Manorama Industries Ltd — Q4 FY26

Manorama Industries Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=SQB_top2ors Published: 1 day ago

0:00 Ladies and gentlemen, good day and a welcome to the Manoma Industries Limited Q4 and FY26 funings conference call. As 0:08 8 seconds a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation 0:16 16 seconds concludes. Should you need assistance during the conference call, please signal an operator by pressing start then zero on your touchstone phone. I 0:24 24 seconds now hand the conference over to Mr. Her Kenya from EY. Thank you and over to you sir. 0:31 31 seconds Thank you Shelendra. Good afternoon everyone. On behalf of Manorama Industries Limited I welcome you all to 0:38 38 seconds the company's Q4 and FI26 conference call to discuss the performance of the company and to answer your questions we 0:46 46 seconds have with us the management team comprising of Mr. Ashish Sharaf chairman and managing director Mr. Ashok Jen director and chief financial officer Mr. 0:57 57 seconds Pankage Rati DGM accounts and finance Mrs. Akta Sunni AP investor relations 1:04 1 minute, 4 seconds and Mr. Deepak Sharma Company secretary and compliance officer before we proceed this call I would like to draw your 1:12 1 minute, 12 seconds attention to the fact that today's discussion may contain forward-looking statements that are subject to various 1:19 1 minute, 19 seconds risk uncertainties and other factors which will be beyond management control. 1:25 1 minute, 25 seconds We kindly request to bear in mind that there might be uncertaintities while interpretating such statements. Please 1:32 1 minute, 32 seconds note that this conference is being recorded. We would now like to start the session with opening remarks from the 1:39 1 minute, 39 seconds management team. Afterwards, we will open the floor for an interactive Q&A session. I would now hand over the 1:46 1 minute, 46 seconds conference call to Ashish G for his opening remarks. Thank you and over to you sir. 1:54 1 minute, 54 seconds Thank you. Good afternoon friends. 1:59 1 minute, 59 seconds On behalf of the entire Manorama Industries team, I extend a warm welcome to our Q4 and financial year 2026 earnings conference call. 2:14 2 minutes, 14 seconds We sincerely thank each of our investors, stakeholders, analysts for your continued trust and participation. 2:24 2 minutes, 24 seconds Your deep confidence in our long-term vision is a source of great motivation for us and we remain committed to 2:34 2 minutes, 34 seconds deliver delivering a sustained and quality value as we enter the next fourth phase of our growth journey and 2:41 2 minutes, 41 seconds as we have done in our last many years of performance. 2:47 2 minutes, 47 seconds Financial year 2026 has been a year of exceptional performance. 2:55 2 minutes, 55 seconds Malorama Industries has delivered a performance exceptional performance in 2026. 3:02 3 minutes, 2 seconds Despite these headwinds, we have reported a strong year-on-year revenue growth of 76.1% 3:10 3 minutes, 10 seconds with standalone revenues reaching INR358 crores. 3:18 3 minutes, 18 seconds This excellence in performance is a testament to the resilience of our integrated value chain, the global 3:27 3 minutes, 27 seconds relevance of our specialtity fats and cocoa butter equivalents and the sustained and growing demand we continue 3:34 3 minutes, 34 seconds to witness across the food and cosmetic sectors worldwide through our scientific 3:41 3 minutes, 41 seconds and high-tech products which are being used all over the world. 3:49 3 minutes, 49 seconds We aim to maintain this momentum supported by sustained demand visibility, 3:56 3 minutes, 56 seconds improved operational efficiency and enhanced manufacturing capacity. We plan to reach to every human on this earth. 4:06 4 minutes, 6 seconds During financial year 26, we undertook capacity upgrades to power this next phase of growth. Our solver 4:15 4 minutes, 15 seconds fractionation plant 2 increased installed capacity by 30% from 25,000 4:22 4 minutes, 22 seconds tons peranom to 32,500 tons perom as part of an overall debottle making initiative. 4:32 4 minutes, 32 seconds Solvent fractionation plant one of 15,000 metric t a similar debottle initiative will be taken in this fiscal year. 4:44 4 minutes, 44 seconds through strategic capital expenditure commitment of approximately INR 460 crores over the next two to three years. 4:53 4 minutes, 53 seconds This investment program spans setting up of a new solvent fractionation manufacturing 4:59 4 minutes, 59 seconds manufacturing facility for sal sheep palm mango and other exotic seeds and ESOS. 5:08 5 minutes, 8 seconds Establishment of a new facility for cocoa butter alternatives. 5:13 5 minutes, 13 seconds Expansion of our refining capac capabilities with a additional 200 tons per day refinery. Commissioning of raw 5:20 5 minutes, 20 seconds materials processing units in Gulkina Faso, West Africa. 5:27 5 minutes, 27 seconds These initiatives reflect our focus in the long-term global opportunity and our commitment to deepening our 5:35 5 minutes, 35 seconds competitiveness, securing reliable long-term supply and reinforcing the foundation for sustained growth. 5:45 5 minutes, 45 seconds Our financial remains healthy as of March 31st, 2026. 5:52 5 minutes, 52 seconds Working capital cycle improved to approximately 125 days in financial year 26 compared to 151 days in financial year 25. 6:05 6 minutes, 5 seconds Net cash flow from operating activities stood at INR 259 crores 6:12 6 minutes, 12 seconds roe of 33.6% and roe of 40.3%. 6:20 6 minutes, 20 seconds At Manoroma Industries, our aim is clear to strengthen every growth lever within 6:28 6 minutes, 28 seconds our integrated value chain from procurement and processing to high-tech innovation with scientific global 6:37 6 minutes, 37 seconds customer partnerships based on research and deep tech development. 6:43 6 minutes, 43 seconds With that, I will now hand over to our chief financial officer, Mr. Ashok Jen to walk you through the financial and 6:51 6 minutes, 51 seconds operational highlights for the quarter and the full year. Thank you all. 6:58 6 minutes, 58 seconds Thank you Ashish and good afternoon everyone. I will take you through our financial performance for the quarter 4 and full year 202526. 7:09 7 minutes, 9 seconds Full year's financial year 2526 financial highlights. Manorma Industries delivered excellent financial 7:16 7 minutes, 16 seconds performance in financial year 2525 with all key metrics reflecting operational execution and business momentum. 7:26 7 minutes, 26 seconds Stand alone revenue INR 1357 cr up 76.1% year onear 7:35 7 minutes, 35 seconds driven by volume growth and improved product mix. 7:39 7 minutes, 39 seconds IBITA INR 367.7 cr with IBITA margin of 27.1%. 7:47 7 minutes, 47 seconds Reflecting focused product mix optimation and discipline cost management 7:53 7 minutes, 53 seconds profit after tax INR 233.2 crores translating to a pack margin of 17.2%. 8:02 8 minutes, 2 seconds Operating cash flow INR 259.4 4 cr rupees for the quarter 4 financial year 25 26 8:12 8 minutes, 12 seconds performance our performance of quarter 4 2526 as 8:18 8 minutes, 18 seconds follows standalone revenue in 382.3 cr rupees IATA INR 102.9 cr with a margin of 26.9%. 8:31 8 minutes, 31 seconds Profit after tax INR 59.5 cr translating to a margin of 15.6%. 8:41 8 minutes, 41 seconds Foreign exchange position and mark to market during the quarter due to adverse currency fluctuation resulted in the 8:50 8 minutes, 50 seconds company recognizing a mark to market provision of 17.05 05 cr on state alone 8:57 8 minutes, 57 seconds basis on forward contract enter into accordance with the as per foreign action haging policy 9:04 9 minutes, 4 seconds the cumulative mark to market tourism for the financial aid stand at 23.3 cr 9:11 9 minutes, 11 seconds also recorded foreign accent income 9.47 47 cr during the quarter. Consequently, the net foreign exchange loss for the 9:20 9 minutes, 20 seconds quarter amount to of rupees 7.58 cr on standalone basis. 9:27 9 minutes, 27 seconds Balance sheet and return ratios. The company's standalone balance sheet continues to reflect financial strength and discipline. 9:36 9 minutes, 36 seconds Net depth and equity ratio is 0.38 is to1 as of now 31st March 2026. 9:43 9 minutes, 43 seconds Return on equities 40.3% as 31st March 2026. 9:49 9 minutes, 49 seconds Return on capital employed ROC 33.6% as on 31st March 2026. 9:57 9 minutes, 57 seconds Working capital days also reduced 125 days from financial year 2526 from 131 days in 2425 10:06 10 minutes, 6 seconds reflecting continued focus on working capital efficiency capital allocation and strategic outlook 10:14 10 minutes, 14 seconds our ongoing capacity debut making and expansion along with strategic capex investment across India and Africa we 10:23 10 minutes, 23 seconds are fully aligned with our long-term ambition to our global footprint and strengthen our position in the specific 10:30 10 minutes, 30 seconds fat and market fat and butter market. We will continue to allocate capital with discipline priorizing investment that 10:38 10 minutes, 38 seconds generate high return and strengthen our competitive mode globally. 10:48 10 minutes, 48 seconds That concludes our remarks. We will open the floor for question and answers. Thank you. 10:56 10 minutes, 56 seconds 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 the test on telephone. 11:06 11 minutes, 6 seconds If you wish to remove yourself from the question queue, you may press star and two. 11:12 11 minutes, 12 seconds Participants are requested to use handsets while asking a question. 11:17 11 minutes, 17 seconds Ladies and gentlemen, we will wait for a moment while the question queue assembles. 11:28 11 minutes, 28 seconds The first question is from the line of Mr. Akash from Shahasar Capital. 11:36 11 minutes, 36 seconds Please go ahead. Hello. Yes sir, you are audible. 11:44 11 minutes, 44 seconds Yeah. Hi. Hi. Congrats to the team mana on the fantastic result. So the question that I had was regarding you know uh the processing plant capex that we are doing 11:53 11 minutes, 53 seconds in Burkina Paso. So like what is the capex uh and how how will it what will be the capacity and how will it help us in the margin expansion. 12:05 12 minutes, 5 seconds Hi uh thank you for the question. Uh so the burkina which is a backward integration uh part of the project for 12:13 12 minutes, 13 seconds the company's uh next capex plan. So we are envisaging these expenses or capex 12:20 12 minutes, 20 seconds amount of around 120 odd kores uh towards our burkina far project uh which should be uh eliminating uh our logistic 12:29 12 minutes, 29 seconds cost which is currently uh by uh on the seeds perspective uh going forward it will be uh on the bers perspective which 12:37 12 minutes, 37 seconds is approximately 45 50% uh of the raw material. So accordingly we are going to uh save the logistic cost raised cost on 12:46 12 minutes, 46 seconds our seed import from West African countries and also it uh it is going to improve the efficiency uh and the yield 12:53 12 minutes, 53 seconds format also uh on the butter content. So we are very hopeful of making a sustainable margin and it should reflect 13:02 13 minutes, 2 seconds uh in our uh numbers going forward. 13:07 13 minutes, 7 seconds Okay, that's Thank you. The next question is from 13:16 13 minutes, 16 seconds Akil Parik from 361 Capital. Please go ahead. Hi. 13:20 13 minutes, 20 seconds Hey, thanks for the opportunity and many congratulations on an extremely good set of numbers and one uh kind of standout 13:29 13 minutes, 29 seconds in the result has been your working capital improvement and um competing cash flow generation. Now given that we are going to go in a capex mode again 13:38 13 minutes, 38 seconds for next one two years how do we see this whole uh operating cash flow and uh the cash flow generation and second is 13:46 13 minutes, 46 seconds working capital is is this working capital uh kind of sustainable for next few years or we might see uh some 13:55 13 minutes, 55 seconds pressure basically as we know right yeah that's my first question 14:04 14 minutes, 4 seconds so see The company has delivered a very strong positive operating cash flow also of approximately around 260 crores 14:11 14 minutes, 11 seconds during the year. Uh which is actually a significant achievement and an important milestone for the business. Uh yes we 14:18 14 minutes, 18 seconds are going to spend the capex of around 460 crores over the next two to three years but that will be held in an 14:25 14 minutes, 25 seconds increased manner. So our ongoing capacity which is there are yet to be fully utilized and we expect a better 14:32 14 minutes, 32 seconds operational efficiency in the coming years. So we are not expecting any downward pressure on the margin uh from 14:41 14 minutes, 41 seconds the current level uh and anything adverse which will be you know updating to uh our shareholders accordingly on a 14:48 14 minutes, 48 seconds quartertoarter basis. So we haveed a very uh good uh operating cash flow also 14:55 14 minutes, 55 seconds and the management considered this to be one of the key uh highlights in the performance and we remain confident of 15:02 15 minutes, 2 seconds maintaining our uh this working capital uh days and inventory days which we have reported this quarter. 15:11 15 minutes, 11 seconds Sure that's very good to hear. So we maintain that margin guidance of 25 to 7 F7% and and the cash conversion cycle 15:20 15 minutes, 20 seconds which we clocked in FY26 uh broadly should be in line for next month two years basically. 15:26 15 minutes, 26 seconds Yes. The company aims to maintain uh all the uh financials parameters going forward as well. So any headwinds we 15:34 15 minutes, 34 seconds will be updating you uh on a quartertoquarter basis. As of now we are likely aiming to maintain and then these levels. Sure. 15:43 15 minutes, 43 seconds And second in the growth guidance like how should one look at it like topline growth for next couple of years uh given that the uh capacity additions which 15:52 15 minutes, 52 seconds they're doing and uh margins you have already highlighted but if line growth if you can share some kind of 15:59 15 minutes, 59 seconds uh yes see the outlook for 27 fi7 remains strongly positive on the topline front as well. uh it is you know driven 16:08 16 minutes, 8 seconds clearly by the structural growth uh levers already which are there in the motion. Uh so if we talk about the structural levers there is capacity expansion in terms of the bottlenecking. 16:19 16 minutes, 19 seconds So our existing capacity are in the mode of debottle making for which one plant we already have done the debottle making 16:26 16 minutes, 26 seconds and the output has been increased to 30%. on our 25,000 metric tons and we have been continuously uh increasing the 16:34 16 minutes, 34 seconds value added uh portion on our product mix as well. So overall the financial year 27 is expected to be a very good 16:42 16 minutes, 42 seconds growth year for revenues for the company uh with growth primarily volume driven and some price realization benefit also 16:51 16 minutes, 51 seconds structurally driven by the capacity expansion and also we are diversifying globally also uh getting uh into the 16:58 16 minutes, 58 seconds global market international market also with our increasing value added productivation. So we are very hopeful and confident of having a very good strong growth year for FI27 as well. 17:11 17 minutes, 11 seconds Sure. So just to I mean if you can give a broad range like is it fair to assume 25% plus growth can continue given that 17:18 17 minutes, 18 seconds we have grown at uh almost uh 60% carrier for last three years and now our base is also high. Uh so would 25 30% uh 17:28 17 minutes, 28 seconds would be a right metric in terms of growth rate. See that is the company aim also and we see our capacity also to be 17:36 17 minutes, 36 seconds fully authorized. So the company is totally driven uh by and working very hard to achieve the growth which you 17:42 17 minutes, 42 seconds have mentioned uh currently and we are very uh uh we are very confident on the business lens to achieve that kind of a 17:50 17 minutes, 50 seconds growth given our uh coming capacities uh which will be there. So we are very hopeful and constructive on the growth as well. 18:01 18 minutes, 1 second Sure. And just one last question if I can squeeze in. Uh uh now given that we are doing backward integration in 18:08 18 minutes, 8 seconds Burkina Paso right and uh we we all know uh there there are certain uh political currency and uh those kind of risk 18:15 18 minutes, 15 seconds involved in in Africa. Uh so anything you can share like what are your thoughts on it and uh how are we hedged 18:23 18 minutes, 23 seconds against those kind of risks basically and see we for that uh it's a 18:31 18 minutes, 31 seconds governmentbacked project also because we have signed an MOU memorandum of understanding with the government of Burkina Fazu so anything politically 18:40 18 minutes, 40 seconds will be not affecting the project what we are going to put up there and it is going to uh also you know uh put the 18:47 18 minutes, 47 seconds money into the livelihood of the forest dwellers of West Africa. Even the uh parliaments of the business the 18:56 18 minutes, 56 seconds political uncertainity or insecurity does not affect our operation uh in Africa and it is a governmentbacked 19:03 19 minutes, 3 seconds project for which we have already signed the MOU of government and we are very on it as well. uh we 19:12 19 minutes, 12 seconds have done some meaningful uh bookage and status we have done uh in that uh project as well. 19:22 19 minutes, 22 seconds Sure. Thank you for helpful. Uh uh best wishes for coming to us. Thank you. 19:29 19 minutes, 29 seconds Thank you. The next question is from Mr. 19:32 19 minutes, 32 seconds Bat from Quest Investment Advisor Private Limited. Please go ahead sir. 19:37 19 minutes, 37 seconds Yeah. Congratulation whole monorama team for excellent performance. So man uh just get some sense that this working 19:45 19 minutes, 45 seconds capital uh despite our inventory has gone up reasonably high. So may I have 19:53 19 minutes, 53 seconds some idea whether it's a finished goods or uh raw material and how do we should look despite we have generated good uh 20:02 20 minutes, 2 seconds free cash flow. So how should we look at in future and in going 20:09 20 minutes, 9 seconds so basically it's a 45 to 50% is the raw material cost in our business and whatever inventory we report in the 20:16 20 minutes, 16 seconds current fiscal year towards the end of the balance sheet year is the base to generate the revenue of the coming year. 20:23 20 minutes, 23 seconds So currently the company's total inventory is stood at approximately 710 crores. The inventory is well aligned 20:30 20 minutes, 30 seconds with the scale of operations and it supports the integrated global supply chain and expanding business requirements. So the breakup of the 20:38 20 minutes, 38 seconds inventory is out of this 710 uh kores of inventory raw material inventory is around 420 crores. The finished goods 20:46 20 minutes, 46 seconds inventories are around 260 crores. the others co- products and VIP uh the bug in progress products are around 30 uh 20:55 20 minutes, 55 seconds crores. So this is the breakup of our inventory levels. Okay, great. 21:00 21 minutes uh sorry I missed uh your earlier remark I joined little later that uh this capex that around 400 plus color that we have 21:08 21 minutes, 8 seconds announced is if you can give little broader color and how do we think that can I mean help us in improving the top 21:17 21 minutes, 17 seconds line as well as aa side if you can give say more color. 21:24 21 minutes, 24 seconds So sir we have been making progress on this 460 crores. So if I can explain uh for this projects we already have spent 21:32 21 minutes, 32 seconds around 52 crores out of this 16 crores is the work in progress uh towards capex 21:39 21 minutes, 39 seconds investment and we already have acquired the land also uh for Indian uh plants. 21:46 21 minutes, 46 seconds uh the project one is a forward integration process uh which includes the CBA plant and the solvent 21:52 21 minutes, 52 seconds fractionation 3 plant of 75,000 tons and this will convert our soft fractions 22:00 22 minutes oline into the hard fractions. So this is the one project which will include the CBA plant vaccination plant and also 22:07 22 minutes, 7 seconds the refinary plant of 90,000 ton metric ton peranom. 22:11 22 minutes, 11 seconds So this forward integration if you can give sorry yeah sorry you are saying please continue 22:19 22 minutes, 19 seconds because this projects are at different stage of implementation and uh ramp up and the company is focused on 22:27 22 minutes, 27 seconds maintaining the recipient capital allocation also uh because we have given our earlier communication towards we are expecting around six uh x more than six 22:36 22 minutes, 36 seconds less of asset turn on our forward integration projects which is around 330 40 cr of the total capex amount 22:43 22 minutes, 43 seconds and that uh forward integration is what you said something I missed it sorry 22:50 22 minutes, 50 seconds it's a CBA source plant and the solvent fractionation free plant along with the refinary plant 22:57 22 minutes, 57 seconds okay and so how that there on our outcome also if you want to have more details on it you can go through the uh presentation uploaded uh 23:06 23 minutes, 6 seconds with respect to the capex announced also okay and this forward indication is a more value equity or uh in AITA term or 23:14 23 minutes, 14 seconds if you can when it's a very high I mean asset turnover. So how do we think about it? 23:23 23 minutes, 23 seconds So the uh idea and the intention and the aim of course is to create a better uh creative uh uh numbers in 23:33 23 minutes, 33 seconds terms of top lines and margins. uh we can you know uh comment you that uh it will be having the same uh kind of uh 23:41 23 minutes, 41 seconds potential margins in the business which we are reporting currently or even when even it could be potentially better uh 23:48 23 minutes, 48 seconds once we ramp up get into a fully optimized products get into a better uh product mix as well. So that we are 23:55 23 minutes, 55 seconds going to communicate you uh and update you quarter to quarter uh because these projects are been set up in a phase 24:02 24 minutes, 2 seconds manner. So but this projects what we are setting up are going to be giving a a good uh credit on terms of value margins and also top lines as well. 24:13 24 minutes, 13 seconds Okay great. And when do we expect that uh to commission those uh phase manor I mean project? 24:21 24 minutes, 21 seconds So all our projects are be targeted to be commissioned uh uh by the year uh 28 financial year 28 uh in that particular. 24:33 24 minutes, 33 seconds So that is how we are targeting it to spend. It is like two to three year window uh we are targeting to complete it. 24:42 24 minutes, 42 seconds And is it fair understanding? Thank you sir. If you can request you to come in back. 24:46 24 minutes, 46 seconds I just want to understand the cash flow part of it. I mean funding part. 25:00 25 minutes Yeah. Mr. Please come. Yeah. Yeah. Please go ahead. Yes. 25:10 25 minutes, 10 seconds So from a financial strength perspective, yes, we have a free cash FD of around30 crores. We already have 25:18 25 minutes, 18 seconds spent 52 crores on the project and we are providing as of now the internal funding support for the planned 25:25 25 minutes, 25 seconds expansion program. So uh anything if we are targeting for any external financing, we will update you 25:32 25 minutes, 32 seconds accordingly. But as of now we have started funding our project through internal approval. 25:38 25 minutes, 38 seconds Thank you great for equity. 25:42 25 minutes, 42 seconds Okay. Thank you. Thank you very much for and thank you. Thank you sir. 25:48 25 minutes, 48 seconds The next question is from Kushell Sha from Nexus Equity Growth Front. Please go ahead. 25:54 25 minutes, 54 seconds Hello. Yeah. Uh good afternoon T. So uh I mean uh uh congratulations for the wonderful set of numbers uh once again. 26:02 26 minutes, 2 seconds Uh so uh there are two question. The first one is on the uh uh the growth part. So basically ma'am you just 26:10 26 minutes, 10 seconds mentioned you know that uh we do have a capex program which required across next two three years. So of course FI27 26:17 26 minutes, 17 seconds growth will be taken care of uh with the current deportation capacity which we have increased. So uh what about m FI 28 26:26 26 minutes, 26 seconds because as I can understand this entire cap X will be commissioned together. So the so the I mean the growth of I mean 26:34 26 minutes, 34 seconds the growth for the business beyond sp 27. So uh from where we can expect the growth to come for f 28 because capex 26:43 26 minutes, 43 seconds will commission f28 you will witness in f 29 and 30 but for f28 just wanted to understand uh how they plan to grow. 26:52 26 minutes, 52 seconds So first of all you need to understand company from a long-term perspective not a quarterto quarter thing. It's not a thing that there will be there. Of 27:00 27 minutes course the company is very poised and fuel for the growth given the capacity uh we have existing capacity are on a utilization level of 85% of 40,000 tons. 27:12 27 minutes, 12 seconds We have said that we are deep water making capacity on 40,000 tons which will take our capacity to 52,000 tons uh 27:19 27 minutes, 19 seconds peranom this is the input capacity we are upgrading our value added product mix also. So currently uh uh we see uh 27:27 27 minutes, 27 seconds the current fiscal year and the coming fiscal year are very good for the growth given our utilization is still uh yet to 27:34 27 minutes, 34 seconds be uh there on an optimized level and we expect a price realization growth also of 5 10%. So if you calculate all the 27:42 27 minutes, 42 seconds metrics so there is a clear output which is visible of a 30% uh volume accative growth and 5 10% could be our uh price 27:52 27 minutes, 52 seconds relation benefit also on top of that we are yet to utilize our 15% capacity of existing plant as well. So the math is 28:00 28 minutes clearly visible for you to calculate how the turnover will be looking in the next two years as well along with our further capex plans. 28:09 28 minutes, 9 seconds Okay. And uh ma'am you know I think you know I mean uh we do I mean we do have significant portion in export. So on the 28:16 28 minutes, 16 seconds recent West Asia war I mean do we I mean do we face any impact you know because uh on the side of shipments logistics 28:24 28 minutes, 24 seconds etc. So uh what is the situation over there? 28:30 28 minutes, 30 seconds So this is you are talking uh from the war stand point of view. Yeah. Yeah. Yeah. 28:41 28 minutes, 41 seconds Yes ma'am. From the wash end of Okay. So the ongoing ongoing geopolitical tension including Iran, US, 28:49 28 minutes, 49 seconds Russia, Ukraine or some you know the tariff uh see are expected to have a nearterm indirect impact not only on our 28:58 28 minutes, 58 seconds industry but a broader industry environment as a whole. It will be primarily through higher energy prices 29:05 29 minutes, 5 seconds or maybe elevated freight cost and currency volatility. But however from a business fundamental perspective on 29:12 29 minutes, 12 seconds Manurma industries, the company remains largely insulated from any direct substantial impact its key raw materials 29:20 29 minutes, 20 seconds which we are importing or having indigenous like s mango or shia are not sourced from the affected regions. The 29:28 29 minutes, 28 seconds company also has a very minimal revenue exposure to this job office. Therefore, like for example, uh there may be some 29:36 29 minutes, 36 seconds short-term macro pressure uh such as some input cost, impression on freight cost or uh anything but that does not 29:45 29 minutes, 45 seconds materally impact the company's core business model or a long-term growth trajectory. So there could be some minor 29:52 29 minutes, 52 seconds impact maybe uh here and there but we are despite all the headwinds which is there on a geopolitical tension of 30:00 30 minutes Russia Ukraine war or US Iran conflict the company hased a sustainable margin 30:07 30 minutes, 7 seconds uh despite all the headwinds and we are going to uh be an EPN to maintain and sustain this level also. Yeah ma'am I 30:15 30 minutes, 15 seconds mean wonderful to hear that and ma'am on the uh uh I mean on the capex side I mean uh just referring to your previous participants uh conversation. So as you 30:24 30 minutes, 24 seconds just mentioned that you know the capex uh plan and the funding mix. So you have I mean you have entered across roughly around 120 crores every year along with 30:33 30 minutes, 33 seconds that you have debt uh debt available also. So what about the QIP uh which we have taken the approval of up to 500 30:40 30 minutes, 40 seconds crores. So I mean how exactly do you plan to fund the entire capex? 30:47 30 minutes, 47 seconds So basically the funding of the capex is one thing. The QIP resolution is another another thing. It's not it will be a not 30:56 30 minutes, 56 seconds very it will give you a very true thing to you know combine both these things. 31:01 31 minutes, 1 second So capex is one thing uh which we already have started doing it through our internal approvals. We have good internal cash flows as well. And in 31:10 31 minutes, 10 seconds terms of QIP, so this is an approved enabling resolution in relation it could be a potential fund raise uh maybe 31:18 31 minutes, 18 seconds through a permit and instruments and we are currently evaluating various options and we can you know make appropriate 31:25 31 minutes, 25 seconds disclosure in accordance with the applicable law as and when any specific transaction related parameters which 31:32 31 minutes, 32 seconds including structure, size or timings or other terms are finalized. So we will keep updating you on QIP as well. Okay papa and this last question. 31:41 31 minutes, 41 seconds Thank you sir Kusha please uh back into the queue dies and central ma'am in order to ensure that the management is able to address questions from all 31:50 31 minutes, 50 seconds participants please limit your questions to two per participant should you have a follow-up question we would request you 31:56 31 minutes, 56 seconds to rejoin the queue we have the next question from Mr. Mr. 32:01 32 minutes, 1 second Hershel Soleni from Equitric Capital please go ahead. 32:06 32 minutes, 6 seconds Hi team good afternoon I had three questions. Uh first if you can help me with what was the percentage of raw 32:13 32 minutes, 13 seconds material we purchased from Banorama Africa for FI26 and FI 27 because for 27 32:21 32 minutes, 21 seconds we would have already bought our raw materials. 32:30 32 minutes, 30 seconds So it's like uh you are asking from the west Africa how much she nuts we have sourced or how the breakup is requested 32:38 32 minutes, 38 seconds by you. If you can clear your question please. 32:41 32 minutes, 41 seconds Yeah the promoter entity which is there Manorama Africa limited what is the percentage of total RN we have bought 32:48 32 minutes, 48 seconds because last year it was 60%. So for 26 and 27 I want to understand. 32:54 32 minutes, 54 seconds So uh around 20 to 25% uh we bought the raw material from Anurma Africa Limited this financial year 25 26 and for 27 what would it be? 33:07 33 minutes, 7 seconds Uh it would be depends on the Mr. B will be same uh line of uh procurement will be continue. 33:15 33 minutes, 15 seconds Okay understood and CFO sir uh Mr. One question to you as well. Uh our gross 33:21 33 minutes, 21 seconds margins have fallen from 48 to 43% on a console basis quarteron quarter. Whereas 33:29 33 minutes, 29 seconds uh on a standalone basis they have remained the same on a QQ basis. So if you can highlight why this difference is 33:36 33 minutes, 36 seconds arising there's a 5% difference on a console basis. 33:43 33 minutes, 43 seconds So if you see the gross margin in console basis. So this all subsidiary company just we are newly incorporated 33:50 33 minutes, 50 seconds uh this financial year and uh we are going to uh streamline all this uh operation. So companies expanded to 33:58 33 minutes, 58 seconds global footprint with established nine subsidiaries across different countries and marking important strategic step towards building a diversified 34:06 34 minutes, 6 seconds international presence as this is the first year of operation for most of these entities. Initial setup related to 34:14 34 minutes, 14 seconds cost including employee cost, establishment expenses and other operating overheads have been higher which has temporarily impacted 34:22 34 minutes, 22 seconds consolidated margin. However, these costs are largely one-time or transitional in nature and are expected to normalize as operation scale up. This 34:30 34 minutes, 30 seconds investment phase was necessary to support long-term business expansion. 34:36 34 minutes, 36 seconds So, I get your point on the operating cost. But why are the gross gross margins impacted because the employee 34:42 34 minutes, 42 seconds cost and operating cost would come below gross margins? This is the primary influenced by the freight cost and the 34:50 34 minutes, 50 seconds other detect production cost uh which we are making the product and this is just 34:57 34 minutes, 57 seconds started the operation to subsidiary companies. So going forward we see uh good uh number in also subsidiaries. So 35:06 35 minutes, 6 seconds the chemical input cost and uh other product are increase the cost of production. So we are be confident to uh 35:15 35 minutes, 15 seconds maintain going forward all subsidiary companies also healthy uh financials as well and and just to add to the point 35:23 35 minutes, 23 seconds sir has made anything between the 45 to 50% level of gross margin is normal in the parlance of the business model. This 35:32 35 minutes, 32 seconds we have reflected uh and emphasized on the past as well. So anything between this range is considered to be a normal 35:39 35 minutes, 39 seconds gross profit margin from a company's point of view. 35:44 35 minutes, 44 seconds Got it ma'am. I'll take it offline. Uh I have one more question. We uh had posted a revised results. So what was the error 35:53 35 minutes, 53 seconds and why did we have to revise our results if you can highlight? 35:57 35 minutes, 57 seconds Yeah, this see sir this revised financial statement file has been uploaded inadvertently and is been submitted to ensure accuracy and 36:06 36 minutes, 6 seconds completeness of the reported information. So the revision is purely corrective in nature. So the inadumentaryally because of the 36:14 36 minutes, 14 seconds technical issue the wrong file was uploaded earlier but since company remains committed to maintaining high standards of transparency and primary 36:22 36 minutes, 22 seconds disclosure that is why we have submitted the revised file uh soonest once we have uploaded the uh the uh technically wrong 36:30 36 minutes, 30 seconds file uh in the stock exchange. But for any uh financial correctness of the matter, you can please consider the revised file financials and those 36:39 36 minutes, 39 seconds numbers uh for your uh further questions please. 36:44 36 minutes, 44 seconds Uh understood. Yeah, those were my questions. Thank you for answering. 36:48 36 minutes, 48 seconds Thank you. The next question is from the line of ma from my thought. Please go ahead. 36:56 36 minutes, 56 seconds Uh my first question is uh regarding the total fractionation output for FI26 and in that if you could share the 37:05 37 minutes, 5 seconds steering and oline split up that would also help. 37:12 37 minutes, 12 seconds So for the vaccination output around 85% uh stands the utilization on portfolio 37:18 37 minutes, 18 seconds basis uh out of which we can just share you the volume for our products main value added product of steering and CBE 37:26 37 minutes, 26 seconds uh steering volume was around 8,000 reported on a full year metric t around and CBE volume has been reported around 37:35 37 minutes, 35 seconds 7,500 metric ton per full year and ma'am this 85% % utilization 37:42 37 minutes, 42 seconds includes the debottleneck capacity, right? 37:45 37 minutes, 45 seconds No, this doesn't include our debottlenecking facility. 37:49 37 minutes, 49 seconds Okay. And uh regarding the arrangement with tech uh in Brazil, I just want to 37:56 37 minutes, 56 seconds understand what is the like commercial agreement? Is it like a royalty or revenue share model or some tolling fee? 38:04 38 minutes, 4 seconds Could you just throw some light on that? No, it's a uh cost uh model thing there. 38:10 38 minutes, 10 seconds uh it's a processing cost to which the company needs to pay them pro processing of the person of our goods. So there is 38:18 38 minutes, 18 seconds no uh agreement in terms of profit sharing which is there with the tech agreement. It's just the processing facility which is there. 38:27 38 minutes, 27 seconds Okay. So just the processing cost. Yes, just the processing cost. 38:33 38 minutes, 33 seconds Okay. And in Q3 the contribution was minimal is what uh you had said. So it maybe for FY26 what is the actual volume in Dean? 38:46 38 minutes, 46 seconds So see we have just started the decal operation. It has been the first quarter we can say or the first year of operation in uh the Brazil uh through 38:55 38 minutes, 55 seconds our own processing facility. So we are still scaling up but a better number guidance maybe we can give you going 39:01 39 minutes, 1 second forward of this but this is just it's just that we have just started with our operations currently. Okay. Okay. Ma'am, 39:09 39 minutes, 9 seconds I'll follow this next question or something. Thank you. Thank you. 39:15 39 minutes, 15 seconds A reminder to all participants, please limit your question to two per participant. Should we have a follow-up question, we would request you to rejoin 39:23 39 minutes, 23 seconds the queue. The next question is from Kumar Somia from Ambit Capital. Please go ahead. 39:37 39 minutes, 37 seconds The line is open. Yes. Am I audible? Hello. Yes, you are. 39:44 39 minutes, 44 seconds Yes. Hi. Good. Good afternoon, sir. So, my question is on the decel. Uh, do we pay the entire year's processing cost up 39:52 39 minutes, 52 seconds front at the start of the year or we pay it as we process it? 39:57 39 minutes, 57 seconds So, we pay as we process as per metric t. For just for give you example, if we are processing 100 ton per month or per 40:05 40 minutes, 5 seconds day. So we are going to pay them accordingly post the processing. So there is no cost which is uh uh uploaded up front on those tail uh arrangement. 40:16 40 minutes, 16 seconds Okay. Okay. Because subsidiary if you see this quarter we had 9 crores of revenue against which we had 5 crores of loss. So I was assuming that 14 crores delta is coming from decel. 40:27 40 minutes, 27 seconds No we have just started the minimum volume in uh Latin America for our own facility. So largely those things are 40:35 40 minutes, 35 seconds there. Uh we are stabilizing in terms of operational cost as well. So maybe the correct way will be to look uh on the uh 40:43 40 minutes, 43 seconds console level in terms of latam and other subsidiaries in the coming year. 40:48 40 minutes, 48 seconds Okay. In the subsequent quarter things will start to cover up as we ramp up. Yeah. Is that right? That is yeah that is right. 40:56 40 minutes, 56 seconds Thank you. Thank you. And secondly uh on our long-term goals uh the plans that we have say more than 3500 crores of 41:04 41 minutes, 4 seconds revenue by FI30 uh with the upcoming capacity. So are those plans on track and are we confident in achieving those 41:12 41 minutes, 12 seconds revenue numbers whatever we are guiding for the long-term basis? 41:16 41 minutes, 16 seconds Yes. So definitely we are very confident on whatever plans we have going forward in terms of our keex outline because if 41:23 41 minutes, 23 seconds you see we are adding another 75,000 of our solvent vaccination capacity uh and along with that we are also putting a 41:31 41 minutes, 31 seconds backward integration process. So we are uh visionary doing this because we want a very integrated value chain where we 41:39 41 minutes, 39 seconds just just does not scale up our revenue terms but we have a very healthy operational efficiency as well which 41:46 41 minutes, 46 seconds should result in both top line and bottom line as well. Uh the internal our target is very strong on this numbers 41:53 41 minutes, 53 seconds but as a guidance whatever we have given in the past we are still very confident uh on achieving that and the past 42:00 42 minutes records with the past records we are very uh like confident to uh maintain and do that. And just to 42:10 42 minutes, 10 seconds add uh on one more thing uh that u uh the company has done this year like we 42:18 42 minutes, 18 seconds are targeting a capex of 460 crores uh to be spent on two to three years but if you see today the reported financials 42:26 42 minutes, 26 seconds FI26 we have achieved a significant financial milestone underscoring the strength and 42:34 42 minutes, 34 seconds scalability of his business model because the annual cash pro profit profits uh which include our patent 42:41 42 minutes, 41 seconds depreciations to that 258.77 crores which has already exceeded our gross block of 250 crores. So this 42:50 42 minutes, 50 seconds indicates us you know capital efficiency what the company can do going forward with the planned section. 42:58 42 minutes, 58 seconds So working capital improvement was really commendable. 43:02 43 minutes, 2 seconds Thank you so much. that has been the stretch uh on working uh uh cash flow as well and the company has done uh uh 43:10 43 minutes, 10 seconds meaningful improvement in that parliament as well. 43:15 43 minutes, 15 seconds Just one last question from my side uh with the backward integration as in the processing facility in Africa does that 43:22 43 minutes, 22 seconds improve the process yield of those seeds because you'll be immediately processing it rather than bringing it to India. Is that understanding right? 43:31 43 minutes, 31 seconds Yeah, it should uh improve uh there when we are crushing and processing these seeds immediately. It will definitely 43:38 43 minutes, 38 seconds have a better uh uh yield compared to what we need what we currently process after 60 days. 43:46 43 minutes, 46 seconds Yeah. So the fat output would be better than what we have today. 43:50 43 minutes, 50 seconds Yes. Along with that we are also going to save on the logistic cost as well. So that is a very uh uh good scenario to 43:58 43 minutes, 58 seconds set to having a processing facility in Burkina also for this seed. 44:03 44 minutes, 3 seconds Yeah. But then while we'll have to bring it to India, right? 44:08 44 minutes, 8 seconds Of course the butter we will be bringing to India for further value addition sources here like vaccination and everything. So the first part of the 44:15 44 minutes, 15 seconds seeds will be done there only and our current facility here India can also optimize our plant on the other Indian 44:23 44 minutes, 23 seconds exotic seeds which are tal and mango. So it is it is a dual benefit which we are putting a bkina plasu plant there while 44:30 44 minutes, 30 seconds first it will be a very helpfully nature for shia nut once we do there and other the existing processing facility which 44:37 44 minutes, 37 seconds we have of 90,000 tons of solvent extraction facility here in India will be used and will be a better optimized 44:44 44 minutes, 44 seconds for Indian exotic seeds like silent mango kernels and other yeah from what I understand you mean key the freight cost as a percentage of raw 44:53 44 minutes, 53 seconds material when it was seed Now it will be oil so that will be better now. Yes. Thank you. 45:01 45 minutes, 1 second Along with the quality. Yeah. Thank you. Thank you. Thank you sir. 45:08 45 minutes, 8 seconds Participants we request you to please limit your questions to per participant. 45:13 45 minutes, 13 seconds We have the next question from Mr. Janam Dooshi from Chris PMS. Please go ahead. 45:18 45 minutes, 18 seconds Uh yeah good afternoon. So uh just two things. uh one is by the end of FY26 we have added 7,500 tons capacity to the 45:27 45 minutes, 27 seconds sovereign vaccination plant. So by when are we expecting the balance 4,500 tons to be added and what is the utilization 45:35 45 minutes, 35 seconds we are expecting for this incremental 12,000 both for this year as well as the next year uh just to understand on that. Yeah. 45:46 45 minutes, 46 seconds Uh yes, we are expecting that also to be streamlined in this financial only. We will update you once that also has been 45:53 45 minutes, 53 seconds done. And utilization we are expecting of 52,000 tons of around 85 90% uh for this fiscal year as well. So we will 46:02 46 minutes, 2 seconds update you what utilization we have reached maybe end of this year with the total uh increased capacity of 52,000 taken. 46:11 46 minutes, 11 seconds Got it. Got it. and uh some data points like just wanted to understand uh in terms of value uh what is the CB 46:19 46 minutes, 19 seconds contribution to the total revenues and what is the total value added product mix to our total sales. So 46:29 46 minutes, 29 seconds so CB has contributed around 30% uh to our top line along with our value added 46:36 46 minutes, 36 seconds product sharing it is around 70 75% uh to it. So if you see 30% uh today 46:44 46 minutes, 44 seconds what we have done with CD it was 10% 2 years ago. So the company has also done a very remarkable improvement uh on 46:52 46 minutes, 52 seconds improving the product mix for our speciality fats and butters as well. 46:57 46 minutes, 57 seconds Great. Great. And just the last thing uh what has been the total volume growth for us like similar to last year. 47:06 47 minutes, 6 seconds So volume growth this financial year 25 23 around uh 80 to 90%. And uh 5 to 10% 47:13 47 minutes, 13 seconds is the price growth approximately. 47:19 47 minutes, 19 seconds So thank you. Thank you so much. That was from my Thank you. The next question is from Shikica Ma from Indo Alps wealth. Please go ahead. 47:32 47 minutes, 32 seconds Hi. Uh I have one comment and two questions. 47:36 47 minutes, 36 seconds One comment about uh why we are reporting only the standalone results when it comes to the newspaper release or the presentation. 47:47 47 minutes, 47 seconds Why why don't we give the consolidated picture? Is it because the consolidated number is looking weaker than the standalone number? 47:57 47 minutes, 57 seconds So s we just want to clarify that in the newspaper we give both standalone and console figures. It's not that because 48:05 48 minutes, 5 seconds it is a uh regulatory requirement which you need to follow for both standalone and consolidated numbers. There is no 48:13 48 minutes, 13 seconds standalone number only which is reported in the uh which is related to the newspaper publication and for press 48:20 48 minutes, 20 seconds release there is no regulatory requirement which is there to put up a consolidated number because if you see in the past the subsidiary has been 48:28 48 minutes, 28 seconds recently formed from company's point of view this has been in the first year of operation. So maybe coming forward we 48:36 48 minutes, 36 seconds can you know start a practice of giving a consolidated number in uh in press release as well because this has been 48:43 48 minutes, 43 seconds our past practices of giving a standalone number on press release because there's no regulatory requirement which is there to give 48:51 48 minutes, 51 seconds consolidated number on press release but in newspaper there is fourth reported numbers. 48:57 48 minutes, 57 seconds So in the seven audited African subsidies we posted a 13 and a half crore losses for FI26 out of which almost 6 crore came in Q4 itself. 49:08 49 minutes, 8 seconds Is this implying a loss run rate that has doubled in the final quarter and you know you've just announced C50 crores in 49:15 49 minutes, 15 seconds Burkina Faso. So can you tell us for FI26 the subsidy loss is coming because 49:22 49 minutes, 22 seconds of what? Is it the startup cost? Is it the forex translation loss or is it the operating losses in the trading P&L on these entities? 49:33 49 minutes, 33 seconds Uh we have already tried to answer this question in our earlier which was raised but we are going to repeat the answer 49:40 49 minutes, 40 seconds for you as well. The company has expanded uh it subsidiaries in nine uh geography. We are running a nine 49:49 49 minutes, 49 seconds subsidiaries which the current fiscal FI26 has been the first year of our operation and it is very diversified not 49:57 49 minutes, 57 seconds only restricted to West African countries but we have our operation in Latin region as well and other geographies as well. Because this year 50:06 50 minutes, 6 seconds has been first year of our operation. Uh there has been a you know initial setup related cost, operational costs are there, employee cost are there, 50:14 50 minutes, 14 seconds establishment expenses are there, other operating overheads are also there. So this when once you start the company you 50:22 50 minutes, 22 seconds have to take the uh this operational cost which is there going forward once you see this numbers will be stabilized 50:29 50 minutes, 29 seconds and this is kind of a nature of one time and transitional in nature. So there is not something that has been growing in terms of losses. This you need to understand sir. 50:40 50 minutes, 40 seconds Okay. Because in the end the consolidated EPS has grown by only 6%. 50:45 50 minutes, 45 seconds Compared to almost more than 150% growth that we saw in the previous three quarters. 50:51 50 minutes, 51 seconds That is right. But you have a have to see on a console level uh also including a standalone. If you only talk about consolidated balance sheet, the 50:59 50 minutes, 59 seconds consolidated VA margin level is around 26% compared to 27% in stand alone. The company is doing fairly well on terms of 51:08 51 minutes, 8 seconds both. But if you see, we have to bear the expenses cost to set up our companies there. So that is the uh understanding we also expect our you 51:16 51 minutes, 16 seconds know shareholders to have once we are uh doing this. 51:20 51 minutes, 20 seconds Yeah. as long as it is onetime expense and you know you believe that the margins will come back it seems good. Uh the other question that I had was about 51:30 51 minutes, 30 seconds the 23.3 cr cumulative month-to-month hit on the forwards in FI26. You have a 51:38 51 minutes, 38 seconds 57% export revenue. So what is the hedge ratio policy and has it been recalibrated after this year's experience? 51:49 51 minutes, 49 seconds Because see these are the scenario which is there for a time. We cannot say that this will be sustained for a lifetime 51:57 51 minutes, 57 seconds but yes we follow a prudent and structured foreign exchange risk management policy uh which uh to you 52:04 52 minutes, 4 seconds know min minimize the impact of currency volatility on our earnings and cash flow. So around 60% of our company's net 52:12 52 minutes, 12 seconds foreign exchange is currently hedged through forward contracts. uh it also provide earning visibility and 52:19 52 minutes, 19 seconds protecting against any adverse currency movements for but for the remaining unhed 40% exposure the company retains 52:26 52 minutes, 26 seconds the flexibility to benefit from any federal movement which can also be there in the currency rates going forward. So 52:34 52 minutes, 34 seconds that is the practice which company do but it doesn't harm uh the company's core level of business uh in terms of 52:41 52 minutes, 41 seconds that but for anything which is there on currency level we are having a very prudent risk management policy which 52:48 52 minutes, 48 seconds covers both and protects us uh on any volatility and we can also get benefit out of our unhedged exposure which is 52:57 52 minutes, 57 seconds there because we have a natural hedge also in terms of import and export. 53:04 53 minutes, 4 seconds Okay. Thank you. Thank you sir. 53:09 53 minutes, 9 seconds The next question is from Koshikam from Ashika group. Please go ahead. 53:15 53 minutes, 15 seconds Uh hi sir. Uh I just wanted to understand couple of things. Uh most of my questions got answered but uh yeah we 53:23 53 minutes, 23 seconds did uh emptying right. So currently our capacity should be around almost around 52,000 megat tons. In the presentation we mentioned it is 57,500. 53:34 53 minutes, 34 seconds Can I understand what's the reason? 53:37 53 minutes, 37 seconds Yes. To give you a better clarification of this we have two solvent vaccination plants. Solvent vaccination one plant is 53:44 53 minutes, 44 seconds of 15,000 tons. Uh solvent vaccination two plant is of 25,000 tons. So the debt 53:51 53 minutes, 51 seconds making of 30% has been done on 25,000 scorpant vaccination plant. So that is how the result is total vaccination is 47500. 54:02 54 minutes, 2 seconds Got it. Got it. Got it. So then the new making of addition will not be any cost. There is no any cost. Okay. 54:13 54 minutes, 13 seconds Not much. That is a plant and it took 10 crores of cost which is there for both. 54:18 54 minutes, 18 seconds Perfect. Perfect. Perfect. And uh now can I understand one more thing like in the meanwhile of the conversation only you mentioned that we will be doing uh a 54:27 54 minutes, 27 seconds volume growth of 20% to 30% plus and the price also will be high by uh will be 54:35 54 minutes, 35 seconds hiked by another 5 percentage that means that uh for the next year when it comes to FI 27 which is a current running year 54:42 54 minutes, 42 seconds uh the run rate should be very good uh it's what you are clearly mentioning can I understand on this uh what kind kind 54:49 54 minutes, 49 seconds of uh volumes will be returned or like not volumes but at least fractionation how much utilization that you are thinking in this uh financial year for 54:58 54 minutes, 58 seconds getting something we are targeting and aiming to utilize around 85 90% of our 85% of plant on our 55:06 55 minutes, 6 seconds 52,000 tons full capacity. So that is the kind of utilization we are targeting for this fiscal year should be around 55:15 55 minutes, 15 seconds 80% is what we mentioning that means that is 416 talking yes and then we will update you quarter 55:23 55 minutes, 23 seconds to quarter how has been the progress on it perfect and uh uh just for a clarity 55:29 55 minutes, 29 seconds purpose only I understand this closely by looking at from so long uh cocoa prices is no relation with uh are CBE 55:39 55 minutes, 39 seconds prices but still in this recent quarter we have a margin that I understand that it is coming through uh the African 55:47 55 minutes, 47 seconds companies and the uh set offs uh is it going back to normalization situations can I understand it will go back to 27 55:55 55 minutes, 55 seconds 28 or like 25 to 30% see we always have guided on our sustainable margins range earlier which 56:04 56 minutes, 4 seconds was around 25 to 27 the company is well within that range even in the console 56:11 56 minutes, 11 seconds level which we have reported 26% of IBITA margin there also. So there is no significant margin dip which we the 56:20 56 minutes, 20 seconds company has reported be it on console level or be it on standalone number there could be a minor range which you 56:27 56 minutes, 27 seconds have to take into consideration of around 45 to 50% on gross margin level and 25 to 27% on IITA level. This has 56:36 56 minutes, 36 seconds been the management stance uh in our various past track records for our guidance purpose. So anything well within this range should be considered 56:45 56 minutes, 45 seconds normally from a business point of view and of course we are there working on many levers to improve the margins going forward but then we will update you once we have have the visibility of the same. 56:56 56 minutes, 56 seconds Okay. And last question from Thank you sir. Mr. Wing we will request we will request you to come in the queue sir. Thank you. 57:04 57 minutes, 4 seconds Thank you. The next question is from Mr. 57:06 57 minutes, 6 seconds Shuman Kumar from Motila Los. Please go ahead. 57:10 57 minutes, 10 seconds Yeah. Hi. Uh so my question is uh for FY26 uh we have seen a 230 Ws margin 57:16 57 minutes, 16 seconds expansion. So is this all because of uh better uh product mix value added 57:22 57 minutes, 22 seconds product mix or uh efficiency of the manufacturing plant and mix of both? 57:30 57 minutes, 30 seconds Thank you for the question. uh to answer it yes it is a mix of both uh we have if you see our value added product mix in 57:38 57 minutes, 38 seconds terms of CBE was around 10% one two years back it is now 30% today so that also has 57:46 57 minutes, 46 seconds resulted in the improved uh metrics on our financial and also the higher utilization of our plant has resulted 57:53 57 minutes, 53 seconds into this. So there is the combination of all practices which is been uh attributing to these levels. 58:01 58 minutes, 1 second Okay. And one suggestion can we can we include in our PPT OE or oil extraction ratio. Okay. I have seen all the palm oil company used to show that number. 58:15 58 minutes, 15 seconds Oh sorry oil extraction extraction. Yeah. OE. OER. 58:20 58 minutes, 20 seconds OEER. Okay. We will see this internally to see what is OE and we will take the actions accordingly as per company's policy. 58:29 58 minutes, 29 seconds Okay. Thank you. Thank you. Thank you sir. 58:31 58 minutes, 31 seconds Thank you. The next question is from Tiban Stu from Fentrust Capital. Please go ahead. 58:42 58 minutes, 42 seconds Thank you for the opportunity and congratulations on a great set of numbers. So most of my questions have already been answered but I just wanted 58:51 58 minutes, 51 seconds to get clarity on the margin side. So you mentioned that 25 to 25 7% is a 58:58 58 minutes, 58 seconds sustainable margin going ahead. So uh is it a yearly uh guidance or is a quarter to quarter? 59:06 59 minutes, 6 seconds So we from business point of view we will request all our shareholders. Of course we understand that you have a quarterly metrics to you know compare 59:14 59 minutes, 14 seconds and uh do it but if from our side we try to focus on our yearly metrics that is there we try to maintain on quarterto 59:23 59 minutes, 23 seconds quarter basis but whatever guidance we try to give we will request our shareholders to take on year-on-year basis. 59:31 59 minutes, 31 seconds Okay. Thank you ma'am. and also uh the remaining 4,500 metric and devoting is expected to be uh 59:40 59 minutes, 40 seconds happening in this quarter or the coming quarters going ahead. 59:44 59 minutes, 44 seconds That is under way sir. Uh once we have implemented that then we will you know share the disclosure of that but that is 59:51 59 minutes, 51 seconds under way of doing it. We will uh update you once it is done. 59:57 59 minutes, 57 seconds Okay. Just the last question ma'am. Uh what is the Middle East uh exposure that you had mentioned I missed that uh in 1:00:04 1 hour, 4 seconds the so exposure only 2 to 3% of total uh revenue. 1:00:14 1 hour, 14 seconds Okay. Thank you so much and all the best. Thank you sir. 1:00:19 1 hour, 19 seconds Thank you ladies and gentlemen. Due to the due to time constant this will be the last question for today. I now hand the 1:00:27 1 hour, 27 seconds conference over to management for closing comments. Over to you. 1:00:40 1 hour, 40 seconds My dear uh friends and my stakeholders, on behalf of the entire management team, I would like to sincerely thank all 1:00:48 1 hour, 48 seconds participants for joining Manorama Industries Q4 and financial year 2026 earnings conference forum. 1:00:57 1 hour, 57 seconds As we all know business is business and there is always a risk but our last many years of performance is proven and is on your record. 1:01:08 1 hour, 1 minute, 8 seconds Manies continues to solidify its position as a reliable supplier committed to meeting the fast growing 1:01:14 1 hour, 1 minute, 14 seconds global demand for sustainable cocoa butter equivalent specialty fats she steering and exotic 1:01:23 1 hour, 1 minute, 23 seconds butters. We are executing with focus and conviction on a clear laid down strategy. 1:01:33 1 hour, 1 minute, 33 seconds Expansion of manufacturing capacity to address growing demand for our speciality fat products and value added 1:01:41 1 hour, 1 minute, 41 seconds scientifically made and jointly collaborated with customers uh speciality fats. Investment in 1:01:50 1 hour, 1 minute, 50 seconds research and development which is key to our success to expand speciality formulations and application specific products. 1:02:00 1 hour, 2 minutes Strengthening our sourcing capabilities in key raw material regions with robust supply chains. 1:02:08 1 hour, 2 minutes, 8 seconds Expanding global market presence through international subsidiaries and strategic partnerships. Optimization of 1:02:16 1 hour, 2 minutes, 16 seconds operational efficiency across the whole integrated value chain. 1:02:22 1 hour, 2 minutes, 22 seconds Our target is to make every human on this earth somewhere our customer. We remain committed to becoming the partner 1:02:30 1 hour, 2 minutes, 30 seconds of choice for both international and domestic customers. delivering quality, reliability, 1:02:39 1 hour, 2 minutes, 39 seconds sustainability and trust at every level of our operations. 1:02:45 1 hour, 2 minutes, 45 seconds We look forward to continued engagement with our investment analyst community and remain available for follow-up 1:02:53 1 hour, 2 minutes, 53 seconds discussions. I thank all our stakeholders, our suppliers, our tribal families, our our Manorama team members 1:03:03 1 hour, 3 minutes, 3 seconds and every person associated with Manorama. Thank you once again for your time, for your trust and your continued support. Thank you. 1:03:14 1 hour, 3 minutes, 14 seconds Thank you on behalf of that concludes this conference. Thank you for joining us and you may now disconnect your lines. Thank you.