Nurture Well Industries Ltd — Q3 FY26

Nurture Well Industries Ltd Q3 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=e0IhpQTOnJQ Published: 3 months ago

0:01 1 second Ladies and gentlemen, good day and welcome to Nurture Well Industries Limited Q3 FI26 earnings conference call. As a reminder, all participant 0:10 10 seconds lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please 0:18 18 seconds signal and operator by pressing start then zero on your touchstone phone. 0:22 22 seconds Please note that this conference is being recorded. I now hand the conference over to Miss Janvi Patil from ORM connect. Thank you and over to you Miss Patil. 0:32 32 seconds Good afternoon everyone and a warm welcome to all of you. I'm Janvi Patil from ORM connect representing the investor relations team of Nurturewell 0:40 40 seconds Industries Limited. On behalf of the company, I would like to thank you all for joining us for the Q3 FY26 earnings 0:47 47 seconds calls. Before we begin, I would like to state a brief cautionary statement. Some of the statements made during today's call may be forward-looking in nature. 0:56 56 seconds These forward-looking statements are subject to certain risk and uncertaintities that will cause actual results to differ materially from those 1:04 1 minute, 4 seconds expressed or implied. These statements are based on management's current expectations, assumptions, and information available as of now. 1:12 1 minute, 12 seconds Investors are therefore advised not to place any undue reliance on these forward-looking statements when making any investment decisions. The purpose of 1:21 1 minute, 21 seconds this call is to share insight into the company's business performance and financial results under review. Now I'm pleased to introduce the members of the management team present with us today. 1:31 1 minute, 31 seconds Mr. Sanida, executive director, Mr. 1:34 1 minute, 34 seconds Vikasan, group PFO. With that now, now I hand over to Mr. Sanida for his opening remarks. Thank you and over to you sir. 1:45 1 minute, 45 seconds Good afternoon everyone and thank you for joining us today. I would like to begin by expressing our sincere gratitude to our shareholders, 1:53 1 minute, 53 seconds investors, customers, partners and employees for the trust and confidence they have placed in the company. We are pleased to share that 2:02 2 minutes, 2 seconds the company has delivered a strong performance during the quarter and 9 months ended December 31st 2025. 2:09 2 minutes, 9 seconds Starting with quarter 3 FY26 revenue from operations stood at 289.77 crores compared to 198.75 crores in 2:18 2 minutes, 18 seconds quarter 3 FY25 reflecting a growth of 45.80% yearon-year Aida for the quarter was 2:26 2 minutes, 26 seconds 33.19 cr up by 93.80% with margins improving to 11.45% from 8.65%. 2:36 2 minutes, 36 seconds The net profit came in at 34.60 crores registering a growth of 95.04% and net profit margin improved to 10.72%. 2:48 2 minutes, 48 seconds Diluted EPS for the quarter stood at 1.19 rupees. 2:52 2 minutes, 52 seconds For the 9 months ended, FY26 revenue from operations reached 826.48 crores, 2:59 2 minutes, 59 seconds a growth of 57.28% yearonear. Aida stood at 89.38 crores 3:07 3 minutes, 7 seconds with margin at 10.81 while net profit rose to 92.32 crores up by 104.20%. 3:15 3 minutes, 15 seconds The diluted EPS for 9 months. F26 stood at 3.15 rupees. This performance has been supported by expansion into high 3:24 3 minutes, 24 seconds demand categories and strengthening of our product mix. During the period, we added donuts in our premium and mass 3:30 3 minutes, 30 seconds segments, introduced rusk and launched kari biscuits products with strong repeat consumption and retail attraction. 3:39 3 minutes, 39 seconds We have also entered the fresh bakery segment with kulche and are rolling up bread and puff variance. This expands our presence in the fastm moving fresh 3:47 3 minutes, 47 seconds food space and enhances opportunities across both retail and institutional channels. 3:53 3 minutes, 53 seconds Overall the focus remains on expanding our product basket, improving margins, strengthening distribution and maintaining disciplined execution. We 4:01 4 minutes, 1 second believe the current momentum positions us well for the coming quarters. Now the business and operation updates are 4:08 4 minutes, 8 seconds Nimana facility continues to operate efficiently with a capacity of 3,400 metric tons per month supporting both 4:16 4 minutes, 16 seconds domestic and export demand. We continue to strengthen our distribution footprint across North India with 150 plus distribution partners. Our brand 4:25 4 minutes, 25 seconds portfolio includes three brands rich light, punchre and crunchy grace that continues to gain traction in both traditional and modern trade. 4:34 4 minutes, 34 seconds Export presence now spans nine plus countries across Africa and Middle East, strengthening our international positioning. New product introductions 4:42 4 minutes, 42 seconds in premium bakery cookies and biscuit categories are receiving encouraging market response. 4:49 4 minutes, 49 seconds Thank you speakers. Shall we open the line for questions? 5:00 5 minutes Yes. Yes, we can. 5:01 5 minutes, 1 second Thank you. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on touchtone telephone. If you 5:09 5 minutes, 9 seconds wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies 5:17 5 minutes, 17 seconds and gentlemen, we'll wait for a moment while the question Q assembles. 5:25 5 minutes, 25 seconds The first question comes from the line of Snehibep an individual investor. Please go ahead. 5:33 5 minutes, 33 seconds Am I audible? Yes, you are audible. 5:37 5 minutes, 37 seconds uh congratulation for good set of numbers. So I just want to ask that uh in next one to two years are you targeting any newer geographies means uh in domestic area? 5:49 5 minutes, 49 seconds Yes, we are. We are trying to expand into the UP market which is a really big market 5:57 5 minutes, 57 seconds plus we are also looking at MP and Bombay as well. 6:01 6 minutes, 1 second So any uh plan to expand in in eastern part of India? 6:07 6 minutes, 7 seconds Sorry, any plan to expand in eastern part of India means West Bengal or No, not no not as not as of right now. 6:16 6 minutes, 16 seconds Okay. And um you are opening a new manufacturing plant in UP. So what is your current update of that plant? 6:26 6 minutes, 26 seconds uh see the uh uh the the workings that are under process as regard to the uh product portfolio that we are you know 6:34 6 minutes, 34 seconds uh starting with this uh new unit that is one and secondly uh the uh the uh 6:43 6 minutes, 43 seconds we have ordered for the quotation for the machinery as well that is also in the lineup plus we are also scattering 6:50 6 minutes, 50 seconds our product mix that we are going to launch over Yes. Okay. Okay. Thank you. 6:57 6 minutes, 57 seconds Yeah. So, it's all okay. That was from my side. Thank you so much. 7:04 7 minutes, 4 seconds Thank you. 7:06 7 minutes, 6 seconds Thank you. A reminder to all the participants that you may press star and one to ask a question. Next question 7:13 7 minutes, 13 seconds comes from the line of Susant Guatra, an individual investor. Please go ahead. Yeah. Hi, sir. Can I audible? 7:20 7 minutes, 20 seconds Yes, you are. So uh first of all congratulations for a good set of numbers. Uh there are few FMCG companies 7:29 7 minutes, 29 seconds and probably you're a small cap small in a small cap category which is doing such good. So again congratulations. So first 7:35 7 minutes, 35 seconds question is s in continuation to uh the previous uh individual investor was according the capacity expansion. So 7:44 7 minutes, 44 seconds when can we expect the commen commencement of the same number one uh number two in India like the business in 7:52 7 minutes, 52 seconds India versus uh like the exports what is the percentage and uh just one thing I I 7:59 7 minutes, 59 seconds it seems that India business is very smaller part of the overall revenue whereas uh there's a huge uh like 8:07 8 minutes, 7 seconds opportunity in India so can you throw some light like how can we push the India sales is there any plan or uh like you can like throw some knowledge on this it will really help. Thank you sir. 8:18 8 minutes, 18 seconds Okay. Uh starting with your first question the uh the commercial operations from the new unit is expected 8:25 8 minutes, 25 seconds to uh start from you know uh 18 to 21 24 months uh from now on. So technically we are expecting the uh revenues to 8:34 8 minutes, 34 seconds commence from the new unit uh in financial year 28 29 uh roughly that is one part. Second is that the the 8:42 8 minutes, 42 seconds overseas overseas overseas uh businesses include the uh contract manufacturing which we are getting it done uh through Malaysia and catering to the Middle East 8:51 8 minutes, 51 seconds and other African countries directly from there and uh the overall contribution of the overseas the overseas manufacturing is approximately 8:59 8 minutes, 59 seconds close to uh 80 80% roughly and the rest is coming from the Indian uh manufacturing unit and uh the as regard 9:07 9 minutes, 7 seconds to the uh the expansion of the domestic contribution to total sales. Yes, we are in line with that and the that's why the 9:14 9 minutes, 14 seconds new unit is also expected to uh increase the domestic contribution to at least 50 to 60% of the of the overall turnover in 9:23 9 minutes, 23 seconds uh next two to three years. And further we uh we are we are we are expanding the uh current uh uh manufacturing 9:31 9 minutes, 31 seconds facilities by adding two to three lines in the in the in the in the financial year 26 27. So that will add up to the 9:38 9 minutes, 38 seconds uh manufacturing capacities to generate higher sales from the existing uh setup in India. So further we are also 9:46 9 minutes, 46 seconds targeting the uh some uh manufacturers which will be manufacturing our products on contract manufacturing uh which are 9:53 9 minutes, 53 seconds located uh in the in the in the in the western uh area where we are targeting now. So these the they will be 10:00 10 minutes manufacturing based on the recipes that we are into. 10:04 10 minutes, 4 seconds So we can cater to those uh customers or the uh the the the target customers in these areas also to boost the turnover in the Indian market as well. 10:14 10 minutes, 14 seconds Got it sir that answered very well. Just one thing so FY26 last quarter and FY27. 10:21 10 minutes, 21 seconds So where can we uh see the growth like uh just a percentages if if we can like if any numbers you can give probably the revenue guidance probably if possible. 10:30 10 minutes, 30 seconds Actually since the last time when we had a investor call we had given a guidance for approximately 1,000 cr for this financial year. So till 31st December we 10:39 10 minutes, 39 seconds have already crossed 825 uh uh cr of the top line uh with 766 cr topline in last 10:47 10 minutes, 47 seconds year. So there is a there is a jump of 7.70% uh overall till 31st December. So given 10:54 10 minutes, 54 seconds the t given the the the good numbers we we are expected in quarter 4 of fi 26. 10:59 10 minutes, 59 seconds So we are expecting our to total top line will be roughly close to 100 uh 1,150 cr roughly uh so that will be 11:08 11 minutes, 8 seconds approximately a jump of approximately 50% to the last year turnover. So uh things are looking very good and uh we 11:16 11 minutes, 16 seconds will be generating a good topline for next quarter as well. 11:20 11 minutes, 20 seconds Great. So that just just two statements from my side. One is now market has started giving valuation to uh to integrated industry that is very good 11:28 11 minutes, 28 seconds which I have seen uh long aaited which was long awaited because of the margins which we are doing and the revenue we are meeting the revenue numbers 11:36 11 minutes, 36 seconds um and and best of luck sir to you and your team doing the great job in future. Thank you. Thank you sir. Thank you. 11:46 11 minutes, 46 seconds Thank you. A reminder to all the participants that you may press star and one to ask a question. Next question comes on the line of Ritik with Motilal 11:54 11 minutes, 54 seconds Oswal Financial Services Limited. Please go ahead. 11:58 11 minutes, 58 seconds Uh hi sir, thank you for the opportunity and uh congratulations on great set of numbers. 12:05 12 minutes, 5 seconds So my question was that uh so basically uh the Indian uh I I'm seeing the revenue for India the revenue 12:13 12 minutes, 13 seconds has declined over uh while for the Indian business. So what was the reason behind that? Are we not focusing on the Indian business? 12:25 12 minutes, 25 seconds No. No. I think you have some uh in figure domestic revenue is also increasing. 12:31 12 minutes, 31 seconds So I I'm checking from the financials only. 12:36 12 minutes, 36 seconds Yeah. But uh no there there is an increase in the uh in the domestic revenue also. And uh 12:44 12 minutes, 44 seconds precisely if I uh if I uh see the last year the domestic turnover was 12:51 12 minutes, 51 seconds approximately uh 35 to 40 cr and on a quarter basis and the same similar line at least 10% jump is there in the 12:59 12 minutes, 59 seconds domestic revenue as well in the in this quarter. 13:03 13 minutes, 3 seconds So sir uh I am seeing that for the December 24th quarter we were generating revenue of 41 crores and now it's 34 kores. 13:11 13 minutes, 11 seconds No, this this quarter 41, last quarter 34 to 352. 13:18 13 minutes, 18 seconds Okay sir. So uh what is the volume growth for the company? 13:24 13 minutes, 24 seconds So in terms of volume growth, yes uh in terms of tonnage, there is a uh there is a similar growth in line with the tonnage also. That is approximately uh 7 to 8% growth in the tonnage as well. 13:36 13 minutes, 36 seconds Okay. And uh how much is our portfolio premiumized? Uh basically what what is the percentage of the portfolio which is premium portfolio of the company? 13:48 13 minutes, 48 seconds Uh in terms of premium means what the category of the product? Yes. Yes. In category of product. 13:56 13 minutes, 56 seconds See we we we are we are into uh biscuit segment uh which is uh which we are getting to tier two and tier three 14:02 14 minutes, 2 seconds sitting in. So which are the the basic uh premium uh basic cookie uh like bean biscuits, jeera, jeera biscuits and uh 14:11 14 minutes, 11 seconds the uh that uh the other kind of biscuits. So which under the panel light. So the major major contribution 14:19 14 minutes, 19 seconds is coming from this segment only and we uh the the primary objective of setting up the second unit is is to is to expanding our premium product range 14:27 14 minutes, 27 seconds which is uh presently uh uh limited in terms of numbers to the total turnover. 14:33 14 minutes, 33 seconds So this new unit is expected to uh to to to enable us to get into the premium segment of cookies as well. So as of now we are into tier 2, tier three 14:41 14 minutes, 41 seconds cigarettes with the with the core biscuit. 14:48 14 minutes, 48 seconds Okay. Understood. And so one last question is that uh majority of the revenue is from overseas and which is the biggest country in the overseas which which we are supplying to? 14:59 14 minutes, 59 seconds It's basically the African countries. 15:02 15 minutes, 2 seconds Sorry Africa. applicant uh territory is the major contributor to the total top line of the overseas business 15:10 15 minutes, 10 seconds and what will the figure would be sorry what will be the percentage of African 15:18 15 minutes, 18 seconds to the total revenue see African countries uh we are getting to approximately 12 to 13 countries there and their total contribution is uh 15:26 15 minutes, 26 seconds roughly close to 77 to 80%. Rest 25% is coming from the GCC. 15:33 15 minutes, 33 seconds Understood. Uh thank you sir. I'll come back in the queue further questions. 15:41 15 minutes, 41 seconds Thank you. A reminder to all the participants that you may press star and one to ask a question. Next question comes from the line of Sonia Keswani with Gohir. Please go ahead. 15:54 15 minutes, 54 seconds Hello. Yeah. 15:57 15 minutes, 57 seconds Yeah. Hi. Hi. Thanks for the opportunity. Um I had a couple of questions. So firstly on the uh plant 16:05 16 minutes, 5 seconds that we have in Rajasthan in Nidmana what is the capacity utilization there? 16:11 16 minutes, 11 seconds 3600 tons per month that is the actual capacity that is there and we are utilizing approximately 16:19 16 minutes, 19 seconds 65 to 70% as of now 2,000 tons. 65 to 70%. 16:25 16 minutes, 25 seconds Okay. Um and if I see the new Sicand plant that was scheduled to be 16:33 16 minutes, 33 seconds operational by October 2026, can you please help me understand why? Because I think to the previous participant you 16:40 16 minutes, 40 seconds said that it will take another 2 years for the plant to start operations. What has been the reason for this detail? 16:48 16 minutes, 48 seconds See the uh the land has already been acquired and the internal uh working as regard to the production line setting up 16:55 16 minutes, 55 seconds of the line interior then that is already under process. So there are certain uh failing approval plan that is panning. So for that one unless we 17:04 17 minutes, 4 seconds receive that we cannot start the the election work. So we are very much in line with that. We I think uh we we are 17:11 17 minutes, 11 seconds we will be able to complete the uh the entire setup by next uh by another uh roughly 12 to 15 months. So we will catch up with the production uh soon. 17:23 17 minutes, 23 seconds Okay. 17:25 17 minutes, 25 seconds And yeah and on the trading business as I understand I think we whatever uh products that we are selling in the 17:33 17 minutes, 33 seconds overseas market most of I mean 100% of that is contract manufactured by other third party manufacturers. 17:41 17 minutes, 41 seconds Correct. [clears throat] So and once we get it manufactured are we selling these products under our own brand or is it is it a white label product? 17:53 17 minutes, 53 seconds No, this is this is entirely under our brand name. Uh we we we deliver the recipes, we give the packaging, they manufacture as per our requirements 18:02 18 minutes, 2 seconds under our own brand name which light and the packaging is done in such a way that our brand name is also there on that. So we take uh we we we are doing 100% under our own brand. 18:12 18 minutes, 12 seconds Got it. So just to understand the how many um uh when I was going through the 18:19 18 minutes, 19 seconds RHP I saw that in the overseas business and the trading which is the trading business uh 75% of the total revenue is 18:28 18 minutes, 28 seconds coming from one single customer if I see FY25. 18:32 18 minutes, 32 seconds So can you help me understand why is that so and are we doing what are the steps we are taking to diversify our client base? 18:42 18 minutes, 42 seconds See uh basically uh how our business model is set up now uh we have to understand that we are we are doing through the consolidators and uh stock 18:50 18 minutes, 50 seconds is uh located in uh uh UA and other Middle East countries. So they have onward uh data to the African market so 18:57 18 minutes, 57 seconds that we we don't need to worry about the realization. So that is the business model which is being uh deployed by the other industry players also. So we we 19:05 19 minutes, 5 seconds operate through the consolidator. So these consolidator normally take chunk of the production or the you know the inventory and then they cater to the 19:14 19 minutes, 14 seconds various uh uh you know the customers which are you know located in African and other GCT countries. So that's why you see the consolidation at the 19:21 19 minutes, 21 seconds customer customer consolidation at one level but ultimately the the the number of customer that are catering to these consolidators are big in numbers. 19:30 19 minutes, 30 seconds So uh basically you're telling me that when you say that 75% is coming from one particular customer that is our stock is in the overseas market. 19:40 19 minutes, 40 seconds Correct. 19:41 19 minutes, 41 seconds So how many stockers do we have in the overseas market? How many are we on board? We we we we present we have approximately 18 uh super stock based uh 19:49 19 minutes, 49 seconds consolidators and how much is that one single customer contributing to revenues for 9 months 19:58 19 minutes, 58 seconds FY26 I think it will be uh approximately uh 20:05 20 minutes, 5 seconds two two to three uh super and rest is widely distributed between them two to three are contributing 75%. 20:13 20 minutes, 13 seconds No, not 70%. 50 to 55%. 20:17 20 minutes, 17 seconds This year 5%. Okay, got it. And uh yeah, your so your tax rates have been really low. Can you help me understand why? 20:28 20 minutes, 28 seconds Yeah, because because the uh the the overseas business is tax exempted because the uh because of the loan offshore income for that particular 20:36 20 minutes, 36 seconds country. So that's why there's no tax on that income and we are paying taxes only uh corresponding to the Indian income. 20:42 20 minutes, 42 seconds So that is why the taxation level in terms of amount as well as the percentage is low. 20:47 20 minutes, 47 seconds So basically as I understand I mean I think going ahead our focus will be more on building our Indian business and our 20:56 20 minutes, 56 seconds uh uh the product that we sell will come more from our manufacturing uh piece. So which will also increase our tax rate. 21:05 21 minutes, 5 seconds Yeah. At the moment the inter Indian contribution is expected to grow the the the the taxation uh will increase but 21:12 21 minutes, 12 seconds but again the uh the overall contribution to the total profits is also expected to grow uh because of the increased profits we are expecting from 21:20 21 minutes, 20 seconds the premium segment which we are which will be captured from the uh the uh new unit. So somehow the taxation will not have major impact because the overall 21:28 21 minutes, 28 seconds contribution to the total profits are also going to go up. 21:32 21 minutes, 32 seconds So what would be the change in margin profile as soon as our manufacturing piece picks up? 21:39 21 minutes, 39 seconds See the presently the cost of gross margin that we have in the Indian market is approximately 10 to 12% 13% and uh with the new setup coming up it will uh 21:47 21 minutes, 47 seconds go almost double it will go up to 25 to 30% because of the premium nature of the segment that we are going to add to. So that's why I'm I'm telling you that the profits are going to grow. 21:58 21 minutes, 58 seconds Understood. Understood. And so last question just to understand I I wanted to understand the history of the 22:05 22 minutes, 5 seconds management uh who's handling the business. I just want to understand the rationale and what has been the management's view for entering an industry which is already so crowded. 22:15 22 minutes, 15 seconds See the management is already a very experienced management. they they they they were previously they were uh they started with the steel industry and they 22:22 22 minutes, 22 seconds have been doing very well there also and uh the thereafter in 2023 uh they started with the setting up of the unit uh for the biscuit manufacturing and 22:31 22 minutes, 31 seconds there also they have been doing very well. So the apart from that they have a uh interest in the telecom sector also they they are doing all extremely well 22:38 22 minutes, 38 seconds also. So that's why the the uh telecom telecom telecom yeah 22:46 22 minutes, 46 seconds and therefore the they they are handling the wide uh industry gamut I would say and uh the results itself shows that the 22:55 22 minutes, 55 seconds overall leadership has been extremely well uh as you can see from the number as well. So going forward the same trend is expected to go grow go and uh we will 23:03 23 minutes, 3 seconds be delivering much better and higher numbers in coming time. 23:08 23 minutes, 8 seconds Understood. Okay sir. Thank you so much for answering my question. Thank you. 23:16 23 minutes, 16 seconds Thank you. Next question comes from the line of Guggard with three investments. Please go ahead. 23:24 23 minutes, 24 seconds Uh hello congrats on a good set of numbers. I just uh I'm new uh in tracking this company. So just wanted to know your broad long-term vision with 23:33 23 minutes, 33 seconds this company like what kind of uh sales you are targeting in next 3 years like what kind of profit margin you will be 23:42 23 minutes, 42 seconds working on and capacity expansion and what kind of asset turns you can do on that. Couple of basic questions please. 23:51 23 minutes, 51 seconds uh see uh as as as you can see from the present number also the numbers have grown up and uh for next uh in terms of 23:59 23 minutes, 59 seconds the capacity as already said that we are coming up with a new unit uh where we will be increasing our capacities further the existing uh unit will have 24:07 24 minutes, 7 seconds the uh additions in the life so again the capacity of the existing unit will also go up so coming up with the total 24:14 24 minutes, 14 seconds number so we are expecting roughly uh targeting uh to 2,500 crores once second 24:21 24 minutes, 21 seconds uh is operational. So 2500 cr is a target for FI29 uh uh total uh business 24:29 24 minutes, 29 seconds and in terms of the number so with the second year having the better margin so we expecting the partners to grow from 10% to approximately 15% in next 2 to 3 24:37 24 minutes, 37 seconds years uh these are pat margins you're talking about aa margins that I'm talking a bit margin 10 to from then it will be rising to 15%. 24:47 24 minutes, 47 seconds Correct. 24:48 24 minutes, 48 seconds Okay. And like this 2500 K revenue you said with uh current capacity operating at 100% and the new one also operating at 100%. 24:57 24 minutes, 57 seconds No no no no the current capacity expected to operate at uh 80 to 85% and the news capacity also in line with that 80 to 85%. 25:04 25 minutes, 4 seconds So total capacity operating at 85% will give you a revenue of 2500 cr in FY 29. 25:10 25 minutes, 10 seconds No that is no you have to distinction between the overseas business and the Indian business. So I'm talking about the Indian business. So Indian business is expected to contribute roughly close 25:17 25 minutes, 17 seconds to 1200 to,300 crores over in the overall 2500 cr business. So that capacity which I'm talking about is pertaining to 1200 to,300 cr uh business from the domestic market. 25:28 25 minutes, 28 seconds Uh the second capacity right? Yeah including that. 25:33 25 minutes, 33 seconds Okay. Both both the capacities including Yeah. So that will contribute around 12 to 13. So around half of the revenue, right? 25:41 25 minutes, 41 seconds Yeah. Yeah. 25:43 25 minutes, 43 seconds And the overs will contribute the other 50%. Approximately that will be the over. Yes. 25:50 25 minutes, 50 seconds Okay. So like like uh you ended FI25 with around 750 K of revenue. 25:55 25 minutes, 55 seconds So like uh FI FI26 mostly you will be ending around say 1 1200 K. So around I guess that will be 26:05 26 minutes, 5 seconds the number right. And from 3 years from FI26 you are targeting 2500 right? Yes. Yeah. 26:13 26 minutes, 13 seconds So can uh like what are the asset turns generally in this business? What are the uh asset turnover risk? 26:23 26 minutes, 23 seconds See asset turnover is depending on the acts that we do. Uh going forward we are expecting a roughly uh addition of 26:30 26 minutes, 30 seconds approximately 350 cr and 100 cr of the cap is already done in uh till now. So we will add approximately close to uh 4 26:38 26 minutes, 38 seconds 400 to 450 cr of the capex. So with that 1 1500 C it will pay approximately 3 to 300 3 to 3.5 times of the gross block. 26:49 26 minutes, 49 seconds Okay. So so basically what I wanted to understand is like 3 years from FY26 you are targeting to double the revenues. Is my understanding correct? 26:59 26 minutes, 59 seconds Sorry. 27:01 27 minutes, 1 second So like once you end FI26 with around upwards of 1100 1200 crores revenue so from there you are roughly targeting to 27:10 27 minutes, 10 seconds double the revenue in next 3 years right yeah capacities yeah yes because capacities are there to support you 27:19 27 minutes, 19 seconds okay so like okay and margins will increase from current 10% to 15% right yes the overall margins 27:27 27 minutes, 27 seconds uh this we are not talking about India India specific for the international market specific right you are talking as a whole no I'm talking about overall margins 27:37 27 minutes, 37 seconds okay the company margins will move from 10% to 15% right okay and what about the roe and ro 27:44 27 minutes, 44 seconds numbers what you are targeting and currently what is the figure ro number uh going forward for let's say 27:54 27 minutes, 54 seconds once this capacity expansion is done so we are targeting approximately uh 20 uh 24 to 35% uh going forward and uh for 28:03 28 minutes, 3 seconds this uh till date is I think we uh I need to check the figure like terms of 28:12 28 minutes, 12 seconds 1 minute I think presently we are uh uh 15 to 18% 28:22 28 minutes, 22 seconds roughly I think we are we are at level currently are 15 to 18%. Yeah. 28:29 28 minutes, 29 seconds Okay. And this capacity addition which you are seeing uh you will start this from what year? 28:35 28 minutes, 35 seconds We will start off uh by the end of FY 27 uh the trial runs will be done but next for entire 12 months will be at 28 by9. 28:45 28 minutes, 45 seconds Okay but you will start it will start contribute contributing from uh say April of 27 right? 28 correct 2 28:53 28 minutes, 53 seconds 28 okay FI 27 28 we will start the the trial runs in last 29:00 29 minutes quarter of FI 28 but I think the overall commercial production will start from March or April that depends on how uh uh 29:09 29 minutes, 9 seconds quickly the trial run uh we we are able to do so so like two years from now more one and a half years from now 29:16 29 minutes, 16 seconds correct okay and like current capacity 6% so how quickly you can ramp it up to 80 to 85% till the next capacity comes up. 29:27 29 minutes, 27 seconds See the the the order book is there in the with us. So that that that will help us to uh increase the capacity and 29:34 29 minutes, 34 seconds translate into sales. So that that's why we don't see any any any problem as to the uh cap increase in the capacity. We 29:42 29 minutes, 42 seconds are adequately placed with the orders as well as the working capital. So uh get increasing the capacity is not an issue for us. 29:52 29 minutes, 52 seconds Thank you Mr. Ona. Please rejoin the queue for more questions. 29:57 29 minutes, 57 seconds Next question comes from the line of S of K with VT Capital Market Private Limited. Please go ahead. Hello. 30:06 30 minutes, 6 seconds Hello. Hello. Can you hear me? Yeah. Yeah, you are. 30:11 30 minutes, 11 seconds Yeah. What type of new product we are going to launch? Suppose we have launched this water. 30:20 30 minutes, 20 seconds Sorry, can you repeat? 30:22 30 minutes, 22 seconds I'm telling you what type of new products we are going to launch in coming quarters. 30:28 30 minutes, 28 seconds See, we are planning there are a lot of things going on but we are shortlisting it right now but we have we have started 30:34 30 minutes, 34 seconds doing rest the curry biscuits, muffins, donuts and we are also entering into confectionary business now. So we are 30:42 30 minutes, 42 seconds planning noodles as well, some cornflakes, chocolates, breads of like there is a 30:49 30 minutes, 49 seconds lot of variety and we are shortlisting it and making it more clear now but there will be a lot of products more into confectionary and baking products. 30:59 30 minutes, 59 seconds Okay sir. 31:02 31 minutes, 2 seconds So then means noodles and these are in process not launch yet. 31:08 31 minutes, 8 seconds Sorry, noodles and chocolates are in the process. 31:14 31 minutes, 14 seconds Yeah. Yeah, it's in the process. We have started the trial runs but some of the things are going in the market for the 31:22 31 minutes, 22 seconds review. Samples have been given to the market and uh we have got the successful uh the the response from the market. So 31:29 31 minutes, 29 seconds now we are uh officially launching it in next 1 month or two months. Yes sir. 31:35 31 minutes, 35 seconds So what is our current working capital cycle sir? 31:38 31 minutes, 38 seconds That is yeah it is 65 to 90 days approximate. 65 to 90 days and any debt. 31:49 31 minutes, 49 seconds So we don't have a debt but apart from the working capital limit that we have from the bank otherwise there is in terms of long-term debt there is no such debt. 31:58 31 minutes, 58 seconds Okay. Thank you sir. 32:02 32 minutes, 2 seconds Yes, thank you. Next question comes in the line of Rdra Raha with I thought financial consulting please go ahead. 32:15 32 minutes, 15 seconds Yeah, thank you for the opportunity sir. 32:17 32 minutes, 17 seconds Uh so you were explaining that the domestic business which is as of now uh around 100 crores or let's say we end 32:26 32 minutes, 26 seconds the year around 120 130 crores this year. uh this has to go to has the 32:33 32 minutes, 33 seconds potential to reach 1,00,1200 crores in next 3 years and uh that this is mostly 32:40 32 minutes, 40 seconds the manufactur manufacturing setup uh but the new plant that you are saying that will come 32:47 32 minutes, 47 seconds online in the next two years. So I wanted to understand how we will able be to ramp this business up when our uh 32:55 32 minutes, 55 seconds plant is going to come online after 2 three years. 33:01 33 minutes, 1 second See the presently the domest as you rightly said the domestic segment is contributing approximately 100 cr total 100 cr to the total turnover till 31st 33:08 33 minutes, 8 seconds December and uh with the existing capacity of 65% utilize so we are increasing the capacity uh this year uh 33:16 33 minutes, 16 seconds in for the domestic uh um unit. So we are expecting the for next financial year the domestic contribution uh is 33:25 33 minutes, 25 seconds going to increase from 125 to 30 to approximately 250 crores to 25 to 230 crores. Uh thereby we are adding some 33:33 33 minutes, 33 seconds contract manufacturers also. So they will be manufacturing the goods as per our requirements and the overall brand brand till the time the our capacities 33:40 33 minutes, 40 seconds come into operation. So that that's the plan to increase the turnover uh once the the the the new unit comes into 33:48 33 minutes, 48 seconds operation. So that will replace the contact manufacturer and we will be uh manufacturing under our own brand. So by the time the new unit comes in we will 33:56 33 minutes, 56 seconds have the customer base setup for the under. 34:02 34 minutes, 2 seconds Understood. So what you are saying that you have already got a lot of orders on hand. Is that the right way to look at it? 34:10 34 minutes, 10 seconds Yeah. Yeah. Yes. 34:12 34 minutes, 12 seconds And sir could you explain more on this order book concept? How does it work in our domestic business? like how long how 34:19 34 minutes, 19 seconds uh in advance we get our orders and some more details would help. 34:24 34 minutes, 24 seconds See we we we we operate through super stockist and the consolidators. So they are present in the tier 2 and tier three 34:31 34 minutes, 31 seconds cities in northern uh India. So uh we we we we they are the ones who are you know working at the ground level uh with with 34:39 34 minutes, 39 seconds the with the various retailers and you know the uh the people who are providing us the space uh for the for selling the 34:47 34 minutes, 47 seconds uh our product. So the distribution point that we have we get the feedback from them through the super stockers and consolidators based on that super 34:56 34 minutes, 56 seconds stockers and consolidators develop their own requirement for next let's say 3 months four month depending on the variety of the business that they are getting the better feedback from the 35:04 35 minutes, 4 seconds market uh with the with the other competitors with us. So then they they they give us the long-term orders so that they so that we can we can provide 35:12 35 minutes, 12 seconds them the additional quantities uh with them so that they can cater to the increased requirement that they are able to get from the market. So that is the 35:20 35 minutes, 20 seconds reason that why we are very much confident on the turnover [clears throat] turnover part because these consolidators have been given uh 35:28 35 minutes, 28 seconds higher for the in terms of the varieties as well as the uh geographical areas that they they are also uh you know 35:36 35 minutes, 36 seconds catering to. So based on that we have sizable order books and this this that's how the order book is being developed over the last one year. 35:45 35 minutes, 45 seconds Further the new stop office are added depending on the geographic they are they are located in. So these new sus office also place the order with us. 35:56 35 minutes, 56 seconds Got it sir sir which would be the key states that are contributing to our domestic revenues as of now and their 36:03 36 minutes, 3 seconds what can you explain it again? The key states that are contributing to our domestic revenues state. 36:12 36 minutes, 12 seconds Yeah. Top states. Yeah. Punjab, Rajasthan, Hana, UP, 36:20 36 minutes, 20 seconds JNK and what would be the percentage share of top three states? 36:31 36 minutes, 31 seconds Approximately 40 to 45. 36:35 36 minutes, 35 seconds Got it sir. Got it. And sir uh I'm deviating a bit from this uh line of uh questions. I wanted to understand like 36:44 36 minutes, 44 seconds you are uh first of all expanding on your Nimirana plant adding some lines there. Then there is another capex of another plant. So could you quantify all 36:53 36 minutes, 53 seconds of that how much uh would be that in quantum piece by piece in terms of what? 37:00 37 minutes Yeah. So how much uh money we are going to spend on expanding the Nimirana plant? First question is that 37:13 37 minutes, 13 seconds the existing plant uh the overall uh the addition in the line will take approximately uh 15 to 20 odd crores 37:20 37 minutes, 20 seconds that is there in uh in that is already there in the company. So and for the new unit we are we are considering a capex of approximately 400 cr uh wherein 300 37:30 37 minutes, 30 seconds 300 will be going towards the capex and rest 100 cr will go towards the working capital. So that is the overall uh capex 37:38 37 minutes, 38 seconds uh number that we have identified for next uh two years answer do we plan to raise any debt to 37:46 37 minutes, 46 seconds finance any of this? No, there will not be any debt. Yes. But uh it will be funded entirely uh through the promoter's contribution some internal 37:53 37 minutes, 53 seconds approval as rest will be through the uh through the uh the gap markets capital market. So we'll we'll be raising more uh equity to finance this. 38:06 38 minutes, 6 seconds Correct. Correct. 38:08 38 minutes, 8 seconds And sir alongside promoted contribution also. Yeah. And when do we plan to do this? 38:15 38 minutes, 15 seconds uh uh we are uh working on that uh line. 38:18 38 minutes, 18 seconds The numbers are being finalized. So we are expecting it will start from uh uh June or July onward 2026. 38:29 38 minutes, 29 seconds Understood sir. Understood. 38:33 38 minutes, 33 seconds Uh I'll come back in the queue for more if I have more questions. Thank you sir. Thank you. 38:40 38 minutes, 40 seconds Thank you. A reminder to all the participants please restrict yourself to two questions. 38:46 38 minutes, 46 seconds The next question comes from the line of Shantanu Taluktar with an individual member. Please go ahead. 38:54 38 minutes, 54 seconds Hello. 39:00 39 minutes Yes. Yes. Yes. My first question is at 100% capacity, what is the maximum annual revenue the current plant can generate? 39:12 39 minutes, 12 seconds that can uh reach approximately 200 to 235 cr of the turnover. 39:17 39 minutes, 17 seconds Okay. Okay. My my second question is to reach 2,000 K of revenue will existing capacity be enough or do we need do we need expansion or outsourcing? 39:30 39 minutes, 30 seconds Sorry, I did not understand your question. Can you repeat? 39:32 39 minutes, 32 seconds Yes. Yes, please. to reach 2,000 K revenue will existing capacities be enough for us or do we we need for any 39:40 39 minutes, 40 seconds capex or expansion plan? It it will be it will be both. Uh we are adding two to three lines in the existing sector and 39:48 39 minutes, 48 seconds we are coming with a new unit wherein the capacity uh will increase. So those two factors will contribute to the higher numbers for next two to three years. 39:56 39 minutes, 56 seconds Okay. 39:58 39 minutes, 58 seconds My third question is what is the exact uh trend in product mix or cost structure will help epito margin move forward to 15%. 40:09 40 minutes, 9 seconds Sorry, can you repeat the question again? 40:11 40 minutes, 11 seconds What exact changes in product mix or cost structure will help edit margin move forward to 15%. 40:18 40 minutes, 18 seconds Yeah, because the uh the the the new unit will have a premium segment of uh biscuits uh like cookies and other confectionary items where the profit 40:26 40 minutes, 26 seconds margins are higher than the regular biscuit uh segment. So where we are earning 10% so there the uh contribution 40:34 40 minutes, 34 seconds because of their higher contribution the overall beta margins will go up from 10% to approximately 15% in two to three years. 40:41 40 minutes, 41 seconds Okay. And uh currently how much of next quarter revenue is already backed by concomd order? 40:50 40 minutes, 50 seconds That is uh that is already uh backed by approximately uh we have 75 to 80% of the orders uh booked for next quarter. 41:01 41 minutes, 1 second Thank you Mr. Talagtar. Please rejoin the queue for more questions. 41:06 41 minutes, 6 seconds Next question comes from the line of Romesh and individual investor. Please go ahead. Hello. 41:14 41 minutes, 14 seconds Yeah, please go ahead. 41:15 41 minutes, 15 seconds Yeah, thank you for thank you for the opportunity. Um, see in uh Q2 41:19 41 minutes, 19 seconds [clears throat] 41:20 41 minutes, 20 seconds your trade receivables were around 216 crores. So, can I know the status of has it come down in this quarter? 41:30 41 minutes, 30 seconds See the uh the receivables are being generated over the normal course of business and uh given the the credit period that we are offering to these 41:39 41 minutes, 39 seconds customers. These all are receivables and regular we have out of this 216 we have real we must we have realized approximately 41:47 41 minutes, 47 seconds 175 cr out of it but again the sales again for the month of April for the month of January and February is happening. So we our overall data level remains at this level only. 41:58 41 minutes, 58 seconds These are a regular regular uh business data. So nothing uh is sticky or you know that that thing is there. These are regular datas and the payments are coming in the due time. 42:09 42 minutes, 9 seconds Great. Thank you. 42:14 42 minutes, 14 seconds Thank you. Next question comes from the line of Rangan and individual. So please go ahead. 42:20 42 minutes, 20 seconds Uh good morning. I'm very happy with the set of numbers but the company is not at all contactable either through mobile or 42:28 42 minutes, 28 seconds email anything that very bad actually on the part I feel that you should communicate to the shareholders by way 42:35 42 minutes, 35 seconds of letter or something like that and I would like also to know about the product where will I get in Chennai we 42:42 42 minutes, 42 seconds send a sample I mean pieces of the account which will pay we are ready to pay and where will I get in because not 42:50 42 minutes, 50 seconds at all contactable either through mobile or something like that. It's a very solid state actually and I wish you all 42:57 42 minutes, 57 seconds the best you're keeping on increasing capacity. What is the conversion cycle? 43:01 43 minutes, 1 second How many number of dates actually then how the backward integration can take place and 43:09 43 minutes, 9 seconds that won't have like see you are having a setup in Dubai only for the purpose of tax like that can you throw some light 43:17 43 minutes, 17 seconds thanks I think some voice issue he uh he had but whatever I could understand I will 43:25 43 minutes, 25 seconds try to explain uh the the email ids are totally working phone number is working and We are uh and if if if if we have 43:33 43 minutes, 33 seconds not been able to contact on that uh phone number or something we will definitely look into it but at least you can drop a mail the reply will definitely come from our office that is 43:40 43 minutes, 40 seconds not an issue and uh the rest of your questions uh what I could understand uh is that the you you you said about the 43:49 43 minutes, 49 seconds capacity. So yes, we are increasing our capacities and uh the sample that you are telling uh you can drop your details 43:56 43 minutes, 56 seconds right we will ask the marketing team to reach to you and provide the sample that is not an issue I think uh these are the questions I 44:04 44 minutes, 4 seconds think cycle how many number of days you take for realization how many number of days we take for 44:12 44 minutes, 12 seconds conversion cycle yeah that is 65 to 90 days approximately depending on the the the uh the product it ranges from 65 to 90 90 days. 44:25 44 minutes, 25 seconds Thank you Mr. Rangan. Please rejoin the queue for more questions. Next question comes from the line of Guggar with Shri Investments. Please go ahead. 44:38 44 minutes, 38 seconds So I just wanted to know like uh what kind of seasonality is there in the business? Is there any or if not then 44:46 44 minutes, 46 seconds how does that business work in four quarters? seasonality see seasonality is not uh the very much 44:54 44 minutes, 54 seconds an important important factor because you know the uh if if I see that there can be an there can be a seasonality for let's say one to two months max but 45:03 45 minutes, 3 seconds otherwise you know the we we are cing to the to the other states also where the where the you know winter or you know the uh the summer doesn't much uh impact 45:13 45 minutes, 13 seconds so that's why we we don't foresee any seasonality if you see our numbers also there has been a constant uh increase on quarter and quarter basis. So if you see 45:21 45 minutes, 21 seconds the four quarters also there has been a jump only. So we don't foresee any uh season the negative impact of seasonality in our coffee. So we have 45:28 45 minutes, 28 seconds been doing it very well for last four four quarter if you see the numbers you'll get to know about it. 45:35 45 minutes, 35 seconds Okay. Another thing is that you've just now mentioned previously to one caller that at peak capacity 100% utilization 45:43 45 minutes, 43 seconds you'll be doing around 200 to 250 cr of revenue right so like then uh total how many like 45:53 45 minutes, 53 seconds clients you have and like total how many uh like how much is the total capacity as of now and how much you are adding in 46:00 46 minutes two years see in terms of the existing setup at Nimiran Now we we we we are operating at 46:07 46 minutes, 7 seconds a 65% of the capacity. So given the 100% capacitation we will reach 200 225 cr but in next year we are planning to add 46:15 46 minutes, 15 seconds two two to three lines in the existing setup. So given the 100% larger for those capacities also we can reach up to 300 and 350 crores and there are certain 46:24 46 minutes, 24 seconds uh contact manufacturers that we have been also tied up with. So there we can get the uh the the manufacturing done uh to cater to the states which are near to 46:33 46 minutes, 33 seconds the uh uh to the to the contract manufacturer so that we can save on the uh the transportation cost as well. So 46:40 46 minutes, 40 seconds that is the basic idea of increasing the capacity. 46:43 46 minutes, 43 seconds So right now how how many how much uh this uh contract manufacturers contribute to your overall sales as of now? Zero. 46:53 46 minutes, 53 seconds No no as of now zero. as of now zero we are manufacturing the goods 100% in our own uh uh plant. 47:04 47 minutes, 4 seconds Okay. But I guess uh I'm not getting something correct here or like uh there is some disconnect. So total sales for 47:11 47 minutes, 11 seconds the last year were 76 760 kores right and current capacity at full 100% 47:20 47 minutes, 20 seconds utilization okay I understood I understood I understood see out of this uh this total 700 cr roughly of the turnover the there 47:28 47 minutes, 28 seconds are two uh two contributors to it one is the manufacturing facility in India at nimra Rajasthan and other is the overseas business where we are getting 47:36 47 minutes, 36 seconds the the biscuit manufacturer through contract manufacturing regarding the capacity which I stated was pertaining to the Indian uh plant 47:45 47 minutes, 45 seconds that is uh 200 cr to 225 cr that is pertaining to Indian plant rest turnover contribution contribution is coming from 47:52 47 minutes, 52 seconds the overseas segment which is uh uh contract manufacturing of the biscuits that's how the uh the the sales are you 48:00 48 minutes know achieved and what is the current capacity utilization in the international plant and the new capacity will be for the international plant 48:09 48 minutes, 9 seconds No no see international plant we don't have a capacity we are getting it manufactured through the contract manufacturers we don't have a capacity there so therefore it is not it is not 48:18 48 minutes, 18 seconds possible to tell you that what is the capacity for the overseas section even the new unit that is come coming up will be getting to the new customers it 48:25 48 minutes, 25 seconds will have its own customer base uh apart from the overseas uh customers that we have through our overseas uh subsidiary 48:32 48 minutes, 32 seconds but that will be serving the Indian market or the overseas market both approximately 70% will be Indian and 30% will be exports. 48:42 48 minutes, 42 seconds Okay. And what what is the difference between the margin in international and Indian markets? 48:47 48 minutes, 47 seconds See as of now in Indian India Indian uh segment we are we are generating a margin of uh 6 to 8% uh the overall 48:55 48 minutes, 55 seconds margin and the overseas secretary is giving us a margin of 10%. So with the new unit with premium segment uh the the Indian Indian Indian contribution of the 49:04 49 minutes, 4 seconds margin will go up to uh roughly uh 16 to 18% giving us an overall margin of 15%. 49:11 49 minutes, 11 seconds So from 6% 6 to 8% currently it will be moving from it will go to 16 to 18% for Indian yes because of the because the uh 49:20 49 minutes, 20 seconds variety of the raw material prices will go down as much higher we will purchase. 49:27 49 minutes, 27 seconds So we can save at the commodity purchases. See going forward we will have a additional requirement of palm oil and you know and the so we can directly go into imports which we are 49:36 49 minutes, 36 seconds presently buying from the various uh traders in India. So that will add to the uh cost saving. So which will again reflect into the profit margins as well. 49:45 49 minutes, 45 seconds And is there any margin levers for international market to expand margins? 49:51 49 minutes, 51 seconds uh see we we have more or less uh we've worked on the on the the cost metric in terms of uh overseas operations. So we 49:59 49 minutes, 59 seconds we we have been successfully able to uh not only achieve 10% margin but also we have been able to sustain that also which is again a very good margin for a 50:08 50 minutes, 8 seconds overseas company. So uh we are expecting an increase from 10% to 11% one one one and a half% uh the uh cost uh reduction 50:17 50 minutes, 17 seconds that is again possible. So that will increase our margin in the overseas market also. 50:22 50 minutes, 22 seconds Okay. Just last question uh say 2 years from now what will be the uh revenue contributions from Indian market and the 50:29 50 minutes, 29 seconds international market the revenue in in fact two years now in fact I'll give you a guidance for 3 years that again by 3 years we will have 50:37 50 minutes, 37 seconds approximately 50% of the contribution of Indian as well as the overseas customer overseas business. 50% from India 50% overseas right? 50:44 50 minutes, 44 seconds Yeah correct. 50:46 50 minutes, 46 seconds Okay. Uh and just a small question uh like what is the current uh promoter's stake in the company and like how much 50:55 50 minutes, 55 seconds you can how much you will be like how much it will be likely to dilute for the 51:01 51 minutes, 1 second capacity expansion you're talking about uh the the expected uh capex requirement 51:10 51 minutes, 10 seconds is going to be funded through the uh through the uh fresh uh issue of shares as well as through the promoter contribution. So we will be we will be 51:18 51 minutes, 18 seconds more or less uh maintaining that the the existing uh uh promoter uh contribution uh to the total uh shareholding of the 51:27 51 minutes, 27 seconds company uh which is around right now right now is approximately 54%. We will be uh keeping that in line. 51:38 51 minutes, 38 seconds Okay. So you will be maintaining that. Yeah. Okay. All right. Thank you very much. 51:47 51 minutes, 47 seconds Thank you ladies and gentlemen. That was the last question for today. We have reached the end of question and answer session. I would now like to hand the 51:54 51 minutes, 54 seconds conference over to Miss Chanvi Patil for closing comments. 51:58 51 minutes, 58 seconds Thank you everyone for joining the call today. On behalf of Nurture Industries Limited, we appreciate your time and participation. For any further queries, 52:07 52 minutes, 7 seconds please reach out to us at let'sconnect.in. Thank you. 52:14 52 minutes, 14 seconds Thank you on behalf of ORIM connect that concludes this conference. Thank you for joining us.