CLSEL - Chaman Lal Setia Exports Ltd. Share Price

Management's outlook for Chaman Lal Setia Exports Limited indicates a positive trajectory with growth anticipated for the upcoming year. For the financial year ending March 31, 2026, management has set a revenue target of INR 2,000 crores, reflecting continued expansion driven by new infrastructural capacities and an increase in customer acquisitions.

Key forward-looking points provided by management include:

1. Volume Growth: In FY25, sales volume increased by 11-12% year-over-year, with a target to maintain or exceed this growth rate in FY26.
2. New Capacities: The company has opened three new units in Karnal, currently operating at 60-70% capacity, which is expected to enhance revenue as efficiency improves.
3. Profitability Strategy: The strategy moving forward involves maintaining a gross margin between 9% to 14%, with flexibility to operate on lower margins temporarily to capture new customers and market share.
4. Infrastructure Expansion: Continued investments in production capacity and logistics are planned to ensure the company meets the growing demand in both domestic and international markets.
5. Market Dynamics: Management highlighted a reduction in ocean freight costs, which had previously impacted margins. Current freight rates have significantly decreased, potentially improving profitability.
6. Brand Development: Initiatives are underway to bolster the Maharani brand's presence in the domestic market, focusing on online selling platforms like Blinkit and Amazon, with future plans for broader distribution.
7. Customer Diversification: The company aims to expand its customer base internationally, participating in global exhibitions to attract new clients.

The management remains optimistic about capitalizing on market opportunities and reinforcing the company's position as a leading exporter in the rice industry.

Q&A Section Summary

Question 1: Pavan Kumar: "What is the volume growth for this particular year and quarter? Also, what is the volume of inventory at the end of the year?"
Rajeev Setia: "We experienced an 11-12% volume increase this year. As for the inventory, our rice stock was over 65,000 tons, while paddy was around 7,600 tons, valued at INR 430 crores."

Question 2: Aniket C.: "Can you specify what impacted our revenue and volume growth, particularly the regions affected?"
Ankit Setia: "Sales increased by INR 140 crores year-on-year, indicating no significant negative impact on revenue. However, transportation costs doubled last year, affecting profitability temporarily."

Question 3: Kewal Shah: "What's our plan for premium products like other rice brands offer?"
Rajeev Setia: "We primarily focus on private label packing and expanding our brand. While we aim for a 10% revenue growth, some low-margin products help us maintain this growth."

Question 4: Rajesh Mangal: "What is our future guidance for extra volume this year?"
Rajeev Setia: "We have introduced three new units in Karnal that are expected to operate at full capacity soon, significantly driving our revenue up from INR 140 crores this year."

Question 5: Hitesh Randhawa: "What kind of margins are we looking at moving forward?"
Ankit Setia: "We typically work on a margin of INR 10 per kilogram, but to onboard new customers, we may sacrifice this. Overall, our margins can fluctuate between 9% and 14% based on market conditions."

Question 6: Madhur Rathi: "Why has gross margin decreased while EBITDA remained stable?"
Rajeev Setia: "Ocean freight costs increased significantly, and while our gross margin fell, sales rose. Operating under diverse customer bases and flexible pricing allows us to maintain EBITDA at stable levels."

This summary captures the major questions and their detailed responses from the earnings call while adhering to the character limits.