Gopal Snacks Ltd (NSE: GOPAL) Q1 2026 Earnings Call dated Aug. 07, 2025
Corporate Participants:
Unidentified Speaker
Naveen Gupta — Chief Business Officer
Rigan Raithatha — Chief Financial officer
Analysts:
Unidentified Participant
Nitin Gupta — Analyst
Resha Mehta — Analyst
Bhumin Shah — Analyst
Dharmil Shah — Analyst
Shrinarayan Mishra — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to Gopal Snacks Limited Earnings Conference call hosted by MK Global Financial Services Limited. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing Star and then zero on your touchstone phone. Please note that this conference is being recorded.
I now hand the conference over to Mr. Nitin Gupta from MK Global Financial Services Ltd. Thank you. And over to you sir.
Nitin Gupta — Analyst
Thanks Nidhi. Good afternoon everyone. I would like to welcome the management and thank them for giving us this opportunity. We have with us today Mr. Naveen Gupta, Chief Business Officer and Mr. Rigan Ritata, Chief Financial Officer. I shall now hand over the call to the management for opening remarks. Over to you gentlemen.
Naveen Gupta — Chief Business Officer
Thank you Nitin. Good afternoon and thank you for joining us for the earning call. We hope you all got a chance to go to our investor presentation updated on the stock exchange. We will share key operating and financial highlights for the quarter ended June 30th, 2025. Q1 FYE 26 was a quarter of steady execution and strategic realignment for Gopal snacks amid a dynamic market environment While demand trend remained moderate, we delivered moderate performance supported by a focused product mix and operational efficiencies as well as we launched popcorn and wafer biscuit as a new product. In current quarter revenue from operations stood at 322.2 crore reflecting a sequential growth of 1.7%.
YoY revenue is down by 9% mainly due to supply chain issue which we are geared up to bring down and achieve top line as per our guidance despite the suspension of four operations at Rajput facility we tried minimal disruption in product availability and distribution. The Gondol unit continue play a key role as a replacement facility operated at over 60% utilization helping sustain supply. Our Modata and Nagpur plants perform steadily supported by a regionally structured supply chain model that enable further cost effectiveness and improved delivery timeline. The implementation of our distribution management system continues to enhance real time visibility and enable distributors to manage orders more efficiently.
We remain focused on deepening our market presence across key geographies. During the quarter new micro distributors were appointed under the superstructures model to strengthen our regional reach. This focused market approach continues to support improve accessibility and in underserved areas. Modasa facility is expected to start production by September 25. This will ensure faster and smoother execution of dealer order since the total basket requirement will be fulfilled from single unlike currently being addressed through multiple locations. We also stepped up our marketing and brand building effort during the quarter. Initiatives such as refreshed packaging design, improved in store branding and enhanced visibility across airports and public spaces are contributing to stronger brand recall.
Our growth presence across digital platforms and partnerships with E commerce and modern retail channels are already beginning to yield results. Looking ahead, our priorities remain centered on expanding the product portfolio, increasing customer reach and leveraging technology to drive improvements across manufacturing, distribution and marketing. With a strengthened distribution network, expanding manufacturing base and a committed team, we are well positioned to capture opportunities and reinforce our presence in the package snack segment. I will now request Mr. Vegan to provide a thoughts on financial performance during that process. I’ll keep it 11 only. I will not change it to 10 then.
Rigan Raithatha — Chief Financial officer
Thank you Navinji so Good afternoon everyone. Let me begin with the sharing of few key financial highlights for the quarter ended 30 June 2025. As we reflect on the quarter gone by, I am pleased to share the progress we have made and outlined our priorities as we move forward. During the quarter we reported the revenue from operations of 322.2 crores, while our top line showed sequential stability. Gross profit stood at 83.7 crores translating to a gross margin of 26% as compared to 29% in Q1FY25. The margins are lower mainly due to the custom duty which was levied by Government of India on palm oil in September 2024 and also due to lower revenue due to supply chain issues on account of fire which happened in December 2024.
However, we witnessed a sequential improvement in gross margins driven in part by softening of the key raw material prices as compared to Q4. This provided us partial relief to our cost structure helping to offset inflationary pressures from other inputs and supporting margin expansion during the quarter. EBITDA for the quarter stood at 15.2 crores resulting into EBITDA margin of 4.7% as compared to 11.5% in the corresponding quarter of the previous year. The decline was led by lower gross profitability and higher advertising and sales promotion expenses which increased by 1.3% of the revenue and impacted the EBITDA margin.
We also reported an exceptional profit exceptional profit of 0.2 crores during the quarter. This is pertaining to the scrap sale of the fire infected planted machinery. The insurance claim process is progressing well with the asset restatement and claim recognition expected to happen in due course. Despite this disruption, we ensured minimal impact on product availability and disruption Looking ahead, we remain confident in the business outlook for FY26. Our strategic priorities will center around expanding our product portfolio, enhancing customer reach and leveraging technologies to drive efficiencies across the value chain. With the Indian stack market continuing to we are focused on deepening our presence across both traditional and modern trade channels.
Supported by an experiencing leadership team, a strong distribution network and growing manufacturing facilities, we are well positioned to capitalize on emerging opportunities and create long term value for our stakeholders. Thank you. Over to you Nitin.
Questions and Answers:
operator
Thank you very much. We’ll now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchstone telephone. If you wish to remove yourself from the question queue you may press star and two participants are requested to use handsets while asking a question. Ladies and gentlemen, we’ll wait for a moment while the question queue assembles.
The first question is from the line of Nitin Gupta from MK Global Financial Services. Please go ahead.
Nitin Gupta
Thank you Nidhi. Thanks to the management for the intro. I just wanted to check around. Could you help us guide on Modasa plant commissioning dates and do you see any headwinds further for the commissioning or sort of a delay from September.
Naveen Gupta
As well as project team.
operator
But I request you to come. Your audio is a little distant. Can you come closer?
Naveen Gupta
Am I audible now?
operator
Yes sir.
Naveen Gupta
So these took confirmed you know update from our operations as well project team. According to them we will start trial production by mid September.
Nitin Gupta
Hello. Yeah, so like I’m just checking like if there would there be any, any sort of headwind. We see something like maybe early monsoon might have affected your civil work and that’s where like we might have seen a delay. But like I just want to check out on the any further delay possibility in the commissioning.
Naveen Gupta
Just reconfirmed with our project team. They are confident start the trial run by midsection.
Nitin Gupta
Okay so this is good. So I, I, my second question is around like given festive season is approaching so do you see any demand impact during this season because of sort of a delayed commissioning or you think that you will be able to address the demand because the commissioning is happening right at the same time.
Naveen Gupta
In our earlier commentaries as well we have stated that we don’t see any challenge in demand as such. We have been you know we have production capacities as well but this is disrupted supply chain you know cooled us down. So typically we have been stabilizing our this particular challenge as well. In last four months we have been you know doing 10 crores Delta over every preceding month. So Things are stabilizing and improving. We’ll be able to supply meet the needs of the market.
Nitin Gupta
Yeah, this is positive. My, my. So thanks for highlighting that monthly improvement in your run rate. My question was in terms of like the the entire festive season demand will be there. So I just wanted to check on like whether we’ll be able to address the demand. It is more of a supply related question not the demand related question.
Naveen Gupta
So in case we fall short of you know delivering from our Modata plant or bundle plant, we’ll take help of our Nagpur plant.
Nitin Gupta
Okay. Okay. And yeah and the last question is around like sequential gross margin recovery. If you can sort of throw some light in terms of the while yoy there is a drop or sort of a contraction in the gross margin. But sequential recovery if you can help us understand like what are the factors which has helped us sort of improve the gross margin.
Rigan Raithatha
Yeah sure. So sequentially yes our gross profit margin has increased by 6%. So that is primarily coming out of the 6%. Primarily it is coming 2% from the palm oil price which has reduced by 10% as compared to the Q4. Second is similarly we have seen the reduction in the price trend of packaging price material giving benefit of around 1%. Similarly channa which has reduced by 5% benefiting US 1% and potato. So this all sequentially helps us to have the 6% incremental gross profit margin as compared to Q4. Now answering to your second part of the question.
When we see Y on yes there is a 3% decline so as compared to 29% we have declared this 26% in the current quarter. So this is primarily coming because the custom duty was impact by the was implemented by government of India in September 24 and that remains part of the cost structure still in the current quarter also. So that is one of the main reason why there is a reduction in GP by 3%.
Nitin Gupta
Okay so like my last question is a follow up. This is that like do you think that this 300 will remain or like any effort we have in terms of like taking a price hike or waiting for the raw meter prices to eat. My basic question is like can by when we can get to the historical sort of a margin levels or can recoup this 3.3percent delta.
Rigan Raithatha
It will remain gradually because this will come majorly from the product mix and other profitability improvements which will come gradually because the custom duty remains part. So we cannot pass on the whole duty impact to the consumers so slowly gradually. Some of the things we have already passed on in the last year with swimming as a part of PNL in our current quarter also. But going forward this will be coming to your answering that when we’ll reach to the earlier levels it will happen gradually through the product mix and other profitability improvement plans.
Naveen Gupta
Nitin Bhai, to answer it differently, once we are able to roll out our marketing endeavor, we’ll be in a better position to take some more money from consumers pocket.
So going to little delay in plant commissioning. We delayed our marketing campaign rollout as well by two months. So definitely by quarter four we intend to take some more money from consumers pockets that will help us to improve margin.
Nitin Gupta
This is really helpful. Thanks a lot and all the very best.
Naveen Gupta
Thank you. Thank you.
operator
Thank you. The next question is from the line of Resham Mehta from Green Edge Wealth. Please go ahead.
Resha Mehta
Yeah. Good evening. So you know the first question is again on the plant. So is this Modasa plant expected to completely replace the lost capacity of the Rajkot plant which caught fire?
Rigan Raithatha
So it will. So what will happen? The Rajput facility will be split into two. So 60% will be replaced in the Modasa and 40% will be restated at the Rajput facility.
Resha Mehta
The same existing one where there was a. There was fire. Right?
Rigan Raithatha
Yeah. Yeah. But that will be replaced in two different places.
Resha Mehta
In two different locations. Okay. Okay. And then what happens to the Gondal unit?
Rigan Raithatha
Unit has been being operational because of as a temporary makeshift arrangement because of Rajput facility. And murals are taking little bit of more time. So over there, whatever machines are there or planted machinery portions are there that will be shifted to Rajput and Morassan.
Resha Mehta
And then we stop the operation that Gondar unit. Right?
Rigan Raithatha
Yeah. Correct.
Resha Mehta
Okay. Okay. So basically the. So 60% will move to the Modasa plant. Of the lost capacity of the Rajput plant which caught Fire and Balance 40% has already been moved to two different locations within Rajput itself. Right?
Rigan Raithatha
No. So that is. So see when the fire broke up we started is a makeshift arrangement at Gondan. So now as Modasa will become operational, the original capacity of the Rajpur 60% will be to Modasa and 40% will be restated at the Rajpur plant itself.
Resha Mehta
Yeah, but then is that 40% going to be operational from like mid September onwards just like the Modasa plant or is that going to take more time? So what I’m trying to understand is basically the path to sales recovery, does that start start happening October onwards? I mean assuming our plant plants, you know the full lost capacity comes on stream by September End.
Rigan Raithatha
No. So plant capacity is not a constraint for us. See, what is, what would happen is post September which we are seeing once the Modasa facility become operational or Gondal facility will continue to support the Rajkot facility will come up probably in Q3 and Q5 end of this financial year. So at that time bundle facility will be stopped and Rajput facility will commence. So it will be the replacement of the capacity which will happen.
Resha Mehta
Okay, but is it fair to assume that once the Modasa plant is fully operational. Right. Then we will have recouped the complete lost capacity because 60% comes from Modassa and the balance 40% for now the Gondal unit will, you know, supply. So all I’m trying to say is that then there are no supply chain disruptions or you know, capacity basically.
Rigan Raithatha
Oh, correct.
Resha Mehta
But from a margin perspective, would we be at a disadvantage? Would we continue to be at a disadvantage because the Rajput units would not be up and running and we continued with the 40% from Gunal. From a cost structure point standpoint.
Rigan Raithatha
No. So there will be no margin impact due to Modasa becoming operational. In fact there might be some benefit which might float over.
Resha Mehta
No, no. My question was not the margin impact because of Modasa, because Modasa we would have resumed by September end. Right. But because we are continuing at the temporary facility In Gondal, the 40% capacity, lost capacity. And while the Rajkot facilities. The Rajkot facility would still take time, maybe by the end of the financial year to come up. So hence do we see like inflated cost structures because we’ll be continuing with the temporary unit at Gondal or from a cost structure standpoint, we would not see elevated costs. And you know, the margin structure should kind of normalize.
Rigan Raithatha
The margin structure would have kind of normalized and we don’t see much of the impact because of the Gondal presser. It might be 0.2, 0.3%. Not much of that.
Resha Mehta
Got it. And the gross margin improvement that we saw sequentially which you addressed to the previous participant also. So that is largely only due to the raw material prices cooling off. Right. You elaborated on that. So it has got nothing to do with reduction in outsourcing. Right. Is that understanding? Right?
Rigan Raithatha
Yeah. So 1% has come up due to reduction of the outsourcing which was there in Q4.
Resha Mehta
So now there is no outsourcing.
Rigan Raithatha
No.
Resha Mehta
But we are still not manufacturing all the products that we used to. Right?
Rigan Raithatha
No, we are manufacturing all the products for outsourcing stock in Q4FY25 itself in the later almost last part of the Q4. So all the products which are currently being sold are all being produced in household.
Resha Mehta
Okay now because in the last call you had mentioned that you know, let’s say, you know there are some products which we are not out manufacturing because it’s not possible to outsource them from a maintaining quality standpoint. So I was referring to that.
Naveen Gupta
Basically I remember that point. So what reason by stating that whatever we are manufacturing are 100% in house only as on date. However what supposedly we were manufacturing 95 products pre paya. So currently we are manufacturing 90, 91 products in our facility. We are not manufacturing rings here, we are not manufacturing vanilla ball here. We are not manufacturing Sabudana Chivraya. So there are four, five products which we are not manufacturing in Gujarat because we cannot go for those products. We cannot go to the third party because of quality issues.
Resha Mehta
So I mean once the Modasa plant comes on stream then do we kind of start manufacturing those four, five products also?
Naveen Gupta
Very much.
Resha Mehta
Right. And just you know, last two questions. So basically on the insurance claim, so this quarter we were expecting to book some 4,5 crores of more loss. Any, any indication that you all can give, you know, with the talks that you all would be having with the insurance company that you know how much would be the claim that would coming in and you know how many, how much more losses do we need to book?
Rigan Raithatha
No. So see our insurance policies based on restatement of assets. So we don’t expect any further, any further provisioning in our profit and loss account and whatever was provided in Q4 that remains standstill and no further provisioning is expected in any future quarters. And yes our insurance claim is running well on progress and we are expecting to have positive results in probably in Q2 something.
Resha Mehta
Right. And lastly on the guidance, so you know we had guided for around 1800 crores of revenues, 800 crores in H1 and balance thousand crores in H2. So considering you know there’s a slight delay in the commissioning of the Mudasa plan. So do we still stick to that guidance, is that still achievable or would we like to revise that downwards? And a related question is that you know the gross margins at 26% basis, you know your outlook of the raw material prices, do you think at least 26% gross margin is sustainable? And from there on once we move to you know, our own manufacturing at Modasa, the EBITDA margins would also you know, kind of start inching up.
Naveen Gupta
Let me Answer on the guidance thing first, we had stated that we will be giving 20% growth on annualized basis. So that translates into 1750 crores roughly and rest 50 crores. We said that we’ll figure out from where we will deliver. So we were giving a guidance of 1800 crores. Right?
Resha Mehta
Right.
Naveen Gupta
We stand by our original guidance of 1750 crore. We have yet to figure where to bring that 50 crores from because we were contemplating certain revenue either from some sort of joint venture or some export opportunity or some sort of third party manufacturing, some opportunity kind of thing. So. We are still confident that we deliver 20% growth on annualized.
Resha Mehta
Got it. So 1750 crores is still something that is doable for us. Right. And I’m assuming H1,800 crores may something that, you know, we may probably be missing because of the delay in commission of the plant. Would that be a fair assessment?
Naveen Gupta
Right. So we’ll try to cover those 2530 crores in Q3 and Q4.
Resha Mehta
Right. And on the margins front, the both the gross margin 26% from here on, how do we see that shaping up and also how do we see the EBITDA margin moving up once we, you know, have the Modasa plant fully running?
Rigan Raithatha
Yes. So gross margin, at least for the coming quarter, that is Q2 we are expecting to remain somewhere in the same range plus minus 1%. And commodity prices currently are also almost in the same range as they were in the average for Q1. So we are expecting H1 to have the good margins as we have in Q1 and, and for the full financial year there might be. Yes, going forward as the crop season would end or over the crop, whatever we have complete. So Q3 might have some dip, but for the full year we are very hopeful that we should be having higher gross margins as compared to the last financial year.
And yes, coming to second part of your question, EBITData, yes, we would see the improvement as compared to Q1 in Q2 and Q3 since our MODASA facility would become operational in Q3 and we should be seeing the higher sales coming from the Modasa facility in Q3 and Q4. We should be going in upward trajectory as far as EBITDA margins are concerned.
Resha Mehta
So Q4 exit EBITDA margins. Can we see that in double digits.
Rigan Raithatha
Double digit means it would be, I. Don’T know,
Resha Mehta
like around 10% exit exit margin, Q4 exit margin.
Rigan Raithatha
Exit mean. You mean to say full year?
Resha Mehta
No, no, not full year, just the Q4, Q4 EBITDA margins. Because our New Modasa facility would have stabilized by then Q4 EBITDA margins to be at around 10%.
Rigan Raithatha
It would be I would say near to double digits. Slightly between single to near to double digit, somewhere in middle.
Resha Mehta
Got it. Thank you so much for answering all the questions and all the best. I do have more questions. I’ll join back the queue.
Rigan Raithatha
Thank you.
operator
Thank you. The next question is from the line of Bhu Minha from Samiksha Capital. Please go ahead.
Bhumin Shah
Hi, good evening. My first question is on. On a QFC basis, value and volume both have been stagnant. Yeah.
Naveen Gupta
Yeah. The problem was with clarity of voice.
Bhumin Shah
Yeah. So my first question is on the wafer segment on a sequential basis. Its value and volume both have been stagnant. So if you look at other products, Garcia Namkin which has grown in terms. Of volume on sequential basis. But wafer has not grown. So what is the reason behind that?
Naveen Gupta
Wafer always a push product for us. Booming by. So we purposely took a call that we were earlier selling at a deeper discount vis market leader. And we purposely took a call that we will increase our realization from vapor. We increased our selling price almost. We can say that we reduced our trade marketing support almost by 5% in vapor. So that brought vapor little down. But recently we released a consumer offer on wafer category. So vapor should come back. Vapor number should come back.
Bhumin Shah
So should it come back to around 20% growth or more than that?
Naveen Gupta
Yeah. Wafer number will grow by 20% because of two reasons. One is consumer offer which we just released last week itself. And second is before we go full with our, you know, marketing campaign, I will start some print campaign before that. We just released good print campaign in Maharashtra last week. So we got good response. So we are expecting delta from that sector.
Bhumin Shah
Okay. And second question is on some, we have lost some dealers or distributors in specifically MP and UP. And our Nagpur capacity utilization is also on the lower side. So is it because of the failing rate issue or something like. Yes. Can you hear me now? Hello, you are audible now. Yeah. So my second question is we have lost some distributors on a sequential basis in NP and UP and our Nagpur facilities operating at around 10 11% capacity. So are we facing any challenge over there also in terms of filling rate or something else is happening over there.
Rigan Raithatha
So from Nagpur facility we are facing challenges only in wafers category because we had constraint in wafer category in Nagpur. So every month we are sending roughly 25 containers from Modasa to Chisgarh and even up to central Maharashtra. And Eastern part of Maharashtra. So we are not facing any challenges from Nakpur facility assets in Tilray other than wafers category in terms of numbers of dealers. So we converted almost 65 direct distributors in parts of Rajasthan MMR as well in Gujarat. To manage this supply chain issue. The total number of dealers we purposely, you know, stop increasing number of distributors.
However, we have restarted that exercise from last month. We are expecting that at least we’ll be able to add 60, 70 distributors by end of December. Most of those distributors will be surrounding Nagpur facility only.
Bhumin Shah
Okay. And on a lower capacity utilization like Nagpur is operating is around 11 12%. So any comments on that.
Naveen Gupta
As well? That will gradually improve as we start more and more.
Bhumin Shah
Hello.
Naveen Gupta
Hello.
Bhumin Shah
Yeah. Yeah. Those are the questions from myself. Thank you.
operator
Sorry to interrupt but we cannot hear you clearly.
Naveen Gupta
Yeah. Are you able to hear us now properly?
operator
Yes, sir. I request you to come a bit closer to the device. Okay, sir. Mr. Bowman, does that answer your question?
Bhumin Shah
Yes. Yes. Thank you.
operator
Okay. Thank you. The next question is from the line of Dharmil Shah from Dalmas Capital Management. Please go ahead.
Dharmil Shah
Hi. Thank you for the opportunity. So Narendra, first question is on the production. If we look at the category wise capacities, those seems to be enough for even accommodate refire demand what we were manufacturing. So what really is the issue in overall supply chain Production seems to be fine. Is there any issue in distribution or. This is more like a demand issue that we are facing.
Naveen Gupta
Typically when we talk about supply chain challenges our distributor expectation is to fulfill his needs. His product basket need from one single location. Largely before fire incident we were just manufacturing vapor only from Modata facility. And rest everything was you know, manufactured in Rajpur. And for vapor distribution what typically we used to do, we used to bring vapor from Modasa to Rajpur and give you know, full product basket from one single location to the distributor. Right now there are space constraints in Morata as well in Gondal. So when we give a distributor half load of truck.
Typically when he puts you know, five lakh rupees. So we have to give two and a half lakh stocks from Madhasa and two and a half lakh stocks from Bundal. Because right now we are manufacturing prime that Madhasa plant. So clubbing that becomes a challenge in the process. Typically what happens when a distributor runs out of Stock say for 8, 10 SKUs 12. Then he starts thinking of placing the order. In the whole process there are missed, missed business opportunity to the tune of 8 to 10%. Earlier replenishment was one place only. So his replenishment was getting faster. This product basket is huge.
Dharmil Shah
So go on sir.
Naveen Gupta
Yeah.
Dharmil Shah
Sorry.
Naveen Gupta
Yeah. So we typically have now space constraints. So we can. And. And Quantum is larger. So we cannot do like that. We. We put. We bring all the stocks from Madha to Gondal or Gondal to Madhasa and then give them club stocks. So eventually in percentage term Rajasthan is the biggest sufferer. Rajasthan. Our run rate had crossed 4 crores last year. Now [Foreign Speech] reason.
Dharmil Shah
And also if you can quantify. Suppose if you were to replenish distributors demand within few days. How longer does it take now?
Naveen Gupta
But. Or Unka fill rate be 95% with even 92 to 95% used to be 100% unparalleled in the industry. But the challenge is ABI distributor [Foreign Speech] is ready.
Dharmil Shah
Got it. Got it. And during the quarter did we take any price increase or grammar reduction?
Naveen Gupta
No, no. We didn’t take any price hike. Or.
Dharmil Shah
And finally on the guidance if you were to. I mean look at the same guidance around 1750, 1800 crores of revenue. So for the remaining nine months you’ll still need to grow by 33% or 500 crores quarterly run rate. This will be still possible.
Naveen Gupta
Or if we understand that. So in the coming quarter. I mean in the current quarter we are aiming for 405 crores kind of number and rest two. I mean H2. We are. We earlier had aimed for 1000 crores. So we will stretch our best to make it. I mean 10, 20 crores.
Dharmil Shah
Okay. Thank you so much.
Naveen Gupta
Thank you.
operator
Thank you. The next question is from the line of Srinara and Mishra from Baroda BNP Paribas mutual fund. Please go ahead.
Shrinarayan Mishra
Hi. Hello. Can you hear me?
Naveen Gupta
Yes.
Shrinarayan Mishra
The first question was on this. I was referring to your slide number 20 in the presentation. So across segments in the volume growth can you highlight how much of the degrowth is attributable to the plants being not operational? So for example if your nkin is down 16% how much of that is due to plant not being operational? So can you give that breakup segment by.
Naveen Gupta
Just a moment. So Narayan bhai, we have lost 7% in G. Right. We have lost 10% in G. So we can say Gatia may roughly 2 to 3% is just 2 to 3% is owing to this thing, the supply chain constraint. However it is up to 10% because we shifted partially. Then we brought back to Madasa. Then partially we brought back to [Foreign Speech] near business water may be a chart we can state 50 60% is owing to this thing supply chain and rest we can say market share.
Shrinarayan Mishra
Okay. Okay. And see there is a very wide gap between your volume and value. Can you highlight. Have you stopped? I mean low ticket size packets. Is. Is it because of that?
Naveen Gupta
Yeah, I just stated few minutes. [Foreign Speech] Ten. Rupees et cetera But. [Foreign Speech]
operator
Sorry to interrupt but your voice is breaking.
Naveen Gupta
Hello. Am I audible now? Better. Yes. Typically last year we used to sell our papers to a retailer at deep discounting versus market leader by whopping 15%. Now standard selling prices at par with the competition at par with the market leader. However we give 5% trade load on a weighted average basis. This is why revenue degrowth is lesser than volume.
Shrinarayan Mishra
And so you’re so referring to your slide 22 of the presentation. So most of the key raw materials are now back to the price level of quarter 1 25. So except for this palm oil. So how is the competition behaving? Are you seeing any pricing action or you know distribution margin action that the competition is doing which you also are you know forecasting to take in next quarter, next couple of quarters.
Rigan Raithatha
So. Rightly say everything raw material prices have cooled off and in current quarter as we stated earlier we haven’t any changes in the grammage of the prices and currently we are not seeing any immediately changes in this pattern the things at least in this quarter to continue.
Shrinarayan Mishra
Okay, okay. And the competition is also not taking any action, right?
Naveen Gupta
No. Till now we have. We haven’t. Yeah. Competition market leader in Gujarat B just blinked and they reduced granite from 25 to 22. He already was selling at 22.
Shrinarayan Mishra
Okay, okay.
Naveen Gupta
Last week only and good news. No.
Shrinarayan Mishra
Got it. Got it. And even in declining RM prices you are doing the so. Yeah. So your finance cost is of course a natural digits lower. But why that has gone up on yor and QOQ basis. So what is the current debt?
Rigan Raithatha
See as far as our debt portfolio is concerned it is majority the cash credit facilities which we are having that is working capital. So the major reason is the two reasons which are there. One is our insurance. We have spent the amount in our plant and machine owned account. However we are yet to receive on account payment from the insurance company. And secondly also there has been some increase in our the quantity of stock which we are holding as compared to the last few one in form of Chennai and potato viable to hold those things.
Because as we are targeting to increase our sales for the full financial year it makes commercially viable decision to hold those so that our raw material continues supply.
Shrinarayan Mishra
Okay, so what is current debt level? At the end of Q1.
Nitin Gupta
It would be around 100.
Shrinarayan Mishra
Okay. And sir, you are guided in last earnings call that you expect 30 crore capex this year. So of that have you incurred anything in this quarter?
Rigan Raithatha
Yes, so we have guided 30 crores or we would be 30 to 35 crores. Odd. We would be spending on our Modasa facility. So out of that we have spent almost around 15 to 17 crores in this quarter.
Shrinarayan Mishra
Sorry, 15 to 17. Okay. Okay. So does this mean that that level will again go up in next quarter as you operationalize the Plan fully by.
Rigan Raithatha
1520 crore also we are also expecting to receive some on account payment from the insurance, some stock also getting liquid because we had majorly built up in the month of March that also sales into our.
Shrinarayan Mishra
Okay, okay. And on the receivable side there is nothing meaningful right. On the modern trade portfolio.
Naveen Gupta
Yeah. So coming to modern trade and e commerce narrative. First on e commerce platform last year we did four and a half course from e commerce platform. This year in Q1 itself we have done two and a half course from e commerce platform.
Shrinarayan Mishra
Okay.
Naveen Gupta
As far as modern trading systems there are two large accounts of modern trade. One is you know Reliance which is a direct customer to us. The answer is typically we cater through distributor only. It’s not a direct customer to us. Dmart numbers have grown by 100% in Q1 because we were not selling in MMR dmart last year b1 now we have 5 MMR dmart as well as in Gujarat.
operator
Sorry to interrupt. Yeah, sorry to interrupt but your voice is not clear. I’ll disconnect your lines and connect you again. Okay. Ladies and gentlemen, the line for the management has been reconnected. Please go ahead sir.
Naveen Gupta
Yeah, so I was stating that last year Q1 we had clocked. Sorry. Last year full year we had clocked 4 and 4 and a half crore revenue from E4 platform. This year Q1 itself is 2 and a half crore. As far as modern trade concerned, there is only one direct customer to us as of now which is Reliance. Reliance numbers are stagnant and Dmart and other regional chains are distributor only. But there is growth as well because number of SKU listed has gone up.
Shrinarayan Mishra
Okay. Okay. So. So you are not curtailing the supplies in modern trade because of this supply chain disruption, right? You are fulfilling the full demand whatever you have from modern trade.
Naveen Gupta
E commerce. Yes. That was not because of. Am I audible now?
Shrinarayan Mishra
Yes sir.
Naveen Gupta
Am I Audible now.
operator
Yes, sir.
Naveen Gupta
So bill rates in E commerce were much lower than general trade deal rates. Reason was not production capacity constraints or supply chain. Typically when we get order of E commerce platforms There are MOQ issues. Their order comes in, you know, 106 patterns, 92 cartons, 55 cartons. It becomes challenging for us to supply those smaller quantities. However, we have started tying up with courier companies and transporters to fulfill their needs and manage the fill rates.
Shrinarayan Mishra
Okay, sir. Okay.
Naveen Gupta
Distributors, those are either half truckloads or full truckloads. So our ecosystem support that kind of supply chain. E commerce, E commerce are typically on distribution center model, DC model. Their quantities, their volumes are generally much lesser than half truckload. That became a challenge for us. But those are initial hiccups for us. Our run rate is you can say 200% better than last year. Okay.
Shrinarayan Mishra
Okay. At modern rate you are not facing any challenges. Right?
Naveen Gupta
So that is direct customer is concerned. We are confined to reliance only. We just started Patel retail Martin MMR and we are in. We added another. In fact we added another direct modern direct customer. That is Banpal supermarket in Baroda. They have got 10 outlets and we are in very advanced stage of negotiation with Shubham Kmart which is based regional chain having 27 stores.
Shrinarayan Mishra
Okay. And as you tie up with more and more modern trade partners your receivable profile has remained the same or it. Has interacted bit paid receivables
Naveen Gupta
file remains aligned to general paid margin. Earlier when we were giving stocks to, you know, E commerce players which were not quick commerce which were like Amazon, those were loss making. We stopped supplying stock to them. And now whatever business we do with E commerce platforms we make our profits aligned to general table. Okay.
Shrinarayan Mishra
Okay. Okay. Fine. Thank you sir. Those are my questions.
Naveen Gupta
Thank you.
operator
Thank you. The next question is from the line of Daria Kamdar from Kayon Tech. Please go ahead.
Unidentified Participant
Yeah. Hello sir, my question is that what. Is the prospect for the upcoming two. Years in terms of sales and growth. And also in terms of new product introduction and diversification to cater the global market as well as the Pan India market.
Rigan Raithatha
Hello Mr. Calm down. Let me answer your first question. As far as prospects for next three years is concerned, we as a food company aspire and aim to clock 20% tether every year. This year H1 looks challenging because of our, you know, supply chain issues which we already explained. From next year onward we aim and aspire for 20% either. Now coming to the second question that global footprint and product portfolio. We are aiming to reduce our dependency on Palm Oil based products in percentage terms.
In the previous quarter we introduced two products. One is popcorn and another is vapor biscuit. Both the products are non palm oil based products. So that was you already thought over. We are working on certain products which belongs to bakery category which will be non farm oil based products. As far as global footprint is concerned, we don’t wish and aspire to go direct to international market. Rather we are trying to explore through some third party which already has some international footprint. So that has yet to be explored because first of all we, our first priority is to protect our existing business domestically.
Unidentified Participant
Okay? Okay. Okay. Okay. Thank you so much, sir.
Naveen Gupta
Thank you, Mr. Kamda.
operator
Thank you. The next question is from the line of Natic from NV Alpha Fund. Please go ahead.
Unidentified Participant
Hi sir. So my question is, you know you mentioned about distributors sort of not placing orders as frequently as they used to do. So just trying to understand if they place order from two different facilities or if we have to supply from two different facilities, does that affect the price they pay or the margins that we give to them or how does it exactly impact.
Naveen Gupta
It doesn’t impact either their margins and it impacts our margin on weighted average basis to that, you know, 0.2% as on date. Right. As far as their price.
Unidentified Participant
Their pricing does not get impacted. Then how and why does it matter to them that you know, it is coming from one facility or two different locations and two different facilities. I mean they are getting it at same price. So how does it affect them?
Naveen Gupta
Yeah, so it’s about, you know, all the distributor have typically down size. If we say that we’ll give you truckload from Gondal. So even if he require for example 400 boxes from Gondal, so we have to give him 600 boxes from Gondal so that becomes at cost of items which he requires from Modata. Because there are go down sizes constraints, there is working capital constraints and then typically lead time constraint. So distributor expects and wants the entire product basket to be catered from one place at one goal.
Unidentified Participant
Okay, got it. So the second question I just wanted to Clarify. You know, 50% of the drop in revenue is attributable to supply chain. 50% is to sort of losing market share due to not being present in the market for because of the fire. Is that correct?
Naveen Gupta
Right.
Unidentified Participant
Right. So our next question is, you know, why are we not dealing with Dima directly and via distributor.
Naveen Gupta
Typically works in that business model only. Dmart also has got their bc. But there is a cost benefit mechanism. Whatever items have very less transportation cost Those items only Dmart buys from buys at DC level. Otherwise all the FMC brand like us, they take store supplies only because it saves their cost.
Unidentified Participant
Okay. So they take supply directly from related to stores instead of taking it collectively.
Naveen Gupta
Yeah. For example Mumbai has got more than 5560 stores of demand. Right. And BMA massive volume in case they start taking stocks at BC. So I mean their business model will go for a 6.
Unidentified Participant
Got it. And so you mentioned H2. We should be around say th.000 odd cross and H1 would be short of say 800 that we had guided. Right? Yeah, got it. So that would be say 700, 750 around that or it would be lesser.
Naveen Gupta
Sorry, come again.
Unidentified Participant
H1 would be 700, 750 odd or would be lesser than that also.
Naveen Gupta
Close. To 730, 740 crores. And we will try to make up 20 crores in H2.
Unidentified Participant
That’s it from. Okay, thank you. Thank you.
operator
Thank you. The next question is from the line of ration Mehta from Green Lwelt. Please go ahead.
Resha Mehta
Yeah, thank you for the follow up. So this basically the supply chain issue Naveenji that you know you described. Right. So that get solved once the Modasa and the Rajput facilities come up. Right. Is that the right assumption or would we still be facing you know, some supply chain issues?
Naveen Gupta
No, no, no. That would be mitigated. As of today that business loss is to the tune of 8 to 10%. That will come down to the tune of 1 to 2% only. Largely it will. Mostly it will be.
Resha Mehta
Got it. And what happens to our depreciation costs? So currently the run rate is 8 crores. Once the Modasa plant, you know begins trial runs and come up to. Comes up to its full capacity and even the rajput plants by Q4 what will the depreciation run rate look like?
Rigan Raithatha
So yes, depreciation is likely to increase by probably another. So as compared to our current 8 crore kind of a run rate it should increase by around a crore or so by every quarter.
Resha Mehta
Okay, so 9, 10 crores per quarter is what we can assume, right?
Rigan Raithatha
Yeah.
Resha Mehta
9 crores. Yeah. And capex basically you said 30, 35 crores is for the Modasa plant. But what about the other Rajput plant which will you know fill in 40% capacity of the plant which caught fire. We don’t need Capex for that.
Rigan Raithatha
No, we would need Capex. But that Capex would largely be funded from the insurance. Once we complete that Capex.
Resha Mehta
But what is the Capex amount that we are Looking at for the Rajput plant.
Rigan Raithatha
So that would be to the tune of around 15 crores. 15 to 20.
Resha Mehta
Understood. And you know Gujarat basically we had this plan to double the salesman on distributors payroll. So one have we rolled that out and if yes then are we seeing any tangible benefits because of the bi weekly servicing.
Naveen Gupta
That’s a question I was expecting. And I can share those numbers. Just give me a moment. So by in the month of April we were giving bi weekly services to 7% outlet in Gujarat. And by end of July we have given bi weekly services to 14% outlets in Gujarat. Are number one. Number two is. Just a moment. Just give me a second. We are measuring you know in various ways like man days. Man days. How many man days of distributor sell salesmen were spent. So in the month Of May total 42,865 man days were spent by distributor salesmen.
And in the month of July 47,244 mandates were spent. Spent by distributor salesman. That is the progress.
Resha Mehta
Are we seeing any tangible benefits or is it. It’s hard to put a number to that right now because of the disturbances that we are seeing in terms of a supply chain. And hence you know the 8 to 10% business that we are losing in Gujarat so not really seeing any tangible benefits of this 14%. Sorry. Of this bi weekly servicing that trying to do.
Naveen Gupta
We are seeing tangible benefit. Rishaji. May numbers were 10 crores plus over April. June numbers were 10 crores plus over. May. And subsequently our run rate is aligned to that much of Delta.
Resha Mehta
So we are able to track these specific outlets where we have rolled this out. And hence we are seeing the benefits. We’re able to track the benefits basically.
Naveen Gupta
On live basis.
Resha Mehta
Got it. Got it.
Naveen Gupta
We don’t need thinking that that is visible to us on live basis. And not only to us even to our distributors. That is visible on live.
Resha Mehta
Understood. And just lastly on the international business what is the thought process in you know terms of preferring a strategic partnership versus let’s say going direct.
Naveen Gupta
Right now we do not have ecosystem to you know explore international businesses our focus. I would have explored international business on direct basis as well if this accident would not have happened. But now my thought process is that we should not put our energies money on exploring international markets directly. Rather we should go to third party. Either it could be some export house or some already some. There is some brand who has got you know reasonable international footprint. So we like to do a co venture with them.
Resha Mehta
Understood. That’s it from me. Thank you. So much. And all the best.
Naveen Gupta
Thank you.
operator
Thank you, ladies and gentlemen. We’ll take this as a last question for today and now hand the conference over to the management for closing comments.
Naveen Gupta
Yeah. Thank you, everyone. So I would like to thank everyone for joining this call. And I hope me and Navinji were able to answer and respond to all the questions adequately. For any further information, we request you to please get in touch with our investor relationship. Stay safe, stay healthy. And thank you once again for joining us.
operator
Thank you. On behalf of MK Global Financial Services limited That concludes this conference. Thank you for joining us. And you may now disconnect your lines.
Rigan Raithatha
Thank you, Nidhi. Thank you, mk. Thank you, everyone.