20 Microns Limited — Q4 FY26

20 Microns Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=9j_GiYH73ok Published: 3 weeks ago

0:00 Good afternoon ladies and gentlemen. Hope I'm audible. 0:07 7 seconds Mr. I'm audible. 0:12 12 seconds Very warm welcome to the Q4 FY26 earnings conference call of 20 microns limited hosted by business with 0:20 20 seconds advisers. I am Mutukar from Wisdom Advisers and it is a pleasure to welcome you all to today's call. 0:28 28 seconds We sincerely appreciate your participation and continued interest in the company. 0:34 34 seconds Joining us today from the management team are Akil Parik, chief executive officer and managing director, Nihad 0:42 42 seconds Balooj, group chief finance officer and Pran Sha, senior finance controller. As 0:50 50 seconds a reminder, this conference call is being recorded. This audio video recording of the call will be made available on the company's website 0:59 59 seconds shortly after the session concludes along with the transcript in due course. 1:04 1 minute, 4 seconds All participants will remain in listenonly mode during the management commentary. 1:09 1 minute, 9 seconds Following the management's opening remarks, we will open the floor for an interactive question and answer session. 1:17 1 minute, 17 seconds Before we begin, I would like to draw your attention to the customary safe harbor statement. 1:24 1 minute, 24 seconds Certain statements made during this call may be forward-looking in nature and are subject to risk and uncertainties. 1:31 1 minute, 31 seconds Actual results may differ materially from those expressed or implied. 1:36 1 minute, 36 seconds The company undertakes no obligation to publicly update these statements based on subsequent developments or events. 1:45 1 minute, 45 seconds With that, I would now like to hand over the call to Mr. Nihad Baluch for his opening remarks. Over to you sir. 1:57 1 minute, 57 seconds Good evening everyone. On behalf of the whole 20 micron family and the management, we thank you all for joining the Q4 and FI26 earning discussion. 2:07 2 minutes, 7 seconds 20 Micron Limited is among India's pariner and leading player in industrial mineral and submechanized mineral. The 2:16 2 minutes, 16 seconds company's foundation was built on deep expertise in mechanization technology and mineral processing. Financial year 26. 2:26 2 minutes, 26 seconds The financial year 26 was an year of desilence and strategic transition for the company. 2:34 2 minutes, 34 seconds Despite restrained demand condition in the key user industry particularly pains and quoting along with prolonged monsoon 2:42 2 minutes, 42 seconds impact and geopolitical uncertaintities the company delivered stable growth with the healthy profitability. 2:49 2 minutes, 49 seconds What is particularly important is that business continue to the transition from the transitional industrial mineral player into a diversified specialty 2:58 2 minutes, 58 seconds material and functional additive platform. 3:02 3 minutes, 2 seconds Over the last several years, the management has consistently focused on increasing the value added products, 3:10 3 minutes, 10 seconds improvising of operating efficiencies, strengthening international presence, improving capital productivity and 3:18 3 minutes, 18 seconds building a more resile and scalable business model. 3:22 3 minutes, 22 seconds One of our key differentiators and the strength is our dedicated R&D and product application center which allows us to work closely with our customer to develop their customized solution. 3:34 3 minutes, 34 seconds This strategic trans transition is now becoming visible in the company's financial 3:41 3 minutes, 41 seconds profile. I'll give you a glimpse of the performance before we move to the other slides. Over the last five years, the 3:48 3 minutes, 48 seconds revenue has nearly been doubled. The PAT has almost tripled. Leverage has reduced significantly. Operating cash flows and 3:57 3 minutes, 57 seconds have operating cash flows have strengthened materially and the company is creating a strong platform for the next growth cycle. 4:06 4 minutes, 6 seconds About the 100 cr capex plan announced by the company should be viewed as a strategic growth accelerator rather than a capacity expansion. resides. 4:17 4 minutes, 17 seconds This in this the investment is aimed at strengthening the specialy product capabilities, improving operational productivity, enhancing backward 4:25 4 minutes, 25 seconds integration, scaling international operations and improving long-term margin profile. Going forward, the 4:33 4 minutes, 33 seconds company believes that next phase of the growth will be driven by the speciality and high performance material, polymer and rubber applications, 4:41 4 minutes, 41 seconds export expansions and construction chemicals as well as the global sourcing diversification trends. Importantly, the 4:49 4 minutes, 49 seconds balance sheet remains extremely healthy providing flexibility to execute growth plans while maintaining the financial 4:56 4 minutes, 56 seconds disciplines. So let's have a quick look to the next slides. 5:06 5 minutes, 6 seconds Despite sector se sectoral demand modernization and macroeconomic uncertaintities, the company delivered healthy revenue along with the stable 5:14 5 minutes, 14 seconds profitability. The quarter was supposed to be operational efficiency, discipline pricing, lower finance cost and 5:23 5 minutes, 23 seconds improving contribution for value added products. So if you see the graph the 5:29 5 minutes, 29 seconds revenue growth was about 14.8% YI linked by recovery in the paint and the 5:36 5 minutes, 36 seconds polymer rubber demands. If you see the sequential growth this indicator is around 21.5% stronger quarter momentum 5:45 5 minutes, 45 seconds IA margin remains stable about about 12% reflecting the pricing discipline 5:51 5 minutes, 51 seconds whereas the IBA grew at 9.6% 6% Y and Y to 31.8 cover 5:59 5 minutes, 59 seconds PAD grew 15.6% YI and 17.6% supported by lower finance cost and operational efficiencies. 6:08 6 minutes, 8 seconds So healthy revenue recovery was stable profitability demonstrate resilience of the business model. 6:15 6 minutes, 15 seconds I'll take you to the P&L summary. 6:20 6 minutes, 20 seconds If we analyze the summary, we see that the PBT growth ahead of the revenue indicates operating leverage improvement. Lower finance cost has 6:28 6 minutes, 28 seconds reduced earning pressure. Margins remain stable despite industry softness. 6:34 6 minutes, 34 seconds company avoided aggressive low margin business which contributed to PBT increase by 28% 6:43 6 minutes, 43 seconds YI are outperforming the revenue growth and the EPS increased to 4.98 reflecting 6:49 6 minutes, 49 seconds the improved profitability the performance remained resilient 6:57 6 minutes, 57 seconds despite weak demand prolonged monsoon impact on post Diwali tech and lastly geopolitical uncertaintities 7:05 7 minutes, 5 seconds Full year revenue crossed 953 cr despite slow quarters. Ebita maintained margins 7:12 7 minutes, 12 seconds remained stable at two 12.9% supported by better product mix. Over the last five years revenue nearly doubled while profits almost tripled. 7:23 7 minutes, 23 seconds So mainly our capex plan was in focus on capacity expansion phase wise in mining and infrastructure sustainability 7:32 7 minutes, 32 seconds initiatives, research and development in AI in processes. 7:45 7 minutes, 45 seconds The capex and future strategy our 100 cr keex equally nears about 16% 7:52 7 minutes, 52 seconds of the current market capitalization the distribution of the capex would have 40% of allocation towards Malaysian 8:01 8 minutes, 1 second operations we assume that considering the next three-year plan with the capex around 8:08 8 minutes, 8 seconds 18% of revenue caggr growth 200 approx margin expansion 8:15 8 minutes, 15 seconds ROC improvement between 18 to 20%. The foregoing assumption are considered achievable provided that the prevailing economic condition remains stable. 8:24 8 minutes, 24 seconds However, in light to the current geopolitical development, the company shall modify or differ plans accordingly. 8:36 8 minutes, 36 seconds During the year, the company actively participated in key global industry exhibitions including Last India and 8:43 8 minutes, 43 seconds Paint India. These exhibitions are strategically important initiatives to support our long-term strategy of moving 8:50 8 minutes, 50 seconds deeper into speciality and higher performance application. 9:00 9 minutes This section provides a broader perspective of the company's journey, leadership evolution, product diversification, and long-term strategic positioning. 9:12 9 minutes, 12 seconds This leadership provides stability and strategic consistency for the organization with a strong promoter-driven execution, long-term 9:19 9 minutes, 19 seconds strategic continuity and enabling the company to evolve into a professionally managed and globally diversified 9:27 9 minutes, 27 seconds specialty material company with a strong track record of sustainable growth and value creation. 9:35 9 minutes, 35 seconds This is how our group umbrella is been structured. Our 9:44 9 minutes, 44 seconds wider range of product portfolios is an ant barrier to limited competition. 9:55 9 minutes, 55 seconds The revenue pie indicates the paint contribution about 46% of the revenue indicating a gradual shift to polymer 10:04 10 minutes, 4 seconds and rubber segments showing a better transition compared to the previous exports contribution are stable at 14%. 10:12 10 minutes, 12 seconds Diversification outside pain is a strategically positive higher special high speciality 10:21 10 minutes, 21 seconds contribution will improve future margins. 10:26 10 minutes, 26 seconds The company serves several leading Indian and multinational companies across paint, polymer, construction material, rubber and agriculture industrial applications. 10:45 10 minutes, 45 seconds The revenue increased from 613 crores in FY22 to 954 crores in FY26. 10:54 10 minutes, 54 seconds This is a showcase that CAGR approximately grow about 12% over the five years. 11:02 11 minutes, 2 seconds The Iberita has increased from 79 crores to 123 crores over the five years with CGR appro approx of 12 to 13% despite multiple industry disruptions. 11:15 11 minutes, 15 seconds PAT almost doubled from 35 cr to 67 crores with a CGR approx of 14%. 11:22 11 minutes, 22 seconds Therefore the company is scaling without sacrificing the profitability. 11:30 11 minutes, 30 seconds Yes. 11:35 11 minutes, 35 seconds The ROC remained healthy at 16.4% in FI26. Operating cash flows increased sharply by 103.6 11:44 11 minutes, 44 seconds 103.6 CR. The net equity ratio remained to 0.1x from 0.4x in FI22. 11:52 11 minutes, 52 seconds Strong cash generation improves funding capability for the future capex as well as the lower leverage reduction reduce financial risk and finance cost burden. 12:04 12 minutes, 4 seconds The company also enters the next growth phase with a clean clear balance cleaner balance sheet. 12:12 12 minutes, 12 seconds Now coming to the operational highlights. Inventory turnover has improved steadily over the years reflecting better supply chain and 12:21 12 minutes, 21 seconds inventory management. Inventory turnaround improved from 5.8x 12:26 12 minutes, 26 seconds [music] 12:28 12 minutes, 28 seconds to 8.3x. 12:31 12 minutes, 31 seconds The current ratio has strengthened the indicating healthy liquidity. The current ratio improved to 1.9x. 12:40 12 minutes, 40 seconds The return on equity remained healthy despite temporary moderation to 14.6%. 12:47 12 minutes, 47 seconds The total asset turnover remained 1.3 to 1.4x over the last five years. The company is 12:55 12 minutes, 55 seconds preparing infrastructure and working capital base for scaling the future revenues. The net capital turnover ratio stands to 4.8x in FI26. 13:05 13 minutes, 5 seconds So overall the company continues to focus on improving operational productivity and asset utilization. 13:13 13 minutes, 13 seconds The market metrics if you see the stock has been corrected 26% in last one year about three years return exceed 100%. 13:23 13 minutes, 23 seconds Current PE stands at 9.3x appeared reasonable relative to the approach outlook. 13:31 13 minutes, 31 seconds 20 microns always remain committed to innovative lead growth, operational excellence, sustainability, value added, 13:40 13 minutes, 40 seconds speciality solutions and long-term stakeholder value creations. I would like to thank you for your time and continued support. 13:50 13 minutes, 50 seconds Thank you. Thank you Nihad for the detailed update. We will now begin with the question and answer session. 13:56 13 minutes, 56 seconds Participants who wish to ask a question may please use the raise hand feature. 14:02 14 minutes, 2 seconds Once unmuted, we request you to kindly introduce yourself and proceed directly with your question to the management 14:09 14 minutes, 9 seconds team. To ensure that everyone gets an opportunity to participate, we request participants to limit themselves to two 14:17 14 minutes, 17 seconds questions at a time. You're welcome to rejoin the queue for any follow-up questions. 14:23 14 minutes, 23 seconds Participants may also post their questions in the chat box and we will take them up during the session. 14:30 14 minutes, 30 seconds We now open the floor for questions. 14:43 14 minutes, 43 seconds There is a question from Ahmed Mahendale. 14:48 14 minutes, 48 seconds uh I will just unmute him so that he can ask the question directly. 14:59 14 minutes, 59 seconds Amit, can you ask the question? 15:06 15 minutes, 6 seconds Okay, I think the same question has been put in the chat box as well. How do you plan to fund the 100 crex? How much equity to debt? 15:16 15 minutes, 16 seconds There's a question from Amit Mahendali. 15:19 15 minutes, 19 seconds I'll take on this question. Mr. Amit, welcome. 15:24 15 minutes, 24 seconds So largely for our domestic plans, the capex would be 15:31 15 minutes, 31 seconds in form of the internal approvals whereas for Malaysian entity we are planning to have a ratio around 70 to 30 that is 30% debt. 15:49 15 minutes, 49 seconds Okay. So, there's one more question that is coming up. Just one second. 16:01 16 minutes, 1 second Yeah. To just to repeat if say anybody wants to ask a question, please use the raise hand feature. Once unmuted, we 16:09 16 minutes, 9 seconds request you to kindly introduce yourself and proceed directly with your question. 16:13 16 minutes, 13 seconds So the other way to do is to put post your questions in the chat box and we'll take them up during the session. 16:26 16 minutes, 26 seconds So there is one question that has come up through email. We witnessed the sharp recovery in revenue growth during Q4 16:34 16 minutes, 34 seconds FI26. what were the key drivers behind this growth? 16:41 16 minutes, 41 seconds Yeah, so hello everybody. Uh thank you for joining in. Um basically uh since January of 2026 we saw an upward trend 16:50 16 minutes, 50 seconds in terms of the demand coming back in variety of industries that we are catering to and post that in February 16:56 16 minutes, 56 seconds also we saw a stable uh uptrend uh in terms of the demand and with uh the war 17:03 17 minutes, 3 seconds situation u uh many people tried to you know uh build up on the capacity so that based upon the raw materials that they 17:11 17 minutes, 11 seconds were already holding and that kind of led to an upscale demand for the entire quarter and that helped us as a company 17:19 17 minutes, 19 seconds deliver uh due to the inventories that we carried uh for all our products uh in that quarter to our customers on time 17:27 17 minutes, 27 seconds and that led to the uh the growth that you see in the quarter four of the company. 17:36 17 minutes, 36 seconds Okay. So there is a question that has come up from Manish Gupta. 17:40 17 minutes, 40 seconds So the question is I understand that 20 microns owns certain mines. How much of company's raw material requirement is 17:48 17 minutes, 48 seconds met from these mines? Question from Anish Gupta. So when you look at the uh so we have a lot of raw materials which 17:55 17 minutes, 55 seconds are based on domestic and imported in the imports basically we import uh we don't have our own mines except the 18:03 18 minutes, 3 seconds Malaysia mines which is recently started. So apart from that if you look at the domestic mines uh some of the mines are under environmental clearance and some of the mines are operational. 18:13 18 minutes, 13 seconds So out of that approximately about 30% of our total raw material requirement comes from the mines and 70% comes from uh external sources. 18:24 18 minutes, 24 seconds There's one more question from Janice Sha. The question is explain new product introduced positioning and contribution 18:33 18 minutes, 33 seconds in past two years and likely contribution in next three years. I'll just repeat the question. Explain new products introduced comma positioning 18:42 18 minutes, 42 seconds and contribution in past two years and likely contribution in next three years. 18:49 18 minutes, 49 seconds So uh a variety of products uh if you see we launch about 35 to 40 different products yearly basis by our R&D which 18:57 18 minutes, 57 seconds works a on you know the latest trends which are running in the markets and for the industries that we cater. So there 19:04 19 minutes, 4 seconds are many industries where uh you know we if you look at our share uh plastics and paints are somewhere where we are you 19:11 19 minutes, 11 seconds know having a higher penetration but now our R&D is working on many other segments where we are creating products 19:17 19 minutes, 17 seconds for those segments to upscale them and offer uh you know better solutions in terms of the additives that are required 19:26 19 minutes, 26 seconds for those industries. So recently we have launched uh you know u the uh delaminated kolines for the rubber 19:34 19 minutes, 34 seconds industry uh which has kind of kicked off very well for the tire industry specifically. Uh we have launched 19:41 19 minutes, 41 seconds anti-blocking agents which are tal based for the prochemical industry. Uh we have launched specialized calcium carbonates 19:48 19 minutes, 48 seconds for the oral care industry. We have launched specialized kolines and waxes for the ink industry. uh we have 19:56 19 minutes, 56 seconds launched uh some specific products for the cosmetic industry. uh so if you look at it there are many many uh different 20:03 20 minutes, 3 seconds products that we come out with and they have all been commercialized as of this year. Uh and we hope that these products 20:11 20 minutes, 11 seconds uh these are very limited customers have started using these products and these applications. So in the next three to four years we expect that within these 20:19 20 minutes, 19 seconds industries a lot of new customers will be approached will be uh you know converted for using these kind of products which are uh you know quite 20:27 20 minutes, 27 seconds successful right now with the existing customers. Okay. 20:34 20 minutes, 34 seconds So, so uh so next question I'm initially taking questions from those who have not asked the question before I get into uh 20:43 20 minutes, 43 seconds questions which are from a follow-up question. So there's a qu there's a question from Prashant Khalen. Are you facing any shortage of fuel gas? 20:51 20 minutes, 51 seconds Is it affecting production? 20:55 20 minutes, 55 seconds Well, it's not affecting production as of now. We definitely are facing a lot of issues in terms of the gas or the 21:02 21 minutes, 2 seconds fuels that we use currently. But our teams are efficient enoughly managing those uh tough situations with balanced 21:10 21 minutes, 10 seconds approach in terms of the hikes in the fuels cost which are happening currently and the availability which is there by having multiple sources of available 21:20 21 minutes, 20 seconds resources that are there with the team uh of ours. So we are trying to manage it as of now but in the future uh depending on the situations and the 21:28 21 minutes, 28 seconds government uh restrictions that might come in uh then the situation uh might be different but as of now we are not 21:35 21 minutes, 35 seconds facing much of issues and the production is going on at uh the current levels which they should have been. 21:45 21 minutes, 45 seconds One more question comes from Ravi Kant Manim. 21:50 21 minutes, 50 seconds The question is in the presentation it is mentioned that revenue will grow 18% CAGR growth with margins expanding 200 21:59 21 minutes, 59 seconds to 250 basis points. So can we expect 100 cr pat in FY 2027? 22:06 22 minutes, 6 seconds Well, uh it's very difficult to predict as of now uh because of the current situations and we don't know for how long these current situations are going 22:14 22 minutes, 14 seconds to last for uh but uh the capex plan is definitely in place and uh as Mr. Nihad has showcased in the presentation and if 22:23 22 minutes, 23 seconds we go forward with those plans uh at the pace and the timelines that we have scheduled it for then definitely the we 22:31 22 minutes, 31 seconds expect that whatever commitments that we have shown in the presentation would be achievable. 22:38 22 minutes, 38 seconds So this is a follow-up question from Amit Maheshwari. 22:41 22 minutes, 41 seconds So I'm just uh throwing the first question. Can you throw some light on expected completion timelines for the new capeex 22:50 22 minutes, 50 seconds and what is the expected return on capital management uh return on capital management estimates these projects would deliver? 22:59 22 minutes, 59 seconds Can you throw some light on the expected completion deadlines for the new capeex and the expected return on capital? 23:08 23 minutes, 8 seconds Uh Nihad, I think you can take this question. 23:14 23 minutes, 14 seconds Hello. Yeah. So, uh the timelines what we have driven in our 23:21 23 minutes, 21 seconds capex plan is uh by FY30 that we'll be completing most of our projects uh in case the geopolitical scenario remains 23:29 23 minutes, 29 seconds stable and supports our business fundamentals and targets. 23:35 23 minutes, 35 seconds Whereas we are expecting ROC around 20% in case by 5 by30 if uh the things in the projects are uh timely being delivered. 23:49 23 minutes, 49 seconds Okay. So, so one more follow-up question from Janisha. What brings confidence for 23:55 23 minutes, 55 seconds 18% CAGGR revenue growth and 2 to 2.5% margin improvement in spite of challenging environment in past two 24:03 24 minutes, 3 seconds years from supply chain and market demand. Please give greater clarity on this please. 24:10 24 minutes, 10 seconds See when we look at the past two years and the turbulent times that we have faced in the past five years since covid times uh our company has been uh you 24:19 24 minutes, 19 seconds know very uh diligent enough uh in order to uh try and manage the situations uh 24:26 24 minutes, 26 seconds in terms of raw material availabilities to managing the expenses to uh maintaining the sales revenues in 24:33 24 minutes, 33 seconds tougher times uh and in resil and being very resilient to all the external conditions uh with the right balanced 24:40 24 minutes, 40 seconds approach. So with the uh 100 crore capex that we have lined up uh and uh which 24:46 24 minutes, 46 seconds kind of leads to the uh uh marginal increase in the uh you know the EITA margin levels and the revenue growth 24:54 24 minutes, 54 seconds that we're expecting and with the kind of products that are lined up in the R&D for the next two to three years uh and 25:03 25 minutes, 3 seconds the uh uh advanced stage that we're getting into for more uh you know advanced nanosized materials that are 25:11 25 minutes, 11 seconds avail going to be available for the market. I think when we look at those high value items contributing towards the top line that will definitely be 25:20 25 minutes, 20 seconds impacting the overall bottom line as well and that is why we are more confident on that. 25:31 25 minutes, 31 seconds So a couple of questions from Kunal Bhya. 25:34 25 minutes, 34 seconds So I will just take up the first question. You have made several strategic moves recently. the Seabbert and the Doofner JVS, the Malaysian 25:43 25 minutes, 43 seconds limestone acquisition etc. Could you help us understand when these initiatives are expected to start meaningfully contribute to consolidated earnings? 25:54 25 minutes, 54 seconds So, Dofner has already uh you know it's it's a different kind of a JB setup which we have already initiated and that is already contributing to the overall 26:03 26 minutes, 3 seconds uh picture. uh the sever operations which is a new operation which has already been uh established at its first 26:10 26 minutes, 10 seconds phase in the past few months. The second phase would go live probably in the next few months. Uh and uh overall if you 26:18 26 minutes, 18 seconds look at this JV the real outcome would be uh you can see it possibly by the end of the financial year uh because that's 26:27 26 minutes, 27 seconds when both the phases would be stabilized enough and the recognition in the market would continue to come in. So that is where we are expecting that to happen. 26:36 26 minutes, 36 seconds Uh for the Malaysian operation, the mines have already been uh you know started uh operating and uh currently we 26:44 26 minutes, 44 seconds are in that scenario of uh you know organizing the mine in a proper way and followed with uh the uh uh construction 26:52 26 minutes, 52 seconds of the plant which will be a minimum of uh you know 12 months. So within the 26:59 26 minutes, 59 seconds next 12 months uh we will be uh you know commissioning the plant and post that we are expecting that the operations would start. So anywhere in the early next 27:08 27 minutes, 8 seconds financial year is when we are expecting the Malaysian operations to show some light. 27:14 27 minutes, 14 seconds So I'm taking one more question from Kunal Bhya so that this is uh related to the earlier question also looking into 27:23 27 minutes, 23 seconds the current financial year and the trends over the last few months how are you reading the demand environment across your key and key end user 27:31 27 minutes, 31 seconds industries and which segments outside pains do you see driving the next leg of growth and I just give you one more question also which he has raised how 27:39 27 minutes, 39 seconds are the contracts structured in terms of increase in cost pass through how much is spot versus medium to long-term contracts. 27:51 27 minutes, 51 seconds Should I repeat the question? 27:53 27 minutes, 53 seconds Uh in terms of contracts, if we look at it, uh we are not bound by any particular contracts for short-term or long-term. We have a mutual 28:02 28 minutes, 2 seconds understanding with all our customers in terms of the offtakes at the beginning of the year that they are anticipating and uh that keeps changing with the 28:10 28 minutes, 10 seconds changing demands uh because of the macroeconomic uh environment changing and so uh we regularly get updated by 28:18 28 minutes, 18 seconds our customers upon uh what the trends are going to look like for the next few weeks to few months in current situations because it's very difficult to predict a year-long predictability. 28:30 28 minutes, 30 seconds uh so uh when it comes to that I think uh uh in the near term uh we are 28:36 28 minutes, 36 seconds expecting the demand to be uh you know ve very volatile and but all our plans and in terms of our inventories that 28:45 28 minutes, 45 seconds we're managing are based on that uh to take care of the uh spikes as well as the downside of any demands which which 28:53 28 minutes, 53 seconds come in. uh but when we look at uh an industry specific uh case scenario then 29:01 29 minutes, 1 second I think apart from paints if we are looking at then uh plastics and rubber and uh you know inks and uh construction 29:11 29 minutes, 11 seconds chemicals is something that we are quite robust on for this financial year and the coming years as well because we're developing a lot of new products for these applications and uh we look 29:20 29 minutes, 20 seconds forward to uh you know growing our market share in these applications. as well. 29:27 29 minutes, 27 seconds There's one more question from Hardik K. 29:30 29 minutes, 30 seconds The question is, how is the construction chemical segment shaping since many are B2C products? Is any of our products 29:38 29 minutes, 38 seconds gaining popularity and do you see the segment becoming bigger in few years? 29:45 29 minutes, 45 seconds So when we look at construction chemicals, we are in both the segments. 29:49 29 minutes, 49 seconds We are in B2B also and we are in B2C also. So in B2B we all our minerals are being used in the manufacturing of 29:57 29 minutes, 57 seconds construction chemicals and that is one of the reasons why we have extended ourselves into uh the retail segment 30:04 30 minutes, 4 seconds also because it's an extension of what we've been doing all these years and uh yes we have launched quite a lot of 30:12 30 minutes, 12 seconds products in the past two years uh which see a lot of potential. We are working with quite reputed names definitely on 30:19 30 minutes, 19 seconds smaller volumes currently uh but we see a lot of potential in the next 3 to 5 years because we have a dedicated team 30:26 30 minutes, 26 seconds which is constantly working on on these projects uh and uh they give you entire solutions all the way from basement to 30:34 30 minutes, 34 seconds roofing. So definitely we see an impact created both uh by uh you know 20 MCC 30:42 30 minutes, 42 seconds private limited which is our uh 20 micron subsidiary and we expect the same uh with a different set of products by 30:50 30 minutes, 50 seconds our JV which is with Seaworth uh building materials private limited. 30:58 30 minutes, 58 seconds There's a question from Prashant Klay. 31:00 31 minutes When will this 100 crore capeex become operational? I think that was already addressed by Nath. 31:08 31 minutes, 8 seconds Okay. 31:11 31 minutes, 11 seconds And related question is from Amit Mahendallay. What will be Malaysian capacity utilization for FY27? 31:20 31 minutes, 20 seconds Well, it all depends as I mentioned uh the plant will be ready in the next 12 months. Uh so if if the things go in the 31:27 31 minutes, 27 seconds right way. So uh once it's ready and uh you know the commissioning and everything is done and when it's good to use only then we will be able to comment on this. 31:39 31 minutes, 39 seconds So there is a question from Manish Gupta. Uh there was a proposal to give guarantees for borrowings by director's 31:46 31 minutes, 46 seconds own entities up to 50 crores. Are these entities operating in competing segments with 20 me accounts? 31:56 31 minutes, 56 seconds I'm sorry I didn't get the question. 31:58 31 minutes, 58 seconds There was a proposal to give guarantees for borrowings by director's own entities up to rupees 50 crores. Are these entities operating in competing segments with 20 microns? 32:11 32 minutes, 11 seconds Um Dinihad are you can you answer that 32:25 32 minutes, 25 seconds Mr. Mutu I have lost the question. Can you please pardon? 32:29 32 minutes, 29 seconds Yes. There was a proposal to give guarantees for borrowings by director's own entities up to rupees 50 crores. Are 32:36 32 minutes, 36 seconds these entities operating in competing segments with 20 microns? 32:44 32 minutes, 44 seconds This was this sorted approach from the board. Actually this is for our one of the GB partners that quantum was around 2 and a half kes. 32:57 32 minutes, 57 seconds Okay. So there's a question from Janesha. 33:00 33 minutes Uh you have generally you have generally been guiding for annual performance in past couple of years. Why have you withdrawn this for FY27? 33:11 33 minutes, 11 seconds What is the expectation in FY27 on revenue and margins to the best of your judgment? Also give variables that can 33:18 33 minutes, 18 seconds be monitored for any variability in FY27 guidance. Question from Jamisha. 33:24 33 minutes, 24 seconds Well, looking at the current scenario, we have not withdrawn ourselves, but we don't find it suitable enough to give 33:31 33 minutes, 31 seconds any kind of a broader uh picture in terms of the expected revenues that we 33:38 33 minutes, 38 seconds would foresee because uh when we look at the current situations, it's very hard to predict that and if it continues. uh 33:45 33 minutes, 45 seconds but our main efforts currently in the company are ma mainly towards uh increasing the revenue to the best 33:53 33 minutes, 53 seconds possibility that we can and maintaining the margins at the current levels along with focusing on the pat which was also 34:01 34 minutes, 1 second the focus of last financial year. So but what we uh uh expect that at least if 34:07 34 minutes, 7 seconds things improve in the next um in the next month or two months then definitely in the second half we'll see the growth 34:15 34 minutes, 15 seconds that we anticipate uh to uh you know cross the thousand cr uh benchmark and milestone hopefully in this financial year. 34:27 34 minutes, 27 seconds There's a follow-up question from Amit Maheshwari. Can you also please share the free cash free cash generated by the business in FY26? 34:36 34 minutes, 36 seconds Also could management please guide what percentage of revenues in FY26 where from products launched in last two to 34:44 34 minutes, 44 seconds three years basically to understand revenue split between new products and legacy products. 34:54 34 minutes, 54 seconds So the first half uh Nihad will answer but I'll ask I'll answer the second half of the question first. Uh the 35:03 35 minutes, 3 seconds uh this in the second half uh they've asked about the new products. So about about four to 5% is what the contribution usually comes in from the 35:11 35 minutes, 11 seconds new products which are you know usually taking shape both from 20 microns and 20 microns nanom limited. uh but then what 35:19 35 minutes, 19 seconds happens is that there are some these uh new products sometimes are upgrades to the older products also. So what happens is that uh the new products get launched 35:28 35 minutes, 28 seconds and sometimes those older products get discontinued and that revenue also gets translated into this new product uh 35:35 35 minutes, 35 seconds revenue stream. So that is how we kind of work around in terms of when we launch new products. 35:44 35 minutes, 44 seconds The first half of the question can be answered by Nihad. 35:47 35 minutes, 47 seconds So the free cash flows for generated in the previous year was around 42.28 crores. 35:57 35 minutes, 57 seconds Okay. Uh there's a question from Amit Maheshwari. Can you throw some light on expected completion timelines for the new capex? 36:07 36 minutes, 7 seconds Uh I think that has been addressed. 36:08 36 minutes, 8 seconds Oh sorry that the questions has been addressed. Apologies. 36:13 36 minutes, 13 seconds A question from Rabi Kant. Are there any challenges for 20 microns currently in supply chain due to the current war 36:20 36 minutes, 20 seconds situation and are there any cost implications due to surge in fuel price or logistics cost? If so, are we passing the cost to our customers? 36:32 36 minutes, 32 seconds Yes, there are many many areas in which we are facing challenges in the current scenarios. It ranges from fuel hikes to 36:41 36 minutes, 41 seconds uh gas hikes to foreign exchange hikes the USD because we import a lot of raw material. Uh the supply chain 36:50 36 minutes, 50 seconds disturbance so our imports and exports both get disturbed because of that. The freight cost increases, raw material 36:57 36 minutes, 57 seconds cost increases and many many more increases which are there. So we have a bundled effect. uh but what we do is 37:05 37 minutes, 5 seconds that we discuss a case-by case basis with our customers and in many cases we do pass it on to our customers uh but it 37:13 37 minutes, 13 seconds doesn't happen immediately. It happens over a period of time. So whenever certain hikes are announced it takes it you know a few uh days to few weeks 37:22 37 minutes, 22 seconds before those things get implemented in in the regular course of business. So definitely uh that's how it works. But 37:30 37 minutes, 30 seconds yes, we do get uh the hikes regularized from our customers uh in in these tough times. 37:40 37 minutes, 40 seconds Okay, there's one question from Kunal Bhya. Granulated calcium carbonate is seeing growth demand in the dietary 37:48 37 minutes, 48 seconds supplements and fortified food space given its role in improving flowability and compressibility for high-speed tableting. 37:57 37 minutes, 57 seconds Since calcium carbonate is already a core part of our portfolio, does management see this as a natural extension? Are you currently 38:05 38 minutes, 5 seconds manufacturing granulated supplement grade calcium carbonate? And if not, is there an intent to enter this segment? 38:13 38 minutes, 13 seconds Question from Kunal Mata. 38:15 38 minutes, 15 seconds Yes, currently we don't possess any of the licensing for developing any food grade or pharma grade calcium carbonates 38:22 38 minutes, 22 seconds in our company. But definitely uh in the future uh we anticipate to get into this kind of business uh once we understand 38:31 38 minutes, 31 seconds this market well and uh if we see a good potential for this market because it needs an entirely new uh and different 38:38 38 minutes, 38 seconds kind of a setup than what we traditionally uh practice currently in the organization. 38:45 38 minutes, 45 seconds Okay. The last question on the uh in the chat box is from Prashant Khalle. What is revenue potential of the 100 crex? 38:59 38 minutes, 59 seconds I think Nihad has worked that out. He can comment on it. 39:11 39 minutes, 11 seconds See, we have uh in a capex plan already given a detailed version that what additions would be there. So largely in terms of revenue if you see that we'll 39:20 39 minutes, 20 seconds be citing an overall growth of 18% uh across the next three years and we'll be having a potential margin 39:28 39 minutes, 28 seconds growation of around 200 bps in the medium term. 39:38 39 minutes, 38 seconds Okay. So one more question from LR. 40:06 40 minutes, 6 seconds It seems like we've lost Mutu. AJ, can you take over? 40:32 40 minutes, 32 seconds Uh yeah. Uh am I audible? Uh yeah, I think yeah sorry I was uh I think Mutu 40:41 40 minutes, 41 seconds was in the middle of asking a question. 40:46 40 minutes, 46 seconds Uh sorry uh was it this kunal bat but question granulated calcium carbonate [clears throat] is showing? 40:53 40 minutes, 53 seconds No. So that we just did. Yeah. Um there's a question from 41:01 41 minutes, 1 second uh what is our market share within our core products? Who are our major competitors? 41:09 41 minutes, 9 seconds Did we do this? This seems to be the latest question. 41:16 41 minutes, 16 seconds [clears throat] 41:17 41 minutes, 17 seconds Hello. 41:18 41 minutes, 18 seconds Yes. Yes sir. Um so basically uh it's it's the market share if we look at it 41:24 41 minutes, 24 seconds uh it ranges anywhere from u from 10% to 30% depending on what kind of products are we talking about. So you can't 41:33 41 minutes, 33 seconds generalize a product basically upon an overall picture but from product to product it varies from 10% to 30%. Um 41:41 41 minutes, 41 seconds again um when it comes to uh uh the main competitors, we have a lot of international competitors, we have a 41:50 41 minutes, 50 seconds lot of domestic competitors. We will send you a list of uh you know the competitors because not many of them are 41:57 41 minutes, 57 seconds in the listed space. Uh so Wisdom Smith, I'll ask them to get back to you with the list of competitors. Uh and uh yeah, so that's that's pretty much it. 42:09 42 minutes, 9 seconds There's one question that has come from Rabi Khan. Ravi Khan, usually April to June is the highest revenue quarter for 42:16 42 minutes, 16 seconds 20 microns. Still the same in the current situation. Question from Ravika. 42:24 42 minutes, 24 seconds Well, it doesn't seem like it because uh currently the demand is uh a little 42:30 42 minutes, 30 seconds weaker. U but uh we are trying our best to uh showcase that because it all depends on the entire year. So it's very 42:39 42 minutes, 39 seconds hard to judge if it's going to be the highest uh you know or the lowest quarter uh because uh we don't know how 42:47 42 minutes, 47 seconds the year is going to shape up. So So Janisha has a question. Was there any decline in revenue from paint segment in FY26? 42:58 42 minutes, 58 seconds No, there's been no decline in in the revenue. There has been it has maintained itself at the same levels as 43:05 43 minutes, 5 seconds last year uh in the previous financial year. So, uh there has been a flat growth in the paint segment. 43:14 43 minutes, 14 seconds Okay. So, no no more questions there. So I would uh request if uh anybody has question they can use the raise hand 43:22 43 minutes, 22 seconds feature once unmuted we can request you to introduce and ask the question or also you can put the questions on the chat box. 43:31 43 minutes, 31 seconds We'll wait for another two minutes for your questions. 43:56 43 minutes, 56 seconds So it's a question LRS capitals question. Do we aspire to be debtree? If yes, by when? 44:10 44 minutes, 10 seconds Mr. Nihad can answer that. 44:14 44 minutes, 14 seconds Yes, there is always an aspiration to be debt free. Uh eventually, yes, there are plans also uh in long 44:22 44 minutes, 22 seconds term that we are also working on it. So, as we come nearer to the timelines, we'll be sharing you the details accordingly. 44:31 44 minutes, 31 seconds Okay, one related finance another finance question. Uh where do we expect net working capital to range in FY27? 44:39 44 minutes, 39 seconds Are we seeing any delays in payment terms from customers? 44:51 44 minutes, 51 seconds See we if you see our entire cash flow cycle that have been given in our balance sheets there is no such gaps in 45:00 45 minutes our net working capital range. So to the extent of FI26 will remain the same in 45:08 45 minutes, 8 seconds terms of net working capital utilization and yes there are about payment delays. 45:14 45 minutes, 14 seconds See there are not as as of kind there is no such delays we have identified uh citing to the next or the third quarter 45:24 45 minutes, 24 seconds we'll be able to share you the positioning of exactly the situation that may arise 45:30 45 minutes, 30 seconds but as of now there is no delay okay one question from Janesha is asking 45:39 45 minutes, 39 seconds how much automation plan to bring margin improvement in the next two Yes, 45:46 45 minutes, 46 seconds there are a lot of automation plans which are already uh you know in place. 45:51 45 minutes, 51 seconds uh many of our older processes which we were following traditionally in u you know uh our production facilities 46:01 46 minutes, 1 second uh with the capex that we are you know have in incurred in the last two years and with the future capex that we are 46:08 46 minutes, 8 seconds expecting in terms of the new age uh milling processes that we will be following which goes which which takes 46:15 46 minutes, 15 seconds care of a reduction in uh the power costs. It also helps in improving your uh you know uh the capacity. Uh there 46:24 46 minutes, 24 seconds are some initiatives which we are also being taken in terms of uh renewable energy where we are going to be using 46:33 46 minutes, 33 seconds solar, hybrid and wind energy in certain cases for some of our plants to reduce the operating costs in terms of the 46:40 46 minutes, 40 seconds power consumption. Uh also there are many functions uh uh where we have identified automation 46:48 46 minutes, 48 seconds uh in the next uh three three years where we will be taking them up uh as a part of the capex plan upgradations for our existing clients. 47:36 47 minutes, 36 seconds So I think uh we can perhaps uh close the call. 47:44 47 minutes, 44 seconds So um yeah so on behalf of 20 microns uh I would like to thank all the participants uh and also uh uh thank you 47:53 47 minutes, 53 seconds Mr. Parik Mr. Baluch and Mr. Ran Cha for answering 48:01 48 minutes, 1 second addressing the investors. Uh we hope to meet you in our next call in uh at the Haferi uh results time and uh you can 48:10 48 minutes, 10 seconds always reach out to us for continuing discussions. Thank you everybody. Thank you everyone. Thank you.