HMA Agro Industries Ltd — Q3 FY26

HMA Agro Industries Ltd Q3 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=rsDXsN4TcoI Published: 3 months ago

0:00 Your conference is being recorded. 0:04 4 seconds Good afternoon ladies and gentlemen. I'm Akash, moderator for the conference call. Welcome to HMA Agro Food Limited's Q3 9month FI26 earnings conference call. 0:16 16 seconds As a reminder, all participants will be in listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should 0:24 24 seconds you need assistance during the conference call, please signal an operator by pressing star and then signal on a touchstone telephone. Please 0:31 31 seconds note this conference is recorded. I would now like to hand over the floor to Nicholrani. Thank you and over to you sir. 0:40 40 seconds Thank you sir. Good afternoon ladies and gentlemen. I Nichl Sanjani comm secretary and compliance officer of 0:47 47 seconds China industries. It gives me immense pleasure to welcome all our respective shareholders, investors, analysts and 0:55 55 seconds stakeholders to today's earning conference call for the quarter and 19th century 31st of December 2025. 1:02 1 minute, 2 seconds At the outset, I would like to sincerely thank all of you for your continued trust and confidence in the company. 1:09 1 minute, 9 seconds Your consistent support encourages us to maintain transparency of all governance standards and deliver sustainable growth. 1:17 1 minute, 17 seconds Before we proceed further, I would like to state that certain statements made during this call may be forward-looking in nature. These statements are based on 1:26 1 minute, 26 seconds current expectations and assessments and are subject to risk and uncertaintities that could cause actual results to 1:34 1 minute, 34 seconds referend materially. Participants are requested to refer to our filings with the stock exchanges for detailed disclosures. 1:41 1 minute, 41 seconds Joining with me today is Mr. Roman Koshik, senior associate finance. Our chief CFO Mr. Doab is currently 1:49 1 minute, 49 seconds traveling outside India on official commitments and therefore is unavail unable to attend this call. In his 1:56 1 minute, 56 seconds absence Mr. Raman Koshik and I will be presenting the financial performance and operational highlights for the period and the review. 2:03 2 minutes, 3 seconds The third quarter and 9 months for the current financial year have been marked by strong financial momentum, operational discipline and strategic expansion. 2:13 2 minutes, 13 seconds Coming on to standalone financial performance for the quarter ended 31st of December 2025 the company reported revenue from operations of rups 2:21 2 minutes, 21 seconds 19,927.73 million as compared to 13,647.668 2:29 2 minutes, 29 seconds million in the corresponding quarter of the previous financial year thereby registering a strong yearon-year growth of approximately 46%. 2:38 2 minutes, 38 seconds This substantial growth reflects improved realization, strong export demand, enhanced operation efficiencies and better facility utilization across our facilities. 2:49 2 minutes, 49 seconds In terms of profitability, the standalone profit tax for the quarter store at 719.03 2:56 2 minutes, 56 seconds million as compared to 445.31 million in the corresponding quarter of the previous year registering an increase in of approximately 61.3%. 3:07 3 minutes, 7 seconds It is noteworthy that the growth in PBT has been significantly higher than the growth in revenue which clearly demonstrates improved margin cost of 3:16 3 minutes, 16 seconds control measures and operational leverage. The company has not only expanded its top line but also has strengthened its bottom line reflecting 3:24 3 minutes, 24 seconds a balanced and disciplined growth approach. 3:28 3 minutes, 28 seconds Now coming on to the standalone performance of the 9 months basis for the 9 months ended 31st September 2025 3:36 3 minutes, 36 seconds the standalone revenue from operations stood at 5234.33 million as compared to 34,253.23 3:46 3 minutes, 46 seconds million in the previous corresponding quarter reflecting a significant growth of approximately 52.7%. 3:54 3 minutes, 54 seconds This consistent growth over the three quarters has highlights sustained demand across our markets and the strength of our export method. 4:03 4 minutes, 3 seconds The standalone profit reports for 9 months stood at 1459.39 million compared to 859.75 4:12 4 minutes, 12 seconds million in the corresponding period of the previous year reflecting a strong increase of approximately 69.7%. 4:20 4 minutes, 20 seconds The higher growth in profitability indicates efficient cost management, improved realization per unit, disciplined working capital management 4:27 4 minutes, 27 seconds and overall financial prudence. The standalone performance clearly demonstrates that the company is achieving scale while simultaneously improving profitability margins. 4:40 4 minutes, 40 seconds Coming to consolidated performance for the quarter end 31st December 2025 which includes the performance of section 3 the company reported consolidated 4:49 4 minutes, 49 seconds revenue of 20594.48 million as compared to 14,5149.83 4:56 4 minutes, 56 seconds million of the previous year reflecting a growth of approximately 39%. This growth 5:03 5 minutes, 3 seconds indicates strong group level performance and improved contribution from subsidiary. 5:09 5 minutes, 9 seconds On the profitability front, the consolidated PBP stood at 878.46 million as compared to 412.67 million in the 5:17 5 minutes, 17 seconds corresponding quarter of the previous year, marking a substantial increase in approximately 112.9%. 5:24 5 minutes, 24 seconds The more than double increase in consolidated PBD highlights improved operational efficiency, better margin management and stronger subsidiary 5:32 5 minutes, 32 seconds performance. This significant bottom line expansion reflects the effectiveness of our overall business strategy. 5:40 5 minutes, 40 seconds for the 9 months ended uh 31st of December 2025 consolidated revenue stood at 53,373.97 5:49 5 minutes, 49 seconds million as compared to 36,334.58 million in the previous corresponding period registering a growth of approximately 46.9%. 5:59 5 minutes, 59 seconds The consistent revenue expansion at the consolidated level demonstrates the stability and strength of the group operations. 6:08 6 minutes, 8 seconds Consolidated profit before tax for 9 months period stood at 2,62.85 million compared to 147.72 million in 6:16 6 minutes, 16 seconds the corresponding period of the previous year reflecting a remarkable growth of approximately 96.9%. 6:23 6 minutes, 23 seconds The nearing the near doubling of consolidated profitability indicates strong cost efficiency, improved scale 6:30 6 minutes, 30 seconds and effective financial management across the group. The performance reinforces the company's focus on strengthening the bottom line alongside revenue. 6:41 6 minutes, 41 seconds Thank you. Now I hand over the call to Mr. Raman Koshik for giving brief on data performance analysis. 6:52 6 minutes, 52 seconds It should be discussed the company of 873.21 billion compared 7:04 7 minutes, 4 seconds to 31.37 billion in the corresponding quarter of the previous 7:10 7 minutes, 10 seconds approximately 54.8% year. This significant growth inhibit reflects improved range operating 7:18 7 minutes, 18 seconds efficiency, better cost absorption due to high volumes and improve utilization and export markets. This increase also 7:26 7 minutes, 26 seconds demonstrates that the company's operating leverage is strengthening and revenue scale up. The improvement at the 7:33 7 minutes, 33 seconds acid level is particularly engaging as it as it indicates that core operational profitability is expanding in line with 7:42 7 minutes, 42 seconds the stling expectations in the 9 months and year 31% 2025 the alone still at 17 7:52 7 minutes, 52 seconds uh 25.69 billion as compared to 1030.49 49 million in the corresponding period 7:59 7 minutes, 59 seconds of the previous year reflecting an increase of approximately 67.5%. 8:05 8 minutes, 5 seconds This robust growth over the 9 million period arise sustained operational momentum and discipline cost management. 8:13 8 minutes, 13 seconds The growth in a house facing revenue growth during the period indicates improved efficiency in its better 8:20 8 minutes, 20 seconds product needs and effective execution of operational strategies. They were very positive indicator of the company's core business strength and operational endurance. 8:32 8 minutes, 32 seconds Coming to the consolidated data performance for the quarter ended 30th December 2025, the company reported the 8:39 8 minutes, 39 seconds data of 1051.29 million as compared to 579.07 million in the substantive quarter of 8:46 8 minutes, 46 seconds the previous year suggesting a substantial increase of approximately 81.3%. 8:52 8 minutes, 52 seconds A strong rise in consolidated returns to improve performance, betteration 8:59 8 minutes, 59 seconds efficiencies and overall growth of group level operational 9:05 9 minutes, 5 seconds profitability. This shall be instruction 9:21 9 minutes, 21 seconds as compared to 1454.76 million in the previous corresponding period reflecting a growth of approximately 74.1%. 9:32 9 minutes, 32 seconds This remarkable increase highlights the company's ability to scale operations efficiency while maintaining a strong 9:39 9 minutes, 39 seconds cost discipline. This consistent improvement in AITA across both standalone and consolidated levels reinforces the strength of our core 9:48 9 minutes, 48 seconds business model and the effectiveness of our growth strategy. Now I hand over the call to Mr. Nikl for further 10:07 10 minutes, 7 seconds Thank you Mr. 10:08 10 minutes, 8 seconds Uh the financial performance for the quarter and 9 months reflects that the company has reached the new operational and financial heights. However, we view 10:16 10 minutes, 16 seconds this progress as a part of a long-term growth journey. The company continues to focus on diversification initiatives to 10:23 10 minutes, 23 seconds broaden its product portfolio and strengthen the revenue streams by expanding into new geographical markets. 10:30 10 minutes, 30 seconds We aim to enhance our global footprint, build a stronger order book and reduce geographical concentration risk. Year 10:38 10 minutes, 38 seconds after year, we have consistently increased our turnover which helps in maintaining a strong and sustainable market based across multiple regions. 10:48 10 minutes, 48 seconds Our strategy remains centered on balanced growth, scaling revenue while improving margins and strengthening profitability. Operational efficiency, 10:56 10 minutes, 56 seconds discipline capital allocation, cost optimization and strong compliance standards will continue to guide our growth agency. 11:05 11 minutes, 5 seconds We remain confident about the demand outlook and are committed to certain certain long-term value for all stakeholders. 11:18 11 minutes, 18 seconds With this we will now open the floor for questions. For queries relating to business operations or business segments investors may write to us at csfro.com. 11:28 11 minutes, 28 seconds For queries relating to financial performance we will be happy to address them one by one during the session. 11:34 11 minutes, 34 seconds Thank you once again for your continuous support and confidence in HMI Agro Industries Limited. We truly appreciate your participation today. Thank you. 11:44 11 minutes, 44 seconds Thank you sir. Ladies and gentlemen, we will now begin the question and answer session. If you have a question, please press star and one on a telephone keypad 11:53 11 minutes, 53 seconds and wait for your turn to ask the question. If you would like to withdraw your request, you may do so by pressing star and one again. In the interest of 12:00 12 minutes time, we request the participants to restrict to two questions in initial round and get back to the queue for more questions. 12:08 12 minutes, 8 seconds Ladies and gentlemen, if you have any questions, please press star and one on the telephone keypad. 12:16 12 minutes, 16 seconds Repeat if you have any questions please press star N1 on the telephone keypad. 12:21 12 minutes, 21 seconds The first question comes from Mr. Abin Benji from Alanas. Please go ahead sir. 12:28 12 minutes, 28 seconds Uh good afternoon sir. I just have one question. Uh I see that for the quarter ended September 30th your other expenses 12:38 12 minutes, 38 seconds stand at 834 million which has gone up to 2,217 million in quarter ending December 31st 2025. 12:49 12 minutes, 49 seconds I wanted to understand that how come there has been like a three times increase in expenses. 13:01 13 minutes, 1 second Thank you. Uh please pardon sir can please repeat. 13:07 13 minutes, 7 seconds Yes sir. So what I my question is that for the quarter ended September 30 2025 13:14 13 minutes, 14 seconds the other expenses stand at 834 million rupees whereas for quarter ended December 31st 13:23 13 minutes, 23 seconds 2025 the other expenses stand at 2,217 million Indian rupees. I wanted to 13:32 13 minutes, 32 seconds understand the reason why it has increased nearly threefold on a quarterto quarter basis. What are the drivers? 13:43 13 minutes, 43 seconds So the main reason for this is the freight cost. If we compare like we have compared the same figures from uh 13:50 13 minutes, 50 seconds quarter 2 to quarter 3. But if we compare to quarter 3 for two of 2526 and quarter 3rd of 2425 the percentage 13:59 13 minutes, 59 seconds remain same that is 10 10.03% for 2425 and uh 10.76% for 2526 but if 14:09 14 minutes, 9 seconds if you compare it with the last quarter of the same year and to this current quarter quarter 3 the increase in freight cost has was one of the main reason for this. 14:20 14 minutes, 20 seconds You're saying freight cost right sir? Yes sir. Yes sir. 14:25 14 minutes, 25 seconds What happened in quarter two freight costs? Why? How the I mean what is the driver for freight cost? 14:33 14 minutes, 33 seconds It's increase the main reason for this like uh uh we use refrigerated containers and refrigerated containers 14:41 14 minutes, 41 seconds are in short quantity. It quickly depends on uh demand and supply. As and when the demands increases, the freight 14:48 14 minutes, 48 seconds cost increases and the container cost also increases. 14:52 14 minutes, 52 seconds As and when demand decreases, the same uh amount being decreases by the uh like uh shipping lines. So that's one of the 15:00 15 minutes reason uh which has contributed to like uh the increase in other cost. 15:08 15 minutes, 8 seconds Okay sir. Thank you. 15:12 15 minutes, 12 seconds Thank you sir. Ladies and gentlemen, if you have any questions, please star1 on a telephone keypad. Next question comes from the line of Mr. 15:20 15 minutes, 20 seconds Kapil Arwani from Earth Growth Fund. Please go ahead. 15:26 15 minutes, 26 seconds I sir uh can you please bifocate the capacity utilization figures in Q2 and 15:34 15 minutes, 34 seconds can you botate the capacity utilization in quarter 2 versus quarter 3 capacity utilization right 15:43 15 minutes, 43 seconds uh uh sir actually this question is related to uh Mr. Z and currently is not available. So if you can drive we can uh like give you a brief reply on that. 15:56 15 minutes, 56 seconds Sure no issues. Uh my second question is on export. Uh can you provide a breakdown of revenue contribution from your top five markets? 16:08 16 minutes, 8 seconds uh top five market international markets that is uh Vietnam, Egypt, Malaysia, 16:16 16 minutes, 16 seconds Indonesia is one of them and Iraq. 16:22 16 minutes, 22 seconds Can you provide a bifurcation in terms of as a percentage of revenue? 16:27 16 minutes, 27 seconds So for that you need to write us so that we can give you the detail at what percentage comes from which country. 16:35 16 minutes, 35 seconds Okay. Yeah, sure. No issues. Uh so my next question is on uh livestock. So how 16:41 16 minutes, 41 seconds have raw material cost for uh you want that uh is there any rise or 16:50 16 minutes, 50 seconds is there any fall in the raw material cost am I correct? 16:53 16 minutes, 53 seconds Yeah. What is the trend in availability for buffalo and other products and are you seeing any supply constraints? 16:59 16 minutes, 59 seconds No no we are not facing any kind of supply constraint. No, no, not any kind of supply constraints. Even the raw material prices aren't stable. There's 17:08 17 minutes, 8 seconds no such kind of variation in the raw material prices. Because of this, uh only we have we have achieved uh this 17:15 17 minutes, 15 seconds much of good profit. If you compare it with the previous year, the same quarter, the raw material cost in the 17:23 17 minutes, 23 seconds previous year, in the same quarter, quarter 3 was 85.41%. And for this year, it's 84.03. 17:30 17 minutes, 30 seconds So it's a slight difference of 1.38%. In fact, we we should say a slight decrease in the prices of raw material. 17:40 17 minutes, 40 seconds Okay, thank you. That's all for my executives. Thank you. 17:47 17 minutes, 47 seconds Ladies and gentlemen, if you have any questions, please press star and one on the telephone keypad. 17:56 17 minutes, 56 seconds Ladies and gentlemen, if you have any questions, please press star and one on the telephone keypad. 18:08 18 minutes, 8 seconds I don't see any any further questions. 18:10 18 minutes, 10 seconds Now I hand over the floor to the management for the closing comments. 18:31 18 minutes, 31 seconds Mr. Please go ahead with the closing comments sir. 18:36 18 minutes, 36 seconds Yes sir. You can wait for 3 to four minutes. We will be giving the closing comments. 18:43 18 minutes, 43 seconds And we have followup question from Mr. Capil Armani from Earth Growth Fund. Please go ahead. 18:54 18 minutes, 54 seconds Yes sir. Sir sir is there any update on the retail market that we were entering? 18:59 18 minutes, 59 seconds I think we talked about it in the last call. You mentioned that we are testing retail products for Indian market. Is there any progress that has been made? 19:10 19 minutes, 10 seconds So it's in process. Okay. 19:18 19 minutes, 18 seconds And what is the current status of the double chicken processing plant? When do you expect the commercial operations to begin? 19:25 19 minutes, 25 seconds Uh most probably by uh end of this year it will be complete end of end of FI. 19:32 19 minutes, 32 seconds Yes sir. Yes sir. 19:34 19 minutes, 34 seconds Okay. So uh what type of uh contribution you are expecting to add in the top line by FI27? 19:40 19 minutes, 40 seconds Uh actually it's a a different product mix from there we are planning to like uh production of quality form the hands 19:49 19 minutes, 49 seconds and chickens. So it's a product mix and uh we see like uh it's a good market for quality forms products 19:57 19 minutes, 57 seconds not that sorry please go ahead. Uh I knew you were asking something. 20:05 20 minutes, 5 seconds Yeah, I was seeing if you can give a ball figure for the contribution in the revenue. See as of now it would be like too early to uh comment on this. 20:17 20 minutes, 17 seconds Okay. Yeah. No, no issues. That's all for my Thank you. Thank you. Thank you. Thank you, sir. 20:26 20 minutes, 26 seconds Ladies and gentlemen, if you have any questions, please press star and one on your telephone keypad. 20:35 20 minutes, 35 seconds Repeat. If you have any questions, please press star and one on the telephone keypad. 21:06 21 minutes, 6 seconds No further questions, sir. Now I hand over the floor to the management team for closing comments. 21:18 21 minutes, 18 seconds Yeah. Thank you everyone for joining us today and for continued trust and support. We appreciate your thoughtful questions and ongoing engagement. If you 21:27 21 minutes, 27 seconds have any further questions, please reach out to us at cfsagro.com. 21:32 21 minutes, 32 seconds Thank you once again. We look forward to connecting with you in the next quarter. Thank you. 21:37 21 minutes, 37 seconds Thank you, sir. Ladies and gentlemen, ladies and gentlemen, this concludes your conference for today. Thank you for your participation. 21:47 21 minutes, 47 seconds Thank for using Dabas conference call services. You may disconnect your line stop.