CLSEL - Chaman Lal Setia Exports Ltd. Share Price

1. Question: With the recent floods in Punjab, where do you see paddy prices and the eventual impact on supply and procurement prices?

   Answer: Punjab has 32.5 lakh hectares for paddy, with flooding affecting 2.5 lakh hectares. Most areas are intact, and while prices initially escalated post-flooding, they stabilized within a week. The crop size is good this year, and low prices mean customers are now waiting for the right time to buy. Some customers have deferred orders, impacting revenue, but I expect sales to pick up soon.

2. Question: You mentioned customers are delaying orders; why are prices coming down?

   Answer: Prices are dictated by demand and supply. With increased cultivation and new rice varieties, prices trend down. Many customers wait for lower prices to purchase, leading to a reduced revenue for us. However, now that prices have stabilized, sales are picking up.

3. Question: What is your strategy to bring premium grade products to market, and when will we see benefits in margin and turnover?

   Answer: Currently, prices are low, offering a good chance for purchasing. With our substantial cash reserves, we can invest in high-quality rice. We aim for better margins through careful procurement and strategic selling. I believe that as prices recover, our profitability will also increase.

4. Question: You indicated Q2 performance would be stronger than Q1; why did it underperform?

   Answer: We had good demand outlook initially, but as prices fell and new crop reports indicated high yields, customers hesitated to buy. The late realization affected our sales this quarter, but we were confident at the time of the guidance.

5. Question: What were your domestic sales volumes for Q2, and how are they affecting your forecasts?

   Answer: For Q2, domestic volumes were 4,650 tons. Our forecasts consider both domestic and export markets. We aim for INR 1,500 crore in revenue as export demand stabilizes and we respond to market conditions.

6. Question: Can you confirm your expectations for INR 1,500 crore in revenue for FY26, which implies INR 900 crore in H2?

   Answer: Yes, I am confident in reaching INR 1,500 crore based on the order flow and the different new clients we are acquiring. We are prepared to meet this target with our current capacity and market strategies.

7. Question: What impact has the USD tariffs had on our exports to the US? Is demand recovering?

   Answer: The tariffs did cause customers to pause orders, but we've maintained supply. Demand is gradually coming back, even though some businesses are cautious due to ongoing geopolitical issues.

8. Question: What has your strategy been in recent months in relation to rice procurement and inventory management?

   Answer: Our strategy focuses on acquiring rice during this lower price period. We work on balancing inventory by selling older stock while also preparing for the new harvest. We've been leveraging our financial strength to maintain desirable stock.

9. Question: Has there been any impact from geopolitical challenges or tariffs on overall demand?

   Answer: Yes, geopolitical issues have created uncertainty, causing customers to slow purchases. However, they ultimately need rice products, and I remain optimistic that demand will rebound significantly when uncertainties resolve.

10. Question: How do you view the current inventory levels compared to historical data?

Answer: Inventory levels are managed based on our sales strategy. We are currently maintaining a reasonable level to manage orders effectively amidst fluctuating prices and demand, aiming for profitability and market readiness.

These questions and answers highlight the company's strategy during challenging market conditions while providing insights into expected revenue and demand trends.