LT Foods Ltd (NSE: LTFOODS) Q4 2025 Earnings Call dated May. 15, 2025
Corporate Participants:
Monika Jaggia — Company Secretary
Sachin Gupta — Chief Financial Officer
Ashwani Arora — Chief Executive Officer
Analysts:
Meet Jain — Analyst
Resham Jain — Analyst
Pradyumna Choudhary — Analyst
Harsh Shah — Analyst
Abhilash Bhandari — Analyst
Damodaran Kutty — Analyst
Amit Doshi — Analyst
Devesh Kasliwal — Analyst
Vipulkumar Shah — Analyst
Lavita Lasrado — Analyst
Tom James — Analyst
Hitesh Goel — Analyst
Nandita Rajhansa — Analyst
Presentation:
Operator
Ladies and gentlemen, good day and welcome to LT Foods Limited Q4NFY 25 earnings conference call hosted by Motilal Usual 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. Conclude. Should you need assistance during the conference call, please signal an operator by pressing Star then zero on your touchtone phone. Please note that this conference is being recorded.
I now hand the conference over to Mr. Meer Jain from Motilal Oswal Financial Services. Thank you. And over to you sir.
Meet Jain — Analyst
Hi. Thank you. Good afternoon everyone and a very warm welcome to the LT Foods 4QFY25 post. Results earning Call Posted by Mujar Aswal Financial Services Ltd. On the call today we have the management team being represented by Mr. Ashwini Kumar Arora, MD and CEO Mr. Sachin Gupta CFO Ms. Monica Chawla Chagya, Chief Corporate Development Officer. We will begin the call with key thoughts from the management team. Thereafter we will open the floor for Q and A session. I would now like to request the management to share their perspective on the performance of the company.
Thank you. And over to you Ma’ am.
Monika Jaggia — Company Secretary
Thank you, Meer. Good afternoon everyone and thank you for joining us on our Q4 and financial year 25 earnings conference call. Before we start with the key highlights of the quarter and year ended 31st March 2025, I would like to highlight the certain statements made or discussed on the conference call today are forward looking and a disclaimer to this effect has been included in the results presentation shared with you. Earlier result documents are available on company’s website and have also been uploaded on the Stock Exchange. A transcript of this call will also be made available on the Investor section of the Company’s website.
We at LT Foods have built a strong brand by focusing on quality and smart growth. Being a global consumer food company, we put great effort into making better products and ensuring the finest quality which help consumers trust us. By expanding globally and building a portfolio of very strong brands, we have become a top choice of many consumers.
Our marquee brands Dhawat and Royal are now well known for high quality Basmati rice in homes across the world. This has helped us gain significant market shares in India and international markets like the us, Europe and the Middle East. India. We keep investing in sustainable practices, control our entire value supply chain and continue to further strengthen our global distribution network. We have significantly expanded our product portfolio to meet the evolving consumer needs.
We launched our RTH and RTC meal options, healthy snacks, organic foods and ingredients and health focused rice varieties that cater to the modern dietary preferences. Over the past year we have undertaken major expansion projects in UK and entered into high potential market I.e. saudi Arabia.
We ended the year with a strong quarter delivering the top line growth of 8% in Q4 financial year 25 wherein our revenue reached to rupees 2260 crore from 2092 crores. This was because of increased sale from our core segment that Basmati and speciality rice as well as the organic food and ingredients segment gross profit grew by 20% and the gross profit margin is 370 pips higher that is 32.9% to 36.6% which is attributable to the favorable input prices.
EBITDA for Q4 was up by 11% year on a year basis at Rupees 290 crores and EBITDA margin stood at 12.8%. PBT is up by 6% from 204 crore last year to 216 crores in Q4 financial year 25 pad for the quarter increased by 7% to 161 crores compared to 150 crores in the previous year. EPS is higher by 8% at 4.62 versus 4.28 in Q4 financial year 24. Cash profit for the quarter was higher by 9% that is 213 crores.
Now coming to our annual performance, our Consolidated revenue for the fiscal year financial year 25 increased by 12% to 8,770 crores versus 7,822 crores in financial year 24. This is because of the increased sales across all the segments. Gross profit stood at 3,000 30 crores. And the gross profit margins expanded by 200bps from 32.5% to 34.5%. EBITDA increased by 8% to 1067 crores compared to 988 crores last year.
EBITDA margin was at 12.2% that is marginally lower by 40bps. The profit after tax is higher by 2%. That is 612 crores versus 598 crores last year. The earning per share is at 17.43 which is up by 2%. And the cash profit increased by 6% to 797 crores versus 750 crores last year. Moving on to the key ratios of our balance sheet. The return on the capital employed stood at 21% in financial year 25 compared to 21.7% in financial year 24. Return on equity stood at 16.8% for financial year 25 compared to 19.2 in financial year 24. The net debt to equity ratio is at 0.2 in financial year 25 versus 0.1 in financial year 24. And the net debt to EBITDA ratio is 0.6 in financial year 25 compared to 0.5 in financial year 24. The current ratio 1.9 is there in the financial year 25. Our net working capital day stands at 196 days in financial year versus 188 days in financial year 24.
Now I think we can open the floor for the question answers please.
Questions and Answers:
Operator
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touch tone 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 will wait for a moment while the question queue assembles. We have a first question from line of Resham Jain from DSP Asset Managers. Please go ahead.
Resham Jain
Yeah. Hi, good evening. So I have two questions. First one is with respect to the gross margins. If I look at full year, your gross margin has seen good improvement. Almost 33.9%. 180 basis point improvement and most of it has been visible in quarter four almost 300 basis point plus increase in gross margins. But when we look at EBITDA margin, it has not actually flown through to EBITDA just 30 basis point increase. So if you can help in explaining is there like last time you mentioned about higher shipping cost and things like that. Is there anything which is sitting in other expenses and not helping the overall improvement in EBITDA margin?
Sachin Gupta
Evening Resham. You know to your question, you know the. On the, you know, on the logistic cost we have, you know lost 1.7% and then we have done the advertising. So I think point 4% went there and then there is a, you know, as you know in the UK we have capitalized the facility. So admin cost has gone up. So this is broadly, you know, the breakup of, you know, where the gross margin has gone.
Resham Jain
Okay. Anything of yes sir, this is very clear. Is any like these three factors which you mentioned, any of the three factors, are you seeing any reversal in FY26?
Sachin Gupta
So logistic cost. Yes. You know, it has come to normal. Advertising will be this year more because we have, you know, this year heavy spent on the consumer side. So advertising will increase more but logistic cost will come to the normal.
Resham Jain
Understood. So maybe we can maintain or slightly improve margins in FY26. Possibly. Is that how one should read it?
Sachin Gupta
Yeah, that’s what we are expecting.
Resham Jain
Okay, understood. And so the second question is with respect to the acquisition I think which you have done, Global Green Group. If you can just give some color on the overall transaction and how can it help?
Sachin Gupta
Yeah, it’s a canned food business, roughly 40 million. It has a good synergy. I think the detail we will you know like to open on when definite agreement is signed. So. But you know, it’s a, it’s a good opportunity came to us and we will tell more about once this definitive agreement is signed. But good synergies in that. It’s a proposed query. Today in the board meeting we have proposed to query.
Resham Jain
Understood. Okay, I’ll come back in the queue. Thanks.
Sachin Gupta
Sure.
Operator
Thank you. We have our next question from the lineup. Pradyumna Chaudhary from JM Financial family office. Please go ahead.
Pradyumna Choudhary
Yeah, hi. Thanks for the opportunity. First, I just wanted to understand regarding operational. Two operational data points. One is why Europe has been so slow for US 2% growth in Q4, that’s 1. And second is what would be the freight cost as percentage of revenue for Q4? I have more questions after this.
Ashwani Arora
So the freight cost as a revenue to sales, if you talk about the full year, it is 6.5% of my revenue.
Pradyumna Choudhary
Okay. No, for Q4.
Ashwani Arora
For the Q4 it is 5.8%.
Pradyumna Choudhary
Why has 5.3%? You said
Ashwani Arora
5.8.
Pradyumna Choudhary
5.8. Okay. And why has Europe been so slow for us?
Ashwani Arora
So Europe is not slow actually what has happened in the Europe there were two entities, Europe and uk. So there are two separate entities. Now the UK operations are being looked by the UK operations as such. So now previously the Europe and UK were getting merged and consolidated. So that’s the reason. Otherwise it has also grown as per the. As per the market.
Pradyumna Choudhary
Consolidated we have.
Ashwani Arora
Yes, consolidated we have grown.
Pradyumna Choudhary
Yeah. All right. And another couple of questions. One is what is the likely impact of if there is any tariff, whatever tariffs get finalized by the US on India. And that’s one. And the impact of if suppose there’s some sort of a recession in US given, given the kind of, we are in more of a consumer statement kind of a category. So would it really impact us usually in the past what sort of a behavior we’ve seen in us? That’s number one. And second. Okay, I’ll. After this I’ll ask my last question.
Ashwani Arora
No, no, you wanted to ask second question or should I answer your first question?
Pradyumna Choudhary
Maybe you can just take this up. And then
Ashwani Arora
As far as, as far as the US you know, trend. So there is no impact on the recession. Rather, you know, even, you know, in April, you know, we are seeing the good signs. So there is no impact on demand, so we will grow. And second thing is your question about the duty impact, you know, so there will be no duty impact. As you know, it has been compensated by our, you know, this year we had a lower material cost. So rather, you know, we will improve the margin this year.
Pradyumna Choudhary
Like I was trying to understand more from a past behavior point of view. In the past also, whenever US has gone into recession, what sort of customer behavior change we’ve seen, do they tend to downtrade, do they tend to go for cheaper brands?
Ashwani Arora
So what we have seen in history, you know, we have seen two, three times. We acquired this business in 2008, you know, and there was a recession, you know, in 2009, 10. But you know, what we have seen in all the times, even in Covid time and all the time when the recession comes, the home consumption goes up in America, especially in the food side. So historically this has happened. We have not seen any negative on the consumption side.
Pradyumna Choudhary
All right. And one question was how are we really positioned in the US market? Like are we amongst the lowest price players there? Because like from a simple exercise I did, I just went to Amazon.com and I searched for Basmati rice on some random US address and from whatever options seem to be available, Royal brand seem to be among the lowest priced ones. So that’s how we position ourselves. If you can just help with that.
Ashwani Arora
So Royal hold more than 55% market share. We are number one selling brand, both in mainstream as well as in ethnic channel. Regarding price point, you know there are two price point available, you know and you know, and you know the royal is on the price point you have seen. So there are, you know, other price point but which sells only very slow. It’s only total category roughly percent. And in that price point we have a dawat, we have position there and it’s also doing very well.
Pradyumna Choudhary
Okay, so but that understanding is correct, right? That we are amongst the lower priced in the US market.
Ashwani Arora
There are two price point only not lower. So there are two price points and we are in the range of that price point which is roughly, you know, $20, 20 LPS. Yeah. And sometimes it happens there might be certain schemes that might be running it in order to. There are certain times the platforms runs its own schemes that why that might be the thing at your time when you might be seeing the price, it might be lower. Otherwise we are priced, we are priced at a premium itself in the most of the markets.
Pradyumna Choudhary
All right, thank you.
Ashwani Arora
Thank you.
Operator
Thank you. We have a next question from Lionel Har Shah from Bandhan amc. Please go ahead.
Harsh Shah
Hi sir, Good evening. I just have two questions. First is, I’ll just clarify on the last question we mentioned that in case of any tariffs you will not be taking any price increase. It will be subun by the lower RM price. Right. So as I said, you know it has been complete. Currently they have, currently they have 10% base tariff that remains basically we will not take any price hike and you will be more than offset by the lower RM prices.
Ashwani Arora
That’s right. You know, it is offset by the lower RM cost.
Harsh Shah
Got it. And secondly when we look at the standard number, flat standard growth revenue number this quarter so that basically 8% India revenue growth is offset by lower price, lower pricing.
Ashwani Arora
So yes, you are right. What in India our last, if you look at the previous numbers as well now our third quarter in India is highest because there are certain, certain in the west we have a Bhati scheme and other schemes that goes on. That’s why in the fourth third quarter generally in India it is the highest. So that’s why you are seeing that in India itself there is a the growth of almost 9% on the quarter on quarter basis.
Harsh Shah
If you look at a standalone business it is flat. Why on Y it is flat. So Y and yes you are right.
Ashwani Arora
So it is basically because of the, the price here itself. So price reduction is taking it. So if you ask overall we have grown by value term 9 and volume 10.
Harsh Shah
So yes, that is for the company console business.
Ashwani Arora
Correct.
Harsh Shah
No. India. You are in India. If you look at the India business as Kachna India business we have, in the volume terms we have grown by 12%. Whereas the in case of the value growth in India it is 13.5%. Only. Only the Basmati rice segment in India. Yes. What is the volume and value growth in fourth quarter?
Ashwani Arora
With the fourth quarter? If you talk about the fourth quarter itself on the Y. On Y basis our volume has increased by 15%. And the, and the value growth is. And the value growth is 7%. So there is the reliance, the realization has decreased by six and a half percent.
Harsh Shah
Okay. And how do you see this? Because of this lower paddy prices, how do you see FY26 panning out for us both? If you could give us a sense in terms of India business and overall at console level what’s the kind of volume growth and valuable which you expect in FY26?
Ashwani Arora
So volume growth is roughly overall, you know, the consolidated we are expecting 7%. Huh. So console level, you know, consolidated, you know, that’s the volume we are expecting. This year we are expecting, you know, full year. With the integration of the, you know, the balance 49. We are expecting the revenue to be 10,000 crore.
Harsh Shah
Okay. And if you could split between volume and let’s say organ business. I mean organic as in organic integration.
Ashwani Arora
So this is a console, you know of all three vertical which is specialty rise, organic. And you mean to say organically.
Harsh Shah
Organically.
Ashwani Arora
Yeah. So actually you know, because there is a value degrowth. So almost same, you know, same value. But volume growth will be there.
Harsh Shah
Yeah, yeah, yeah, yeah.
Ashwani Arora
But there will be volume growth of. There will be volume growth of almost 9 to 10% of volume. That will happen.
Harsh Shah
Okay, thank you. And sorry. One. Just, just one more question. Do we source anything from Pakistan for our middle business?
Ashwani Arora
Nor you know, in the last year we sourced from Pakistan, but this year. You know we don’t have any position from Pakistan. It’s all sourced from India. But last two, three years we were sourcing from Pakistan.
Harsh Shah
What was the proposal of that? Let’s say overall procurement.
Ashwani Arora
Sorry,
Harsh Shah
What was the proportion of things?
Ashwani Arora
Roughly 700,000 tons Pakistan we only 30. 30. So 4, 4 to 5%.
Harsh Shah
Okay. Okay. Thank you.
Operator
Thank you. We have our next question from the line of Abhilash Bhandari from Vasuki India fund. Please go ahead.
Abhilash Bhandari
Hello sir. So I have two questions. The first one is so now the Indus validity has been cancelled. So. So what will be the impact on Pakistan’s Basmati rice production and India’s share in India’s market share in the world for Basmati rice? And the second one is what will be the impact of UK FTA if the tariffs are reduced or anything for our supplying Europe?
Ashwani Arora
So answering to your first question that you know we don’t do, India doesn’t do business with Pakistan. It’s our subsidiary which used to buy from Pakistan. So there is no any treaty impact. So although you know in this year as I said earlier that you know we are not buying. So India was more competitive. So this year we bought only from India and that’s what we are expecting. Next year also we will most probably buy from India only. So on the UK treaty there is a no negative impact on us. So it is same, you know, as you know on the brown rice there was a zero dt this year also there’s no change in that.
Abhilash Bhandari
So what about ready to cook segment?
Ashwani Arora
So ready to cook segment. What, what you wanted to ask.
Abhilash Bhandari
Hello. So no. So would we have any impact, any benefit on the in the ready to cook segment if UK trade, UK agreement.
Ashwani Arora
Now in UK we don’t do any ready to eat. Ready to eat is more US and India centric business. So it doesn’t have. So no, we are not doing any business with UK on ready to eat.
Abhilash Bhandari
Okay, so answer one last question. What is the impact of Pakistan’s impact on Pakistan’s production of rice due to the Indus Valley Treaty
Ashwani Arora
That that is too early to, you know, because to assess. But in the coming months we will be able to know. In the, you know, first week of July or midweek of July only able to, we will be able to know but I don’t think there will be any impact here.
Abhilash Bhandari
Okay sir, thank you.
Operator
Thank you. We have our next question from the line of Damodaran Kutty from Acutas Capital. Please go ahead.
Damodaran Kutty
Thank you for the opportunity. Just two questions from my side. One is on the Golden Star business. So can you give some outlook on the margins there? Given the margins, I think from your last call you had said that margins were impacted because of the freight cost and margins have had almost halved. So for FY26, what is the outlook on margins and growth there and the impact of tariffs on sourcing there in that business? Because I think IBD you source from Thailand and that has at least by initial reports they were quoting a 46%. So will it change our competitiveness in terms of sourcing? That’s, that’s on the Golden Star business. And on the other question on Capex including. So you have the option of buying out the 50 stake including that. What will be the Capex outlay for this year? Yeah, those are the two questions.
Ashwani Arora
Second question Sachin will take. So first question on the Golden Star, you know we source jasmine rice under the Golden Star brand. So there is a specific community which consume this rice. So they are very loyal. So we don’t see any impact on the demand side regarding the impact of the duty. As you know, I just said that, you know, 10% there is a duty and we have passed on to the, you know, the customer. So we have yet to see any impact on the demand side. But we expect that there will be no impact here.
Damodaran Kutty
Yes. Okay, great. And this year is a normal. It’s back to normal because last year.
Ashwani Arora
Only in. In between the destruction came and we were not able to pass them. But this year it has been normal and it’s all in control.
Damodaran Kutty
Okay so you should expect margins to revert back to their normal state.
Ashwani Arora
Yeah, that’s what we are expecting. That the margin will improve.
Damodaran Kutty
Sure. Great. Thanks. And if you can understand the capex
Sachin Gupta
And so as regarding the capex this year what we have is Almost at least 40 crores of capex that will be there and that will majorly in the warehousing facilities and the RTH facility in the US that will be there. As regarding the capex this year in 2520 start.
Damodaran Kutty
Okay so you said warehousing and RT in the US facility. 640k. So this doesn’t include the state buyout that you have on the option to exercise.
Sachin Gupta
That will be a separate and it’s val.
Damodaran Kutty
Yes, that will be a separate one. Okay, got it. That’s it from my side. Thank you.
Operator
Thank you. We have our next question from the line of me Jain from Motilal Oswal Financial services. Please go ahead.
Meet Jain
Yeah hi sir, first question is regarding the falling prices of Patna teeth. So is this because of the better output in the Indian market? Correct.
Ashwani Arora
Sorry, can you repeat that please?
Meet Jain
So like we are seeing a falling realization for FY26 in the Indian market. This is due to better output. What we are seeing domestic Basmati production and do we see similar kind of price fall in other geographies wherever we are present in.
Ashwani Arora
So there will be impact of you know net of impact in US and India. I don’t think there will be any impact on the other, other part of the world, you know.
Meet Jain
Okay, so what can be a margin trajectory going right? Will you. Are we expecting a stable kind of margin? 526 as well?
Ashwani Arora
Yeah, we are targeting you know in the range of 13 EBITDA margin
Meet Jain
13%. Okay. Second thing was on the logistic trade earlier we mentioned that we will be expecting similar kind of logistic cost for our 1Qfy 26 order as well. Is this, are we on that stance or. We are seeing better normalization in 1Q as well.
Ashwani Arora
So the freight rate is normalized now
Meet Jain
So we can see a better margins in 1Q.
Ashwani Arora
So that’s what I said. You know we are, we are targeting in the range of 13 Beta margin.
Sachin Gupta
So. So meet Ashwiniji had earlier told. So we will be investing more on the brand. So yes the logistic logistic cost as it is softening up. But our investments in the brand as the brand will be increasing in this year.
Meet Jain
Correct. On the similar logistics cost are we seeing from the Thailand also for a golden star business normalization
Ashwani Arora
In that look in that year also.
Meet Jain
Okay, thank you so much. I’ll get back with you.
Operator
Thank you. We have our next question from the line of Manit Doshi from Care Portfolio Managers. Please go ahead.Amit. Hi there Amit, are you there?
Amit Doshi
Yeah, can you hear me?
Operator
Yes, now we can hear you.
Amit Doshi
Yeah. I’m saying that the logistic cost has been normalized is what we are saying. If I have to just put it in numbers. Last year you mentioned 6.5% of sales was a logistic cost. So what is the likelihood of that percentage this year? FY26.
Sachin Gupta
So if you look at our quarter four numbers our logistic cost as a percentage to revenue is 5.8%. So that’s what we 1 or 2.1 or 2 percentage downwards. So that’s the normal logistic cost.
Amit Doshi
Okay. Okay. Okay, understood. And in terms of this global green company proposed acquisition. While I understand that it is still a proposed acquisition just wanted to understand your thought process in terms of you know this funding of around 600 to 800 crore that is projected and you know what kind of likely margin of that product of that company.
Ashwani Arora
First of all you know it’s a value is around 25, 24 million. So it’s not 600 crore. It’s only in terms of rupees is a around 200 crore. Partly you know we will roughly what we are proposing is 6,7 million. We will put equity rest will be you know through borrowing and going forward with the synergy in sales. And you know we are planning to put the the rice factory in East Europe also because to service the rest of the part of the European. So all in the coming years we are expecting the return on equity in the range of 20s This is a cane food business. Yeah,
Amit Doshi
Yeah. So I, I don’t know. In the, the, the press release it is mentioned 6 million. Cash consider it. Cash consideration.
Ashwani Arora
Yeah. 6 million is the equity and rest, you know, the company holds borrowing so that, you know, we will acquire that company. The borrowing will also come.
Amit Doshi
Okay, okay, okay. Answer margin of the company. The margin profile of these products.
Ashwani Arora
So on, on the margins, you know, the amita margins in the range of, you know, 6 to 7%. But with the synergies, we are expecting to improve.
Amit Doshi
You understand? Understand? Okay. Okay. Thank you.
Operator
Thank you. Ladies and gentlemen, in order to ensure that the management is able to take questions from all participants in the conference, please restrict yourself to only two questions per participant. Should you have a follow up question, we request you to rejoin the queue. We have our next question from the line of Resham Jain from TSP Asset Managers. Please go ahead.
Resham Jain
Yeah, thank you for taking my question again. So, two questions. First is on the inventory. I could see that compared to last year your inventory is higher by 25% in value terms. I think that possibly the volume increase will be slightly higher than 25% given that prices have come down, the procurement prices. So I was just trying to understand, given that you mentioned that 9 to 10% volume growth is what we are expecting for the full year, is that more conservative given that your procurement has been quite good?
Ashwani Arora
You know, Reshm, as you said rightly, one is, you know, the inventory gone up because of the volume growth. And the second, the prices was, you know, was very in favor of us. Normally, you know, we keep as a policy, you know, partly buy in procurement and partly we buy in off season. But this year we thought, you know, it’s a very attractive price. So we bought, you know, more inventory than regularly we buy. Of course, you know, we are little optimistic also as the this year the prices are good. So we are expecting that, you know, we will have a better growth than projected, you know.
Resham Jain
Okay, understood. And do you mean that you bought more paddy than rice this time?
Ashwani Arora
Yes, yes.
Resham Jain
So conversion margin will also be slightly better than usual.
Ashwani Arora
Yeah.
Resham Jain
Yes. Yes. Yes. Okay. Understood. Understood. So the second question is on the overall balance sheet I think you have, you managed it very well. And you have received I think 250 odd crores from insurance in April. And you are carrying a very high inventory. So by September do you expect the overall net debt situation would be almost like closer to zero. Because you will not buy incremental inventory in the next six months. You will keep consummating that inventory. And at the same time you have received this 250crore additional money as well. So how should one think about the net debt situation going forward?
Sachin Gupta
So Resham, you are right in that sense. So in India our net debt position will be positive. So we won’t be having any kind of debt impact in the month of from July and onwards. So our cash position and the net debt basis we will be positive. The debt requirement will be in the case of the European entity. So apart from that there will be no data in the Indian or the US
Ashwani Arora
So India and US will be completely.
Sachin Gupta
And there will be, in India there will be surplus.
Resham Jain
Okay. Understood. Okay. Thanks. All the best. Thank you sir.
Sachin Gupta
Thank you.
Operator
Thank you. We have our next question from the line of Devesh Kasiwal from antique stock broking. Please go ahead.
Devesh Kasliwal
Thank you for the opportunity, sir. On the Indus water pt. So I’ll just frame the question a little bit better over here. So if at all India stops water and this continues and becomes structured. So do you think output from Pakistan to Middle east will go down and that can increase our opportunity in the Middle east region where we are right now focusing on as well on a structurally converting basis.
Ashwani Arora
This is all political thing, you know, we can’t have. But look, Pakistan is not a at the moment, you know, it’s a big player to Middle East Pakistan like right. India like export. Roughly this year we will be around 6 million ton and Pakistan is not even 700,000 ton. So I. I don’t think you know with this Indus we will have any impact from Pakistan and the Basmati even in grown in the Punjab. So they have, you know the other sources of water also, which is groundwater. So it’s all, you know, all estimate but not going to change any position here to our thinking. Okay. Okay. It’s not a big factor.
Devesh Kasliwal
Okay. Thank you.
Operator
Thank you. We have our next question from the line of Vipul Kumar Shah from Sumangal Investments. Please go ahead.
Vipulkumar Shah
Hi sir. Thanks for the opportunity. Sir, can you give me the volume figures? Means India tonnage, US tonnage, European agent value for each for the quarter and year.
Ashwani Arora
So you can write it to our IR team and they will provide you with the relevant data.
Vipulkumar Shah
But every time means last two, three calls, means I have raised this and you, I think on, on one of the occasions you have promised it to be part of the presentation. So why don’t you give it in on this call
Ashwani Arora
Sometimes, you know, for a competitive reason, you know, sometime for the competitive reason, you know, we don’t want to have this on. But as last call also we said if you will write, you know, to the ir, we’ll definitely get into that
Vipulkumar Shah
Here. And so this acquisition, so all the. Due to this acquisition, all the revenue will be consolidated for this full year, you know.
Ashwani Arora
Yes. We have proposed, if required, you know, will. Will be consolidated.
Sachin Gupta
Yes. So the remaining part of the year, the. The remaining. After the acquisition, the remaining part of the year.
Vipulkumar Shah
So what is, what was the revenue of that entity last year?
Ashwani Arora
It was a 40 million revenue last year. Last calendar year,
Vipulkumar Shah
40 million euros.
Ashwani Arora
40 million.
Vipulkumar Shah
That will be consolidated only after that transaction is completed. Right. For the remainder part of this year. And sir, don’t you think we are stagnating since last one year? There is hardly any profit growth in spite of volume and revenue growth. We are not able to translate into the profitability the net level. So are we facing any competitive intensity or are we investing in the brand means? How should one look at the.
Ashwani Arora
Definitely we are, you know, improving our margin. If you see, you know from ROC perspective, you know we have moved from 14 to 21 on the, you know, the PAT level or you know we have grown. Yes. In the five years from roughly 350 to 600 crores. So we have, we have done very well as far as if you’re talking about the, the percentage margin that’s also moving but the mix is also changing, you know, so like you know, some business has a, you know, lower working capital requirement. They have that kind of margin. We have built a very, very high quality business which is generating, you know, the free cash flow higher roce growing. So all factors are, we are very, you know, happy with the, the way we are growing.
Vipulkumar Shah
And so lastly over.
Operator
Sorry to interrupt Mr. Vipul
Vipulkumar Shah
In the continuation of that last point. Only if you allow. Yeah. So sir, over last 5 years what type of market share gain we have in India?
Ashwani Arora
So I don’t have but I think we have moved from 1 to 27.
Vipulkumar Shah
21 to 27.
Ashwani Arora
Yeah. So we have doubled our business in India in the last five years.
Vipulkumar Shah
No, I’m talking about market share.
Ashwani Arora
So that’s what you know, I’m saying that you know, 21 to 27. Yeah, that’s, that’s the, yeah. Market share we have improved on.
Vipulkumar Shah
Okay sir, thank you and all the best. Thank you.
Operator
Thank you. We have a next question from the line of Lavita Lasrado from MARI Assets. Please go ahead.
Lavita Lasrado
Hello. Yes. Yes. So can you talk about more on the partnership after the partnership with Salix? How is our Saudi business progressing? How is the margin profile in this region? Are we going to benefit down the line?
Ashwani Arora
This is progressing well. Progressing well. You know.
Lavita Lasrado
We are doing as per our plans progressing. Well. Can you talk about, can you talk more on the margin profile like is it going to, is it going to help down the line in terms of increasing our margins considering the product profile that we have in this country?
Ashwani Arora
You know, this, you know, in the coming 2526, you know our revenue will be more than 10,000 crore. And at the moment, you know Saudi is contributing only 55 crore rupees. So you know, it, it will take some years to you know, make sure the impact from the bottom line and top line. But we, we are positive, we are you know, doing business as per plan in Saudi Arabia.
Lavita Lasrado
Okay, thank you. So I have a second question. Can you give me channel wise contribution in India, the current state
Ashwani Arora
Right now we don’t have this moment but you can, you can write through.
Lavita Lasrado
I. Sure. Thank you.
Operator
Thank you. We have our next question from the line of Tom from gog, please go ahead.
Tom James
Hi, thank you for the opportunity. I would like to know about the tariffs imposed by us. Like what is the rate and when will it be applicable? Could you throw some color on it? And one another question is how are we going to pass on it to customers? Like yeah, that’s my question.
Ashwani Arora
So you know, now it’s a 10% tariff. You know, it will, it will. We will. We have already implemented the price hike, whatever the price adjustment. So it is in effect. I hope that answered your question or something I left you.
Tom James
Yeah, yeah. Passing on how and how is the accounting of done? Like will it be part of the other expense and revenue?
Sachin Gupta
So it is a procurement cost. If you talk about it is the cost of procuring that material in the US So it will be the cost of goods sold in that.
Tom James
Okay, thank you. Thanks so much.
Operator
Thank you. We have our next question from the line of Hitesh Goel from Reddish Advisors, please go ahead.
Hitesh Goel
Yeah, thanks for taking my question. Sir, I have two questions. First on the RM bar, right. So most of the procurement benefits have come through in this quarter, right? Because you’ve already procured for the full year. Basically you said that in earlier, right? Now you said that you will not pass on the tariff impact in US and you’ll absorb it through the RM cost decline. Now you are saying you have already passed on. Can you please clarify this?
Ashwani Arora
Adjusted. I corrected myself. I said, you know, it has been adjusted.
Hitesh Goel
So basically the impact is yet to come, right? I mean in next quarter the gross margin will deteriorate because you basically you. The raw material cost benefit has already come through but the duty impact will come from the next quarter, right?
Sachin Gupta
Not really. Not really. As you know this is a basmati and you require the aging. So the. Whatever has been procured in the. In this season will come into effect from the second. Second quarter. From the second quarter, third quarter itself. So this is this in this quarter or the previous quarter we have a crop that was for the last year.
Hitesh Goel
So that’s basically more. So more procurement benefits can, can. Will be coming through as the newer inventory gets used up, right?
Sachin Gupta
Yes, yes. So that’s what Ashwiniji previously told. In the second or third quarter our impact of the. The GP margins will further. There will be improvement. There will be margin increase in the EBITDA as well.
Hitesh Goel
And sir, on the other expenses, basically first is obviously this freight cost. You had said there’s a 2% increase which has happened from the low, you know, in last one year, one and a half years there’s been 2% increase in a percent of sales. Right now you’re saying it is almost done. It is almost done and we’ve already realized only hundred bips. This is now new Normal will not get that.
Sachin Gupta
Yes, yes. So that’s, that’s what we are expecting. Yeah. So currently what we are seeing that is the new normal 100% 1% increase decrease from the hike that was there.
Hitesh Goel
Okay. And my final question on advertising, I’m not able to understand. Sir, your market share is quite high in India as well as in us. So why are we always. And our advertising spends are also higher than our competitors. So why are you spending so much on advertising?
Ashwani Arora
First of all, both the markets are growing in the double digit. And if you wanted to grow so then you have to keep invest behind the brand. That’s what you know.
Hitesh Goel
But sir, I mean this year anyway the demand is quite strong, right? Because prices have come down. So why are we spending more on advertising?
Ashwani Arora
Expensive. If we all understand consumer business, you have to keep investing behind the brand every year. You know, if you wanted to acquire new consumer, if you wanted to sustain the you know, in this competitive world whereas you know the category you know is also spending money. So in competition. If you see, you know the is roughly 250 to 300 crore is being spent on the category alone in India. And you know we are spending and now we have the new consumer proposition which you know is.
And that has been, you know delivered by Mr. Khan. And it’s doing very well. You know, it’s very impactful. And we are quite confident that you know that will bring the market share gain and the new consumer and the new growth. So India is a even which I can tell that in the coming five years also what we are expecting that you know, India will keep growing 10 to 15% in this category.
Hitesh Goel
Okay, no problem, sir. Thank you. And all the best. All the best. Thank you.
Operator
Thank you. We have a next question from the line of Abhilash Bandari from Vasuki India Fund. Please go ahead.
Abhilash Bhandari
Hi sir. So I have just one more question. What is the revenue share of jasmine rice in the top line?
Ashwani Arora
So the jasmine, the golden star revenue is not getting consolidated. It is a jv. It is just a profit from the JV that is getting consolidated.
Abhilash Bhandari
Okay. Thank you.
Operator
Thank you. We have our next question from the lineup. Thank you. We have our next question from the lineup. Nandita from Marcellus Investment managers. Please go ahead.
Nandita Rajhansa
Thank you for the opportunity. I just wanted to ask what exactly has come into the other income part of the project? Competent loss statement. This time in Q4 it has gone up from roughly around 13 crores to 30 crores. So wanted to just understand what actually happened over there.
Sachin Gupta
So in this the major portion is the exchange, exchange fluctuation, profit that we have owned and secondly. Yes, so we were charging certain portion from Golden Star. So there is the income from the Golden Star as well. So that is there. The Golden Star revenue is quite good in the fourth quarter. So that has resulted in the increase in the other income.
Nandita Rajhansa
Thank you.
Operator
Thank you. Ladies and gentlemen. This would be the last question for today and I now hand the conference over to the management for closing comments.
Ashwani Arora
So thank you so much for joining and look forward to see you soon. Thank you.
Operator
Thank you sir. On behalf of Motilal OSWAL Financial Services Ltd. That concludes this conference Than thank you for joining us. And you may now disconnect your lines.