Sharat Industries Ltd — Q3 FY26

Sharat Industries Ltd Q3 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=dLM2FppXqrs Published: 2 months ago

0:01 1 second Good afternoon ladies and gentlemen and welcome to the earnings conference call for Q3 and 9 months FI26 for Sharat 0:08 8 seconds Industries Limited. As a reminder, all participant lines will be in listenon mode. There will be an opportunity to ask questions after the management 0:17 17 seconds discussion concludes. Should you need assistance during the conference call, please signal an operator by pressing star followed by zero on your touchstone 0:25 25 seconds phone. The management will be sharing the key operating and financial highlights for the quarter and 9 months 0:32 32 seconds ended 31st December 2025 followed by a question and answer session. Please note that this call may contain some of the 0:39 39 seconds forward-looking statements that are completely based upon the company's opinions and expectations as of today. 0:46 46 seconds These statements are not a guarantee of the company's future performance and involve unforeseen risk and uncertainties. 0:54 54 seconds Shared Industries Limited that is SIL established in 1990 and headquartered in Nelor, Andhra Pradesh operates across 1:02 1 minute, 2 seconds key aquaculture activities including shrimp feed, shrimp farming and processing. 1:09 1 minute, 9 seconds Let us now begin with the introduction of the management team. We have with us today Mr. Shhatredi, executive director 1:16 1 minute, 16 seconds of the company and Mr. Shinas DGM Finance. 1:20 1 minute, 20 seconds I would now like to request Mr. Sharat Reddi, executive director to give his opening remarks. Thank you and over to you sir. 1:29 1 minute, 29 seconds Um thank you ma'am and good evening everyone. Thank you for joining the earnings conference call for Q3 and 9 1:36 1 minute, 36 seconds months of FI26 for Sharat Industries Limited. 1:40 1 minute, 40 seconds The investor presentation has been uploaded on the stock exchange website and our company's website and we hope 1:48 1 minute, 48 seconds you've had a chance to go through it. I want to start with the big picture. 1:53 1 minute, 53 seconds In a sector that continues to see volatility across trade, demand, and raw material cycles, our key focus remains 2:01 2 minutes, 1 second on building resilience through diversification and disciplined execution across markets, product mix, and sourcing. 2:11 2 minutes, 11 seconds Diversification remains central to our strategy. Over the last few years, we have strategically expanded across 2:18 2 minutes, 18 seconds multiple geographies and strengthened our customer relationships, particularly in non- US markets. Today, our export 2:26 2 minutes, 26 seconds mix is well diversified across Russia, the United States, China, and other markets, giving us a better balance and 2:36 2 minutes, 36 seconds reducing dependence on any single region. 2:39 2 minutes, 39 seconds Alongside this, there are two external developments worth noting and I'll be clear on how we are viewing them. First, 2:48 2 minutes, 48 seconds the recent indications of US tariff relief are directionally positive for the sector and the exact impact will 2:56 2 minutes, 56 seconds depend on final terms and implementation but any easing improves India's competitiveness versus other exporting nations. 3:07 3 minutes, 7 seconds Second, the India EU opportunity including the proposed FDA and the broader market potential is a structurally positive development. 3:18 3 minutes, 18 seconds Benefits will occur gradually but it strengthens the medium to long-term outlook for Indian seafood exports. 3:26 3 minutes, 26 seconds Moving on to the performance of the company for Q3 FI26 revenue from operations stood at 142.5 cr rupees. 3:38 3 minutes, 38 seconds Operating margin for the quarter was at rupees 9.5 cr and profit after tax was rupees 4.74 crores. 3:48 3 minutes, 48 seconds In terms of percentages, operating margin was 6.67% 67% and pat margin was 3.33%. 3:58 3 minutes, 58 seconds This reflects improved operating leverage and cost discipline supported by a continued focus on market mix and 4:06 4 minutes, 6 seconds value added contribution for the 9 months of FI26. 4:12 4 minutes, 12 seconds Revenue from operations increased 42% to rupees 407.47 47 crores versus rupees 4:22 4 minutes, 22 seconds 286.63 crores in the 9 months of FI25. 4:28 4 minutes, 28 seconds Export revenues grew 22% over the 9-month period and export volumes increased by 6.7%. 4:38 4 minutes, 38 seconds This momentum has been supported by multiple drivers including an increase in value added product contribution to offset cost pressures. 4:49 4 minutes, 49 seconds stronger quality compliance and process alignment with global standards and deeper operational and cost control through backward and forward 4:57 4 minutes, 57 seconds integration. As we look ahead into Q4 and beyond, we are mindful that raw material prices can move up and down 5:05 5 minutes, 5 seconds during the cycle and realizations may realign in the near term depending on market conditions. 5:12 5 minutes, 12 seconds That said, we remain focused on parts that we can control, which I'd like to summarize into three points broadly. 5:20 5 minutes, 20 seconds One, building a more balanced and higher value export mix, including premium black tiger shrimp. Two, improving 5:30 5 minutes, 30 seconds utilization and unlocking operating leverage through contract farming and merchant export initiatives. 5:39 5 minutes, 39 seconds three, scaling operations in an asset light manner while strengthening sustainably and sustainability and traceability initiatives. 5:50 5 minutes, 50 seconds Uh with this being said, uh we'd like to be able to open the floor up for questions. 5:56 5 minutes, 56 seconds Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press 6:04 6 minutes, 4 seconds star and one on the touchstone telephone. If you wish to withdraw yourself from the question Q, you may press star and two. Participants are 6:13 6 minutes, 13 seconds requested to use handsets while asking a question. 6:17 6 minutes, 17 seconds Ladies and gentlemen, we will wait for a moment while the question Q assembles. 6:42 6 minutes, 42 seconds Ladies and gentlemen, please wait while the question Q assembles. Thank you. 7:10 7 minutes, 10 seconds We'll take our first question from the line of Deepi an individual investor. 7:14 7 minutes, 14 seconds Please go ahead Deepti please unmute your phone and go ahead with your question please. 7:26 7 minutes, 26 seconds Uh we unable to hear you Dipti. Hello. Yes please go ahead. 7:31 7 minutes, 31 seconds Hi sir. Uh so I request your views on the impact of the budget policies on businesses uh particularly the potential contribution to topline growth. 7:44 7 minutes, 44 seconds Um thank you for your question ma'am. Um we welcome initiatives of the government 7:51 7 minutes, 51 seconds of India as part of the recent uh union budget announcement. Uh one of the key facts that we felt would contribute 8:00 8 minutes towards improved revenue or profitability for the seafood sector is the increase for the duty-free import 8:08 8 minutes, 8 seconds limits from 1% up to 3% for of prior year FOB exports. 8:15 8 minutes, 15 seconds uh with uh India increasingly taking a stance towards further value added products uh the seafood sector will have 8:24 8 minutes, 24 seconds to look to import certain key ingredients uh from other nations and uh having the 8:32 8 minutes, 32 seconds reduction in the proposed duty to that extent is likely to improve operating margins in the future. Uh with respect 8:40 8 minutes, 40 seconds to top line um uh it is too early to comment on the impact currently but this will certainly have an uh impact on an improved bottom line. 8:54 8 minutes, 54 seconds Besides this uh the government's directives towards uh assuring better 9:00 9 minutes credit facilities for MSMES uh especially in the seafood sector uh will definitely help companies work towards 9:09 9 minutes, 9 seconds improving their overall revenues and top lines. uh considering that uh the shrimp business that we're currently in has 9:18 9 minutes, 18 seconds been commoditized for a while now, having access to better quality working capital and increased working capital in 9:24 9 minutes, 24 seconds that sense uh will enable us to uh improve our revenues in the years coming forward. 9:35 9 minutes, 35 seconds Okay sir. Thank you. Mhm. 9:37 9 minutes, 37 seconds Thank you. Before we take the next question, we would like to remind participants to ask a question, please press star and one on your phone. 9:47 9 minutes, 47 seconds Next question is from the line of Ishita Bhatt, an individual investor. Please go ahead. 9:54 9 minutes, 54 seconds Hello sir. Hi, very good evening. Thanks for the opportunity. 9:59 9 minutes, 59 seconds So uh as we can see that we have surpassed the revenue in FY25 and profitability in 9 months FY26. So what 10:08 10 minutes, 8 seconds is our outlook you would like to give for Q4 and for the next two years? 10:15 10 minutes, 15 seconds Um thank you for your question ma'am. 10:18 10 minutes, 18 seconds Um the current FI 26 has definitely been a challenging year for the entire uh 10:26 10 minutes, 26 seconds seafood and export sector uh considering uh the unexpected announcement of tariffs and various other geopolitical 10:35 10 minutes, 35 seconds events that have created a fairly unstable global environment. Uh that being said uh owing to our strategic 10:44 10 minutes, 44 seconds decisions as a company over the last few years we were able to combat this situation effectively and grow at a 10:51 10 minutes, 51 seconds healthy pace of more than 40% in the first three quarters of this FI. Um 10:58 10 minutes, 58 seconds considering that we have already grown 30% uh in the previous two FIS we hope to 11:05 11 minutes, 5 seconds take this momentum into the fourth quarter as well and finish as strong as we can. That being said, we are in a 11:14 11 minutes, 14 seconds business that is affected by seasonality and typically the fourth quarter represents a softer quarter in terms of 11:22 11 minutes, 22 seconds overall revenues uh coupled with lower raw material availability and historically higher prices. 11:30 11 minutes, 30 seconds Um so to answer your question finally I think uh we can expect a healthy growth 11:37 11 minutes, 37 seconds trade and at least be on par with our previous year's fourth quarter or a slight improvement on that front. 11:45 11 minutes, 45 seconds Okay. And so what's for the next two years? 11:49 11 minutes, 49 seconds for the next year ma'am I think the initiatives that we've taken so far along with all the positive news that we've been uh receiving especially with 11:58 11 minutes, 58 seconds respect to the reduction in tariffs uh the India EU free trade agreement we remain bullish with respect to our growth prospects 12:07 12 minutes, 7 seconds um should the EU and India FDA agreement be crystallized sooner 12:15 12 minutes, 15 seconds um we expect growth in excess of 15% in revenue overall as a conservative estimate uh because we believe that that 12:25 12 minutes, 25 seconds will enable us to push uh further into those regions by rekindling some of our prior uh customer partnerships. 12:34 12 minutes, 34 seconds Uh we still are playing uh a cautious role with respect to the US market as while announcements have come through so 12:42 12 minutes, 42 seconds far uh I think it will take a few more weeks or months for certain other things to crystallize. so that we know that 12:49 12 minutes, 49 seconds this market can open up further. So if conditions remain optimal, I think we should be able to confidently grow 12:58 12 minutes, 58 seconds beyond 15% in revenue uh at a conservative level. 13:03 13 minutes, 3 seconds Okay. Okay. Thank you. And sir, u can you throw some light on our client retention rate and uh on repeat orders from them? 13:15 13 minutes, 15 seconds Um at present if you look at our export uh geographies uh 50% is through Russia 13:24 13 minutes, 24 seconds currently where we have a very strong relationships with our customers. Our retention rate is a little over 90% in Russia. 13:34 13 minutes, 34 seconds China which has been a newer market for us in the recent past uh as a increased offering of black tiger shrimps. We've 13:42 13 minutes, 42 seconds had a customer retention rate of a little over 60%. But we intend to build further on this market and uh look up 13:51 13 minutes, 51 seconds the numbers in the upcoming years. In the US historically, our retention rate has been in the region of around 60%. 14:00 14 minutes But in the recent past, uh these numbers are much higher as we've been working with a limited set of customers. uh 14:07 14 minutes, 7 seconds considering there's been a a lot of uh volatility in the markets. 14:14 14 minutes, 14 seconds Okay. Okay. Okay. Thank you. Thank you so much for asking my question. Thank you. 14:20 14 minutes, 20 seconds Ladies and gentlemen, to ask a question, please press RN1 on your phone. We'll take our next question from the line of 14:27 14 minutes, 27 seconds H Bria, a professional investor. Please go ahead. 14:34 14 minutes, 34 seconds Uh hi Sheriff. Am I audible? Yes, please go ahead. 14:38 14 minutes, 38 seconds But it's not very loud. Can you speak a little louder? Okay. Is it better now? 14:46 14 minutes, 46 seconds It's back up. Thank you. 14:47 14 minutes, 47 seconds Okay, perfect. Uh yeah, congrats for a very good results that we have been reporting here. I have like some basic questions. Uh I think initially we 14:55 14 minutes, 55 seconds wanted to reach about 90% utilization by FY26 and because of the tariff related uncertainty like this probably has got a 15:04 15 minutes, 4 seconds bit extended. So can you give an idea of the current utilization level and what's our road map to reach doubledigit AITA margins? 15:14 15 minutes, 14 seconds Uh currently our utilization levels across all divisions stands at an average 65%. 15:21 15 minutes, 21 seconds Uh so that leaves us with adequate headroom for improvement. 15:26 15 minutes, 26 seconds uh we are confident of reaching a figure of closer to 90% over the next 24 months 15:34 15 minutes, 34 seconds because besides increased capacity utilization uh another key area of focus for us has been an increase in the value 15:42 15 minutes, 42 seconds added product contribution uh because that has been driving bottom lines uh uh better in the recent past. 15:51 15 minutes, 51 seconds Um that being said considering that there's been a lot of volatility in global markets we have tried to adopt an 16:00 16 minutes an agile approach. Uh there are certain markets that prioritize value added products. There are certain markets that prioritize uh low value higher volume production. 16:11 16 minutes, 11 seconds So uh that way we keep ourselves in a nimble position and align our objectives 16:18 16 minutes, 18 seconds based on what is a priority during each quarter. 16:24 16 minutes, 24 seconds Got it. And uh over the next 24 months are we still on track to reach like double digit or 10 11% AITA margins with 16:32 16 minutes, 32 seconds more contribution from value added products? 16:36 16 minutes, 36 seconds um there is a fair amount of optimism uh to work towards an AITA margin of about 10%. 16:43 16 minutes, 43 seconds Having said that, I think there are a lot of contributors to to such an end product uh primarily raw material prices 16:50 16 minutes, 50 seconds which are vastly beyond our control as a processor. 16:55 16 minutes, 55 seconds Um that being said, if all conditions remain ideal or optimal in the upcoming 17:02 17 minutes, 2 seconds 24 months, uh we do see Pope to increase our overall AITA in the to to the region of up to 10% uh in the next 24 months. 17:11 17 minutes, 11 seconds Yeah. 17:13 17 minutes, 13 seconds Got it. Thanks for that. Uh the next major development which I've seen in the last year has been our growth in 17:19 17 minutes, 19 seconds merchant exports. Can you briefly talk about the economics uh of of this because here I think we are outsourcing 17:26 17 minutes, 26 seconds the processing part to uh units in Gujarat. So what are the kind of margins that we make and what is the working capital investment that we have in this business. 17:37 17 minutes, 37 seconds So typically a merchant export operation is where we uh as we mentioned outsource most of the processing to a third party 17:46 17 minutes, 46 seconds and that is a function of their processing capabilities their idle capacity or spare capacity rather and uh 17:56 17 minutes, 56 seconds access to raw material as well as customer demand depending upon the certifications uh that the factory may have. So 18:06 18 minutes, 6 seconds currently our focus through uh the strategic initiative in Gujarat has been to penetrate the China market for black 18:15 18 minutes, 15 seconds tiger shrimp which uh is slowly making a resurgence in India considering that India has otherwise been dominated by 18:23 18 minutes, 23 seconds vaname shrimp. Um, black tiger shrimp currently does have or does command a premium in terms of pricing and in to a 18:32 18 minutes, 32 seconds large extent in terms of profitability compared to anime and it is of course impacted by seasonality as well as 18:41 18 minutes, 41 seconds supply coming in from other competing nations. 18:44 18 minutes, 44 seconds So while the processing costs are marginally higher than uh what we may 18:52 18 minutes, 52 seconds incur inhouse uh because of the nature of the product as well as the current uh higher demand 18:59 18 minutes, 59 seconds in China we have been able to see uh better margins uh on uh like to comparison with head-on vaname products in India. 19:12 19 minutes, 12 seconds So you say that our our Chinese margins are now higher than our corporate uh AITA margins. 19:20 19 minutes, 20 seconds No, I think our AITA margins are a blend of all our products both in terms of exports and domestic as well. Um in fact 19:29 19 minutes, 29 seconds uh a reasonable contributor to our overall EITA margins this year has also been our ability to farm shrimp 19:38 19 minutes, 38 seconds efficiently at our own farms. and uh through uh our contract farms. 19:45 19 minutes, 45 seconds Um overall I would suggest that the Chinese market's average EITA would be 19:54 19 minutes, 54 seconds uh on par with uh the industrial EITA if you're focusing only on black tiger. If it is a blend of 20:03 20 minutes, 3 seconds vaname and black tiger the Chinese markets would be significantly lower than western regions. 20:11 20 minutes, 11 seconds Got it. So the main idea is to sell more black tiger shrimps in China and try to get to an industry level of a bita 20:18 20 minutes, 18 seconds margin uh and we are not investing in in our manufacturing our or in processing ourselves it's outsourced and can you 20:26 20 minutes, 26 seconds comment on the working capital in this business um lead time in terms of operations is 20:33 20 minutes, 33 seconds typically within about 30 days and then lead time for shipments and payment realization is between 3 to 4 weeks. So 20:43 20 minutes, 43 seconds all put together the cycle is between 50 to 60 days on average. 20:50 20 minutes, 50 seconds And uh this is significantly lower than the cycles that we face when we ship to western destinations such as the US, Europe or Russia. 21:01 21 minutes, 1 second Got it. Thanks for this clarification. Uh my next question uh was uh on on EU 21:09 21 minutes, 9 seconds uh FDA that was now signed. are our our own facilities uh do they have the EU certification so that we can sell in European Union? 21:20 21 minutes, 20 seconds Yes. So our plant has a certification to export to the EU 21:26 21 minutes, 26 seconds and um we intend to leverage this in the upcoming quarters in the next fiscal. Uh 21:33 21 minutes, 33 seconds at present we are still waiting for the uh finalization of these terms so that 21:40 21 minutes, 40 seconds the updated net nail tariffs can come into effect and that would give us a slightly better uh competitive advantage 21:49 21 minutes, 49 seconds when we are looking to price ourselves better compared to many other Southeast Asian and South American exporters. 22:00 22 minutes And do we have we already reached out like or do we already have some customer base or this is this something we will build on uh in the next few quarters? 22:09 22 minutes, 9 seconds Um we historically have had a pretty strong presence in the EU market up until 2016 22:17 22 minutes, 17 seconds um post which we had prioritized other markets and therefore uh let the EU take a back seat. So rebuilding on those 22:24 22 minutes, 24 seconds connections is going to be our first strategy. Besides this uh there are certain other customers that we have done some sporadic business with in the 22:33 22 minutes, 33 seconds past and uh we intend to uh reconnect with them but we're confident that uh we will be able to penetrate that market 22:42 22 minutes, 42 seconds fairly soon uh once uh it properly opens up. Okay. 22:50 22 minutes, 50 seconds Thank you. Yeah. Ladies and gentlemen to ask a question. 22:57 22 minutes, 57 seconds Please press star N1 on your phone. 23:00 23 minutes We'll take our next question from the line of Disha Asha an individual investor. Please go ahead. 23:06 23 minutes, 6 seconds Hi good evening. I would like to understand how you assess the US market outlook for the company after the tariff 23:15 23 minutes, 15 seconds changes and what are the key challenges uh you anticipate in the near future. 23:23 23 minutes, 23 seconds Um and uh thank you for your question. 23:26 23 minutes, 26 seconds Firstly, the uh indication regarding the reduction of tariffs uh is a welcome 23:33 23 minutes, 33 seconds change uh for the sector. Um as of now we have clarity that the 25% uh penal 23:40 23 minutes, 40 seconds tariffs uh have been reduced and we are awaiting further confirmation regarding any possible further reduction in the 23:48 23 minutes, 48 seconds tariffs. This will certainly bridge the cost gap between us and our competing 23:55 23 minutes, 55 seconds nations and thereby help us access uh a slightly larger portion of that market leading to potentially better sales. 24:04 24 minutes, 4 seconds That being said, there are other factors as well that are in play which is uh existing duties such as anti-dumping 24:12 24 minutes, 12 seconds duty and counterveailing duty. Now over the last 12 months uh these duties have also undergone certain changes and uh 24:21 24 minutes, 21 seconds the effect of which uh has partly come into uh action and uh partly yet to you 24:28 24 minutes, 28 seconds know get crystallized. So we will be able to comment better on this once we get clarity on those aspects as well. 24:36 24 minutes, 36 seconds That being said, uh a sizable reduction in the tariffs currently will ease the pressures that our customers have been facing and thereby enable us to access better demand in the near future. 24:49 24 minutes, 49 seconds Okay. 24:53 24 minutes, 53 seconds Uh Disha, you're through with your question, right? Yeah. Thank you. Yeah. Yeah, I'm done. Yeah. Thanks. 24:58 24 minutes, 58 seconds Participants who wish to ask a question are requested to press star and one on their phone. 25:04 25 minutes, 4 seconds Next question is from the line of Mano Sha an individual investor. Please go ahead. 25:10 25 minutes, 10 seconds Hello Mano. Can you use your hands more please? Hello. 25:18 25 minutes, 18 seconds Yes please go ahead with your question. 25:20 25 minutes, 20 seconds Yeah. So I have only two questions. So first is uh who are I'm sorry you are not audible. Can you repeat your question please? 25:32 25 minutes, 32 seconds Hello. Am I audible now? It's better now. Yeah. So, who is our peers, competitors? 25:44 25 minutes, 44 seconds Your question is who are our peers and competitors? Yeah. Yeah. 25:50 25 minutes, 50 seconds Um I mean there are two ways to look at it. uh since we are primarily an export oriented company I would say that our 25:58 25 minutes, 58 seconds competitors are mostly other nations you know you look at Southeast Asia uh countries in Southeast Asia as well as 26:06 26 minutes, 6 seconds uh countries such as Ecuador have uh been a strong uh competition for India as far as shrimp export is concerned. 26:16 26 minutes, 16 seconds Now as far as peers again are concerned within India there are several players. 26:22 26 minutes, 22 seconds I think a lot of this information is publicly available. Um uh we're broadly classified under the aquaculture sector 26:29 26 minutes, 29 seconds and I think there are about six or seven listed companies in the space besides several other private companies uh 26:36 26 minutes, 36 seconds mostly based out of Andra, Gujarat, Orisa, Tamil Nadu and Kerala. 26:46 26 minutes, 46 seconds beyond this. I might not want to specifically comment uh on the peers but this information is publicly available. 26:59 26 minutes, 59 seconds Hello. Hello. 27:07 27 minutes, 7 seconds Um your audio is not very clear because there seems to be some background noise. Can you speak a little bit? 27:13 27 minutes, 13 seconds Use your handset mode, please. No. Uh, yes. Hello. 27:22 27 minutes, 22 seconds Yeah. Yeah. Can PF in market? 27:27 27 minutes, 27 seconds Uh, man, mute your phone please. There's a lot of background disturbance. 27:32 27 minutes, 32 seconds So, your question is regarding listed fears in the market. 27:41 27 minutes, 41 seconds Yes. 27:43 27 minutes, 43 seconds Okay. I think the aquaculture space in India currently has about seven or up to eight listed peers. If you're looking at 27:51 27 minutes, 51 seconds companies listed on the BSC, I think there are total about seven. Uh so besides Sharat Industries it would be 28:00 28 minutes waterpace Z aqua postal corporation Apex frozen foods 28:09 28 minutes, 9 seconds and Aanti feeds but uh this is publicly available information so I think you know it's easy to access 28:17 28 minutes, 17 seconds okay and can you uh can you explain like what outlook outlook for uh Q4 FI26 28:25 28 minutes, 25 seconds Um so I had answered this question uh some time back when somebody posed more or less the same question. Um Q4 is 28:33 28 minutes, 33 seconds historically a softer quarter uh because of seasonality in this business. 28:41 28 minutes, 41 seconds Um January typically has lesser access to demand as well as raw material uh on the 28:49 28 minutes, 49 seconds basis of customers typically not being available uh during the holiday season as well as uh raw material not being 28:57 28 minutes, 57 seconds available owing to farmers stocking during those periods. Uh things pick up during the months of March, April and so 29:05 29 minutes, 5 seconds on. So um you could expect uh numbers that are similar or slightly greater 29:12 29 minutes, 12 seconds than our quarter last year before last year because of these factors. 29:21 29 minutes, 21 seconds Okay sir. Thank you. Thank you so much. Thank you. 29:25 29 minutes, 25 seconds Thank you. Next question is from the line of Giri Raj Bhora and individual investor. Please go ahead. 29:32 29 minutes, 32 seconds Yeah. Hi Shhat. Congratulations on a good set of numbers. Uh I have three-part question. The first pertains to your uh number regarding the export 29:42 29 minutes, 42 seconds target. So as I understand you've uh guided for a,000 cr target by FY28 in terms of export. Uh can you also give 29:51 29 minutes, 51 seconds throw some light on what would be the uh relevant number for the domestic segment? 30:00 30 minutes Um thank you for your question. Um just before I go ahead and answer out of curiosity where have you come across 30:09 30 minutes, 9 seconds information across about the target for FI28 on exports because I'm not sure if you have highlighted that on any domain. 30:18 30 minutes, 18 seconds It's on slide 13 of your latest deck point number two strengthen global market presence. 30:25 30 minutes, 25 seconds Sorry. Yeah thank you for clarifying. Um so your question was about the domestic targets right? Um 30:34 30 minutes, 34 seconds yeah like today currently from what I understand your business uh the the se like exports roughly contribute to 75 80% of your total sales. 30:44 30 minutes, 44 seconds So would you guide for a similar number in FI28? 30:48 30 minutes, 48 seconds Um as we move ahead in the years, we anticipate that the contribution of the domestic business uh which currently is 30:57 30 minutes, 57 seconds dominated primarily by our feed uh production and sales uh will diminish 31:04 31 minutes, 4 seconds over time. Um so if the ratio currently stands between uh let's say a 70 to 80% 31:11 31 minutes, 11 seconds exports and a 20 to 30% domestic as we scale up uh further rapidly on exports 31:19 31 minutes, 19 seconds uh we anticipate that the contribution of domestic business might come to in the region of 15% or below by FI28. 31:30 31 minutes, 30 seconds Um that being said uh we are actively working on strategies to improve our 31:38 31 minutes, 38 seconds presence in domestic market offerings as far as frozen shrimp is concerned and uh 31:46 31 minutes, 46 seconds we intend to uh take these initiatives in the upcoming fiscals the next two 31:53 31 minutes, 53 seconds fiscals and depending on how they are received in the market may look to uh add to that further. 32:01 32 minutes, 1 second So we will keep you posted on progress but uh with all things standing presently uh we do anticipate that the 32:09 32 minutes, 9 seconds contribution of the domestic business overall uh up till FI28 will come down uh by a few basis points. 32:18 32 minutes, 18 seconds Okay. And I would presume that the frozen shrimp business that you are planning to replace it with will be a relatively higher margin business. 32:27 32 minutes, 27 seconds Uh yes uh broadly that is the strategy. 32:31 32 minutes, 31 seconds Uh but a lot remains to be seen regarding uh the price point at which uh the average consumer in India would be 32:40 32 minutes, 40 seconds uh comfortable buying frozen shrimp. As you may be aware there are certain 32:47 32 minutes, 47 seconds hurdles in terms of uh the market practice here. So uh we will be conducting various trial experiments uh 32:55 32 minutes, 55 seconds to understand what an appropriate price point would be most which we would be able to comment better regarding the overall operating margins for such a proposed business. 33:06 33 minutes, 6 seconds Got it. Got it. So the guidance then for Eida which you provided earlier over the next 24 months 10 to 11% would be basically pertaining to exports right. 33:17 33 minutes, 17 seconds Um what we have suggested here is at a blended level because uh at this point domestic business is still a reasonable 33:25 33 minutes, 25 seconds contributor to overall revenue. Um it got it. So that provides a good flow 33:31 33 minutes, 31 seconds then. Got it. And can you my second question is could you please throw some light on this partnership with West 33:38 33 minutes, 38 seconds Coast Frozen Foods? I understand that um uh you had previously uh mentioned in your press release that there would be 33:45 33 minutes, 45 seconds about a 100 crore revenue uh or a topline addition to your numbers basis this partnership. Would you uh would you 33:54 33 minutes, 54 seconds also suggest that other than your base growth in the business the organic growth in the business you we would be 34:01 34 minutes, 1 second uh seeing a similar kind of addition in our topline going forward on account of this partnership with West Coast? 34:08 34 minutes, 8 seconds Um well this has been our first year uh of the partnership and I think so far it's a little over six months. Um I 34:17 34 minutes, 17 seconds think things have gone fairly well considering the overall volatile circumstances that the sector has been 34:24 34 minutes, 24 seconds facing. Um as far as revenue targets uh or revenue achievements are concerned. I think we will be able to give you a 34:32 34 minutes, 32 seconds firmer view at the end of the current quarter. Um but uh progress has been positive considering uh overall 34:40 34 minutes, 40 seconds circumstances and the fact that this has been the first year of our association. 34:44 34 minutes, 44 seconds Um our objective has been to build long-standing associations with any of our strategic partners. So we believe 34:53 34 minutes, 53 seconds that in the upcoming years this particular partnership is likely to contribute better to our top line as 35:02 35 minutes, 2 seconds well as bottom line and uh as and when these initiatives are uh gaining more traction uh we'll do our best to keep uh everybody adequately informed. 35:13 35 minutes, 13 seconds Okay. Thank you. 35:16 35 minutes, 16 seconds Thank you. We'll take our next question from the line of Hersh Bria, a professional investor. Please go ahead. 35:25 35 minutes, 25 seconds Hi. 35:25 35 minutes, 25 seconds Uh thanks for the followup. Uh my next question is on a capital requirement for our business. So we kind of are 35:32 35 minutes, 32 seconds targeting 15% sales growth over the next few years. Do we need to raise equity capital for this uh or could this 35:39 35 minutes, 39 seconds largely be funded via internal approvals? 35:43 35 minutes, 43 seconds Um for the most part uh any capital expenditure moving forward is likely to be funded by internal approvals. That 35:51 35 minutes, 51 seconds being said, um we believe that uh adopting a slightly 35:58 35 minutes, 58 seconds different approach uh towards building revenue such as for example the merchant export approach will enable us to um 36:08 36 minutes, 8 seconds have firmer controls on the amount of capex that may be required during any financial year um uh while you know looking to aggressively grow on revenue. 36:19 36 minutes, 19 seconds So at this point uh considering overall market scenarios uh we intend to be prudent uh uh on the capex front but 36:28 36 minutes, 28 seconds we'll look to explore opportunities where investments are necessary and uh they are uh likely to be largely funded through internal approvals. 36:40 36 minutes, 40 seconds Got it. And my last question is our is is on the portion of our business which comes from our through our own farms. So 36:48 36 minutes, 48 seconds can you quantify this? How much of our business is currently coming from our uh own farms? Uh and what is the plan here to scale up? 36:58 36 minutes, 58 seconds Um our own farms have a overall capacity 37:05 37 minutes, 5 seconds of producing anywhere between 1,500 to 2,000 tons annually. Uh this is on account of the overall farm size. Uh 37:15 37 minutes, 15 seconds that being said the exact output during each year uh will depend on multiple factors such as the seed quality uh 37:24 37 minutes, 24 seconds weather and uh certain other operational aspects. So currently our farms are 37:30 37 minutes, 30 seconds contributing to roughly about 12% of our overall uh export uh quantums and uh we 37:41 37 minutes, 41 seconds this is at a capacity utilization of approximately 50% at the farm level. So over the next 2 three years, we do 37:49 37 minutes, 49 seconds intend to uh further utilize our farm capacity. 37:54 37 minutes, 54 seconds But since we are also looking at uh significant growth in our export volume, I think in proportion the numbers might 38:03 38 minutes, 3 seconds remain more or less the same despite uh potentially higher uh contribution from the farmer. 38:11 38 minutes, 11 seconds Okay. And maybe a quick followup on this own farm. I think recently fish meal prices have shot up a lot. So has that 38:18 38 minutes, 18 seconds impacted uh our farm level economics or has there been an increase in farmgate uh prices? Have the feed companies 38:26 38 minutes, 26 seconds passed on this price increase in in fish meal? 38:31 38 minutes, 31 seconds So fish meal does have a seasonal uh uh price point or price range and uh this 38:39 38 minutes, 39 seconds has followed certain historical trends for the most part. So what we typically do is stock up on adequate quantity of fish meal when the prices are more 38:48 38 minutes, 48 seconds appropriate because the shelf life is a little over 6 months and use that uh efficiently to keep our feed production costs optimal. 38:59 38 minutes, 59 seconds All right. So we haven't seen any margin compression because of the fish feed it uh because of the feed itself. 39:06 39 minutes, 6 seconds Yeah. Not not a significant increase though. Got it. No, that's all from my uh side. 39:13 39 minutes, 13 seconds Thanks a lot for taking my questions. 39:16 39 minutes, 16 seconds Thank you. Next question is from the line of Nitin, an individual investor. Please go ahead. 39:24 39 minutes, 24 seconds Oh, hi. 39:26 39 minutes, 26 seconds I'm Nin. Can you use your handset mode please? 39:36 39 minutes, 36 seconds Hello. Yes, Nathan, please go ahead. Hi. Uh so good evening. 39:42 39 minutes, 42 seconds Uh so can you throw some uh light on the uh demand forecast uh the market scenario in Russia? 39:52 39 minutes, 52 seconds Okay. 39:53 39 minutes, 53 seconds Um is there a specific period that you're referring to in terms of the 40:01 40 minutes, 1 second So uh typically shrimp exports from India see a uptick in demand during Q1. 40:10 40 minutes, 10 seconds and Q2 because as mentioned earlier Q4 is a softer quarter. 40:15 40 minutes, 15 seconds Um at present uh uh we have seen a steady demand from our customers uh who we've been working with for the last few 40:23 40 minutes, 23 seconds years. uh we anticipate that 2026 27 would see slightly more competition 40:33 40 minutes, 33 seconds in the Russian market uh due to additional facilities being approved uh from India as well as certain additional imports coming in from other countries. 40:44 40 minutes, 44 seconds Okay, that being said, our focus for the current year uh besides uh maintaining steady volumes would be to further 40:52 40 minutes, 52 seconds increase our value added product contribution such as cooked and blanched products to Russia to try and improve overall margins. 41:01 41 minutes, 1 second Mhm. Okay. Okay. Got it, sir. 41:08 41 minutes, 8 seconds Y okay. Yeah. Thank you so much. Thank you. 41:12 41 minutes, 12 seconds Thank you. Thank you. As there are no further questions, I now hand the conference over to Mr. Sharati, executive director for closing comments. 41:20 41 minutes, 20 seconds Over to you. 41:22 41 minutes, 22 seconds Um, thank you ma'am. Uh, firstly uh thank you for uh all the participants uh and your uh insightful questions. I 41:30 41 minutes, 30 seconds think uh we've had a very great opportunity to interact with you. Uh this being our first earnings call as a company I think uh there's a lot that we 41:40 41 minutes, 40 seconds can take back from this and uh we also would like to thank the IRPR team as well as the hosts for uh making sure 41:48 41 minutes, 48 seconds that uh this has been a seamless experience for all participants including us. 41:54 41 minutes, 54 seconds Um on from a closing comments perspective uh the last few weeks has seen a lot of positive insights and 42:02 42 minutes, 2 seconds potential tailwinds for the sector in terms of the governmental policies as well as uh uh trade agreements or tariff 42:11 42 minutes, 11 seconds reductions between various countries in India. And uh we are hopeful that this momentum would drive the overall sector 42:20 42 minutes, 20 seconds forward and uh that we as a company would stand to benefit from the same and uh deliver strong value to our 42:28 42 minutes, 28 seconds shareholders uh as we have done so in the year gone by. Um 42:34 42 minutes, 34 seconds besides nothing more to add and uh would like to thank everyone once again. 42:40 42 minutes, 40 seconds Thank you members of the management team. Ladies and gentlemen, on behalf of Sherat Industries Limited, that concludes today's session. Thank you for 42:48 42 minutes, 48 seconds your participation. You may now disconnect your lines.