Apex Frozen Foods Limited (APEX) Earnings Call Transcript

Ladies and gentlemen, good day, and welcome to the Apex Frozen Foods Limited Q2 and H1 FY '26 Earnings Conference Call. [Operator Instructions] Please note that this conference is being recorded. I will now hand the conference over to Mr. Suyash Samant from Stellar IR Advisors for opening remarks. Thank you, and over to you, Suyash.

Thank you. Good morning, everyone, and thank you for joining us today. We have with us the senior management team of Apex Frozen Foods Limited, Mr. Chowdary, Karuturi, Managing Director and Chief Financial Officer; and Mr. Durga Prasad, Senior Manager, Accounts, who will represent Apex Frozen Foods Limited on the call. The management will be sharing the key operating and financial highlights for the quarter and half year ended 30th September 2025, followed by a question-and-answer session. Please note that this call may contain some of the forward-looking statements, which are completely based upon the company's beliefs, opinions and expectations as of today. These statements are not the guarantee of the company's future performance and involve unforeseen risks and uncertainties. The company also undertakes no obligation to update any forward-looking statements to reflect developments that occur after the statement is made. I now hand over the conference to Mr. Chowdary, Karuturi. Thank you, and over to you, sir.

Yes. Thank you, Suyash. Good morning, everyone, and thank you for joining us on this investor call for Q2 FY '26. We have uploaded the investor presentation on the website of the stock exchanges, and we do hope that you had a chance to go through it. To begin with, we would like to reiterate our diversification strategy that we have been pursuing over the past few years. In FY '22, for example, our non-U.S. export business accounted for roughly around 24%, and this has now expanded to nearly 50% in the first half of FY '26. We aim to keep diversifying our client base across geographies to mitigate the risk of dependence on any one single region. That said, the U.S. continues to remain an important market, both for India as a whole and for our company also. Now coming to the financial performance in Q2 of FY '26. The net revenue rose by 19% year-on-year to INR 238 crores, driven mainly by higher realizations at INR 870 per kilo, marking a 25% increase year-on-year. The higher realization was mainly on account of firm global shrimp prices along with favorable exchange rate movements. Now sales volumes, of course, have declined marginally from 2,710 metric tonnes in Q2 last year to 2,606 metric tonnes in Q2 of FY '26, mainly on account of the U.S. tariff-linked trade uncertainties. While sales to the U.S. declined in Q2 FY '26, the European Union market, excluding the United Kingdom, continued the growth momentum with year-on-year sales growth of 18% and quarter-on-quarter sales growth of 21% in Q2 of FY '26. The non-U.S. business share increased to 56% in Q2 FY '25 -- sorry, FY '26, I'm sorry. Coming to the profitability. In Q2 FY '26, the gross profit increased by 76% year-on-year and 9% quarter-on-quarter to INR 96 crores with a gross margin of 39%. The margin improved by 1,200 bps year-on-year and 552 bps quarter-on-quarter, was supported by growth in realization and stable farm gate prices. In Q2 of FY '26, the average shrimp purchase price for the company was around INR 321 per kilo, which was flat year-on-year and quarter-on-quarter. The EBITDA grew 284% year-on-year and almost flat quarter-on-quarter to INR 18 crores, forming an EBITDA margin of 7.2% from 2.3% in Q2 FY '26. Lower finance costs and depreciation aided further growth in profit after tax, which increased to INR 12 crores in Q2 of FY '26 from a loss of INR 1.7 crores in Q2 last year and INR 9 crores in Q1 of FY '26. Now with regards to the first half of FY '26 financial performance, our net revenue grew 29% year-on-year to INR 497 crores versus INR 386 crores last year. Gross profit increased 60% year-on-year to INR 184 crores with a gross margin of 36% versus 30% for last year. EBITDA grew 130% year-on-year to INR 36 crores with EBITDA margin of 7.1% versus 4% of last year. Profit after tax increased 877% year-on-year to INR 21 crores from INR 2 crores in H1 of FY '25. In terms of balance sheet, it continues to remain strong with our total borrowings reduced significantly over the past 3 years from INR 167 crores as of March 2022 to INR 41 crores as of September 2025. In the first half of FY '26, the company repaid almost INR 30 crores in debt, bringing down the short-term borrowings to INR 40 crores and a long term to nearly INR 1 crore as of September '25. Our net debt-to-equity ratio has strengthened from 0.34x as of March 2022 to 0.05x as of September 2025, reflecting our sustained focus on debt reduction and balance sheet strength, improved profitability, lower working capital requirements and depreciation. Our cash flow from operations have grown to INR 46 crores in first half of FY '26 versus INR 7.3 crores in first half of FY '25. Now to conclude with, I would like to reiterate that with a lot of the headwinds in the previous quarters for a couple of years playing out, we continue to focus on the basics, like strengthening of our balance sheet, diversifying our revenues mainly on account of markets and continuing to ensure that we are ready for the markets as the overall situation improves. We are hopeful of a fruitful outcome from the ongoing India-U.S. trade deal talks and look forward to improving export trade with U.S. as well as other major markets like European Union, where we have been informed that the India, EU, FDA is also likely to get concluded very soon. So we are watching the developments carefully and continuing our endeavor to take the right steps towards sustainable business development and growth. With that, we can now open the floor for question-and-answer session. Thank you very much.

[Operator Instructions] The first question comes from the line of Nitin Awasthi from InCred Research.

I just wanted to understand the developments on the Europe front. Our facility itself was made for the European market with -- in mind to enter the European market. However, there were a lot of barriers to enter that market, including approvals not given and other quantitative, nonquantitative barriers. Now that India, EU seem to be on the right track for trade, have a lot of those barriers gone off? Or are there still some barriers, which stand in your way?

As far as the barriers are concerned, definitely, the EU market will continue to have its own set of regulations and stringent checks and measures -- checks in place, sorry, which obviously will just maybe kind of delay the time required for shipping a particular order or any of those purchase orders what we have. But as far as the general barriers, which are there, as far as restrictions, which are there, they have all been removed. And like you mentioned, our new facility, which has been also conceived -- made, which was created 5 years ago, was supposed to be significantly utilized for this market, but because of that major issue, which got resolved a few months ago, especially I mean during the Q2. And now we are -- as we are also taking up additional orders for ready-to-eat also from that market. So that really -- it is the -- a big hindrance for our business to EU has been removed. But however, the regular systems, which are in place for the EU market in general, which make it a little bit tough to -- I mean, it's not really tough. It's just that the time taken for order delivery would be more in the case of EU compared to other markets because of the testing protocols involved prior to shipment and all that. So otherwise, yes, the major barriers have already been totally -- we have overcome all those barriers, thanks to the efforts by Government of India.

With that in view, are the regulations currently for approving our exports to EU in line with Vietnam? With that, what I'm trying to understand is Vietnam is currently the largest exporter to EU. And of course, India now has an opportunity to make a mark there; however, our -- even the stringent -- checks were quite stringent on Indian shipments compared to Vietnam, and that also was a hindrance in a way. So is at least the hindrance reduced to the level of Vietnam? Or is it still more to go?

Okay. There are 2 -- Mr. Nitin, there are 2 parts here. One is the general entry barrier, which was there because they were holding up approvals of the facilities, that has been overcome. Now when you are making comparison to another market like Vietnam, we need to acknowledge the fact that Vietnam has an FDA free trade agreement in place for almost 2 years, this is the third year, I guess. And they are at 0% tariff or duty, the Vietnam shrimp products into the European Union are at 0% for raw -- ready-to-cook -- sorry, ready-to-cook products, while we are at 4.3%. And the -- also their testing at the destination on their goods is at 10%, while the testing on Indian consignments to the European Union are at 50%. So these 2 major topics, which are there. One is that tariff barrier and the other is non-tariff barrier as far as the entry of consignments into the EU is concerned, that is being addressed right now as we speak in the negotiations of the India, EU, FDA talks. And the soonest that -- we have been given the information, as I mentioned in the opening remarks, that it is going to get concluded very soon, most likely by the end of this year. So hope -- and subsequently, whatever the due process which is -- which will be taken up within the EU among all its nations, then we should be on par with the country or the other markets, which you are mentioning about of having like the tariff barrier of that 4.3% additional on our ready-to-cook and 7.2% on the ready-to-eat differences there. And also the testing upon arrival of shrimp consignments from India currently at 50%, which is a non-tariff barrier, all these are being addressed right now. So once the FDA is done by the end of this year, that will totally keep us on par. I think that should answer your question. So we are all waiting for the FDA to even have these 1 or 2 tariff as well as non-tariff barriers to totally be eliminated for the Indian shrimp consignments.

We take the next question from the line of Bala Murali Krishna from Oman Investment Advisors.

Congratulations on a good set of numbers. Sir, the question is regarding the new markets, which are opened like Australia and also some Russian market approvals also we have received. So what is the potential of those markets? And do we have any plans to export to those markets?

Yes. We are, of course, expanding, as mentioned earlier in the opening remarks. We are, of course, expanding to other markets, including Russia. And now Australia, they have recently approved after a long gap, almost a decade, more than a decade. There were restrictions with regard to Australia for shrimp from India, which -- those restrictions have been eased, and we are looking forward for -- to starting the shipments again with Australia. In the case of Russia, also, they have -- we have -- already are in the process of getting the approvals done as they are doing it in phases. Russia also, there were similar issues like EU. But in the present scenario, we do have the word even from the Honorable Prime Minister of the country, Mr. Narendra Modi also that it's being taken up soon, and he is going to have an interaction even with the President and the government later. So that they are going to clear up the proposals for -- sorry, all the pending approvals for all the shrimp processing factories. So we are -- of course, we are looking forward for doing -- increasing our sales to other markets as that answers. We have already started doing for Canada. I mean, we are increasing that Canadian business. And now Russian approval, we are looking -- awaiting. We have already met a few customers, and we look forward for exploiting the potential, which is there in that market because we already produce those products, which the Russian market currently imports for other markets already for U.S. and Europe. So it's very easy for us to do -- just to get the regulatory approval, which is being done right now as the negotiations or discussions between the Indian government and the Russian government are happening at a very high level. That I can only comment to that point with regard to Russia. So yes, we are definitely looking ahead. And I think we should be able to start, if not in Q3, by at least Q4, we should be able to start for Russia and Australia, for sure, to answer your question.

So how bigger these markets are like from the [indiscernible].

The potential for Australia itself is quite significant. In fact, the company was doing a good chunk of business, a good part of business in the past. I mean this was even before the company became private. So let us say, before 2012, around 2012, '13. Before that time, we used to do quite a lot of business with Australia, and there is a lot of potential in Australia. So we can definitely -- at least to start with, we can easily take it up in the first year at 5% and grow it to almost 10% of the overall business on a percentile basis as far as Australia is concerned. In Russia, there is a good potential. And both the markets, which you have mentioned because of various restrictions or these hurdles, which we were having, we were -- our market share has been taken over by countries like Vietnam or even Ecuador to a certain extent and Indonesia. And with these hurdles being -- or hindrances being removed or eliminated in the due course of time in the future, we are very confident that we will be able to gain back our business, our market into those -- both those markets. I mean, in Australia -- I mean, Russia, it will be a first time for us. But Australia, we have -- there was a pause of business with them for more than a decade since they stopped Indian consignments. But we -- it's a good -- very good market, both of them. Australia, definitely, it's much bigger. Russia, of course, even though this is the first time we do, we did make studies, and we do have an understanding of the market potential there. Yes, so both of them are very important -- will be important markets going forward to be keeping it, let us say, on par with U.K. and even higher than it will be almost as far as Canada is concerned, Australia and Canada are pretty much kind of similar markets.

Okay. And then, these farm gate pricing, how is that trend now as of now because earlier there is a drop because of tariff. So is there any improvement in the farm gate prices or...

They have been stable. The farm gate prices have been quite stable for the past 3 to 4 months, almost since April, almost it's been very stable. In between, of course, there will be here and there a little bit of spikes, which would be there during some gaps in supply. But the primary producers are also quite comfortable at these levels, and they have been -- the prices have been very stable actually. And in fact, since we do a very small part of the seed business on the hatchery front, we also have seen a lot of interest in the seed booking and they are taking the shrimp seed and, definitely, farmers also have been going for stockings. It's just that they are changing their strategy of the sizes, which they used to produce. Earlier, they used to produce mainly the smaller sizes, very small sizes and which mostly used to cater to, let us say, China, for example, the Chinese market. But now they are looking at more of a medium-sized target as their first harvest. And that's more of an individual plan of respective farmers or the primary producers. And -- but overall, the confidence at the farm level is good, minus any chaos or any issue, which would be created if any climatic issues are there. Like, for example, there was some cyclone effect last month and some of the farms may get affected. But overall, everybody are -- currently, the sentiment is good as far as the farming producers are -- farmers are concerned.

Okay, sir. And lastly, on the raw material cost, this quarter we have a reduction in raw material cost, but that is not reflecting in the EBITDA. The other expenses are also increased quarter-on-quarter by [indiscernible] almost 100% by year-on-year. So what is the reason for this spike in other expenses? It looks like the raw material advantage, this price advantage can really translate to half year.

No. See, the raw material price, of course, was, in fact, lesser for the current quarter. It was INR 321 on average. Again, that -- I mean, for the -- of course, definitely, it is a little bit higher. If we look at on a half yearly basis, this year, it is higher by INR 10 compared to last year. One of the major reasons why this year, the farmers mood is also in a much better way compared to last year is, these prices have been very stable and not going low and kind of affecting them as far as the raw material prices are concerned. Now your question related to the other income -- sorry, other expenses, I'm sorry. One of the most important points with regard to the other expenses, which you also need to understand is that our tariffs have increased the tariff, which you are aware, which is being paid in the case of U.S. market. The 50% tariff that obviously gets factored. I mean, that will be part of the other expenses. One of the reasons why the other expenses jump is there. So that is not -- so by the way, the same tariff is also being compensated by the customers, which I think we have already informed to you during Q1 also -- I mean, quarter 1 also. So the other expenses increase is mainly in relation to the tariffs, especially. Otherwise, most of our costs have actually come down comparatively compared to the previous quarter -- last quarter. And it's the -- overall gross profit as well as the EBITDA margin also, if we look at it, it definitely has improved compared to the previous quarter or even on quarter-on-quarter basis. If you see even last year year-on-year basis also, it definitely has improved. The other part is -- the other expenses part is mainly due to the tariff component, which you can see has significantly increased in Q1 as well as Q2 also of this year of FY '26. So mainly on the tariff part for the U.S. market. Obviously, as we grow our sales to other markets, where there are -- the tariff issues are not there. So that will get negated to that much extent. So with having a stable or firm selling prices from the other markets also and this stable and good farm gate prices, our margins should maintain in a very comfortable manner.

[Operator Instructions] We take the next question from the line of Sharan from SBS Family Office.

Since our capacity utilization is only 30%, so how are you thinking to unlock this? Or what could be the factors that could drive for unlocking this capacity utilization going forward, let's say, in another 2, 3 years?

Yes, main -- of course, the capacity as such, utilization has been on the lower side. But now compared to last year, definitely, this year, it has been in a much better manner. But we are focusing on growing our -- of course, as we diversify not only in markets, but also our customers in the existing markets. We are confident that we will be ramping up our utilization. It is true that we did make some changes within the operations and even consolidated some of the operations during the Q2, but that is just a stand-alone one-off case where we have been focused more on operating in 1 facility and trying to produce more out of that, so that we can bring down our overall costs. But going forward, with this diversified diversification in markets and adding up more to the order book, we do plan to increase our -- utilization of our capacity even further and rather take it up to 50% minimum over the next 1 year for sure. That is the idea. So which actually we have been planning this year also to take it up to almost 14,000 to 15,000 metric tonnes in this year. But of course, in the July -- in Q2 -- sorry, there was -- in the beginning of Q2, there was certain issues with regard to supply on certain sizes. So we couldn't take up that. But next -- going into the future years, definitely, we look forward to increasing the capacity utilization even further, aided by these diversification plans, especially.

Okay. Just a follow-up to this. If we unlock this capacity utilization ideally rough -- so back of the paper calculation, it means that my -- our revenue should be touching somewhere around INR 2,400 crores. I mean that's the ideal, let's say, if I reach up to the 80% or 85% of the capacity utilization, right?

Two factors here is, with regard to capacity utilization, we would be more focusing on producing more volumes. Now whether that would entirely bring out the revenue number is a different question because, as you know, the revenue is determined based on our realization in dollar terms, also in the rupee terms. As you also notice, the foreign exchange gains, especially with regard to the depreciating rupee in the past 2 quarters have definitely helped us to maintain on the revenue. And yes, however, we all need to acknowledge the fact here that the more expensive a product becomes, it cannot sustain for a long period at that level. So there would be corrections, whether it is, for example, even these tariff -- these current selling prices, which are there for U.S. market, especially with the tariffs, whether they can sustain for a prolonged period, that is definitely questionable, obviously. And the sooner the tariffs are removed or reduced, it should be encouraging more volume. That's what we are looking forward to. So I wouldn't exactly be able to give you a number -- I mean, an idea on the number of -- amount of revenue, but rather, we would be focused on our volume growth for sure. And in the present scenario of between INR 700, INR 800 per kilo and even further value addition as we develop, even taking it up to INR 900, INR 1,000 per kilo on realization front, definitely, the absolute revenue will be in relation to that. But we -- our focus mainly will be on growing the volumes, especially. But if you ask me today, today, it is not appropriate because tariffs are also playing a big role in the way the revenue is placed in today's scenario, which we all have to acknowledge. So -- but as these tariffs get removed, which eventually have to be reduced or removed because for us, everybody, so that the consumers can continue to consume the products and buy these products. And that way, we can also grow volumes. I hope -- I'm sorry, but we will not be giving you much of idea of numbers...

But I'm not asking -- I was just asking from a, let's say, from a 2, 3 years perspective, taking 10 years average rate and then you can just help us in understanding the potential. It's just about -- I mean, measuring the potential of the current capacity, if it shoots the capacity utilization growth, what would be the potential revenue is what I was trying to...

Maximum, I would only -- we would only be able to give you an idea that if we are able to achieve a 70% utilization of our capacity -- current capacity, we should be looking at around 20,000 metric tonnes in the due course, in the next few years, right? So that is -- and usually 80%, 85% is the max out of any fixed capacity we have. Beyond that, it is not possible to do. I mean it's not -- it's challenging. It's not in the interest of the machinery, which is there. So that is what I can -- we can inform you at this time. But definitely, based on that, the revenue would be there accordingly. But I've just gave you -- we just gave you an idea of how -- to what level we can do our volume going into the future years when we touch up around 70% of our -- roughly going to 18,000, 20,000 metric tonnes in the next 2 to 3 years, this is definitely a sustained volume growth. It should be sustained also. It's not like we just do it in 1 quarter or do it in 1 year and then, again, it comes down. That is not the idea. So we want to have a sustainable growth. In fact, we have had issues over the past -- last year, especially, which we want to come out of such scenarios. Now with this diversification plans, definitely, it is going to help, yes.

Okay. Just last question from my end. So if this, let's say, the capacity utilization keeps on going up and reaches to the levels whatever you are mentioning in 2, 3 years, ideally, the current margins, whatever I'm seeing should also be incremental -- it will be incremental, right? I mean, what is the steady state margins you will be getting in this business is what I want to know?

See, in the present -- I mean, okay, with regard to the margins, especially if we look at it, we were doing -- earlier, we used to do an EBITDA level of 10% plus. It was always double digit. But then after the -- in the past 1 to 2 years, definitely, our margins have contracted for various reasons, also for certain provisions, which were made, especially in the past 2 years for some legacy-related issues, whatever. We -- definitely, with the growth in the value terms, obviously, a 10% to 12% margin is doable for sure on an EBITDA level as long as the realization also continues to grow. That is -- and we cannot expect higher realizations on commodity level products or the baseline products where the volume growth will be there in a good way. But as we definitely increase our value-added output, which is just not our focus, even Government of India today, especially, even to the level of the Honorable Prime Minister is asking us to grow the value-added component more than that component. So that definitely would be not only just enhancing our -- on revenue numbers, but revenue on sales alone, but it will also be enhancing our margin so that we can have a stable 10%, 12% level, which was there. It's not like something, which we did not have in the past. So it's not something -- we missed on the past few years, it was a little bit challenging for various issues. But those, as we overcome and all these positive news, which are there for our industry and, especially, from the markets, which we deal with, definitely, we should be looking in that direction.

Okay. Okay. Ideally, sir, I mean, everything is in the place, it's just that we have to wait for the revenue to come. Let's just see.

We take the next question from the line of Sidharth Srikumar Kumar from iThought PMS.

So my question is like in H2 FY '26, the realization increased by 22 percentage compared to H1 FY '25, right?

Sorry, can you -- you said the -- can you repeat, I'm sorry?

So the H1 FY '26 realization is higher by 22 percentage compared to the last half year of FY '24, right?

Yes.

So out of that how much of that is due to increase in tariffs and, let's say, the dollar depreciation -- sorry, the rupee depreciation?

Okay. See, with regard to tariffs, you need to understand currently, especially in the first quarter, we were mostly paying 10% tariffs in the first -- during the first quarter. But during the second quarter, actually, I think pretty much from the middle of -- almost from the beginning of second quarter, even though the tariffs were announced at 50% from August onwards, that definitely affected some of our shipments in July also. And obviously, it's a blend in the first half of the current fiscal year, where the tariff component is -- 1 minute, sorry. That was -- the tariff alone was -- it will be roughly around -- on the sales, it will be around 9 -- I'm sorry, it is almost -- it's a blend. Only the tariff component was around 9%. I mean that is because we have diversified our markets, and we are not doing everything anymore on U.S. So only on the tariff between the 2 quarters, we -- on an absolute number basis, we had to pay around INR 39 crores, roughly -- around INR 40 crores, sorry. So that is -- which would be translating to roughly around 9%, I guess. Yes, sorry, 8.5% on the tariffs alone. Now rupee depreciation in the previous quarter and, I mean, compared to last quarter, of course -- sorry, last year first half and this year's first half, we did have definitely a good -- in our advantage, in the industry's advantage as well as the company's advantage, definitely, we did have a good depreciation of rupee, which helped us. So that is to the extent of almost we had around -- I think, we roughly had around INR 5 to INR 6 compared to last year. But the most important point here is with regard to revenue, the sales -- the unit value in dollar terms without the tariff also was very stable compared to last year. The main important part is this that the prices -- the selling prices without the tariff also have remained quite stable this year compared to last year. So overall, the demand in the market from various countries, I mean, U.S.A., of course, continuing, that definitely helped us to have a good realization in dollar terms as well as, of course, supported by the foreign exchange, definitely, it helped us in the rupee terms also.

Understood. So you said to an earlier participant that, let's say, you see potential of doing up to 10 percentage of your current business in Australia. I mean, I don't know if that is what you meant?

Yes. We said there is a potential to grow till 10% of our business over a period of time. That was what I said when the earlier participant was specifically asking what exactly is the potential there with the market of -- for the market of Australia. That's what he was specifically asking. And I was telling we could...

10% for...

10% of our business, which we could take it up. And we were telling that -- I was telling that we could grow it till that level because it's a very good market, which we had in the past, but we lost it over the past decade. And now we are looking forward to regain it back soon.

We take the next question from the line of Unni from Geojit Investment Limited.

I have 2 questions. So one is the continuation from the earlier participant. So the tariff impact, if I want to understand. In other expenses, how much is the tariff amount, if you can bifurcate, it would be helpful.

In our case, for the half year, it was INR 40 crores.

INR 40 crores, right. And the second question is, you had mentioned in the previous call, right, if we get the approval from EU, for the new facility, there is the RTE facilities, around 2,500 tonnes of additional volumes you expect. So you continue with that expectation, maintain that expectation?

I'm sorry, can you repeat this question, please? I'm sorry.

The RTE facility for the -- since we got the approval from EU, how much would be the volume -- additional volume you expect? In the previous calls, you mentioned about 2,500 additional volume. So if you maintain that, that is what I'm asking.

Currently, in the volume, what we have -- so far we have done currently in our sales for the first half of roughly, we have -- so far, we have done around 5,600 metric tonnes; out of which currently the EU market is around 46%. So we are, in fact, growing it even further. We, in fact, are -- we have good set of orders for that market, except for certain regulatory hindrances, which will be there for that market while doing shipments. But otherwise, we look forward to grow it even further. And definitely, in FY '26, we will be doing the highest amount of volume. In volume terms, we'll be able to do highest amount of sales with -- to the EU market for sure, as we have engaged with a lot of customers in a diversified way in the entire European Union market. So yes, we are -- currently, already, we are at doing -- currently, we are at 2,300 metric tonnes already as far as EU is concerned.

Sorry, I'm specifically asking for the RTE facility that you recently got...

See, with this RTE, we have -- yes, RTE, we will be able to do it for sure, which will be more possible in the next fiscal year because, as you know, we have received the approval and we have already started doing RTC in the end of Q2. And RTE, we have taken up orders now, and we are continuing to take more of those RTE orders for the EU market in Q3 and Q4. The impact of the RTE we should be able to see more of it towards from next year because the full year, we will be able to take it up -- sorry, we'll be able to exploit that potential to the fullest next year.

So how much -- if you can give a guidance for how much it is -- since you have mentioned like you have already -- the customers you have already, so how much it would be in terms of volumes from this RTE facility?

From this -- I mean, this year, of course, it -- we should be doing around 1,000 metric tonnes max, high side, on a higher side, which tentatively in the current financial year, roughly, we should be able to do around 1,000. But next year, we should be -- only in the RTE, we should be looking at 2,000 to 2,500 metric tonnes as stated in the earlier call.