Modi Naturals Ltd — Q4 FY26

Modi Naturals Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=XGVUuwKhIFw Published: 3 hours ago

0:01 1 second Ladies and gentlemen, good day and welcome to the Modi Natural Limited Q4 FY26 earning conference call. As a 0:10 10 seconds reminder, all participant lines are with the listen only mode and there will be an opportunity for you to ask question 0:17 17 seconds after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on 0:26 26 seconds your touchstone phone. Please note that this conference has been recorded. I now hand the conference over to Mr. Akshai 0:34 34 seconds Modi, joint managing director. Thank you and over to you sir. Good morning uh ladies and gentlemen. 0:40 40 seconds Thank you Julius. Thank you for joining us for the Modi Naturals Limited Q4 and FY26 earnings conference call. I trust 0:49 49 seconds you have had an opportunity to review our financial results and investor presentation both available on the company's website and stock exchanges. 0:56 56 seconds SGAA, our investor relations adviser, is joining me on this call. Over the years, we at Motives Limited have steadily 1:04 1 minute, 4 seconds evolved from being primarily an edible oils company into a diversified and integrated business with presence across consumer products, bulk oils, and 1:12 1 minute, 12 seconds ethanol. Our journey has always been guided by adaptability, disciplined execution, and the ability to identify emerging opportunities ahead of the 1:21 1 minute, 21 seconds curve. At the foundation stage of our journey, our focus was on establishing a strong operational base and building credibility within the edible oils 1:28 1 minute, 28 seconds industry. As consumer preference gradually shifted towards healthier and trusted branded products, we consciously transformed the business into a more value added and scalable model. 1:38 1 minute, 38 seconds Alongside this, we continue to strengthen operational efficiency, improve capital discipline, and create long-term growth drivers across our 1:45 1 minute, 45 seconds businesses. Over time, the company has undergone a significant transformation journey focused on strengthening manufacturing infrastructure, improving 1:54 1 minute, 54 seconds operational efficiencies, optimizing working capital management, and building stronger business fundamentals. FY26 2:02 2 minutes, 2 seconds represents an important milestone in this journey as several strategic initiatives have now started translating into visible operational and financial 2:09 2 minutes, 9 seconds improvements. FY26 was particularly significant for the company as we achieved multiple important milestones 2:17 2 minutes, 17 seconds namely successfully commissioned phase two of our ethanol expansion increasing capacity from 130 kl to 282 kilome per 2:26 2 minutes, 26 seconds day. We got listed on the national stock exchange successfully achieved FI26 guidance across revenue eida and fat 2:34 2 minutes, 34 seconds despite delayed ramp up of expanded ethanol capacities. recorded the highest ever quarterly revenue of 50 crores in the consumer division. 2:42 2 minutes, 42 seconds The ethanol industry also witnessed strong momentum in FY26 supported by favor favorable government policies and India's increasing focus on energy 2:51 2 minutes, 51 seconds security. The achievement of the E20 blending target ahead of schedule and discussions around higher blending levels create a strong long-term structural opportunity for the industry. 3:01 3 minutes, 1 second Grainbased ethanol continues to gain importance with maze emerging as a key feed stock for production. 3:07 3 minutes, 7 seconds The expanded ethanol facility commenced commercial operations towards the latter part of the year. Therefore, the contribution from enhanced capacities 3:14 3 minutes, 14 seconds during FY26 remained limited. We expect the operational and financial benefits of the expanded facility to become more 3:21 3 minutes, 21 seconds visible from FY27 onwards as utilization levels improve and operations stabilize. 3:27 3 minutes, 27 seconds We believe the company is now well positioned to participate meaningfully in this long-term growth opportunity. 3:34 3 minutes, 34 seconds Across the business, our focus remained equally balanced between growth and improving the quality of operations. We implemented several initiatives to 3:41 3 minutes, 41 seconds enhance operational discipline, improve procurement efficiencies, reduce inventory intensity, and strengthen cash flow generation. Within the consumer 3:50 3 minutes, 50 seconds business, the momentum continued to improve steadily. Our pasta category remains one of the top performing categories on footcommerce platforms, reflecting strong consumer acceptance 3:58 3 minutes, 58 seconds and brand resilience. We also expanded our packaged foods portfolio with the launch of newer categories such as hing which received a strong market response. 4:07 4 minutes, 7 seconds At the same time, we continue strengthening our distribution reach across tier one and tier 2 cities while improving brand visibility and product 4:14 4 minutes, 14 seconds accessibility helping us build a stronger panindia presence. The bulk business also witnessed meaningful operational improvements. A leaner 4:22 4 minutes, 22 seconds inventory model helped optimize procurement cycles, improve operational agility and reduce working capital 4:29 4 minutes, 29 seconds intensity. This sharper focus on efficient capital utilization has significantly strengthened the company's overall financial profile. As part of 4:36 4 minutes, 36 seconds our strategic rationalization initiatives, we undertook the shutdown of one of our solvent extraction plants in PBE due to nonviability of 4:44 4 minutes, 44 seconds operations. This decision reflects our disciplined approach towards capital allocation and continued focus on improving asset productivity and 4:51 4 minutes, 51 seconds operational efficiency across the organization. In Q4 FY26, we also received an insurance claim amounting to rupees 4.9 cr towards loss of profit 5:00 5 minutes arising from business interruption due to a machinery breakdown at the ethanol plant in FY24. The receipt of this claim partially offset the impact of the 5:08 5 minutes, 8 seconds earlier disruption. Overall, FY26 has been a year of strengthening the platform for the future. The company today stands on a significantly stronger 5:16 5 minutes, 16 seconds operational and financial foundation supported by expanded ethanol manufacturing capacities, improving operational efficiencies across 5:24 5 minutes, 24 seconds businesses, better working capital management and stronger cash flow generation, stronger capital productivity and return ratios, a 5:32 5 minutes, 32 seconds growing branded and premiumized consumer portfolio, and a more focused and scalable business model. As we move into 5:39 5 minutes, 39 seconds FI27, our focus will remain firmly on discipline growth, operational excellence, premiumization, and sustainable profitability. We believe 5:48 5 minutes, 48 seconds the combination of a strengthened manufacturing base, improved efficiencies, stronger balance sheet discipline, and favorable industry tailwinds positions naturally limited 5:57 5 minutes, 57 seconds well for the next phase of growth. Now moving on to our financial performance. 6:05 6 minutes, 5 seconds Coming to our consolidated financial performance Q4 FY26 performance highlights revenue from operations is up 6:12 6 minutes, 12 seconds by 28% to rupees 243 cr year on year grew by 51.8% 8% to rupees 24.5 cr year yearon year. Aida margin stood at 10.1%. 6:25 6 minutes, 25 seconds PAT grew by 141% to rupees 19.7 cr year on year. 6:33 6 minutes, 33 seconds FY26 performance highlights revenue from operations is up by 8 8.5% to rupees 719 6:39 6 minutes, 39 seconds cr year on year. Aida grew by 31.2% to rupees 73.5 cr. This is without the uh 6:47 6 minutes, 47 seconds exceptional item. AIDA margin stood at 10.2%. 6:51 6 minutes, 51 seconds PAT grew by 62.1% to rupees 50.3 cr year on year. Return on capital employed 6:58 6 minutes, 58 seconds improved to 19.9% in FY26 from 18.3% in FY25 reflecting stronger capital productivity and improved earnings 7:07 7 minutes, 7 seconds quality. Working capital days further improved to 62 days as of 31st March 2026 as compared to 66 days from last 7:16 7 minutes, 16 seconds year demonstrating tighter operational control and more efficient utilization of resources. 7:21 7 minutes, 21 seconds Healthy cash generation remained another key highlight during the year with cash flow from operations increasing to rupees 61.1 cr in FY26 compared to rupees 48.8 cr in FY25. 7:34 7 minutes, 34 seconds This strong cash generation provide greater financial flexibility to support future growth initiatives while maintaining balance sheet discipline. 7:42 7 minutes, 42 seconds Coming to our divisional performance consumer division revenue for Q4 FI26 7:49 7 minutes, 49 seconds stood at rupees 50.9 cr compared to rupees 48.5 cr in Q4 FI25 and FY26 stood 7:57 7 minutes, 57 seconds at 183.5 cr compared to rupees 189 179.4 4 cr in FI25. 8:04 8 minutes, 4 seconds The bida for Q4 FI26 stood at rupees 4.2 cr as compared to rupees 3 cr in Q4 FI25 8:11 8 minutes, 11 seconds and for FY26 stood at rupees 15.2 cr as compared to rupees 15.1 cr in FY25. 8:19 8 minutes, 19 seconds Overall the demand is improving driven by expanded distribution innovation and new product launches in our food basket. 8:26 8 minutes, 26 seconds bulk division. In Q4 FI26, our revenue stood at rupees 100 cr as compared to rupees 56.1 cr in Q4 FI25 and FI26 stood 8:36 8 minutes, 36 seconds at rupees 193.3 cr 198.3 cr as compared to rupees 158.6 cr in FY25. 8:45 8 minutes, 45 seconds AIDA stood at rupees 2.7 cr in Q4 FI26 as compared to rupees 8:52 8 minutes, 52 seconds 0.9 lakhs in Q4 FI25 and in FI26 AIDA stood at 2.6 cr as compared to rupees 9:00 9 minutes 1.7 cr in FI25 ethanol division in Q4 FI26 our revenue 9:06 9 minutes, 6 seconds stood at rupees 92.2 cr and for FI26 stood at rupees 337.4 4 cr aida for Q4 9:15 9 minutes, 15 seconds stood at rupees 18.5 cr and for 526 stood at rupees 58.2 Core. 9:23 9 minutes, 23 seconds With this now we can open the floor for question and answers. 9:28 9 minutes, 28 seconds Thank you. We will now begin the question and answer session. Anyone who wishes to ask question may press star and one on their touchtone telephone. If 9:37 9 minutes, 37 seconds you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handset while asking a question. 9:46 9 minutes, 46 seconds Ladies and gentlemen, we'll wait for a moment while the question Q assemble. 10:02 10 minutes, 2 seconds The first question is from the line of Ankit Canodia from Jen Nvesh Advisor Private Limited. Please go ahead. 10:12 10 minutes, 12 seconds Yeah, thank you so much for taking my question and congratulations on good set of numbers. Uh actually my first question 10:20 10 minutes, 20 seconds is related to uh both the division uh consumers and uh 10:28 10 minutes, 28 seconds ethanol because I think increasingly uh these are the two divisions which will drive the value. So of course the 10:36 10 minutes, 36 seconds numbers have been great and uh uh all the initiatives which we were we were taking over the last few years now is starting to show up in the numbers. But 10:45 10 minutes, 45 seconds if I have to take a say a slightly longer term maybe six to eight quarters down the line. Uh what are the risks and 10:53 10 minutes, 53 seconds challenges which you see in both these segments? If you can just throw some more color on that uh that would be very 11:01 11 minutes, 1 second useful. It could be something related to industry. It could be something uh company specific but if you can throw more light on that that would be very helpful. Thank you. 11:11 11 minutes, 11 seconds Sure. So in terms of risks and challenges uh I can start by the ethanol uh segment. So in the ethanol segment I 11:19 11 minutes, 19 seconds think risk uh as has been highlighted in media over the last few months is that of over capacity and underutilization. 11:26 11 minutes, 26 seconds However uh I think we're well poised to take care of that because we've already expanded significantly. So the growth is definitely going to come from previous 11:34 11 minutes, 34 seconds year and that said I think there's a lot of tailwind uh and and given the geopolitical landscape for the government to further uh expand ethanol 11:43 11 minutes, 43 seconds consumption. So I don't see that in the medium term as a as as a risk. Uh and in consumer division the risk is purely on 11:51 11 minutes, 51 seconds execution. So we have some great brands and we have some great product uh already and we have some great new product lineups as well. So it's purely the risk is execution nothing else. 12:04 12 minutes, 4 seconds Yeah that was very helpful uh in the consumer division uh I think the last time you mentioned or hinted towards uh 12:12 12 minutes, 12 seconds possible acquisition because now the balance sheet is also reasonably healthy so any color on that do we are we 12:19 12 minutes, 19 seconds nearing anything or is there anything there which you want to throw light upon? We've evaluated a few uh few 12:26 12 minutes, 26 seconds opportunities in the food sector uh but uh nothing uh that we have uh formed up yet and we will let the community know as well. 12:37 12 minutes, 37 seconds Okay, just one last question before I come back to the queue. uh in the ethanol uh any near-term plans of going 12:46 12 minutes, 46 seconds into value added which can uh maybe by end of FYI 27 or early FI28 we can 12:53 12 minutes, 53 seconds expect something that to uh start uh showing up in the revenues. 13:00 13 minutes Yes. So we already planning uh on value addition on the product side which is on the alcohol side. So for me ethanol we could look at uh either on the portable 13:09 13 minutes, 9 seconds or the chemical side. So that's something we already considering and on the byproduct side as mentioned on previous calls we've already done some innovation uh on value added products. 13:20 13 minutes, 20 seconds Uh so one uh of our innovations already happened and which is helping us uh achieve uh good aida margins and another 13:27 13 minutes, 27 seconds second one is underway which should be completed in a few months but uh there's not much detail I can share on that. 13:34 13 minutes, 34 seconds Yeah, thank you so much. Uh that is it from my side and all the best for the future. Thank you. 13:41 13 minutes, 41 seconds Thank you. The next question is from the line of Amit Javari for an individual investor. Please go ahead. 13:50 13 minutes, 50 seconds Yeah. Hi. Am I audible sir? Yes sir you are. Please go ahead sir. Thank you. 13:55 13 minutes, 55 seconds Okay sir. I'm referring to your slide number 10 in which you have mentioned your re is order for 4K. 14:03 14 minutes, 3 seconds 47.9 kilo kl. So uh now that we have extended 14:09 14 minutes, 9 seconds capacity so from uh a point of view of uh you know your stakeholders uh the 14:16 14 minutes, 16 seconds concern is you know how confident are we to you know use this 282kd capacity 14:23 14 minutes, 23 seconds fully and that so that is one and secondly this order which you have mentioned course till what time this 14:31 14 minutes, 31 seconds order we have to uh complete and what after that. 14:39 14 minutes, 39 seconds So as far as capacity utilization is concerned, I think uh there is significant headroom for growth in consumption plus uh I think we are very 14:48 14 minutes, 48 seconds strategically located uh from where we can supply around the country and uh not only to PSUs but also to private OMC's 14:55 14 minutes, 55 seconds and uh we have already registered with the private OMC's and we will be participating in their tenders in the upcoming uh cycle as well. So and and 15:04 15 minutes, 4 seconds the orders that we received is for the ongoing ESY in the cycle one tender of PSUMC's alone and this is uh till 31st 15:13 15 minutes, 13 seconds October of this year that's the ESY cycle that's an all sugar year if you track the sector it's from 1st November to 31st October so this is the order 15:21 15 minutes, 21 seconds that we've already received and other than that in this ESY alone we expect to get more orders from private as well as 15:29 15 minutes, 29 seconds PSUMC's and of course from 1st November we will be rebidding for the next cycle and that happens in the September October period. 15:39 15 minutes, 39 seconds Okay. Uh uh second question sir on the consumer division uh out of the you know total 184 how much is from our olive 15:49 15 minutes, 49 seconds brand and how much is from uh you know other ready to eat or you know any other brands. So we typically don't share this 15:57 15 minutes, 57 seconds breakup but just to give you a range uh our food products contribute roughly 10% and 90% comes from our oil portfolio 16:07 16 minutes, 7 seconds and how is it aida margin sir in these two we don't give the breakup but u 16:16 16 minutes, 16 seconds at the consumer division level it's about 8.3% a bit margin yeah no but uh basically sir are we in 16:23 16 minutes, 23 seconds the green as far as the food product is concerned That's what I'm trying to understand. 16:28 16 minutes, 28 seconds Yes, absolutely. We don't intend to enter into loss making categories and the way we build brands and categories 16:34 16 minutes, 34 seconds is uh in a in a profitable manner from year one or year two itself. So we are not uh in losses. 16:44 16 minutes, 44 seconds Okay. And s uh this time you have not mentioned any you know brand celebrity engagements in the PPT. So has that ended or that is still uh continuing? 16:56 16 minutes, 56 seconds Uh I didn't understand your question. Sorry. Can you repeat that? 16:59 16 minutes, 59 seconds Uh is the celebrity engagement for the brand still? 17:04 17 minutes, 4 seconds Yes. Our uh our brand ambassador is Karishma Kapoor. Uh and that is ongoing. It hasn't ended. 17:11 17 minutes, 11 seconds All right. Thank you sir. Thank you. 17:17 17 minutes, 17 seconds The next question is from the line of manit Singh from Aurora wealth advisor. Please go ahead. 17:26 17 minutes, 26 seconds Yeah, thank you for the opportunity. Uh so just continuing from the previous participants question. So if I if you 17:34 17 minutes, 34 seconds look at the slide of uh ethanol division where you mentioned the received order for 47.9K kil. 17:44 17 minutes, 44 seconds Now if we you know do a back of the envelope mathematics it comes to around 17:50 17 minutes, 50 seconds close to 130k PD which is which was our capacity before we increase to 282. 17:58 17 minutes, 58 seconds So you know how do you see uh the capacity utilization ramping up for the for our new capacities because you 18:07 18 minutes, 7 seconds mentioned that operating at about 330 days at 150 ks. Okay. 18:15 18 minutes, 15 seconds Yeah. Okay. So, so yeah, but just continuing on my thing, how do you see the ramp up for the additional capacities because you mentioned that in 18:24 18 minutes, 24 seconds October, November only we'll be able to beat for the next years PSY and uh you know since there is over 18:31 18 minutes, 31 seconds supply uh in the market uh I'm what we are hearing is that uh everyone is not getting the full kota of their 18:40 18 minutes, 40 seconds capacities as well. So yeah, so basically how do you see the ramp up happening? Do you see it ramping up only 18:48 18 minutes, 48 seconds by October, November time frame or should we be looking at ramping up in the interim as well? 18:57 18 minutes, 57 seconds I think I answered this on the previous question in the ongoing yes why we can get orders from private OMC's which we chose not to bid for in the previous cycle because our plant was not ready. 19:08 19 minutes, 8 seconds So instead of 130k we got 150k orders. 19:12 19 minutes, 12 seconds uh despite not having the plant up and running. Uh so in the ongoing ESY we will get orders from private OMC's as 19:18 19 minutes, 18 seconds well as uh participate in the PSU OMC's uh tender uh the upcoming tenders in the current cycle as well. So right now only 19:26 19 minutes, 26 seconds cycle one tender has happened in October. Since then no new tender has come out which we expect to come out over the next couple of months. 19:33 19 minutes, 33 seconds Okay. So the private OMC is handling in the meanwhile. Uh yes that's correct. So I expect that by 19:42 19 minutes, 42 seconds end of June private as well as uh PSU1C's will come out with fresh numbers for the ongoing side. 19:48 19 minutes, 48 seconds And sir we also hearing about government along exports of ethanol. 19:54 19 minutes, 54 seconds uh you know we're in talks with Nepal and some of the other countries uh if you can there's a lot of uh there's a lot of action happening at the 20:02 20 minutes, 2 seconds geopolitical level uh which will affect the ethanol policy whether it's to do with you know domestic consumption or 20:09 20 minutes, 9 seconds permitting exports um that we will see over the next few weeks but there there's definitely a lot of stuff happening 20:16 20 minutes, 16 seconds okay so can you throw a little bit more light on that you know is it only for 2G and all 20:24 20 minutes, 24 seconds or the ethanol that we produce will also be allowed and does it need any 2G ethanol not of relevance at the moment we only talking about the 1G 20:32 20 minutes, 32 seconds ethanol okay and uh will we need certain licenses for that and are we ready if the exports are allowed or it will take 20:40 20 minutes, 40 seconds some time I wouldn't be able to comment on that would be speculation no I'm talking about our our our uh uh 20:48 20 minutes, 48 seconds you know our increased capacities our plants are they will they be authorized for exports or uh will we need? 20:57 20 minutes, 57 seconds Let's see. I don't know what the policy will come but it'll be the same for everybody. 21:01 21 minutes, 1 second All right. Thank you. Thank you very much. 21:06 21 minutes, 6 seconds Thank you. The next question is from the line of Chira Varia from Budarani Finance Limited. Please go ahead. Sir in 21:15 21 minutes, 15 seconds this uh ethanol uh division that we have specified uh when you say you know we are targeting a turnover of around 950 21:23 21 minutes, 23 seconds cr for 27 uh how much are we building the revenue from the ethnol segment that is one number two for similar turnover 21:31 21 minutes, 31 seconds in FI25 we did 13% margin this time around we have done 17% margin so uh why 21:39 21 minutes, 39 seconds the uh increase in margin and third is what is the sustainable level of margin in segment you're talking about the VA margin. 21:49 21 minutes, 49 seconds Yeah. Slide number nine. 21:55 21 minutes, 55 seconds Sure. So as far as the guidance is concerned uh the topline guidance of an average of 950 crores is also very 22:03 22 minutes, 3 seconds conservative in nature and we have factored in only about 50% capacity utilization of the expansion. 22:10 22 minutes, 10 seconds So if if all goes well I think we will far exceed our numbers and u as far as a 22:18 22 minutes, 18 seconds bita margin is concerned this year u I mean on previous calls I have maintained that we will achieve between 12 to 15% a 22:25 22 minutes, 25 seconds bit in this division uh on a sustainable basis uh however this year's uh particular in nature because I think 22:32 22 minutes, 32 seconds grain prices a little bit and we did do some value addition in our byproducts and in the last quarter we have an exceptional item which actually increased our AIDS margin to 18.8%. 22:43 22 minutes, 43 seconds So my guidance still remains that on a long-term basis it's going to be 12 to in the range of 12 to 15%. And of course in some quarters we will beat that as well. 22:52 22 minutes, 52 seconds Okay. And sir the last thing is what what growth rate do we see in the consumer division segment 22:59 22 minutes, 59 seconds consumer division last year at about 2% revenue growth. Mhm. 23:04 23 minutes, 4 seconds But I think going forward it will grow faster because in Q4 we have grown faster and you know the momentum is now built. 23:13 23 minutes, 13 seconds Okay. Okay. Thank you. 23:16 23 minutes, 16 seconds Thank you. The next question is from the line of Sep Digshit from ARA Partners. Please go ahead. 23:23 23 minutes, 23 seconds Just a clarification on the numbers. Um maybe I'm wrong on this but uh your P&L 23:30 23 minutes, 30 seconds that you published today shows a bit of 2465 lakhs but the segment quarterly 23:37 23 minutes, 37 seconds shows a I aida of uh sorry uh 330 something 23:45 23 minutes, 45 seconds 3037 what is the I think there's a difference of netting off uh from the uh the interest inter interdivision interest so that has 23:54 23 minutes, 54 seconds happened in the console results but not in the segment results. That's the only difference. Okay. So that's the only difference. 24:03 24 minutes, 3 seconds Okay. Thank you. 24:06 24 minutes, 6 seconds Thank you. The next question is from the line of Dil Javi from Crown Capital. Please go ahead. 24:15 24 minutes, 15 seconds Hello. Uh good morning sir. Thank you so much for taking my question. Firstly congratulations on a great set of results sir. Uh so I just wanted to you 24:24 24 minutes, 24 seconds know hard up a bit more upon the ethanol division. So uh out there we are just factoring around 50% utilization that's 24:32 24 minutes, 32 seconds why our uh revenue guidance is a bit lower right but on a full utilization what is the peak potential revenue we 24:40 24 minutes, 40 seconds can get like maybe not this year but FI28 surely we will be able to do that right so ethanol what is the expectation 24:49 24 minutes, 49 seconds I think with full capacity utilization our consolidated revenue will cross 1100 crores that's the 24:58 24 minutes, 58 seconds Okay. Okay. Fair fair and you were saying a bit about you know more value added products in alcohol. I think this is could you elaborate what is the 25:07 25 minutes, 7 seconds planning out there we doing in what is the what are you planning like what segment 25:15 25 minutes, 15 seconds are you more inclined towards going to the on the portable side you know you have RSA bottling all these options are 25:23 25 minutes, 23 seconds available to you. And on the chemical side, there are a host of downstream chemicals that one can get into 25:36 25 minutes, 36 seconds kind of risky question. Speak up a bit. 25:38 25 minutes, 38 seconds There's a lot of background noise on your line. 25:41 25 minutes, 41 seconds Hello. Sorry. Is that better? Sir, this is much better. 25:45 25 minutes, 45 seconds Yeah. Yeah. So just like last question from my in the ethanol division do you feel that you know the over capacity 25:53 25 minutes, 53 seconds issue like maybe can hit a few like a year or two down the line because lot of people are coming with the capacity. So just wanted to you know get your 26:01 26 minutes, 1 second thoughts in that s how do you see the industry or you know with the grain prices and everything also sir like overall do you see any kind of risk in 26:10 26 minutes, 10 seconds that sir? I think a surge in capacity happened over the last three years and going forward it won't be as much. 26:17 26 minutes, 17 seconds Number one. Number two, I think we're well positioned in terms of our strategy to even handle a scenario of over capacity uh due to our uh the way we 26:26 26 minutes, 26 seconds operate our plants, our geography and uh you know the value addition we're doing on the product and byproduct side. So I think we're well positioned to navigate all of this. 26:35 26 minutes, 35 seconds Okay. Okay. Fair. Okay. That's it from my side. Thank you so much. All the best. 26:38 26 minutes, 38 seconds Thank you. Thank you. A reminder to all participants that you may press star and one to ask question. The next question 26:47 26 minutes, 47 seconds is from the line of Pravin Sharma and individual investor. Please go ahead. Yeah. Hi, good morning Ash. Good morning. 26:55 26 minutes, 55 seconds Yeah. Uh first of all congratulations on the great set of numbers. uh you know you have been you know you know putting 27:04 27 minutes, 4 seconds your neck out and giving the guidance and you are actually delivering it and next year guidance also looks very 27:10 27 minutes, 10 seconds promising. Congratulations to you because uh I don't see many you know promoters or management people coming 27:18 27 minutes, 18 seconds out and giving guidance like that. So hearty congratulations and thank you very much. Uh my first question is uh uh 27:26 27 minutes, 26 seconds you know regarding the compressed biogas. I read your article in Chile Mandi wherein you know and did some my own research. It looks very promising. 27:34 27 minutes, 34 seconds Do we see any traction towards that because it will just flow into our bottom line if I'm right. 27:42 27 minutes, 42 seconds So for us it will be a separate business model for sugar mills you know they are doing bio gas from pesmart which is their byproduct 27:50 27 minutes, 50 seconds but uh for us there is no uh there's no uh you know it's not part of our process. It will be a separate uh capex altogether. 27:59 27 minutes, 59 seconds Okay. 27:59 27 minutes, 59 seconds Okay. Nothing there's no synergy as such. But my comment was more related to the ecosystem as such 28:07 28 minutes, 7 seconds because I think a lot of work still needs to be done on piped gas before uh this can scale up. Correct. 28:13 28 minutes, 13 seconds So it's it's a bit of a chicken and egg but it's happening. I think there's a huge policy push for this. I think you might hear some more polishing policy 28:20 28 minutes, 20 seconds measures in the next few weeks. Mhm. So in our case uh you know uh when we you know our uh we don't have something like 28:29 28 minutes, 29 seconds a spent wash wherein you know we which has to be discharged or you know everything is used in DDGS nothing is 28:38 28 minutes, 38 seconds left out you know affluent huh that's correct okay okay so uh the set question uh 28:45 28 minutes, 45 seconds second question is regarding our edible oil business the branded one uh are we seeing any you know are we able to pass 28:52 28 minutes, 52 seconds on the prices uh uh you know because I saw that raw material prices have been increasing quite a bit uh so are we able 29:01 29 minutes, 1 second to pass on the increase in our raw material prices or we face uh you know are we facing any uh you know pressure from the market how do you see that 29:10 29 minutes, 10 seconds business going out so we have passed it on to some extent for example there's a huge increase in packaging material costs 29:18 29 minutes, 18 seconds we have passed on uh raw material wise in the food category we don't see as much inflation on the edible oil side while uh you know 29:25 29 minutes, 25 seconds rice brand prices have gone up olive oil prices have come down so you know it's not hurting us as much we've passed on 29:32 29 minutes, 32 seconds in in some of our uh SKUs so I think we we're managing just fine 29:39 29 minutes, 39 seconds okay okay and uh you know lot of answers are actually uh questions have been answered through your guidance only so I 29:46 29 minutes, 46 seconds hope uh you know we will not only meet them but the you know we will be able to exceed whatever you 29:55 29 minutes, 55 seconds Yeah. Yeah. You know we you have been delivering so kudos to you. Thank you. That's all from my side. 30:02 30 minutes, 2 seconds Thank you. 30:05 30 minutes, 5 seconds Thank you. A reminder to all participants that you may press star and want to ask question. The next question is from the line of Ganesh Kumar and individual investor. Please go ahead. 30:17 30 minutes, 17 seconds Yeah. Please accept my heart happy congratulations for the amazing set of numbers. You have made investors like me really proud. Uh not only have you 30:25 30 minutes, 25 seconds beaten your own guidance, the cash flow is also excellent. It's you know uh I think about 20% more than the net profit even uh truly fantastic. 30:35 30 minutes, 35 seconds So as a doctor cardiovascular surgeon to this specific I vouch for your olioactive. I believe there's a huge 30:43 30 minutes, 43 seconds market for your healthy SMCG segment and we have all the machines of you know SNCG giant in this space utilizing the 30:51 30 minutes, 51 seconds tailwind from ethanol side. I'm sure your vision is also the same. Uh so in this regard I have a couple of things 30:58 30 minutes, 58 seconds basically. Uh first is that I would like to see you know more TV ads for your flagship brand all your active. So 31:06 31 minutes, 6 seconds because that's a wonderful uh there you know it's there on the quick uh farmers like milk etc but it's still not well 31:15 31 minutes, 15 seconds known to you know the masses. So people still go for palmoline oil and things like that. So when there is a such a wonderful 31:23 31 minutes, 23 seconds which can you know also improve the overall cardiac health of you know our population. So it's still not selected 31:31 31 minutes, 31 seconds uh chosen by the masters simply because probably it's not on the you know large scale advertisement yet. So probably I 31:39 31 minutes, 39 seconds think TV ads would be the thing is what I feel that's the first thing and second is 31:46 31 minutes, 46 seconds that as a cardiovascular super specialist who regularly advises people what to eat and what not to eat. I also 31:54 31 minutes, 54 seconds have several you know contributo ideas in this healthy FMCG space you know that can uh expand uh the healthy basket that 32:03 32 minutes, 3 seconds we already have and you know take it to much greater heights and also to stay ahead of the curve. So if there's any 32:09 32 minutes, 9 seconds specific number of email to connect you know to detail this uh please do let me know. Thank you very much. 32:18 32 minutes, 18 seconds So uh to answer your first question regarding TV ads you're absolutely right. uh awareness building is the function of our marketing efforts and 32:25 32 minutes, 25 seconds you see over the years uh marketing has changed. Earlier you only had one option to go on mass television but now with digital marketing we can really segment 32:33 32 minutes, 33 seconds the audience not only by uh geography but also social economic and gender basis. So we believe that our core EG is 32:41 32 minutes, 41 seconds actually let's say u female audience for instance. So they may see the ads but you may not. So having said that we're 32:50 32 minutes, 50 seconds advertising in a big way on platforms like Giostar and all to the female audiences uh in our core PG and uh 32:57 32 minutes, 57 seconds that's probably why you don't see it. On the second question I I didn't fully understand your question. If you could just speak up a bit please that would be great. 33:04 33 minutes, 4 seconds Yeah. So what I was feeling is that I uh you know as a skill super specialist who regularly advises you know people what 33:12 33 minutes, 12 seconds to eat and what not to eat. So I have you know contributory ideas you know in this healthy SNCG space I know you're 33:20 33 minutes, 20 seconds already into quite a bit so this can uh you know help expand your healthy basket further and take to you know greater 33:27 33 minutes, 27 seconds heights to stay ahead of the curve. So if there is any specific number or email to connect you know I can detail this so that you know I can share more ideas 33:36 33 minutes, 36 seconds which I hope sure I mean we're always open to ideas so feel free to write to us that our corporate email id on the website and it'll filter through to us 33:45 33 minutes, 45 seconds okay sure yeah thank you so much and thank you very much thank you a reminder to all participants that you 33:54 33 minutes, 54 seconds may press star and one to ask question is from the line of Amit Javar an individual investor please go ahead. 34:04 34 minutes, 4 seconds Sir just to follow up uh from the last question uh out of the total internal market in India how much percentage is 34:12 34 minutes, 12 seconds from government OMC's and how much is from private OMC's? 34:17 34 minutes, 17 seconds I think 90% is PSUMC's and 10% is private. 34:24 34 minutes, 24 seconds Okay. All right. Thank you sir. 34:31 34 minutes, 31 seconds Thank you. A reminder to all participants that you may press star and want to ask question. The next question is from the line of manrit Singh from Aurora wealth advisor. Please go ahead. 34:43 34 minutes, 43 seconds Yeah, thank you for the followup sir. Uh responded now your capeex plans for the next year. 34:52 34 minutes, 52 seconds We don't have any large capeex envisage for this financial year. uh we're looking at investing up to 20 crores in a valuation project in our byproduct 35:01 35 minutes, 1 second team in the ethanol division. uh but other than that we have no large cap expense. 35:08 35 minutes, 8 seconds All right. And on your consumer division sir um if you can give some highle 35:14 35 minutes, 14 seconds metrics on our distribution reach right now and where do we want to take it in the next year that will be really helpful. 35:25 35 minutes, 25 seconds So earlier the conversation on distribution used to be purely on general trade terms but now with QCOM coming in u it's I think we're very 35:32 35 minutes, 32 seconds proud to say that we're present in QCOM across all uh all the apps as well as across geographies so we're present 35:40 35 minutes, 40 seconds across the country and uh we're also present in neighboring markets like Bhutan and Nepal Bhutan we started a couple of years back so we are doing 35:48 35 minutes, 48 seconds well over there Nepal we have started recently so we have to scale up and u for other channels general trade for instance we uh cover directly about 35:57 35 minutes, 57 seconds 50,000 outlets. So we may have presence in 25 out of those 50,000 and our endeavor is to constantly increase that 36:06 36 minutes, 6 seconds and u in terms of uh CS CPC so we're also part of the army CS can teams 36:13 36 minutes, 13 seconds and um for offline modern trade stores we uh present across all channels across the country. 36:22 36 minutes, 22 seconds All right. And would it be fair to say that uh the QCOM the modern channels have a larger share 36:31 36 minutes, 31 seconds at the percentage uh uh in the if you break up break up our channels. 36:36 36 minutes, 36 seconds So we have a good mix. We have about 50% model trade, 40% general trade and 10 uh about 8 10% comes from our uh army channel. 36:46 36 minutes, 46 seconds Okay. And we see this mix remaining the same over the next year or so if you can talk about your strategy of 36:53 36 minutes, 53 seconds I do see uh e-commerce ramping up faster because of uh the trend of the category but I feel that in general trade we are 37:01 37 minutes, 1 second still underpenetrated so for us GT will also grow at a good pace but definitely I think uh QCOM is changing the landscape quite a bit. 37:11 37 minutes, 11 seconds Okay. So for the consumer division the growth will come from new products as well as increasing our reach. Uh 37:20 37 minutes, 20 seconds absolutely it'll be a mix of both. We will consolidate our leadership position in the goodness of olive oil category. 37:28 37 minutes, 28 seconds uh where we enjoy fairly significant market shares in some of the subcategories and uh growth will also come from the uh you know launched 37:37 37 minutes, 37 seconds recently launched categories like pasta and he and then we do have some new products uh slated to be launched uh later this year. 37:47 37 minutes, 47 seconds Thank you. Thank you very much. Thank you. 37:51 37 minutes, 51 seconds The next question is from the line of Ankit Minoia from ADZ Ventures family office. Please go ahead. 38:01 38 minutes, 1 second Yeah. Hi, good morning Ash and congratulations chair of numbers. 38:06 38 minutes, 6 seconds Uh thank you. I'm kind of uh trying to understand where we get the upside the 38:13 38 minutes, 13 seconds large upside on the guidance for for next year considering I mean it seems running at 50% capacity utilization 38:22 38 minutes, 22 seconds potentially for ethanol that you kind of mentioned to uh the other participants and the numbers for uh the consumer and the other business but quite ambitious. 38:32 38 minutes, 32 seconds So you can just kind of help us bridge this uh gap or to kind of understand. 38:38 38 minutes, 38 seconds Yeah. So the 50% number was for the expanded capacity not the total. So for example if it's 130 and another let's 38:44 38 minutes, 44 seconds say 150 we're looking at about 230 kl is what uh on a conservative side that we've taken for the guidance but I'm fairly confident we'll beat that number. 38:57 38 minutes, 57 seconds Okay. All right. Thanks. And my second question so regard to so I think a couple of days back or yesterday an 39:03 39 minutes, 3 seconds auditor seen an audition of the previous answer. Could you just add some color on the top please? 39:12 39 minutes, 12 seconds Sorry. Could you just repeat your question? May I request you to speak up a bit please? It's a bit muffled. 39:20 39 minutes, 20 seconds Yeah. Is it better now? Yes, this is better. 39:25 39 minutes, 25 seconds Yeah. So my second question was with regard to the auditor um resignation uh that was reported a couple of days back and on the appointment of a new auditor. 39:35 39 minutes, 35 seconds So could you just add some Sure. I mean uh so this was always planned I think uh this is more of a 39:44 39 minutes, 44 seconds succession uh which we started uh this journey started two to three years back. 39:50 39 minutes, 50 seconds So the auditors who've been appointed were already auditing our Modi biotech results for the last two three years and the idea was to transition even uh M&L to them. So that was already the plan. 40:00 40 minutes It's more of a succession than anything else. Okay. All right. Thank you. 40:10 40 minutes, 10 seconds Thank you. The next question is from the line of uncle individual investor. Please go ahead. 40:17 40 minutes, 17 seconds Uh yeah. Hi sir. Thanks for the opportunity. Uh sir, I wanted to know what is our current uh advertising spend. 40:30 40 minutes, 30 seconds Hello, am I? 40:33 40 minutes, 33 seconds Yes. Uh so so your total ad spend uh for this year 40:46 40 minutes, 46 seconds is uh 12 crores. 40:50 40 minutes, 50 seconds Okay. And specific. 40:53 40 minutes, 53 seconds Yeah, it's about 6 and a half%. This is what I think we had projected anyway. So, yeah. 41:00 41 minutes This is purely only advertising. We're not talking about other below the line advertising. This is purely above the line advertising. 41:08 41 minutes, 8 seconds Understood. And anything specifically on how much have you spent on Quickcommerce? 41:15 41 minutes, 15 seconds I think it's a 6040 split. That's uh typically what's uh advised in the category these days. So 60% uh on external advertising 40% on qcom. 41:28 41 minutes, 28 seconds Understood sir. Understood. Uh my another question would be on the side uh how big do you see the FMCG division uh becoming in the coming odd years? 41:40 41 minutes, 40 seconds So over the last few calls I have mentioned I don't see any reason why this uh segment for us should not get to 500 crores in the medium term. Uh this 41:48 41 minutes, 48 seconds will be propelled by growth within the oil basket as well as food products. So I think oil can easily grow to about 300 to 350 crores uh and add about 150 41:57 41 minutes, 57 seconds crores from food in the medium term. So this is what we used to go to. 42:02 42 minutes, 2 seconds Mind you, we do operate only in the premium category with decent margins and without any loss making categories. So, we're growing this business in a profitable manner. 42:12 42 minutes, 12 seconds Got it, sir. Got it, sir. Wish you all the best. Thank you so much, sir. Thank you. 42:19 42 minutes, 19 seconds Thank you. As there are no further question from the participants, I now hand the conference over to the management for closing comments. 42:27 42 minutes, 27 seconds This call is no longer recorded. 42:30 42 minutes, 30 seconds Thank you everyone. I hope we have been able to answer all your questions satisfactoryily. However, if you need any further clarifications or want to know more about the company, please 42:38 42 minutes, 38 seconds contact SGA, our investor relations advisor. Thank you once again for taking the time to join us during this call today. Have a nice day. 42:49 42 minutes, 49 seconds Thank you. On behalf of Modi Natural Limited, that concludes this conference. 42:54 42 minutes, 54 seconds Thank you for joining us. You may now disconnect your lines.