Chaman Lal Setia Exports Ltd (NSE: CHAMANSEQ) Q1 2026 Earnings Call dated Aug. 06, 2025
Corporate Participants:
Unidentified Speaker
Rajeev Setia — Joint Managing Director
Ankit Setia — Executive Director
Analysts:
Unidentified Participant
Chirag Singhal — Analyst
Raman — Analyst
Praveen Sharma — Analyst
Akash Bhanda — Analyst
Manish Gela — Analyst
Praveen Kumar — Analyst
Vinay Pandit — Analyst
Devendra — Analyst
Vivek Singh — Analyst
Harsh Kedia — Analyst
Navneet Bhaiya — Analyst
Yogansh Jeswani — Analyst
Presentation:
Unidentified Speaker
Ladies and gentlemen, on behalf of Captify Consulting, I welcome you all to the Q1FY26 post earnings conference call of Shamalal City Export Limited. Today on the call from the management team we have with us Mr. Rajiv Setia, Joint Managing Director and Mr. Ankit Setia, Executive Director. As a disclaimer I would like to inform all of you that this call may contain forward looking statements which may involve risk and uncertainties. Also a reminder that this call is being recorded. I would now request the management to brief us about the business and performance highlights for the period ended June 2025.
The plans and vision for the coming year post which we will open the floor for Q and A. Over to you sir.
Rajeev Setia — Joint Managing Director
Good afternoon everyone. I’m Rajiv Setia. It’s the tough time going on this geopolitics issues for last quarter. So it’s a tough time. Explain everything. Ankit. Ankit, you welcome everybody. Hello. There is no voice coming going. Hello.
Unidentified Speaker
Hi Ankit. Would you like to add something to the opening comments? You too. And. I think there’s some problem in the line. Would you like to continue?
Ankit Setia — Executive Director
Yeah, sorry, I just came back online. Yeah. I would like to say that this is the time when you know the prices of rice are going from a higher level to a lower level. So we are decreasing the speed of the business and moment the time is right we are going to increase the speed. This is I would like to add. That’s all. Thank you.
Unidentified Speaker
Should we move to the Q and A, sir?
Rajeev Setia — Joint Managing Director
Yeah.
Ankit Setia — Executive Director
Yes, let’s. Let’s go for the Q and A. Yeah, yeah.
Questions and Answers:
Unidentified Speaker
So all those who wish to ask a question may please use the option of raise hand. In case you’re unable to raise hand just drop a message on the chat and we’ll call you to ask the question. We have the first question from Chirag Singhal. Chirag, you can go ahead please.
Chirag Singhal
This is Chirag from first quarter. You mentioned about the price decline. So could you quantify what was the decline in Q1 on a sequential basis as well as on a year on year basis. And are you seeing any normalcy in the current quarter?
Ankit Setia
See the. See the prices have been stable and rather the prices have gone up. And since the new crop was going to come next month and next to next month so we are seeing the prices will Decline in coming months.
Chirag Singhal
Right. So. So like what were the key reasons for the declining revenues?
Ankit Setia
The only reason for decline in prices next month or next to next month?
Rajeev Setia
No, no, the asking for the revenue revenue fall for this particular quarter. That’s true. That’s the biggest question. You see this quarter has all along been disturbed by geopolitics. You see in the month of April I think that happened in Belgium and then war in from 7 May the Pakistan War has hardly any effect on us. But this Russia Iran war which started somewhere from the June. Yeah, you know it started from I think. Yeah, June. June it started and prior to that period also something was cooking up. The business for Lebanon, business for Yemen was in Japadi to some extent.
It was back and forth kind of a business going on that has affected and when the geopolitics situation in the world is bad, it affects every single country decision making and all that. That takes time. That is one of the major reason for sale fall. Otherwise it’s the business people wait for the opportunities. New crop is about to come. Some customers defer their orders for the new crop because they feel the prices will come down. Even what Ankit has said just the prices are likely to come down. This is a good crop. It is very good rain this time.
The crop is all time I expected for rice total 151 million ton is the estimate. So let’s see.
Chirag Singhal
Right. So that was actually my second question that whether there was any deferment in Q2 which would lead to overall growth for the H1. Is that a fair understanding.
Rajeev Setia
Sales guy answer.
Ankit Setia
See like I said before the prices are expected to come down. So we have. We are basically in this quarter we have reduced the speed and next quarter we expect to pick up speed when the prices are more favorable. Yeah.
Chirag Singhal
Okay. That would be it from mine. Thank you.
Ankit Setia
That will be better profitability for the company.
Chirag Singhal
Okay.
Unidentified Speaker
Thank you. We’ll take the next question from Raman.
Raman
Hi sir, thank you for allowing me to ask you question. I just have one question with respect to the. In the previous call you mentioned that though you were doing a capex with respect to the processing unit which will increase which will help in increasing your revenue. So any update on that particular side of the business?
Ankit Setia
So absolutely right. In Kernal we have installed two new packing units out of three. The third one is still not ready. It’s under some teething troubles. Two have already started. But like I mentioned since we are seeing the prices of rice going down that is why we have still not increased the full speed. Once the prices are favorable we are going to increase the production so that you know the overall profitability is better.
Raman
Yes. And so you said that you will pick up. You have cautiously decreased the speed of the business and you are planning to pick up from Q2. Can we expect this 400 to 450 crores of quarterly revenue from Q2?
Ankit Setia
Absolutely, absolutely. Things will be much better than where they are actually when see you have to understand with the model of business we are doing when the prices are at their peak the business becomes more risky. And let’s say, let’s say we are seeing something, you know, which is going to fall. So we basically decrease the speed. That’s what we do.
Raman
Okay, sir. Sir, and can you give any margin guidance like do you expect margins to decline in the coming quarter because of.
Ankit Setia
No, even, even, even in this current quarter I don’t think the margins have declined. The margins remain stable. Only revenue is going to increase in the future.
Rajeev Setia
Revenue. Revenue has come down whereas the margins are. If I compared with the corresponding period it’s better in this particular quarter.
Ankit Setia
So in this quarter if you would have you know pushed and increased the revenues maybe the margins would have come down. So we didn’t compromise on the, on the margin revenue. Yes, but next quarter it’ll, it’ll be, I mean definitely it’ll go up.
Rajeev Setia
And, and that Gandhidham unit was opened on for 4th. 4th of June. July. 4th of July. So it’s working. Full is working. So the business from that area should also go up. And the other, the old unit which we were running in Gandhidham that is being moved. So we’ll have two units in the time to come.
Raman
Okay, thank you sir.
Unidentified Speaker
Thank you. We take the next question from Praveen Sharma.
Praveen Sharma
Hello. Yes, good afternoon sir. Good afternoon. I have two questions. First is basically you know, in the light of this U. S tariff you know imposed on India and probably you know how things are going to settle, we don’t know. But at current situation given the advantage to Pakistan of 19% visa vis 25%, you know, do you see any impact of business to America and how much of our, you know, revenue comes from us?
Rajeev Setia
Ankit, you will add to what I said. Whatever are the shipments in transit we have because we were expecting these things have shipped a lot of cargo and whatever will reach before 5th of October because all etas are in September. The cargo is reaching in September and it has to reach before 5th of October as per the commitment of USA. You never know what happens tomorrow. But the Present situation which which is that is all the cargo which will enter prior to 5th of October that will have no effect of this 25% duty. So whatever most of the customers they quickly wanted the rice and some now truly speaking we we are putting at hold Even our customers have told us let us see after all its food product they have to eat food ultimately cannot be avoided.
Praveen Sharma
But given the differential between Pakistan India do you think there will be shift from India to US?
Rajeev Setia
You know 25 look nowadays Pakistan is favorable baby of USA yes they are looking yeah. So obviously they may get from them but the future is much better for us. Even you see NDTV profit took my interview and I said it also one Kamar Chima their ex army he most of them comes in the debates and he was what will happen with our rice export? India is not giving us water, they are stopping our water. And one thing I personally feed for this geopolitic I may be wrong but unless we don’t get PoK India is not going to share water at all.
And if India doesn’t share water this joint monopoly with Pakistan will be monopoly of India and its return on the wall.
Praveen Sharma
Answer Any idea an estimate on crop situation in Pakistan Basmati crop Any you know forecast or any idea?
Ankit Setia
Okay, I would like to say about USA as of now the business has no not affected. There is zero impact on business which is happening in USA for. For my company this is number one point. The second point is Basmati is not grown in USA it is an Indian product. So the products which can can be made in US or you know a country which has lower tariff, you know there the competition will come. But since Basmati is not grown in US India is still strong to supply.
Rajeev Setia
About the competition from Pakistan.
Praveen Sharma
Pakistan. Correct.
Ankit Setia
All right. But you know 75% of the market is Indian. So it’s not easy to change the market overnight. A brand which is Indian it will remain as Indian and a brand which is from Pak will remain as Pakistan. So till now no impact. Third thing I would say is see the. The customers we have in USA are all ethnic customers. We don’t have any mainstream buyers. So had it been mainstream buyers we have to maintain the price. But with ethnic customers if there’s any change we have the right to revise in the next contract.
And the contract is small, maybe two containers, maybe three containers. So we are. We are safe in that respect. All three respects I would say.
Rajeev Setia
And if we go by the history at one point of time U. S Ocean freight had gone up to $10,000 from 20, 1500 and it was absorbed that way. We feel if I go with the history. In 1991 the prices of Basmati rice was 1400 Dollar Europe. And of course it could be close to 1500 Dollar in USA. And now the present price of Basmati good quality CIF is around 1200 Dollar to USA. And the 20% cap will make that kind of price. So it is historically they have bought it.
Ankit Setia
What is going to happen is let the tariff stay because earlier also it was 10%. It’s an increase of 15%.
Rajeev Setia
15% here.
Ankit Setia
Let the tariff stay. The Indian rice prices are going to balance out. Rice is going to go the way it was going. There is not going to be any change. And if you calculate okay, 25% seems big. But if you calculate the price per bag, it is not big for the customer. Because the customer has seen extreme high prices in the past.
Praveen Sharma
Okay. Okay. And my last question is, you know, in the last year 24, 25, the prices because of the, you know, the minimum export price, you know levied by the government on Basmati there was a situation, there was an aberration wherein prices during the crop seasons were higher than you know, off season. You know, the prices were kept on declining. So what is the estimated scenario this year like? Once you have a crop we will have a lower prices and then subsequently they will increase. In what will be our strategy? We will, you know, hold on the build on the inventory or we will, you know, buy and sell, you know say for the H2 second half of this year.
Ankit Setia
See we see as per the current prices, market is going to fall with the new crop. This is going to happen. But in between some demand comes from Iran which disturbs the market. But overall within one week or within 10 days the market settles down. So we, we are expecting the prices to fall. Moment the prices fall again, we will pick up with our customers. Actually our customers are hungry. Only thing is everybody is waiting for the prices to come down.
Rajeev Setia
There are stocks also carry forward is quite big and the crop size is big. So it makes sense the price will fall down. It looks like that.
Praveen Sharma
What, what is the current prevailing price? Sir, like you know, in dollar turn, dollar per metric turn.
Rajeev Setia
Depending upon the if it is powered it is around $902,000 CIF to mid. Of course packing matters is small packings fire this kind of prices. Am I right? Ankit, you are sales guy.
Ankit Setia
Absolutely right.
Praveen Sharma
Okay, so what I understand is, you know, in Q2 also you know the new Crop will only come by September end. So in Q2 also we will keep the business slow. Is my understanding. Right?
Rajeev Setia
Why should we keep slow?
Praveen Sharma
Well like you said that the price keep on falling then you know we don’t want to build on the inventory.
Ankit Setia
And you know that is a separate thing depending on the demand. Of course we are. We are doing our best with the sales.
Praveen Sharma
Okay. Okay. Okay.
Rajeev Setia
And. And secondly this. Some of the people they want old rice also. This concept is also there. And some people want new rice. They want to build up stock over there in the anticipation of prices going up. The business, you know commodity up and down. So it goes with the wisdom and experience only.
Praveen Sharma
Oh, okay. Okay sir. So all the best and best wishes. Thank you. Thank you very much.
Unidentified Speaker
Thank you. We take the next request from the chat box. You can unmute or ask your question. Akash. We take the next question from.
Raman
Thank you for a follow up question. So. So I just wanted to clarify. You said the Basmati rice prices are 900 to thousand dollars per ton. Okay.
Rajeev Setia
For pur rice I said which goes to Middle east in India.
Raman
This is per ton or per kg. This is with respect to purple rice. No.
Rajeev Setia
Purple rice means no. Which rice boiled rice is. We also called cell line our language. But it is legal name international is PowerPoint. So. Okay.
Raman
And what about. What about Basmati rice?
Rajeev Setia
Basmati rice will be 100 to 150 higher than that.
Raman
That’s answer. My next question is with respect to the processing unit only. So I just wanted to understand the unit economics of it. How much does it cost? What’s the capex for? Is making like putting up a one processing unit. One additional processing unit. And how much revenue can it do from. Can we do from one processing unit?
Rajeev Setia
Reply.
Ankit Setia
Investment is not big. It comes to about 2.53 crore rupees. I’m talking strictly machinery, erection and everything. I’m not talking about land and building because that is already there. Yeah. So the plant and machinery and erection part is only 3 crore rupees. Maybe less than that. Maybe 2.5.
Raman
Okay.
Ankit Setia
You can generate a revenue of 50 to 75 crores or 100 crore rupees in a year. That is the revenue which can be generated easily. You can even go. You can take it as 100 crore rupees.
Raman
Okay. Hello.
Ankit Setia
Yeah. So you can. You can maybe take a revenue of 100 crore rupees.
Rajeev Setia
Yes. Okay. So then basically this was a. It will be 100 crore. Because how. As to how I can vouch for it. The Unit which was running in Gandhidham in a rented house. Down. That was with lower capacity plant. And we had been doing around 60 to 70 crore business annually from there also. So that way 100 cr from one unit is achievable.
Ankit Setia
I’m. I’m still sharing like conserv. Conservative figures. It can. It can go higher with time.
Raman
Okay. Okay.
Ankit Setia
So to start with let’s say annual 100 crores. Maybe next year it can even go up to 200 crores. 175. 150. Like that.
Rajeev Setia
That’s not possible. It will be 125. 130 beyond. How can we go beyond this capacity?
Ankit Setia
So let’s. Let’s keep it 100 crore rupees.
Rajeev Setia
If the packing is larger. 50 kg. What you say is right. But if the packing is 10 kg. 5 kg.
Ankit Setia
All kinds then of course it will be down.
Rajeev Setia
Yes. You are also right in one way.
Ankit Setia
And it’s absolutely right.
Raman
Okay. And sir, can you give the volume figures for the quarter Export volume figures.
Rajeev Setia
Volume figures for this quarter.
Raman
Yes, sir.
Rajeev Setia
Quantity speaking.
Raman
Okay.
Ankit Setia
Total volumes are at 41,255 tons. 41,255 tons in this quarter.
Rajeev Setia
Very good.
Raman
41,250 tons.
Ankit Setia
255.
Raman
Okay. Thank you. Sir.
Rajeev Setia
It. It is domestic as well as port. Both.
Ankit Setia
That’s right.
Raman
Okay. Okay. And how much will be export out.
Ankit Setia
Of this exports is.33,797.33,797.
Raman
Thank you, sir.
Rajeev Setia
I have been traveling more in this quarter.
Unidentified Speaker
Thank you. Thank you. We’ll take the next request from Akash. You can ask.
Akash Bhanda
Hi. I had two questions. First one is regarding the annual revenue target which you guys have shared earlier. So you said we. The company might touch 2000 crores. So by what which financial year we plan to achieve it?
Rajeev Setia
You said.
Ankit Setia
See we. We are trying our best to achieve 2000 crores. That’s the target. That’s the goal. Right. Like I said that we are waiting for the right timing. So maybe in next month or next to next month the timing will get right and revenues will go higher.
Akash Bhanda
My second question was regarding. So I was reading online that there was some Japanese delegation visiting you guys. And there is scarcity of rice in Japan. So. And Indian companies are trying to make out of it. So what is like our company’s plan?
Ankit Setia
So the delegation of course visited us. And it was a very good meeting. But till now they have not started buying. So this is the current status. Still in talks.
Akash Bhanda
But are we optimistic about something happening in future.
Rajeev Setia
Yes.
Ankit Setia
If a customer is approaching we are optimistic. Yes.
Rajeev Setia
I would like to share one thing. India has been importing crude from Russia and it’s against Indian rupees. And they have huge block of Indian rupees lying with the banks in Russia. So we, we are already exporting Marani brand to one company. And the moment we send the order they send us the payment. I mean they don’t wait for the shipment. And recently this sir bank of Russia he had been their team has approached us not only for opening the account, they say we will promote your product in Russia. The company is also going to participate in Russia in the coming exhibition.
The kind of relations India has with that country. We are truly speaking we are expecting good business in the time to come because the help of this bank, we have already opened the account with this bank or it’s likely to be opened in a day or two. All figures formalities have been done and their team, they say we have come, we promote the business or maybe because of the Indian rupees block they they feel like we should buy maximum from India.
Akash Bhanda
Thanks. That’s all I have.
Unidentified Speaker
Thank you. We’ll take the next question from Malaysia when you shouldn’t.
Manish Gela
Yeah. Hi sir, I have a couple of questions. So one is however we place as far as inventory levels are concerned are we stalking more or we man we plan to maintain inventory at similar levels. So Basically question for Q2 and second is how did the logistics cost behave in Q1 when you compare it with. The previous quarters.
Rajeev Setia
In the. I’ll answer in the Q1 the ocean freights are normal. They had come down nothing maybe one or two destination. Otherwise it was normal as the ocean freight is concerned. And your next question. What what what is your next question part. Next part.
Manish Gela
Yes, that was on the inventory side.
Rajeev Setia
Inventory side. Yes we, we do have inventory but not to the levels which it. It was in during 31 March. It is relatively quite down and it’s also sold or likely to sell kind of inventory. No problem. The company is totally debt free rather deposit with the, with the cash flow.
Ankit Setia
So inventories are coming down day by day. We are waiting for the new crop which is going to open at a lower price. Then we are going to bulk up.
Manish Gela
All right. Thank you so much.
Unidentified Speaker
Thank you. We’ll take the next question from.
Praveen Kumar
Sir. I wanted to understand what is the kind of year on year or and quarter on quarter growth in terms of volumes. I want the growth numbers and also I wanted to check on whether there were any inventory losses or gains this particular quarter. Overall.
Rajeev Setia
It was absolutely no inventory loss in this quarter. Because it had happened last year when in the beginning the prices were high. And when they came down we had to sell at break even also. But we never did any loss. We didn’t earn much then. In this particular period all the whatever is purchased that is purchased with the regular market prices and we are selling with our reasonable profit. That’s the reason despite lower volume, this revenue the profitability is reasonably good.
Praveen Kumar
And volume. Volume growth, quarter on quarter and year on year. For this particular quarter.
Rajeev Setia
This particular quarter. Mr. Vinay just told the figures because he took the pickers for volume.
Vinay Pandit
Sorry Ken, which. Which data point you’re looking for?
Praveen Kumar
I’m looking for year on year growth in terms of volumes for this quarter.
Vinay Pandit
Volume growth is flat.
Praveen Kumar
Sorry. Q1 volume growth is flat.
Vinay Pandit
Yeah. Last year we’ve done 41,169.
Praveen Kumar
169. Okay.
Vinay Pandit
Yeah. This time it is 41,255.
Praveen Kumar
And would you have the number for last quarter also please?
Vinay Pandit
Yeah. Q4 was 44. 974.
Praveen Kumar
974. Okay. Sir, if we had to set up any kind of targets in terms of volumes Would there be a target that would. We would be looking forward to.
Rajeev Setia
Obviously we work hard. We look for new customers. We participate in different exhibitions, travel. And when you get the business obviously your revenue will go up as well as volume. Both sides connected.
Praveen Kumar
Okay.
Rajeev Setia
Teams are working very hard. It’s not so easy. We are working very hard.
Praveen Kumar
And in any new geographies that you have cracked in this last two quarters that you have entered.
Rajeev Setia
No, no. What is your question?
Praveen Kumar
Any new geographies?
Rajeev Setia
New geographies this quarter?
Ankit Setia
I don’t think any new geographies.
Praveen Kumar
Okay. Okay. Thanks.
Ankit Setia
We pointed a very nice distributor in Australia.
Rajeev Setia
And he’s great. Yeah. Very powerful.
Unidentified Speaker
We’ll take the next question from Devendra.
Devendra
Hello. Hello.
Unidentified Speaker
Yeah, go ahead.
Devendra
Yeah. Actually my question about expecting Q2. Hello.
Unidentified Speaker
You audible. Go ahead please.
Devendra
How much revenue expected in Q2?
Rajeev Setia
Our target is 400.
Devendra
Okay. And second thing as your slide mentioned that export Basmati price I think 50,000 crore. Correct. For that 25 year. And apart from this 30. 50,000 crore. How much we will sell?
Rajeev Setia
No, no, no.
Devendra
Your size. No, no.
Ankit Setia
He’s saying the total total export of India is 50,000. How much do you. This is what he’s asking.
Rajeev Setia
It’s 6 million this time.
Devendra
Okay. Okay. And how much our margin.
Rajeev Setia
Nice medium ton stuns is the export.
Ankit Setia
He has calculated that into the Rows.
Devendra
Yeah. Correct. And second last question is you mentioned that 10 margin. Okay. Compared to previous quarter 9, 9% network how much for this Q2 as you say for 4400 crore will be achieving revenue. And how much that margin.
Ankit Setia
For these the questions you are asking. 10, 11. I request you to check the previous data of the company. It’s all available. You can see what kind of margins. Generally the company posts a margin between 9 to 14%. It keeps you know going up and down. So better you see the pass record. It’ll even give you better, you know than what we can expect.
Devendra
Okay. Okay. Right. Yeah. Okay. Okay. Thanks. Thank you.
Unidentified Speaker
Thanks. Thank you. We’ll take the next question from Vivek Singh.
Vivek Singh
Hello. Sir. My question is what are the key challenges business is facing right now? And the second one is more generic. What are the key learnings of this quarter?
Ankit Setia
See the. The biggest challenge right now is you know Donald Trump, the president of US comes every week and he comes up with a new tariff. This is the, the biggest challenge right now. What the industry is facing. Other than that I don’t think there’s any much challenge. And the biggest problem with the business is to have you know, like that already we’ve taken care the model supports too many customers. So as such there is no challenge for the business.
Vivek Singh
And sir, what are the key learnings of this quarter?
Ankit Setia
What? So the key learnings. See what is happening in the quarter is the prices are going from up to down. So when something like this is happening normally we reduce the speed of business. It is not a learning. We already know about it.
Vivek Singh
Okay. Sir, in previous con call you have said that the company makes money when prices go ups.
Ankit Setia
Also I said when the prices go down, company makes more money. When the prices go up, the company still makes money.
Vivek Singh
So sir. Yes sir, I want to get some clarification on that. I don’t understand what you want to say.
Ankit Setia
What is that what I. What I want to say?
Rajeev Setia
I will, I will explain it in a very simple language. But when the procurement businesses you buy cheaper and sell expensive. This is how you make the best better profit. And if you are buying at high price and it becomes difficult to sell at the high price you may earn but your earning could be break even or little earning. This is what Ankit is saying. When the stocks low stock price is coming. We try to procure and then try to sell at the higher price. That is his meaning low price.
Vivek Singh
Okay sir. Okay. Thank you sir.
Unidentified Speaker
Okay. Thank you. Take the next question from Harsh Pedia.
Harsh Kedia
Hello sir. Sir, given our volumes was flat this year, that means the entire 15 decline on sales comes from lower rice prices. So rice prices have come down 15, sir, that’s a question.
Rajeev Setia
Yeah, yeah. The prices of rice are considerably down as compared to last year. You know, last year this time prices were very, very high. And the, that that’s the reason the big. In the beginning, the prayer of the new season, the prices were up, then they tumbled down. So we buy low price and we have to accordingly sell with, keeping with, with our margins.
Harsh Kedia
Got it. So and the other question is like I think we have a conservative inventory accounting. So do. Did we already mark down our inventory prices according to the current realizable prices?
Rajeev Setia
Whatever inventory we have is at the very good prices. And it is already helped with the sales. The sales and simultaneously buy it. Right. Also. So we have no problem, we learn, we have no debts of the bank. We have no worry any kind.
Harsh Kedia
And so like I’ve been following the company for a long time now. I just want to say one thing. I feel what you guys do in terms of changing your selling strategy over time according to rice prices, this is a very good way to also preserve the balance sheet to down sale volume. So I also want to appreciate this. And overall I kind of feel that this call has been a little bit gloomy business cycle. I feel we should continue to think about our volume growth maybe from more markets, but just a casual feedback there.
Rajeev Setia
We are in 94, 95 countries. The teams move around in every country try to serve what you’re saying is.
Ankit Setia
What you’re saying is right. But with the model we have, you will see some quarters will become very big, some quarters will become slow without, you know, compromising on the margins. In the future you’re going to see some quarters where it, I mean maybe we cross 500 crore rupees, maybe we touch 600, but that’s fine. Like it is going to be like a hybrid model where if everything is favorable, favorable, you will see a big quarter, things are not favorable, maybe slow down for three months.
Harsh Kedia
I think that’s fine sir.
Ankit Setia
Like yeah, maybe six months. Why, you know, work on low margin or why take so much risk when you know, you know something is going to fall.
Harsh Kedia
Yeah, I understand. And preserving the balance sheet there, it’s much more important than trying.
Ankit Setia
Absolutely. Like, like I tell you now we are talking, we’ve talked about USA Suddenly, you know, there is, there is a tariff of 25% for U. S business. You need to stock rice for one year. You talk about our company we don’t have any stock. So we have, we are free. We don’t have any problem with the tariffs. Like in the, in this quarter there was a war between Israel and Iran. So the people, the companies who were exporting rice to Iran, they were in big trouble because they didn’t know, you know, the war is going to last for how many days and when their money is going to come.
Still the money has not come. Again with our company we were trouble free because we don’t deal much with Iran. So you know there are a lot of strengths. So depends from quarter to quarter maybe in the future if there is, if there is some, if the things are good, maybe we start exporting to Iran also. Yeah, and like that I understand.
Harsh Kedia
And my last question is on our branded domestic sales. I think we were also trying to sell through our other like qsr, like other sales channels. How is that going? Have you appointed a team for domestic market? And how is, can you give a.
Ankit Setia
You know, honestly speaking, you know we are trying to build a brand in domestic. The only challenge I face is profitability is much more when we export, when we are selling in India the profitability goes down. We, we’ve tried the online channels like Blinkit, Zepto, you know, we’ve tried but they take majority of the profitability. This is the biggest challenge with India. And now, now like you know, now is a time where everybody knows market is going to fall. So not the Indian market is absolutely dead. There is not even much demand also. So they’re very smart in India and it’s difficult to make money.
Harsh Kedia
Sure. Okay. Yeah. That’s all from.
Ankit Setia
For example, if I’m dealing in USA or in Europe, maybe selling 100 tons would fetch me the same amount of money in India maybe I have to sell 10 times that same amount of rice.
Harsh Kedia
Got it? No, that’s all from my side.
Ankit Setia
So we are trying to, you know, increase our export business with the model we operate on.
Harsh Kedia
Got it. Thanks.
Unidentified Speaker
Thank you. If anyone else wishes to ask the question, please raise your hand. We take the next question from.
Navneet Bhaiya
Hi Ankit. Hi Rajiv ji. So my question is on your new plants, are they now fully ready to, are they fully operational now? You had three new plants coming up, right?
Rajeev Setia
One plant in Gandhidham was opened on 4th of July. It’s regularly working non stop and I think two are ready in two out of three.
Ankit Setia
Two out of three are ready in.
Rajeev Setia
Kernel, they’re working production, two are absolutely working. Yeah.
Navneet Bhaiya
So what’s the utilization like in these plants?
Ankit Setia
So currently because we are seeing a decline in the prices with the new plants. We are not. Maybe we are running an efficiency of 50%. We have not operated them at 100. Going forward things are favorable. We are going to operate them with full swing.
Rajeev Setia
Gandhidham unit is working at full swing.
Ankit Setia
So Gandhidham is working full kernel. Maybe 50%. The new one, the old ones are all working at their capacity. Okay.
Navneet Bhaiya
So as you can see things right now. You see a flattish volume this year as compared to last year. Or do you see some growth possible?
Ankit Setia
You know, it is difficult to say right now. It all depends. You know. I can answer this in the month of October, November. This question right now. I cannot say anything.
Navneet Bhaiya
Okay. So overall now what’s your capacity in volume terms? What’s the maximum volume that you can do with all your plants combined?
Ankit Setia
Maybe Vinayji can tell how much volume we’ve done in the full year last year. Yes.
Vinay Pandit
For last year total volume was 1-73-319.
Ankit Setia
Right. So like my charger, he was explaining the volume will depend on the size of packaging we are doing. If it is a big bag like 50kg then maybe the capacity doubles. But if the packaging size is 1 kg. The packaging. Sorry. The capacity comes down. So entirely depends what kind of orders we get.
Navneet Bhaiya
Okay. So these three new plants came in this year only. Right. These were not operational last year.
Ankit Setia
Came operation only in this quarter.
Navneet Bhaiya
Okay. All three. Right.
Ankit Setia
Not three. Yes. One Gandhidam and two in Gal.
Rajeev Setia
Not Gandhi.
Ankit Setia
Sorry. One in Mungra and two out of three in Karn.
Navneet Bhaiya
And what is the capacity of these three packaging units or plants that you have?
Ankit Setia
So these plants can do a revenue of 100cr rupees annually. Each one of them.
Navneet Bhaiya
Sorry. In volume terms. Ankit. Because price can be volatile.
Ankit Setia
Right? You are. You are right.
Rajeev Setia
So volume. I. I have checked with my Gandhi unit. It is doing right now 7 to 8 ton per hour. So if we run 20 hour instead of 24 20. However we work, it’s 150 ton quantity.
Ankit Setia
But you know.
Rajeev Setia
But it is likely to increase now. It’s the beginning.
Ankit Setia
But. But see the. Again the speed of the plant. Depends what kind of packaging you’re doing. Maybe you can run 150 tons. But then if it’s 1 kg packing the speed will become less.
Rajeev Setia
Yes, that is there.
Ankit Setia
Okay. Having said, I mean your question in terms of volume. A plant should do at least. At least do a packaging of 35 to 50 tons per day.
Navneet Bhaiya
Okay. So all the three plants should give you 100 tons. So about 35,000 tons annually. Approximately.
Ankit Setia
Yes, you can say that. Yeah. Plus, minus.
Rajeev Setia
If it is 50 kilograms packing and.
Ankit Setia
A big garden, then, then, then of course, then it’ll.
Navneet Bhaiya
Yeah, I understand that. But on an average roughly there on.
Ankit Setia
The lower side, you can take maybe 50 tons. So 10,000 tons. Yes, you’re right. Per. Per plant. It should. It is a good figure.
Navneet Bhaiya
Okay, understood. Okay. Thank you so much.
Ankit Setia
You’re welcome.
Unidentified Speaker
Take the next question from Yoga Swami.
Yogansh Jeswani
Hi, thanks for the opportunity. So uncle Ji, Rajiv ji, most of the questions you have answered already. Just one clarification to one of the participants. You mentioned that one of the packaging units is facing some teething issues. And I think last con call also we had mentioned something similar. So any specific issue that we are facing or any timelines that you can share on by when we expect to streamline the same.
Ankit Setia
No, by teething troubles. What I meant was whenever a new plant is starting because the the plant has series of 15 or 20 machines. Right. So at least it takes 15 to 20 days or one month, you know, to stabilize the plant. So the third plant is all set. Only this teething troubles we are taking out somewhere, you know, some degree is wrong.
Rajeev Setia
But the two are already working that, that is no longer with any kind of problem.
Ankit Setia
So maybe by this month and you know, the third one also will be perfectly fine.
Yogansh Jeswani
Okay.
Ankit Setia
See the thing is with the new brand, you know, since it is very new still some troubles can come. But that is taken care within a day or two. Like that.
Yogansh Jeswani
Yeah, no worries. So where I got confused, I think last con call then you must have mentioned of the other plant which you were just starting off, that they are teething troubles at that time.
Ankit Setia
Maybe they were teething trouble at that time. Maybe they were, you know, having problems.
Yogansh Jeswani
Yeah, yeah, Understood, understood. Fair enough, sir. Yeah, that’s it from my side. Good luck to you and the team.
Ankit Setia
Maybe next time. Next con call, you know, I will visit those plants. I will show everybody. How do they look like? They’re very interesting to look at the big plants.
Yogansh Jeswani
Yes, absolutely. And a video for all of us would be quite helpful.
Ankit Setia
So yes, I will do a live video next time from the plant itself.
Yogansh Jeswani
Great, great. Even on the website you can see our plants.
Ankit Setia
I’m not sure if the new ones are there.
Yogansh Jeswani
New one may or may not be. I’m not sure.
Ankit Setia
These are absolutely stainless steel plants and big in size. Very interesting to see. So next time I will arrange for. Sure.
Unidentified Speaker
Thank you sir. We’ll take a follow up question from.
Harsh Kedia
Yeah, so thanks. For this plant thing, I think last year or the year before, you Also on your YouTube channel you had put a complete video of the manufacturing setup. So if you do this video, maybe you can also put it on your YouTube channel. It’s good to see like the scale of operations that the company operates at. It was like even the last one was very impressive. So I would be interested if you can also put it on YouTube so that people can also see it afterwards.
Ankit Setia
Absolutely. You are right. Because in Karnal we have the biggest storage facility in terms of storing rice or in terms of storing bags. So next con call, I’m going to show everything live and we going to put it soon on YouTube. Also.
Rajeev Setia
YouTube and Instagram can put it. Whatever is the variable we should put.
Unidentified Speaker
Anyone else wishes to ask a question, please raise your hand and put her in the chat box. Since there are no further questions, sir, I would request if you have any closing comments. Would you like to give any closing comments?
Rajeev Setia
Ankit, start with your closings. Yes. Close yellow.
Ankit Setia
Okay, so my closing comments would be. Like I said, the company is like a hybrid motor. So some quarters are going to be very big. Everybody will be surprised. And some quarters will be slow. So last quarter, I would say we deliberately slowed it down. We decreased the speed. Margins are not compromised. Margins are fine. And things are going to get better. And I promise that revenues are going to get bigger and bigger. Thank you.
Unidentified Speaker
Thank you to the Manipul for your time and thank you for all the participants for joining this call. You may all disconnect.
Ankit Setia
Thank you. Sir.