LT Foods Limited — Q4 FY26

LT Foods Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=wMBqHxjTJPE Published: 1d ago

0:00 Ladies and gentlemen, good day and welcome to the LT Foods Q4 FI26 earnings conference call. As a reminder, all 0:08 8 seconds participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. 0:15 15 seconds Should you need assistance during this conference call, please signal an operator by pressing star then zero on your Touchstone phone. Please note that this call is being recorded. 0:27 27 seconds I now hand the conference call over to Mr. Meet Jen from Motila Losol Financial Services. Thank you and over to you. 0:35 35 seconds Thank you Steve. Uh um good afternoon. 0:38 38 seconds Thank you everyone and a very warm welcome to LP foods 4Q post earnings call hosted by Motel Financial Services 0:46 46 seconds Limited. On the call today we have the management team being represented by Mr. 0:51 51 seconds Ashiar Kumar MD and CEO, Mr. Shashin Gupta CFO Miss Monica Chala Jaga Chief Corporate Development Officer We will 0:59 59 seconds begin this all with three thoughts from the manment team. Thereafter we will open the floor for Q&A session. I would now like to request the mind to share your perspective on the performance of 1:07 1 minute, 7 seconds the company this quarter. I thank you and over to you man. 1:12 1 minute, 12 seconds Thank you me for the introduction. Uh so along with other team members we have Mr. Ripesh Shora today also in the call. 1:18 1 minute, 18 seconds He is the CEO for the India and Paris business. So good afternoon everyone and thank you for joining us today. On behalf of the management team, I welcome 1:27 1 minute, 27 seconds all our investors and valued shareholders to discuss the performance of LT Foods Limited for the fourth quarter and full year ended March 31st, 2026. 1:38 1 minute, 38 seconds Please note that any statement made or discussed during the this call which reflects our outlook for the future or which could be construed as a 1:45 1 minute, 45 seconds forwardlooking statement must be reviewed in conjunction with the risk that the company faces. A detailed disclaimer in this regard has been 1:53 1 minute, 53 seconds included in the investor presentation that has been shared on both stock exchanges that is NSE and BSC. The result documents are available on our 2:01 2 minutes, 1 second company's website as well as stock exchanges. A transcript of this call will also be made available on the investor section of the company's 2:08 2 minutes, 8 seconds website. Financial year 26 has been a year of strong execution, resilient growth, and continued transformation into a global branded FMCG company. 2:19 2 minutes, 19 seconds Despite the dynamic external environment, we have delivered solid financial performance while continuing to invest aggressively in the brand innovation and global expansion. 2:29 2 minutes, 29 seconds I'll just cover industry tailwinds and headwinds in the financial year 26. 2:34 2 minutes, 34 seconds Before I drill into our performance in detail, let me briefly touch upon the broader industry context. The global rice and the specialtity food industry 2:42 2 minutes, 42 seconds continues to benefit from structural tailwinds. The Indian SMCG market is expected to go at 11% CGR driven by 2:50 2 minutes, 50 seconds increasing consumption and improving retail penetration. The global basmati and specialtity rice market is witnessing steady growth of 7 to 12% 2:59 2 minutes, 59 seconds across geographies. We see rising premiumization trends along with increasing global demand for the ethnic 3:06 3 minutes, 6 seconds cuisine especially in North America and Europe. We have experienced expansion of South Asian diaspora which is driving s 3:14 3 minutes, 14 seconds sustained international demand. In addition, consumer preferences are evolving towards health and organic product products, convenience-led food 3:22 3 minutes, 22 seconds categories such as ready to heat and ready to cook, traceability, sustainability, and premium branding. 3:29 3 minutes, 29 seconds These macro tailwinds strongly align with LT food's long-term strategy. But there were there were a few headwinds as well such as geopolitical issues, US 3:38 3 minutes, 38 seconds tariffs, increased freight and increased input cost. Now I covered the financial performance of the company. Coming from 3:46 3 minutes, 46 seconds our financial performance, the revenue including other income grew to 11,023 crores which is up by 26% on 3:53 3 minutes, 53 seconds year-on-year basis. Gross profit increased to 3,692 crores. The nominal cost profits around 35.3% 4:02 4 minutes, 2 seconds excluding US tariff and change in the shipment term. Abita rose to 1,236 crores. Profit after tax stood at 625 4:12 4 minutes, 12 seconds crores. It is important to note that the normalized revenue growth was 19% and aa margin moderated to 11.8% excluding US 4:20 4 minutes, 20 seconds tariffs reflecting higher brand investments and strategic spending. We continue to strengthen our financial discipline with our working capital days 4:28 4 minutes, 28 seconds improved to 176 days versus 196 days last year. Net debt remains controlled 4:35 4 minutes, 35 seconds with net debt abita at 0.66 and net debt equity at 0.16 in financial year 26. For 4:43 4 minutes, 43 seconds the fourth quarter, the revenue grew to 2,938 crores. Aida stood at 300 crores and PAT was around 136 crores. The 4:52 4 minutes, 52 seconds reported margins for financial year 26 and Q426 have been affected because of the US status pass through uh brand and 4:59 4 minutes, 59 seconds marketing investment U LTO UK being an investment phase and organic segment under remodeling. 5:06 5 minutes, 6 seconds Our core business now I cover the segment and geography performance. So our core business continues to perform strongly with basmati in the specialtity 5:13 5 minutes, 13 seconds rise contributed 88% of the revenue delivered a 29% revenue growth in financial year 26 normalized growth 21% 5:22 5 minutes, 22 seconds excluding the US tariff with revenue in tune of rups 9,742 crores reflecting the enduring strength 5:30 5 minutes, 30 seconds of our strong brand equity and deepening trust consumer place in our products across the world the segment maintained 5:37 5 minutes, 37 seconds a healthy bit margin of 12.3% % we observed strong growth across India, North America and Europe. We continued 5:45 5 minutes, 45 seconds and gained our leadership position as number one brand basmati brand in North America with a strong share in the US imports and Canada market. Our organic 5:54 5 minutes, 54 seconds foods and ingredient segment grew by 9% and crossed rupees 1,16 crores in the revenue in financial year 26 building on 6:02 6 minutes, 2 seconds over 30 years of pionering Indian organic exports with over 1 lakh 10,000 hectares of certified organic farmland 6:09 6 minutes, 9 seconds 80,000 farming family association and a global partner base spanning 25 countries. This business represents both a significant commercial opportunity and 6:17 6 minutes, 17 seconds a profound expression of our commitment to responsible sourcing. We're glad to share that we hold 12% share in Indian 6:24 6 minutes, 24 seconds India's export of organic food. However, this business segment is under stress and we have strategically remodeled it for the next phase of the growth in 6:33 6 minutes, 33 seconds which we have built the capacity which will take time to get fully utilized and also entered into the CPG business. 6:40 6 minutes, 40 seconds Further, the AIA is also currently under stress due to currency fluctuations and commodity price pressure. Our ready to 6:48 6 minutes, 48 seconds heat and ready to cook segment business has grown 2.5x over the last 5 years reaching uh 187 crores in financial year 6:56 6 minutes, 56 seconds 26 as consumers increasingly seek convenient and healthy meal solutions at home. Innovations like biryani kit, 7:03 7 minutes, 3 seconds kapar rice, royal ready to heat range are resonating strongly with time press flavor forward consumers in India and internationally. The demand momentum across key markets remain strong. 7:14 7 minutes, 14 seconds However, certain growth opportunities could not be fully serviced due to capacity constraint in RTH platform. The enhanced capacities are expected to 7:23 7 minutes, 23 seconds become operational from quarter 2 of financial year 27. 7:27 7 minutes, 27 seconds Our India business continued its strong trajectory ending the year with 10% value and 12% volume growth. A testament to the resonance continues to build with 7:36 7 minutes, 36 seconds Indian consumers. What is particularly encouraging is the quality of this growth. Our quickcommerce and e-commerce 7:42 7 minutes, 42 seconds channel grew in excess of 45% firmly cementing our leadership on G key digital platforms. The premium segment 7:51 7 minutes, 51 seconds grew at 2x the pace of the overall consumer portfolio reflecting the power of the premiumization trend that is reshaping India's food landscape uh space. 8:02 8 minutes, 2 seconds Premiumization drew a significant increase in gross margin which was reinvested in the further strengthening of our strong brand equity enabling us 8:10 8 minutes, 10 seconds to scale our marketing budget by 2x versus last year. Our household reach in India rose to 64.4 lakhs as for the 8:18 8 minutes, 18 seconds cant.8% expansion over the last 15 months. Our market share in India stands at 23.7% as 8:26 8 minutes, 26 seconds per the neon report. Besides the new innovative offerings like Dawat and organic range, the limited edition of 8:33 8 minutes, 33 seconds Dawat Saffron Basmati and Dawat Thai green curry curry rice kit are gaining strong traction with our consumers. Our 8:42 8 minutes, 42 seconds investment in the new facility in Raichu Karnataka further strengthens our value chain from farm to fork as we deepen our 8:48 8 minutes, 48 seconds regional rights play also the North America. It remains our largest market contributing 48% of our revenue mix in 8:57 8 minutes, 57 seconds financial year 26 and delivering 53% growth. 9% is the novelized one excluding the impact of the US tariffs. 9:05 9 minutes, 5 seconds Our flagship brand Royal commands over 60% market share and Golden Stock continues to be number one Jackson rice brand in USA. Europe continued its 9:14 9 minutes, 14 seconds growth journey delivering 34% revenue growth in financial year 26 and advancing meaningfully towards our five-year target of 100 million pounds 9:22 9 minutes, 22 seconds in UK revenue. LPO Jup was conferred with the new entrit award for its expansion to the UK market at the 15th 9:31 9 minutes, 31 seconds annual department of business and trade investment awards. Separately, extra long basmati recognized as the product of the year. Taw extra long basmati 9:39 9 minutes, 39 seconds recognized as product of the year in UK and honor driven entirely by the UK consumers. We are building the 9:46 9 minutes, 46 seconds foundation for a s sustainably large European business and we remain focused on brand building, distribution expansion and portfolio diversification 9:55 9 minutes, 55 seconds across the region. In the Middle East, we continue to further strengthen our position. We would like to highlight that despite the ongoing geopolitical 10:03 10 minutes, 3 seconds conflict in Middle East including the heightened tensions arising from the Iran situation for Food Force has demonstrated business resilience with no 10:10 10 minutes, 10 seconds material disruption to our supply chains. During the year, we expanded our presence in Saudi Arabia with rupes 53 crores in revenue in financial year 26 10:19 10 minutes, 19 seconds and successfully launched Maza Basmati rice in Saudi Arabia. 10:24 10 minutes, 24 seconds Apart from this, we are witnessing some nearterm pressure arising from US importar related developments. While the input cost has increased, we have to see 10:32 10 minutes, 32 seconds how it's going to impact us in the near future. Going ahead, premiumization, category expansion, route to market 10:40 10 minutes, 40 seconds excellence will continue to be the engines of our growth while brand in India. While brand investments, distribution, expansion, innovation will 10:47 10 minutes, 47 seconds drive our international performance. Our strategy going forward remains very clear and focused. strengthening our core business by expanding our global 10:56 10 minutes, 56 seconds market share in basmati in the specialtity rise and drive premiumization and pricing path accelerating new categories by scaling 11:03 11 minutes, 3 seconds RTH RTC and other such products. We shall remain focused on margin improvement by focusing on operational efficiencies cost optimization and build 11:11 11 minutes, 11 seconds economies of scale improve mix towards premium and the branded offerings. 11:17 11 minutes, 17 seconds Technology and digital transformation remain at the core of our capability building agenda. As we scale towards our next phase of the growth, we are 11:24 11 minutes, 24 seconds committed to building a smarter, more agile and future ready organization that leverages technology as a competitive advantage. 11:34 11 minutes, 34 seconds We expect uh for the future we expect continued uh doubledigit growth uh supported by global demand and new product launches, distribution 11:42 11 minutes, 42 seconds expansion. Margins are expected to gradually improve as brand investments normalize, scale benefit come through. 11:48 11 minutes, 48 seconds RTH, RTC and organic segments will continue to outpace overall growth. Now I would like to open the floor for question answers please. 11:59 11 minutes, 59 seconds Thank you ma'am. We will now begin the question and answer session. Anyone who wishes to ask a question may press star 12:07 12 minutes, 7 seconds and one on your touchdown telephone. If you wish to withdraw yourself from the question queue, you may press star and 12:14 12 minutes, 14 seconds two. Participants are requested to use handset while asking the question. 12:20 12 minutes, 20 seconds Ladies and gentlemen, we will wait for a moment while the question queue assembles. 12:34 12 minutes, 34 seconds The first question comes from Abhishek Mat with systematics. Please go ahead. 12:40 12 minutes, 40 seconds Yes. Uh hi team thank you for the opportunity. uh just wanted to check uh what for FY26 what was our volume growth 12:47 12 minutes, 47 seconds in the US uh and also for the uh in the US geography and also for the basmati speciality r segment uh volume growth 12:56 12 minutes, 56 seconds for FI26 and what do you think was the extent of uh impact on this due to the 13:02 13 minutes, 2 seconds uh US tariffs that's my first question 13:09 13 minutes, 9 seconds uh yeah s the volume also the volume uh uh in the overall basmati in the specialtity segment in this uh yearon-year basis uh grew by almost 19%. 13:20 13 minutes, 20 seconds uh this year and as regarding the uh the uh in the US 13:27 13 minutes, 27 seconds as such the US volume uh increased by if we that that also increase if we 13:37 13 minutes, 37 seconds include the golden star golden star revenue that also increased by 30% 35% 13:45 13 minutes, 45 seconds and sir what do you think was the impact on this volume growth if any from the US tariffs. 13:51 13 minutes, 51 seconds So you know uh uh so this was an uh uh opportunity for us being you know the company which has on ground 14:01 14 minutes, 1 second uh operations and with a better service level we have been able to acquire more 14:08 14 minutes, 8 seconds consumer more customer by giving them you know the uh the service level. So uh 14:17 14 minutes, 17 seconds so the idea was to in this whole disruption which was a big disruption uh for us. The idea was to keep the service 14:26 14 minutes, 26 seconds level and robust and uh that has really helped us uh to grow our customer and 14:33 14 minutes, 33 seconds consumer base. Although you know it has impacted on our margin because partly uh 14:40 14 minutes, 40 seconds we have consumed and partly we have passed on. But uh broadly you know uh acquiring consumers acquiring customer 14:49 14 minutes, 49 seconds was a big achievement uh for us right sir and secondly you you have 14:57 14 minutes, 57 seconds indicated a higher stepped up investment in in your UK uh business uh where we have a fivey year target of scaling up 15:05 15 minutes, 5 seconds so just wanted to check today how much uh is UK uh salience for Europe uh as a percentage of revenue and related uh on 15:13 15 minutes, 13 seconds the domestic side just wanted to check what is our distribution reach now I believe it was about 170k in December 15:21 15 minutes, 21 seconds but what is that number now uh Sachin can add into this uh you know 15:27 15 minutes, 27 seconds this year uh UK's roughly 45 million pound uh revenue correct sir 15:34 15 minutes, 34 seconds and uh the goal is in by 2030 we will scale it to 100 million 15:42 15 minutes, 42 seconds um distribution distribution India distribution so India distribution um is uh flat at 15:51 15 minutes, 51 seconds 172 so flattish hasn't grown much in the last quarter but we've uh seen a improvement in our market share compared 16:00 16 minutes to uh last year same quarter all right sir and lastly just a bookkeeping question if I may uh when I 16:08 16 minutes, 8 seconds look at our uh revenue growth for FI26 for India and UK which are sorry India and US which are together about uh about 16:17 16 minutes, 17 seconds 80% of the business uh it's at uh 10% for India and about 8 to 9% uh for for the US but our FI26 revenue growth for 16:27 16 minutes, 27 seconds the basmati segment which is about 90% of the business is at 21% uh both normalized uh these don't seem to be 16:35 16 minutes, 35 seconds adding up is there something I'm missing here uh so you need to There are two kind of 16:42 16 minutes, 42 seconds accounting treatment uh that we did this year. So one was uh if if you normalize that the one was the the tariff the 16:49 16 minutes, 49 seconds custom tariff and the second was was the golden star because the last year the golden star we had a JV this year the we 16:57 16 minutes, 57 seconds have acquired that 49% now it is a fully wholly owned subsidiary. So both the numbers uh if you tie it up uh because 17:05 17 minutes, 5 seconds there uh in the in the in the US one in the US one we had normalized the golden star as well as the tariff whereas in 17:12 17 minutes, 12 seconds the basmati segment uh the tariff was there. So once you do both the things it will t 17:21 17 minutes, 21 seconds understood sir thanks thanks and all the best. 17:26 17 minutes, 26 seconds Thank you. The next question comes from Sor Bya with Samsha Capital. Please go ahead. 17:33 17 minutes, 33 seconds Uh hi first, congratulations for a great set of numbers. I wanted to just have a guidance on the margins part. So say 17:41 17 minutes, 41 seconds going forward in FY27, what are the gross margins do we expect uh considering the rise in the input cost and also the beta margins? 17:52 17 minutes, 52 seconds So uh if we talk about the gross margins uh the gross margins will be more or less in the lines what uh we have u done 18:00 18 minutes in the 25 26 because this uh the gross margins the movement of CIF to uh the CNI that will remain in this year as 18:08 18 minutes, 8 seconds well. So that will be there yes uh somewhat the tariffs and other things uh because now the tariff has normalized 18:16 18 minutes, 16 seconds from 50% it has gone to 10%. So we expect uh the gross margins to be within the range of what was there in the the last year. 18:26 18 minutes, 26 seconds Uh but last when I checked your F56 g cross margins remains different from F5. 18:33 18 minutes, 33 seconds So on a absolute basis if you can give me a number of the range that would be more helpful. 18:40 18 minutes, 40 seconds Uh so if you look at my gross margins in 2425 it was almost a 24.5 24.6% 6% it it 18:48 18 minutes, 48 seconds reduced on the 100 basis point and this reduction in the 100 basis point was mainly because of the US tariff and the 18:55 18 minutes, 55 seconds movement from C CNF to CNI. So uh this margin range of 33.5 or 33% uh will 19:03 19 minutes, 3 seconds remain in the next financial year as well. 19:08 19 minutes, 8 seconds Okay. Perfect. Okay. uh and uh the beta margins. 19:14 19 minutes, 14 seconds So uh a beta margins because uh this year we were we were there were certain the tariff was there and there was certain passing of the timing and other 19:23 19 minutes, 23 seconds things were there. The tariff had an effect on my aida margins. Likewise there was uh the organic range one of 19:30 19 minutes, 30 seconds the organic the inventory built up and uh the other uh the spends were there. 19:36 19 minutes, 36 seconds So if these things uh because there are certain kind of dynamic uh environment and dynamic situations that might these 19:45 19 minutes, 45 seconds situations uh relatively are not there and uh things remain such we will we will surely improve on the beta margins 19:53 19 minutes, 53 seconds by almost uh on that levels. We were at 12% uh in the previous year. So we are we are eyeing that levels. 20:03 20 minutes, 3 seconds So whatever you know whatever the disruption has come we have counted for till time 20:10 20 minutes, 10 seconds uh as such said you know we are confident that you know we will be in the range of 12%. 20:17 20 minutes, 17 seconds Uh but you know as we are living in a very disrupting world so uh we are confident that uh we will be in this range. 20:29 20 minutes, 29 seconds Perfect. And another question lies around the growth guidance. Uh if you can guide a number of uh different 20:37 20 minutes, 37 seconds geography wise and your overall basmati segment wise and also market share for say going forward if uh the basmati 20:47 20 minutes, 47 seconds industry grows by say x%. So what of the total geography what percentage of 20:54 20 minutes, 54 seconds market share does LB uh sees of the glob in the that we have tried 21:01 21 minutes, 1 second and to put all the information on the presentation. 21:05 21 minutes, 5 seconds So if you go through the presentation you will find these numbers and uh and the guidance for the growth 21:12 21 minutes, 12 seconds that we maintain that uh the guidance for the growth. So we are eyeing at a 10 to 12% of growth uh on the on the 21:20 21 minutes, 20 seconds long-term basis that we are eyeing and we uh remain to that growth levels organically we should grow in that levels. 21:29 21 minutes, 29 seconds Okay. No. Thank you. 21:35 21 minutes, 35 seconds Thank you. Ladies and gentlemen, if you wish to ask a question, please press star and one. 21:43 21 minutes, 43 seconds The next question comes from Puja Sangi with Incorrect. Please go ahead. 21:51 21 minutes, 51 seconds Um, congratulations. 21:54 21 minutes, 54 seconds Um, I want to ask that uh what is current what is your inventory by age and how much of your inventory today is 22:02 22 minutes, 2 seconds aged like 12 months or more? What is the relatively fresh one? 22:09 22 minutes, 9 seconds inventory inven so uh inventory aging also it depends upon the different uh different products which we sell and uh 22:17 22 minutes, 17 seconds all my premium products if you talk about uh premium and certain other uh other range that we have. So my average 22:25 22 minutes, 25 seconds inventory levels uh if you talk about the average inventory is around uh 190 days to 200 days of inventory which 22:33 22 minutes, 33 seconds we hold. So there are certain premium where we age more than uh 18 months and two years of inventory aging that is 22:41 22 minutes, 41 seconds required. So there are on these on the various products we age accordingly. 22:50 22 minutes, 50 seconds Um right so I just wanted some clarity on uh how much of the volume is aging 22:56 22 minutes, 56 seconds beyond two years if you can tell me that. 23:03 23 minutes, 3 seconds Yeah Buja can you uh you know be specific on your question so may may not be we have the answer right now but uh 23:10 23 minutes, 10 seconds you can mail it to you know the investor relation uh sure definitely. Thank you. 23:17 23 minutes, 17 seconds Yeah. Thank you. 23:24 23 minutes, 24 seconds Thank you. The next question comes in the line of Kish Lula, an individual investor. Please go ahead. 23:33 23 minutes, 33 seconds Hi, thank you for the opportunity. 23:36 23 minutes, 36 seconds My question is on payable days. Uh I'm seeing from FI21 we had trade payable 23:43 23 minutes, 43 seconds days at 45 days. Now it is searching almost around 100 days. I wanted to know 23:49 23 minutes, 49 seconds what's the reason for it and uh is the 100 trade payable days now the normal 23:56 23 minutes, 56 seconds payable days for the future or is it going to reduce like it reduced to 101 in FI26. 24:03 24 minutes, 3 seconds Uh so these payable days of 100 or 100 days which are which is there in the financial numbers uh so these will 24:11 24 minutes, 11 seconds remain as such. So we have made certain arrangements uh because our practice of buying is 60 to 70% we buy in the season 24:19 24 minutes, 19 seconds and 30 to 40% we buy uh apart on the other seasons. So the payment days in when we buy in 30 to 40% in the other 24:28 24 minutes, 28 seconds part of the season that differs. So that uh having said so this payable days of 100 days will remain in the future as well. 24:38 24 minutes, 38 seconds Okay, thank you. Thank you. 24:45 24 minutes, 45 seconds The next question comes from Ahmed Dshi with care PMS. Please go ahead. 24:52 24 minutes, 52 seconds Yeah, thank you. Uh sir, uh visa is a ready to heat health and convenience segment. uh so while of course Dawat the 25:00 25 minutes discontinuation has impacted the sales growth but overall looking at the number the size uh our growth number we think 25:08 25 minutes, 8 seconds is fairly low uh or or what is our internal target uh that's uh one and second on the same RTH and RTC segment 25:17 25 minutes, 17 seconds our gross margins are in the line of 32 33% which is similar to bakarti and specialty rise so uh considering that 25:26 25 minutes, 26 seconds it's a convenient segment and uh you know should it have a higher gross margin or if if there's anything on that if you can add. 25:35 25 minutes, 35 seconds So basically RTH uh uh segment is led by our US geography which is very big uh in 25:43 25 minutes, 43 seconds this category. the rest of like India is a very small of for ready to heat and 25:50 25 minutes, 50 seconds bigger in ready to cook where we are you know putting all our efforts which is tawat biryani and you know so that's we 26:00 26 minutes are getting good response so as far as RTH is concerned you know um 26:06 26 minutes, 6 seconds our plant got delayed and that's how you know uh the growth is little disrupted but uh we are confident that by by July 26:16 26 minutes, 16 seconds the production will start we will be uh back on the track of growth and as far as margins are concerned uh you're right 26:24 26 minutes, 24 seconds we are in the range of 35 I mean that two and that two is basically on basis of accounting treatment because you you 26:31 26 minutes, 31 seconds know initial period you do the more of sampling and sales promotion there is more uh more spend on that and that 26:39 26 minutes, 39 seconds needs to be neted off and you you need to have the net sales if you remove that our overall uh GP margins in this 26:46 26 minutes, 46 seconds segment on the on the basis of what we are making the sales it is almost 40% plus in this segment if we remove the 26:54 26 minutes, 54 seconds sales promotion and the sampling expenditure. 26:59 26 minutes, 59 seconds So the filter is whichever the filter is whichever you know RTH or RT 27:05 27 minutes, 5 seconds C segment we should get into the filter is it depends on the size of opportunity it will be in the range of 30 to 40%. 27:18 27 minutes, 18 seconds Okay. Okay. and what's our internal I mean you know growth target of this segment and uh you know when when do we 27:26 27 minutes, 26 seconds have a break even target so as far as you know the the internal 27:34 27 minutes, 34 seconds aspiration we have set for this business so RTH is very big in uh USA and uh this 27:44 27 minutes, 44 seconds year you know we have done 15 million so another plant has been setup which is late. So in the next uh 2 year we will 27:53 27 minutes, 53 seconds be 30 million which is 300 cr and uh on the ready to cook which is India uh that 28:02 28 minutes, 2 seconds you know uh on the size of we are expecting by 2030 we have set upund 12 uh kores of revenue by 2030. 28:15 28 minutes, 15 seconds Um so in uh India we are already the category leaders when it comes to biryani kit uh we have more than uh 60 28:25 28 minutes, 25 seconds uh to 65% market share on different uh platforms and so uh over here the the 28:32 28 minutes, 32 seconds investments are going uh on for category creation. So we are therefore very uh 28:41 28 minutes, 41 seconds bullish on building uh this category up. 28:46 28 minutes, 46 seconds Okay. Okay. So in in break even target that you would want to add can you add? 28:54 28 minutes, 54 seconds Oh it will be in uh next two years. So as told the in the whole of the category our break even target that remains the 29:01 29 minutes, 1 second same. Uh achieving a 400 crores in this segment will will make us break even in this segment. 29:08 29 minutes, 8 seconds So that's our target. Yes. Uh one one year because of the capacity constraint our target has moved but otherwise we are online with achieving that target. 29:18 29 minutes, 18 seconds Okay. Okay. Okay. Overall our inventory days are down. So uh have we purchased less this year? Uh uh as far as our inventory is concerned. 29:31 29 minutes, 31 seconds Not really. Not really. we have uh not reduced our inventory uh yes as we compare with the inventory days uh it is 29:40 29 minutes, 40 seconds it has reduced by 28 days so somewhat uh this represents the tariff as well so because the tariff impact and other 29:48 29 minutes, 48 seconds things were there but overall the overall the inventory uh we have maintained that inventory levels of almost 250 days of inventory which I'm 29:57 29 minutes, 57 seconds sitting at as on March 31st okay okay And u um uh any any any 30:05 30 minutes, 5 seconds general comment uh u on talo and outlook of basmati x production for the upcoming 30:13 30 minutes, 13 seconds season u anything on that you know patty prices for next year anything any comment on that would be helpful. 30:22 30 minutes, 22 seconds Yeah. So as far as uh you know farmers economics point of view last year the patty price were very high. So we expect 30:30 30 minutes, 30 seconds that you know the farmers will grow more as far as you know the impact of a nino you know that's a you know we are we are 30:39 30 minutes, 39 seconds watching but uh historically you know basmati is mainly grown in the 30:45 30 minutes, 45 seconds uh in the region where you know there is other way of irrigation also. So in the last 40 50 years we have not seen any 30:54 30 minutes, 54 seconds impact of uh the rainfall shortage on the basmati rather you know farmer prefer than basmati because it consume 31:03 31 minutes, 3 seconds lesser water and uh so we we are positive that uh the production of 31:10 31 minutes, 10 seconds basmati will grow this year but uh I think we will be more clearer uh in in one and a half months. 31:22 31 minutes, 22 seconds Okay. Okay. Okay. And on the Middle East front, while of course Saudi has contributed to around 50 core uh revenue 31:30 31 minutes, 30 seconds this year, new market, other than that, our Middle East uh uh is not growing. Is that correct understanding? 31:38 31 minutes, 38 seconds Uh no that's a correct you know u u you know that's a very uh tough market very strong entry barriers and uh we have 31:47 31 minutes, 47 seconds chosen our route to market uh where you know uh we we should not uh lose money we will or I will say not invest money 31:56 31 minutes, 56 seconds much on that but we are finding other ways of uh growing middle east uh hopefully you know that should work. 32:06 32 minutes, 6 seconds Okay. Okay. Okay. Thank you. Thank you and show all the questions. Thank you sir. Thank you. 32:14 32 minutes, 14 seconds Thank you participants. If you wish to ask a question please press star and one. The next question comes from the 32:22 32 minutes, 22 seconds line of gojit investment limited. Please go ahead. Hi am I audible? 32:29 32 minutes, 29 seconds Yes Mr. Uni. Yes. 32:31 32 minutes, 31 seconds Yeah. Uh hi sir. I would like to know about what the what is the revenue contribution of golden star specifically and their margins. 32:42 32 minutes, 42 seconds So as regarding the revenue contribution it is almost contributing my 10% of the overall revenue in this uh segment. So 32:50 32 minutes, 50 seconds uh currently uh we are not tracking its AIA margins as such because it is it has been merged with my financials but uh 32:57 32 minutes, 57 seconds the the margins of this uh this year is uh as you compare is relatively one or 2% lower than that of the last year. 33:08 33 minutes, 8 seconds Okay. Uh so uh like in Q4 what what will be the revenue of uh like what uh for 33:16 33 minutes, 16 seconds golden star it's a very uh you know proportionately divided so 25 million which is 250 cr. 33:27 33 minutes, 27 seconds Okay. Okay. Uh one more question sir like uh what will be uh what is the current situation of raw material prices? 33:37 33 minutes, 37 seconds So for the coming crops. Yeah. Yes. Yes. 33:41 33 minutes, 41 seconds So uh it's it's it's very early uh because in one and a half months we will be clear you know what is the kind of 33:49 33 minutes, 49 seconds production being forecasted and uh what will be the you know impact on this uh uh this disruption which is 34:00 34 minutes happening in the Middle East. So I think one and a half month we will be more clear but broadly if you ask me um the 34:09 34 minutes, 9 seconds prices uh will not come down much. 34:15 34 minutes, 15 seconds Okay sir. So for Q4 what what was the uh situation uh in terms of prices? 34:24 34 minutes, 24 seconds Yes. Yes. Yes. I think the prices have gone up very high you know from the base level if I talk about uh whatever was 34:33 34 minutes, 33 seconds the opening price roughly 25 to 30% prices have gone up 34:40 34 minutes, 40 seconds okay okay sir okay sir thank you thank you next question comes from the 34:49 34 minutes, 49 seconds line of daman with autas capital please go ahead yeah thank you for the opportunity Just 34:55 34 minutes, 55 seconds one question uh from my side on KEX uh I see that you have spent around 30 60 crores. So can you just give me a break 35:03 35 minutes, 3 seconds up of uh uh this kex yeah that's that's from my side 35:10 35 minutes, 10 seconds the capex spent in the last year is almost 350 crores uh and in that uh in that the major capex that has went is 35:18 35 minutes, 18 seconds basically in the in the lines of the US uh we have purchased the land and we have invested in the RT facility so in 35:25 35 minutes, 25 seconds the US uh that's the major capex uh that has went up in the last year land we building you know big warehouse in Houston. 35:37 35 minutes, 37 seconds Okay. So the 360 crores is entirely for that. 35:41 35 minutes, 41 seconds A major one is it is uh in that uh rest is uh is in the UK one the packaging facility because we have we are in the 35:50 35 minutes, 50 seconds growth phase and we have installing that additional packaging facility in that and rest are certainly in India. India 35:57 35 minutes, 57 seconds we have purchased certain portion of land and to build new warehouses uh in the Indian region so that has gone in that capex 36:06 36 minutes, 6 seconds okay it's a mix of mix of all territory and but major is uh which is such is explained on the 36:15 36 minutes, 15 seconds Houston land and RTH sure got it and what what's the outlook for FI27 or the capex plan that's going 36:22 36 minutes, 22 seconds to come through um we'll be in the similar lines. Uh we we are investing uh to create certain 36:32 36 minutes, 32 seconds more capacity in India. Uh and then you know the land has been purchased and 36:38 36 minutes, 38 seconds warehousing and uh and and some um uh you know asset we are building in Europe 36:46 36 minutes, 46 seconds on packaging and all this but major is in India and uh USA. 36:55 36 minutes, 55 seconds Sure. Okay. And just one question on on that green acquisition which kind of fell through. Will we be re looking at 37:01 37 minutes, 1 second it now considering the change changes or circumstances? 37:07 37 minutes, 7 seconds As a strategy we always look for opportunity which has a you know strategic in nature as far as LT foods 37:16 37 minutes, 16 seconds framework is concerned. So we we keep on looking that kind of opportunity. 37:23 37 minutes, 23 seconds Okay. Sure. And just just one question on the consumption side uh specifically on US are you seeing any impact in terms 37:31 37 minutes, 31 seconds of uh consumption at the retail level or uh of the war in inflation anything like that. 37:41 37 minutes, 41 seconds As far as uh demand side is concerned, we have not seen any impact and historically also because being the food 37:50 37 minutes, 50 seconds u and us you know whatever the income is that's the last thing to get impacted. 37:58 37 minutes, 58 seconds Sure that's that's hardening to know. Thanks. Thanks and all the best. Thank you. Thank you. 38:06 38 minutes, 6 seconds Thank you ladies and gentlemen. If you wish to ask a question to the management, you may press star and one. 38:18 38 minutes, 18 seconds The next question comes from the line of a loveia and individual investor. Please go ahead. 38:24 38 minutes, 24 seconds Hi guys, congratulations for the good set of numbers. So my question is that in respect of top 10 growth budget 38:31 38 minutes, 31 seconds topend growth for this year in USA as well as the sales growth for this year. 38:39 38 minutes, 39 seconds Cle sorry you know can you repeat your question please? 38:42 38 minutes, 42 seconds I just wanted to understand the sales growth in USA for this year financial year 26 and as well as the volume growth in the USA. 38:52 38 minutes, 52 seconds So uh otherwise it is stated in my uh investors tech uh uploaded one uh the 38:59 38 minutes, 59 seconds USA in the value terms uh is grown by almost 53% but that includes the tariff 39:06 39 minutes, 6 seconds as well as the golden star in this and in the volume terms as I stated it it is a 38% growth uh in the US that was there 39:15 39 minutes, 15 seconds in the volume and uh if I if I reduce the golden star the there is a growth of volume around 8%. 39:23 39 minutes, 23 seconds Okay. So there's a discrepancy in the volume and the sales growth. So is the does the sales growth also include the forest uh forest gains as we have seen 39:32 39 minutes, 32 seconds that the dollar appreciated a lot in the last one year. So does the sales file include that also or the contract used to take place at the very initiation of the year? How it used to take place? 39:42 39 minutes, 42 seconds No. No. Yeah. So the yes it has a dollar impact uh dollar depreciating because we are reporting in the Indian rupees and Indian rupee has almost depreciated last 39:51 39 minutes, 51 seconds year. So it has an impact in the rupee terms currency. 39:56 39 minutes, 56 seconds Okay. So you're importing in the US uh in the INR not in the US. 40:01 40 minutes, 1 second Yes. So we are reporting in the rupee terms now in India. So it is a no the contract used to take place in 40:08 40 minutes, 8 seconds the US right in the US dollar. whatever you feeling the US we do a yearly transfer pricing with USA 40:16 40 minutes, 16 seconds and as a policy uh we hedge oursel by 50 to 60% you know every time so there is a 40:25 40 minutes, 25 seconds little bit gain which was uh you know unhedged and uh we have uh you know we 40:32 40 minutes, 32 seconds have the gain in this of forex okay uh just the followup question if 40:39 40 minutes, 39 seconds that appreciation of dollar hasn't been happened that much. So what could be the the impact in the sales volume growth as well as sales value. 40:49 40 minutes, 49 seconds So normally what happen you know as a strategy uh international strategy we cover the raw material also roughly 70 80%. 41:00 41 minutes So what we have seen you know if uh rupee depreciate then the local cost also you know goes up so inflation also 41:10 41 minutes, 10 seconds cover that. So more or less you know if you see you know in in uh if your question is around that you know if this 41:19 41 minutes, 19 seconds rupee has not depreciated then the profit remained the same. So the answer is then inflation in the commodity also have not come. 41:30 41 minutes, 30 seconds Okay, fair enough. Thank you for answering. Thank you. 41:41 41 minutes, 41 seconds The next question comes from the line of Yogesh and individual investor. Please go ahead. 41:47 41 minutes, 47 seconds Hi, good afternoon everyone. Uh thanks for giving me the opportunity. So uh I was trying to find a mention about the 41:55 41 minutes, 55 seconds freight cost uh the recent impact in the last quarter. Uh so my question specifically is uh by how much 42:03 42 minutes, 3 seconds percentage has the price increase for the freight from Q4 FY25 to Q4 FY26. Has there been any disruptions in shipping through the conflicted conflicted zone? 42:16 42 minutes, 16 seconds So the mainly the disruption such you can add into the Europe has been the most disrupted. Uh the prices have gone 42:24 42 minutes, 24 seconds up. Uh in US another market uh at the moment you know that's not much uh disruption in freight as compared to 42:33 42 minutes, 33 seconds last year. But Middle East which is not our big business the prices have gone by 10 15 times. 42:42 42 minutes, 42 seconds 10 15 times. 42:44 42 minutes, 44 seconds Yeah. like you know Dubai was $200, now $2,200. 42:50 42 minutes, 50 seconds Uh Jada was uh $7800, now $2,600. 42:55 42 minutes, 55 seconds So it depends, you know, and there is a big disruption uh uh in the in the delivery also in the Middle East. 43:03 43 minutes, 3 seconds Understood, sir. Another question if I may please. Um yes sure sir in percentage terms how much is the 43:11 43 minutes, 11 seconds change in the realization per kilogram of uh our main brand Davat in India and then the royal brand separately in the 43:19 43 minutes, 19 seconds US. I am asking this in context of pricing power. 43:23 43 minutes, 23 seconds So uh can tell that you know what is the quantitative growth and what is the value growth. So uh in the last year 43:32 43 minutes, 32 seconds both the quantitative and the value growth uh is almost at par but we've seen a improvement in our product mix. 43:41 43 minutes, 41 seconds Uh premium most premium SQ 2x uh growth uh u compared to you know 43:49 43 minutes, 49 seconds the whole consumer uh pack business. So from that perspective, we are working on improving our uh product mix which drives better uh gross margins. 44:02 44 minutes, 2 seconds Okay, thank you. Uh that's all from my side and my good wishes and very best luck uh to the company. 44:11 44 minutes, 11 seconds Thank you. A reminder to all participants that you may press star and one to ask questions. 44:19 44 minutes, 19 seconds The next question comes from the line of Anuba Mukharji with precision capital. Please go ahead. 44:25 44 minutes, 25 seconds Uh um thanks for the opportunity. Sorry I was slightly late in joining the call and this might have been discussed but 44:33 44 minutes, 33 seconds sir can you share what is the trend of uh like pricing or realization in the 44:39 44 minutes, 39 seconds international markets? uh like uh is there a like price increase we have seen 44:46 44 minutes, 46 seconds for uh so as far as you know uh domestic 44:54 44 minutes, 54 seconds price are concerned that has uh gone high from season 20 to 25%. 45:01 45 minutes, 1 second But as far as international price is concerned that the deal is all are done 80 85% in the season only. 45:10 45 minutes, 10 seconds So uh whatever the 10 15% left you know trading is left that has seen you know 45:18 45 minutes, 18 seconds 15 to 20% higher prices than the season price. I I hope that answer your question. 45:26 45 minutes, 26 seconds Yes sir very much. And sir, uh the domestic uh price like you mentioned have seen a significant increase 25%. 45:36 45 minutes, 36 seconds So uh will that be like uh like will that only uh suffice to like uh uh take 45:44 45 minutes, 44 seconds the uh like hit from maybe higher procurement price this year or will we be able to like improve our corresponding because of that? 45:54 45 minutes, 54 seconds Uh if you I correcting correctly so prices of patty has gone up that's the yes okay cost has gone up so there will be 46:03 46 minutes, 3 seconds further improvement in the gross margins in the coming years in absolute in absolute term the gross margin will be more yeah 46:12 46 minutes, 12 seconds okay uh thanks that's all thank you 46:21 46 minutes, 21 seconds the next question comes from the line of an individual investor. Please go ahead. 46:27 46 minutes, 27 seconds Uh hi everyone again. Uh I recuted myself to ask another question which I forgot earlier. So the regarding the 46:35 46 minutes, 35 seconds insurance uh case that was going on. uh in simple terms because I'm an individual investor I don't understand 46:42 46 minutes, 42 seconds the nuances of the uh the legal terms but in in simple terms if rupees 100 was expected to be received including the 46:50 46 minutes, 50 seconds interest over the years for the bopal case how much is it already on the books and how much more is expected and likely 46:57 46 minutes, 57 seconds when okay I will I'll tell you so the the lower court and as well as high court 47:05 47 minutes, 5 seconds and supreme court has asked complaint to give us money against bankrar. So that 47:12 47 minutes, 12 seconds we have got we have given the bank guarantee but in accounting you know no uh accounting has been done whatever the 47:20 47 minutes, 20 seconds gain is you know like our books 136 is outstanding uh with the insurance company where this 47:28 47 minutes, 28 seconds we have got 250 but we can't do the accounting till you know the final verdict uh will happen which is uh in 47:36 47 minutes, 36 seconds the June I hope that you yes sir it greatly does answer my question. So you mean to say that sir is the amount in an escro account. 47:47 47 minutes, 47 seconds So it is uh we in fact not in an escro account. We have that money. So it is the court that has asked for the bank 47:54 47 minutes, 54 seconds guarantee against that amount. So we have that amount because the bank guarantee was to be given. We have 48:01 48 minutes, 1 second deposited a FD amount equent to the bank guarantee amount. So that is basically a FD account. So that is 48:08 48 minutes, 8 seconds very well understood sir. Yeah very well understood. Thank you so much. Thank you. 48:15 48 minutes, 15 seconds The next question comes from the line of Saberia Samaka Capital. 48:21 48 minutes, 21 seconds Uh thanks for the opportunity again. I just wanted to have some guidance on the going forward KEX. So if you can guide 48:29 48 minutes, 29 seconds me net asset turn figure or say KEX as a percentage of sales figure because as we keep on growing at a rate of say 14 15%. 48:40 48 minutes, 40 seconds So we'll have to have more capeex right. 48:43 48 minutes, 43 seconds So going forward can you give me a kix guidance right? Yeah. Uh so this year we have 48:52 48 minutes, 52 seconds spent 330 odd crores and the next year also will 48:59 48 minutes, 59 seconds be in the same range. Uh so this this is the broader guidance from the capex. So 49:07 49 minutes, 7 seconds we don't calculate on the percentage of the revenue uh we calculate on the you know the production tonnage. 49:16 49 minutes, 16 seconds So so if you can guide me a net asset turn or gross asset turn number. 49:23 49 minutes, 23 seconds So basically uh what we are telling now key this year this year or uh the coming forward year because uh there was certain oneoff buildup of uh the spent. 49:33 49 minutes, 33 seconds So on a yearon year basis you can't tie up with that number because my capex for this year might service for the next 2 49:41 49 minutes, 41 seconds three years. So that ways uh it goes like that on a on a conservative or a basis than I have the amount of 49:50 49 minutes, 50 seconds depreciation what we have that will be invested in the capex. So almost on a on a long-term trajectory itself or 250 49:58 49 minutes, 58 seconds crores of capex each year that will be done. So this year this year or previous year we invested because we are building 50:06 50 minutes, 6 seconds a capacity for next four five three four years. So that will be there. Okay. Perfect. Thank you. 50:16 50 minutes, 16 seconds Every year we grow by 60,000 tons and there formula that uh 10 cr per ton. 50:29 50 minutes, 29 seconds Oh, what what what did you see? 50:33 50 minutes, 33 seconds Every year we grow 50 to 60,000 ton of rice. So if we build rice capacity 50:41 50 minutes, 41 seconds so the thumb rule is you know it's a 15 k per per ta per se electric okay and 50:50 50 minutes, 50 seconds currently what is the total capacity turn wise pitch we have okay so we have in terms of milling 50:58 50 minutes, 58 seconds patty to rice we have lakan capacity Okay. 51:12 51 minutes, 12 seconds Again, okay. Okay. Thank you, dar. 51:23 51 minutes, 23 seconds Thank you. The next question comes from Abhishek Mat with systematics. Please go ahead. 51:29 51 minutes, 29 seconds Yes. Hi, thank you for the follow-up opportunity. uh just wanted to check in the domestic market this uh regional rise is an opportunity that we have 51:37 51 minutes, 37 seconds talked about in the past uh can you give an update on that you know what is now the sales level that we have from this segment how is it growing that would be 51:46 51 minutes, 46 seconds helpful thanks so uh it continues to grow in the last financial year at a higher double digit 51:55 51 minutes, 55 seconds uh growth so it's approximately now uh around uh um 52:02 52 minutes, 2 seconds 170 odd crores in revenue which comes out of our regional rice portfolio and uh it will continue to remain our 52:11 52 minutes, 11 seconds focus uh and we'll continue to grow this uh in the future as well. 52:20 52 minutes, 20 seconds All right. And lastly, just a just a clarification. Uh the normalized uh margins that you have presented for the 52:27 52 minutes, 27 seconds full year. They uh they have uh they don't incorporate the impact of your higher uh spending on A&P brand building 52:34 52 minutes, 34 seconds or the higher level of UK investments, right? They are only adjusting for the US tariffs and the uh the accounting adjustment. Is is that correct? 52:42 52 minutes, 42 seconds Correct. Correct. You are absolutely right. that accounts for only for the the tariff and that 52:49 52 minutes, 49 seconds so so sir therefore the slight 40 basis point reduction in the operating margin that we see from FI25 to FI26 that would 52:57 52 minutes, 57 seconds be on account of the higher N&P and the UK investment uh and partly because of the tariff as well the tariff if I talk about the 53:05 53 minutes, 5 seconds passing off of tariff to the end consumers and building up of the inventory and UK and organic that is uh 53:14 53 minutes, 14 seconds the reasons for lower margins uh reduced or 40 basis uh change in the margins. 53:21 53 minutes, 21 seconds Got it. So thanks are all the best. Thank you. 53:31 53 minutes, 31 seconds As there are no further questions, I would now like to hand the conference over to the management for closing comments. On behalf of the management, thank you. 53:39 53 minutes, 39 seconds On behalf of the management of MC Limited, we sincerely appreciate your participation in our post earnings calls. We hope we have been able to 53:47 53 minutes, 47 seconds address both of your queries and provide clarity on the performance and outlook. 53:51 53 minutes, 51 seconds For any further questions of outlook, please feel free to reach out to me or our investor relation partner Erns and Young. The team will be happy to connect 53:59 53 minutes, 59 seconds with you offline and assist with you any additional information you may require. So now you may please close the call. Thank you. 54:06 54 minutes, 6 seconds Thank you. 54:08 54 minutes, 8 seconds Thank you on behalf of Motira Financial Services and LT Foods. That concludes this conference. Thank you for joining us and you may now disconnect your 54:17 54 minutes, 17 seconds lines. I