you know uh in line with December number which historically has not been the case. 16:08 16 minutes, 8 seconds Understood. And now like you said so the supply chain problem gets solved right like we are able to supply a full uh basket to our distributors and hence uh 16:17 16 minutes, 17 seconds that problem has completely gone away right uh with uh at least 90% solved right with the Modasa facility 16:26 16 minutes, 26 seconds we can say as of date more than 95% we just did an exercise yesterday so our 16:34 16 minutes, 34 seconds fill rates as of now are you know with with stipul ated t is 93%. 16:43 16 minutes, 43 seconds Right? And so so does that mean that the wafers degrowth which was happening because it was more like a you know push product for us uh right uh and uh uh you 16:52 16 minutes, 52 seconds know u providing it as a part of the overall basket. Uh so that degrowth should kind of start reverse reversing. 17:01 17 minutes, 1 second Yes that degrowth will start reversing. 17:03 17 minutes, 3 seconds There are two reasons of degrowth in vapor ratio. One is uh we took an 17:11 17 minutes, 11 seconds intentional price hike in wafer. So differential with the market leader versus our pricing to the retailer was 17:18 17 minutes, 18 seconds to the tune of 20%. So we brought down the difference to the tune of 6 7%. 17:25 17 minutes, 25 seconds So probably uh we had not matured in that category to that extent that uh that steep hike was 17:34 17 minutes, 34 seconds not taken uh generously by the retailer fraternity. And secondly you know as a 17:43 17 minutes, 43 seconds company what we were doing earlier because we were giving a target of distributor the monthly target was 50 17:51 17 minutes, 51 seconds lakhs. So we were doing a bundle activity with the wafer category to the distributor that he has to sell minimum 17:58 17 minutes, 58 seconds seven lakh or six lakh of wafers to get the monthly incentive. But later on going to our supply chain issues we 18:06 18 minutes, 6 seconds thought of you know not putting the pressure on distributor fraternity for the push product rather we were giving 18:12 18 minutes, 12 seconds them you know lot of comfort in selling the pull products only. Now since our supply chain issues are resolved so we 18:21 18 minutes, 21 seconds will restart that activity. In fact from 1st February I'm going to restart that activity. 18:27 18 minutes, 27 seconds Okay. And uh you just called out that you know we had taken price hikes in wafers. I would imagine would we have 18:35 18 minutes, 35 seconds also taken price hikes in uh you know other products like uh Gatya because uh 18:41 18 minutes, 41 seconds I see the volume value gap is uh you know there's quite a gap between the volume growth and the value growth uh uh 18:49 18 minutes, 49 seconds even in Gatyas. So have you taken price hikes there as well which has also helped in improving gross margins? 18:57 18 minutes, 57 seconds I tell you uh when we compute in number of packets so it looks like that we sold lesser number of packets. However when 19:04 19 minutes, 4 seconds we convert the volume in metric terms so we have grown by 4%. So typically what happened after GST we on price point 19:13 19 minutes, 13 seconds products we passed on that benefit to the consumer in by giving extra grammage. So we did not take any price 19:22 19 minutes, 22 seconds hike or price drop in price point product. However, in larger packs, we took a price cut like on MRP basis. 19:31 19 minutes, 31 seconds Earlier the product getting sold was of 50 MRP. Now we are selling at 47 MRP. 19:36 19 minutes, 36 seconds 500 g we were selling at 89 MRP. Now the MRP is revised to 84 absolute terms we more in metric terms. 19:48 19 minutes, 48 seconds And you know our trade uh spends used to be at somewhere around uh uh 3 and a half%. So uh uh since you know we've 19:57 19 minutes, 57 seconds seen uh you know some reduction there which you've mentioned. So now that number has reduced from 3 and a half to what uh levels now? 20:08 20 minutes, 8 seconds In this quarter uh we have reduced it by 1.2%. 20:15 20 minutes, 15 seconds Okay. Okay. and uh and and subsequently this is expected to like in Q4 also uh 20:23 20 minutes, 23 seconds would we see further reduction on the trade spend? 20:28 20 minutes, 28 seconds We will take a reduction you know on a very gradual pace. Risha G you know in Q4 it will be more or less in line with 20:36 20 minutes, 36 seconds Q3. However in Q1 then you reduce it by 0.25% and then we'll try to maintain 20:43 20 minutes, 43 seconds that for 6 months. So annualized basis next year we'll reduce it by half a%. 20:50 20 minutes, 50 seconds And you know so now would you be comfortable in giving some kind of a guidance for the next financial year? I understand that seasonally Q4 is weak. 21:00 21 minutes So uh what you're uh giving a sense is that you know but we should still do be higher than 400 crores or thereabouts in 21:07 21 minutes, 7 seconds Q4 but in FY27 you know considering Modasa plant has been commercialized and our supply chain issues are largely 21:15 21 minutes, 15 seconds resolved would you like to give any kind of revenue guidance and therefore even a margin guidance assuming raw material prices remain stable. 21:24 21 minutes, 24 seconds So rishari we on YTD basis we have task 1100 right 21:32 21 minutes, 32 seconds and our numbers are visible and we are Q3 numbers are visible we are stating that Q4 number 21:40 21 minutes, 40 seconds we are reversing the trend so I mean we'll be somewhere you know 1500 crores kind of number we will be closing 21:48 21 minutes, 48 seconds this year so next year uh we have made a rough sketch of our uh annual operating plan. 21:59 21 minutes, 59 seconds So we have taken a delta of 300 to 350 crores for next 22:07 22 minutes, 7 seconds financial year in our 1,800 to 1850 crores and on the margins 22:15 22 minutes, 15 seconds EITA margins assuming raw material prices are stable. 22:20 22 minutes, 20 seconds Uh yeah so on the topline front it would be in the range of 18 to900 crores that is what we are anticipating and in terms 22:28 22 minutes, 28 seconds of uh evid data margins so like in the current quarter our eid data margins are close to 7.6%. 22:36 22 minutes, 36 seconds So uh as we would be exiting on the similar rate so next year we are targeting on an annualized basis margin 22:44 22 minutes, 44 seconds between 8 to 9%. with an next year uh exit rate uh close to double digit. 22:52 22 minutes, 52 seconds Uh wouldn't you say that 8 to 9% annualized margin for next year is very conservative assuming raw material prices are stable or are we uh you know 23:01 23 minutes, 1 second despite Modasa plant being operational for 2 months we've not seen uh you know those distributors whom we lost they're 23:08 23 minutes, 8 seconds not coming back or maybe we're not see um you know seeing uh you know market share uh gains again um so that's why 23:16 23 minutes, 16 seconds you know we would want to guide for lower margins or is there some other people. 23:22 23 minutes, 22 seconds So there are couple of other things. One so post modasa commissioning so that we are quite confident over there there is 23:30 23 minutes, 30 seconds nothing of an issue as uh in our opening commentary we said we are now aggressively moving into the market in 23:38 23 minutes, 38 seconds terms of spending more on the advertising sales promotion schemes. So that is one of the things. So sequentially probably we would be 23:46 23 minutes, 46 seconds improving on that trajectory. So probably in let's say in first or second quarter improvement might be little bit 23:53 23 minutes, 53 seconds less but next going forward it should be on a very fast trajectory. So that's the reason we are likely to maintain between this range and that's the reason we are 24:01 24 minutes, 1 second also seeing that our exit rate would be uh much higher than the average. 24:08 24 minutes, 8 seconds Understood. And you know on the other products right I think even the previous participant call that out uh while uh I 24:15 24 minutes, 15 seconds appreciate that you know we want to reduce our dependency on palm oil but you know I think we're also selling beauty soaps and washing bars and ghee 24:23 24 minutes, 23 seconds uh uh you know I mean and jaggery right so wouldn't you say that you know these are completely unrelated products what would be our right to win and uh you 24:32 24 minutes, 32 seconds know very fringe what what are your thoughts here why are we getting into these products These are you know our 24:39 24 minutes, 39 seconds byproducts only. Risha G when when uh we process our products through oil 24:46 24 minutes, 46 seconds so lot of oil gets generated as a byproduct. 24:51 24 minutes, 51 seconds So um this detergent so uh this oil soap and you know this is byproduct. 25:00 25 minutes Understood. All right. Thank you. Thank you G. 25:07 25 minutes, 7 seconds Thank you. The next question is from the line of Asraudin Jariala from Samia Capital. Please go ahead. 25:17 25 minutes, 17 seconds Thank you. Your line is not clear. 25:26 25 minutes, 26 seconds Am I audible now? 25:28 25 minutes, 28 seconds Yes, you're audible now. Can you please repeat? 25:31 25 minutes, 31 seconds Yeah. So, thank you for taking my question. My question is on the side of the geographical volume which we are seeing quite wicked growth in the core 25:37 25 minutes, 37 seconds market of the company. So I want I just want to uh know about uh how are we taking the measures to stabilize and uh revive the volume of the poor market. 25:52 25 minutes, 52 seconds Sorry I couldn't get you sir then sir there is some static in your end 26:03 26 minutes, 3 seconds your voice is not clear however what I could understand that you are asking that what is our strategy to grow in 26:10 26 minutes, 10 seconds core market right so there are two things which we have already started in Gujarat which is our 26:19 26 minutes, 19 seconds core market one is frequency. 26:24 26 minutes, 24 seconds So we have initiated to increase our number of salesmen and that is that is completely facilitated by automation. 26:34 26 minutes, 34 seconds Number two is when we have started our marketing endeavor like TV campaign digital and print etc. So that is going 26:42 26 minutes, 42 seconds to aid growth to our core market faster than non-core markets. 26:52 26 minutes, 52 seconds So if I summarize one is improving on distribution efficiency and another is it has to be backed by marketing endeavor. 27:02 27 minutes, 2 seconds The line for the participant has dropped. We will move with the next question from Shria Chhater G from Angel's Capital. Please go ahead. 27:12 27 minutes, 12 seconds Hello. Uh thank you for taking my question. So I wanted to understand a bit more that uh the quarter over 27:20 27 minutes, 20 seconds quarter growth in the focus markets is uh bit slower than eco markets. So what are like a strategies on the focus 27:28 27 minutes, 28 seconds markets? What would be the future growth rate in the focus markets and what about adding uh distributors in both the core and focused markets? If you could give a bit more color to that. 27:39 27 minutes, 39 seconds Yeah. So one thing is in core markets we will not add to number of distributors. We have got footprint in 27:48 27 minutes, 48 seconds 99% of Gujarat at levels. So we will not add to number of distributors in our 27:54 27 minutes, 54 seconds core market. Now coming to focus and other markets. 27:59 27 minutes, 59 seconds We have taken an ambitious uh aim of adding one net new distributor 28:06 28 minutes, 6 seconds every working day starting from 1st of January till 31st December. So right now 28:12 28 minutes, 12 seconds we have 881 distributors on our uh SAP and we have taken an ambitious aim that 28:21 28 minutes, 21 seconds we will add somewhere between 250 to 300 distributors within this calendar year. 28:29 28 minutes, 29 seconds So coming to how will we perform in focus markets. So there was there was a reason that why in focus markets our 28:37 28 minutes, 37 seconds growth rates were not you know these were subpar. One was Rajasthan, West Maharashtra and West Madhya Pradesh was 28:45 28 minutes, 45 seconds you know disturbed in terms of supply chain. However these are streamlined now. So with within focus markets and 28:52 28 minutes, 52 seconds other states the growth will come from two factors. We have aimed just 15% growth from our existing distribution 29:00 29 minutes network and roughly 75 crores of delta will come from 29:08 29 minutes, 8 seconds addition of new distributor. So there will be complete letter which will be which will get built the way it the way we did in 2024 as well from April. 29:21 29 minutes, 21 seconds Yeah please. 29:22 29 minutes, 22 seconds Yeah. So the guidance of 1,800 to 1900 folks which you just gave now 4527 is it factoring into this uh 250 to 300 29:30 29 minutes, 30 seconds distributors that ambitious guidance like even uh or or are you taking into consideration like even if uh like 80 to 29:38 29 minutes, 38 seconds 90% of it is achieved you'll be able to take uh 1800 to 1900 cr. We have taken a range of you know 150 crores to 160 29:48 29 minutes, 48 seconds crores delta coming from our Gujarat business. From non non- Gujarat business we have taken an aim of delta of 130 to 29:57 29 minutes, 57 seconds 150 crores. So out of this 140 crores 70 crores will come from existing set of distributors and 7075 crores from new 30:05 30 minutes, 5 seconds set of distributors. Besides this there are alternate trade channels. So alternate by alternate trade canals I 30:13 30 minutes, 13 seconds mean that we have got business of railway modern trade with commerce and exports. 30:18 30 minutes, 18 seconds Unfortunately in the entire year YTD we have just done 80 lakhs of export this year whereas previously we had done 8 30:26 30 minutes, 26 seconds crores of export this year. So delta coming from these alternate trade channels will be 25 crores. So that will translate into the overall delta of 350 crores. 30:37 30 minutes, 37 seconds So is it then fair to assume that we can see a growth rate of 15% close uh in the focus market once everything stabilizes 30:45 30 minutes, 45 seconds and also what is what is your capeex plan going ahead given that now you are increasing the gramage in your uh uh 30:53 30 minutes, 53 seconds package so what would be the capeex plan uh going ahead answering your first question Shria 31:01 31 minutes, 1 second uh in the core state there will be two regions for us to grow one is our stabilized supply chain 31:09 31 minutes, 9 seconds which will be backed by automation and distribution plus our marketing endeavors coming to capex part let Mr. 31:17 31 minutes, 17 seconds the legal answer to this question. So as far as uh capex since we have enough capacities available currently so we 31:25 31 minutes, 25 seconds don't require to build any additional capacity to incur uh additional sales or to improve the garages. 31:33 31 minutes, 33 seconds Got it. So thank you. And so about the numping category, do we see the growth coming back once the uh like full uh 31:41 31 minutes, 41 seconds once we get a full quarter of operational masa facility or is there a deg of some sort in the numpkin category 31:48 31 minutes, 48 seconds because there has been a slight degrowth in the numpkin quarter over quarter. 31:53 31 minutes, 53 seconds Yeah. So let me deep dive into the numbers. Typically when we start our operations in Modasa so our first 32:01 32 minutes, 1 second priority was to manufacture the single line product items. So all the garty are you know single line product item 32:08 32 minutes, 8 seconds whereas when we sell numin so numpkins have got five items which have got mixture. So manufacturing mixture is a 32:16 32 minutes, 16 seconds comparatively complex thing because then you have to you know do mixture of several things. So now since uh entire 32:25 32 minutes, 25 seconds production and supply chains are stabilized so num keys will also come in uh come into growth tra. 32:33 32 minutes, 33 seconds Got it sir. Got it sir. Thank you. 32:40 32 minutes, 40 seconds Thank you. The next question is from the line of Azarudin Jariala from Samsha Capital. Please go ahead. 32:49 32 minutes, 49 seconds Yeah. Am I audible? Yeah Mr. Jeriala you are audible now. 32:55 32 minutes, 55 seconds Okay. So my question is on the side of the geographical volume as we are seeing quite uh muted growth in our core 33:04 33 minutes, 4 seconds market. So how are we taking any measures to uh revive the volume in core market? 33:13 33 minutes, 13 seconds Yeah Mr. is very well I already stated that when if if you consider Gujarat as our core market so strategy is very 33:23 33 minutes, 23 seconds clear that one since our supply chain have stabilized so distributor will start getting full have already started 33:30 33 minutes, 30 seconds getting full rain from one place only so that helps in faster rotation of his business. Second, we are we have already 33:40 33 minutes, 40 seconds started automation of our you know distribution ecosystem and that we are complementing through adding more number 33:47 33 minutes, 47 seconds of salesmen to cater majority of outlets twice in a week instead of once in a week. And third factor will be you know 33:56 33 minutes, 56 seconds marketing endeavor. We started our TV campaign as well as digital campaign as well print campaign three days back. So 34:04 34 minutes, 4 seconds that is going to help largely into core markets itself which is Gujarat. 34:11 34 minutes, 11 seconds Okay. And for the next year as you are assuming the delta of 300 to 350 crores uh incrementally. So uh how are you 34:20 34 minutes, 20 seconds looking at the uh category wise like uh the garta and monkey or any which are 34:28 34 minutes, 28 seconds the higher margin products which you are focusing currently. So how are you looking at the category wise revenue? 34:35 34 minutes, 35 seconds See at company level if we are aiming to have a growth of 20% plus so that will 34:43 34 minutes, 43 seconds come from the respective categories only. So in our prime category this was first quarter after so many quarters 34:52 34 minutes, 52 seconds that we are able to bounce back. So primes we will continue to grow by 20%, we are doing certain innovations and 35:00 35 minutes renovations in our primes category. In Gatia category it will be aided through you know TV ad and you know marketing 35:08 35 minutes, 8 seconds campaigns. So Gatya we will certainly grow by 20%. 35:14 35 minutes, 14 seconds And in wafer category since our base have depleted so we will like to come back to our original run rate. So the 35:23 35 minutes, 23 seconds overall growth ram rate growth uh we are aspiring 20% plus. So it will get reflected in uh across categories. 35:43 35 minutes, 43 seconds Thank you. The next question is from the line of AIT AA from Edihaba. Please go ahead. 35:50 35 minutes, 50 seconds Yeah, good afternoon sir and thank you for the opportunity. So what was the marketing spend in Q3 9m for FI 2016 crores and in percentage of revenue? 36:03 36 minutes, 3 seconds So in Q3 uh in terms of percentage of revenue it was close to 2%. 36:10 36 minutes, 10 seconds And would it be able possible for giving in 9 months 9 months? 36:21 36 minutes, 21 seconds If you have it check otherwise you can mail it later. And s also how does the management measure the return on investment on the sponsorship which all did in film fair and festival sponsorships. 36:33 36 minutes, 33 seconds See uh Amit by it was first mega event uh in which we did participation right? 36:43 36 minutes, 43 seconds So it was important for us to before we launch our TV campaign. So it was 36:52 36 minutes, 52 seconds important for us to get into some sizable platform. 36:57 36 minutes, 57 seconds So there are agencies third parties agencies which gives us measurement in terms of improvement in brand recall 37:05 37 minutes, 5 seconds value. If we consider that in terms of revenue how much uh what was the ROI? So that is attributed to various factors. 37:14 37 minutes, 14 seconds So it's challenging to dissect that how much incremental revenue came from which 37:20 37 minutes, 20 seconds factor. However, uh we have already delegated this task to our marketing 37:27 37 minutes, 27 seconds agency to measure how much improvement it is giving us in terms of brand recality. 37:37 37 minutes, 37 seconds and sir would it be possible for you to give what percentage of revenue currently comes from ecom Q platforms? Yeah sure. 37:46 37 minutes, 46 seconds So on YTD basis we have done 15 crores revenue comprising of four alternate 37:54 37 minutes, 54 seconds trade channels. One is railway, another is modern trade, third is you commerce and fourth is export. 38:01 38 minutes, 1 second Q3 our railway business was 2.3 crores, modern trade was 1.48 48 crores and 38:08 38 minutes, 8 seconds quick commerce was 1.91 crores and Q3 exports was zero and on YTD this is 38:15 38 minutes, 15 seconds railway we have done 5.41 41 crores, modern trade 359 crores, e-commerce 5.3 crores and exports 80 lakhs. 38:27 38 minutes, 27 seconds So do you see this e-commerce as a brand building channel or a material revenue driver over the next two to three years? 38:35 38 minutes, 35 seconds I mean it's both for us. 38:39 38 minutes, 39 seconds uh next financial year we'll be doing um on annualizes we'll be doing roughly 38:47 38 minutes, 47 seconds 15 17 crores from commerce. So that will translate uh little less than 1% of our 38:54 38 minutes, 54 seconds top line. So I mean it's helpful and definitely in brand building as well. 39:02 39 minutes, 2 seconds As the last question we sell product at ecommerce platform so it's not price point product it's 39:10 39 minutes, 10 seconds inhouse consumption product so it helps us in brand building and the last question sir so how does 39:18 39 minutes, 18 seconds management balance the debt reduction versus growth get exposed the fire recovery 39:26 39 minutes, 26 seconds uh sorry come again how does management balance the depth reduction is growth capex post the fire recovery. 39:35 39 minutes, 35 seconds So in terms of debt currently we have only working capital facilities with couple of banks. So we don't have any 39:42 39 minutes, 42 seconds term loan in our balance sheet currently and uh in terms of capexes uh so post 39:49 39 minutes, 49 seconds completion of the fire related capex we don't see much of the capexes uh majorly going forward capex is mainly would be 39:58 39 minutes, 58 seconds either it would be profit margin improvement or would be some maintenance capex. 40:04 40 minutes, 4 seconds Thank you for answering my question. All the best for the future. Thank you. Thank you. Thank you. 40:12 40 minutes, 12 seconds Thank you. The next question is from the line of Dhil Sha from Dalmas Capital Management. Please go ahead. 40:21 40 minutes, 21 seconds Hi. Hi. Thank you for taking my questions. So, first question is more on the Q4 commentary which you mentioned 40:28 40 minutes, 28 seconds that it would be similar to Q3. Um in Q3 the modasa plant was only operational for the December month. And 40:37 40 minutes, 37 seconds despite it being operational for the entire quarter in Q4, why is it that it would be at similar levels at Q3? I mean 40:46 40 minutes, 46 seconds are there any other challenges apart from manufacturing we are facing right now at distribution level or on the ground? 40:53 40 minutes, 53 seconds There are no such challenges by uh as I stated that historically Q4 uh is always 41:01 41 minutes, 1 second weaker versus Q3 to the tune of 4% to 10%. 41:06 41 minutes, 6 seconds So we will definitely reverse that trend either we will do at par or it will be slight better than three. 41:17 41 minutes, 17 seconds Okay. And the challenge you mentioned that u you are increasing the salesman at ground level. How long would it take 41:27 41 minutes, 27 seconds to normalize this uh challenge postfire what we you had mentioned? Yeah, that's that's an ongoing exercise. 41:35 41 minutes, 35 seconds I started that exercise somewhere in May 25 but then uh we backed out because of operational challenges and we stopped 41:44 41 minutes, 44 seconds that exercise in July. So we have restarted that exercise now and in last couple of months we are able to add 200 41:52 41 minutes, 52 seconds more salesmen in Gujarat alone and now roughly 24% of the beads are getting double coverage. 42:02 42 minutes, 2 seconds So that that's you know procedural change is taking some time and then there's a behavioral change because how does retailer react to double service 42:10 42 minutes, 10 seconds how how a distributor is able to manage the secondary distribution supplies when 42:18 42 minutes, 18 seconds you know booking booking frequency has gone from once in a week to twice in a week. So overall 42:25 42 minutes, 25 seconds typically it takes 100 days to stabilize once we start you know double service in a particular market but when I say it's 42:34 42 minutes, 34 seconds a gradual process so we have got 324 distributors right now in Gujarat. 42:41 42 minutes, 41 seconds So already at 85 distributors uh we have we have full beats under you know double 42:48 42 minutes, 48 seconds coverage and roughly 4550 distributors are such where partial beats are under double coverage. So when I say gradual 42:56 42 minutes, 56 seconds so over a period of time we will bring 80 89 80 to 90% of our dealers and beats under double coverage. So that will take 43:05 43 minutes, 5 seconds overall uh the whole thing will take one year to get stabilized. 43:14 43 minutes, 14 seconds Got it. Got it. And uh you start initiated the marketing campaigns in November. I mean filmf fair was one TV 43:23 43 minutes, 23 seconds ads and because most of our portfolio is impulse category tilted um the impact should have been more red. I mean what 43:32 43 minutes, 32 seconds are you seeing the trend just now from the market that film fair was was one of the events 43:40 43 minutes, 40 seconds and we didn't spend much money to amplify that event however our full-blown communication started on 25th of January only just three days back 43:48 43 minutes, 48 seconds only so we have yet to assess and we are sure since I have my own previous experiences that when 43:57 43 minutes, 57 seconds impulse category buying low price low involvement category or replaceable category kind of brand you know start 44:04 44 minutes, 4 seconds the marketing campaign then how does core market react and how non-core market reacts. So there are lot of curious distribution inquiry calls from 44:14 44 minutes, 14 seconds non-core markets. However, actual revenue, absolute revenue growth comes from core market because non-core may so 44:23 44 minutes, 23 seconds you have to first uh respond to that distribution inquiry call and that the ratio of converting 44:32 44 minutes, 32 seconds uh from inquiry to actual appointment is just 1.4%. 44:37 44 minutes, 37 seconds If we get 100 inquiries then only 1.4 Four distributor actually get get appointed. 44:54 44 minutes, 54 seconds Understood. And for this core market the marketing would only be through TV ads or I mean are we tapping into social 45:02 45 minutes, 2 seconds media as well? 360° social media, digital, radio, out of home, uh print, TV. 45:14 45 minutes, 14 seconds Okay. What is the budget that we have kept in mind? I mean to incorporate all of these campaigns. 45:31 45 minutes, 31 seconds Got it. Got it. In last question, I mean if you see the organized player in the smacking segment, each company has got a 45:39 45 minutes, 39 seconds I mean hero product which is successful at time indel not just very state specific I mean bua or or is it wafer 45:47 45 minutes, 47 seconds for some other company do you think that can become a hero product in a long time because it's a very community specific 45:55 45 minutes, 55 seconds product so far do you think it's possible maybe in next 5 to 10 years and what would it take to do that? 46:04 46 minutes, 4 seconds No, that mean by so I'll request you to go through uh you know slide number nine in our presentation. 46:14 46 minutes, 14 seconds If you see uh Gatya contribution in FY23 from uh core state was 76.4%. 46:27 46 minutes, 27 seconds And it is 69.3% add on date in Uttar Pradesh. My current run rate is you know 46:34 46 minutes, 34 seconds 6 cr rupees. So out of that 6 cr rupees 72% contribution comes from just two SKUs of Gatya. 46:46 46 minutes, 46 seconds Similarly run rate is 2 and a2 cr rupees. So out of that 2 and a half cr rupes revenue 46:53 46 minutes, 53 seconds 1.75 crore revenue is coming just from Gatia only. 46:59 46 minutes, 59 seconds So this is what I have been stating in my previous commentaries that ownership is on us. We are flag bearer of this 47:06 47 minutes, 6 seconds category. So we have to shoulder this responsibility. This is why a true 47:13 47 minutes, 13 seconds marketing campaign was badly needed to make the product more visible uh nationally. 47:22 47 minutes, 22 seconds So we have just unveiled that campaign. 47:25 47 minutes, 25 seconds So we will certainly improve lot in distribution and marketing campaign will definitely help us in expanding our hero product category. 47:36 47 minutes, 36 seconds Got it. Got it. Um that's it from my thank you so much for answering. All the best. 47:48 47 minutes, 48 seconds Thank you. The next question is from the line of Bumin Sha from Aquir Securities. Please go ahead. 47:56 47 minutes, 56 seconds Yeah, good afternoon. Uh I have only one question. Uh across the category there is a delta between the revenue growth 48:05 48 minutes, 5 seconds and the number of packets sold. on a Y basis as well as Q ofQ business basis. 48:10 48 minutes, 10 seconds So can you explain that if we have taken any price hike or uh behavioral changes are there and people are moving towards 48:18 48 minutes, 18 seconds the higher uh grammage packet or high price point packets mean by uh 48:27 48 minutes, 27 seconds see there is decline in number of packets however in absolute metric terms the growth is 4%. in volume term. So 48:36 48 minutes, 36 seconds consumer has overall eaten in more quantities. So we have not taken any price hike except in vapor segment. 48:46 48 minutes, 46 seconds So uh we understand that in terms of package there has been decline uh but with with various measures which 48:56 48 minutes, 56 seconds I just stated in my uh you know on the previous question we'll recover on that part as well. 49:05 49 minutes, 5 seconds Correct. So there is no change in the composition of rupees 510 or larger tax beam. Because if I look at the RTR for 49:13 49 minutes, 13 seconds Q, there is 2% growth in terms of package sold whereas there is 10% growth in terms of revenue. 49:21 49 minutes, 21 seconds Yeah. So uh if we see the slide number 25, 49:29 49 minutes, 29 seconds so we can see uh by price point now above 10 MRT contribution is 18%. 49:37 49 minutes, 37 seconds Whereas 5 rupees price point contribution is 63.3%. 49:41 49 minutes, 41 seconds And if we talk 3 years um like somewhere 22 23 year so 5 rupees price point 49:48 49 minutes, 48 seconds contribution was you know 80% in product basket of gopal. 49:55 49 minutes, 55 seconds Okay. Okay. Thank you. 50:02 50 minutes, 2 seconds Thank you. The next question is from the line of Shirish Pradeshi from Motilal Owal. Please go ahead. 50:12 50 minutes, 12 seconds Hi Navin Reand good afternoon. 50:16 50 minutes, 16 seconds uh just yeah just uh on slide uh 22 uh just extending the previous question 50:25 50 minutes, 25 seconds we have GST event coming up uh that's first part uh second uh we have ramped 50:31 50 minutes, 31 seconds up our uh facility and uh production third last quarter we also said that we are building the contract manufacturing 50:40 50 minutes, 40 seconds uh so this question is specifically uh on the UP and uh the other markets It's I think the growth has picked up but 50:48 50 minutes, 48 seconds when I when I do the maths uh you said that the volume growth is 4%. Which is still lower. So I'm not able to consider 50:56 50 minutes, 56 seconds because your volume cr packets growth is.9 for Gatia. I'm talking about only 51:04 51 minutes, 4 seconds specific for just give me a moment. 51:12 51 minutes, 12 seconds Yeah, we we increase the damage in price point uh 51:20 51 minutes, 20 seconds packs you know all five is price point we are giving 21 22 g so now we are 51:25 51 minutes, 25 seconds giving uh 23 24 g so 51:33 51 minutes, 33 seconds there is 6.6% 6.6% 6% volume growth in terms of metric 51:41 51 minutes, 41 seconds t in 5 rupees sq price point in terms of tonnage okay 51:50 51 minutes, 50 seconds but you said it was 4% the volume growth metric tillage growth was 4%. 51:56 51 minutes, 56 seconds Overall 4% but in five rupees 5 point it is 6.6%. 52:00 52 minutes And this could what could be this number for specifically for GT in terms of tage growth volume growth. 52:09 52 minutes, 9 seconds Just give me a moment. 52:11 52 minutes, 11 seconds Okay. Maybe later on you can share. Uh the second question uh is uh uh UP apparently is a very large market and we 52:18 52 minutes, 18 seconds also have a very positive view. uh can you snip out the growth we are expecting in UP uh in terms of capacity expansion, 52:27 52 minutes, 27 seconds in terms of distribution expansion and in terms of scale up of our product portfolio. 52:33 52 minutes, 33 seconds Right. So let let me come to uh capacity expansion. We already commenced a third 52:40 52 minutes, 40 seconds party operations in Kashipur 3 months back. So we are manufacturing just four 52:47 52 minutes, 47 seconds SKUs there series by and these four SKUs eventually contribute more than 80% of our top line currently in Uttar Pradesh. 52:56 52 minutes, 56 seconds So we have no Darth of capacity or no supply chain issues as of now in Uttar Pradesh. So distributor earlier was getting stocks in three days from 53:04 53 minutes, 4 seconds Nagpur. Now he is getting stocks either second day or either second day or third day maximum. Now coming to distribution 53:13 53 minutes, 13 seconds expansion part. We have currently 110 distributors in Uttar Pradesh and the 53:20 53 minutes, 20 seconds maximum number of distributors which we have aspired to grow is in Uttar Pradesh 53:27 53 minutes, 27 seconds and the uh area surrounding to our NPU factory. 53:34 53 minutes, 34 seconds So we are we are aspiring 180 plus distributors in this whole calendar by end of this whole calendar year in Uttar Pradesh. 53:46 53 minutes, 46 seconds Okay. Uh as is concerned we we are trying to work on 53:56 53 minutes, 56 seconds uh efficient distribution model as well as efficient product baskets. So we do not intend to expand our product basket 54:04 54 minutes, 4 seconds particularly in Uttar Pradesh market that will be purely need based and situation based. We will whatever new 54:12 54 minutes, 12 seconds distributors we are going to appoint in Uttar Pradesh we'll keep them confined to a very limited number of SKU product 54:20 54 minutes, 20 seconds basket. So a regular salesman can cover more than 50 outlets per day instead of selling more number of SKU and just covering 40 outlets in a day. 54:32 54 minutes, 32 seconds Okay. Uh and on the Kodasab you are you said you are four categories you have started manufacturing or full range is 54:39 54 minutes, 39 seconds started. No not four category just four SK modasa sorry modasa I thought. Yeah modasa. 54:49 54 minutes, 49 seconds Yeah. 54:51 54 minutes, 51 seconds So Modasa how many categories is started now manufacturing? 54:56 54 minutes, 56 seconds 100% categories is getting manufactured in Murasa right now. Everything. Okay. Okay. 55:04 55 minutes, 4 seconds Everything except third party. There are four third party products like banana wafers we get manufactured from third party. Then uh there's a kaju biscuit 55:13 55 minutes, 13 seconds and wafer biscuit which we get manufactured from third party. So except these items everything is getting manufactured in Modasa. 55:20 55 minutes, 20 seconds So today Modasa will stabilize maybe about 50 60% capacity utilization in quarter 4 and March or it will be lower. 55:31 55 minutes, 31 seconds I mean you are scaling up the operation. So that's why I'm asking this question. 55:37 55 minutes, 37 seconds Utilization. So capacity utilization uh in the current quarter it was less obviously in the March quarter it should 55:45 55 minutes, 45 seconds improve. So it should be in the range of around 50 55. 55:50 55 minutes, 50 seconds Okay. And this Rajcot will by what time you will start getting the capacity utilization? Do you have any timelines you have charted out? 56:01 56 minutes, 1 second So uh Rajur plant majority should get operationalized by uh by the last week of March or probably by the mid of 56:10 56 minutes, 10 seconds April. So that should start reflecting in the next uh year's first quarter. 56:16 56 minutes, 16 seconds So all in all you are you are very confident that you will match the revenue what you have achieved in FI25 and you will be recouping the margin because of the operational efficiencies. 56:26 56 minutes, 26 seconds That's what we should look at uh 26 or will be lower. 56:32 56 minutes, 32 seconds So in terms of uh top line yes uh we should be uh higher than the last year's pulas number and uh in terms of margin 56:42 56 minutes, 42 seconds uh full year in terms of data we should be around 7%. 56:48 56 minutes, 48 seconds Okay. All right. Thank you and all the best. Thank you. 56:56 56 minutes, 56 seconds Thank you. The next question is from the line of Sim Samantha from Motilal Oswald. Please go ahead. 57:04 57 minutes, 4 seconds Yeah, thank you for the opportunity. So I just wanted to check on gross margin. 57:09 57 minutes, 9 seconds Uh in 9 months we have done 27 and a half uh so how do you expect to close this for this year gross margin? 57:20 57 minutes, 20 seconds uh gross margin for the full year. Yeah. For 26. 57:27 57 minutes, 27 seconds So uh full year gross margin would be around uh 27%. 57:35 57 minutes, 35 seconds So in the Q4 we gross margin to be in the similar lines of Q. 57:41 57 minutes, 41 seconds So uh just hypothetical over here as you mentioned earlier that our margin will be in the range of 8 to 9447. 57:49 57 minutes, 49 seconds So uh assume earlier we wish to do 11 12 I mean two three years ago used to do for you know on the range of 12%. So uh 57:58 57 minutes, 58 seconds obviously for next 28 it's not possible to go in that level but if you if someone if snacks wants to go in that 58:06 58 minutes, 6 seconds level particularly what are the key factors you should look from 9% to 20%. 58:12 58 minutes, 12 seconds So one thing is so by 28 when you say 28 obviously we would be aiming to achieve 58:18 58 minutes, 18 seconds that number. So when we say next year when we are seeing 9% around and I say the quarterly our exit rate would be 58:26 58 minutes, 26 seconds near to double digit. So obviously for the 2728 then double digit becomes the normalized data margin. So we should be 58:34 58 minutes, 34 seconds reaching to that kind of anata margin by 2728. So that is what Yeah. Yeah. factors. Yeah. 58:43 58 minutes, 43 seconds You may you ask a question. 58:46 58 minutes, 46 seconds Yeah. So basically that's why I'm asking what is the key factors from 9 to 12%. 58:51 58 minutes, 51 seconds So key factors 9 to 12% would be one uh we would be as ninja 59:00 59 minutes basket mix. we are reducing the uh categories or we are uh cutting down the products wherein the lower margin or the 59:09 59 minutes, 9 seconds very minimal margin was there instead of that we are introducing the high margin products. Secondly once we will shift 59:15 59 minutes, 15 seconds from uh fully from uh bund to the Rajot facility that should improve our operational efficiency. Thirdly, our 59:23 59 minutes, 23 seconds freight cost should also include from the modasa which we have said previously. It should benefit on an yearly basis somewhere around 8 to 10 cr 59:31 59 minutes, 31 seconds of rupees that should translate around 0.5 to 6% margin. Thirdly uh the wherever long-term agreements we have entered that should also improve our 59:39 59 minutes, 39 seconds efficiency level because weight cost would reduce over there also. 59:44 59 minutes, 44 seconds So these are the few parameters and also we are introducing in terms of process efficiency everywhere the biopole would be used. So that also should improve our 59:52 59 minutes, 52 seconds operational efficiency. We are coming with the basin plan at Raj port. So that should also improve by 2.3% of our EB 1:00:00 1 hour data margins. And so not to forget when we start incurring marketing expenses. 1:00:08 1 hour, 8 seconds So that gives us strength to take little more money from consumer's pocket as well as from trade pocket. 1:00:19 1 hour, 19 seconds Right. 1:00:21 1 hour, 21 seconds And uh last questions from my side like if when to grow 15% over here how do you look nine as a category is it a par with 1:00:30 1 hour, 30 seconds our code mark I mean if we expect 15% category grow would be at par or to be 1:00:36 1 hour, 36 seconds much lower or higher how do you categor uh the growth rate across category will 1:00:47 1 hour, 47 seconds be between 15 and 25% % wafers we will aspire to do more however our total 1:00:54 1 hour, 54 seconds wafer value base is lower so it may be 30% in the range of 30%. Gatia 20% and 1:01:00 1 hour, 1 minute then u you know frams is 20% vapor 30% so numpkins will be between 15 to 20%. 1:01:10 1 hour, 1 minute, 10 seconds Got it. Got it. Okay. Thank you. 1:01:14 1 hour, 1 minute, 14 seconds Thank you so further questions from the participants. 1:01:23 1 hour, 1 minute, 23 seconds I now hand the conference over to the management for closing comments. 1:01:33 1 hour, 1 minute, 33 seconds I would I would like to thank everyone for joining this talk. I hope we have been able to respond to all your questions adequately. In case of any 1:01:42 1 hour, 1 minute, 42 seconds further information required, we request you to please get in touch with our investor relations. Stay safe, stay healthy and thank you once again for joining this call. 1:01:53 1 hour, 1 minute, 53 seconds Thank you. On behalf of MK Global Financial Services Limited, that concludes this conference. Thank you for 1:02:00 1 hour, 2 minutes joining us and you may now disconnect your lines. 1:02:04 1 hour, 2 minutes, 4 seconds and