Gopal Snacks Ltd — Q4 FY26

Gopal Snacks Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=japQC8Q3mzk Published: 15 hours ago

0:01 1 second Ladies and gentlemen, good day and welcome to Gopal Snacks Limited Q4 SI26 earnings conference call hosted by NK Global Financial Services Limited. 0:13 13 seconds As a reminder, all participant lines will be in the listenon mode and there'll be an opportunity for you to ask questions after the presentation 0:20 20 seconds concludes. Should you need assistance during this conference call, please signal an operator by pressing star then 0:27 27 seconds zero on your touchstone phone. I now hand the conference over to Mr. Rajesh Kumar from MK Global Financial Services Limited. Thank you and over to you sir. 0:39 39 seconds Uh good afternoon everyone. I would like to welcome the management and thank them for this opportunity. We have with us today Mr. Naven Gupta, Chief Business 0:46 46 seconds Officer and Mr. Regan Rahata, Chief Financial Officer. I shall now hand over the call to the management for the opening remarks. Over to you gentlemen. 0:58 58 seconds Thank you Rajesh. 1:00 1 minute Good afternoon and thank you for joining us for the earning call. We hope all you all had a chance to go through our 1:08 1 minute, 8 seconds investor presentation uploaded on the stock exchange. 1:12 1 minute, 12 seconds We'll share our key operating and financial highlights for the quarter and full year ended March 31st, 2026. 1:21 1 minute, 21 seconds As we reflect on Q4 and full year FY26, it has been a year of steady recovery, 1:28 1 minute, 28 seconds operational stabilization and consistent execution for Gopal next. Despite the challenges encountered earlier in this 1:36 1 minute, 36 seconds year, we have made meaningful progress in strengthening our manufacturing footprint, improving supply chain resilience, and expanding our market presence. 1:47 1 minute, 47 seconds During the quarter we reported revenue from operations of rupees 409.6 cr 1:54 1 minute, 54 seconds reflecting 29% growth on a ywide basis for the full year FY26 revenue was at 2:03 2 minutes, 3 seconds 1508.2 crores reflecting the growth of 2.7% as compared to FY25. 2:11 2 minutes, 11 seconds The performance during the period was supported by improved product availability, steady demand across key categories and continued expansion in our distribution network. 2:21 2 minutes, 21 seconds During the quarter, we witnessed stable demand across our core categories supported by improved product availability and continued traction in 2:30 2 minutes, 30 seconds key segments like Gatya, numpin and snack pallet. Our focus on strengthening four categories along with increased 2:38 2 minutes, 38 seconds expansion into newer markets has supported overall growth. A key mile a key milestone during the year has been 2:45 2 minutes, 45 seconds the successful ramp up and stabilization of our Modata facility which is now fully integrated into our manufacturing 2:52 2 minutes, 52 seconds network. Alongside our Naku plant, these facilities have played a critical role in improving production efficiency and ensuring consistent product availability 3:00 3 minutes across regions. During the quarter, the industry witnessed challenges related to gas supply restrictions. 3:07 3 minutes, 7 seconds However, we would like to highlight that our proactive approach toward adopting alternate fuel sources, including the 3:15 3 minutes, 15 seconds use of biopolas facilities, ensure that our operations continued without any disruption. 3:23 3 minutes, 23 seconds This not only highlights our operational resilience, but also supports our long-term focus on cost efficiency and sustainability. 3:31 3 minutes, 31 seconds On the distribution front, we continue to expand our reach through deeper penetration in existing markets as well as entry into underserved regions. Our 3:40 3 minutes, 40 seconds focus on our SSD model and addition of 125 micro distributor has enabled us to improve accessibility and strengthen our 3:48 3 minutes, 48 seconds presence across geographies. In terms of branding and marketing, we maintain momentum through targeted campaigns, 3:55 3 minutes, 55 seconds strategic partnerships and enhance on ground visibility. Gopalas next has undertaken targeted marketing initiatives including bus stop branding 4:04 4 minutes, 4 seconds branded bus speakers out of home advertising and campaign across premium digital platforms such as Gio hot star 4:12 4 minutes, 12 seconds leaves and Spotify. These initiatives have supported brand recall and consumer engagement across key markets. 4:23 4 minutes, 23 seconds We also continue to strengthen our backend capabilities through improvement in our distribution management system and ERP integration which has helped us 4:32 4 minutes, 32 seconds in enhance enhancing supply chain efficiency, improve inventory visibility and support better decision making. With this improvement, we continue to 4:40 4 minutes, 40 seconds strengthen our distribution network which now includes over 953 distributor which was 884 at end of quarter 3. 4:51 4 minutes, 51 seconds Looking ahead, our focus remains on driving sustainable growth through continued investment in capacity, strengthening distribution and enhancing 5:00 5 minutes brand visibility with a more efficient manufacturing network, improved operational efficiency and a disciplined approach to execution. We believe Bopath 5:08 5 minutes, 8 seconds next is well positioned to build on its growth momentum in coming year. I would now like to invite our chief financial 5:16 5 minutes, 16 seconds officer Mr. Regan Data to share his perspective on the financial performance during the quarter. 5:23 5 minutes, 23 seconds Thank you Narendra. Good afternoon to everyone. Let me take you through the key financial highlights for the quarter and the full year ended 31st March 26. 5:34 5 minutes, 34 seconds Starting first with the quarterly performance during Q4 FI26 we re we achieved revenue from operations of 5:41 5 minutes, 41 seconds rupees 49.6 crores reflecting a growth of 29% Y basis and 2.2% on quarteronquarter basis supported by 5:49 5 minutes, 49 seconds stable demand trend and improved product availability across market. Gross profit for the quarter was at 113 cr 5:57 5 minutes, 57 seconds translating into gross margin of 27.7% with a growth of 76.9% on y. 6:04 6 minutes, 4 seconds Margins during the quarter were supported by improved operational efficiency and stable input cost environment. Eid data for the quarter 6:11 6 minutes, 11 seconds was 31.5 crores with an evid data margin of 7.7%. 6:16 6 minutes, 16 seconds During the quarter company also spent around 1.2% on the advertisement cost. 6:20 6 minutes, 20 seconds The improvement was driven by the operating leverage, better capacity utilization and continued cost. 6:27 6 minutes, 27 seconds Profit before tax before exceptional item was 22.4 crores while profit after tax was 29.9 K resulting into B margin of 27.3%. 6:37 6 minutes, 37 seconds Now moving on to the full year performance for FI26 revenue from operation was at 158 crores reflecting 6:45 6 minutes, 45 seconds 2.7% growth over the previous year data for the full year is 101 crores with a margin of 6.7% supported by gradual 6:53 6 minutes, 53 seconds improvement in operations and normalization of supply chain during the year. Profit before tax before exceptional item was 60 K and profit 7:02 7 minutes, 2 seconds after tax is 73.7 K with a margin of 4.9%. 7:07 7 minutes, 7 seconds With regard to insurance during the quarter we received 17.55 K as an additional insurance proceeds as a part 7:15 7 minutes, 15 seconds of our ongoing claim process taking the total receipts during the financial year to approximately 31.5. 7:22 7 minutes, 22 seconds The process of asset restatement is in progress and we remain confident of recovering the balance PN in due course 7:29 7 minutes, 29 seconds of recently we have updated to the stock machine regarding the Rajot manufacturing uh production facility 7:38 7 minutes, 38 seconds commissioning with this the installed capacity of Rajot plant is 1 lakh 5,000 metric t and with this we also complete 7:46 7 minutes, 46 seconds our restatement of the Rajot manufacturing facility as far as production facilities is concerned This plant will have a manufacturing 7:54 7 minutes, 54 seconds diverse portfolio of raka numpkin and snack products. With the initiation of rashport plant, company will discontin the Google facility. Commissioning of 8:02 8 minutes, 2 seconds this plant will lead to improvement in operational efficiency and will also improve supply chain facil supply chain for sales in Sorashra and 8:10 8 minutes, 10 seconds as we move on into FI27, our focus remains on expanding our market presence, improving operational efficiency and driving growth across our 8:19 8 minutes, 19 seconds key product categories. With the strengthened operational views and discipline capital allocation, we remain confident of sustaining the growth 8:26 8 minutes, 26 seconds movement. We are confident that next strategic initiatives backed with a strong financial operational performance will continue to deliver long-term value for our state. 8:37 8 minutes, 37 seconds Thank you and over to you uh thank you 8:44 8 minutes, 44 seconds ladies and gentlemen. We'll now open the floor for questions. Anyone who wishes to ask a question may press R and one on 8:52 8 minutes, 52 seconds the touch on telephone. If you wish to remove yourself from the question, you may press R2. 8:59 8 minutes, 59 seconds Participants are requested to use handsets while asking the question. 9:03 9 minutes, 3 seconds Ladies and gentlemen, we will wait for a moment while the question to participants 9:11 9 minutes, 11 seconds you may press R and one to ask a question. 9:18 9 minutes, 18 seconds The first question is from the line of Nitan from HDFC securityities. Please go ahead. Yeah. Hi. 9:24 9 minutes, 24 seconds Uh thanks a lot for taking my questions. 9:27 9 minutes, 27 seconds Uh first congratulations on getting the Rajcode facility back to operations. Uh my first question is with respect to 9:34 9 minutes, 34 seconds topline. So with 100% supply resumption so FI27 will be a catch-up journey. So how do you see the top line shaping up 9:42 9 minutes, 42 seconds and could you break down the key growth drivers ahead? Hello, thank you for your question. 9:52 9 minutes, 52 seconds Oh, sorry to interrupt you. Uh, can I request to come little closer towards the speaker and talk? 10:01 10 minutes, 1 second Yeah, sure. 10:03 10 minutes, 3 seconds So, you want a breakdown from product perspective or uh I mean from photography? 10:11 10 minutes, 11 seconds No, no. So, so like given the current demand setting, how do you see FI27 shaping up and broadly qualitatively if 10:18 10 minutes, 18 seconds you can highlight like what are the uh sort of a strategy steps we are taking to sort of a drive growth or whatever 10:25 10 minutes, 25 seconds the target we have for FI27 not product specific in general like how you are going to uh go for the growth ahead 10:33 10 minutes, 33 seconds because your supply chain issues are now in the base so with 100% supply you should do better so just wanted to sense 10:40 10 minutes, 40 seconds like what is your aspiration for FI27 and how the growth drivers will be? 10:46 10 minutes, 46 seconds Okay, both attributes we are we are talking about right. 10:51 10 minutes, 51 seconds So in our bore market uh we we have taken an aim of you know growing 10:59 10 minutes, 59 seconds um to to generate a delta of around 170 to 180 crores on annualized basis and 11:06 11 minutes, 6 seconds main growth attributor in Gujarat will be as I earlier stated that split 11:14 11 minutes, 14 seconds coverage linewide coverage we uh we had covered 24% of our beats by quarter 3 11:23 11 minutes, 23 seconds end on double coverage I mean twice in a week by end of Q4 we already have 11:29 11 minutes, 29 seconds touched 29% of our beats are on uh double service module and by end of quarter 1 we have aimed to bring 40% of 11:38 11 minutes, 38 seconds our beats on in a week service in Gujarat now coming to the focus state 11:45 11 minutes, 45 seconds you know there will be growth from two attributors one is footprint expansion. 11:51 11 minutes, 51 seconds So we can see that uh we added roughly 65 70 dealers in Q4 versus Q3. So that 11:59 11 minutes, 59 seconds momentum will continue and then there will be organic growth. So we are aiming 12:05 12 minutes, 5 seconds 125 to 130 of growth from uh focus state and from the other states plus commerce, railway, modern trade etc. 12:15 12 minutes, 15 seconds uh we'll be clocking around 35 crores delta on annualized basis. So from current year we are aspiring and aiming 12:24 12 minutes, 24 seconds a delta of roughly 330 to 350 crores. 12:33 12 minutes, 33 seconds Sure. Thanks a lot for a detailed answer. Uh next question will will be pertaining to the inflation. So on current inflation, how are you placed 12:42 12 minutes, 42 seconds with Q1 and what actions have you taken to pass on the effect to consumer? 12:47 12 minutes, 47 seconds Additionally like from long-term perspective after GST and now with this inflation just wanted to have a sense on like how sector formulization you see. 12:56 12 minutes, 56 seconds So two parts to this question first is on a near-term inflation and how we are countering it and second is on long-term sector play. 13:07 13 minutes, 7 seconds So I can read this slide. So as far as cost first part is concerned uh there has been an increase in the raw material 13:15 13 minutes, 15 seconds prices which ranges in palm oil to packaging it which ranges from 15 to 20%. 13:23 13 minutes, 23 seconds As far as our product basket is concerned. So uh which if you look from the impact perspective till now it is 13:30 13 minutes, 30 seconds around 4 and a half%. So out of which majority we have been uh negate through 13:37 13 minutes, 37 seconds reduction in gage and increase in prices and also through some our internal bomb correction. So majority of this has been 13:44 13 minutes, 44 seconds negated. We are also reviewing the situation on a weekly and fortnightly basis as and when required we will further take the necessary steps to 13:52 13 minutes, 52 seconds stabilize the margins as far as Q1 uh concerned. 14:00 14 minutes And any sense on like uh this inflation how impacts on the unorganized players? 14:05 14 minutes, 5 seconds So do you see that the shift is happening and plus rupees 5 sq salient going down and shifting towards 10. Any thought you can offer there? 14:16 14 minutes, 16 seconds See uh definitely whenever this psychical thing takes place in our industry. 14:24 14 minutes, 24 seconds So the unorganized sector players come under pressure. 14:30 14 minutes, 30 seconds So there are two elements of this situation. one, we have not so far 14:36 14 minutes, 36 seconds witnessed any uh you know action from regional or local players. 14:46 14 minutes, 46 seconds However, we can sense that they'll be coming under pressure and 14:53 14 minutes, 53 seconds we expect that industry will ultimately will have to take a call how to and when 15:01 15 minutes, 1 second and how much transition will take place take place from 5 rupees price point to higher price point products. We have not 15:09 15 minutes, 9 seconds so far witnessed any action from smaller players on this. 15:15 15 minutes, 15 seconds Okay. Thank you. And lastly like if you can sort of given the current inflation setting if you can guide for the margin 15:23 15 minutes, 23 seconds uh uh we are attempting to do in this uh FI27 and also like last year we had a supply chain issue. So the our logistic cost 15:32 15 minutes, 32 seconds must have gone up. So if you can quantify what was the margin impact from the logistic cost. Thank you. 15:40 15 minutes, 40 seconds Yeah. So, uh next year for the margin front as we have been guiding we still stick to the same guidance that is 8% to 15:49 15 minutes, 49 seconds 9%. Uh the drivers for this margin growth obviously uh from the operational point of view since our Rajot facility 15:58 15 minutes, 58 seconds has stabilized so we will get the full year as far as Rajut facility is concerned. So that will definitely give us an impact you know a positive impact 16:06 16 minutes, 6 seconds as far as operational uh cost is concerned. Secondly transportation cost as we have been guiding earlier uh post 16:13 16 minutes, 13 seconds our modasa commissioning facility that will start flowing into the P&L. So in the current quarter also around 4 to 5% 16:21 16 minutes, 21 seconds benefit has flowed to our P&L and that shall continue in the next financial year also. 16:28 16 minutes, 28 seconds So owing to all these benefits and on the operational leverage since our sales target is 20 25% higher so that should 16:35 16 minutes, 35 seconds also give us the benefit. So owing to that we are quite confident that we will be able to achieve the margins between 8 to 9. 16:44 16 minutes, 44 seconds Sure. Thanks a lot. Thanks for answering my question and all the best for FI27. Thank you. Thank you. 16:53 16 minutes, 53 seconds Next question is from the Anish Roy from Noama. Please go ahead. 16:58 16 minutes, 58 seconds Yeah, thank you and congrats. Uh my first question is if I see your focus state in Q4 has grown slightly slower 17:05 17 minutes, 5 seconds than core states. Uh if you could tell us uh in detail more reasons behind this and in terms of outlook would you expect 17:12 17 minutes, 12 seconds focus states to come back faster than core state in Q1 and Q2? 17:17 17 minutes, 17 seconds Yeah. Amish by hello. Uh typically our QR Q4 historically have been lower than 17:25 17 minutes, 25 seconds Q3. If you see four out of five years, Q4 has been lower than uh you know Q3. 17:33 17 minutes, 33 seconds So u growth percentage in focus state if you compare with you know uh our core 17:40 17 minutes, 40 seconds state. So core state was more impacted uh because of this fire incident. So base became depleted. So focus states 17:48 17 minutes, 48 seconds are stable and with footprint expansion most of the footprint footprint expansion will come in core states only 17:56 17 minutes, 56 seconds uh in in focus states only. So um we will definitely get back on track in focus states as well. 18:05 18 minutes, 5 seconds So near-term your core state can still grow faster than focus market. Your core market can grow faster near term. 18:14 18 minutes, 14 seconds Near term definitely uh we can say that focus market and core 18:21 18 minutes, 21 seconds market growth percentage will be at par but on annualized basis uh focus market growth will be higher than core market. 18:32 18 minutes, 32 seconds Understood. Second question is in biscuit we saw odd pricing of 4.5 and 9 rupee. In your markets did uh we see 18:40 18 minutes, 40 seconds this in your business also that some players were selling at 4.5 and 9 rupee and uh have they come back in case they had cut to this odd pricing? 18:50 18 minutes, 50 seconds No, we we didn't see this odd pricing in our industry anywhere and uh I'll fail to comment on how they will uh you know 18:59 18 minutes, 59 seconds revise the pricing in near future. I'm sure that they will come to the uh normal pricing regime very soon because 19:08 19 minutes, 8 seconds inflation pressure will start biting them as well. Understood. Now last question uh last two months of course 19:15 19 minutes, 15 seconds India has seen the GLP uh that uh weight reduction uh drugs medicines fast uh sharp reduction in prices. Long-term 19:24 19 minutes, 24 seconds would you be concerned on this? I know India is such a large market, mass market and these are still reasonably expensive for most Indians but from a 19:32 19 minutes, 32 seconds conceptual thought process uh point of view obviously in developed market this is a concern for all junk uh and uh 19:39 19 minutes, 39 seconds these kind of categories would you be concerned that medium long-term as India lot of the middle class especially this could become a concern and then I'm sure 19:48 19 minutes, 48 seconds you'll say that you'll go for all this healthy snacks etc but if you can address address this from a conceptual stage 19:56 19 minutes, 56 seconds Meanwhile, we will have to deep dive into more data. Let let me tell you in India 20:04 20 minutes, 4 seconds uh per capita consumption of snacking from organized sector 20:11 20 minutes, 11 seconds is still far lesser than you know developed countries right. 20:17 20 minutes, 17 seconds So typically price point as well as snacking industry in India will continue 20:24 20 minutes, 24 seconds to grow. Coming to this uh healthier snack kind of thing. This phenomena is 20:31 20 minutes, 31 seconds largely confined to quick commerce and quick commerce as of now because 20:37 20 minutes, 37 seconds consumer uh the TG there and uh in GT are totally different. 20:46 20 minutes, 46 seconds Understood. in pre in in historically if I name few bigger 20:52 20 minutes, 52 seconds brands like whether listed or unlisted they have attempted multiple times to introduce you know baked baked chips and 21:00 21 minutes healthier snacks and all those you know their contribution is you know below 2% on the national average. So in in terms 21:08 21 minutes, 8 seconds of percentage we may see as a 40% growth healthier snack 6% grow but base remains 21:16 21 minutes, 16 seconds very very low. So we don't see any threat to our industry. However, uh as we earlier stated, as we stated 21:25 21 minutes, 25 seconds earlier in our commentaries as well that gradually we are trying to you know reduce our dependence on palm oil based 21:33 21 minutes, 33 seconds products but not at cost of our you know core products like we in recent times we introduced kaju biscuits, vapor 21:41 21 minutes, 41 seconds biscuits, popcorn, noodles, rust, vapor rolls all these products are you know non- palm oil based products and very 21:50 21 minutes, 50 seconds recently ly in last 15 days we have introduced cupcake we have introduced know 10 price 10 rupees price point r 21:56 21 minutes, 56 seconds drinks etc. So we are consciously doing that but not at cost of our poor product and we don't foresee 22:04 22 minutes, 4 seconds um decline in any consumption pattern on snack category and s one last followup this time elino 22:12 22 minutes, 12 seconds is there and so deficit in range 7% 8% is possible how does this impact your rural consumption in H2 of FI27 and in 22:21 22 minutes, 21 seconds terms of inflation can pulses also see inflation because of all this uh so your RM and demand both could Is it impacted in H2? 22:30 22 minutes, 30 seconds Yeah. As far as raw material is concerned, our basic raw material which is uh Chennai and potato. So for next 6 22:39 22 minutes, 39 seconds to 8 months, we have the sufficient stock which is as for our requirement we have stock till almost till the end of 22:47 22 minutes, 47 seconds November. So any increase in the prices of the pulses will not impact our profit. Second half. 22:55 22 minutes, 55 seconds So second half probably around November December yes we need to buy from the market at that time we'll go across but 23:03 23 minutes, 3 seconds then option is also there like in the FI 2526 the imported option was also available as far as China is concerned 23:10 23 minutes, 10 seconds so we took the price benefit over there also similar options we'll explore in the Q4 as then our required 23:19 23 minutes, 19 seconds and demand side we don't see any you know downside in demand only. 23:28 23 minutes, 28 seconds We don't find any, you know, major reasons for any downside in demand. 23:34 23 minutes, 34 seconds Okay, that's all from my side. Thank you. Thank you. Thank you. 23:40 23 minutes, 40 seconds Next question is from the line of Risha Mata from Green Edge. Please go ahead. 23:46 23 minutes, 46 seconds Yeah, thank you. U so the first one is you know on the uh uh the fire the loss related to fire that we had booked was 23:53 23 minutes, 53 seconds around 47 crores and I think we've received around 37 crores so uh how likely um you know we can expect the 24:01 24 minutes, 1 second balance 10 crores claim to also kind of go through uh 24:08 24 minutes, 8 seconds uh it would not be balanced 10 crores with the higher amount than that reason being that we have gone for the restatement and whatever we have written 24:16 24 minutes, 16 seconds off in books of accounts was based on uh WDB uses. So our reinstatement cost is obviously much higher. So that we can 24:24 24 minutes, 24 seconds expect by probably uh quarter two uh for that money to be coming into our business. 24:32 24 minutes, 32 seconds And so how much is that incremental amount that we are expecting assuming they are you know they uh you know give us the full benefit of the restatement. 24:44 24 minutes, 44 seconds Uh it would be somewhere in the range of 35 to 40. 24:49 24 minutes, 49 seconds Okay. Okay. And uh uh you know so uh you know with all this fire incident and you know the supply chain issues uh we had 24:57 24 minutes, 57 seconds lost market share right. So uh since the Modasa plant started somewhere around in November of 2025 and the supply chain 25:05 25 minutes, 5 seconds issues majorly got resolved. So since then have we seen uh that recovery of market share uh or uh you know regaining 25:14 25 minutes, 14 seconds whatever shelf space that you know we would have lost. uh how's the traction been there in terms of regaining the market share and maybe if you could 25:22 25 minutes, 22 seconds split that in terms of your uh core market Gujarat and uh you know the uh Rajasthan I believe was also impacted. 25:30 25 minutes, 30 seconds So I could comment on these markets. All right. Thank you for your question. 25:35 25 minutes, 35 seconds We are witnessing uh improved trajectory from March onwards to be very specific 25:43 25 minutes, 43 seconds and uh right now as well our current run rate is an indicator that we are on recovery path in terms of our loss 25:52 25 minutes, 52 seconds market and this is across all markets right core focus. 26:01 26 minutes, 1 second Yeah, now we can see the per day run rate is across market. 26:07 26 minutes, 7 seconds In fact, even Uttar Pradesh in H2 has been more than 26% over H1, 26:16 26 minutes, 16 seconds right? And and you know just coming uh to your raw materials, right? So if you could call out what is the RM basket 26:24 26 minutes, 24 seconds like chana and potato are the major ones but would they be like what 40 50% of the total RM basket and also if the other major ones like palm oil and laminates if you could comment. 26:36 26 minutes, 36 seconds Yes. So our as far as our purchase basket is concerned so major are palm oil chana lemonade and last is the 26:43 26 minutes, 43 seconds potato. If I talk about palm oil it is around 26 to 27%. 26:48 26 minutes, 48 seconds Uh China is around 21 to 22%. Uh lemonade that is packing material it is around 18 to 19%. And I miss that what is 18 to 19%. 27:00 27 minutes Lemonate packing material. Right. Right. Right. Okay. 27:07 27 minutes, 7 seconds And potato is around 6%. This I'm referring from the purchase basket first. 27:13 27 minutes, 13 seconds Potato is 6%. Right. Okay. And uh you know considering um that uh to regain market share of course we would have had 27:22 27 minutes, 22 seconds to you know um spend uh more on trade spends and u you know uh uh also we are 27:29 27 minutes, 29 seconds seeing an inflationary trend. But there you all seem to be reasonably confident of you know passing on whatever uh uh inflation you all are seeing. Uh right. 27:38 27 minutes, 38 seconds So with that uh and you know the fact that uh now with the Rajford plant coming in and we are seeing some 27:45 27 minutes, 45 seconds logistics cost benefit and labor cost and power cost benefits uh wouldn't you say and the fact that we've already 27:52 27 minutes, 52 seconds started gaining market share um then in that light wouldn't your guidance of you know 8 9% AITA margin for the next 28:00 28 minutes financial year FI20 for sorry for the current financial year FI27 doesn't that seem to be on the conservative side 28:07 28 minutes, 7 seconds because if gross margins uh you know uh can be protected and your operational costs will be going down and assuming 28:15 28 minutes, 15 seconds you're regaining market share then your uh uh trade spends should also kind of be paired down. So uh just your thoughts there. 28:26 28 minutes, 26 seconds So as far as trade spend is concerned uh we would be uh obviously looking on that front but that our uh reduction on the 28:35 28 minutes, 35 seconds trade spend would be in a very gradual phase wise manner. So on an immediate let's say in 26 27 it is not we would 28:42 28 minutes, 42 seconds not be looking on a major cut as far as trade spend is concerned. Yes our advertisement spend that will continue to have like in current financial year 28:50 28 minutes, 50 seconds we have spent around 1.7%. So next year we projecting another 2.2 2 to 2.3%. So that's where we continue to spend and 28:59 28 minutes, 59 seconds secondly when we say the guidance of 8 to 9% it is purely based on current volatility of the raw material prices 29:06 29 minutes, 6 seconds and we are quite confident that our exit run rate would be near to double digit although average annualized data margin will be will continue to remain 8 to 9%. 29:18 29 minutes, 18 seconds Thank you. I'll request to come back for a follow-up question please. 29:24 29 minutes, 24 seconds Thank you. I request to all the participants kindly limit yourself to two questions per participant and rejoin the queue for a follow-up. 29:32 29 minutes, 32 seconds Next question is from the line of Sohham from Motila Losan. Please go ahead. Yeah, thank you for the opportunity. 29:41 29 minutes, 41 seconds Yeah, I just wanted to check uh Navin Gi as you guided this 330 to 350 K data for F27 on product wise how do you look? So 29:49 29 minutes, 49 seconds basically we have product like gatia, numpkin, pallets and wafers the four category immediately we have on product wise how do we look for next year on growth wise. 30:00 30 minutes Yeah so before I answer specifically to your question let me give a clear statement that improving market share 30:08 30 minutes, 8 seconds protecting market share is to be paramount for us. So Risha you talking about this trade spend thing we we are 30:18 30 minutes, 18 seconds on you know very good business model in terms of our very least dependence on 30:25 30 minutes, 25 seconds super stockies. So 97% of our business come to direct distributors. So we will start reaping benefit of distribution 30:34 30 minutes, 34 seconds automation on full scale from H2 onward. Then we will definitely look into cutting down some of our trades. Now coming to your 30:42 30 minutes, 42 seconds question swam by the we have a base of roughly 410 crores. So we are aiming 18 30:50 30 minutes, 50 seconds to 20% growth from data segment. Numpies we have a base of 350 crores. We are aiming 15% growth in uh this financial 30:59 30 minutes, 59 seconds year. Prime we have a base of 250 crores. So we are aiming 15% growth there. Wafer we have a base of 155 31:08 31 minutes, 8 seconds crores. We are aiming 40% growth there and all other products put together be it you know papard 31:16 31 minutes, 16 seconds retail packs of basan spices or bakery products or noodles or r etc we are 31:24 31 minutes, 24 seconds aiming growth of 30%. So that is a split of you know category wise. 31:31 31 minutes, 31 seconds Okay. And if you look these three categories like Gatya, Numkin and Pal if you can give uh how this industry has 31:41 31 minutes, 41 seconds been growing in Gujarat because majority of our state is still on the Gujarat. So I just wanted to check in last year last 31:48 31 minutes, 48 seconds year how this product wise Gatia Namin how this category has been going in the digital market. Our assessment is that 31:56 31 minutes, 56 seconds uh Gatya has a growth of 15 to 20% in Gujarat 32:03 32 minutes, 3 seconds and NI you know industry growth itself is 14 15%. 32:09 32 minutes, 9 seconds And uh prime um prime growth must be in line with the industry growth only that 15%. 32:22 32 minutes, 22 seconds Okay. 32:23 32 minutes, 23 seconds Uh and what kind of capex we're doing for next couple of years? I I believe it's only maintenance capital. 32:32 32 minutes, 32 seconds Yeah. So our majority of expansion capex has been done. Uh for the next financial year what we are looking at 42 45 crores 32:41 32 minutes, 41 seconds kind of a capex uh which would include some of the uh our corporate office building uh at Rajur. So that capex will 32:50 32 minutes, 50 seconds happen in this financial and that would be limited. 32:55 32 minutes, 55 seconds Thank you. So may we request to come back for a follow-up question please. A request to all the participants kindly limit yourself to two questions for participants. 33:04 33 minutes, 4 seconds Next question is from the line of Shri Naran Mishra from Boda BNP. Baraba. Please go ahead. 33:13 33 minutes, 13 seconds Uh thanks. Uh so my first question is on capacity utilization. Uh on slide 11 uh are the numbers for 4Q or full year. 33:25 33 minutes, 25 seconds That is for full year. 33:27 33 minutes, 27 seconds Full year. So on 4Q basis would you have the capacity utilization? 33:37 33 minutes, 37 seconds It would be almost near to that. 33:41 33 minutes, 41 seconds Okay. Okay. So why I'm asking this is that when you are saying uh your beta margins would be at a double digit exit 33:50 33 minutes, 50 seconds rate in FI27 uh what kind of capacity utilization you expect uh you know from the 300 350 K 33:58 33 minutes, 58 seconds incremental sales uh that you would be doing in FI27 34:05 34 minutes, 5 seconds capacity would be roughly around uh uh 43 to 45% Thank you. 34:16 34 minutes, 16 seconds Kindly come back for the next question. 34:19 34 minutes, 19 seconds Next question is from the line of Pali from Samia. Please go ahead. 34:24 34 minutes, 24 seconds Yes sir. Thank you for taking my question. I wanted to understand on this Zadas and Cupcake you know this others category. What would be their share? Um 34:33 34 minutes, 33 seconds is it more in the from the core markets where getting these revenues or it's also focused markets? 34:40 34 minutes, 40 seconds uh you know we we do pilot of any new product first in four states and that's 34:48 34 minutes, 48 seconds doing parts of four states then we roll out to the other states for example we did pilot of kaju biscuit as well as 34:56 34 minutes, 56 seconds popcorn first in Gujarat that's doing limited parts of Gujarat then we rolled in darra then we went ahead with the you 35:04 35 minutes, 4 seconds know full all the geographies so right now uh We released this cupcake couple 35:10 35 minutes, 10 seconds of days back only in Gujarat only. Drink uh the same treatment we released 15 days back in Gujarat only. We'll see the 35:19 35 minutes, 19 seconds response and if response is good then only we'll roll out in rest of the geography. 35:26 35 minutes, 26 seconds Right. Is it I mean we have shown 26% growth in our market. So how much of that would have been contributed by these uh new products? 35:40 35 minutes, 40 seconds Uh just give me a moment 35:51 35 minutes, 51 seconds from the new new products. I mean you you wish to ask whatever new products we introduced during the financial year. 35:58 35 minutes, 58 seconds Yes. One one year. 36:01 36 minutes, 1 second Yeah. So this you are popcorn and kaju biscuit. Yeah. 36:06 36 minutes, 6 seconds I say how much was the contribution from it? Yeah. Or roughly you can say if it's 36:13 36 minutes, 13 seconds been a big driver for this core market growth or Yeah. Just a broad sense you can give us. 36:21 36 minutes, 21 seconds Yeah. question 36:30 36 minutes, 30 seconds 25 say it has gone to 63 cr in full financial year. So this delta out of 36:39 36 minutes, 39 seconds this delta 38 crores roughly you know 50 crores has come from post 36:47 36 minutes, 47 seconds right. Okay so my second question would be what the are the margins for these new products would they be lower than the existing products? 36:58 36 minutes, 58 seconds Popcorn I believe should be higher. Yeah. 37:02 37 minutes, 2 seconds Yes. Yes. opponent is higher even for biscuits are more or less in same line of margin as of our existing product. 37:12 37 minutes, 12 seconds Okay. Okay. Uh yes just to 37:19 37 minutes, 19 seconds uh update you we we have been doing another exercise. 37:24 37 minutes, 24 seconds We have been rationalizing our product basket by eliminating low margin, low 37:30 37 minutes, 30 seconds contributing SKUs and even products and we have been trying to you know 37:38 37 minutes, 38 seconds promote the high margin high contribution products. 37:43 37 minutes, 43 seconds Thank you. I'll request to come back for a follow-up question please. 37:49 37 minutes, 49 seconds Next question is from the line of Shirish Pradeshi from Motila Lwal. Please go ahead. 37:56 37 minutes, 56 seconds Congratulations for Rajot and reinstatement. 38:00 38 minutes Uh good afternoon Marin and Reagan by on slide 27 we have given uh the break up 38:09 38 minutes, 9 seconds of uh SKU uh price point. I see that uh large pack has gone up by 300 basis 38:16 38 minutes, 16 seconds point and five rupees has come down by 300 basis point. So I just wanted to understand and assess your thoughts in 38:23 38 minutes, 23 seconds terms of margin how it moves because 5 rupees obviously will have a lower gramage and also higher packing cost and 38:31 38 minutes, 31 seconds even distribution cost. So if this number is changing by 200 300 basis point in FI27 how delta for the margin you will see. 38:44 38 minutes, 44 seconds So, so uh sorry by uh historically our five rupees price point uh SPU have been 38:53 38 minutes, 53 seconds giving us similar or better margin versus our larger pack. However, since dynamics are changing very fast. So when 39:02 39 minutes, 2 seconds we rationalize the gram in smaller pack, so simultaneously we are taking a price hike in bigger SKO as well. So this uh 39:11 39 minutes, 11 seconds you know 3% uh 300 basis point reduction from five piece price point is largely 39:19 39 minutes, 19 seconds attributed to introduction of uh newer products like we introduced this wafer 39:26 39 minutes, 26 seconds biscuit. So wafer biscuit although remains five piece but however when we compute in our SAP so there are 40 39:34 39 minutes, 34 seconds uh pieces in a jar. So for us in our system that MRP is 200 rupees you got my point? 39:42 39 minutes, 42 seconds Yes. 39:43 39 minutes, 43 seconds So margin in our case we we work in industry like this when whenever there is a pressure in five rupees price point margin so we reduce proportionately. 39:55 39 minutes, 55 seconds Okay. 39:57 39 minutes, 57 seconds Got it. Uh my second question uh now in terms of capacity I mean last year we have done some contract also arrangement 40:07 40 minutes, 7 seconds now what we understand now Modasa is full fully occupied and there is a capacity utilization which will happen 40:14 40 minutes, 14 seconds but Rajot is also started so just wanted to understand if you give a overview what we are producing in Rajot what we 40:22 40 minutes, 22 seconds are producing in Morasa and what will happen to Golude so maybe in terms of manufacturing all facilities how and 40:29 40 minutes, 29 seconds where we are happening and maybe we somewhere said that in UP also we will do only top three SKUs and try and 40:36 40 minutes, 36 seconds exploit the market not giving all the products so given this all uh is the growth number uh is cyclloan 40:46 40 minutes, 46 seconds yeah so sh as far as bund facility is concerned uh that will discontin as we have started manufacturing from Rajur 40:54 40 minutes, 54 seconds and Raj facility will have bakya Numpin snack pallet extraates. 40:59 40 minutes, 59 seconds Murasa facility will continue to have all kinds of numpin as well as vapor and napur facility will have gata numpin 41:07 41 minutes, 7 seconds snack pellets and vapors. So this is in line with our earlier guidance that all 41:14 41 minutes, 14 seconds the three plants will produce almost all kinds of products except wafers and as far as uh third party is concerned. So 41:23 41 minutes, 23 seconds third party wherever we had communicated earlier that for the UP as well as Satisgard and for the south those third 41:30 41 minutes, 30 seconds party arrangement has been done predominantly to improve the supply chain and to enter into those markets which will help us to have our bookmarks 41:39 41 minutes, 39 seconds in those markets wherein current our transportation cost was much higher. So we thought to pass on this additional transportation cost to the consumer through third party. 41:50 41 minutes, 50 seconds Just one quick follow up on this. Yeah, I I got that Reagan by so I'm just trying out uh the focus market growth on 41:58 41 minutes, 58 seconds a Q basis only one and a half%. The Y is a function of capacity utilization and scale up which has shown 25%. I'm more 42:07 42 minutes, 7 seconds interested this growth which is uh in the focus market we have this contract third party manufacturing element to 42:15 42 minutes, 15 seconds streamline the supply. So what I mean on the back side I also give credit to Naven that there is a distribution scale 42:22 42 minutes, 22 seconds up also which has happened but is this growth is too small or too large can come in FI27. 42:30 42 minutes, 30 seconds Yeah. 42:36 42 minutes, 36 seconds Right now we are manufacturing through and in Kashipur we are producing only 42:42 42 minutes, 42 seconds four SKUs which contribute to 76 77% of the Uttar Pradesh. 42:49 42 minutes, 49 seconds Now coming to this Q4 focus market growth percentage being lesser than expected. So my answer remains the same. 42:58 42 minutes, 58 seconds Historically our Q4 has been lower than Q3 to the tune of 6 to 7%. But this 43:05 43 minutes, 5 seconds time we have reversed the trend. Q4 has been better than Q3. And now with the supply chain being stable if you see our 43:14 43 minutes, 14 seconds distribution footprint numbers. So for the first time now we have started this growth number again like we we have 43:22 43 minutes, 22 seconds declined in our number of distributors in Q1 Q2. 43:26 43 minutes, 26 seconds Now since we have started adding those numbers as well so growth will definitely come from focus markets as well. 43:36 43 minutes, 36 seconds Thank you. Chi request to come back for a forum. A request to all the participants. 43:42 43 minutes, 42 seconds Kindly limit yourself to two questions per participant. Next question is from the line of woman cha from Equest Security. Please go ahead. 43:54 43 minutes, 54 seconds woman may request to unmute your line and proceed with your question. The line for the participant dropped. 44:03 44 minutes, 3 seconds The next question is from the line of SHA strategy from Ageless Capital. Please go ahead. 44:08 44 minutes, 8 seconds Hello sir, thank you for taking my question. On the topline side, could you just indicate uh what would be the number of dealers or the dealer 44:17 44 minutes, 17 seconds expansion you're planning to do and the revenue per dealer in the core and focus market as well as if you plan to take 44:24 44 minutes, 24 seconds any more gramage reduction or price hikes in your various products like Gatiana? 44:32 44 minutes, 32 seconds Yeah. Australia. 44:34 44 minutes, 34 seconds Uh in Q4 we added 69 new distributors and in entire calendar year we have we 44:43 44 minutes, 43 seconds took an aim to add 250 distributors. So we are on the right track. Number one coming to this gramage reduction we 44:52 44 minutes, 52 seconds already took roughly you know 4% gram reduction in mid of April itself and now 45:02 45 minutes, 2 seconds we keep observing and we keep tracking competition activity we will take another call based on 45:11 45 minutes, 11 seconds how industry reacts definitely there will be internal factor that how much influ inflation impact 45:19 45 minutes, 19 seconds come on us but definitely we will see how industry also react. 45:28 45 minutes, 28 seconds Got it. And uh if like on that follow-up question, what would be the revenue per dealer uh like for the mature markets, 45:36 45 minutes, 36 seconds core markets and the focus markets when when the dealers mature? 45:42 45 minutes, 42 seconds In core markets right now our run rate is close to 85 94 rupees and we have a base of 300 distributors. So run rate 45:51 45 minutes, 51 seconds will be close to 30 lakhs per month per dealer and in focus markets 45:57 45 minutes, 57 seconds um you know typically we do 400 crores on annualized basis. 46:05 46 minutes, 5 seconds So that converts into roughly 35 crores on monthly basis on a base of 600 46:11 46 minutes, 11 seconds distributor. So range of you know size of scale of business of a dealer varies. 46:20 46 minutes, 20 seconds To start with we start dealer with with a top line of around one lakh to two lakhs only. Then gradually it goes up. 46:28 46 minutes, 28 seconds So we have you know very different range like in Chhattisgarh we have a dealer of one lakh as well and we have a dealer of 70 lakhs as well. In Rajasthan we have a 46:37 46 minutes, 37 seconds dealer of one lakh as well and we have a dealer of 65 lakhs as well. The range will differ from state to state and you 46:46 46 minutes, 46 seconds know depends key how what is the age of that dealer. 46:53 46 minutes, 53 seconds Got it. So on the margin front like the AITA margin front while your gross margin has improved because of the uh 46:59 46 minutes, 59 seconds restoration of Rajot facility but your other expenses has been slight generally elevated versus your uh previous uh 47:07 47 minutes, 7 seconds years like you used to do much lower SGNA to sales previously compared to FI26. So do we see that trend going 47:16 47 minutes, 16 seconds forward also your receivable and inventory days have also increased on FI26. So what do you see to be going forward? 47:25 47 minutes, 25 seconds So as far as receivable base is concerned uh it has increased and if you look at number of days it is 9 days but 47:32 47 minutes, 32 seconds we are also able to negotiate our trade payable days. So as far as overall working capital cycle is concerned still it remains in our comfortable. 47:41 47 minutes, 41 seconds Uh so secondly if we look at you're referring to fully margin right? 47:49 47 minutes, 49 seconds Hello. Hello. 47:53 47 minutes, 53 seconds Hello. I'm referring to the other expenses part. 47:56 47 minutes, 56 seconds Ah, other expenses part. So that includes the transportation cost, advertisement cost and all other uh 48:05 48 minutes, 5 seconds pertaining to operation cost which is contractual cost. So as we say for the next financial year definitely we would 48:12 48 minutes, 12 seconds have a margin benefit front since our operational leverage as on the additional sale. So we expect on an overall basis it would increase but if 48:20 48 minutes, 20 seconds you look from the margin perspective it should give us benefit of around 1%. 48:25 48 minutes, 25 seconds Thank you Sh I'll request to come back for a follow-up question. 48:31 48 minutes, 31 seconds Next question is from the line of Ashok Sha from Columbia. Please go ahead. 48:37 48 minutes, 37 seconds Uh thanks for allowing me to ask a question. Uh for uh knowing by uh can you just give me some guidance? uh what 48:45 48 minutes, 45 seconds is the size of the order from the retail counter quarter and quarter wise we are getting 48:54 48 minutes, 54 seconds whether it is increase and do we offer them that bidding or booking system to 49:02 49 minutes, 2 seconds retail counter in a village area because today don't have what 49:11 49 minutes, 11 seconds you are asking about retail counter Yes sir. 49:18 49 minutes, 18 seconds So nationally we are catering to 3.9 lakh dealer through our DMS system and 49:25 49 minutes, 25 seconds as far as indirect distribution are concerned through wholesale channel and other channels estimated presence is at 49:33 49 minutes, 33 seconds roughly one lakh more outlet. So we we at national level are present at five lakh outlet. 49:41 49 minutes, 41 seconds So do we give them any any of the best booking system directly booking comes 49:48 49 minutes, 48 seconds directly to our manufacturing plant and we have got a control sample over our products and everything because one of 49:55 49 minutes, 55 seconds uh one of the other industry has done such a system and they have lots of saved on the self system and 50:04 50 minutes, 4 seconds distribution system. As our distribution first goes to the uh our distributor, our product goes to first distributor 50:11 50 minutes, 11 seconds then it is kept there for two three days and then it is distributed. So product inventory and everything goes uh doesn't 50:18 50 minutes, 18 seconds go directly to the consumer. It goes to to the number of channels. 50:24 50 minutes, 24 seconds Yeah. So since why not clear but whatever question I could get let me explain you how our DMS functions at 90% 50:33 50 minutes, 33 seconds of our dealer our fully integrated DMS is operational so it is mandatory for 50:40 50 minutes, 40 seconds them to book the order through that interface only they book so that booking is visible to us on real time basis live 50:50 50 minutes, 50 seconds basis so we track secondary ary sales. 50:55 50 minutes, 55 seconds We can track secondary sales on daily basis on hourly basis. Bases that secondary trend we have yet to introduce 51:04 51 minutes, 4 seconds auto replenishment system to our distributor. That work is in 5. That is work in progress. As of now distributor 51:12 51 minutes, 12 seconds place order to the company to 6 p.m. is the cut off. Basis that order we supply those stocks within 48 hours. 51:21 51 minutes, 21 seconds This is how we function as thank you. 51:27 51 minutes, 27 seconds Next question is from the line of Anoj Kasha from A3 Capital Private Limited. Please go ahead. Hello. 51:35 51 minutes, 35 seconds Yes sir. Go ahead. 51:37 51 minutes, 37 seconds Uh sir uh just I wanted to know how much amount of uh money do you spend on the innovation because see lot of money is changing this sector. 51:47 51 minutes, 47 seconds city based Balaji wafers have got a good amount of money from the private equity fund 51:54 51 minutes, 54 seconds innovation research if you are asking about product 52:01 52 minutes, 1 second innovation yes that's very simple methodology 52:08 52 minutes, 8 seconds uh our our marketing team you know they do market work they do 52:15 52 minutes, 15 seconds research on the basis grow what is scalable and which are the growing categories. So basis that they come with 52:22 52 minutes, 22 seconds product sample and then they give their recommendation. Then we assess whether those products are manufacturable and 52:30 52 minutes, 30 seconds are profitable to us and then we assess if those products are have synergy with our existing product basket if they fit 52:38 52 minutes, 38 seconds to our existing distribution network or not. So in terms of product research, we 52:45 52 minutes, 45 seconds do not spend any heavy money. Everything is inhouse. As far as uh other research 52:53 52 minutes, 53 seconds reports are concerned, so last financial year we had hired Canar and uh we got a 53:01 53 minutes, 1 second research report from them that was based on Gatya specifically. So we we paid just 30 lakh rupees in amount to them. 53:12 53 minutes, 12 seconds Last time I remember in one conference. 53:20 53 minutes, 20 seconds So what is your take on it? 53:24 53 minutes, 24 seconds After stabilizing of this supply chain thing, we have resumed our exports to selective countries to our you know 53:33 53 minutes, 33 seconds older customer. Right now we are we are in discussion with a company who is 100% 53:43 53 minutes, 43 seconds EOU company and has a good consumer base over 66 countries. So we intend to do a 53:51 53 minutes, 51 seconds third party tie up instead of you know um bringing scale through our internal 53:58 53 minutes, 58 seconds effort because those are time consuming and costlier ways. Yes sir. That is that is that one is large indicative then. 54:07 54 minutes, 7 seconds Yes. So thank you sir. Thank you. 54:12 54 minutes, 12 seconds Thank you. Next followup question is from the line of Shri Naran Mishra from BNP Barab. Please go ahead. 54:21 54 minutes, 21 seconds Uh thanks for the followup. Uh my question is on debt level and working capital levels. Uh this seems to be a bit elevated. Is it in the wake of 54:30 54 minutes, 30 seconds rising uh co cost inflation uh that you have piled up inventories and uh because of that should we expect higher finance costs next year? 54:42 54 minutes, 42 seconds Uh working capital has increased earlier primarily on account of we have stored more amount of cha as compared to larger expecting prices to increase in 26 27. 54:56 54 minutes, 56 seconds So definitely the bank borrowing has gone up purely on account of increase in our inventory level. Secondly as we 55:04 55 minutes, 4 seconds would expecting insurance proceed to also uh give us some amount into our channel. So we are expecting that should 55:13 55 minutes, 13 seconds reasonably maintain our finance cost for next financial. 55:16 55 minutes, 16 seconds So so you are guiding similar finance cost next year or higher than last year. 55:22 55 minutes, 22 seconds Uh it would be slightly higher than the current financial year. So if you look at overall number of finance cost for 55:29 55 minutes, 29 seconds the current financial year uh it is uh around 7 cr. So we are expecting roughly to close around 10 cr. 55:39 55 minutes, 39 seconds Okay. Okay. And so last quarter you had highlighted in up that we are doing 6 cr monthly sales from top two. 55:49 55 minutes, 49 seconds Uh so what's the update there in 4Q? Has it increased or I mean what's the update for UP? 55:58 55 minutes, 58 seconds Our total per month sale is 6 crores in UP and out of that 72% 56:04 56 minutes, 4 seconds sales come from two SKUs alone. So H2 has been very promising. H2 there has 56:12 56 minutes, 12 seconds been turnaround in we have grown by 26% over H1 in so 56:19 56 minutes, 19 seconds what's the run rate now? Monthly run rate. 56:23 56 minutes, 23 seconds Yeah. Currently monthly run rate is 6 and a half cr 6 cr. 56:29 56 minutes, 29 seconds Okay. Okay. So, so basically that can grow by fi 27 and 28 78 cr or 9 cr. 56:38 56 minutes, 38 seconds Uh we expect since up is among among our focus market and we are targeting a growth of 35% from focus market. you 56:47 56 minutes, 47 seconds know uh we had started this Kashipur uh thing somewhere in October November. 56:54 56 minutes, 54 seconds So one of the attribut to growth in UP has been that third party operations 57:00 57 minutes from that Kashipur plant. So we expect that momentum to continue and we expect 57:08 57 minutes, 8 seconds that exit should be around you know 8 and 1/2 to 9. 57:14 57 minutes, 14 seconds Okay. Okay. Thanks and thank you very much ladies and gentlemen. We'll take that as 57:24 57 minutes, 24 seconds the last question. I now hand the conference over to the manager for closing comments. 57:35 57 minutes, 35 seconds I would like to thank everyone for joining this our call and I hope we have been able to respond to all your queries 57:43 57 minutes, 43 seconds satisfactory and adequately. If you feel further any information is required, please get in touch with us and with our investor relations. 57:52 57 minutes, 52 seconds Stay safe, stay healthy and thank you once again for joining us. Thank you. 57:57 57 minutes, 57 seconds Thank you very much. On behalf of MK Global Financial Services Limited, that concludes this conference. Thank you for joining us and you may now disconnect your Thank you.