Heritage Foods Ltd — Q4 FY26

Heritage Foods Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=LO9Q3Ujk1q8 Published: 1 day ago

0:01 1 second Ladies and gentlemen, good day and welcome to the Heritage Foods Q4 and FY26 earnings conference call. As a reminder, all participant lines will be 0:10 10 seconds in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please 0:19 19 seconds signal an operator by pressing star then zero on your touchstone phone. Please note that this call is being recorded. I 0:26 26 seconds would now like to hand the conference over to Miss Gara Singla. Thank you and over to you. 0:31 31 seconds Thank you. Good morning everyone. I'm Dimma Singla and it's my pleasure to welcome you on behalf of Heritage Foods Limited. Thank you for joining us today 0:40 40 seconds for Q4 and FI26 earnings conference call. This call is being hosted by Go India Advisor. Please note that today's discussion may include certain 0:48 48 seconds forward-looking statements. Therefore, they must be viewed in conjunction with the risk that the company faces. Today on the call, we are joined by Mrs. 0:55 55 seconds Brahmani Nara, executive director, Mr. M. Sama sama rao wholetime director Mr. 1:01 1 minute, 1 second Shiri Kwan CEO Mr. A Rabakar Naidu CFO Mr. J Samba Morti COO M Dr. Bridge Moan 1:09 1 minute, 9 seconds CEO Heritage Mutate Limited and Mr. Omar Kanta Barak company secretary and compliance officer I now invite Dr. Rao to present the company's business 1:18 1 minute, 18 seconds outlook and performance after which we will open the floor. Thank you over to you sir. 1:25 1 minute, 25 seconds Thank you very much for the introduction. Good morning to everyone on the call and thank you all for joining us today. 1:35 1 minute, 35 seconds At the outset, on behalf of the entire management team at Heritage Foods, I would like to sincerely thank our farmers, employees, distribution 1:44 1 minute, 44 seconds partners, customers, consumers, shareholders, and all stakeholders for their continued trust and support 1:51 1 minute, 51 seconds through what has been one of the most challenging years with the ID industry has witnessed in recent times. 1:58 1 minute, 58 seconds As we close FI26, we do so with deep gratitude, resilience, and optimism for the future ahead. 2:07 2 minutes, 7 seconds Now turning to quarter 4 and the overall performance of financial year 26. 2:14 2 minutes, 14 seconds The final quarter of the year was shaped by an exceptionally tight milk supply environment, 2:21 2 minutes, 21 seconds elevated procurement inflation, and sustained volatility in dairy commodity markets. 2:27 2 minutes, 27 seconds What made this period particularly unprecedented was that the industry experienced supply shortages not only 2:34 2 minutes, 34 seconds during the lean season but even through periods where availability is traditionally expected to improve. 2:43 2 minutes, 43 seconds This created significant pressure across procurement input costs and operating margins for the entire dairy sector. 2:52 2 minutes, 52 seconds Despite these difficult external conditions, Heritage Foods demonstrated resilience, stability, and execution 2:59 2 minutes, 59 seconds strength across the value chain. Our teams on the ground remain deeply committed to supporting farmers, 3:07 3 minutes, 7 seconds ensuring uninterrupted supply, maintaining product quality, and serving consumers consistently across markets. 3:16 3 minutes, 16 seconds Despite one of the toughest operating environments witnessed by the dairy industry in recent years, Heritage Foods delivered resilient revenue performance in Q4 of FI26. 3:30 3 minutes, 30 seconds Consolidated revenue for the quarter grew 10% yearonear to 11,576 3:37 3 minutes, 37 seconds million rupees while fullear revenue crossed the significant milestone of 3:43 3 minutes, 43 seconds 45,000 million rupees reaching 45,260 million rupees. This performance 3:52 3 minutes, 52 seconds reflects the strength of our brand, resilient consumer demand and sustained momentum across value added products. 4:02 4 minutes, 2 seconds During the quarter, AITA stood at 522 million rupees with an AITA margin of 4.5%. 4:10 4 minutes, 10 seconds While profit after tax stood at 230 million rupees with a PAT margin of 2.1%. 4:17 4 minutes, 17 seconds profitably remained under pressure due to unprecedented procurement inflation. 4:23 4 minutes, 23 seconds However, disciplined pricing actions, improving product mix and continued operational efficiencies helped partially mitigate the impact. 4:33 4 minutes, 33 seconds Milk procurement during the quarter declined 7% year on year to 16.38 lakh liters per day, reflecting persistent supply side constraints across industry. 4:44 4 minutes, 44 seconds Average milk procurement prices increased sharply by 8% year on year to 46 rupees 67 pesa per liter in quarter 4 4:54 4 minutes, 54 seconds while for the full year the procurement prices increased 7% year on year to 44.72 rupees per liter amid industry 5:04 5 minutes, 4 seconds industrywide milk inflation. Despite these pressures, we remain committed to our farmer first philosophy, continuing 5:11 5 minutes, 11 seconds to prioritize timely farmer payments, cattle feed support, veterinary assistance, and direct engagement 5:18 5 minutes, 18 seconds programs, reinforcing long-term trust and supply continuity. 5:24 5 minutes, 24 seconds On the consumer side, demand remained healthy and encouraging. Milk sale volumes grew 1% year on year to 11.73 5:34 5 minutes, 34 seconds lakh liter per day during quarter 4 and 2% year on year to 11.83 lakh lit per day for FI26. 5:43 5 minutes, 43 seconds Average milk selling prices improved 4% yearonear to rupees 57.80 80 per liter 5:50 5 minutes, 50 seconds in quarter 4 and to rupees 57.13 per liter for FI26 5:57 5 minutes, 57 seconds supported by calibrated pricing actions sustained brand strength and stable consumer demand. 6:04 6 minutes, 4 seconds Value added products once again emerged as a key growth driver for the company. 6:09 6 minutes, 9 seconds Categories such as curd, paneer, ghee, ice creams, drinkables and other high margin products delivered strong growth 6:16 6 minutes, 16 seconds reflecting improving brand preference, deeper market penetration and sustained consumer engagement. Importantly, the quality of growth continued to improve. 6:28 6 minutes, 28 seconds Value added products remained central to our long-term strategy with VAP revenues growing 18% yearonear during Q4. 6:36 6 minutes, 36 seconds Contribution from value added products increased to 35.5% of overall revenues compared to 32.5% in 6:45 6 minutes, 45 seconds the corresponding period last year reflecting sustained premiumization and improving revenue mix. This 6:52 6 minutes, 52 seconds transformation not only strengthens our profitability profile over the long term but also improves the resilience and 6:59 6 minutes, 59 seconds quality of the business. From an operational perspective, our teams continue to focus sharply on efficiencies across procurement, 7:08 7 minutes, 8 seconds logistics, chilling, and digital interventions. These initiatives helped partially offset inflationary pressures 7:16 7 minutes, 16 seconds and improve execution agility during a volatile environment. Even amidst industry headwinds, Heritage Foods 7:24 7 minutes, 24 seconds continued investing confidently behind the future. Our Hyderabad ice cream facility has now moved into production 7:31 7 minutes, 31 seconds phase while the flavored milk plant is also nearing operationalization fully. 7:37 7 minutes, 37 seconds These capacities will strengthen our presence in high growth categories and position us well for the next phase of expansion 7:45 7 minutes, 45 seconds by 26 was not an easy year for the dairy industry. From erratic weather patterns and weak flush season to unprecedented 7:53 7 minutes, 53 seconds butter shortages and elevated procurement costs, the sector face several challenges at what stands out for Heritage Foods is 8:02 8 minutes, 2 seconds the res resilience of our business model, the dedication of our teams and the trust of millions of consumers and farmers associated with us. 8:12 8 minutes, 12 seconds As we look ahead, while near-term cost pressures may persist for a while, improving milk availability, normalization in commodity dynamics, 8:21 8 minutes, 21 seconds stronger value added products contribution to revenue and benefits from ongoing capacity expansion give us 8:28 8 minutes, 28 seconds confidence about the future trajectory of our business. We enter FI27 with cautious optimism, stronger capabilities 8:37 8 minutes, 37 seconds and renewed determination. Our focus remains clear strengthening farmer relationships, driving premiumization, 8:46 8 minutes, 46 seconds improving efficiencies and creating sustainable long-term value for all stakeholders. 8:53 8 minutes, 53 seconds With this, I would like to conclude my remarks and open the floor for interaction. Thank you very much. 9:01 9 minutes, 1 second Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchdown 9:09 9 minutes, 9 seconds telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a 9:18 9 minutes, 18 seconds question. Ladies and gentlemen, we will wait for a moment while the question Q assembles. 9:25 9 minutes, 25 seconds We'll take our first question from the line of Samir Gupta from IFL Capital. Please go ahead. 9:32 9 minutes, 32 seconds Hi sir, good morning and thanks for taking my question. Uh so our first question and it has two sub questions. 9:38 9 minutes, 38 seconds So the outlook on milk prices. Now last quarter we had mentioned that milk prices would remain firm till the advent 9:45 9 minutes, 45 seconds of cow flush in May and so we here we are in May and are we seeing any signs of moderation and a sub question to this 9:53 9 minutes, 53 seconds is last year was a good year in terms of rainfall which generally is seen as a positive for next year's milk production 10:00 10 minutes given reservoir levels are healthy and uh uh there is ample availability of feed etc. But this year also has an 10:08 10 minutes, 8 seconds expectation of below rain below normal rainfall and now we are seeing inflationary pressures because of the west Asia crisis. So does it change the 10:17 10 minutes, 17 seconds outlook for milk production in upcoming flush? Your thoughts? 10:24 10 minutes, 24 seconds Um good morning Sam. This is Shrihib here. 10:28 10 minutes, 28 seconds Uh first of all uh there are you know I'd like to break down the problem into two right. One is 10:36 10 minutes, 36 seconds the volume availability or or milk availability itself and number two is the pricing. Usually whenever there is 10:43 10 minutes, 43 seconds surplus milk availability is when the prices soften significantly. 10:48 10 minutes, 48 seconds uh we saw in quarter 3 as well as in quarter 4 u both impacted in terms of 10:55 10 minutes, 55 seconds milk availability surplus milk availability especially in the regions where we operate uh was uh uh uh there was a constraint which impacted the 11:04 11 minutes, 4 seconds prices as well. As we speak now, we are already seeing uh supply side improve in 11:12 11 minutes, 12 seconds uh you know in regions uh of uh dominant cow milk uh uh availability. So you can 11:20 11 minutes, 20 seconds see that the cow milk flush has started and we are seeing the volumes uh being 11:28 11 minutes, 28 seconds increasingly available uh but it has yet to reach a place where there is sufficient surplus that the prices will 11:35 11 minutes, 35 seconds start softening. So on on the one hand it is a positive uh uh signal which we 11:42 11 minutes, 42 seconds are all uh very happy about but it is still not reached a place where uh uh you know uh it has started uh reducing 11:52 11 minutes, 52 seconds the prices for car prices. That's that's the first part. The second is uh yes you're right uh last year we had 11:59 11 minutes, 59 seconds excessive rainfalls. uh but what we should also note is that rainfall happened at time when rain shouldn't have happened. So uh like summer was 12:08 12 minutes, 8 seconds total totally washed out uh whereas uh in uh during the monsoon there were several areas which had a deficit of 12:17 12 minutes, 17 seconds rainfall. So uh the the headline here is actually climatic varies 12:24 12 minutes, 24 seconds the unpredictability of weather and this in the last quarterly call also our uh 12:31 12 minutes, 31 seconds CEO of heritage explained that it results in animal stress usually hormones and all get impacted and that's 12:38 12 minutes, 38 seconds what results in production uh you know declining or or animal productivity falling. uh we just hope and again there 12:48 12 minutes, 48 seconds is I like you rightly said there is news of El Nino new and all uh and uh uh we are also witnessing on the sales side 12:56 12 minutes, 56 seconds there is good news there is a good summer happening right now but then what we need is a balanced year uh okay so we 13:05 13 minutes, 5 seconds all hope at this point in time we are hoping that this is a normal year uh there would be monsoon as it should be 13:13 13 minutes, 13 seconds uh there is summer as as it should and things will normalize but it is still too early to say. 13:21 13 minutes, 21 seconds Uh just a followup here sir. So let's say hypothetically this is a below normal uh monsoon. Uh uh will then it 13:30 13 minutes, 30 seconds have will it have implications this year itself on the cow or buffalo or uh uh uh 13:37 13 minutes, 37 seconds it won't matter and you know that's not a factor to look at. 13:44 13 minutes, 44 seconds It is uh you know we shouldn't speculate first of all see this as a country India is the largest producer of milk in the 13:51 13 minutes, 51 seconds world we have 8 cr dairy producing households uh the numbers are just too many and and the regions are so India is 13:59 13 minutes, 59 seconds also very large country with many geoclimatic uh regions it's very difficult to predict exactly how this will grow but then we should also 14:08 14 minutes, 8 seconds understand there are multiple factors uh one factor is the climatic uh impact on the minimal productivity. But the other 14:15 14 minutes, 15 seconds factor is pricing. Uh the farm level prices has never never ever reached the 14:24 14 minutes, 24 seconds level that it is right now. So we feel and and this I said in the last quarterly call also that we feel at this 14:31 14 minutes, 31 seconds price level farmers are profitable. uh and uh with this we expect more and more dairy farmers or more and more farmers 14:40 14 minutes, 40 seconds to enter into dairying and usually this results in uh uh production gradually increasing and despite all other adverse 14:48 14 minutes, 48 seconds uh factors it should result in uh productive production going up and prices softening. this has to happen 14:56 14 minutes, 56 seconds that is this is a fundamental basis of every commodity cycle right so uh but the thing is it we shouldn't speculate 15:04 15 minutes, 4 seconds uh on the timing of this at this point in time I can only report that uh the cow flush has started well and we have seen volumes coming in 15:14 15 minutes, 14 seconds got it sir this is very helpful uh second question is on the cape this year so we've seen a 380 cr 15:21 15 minutes, 21 seconds uh can you give a rough split of where exactly this has gone Normally we do a 150 to 200 crore kind of a capeex and 15:29 15 minutes, 29 seconds what would be the guidance for the coming upcoming year. 15:35 15 minutes, 35 seconds Sure. Give us a minute. Um yeah. So uh 15:43 15 minutes, 43 seconds this see bulk of the capex has actually gone in plant production capacity expansion. 15:54 15 minutes, 54 seconds Uh and uh yeah, just just give me a minute. Huh? Sure. 16:06 16 minutes, 6 seconds Yeah. Uh Samir, uh roughly around 300 crores has gone into plant production 16:13 16 minutes, 13 seconds capacity expansion. the largest uh uh you know proportion of this or large percentage of this has gone into our 16:21 16 minutes, 21 seconds green field ice cream facility which we inaugurated in Hyderabad. We also inaugurated a a flavored milk uh uh line 16:30 16 minutes, 30 seconds that's also a green field facility. Uh this is in Tripati. Uh these are the two main uh areas where the capex has gone 16:38 16 minutes, 38 seconds in. We have also expanded our curd production capacity by another 50 tons per day. uh this is all in requirement 16:45 16 minutes, 45 seconds as per requirement of the season. So all uh investment and and and some small uh 16:51 16 minutes, 51 seconds uh in increase in uh buttermilk etc. So all value added products capacity is where we have invested. We also invested 17:00 17 minutes close to about 20 cr rupees in uh milk procurement or ceiling center capacity addition that is in line with our 17:07 17 minutes, 7 seconds yearon-year expansion and the others are all minor capitals and in terms of going forward we have a 17:16 17 minutes, 16 seconds couple of projects uh that is work in progress we are in the process of expanding our uh paneer capacity which 17:24 17 minutes, 24 seconds is growing at uh upwards of 30% in terms of keer volume terms which means that every two years we'll have to almost 17:31 17 minutes, 31 seconds double our capacity. So uh there is a project on paneer there is a project on ghee ghee consumer ghee is actually doing very well for us this year again 17:39 17 minutes, 39 seconds we have grown uh in terms of revenue we have grown upwards of 50%. So there is a project that is undergoing in this apart from that we have only regular capex in the pipeline. 17:50 17 minutes, 50 seconds So 200 cr should suffice or you expect uh uh another year of uh more than 200 cr. 17:59 17 minutes, 59 seconds Yeah know I think it'll be around that uh amount is what we should look at. 18:04 18 minutes, 4 seconds Got it sir. Last question if I may squeeze in with your permission. Uh hello. Can I go ahead? 18:15 18 minutes, 15 seconds Yeah please. 18:16 18 minutes, 16 seconds Yeah. So uh uh uh just a bookkeeping number fat sales during the quarter and during the year. 18:30 18 minutes, 30 seconds So I believe you're on mute mode. Yeah. Fat sale. 18:36 18 minutes, 36 seconds Bulk bulk fat. 18:40 18 minutes, 40 seconds Yeah. Well, I can see that there was no bulk fat sale, but I think CFO will give the exact number. Uh uh bulk fat sale for this quarter uh is nothing actually only 2.55 crores. 18:53 18 minutes, 53 seconds Okay, got it. And uh for the year uh for the full year 37.56 crores. 19:02 19 minutes, 2 seconds Got it sir. That's all from me. Thanks for taking all the questions and I'll come back in the queue for any follow-ups. Thanks. 19:08 19 minutes, 8 seconds Thank you. Next question is from the line of Abhishek Matur from systematics. Please go ahead. 19:15 19 minutes, 15 seconds Yes. Hi, good morning sir. Thank you for the opportunity. Uh just wanted to check sir uh do you feel that uh due to the uh 19:22 19 minutes, 22 seconds milk supply uh constraints or shortages uh the growth for us was held back or is currently being held back uh in any way 19:31 19 minutes, 31 seconds uh versus what we could have uh done uh for the quarter or for the for the current quarter? That's my first question. 19:39 19 minutes, 39 seconds Volume-wise there was no constraint. uh we managed the volumes right uh uh but in terms of pricing 19:48 19 minutes, 48 seconds uh we had taken up uh pricing a little more aggressively uh which might have muted uh the growth a little bit in 19:57 19 minutes, 57 seconds terms of volumes uh especially on the uh milk in the milk actually our volume growth was only about 1.2%. 20:06 20 minutes, 6 seconds uh that was because of aggressive uh repeated price increases that we had to do uh to manage the raw milk price 20:14 20 minutes, 14 seconds inflation but otherwise supply side there was it did not constrain our uh growth right a follow up on that so the the 20:22 20 minutes, 22 seconds pricing that we took what was the quantum of that for the previous quarter and currently anything that we are planning on this on this side 20:31 20 minutes, 31 seconds price increases numbers I think uh this is indicated in uh uh investor note or 20:38 20 minutes, 38 seconds sir you can say yeah anything further planned sir in the current quarter yeah so we increased our meal prices by 20:47 20 minutes, 47 seconds about 3.96% or 4% you could say for the quarter uh and uh you know across value added products we had increased prices 20:56 20 minutes, 56 seconds everywhere like C prices increase by this again a mixed change also is there because you know different regions might have had different impact uh Even paneer 21:05 21 minutes, 5 seconds we took up prices by 5%. Ice cream prices went up by about 13%. Uh etc. 21:12 21 minutes, 12 seconds Yeah. So uh as we speak now we have again uh increased prices uh for selectively 21:19 21 minutes, 19 seconds uh in uh in several markets uh as in the month of April and we are continuing to review this in May also. 21:29 21 minutes, 29 seconds We are taking up some more prices. 21:32 21 minutes, 32 seconds Good news is that uh now staying strong, the demand is strong and despite price increases, we have 21:41 21 minutes, 41 seconds been able to grow business. So, so that's good news. So, we are rather than picking pricing up in one shot, uh we 21:48 21 minutes, 48 seconds are staggering it and we are taking it by different packs and different regions. 21:54 21 minutes, 54 seconds Right. And so, can you quantify the price increase that you've taken in April and now in May? 22:00 22 minutes I won't be able to uh tell you that I suffices uh that we are sorry sir sorry to interrupt the last line was not clear can you please repeat 22:08 22 minutes, 8 seconds sir yan sir I said I won't be able to tell you about the prices in uh in the current quarter 22:16 22 minutes, 16 seconds but I can tell you that uh we are actively looking at price increases we have done price increases as well 22:25 22 minutes, 25 seconds right so and secondly uh just wanted to check what is the salience of cow milk for our for our production and which are the regions where we we are indicating 22:34 22 minutes, 34 seconds that there has been a cow flush and therefore there is a recovery in supply we we have about 80%age uh cow milk in 22:42 22 minutes, 42 seconds our mix and uh predominantly uh it is the south of India which is uh uh southern and coastal Andra as well as 22:50 22 minutes, 50 seconds Tamnad and Maharashtra these are main regions for us. 22:57 22 minutes, 57 seconds All right, great sir. Thanks and all the best. 23:00 23 minutes Thank you. Next question is from Nirmam from Unique PMS. Please go ahead. Yeah, thank you for the opportunity. 23:08 23 minutes, 8 seconds Just a follow up on the previous participants question. So you mentioned that milk volumes were muted due to the uh price that we have taken but volumes have been poor for quite some time now. 23:19 23 minutes, 19 seconds So what are the challenges challenges that we are facing you know for uh growing a milk field especially the 23:26 23 minutes, 26 seconds volumes uh 23:35 23 minutes, 35 seconds yes I think uh the first and foremost and as far as milk is concerned uh you know see as a company we are uh focused 23:43 23 minutes, 43 seconds on delivering a balanced growth which means that we need to sustain growth momentum in milk at the same time driving aggressive growth in value adder 23:52 23 minutes, 52 seconds products and it is a fact that as a company we have sustained uh aggressive growth in value adder products in the 24:00 24 minutes quarter that went by in quarter 4 our value added products have grown at 22.5%. 24:06 24 minutes, 6 seconds And uh this is value added products including uh ghee and if I remove the ghee also value added products have grown at 18%. Right u but milk growth 24:15 24 minutes, 15 seconds has been about 6%. And uh out of which roughly around 1 1.2 percentage is uh volume growth and the rest is revenue 24:23 24 minutes, 23 seconds pricing price priceless growth. Uh there are there are two factors happening. The the first is that in most of our markets 24:30 24 minutes, 30 seconds actually what is uh driving aggressive growth for us in value added products is curd and uh we are seeing that households previously that used to buy 24:39 24 minutes, 39 seconds milk and convert part of the milk to curd are now buying kurd as well in package form which is great news because the penetration of kurd in households 24:48 24 minutes, 48 seconds even now inh south south of India is only at around 20 to 25%. Which means that 70 to 75% of 24:57 24 minutes, 57 seconds people are still or 75 to 80% of people are still making cur at home. This is fast changing especially with uh you 25:04 25 minutes, 4 seconds know uh u you know the aggressive uh category building work that we have done in the last four or five years and this 25:12 25 minutes, 12 seconds is helping us put put ourselves in a leadership position. So this is one factor. So, so the quantity required for 25:19 25 minutes, 19 seconds the household is is is now breaking up into milk and curd and kurd is coming home directly 25:26 25 minutes, 26 seconds and hence the milk requirement is falling a bit. This is one reason. The second reason is increasing uh 25:33 25 minutes, 33 seconds competition and I don't think that I can uh shy away from this. uh every like heritage is now available in north India 25:41 25 minutes, 41 seconds and west India and all of that in Mumbai, Delhi and all the same way some of the uh uh national brands are also coming to our markets right so there is 25:50 25 minutes, 50 seconds increased uh competition in all markets and uh that's also another reason why the market is getting more and more 25:56 25 minutes, 56 seconds fragmented uh but see uh as far as we are concerned uh there are two things that are most important for us number 26:03 26 minutes, 3 seconds one is that we hold our franchise and uh we sustain the uh uh momentum uh which 26:10 26 minutes, 10 seconds means that we need to continue to grow uh and and and that is what we have delivered uh I don't think in any other quarter we have declared that we have 26:18 26 minutes, 18 seconds degrone in volumes we have never right so we are growing uh secondly uh what is important for us is that we are 26:27 26 minutes, 27 seconds aggressively driving growth in value added products to overcompensate uh for the limited growth in milk and and these two have worked reasonably 26:35 26 minutes, 35 seconds well for And so so does that mean so earlier we were expecting you know about 4% of 26:44 26 minutes, 44 seconds volume growth in milk volumes. So does that number change going forward in a normal situation is when the supply constraints are not there. 26:54 26 minutes, 54 seconds So there is no supply constraint but I'm saying yes that is still our northstar. 26:58 26 minutes, 58 seconds See the industry is expected to grow at between 3 to 4%. As far as milk is concerned and uh so it is our uh aim to 27:07 27 minutes, 7 seconds grow at uh you know that rate uh and and but this is a combination of many factors. Uh it is a combination of like 27:16 27 minutes, 16 seconds I said uh uh consumers uh consumer uh basket shrinking. Uh it's also a 27:23 27 minutes, 23 seconds function of markets fragmenting, channels fragmenting. It's also a function of various regions. It's not like say while we have our numbers are 27:32 27 minutes, 32 seconds 1% growth region wise there are variances also. So we our aim is still to uh try and uh aim and reach uh that 27:42 27 minutes, 42 seconds 4%age grow growth uh uh target that we have for ourselves. 27:49 27 minutes, 49 seconds Thank you and all the best. 27:52 27 minutes, 52 seconds Thank you. We'll take our next question from the line of Rasham Jen from BBD Asset Managers. Please go ahead. 28:01 28 minutes, 1 second Yeah. Hi. Uh uh good morning. So I have two questions. So first one is uh in the current situation uh how are you seeing 28:10 28 minutes, 10 seconds cooperatives uh behaving especially in uh Andra, Karnataka and Maharashtra. Are they are 28:17 28 minutes, 17 seconds they is it similar or are you seeing any difference and uh are they also taking it right eye? 28:24 28 minutes, 24 seconds We don't have reported numbers. We don't have their reported numbers but all must be going through the same situation 28:33 28 minutes, 33 seconds in all the regions except in Karnataka where the Nandini has reported in the news that they have achieved good volume 28:41 28 minutes, 41 seconds of milk in this month the last month because there not many people procure milk in Karnataka as there is a price 28:49 28 minutes, 49 seconds discrepancy but other states must be in the same board but no numbers are announced. by any of them. 28:59 28 minutes, 59 seconds So no price uh like you took 4% price increase. Uh sorry I missed the others. 29:13 29 minutes, 13 seconds Yeah. Uh basically some cooperatives have increased the prices and uh some other cooperatives have not increased the 29:22 29 minutes, 22 seconds prices in this particularly southern region. 29:26 29 minutes, 26 seconds If Kerala increased Karnataka, Karnataka not increased, Kerala not increased. AP cooperative 29:34 29 minutes, 34 seconds increased it and Telangana corporate went through elections recently. Maybe we can expect the government's form. 29:47 29 minutes, 47 seconds Understood. Understood. 29:50 29 minutes, 50 seconds Uh sir the second question is with respect to your north and Mumbai geography. Uh what is the contribution 29:58 29 minutes, 58 seconds now coming from uh both this uh region for you in terms of revenue is still less than 10%. 30:07 30 minutes, 7 seconds And profitability because this regions were still in the ramping up stage and profitability was low. Are you seeing improvement there? 30:20 30 minutes, 20 seconds uh it is these regions are still not profitable for us. Uh we are working towards improving the profitability. 30:27 30 minutes, 27 seconds Maybe this this current financial year FI27 could be a year where uh we are we will see some improvement and we get 30:35 30 minutes, 35 seconds closer to uh break even at least in one of the regions. 30:42 30 minutes, 42 seconds Okay, understood. Great sir. Thank you. All the best. Thank you. 30:49 30 minutes, 49 seconds We take our next question from the line of Rahan Syad from Senior Asset Manager. Please go ahead. 30:56 30 minutes, 56 seconds Uh yeah, good morning to your team and so I have a couple of questions. First on your audible right? 31:04 31 minutes, 4 seconds Yes. Yes sir. 31:06 31 minutes, 6 seconds Uh yeah. So my first question is your on your extreme facility in Sam ramp up. So just wanted to understand could 31:14 31 minutes, 14 seconds management elaborate on the expected utilization uh ramp up for the siding personality. 31:21 31 minutes, 21 seconds Can you repeat please some some uh I found an understanding on your expected utilization ramp up for the sub ice cream facility. 31:34 31 minutes, 34 seconds Uh yes sir. So uh in the first year we are expecting the utilization to be around 35 to 40%. 31:42 31 minutes, 42 seconds And uh we had mentioned that it'll take us about 6 years or 7 years 6 to 7 years to utilize this facility uh completely 31:51 31 minutes, 51 seconds that is assuming that we are able to grow year on year at upwards of 20 25%. 31:58 31 minutes, 58 seconds Yeah. So as management has guided 500 per ice cream revenue by FY30. So which implies a sharp scale up. What so what 32:06 32 minutes, 6 seconds gives you confidence in achieving this target given the highly competitive nature of this category? 32:13 32 minutes, 13 seconds No, see the uh okay see the category is see there are many things here right to uh the way to look at it 32:22 32 minutes, 22 seconds uh the first first and foremost is that this is a very very fragmented category but uh uh it requires an ice cream 32:31 32 minutes, 31 seconds freezer to sell the ice cream which means uh if you place an ice cream freezer only you are selling you must be 32:38 32 minutes, 38 seconds seeing it in your own uh residential area where you I don't know where you stay but wherever you stay there will be only one brand 32:46 32 minutes, 46 seconds available and that brand sells and ice cream is an impulse product and if you are in a shop and the product that you 32:53 32 minutes, 53 seconds get is X or a brand that you get is X then X is what you consume you're not going to walk half a kilometer to buy the brand another brand right so that is 33:02 33 minutes, 2 seconds one so we have our strength and in those areas of strength or regions of strength 33:08 33 minutes, 8 seconds we are adding more uh freezers and That is what is driving our growth. And if you have seen our ice cream business in the last four or five years, it is 33:17 33 minutes, 17 seconds nearly quarterable. That's the reason why we have added stability, right? 33:22 33 minutes, 22 seconds Otherwise, we wouldn't have added. We are continuing to see that momentum in the market, right? Second thing that we also need to remember is that very 33:30 33 minutes, 30 seconds recently we uh acquired majority stake in peanut butter and jelly uh limited. 33:36 33 minutes, 36 seconds Uh it is uh it is one of the fastest growing uh new age ice cream brand uh 33:44 33 minutes, 44 seconds and and you know it's available all over India. Uh they sell high protein zero sugar ice creams. They're doing exceedingly well. We we are 33:53 33 minutes, 53 seconds co-manufacturing for that as well. So that that is also being made in our factory. That's also helping us uh uh utilize the uh plant better. 34:06 34 minutes, 6 seconds Okay. Okay. Fair enough. And the second question is around your feable tense that has increased significantly during 34:13 34 minutes, 13 seconds FY26. So, uh could you please state the key reason behind this? Is this increase being linked to higher dependence on 34:20 34 minutes, 20 seconds modern trade and commerce channels where collection cycles are structurally longer? 34:28 34 minutes, 28 seconds Okay. 34:31 34 minutes, 31 seconds Can you please repeat that? Are you asking about payables or receivables? Payable. receivable. 34:40 34 minutes, 40 seconds Can I repeat my question again? 34:44 34 minutes, 44 seconds The receivables uh were higher. Yeah, you're right. CFO will get the exact number you have. 34:52 34 minutes, 52 seconds Please uh receivables uh previous year it was actually uh uh 37.52 35:00 35 minutes crores. Now it has gone up to actually 64.81 81 cores mainly in MRF actually it has gone up by 35:08 35 minutes, 8 seconds 26 cores maybe two subsequently they have cleared the actually and after 31st March actually 35:16 35 minutes, 16 seconds in the first week of actually the month of April uh it has come down uh but in the 30th 35:25 35 minutes, 25 seconds April it came down to uh 51 crores 51.67 67 so yeah so March to March is a 35:33 35 minutes, 33 seconds transitory number in April that has significantly come down but even if I take 51 crores and compare it with let's say previous financial year closing of 35:41 35 minutes, 41 seconds 35 crores it has gone up and primarily it is because of the reason that you mentioned which is our salience of organized trade is increasing and 35:50 35 minutes, 50 seconds organized trade there is receivables but these are all uh you know large uh listed entities that we are working with 35:58 35 minutes, 58 seconds you know most of the customers right in all the large uh organiz and there is absolutely there is uh we don't see any 36:04 36 minutes, 4 seconds risk and in terms of number of days uh uh these uh dattors is not more than 3 36:11 36 minutes, 11 seconds weeks uh this there's nothing which is uh at risk at this point uh okay and my last question is I just 36:20 36 minutes, 20 seconds want an understanding about that how herit is transforming into a full city company so what One of the biggest 36:29 36 minutes, 29 seconds operational changes underway to support this transition because despite a strong brand positioning a large part of 36:36 36 minutes, 36 seconds revenue still comes from milk liquid milk. So which remains a relatively lower margin category. So over that what 36:44 36 minutes, 44 seconds time frame can the business genuinely start assembling an excessively started margin of? 36:50 36 minutes, 50 seconds This is uh Brahman here. Uh thanks for the question. I think uh we are very much thinking in the line of uh the 36:57 36 minutes, 57 seconds vision that we have for 2030 which is to be the most admired daily nutrition company uh and we're working strongly 37:04 37 minutes, 4 seconds towards that. I think um you know I can't give you exact numbers but Q1 itself is looking very interesting for 37:10 37 minutes, 10 seconds us because um our value added product u uh performance is improving significantly given um good weather uh 37:19 37 minutes, 19 seconds and um given the fact that we're working with channels uh which are also new age in nature. So I think we're working 37:26 37 minutes, 26 seconds positively in that direction. Um and we aim to increase our value added product contribution towards our overall revenue 37:35 37 minutes, 35 seconds by two two and a half% year on year. Um you know going forward couple of years. U we're also happy as 37:42 37 minutes, 42 seconds mentioned earlier to say that some of our nutritious products are growing really fast in the market. We're seeing very good traction in uh paneer uh which 37:52 37 minutes, 52 seconds is very nutritious by itself um north of 30% in terms of growth as of last uh financial year. Um even skus such as 38:01 38 minutes, 1 second high protein paneer are doing well in the market especially through new age channels. We're also happy to share that our yogurts are doing well in the 38:09 38 minutes, 9 seconds market. We did about 100 tons of sales of our hypertroin yogurts uh over Q4 uh 38:15 38 minutes, 15 seconds which is good traction over what it was previously. We're also seeing good traction in probiotic buttermilk um 38:23 38 minutes, 23 seconds which has uh which is sold in 500 ml packs and which is not north of about 25,000 30,000 liters per day in terms of 38:31 38 minutes, 31 seconds sales. So we've uh you know really committed to our u our our vision of being not just growing in value added products and improving value for all 38:40 38 minutes, 40 seconds stakeholders but also growing in nutritious products and differentiating ourselves and another step in that direction has been the partnership for 38:48 38 minutes, 48 seconds the acquisition of um uh majority shareholding in peanut butter and jelly or getaway ice creams. Um on the other 38:56 38 minutes, 56 seconds hand we are also very committed to our purpose uh which is doubling farmers incomes uh every couple of years and I believe that this is a strong uh 39:04 39 minutes, 4 seconds relationship that we have with farmers that's uh you know helping us secure our procurement going forward as well as share uh more and more of the benefit with them across our geographies. 39:17 39 minutes, 17 seconds Okay that's great and thank you for answering my all questions and good luck for your upcoming quarter. 39:24 39 minutes, 24 seconds Thank you. We'll take our next question from the line of Shazad Shra from Dmeter Advisor. Please go ahead. 39:32 39 minutes, 32 seconds Yeah, thank you for the opportunity. Uh couple of questions. One is uh when I look at the milk wipi 39:40 39 minutes, 40 seconds chart, u milk WPI is up from 186 to 192 uh over the last year, which is like a 3 39:47 39 minutes, 47 seconds three and a half% increase. This is our procurement prices have gone up by 8%. I want to understand why is the difference there. 39:58 39 minutes, 58 seconds Could you please uh repeat the question please once more the s l part of the question or maybe the entire question? 40:06 40 minutes, 6 seconds Yeah yeah I was saying the milit WTI is up from 186 to 192 which is a 3 to 3 and 40:12 40 minutes, 12 seconds a half% increase year on year. Uh but our procurement prices have gone up by 8%. So want to understand why is the difference there. 40:24 40 minutes, 24 seconds See uh you know there is a you know the WBI is something that we have uh uh put 40:30 40 minutes, 30 seconds on the charts as uh as reported from a particular source. Uh it may not be the 40:37 40 minutes, 37 seconds exact uh number that is happening uh uh uh you know in the market actually you 40:43 40 minutes, 43 seconds know it it's a country with uh various representations. we'll have to look at exactly the weighted average for the 40:50 40 minutes, 50 seconds regions where we are operating. Number one and number two the uh the wholesale price index is one way to look at it but 40:58 40 minutes, 58 seconds uh another way to look at it is actually the commodities and commodity prices. So you know if you look at whether it is S&P or uh butter and all of that the 41:08 41 minutes, 8 seconds inflation which you can look at NCD NCDFI uh traded values you will see that the inflation is roughly in the range of 41:16 41 minutes, 16 seconds 8%age uh the raml prices for us is a reality and that's uh that's something that is not just reported by heritage 41:24 41 minutes, 24 seconds but also by uh media in general you can uh look at uh daily news sources uh which uh will give you a better 41:33 41 minutes, 33 seconds perspective but you can't compare a national average with the regions where we are operating. 41:41 41 minutes, 41 seconds Got it. That's helpful. U and my second question was can we say that margins have bottomed out in this quarter 41:48 41 minutes, 48 seconds because um you're seeing better supplies for cow milk that you've stated earlier. 41:54 41 minutes, 54 seconds uh you should see a ramp up online screen which is a higher margin business and um you you've taken price and 42:01 42 minutes, 1 second planning to take more price as well. You say margins have bottomed out. 42:08 42 minutes, 8 seconds Yeah. Uh this is uh Ramy. Um so I think um uh when it comes to so margins are a function of two things right increase in 42:16 42 minutes, 16 seconds growth especially in value added products uh for our industry as well as procurement prices. When it comes to the former, we're seeing very good traction 42:24 42 minutes, 24 seconds uh already in this quarter this summer unlike the previous summer where it was a wash out and there were uh insistent rains. Uh it's hot across our core 42:33 42 minutes, 33 seconds markets and we're seeing really good traction in terms of volumes when it comes to uh value added products across 42:40 42 minutes, 40 seconds the board. It could be um curd, it could be buttermilk, it could be some other uh uh drinkables and not just that even in 42:49 42 minutes, 49 seconds um other products uh which are value added in nature. So t typically speaking uh volume should uh you know improve 42:56 42 minutes, 56 seconds during this point in time uh given a good peak season but uh we are you know just at the beginning of the season. So 43:04 43 minutes, 4 seconds we need to wait and watch how things pan out both on the you know external condition side and on the procurement uh uh uh side. 43:16 43 minutes, 16 seconds Okay, got it. Thank you and all the best. 43:20 43 minutes, 20 seconds Thank you. We'll take a next question from the line of Queso Ger from Counter Cyclical PMS. Please go ahead. 43:28 43 minutes, 28 seconds So firstly wanted to understand about the balance sheet. We can see some goodwill other intangible asset intangible asset and development which 43:36 43 minutes, 36 seconds were not there last year. So if you could just tell us that what are these regarding? 43:43 43 minutes, 43 seconds Uh good morning sir. Actually this is uh Praakar CFO. 43:49 43 minutes, 49 seconds Uh okay in the month of actually January uh we have invested in uh PET uh uh PBJL 43:58 43 minutes, 58 seconds uh company uh uh so in that regard actually there is a purchase price allocation whatever the price that you 44:05 44 minutes, 5 seconds have paid actually 9 cr then there is an agreement between the these two parties to acquire actually additional 20%. 44:14 44 minutes, 14 seconds uh uh so that is a potential equation both together uh in the first or second quarter it is going to be around 71% of 44:23 44 minutes, 23 seconds the equation in this regard actually there is actually uh whatever the uh the 44:32 44 minutes, 32 seconds assets uh for purchase price allocation uh the we have engaged a consultant uh 44:38 44 minutes, 38 seconds uh to the value the business so there is actually then tangible ible assets are 1.2 2 crores and intangible assets. Uh I 44:47 44 minutes, 47 seconds will tell you the broader numbers actually. Uh one minute 44:54 44 minutes, 54 seconds it's okay to worry about. So it's goodwill is a result of that. Yeah. Yeah. 45:00 45 minutes Understood sir. Now uh what? 45:05 45 minutes, 5 seconds Yeah. Sir my second question was that uh when do you foresee our value added pro uh products contribution exceeding 50% 45:15 45 minutes, 15 seconds of our revenue and let's say for the next 3 to 5 years what kind of uh volume CAGR we are looking at what is the 45:24 45 minutes, 24 seconds aspiration for the AITA margin uh at what level in a normal year not very good not very bad what is the steady 45:32 45 minutes, 32 seconds state kind of aa margin that you have in mind And how will that for every let's say 5 percentage points increase in 45:41 45 minutes, 41 seconds value added product contribution to our revenue mix how much does our operating margin moves up everything else 45:49 45 minutes, 49 seconds remaining the same uh and s lastly sir is there any advantage of or disadvantage of being in let's say 45:57 45 minutes, 57 seconds Punjab which is not contiguous to our south Indian geography where we are in uh all the adjoining states 46:05 46 minutes, 5 seconds And since the revenue is very marginal, is there any uh gain in exiting those 46:12 46 minutes, 12 seconds operations or uh is the aspiration to become a pan-Indian player? 46:19 46 minutes, 19 seconds Yeah. Okay. Thank you sir. You have asked a lot of questions. So I'll I hope I remember and answer you answer all the questions. So first is uh with respect 46:28 46 minutes, 28 seconds to value added products. I think our executive director already mentioned this in her uh comment earlier that uh we are looking at expanding value added 46:37 46 minutes, 37 seconds products with between two to two and a half percentage every year. 2%age is what we have delivered in the last uh uh 46:44 46 minutes, 44 seconds four years and last year actually in fact in FI26 we have expanded our value added product contribution by about 3.3%. 46:52 46 minutes, 52 seconds Right? So that's that's an exceptionally good year as far as value added products is concerned. But I think on an average you can take about 2 and a half%. So if 47:00 47 minutes I take value added products inclusive of uh ghee which currently stands at around 47:06 47 minutes, 6 seconds uh 40% roughly uh it it will take another four four years or so for us to 47:13 47 minutes, 13 seconds reach about 50%. Right? Uh maybe maximum five years but I think we should be able to get there in four years time. This is 47:21 47 minutes, 21 seconds first question. Second is with respect to eida what you mentioned. So if you recall last year our eida was about 8%. 47:29 47 minutes, 29 seconds And this year it's about 5.9%. So we had roughly 2% 2.1%age shrinkage of aida. 47:36 47 minutes, 36 seconds Right now we know that in the milk uh business there is a cyclicality of plus 47:43 47 minutes, 43 seconds or minus 2%. We have seen this actually you're all analysts you can do the analysis yourself. If you take long-term 47:50 47 minutes, 50 seconds last two decades, you will see that it goes up plus 2% minus 2%. This cyclicality is something which is very difficult to get away from this 47:58 47 minutes, 58 seconds business. Now la our median EIDA is roughly around 7%. So in a good year we go to about eight or nine percentage 48:05 48 minutes, 5 seconds AIDA and a bad year we are going down to about 5%age AIDA. Now what is to be 48:12 48 minutes, 12 seconds noted here is that we have the uh the fundamentals of the business have improved which is the reason why I know 48:19 48 minutes, 19 seconds that this is not uh a result which uh you all would have expected or actually will agree to but actually if the 48:26 48 minutes, 26 seconds business fundamentals had not improved with this much of inflation uh we wouldn't have been able to deliver 5.9%age of it. So actually we have 48:35 48 minutes, 35 seconds improved. So the way I look at it, it's about 90 uh basis points better than our usual delivery actually. So which means 48:43 48 minutes, 43 seconds at this point in time if I look at a positive swing this can go to about 9.8%age also right. But the the key 48:51 48 minutes, 51 seconds point that we are looking at is that the median EIDA that we have which is a normal year of 7%age every year we are trying to improve it. So I can say that 49:00 49 minutes in the last couple of years we might have moved it close to about 100 pips uh which is so now our median is probably around 8%. We are trying to push our 49:08 49 minutes, 8 seconds median upwards. Our objective is to take the median towards a high single digit which is about 9%. So that in a bad year 49:15 49 minutes, 15 seconds like this our evida will be around 6 and a half 7% and in a good year we'll even cross 10 or 11 percentage. That is our 49:22 49 minutes, 22 seconds effort right and you will see this happening significantly year on year. uh you will see this happening uh primarily 49:30 49 minutes, 30 seconds through due to two levers. Lever number one is value added product contribution increasing and lever number two is operating leverage. Now operating 49:39 49 minutes, 39 seconds leverage is not just with our factories capacity utilization going up but it is also improving performances in weaker 49:48 49 minutes, 48 seconds regions like Maharashtra and north of India. Now I'll come to the last question that you asked which is why are we present in Punjab? See our presence 49:57 49 minutes, 57 seconds in Punjab is limited to Chandigar Tri City right and Chandigar Tri City is a good market for us. We are selling our 50:04 50 minutes, 4 seconds business products there. See our strategy is not to spread thin. Wherever we are present we go deep. Uh so in 50:13 50 minutes, 13 seconds Hiana for example we are there in Hisar but we are not there in Rotak. So if you go there actually you see you will not 50:21 50 minutes, 21 seconds find the heritage in Rotak but you will find us in Hisar. We are there in Ambala but we are not in Kuruketra. So there 50:28 50 minutes, 28 seconds are cities where we are present but wherever we are present we are present very very strongly. Uh we are either number two or number three player. So there is salience in the business. 50:37 50 minutes, 37 seconds That's the reason why we are there and we are building our strength over a period in time. I hope I have been able to answer. 50:43 50 minutes, 43 seconds Sure sir sir. So is the aspiration to become a panindian player or a strong regional player? At this point in time, 50:50 50 minutes, 50 seconds we are going deeper and deeper and deeper in the regions where we are present. We are taking very strong positions in certain value added product 50:58 50 minutes, 58 seconds categories. For example, we are already uh nationally uh top five players in curd uh 51:06 51 minutes, 6 seconds buttermilk, paneer, uh yogurts, ice cream. Uh these are all 51:14 51 minutes, 14 seconds products where we are betting and uh we are building our strength. Ghee also now we have become nationally top 10 player 51:22 51 minutes, 22 seconds uh as is our milk milk also we are among the national top 10 player so there are products bets that we have taken and in these bets we want to get strong 51:31 51 minutes, 31 seconds similarly in the regions or locations where we are we want to become extremely strong and and that's the that's the way we work we do not believe in spreading 51:40 51 minutes, 40 seconds thin so even in Maharashtra you won't find us in Nagpur but we are there in Tan but in Tan you will find us more and more So there are regions where we go 51:49 51 minutes, 49 seconds deep sir and I request you to join back the queue please participants waiting for me. Thank you ladies and gentlemen. We 51:58 51 minutes, 58 seconds request you to restrict to two questions at a time please. We'll take our next question from the line of Rajat Satia from PMS. Please go ahead. 52:08 52 minutes, 8 seconds Hi, thanks for the opportunity. There are two questions. One is uh what is the reason for lower fat sales in this year? 52:15 52 minutes, 15 seconds And secondly uh on the milk volumes you said volumes are coming in and uh if you can comment on the pricing uh raw 52:24 52 minutes, 24 seconds material milk pricing if you can talk about it that would be great as well. Thanks. 52:29 52 minutes, 29 seconds So uh see the fats actually uh is lower 52:35 52 minutes, 35 seconds because of bulk fat decrease. Uh yeah so once again I'm just kid I'm giving the 52:41 52 minutes, 41 seconds fullear picture right last year uh roughly uh so the bulk fats have declined by about 70% 70%. 52:53 52 minutes, 53 seconds Yeah. So we used to have 125 crores of revenue in bulk fats. This year the bulk fat revenue I think CFO read it out earlier is only 38 crores. 53:02 53 minutes, 2 seconds Mhm. 53:03 53 minutes, 3 seconds Yeah. Whereas our consumer fats revenue is touching close to 300 crores in revenue. It has grown at 48%. Which is 53:11 53 minutes, 11 seconds ghee and salted butter, right? Uh so that's that's actually good news for us. So consumer business has 53:18 53 minutes, 18 seconds grown at 48%. Uh the bulk business or commodity business has declined by 70%. 53:24 53 minutes, 24 seconds Overall if I add both then the fats have declined by 11%. But otherwise it's actually a strong positive performance. 53:31 53 minutes, 31 seconds So one small food drop here. Uh so the reason why bulk fat sales have come down is because of the consu rising consumer 53:39 53 minutes, 39 seconds sales or some other reason as well. So there are two reasons. One is uh actually bulk butter prices were good 53:48 53 minutes, 48 seconds very very high butter prices were very high last year. So if I had surplus butter, I would have actually sold in uh 53:57 53 minutes, 57 seconds uh bulk butter and and would have been even profitable. There could be others who would be doing the same. But uh because we had milk constraint and 54:05 54 minutes, 5 seconds somebody asked this question, did you have enough milk for prior for your sales? So we prioritize consumer business because that is what is 54:14 54 minutes, 14 seconds repeatable. It'll keep happening next year, the year after next and forever it'll come. Right? So we prioritized 54:21 54 minutes, 21 seconds consumer business or branded business and uh because we did that we did not go for the opportunistic sale uh of balpata 54:30 54 minutes, 30 seconds uh where we could have actually booked some sale and booked some profit also. 54:34 54 minutes, 34 seconds We rather focused on uh driving our consumer uh ghee and consumer butter sale. Right. That's that's the reality. 54:44 54 minutes, 44 seconds Got it. 54:46 54 minutes, 46 seconds and milk taxion is lower because uh the profitability has come down as compared 54:53 54 minutes, 53 seconds to the previous year. Another reason is that sorry no the milk prices. 54:59 54 minutes, 59 seconds Oh you know procurement prices what is the scenario right now procurement prices. One second 55:05 55 minutes, 5 seconds procurement prices for the last last year same quarter was 43 rupees 20 p. 55:14 55 minutes, 14 seconds This quarter it is 46 rupees 67 p. And please note the way we report our procurement prices is landed to our 55:23 55 minutes, 23 seconds factory. So the way you should understand is it yeah chilling center. 55:28 55 minutes, 28 seconds The way we you should understand is that it is procurement price given to our farmgate price given to a farmer plus uh 55:37 55 minutes, 37 seconds the uh operator commission which is actually the uh village level collection center expenses plus the invert rate is 55:46 55 minutes, 46 seconds added to it. Right? So uh that stands at 47 rupees 675. So it is a increase of 36 55:54 55 minutes, 54 seconds 46 rupees 67 pes which is an increase of 3 rupees 47 pes or 8%. is for the quarter for the quarter and the for the full 56:02 56 minutes, 2 seconds year it stood at 44 rupees 72 Pes versus previous year full year price of 41 rupe 56:09 56 minutes, 9 seconds 92 pes which is an increase of 2 rupe 80 pes and uh in percentage it is 6 6.7% 56:20 56 minutes, 20 seconds increase and what is the trend in this I request you to join back the queue please as we are participants waiting for their turn thank you next question 56:28 56 minutes, 28 seconds is from the line of Hitendra Pradhan from Maximal Capital. Please go ahead. 56:34 56 minutes, 34 seconds Uh hi sir, I hope I'm uh audible. So yes, please go ahead. 56:38 56 minutes, 38 seconds Yeah, so follow up to you know business person. I just wanted to understand uh uh the procurement prices uh if you can 56:46 56 minutes, 46 seconds explain you know uh what it is uh linked to. I mean what you indicated is uh you know the you know it is uh basically we 56:54 56 minutes, 54 seconds we procure from farmers farmer network and all but it is not directly like you know um linked to the WPI index or you 57:02 57 minutes, 2 seconds know national prices and it is kind of regional. So if you can talk about that because you know in last two years it has increased by 5 rupees whereas our male sale price has increased by 3 57:10 57 minutes, 10 seconds rupees. So just wanted to understand on the procurement side you know what how can what it is what it is they 57:16 57 minutes, 16 seconds benchmarked with see it's a it's a at the end of the day it's a in each village there is a supply 57:26 57 minutes, 26 seconds demand economics plane right it's a simple math if I don't pay that price then the milk uh goes somewhere else so 57:34 57 minutes, 34 seconds you know so uh it's not like you are the only operator there uh in Each region uh 57:41 57 minutes, 41 seconds we have different competition. So like Tamil Nad is one of our largest uh procurement uh regions. There we compete 57:50 57 minutes, 50 seconds with uh large private dairy companies like Hatsson Agro, Elkst etc. as well as uh the cooperative AIN. So in each 57:59 57 minutes, 59 seconds region there is a price that is price discovery happens because of the different prices offered by different uh companies. Same is the case with 58:07 58 minutes, 7 seconds Maharashtra. Uh wherever we are operating there are multiple players. So price discovery happens at the village 58:14 58 minutes, 14 seconds level and uh we have uh uh algorithms which tell us when we are having shrinkage of volumes and all of that and 58:22 58 minutes, 22 seconds then uh to sustain the volume we have to give the price so that the milk keeps flowing right and of course it's a small uh even though it's a very large 58:31 58 minutes, 31 seconds industry it's a small world everybody knows everybody's price it's not a secret. So I know we know the prices of all the players who are operating in our region. 58:41 58 minutes, 41 seconds Got it. So that the price discovery is faster and uh there is like you know competition. Yeah. Yeah. Okay. 58:46 58 minutes, 46 seconds Because the moment anybody increases price the price circular is circulated. 58:50 58 minutes, 50 seconds It comes in WhatsApp. Everybody can see the prices. Got it sir. 58:55 58 minutes, 55 seconds Thank you. I request you to join back the queue please as we are participants waiting for their turn. Participants are requested to restrict to one question at 59:03 59 minutes, 3 seconds a time. Please. Next question is from the line of Kiran from Green Investors. Please go ahead. 59:13 59 minutes, 13 seconds Thanks for the opportunity. And firstly, congratulations for your photo. 59:16 59 minutes, 16 seconds Kiran, can you use your handset mode please? Your audio is not clear? Yeah. Uh, able to hear us? Yes, please go ahead. 59:24 59 minutes, 24 seconds Yeah. Yeah. Firstly, thanks for the opportunity and congratulations on the 4,500 cr revenue mark. So, I just have a couple of questions. one what is the 59:32 59 minutes, 32 seconds share of uh uh conventional GT business is the new trend of uh ecom and quickcom and what is the delta margin between 59:40 59 minutes, 40 seconds these two channels or markets what do you call it yeah so uh general trade contributes 59:47 59 minutes, 47 seconds about 80%age of our revenue and uh modern trade contributes modern trade and e-commerce quickcommerce contribute 59:54 59 minutes, 54 seconds about 20% of the revenue and uh in terms of uh margins uh they're comparable 1:00:01 1 hour, 1 second Um, of course, uh, you know, it's the the right uh number to look at it as product to product, region to region. 1:00:11 1 hour, 11 seconds Uh, because the mix actually uh makes a lot of difference. For example, even as we speak now, uh, uh, fats for us make 1:00:21 1 hour, 21 seconds loss. We make about 6%age loss in fats and uh, the contribution of sale of fats through organized trade is much higher. 1:00:30 1 hour, 30 seconds because of which the weighted average uh uh margins come down or for that matter quick commerce. Quickcommerce a large 1:00:37 1 hour, 37 seconds percentage of sale is still milk uh which milk has got lower profitability compared to value added product. So all 1:00:45 1 hour, 45 seconds these mix being kept aside the margins are comparable. 1:00:51 1 hour, 51 seconds Okay. So you don't much one question please. Thank you. Next question is from the line of Abhishek Matur from systematics. Please go ahead. 1:01:02 1 hour, 1 minute, 2 seconds Yes. Hi sir, thank you for the opportunity. Just one question. What is the trend that you are seeing on the fer costth for the farmers? Uh do you see 1:01:09 1 hour, 1 minute, 9 seconds the fer cost for the farmers inflating or how is the trend you're seeing now? That's it. 1:01:18 1 hour, 1 minute, 18 seconds So if I understand the question that you're asking the farmer uh you know 1:01:26 1 hour, 1 minute, 26 seconds Yeah, the folder cost as on today uh if you uh remember the last time when I shared uh 3 months ago during the summer 1:01:35 1 hour, 1 minute, 35 seconds the folder is getting little weaker the availability gets weaker. The second input which I would like to share with 1:01:44 1 hour, 1 minute, 44 seconds everybody is that we have fortunately a good surplus on the energy crops like 1:01:53 1 hour, 1 minute, 53 seconds corn the mage what we have and we do not have much of exports as in today prices 1:02:00 1 hour, 2 minutes are relatively helpful to us that means the farmer is having energy uh you know 1:02:08 1 hour, 2 minutes, 8 seconds surplus forage but at the same time the difficulty is coming from the protein side the folder which having 1:02:17 1 hour, 2 minutes, 17 seconds a similar availability but the prices are on the higher side. So overall to conclude on your question is for side 1:02:26 1 hour, 2 minutes, 26 seconds plus the feed side we are in a very good situation only the prices are little towards the higher side uh since 1:02:35 1 hour, 2 minutes, 35 seconds November 2025 and continuing until today but we are expecting to have some reduction 1:02:43 1 hour, 2 minutes, 43 seconds possibly in this quarter uh possibly by next month itself. Thank you. 1:02:51 1 hour, 2 minutes, 51 seconds Next question is from the line of Rasham Jen from VVD Asset Managers. Please go ahead. 1:02:59 1 hour, 2 minutes, 59 seconds Yeah. Hi. So uh yeah. Hi. So you mentioned that your paneer sales uh is seeing a very good growth but uh while 1:03:07 1 hour, 3 minutes, 7 seconds manufacturing paneer you get whey as a byproduct. So uh what are you doing with whey and any plans to enter into uh whey 1:03:17 1 hour, 3 minutes, 17 seconds protein or is it too small right now to get into it? 1:03:22 1 hour, 3 minutes, 22 seconds It's something that we are considering at this point in time. We are using our whey for various things including we also have a certain drinkable that we sell in the market such as glucco. 1:03:33 1 hour, 3 minutes, 33 seconds uh this competes with uh the even though it's very very small at this point in time but we are uh we are doing some 1:03:40 1 hour, 3 minutes, 40 seconds products but of course yeah uh let's say uh pay powder and all are things that we are uh looking at at this point in time 1:03:48 1 hour, 3 minutes, 48 seconds it's it's it's a see we need to look at uh see the way our uh capex I think a gentleman asked in the beginning about 1:03:56 1 hour, 3 minutes, 56 seconds our capex philosophy our capex philosophy we we take balanced and measured risks and uh so We balance our 1:04:04 1 hour, 4 minutes, 4 seconds capex with uh projects which have got short gestation such as kurd paneer etc. very 1:04:11 1 hour, 4 minutes, 11 seconds short gestation because the ROC of kurd is very similar to milk right so and it generates quick free cash flow uh and we 1:04:20 1 hour, 4 minutes, 20 seconds match that with long gestation projects such as ice cream etc. So, so there is a you know we we look at so there is a 1:04:28 1 hour, 4 minutes, 28 seconds plan that we have in the long range uh and you will see these things coming up. Timing is what we'll upload. 1:04:36 1 hour, 4 minutes, 36 seconds Thank you ladies and gentlemen. Due to time constraints that was the last question for today. I now hand the conference over to Dr. Ralph for closing comments. Over to you sir. 1:04:49 1 hour, 4 minutes, 49 seconds Thank you all for uh your continued interest in heritage foods and looking forward to interact with you in the 1:04:56 1 hour, 4 minutes, 56 seconds course of coming months. Thank you. Good day. Thank you. 1:05:01 1 hour, 5 minutes, 1 second On behalf of Heritage Foods Limited, that concludes this conference. Thank you for joining us and now disconnect your line.