AG Ventures Ltd — Q3 FY26

AG Ventures Ltd Q3 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=liRwFSdzqeg Published: 3 months ago

0:01 1 second Ladies and gentlemen, good day and welcome to Q3 and 9month FY26 earnings conference call of OCCLA Limited. 0:10 10 seconds As a reminder, all participant clients will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation 0:17 17 seconds concludes. Should you need assistance during the conference call, please signal an operator by pressing star then 0:24 24 seconds zero on your touchdown phone. Before we begin, a brief disclaimer. This conference call may contain forward-looking statements about the 0:32 32 seconds company which are based on the beliefs, opinions and expectations of the company as under the date of this call. These statements are not the guarantees of 0:41 41 seconds future performance and it may involve risks and uncertainties that are difficult to predict. 0:47 47 seconds Anna hand confence over to Mr. Akshar Goena, joint managing director of OCCL limited. Thank you and over to you sir. 0:57 57 seconds Good afternoon everyone and a very warm welcome. Joining me today are Mr. Anurra Jan our CFO along with our investor 1:04 1 minute, 4 seconds relations advisor SGA. We've already shared our financial results and investor presentation for the quarter 9 1:11 1 minute, 11 seconds months ended 31st December 2025 on the stock exchanges and our company website and we hope you have had the opportunity 1:18 1 minute, 18 seconds to review them. The broader macro environment has also been supportive. 1:24 1 minute, 24 seconds Calendar year 2025 witnessed strong growth in automobile sales driven by multiple positive factors such as reduction of GST uh income tax 1:33 1 minute, 33 seconds reductions and a more accommodative monetary policy. India's economic performance has remained resilient despite global headwinds and these 1:41 1 minute, 41 seconds developments have led to higher vehicle production and improved capacity utilization across the Thai industry. 1:48 1 minute, 48 seconds A large share of our exports is directed towards Europe where relations remain stable and constructive. 1:59 1 minute, 59 seconds Additionally, the reduction in US tariffs from 50% to 18% is expected to aid contribution over time which will 2:06 2 minutes, 6 seconds help uh improve our margins. On the domestic front, following the imposition of anti-dumping duties on imports from Japan and China, combined with the 2:15 2 minutes, 15 seconds strong performance of the Indian automobile industry, the operating environment has become increasingly favorable. This positions the company 2:22 2 minutes, 22 seconds well to pursue its strategic objective of growing domestic market share uh and increasing it over time. 2:33 2 minutes, 33 seconds Though all-time high prices of sulfur are affecting our margins, uh we expect either the sulfur prices to 2:42 2 minutes, 42 seconds come down or our competition and us to pass on these increasing raw material prices to our customers. 2:52 2 minutes, 52 seconds The Indian tire industry is expected to grow by 7 to 8% in FI26. 2:57 2 minutes, 57 seconds This outlook has been further strengthened by recent budget announcements, particularly the increase in government capital expenditure. 3:08 3 minutes, 8 seconds To conclude, supported by a strong financial foundation, operational agility, and long-standing customer relationships, we remain confident in 3:15 3 minutes, 15 seconds our ability to emerge stronger as market conditions stabilize with signs of recovery already visible in the domestic market. Now, I'll hand the line over to Mr. Tanur Jan. 3:28 3 minutes, 28 seconds Thank you Akar. Uh I will now take you all through the financials of the company. 3:34 3 minutes, 34 seconds Uh the highlights of Q3 FY26 are as follows. Total income for Q3 FY26 stood 3:42 3 minutes, 42 seconds at rupees 114.6 crores as compared to rups 96.5 crores in Q3 FY25. A growth of 19% yearonear. 3:52 3 minutes, 52 seconds A bit for Q3 FY26 stood at rupees 20.2 crores as compared to rupees 16 crores 3:59 3 minutes, 59 seconds in Q3 FY25 a great growth of 25% yearonearita margins stood at 17.6%. 4:08 4 minutes, 8 seconds Profit after tax for Q3 FY26 is stood at rupees 6.5 crores as compared to rups 4:13 4 minutes, 13 seconds 5.2 crores in Q3 FY25 sorry pack margin stood at 5.7%. 4:22 4 minutes, 22 seconds Uh now let me highlight the performance for the 9 months ended FY26 as the company had accounted for the de merger of the chemical business of AG 4:31 4 minutes, 31 seconds ventures limited formerly known as Oriental Carbon and Chemicals Limited into the company with effect from the appointed date of 1st July 2024. The 4:40 4 minutes, 40 seconds 9-month results for FY26 are not comparable with the corresponding 9 months period of the previous year as the company did not have operations till the 1st of July 2024. 4:53 4 minutes, 53 seconds Total income for 9 month stood at rupees 258.7 crores. AITA for 9 month FY26 is stood 5:03 5 minutes, 3 seconds at rupees 67.1 crores. AITA margins is stood at 18.7 crores. Profit after tax 5:11 5 minutes, 11 seconds stood at rupes 28.4 crores while prof margins were 7.9%. 5:21 5 minutes, 21 seconds We can now go to question and answers. 5:26 5 minutes, 26 seconds Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchstone 5:34 5 minutes, 34 seconds telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are 5:41 5 minutes, 41 seconds requested to use handset while asking a question. Ladies and gentlemen, we will wait for a moment while the question assembles. 6:14 6 minutes, 14 seconds The first question is from the line of Adita Ketan from Smith Institutional Equities. Please go ahead. 6:22 6 minutes, 22 seconds Yeah, thank you sir for your port review. Just a couple of questions. Uh sir when we look at the sulfur prices 6:29 6 minutes, 29 seconds from uh August 2025 till date definitely the prices have doubled like in this period of time. Just sir want to know 6:38 6 minutes, 38 seconds how are we passing on this cost and what and I believe sir I have read some reports wherein we are mentioning like for the complete this calendar year also 6:46 6 minutes, 46 seconds prices might remain might remain at an elevated level. So now what is the strategy because surfer price prices 6:53 6 minutes, 53 seconds isn't uh to seem to come down any outlooks are like now how will the company strategy will change or the 7:00 7 minutes contracts can be renegotiated at higher prices because already the demand is weak. So how much the uh customers can absorb these sort of higher cost. 7:11 7 minutes, 11 seconds Uh you are right. Uh uh the average price for Q3 was about Q3 that is July the September was about 29 rupees. 7:19 7 minutes, 19 seconds Current price is about 52 rupees. So there has been a substantial increase in sulfur prices. Uh the only way we can 7:27 7 minutes, 27 seconds pass it on we have been able to pass some of it on in the domestic market not in the international market. Uh the only way we can pass it on is if the 7:36 7 minutes, 36 seconds competition also increases the price. Uh we think that looking at the surfer price increase as temporary they the 7:45 7 minutes, 45 seconds competition might have not increased the prices as yet but now since it has uh been uh rather a long period of price 7:54 7 minutes, 54 seconds increase uh we feel that it will be difficult for even the competition to absorb the price and they are bound to increase prices which should help us. 8:03 8 minutes, 3 seconds Secondly, obviously uh wherever our pricing are formula based there uh the the pricing will follow the formula and 8:12 8 minutes, 12 seconds we will get the increase or decrease as applicable. 8:15 8 minutes, 15 seconds However, in sulfuric acid we have been able to pass on the increase because sulfuric acid is always sold based on the sulfur prices. 8:25 8 minutes, 25 seconds Got it sir. Uh so my second question is uh uh is there any change in outlook in exports market because uh you were 8:33 8 minutes, 33 seconds targeting earlier the North American market and you had highlighted earlier that there has been some competition issues if now like India stands at an 8:41 8 minutes, 41 seconds advantage compared to global players. So is there any sort of a increase in volumes we can see in US market and the 8:49 8 minutes, 49 seconds Europe market like uh any s change in strategy or any sort of higher volumes like which can take our material 8:57 8 minutes, 57 seconds utilization to higher levels because our utilization still remains underutilized only any thoughts on that s 9:06 9 minutes, 6 seconds uh when the when the American tariff was increased we had to give deep discounts to uh to maintain our supply to America 9:13 9 minutes, 13 seconds which ffected our margins. But since the that tariffs have been rolled back significantly, so will our discounts be 9:19 9 minutes, 19 seconds rolled back. Uh even though our uh tariffs are at uh uh advantage visa with 9:28 9 minutes, 28 seconds China but in America most of the supply of absorbable sulfur is local from American plants. So it does not depend 9:35 9 minutes, 35 seconds on tariffs. Our uh strategy visav export market continues as before. uh but uh it 9:45 9 minutes, 45 seconds was suspended because of the tariff now that the tariffs have been rolled back. 9:50 9 minutes, 50 seconds Uh we are looking at the export market with renewed vigor but as always it will take some time. 9:58 9 minutes, 58 seconds What? So so during the quarter if you can like give some quantitative idea like how much volumes we could have lost and how much discounting we could have 10:06 10 minutes, 6 seconds taken potentially hitting AIDA and top line. Can any sort of a quantitative number? So see uh when when the tariffs have gone from 0 to 50%. 10:17 10 minutes, 17 seconds So uh you can very well maintain to same to you know to maintain the same price we have had to give discounts in the American market in the range of 25%. 10:30 10 minutes, 30 seconds Okay. Right. Yes. 10:34 10 minutes, 34 seconds Okay. But sir during the quarter expenses also some materially they look lower when you compare Bah but top line has definitely increased. It seems there 10:42 10 minutes, 42 seconds is a one-off in that and s second continuation question s considering the today's financials 10:50 10 minutes, 50 seconds position seems like the complete anti-dumping duty benefit has been taken away. How are you seeing like going ahead? 10:57 10 minutes, 57 seconds What are the Sorry uh can you repeat the second part of your question? I didn't get you the second part of your question. 11:04 11 minutes, 4 seconds My question was considering that these raw material prices of sulfur the complete benefit of anti-dumping duty 11:11 11 minutes, 11 seconds had been taken away like we back to like original margins and all. So how you see like volumes and margins playing out in the near term? 11:20 11 minutes, 20 seconds So uh to answer uh your first question uh 11:29 11 minutes, 29 seconds the to answer your first question in September 30 there was a one time expenditure on account of uh duty and 11:36 11 minutes, 36 seconds also uh on account of duty pursuant to de merger and also there is a sulfuric acid annual shutdown expenditure which 11:45 11 minutes, 45 seconds is sitting that is why it is uh seeming a bit higher last uh sorry uh in the preceding quarter but it is the same as the same quarter last 11:54 11 minutes, 54 seconds year. And coming to your second question, yes, you are absolutely right. 11:58 11 minutes, 58 seconds The fact that uh the Chinese did not increase the price uh even though the raw material prices have increased have 12:05 12 minutes, 5 seconds uh taken away the whole uh benefit of the uh anti-dumping duty. uh as far as 12:12 12 minutes, 12 seconds the quantities are concerned the the way we look at the domestic market is uh sense the margin that means 12:19 12 minutes, 19 seconds that whatever the margins our our strategy of getting the domestic market uh share remains the same. So 12:29 12 minutes, 29 seconds we are aggressively looking at increasing our share in the domestic market and that that strategy is going to get more focused in the coming years. 12:40 12 minutes, 40 seconds So, so the pressure on prices. 12:44 12 minutes, 44 seconds So, the pressure on prices that will remain and competition will continue to remain intent. You mean to say the pressure on pricing is there. I mean 12:53 12 minutes, 53 seconds pressure on margin. Let me put it this way because even though we got an entry dumping and we were able to increase our prices, our margins did not increase. In 13:00 13 minutes fact, it came down a little bit because of the uh uh sulfur prices. Now we are hoping that since high surfer prices 13:09 13 minutes, 9 seconds have sustained for more than 6 months there is going to be an impact on the profitability of the competitors and they are also going to increase the 13:16 13 minutes, 16 seconds prices or else the sulfur prices will itself come down. Got it sir. Thank you. Thank you. 13:28 13 minutes, 28 seconds Thank you. The next question is from the line of Videsh Gandhi from Discover Capital. Please go ahead. 13:36 13 minutes, 36 seconds You know I just want to understand uh how much would you estimate is the impact of this tariffs in the US and uh 13:44 13 minutes, 44 seconds now that they've been removed what sort of an impact do we see in terms of IBIDA. 13:54 13 minutes, 54 seconds So uh you know it's very difficult to give out figures like that because these tariffs actually happened midway through 14:02 14 minutes, 2 seconds the year. So while we have our own internal calculations as to how much margins would have been hit had these 14:10 14 minutes, 10 seconds tariffs kept moving and how much of course they will recover by but it will not be possible to uh to give out numbers which will then correlate to the P&L. 14:20 14 minutes, 20 seconds So because but is it is it safe to assume that even at the existing prices of sulfa and the 14:28 14 minutes, 28 seconds existing prices of um of of product that we should see a reasonable amount of 14:36 14 minutes, 36 seconds enhancement happening in Q4 given the tariffs have now gone away at least the next couple of hundred basic 14:45 14 minutes, 45 seconds points in the terms of Ibida market. So I I'll allow Honor to answer this but I would like to make one clarification for 14:52 14 minutes, 52 seconds everybody on this call. The tariffs have not gone away as yet. Okay. 14:57 14 minutes, 57 seconds And we don't know which day the tariffs are going to go away. At least I'm not aware of the that it's not been notified. 15:04 15 minutes, 4 seconds It's not been notified. 15:07 15 minutes, 7 seconds No, it's not been notified. So we don't know which day it'll be notified. It could have been right now. So effectively right now 15:14 15 minutes, 14 seconds anything you export is subjected to the tariffs. Is it still tariffs? Yes. Yes. Yes. It's still subject. 15:23 15 minutes, 23 seconds Okay. So I'm think so I'm assuming it goes away. Let's assuming it goes second. 15:32 15 minutes, 32 seconds My understanding is it's still subject to 50%. 15:48 15 minutes, 48 seconds Okay. I think this is a gray area. 15:52 15 minutes, 52 seconds No. No. So I'm saying I'm saying I'm saying let's like leave aside whether it's applicable for now or after a notification which hopefully should 16:01 16 minutes, 1 second come. But what is this sort of do we expect a reasonable uptake or is it like a marginal uptake that we expect? 16:08 16 minutes, 8 seconds No. So as far as the sales in America is concerned, I have already said that we have had to give 25% up in the range of 16:16 16 minutes, 16 seconds 25% discounts and right now how much is the approximate uh revenue from America? 16:23 16 minutes, 23 seconds So that is something uh we cannot disclose but yes uh in roughly in terms of are we talk about 16:32 16 minutes, 32 seconds like 15 20% of revenues are we talk about 30% of revenues or is it an inconsequential how do we get 16:41 16 minutes, 41 seconds some sense I mean look the revenue see the problem is that the revenue that we have is an 16:48 16 minutes, 48 seconds amalgam of sulfuric acid as well as of uh insoluble sulfur and this keeps the 16:56 16 minutes, 56 seconds percentage keeps on changing depending on the price of sulfuric acid. So for me to say that this is so much percentage of the revenue is not something which 17:04 17 minutes, 4 seconds will be correct because that percentage can keep on changing even if that tage of insoluble sulfur remains depending on 17:10 17 minutes, 10 seconds the ins sulfuric acid price but what we can say is that our estimated calculations on the bottom line are not 17:18 17 minutes, 18 seconds insignificant that okay fine I mean if this tariff continues longterm then it would have had a decently decent impact on the bottom line. 17:29 17 minutes, 29 seconds Got right now you're saying if stuff like normalizes there should be a reasonable impact on the bottom line once the tariffs go away. 17:39 17 minutes, 39 seconds Yeah. But you have to you have to see that had it not gone away there would have been because the tariffs remained in place from August till Feb right if 17:49 17 minutes, 49 seconds no no please I'm saying whether it goes away in Jan end or end Feb or end March whenever let's say what I'm saying the 17:57 17 minutes, 57 seconds the what I'm saying is in the current year the impact of tariff is only from August and not for the first 18:04 18 minutes, 4 seconds okay sir I'm not talking about the entire year at all I am talking about we've seen the we've seen what the like 18:12 18 minutes, 12 seconds numbers are in Q3 right assuming in Q3 there was no tariffs we would be at a 18:18 18 minutes, 18 seconds reasonably higher IBIDA number yes that is right okay so the other question is is is it 18:28 18 minutes, 28 seconds part of the reason why we unable to pass on the higher RM prices because there's 18:36 18 minutes, 36 seconds also a little bit of a supply glut where the supply is higher than a than a demand. 18:45 18 minutes, 45 seconds Yes. Yes. 18:45 18 minutes, 45 seconds Yes. That is true. That that is true. So do we how long before that it normalizes and then I'm saying that if if there's 18:53 18 minutes, 53 seconds always a bit of a supply glut and people have already put up incremental capacity 19:00 19 minutes and so you would then want to sort of run utilization as high as you can even 19:08 19 minutes, 8 seconds if you have to take a hit in terms of of a margins right given you've already had that capacity. So could this lead to a 19:16 19 minutes, 16 seconds you know uh multi-year sort of compression and lower you know margins. 19:23 19 minutes, 23 seconds See the current the current capacity utiliz utilization levels around the world are between 70 to 75% as per our reckoning. 19:31 19 minutes, 31 seconds Okay. And if we are looking at uh uh say 2 and a half to around 2 to 3% growth 19:38 19 minutes, 38 seconds globally in in the in the demand of insoluble sulfur and uh if we think that 85% capacity utilization is a healthy 19:46 19 minutes, 46 seconds capacity utilization. So we can do the math as to see how maybe four five years of this. 19:53 19 minutes, 53 seconds Got it. So until then we sort of though sorry sorry though the Indian market is growing at a much f uh faster 20:03 20 minutes, 3 seconds pace. So that is a different story. Yeah please continue ask. What and and so but but but but with with 20:10 20 minutes, 10 seconds with regards to India what we what we are seeing if I hear you is that the 20:17 20 minutes, 17 seconds benefits of the ADD effectively the Chinese are taking the hit in terms of prices just to get the volumes going. 20:26 20 minutes, 26 seconds Yeah. So, so, so basically I would say that the add impact has kept our margins 20:33 20 minutes, 33 seconds in intact in spite of uh insoluble in in spite of sulfur prices going up. I get it. Okay. 20:40 20 minutes, 40 seconds So, our contribution has not improved but at least it has remained stable. 20:47 20 minutes, 47 seconds Had a not been there then our contribution would have been really badly hit. 20:52 20 minutes, 52 seconds Got it. So, we So, I mean Okay, just in the last question I have. 21:00 21 minutes Is that's okay or I can rejoin the queue. Okay, I'll rejoin the queue. 21:09 21 minutes, 9 seconds Can I ask you to join the queue? Either way, just let me know. Thank you. Thank you. 21:17 21 minutes, 17 seconds The next question is from the line of Anubhab Mukharji from Capital. Please go ahead. Am I audible? 21:25 21 minutes, 25 seconds Yes, you are. 21:26 21 minutes, 26 seconds Hello. Uh sir, uh like can you share like what is the uh current uh 21:33 21 minutes, 33 seconds realization in the domestic market in India compared to uh like preD uh uh 21:41 21 minutes, 41 seconds situation like if what I understand is that before the ADB was implemented uh prices in India were below 900 21:50 21 minutes, 50 seconds per metric ton. So how like how is the current uh prices in the domestic market? 21:58 21 minutes, 58 seconds See the AD that was imposed was in the tune of about $300, right? 300 odd 22:04 22 minutes, 4 seconds dollars and uh uh therefore the the impact is not exactly $300 because 22:11 22 minutes, 11 seconds material is coming from Malaysia, Japan and China. uh but uh at an average we 22:18 22 minutes, 18 seconds were you know able to get uh uh increase and selling price in in terms of rupees 22:27 22 minutes, 27 seconds say around 200 plus minus dollars from that time. 22:33 22 minutes, 33 seconds Okay. And even with this $200 we are only able to sort of mitigate the impact of uh sulfur price increases is what you 22:41 22 minutes, 41 seconds are seeing. We have been till now we have been able to mitigate but if it remains this obviously my my my my 22:49 22 minutes, 49 seconds contribution is going to be a little little bit lower but yes as ash has pointed out that till now we have been able to mitigate the price because that 22:58 22 minutes, 58 seconds is the increase the impact of increase is about 20 22 rupees till now it it might go up to 25 rupees 23:06 23 minutes, 6 seconds and uh like in January and uh very recently Has there been any price increases? Because I was reading that in 23:15 23 minutes, 15 seconds the domestic market uh some players have taken a price hike to pass on sulfur price increase. Is that the case or that is not true? 23:25 23 minutes, 25 seconds No. Which players have taken the do you mean insoluble sulfur or some other people? Infallible sulfur. Yes. Exactly. 23:33 23 minutes, 33 seconds Have taken high pass on the sulfur prices. We have we have uh been in touch with the domestic market player with our customers in domestic market. 23:44 23 minutes, 44 seconds We and we have been able to get some increases with some tire uh companies uh but it is not consistent throughout but 23:52 23 minutes, 52 seconds we have been able to get some increase but not to cover the whole uh price increase. 23:59 23 minutes, 59 seconds Okay. because our our capability to get increases marred by the uh import prices. 24:07 24 minutes, 7 seconds Yes. And and like prices have not like uh seen any recent improvement. 24:16 24 minutes, 16 seconds We hope to see it in the future but till December there was no significant improvement in the port prices. 24:23 24 minutes, 23 seconds Okay. And sir, have you seen any market share improvement in the domestic market uh with the help of ADB or like the import volumes are still at same value? 24:34 24 minutes, 34 seconds See it is very difficult to uh to talk about market share on a short-term 24:41 24 minutes, 41 seconds basis. Uh we will be uh we will be able to tell you more about 24:48 24 minutes, 48 seconds market share say in the month uh after the sixth month of the current year are completed. only then I think we'll be in a position to tell you that you know how 24:56 24 minutes, 56 seconds our market share has moved for a short-term basis you know it depends on uh many many things such as imports coming uh in more in one month and then 25:06 25 minutes, 6 seconds less in the other and and the consumption is not entirely linear. So it's not it's it's very difficult for me 25:13 25 minutes, 13 seconds to comment on the market share even if the uh if my sales are growing then it could still not be a result of increase 25:21 25 minutes, 21 seconds in market share because the demand might be growing. So please allow us time till June and we will come back and tell you whether we are seeing the market share increase. 25:31 25 minutes, 31 seconds uh get that sir. I'm sure in the previous call we had mentioned that we are witnessing uh like uh imports from 25:38 25 minutes, 38 seconds Malaysia writing uh so is that still the case and uh a followup is that we were 25:45 25 minutes, 45 seconds also trying to uh like uh take it up with the government. So uh any any updates on that? 25:55 25 minutes, 55 seconds Okay. 25:57 25 minutes, 57 seconds Malaysia is also uh continues to uh uh you know play aggressively in the Indian 26:03 26 minutes, 3 seconds market and uh their prices are also affected by the 26:08 26 minutes, 8 seconds Chinese prices. Uh we had planned uh to go uh against Malaysia 26:18 26 minutes, 18 seconds and uh we are we are we are in under uh consultation with our lawyers for the 26:25 26 minutes, 25 seconds same and let us see you know what okay the second thing 26:34 26 minutes, 34 seconds yeah yeah please go sorry I didn't mean to interrupt Please go ahead. 26:42 26 minutes, 42 seconds No sir, you were mentioning something. We'd be happy to listen. No, no, it's it's okay. Please do that. 26:49 26 minutes, 49 seconds Uh sir and uh did we face any tariff when exporting to you and did this change the uh will that like go away? 27:01 27 minutes, 1 second No, no, the tariff to U is marginal and it is within the limit which is revised. 27:05 27 minutes, 5 seconds I don't think there is going to be any change in the tariff in your in huge anyway marginal and it is not going to impact with the new tariff policy. 27:17 27 minutes, 17 seconds And the last question from my side is of course you mentioned that you took some hit uh of 25% discount uh uh from 27:25 27 minutes, 25 seconds exports to us but uh were we able to maintain like the sales volume to us in the current quarter or did we suffer 27:33 27 minutes, 33 seconds some decline in uh exports volume to us as well? So on a long-term basis we have been able to maintain but in a 27:40 27 minutes, 40 seconds short-term basis when we when the duty was transitioning at in for one or two months our uh supplies went down. So 27:49 27 minutes, 49 seconds that is that is the we took for those one or two months but then uh once the rates were renegotiated they started again at the previous level. 28:00 28 minutes So sir there are some uh uh volume impact or maybe also in Q3 28:11 28 minutes, 11 seconds volume impact for that in Q3. Yes, you are right. 28:15 28 minutes, 15 seconds Okay. I'm sure are exports still more profitable compared to domestic fields for us. Uh I think that was the case. 28:25 28 minutes, 25 seconds Yes. Yes. Okay. It still continues to be more. 28:29 28 minutes, 29 seconds Yeah, if you look at it on the overall the average, we still make more margins on exports. 28:35 28 minutes, 35 seconds Yes sir. I'll get back to you. Thanks. 28:42 28 minutes, 42 seconds Thank you. The next question is from the line of Madurati from Counter Cyclical Investments. Please go ahead. 28:50 28 minutes, 50 seconds So, can you quantify that out of the 20 KITa in this quarter, how much was the contribution from sulfuric acid? 29:02 29 minutes, 2 seconds uh it it is significant. Sulfuric acid has done well. So the contribution is significant. Uh I will not be able to 29:10 29 minutes, 10 seconds give you the exact number but it is better than what it has been previously but on a steady state basis out of our 29:17 29 minutes, 17 seconds whatever a bit we do annually what on an average uh sulfuric acid contributes what percentage? 29:26 29 minutes, 26 seconds No, it's not a fixed percentage, right? 29:29 29 minutes, 29 seconds Uh it changes because sulfuric acid is a very uh seasonal. 29:36 29 minutes, 36 seconds Yeah, it's a very seasonal product, right? So it it might be negative one month in one quarter and then very bumper in the next quarter or on an 29:45 29 minutes, 45 seconds annual basis. Yes, this this year sulfuric acid has been good. So the contribution is very good but there is no guarantee that it will sustain even for Q Q4 itself. 29:57 29 minutes, 57 seconds right now. Uh also uh recently in this budget the government reduce the taxation on 30:06 30 minutes, 6 seconds share buyback and for corporate uh promoters that the shareholding is in corporate entities or promoters it is 30:13 30 minutes, 13 seconds 22% tax. So and uh please tell us the net debt of the company and any plans to do a share buyback because earlier two 30:22 30 minutes, 22 seconds years back we were waiting for the de merger to happen and now that all of that has happened so any update over there. 30:30 30 minutes, 30 seconds Okay. 30:32 30 minutes, 32 seconds No there are currently no plans for share that as of now. Right. Right. 30:39 30 minutes, 39 seconds Okay. And what's the import duty right now on our exports to Europe which will become zero once the uh free trade agreement comes into play? 30:47 30 minutes, 47 seconds No, I I I did not say that it will become uh zero. uh I said it is very marginal because uh it uh depends on the 30:54 30 minutes, 54 seconds HSN codes and everything but it is marginal if I remember correctly it's uh uh around 2.5% or less like that. 31:06 31 minutes, 6 seconds Okay. The import duty on Europe uh on our products on our Yes. Yes. Okay. Okay. 31:14 31 minutes, 14 seconds Uh sir just one question sir would a beta would be higher by 7 to 8 cr had we 31:21 31 minutes, 21 seconds uh gotten the $200 realization benefit for this quarter uh from the anti-dumping duty for the domestic market. 31:30 31 minutes, 30 seconds Sorry I did not get your question. Uh can you repeat it not clear? I'm trying to understand that we are we we would 31:38 31 minutes, 38 seconds have gotten the $200 realization benefit uh from the anti-dumping duty which was offset by increase in the sulfur prices. 31:47 31 minutes, 47 seconds So dollars I said in that range. Yeah. So it's rupee right please. Yeah. Yeah. 31:56 31 minutes, 56 seconds 200 uh rupees or $200 for no we sell in rupees in domestic market. Right. 32:03 32 minutes, 3 seconds So what I'm saying is we have not been able to get the full 3 to 62 length somewhere between you know in in that area that that is there. Yeah. 32:14 32 minutes, 14 seconds Right. So so like yeah so if I look on a per metric term basis uh the $200 32:22 32 minutes, 22 seconds realization that would have ideally been flow majority of that would have been flowed to our bottom line. So, so that 7 32:29 32 minutes, 29 seconds to 8 cr our ea would be higher. That's what I'm trying to understand. Just doing a back of the envelope calculation. 32:42 32 minutes, 42 seconds See the the impact annual impact of the duty that we had estimated earlier was uh in 32:50 32 minutes, 50 seconds the range of uh uh 12 to 14 crores or 11 to 14 crores uh perm and uh uh this has 33:00 33 minutes been uh now ne negated by the uh by by the increase in the sulfur prices. 33:09 33 minutes, 9 seconds Uh go ahead. 33:12 33 minutes, 12 seconds So wanted to understand that what is the current price of uh insoluble sulfur? 33:17 33 minutes, 17 seconds You had mentioned that it had fallen from $2,000 ton to $850 ton. So has it reduced further or is it stable or has it? 33:25 33 minutes, 25 seconds No, it has no it has not reduced further. It has not reduced further. Okay. So it remains the same. 33:31 33 minutes, 31 seconds Prices have reduced. What we are saying is they they have not increased. Okay. So it's stable at $850. 33:42 33 minutes, 42 seconds So let me correct this assumption. The prices range from $850 to $1,100 $1150. 33:49 33 minutes, 49 seconds What I said was it has come down to that level also. 33:54 33 minutes, 54 seconds Okay. So there has not one price it is not one price at which it cuts, right? There is a variation. 34:01 34 minutes, 1 second Okay. So basically in the past few quarters the insoluble sulfur prices internationally have not gone down. They are rangebound. 34:11 34 minutes, 11 seconds They are rangebound. Yes that is true. 34:13 34 minutes, 13 seconds Okay. But now if you see the rupee has fallen significantly. So anyway $350 anti-dumping duty on top of that rupee 34:21 34 minutes, 21 seconds depreciation which is making imports more expensive. So I mean uh adding both these factors together. Don't you think 34:28 34 minutes, 28 seconds there should be a significant tailwind on our AIA? Yes, there should have been a tailwind. 34:36 34 minutes, 36 seconds It has been eaten away by the raw material function which are again uh impacted by the rupee depreciation as well. 34:43 34 minutes, 43 seconds And and lastly, what's the uh net debt on the company? 34:49 34 minutes, 49 seconds The see the long-term debt as of as of now is uh 22 cr 75 lakhs. Other than that we 34:59 34 minutes, 59 seconds have the CC which uh working capital which of course keeps going up and down. 35:06 35 minutes, 6 seconds Okay. But it would be in the range of like any ballpark range of between 30 and 40 crores. 35:14 35 minutes, 14 seconds Okay. Okay. Thank you. 35:20 35 minutes, 20 seconds Thank you ladies and gentlemen. In order to ensure that the management will be able to address questions from all the participant in the conference, kindly 35:29 35 minutes, 29 seconds limit your questions to two per participant. Should you have a follow-up question, please rejoin the queue. The next question is from the line of P 35:36 35 minutes, 36 seconds Bangal from Vijit Global Services Private Limited. Please go ahead. Uh hello sir. Uh I have two questions. 35:45 35 minutes, 45 seconds The first one is uh what is the production volumes in the Q3 FY26 and how do we expect this for the next quarter? 35:58 35 minutes, 58 seconds See the volumes have been stable. uh we are rather increase the volume and the 36:05 36 minutes, 5 seconds next quarter also we are not uh looking at any significant increase in volumes and the capacity utilization for the 36:14 36 minutes, 14 seconds current quarter if you could mention just give me one 36:32 36 minutes, 32 seconds So the capacity utilization is around 70%. 36:36 36 minutes, 36 seconds 70%. And uh do we expect the same capacity utilization for the FY 27? 36:43 36 minutes, 43 seconds FY27 uh we do expect some increase obviously but it's 36:52 36 minutes, 52 seconds very difficult to say just now how much uh because the things will crystallize more in in the month of May June. 36:59 36 minutes, 59 seconds Fair fair enough. Uh just the second question is that if the current sell for prices and the both the trade deals the US trade deal and the EU trade deal uh 37:08 37 minutes, 8 seconds as an impact as it seems. So what is the steady state of evida margin range management release is sustainable 37:16 37 minutes, 16 seconds through the cycle for the quarter F Q4 and FY27. 37:23 37 minutes, 23 seconds Again a very difficult question you know because all as far as EU trade deal is concerned that should not have any impact on the trade on our margins that 37:31 37 minutes, 31 seconds is margin neutral because we all there is not much uh impact either on on the access to the market or on the tariffs. 37:40 37 minutes, 40 seconds So that is uh neutral for us. As far as the uh trade deal with US is concerned as we have pointed out that we obviously 37:47 37 minutes, 47 seconds we will reduce the discounts significantly from the level that which we had to give them. Uh as far as sulfur 37:54 37 minutes, 54 seconds is concerned uh we don't know where it will uh where it will come down and when it will come down. So for me to say uh 38:03 38 minutes, 3 seconds how much it will impact the the AITA margins as of now will be a pure pure speculation and nothing more. 38:11 38 minutes, 11 seconds Okay. Okay. Fair enough. Uh given the global over supply, sorry, given the global over supply and the 38:19 38 minutes, 19 seconds deep pricing internationally, are we prioritizing on volume retention or margin production in the exports market? 38:25 38 minutes, 25 seconds Obviously, obviously uh our first priority will be uh to capture market shares. 38:33 38 minutes, 33 seconds Fair enough. Thank you very much for the question. 38:39 38 minutes, 39 seconds Thank you. The next question is from the line of Anupam Jane from Indra Security. Please go ahead. 38:55 38 minutes, 55 seconds Uh Mr. Jen, your line is unmuted. Please proceed with a question. 39:05 39 minutes, 5 seconds Can we go to the next one, please? Anubam J. 39:11 39 minutes, 11 seconds Since there is no response from the participant, we'll take this as the last question for for today in the interest of time. I now hand the conference over to the management for closing comments. 39:23 39 minutes, 23 seconds I'd like to thank everyone for being part of this call. We hope we've answered your questions. If you need more information, please feel free to 39:30 39 minutes, 30 seconds contact us or Mr. Dan Broa from HA investation advisor. Thank you. 39:39 39 minutes, 39 seconds Thank you very much on behalf of OCCL Limited. That concludes this conference.