Aether Industries Limited — Q4 FY26

Aether Industries Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=gVW-iQT5erE Published: 1d ago

0:01 1 second Ladies and gentlemen, good day and welcome to Ether Industries Limited Q4 and FY26 earnings conference call hosted by HDFC Securities. 0:11 11 seconds As a reminder, all participants will be in the lesson only mode and there will be an opportunity for you to ask questions after the presentation concludes. 0:20 20 seconds Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touchstone phone. Please note that 0:28 28 seconds this conference is being recorded. I now hand the conference over to Mr. 0:32 32 seconds Nilleshug from HDFC Securities. Thank you and over to you sir. 0:38 38 seconds Yeah, thank you. Good afternoon all. On behalf of HDFC Securities, I welcome everyone to this Ather Industries 0:45 45 seconds conference call to discuss the results for the quarter ended March 2026 and financial year 26. from the AER industries we have with us today Dr. 0:56 56 seconds Raman Desai promoter and wholetime director Mr. Rohan Desai promoter and wholetime director Mr. P Nagara chief 1:05 1 minute, 5 seconds financial officer Mr. Kushal Doshi lead investor relations and Miss Shivangi Desai executive without further ado I will now hand over 1:13 1 minute, 13 seconds the floor to Mr. Kushal Dshi to begin with the earnings for the quarter and financial year. Over to you Kush. 1:20 1 minute, 20 seconds Thank you Nlesh. A warm welcome to everyone. Uh today our board has approved the financial results for the fourth quarter and fiscal year 2026 and 1:29 1 minute, 29 seconds the same have been filed with the exchanges as well as updated over our website. Please note that this conference call is being recorded and 1:36 1 minute, 36 seconds the transcript of the same will be made available on the website of Atherra Industries Limited and the stock exchanges. Please also note that the 1:43 1 minute, 43 seconds audio of the conference call is copyright material of ather industry is limited and cannot be copied, rebroadcasted or attributed in the press 1:51 1 minute, 51 seconds or media without specific and written consent of the company. Let me draw your attention to the fact that on this call 1:59 1 minute, 59 seconds our discussion will include certain forward-looking statements which are predictions, projections or other estimates about future events. These 2:06 2 minutes, 6 seconds estimates reflect management's current expectations on future performance of the company. Please note that these estimates involve several risks and 2:14 2 minutes, 14 seconds uncertainties that could cause or are actual results to differ materially from what is expressed or implied. Aether 2:22 2 minutes, 22 seconds Industries Limited or its officials do not undertake any obligations to publicly update any forward-looking statements whether as a result of future 2:29 2 minutes, 29 seconds events or otherwise. Now Mr. Rohan Desai will begin by sharing Ather's business outlook ongoing expansions. Then Dr. 2:37 2 minutes, 37 seconds Aman Desai will provide inputs on the R&D and new planned initiatives and strategy of the company going forward and Mr. Fes Nagara will cover the 2:45 2 minutes, 45 seconds financial highlights for the period under review. I shall hand over the call to Mr. Rohan Desai for his opening remarks. Over to you Rohan. 2:54 2 minutes, 54 seconds Thank you Kushell. Good evening everyone. Thank you for joining us today. Over the last two months since the conflict began, there has been 3:02 3 minutes, 2 seconds unprecedented disruption at scale. 3:07 3 minutes, 7 seconds Roughly 20% of global oil capacities went offline and nearly half of the global ethylene and propylene supplies 3:16 3 minutes, 16 seconds polyrop polyethylene supplies have been disrupted. These are unparallel numbers reflecting a combination of 3:25 3 minutes, 25 seconds physical infrastructure damage, fitstock limitations, and severe logistic disruptions. Despite broader near-term 3:32 3 minutes, 32 seconds market volatility, we anticipate demands will remain resilient for our products, providing meaningful pricing potential, 3:41 3 minutes, 41 seconds particularly in large scale manufacturing business model, as evident by recent March settlements. 3:48 3 minutes, 48 seconds Let me share what it actually means for a large scale manufacturing business vertical has seen a sharp increase in 3:56 3 minutes, 56 seconds the price of our products in quarter 4 caused by the conflict. 4:01 4 minutes, 1 second Importantly, those price are still being maintained in April and May. pricing has 4:08 4 minutes, 8 seconds been expens exceptionally strong over 20% yearonear and 18% quarter on quarter 4:17 4 minutes, 17 seconds in Q4. We believe this pricing environment is sustainable in the medium term. 4:25 4 minutes, 25 seconds We are also in the cusp of major milestone. There are three new large scale manufacturing products, two in 4:33 4 minutes, 33 seconds pharmaceutical and one agrochemical from site five which will be commissioned by May and or starting of June uh first 4:41 4 minutes, 41 seconds week. Validation batches are done and orders are already in hand. Laskan manufacturing business model contributed 4:50 4 minutes, 50 seconds 43% of the sales and CRA and CM together delivered a strong 55% of our revenues. 4:58 4 minutes, 58 seconds Site 4 has seen a tremendous growth from 50 crores to 23 220 crores a 4x increase 5:07 5 minutes, 7 seconds and now represents 21% of our total sales. Pharma plus agro still at a 5:14 5 minutes, 14 seconds healthy 46% and material science at 17% a share we expect to grow meaningfully with site 3++ ramping up very fast. 5:25 5 minutes, 25 seconds Let's talk about momentum with global customers in the last few months has 5:32 5 minutes, 32 seconds been which has been incredibly exciting on on the commercial front. We have 5:39 5 minutes, 39 seconds participated in key chemical exhibitions in Japan and Europe and the quality of the conversations were insightful with 5:46 5 minutes, 46 seconds respect to their strategies and future plans. Existing customers are are 5:54 5 minutes, 54 seconds deepening their commitment and new ones are actively qualifying us. This year we have completed 50 plus customers and 6:02 6 minutes, 2 seconds certification audits and added 19 marquee clients to our rosters. 6:08 6 minutes, 8 seconds Multiple customers have already completed pre- audits for site 5. 6:14 6 minutes, 14 seconds These interactions have reinforced our confidence that cramps and cm can contribute 70% plus sales in the coming 6:23 6 minutes, 23 seconds years. We have hit our targets on converge polyols innovative high margin product and have strong order visibility 6:32 6 minutes, 32 seconds for fi 2027 and in the semiconductor material space the feedback from our customers have 6:40 6 minutes, 40 seconds been very positive. We see this opportunity tripling by 2030. 6:46 6 minutes, 46 seconds Looking ahead in summary we are entering a new growth phase powered by three big levers. successful commissioning of site 6:54 6 minutes, 54 seconds 3++ and phase one of site 5 deepening relationships with global technology and 7:01 7 minutes, 1 second industrial leaders and sharp focus on operating cash flow and discipline execution with that I would like to hand 7:10 7 minutes, 10 seconds over this call to Dr. Raman who will talk us through the exciting progress in R&D and our new client acquisition initi initiative. Over to you Aman. 7:21 7 minutes, 21 seconds Thank you Rohan. Um good evening everybody. I'm extremely happy to connect with you all again as we do every quarter as we continue to navigate 7:30 7 minutes, 30 seconds these uh volatile times that Rohan has talked about at length. U let me talk about uh R&D and projects and 7:38 7 minutes, 38 seconds competencies. Uh I'm very pleased to inform you that the interim R&D expansion 7:46 7 minutes, 46 seconds with two new labs and 18 fume hoods including five engineering fume hoods and a very nice 400 megahertz NMR 7:54 7 minutes, 54 seconds nuclear magnetic resonance uh machine installation have been completed in the current R&D facility and we expect the commercialization of these new fume 8:02 8 minutes, 2 seconds hoods and NMR machine to begin from Q2 onwards of this fiscal as As we had expected over the last few quarters, the number of crimes and 8:11 8 minutes, 11 seconds quiries continues to increase and these new fume hoods and the NMR which corresponds to this interim R&D 8:19 8 minutes, 19 seconds expansion that we are doing will hold us in good speed and help us address these increased inquiries. We already have a number of new projects lined up in the 8:27 8 minutes, 27 seconds material science and the oil and gas sectors for the new capacity that we have now commissioned and that's the area that we are focusing on in terms of 8:34 8 minutes, 34 seconds new business development. The construction of the entirely new R&D plant and the new R&D wing uh that we 8:42 8 minutes, 42 seconds are also undergoing is also progressing on schedule and is completed expected to be commissioned in second quarter of F528. 8:51 8 minutes, 51 seconds This new R&D building and the new R&D site will have 15 new labs including five engineering labs and a cumulative 9:00 9 minutes almost 140 fume hoods and this will represent a double expansion a 2x expansion over the current R&D strength 9:08 9 minutes, 8 seconds that we have including the interim R&D expansion 2x expansion over that which is a significant R&D expansion and this 9:16 9 minutes, 16 seconds is being done with uh full visibility of uh additional um load on the cramps business model 9:24 9 minutes, 24 seconds that we foresee [clears throat] with the current leadership in R&D also having been set to address this 9:31 9 minutes, 31 seconds increased demand of the R&D cams inquiries and this significantly increased R&D infrastructure we are also 9:39 9 minutes, 39 seconds in the process of grooming the next generation of R&D leaders in the R&D organization and so there's a huge focus on that these new leadership are these 9:48 9 minutes, 48 seconds new leaders are expected to take leadership roles in our new worldclass R&D facility which will be online in the next one or two years. Uh also with my 9:56 9 minutes, 56 seconds associations uh with premier institutes in the country like uh ICT Mumbai, NCL Pune and other institutes where I'm a 10:03 10 minutes, 3 seconds official PhD core guide as well as a member of the board of studies. uh we are really tapping into this network that we have to groom our next 10:12 10 minutes, 12 seconds generation of R&D leaders and we are confident of having a young and dynamic team of R&D leaders which are expected to work on these increased grants 10:20 10 minutes, 20 seconds projects coming through in the significantly expanded R&D infrastructure that we are uh we have set up and we in the pro process of setting up over the course of the 10:29 10 minutes, 29 seconds quarter and the last few weeks we have had a number of follow-ups and site visits from senior management from the highest levels of management of current and prospective customers 10:37 10 minutes, 37 seconds We have participated in chemical conferences in India, Japan and Europe. 10:42 10 minutes, 42 seconds And it is evidently clear that global chemical companies do want to get ahead of the curve and are accelerating the developmental plans with label partners. 10:51 10 minutes, 51 seconds And the focus in all these engagements that we have with all these innovators across the industry spectrum especially material sciences, oil and gas is p is 10:59 10 minutes, 59 seconds singularly singularly India. They want to be in India unless uh they can't. And 11:05 11 minutes, 5 seconds so it's really up to us to um maximize this potential of collaborations that we are uh over we are seeing. We believe 11:15 11 minutes, 15 seconds that we are well placed considering the relationships that we have already forged with this clients and also the worldclass infrastructure that we are setting up in R&D as I've already talked 11:23 11 minutes, 23 seconds about the pilot plants which is the one of the largest pilot plants in the world that we have and the new sites that Rohan has spent uh some time talking 11:30 11 minutes, 30 seconds about. I'm also very happy to inform you that we are also expanding and we have expanded our senior leadership team which is what we call our global 11:39 11 minutes, 39 seconds technology and business development team with the addition of Mr. Gunter Stevens. 11:43 11 minutes, 43 seconds Uh Gunter has extensive experience in chemical R&D process development, raw material development and sustainable technology development within uh 11:52 11 minutes, 52 seconds Germany. So he started his career with Bayer and then ended his career with more than three decades in Alana in Bkami which is a leading additives 12:01 12 minutes, 1 second company multi-billion dollar leading additives company in the world. He has extensive experience in the chemical industry and will be based out of Germany. But specifically what's very 12:09 12 minutes, 9 seconds exciting about his repertoire and experience is the uh his experience of technology and leadership in technology 12:16 12 minutes, 16 seconds and R&D and product developments for material sciences, performance materials and application testing which is an area 12:25 12 minutes, 25 seconds and a core competency of application testing that Aether is is not amongst the forte of Aether's core competencies 12:33 12 minutes, 33 seconds today and he is expected to and he will be opening up an entirely new envelope and new frontier for um core 12:40 12 minutes, 40 seconds competencies and application areas and for to tap into and so that's why his skill sets complement the core expertise 12:50 12 minutes, 50 seconds which her currently has built and with this we it is very exciting in the terms of the new frontiers we'll be able to enter into and also there thereby tap 12:59 12 minutes, 59 seconds into new customers for additional projects and products in R&D in pilot plant as well as in production we are in addition we are looking to add one 13:07 13 minutes, 7 seconds chemistry to our core competencies which is what we're calling focus and integrated polymerizations also leaning for this core competency 13:16 13 minutes, 16 seconds onto our core technology competencies of high pressure chemistry extreme process conditions and continuous technology. We are currently working on a few 13:23 13 minutes, 23 seconds opportunity based on this uh focus on integrated polymerizations and we have identified a number of opportunities in the cre space for this chemical process. 13:32 13 minutes, 32 seconds This chemistry is again being mostly targeted towards the material science and the oil and gas sectors. 13:38 13 minutes, 38 seconds We continue to focus on CM opportunities, exclusive manufacturing opportunities. I expect quite a few of the creme projects that we have in our 13:45 13 minutes, 45 seconds pipeline today to shift to the CM vertical in this financial year which has just started and most of these will be uh launched in site five. We continue 13:54 13 minutes, 54 seconds to develop and deepen our relationship with existing customers by entering into new cramps projects with them which builds up the pipeline of the cramps 14:02 14 minutes, 2 seconds which will further on lead into exclusive manufacturing contract manufacturing. In the last fiscal year as Rohan mentioned we have commercialized the site 3+ plus increase 14:10 14 minutes, 10 seconds our revenue from site 4 and also comm commenced the commercialization of a small CN contract from site 3 for global customer. Fight five as Rohan mentioned 14:19 14 minutes, 19 seconds is also very exciting and the first phases will be launched momentarily. 14:24 14 minutes, 24 seconds With the current projects and the robust pipeline of projects which are expected to commence shortly, we are very confident of achieving our vision of 70% 14:31 14 minutes, 31 seconds of revenues coming from pram and contract exclusive manufacturing business models by fiscal year 30. So let me stop talking. In summary, I would 14:40 14 minutes, 40 seconds like to mention that we are extremely well placed to take advantage of the current golden age of the specialty chemical industry in India. The 14:48 14 minutes, 48 seconds opportunities will be expected in the next few years and our investments in the new R&D site interim and completely new as well as site five which are 14:56 14 minutes, 56 seconds worldclass will certainly have a positive impact on the company. So thank you very much. Looking forward to the questions and again thank you for 15:04 15 minutes, 4 seconds joining us on Friday evening. Kush P over to you. 15:09 15 minutes, 9 seconds Yeah, thank you Dr. Aman. Good evening everybody. 15:13 15 minutes, 13 seconds I would like to present the financial results of Aends is limited for Q4 of finance year 26 and full year of finance. 15:20 15 minutes, 20 seconds The total consolidated revenue. 15:22 15 minutes, 22 seconds Sorry to interrupt sir your voice is not clear. And now is it clear? 15:29 15 minutes, 29 seconds Yes sir please go ahead. 15:32 15 minutes, 32 seconds Yeah, the to total consolidated revenue from operations of the company stood at rupes 11,601 million in financial year 26 as against 15:41 15 minutes, 41 seconds rups 8,46 million in financial year 25 that is an increase of 38% yearonear. 15:49 15 minutes, 49 seconds This has resulted in a beta of 3,547 million in financial year 26 as against 232 15:56 15 minutes, 56 seconds million in financial year 25 which is an increase of 53% in the comparing financial years. The beta margin stood at 31% in financial year 26 as against 16:05 16 minutes, 5 seconds 28% in financial year 25. The PAT amounted to Rs 2,195 million in financial year 26 as against 16:14 16 minutes, 14 seconds Rs 1,584 million in financial year 25 which is an increase of 39% yearonear. 16:21 16 minutes, 21 seconds The PAT margin stood at 19% in financial year 26 as against 18% in financial year 25. The consolid consolidated revenue 16:29 16 minutes, 29 seconds from operations of the company stood at rups 3,51 billion in Q4 of financial year 26 as against rupees 3,188 16:39 16 minutes, 39 seconds million in Q3 of financial year 26. This has resulted in IBITA of 814 million in Q4 of FI26 as against 1,99 million in Q3 16:48 16 minutes, 48 seconds of financial year 26. and the PAT has been rupees 600 has been 540 million in Q4 of FI26 as against 645 million in Q3. 16:59 16 minutes, 59 seconds The main reason for the decline in revenues and profitability in Q4 as against Q3 of financial year 26 were on account of one of items like one time 17:08 17 minutes, 8 seconds ALOP claim income which was booked of 20 million 200 million in Q3 of financial year 26. The same was also has had 17:16 17 minutes, 16 seconds impacted EBA by around 150 million in Q3 of financial year 26 and it also uh was impacted also impacted the PAT by 112 millions in Q3 of financial year 26. 17:29 17 minutes, 29 seconds Further a provision for loss of inventory on account of an fire with at an external warehouse near site one on March 11 26 amounting to rupees 70 17:36 17 minutes, 36 seconds million has been provided in Q4 of financial year 26. Further year-end provisions coming for the first time of 17:43 17 minutes, 43 seconds approximately 10 million rupees has also impacted the Q4 financial results. I would like to give more glimpse on the 17:51 17 minutes, 51 seconds claim of the fire which occurred in uh November 29 23 at site 2. The final claim of for the fixed assets lost in 17:59 17 minutes, 59 seconds fire accident on November 29, 2023 has been submitted to the insurance surveyor and the same is being assessed at the insurance company with expectations to 18:08 18 minutes, 8 seconds get the claims settled by end of Q1 of FI27. We have also taken we also removed the aspects which were destroyed by fire and it is been impacted in the 18:17 18 minutes, 17 seconds financials of the financial year 26. We remain cognizant of the working capital and reduction in market capital is a 18:24 18 minutes, 24 seconds priority for us. We have been able to reduce the overall working capital cycle to 179 days as on 31st March 26 from 194 18:31 18 minutes, 31 seconds days as of 31st March 25. Even though these levels remain elevated, the inventory days increase primarily on account of raw materials purchased and 18:39 18 minutes, 39 seconds the production of the new new molecules going on at site 3+ and the raw materials purchased at site three site 18:46 18 minutes, 46 seconds 5. We expect the working capital days to decline as we expect revenues from site 3++ and the commencement of site 5 very 18:54 18 minutes, 54 seconds soon. Also with the increase in CM contracts and expansion of crimes facilities should have a positive bearing on the reduction of working capital intensity. 19:04 19 minutes, 4 seconds Case loss from operations have increased to rups 1,424 million in financial year 26 from rupes 19:10 19 minutes, 10 seconds 1,000 million in financial year 25 on account of increase in profitability and improvement in working capital cycles. 19:17 19 minutes, 17 seconds The total capex for financial year 26 was rups 3,838 million and the capex expected for finance year 27 is rups 19:25 19 minutes, 25 seconds 3,00 million to rups 3,500 million. The capex in finance 27 will be primarily for site 19:32 19 minutes, 32 seconds 5 and also for the new R&D site which is already progressing well. The capacity utilizations at plants stands as under 19:40 19 minutes, 40 seconds site 2 75% site 3 70% and site four 55%. 19:46 19 minutes, 46 seconds Thank you once again and we look forward to better outcomes like this in future as well. Back to you Kush. Uh can we 19:53 19 minutes, 53 seconds open Thank you P. Can we open it for Q&A? 19:58 19 minutes, 58 seconds Thank you very much sir. We will now begin the question and answer session. 20:03 20 minutes, 3 seconds Anyone who wishes to ask a question may press star and one on their touchstone telephone. 20:09 20 minutes, 9 seconds If you wish to withdraw yourself from the question queue, you may press star and two. 20:14 20 minutes, 14 seconds Participants are requested to use handset while asking a question. 20:19 20 minutes, 19 seconds Ladies and gentlemen, we'll wait for a moment while the question queue assembles. 20:33 20 minutes, 33 seconds First question is from the line of sel Kapoor from anti fragile thinking. Please go ahead. 20:41 20 minutes, 41 seconds Yeah, thank you for taking my questions. 20:43 20 minutes, 43 seconds Uh hi team um I'm getting a sense that there is a reinforcing 20:49 20 minutes, 49 seconds flywheel likely emerging as the setup uh increasingly looks like you know more chemistry capabilities 20:57 20 minutes, 57 seconds attracting larger global customers which then enables more complex molecules 21:04 21 minutes, 4 seconds which then improves margins and stickiness generates more cash flow funds more R&D and capex and creates 21:12 21 minutes, 12 seconds even deeper capabilities. So with that kind of a context, the question is if 21:19 21 minutes, 19 seconds the current capex and R&D cycle succeeds exactly as management imagines, 21:26 21 minutes, 26 seconds what will be structurally different about a business model 5 years from today that may not be visible today? 21:38 21 minutes, 38 seconds Yeah. Um [clears throat] I'll take it. 21:41 21 minutes, 41 seconds Um very interesting question uh precisely captured the intention and the goal 21:50 21 minutes, 50 seconds behind what we are trying to do. We want to establish ourselves as a company in specialty chemicals agnostic of industry 21:59 21 minutes, 59 seconds application focusing on really innovation uh with a marriage of chemistry and technology and engineering and systems. 22:08 22 minutes, 8 seconds And so this was actually the very first slide that we made back in 2013 when we started the company was precisely this innovation in chemistry and technology 22:16 22 minutes, 16 seconds and systems and so so it's uh it's it's nice to see how it's panning out and uh that we are sticking to what was our 22:25 22 minutes, 25 seconds foundational premise of the company. uh we see it spanning out in terms of what we are doing in the competencies and the chemistry technologies leading to 22:33 22 minutes, 33 seconds complex products as you said being aided by this uh really fundamentally solid and cutting edge infrastructure that we are putting up in R&D and pallet plant 22:42 22 minutes, 42 seconds and then complementing it with manufacturing assets especially our site five and so what will be structurally different uh in 5 years from now you 22:50 22 minutes, 50 seconds know I we hope not much we hope it continues to stay the same but only do it you know for for the lack of a better 22:57 22 minutes, 57 seconds word bigger and better and uh but at the same time being fundamentally grounded in the foundational premise of the 23:05 23 minutes, 5 seconds company which is what we talked about and so I don't know if it sounds your question but um thank you uh well uh said and that's what exactly what we're 23:13 23 minutes, 13 seconds trying to focus on as a company now that's helpful and then secondly as 23:19 23 minutes, 19 seconds a scales um what do you think becomes more important to sustain the mode or the competitive advant advantage um 23:28 23 minutes, 28 seconds capital deployed chemistry complexity or customer integration and how has that um 23:36 23 minutes, 36 seconds answer kind of changed internally over the last few years starting from 2013 23:42 23 minutes, 42 seconds [clears throat] 23:42 23 minutes, 42 seconds as you said right I mean what is is there any shift in internal kind of a benchmark between capital deployed 23:49 23 minutes, 49 seconds chemistry complexity or customer integration or perhaps it's a mix of everything I mean how do you measure success internally above and beyond the visible numbers that we all see. 24:02 24 minutes, 2 seconds Yeah, it's it's initially um initially it was more about setting up the chemistry, setting up the products, 24:09 24 minutes, 9 seconds establishing the customers, establishing um proving ourselves in a way to ourselves and to the customers. uh now 24:17 24 minutes, 17 seconds it's more about uh there's plentiful opportunities there's plentiful um it's in Indian context as well as in 24:25 24 minutes, 25 seconds the what we have done for ourselves there's plentiful opportunities across the industry domain across customers um fortunately and hopefully be in a 24:34 24 minutes, 34 seconds position to be able to pick and choose as well what we want to work on and what we want to do and then the challenge now is uh is is execution 24:42 24 minutes, 42 seconds uh execution execution u translating these opportunities into practice in the R&D in the pilot plant and production for which of course the team needs to be 24:51 24 minutes, 51 seconds built which what is what we are focusing on as well which is a big chunk of my u um speech today was the the leadership team that we are trying to build at all 24:59 24 minutes, 59 seconds levels and so now it's uh it's the the challenge and the exciting part ahead is now putting these things into practice in a bigger and vaster scale than we have previously. Thank you. 25:11 25 minutes, 11 seconds Thank you. Thank you. Definitely exciting times for us and wish you guys all the very best. Thank you. Thank you very much. 25:19 25 minutes, 19 seconds Thank you. 25:21 25 minutes, 21 seconds Next question is from the line of A Shara from Punarta Investments Advisors. Please go ahead. 25:29 25 minutes, 29 seconds Uh hi sir, thank you so much for the opportunity. So uh so just wanted to understand with the increase in the currency prices, do we get any kind of a 25:38 25 minutes, 38 seconds benefit given that we export a lot of our uh finished goods? 25:45 25 minutes, 45 seconds Yes. Um but we do have a natural hedge where we are importing certain products also um from [clears throat] various part of the world. So we have a natural 25:54 25 minutes, 54 seconds hedge on this. We we try to capitalize this as much as possible. However, uh 26:00 26 minutes our exports currently because of uh various uncertainties had been reduced 26:08 26 minutes, 8 seconds um by the CM customers which uh which had structurally uh put their Indian 26:14 26 minutes, 14 seconds subsidiaries uh uh uh ahead. So we are selling to Indian subsidiaries and then they are exporting the same to various 26:22 26 minutes, 22 seconds part of the world instead of us selling into the US uh basically. But now that 26:29 26 minutes, 29 seconds uh things have been resolved and um I think uh in the quarters to come you will see the exports growing uh and 26:39 26 minutes, 39 seconds coming back to 50 60% of our total topline. 26:45 26 minutes, 45 seconds So like does that mean that we may get some benefit going forward uh with the currency price? 26:54 26 minutes, 54 seconds Yes. So maybe our margins will increase going forward. Hopefully. Yes. 27:01 27 minutes, 1 second Okay. Okay. Uh and sir, uh is there any kind of a demand disruption because [clears throat] of this disruption going on in the oil market? 27:11 27 minutes, 11 seconds Uh no. Uh we have seen a steady demand in all our products uh as such. So there is no holding of material happening uh 27:21 27 minutes, 21 seconds in this instance uh during this war. 27:26 27 minutes, 26 seconds Okay. And sir you also mentioned that in the LSN segment the prices have increased. So uh did it increased 27:35 27 minutes, 35 seconds basically in the March squ in the March month or maybe uh like before that as well the prices had increased. 27:43 27 minutes, 43 seconds No um it has happened uh post the war scenario. 27:49 27 minutes, 49 seconds So the benefit of that again is expected uh in the coming quarters. 27:54 27 minutes, 54 seconds Yes. In this quarter also we are seeing the pricing being sustained. Uh so uh I think that will benefit quarter one. 28:06 28 minutes, 6 seconds Okay. Okay. And are you seeing any kind of an increase in the so like you said we are seeing increase in the raw 28:12 28 minutes, 12 seconds material prices as well but like I think we have an open cost P&L with all of our clients. So that is not expected to 28:19 28 minutes, 19 seconds impact us negatively or am I missing something? Yes, it is not going to impact us 28:27 28 minutes, 27 seconds for the CM at least which is a open cost P&L. So for that it will not be a uh it will not impact but for LSM there will 28:36 28 minutes, 36 seconds be some delta wherein certain uh margins will go up and then it will set subset. 28:43 28 minutes, 43 seconds Okay. Okay. Okay. Understood. Thank you so much. Thank you. Thank you. 28:51 28 minutes, 51 seconds Next question is from the line of Sai Kumar from Family Fund. Please go ahead. Uh hello. Am I audible sir? 29:00 29 minutes Yeah. 29:01 29 minutes, 1 second Yeah. Uh thank you for giving me this opportunity sir. So currently I would like to know what's in this current 29:09 29 minutes, 9 seconds quarter what is the revenue for the bakeries? Previous quarter it was something around 60 crores. So is there 29:15 29 minutes, 15 seconds any increase in this quarter and uh Yeah. Yes sir. Go on. Go on. 29:22 29 minutes, 22 seconds Uh yeah and uh we have a lot of refin I mean Baker has some refineries in the Middle East. So uh due to this war uh 29:31 29 minutes, 31 seconds most of the refineries they had some impact due to this war. So do you see any supply getting disrupted to baker to in this uh yeah that is a question sir. 29:45 29 minutes, 45 seconds Yeah. So the revenue to to bakeres in this last quarter was approximately 84 crores. Uh 68 was from the subsidiary 29:53 29 minutes, 53 seconds and also from our main company also there was some cramps which was done to for them and uh 68 crores has gone and 30:01 30 minutes, 1 second uh there is no disruption which has happened to the supplies which are doing to makerages and in fact we are getting continuous orders from them. Uh 30:08 30 minutes, 8 seconds currently we have not placed any reductions or delay means cancellation of orders from them. 30:14 30 minutes, 14 seconds Okay. So in this quarter it was around uh compared to previous quarter. 30:19 30 minutes, 19 seconds Yes it was 68 crores the material you supplied to them. 30:24 30 minutes, 24 seconds Okay. Yeah. And one more thing on the break side you said there are 7 to eight molecules that are going to be getting supplied to in the last fall you said. 30:34 30 minutes, 34 seconds So is there any progress on that? 30:36 30 minutes, 36 seconds Another new molecules you said right? Do you see any progress on that side? 30:42 30 minutes, 42 seconds currently in the cramps process. Uh you know once we have uh visibility we will come back to you on that once it gets 30:50 30 minutes, 50 seconds processed in CRAS but right now the R&D continues on those products. 30:54 30 minutes, 54 seconds Okay. Yeah. And the second question is on the Saudi Aramco JV sir on the polyol side. So 31:02 31 minutes, 2 seconds what is the like are you seeing any impact for Saudi Arab supplies to polyols and what is the demand you are 31:11 31 minutes, 11 seconds going to see for the poly in the next 2 to 3 years. 31:15 31 minutes, 15 seconds Um there is no uh we have we have application which is niche in nature. We 31:23 31 minutes, 23 seconds are uh we uh the application of the convers is in the case industry that that is coding adhesive seallet and uh 31:32 31 minutes, 32 seconds uh and elasttomers uh industry. It is a niche uh industry and niche has a niche application. So I 31:41 31 minutes, 41 seconds we have not seen any disruption happening on that. Uh and the demand has also not reduced because of the external 31:49 31 minutes, 49 seconds situations which have faced since last 2 months. 31:53 31 minutes, 53 seconds Okay. Yeah. Okay. That's all good. Thank you. I'll come back in the queue. Yeah. Thank you. Right. Thank you. Thank you. 32:02 32 minutes, 2 seconds Next question is from the line of Prasad Viv from Union Mutual Fund. Please go ahead. Uh hello. Am I audible? 32:11 32 minutes, 11 seconds Yeah, Prasad. 32:13 32 minutes, 13 seconds Yeah. Hi. Uh congrats on a good set of numbers. There lots of disturbance. Uh am I audible now? 32:20 32 minutes, 20 seconds No, there is a background noise coming from your end. The line is disturbed. 32:26 32 minutes, 26 seconds Okay. Uh so my question was on this uh uh new member uh new board new member 32:35 32 minutes, 35 seconds uh Prasad there is a disturbance coming from your line. Okay, I'll I'll jump back. I'll try. 32:41 32 minutes, 41 seconds Okay. Thank you. 32:44 32 minutes, 44 seconds Next question is from the line of Aijit Akila from Kie. Please go ahead. 32:52 32 minutes, 52 seconds Yeah, good evening. Uh thank you so much for taking my questions. Um postpone just on uh the uh LSM business uh you 33:00 33 minutes know it is it correct that the revenues are a little bit lower on a sequential basis just to check uh you know about um 33:10 33 minutes, 10 seconds I think I have about 111 sorry uh yeah 111 crores or compared to 131 the in the preceding quarter uh whereas we were 33:19 33 minutes, 19 seconds talking about almost 20% kind of price increases so could please just help us understand uh you know what what that means 33:26 33 minutes, 26 seconds No abil you're right uh in terms of the absolute amount uh it is a decline uh that's primarily because in the last 33:34 33 minutes, 34 seconds month in the month of March uh we were not able to ship some of the products due to logistical issues uh these have been shipped uh shipped in the month of 33:42 33 minutes, 42 seconds April and and May as we speak uh coincidentally also they have been shipped at a higher price. So uh yes you are right uh with that uh with respect 33:51 33 minutes, 51 seconds to the pricing as the one mentioned we have seen increase in pricing uh which has sustained through April and May. 34:00 34 minutes Okay but uh there's no sign of volume softness from uh any customers right in the face of higher prices. No not yet. 34:09 34 minutes, 9 seconds Okay. All right. Um now then just on the um uh working capital what's the outlook 34:16 34 minutes, 16 seconds for next year now? I mean with uh you know cm ramping up significantly. How much of a reduction in working capital days could one expect from next year. 34:24 34 minutes, 24 seconds Abij is we are continuously working on the working capital reductions and lots of measures are being done and uh uh we 34:33 34 minutes, 33 seconds we had considerably reduced in the first 6 months also if you are aware and uh this increase is on account of the new 34:40 34 minutes, 40 seconds site which started for the milic site 3+ wherein the raw materials and the the working progress of the of the materials 34:48 34 minutes, 48 seconds was there and we see that again this will subside when the because started in April and May to Milican So now the flushing of inventories is 34:56 34 minutes, 56 seconds going on. The datas will be paid al so we see that by end of this year this finance year 27 we'll be again uh having 35:03 35 minutes, 3 seconds a healthy working capital reduction which we expect to be around 160 days at least. Our try is to bring it down to 150 days but 160 days is what we are expecting currently to be. 35:14 35 minutes, 14 seconds Okay. So from 179 to 160 that's the expectation right? 35:19 35 minutes, 19 seconds Okay. Yeah. And in terms of the debt number uh which is about 400 odd crores uh right now um what's the outlook for that you know 35:28 35 minutes, 28 seconds will that increase a little bit further as capex uh uh goes up or uh you think we can maintain it around these levels. 35:34 35 minutes, 34 seconds No no definitely it will increase because we have been speaking about that the QIP monies have been uh completed in the Q3 itself. So we will now be 35:43 35 minutes, 43 seconds requiring Tom dates. We already started speaking with the bankers and we will see you will see the dates coming up uh dates increasing a bit in the current year and it will gradually increase. 35:53 35 minutes, 53 seconds It's not that it will increase uh in one go. We'll be taking the dates as per the requirements of the project progress and that will also ease certain other things 36:01 36 minutes, 1 second and so dates will increase but not uh very fast. It will be sequential. 36:08 36 minutes, 8 seconds Understood. Uh and finally just one last thing from my side with regard to the uh growth uh you know outlook for next year 36:15 36 minutes, 15 seconds revenue growth outlook. Um any sort of you know guidance we'd like to put out there in terms of overall topline 36:22 36 minutes, 22 seconds growth. Um and also if uh it's possible to just share with us you know will most of the growth continue to be driven by 36:30 36 minutes, 30 seconds the ramp up in Milikin and Baker Hughes or are there other projects as well which can start to contribute significantly maybe converge or maybe 36:39 36 minutes, 39 seconds site five or anything else you know which can make a meaningful contribution any color around that would be excellent. Thank you so much uh Abij. So we don't usually give 36:46 36 minutes, 46 seconds guidance in terms of revenue growth uh for the year but what we can tell you is that yes uh the site 4 and site 3 plus 36:55 36 minutes, 55 seconds will continue to get ramped up in this financial year. uh we will also be having the 18 fum and NMR which will 37:02 37 minutes, 2 seconds start contributing in terms of projects and the most important thing I think will be the commencement or commercialization of site five uh in 37:10 37 minutes, 10 seconds phase one uh where we look to commercialize this entire uh phase uh in this financial year uh these will be the major growth drivers in terms of 37:18 37 minutes, 18 seconds revenues uh in this financial year FI27 uh we hope to keep margins stable between the 29 to 30% limit margins as well as in the past around 19 to 20%. 37:33 37 minutes, 33 seconds Sorry just one last followup question there. So site size five how much can one expect for the upcoming year and also the 18 fume hoods you know R&D 37:40 37 minutes, 40 seconds expansion how much can one expect from these initiatives? 37:44 37 minutes, 44 seconds Sorry we'll not be able to uh we don't give the sitewise uh data so I'll not be able to comment on that. 37:51 37 minutes, 51 seconds Okay. All right. Fair enough. Thank you so much and all the best. Thank you. Thank you. 37:58 37 minutes, 58 seconds Next question is from the line of Nikon Gupta from AK investments. Please go ahead. 38:03 38 minutes, 3 seconds Hi, good evening team. Thank you for giving me the opportunity. Uh so my first question is uh based on past 38:10 38 minutes, 10 seconds quartertoquarter performance uh why margins were not hit in this quarter? 38:19 38 minutes, 19 seconds Hello. Yeah. 38:21 38 minutes, 21 seconds Yeah. Arjun actually I in my commentary you also I have given a very clear indication the major reason was the 70 38:29 38 minutes, 29 seconds million uh inventory right off on account of uh fire which took place at the external warehouse. Also in the third quarter there was a FLOP claim 38:37 38 minutes, 37 seconds income which was which was part of the revenues from other operations which was not there in the fourth quarter. 38:43 38 minutes, 43 seconds Otherwise the quarter has been uh and of course year end provisions which were not there in the three quarters initially which were done otherwise 38:50 38 minutes, 50 seconds there is no problem in the margins as such. So again you see the same thing coming up back coming back in the first quarter. There's a one-off switch which 38:57 38 minutes, 57 seconds are there. So because of that it's gone down. Okay. Thank you. That's it. 39:05 39 minutes, 5 seconds Thank you. 39:08 39 minutes, 8 seconds Next question is from the line of Ja from Genuity Capital. Please go ahead. I am audible. 39:16 39 minutes, 16 seconds Yes, please go ahead. 39:18 39 minutes, 18 seconds Uh uh the question is for uh broadley and it's more on a qualitative side. 39:23 39 minutes, 23 seconds First of all, congratulations for a great and you know being an ICT alumni you know it feels proud to be an ather shareholder the way a industry is 39:31 39 minutes, 31 seconds scaling up. Uh so am I the question is uh you know in the legacy products like for NAP and OG you know uh the chemistry 39:39 39 minutes, 39 seconds had been out there for a while. So I and we were competing against the likes of BSS, Lancet 39:47 39 minutes, 47 seconds guys who have a you know 100 year old legacy and still we've been able to scale up but as I see uh in our presentation also two areas and 39:55 39 minutes, 55 seconds especially I want to focus on material hands where a lot is being done by a and I think this is one of the fields of the 40:02 40 minutes, 2 seconds future because the way geopolitics is uh shaping up it's more like you know you have to do more with less materially and 40:10 40 minutes, 10 seconds keep more and more R&D and the demand that you know semiconductors AI these kind of sectors are coming up with. So I 40:18 40 minutes, 18 seconds want to know you know now in these new chemistries or new products that will be needed by these industries when a is you know competing against a DA or a BSA or 40:27 40 minutes, 27 seconds a Lancer etc. you know what gives a a fighting seat at the table uh so that the principal you know comes ahead and 40:35 40 minutes, 35 seconds actually shakes their hand with you versus one of these giants. 40:42 40 minutes, 42 seconds Yeah, thanks uh thanks for the question and uh always happy to talk to ICT uh alumni and uh still very much involved 40:49 40 minutes, 49 seconds in ICT. I think I was visit once in six months at least. I'm an official PhD gold. 40:54 40 minutes, 54 seconds Yeah. And so um happy to meet in Muna Cantino with a cup of coffee. But 40:59 40 minutes, 59 seconds [clears throat] 40:59 40 minutes, 59 seconds uh to answer your question um basically you know we continue to focus on core technologies core chemistries core 41:07 41 minutes, 7 seconds competencies innovate. I think we're one of the very few companies in specialty chemicals especially at our level in India that uh has a massive uh force of 41:16 41 minutes, 16 seconds chemical engineering chemical engineers along with chemists and chemistry in the R&D itself at the inception stages of 41:23 41 minutes, 23 seconds any project. That's where we can truly innovate in terms of unit operations and chemical engineering uh outlook towards the processes that we develop which 41:31 41 minutes, 31 seconds ultimately translates into increased cost competitiveness when we go to scale at production. Then also the economies of scale that we try to achieve are 41:39 41 minutes, 39 seconds truly world-class in all the production facilities that we set up. And finally I think you know it's also as if you if you are competing with the BXS and 41:47 41 minutes, 47 seconds Eastman and Lancet as you mentioned those are placed in with assets in Europe and US especially then you know the cost competitiveness from the labor 41:54 41 minutes, 54 seconds component of the production cost is truly uh very competitive in India and this cost position will remain for a 42:02 42 minutes, 2 seconds very long time you know we have a country of 1.6 6 billion with 60% under the age of 30. We have billion billion under the age of 30 and so this is going 42:10 42 minutes, 10 seconds to remain and so combining the innovations in chemistry and technology that we bring it into the processes which are truly uh new age and modern 42:18 42 minutes, 18 seconds and uh economics of scale of anything that we do and then being strategically located in India provides us firmly uh a 42:28 42 minutes, 28 seconds preferred seat at the table. It's not a seat at the table a preferred seat at the table with these principles. 42:34 42 minutes, 34 seconds Oh, that's that's lovely to hear. So just diving down uh more on you know advanced material someone if you can just explain me that uh when it comes to 42:43 42 minutes, 43 seconds R&D or even you know product development how is it that the whole process works maybe you can take any sector like an EV or a semiconductor or maybe space or 42:52 42 minutes, 52 seconds defense where a lot of you know new coatings are being required by the industry or new kinds of solvents are being acquired by the industry. So you 43:00 43 minutes know how is it that the ather plus the principle is it a whole of push model or is it ather that is doing something 43:07 43 minutes, 7 seconds bottom up on its own or is it the requirement of the customer you know like if you can draw some light on one of the breakthrough products that our 43:15 43 minutes, 15 seconds advanced material division has currently how was it developed or something I mean obviously I don't want the name but just just the whole process 43:23 43 minutes, 23 seconds yeah that's the whole business model so it'll take much longer than a minute to explain but in a in a very broad perspective you know It's a truly a collaborative uh approach that we take 43:32 43 minutes, 32 seconds with the customer where the customer uh has the has the product innovation where they have proved the efficacy in a 43:40 43 minutes, 40 seconds plant, in a body, in a material uh or in some application. The efficacy is proven where in proving the efficacy they they made the molecule but they didn't really care about how the molecule was made. 43:49 43 minutes, 49 seconds Just wanted to prove the efficacy on a material in material sciences. And that's where we step in where we pretty much uh some take can start on start 43:57 43 minutes, 57 seconds from scratch start from paper. A lot of times we take apart the entire route that they use to make the molecule in R&D during discovery where we take apart 44:04 44 minutes, 4 seconds the whole molecule uh and the process that they have and put it back together in what will be the ultimate economical 44:11 44 minutes, 11 seconds sustainable manufacturing process bringing in our innovation in chemistry and not only in chemistry but also chemical engineering technology. And so 44:19 44 minutes, 19 seconds then we do the process development in the lab, validate the process, innovate in the lab, then scale up in the pilot plant which is where we have one of the 44:26 44 minutes, 26 seconds largest pilot plants in the world where we have more than 15 branches going on at the same time where we can really pilot a process to death and that's 44:34 44 minutes, 34 seconds where you can really innovate by way of chemical engineering as well is in the pilot plant and then so that when you go into manufacturing our internal uh 44:41 44 minutes, 41 seconds mantra is that the first manufacturing should be had with a cup of tea and so that the process should be so well defined and you know that's broadly so 44:50 44 minutes, 50 seconds it's a collaborative approach that we take where we really bring in the process side and the customer brings in the discovery side thank you thank you for the question 44:59 44 minutes, 59 seconds great man great hope to see you sometime in future all the best thank you 45:06 45 minutes, 6 seconds thank you next question is from the line of bhavasangi from nshai please go ahead 45:17 45 minutes, 17 seconds yeah thank Thank you for the opportunity. Uh so my first question is on the R&D side as we as you mentioned 45:23 45 minutes, 23 seconds that uh you are doing a expansion in R&D side uh with 18 fumes already being installed. Can I get to know for what 45:32 45 minutes, 32 seconds sector uh we are focusing uh like if you can give the bifocation sector wise that uh from the R&D uh which sector we are 45:41 45 minutes, 41 seconds targeting and the second uh how much the portion of R&D is going for the client 45:48 45 minutes, 48 seconds specific for 10 section and for the LSM section. 45:53 45 minutes, 53 seconds Yeah, high level. Um um we uh focus on all sectors. So Palmer, agro, material sciences and oil 46:01 46 minutes, 1 second and gas are the four main sectors and the pipeline is filled with projects from all sectors. The current primary focus uh is material sciences and oil 46:10 46 minutes, 10 seconds and gas and uh moti in terms of the business models you know you could say 46:16 46 minutes, 16 seconds the pipeline is 70 75% uh pram manufacturing exclusive manufacturing 46:22 46 minutes, 22 seconds and 20 25% 30% LFM business model okay and as you mentioned in the 46:30 46 minutes, 30 seconds beginning that uh in the semiconductor material space you are expecting the washing potentially go triple by 2030. 46:39 46 minutes, 39 seconds So can you tell me what the current uh opportunity you are getting in this segment of semiconductor 46:48 46 minutes, 48 seconds uh details in terms of what exactly is the question? Uh 46:57 46 minutes, 57 seconds Rohan here. Um uh we are looking at producing on the first phase of 400 ton 47:05 47 minutes, 5 seconds uh of uh a particular set of molecules and where the average price would be $40 to $50 per kilo. 47:16 47 minutes, 16 seconds So I think you can do the math and you will have that number. 47:21 47 minutes, 21 seconds Got it. And just uh the last one on the LSN side as uh you said that the Q1 was 47:28 47 minutes, 28 seconds Q4 was impacted because of the current situation. So uh are we uh expected to 47:35 47 minutes, 35 seconds see the growth in going forward if such situations get uh normalized in future and what the growth we can expect segment wise from LSM, Graham and uh CM. 47:48 47 minutes, 48 seconds So as of today uh what we think and what we are anticipating is that in the medium term the prices will not decline 47:57 47 minutes, 57 seconds and so I think uh for the next two quarters we are safe to say that uh this elevated prices will remain and it will 48:06 48 minutes, 6 seconds uh we'll maintain this price momentum uh for the next uh two to three quarters. 48:15 48 minutes, 15 seconds In terms of the business verticles, I don't think we can give you a split as to what vertical will be growing. But uh you know it's safe to assume that the 48:24 48 minutes, 24 seconds cramps and CM business models shared in the PI will continue to increase especially with the commercialization of 48:32 48 minutes, 32 seconds site 3+ increase in revenue from site 4 and uh commercialization of site 5. Uh 48:39 48 minutes, 39 seconds so I think this 55% from CARAMS and CM will continue to rise in this financial year. 48:47 48 minutes, 47 seconds Okay, got it. Thank you. Thank you. 48:54 48 minutes, 54 seconds Next question is from the line of Rohit Nagash from 361 Capital. Please go ahead. 49:00 49 minutes Yeah. Uh good evening and thanks for the opportunity. Uh first question is in terms of the uh debt. So this year uh 49:08 49 minutes, 8 seconds you mentioned that we'll be investing about 300 to 350 crores uh and there is already debt sitting on the books plus 49:17 49 minutes, 17 seconds we will have additional revenues coming in for which the working capital requirement will also be there. So what is the number approximate number that we 49:25 49 minutes, 25 seconds are looking at FI27N and what is the current cost of debt? Thank you. 49:32 49 minutes, 32 seconds uh approximately by end of financial year 27 you can expect 200 to 250 crores additional in the debts not more than 49:39 49 minutes, 39 seconds that and I'm sorry on the open platform I cannot give you the cost of that 49:46 49 minutes, 46 seconds sure uh second question uh again in terms of the capeex so if you could just let us know in terms of what is the 49:55 49 minutes, 55 seconds remaining capeex across the three sites which we have already announced uh so effectively what would be the total 50:03 50 minutes, 3 seconds capeex that is still remaining part of which probably will be commissioned during this year and part will fall in the next year. Thank you. 50:11 50 minutes, 11 seconds It will be approximately all put together the site five is the major site and the site one where you are we are expanding the R&D. So all put together 50:20 50 minutes, 20 seconds it will be approximately 1,500 to 1,600 crores whole for in next four years not in one year next four to four years. 50:31 50 minutes, 31 seconds Okay, fair enough. And uh any uh number on the asset terms for the entire 1500 cr ballpark? I didn't get you. 50:39 50 minutes, 39 seconds Asset terms asset terms for site is being targeted between 1.5 to 1.75. 50:47 50 minutes, 47 seconds Perfect. Uh thanks a lot and all the best. Thank you. Thank you. 50:54 50 minutes, 54 seconds Next question is from the line of Prasad Hass from Spark Capital PWL. Please go ahead. 51:01 51 minutes, 1 second Uh yeah uh hi sir hope I'm audible. Uh so my question was uh regarding CRMS. So 51:08 51 minutes, 8 seconds for last 3 years if you see uh on annual uh level our CRMS uh contribution was 51:15 51 minutes, 15 seconds roughly around 12 to 14%. But this year it has significantly uh fallen to 9%. So 51:23 51 minutes, 23 seconds uh my question was uh is there any uh you know structural development uh or you see uh uh you know the contribution 51:31 51 minutes, 31 seconds rising again to double digit uh maybe in FI27 yeah Prasad that exists uh the in the 51:39 51 minutes, 39 seconds absolute terms the crimes numbers have increased though there is a slow increase because it's a service income so it is increased and because other 51:48 51 minutes, 48 seconds verticals like the CM is increasing well So the percentage it it is showing as 10%, otherwise if you see on yearon year 51:56 51 minutes, 56 seconds basis last year it was around I think so this [clears throat] time it is 107 next year we expecting it to grow more and 52:04 52 minutes, 4 seconds this is going to grow in in this way only because creme is a service income and it will keep on coming when the customers want to develop some products. 52:13 52 minutes, 13 seconds Okay. Uh and sir, I just want to try my luck. Uh any uh you know uh ballpark uh 52:21 52 minutes, 21 seconds mix uh that you look forward um maybe you can guide us for for 28 at least. 52:28 52 minutes, 28 seconds Sorry, can you repeat that question again? 52:31 52 minutes, 31 seconds Uh uh any ballpark uh product mix uh segment wise mix if you can give a 52:38 52 minutes, 38 seconds guidance for uh uh for uh at least effort 28. 52:45 52 minutes, 45 seconds FI28 but what we're looking uh over the next 3 to four years is uh 70% of the revenue coming from CRAS and CM and 30 52:54 52 minutes, 54 seconds odd% coming from uh large scale manufacturing thank you for 53:04 53 minutes, 4 seconds thank you thank you 53:11 53 minutes, 11 seconds next question is from the line of Pratik Shias from Newish Wisdom. Please go ahead. 53:18 53 minutes, 18 seconds Uh thank you for giving me the opportunity to ask the question sir. 53:21 53 minutes, 21 seconds First let me just congratulate on a great set of numbers and a great product mix 7030 which you are going toward. So the first question is on this fire 53:30 53 minutes, 30 seconds safety. Now we have seen two fire incidents one in November now in March. 53:36 53 minutes, 36 seconds So my question is uh what are the additional steps we are taking to sort of uh you know address this? 53:47 53 minutes, 47 seconds Yeah, thank you. Um obviously uh needless to say uh this is safety remains the topmost priority of the 53:55 53 minutes, 55 seconds company in all aspects. the November 2023 fire incident was the major one uh where we have uh spoken quite a bit 54:03 54 minutes, 3 seconds about it and there's no need to speak about it again I believe um but in terms of the current fire incident that 54:10 54 minutes, 10 seconds happened was truly u non-event uh there's minimal loss to property and uh 54:17 54 minutes, 17 seconds no injury no casualty no injury even to anybody and it was completely caused by 54:24 54 minutes, 24 seconds an event that wasn't under control. Uh it came from a neighboring devices and in fact the safety systems that were 54:33 54 minutes, 33 seconds there in the warehouse worked exceedingly well to protect the majority of the property inside the warehouse and 54:40 54 minutes, 40 seconds uh what was remaining was the very top floor which was uh impacted uh where it was only packing material and we have 54:48 54 minutes, 48 seconds obviously done a thorough study of why even that much was impacted and we are putting in measures to prevent that and 54:55 54 minutes, 55 seconds so actually This last incident was uh completely out of our hands, away from all operations, no injury. Systems 55:03 55 minutes, 3 seconds worked very well to uh prevent this from escalating and so we are satisfied with 55:08 55 minutes, 8 seconds the level of um response that was automatically triggered from that incident and whatever was missing has 55:17 55 minutes, 17 seconds been taken care of and we continue to improve on a daily basis on safety and it remains a top priority of the company. Wow. 55:25 55 minutes, 25 seconds Thank you sir. I think this is this should be taken at a higher priority giving again the new management which you are uh setting up in the company. So 55:33 55 minutes, 33 seconds I think this is very important and thank you sir for because I think uh you know we we truly believe in the management and the company but sometime you know 55:42 55 minutes, 42 seconds these incidents just uh causes some confusion right into so thank you for sir. My second question is on the 55:50 55 minutes, 50 seconds product mix. So first is on on the LSM revenue. So we have seen that in Q4 uh 55:56 55 minutes, 56 seconds our LSM revenue uh dropped 9% Y despite 25% volume growth. Now if I take that it 56:04 56 minutes, 4 seconds means that there was a 25 sorry 27 to around 30% price erosion in LSM. So what 56:12 56 minutes, 12 seconds can this be attributed to? Is this China driven or or can you share you know some more color on this? 56:24 56 minutes, 24 seconds Hi, I'm not sure how you got the price erosion but uh what we have seen is a price increase. There's been a volume uh 56:31 56 minutes, 31 seconds decrease in LSM in Q4 uh which as I mentioned to you earlier was that on account of the logistics issues uh which 56:39 56 minutes, 39 seconds has then been shipped to the uh respective customers in the months of April and May uh which were done at a 56:46 56 minutes, 46 seconds higher price. Having said that uh in terms of pricing as well as demand it continues to sustain and we are seeing 56:54 56 minutes, 54 seconds good progress uh with respect to the LSM model uh especially with our current products as well as the new products which will be coming up on commercialization from site 5. 57:06 57 minutes, 6 seconds Yes. And uh coming to site five we are saying that we'll have three new LSM products right at $30 to $40 per kg. Uh 57:16 57 minutes, 16 seconds that right sh right now does China currently manufacture any of these molecules and do we know what the market 57:24 57 minutes, 24 seconds price would that be for around uh two are Chinese one is a Japanese manufacturer so we are competing against 57:33 57 minutes, 33 seconds majorly a Japanese manufacturer but again to needless to say uh China uh is 57:40 57 minutes, 40 seconds present in all the molecules which we or anybody else in India is making. So for that reason we have to indirectly or 57:48 57 minutes, 48 seconds directly fight uh against China or compete against China. Uh on the pricing side we always defend our pricings. Uh 57:58 57 minutes, 58 seconds uh we are never very aggressive in terms of selling at uh lower margins. Uh so we 58:06 58 minutes, 6 seconds we always keep our prices at par. uh and we also consider import duties 58:13 58 minutes, 13 seconds uh as a delta between the Chinese price or a foreign price and enterprise when we are selling in a domestic market. 58:23 58 minutes, 23 seconds Got it. Uh and sir we are moving towards the 7030 target uh right uh 70 for CM 58:31 58 minutes, 31 seconds and trams and 30 for LSM. any uh sort of uh guidance on the timeline uh when we can uh reach this distribution this part 58:40 58 minutes, 40 seconds of it uh no I don't think we would like to give you any timelines but we're targeting this in the next uh couple of 58:47 58 minutes, 47 seconds years so yeah got it got it okay okay thank you thank you sir question thank you for this 58:55 58 minutes, 55 seconds thank you very thank you next question is from the line of rohiti um progressive shares Please go ahead. 59:04 59 minutes, 4 seconds Uh hi. Uh three questions from my side. 59:07 59 minutes, 7 seconds Uh well the tailwinds of China plus one and probably Europe plus one now uh they're still supportive where some of these customers would be looking at 59:15 59 minutes, 15 seconds alternative suppliers. Uh where we can play a big role as scaled uh specialtity manufacturing platform. These recent 59:24 59 minutes, 24 seconds winds which were there uh these were basically because of either pricing or uh chemical capabilities or maybe because of our uh supplier reliability. 59:37 59 minutes, 37 seconds Yeah. So um China plus one Europe plus one is all happening uh and accelerating and increasing. So and I think it's a mix of all the factors that you listed. 59:46 59 minutes, 46 seconds It's uh chemical capabilities proven track record. You know we talked quite a bit about our innovation and competencies. that's certainly the the 59:54 59 minutes, 54 seconds most attractive uh point but also being placed strategically in India where the cost competitiveness of India drives in 1:00:01 1 hour, 1 second and so combining both the competencies and innovation at truly mean like comparable to anywhere in the world 1:00:09 1 hour, 9 seconds along with being a strategic location of India uh helps quite a bit and um yeah 1:00:15 1 hour, 15 seconds that that's uh what uh pushes towards okay okay uh uh you If you can take us 1:00:22 1 hour, 22 seconds through at uh site five, how many uh production blocks are already constructed and probably running and uh 1:00:30 1 hour, 30 seconds how many are still yet to be constructed in phase two? 1:00:34 1 hour, 34 seconds Kusham um Roan here um we have already uh completed the construction of four 1:00:42 1 hour, 42 seconds blocks. Two blocks are already uh uh ready to run. So water trials and 1:00:49 1 hour, 49 seconds solvent trials are ongoing. I think we'll have a good news very soon when we start the commercial production on on 1:00:58 1 hour, 58 seconds two production blocks. However, we have started digging hole uh in the uh other 1:01:05 1 hour, 1 minute, 5 seconds four production blocks uh so that we are out of uh ground uh before the rain hits us. Mhm. 1:01:13 1 hour, 1 minute, 13 seconds Um and a total of 16 production blocks can come in on site five and then we 1:01:20 1 hour, 1 minute, 20 seconds also have 15 acres of site five plus which is the adjoining plot we recently block bought. So over there we think 1:01:28 1 hour, 1 minute, 28 seconds around four another production blocks can come in. So if you combine both the uh both the land bank it's 45 46 acres 1:01:37 1 hour, 1 minute, 37 seconds and we'll have 20 20 production blocks coming in more or less as per our plan as of today our plan uh in this site five. 1:01:48 1 hour, 1 minute, 48 seconds Okay. Uh my last question uh Dr. Raman uh currently we must be at around uh maybe uh 8x8 uh by when do you think uh we'll be 10x 10? 1:02:01 1 hour, 2 minutes, 1 second Thank you. Um we started with 8 by 8x 8x and so I think we already at about say 9 by 9 if you will and 10 by 10 should be 1:02:09 1 hour, 2 minutes, 9 seconds for sure within the end of this year and so we are rapidly accelerating uh the adoption of newer competencies and 1:02:16 1 hour, 2 minutes, 16 seconds chemistries and technologies supplementing and complementing the original lead by it. So that's the focus 1:02:24 1 hour, 2 minutes, 24 seconds remains the focus will always be the focus. Thank you. 1:02:28 1 hour, 2 minutes, 28 seconds Is it possible to uh share something on these upcoming chemistry that you're already working on? 1:02:33 1 hour, 2 minutes, 33 seconds So I mentioned uh in my uh speech earlier about integrated uh and focused polymerizations specifically high 1:02:40 1 hour, 2 minutes, 40 seconds continuous high pressure and extreme process conditions polymerizations that's uh literally the flavor of the quarter doing quite a bit towards that. 1:02:52 1 hour, 2 minutes, 52 seconds Okay. Okay Dr. Thank you for answering. Thanks a lot. Thank you. Thank you. 1:02:57 1 hour, 2 minutes, 57 seconds Thank you. As there are no further questions from the participants, I now hand the conference over to the management for the closing comments. 1:03:06 1 hour, 3 minutes, 6 seconds We thank everyone for joining the conference call. If there are any further questions, please reach reach out to us directly. Uh thank you once again. Bye-bye. 1:03:15 1 hour, 3 minutes, 15 seconds Thank you sir. On behalf of HDFC Securities, that concludes this conference. Thank you all for joining us and you may now disconnect your lines.