SKM Egg Products Export (India) Limited (SKMEGGPROD) Q1 2027 Earnings Call Transcript

Dear investors, good day and welcome to the earnings conference call of SKM Egg Products Export India Limited for the first quarter of FY 2026-27 hosted by NSDL. As a reminder, all participant lines will remain in lesson only mode during the management presentation. This will be followed by a question and answer that is Q&A session during which participants will have the opportunity to ask questions to the management. Should you require any assistance during the conference call or wish to ask a question during the Q and A session, please use the raise hand feature and the operator will assist you. Please note that this conference call is being recorded. I am Sameer from NSDL, and I am pleased to welcome the management team of the company. Mr. SKM Sri Shivkumar, Chairman and Managing Director. Mr. SK Sharat Ram, Executive Director. Mr. KS Venkata Chalapati, Chief Financial Officer. I would now hand over the call to Mr. SKM Sri Shivkumar sir, chairman and Managing Director of the company for his opening remarks. Thank you and over to you, sir.

Mr. SKM Sri Shivkumar (Chairman and Managing Director) Thank you for the opportunity. Good evening all shareholders. I'm happy to meet you all and discuss your concerns or your queries regarding the operations of our company. Welcome you all once again and I'm ready to answer the questions or if you want some information, Paddy is here to give you some update on the information also. Thank you so much.

Moderator Sir, would you like to proceed with the Q and A session now?

Mr. SKM Sri Shivkumar (Chairman and Managing Director) Yeah, proceed further. There is no presentation.

Moderator

Okay. Perfect. Sir, thank you so much. Thank you for helping us with that. Ladies and gentlemen, once again we would like to remind everybody that if you have any questions, please use the raise hands feature, and we will be asking two questions per attendee. If you have followed up questions or if you have furthermore questions, those can be sent to us via email and those would be answered accordingly. For now, we have time for two questions per attendee. We would once again request the people in the attendees to please use the feature where you can raise your hands so that you can be unmuted and the questions can be taken. Ladies and gentlemen, we have the first person with a question. We have Mr. Pramukh Kabra.

Board Room Can you repeat the name?

Moderator Mr. Pramukh Kabra Would be the first person to join us from the attendees to raise the queries. Mr. Pramukh, you have been unmuted.

Mr. Pramukh Kabra Yeah. Thanks for the opportunity and congratulations on the great set of numbers. My first question was regarding the Egg powder prices. So, what exactly? I mean, how are the egg powder prices determined in the international market? Is the US dictating it or I mean, what are the top three, four countries that dictate the powder prices?

Mr. SKM Sri Shivkumar (Chairman and Managing Director) Thank you for the question. The biggest influencing supply countries are in the international market because you are right, US is one of them. Europe is one major Now India is also a player and South American countries; Ukraine and China these are the major supply countries which make an impact on the international price. Of course, the South American players are not price centers. EU suppliers and American suppliers. Cost structure decides the international I think because they have the biggest volume to be sold on the international market and history of supply to things. So, it depends on product to product. Sometimes the egg, predominantly egg white is determined by the supplies from Europe Egg yolk and more like is determined by supplies from America and South America and China. Recently they were also active on egg white and yolk. So, the biggest egg white trade centers are Europeans, and Europe can more like Americans. So that is answer.

Mr. Pramukh Kabra

Alright, thank you EC sheds and biogas. So last in last quarter you announced this capex. So I mean, how should we look at the ROC perspective? What would be the cost savings. What additional costs would be incurred? I mean, how should we evaluate it?

Board Room Same in connection with the EC shed biogas we could not see in the aspect of ROCE or return on investments. It is the sustainability aspect. We have to see for successful come execution of 7200 to in future more volumes in Egg.These investments are necessary for sustaining the E-market in such way. You have to see. I will give you a little more poser explanation. So, we we are not analyzing the gas production and as a separate viability project it is a necessary one to have the eggs produced in EC house. So whatever litter is coming out of the EC house has to be handled daily. One way of disposing is through by a gas. Another way is fermenting it. Another way is trying it. We have taken the route of fermenting, taking gas and consuming gas in our boiler. And the solid and liquid by products are organic marketed as organic fertilizer. The entire process is streamlined. Gas is being consumed by our boiler now, but the launching of we are test marketing the liquid organic fertilizer and the solid fertilizer. By September we will do single commercial. So, there is no separate evaluation because it's an input cost is from our side. The major ingredient is our fault regulator. So, there is no stuff on the whole it's much more giving more feasibility to produce eggs more efficiently. In totality, it is a very good investment. So, we don't have an assessment of whether this is justified or not, but it will add to our efficiency.

Mr. Pramukh Kabra Thank you.

Board Room Thank you. Next.

Moderator Thank you so much for answering that. Thank you. At the moment we do not have any further hands raised. Hence, we would request the people in the attendees to please use the raise hands feature so that your questions can be taken forth.

Mr. Mervan Kotwal

Hello, can you hear me.

Moderator Yeah,

Mr. Mervan Kotwal Yeah, hi. I am finding difficult to dial in through the webinar so I have dialed in through the phone. I think there's some problem with the password. So, this is Mervan Kotwal here and I had some questions for the management. So, should I go ahead?

Moderator Sure, sir.

Mr. Mervan Kotwal Good evening, sir. How are you?

Board Room Good evening. Doing well.

Mr. Mervan Kotwal Hello. So, I just had one a couple of observations. So, if you see today in the PE market there is such a lot of interest with respect to the players who are into standard X sales. So, I was just reading off late. There is this company called Fruit. I try if I get it correct and they are looking at raising a lot of money through PE at multiples of sales. Now these guys are not even integrated and they are getting such rich valuations. Do we have any kind of ambition of entering this kind of area where probably we will start seeing some kind of greater inroad into big commerce? Because I think that is basically a facilitator for much stronger growth of branded egg and I think that market is growing very fast. So, what are your views on this? And I think we've mentioned that we'll be looking at expanding our branded X sales domestically. So, have we firmed up any strategy with respect to this expansion?

Board Room Yeah, I will explain as a first step, if you remember last, we merged the brand division company into or we took over the brand company. So, the structure is in place. Now we are evaluating, we have engaged branding consultants, we are engaging lot of consultants. We know there are four or five players in this field like Eggs, Enfort, Abby, x Rini, Vasa, Subuna. There are two, three other small regional players like O Farms,

Tenko. All these are under our analysis and we are rolling out or we are designing a business model to be in five locations in India. Yes, we are actively considering this. In six months, time. I think by end of this financial year we will have a definite plan to go into the market. And you are right; our company is fundamentally strong in terms of production and quality control. So, we should be able to make a big Difference in tenancy customers on our Runtex sale. So, this is definitely one of the parts.

Mr. Mervan Kotwal Great, sir. That is great, sir. That is wonderful to hear. And so, my second question which I have is that we are today running almost full in terms of capacity utilization. Now going ahead, will we have the option of cherry-picking customers to whom we want to supply our products to? In other sense, is there a very strong possibility of our existing mix improving with our existing setup? I know that we are setting up backward integration etc. coming up into the future. But if I were to look at the next couple of quarters or maybe later on, are we seeing this possibility being there of there being a much better mix for the rest of the year?

Board Room Rest of the year, I could not say anything. We will be running with the same potential full capacity. But in the next board meeting we'll come up for approval of the next expansion plan. I can give you a principal green signal line. And the next board meeting we work is on. So, when everything is finalized by October, we will get the board approval in economics. So, there is a plan to expand our vaccine capacity.

Mr. Mervan Kotwal Right. So. And finally, what were our realization for this quarter? I think last quarter we said we realized 722 rupees. So, what would be our realizations for this quarter? I think last quarter we said we realized 722 rupees. So, what would be our realizations? And the tons of dried egg powder. That we sold this quarter?

Mr. SKM Sri Shivkumar (Chairman and Managing Director) I think it's about 770 rupees. Yeah.

Mr. Mervan Kotwal Okay.

Mr. SKM Sri Shivkumar (Chairman and Managing Director)

This is primarily.

Mr. Mervan Kotwal And how many tons of dry. Yes, please go ahead.

Mr. SKM Sri Shivkumar (Chairman and Managing Director) Yeah, primarily it is coming from exchange rate.

Mr. Mervan Kotwal Correct? Correct. First, I missed the first part. What led to this kind of margin contraction? What it just the increase in speed cost which will eventually pass on? Or were there some other factors too?

Mr. SKM Sri Shivkumar (Chairman and Managing Director) Yeah, of course. Now there are two important factors which are influencing the bottom line. Not the shell rate price anymore. Because we had more our own production in there. Only the increase in fee cost is the biggest. Yes. Substantial increase in soya. There is an increase in production. That is, I don't know. I believe it will take another three to six months time. Anything. I think we have to live with the increased feed cost at least for another two.

Moderator Okay. Thank you.

Mr. Mervan Kotwal Hello we can. I'll come back in. I'll come back in queue. Sure.

Board Room Sir, please drop the mate. We will give chance to other us. Thanks

Moderator Thank you so much. Thank you. We once again would like to remind the attendees that we are taking only two questions per attendee. If you have further questions, those can be sent via email and would be answered accordingly. Thank you. Going ahead, the next person we have with us is Mr. Rajesh We.

Mr. Rajesh

Yeah.

Modeartor Have you unmuted?

Mr. Rajesh Yes sir. Yeah. Thank you for the opportunity. So, given that we are running at almost full capacity utilization this year how should one really think of growth for the next odd, I mean three, four odd quarters in the year after that? Will it largely be price led? Is there some room left on pricing for us And I mean for this year I think margins you spoke about there being input cost pressures for the next few quarters. But beyond that what should we look at at the long term sustainable, you know, long term margin for the company?

Mr. SKM Sri Shivkumar (Chairman and Managing Director) So as as a continuity to the reply that I gave you gave it the previous question the rest of the quarters there is no room to increase our sale volume because of restriction in capacity. And bottom line would be influenced by two factors. One is the market price for international market price for egg products. Second most important factor is the feeding grating cost. I think I've answered both now the international prices seems to be quite stable. Maybe there will be some improvement in 2, 3/4 for egg white. There are signs of higher demand now but still the inventory position with all the processes is there. So, I don't see a very big change in the average realization except for the exchange rate fluctuation. So bottom line is clearly dependent on raw material prices but to a certain extent the depreciation of the rupees helping the increase in RA cost.

Mr. Rajesh Understood sir. And for next year again how should I look at growth for next year? I mean the capex that you said if it were to be announced, let's say the next board meeting, what timeline should one think of and then

Mr. SKM Sri Shivkumar (Chairman and Managing Director) year for implementation.

Mr. Rajesh Okay. Okay. Understood sir.

Mr. SKM Sri Shivkumar (Chairman and Managing Director)

So first two quarters you cannot expect next.

Mr. Rajesh Understood sir.

Moderator All right, Thank you so much for those questions. The next questions would be taken from Mr. Saurabh Dole.

Mr. Saurabh Dole. Yes. Yes, can you hear me?

Moderator Yes please.

Mr. Saurabh Dole Yeah sir, good evening. A couple of questions. One is I think you touched upon the branded products briefly sometime during the call. I just want to know what is. The contribution of branded products to the overall revenues as we speak today and what is the EBITDA margin that you earn from this particular vertical?

Mr. SKM Sri Shivkumar (Chairman and Managing Director) No, historically this has not been our operation. It was another company's operation. I am not sure but not like egg production. This is EBITDA will become slower but this volume to scale is much easier because the country is very big. The demand for eggs are very high. The future scope is very good but it's not a high margin like egg product. That much I can Say but I cannot put a number around it as. Because we don't have here take operation to give you a.

Mr. Saurabh Dole Okay, so if the margins are not, you know, closer to your aggregate overall margins, why exactly are we venturing into this one

Mr. SKM Sri Shivkumar (Chairman and Managing Director) Now As I said, the growth in egg powder market is. The potential to grow is quite limited compared to the growth potential of egg sales in India. And our company, as you know we are 100 dependents on export revenues.

So, to bring the in the long-term sustainable operations of the company strategically we are looking to balance the domestic revenue with the principal product as tech. So that is the direction we are working. In 10 years, time the company should have balanced export revenue. And that's the direction we are not totally thinking of. Where the biggest gain is, a consistent gain and sustainability is what is available.

Mr. Saurabh Dhole Got it. And sir, the other question I had was when you talked about changing raw material, you know, prices or feed prices. What do you mean, typically how does it get passed on to the customer? With what kind of lags do you think you'll be able to, you know, go back to the margins that you earlier used to have which have been damaged during this quarter because of rising feed prices?

Mr. SKM Sri Shivkumar (Chairman and Managing Director) Yeah, really. This is not a B2C2B company internationally. So, any increase in cost cannot be transferred to the customer, but it is driven by the competition and market prices courses internationally. Our pricing is not dependent on our cost.

Mr. Saurabh Dhole So, the contracts that you have with your customers do not have a feed cost as one of your inputs when you're pricing it?

Mr. SKM Sri Shivkumar (Chairman and Managing Director) No, we sell; they don't ask. We can say, but the peak cost is gone. Also increase the price. But that argument is going to justify an increase in price, whether they will buy at an increased price. It's, question of how much competition.

Mr. Saurabh Dhole Got it sir. Thank you so much. Thank you.

Moderator Thank you so much. For the rest of the people in the attendees, if you at all have any questions, we can have your hands raised and questions taken. So we have Mr. Sam, who's going ahead with the questions now.

Mr. Sam

Good evening, sir. It's really good to hear that SKM is getting into branded business very soon. You said in six months' time you're going to expand.

Mr. SKM Sri Shivkumar (Chairman and Managing Director) Six months' strategy will be ready.

Mr. Sam Okay.

Mr. SKM Sri Shivkumar (Chairman and Managing Director) It is new. Mr. Sam So that will be new. Totally a new revenue thing, right?

Mr. SKM Sri Shivkumar (Chairman and Managing Director) Yeah, yeah. For next year.

Mr. Sam So, it's additional revenue Wonderful. And similarly, you said and by the next board meeting you'll be putting up a plan for expansion of Egg Powder Crossing too, right?

Mr. SKM Sri Shivkumar (Chairman and Managing Director) Yes, yes.

Mr. Sam Thanks A lot for the input. So, my basically my question is about your customers in Japan. I think the last meeting you said you're going to open an office in Japan. Is it ready and are you getting new customers because of it? That is my first question. Second one is it's about Russia. How well are the exports to Russia going on? Is it sustained or is affected because of Russia, Ukraine, war etc.? Thank you.

Mr. SKM Sri Shivkumar (Chairman and Managing Director) I will first answer the Japanese question. We were expecting approval by June, July, but it is getting postponed by one or two months because we were asked to resubmit the

information. Some technical errors or I don't know. So already we have contracts established directly without our branch until September. So we will have this in place for the second half of the year, third and fourth quarters and in terms of expansion of business other than yes, we have inducted new customers without the branch it is there. We have one new customer who was very reluctant in the past. Now he's coming of course to be an opportunistic buyer. So, we have a new customer on board, but the impact of the branch has still not increased.

Mr. Sam Next is how the export was too.

Mr. SKM Sri Shivkumar (Chairman and Managing Director) Russia exports to Russia we are doing about 150 tons a month. Yes, this Russia war is long over. Russia, Ukraine war, it is not impacting us now. So we had this problem the last financial year but because of the Iran war of course there was trouble in delivery as contracted and we had to airship six to seven containers to satisfy the customer need and all these six containers were brought back from Dubai here we have just reached last month. So, we have to. So that is the biggest thing. But on the whole sales are going quite normal. Of course we have tried inducting; we do direct business and one distributor. Now we are trying to induct one more distributor which will also happen in the second half, third, and fourth quarter because we must iron out a few things with the existing distributor. So we are working aggressively with one more distributor. So, we. Who we will do direct who There is some discussion going on. So I am planning to visit Russia in October, November to put this investment. Mr. Sam. Hello Mr. Sam.

Mr. Sam Later let others ask.

Board Room Yeah, yeah. Thank you, Mr. Sir, for letting us move to the next attendees.

Moderator Sure, sir, thank you so much. We would request the next attendees to please raise your hand so that the questions can be raised and taken forward. At the moment we do not have any hands raised. So, we have Mr. Rajas with a follow up question. Should we take that via email or we take it here? Okay, sure, sir. Mr. Rajas, we are ready for your questions.

Mr. Rajas Again, thank you for the opportunity. I mean there's been a lot of you know, promoter buying in the. In the name of the last couple of quarters. Right. I mean, so try to get your thoughts on uh. What is this confidence that you see in the world? In the. In the. In business or in the company. And. And because that is reflecting in. In purchase of stock. So how should one really look at the outlook for the next couple of years? Obviously, there's growth that you've spoken about doing Capex as well. But given the. The commodity nature of a product, how should one really think of prices sustaining and the overall medium-term outlook for the company given that you know this, the promoter is exuding a lot of positive confidence in the business.

Mr. SKM Sri Shivkumar (Chairman and Managing Director) I don't know what you're referring to. I did buy something 2, 2/4 before I. But see you. I don't do things to influence the market. Okay.

Mr. Rajas I don't think. I think there's a misunderstanding sir. I was more coming from a longerterm perspective as to how should one think of the egg price is moving over a medium term two-to-three-year frame.

Mr. SKM Sri Shivkumar (Chairman and Managing Director) I cannot. Okay. I can guarantee you that full effort is going to increase. We top line continuously effort is there and we have the financial resources to do that. So, it has to be done in a structured way. We have a strategic goal of 2030. We are working on a strategic goal of 2035.

The growth plan is clearly defined and we are working in detail how to achieve this growth part. But it's too without everything definite. You know the backward integration has happened. When it is for sure it will come on board and expansion of the plant is happening. So, when the business plan is ready for the branding, production, distribution that will also be on board. How the market behaves is something that I do not know or why it behaves. But be sure we are making the best efforts to always improve the margin or protect the margin and improve the top line. I hope I have answered this. I really even myself I don't understand this top how it moves. Maybe some one day it goes up like that like crazy. One day it comes down. I have no clue why this is happening. If you are more knowledgeable, please tell me.

Mr. Rajas Certainly, we are also I think equally clueless as to what happens.

Mr. SKM Sri Shivkumar (Chairman and Managing Director) Yeah,

Mr. Rajas Certainly sir. No, no, I think. Thank you for answering all the questions. All the very best.

Board Room Thank you, Mr. Gacha. Sir If anybody next is there.

Moderator Yes sir. We have a few more hands raised. The next would-be Mr. Hiten Boricha.

Mr. Hiten Boricha Yeah. Good evening, sir. Am I audible?

Moderator Yes, sir.

Mr. Hiten Boricha So, my first question is on the capex. So, you mentioned of capex is going to come on the phase manner. First one is in FY-28 and FY-29. So, if you can give the capacities by end of FY-27 or 28. What will be an egg capacity and the powder capacity. And then I have a second question.

Mr. SKM Sri Shivkumar (Chairman and Managing Director) Can you send a mail will give you a quite a good.

Mr. Hiten Boricha I take that offline. No problem, sir. And so, my second question is on the strategy. The branded strategy you are talking about with one of my colleagues. So, my question is. So, we are spending 400 crores. So, what is the budget on this branding side? Sir, which we are going to launch. In next six months. What kind of investments we are looking there?

Mr. SKM Sri Shivkumar (Chairman and Managing Director) No, that will be clearly known by end of March. But these 400 crores are to enhance our own egg production capacity. Okay. It can serve as a supply base for ours. It is not Build in investment.

Mr. Hiten Boricha Okay. So the investments in brand is over and about. It's 400, right?

Mr. SKM Sri Shivkumar (Chairman and Managing Director) Yeah, that would be the business plan will be ready by end of March.

Mr. Hiten Boricha Okay, sir. No problem.

Board Room Yeah. Thank you. Can I go to next?

Moderator Sure, sir. Next Once again we have followed up questions from Mr. Gopal using the callin feature and Mr. Rajas. Sir, who would you want to go ahead with Sir?

Board Room Rajesh, I think we have answered many questions. Let us move to Mr. Gopal.

Moderator Mr. Gopal. Sure, sir.

Mr. Gopal You Hi You have to unmute me.

Moderator Sir, you are already unmuted.

Mr. Gopal Can you hear me?

Moderator Yes, sir, we could hear you.

Mr. Gopal My just observation is this quarter did we export less egg powder as compared to sequentially? Because if our realization was 770 compared to 722. I probably would assume that there is a. Probably a holding back on some powder to probably export it at higher realizations in the forthcoming quarters. Is that understanding, correct?

Mr. SKM Sri Shivkumar (Chairman and Managing Director) No. As I told at the beginning, we had about six to seven containers on sea which did not reach the destination in time. So, we had to bring it back. And then we have to do additional products and airlift them to Russia. So that was a disturbance that reduced the capacity utilization and export. There's a combination of that. It is not something that we are holding up sell in the next quarter because capacity is full. Except plenty of other units.

Mr. Gopal But will this be made up in the next quarter? In the coming quarter what we got back?

Mr. SKM Sri Shivkumar (Chairman and Managing Director) Yeah. We have. We are retesting and everything. And we have to judiciously reuse this product because it's well within the shelf life. So, this will be deployed in the sales of July, August.

Mr. Gopal Perfect. And just one other thing. Europe this year is facing the most severe summer that I think they have been for a very long time. I'm sure eventually this will impact the poultry farms over there because if you see most of the poultry farms over their free range and they keep birds out, etc. So, are we hopeful of there being more Europe opportunities? Probably towards the end of this financial year as the impact is gradually fell by their industry.

Mr. SKM Sri Shivkumar (Chairman and Managing Director) So, I would like to give an explanation which your understanding egg production, right Supply side definitely determines the input cost for the egg processing industry. But this consumer table egg demand also has a play in determining the prices for the processing industry which means the input cost for the egg processing Bura will get changed. If, yeah, but that does not give us any leverage. Short-term fluctuations did not give us any leverage to be more competitive in that market. If it is like a bird flu situation, then there is a real supply disruption of 3, 6 months, and 8 months. Then there is a strategic opportunity moving with like India summer comes, consumption goes down, price will go down. But that is not a strategic advantage to capture new markets or new customer opportunities. So, it's not that. Okay. Japan that is happening, this is happening is all very country specific operation that has an impact temporarily. But if it is a long problem of 6-month supply constrain 8 months then a business opportunity will which you can consider on a consistent basis. Otherwise these small movements will not have a real impact on our opportunity to sell more.

Mr. Gopal Right then finally, right sir. Yes, sir. So, one more question, can I add?

Mr. SKM Sri Shivkumar (Chairman and Managing Director) Yeah, please go ahead.

Mr. Gopal So, this realization of 770 that we saw for this quarter. Will it be fair to assume this realization at least in the quarter ahead? Right in the quarter in which we already are in.

Mr. SKM Sri Shivkumar (Chairman and Managing Director) Okay, I will give you another understanding. It also depends on the combination of products we are doing that quarter.

Okay, if a high-priced product sells more than a quarter, the average realization will go up if a lower price product moves. So, it's not something okay, it definitely will be above 700 for sure. But 720, 750. This is a combination depends on the volume of export which combination goes up during the quarter. So, it's not one average realization. It's multiple products, different combinations, and different markets. So, if you can only predict a range, not exactly whether it will be an uptrend or low trend and so on.

Mr. Gopal Fine, great. Sir, thank you so much and all the best, sir.

Mr. SKM Sri Shivkumar (Chairman and Managing Director) Thank you, Gopal. Thank you. Gopal sir. Okay. We can move next if any.

Moderator Sure, sir. So, we have Mr. Sam with follow up questions.

Mr. SKM Sri Shivkumar (Chairman and Managing Director) Yeah. Okay.

Mr. Sam Yeah. So, my question is about the easy Sheds. So, you've got a mega expansion plan on easy Sheds where you said about 20 lakh birds will be red. Right. So, what is the cost advantage of easy Sheds versus whatever sheds you have got now? How much is the cost savings per egg or something like that?

Mr. SKM Sri Shivkumar (Chairman and Managing Director) Okay. There will be an improvement in. I. don't want to give you any number, but I can tell you which are the areas of improvement. One is productivity is a little higher than open houses. Then consistent productivity is

there better than the open houses. And feed conservation per egg is a little more efficient. It's a combination of the three factors is giving us an advantage. Minimum 5% over the overall production cost.

Mr. Sam So minimum 5% margin extra thing you'll be getting per year.

Mr. SKM Sri Shivkumar (Chairman and Managing Director) Yes. Cost, not margin cost. Production cost reduction.

Mr. Sam Okay. So then. So, when are we going to complete these easy sheds? Because it's going to give a huge advantage. Whereas the bottom line is concerned. So when we'll be finishing all the easy sheds. Some issues already up and running or all are under construction.

Mr. SKM Sri Shivkumar (Chairman and Managing Director) No, the first four has been completed in the previous project. By November December 28th this will be complete.

Mr. Sam November December 28th. You'll be finishing all the easy Sheds.

Mr. SKM Sri Shivkumar (Chairman and Managing Director) Yes.

Mr. Sam Oh, thank you, sir. Thanks a lot.

Board Room Thanks. Thanks. Mr. Sam. Sir, can we move next if any?

Moderator Sure, sir. So, at the moment we do not have any hands raised.

Mr. SKM Sri Shivkumar (Chairman and Managing Director) Okay. Thank you. I'm available until 5:30 for another 10 minutes if somebody wants to raise it.

Moderator So, Mr. Rajesh had a few follow-up questions.

Mr. SKM Sri Shivkumar (Chairman and Managing Director) Please.

Moderator He does not have his hand raised now at the moment. But we can definitely check with him if at all we have time. Sir.

Mr. SKM Sri Shivkumar (Chairman and Managing Director) Yeah. Yeah. He was telling to ask.

Moderator Sure. Oh, just a second. I'm trying to look for him. Mr. Rajesh, sir, I think he has left the meeting.

Mr. SKM Sri Shivkumar (Chairman and Managing Director) Okay. No problem.

Moderator Okay. So Mr. Sam and Mr. Gopal. They have followed up questions.

Mr. SKM Sri Shivkumar (Chairman and Managing Director)

Sure. Please.

Moderator Sure. Mr. Sam, let's go ahead with you.

Mr. Sam This is related to the buying of SKM Best eggs buying in the company the last quarter. Is the transaction over as the company got SKM Best eggs. And is it? Are you basing your standard egg commercialization based on SKM Best egg strategy?

Mr. SKM Sri Shivkumar (Chairman and Managing Director) The transaction is complete. And the next question I didn't understand very clearly.

Mr. Sam No. You are talking about eggs sale as an additional revenue. Are you talking about SKM Best Eggs?

Mr. SKM Sri Shivkumar (Chairman and Managing Director) Yes, that's right. But the scaling with it will become much bigger. When we roll out the March business plan. The scale is now about 40,50 crore turnovers about 40,50 crore turnovers will get added to this year. But in terms of margin development growth, this will happen only from the next financial year.

Mr. Sam So, this year we can expect about 50 crores. From the revenue.

Mr. SKM Sri Shivkumar (Chairman and Managing Director) Yes, from the revenue, sir. 40,50 crores.

Mr. Sam Oh, that's great news. Thank you.

Mr. SKM Sri Shivkumar (Chairman and Managing Director) Is anybody else online? Sam wants. Okay, if nobody is there, I will make the closing remarks. Thank you so much all shareholders and I'm very happy to answer your queries or I'm also open to welcome suggestions from your applications and anything

that you want us to consider implementing in our company. You are most welcome. And this is the second meeting we are having, and we hope to get more and more professional as we go by. Thank you so much for attending and having confidence in the management for running your company. Thank you so much.

Moderator Thank you so much, sir. Once again, thank you so much everybody for joining us at this meeting. Thank you.