Chaman Lal Setia Exports Ltd (NSE: CHAMANSEQ) Q4 2025 Earnings Call dated May. 29, 2025
Corporate Participants:
Unidentified Speaker
Rajeev Setia — Joint Managing Director
Ankit Setia — Executive Director
Analysts:
Unidentified Participant
Pavan Kumar — Analyst
Pavan Kumar — Analyst
Ankit Setia — Analyst
Aniket — Analyst
Kewal Shah — Analyst
Rajesh Mangal: — Analyst
Siddhant Bhandari — Analyst
Hitesh Randhawa — Analyst
Praveen Sharma — Analyst
Praveen Sharma — Analyst
Piyush Patel — Analyst
Rajesh Agrawal — Analyst
Madhur Rathi — Analyst
Presentation:
operator
Ladies and gentlemen, I welcome you all to the Q4 and FY25 post earnings conference call of Chamralal Setia Exports Limited. Today on the call from the management 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 run us through the business and performance highlights for the period ended 31 March 2025.
The growth plan 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. This closing, you know has a lot of questions I’m expecting from you. But we did our best. We worked hard. It was a very very tough time. This time the ocean freights due to geopolitics issues they had gone 100% up and now they have come down gradually. They are coming down. When one one part hits logistic part it hits the other portions also the rice prices which were very high in the last year they opened around 20%. 15 to 20% lower this year we procured. Normally the prices gradually go up. But in this particular year they remained sustained all along or there were a bit reductions.
And thereafter this US issue, the dollar has weakened. So our currency is appreciating. That is also one of the issue. But despite all these problems the company has come out with very good profitability. I would say in such a circumstances excellent profitability is the excellent growth revenue of 1500 crores. All good rest up to you. You can raise your questions.
Questions and Answers:
operator
Thank you. All those who wish to ask a question may use the option of raise hand. If you are not able to raise hand you can put a question in the chat box and we’ll invite you to ask the question.
Rajeev Setia
You’re already on unmute. Do you want to ask a question?
Pavan Kumar
Hi sir, can I ask a question? This is Pawan.
Rajeev Setia
Sure, you can go Ahead.
Pavan Kumar
Yeah. My question is first of all, what is the volume growth for this particular year and quarter? And also two book keeping questions of mine were like what is the volume of inventory there with us right now at the end of the year? And if you can give us what was in September and also the previous year, it would be great. I want the volume volume data.
Rajeev Setia
As. Regard volume is concerned. The. The volume as regard sales is concerned. It’s just 11 12% increase this particular year. 1. Okay, you are asking the stock.
Pavan Kumar
Yes sir.
Rajeev Setia
Stock position at the end of this year. One second, one second. In terms of tonnage, the rice was around. It was more than 65,000 tons.
Pavan Kumar
Okay. And can you give the same number for September and also last year March, what was the closing number?
Ankit Setia
So having said that, this I have said only for the rice. Adi was separate. Right. Just giving a tentative idea about the rice. Right. And what was your second question? You would like the same figure for which date?
Pavan Kumar
So Ankit rice plus paddy, what would it be?
Ankit Setia
Yeah, so the races it was more than 65000 tons. I’ll give you the exact figure.
Rajeev Setia
Value wise I had somebody picked up. It. Is. So sir, paddy wise it was more than 7600 tons.
Pavan Kumar
Okay. Paddy rice was 7600 tons.
Ankit Setia
Yeah. Paddy you can say 7600 tons. And rice was 65 000.
Rajeev Setia
And it is 430 crores. Stop.
Pavan Kumar
There you go. Got it. And same number ankit for FY24. And if you can give what was the closing in September it would be great.
Ankit Setia
So September 2024. Okay, let me pull it. Please allow me some time.
Rajeev Setia
Okay. I. I have in Mobile. I got. I just. You can continue with some other question. No issues. This I’ll tell you.
Pavan Kumar
And so what. What would be our expectation for this year in terms of volume growth? And also what is our understanding is the higher price in inventory which we bought last year, I mean which was 20 or 20% higher. Is that out of the system? And were there any inventory losses this particular quarter because of that?
Rajeev Setia
In fact the inventory losses you see, we covered everything. But the point is at some points we had to sell at break even or with the meager profit we usually don’t come to us. We have been always very strong as regard our buying and selling is concerned. But this particular year, as I told you in the beginning, this ocean freight hit us a lot. And secondly because of that only when the supplies were not giving good realization the prices also started going down. When they go down Then. Then the atmosphere becomes such. But in any case, we had been earning. We have not lost money at all.
Pavan Kumar
Right? Right, sir.
Rajeev Setia
It has come down. Of course.
Pavan Kumar
Yeah. Great job. But inventory losses. Would you have a numerical figure for this quarter?
Rajeev Setia
There is no losses in the inventory. Because the inventory has been bought at a lower prices. One we have on the other height hedged with the sales simultaneously. How come there is a loss and now the prices are going up Also we are selling at a higher prices. Okay. Yeah.
Ankit Setia
From January till March prices were not coming down. They were stable. Rather they were going up like an organic growth. And after March the prices have. I mean they have started to seriously go up. That is what is happening.
Pavan Kumar
Okay.
Ankit Setia
So with an inventory of 65000 tons rice plus paddy, we were extremely comfortable. We are still comfortable.
Pavan Kumar
Okay. Okay. Thanks sir. I will join the queue.
Ankit Setia
But whenever I will I’m pulling. The question you was. It’s coming. So I will post that for you.
Pavan Kumar
Please let us. Thanks.
Ankit Setia
So there was no inventory loss.
Rajeev Setia
One point which I which was questioned and I could not reply. That was the stock in 2014 was 499 crore. 500 also in the past and in this particular year we have a total stock of 433 crore. As on 31st you are saying FY24.
Pavan Kumar
The stock was 499 crores.
Rajeev Setia
Yeah, 499 which is 433. Okay.
Pavan Kumar
And what is the volume? If you can let us know whenever it is available.
Rajeev Setia
I’ll let you know. Data. No problem.
operator
Thank you. We’ll take the next question from Aniket. Aniket, you can unmute and ask.
Aniket
Thank you sir. So my question would be that. Can you be more specific on what impacted our revenue and our volume growth and also supply to which region was impacted the most?
Ankit Setia
Aniket, our sales have gone up. They have gone up by 140 crores. So there is no impact on the sales. The revenue is higher as compared to last year.
Aniket
Okay. And what has been the main impact of the container freight rates on profitability and margin.
Rajeev Setia
So what happened is the transportation cost has doubled in last one year. So that has impacted the profitability. But this is I would say short term the business will readjust according to that.
Rajeev Setia
I can a bit share the figures. The ocean freight which was last year in September, October 1800 dollar for Sokhna Egypt it is 500450 dollar. Now in April 25 same way Haifa Port in Israel was 3500. It is 890 now. Ashrad Port of Israel where we are doing large business in Israel. 4000$. It is 1090 now. So it is just 25%. So all around even in the Europe Norway was as high as $4100. Then it came down to 3700 and now it is $1800 shipping to Norway regularly. Reunion 2805 it’s 900 and so on and so forth. All areas are coming down. Miami was 5000$. It’s 2,500 now. So it as Sankit said it was a temporary short period and it has come down to its actual levels now.
Aniket
Okay. Okay. So coming to first question. What I know that Q4 revenue was around like 36 crore versus 38 in last year. Q4 so revenue has come lower. So on quarter basis. So that’s why I actually asked the what impacted the revenue. Okay. Anyways thanks for your question.
operator
Thank you. We’ll take the next question from chat. Deepali Kumari has asked what is your average realization of basmati rice in FY25 and how much you are expected to grow?
Rajeev Setia
What is the question Repeat
operator
What is your average realization of basmati rice in FY25 and how much are you expected to grow?
Rajeev Setia
Price Surprise realization. They are asking Ankit. It’s according to the. Are you not prepared for this question even a date?
operator
Her next question is how much revenue percent you are expected from Kernal and Gandhidham in the upcoming year.
Rajeev Setia
It’s always around 99.5percent revenues from Keral 5.7percent from Gandhidham in the next year. We feel the Gandhidham revenue will go up because the new plant. I just have to go for the opening now any day is ready. And the another unit which the old unit we are running that will be brought down to new unit. So will it have double capacity? Obviously it will go up.
Ankit Setia
I will say some approximate figures. For example we did an ex. We did. We did overall business of 133,000 tons in the last year. The profitability is around 133 crores. So it comes to about 10 rupees a kilogram. So you were asking per unit profitability. It comes to about 10 rupees and the revenue has gone up by 140 crores. So that is because we’ve recently started three you3 new units in Karnal. Out of the three new units two units have started working at an efficiency of 60 to 70%. So it is because of those units this revenue has gone up.
operator
Thank you sir. We’ll take the Next question from Kel Sha. Kel, you can unmute and ask.
Kewal Shah
Yes, thank you for the opportunity. Sir, I’d like to know what’s our plan on the premium products Similar to what other rice brands like India get offer. And do we have a plan to look at creating and scaling up this business.
Ankit Setia
So see like different rice companies have different models of working. Where the model of our working is mostly to pack private label. And of course we are doing our own brand also. And we are trying to expand it. But the main model is to do private label for our foreign customers. And we are expanding in that. That is why our revenue is going up. But this year in terms of expanding our revenue by 10%. We. We worked on some small low margins also in that 10%. But you know next quarter the same same buyers and same revenue will lead higher profitability. So that is the model we follow.
Kewal Shah
Okay sir. And what’s the status of our new facility at Gandhidham? And what are the. What are are the activities we plan to cover there?
Ankit Setia
Okay. I would. I would like. I would like to add the model we follow. It’s a very light and a flexible model which protects us against lot of turbulences of the market. For example, the raw material comes once in a year. Our model protects us. If the prices go down too they. They go down too sharp. So that is how we operate. Regarding the Gandhidham plant. It is to be inaugurated soon.
Kewal Shah
Okay sir. That’s it. From my side. Thank you.
operator
Thank you. We’ll take the next question from Rajesh. Rajesh, you can unmute and ask.
Rajesh Mangal:
My question is what is our future guidance? What is the extra volume we are going to add this year.
Rajeev Setia
There is few very good development in this particular year. For last six months watching very big companies world around are contacting us very good concerns. The modern change. And they are. They are approaching us. I have been invited in Australia next month. And there will be complete all group of these what you call modern trade people. They are going to meet me. So these things we never happened in the past. But now these things are coming. Even Sankesh and Ankit also sometimes tell me when they participate in the exhibition. People from different part of the world people are.
People are getting attached to our company. Now the reputation is such. You never if somebody sends advanced time deshipment. Nobody is people are very comfortable doing business with That’s why it
Rajesh Mangal:
My question is what is the extra capacity we have added so as to increase our revenue this current year?
Rajeev Setia
Yeah. Three units have come in Karnal already. They they are functioning already by I think by March they were ready complete or not. But now all the three are Ankit. All three are working or two all are working Ankit. The three new units we’ve. We.
Ankit Setia
We put in three plants. Out of the three, two have started to work. Started. But we are running in an efficiency of 60%. They’re still not on their 100.
Rajeev Setia
And what about the third one?
Ankit Setia
Third one would start after about one month.
Rajesh Mangal:
So what what we are expecting current year all the three plants will run in the 100 capacity.
Ankit Setia
The increase of revenue of 140 crores that has come because of these plants. These two plants which have started to run.
Rajesh Mangal:
Correct. And you are saying that this they are running in 65 capacity. Okay.
Ankit Setia
Yeah. They are running on an efficiency of 60. There are some issues with electricity. We are trying to solve those. So moment everything is solved. I think in next one or two months it will be you know at their full level then.
Rajesh Mangal:
Okay. So Ankiti, can we expect the threat as you told H. Rajiv, we told. I think that freight ocean freight rate has already been reduced.
Ankit Setia
Yeah. Yeah. They have considerably come down. Okay.
Rajesh Mangal:
So in this year we can expect a very good handsome profit also.
Rajeev Setia
Yeah. Should be this.
Ankit Setia
This year we expect at least a revenue of 2000 crores with the new plants coming in. And of course if you look at the past history of our company the corresponding profits also should come.
Rajeev Setia
Correct? Correct.
Rajesh Mangal:
And Rajiv in last concur last year Conquel said we have discussed that we are going to target some extra protein product or like that. I think extra extra. Some product as a product.
Rajeev Setia
Actually Vijay has made that rice quick cooking rice in two. Correct. Correct. That’s what that. Because that is in the lab that has been made in commercially. He’s still trying. Commercial production will take time. Okay. Okay.
Rajesh Mangal:
Thank you and all the best.
operator
Thank you. We’ll take the next question from Siddhant Bandari. Siddhant, you can unmute and ask.
Siddhant Bhandari
Thank you so much for taking my questions. The first question is just a data keeping question. So what was the volume growth qoq and yoy for q4 in percentage terms.
Rajeev Setia
Yoy it is 11 increase in volume. I’m talking of the year total.
Siddhant Bhandari
And what would that be for Q4, sir? Okay, maybe afterwards if you can just share the data if that’s okay. And then the second question is, you know we were studying all the rice companies and margin this quarter even sequentially compared to Q3. So what happened exactly? The EBITDA margin Q3 say Q4 is there freight charges realization. What happened exactly?
Rajeev Setia
B. You see what happened. Ocean freight on one side were higher. We tried to mitigate our losses by persuading the customers. Also some people are adamant. They don’t agree whatever you try to convince them. And the prices of rice all along were gradually. Gradually they were stable or coming down. Sure. So that that has a hit also. But despite all those PD the company made good profit, I would say.
Siddhant Bhandari
And then sir, the third question.
Rajeev Setia
Now the prices have started going up for the quarter or so I can say.
Siddhant Bhandari
Revenue growth roughly. Can we expect the same for next year also or because of the new packing plans and stuff. Because efficiency plus.
Rajeev Setia
We are working hard, all of us. We are trying to expand our business to new.
Siddhant Bhandari
Because. Actually because the reason I’m asking is because I think Ankit mentioned he is targeting 2000 crores or something. I think for FY26. So I was just trying to figure out how much pricing you’re making and how much volume.
Ankit Setia
Revenue. We were stuck last two, three years. Things are changing. Listen, listen, listen. Number two. Prices were all time high. Sorry. Prices were all time low. Okay. Prices both come to naturally. Season May 20% upper Kulte.
Siddhant Bhandari
Right. Got it. We are very happy with the company. We shareholders.
Ankit Setia
So this is my point. Hello, can you hear me? Hello.
Siddhant Bhandari
Yeah. Yeah. Yeah. You are.
Ankit Setia
Okay. So today we appointed a distributor for Maharani in Australia. So we are adding quickly new customers. Jomara model. We are trying to expand it. We have a full team working hard day and night.
Siddhant Bhandari
Sorry Rajiv ji, actually your first 30 seconds I could not hear. It was. Your face was frozen after weapons I couldn’t hear anything.
Ankit Setia
No, no. This is me. So. No. What I’m trying to tell you is infrastructure is built. We are ready with our plants now. So that is why the revenue has gone up.
Siddhant Bhandari
Right.
Ankit Setia
And Kabikabi revenue. You need to sometimes work on low margin just to get new customers break in.
Siddhant Bhandari
Basically just to start.
Ankit Setia
Yeah. Just to break in. First thing was required. Infrastructure complete.
Siddhant Bhandari
Right.
Ankit Setia
Let’S work on that. But the target is to do 2000 crores. And we are confident we are going to achieve it. Yeah, got it.
Siddhant Bhandari
Got it. Helpful. So that’s all from my side. Thank you so much and sorry for the. Thank you so much.
Rajeev Setia
Thank you.
operator
We’ll take the next question from Praveen Sharma. Praveen, you can unmute and ask. We’ll take the next question from the line of Hitesh Ra. You can unmute.
Praveen Sharma
Yeah, yeah, sorry. I have two questions. First of all sir, you know as you know I have been following the company for a very long time. So the way under I understand is our business model is instead of having large customers we have you know sell in 80, 90 countries with. And we have lot of small customers. So and typically with low rise prices in domestically in India we make decent amount of profit. So I just wanted to understand specifically in this quarter when we had Ramadan also why the profitability has reduced. You mentioned freight and you know the currency thing. But my just to elaborate. You know if you can elaborate as to is are our buyers also started looking at the basmati prices in India. And based on that if it is following they, you know just withhold their buying. Is the scenario like that.
Rajeev Setia
You see as bad buyers are concerned. Most of our with us. All of them are with us. And once in a while some buyer goes. Some buyers we also kick out. Also you come across that people also. But more and more people are coming to us. We are participating in Every right now Mr. Vijay City and Sankesh are in Bangkok Thaifax exhibition that we learned on 31st. Now the question is we have not gone for the Thailand market. We know that’s not market. We already have two customers there from world over. Because the Thailand is the equal competitor with us for non basmati rice.
Sometimes they are higher than us, sometimes we are upper than. So the customer from all around the world come there. And in the last year also we got customers. And I’m confident that Mr. Vijay and Sanesh jointly they are there they will get new customers. Because the basmati people are few over there people come to buy jasmine rice, non basmati rice. So this. This is the continued pursuit of the company to work hard and move around world around. New generation is going. Ankit is traveling, Sankesh is traveling all the time. Somebody is up. Our sales teams also working hard in the company.
And last quarter question. The prices of the rice started coming down when the ocean freight went up. The buyers were buyers slow down on the buying. Also I’m not talking personally my company for. For the entire industry as a whole there are so many people, so many exporters, trader exporters, small builders. The price when the prices come down it does hit. Whatever you may be able it hits. So the last quarter is relatively at the lowest profitability. It these things part of business. For any business. This is the common things. It has come, it will go up.
Praveen Sharma
Okay. Okay. The second question is sir, in this UK FTA is the rice also covered means or rice is expired.
Rajeev Setia
I I don’t think they are going to allow this duty abatement to rice which is processed in India. Yeah, if you send the brown rice.
Praveen Sharma
And polish Tilda and just these guys.
Rajeev Setia
Are did good job all along. And now he has sold the brand.
Praveen Sharma
And sir, UK US, US tariff means. Does it impact us in any way or we don’t export much to us.
Rajeev Setia
What is the US US we are one of the. I think we are second largest or third after LT. You know, you’re aware?
Ankit Setia
No, we do. We do quite a lot to usa. And since our customer base is all ethnic, so the terrorist system doesn’t disturb our business. Had it been a mainstream business then the impact could have come. Because with mainstream your contracts are only once in a year. And they don’t entertain any kind of excuses. The prices go up. So since our customer base is all ethnic, they, they. They don’t. We didn’t have any problem.
Rajeev Setia
Their question is about the duty.
Ankit Setia
That’s what I’m saying.
Praveen Sharma
They will absorb it.
Ankit Setia
The the tariff which has been put by us since our customer base is all ethnic, so they can easily absorb it. Had it been a mainstream customer base, they don’t accept any change. Once you know, once you are in a contract, you need to honor it.
Rajeev Setia
No, but it’s the duty imposed by their country, not we. They have imposed the duty if it is imposed on the exports.
Ankit Setia
You are right. But with the ethnic company you sign a contract for one container or a two container or three containers. Whereas for a mainstream company you will sign a contract for let’s say 500 containers. So 500 containers will not reach in one month. It will be like a schedule. So a mainstream company will not allow you to change the price. You are always with the credit terms with them.
Praveen Sharma
But they will absorb whatever the duty us is absorbing.
Rajeev Setia
Right now, 90 days this extension is given and it is a small period. They will finally come down. I think Trump are cool now. They are likely to fix it around 7, 8%, less than 10%. This is what I’m doing.
Ankit Setia
What happens is when you’re dealing with an ethnic customer, first of all, he will not place a very big order. It’ll be like one or two containers, right? It’ll be like one container a month types, right? This is number one. Number two, your dealing is you’re dealing straight with the ethnic customer. The problem comes once you’re dealing with the mainstream company. There is no ethnic guy. You are dealing with the GHA company, a white company. So your dealing is straight. Your company rise going To a English, sorry, an American company. And you have a contract of let’s say 300, 400 containers over there. You cannot, you cannot say these things because you already are, you are, you are bound with a contract. Your price is fixed for the full year.
Praveen Sharma
But then they will, if it’s the prices fixed, he will pay the import duty.
Ankit Setia
Whatever the price they don’t pay. It’s.
Praveen Sharma
A contract. But it is, it is, you know, landed at their fact.
Ankit Setia
It is always door delivery when you’re dealing with a mainstream company. So import custom duty is online and. They have your money for 90 days.
Rajeev Setia
You look at the contracts, custom duty or whatever.
Ankit Setia
No, no, I’m not talking about buyer account. I’m not talking. See, ethnic contract is very simple. It’s very flexible. Any duty, ethnic person will pay. But mainstream contract is different ball game altogether. Ethnic person is an Indian person, Bangladeshi person. You can, you know, just make a phone call. You can even change your contract.
Rajeev Setia
What’s up? Which corporate.
Ankit Setia
American company listed big Walmart company will not listen to you.
Rajeev Setia
Last week. This is what people are people.
Ankit Setia
Ethnic mindset is absolutely different when you compare it with the American company is right also because they have promoted, they have done their deals according to that. So our business is all ethnic. We don’t do any mainstream as of now.
Praveen Sharma
And if there is a duty differential between India and Pakistan, do you think we will have a.
Ankit Setia
So currently Pakistan prices are higher than India by $100, $150. So it is at its advantage. So that is for the future. If you know India, you know India in future if India is able to stop their water. And I was reading, you know, they, they are dependent on Afghanistan also for their water. So Afghanistan also because I think in future, eventually it is going to happen. Any country would not like to share their water. So if they close the water, maybe there is no agriculture left in Pakistan. It becomes an importing country. And this is real, I mean this is realistic.
Rajeev Setia
Yeah.
Ankit Setia
In, in future there is going to be requirement for water. So they like it or they don’t like it, they have to stop the water.
Praveen Sharma
And sir, last Ankitji, as you said that you know this year we are targeting 2000 crores. So I assume that we will be doing, you know, at a, at a, you know, decent margin. You know, it’s not only top line growth, it will be coupled with a.
Ankit Setia
Decent, you know, you know, to increase the revenue. Sometimes you have to compromise on your margins just to get the entry, just to test the customer. Like we’ve increased the revenue of 140 crores. So you know many new customers have been added in. Sometimes we can even work on a loss on the first deal. Let’s say if somebody wants to take one container as a let’s say sample I would not look at what is the market price. I would just, I would be happy to start the business. But this is only for the first container. Once he’s satisfied the second container of course we’re going to charge our regular margin.
Praveen Sharma
And secondly this is all business goals with the economics laws is that demand is there, the prices.
Rajeev Setia
Yeah, yeah.
Rajeev Setia
It happens in the commodity commodities as up and down.
Praveen Sharma
And sir, since you raised this point of commodity you know, you know where we do we stand for branding as far as domestic market is concerned. You know we have been talking about Maharani brand launch in India and you know, you know deeper distribution penetration and things like that. But I don’t think anything substantial has happened on the ground.
Rajeev Setia
You are right, nothing substantial has happened so far we are concentrating on online sale. We are with the Blinkit and Amazon and so many and the sales is gradually going up and we have right now year marked NCR only. NCR itself is a very big market. Let’s see it’s very quickly going up. Every day sales is going up. So let us see, let the brand be little famous then we can go for advertisement and go for the distributors also.
Praveen Sharma
That is the online also Blinkit. I am from Noida but it is not available on Blinkit. Nada. Because we have a great product. Quality of the product is excellent and I am sure you know slightly more push will give very good result.
Rajeev Setia
Yeah I’m giving them in Gurgaon. They come and pick from my this corporate office every day but maybe they, they will ask them to put it.
Praveen Sharma
In and the entire ncr you should.
Rajeev Setia
Entire NCR is our target. Entire NCR is our target because. Because name has to have some, some recognization. Without that you see like burning the money is no use, you know.
Praveen Sharma
Okay, great sir. All the best and very good wishes for the next year. Thank you.
operator
Thank you. We’ll take the next question from the line of Hitesh Randava Hitesh you can unmute and ask.
Hitesh Randhawa
Hi, thanks for this. My first question is you touched upon margins. Ankit, you did say. And Mr. Rajiv you also did say that because sometimes we need to sacrifice small amount of margin to kind of get a foothold. But FY26 what. What kind of margins are we looking at actually nonetheless.
Ankit Setia
So generally we work on a margin of 10 rupees per kilogram. This I’m talking from the past records. You can. You can check yourself. So this is the margin we work on. Okay. On an average. But sometimes, you know, to get a new customer, maybe I will compromise on 10 rupees. I might work on one or two rupees also just to get.
Siddhant Bhandari
I totally get that. I totally get that.
Ankit Setia
Sometimes I’ll work on a loss also get him.
Hitesh Randhawa
It’s understandable. It’s just that. Okay, I need to model my numbers etc. I just need to have.
Ankit Setia
Once the. Once the introduction is done, once I know about the customer that he is capable of paying on time, he’s valuing my quality. Once the customer knows that you know, Chamalal Sathya is a serious company with on time delivery and the commitment is fined, then of course we increase the margins. And there are other forces also which support us. Not only we.
Hitesh Randhawa
Yes sir, I get that. So 9%. Would we be able to put a range to it? If you don’t mind range,
Ankit Setia
Iit will be similar to what we’ve done in the past future maybe same Iraqa. I don’t want to give it a number but you can look at the past records.
Hitesh Randhawa
Okay. And I’m sorry to stretch this further but last one on this topic say. And in the past we have had margins of second of 11 to 12% as well and 9%.
Ankit Setia
So it is between 9 to 14%. You are right. Sometimes it is 9, sometimes it is 14%.
Hitesh Randhawa
Okay. Okay. And other question that I had was that I think we have been hearing about this shortage of rice in Japan. And I think rice, Indian Rice Exporters association, they did have some meeting with the Japanese embassy as well one week back. And Japan is considering kind of maybe India as a potential source. And I think the rice that they want is sticky rice wherein the amyrose content is less than 10% and Hamaria, I think any it happens only in the northeast area. And I think there’s a rice called variety called bora rice. Etc. So is there any way we can benefit? Not immediately, but going forward. Is that something that we can explore?
Ankit Setia
So one month back, the Jap, there were people, there was a delegation from Japan who visited our Gurgaon office. Right. And about 10 days back they wanted to visit our karnal unit also. So something is cooking up. So your information is correct. And like you said, high amylose rice. Even in north India we have these kind of rices so they can be supplied.
Hitesh Randhawa
Okay, okay.
Ankit Setia
It is not entirely the South So there are varieties which are high in the Milos present in north India. We have those rices.
Hitesh Randhawa
I think. Yeah. I think they look for lower one. Right. I think less than 10%.
Ankit Setia
I think you know it. It is all demand and supply. If they have a demand they will even modify what they buy.
Hitesh Randhawa
Right, right.
Ankit Setia
Just to cover that thing up.
Hitesh Randhawa
Okay. And I think Mr. Rajiv Seti I think did say that about Pakistan. I already had that question as well. I don’t know that. Okay. It’s a geopolitical question. I don’t know status but impact by any chance because Pakistan does export decent amount of rights.
Rajeev Setia
Actually we are not going to give them at all. That is around 80% portion as what I am hearing. If, if something of that sort happens it will be catastrophe for Pakistan. And.
Ankit Setia
Currently they don’t. I mean if you read they don’t have the infrastructure to stop all the water. But eventually, eventually water is going there. I mean water is scarce and for Pakistani importer exporter it will be another weapon Modiji will have.
Hitesh Randhawa
Sure. Yeah. Thanks a lot. Yeah. Just had these questions.
operator
Thank you very much. Thank you. We’ll take the next follow up question from chat from Deepali Kumari. She’s asking if you can give a revenue bifurcation from private labeling and branded sales.
Rajeev Setia
Branded sale is around 14 to 15%. The rest is private label.
operator
Sure sir.
Rajeev Setia
This particular year the domestic sale is higher by 100 crore and.
operator
Sure sir. We’ll take the next question from the line of Piyush Patel. Piyush, you can unmute and ask. Afternoon sir.
Piyush Patel
Afternoon sir. I have certain questions with me like what’s your growth vision for the next three years and what will be the key drivers for this growth?
Rajeev Setia
Mr. Piyush, very simple. We have excellent infrastructure. As regard our factory is concerned. Even if we compare with the European meals, I know mine is the best one. All we company has good finances. No problem at all. Company has market around the world. 8590 countries. Company is participating in every single exhibition. Right now we are in Thax Bangkok. Next exhibition the bigger one will be Anuga in Germany. And we are trying to expand our business in domestic market also. But not at the lower prices. We want to make money wherever we sell. Right now we are pushing more on the online sales. I just want recognization of our brand name which was quite famous at one point of time. And I’m talking of 80s it was one of the top in Bombay. Anyway I have to put it back in in the public mind and then I’LL go for distribution and all that. Already we have Ankit you which distributor you impose you selected. Recently you are telling distributors so.
Ankit Setia
Distributor Australia.
Rajeev Setia
But gradually we’ll. We will start in India also. We have complete plans. We have not abandoned anything. We will do that because sometimes this year in particular we felt the international market was. Had we with us some domestic business also it could compensate us. I mean it’s the balance we have to make that’s very important. So we are trying for that,
Piyush Patel
sir. Great. Thank you.
operator
Thank you. We take the next question from chat. Vivek Singh is asking what are the challenges that we are facing right now and what is the learning from this year?
Rajeev Setia
Challenges and what we learned from this particular year.
operator
Correct, sir.
Rajeev Setia
You see, we have been learning from 74, 75 80s all all along we have been learning this business. And new challenges do come. But the kind of model we have. It’s a well tested model. Selling to multiple customer. Separate risk, multiple countries. So there is no reason to terrify at all. This. This is the economic flow. Suddenly there is more supply, less demand. Prices will be flat. You won’t be able to earn much. But these are temporary things. Tomorrow if the prices go up and the demand comes from other part of the world also. So businesses to grow. It’s a stepper diet. 60% of the world people eat rice. It’s gluten free. It is non allergic food. Food best where not business will increase.
operator
Thank you, sir. We’ll take the next question from Rajesh Agrawal. Rajesh, you can unmute and ask. Yeah. Rajesh, you. Rajesh, you are on mute.
Rajeev Setia
Sorry. First person who has shown his face so far. Yeah. Yeah.
Rajesh Agrawal
Follow question. Last video. To overcome this ocean threat we should have used some escalation. Cl. Escalation clause like in our contract. So that if ocean freight is will go from this and this. We will charge this extra amount. So extra context.
Rajeev Setia
A couple of my contest with Saudi Arabia. The tax if it is imposed outside India. Clearly that is to your account. That’s your government. You have to be a yourself. Normal clauses. WhatsApp. WhatsApp legally. So we are writing specifically in our contract business. It has to be considered legal for our contract. Taxes plus minus. It is not none of the concern of foreign supplier. Same. .
Rajesh Agrawal
Okay And second question is have we expect for some extra capex. Extra capex in this current year or future? Two, three years.
Rajeev Setia
Recently we put up three units. I mean we are increasing the packing capacity. Not the paddy to rice but capacity that we have reasonable and we are still slow on that. Okay. And third and last question is industry. The people are chasing us. Payment next day. Whosoever sells to us 2% CD. And when you pay timely, no dispute, no problem to the customer, you get cheaper also.
Rajesh Agrawal
Correct. And to increase our Maharani brand. Okay. We may hire some influencer also.
Rajeev Setia
Recently hired. I don’t know their name. I know he’s not here out of India. Packing design, latest way say visiting cards. Every single thing they are trying to improve.
Rajesh Agrawal
Yeah. long with that ad agency or like that we may hire some influencer also. That is not much money. More question. I think.
Rajeev Setia
Social media. I’ll talk to them. Warehouses.
Rajesh Agrawal
Every state we have to register.
Rajeev Setia
Belong factories in Harana will have to take.
Rajesh Agrawal
Thank you. Thank you very much. We will meet in next concole also.
Rajeev Setia
Sure, sure.
Rajesh Agrawal
Thank you. Thank you.
operator
Thank you. We’ll take the last question for the day. From the line of Madhur Rathi Madhura. You can unmute and ask.
Madhur Rathi
Yes, thank you for the opportunity. Sir. Sir, I wanted to understand. Our gross margins have decreased from 31% to 22% over the last five years. But our EBITDA margin has been fairly stable. So. So why is that? Has there been any change in accounting entry or if you could just help me understand regarding this.
Rajeev Setia
There is no change in accounting system. The. These are the. You see, it’s the business. You know. In this particular year, ocean freights went very high due to geopolitical reasons. Then this year the size of crop was big. In the beginning, the prices were low. We were happy that it’s the right time to procure. We procured large crop. Then the prices remain stable. Or sometime of course we buy and sell simultaneously. We hedge our buying. But you see, the ocean freight were high. Demands were relatively lower. Prices started coming down off the rise. So that has hit. Truly speaking, ocean rate and the fall of prices. We should be candid with the investors.
Madhur Rathi
Sure. But I’m trying to understand, sir. In FY21, our margins are 31%. Yeah. Sorry sir.
Rajeev Setia
Again the prices are going up. They have gone up by 10 12% now in last 20 days. So I’ll be. I have my stocks. I’ll be selling at higher prices.
Madhur Rathi
Yes, so. So I’m trying to understand that.
Rajeev Setia
Commodity. Joanna, who fixed price plus minus. We have to live with that.
Madhur Rathi
Margin buys portion, gross margins, operating cost b zadate.
Rajeev Setia
We are increasing our sales to get a better sales. Sometimes you have to compromise on the margins. Some big buyers come to you. You sell to them. They Give limited profitability. But they are nice continuity is gold pump. With the one big customer name. You sell to three other also because I’m selling to him the buyer. You see these things happen. So business natural. The business commodity short crop.
Madhur Rathi
Okay sir. So thank you so much and all the best.
Rajeev Setia
Thank you very much.
operator
Thank you. And since that was the last question. I request the management if you have any closing comments.
Rajeev Setia
Uncle, you close now. Today I open
Ankit Setia
my closing comments are that you know the revenue has gone up by 11% which is I think a very positive.
Rajeev Setia
Has gone by 11. And
Ankit Setia
The revenue has gone up by 11.
Rajeev Setia
Revenue. How much?
Ankit Setia
11%. So I see that. I see that A very positive sign. Because this is all because of increasing of our infrastructure. So once the full infrastructure is in place we can expect our target of 2000 crores very soon. So thank you very much.
Rajeev Setia
I. I forgot to tell the everybody. The company has given 50 lakh to Prime Minister National Relief Fund specifically for RV.
operator
Thank you. Thank you sir. Thank you to all the participants for joining us on this call. And thank you to the management team for giving us the valuable time. This brings us to the end of today’s conference call. You may all disconnect now. Thank you.
Rajeev Setia
Thank you.