Ladies and gentlemen, good day and welcome to LT Foods Q3 FY25 earnings conference call, hosted by Motilal Oswal Financial Services Limited. As a reminder, all participant lines will be in the listen-only mode, and there will be no 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 then zero on your touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Meet Jain from Motilal Oswal Financial Services Limited. Thank you, and over to you, sir. Thank you. Good evening, everyone, and a warm welcome to LT Foods Q3 FY25 post-results earnings call, hosted by Motilal Oswal Financial Services Limited. On the call today, we have management team being represented by Mr. Ashwani Kumar Arora, MD and CEO, Mr. Sachin Gupta, CFO, and Ms. Monika Chawla Jaggia, Chief Corporate Development Officer. We will begin the call with key thoughts from the management team. Thereafter, we will open the floor for Q&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. Good evening, everyone, and thank you for joining us on our Q3 and nine-month financial year 25 earnings conference call. Before we start with the key highlights of the quarter and the nine months ending 31st December 2024, I would like to highlight that 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. Results documents are available on the 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. I would like to begin by taking you through the key highlights of Quarter 3 financial year 25. Our consolidated revenue for Quarter 3 is up by 17% to INR 2,288 crores versus INR 1,950 crores last year, on account of increased sales from all our segments. Gross profit grew by 22%, and gross profit margin is 125 basis points higher, from 32.6% to 33.9%, attributable to favorable input prices. EBITDA for Quarter 3 was up by 7% year-on-year basis at INR 263 crores, and EBITDA margins today at 11.5%. PBT is up by 3% from INR 201 crores last year to INR 217 crores in Quarter 3. PAT for the quarter decreased by 4.7% to INR 145 crores, compared to INR 153 crores in the previous year. EPS decreased by 5% to INR 4.13 versus INR 4.35 in Quarter 3. Cash profit for the quarter was higher by 1% to INR 196 crores. Now, coming to nine-month performance, our consolidated revenue for the nine months increased by 14% to INR 6,510 crores versus INR 5,730 crores in the nine-month financial year 2024. This is on account of the increased sales from the basmati and other specialty rice segment, as well as an increase in the organic segment. Gross profit stood at INR 2,202 crores, and the gross profit margin expanded by 145 basis points from 32.4% to 33.8%. EBITDA increased by 7% to INR 777 crores, compared to INR 726 crores last year. EBITDA margin was 80 basis points lower at 11.9%. The profit after tax is higher by 1% to INR 451 crores versus INR 447 crores last year. The earnings per share was flat year-on-year, that is to INR 12.81. Cash profit increased by 5% to INR 584 crores versus INR 554 crores last year. Moving on to the key ratios of our balance sheet, the return on the capital employed stood at 19.5% in nine months financial year 25, compared to 20.3% in nine months financial year 24. Return on equity stood at 16.9% for nine months financial year 25, compared to 18.7% in the nine months financial year 24. The debt-to-equity ratio maintained at 0.3, and the debt-to-EBITDA ratio at 1.2 in the nine months financial year 25, compared to 1.3 in nine months financial year 24. Current ratio remains steady year-on-year at 1.9, and our net working capital days stands at 227 days versus 225 days in nine months financial year 24. I now hand over to Mr. Ashwini for his comments, and we can open the floor for the question-answer. Thank you. Yeah. Good evening, everyone. So we can open the floor for questions. Sir, shall we open up for questions? Yes, please. Thank you. Ladies and gentlemen, we will now begin with the question-and-answer session. Anyone wishing to ask a question may please press star and one on your 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. The first question is from the line of Joy Lin from Amiral Gestion. Please go ahead. Hello. Am I audible? Yes, sir. Please go ahead. Yes. Okay. Hi. I have a few questions. First one, could you quantify the impact of higher freight on this quarter? Because I think when I just glancing through the SG&A, it seems to be 50 basis points higher Q on Q. And I understand that we are still facing elevated freight prices that we have yet to pass on to our customers. So maybe just on that one first, please. So as regarding the freight cost, the logistics cost has a percentage to revenue. In this quarter itself, if we compare on the year-on-year basis, this has increased by 2.3%. And if we compare it with the immediate preceding quarter, it has increased by 0.5%. And the current logistics cost for this quarter is 7.1%. Okay. So any views on that? Is it coming down in the quarter four? Are we going to pass it on to our customers altogether on the freight charge? So yeah. Next year, we are expecting the freight rate to come down. We are in conversation with the freight companies, the ocean freight companies. We are positive that next year. In the next quarter, we'll not have kind of positive impact on this. The freight cost will remain same. Next year, we are seeing it softer. Okay. Sure, sure. Because I think the previous understanding was that quarter four is when the freight prices will normalize as we're expecting it to come down. Yeah. Because we already have inventory in the system with the higher freight cost. So even if it changes now, it will have impact in the next financial year, first quarter. Okay. No, that's very clear. I guess next question is on the associate earnings. So I think this probably relates mostly to Golden Star. I think it came in at around 40 million, 4 crores this quarter, which obviously has declined quite significantly from last year's 117 and also last quarter's 88 million rupees. So any colors on this? What's happening to Golden Star? So again, the profit has come down because of the higher steamer freight from Thailand to West Coast. So that's the main impact. So there is no decrease in price or in the raw material cost has not increased. So purely impact of freight cost. Okay. Got it. I will go back to the queue and follow up later on if there's more time. Thank you so much. Thank you. We'll move on to the next question. That is from the line of Nandita from Marcellus Investment Managers. Please go ahead. Hi, Ashwini Arora, sir. Thank you so much for the opportunity. So actually, I had a couple of questions. The first one is that it says on the website that of the exchange that Raghunath Agro Private Limited, in that which is a wholly-owned subsidiary, has taken up 4% stake. So can you please clarify how is this done and why is it 4% stake taken in a wholly-owned subsidiary? And secondly, in the other expenses, which rose to 17% of revenues from 14.5% of the revenues last year, it was just generally freight which contributed largely to this, or was there any other cost item which also led to the rise in other expenses? Sachin will take up this question. Yeah. As regarding the other expenses, last year it was 14%. This year it is 16.3% on a nine-on-nine basis. And this increase in the expense is mainly attributed to the logistics cost. The logistics cost has increased on the nine-year basis by 2%. So this is the major increase in the other expenses. As regarding the Raghunath Agro Industries, initially, company had 96% holding. So the 4% holding was with one of its subsidiaries, Daawat Foods. Now LT Foods is acquiring that 4% share also. Now it will be 100% subsidiary of LT Foods. Hope I have answered your question. Yes, yes. Thank you so much. We are in the process of merging this also. Raghunath Agro will get merged in LT Foods. Okay. So it won't be a wholly-owned subsidiary then? We are in the process of doing that. Yeah. So it will get merged with LT Foods. Yes. So we are in the process of fast-track mergers key. Understood. Thank you so much. Thank you. A reminder to the participants, anyone wishing to ask a question, may please press star and one. The next question is from the line of Damodar Kutty from Aequitas Capital. Please go ahead. Yeah. Thank you for the opportunity. And congratulations on a decent set of numbers. So. Thank you so much. Yeah. So my question was on strategy on pricing. So given that Basmati prices have dropped this year, what will be our strategy on pricing? Will we be focusing on holding prices and improving margins, or will we pass on the benefit of the lower prices to customers and focus on improving our market share? And what implications does it have for FY 26 margins? So yeah, just some color on that will be helpful. That's question number one. Thank you so much. So we are evaluating. Definitely, the prices of input cost or raw material cost has come down as compared to last year. So we are evaluating our pricing strategy and seeing the competitive landscape. Hopefully, we will be ready with our complete pricing strategy by the end of February. But definitely, I think somehow we had to take some price decrease. Yeah. How much we are evaluating? Sure, sir. And given that, I mean, you expect this impact of freight cost to go away next year, you can expect that that will improve your margins by around 100 basis points. I mean, because you did around 12% margins, and currently your margins have come to around 11.3% or so. So definitely, in the second quarter of next year, we are expecting the margin to improve by the September result. Yeah. Sure. Okay. That will have a positive impact on the raw material and the freight cost. Okay. Got it. And just one more question on CapEx. So, I mean, if I'm correct, you were guided for around INR 200 crores of CapEx this year. That included your UK subsidiary and the RTH facility in the US. So, any update on, I mean, what's the number for FY? I mean, any update on the FY 25 number and any plans of CapEx for the next year? On the CapEx side, next year will be almost in the range of 150 to 200. But as far as this year CapEx is concerned, our UK facility is up. We are doing the sales. On the USA, the facility will be up in the month of May next year. Yeah. Okay. So the CapEx for that has already been, I mean, that's already being incurred, or will that also come in FY26? So roughly, Sachin can give you the number, 160. In the current year, in the nine months, we have incurred INR 164 crores of CapEx. Okay. Sure. Until now, we have incurred. As soon as it ruled, the remaining will be done in the next year. U.S. CapEx is a little bit in the process, so it will be spent. Sure, sir. Okay. Got it. During this quarter. Okay. Okay. Thanks. That's it from my side. Thank you. The next question is from the line of Hitesh Goel from Riddhis Advisors. Please go ahead. Thanks for taking my questions, sir. A couple of questions. First is on the, can you give us the revenue growth in third quarter for India and in exports across U.S., Europe, and Middle East? Just for the third quarter. Because you generally give nine months. So if you can give it for this quarter, please. So we will get back to you. But on nine months, I think we have done in the presentation is India is 8% growth and U.S. is 17% growth. 17% growth. Yeah. All right. So we will get back to this number. So if you take the India and international total, the value growth in India is 12%, and in international, it is 11% on the quarter-on-quarter basis. In international, how much has the US grown faster than the Middle East? Because Middle East growth seems to be quite low. So Middle East has grown by 37% on nine-month basis. Although the base is small, but that's the fastest growing territory for us. Okay. And sir, my second question is on the RM purchase, right? So basically, we are seeing that benefit of the lower prices of input cost. Have we started seeing because your gross margins are improving, that is because of procurement cost, or will we see that benefit only next year, full benefit of that? And secondly, on freight cost, sir, most of the companies are already saying that freight cost has started to come down in third quarter itself. And they're expecting a benefit on fourth quarter. So why are we saying that the benefit will only start coming in second quarter of FY 26? So as far as Europe and America, these are the two sectors which have got impacted. So America, we have not seen coming down even in this quarter. Europe has come down. But there is always inventory in transit. So that's why we are saying that there will be a little bit impact in quarter four, but the bigger impact we will see in the first quarter of next financial year. So going by current trends, how much do you think this freight rate as a percent of sales will come down? If you can give some guidance on that, will we revert back to that 2% increase that we have seen? Will we see that full benefit coming through? Only half of that will get realized in FY 26. How should we see it? I will say half. Half will come here. Procurement cost benefits, sir, you didn't answer that. Procurement cost benefits will come through next year only, or will start coming in fourth quarter itself? We sell the aged product. So it will start coming in the second quarter of next year. Sir, just a final question. So in procurement cost in India, I believe that this will be passed on, right? Because it's a fairly competitive space. In exports like U.S. and all, can you retain that benefit? No. We are living in a competitive landscape. So India, for sure, in the food service, we have to immediately pass on that benefit. But in consumer space, you can have a better margin. I cannot disclose everything here, but as I said, in the second quarter, we are expecting the better margin. Okay. No problem. Thank you. Yeah. Yeah. Thank you. The next question is from the line of Meet Jain from EY. Please go ahead. Hi. Meet Jain here from Motilal Oswal. So my question is regarding the organic food segment. We saw a 26% kind of growth this quarter as compared to earlier in the higher 30s, higher 40s%. So I just want to get some flavor on the growth trajectory of the organic segment. Yeah. Organic this year, we have grown around 37%. But next coming year, we are expecting that the growth will be in the range of 10% double-digit growth. Any update on the Uganda facility on this one? Yeah. Uganda is a small part of our business. So basically, the soya business. So we do both from India as well as from Uganda. That is doing good. Okay. Okay. And lastly, on the domestic growth rate, so just want to get some flavor on the domestic demand environment and the pricing environment for Basmati rice. And apart from that, in terms of international, as you highlighted, the Middle East has been growing at a very strong pace on a low base. And international also is growing overall by 11%. So can you shed some light on the domestic business, like how has the growth been and what challenges are we facing in this business right now? So domestic business, you're asking about the specialty rice, Basmati? Yes, so specialty rice and the Basmati rice, yeah. So, in nine months, we have grown by 8%. But now, in India, especially, the demand looks slow. But internationally, we are doing the double-digit growth in specialty rice. Thank you, sir. I'll get back in a few minutes. Thank you. The next question is from the line of Sakshi Chhabra from Swan Investments. Please go ahead. Yeah. Hello. So my question was regarding U.K. and Saudi Arabia. So what sort of revenue would you be expecting in FY26 from the phase two facilities? Will be at 26. 26. Next year. Next year, you're asking, no? Yes, sir. Next year. 145 million precisely from both units. So basically, 145 from the Europe and the UK unit, what we are expecting in the FY 2026. Sorry. 145? Million euros. Okay. That is from the U.K. as well as the? European facility. Okay. And from Saudi Arabia? Arabia, we will be doing roughly so we have for the next five years, we have made a plan of doing SAR 435 million. So we are, what do you call it, setting the whole thing in Saudi Arabia. So next year, we are 20,000 tons. We have a plan to do that. Okay. All right. And the CapEx that is being done in Saudi Arabia, so what exactly is that going towards? We have not done any CapEx till now. The plan is in the future, in the next five years, to do the CapEx, which will be in the kind of convenience and convenience platform, basically. Okay. All right. Thank you. Yeah. Yeah. And some packaging facility. Okay. Thank you. The next question is from the line of Shloka Kapadia from Carnelian Capital. Please go ahead. Hi. Thank you for the opportunity. I wanted to ask, why is the other income come down QOQ? The other income basically has come down because of the exchange that has been booked in the income from operation. That is basically on accounting issues. Accounting treatment, it has been reclassified. Otherwise, other things have remained intact. Okay. And can you also give me the geographical mix for the revenue for this quarter? In the Basmati and the specialty segment, India contributed 34%, America contributed 39%, Europe/UK 15%, and the rest of the world, it was 12%. Can you give in terms of total sales? In terms of Total you are talking about? In terms of total revenue, can you give me a mix of how much Europe, India, North America, and rest of the world contributed? In terms of total revenue, then India is contributing 30%, America 40%. The rest of the world, it has seen 12%, and the remaining is UK/Europe. That is 18%. Okay. Thank you. Thank you. The next question is from the line of Tom Varghese from Geojit Financial Services. Please go ahead. Hello. Am I audible? Yes, sir. Yes, sir. Yeah. Yeah. I would like to know the Basmati rice volume and average realization? So this nine months, we have made a revenue sales of 525,000 tons with an average realization of INR 103. Okay. And for the quarter? For the quarter, that is 185,000 tons and an average rate of 105. Okay. And the international and India volumes, do we have a separate allocation? That we can raise to our IR team, and they will provide. Okay. And what about the procurement cost of rice average? So the average procurement rate this year, as Ashwinji has told us, it has reduced by 10%-15%. And our average procurement rate of the paddy is INR 32. Okay. Thank you. Thank you. A reminder to the participants, anyone wishing to ask a question, may please press star and one. The next question is from the line of Yash Mehta from Arth Ventures. Please go ahead. Yeah. I'm audible? Yes. Yes, sir. Bilkul. Yeah. Sir, I just wanted to know, what is the kind of volume growth we expect in Q4 and in FY26? We will be the overall growth for full year, we are expecting around 12%. 12%. 12%. Yeah. For FY 26, right? Yeah. Full year basis. Okay. And for Q4, FY 25? So we will be maintaining that growth rate, what we have achieved during this. And the overall year growth will be in the range of 12%-13%. Okay. Thank you very much. Thank you. The next question is from the line of Vipulkumar Anupchand Shah from Sumangal Investments. Please go ahead. Thanks for the opportunity. Sir, can you give the market share in India? What was our market share in Basmati segment last quarter, and what was the same last year's same quarter? We are holding now 28% market share in India, and last year, it was 30%. We have lost 2% market share, right? Yeah. Because we have some segment we have left because of the non-profitability. But overall, the growth is 8%. So we have deliberately vacated the market share? Yeah. Yeah. Maybe where we were having some challenges in terms of margin and all these things, so that we have left. Sir, my second question relates to organic food. Once we reach revenue of 1,000 crores, what type of margin we can expect from that business? Because that business should naturally have much higher margin. Yes. So the major business of food business will come from USA. This year, we have done INR 100 crore of business there, and we have set up the new facility. So the demand is more than 15% year on year. We are growing. So this, we are thinking both organic and inorganic. So organically, we will build this business in the next five year around INR 500 crore. The next 500 crore, we are. Automatically that's organic business. Yeah. It's organic business. Organic business, if it is INR 1,000 crore, so what will be the profit share? Oh, I'm sorry. I misunderstood the question. No problem, sir. So yeah. Financial liquidity is INR 10,000 crore. So my question was, what type of margin improvement we can expect once we reach 1,000 crore revenue in the organic segment? So our target in the organic segment is to have the EBITDA margin in the range of 14% plus. So that's what we are targeting at with the growth in the revenue at 10%-12% in the revenue growth. So that's our target. And currently, we have increased our margin. So it is 11% plus this year. Can you give the revenue and tonnage geography-wise for this quarter and for nine months, please? So that you can ask the question to our IR team, and they will report that. So previously, this was always a part of our presentation, but somehow it has been discontinued. So I would suggest that if it is not competitively harmful, then you should make it part of your presentation. That is my suggestion. Thank you. We will consult internally, and yeah. Yeah. So whom should I contact for this? You can reach out to us. Monika, you can send an email either to IR or to myself at monika.jaggia@ltfoods.net. Sir, last question. Have you received any insurance claim or still no? I think the last, the Supreme Court has given it the final verdict. So by 10th of March, we are expecting the money should come. Okay, sir. Okay, sir. Thank you and all the best. Thank you, sir. Thank you so much. Thank you. The next question is from the line of Anshul Jain from M Tiger Consulting Private Limited. Please go ahead. Thank you for taking my question. I actually have three questions. One is on the margin front. Can you give some broad sense on the EBITDA margin for the domestic business of Basmati rice and the export business? So our India business, if you take the total EBITDA of our Basmati and specialty, is 12.3%. So internationally, we are at a higher margin by 2%. Got it. And my second question is actually interlinked that what would be the realization of the domestic and the export market? So my domestic realization is at INR 64, and my international is INR 144. Got it. Lastly, can you give some ballpark sense on the tonnage in terms of very broad sense in terms of the distribution between how domestic tonnage is and the export tonnage is? So half-half. So we do around 600,000 tons. So half we sell in India and half we export here. Okay. And the 600,000 tons would be all Basmati that you're referring to, right? Yes. And this is from India, but we import from Pakistan also. And we import Jasmine from Thailand also. So I'm only telling you what we do from India. Got it. Got it. Okay. And lastly, could you explain why there was some market share that you mentioned previously in one of your questions? Some market share sense that you gave on decline or intentional decline? As I said, there is a price point which price to consumer is INR 50. So that is very, very competitive, so as a strategy, we thought that on that price point, we will make money and not the market share, but as far as our premium segment is concerned, we have improved our market share, and we are growing also. Understood. Okay. Thank you. That's all I have. Thank you. Thank you. The next question is from the line of Joylen from Amiral Gestion. Please go ahead. Okay. Hi. Thank you so much for the follow-up opportunity. So I think last quarter, there was a comment on working capital where we are actually stocking our inventory in anticipation of higher demand, especially in the U.S. and India. So maybe on that, has it panned out according to our expectations? So that's the first part of the question. And the second part is, are we expecting a working capital to normalize in the coming quarters? Because as I'm looking at the presentation, it says that the working capital days is at 227. So is it going to go down or up maybe in the next one or two quarters? Or is that demand opportunity kind of laid out? Thank you. Excuse me. Let me understand the question from my colleague. Let me answer. Yeah. Yeah. So basically, as you know, this is the peak season. This is the procurement season, and the procurement happens in the month of December. So our working capital, if you compare it with the March itself, the March will be much lower. The last year, December, the working capital days were 225. This year, it is 227. So more or less, they have remained stable. So we are eyeing that, and we will maintain our working capital days as we are in the March. So they won't be getting increased. Though, yes, we have additional procurement because of our demand what we anticipate in the next year. But still, we will be maintaining that working capital days and will be maintaining our return on capital. Okay. No, no. Maybe more specifically, inventory days are 268 for the nine months of 2025, whereas it was 248 last year. So obviously, there's a big jump of 20 days. Are we expecting inventory days to be structurally higher going forward? So yes, but we will still be maintaining that working capital days. So yes, the inventory days have moved by 20 days, but the working capital days, we will be maintaining. And that inventory which we are holding, that is basically because of which we are getting the increased demand, expected demand globally which we are having. Okay. Thank you so much. Joylen, are you done with your question? I'm done. Thank you so much. Thank you. Thank you. The next question is from the line of Resham Jain from DSP Asset Managers. Please go ahead. Yeah. Hi. Good evening, team. So I have a few questions. So first one is, in the last two calls, we mentioned that the freight cost has been a little elevated. So is there any update there? How is the freight cost moving now? And how are you booked? Because typically, I think you book in advance, typically for some portion of your shipments. So any update on the freight costs? So Risham, we do a contract, but the contract applies in the next financial year. As far as U.S. sector is concerned, the freight rate has not come down to the last level, which was the bottom one. On Europe sector, the freight has started softening. And as I said just now, that the benefit will come in the first quarter of next financial year. But definitely, Europe has started softening freight. So what is that quantum? Out of the total kind of freight cost you have, how much reduction can happen because of this Europe fall? The last year, the 5% was the logistics cost, and this year is 7.2%. We are expecting it to come down to 6%. Okay. Okay. So the second question is on rupee depreciation. We have seen a very kind of steep movement in the currency in the last two, three months. I don't know whether you've already commented in your initial remarks, but we have a very large export business. So how are you seeing this export movement impacting us in any way, positively, negatively? So always the rupee depreciation is good for export, and therefore, nothing negative impact for us. So we are only covered to our policy, and we are positive on that. Okay. Understood. So next year, overall, with freight costs coming down and currency also positive kind of movement, the margin which you did in FY24 close to 12.1%, which has softened in this year, you expect this margin should normalize in FY26? Yes. For sure. That's what we are expecting, that financial year 2026 will be better. So it will start reflecting in the quarter two of the next financial year. Understood. So last one is with respect to the profit from associate. Can you confirm if most of the profit from associate is coming from Golden Star? Yes, you're right, Risham. Yeah. Because, sir, what I've seen is that the profit from associate has been gradually coming down from last five, six quarters. It was close to INR 11 odd crores last year. We touched almost INR 50 crores, which was just INR four crore in this quarter. So is there any one-off there or any other kind of pressure in that business? So actually, that business is growing 20%, the Golden Star business. And the only impact was the steamer freight. And the highest impact has happened from Thai to the West Coast. But the business is doing extremely very well, growing more than 20%. What do you call it? The GPM, all things is intact. So it's only the freight has impacted. Similar to the India freight cost. I've asked the question. The Golden Star, when we bought that business, was third largest brand of Jasmine. Now, this year, it has become the number one selling Jasmine rice brand in America. Yeah. Congratulations on that. Sir, just to complete this margin part in Golden Star, the freight cost, similar to what you mentioned from Q1 onwards, one should see a reduction in freight cost. Is this true for Golden Star also, or there the freight movement is going to behave differently than the India business? Risham, that impact, we are in the process of doing our freight contract. Hopefully, that will be, I will say, also be at the same level as India. Okay, so basically, we should see an improvement in Golden Star next year. That's what we expect. Yeah. Okay, sir. Thank you so much and all the best. Thank you. Thank you, Risham. Thank you. The next question is from the line of Prushti Patel from Avantis Capital. Please go ahead. Hello, sir. Good evening. Thank you for this opportunity. So my question was, so after your press release earlier, we can see that certain joint ventures and subsidiaries have dented our PAT. So can you shed some light on which ones have affected the same and why? On the press release, one of the press release was relating to acquisition. Sir, I think we have opened the subsidiaries better. That's the question, right? We have opened up the subsidiaries. That's what you're asking? No, I mean to ask, so which subsidiaries and joint ventures that are already existing which have dented our PAT this quarter? Important. That is the Golden Star. The Golden Star JV. That has dented our PAT now. So Golden Star in the U.S. Okay. May I ask why? The freight, huh? Sorry? Freight part, the ocean freight has increased. Okay. I had another question. So regarding the ready-to-eat and ready-to-cook segment, what, according to you, is going to drive our margin expansion given that we want to pivot into higher margin products rather than volume-like growth? And since we also expect our revenue mix to be 10% from this segment by FY29? So in the ready-to-eat business, the bigger business is coming from USA, around INR 100 crores. So already, the PBT is positive, is around 7%. It's the India which is not profitable at the moment, but we are optimistic that with the scale, it will come on the break even in the next three, four years. But as far as US is concerned, it's a positive. It's a 26% growing, and we are setting up the new facility also. Okay, sir. So by when do we expect it to be profitable in India? In 2027. That's what we have mentioned in the presentation also. Okay, sir. Thank you. Thank you. Thank you. Reminder to the participants, anyone wishing to ask a question, may please press star and one. The next question is from the line of Arjun Balakrishnan, an individual investor. Please go ahead. Hi. Thanks for the opportunity. Can you hear me well? Yes, sir. Very well. Yeah. Hi. Yeah. I've been following your company quite a long time. I mean, I've been invested for the last five years. One question I have is that the margins have never expanded. So five years back in 2019, we're still doing a bit of about 11%, and now we are okay. Off and on, we are about 12.5%, and then we are back to 11%. Can we ever get to 14%? I mean, we've been promising 14% for four years. I don't see the roadmap, and I'm quite worried about that. There's significant volume growth agreed. Our revenues have doubled in the last five years. But you would expect any business to have operating leverage to kick in. But our business seems to be, honestly, struggling to have operating leverage kicking in. Any thoughts on that? Four years. Arjun, actually, the business is doing very well. I wanted to give you the exact number. In a four-year time, if you have seen, we have grown 17%. That's very great. The profit has grown by 32%. In the last four, five years, because our business comes 60%-65% from international market, and a lot of disruption was coming in COVID time in the Red Sea. The focus was to make sure that we have a great service level, and we should capture the growth most. That's what we have adopted the strategy, and we are very successful in that. That's why we have grown 17%. Our profit has grown by 32%. In terms of percentage, we are positive that hopefully there is nothing disruption comes. We will be there in terms of the margin expectation on the Basmati side also. We have improved on the ROCE. Roughly 14%. So as you know, the raw material prices have come down, and we are hopeful that the EBITDA margin in terms of percentage will improve. But important is we are focusing on ROCE, and we have done extremely very well on that in terms of growth, in terms of improvement in ROCE, in terms of PAT growth. No, I think I would totally agree that you have done quite well in the last four, five years. I'm just saying the next line of growth, I hope, is on margin expansion. Volume growth is definitely there, right? You were saying you are sad. I thought, "Let me. Yeah. No, no. From a stock market perspective, we have gained a lot, yeah. I mean, five years has been a great return. But from an investing point of view, I'm just looking at the numbers. No, no. We are very positive that in terms of percentage also, the EBITDA margin should improve. And the focus is on the ROCE. As given advisory that we are targeting to improve to above than 20%. We are already there, but the internal target is to take it to the range of 25%. Last year also. Thanks for that. Sorry, go on. Last year, if you compare our different segments, the Basmati and the specialty segment delivered an EBITDA margin of 13%-13.5%. It is basically the investments which we are making in the other segments, be it the RTC and RTE. That is dragging. Yes, this year, the freight cost had impacted by. Yes. Yes, that's pulling me. Otherwise, we are on the target of achieving that EBITDA margin that we have given the guidance. Yeah, you're right. I agree. I agree. That's pulling it down. My final question is on the insurance claim. So if it gets in, do you think that will be recorded in the subsequent quarter? Because you had taken a hit. I mean, when the claim I remember, it was long back, right? You had taken a portion of the claim as a hit on your bottom line. Will that get added on in the next quarter? We are quite hopeful that by 10th March, the money will be received, but the profit as recording of the profit now because still the case is being heard in the high court, so the money will be received. The recording of the profit, the profit because we had taken a hit, that will be recorded once we receive the verdict from the high court. Okay. Thank you. That's it from my side. Thank you. Thank you. Thank you. Ladies and gentlemen, that was the last question. I now hand the conference over to the management for the closing comments. Thank you so much. If any question has answered or you have more questions, you can reach us on investor relations desk. We will be happy to answer that and looking forward to see you or hear you soon. Thank you. Thank you, members of the management team. Ladies and gentlemen, on behalf of Motilal Oswal Financial Services, that concludes this conference call. We thank you for joining us, and you may now disconnect your lines. Thank you.