Archean Chemical Industries Limited — Q2 FY26

Archean Chemical Industries Ltd Q2 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=Qh2Iq00mwzc Published: 6 months ago

0:00 [Music] 0:01 1 second Ladies and gentlemen, good day and welcome to the Aran Chemicals Limited Q2F H1 FY26 earnings conference call. As 0:10 10 seconds a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation 0:18 18 seconds concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touchstone phone. I now 0:26 26 seconds hand the conference over to Mr. Ranjit Pendori, managing director of Arkan Chemical Industries Limited. Thank you and over to you sir. 0:37 37 seconds Thank you. Um good morning everyone. A warm welcome to all of you joining on our Q2 and H1 FI26 earnings call. 0:47 47 seconds Appreciate you all taking the time today to be here with us. 0:51 51 seconds On this call we are joined by Mr. NR Kanan our executive director, Mr. 0:57 57 seconds Natraan Ramorti our CFO Mr. Rajiv Kumar DGM Finance and the SGA team our investor relations advisor. 1:08 1 minute, 8 seconds I hope you've all had a chance to go through the financial results and investor presentation that is available on our website as well as notified to the stock exchanges. 1:20 1 minute, 20 seconds I will start with a brief overview on the recent developments and market trends. Post that Mr. Natrajan our CFO 1:27 1 minute, 27 seconds will give you a financial overview for the quarter and the first half. 1:32 1 minute, 32 seconds To start with I would like to inform you all that we have obtained the India semiconductor mission approval for our 1:39 1 minute, 39 seconds 6M project a compound semiconductor project which we believe is a major milestone for the company's growth. So I 1:46 1 minute, 46 seconds only thought it was important for us to mention this at the very beginning. 1:51 1 minute, 51 seconds Also, I'd like to inform you that the income tax department conducted a search and seizure operation from September 4th, 2025 to September 9th, 2:00 2 minutes 2025 at various locations of the company and its subsidiaries under the section 132 of the Income Tax Act 1961. The 2:08 2 minutes, 8 seconds company extended full cooperation to the authorities and continues to do so. 2:14 2 minutes, 14 seconds Moving on to the market overview. On part of the market overview, the chemical industry continues to see a mixed trend. As we look back on the 2:23 2 minutes, 23 seconds quarter, it's important to recognize the complex global environment we are operating in. 2:29 2 minutes, 29 seconds Persistent macroeconomic headwinds, supply chain disruptions, and geopolitical developments continue to 2:35 2 minutes, 35 seconds influence strategy, demand trends, pricing, and overall operations across industries. 2:43 2 minutes, 43 seconds We view these challenges as temporary and the long-term growth story for India remains strong and for the chemical business is no exception. 2:54 2 minutes, 54 seconds As we navigate through this continuously changing environment, our focus at Arkin 3:01 3 minutes, 1 second Chemicals remains clear. Building a strong foundation for sustainable long-term growth and meaningful 3:08 3 minutes, 8 seconds diversification in line with our strategy. 3:13 3 minutes, 13 seconds Now coming to the performance H1 FI26 performance. While we began FI26 on a 3:20 3 minutes, 20 seconds steady note, the first half of the financial year grew by 10% to rupees 5,232 million despite all challenges. 3:29 3 minutes, 29 seconds As you are aware, seasonal and uneven monsoon patterns also impacted business in terms of production, sales, logistics, etc. 3:37 3 minutes, 37 seconds As a group, we are confident that the fundamentals of our business remains robust and team on the ground continue 3:45 3 minutes, 45 seconds to focus on operational efficiencies, improving customer engagement and execution across all key initiatives 3:52 3 minutes, 52 seconds which we have taken over the last few years and especially so over the last couple of quarters. 3:58 3 minutes, 58 seconds Coming to our segmental performance, we will start with the first one. 4:04 4 minutes, 4 seconds Elemental bromine. Elemental bromine contributed approximately 30 to 31% of our total revenue in H1 F526. 4:14 4 minutes, 14 seconds Overall bromine demand was robust and price was healthy. 4:19 4 minutes, 19 seconds However, due to lower efficiencies in our plant, due to some technical reasons, the production volumes were below target. However, we have already 4:29 4 minutes, 29 seconds started taking the corrective measures and are implementing the action plan to improve the same. 4:35 4 minutes, 35 seconds Performance is expected to improve in the coming quarters supported by gradual pickup in the subsidiary operations as well. In the near term, we do not see 4:44 4 minutes, 44 seconds any major challenges on either the demand or supply side. 4:49 4 minutes, 49 seconds On the pricing front, we are seeing encouraging trends. As we move forward, our performance will improve along with production. 4:58 4 minutes, 58 seconds Just to reiterate from the long-term perspective, any sharp movements in spot prices do not immediately impact us as 5:06 5 minutes, 6 seconds most of our contracts are long-term and bilateral in nature. A strong customer relationships continue to support our 5:13 5 minutes, 13 seconds business. Their consistent orders and confidence in our capabilities have helped us maintain our position as India's largest manufacturer and exporter in this space. 5:24 5 minutes, 24 seconds Secondly, on the industrial salt, for the quarter gone by, we sold nearly 1.9 million metric tons, which contributed to more than 65% of our total revenue. 5:36 5 minutes, 36 seconds While the reported volume is shy below the quarterly guidance of 1 million, we would like to highlight that the 5:43 5 minutes, 43 seconds shortfall is temporary and was mainly due to the prolonged monsoon season which impacted the overall production and transportation. 5:52 5 minutes, 52 seconds We have a strong demand visibility and long-term contracts in place with customers. We're confident to export 5:59 5 minutes, 59 seconds close to the guidance we've given of 4.5 million tons in FI26. 6:04 6 minutes, 4 seconds As I mentioned earlier, globally only a handful of manufacturers can meet the highest level of purity at scale and we are among them continuing to be India's 6:13 6 minutes, 13 seconds largest exporter of industrial salt primarily to the eastern part of the world. 6:21 6 minutes, 21 seconds on sulfate of potach. 6:24 6 minutes, 24 seconds Like I mentioned in the previous call, the pilot trials have been done and they have been successful. Presently, we are working closely with the technology 6:31 6 minutes, 31 seconds partner to progress from pilot scale to plant scale trials. Plant modifications have started and are under progress and 6:38 6 minutes, 38 seconds we are now preparing for plant trials in Q4. 6:42 6 minutes, 42 seconds We're confident of replicating the pilot plan performance where the trials have proved to be very encouraging in terms of results and recovery. 6:51 6 minutes, 51 seconds Site work has started and equipment is already ordered. 6:55 6 minutes, 55 seconds We are one of the few global manufacturers of SOP and the market remains very firm in terms of demand for the specialty fertilizer. As stated 7:04 7 minutes, 4 seconds earlier, we continue to believe that SOP will be one of the important business drivers for the company in the coming quarters and years. 7:13 7 minutes, 13 seconds Number four on bromine derivatives. Our bromine derivatives business operations are up and running currently operating between 30 and 35% capacity utilization. 7:24 7 minutes, 24 seconds Ideally, we would like to have been at a higher rate. However, the clear brine fluid sales uptick expected after 7:31 7 minutes, 31 seconds qualifications and approvals from end users are received. 7:35 7 minutes, 35 seconds Going forward, we expect the utilization to improve gradually to at least 50% by the end of this financial year. We are 7:43 7 minutes, 43 seconds confident of receiving the necessary approvals from clients which is an ongoing process primarily in the Middle East where the oil fields are based and 7:51 7 minutes, 51 seconds have started engaging with them for the necessary certifications as well. 7:57 7 minutes, 57 seconds Regarding the flame retardant project, as I mentioned in the earlier call, we continue to pursue this initiative actively and we will provide an update soon in the coming months. 8:08 8 minutes, 8 seconds Of the total direct capex of 250 crores originally envisaged for the bromine derivatives towards plant and machinery. 8:15 8 minutes, 15 seconds To date we have already invested close to 190 crores on orange and hydrocarbon renamed as idealist mud post takeover by us. 8:29 8 minutes, 29 seconds As you're aware we took position of the assets in the last quarter of the previous year. Since then we have made progress in reviving and refurbishing 8:36 8 minutes, 36 seconds the units. We are through with the trials in three three units and are awaiting necessary approvals to start the production soon. Samples have been 8:44 8 minutes, 44 seconds sent out to customers and we're awaiting for the go ahead. 8:49 8 minutes, 49 seconds For the past few months, our team has been working through several onground challenges. As you know, it is we bought the company through NCT to restore 8:57 8 minutes, 57 seconds operations and improve output. This has caused some delays in our revenue contribution and it has further affected by the lower 9:06 9 minutes, 6 seconds global crude prices leading to slow rig activity and delayed in the onboarding of new suppliers like us by the oil majors. 9:15 9 minutes, 15 seconds Now coming to our new strategic initiatives number one semiconductor. 9:22 9 minutes, 22 seconds During the quarter a semiconductor business achieved a major milestone. A project was among the select few approved by the union cabinet under the Indian semiconductor mission. 9:33 9 minutes, 33 seconds The project underwent a thorough evaluation covering technical capabilities, specifications and long-term planning. This marks a 9:41 9 minutes, 41 seconds landmark year for our company and I would like to thank our entire team and all our stakeholders for their trust and continued support. 9:49 9 minutes, 49 seconds We are pleased to inform you that the groundbreaking ceremony was conducted on the 1st of November 2025 marking the commencement of the plant's commissioning activity. 9:59 9 minutes, 59 seconds We have outlined rupees 2,67 crores investment in the first phase which will include both the central and 10:07 10 minutes, 7 seconds state fiscal support along with our own contribution. 10:12 10 minutes, 12 seconds With the recent developments in the sector and the government's emphasis on building an entire semiconductor ecosystem, we're confident that this 10:20 10 minutes, 20 seconds initiative is timed perfectly to harness the sector's growth momentum both domestically and globally. 10:28 10 minutes, 28 seconds The second one on the energy storage battery business. On the energy storage business, as you're all aware, we have invested in off-grid energy labs, a zinc 10:37 10 minutes, 37 seconds bromide battery innovator with a robust IP portfolio of over 50 patents and more across cathodes, anodes, and separators. 10:46 10 minutes, 46 seconds In May 2025, we successfully acquired an 18.14% stake with the remaining commitment expected to be fulfilled over the coming quarters. 10:55 10 minutes, 55 seconds The company plans to set up a 10 megawatt hour demo manufacturing facility in the UK. The work has already started and further its research and 11:03 11 minutes, 3 seconds development in the pipeline for next generation stationary energy storage solutions and commercialize its patented zinc gel batteries through 11:11 11 minutes, 11 seconds certification, testing and finalizing the blueprint for a gigafactory. 11:16 11 minutes, 16 seconds Upon successful pilot execution, we shall plan to scale up to a gigafactory which is expected to take 18 to 24 months to materialize. 11:27 11 minutes, 27 seconds To sum up, our business fundamentals remain strong and robust. We maintained healthy margins, deepened our relationship with clients, and laid a 11:35 11 minutes, 35 seconds strong foundation to invest in high potential sectors like bromine derivatives, semiconductor, and energy storage. 11:43 11 minutes, 43 seconds We continue to focus on our core business and improve efficiency and production and the overall numbers there as well given 11:52 11 minutes, 52 seconds the support we are getting from the market and healthy demand from the market. 11:58 11 minutes, 58 seconds Importantly, we continue to be a net debt-free company backed by robust balance sheet and disciplined capital allocation. 12:05 12 minutes, 5 seconds This financial strength ensures healthy cash flows and provides the strategic flexibility to invest confidently in 12:13 12 minutes, 13 seconds long-term growth opportunities and we look forward to the shareholders support in this. 12:19 12 minutes, 19 seconds With that, I would now request our CFO Mr. Narajin Ramorti to share the financial performance for Q2 and H1 FI26. 12:30 12 minutes, 30 seconds Thank you and a very good morning to all the participants on the call. We are pleased to report a notable performance 12:38 12 minutes, 38 seconds for quarter gone by to give you a summary of Q2 and H1 FY26 on standalone 12:44 12 minutes, 44 seconds basis. Q2 FI26 performance. Total revenue for Q2 FI26 stood at 2317.8 12:54 12 minutes, 54 seconds million and 8% lower on a year-on-year basis. Our business books are as follows. In Q2, bromine contributed 13:02 13 minutes, 2 seconds around 33% of the total revenue whereas indust contributed around 67%. Sales volume of business are as follows. 13:11 13 minutes, 11 seconds Volume sales of broine for the Q2 FI26 to above 3,000 metric ton level. Volume 13:18 13 minutes, 18 seconds sales of industry sold for the Q2 FI26 stood at around 0.9. 13:25 13 minutes, 25 seconds AIDA for the company stood at 759.9 million in Q2 FI26, a 15% decline on 13:33 13 minutes, 33 seconds yearon-year basis. Aida margin stood nearly 33% for the quarter. Net profit 13:39 13 minutes, 39 seconds for Q2 FI26 stood at around 384.6 million. 13:46 13 minutes, 46 seconds H1 FYI26 performance. Total revenue for H1 FI26 stood at 5,232.3 13:54 13 minutes, 54 seconds million. A 10% growth on a year-on-year basis. Aida for the company stood at 1,717.9 14:02 14 minutes, 2 seconds million in H1 FI26. Yeah. 2% lower on a year-on-year basis. Net profit after 14:09 14 minutes, 9 seconds exceptional item for H1 FI26 stood at around 93.1 million a 20 8% growth on year-on-year 14:18 14 minutes, 18 seconds basis on a consolidated basis. Q2 and H1 14:24 14 minutes, 24 seconds FI26 performance total revenue for Q2 FI26 stood at rupees 2395.6 14:33 14 minutes, 33 seconds million. Aida for the company stood at rupees 689.8 million in Q2 FI26. Net profit for Q2 14:43 14 minutes, 43 seconds FI26 stood at around rupees 290.4 million. H1 FI26 performance. Total 14:51 14 minutes, 51 seconds revenue for HY H1 FI26 stood at 5401.5 million. Aida for the company stood at 15:00 15 minutes 1553 million in H1 FI26. Net profit for H1 FI26 stood at around 691.8 15:09 15 minutes, 9 seconds million. With this we conclude the speech and open the floor for Q&A. Thank you. 15:20 15 minutes, 20 seconds Thank you very much. 15:23 15 minutes, 23 seconds We will now begin with the question and answer session. Anyone who wishes to ask a question may press star N1 on their 15:29 15 minutes, 29 seconds touchstone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants 15:37 15 minutes, 37 seconds are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question Q assembles. Also a reminder to 15:46 15 minutes, 46 seconds all participants that uh you're allowed to ask two questions only. 15:51 15 minutes, 51 seconds The first question is from the line of Sukrit Patel from Eyesight. Please go ahead. Uh I have two forwardlooking questions. 16:00 16 minutes Uh first of all uh good morning to the team. Uh my first question is uh looking beyond this quarter numbers. I like to 16:08 16 minutes, 8 seconds understand the bigger picture. Um Arjen operates in a space where global demand for specialty marine chemicals uh like 16:16 16 minutes, 16 seconds broine and industrial salts uh keep on changing very quickly over the next uh one to two years. what is the one big 16:25 16 minutes, 25 seconds thing uh or the or the one big change you're driving that will make Archin stronger and more trusted in the global 16:32 16 minutes, 32 seconds markets? Uh just curious to know whether this is more about expanding the the uh 16:40 16 minutes, 40 seconds technology platforms uh or building deeper customer uh relationships or uh 16:46 16 minutes, 46 seconds shaping the uh company such a way that uh makes it hard for your competitors to copy your business. This is my first 16:53 16 minutes, 53 seconds question. I'll ask my second question after this. So yeah, so thank you for that question. 17:02 17 minutes, 2 seconds Um I think over the next couple of years we continue like I said to focus on the core business most importantly which is 17:10 17 minutes, 10 seconds our uh industrial salt, broine and sulfate of potach business. We anticipate enough and more growth 17:18 17 minutes, 18 seconds available in those three areas. The salt of course you know because we have been uh a market leader we have a lot of 17:26 17 minutes, 26 seconds customer engagement and uh we will continue to do that and we are also having new customers that we're approaching and we'll continue to build 17:34 17 minutes, 34 seconds the volumes quality always will be a primary concern and as we scale that volume uh we should ensure that the 17:41 17 minutes, 41 seconds quality parameters continue to be the best in the world. on bromine we already have the capacity installed so we want 17:49 17 minutes, 49 seconds to increase the utilization rate uh the quality already is among the best uh which is why there's a continuous demand for our product both domestically and 17:58 17 minutes, 58 seconds globally so I think there our focus will be more on the elemental side to increase the volumes that we are 18:05 18 minutes, 5 seconds producing uh which is one of the reasons why as I mentioned in the last call we're also doing certain capacity enhancements at the site in terms of 18:14 18 minutes, 14 seconds field uh uh evaporation area etc to increase utilization rates. So the demand is not a problem there. The third 18:22 18 minutes, 22 seconds one is the potach uh business uh obviously we have made uh good progress and over the next couple of quarters we 18:29 18 minutes, 29 seconds should see those results coming in as well on the trial plant side and then I think uh starting uh post monsoon next 18:36 18 minutes, 36 seconds year we should be in a full-fledged state to start production and utilizing the installed capacity. So large part of 18:43 18 minutes, 43 seconds this doesn't require uh any real capex apart from regular uh operation maintenance. So on these three products 18:51 18 minutes, 51 seconds at the core we will continue to drive volume quality delivery and expansion and utilization of existing capacities. 18:58 18 minutes, 58 seconds Now having said that going down of course you know the bromine derivatives unit will play a big role in enhancing 19:05 19 minutes, 5 seconds our utilization of in-house bromine and there there's a deeper engagement both with customers on the application side 19:12 19 minutes, 12 seconds as well as uh conversion of uh the bromine into various other inorganic and organic bromides and additionally you 19:19 19 minutes, 19 seconds know the flame retardant uh project also you know will uh should come online in the next uh uh 12 to 18 months And that's what we're driving at. 19:32 19 minutes, 32 seconds Thank you. My uh second second question also a forwardl looking one uh specifically on margins and cost planning. Uh you know whenever cost 19:40 19 minutes, 40 seconds rises uh we see a collateral pressure on the margins whether it is through raw materials, energy, logistics or any uh 19:48 19 minutes, 48 seconds compliance that you have to follow. I just want to understand how uh you think about protecting the profits uh without 19:56 19 minutes, 56 seconds slowing down growth means like do you rely more on smarter sourcing or uh pricing control or is there any other 20:03 20 minutes, 3 seconds USP that the company is uh following and how do you balance these parameters uh in practice so that Archon stays uh 20:12 20 minutes, 12 seconds strong and the profits keep on uh clocking even when sometimes things get out of control or uh sometimes uh you 20:20 20 minutes, 20 seconds know when things don't go planned as they are supposed to. Thanks. 20:27 20 minutes, 27 seconds Thanks. So I think uh as you rightly said uh today in the business environment volatility and uncertainty 20:33 20 minutes, 33 seconds are a given uh we have to be able to navigate uh on a daily basis uh since 20:40 20 minutes, 40 seconds changes happen on a daily basis. But I think the macro environment is something we can't control. uh unfortunately we 20:48 20 minutes, 48 seconds end up reacting to it. However, at our end as a company, what we can do is be very very conscious of cost. Uh if you 20:58 20 minutes, 58 seconds see over the last few years, um you know, we've been able to manage that uh very effectively. It's a combination of 21:05 21 minutes, 5 seconds both good practices as well as continuously trying to see where we can reduce cost. Logistics is a big cost for 21:13 21 minutes, 13 seconds us uh simply because uh we are a remote location so we need to necessarily move uh the salt for example by trucks 21:23 21 minutes, 23 seconds uh but uh I think the government is hinted uh that they're going to build a railway somewhere in that area which may 21:30 21 minutes, 30 seconds happen uh sooner than later and if that does then we would look at using a combination of that sort of transportation 21:38 21 minutes, 38 seconds uh method to reduce cost Um and then you know in terms of uh bromine I think it's about efficiency. Uh if you're operating 21:47 21 minutes, 47 seconds at X efficiency the idea is to be able to extract more from the given uh raw material. So I think that helps bring down cost as well. So there are certain 21:56 21 minutes, 56 seconds factors that are in our hands that we will continue to tackle as we have been but certain things are market driven. 22:03 22 minutes, 3 seconds For example, the price of fuel, uh, fortunately, I think it's been pretty consistent over the last couple of years, but that may change. Uh, we don't 22:12 22 minutes, 12 seconds know, but I think when that happens, we'll have to find other places to, you know, become more efficient. 22:20 22 minutes, 20 seconds Uh, I think that's good guidance from your part. Uh, and I wish the entirety best of luck for Q3. Thank you. 22:28 22 minutes, 28 seconds Thank you. 22:30 22 minutes, 30 seconds The next question is from the line of Vin from Hathway Investments. Please go ahead. 22:37 22 minutes, 37 seconds I have just one question. uh if I have to look at the volumes of uh if somebody can just give us the sales volumes in 22:44 22 minutes, 44 seconds quarter uh the in industrial sol broine and SOP 22:51 22 minutes, 51 seconds s u okay in 22:58 22 minutes, 58 seconds in quarter two the sales of industrial salt is 88 8893 23:06 23 minutes, 6 seconds metric ton broine Broine is 3,160 metric t SOP 26 metric t 23:14 23 minutes, 14 seconds and uh corresponding last year correspond Q2 last year yes 23:22 23 minutes, 22 seconds yeah 792 365 metric tan industrial salt broine 4683 SOP 26 23:30 23 minutes, 30 seconds okay now this SOP for the last such a long period that we have been looking at is still not getting one uh though we 23:39 23 minutes, 39 seconds are it's an extremely promising category uh how long do you see this extending now 23:46 23 minutes, 46 seconds when will you start seeing the commercial production and the sales coming in yeah so as I mentioned I think the uh 23:54 23 minutes, 54 seconds the uh trials have been finished and the pilot plant is being uh erected as we speak so that we the that will uh uh 24:03 24 minutes, 3 seconds come into uh the trial production will start in Q4 uh like I said the work has already started on the ground and equipment has 24:11 24 minutes, 11 seconds been ordered and uh we we are confident that uh it should be uh successful as it 24:19 24 minutes, 19 seconds has been in the uh uh lab scale and we believe that uh we will start production 24:26 24 minutes, 26 seconds of this post monsoon next year because generally during monsoon you don't uh 24:33 24 minutes, 33 seconds ideally run a SOP plant uh because it makes the material is very hyroscopic. 24:39 24 minutes, 39 seconds So we generally don't we avoid the monsoon but that has been the plan and I think we are sticking to that uh timeline. 24:47 24 minutes, 47 seconds So we'll see Q3 FY27 the sales of SOP getting into our books. Yes. 24:55 24 minutes, 55 seconds And uh this is a margin accative business right? The highest margin among the three products. 25:03 25 minutes, 3 seconds Uh well assuming that the current prices hold it's likely to be uh because the capacity is already installed and uh we 25:12 25 minutes, 12 seconds have about 130,000 tons uh that we can put to production and sales because the 25:19 25 minutes, 19 seconds market is there and the prices are pretty firm in uh because being a specialty uh product. Okay. This is 130,000 peranom. 25:29 25 minutes, 29 seconds Yeah. Peranom. Yeah. 25:30 25 minutes, 30 seconds Okay. So what kind of roughly margins are you looking at? Can you share that or is it confidential? 25:38 25 minutes, 38 seconds Well, I think one it's confidential but more importantly I think uh we'll probably provide a better update once the pilot plant's up and running uh in 25:47 25 minutes, 47 seconds Q4 because then I think we will also be giving you a fair idea about uh where we should end up on uh margin front. 25:57 25 minutes, 57 seconds Great. Thanks a lot. Thank you very much. Thank you. 26:02 26 minutes, 2 seconds Thank you. The next question is from the line of Arch Jooshi from Noama Wealth. Please go ahead. 26:10 26 minutes, 10 seconds Uh hi uh good afternoon uh everybody and thanks for the opportunity. Uh so a couple of questions. Uh first one on uh 26:17 26 minutes, 17 seconds orin hydrocarbon uh I mean uh now that uh uh we've we've already uh you know quite done quite a lot of work here. 26:26 26 minutes, 26 seconds What are our expectations in the second half? uh are we deriving any revenues from there? uh have we seen any ramp up if you can throw some number uh if 26:35 26 minutes, 35 seconds possible or what to build in second half and expectations for FI27. So thank you Arches for that question. 26:43 26 minutes, 43 seconds Uh on orin it has been disappointingly slow. Ideally we should have already uh been able to start uh sales by now but I 26:53 26 minutes, 53 seconds think um the fact that we have bought the company from NCT I think uh we underestimated the challenges on the 27:01 27 minutes, 1 second ground in terms of dealing with regulator authorities etc. So there has been a delay even though the two three 27:08 27 minutes, 8 seconds of the facilities are up and ready. Uh we're still dealing with uh some of the challenges uh coming over from the 27:14 27 minutes, 14 seconds acquisition. Uh but uh having said that I think uh we've been able to start sending samples to customers and I think 27:23 27 minutes, 23 seconds the products are coming out well. Uh so there is momentum there. Um 27:29 27 minutes, 29 seconds for the rest of the year I would not uh really consider any meaningful 27:35 27 minutes, 35 seconds contribution from uh idealist uh uh exorin uh simply because I think uh we 27:43 27 minutes, 43 seconds would like to start showing some results on the ground in terms of sales before we start giving an idea on that. But 27:50 27 minutes, 50 seconds yes, I think uh there has been a delay and I think we are 6 months behind than where we want to ideally be. But 27:58 27 minutes, 58 seconds nevertheless, I think the encouraging part is uh reception of the products being made and the ability to make them. 28:05 28 minutes, 5 seconds Uh I think that's uh uh something that we are uh uh happy about. 28:12 28 minutes, 12 seconds Sure. So FI27 and onwards uh the ramp up should be strong. Should that be a good assumption in orange? 28:21 28 minutes, 21 seconds Yes, I think FI27 uh we expect uh some of those products to definitely start selling and apart from I think the 28:30 28 minutes, 30 seconds earlier question that was asked what happens with the core business and SOP etc. I think FI27 will see a lot of uh 28:38 28 minutes, 38 seconds additional uh revenues and products coming in from uh Orurin uh from uh the core business as well as the derivatives. 28:49 28 minutes, 49 seconds Understood. Uh so secondly on u uh the 2067 crore capex that you are planning 28:56 28 minutes, 56 seconds to deploy uh within the uh semicon piece uh how should we you know number it uh 29:03 29 minutes, 3 seconds in the model um how how how do we see this being deployed is it like a two threeear thing can you give some broad 29:11 29 minutes, 11 seconds uh timelines as to when what amount of money will be spent in FY 26 27 28 in that manner 29:20 29 minutes, 20 seconds Fair question. Uh I think uh it's a bit early to uh commit to that uh spreadsheet you want to build. Uh but I 29:27 29 minutes, 27 seconds can tell you this that uh we kickstarted work on it. Uh we have finalized the consultants uh who have come on board 29:34 29 minutes, 34 seconds last week uh for the uh construction uh project management for the go-to market 29:41 29 minutes, 41 seconds for the technical uh evaluation for the bidding etc. and for other uh support on documentation uh and uh other things. So 29:51 29 minutes, 51 seconds the work has started and uh very soon uh we hope we'll be able to uh give uh uh I 30:00 30 minutes guess a notification to stakeholders on the commencement of uh construction. 30:08 30 minutes, 8 seconds Sure. Uh just one follow up on the uh on the same one uh and the subsidy that you are expected to receive from the state and the federal government. 30:16 30 minutes, 16 seconds I request you to rejoin the queue for the followup as there are more participants left in the queue. Sure. Sure. Thank you. 30:24 30 minutes, 24 seconds Thank you. The next question is from the line of Kanan from SMFS. Please go ahead. Yeah. Thank you sir for the opportunity. 30:33 30 minutes, 33 seconds So just a couple of questions. Uh sir when we look at the bromine volume so we are sitting at some uh 10 to 12 quarter 30:41 30 minutes, 41 seconds low uh has structurally changed in bromine. I think sir in last year also like there was was one off in the salt business. This year we are witnessing 30:50 30 minutes, 50 seconds salt volumes are picking up but uh bromine is going down. Although your initial commentary suggests that so there are no challenges on supply and 30:58 30 minutes, 58 seconds demand side. So why is the volumes low and our target are we on track to meet by this fiscal fi 26 of 25% which we have stated earlier? 31:08 31 minutes, 8 seconds Thank you for that question. So I think uh two things one is as you pointed out on the supply and on the demand side 31:17 31 minutes, 17 seconds right in fact broine I think is uh holding steady in uh and there has been no fall in demand and as I also 31:26 31 minutes, 26 seconds mentioned in my commentary uh the price trend is encouraging it's moving up over the last uh quarter or so and I think we 31:34 31 minutes, 34 seconds are witnessing that coming through to us as well primarily on our side it's been a production challenge. Uh there has 31:41 31 minutes, 41 seconds been a bit of a prolonged monsoon not to mention erratic uh even as recently as 31:48 31 minutes, 48 seconds October end. Uh it has been raining uh including you know places like Bombay, the coast and up in Gujarat. So that's uh obviously not helping our production. 32:00 32 minutes But having said that uh there are certain steps that I mentioned in my commentary as well we are doing and you'll see these uh coming through you 32:09 32 minutes, 9 seconds know in the next uh quarter onwards. Um we are fixing certain problems at the equipment level but the demand uh stays 32:18 32 minutes, 18 seconds robust. Uh in fact I think we have almost uh 10,000 tons plus backlog in 32:24 32 minutes, 24 seconds orders. Um so yes so I think uh it's two sides of the same coin. 32:34 32 minutes, 34 seconds Got it. Uh sir onto the broine derivatives can we share the volume figure and the revenue share in this quarter and uh what is the outlook for FI26 and 27? 32:44 32 minutes, 44 seconds Sir I'll have Mr. Natan give you the volumes for the derivatives. Yeah. Just give us a second. 32:52 32 minutes, 52 seconds Yeah. One second. Just 33:00 33 minutes Yeah. what we uh in H1 you know um we have done 3,135 33:08 33 minutes, 8 seconds metric and uh value of 42 43 cr 33:18 33 minutes, 18 seconds 43 cr okay okay okay uh so my next question is onto our SOP as you have highlighted earlier uh that SOP so trial 33:27 33 minutes, 27 seconds runs have concluded so how bigger business this can be whether it can be a 500 cr or 1,000 cr topline business earlier because when we look at the 33:36 33 minutes, 36 seconds capacity size uh the the figure can be this big but what is the plans like uh at the initial by fi 2728 how big this 33:45 33 minutes, 45 seconds can be so this is karnan uh I'm answering it on behalf of uh our MD Mr. Ranjit u 33:55 33 minutes, 55 seconds basically uh this has got a potential to reach the kind of numbers which you mentioned uh but the clarity will emerge 34:03 34 minutes, 3 seconds once our trials are completed the process it goes through certain changes our old process and the plan there are some changes which are required in that 34:11 34 minutes, 11 seconds and once those changes are completed we will be able to uh kind of definitely say what's going to be the you know uh 34:20 34 minutes, 20 seconds rating of the existing plant But as a potential for this product definitely it's got that capability to reach the kind of numbers which you mentioned. 34:30 34 minutes, 30 seconds Got it. Sir in your in initial commentary you mentioned about the 50% utilization. This is for oral hydrocarbon right? 34:38 34 minutes, 38 seconds This is for acum. 34:42 34 minutes, 42 seconds Okay. Okay. Got it. Thank you sir. Thank you. Thank you. 34:48 34 minutes, 48 seconds I request each participants to ask two questions. The next question is from the line of Sana from Chola Securities. 34:56 34 minutes, 56 seconds Please go ahead. 34:58 34 minutes, 58 seconds Uh yes. Hello. Thank you so much uh uh for answering the question. Uh my first question is uh relating to um the 35:08 35 minutes, 8 seconds bromine that uh the bromine production that was there. Uh could you speak on why the efficiency was lower? what was 35:15 35 minutes, 15 seconds the internal difficulty that was there beyond um a prolonged and erratic monsoon and the initial target that was 35:23 35 minutes, 23 seconds given of 22 to 25,000 would this be lower for the next year do you see um buildup of the order book of about 35:32 35 minutes, 32 seconds 10,000 tons that you were speaking about would we be closer to 20,000 metric tons or would it be lower 35:41 35 minutes, 41 seconds uh so I think uh this is kan again responding on behalf of Mr. Ranjit our managing director. 35:49 35 minutes, 49 seconds Uh I think during the uh call when Mr. 35:53 35 minutes, 53 seconds Ranjit was speaking it was already mentioned uh that there were some technical uh you know challenges primarily contributed by the heavy 36:02 36 minutes, 2 seconds rainfall unseasonal rainfall which led to you know dilution of the brine broine concentration in the brine and 36:10 36 minutes, 10 seconds consequently uh lower efficiency of the assets. So those aspects are being addressed and they are being worked 36:17 36 minutes, 17 seconds around. Uh to your point with respect to uh what the volumes will look like from 36:25 36 minutes, 25 seconds uh going forward uh certainly this year we will need to overcome these challenges. So to that extent uh we are 36:34 36 minutes, 34 seconds looking at uh definitely more than H1 performance in H2 for this financial year FI26 and definitely looking forward 36:42 36 minutes, 42 seconds to uh the order kind of order of volumes which we had indicated in our previous guidance uh for FI27. So this will be a 36:51 36 minutes, 51 seconds progressively ramping up uh activity and that's how we see the whole thing. 36:56 36 minutes, 56 seconds Okay. Thank you. And my second question is relating to offgrid energy labs. Um what is the um updates over there um or 37:06 37 minutes, 6 seconds the would would this be something that's coming uh into play into FY2728? 37:12 37 minutes, 12 seconds Um the investment I know would be done in FY26 if you could provide a bit of color over there. 37:19 37 minutes, 19 seconds Rajiv Rajiv can you take this call? Yeah sure sir. Yeah. 37:24 37 minutes, 24 seconds So um thank you for the question. See off-grid energy uh investment is is a 37:31 37 minutes, 31 seconds long-term investment. Uh the idea there is twofold. One of course uh once the pilot plan is uh set up uh the 10 37:40 37 minutes, 40 seconds megawatt hour pilot plant which is being set up by the off-grid team in United Kingdom. That should take uh at least 12 37:47 37 minutes, 47 seconds to 18 months. Once uh the pilot plant is up, the idea is to create a blueprint 37:53 37 minutes, 53 seconds for a gigafactory and then um see uh the possibility of setting up the gigafactory uh in India. And the second 38:03 38 minutes, 3 seconds rational is uh the electrolyte for off-grid energy is zinc bromide and accums 38:12 38 minutes, 12 seconds of arkan chemical is making or going to expand is zinc bromide. So these are the two rational uh for that investment. 38:22 38 minutes, 22 seconds So this so we would see pilot being done after 12 to 18 months. Uh would the investments or the expense that would be 38:30 38 minutes, 30 seconds there for this be margin diluted for the parent company? Um no so the investments are already made 38:37 38 minutes, 37 seconds just just so that um it is clear the investment is already done. Arkin chemical has made the investment. uh 38:45 38 minutes, 45 seconds that investment has uh given them around 21 to 22% stake in off-grid energy and 38:52 38 minutes, 52 seconds the investment proceeds will be utilized by off-grid to set up these gigafactory and the investment proceeds will also 39:01 39 minutes, 1 second cover the capeex and OPEX for next two years for the uh sorry for the pilot plants. Okay, great. Thank you so much. 39:09 39 minutes, 9 seconds Yeah. Yeah. 39:11 39 minutes, 11 seconds Thank you. The next question is from the line of Rohit Nagarat from 361 Capital. Please go ahead. 39:20 39 minutes, 20 seconds Thanks for the opportunity. Uh so first question is on the police investment of almost 2,000 crores. Uh what would be 39:28 39 minutes, 28 seconds our contribution given that there will be state and support in terms of subsidies and uh what could be the timelines in terms of funding uh our equity uh for the project. Thank you. 39:42 39 minutes, 42 seconds I think uh Rajiv is available uh to take that question. Rajiv. Yes sir. Uh thanks Ro for the question. 39:50 39 minutes, 50 seconds Um see 266 cr is the overall capital expenditure for phase 1. We are 39:57 39 minutes, 57 seconds currently in the process of signing the fiscal support agreement. As you know this is uh the first uh compound 40:05 40 minutes, 5 seconds semiconductor fab approved by India semiconductor mission under ministry of uh electronics and information 40:12 40 minutes, 12 seconds technology. The fiscal support agreement signing is currently under progress and uh and it's in very advanced stage. Once 40:20 40 minutes, 20 seconds we sign that agreement, we'll have a fair idea about what will be the overall um funding mix of the project in terms 40:28 40 minutes, 28 seconds of equity or uh subordinated debt support from RN and uh also the support 40:35 40 minutes, 35 seconds from government of India and Odisa State. Um but it it will certainly be around 60 to 65% of the overall uh 40:43 40 minutes, 43 seconds capital uh the 266 cr and uh the funding pattern will be paripasu in the sense 40:51 40 minutes, 51 seconds that uh whenever u the project uh fundings are um in vis uh this will be 40:58 40 minutes, 58 seconds uh funded by all the three parties in proportion. 41:02 41 minutes, 2 seconds Sure. Uh that's helpful. So we'll wait for more clarity on this. uh second question in terms of uh the first half 41:10 41 minutes, 10 seconds performance and then what we are expecting from FI26 perspective I think uh most of people have asked this 41:17 41 minutes, 17 seconds question but just to give get a little more granular granularity uh industrial salt we continue to maintain about 4 and 41:24 41 minutes, 24 seconds a half million tons broine first half we have done about 7,300 metric tons second 41:31 41 minutes, 31 seconds half are we likely to uh you know make at least last year's volumes of 18,000 tons and then similarly for bromine 41:40 41 minutes, 40 seconds derivatives and orin hydrocarbons what could be the absolute uh number of revenue that we are looking for fi 26 41:48 41 minutes, 48 seconds given that there have been delays and probably even the scale up will happen in second half and more so in fi 27. So 41:56 41 minutes, 56 seconds just a little more clarity in terms of how the numbers will shape up for FI26 and FI27 from volume perspective and 42:04 42 minutes, 4 seconds from the absolute revenue perspective from derivatives and hydrocarbons. Yeah. 42:12 42 minutes, 12 seconds Okay. So I think on uh on the remaining part of FI26 um we are at the moment uh seeing you 42:20 42 minutes, 20 seconds know how to balance the pricing uh in the market visa v our own intention of keeping the margins uh intact. So I 42:29 42 minutes, 29 seconds think that uh is being discussed internally and uh we want to ensure that the volumes are not hampered on the 42:36 42 minutes, 36 seconds salt. On broine, our endeavor is to at least uh meet last year's uh production uh volumes. However, as I said, the 42:45 42 minutes, 45 seconds erratic monsoon has played a bit of a spoil sport. Generally, as you know, in Gujarat, rains end in September, but uh 42:51 42 minutes, 51 seconds even in October, it has rained. Um it hampers production only because of the dilution of the concentration in the 42:59 42 minutes, 59 seconds brine. Uh as such, uh that affects uh the efficiency. However, I think all all 43:07 43 minutes, 7 seconds efforts are on to uh to meet the figures that you have mentioned on uh Orurin. Uh 43:15 43 minutes, 15 seconds I think I answered this uh with an earlier uh participant who asked me about what uh FI26 looks like. The real numbers will only come in through FI27. 43:26 43 minutes, 26 seconds Uh the plants are ready. Certifications are ongoing. So meaningful revenue will come from FI27. 43:32 43 minutes, 32 seconds uh because all the capex we'll had to go in is already done. Uh the same with the bromine derivatives uh the rest half of 43:39 43 minutes, 39 seconds the year I think we will uh do a little bit more than we've done in the first half of this year. But that one also is a bit of an R&D and a gestation period 43:48 43 minutes, 48 seconds in terms of getting certifications from uh the end users. But having said that I 43:54 43 minutes, 54 seconds think uh the first uh hurdle we had to cross was establish establishing ourselves as a producer. Uh second is 44:03 44 minutes, 3 seconds being a reliable producer and the third is quality. So I think uh the oil majors uh through the various distributing 44:10 44 minutes, 10 seconds distributors we are working with I think are convinced and the volumes obviously will grow in FI27. 44:18 44 minutes, 18 seconds Now specific you know what it will be it'll definitely be better than FI26 for sure. Uh and how much better I think uh 44:26 44 minutes, 26 seconds over the next couple of quarters uh we will uh have a better picture on that. 44:32 44 minutes, 32 seconds Yeah sir. Uh thanks a lot and all the best. Thank you. 44:37 44 minutes, 37 seconds Thank you. The next question is from the line of Ranji from IFL Capital. Please go ahead. 44:45 44 minutes, 45 seconds Yeah. Hi sir. Thanks for this opportunity. First one is just a keeping one. You shade your revenues for the second quarter on the bowine derivatives 44:53 44 minutes, 53 seconds uh which is around 43 crores. Uh it would be helpful if you can also provide the same figure for the 1Q of 526 45:00 45 minutes and the 33 67% revenue mix that you have shared was that for the first quarter sorry the second quarter or the first half that is my first question. 45:13 45 minutes, 13 seconds Uh Ranjit sorry uh can you repeat the question? Uh what did you want to know specifically? 45:20 45 minutes, 20 seconds Uh the 43 crores of revenue that you have mentioned for broine derivatives which was for the 2Q. If I can get a similar figure for first quarter FI26 45:30 45 minutes, 30 seconds and sorry the the 43 cr is for H1 is H1 not Q2 is H1. 45:38 45 minutes, 38 seconds Okay then if I can get it for 1 Q and 2K that would be helpful. Sure. 45:44 45 minutes, 44 seconds It is uh 23 cr in Q 1 and uh 20 cr in Q2. 45:52 45 minutes, 52 seconds Sure sir. Uh the second question is uh largely uh if you can update uh on the investment that we have or rather at I 46:01 46 minutes, 1 second have with the Pnesher University for silicon carbide thing. Have we made any progress on that one? 46:09 46 minutes, 9 seconds Yeah, we invested close to about uh 65 crores and uh we have successfully demonstrated and produced a silicon 46:17 46 minutes, 17 seconds wafer ingot and uh I think uh what we set out to do in IIT Beshwar at the research park uh with our investment we 46:26 46 minutes, 26 seconds have achieved that and also demonstrated it. Um so I think uh uh we are happy 46:33 46 minutes, 33 seconds with uh and lots of uh I think uh people are impressed uh from the uh community uh semiconductor community many people 46:42 46 minutes, 42 seconds have come and seen uh even though it's proprietary uh so I think uh we're happy with the outcome there 46:51 46 minutes, 51 seconds and that is what would be translated or used in the uh new facility that we would be setting it up. 46:58 46 minutes, 58 seconds It will be one of the future uh phases where we will set that up uh because uh the starting point is a silicon carbide 47:06 47 minutes, 6 seconds wafer as uh you may be aware and I think the fact that in India in India we've been able to demonstrate that it reduces 47:14 47 minutes, 14 seconds a large dependence factor uh on uh this uh raw material. 47:22 47 minutes, 22 seconds Sure. So thank you. And one last bit uh the 33 and 67% revenue is that for first half or second quarter 47:33 47 minutes, 33 seconds can you repeat sir revenue mix it is for first half it is uh 31 is for 47:40 47 minutes, 40 seconds 31 and uh 68 is for first half can I get that for the second quarter 47:49 47 minutes, 49 seconds I will get back to you separately we'll break it up Yeah, thank you. 47:57 47 minutes, 57 seconds Thank you. The next question is from the line of Mohit Mishra from ICICI Securities. Please go ahead. 48:07 48 minutes, 7 seconds Hi, sir. Thank you so much for the opportunity. I just Hello. Am I audible? Yes. Yes, sir. 48:16 48 minutes, 16 seconds Uh I just had a small bookkeeping question. I wanted to know if you could help me with the revenue figures for all 48:22 48 minutes, 22 seconds the segments uh during the quarter you mean quarter 1 48:30 48 minutes, 30 seconds Q2 Q2 second quarter Q2 yeah already given so 8 8893 48:36 48 minutes, 36 seconds metric t of industrial salt 3160 metric t of broine and 23 metric t of sales sop the revenue numbers not the volume. 48:49 48 minutes, 49 seconds Yeah. Uh industry ass 17 148 cr broine 72 cr sop small amount 14 lakhs. 49:00 49 minutes Okay sir. Thank you so much and all the best. Yeah thank thank you. 49:04 49 minutes, 4 seconds Thank you. The next question is from the line of Krishnan from GM Financial. Please go ahead. 49:11 49 minutes, 11 seconds Yes. Hi sir. Uh thanks for the opportunity sir. Um did you mention the derivative revenue of 23 crores uh in 1 49:19 49 minutes, 19 seconds Q because I think in the previous call you had mentioned 194 cr salt 84 cr bro 49:24 49 minutes, 24 seconds bro bro bro bro bro bro bro bro bro bro bro bro bro bro bro bro bro bro bro bro 49:24 49 minutes, 24 seconds bro bro bro bro bro bro bro bro bro bro bro bro bro bro bro bro bro bro broine so the balance comes out to to 14 cr so what's the difference 49:35 49 minutes, 35 seconds you're talking about uh the uh Q1 yes 49:44 49 minutes, 44 seconds Just give us a second. We'll clarify uh Q1. 49:48 49 minutes, 48 seconds Yeah. And just a request because I think you know in every call we need to check the volume and the revenue number. 49:53 49 minutes, 53 seconds Anyways, you give it out, right? So maybe uh just put it out in a presentation. It's a request because we have to keep asking for it and then 50:01 50 minutes, 1 second there is always a confusion. So volume and revenue numbers if you could put put out in the presentation would be very helpful. 50:07 50 minutes, 7 seconds Sure. Point point noted. Uh we will take that into account for sure. Thank you. 50:13 50 minutes, 13 seconds Yeah. Okay. No worries. I mean if you find the question later on if you find the answer later on uh you can. So I can just go ahead with the second question. 50:23 50 minutes, 23 seconds So you know just the second question is I mean we seeing that uh the company has been struggling to uh ramp up broine 50:30 50 minutes, 30 seconds derivatives or or you know start Orient hydrocarbon. Orin work carbon is rather recent but derivatives uh is almost like 50:38 50 minutes, 38 seconds two and a half three years since we have actually started the work maybe one and a half years since we actually completed the uh construction uh but there is a 50:47 50 minutes, 47 seconds there is a struggle there's a hold up and even our existing products there is a there is always a hold up probably it's the rain is the logistics so you 50:56 50 minutes, 56 seconds know what gives us confidence that you'll be able to commercialize semiconductor chemicals which is probably a rather a new area for altogether. 51:07 51 minutes, 7 seconds I think it's a fair question. So I think uh on the semiconductor front obviously you know u we work with both the state 51:15 51 minutes, 15 seconds and the central government. So in one sense you know uh everything is far more time bound and uh far more uh detail 51:24 51 minutes, 24 seconds oriented uh which is why as I said you know we've brought on uh three uh consultants on 51:31 51 minutes, 31 seconds board uh that bring the required expertise uh along with our own skill set on 51:38 51 minutes, 38 seconds handling large projects right uh the type of the uh industry is different hence we have used you know the outside 51:46 51 minutes, 46 seconds help to do that. So for example, we have uh uh you know uh one of the big four on the project management side. uh we have 51:54 51 minutes, 54 seconds one of the world's leading u uh semiconductor consultancies helping us on the go to market tech technical 52:01 52 minutes, 1 second evaluations etc as we build the plants right so we have taken due care and I think we're confident you know this is 52:09 52 minutes, 9 seconds the right approach uh using the right set of uh people with the right talent to bring on board and complement our own 52:16 52 minutes, 16 seconds skill set of executing uh difficult uh projects okay understood sir Um so just a 52:25 52 minutes, 25 seconds clarification on that uh so have you chocked out uh a capeex plan uh for the 52:32 52 minutes, 32 seconds full company for fi 26 27 and 28 because I think you mentioned 267 crores you'll have 60 70% government support but 52:40 52 minutes, 40 seconds you'll also be spending some amount on orin uh aume and this uh your 52:48 52 minutes, 48 seconds semiconductor so can you just uh chalk out the plans for us it's it's will be helpful 52:54 52 minutes, 54 seconds Sir I think uh on or on on orin and assume we don't have any large capexes planned the only one may be the flame 53:03 53 minutes, 3 seconds retardant project which is already accounted for in our initial investment plan of 250 crores give or take maybe 10%. 53:10 53 minutes, 10 seconds uh with inflation. Um and the only other capex the large one that will start will be on the semiconductor project that I 53:20 53 minutes, 20 seconds think as Rajiv mentioned uh that will become clearer over the next quarter once we sign the fiscal support 53:26 53 minutes, 26 seconds agreement uh with uh ISM and uh then we will start looking at you know the funding options available once the 53:34 53 minutes, 34 seconds number is frozen on in terms of who contributes how much center state and us 53:41 53 minutes, 41 seconds understood Uh thank you very helpful. Um and and did you get the clarification for the first quarter or no 53:49 53 minutes, 49 seconds or should I we'll send it to you separately to you? Yeah. 53:53 53 minutes, 53 seconds No worries. No worries. Thank you. Thank you and wish you all the best. Thank you. 53:58 53 minutes, 58 seconds Thank you. I request each participants to ask one question from now on. The next question is from the line of Rupes 54:05 54 minutes, 5 seconds from Long Equity Partners. Please go ahead. 54:09 54 minutes, 9 seconds Yeah. Hello sir. Thank you for the opportunity and I think first of all let me congratulate you on successfully demonstrating the the growth of the 54:18 54 minutes, 18 seconds wafer with with in collaboration with it Bhuneshwar I mean what what an amazing achievement so let me just congratulate you with that uh so most of my questions 54:26 54 minutes, 26 seconds are on 6M because time is very less so this I general project my understanding was was for 200 mm if if you can just 54:35 54 minutes, 35 seconds confirm that then whatever 60,000 wafers per PR uh project we're doing that is a 54:42 54 minutes, 42 seconds 150 mm line uh if if you can confirm that then this 2067 KEX 54:50 54 minutes, 50 seconds what is the timeline how how much time will it take once once we achieve financial closure 54:57 54 minutes, 57 seconds uh and then in in that capex I mean which part of the line or or the entire line we'll be doing and will we 55:05 55 minutes, 5 seconds be growing wafer as well or we'll just be doing epitaxial deposition or we'll be setting an ATMP line some some split 55:13 55 minutes, 13 seconds I think would be very uh helpful and then the final uh in that area is what is what is the involvement of uh classic 55:23 55 minutes, 23 seconds in the capex execution how how many 150 mm fabs or 100 mm fabs do they have how 55:30 55 minutes, 30 seconds is their track record how how involved are they in this if if you can give some color around this so these are some questions around 6M Yeah. 55:41 55 minutes, 41 seconds So, thank you uh for congratulating us. 55:43 55 minutes, 43 seconds I will start backwards. So, um so classic as you know is a strategic investment for us because we have a uh 55:52 55 minutes, 52 seconds an access to technology both current and future by virtue of the equity stake we have and sitting on the board. uh we 56:01 56 minutes, 1 second also have a licensing royalty and consulting agreement with them which provides not only for technology but also training manpower both at their 56:08 56 minutes, 8 seconds facility in uh UK as well as coming to India and training our people here uh as and when the construction and the operation of the plant uh starts. 56:20 56 minutes, 20 seconds Uh number two is uh the work we've done with IIT Boneser as you rightly said is 56:27 56 minutes, 27 seconds a 200 mm project. I think the idea was to demonstrate that we can produce 200 56:33 56 minutes, 33 seconds mm on our own as 6M stroke aren. And I think that's what we demonstrated. 56:40 56 minutes, 40 seconds And as you rightly said, our line uh is for 150 mm in 6M the project uh 60,000 56:48 56 minutes, 48 seconds wafers. But I think um the uh the way the technology works is uh 150 mm if 56:57 56 minutes, 57 seconds you're able to do a 200 mm you know what uh bringing it down to 150 mm uh is anyway being provided by classic. So 57:05 57 minutes, 5 seconds we're just thinking ahead of the future as well concurrently to what we already have a license for. 57:13 57 minutes, 13 seconds Okay. Okay. And then the so timeline and the split between various media. 57:18 57 minutes, 18 seconds The time the timeline uh we have a pretty aggressive timeline uh but as you know u uh it's better to be uh 57:27 57 minutes, 27 seconds conservative. So at the moment we're looking at around 30 odd months. 30. Did you say 30? Yeah. 30. 57:36 57 minutes, 36 seconds Okay. Okay. And and and the split also, sir. Uh split of the funding. 57:45 57 minutes, 45 seconds Yeah. Yeah. I mean this two 2067 cover how how will be how much will be for blowing? How much will be for epitex eper? How much will be for process fabrication? 57:55 57 minutes, 55 seconds So at at the moment uh that information is not uh publicly available uh simply because I think we are yet to sign off 58:04 58 minutes, 4 seconds on some paperwork. Um so I think that will become clearer once you know we get that done over the next quarter. 58:14 58 minutes, 14 seconds Okay. Okay. 58:17 58 minutes, 17 seconds Yeah. Okay. I I'll come back in with you. Yeah. 58:20 58 minutes, 20 seconds Thank you. The next question is from the line of Sanjay Kumar from I thought PMS. Please go ahead. 58:29 58 minutes, 29 seconds Uh hi sir, thanks for the opportunity. 58:31 58 minutes, 31 seconds Uh just one or two questions on uh uh SIC GA capex. uh given that uh we are 58:38 58 minutes, 38 seconds still in an R&D phase for growing bowls or the uh the wafers have we sort of signed agreements to secure uh wafer 58:48 58 minutes, 48 seconds supplies uh for 150 mm for our uh uh line because what's happening in the sector is uh every global player is 58:56 58 minutes, 56 seconds securing long-term contracts or agreements with the wafer manufacturers. 59:01 59 minutes, 1 second So what is our plan for securing wafer supply? Second on classic uh I I believe 59:07 59 minutes, 7 seconds they have a,200 voltage uh product. Uh what will be our product mixer in terms of voltage? Will will we be around 1,200 59:16 59 minutes, 16 seconds and sub,200 or do we plan to go to the higher wtages of say 3.3 KV and uh more? 59:26 59 minutes, 26 seconds So I think uh so both the questions you've asked are pretty uh confidential. 59:31 59 minutes, 31 seconds Um and the way I will answer it is uh it is meant to just it's not meant to be evasive but give you as much as I can 59:39 59 minutes, 39 seconds publicly disclose. I think we're comfortable where we are in terms of supply of wafers. Uh we don't see a 59:46 59 minutes, 46 seconds problem with that. we've taken due care and on the second part I think uh uh 59:55 59 minutes, 55 seconds classic has a range uh of uh voltage products and obviously you know uh now we continue to work with them on both 1:00:04 1 hour, 4 seconds their present portfolio as well as future products uh because it continuously evolves different applications have different voltage 1:00:11 1 hour, 11 seconds needs so I think uh we are in uh in step with classic on that And apart from that you know there are other people also 1:00:18 1 hour, 18 seconds we're working with which you know uh you know in in due course we will uh disclose. 1:00:26 1 hour, 26 seconds Okay. Okay. Thank you sir. Thank you. 1:00:30 1 hour, 30 seconds Thank you. Due to time constraints we will take that as the last question for today. I now hand the conference over to the management for closing comments. 1:00:40 1 hour, 40 seconds Thank you everyone for joining us on this earnings call. We appreciate your time and showing interest in our company. 1:00:46 1 hour, 46 seconds uh we will work through uh the challenges we have right now but as I said the market remains robust. We are well placed in the marketplace and I 1:00:55 1 hour, 55 seconds think uh with all the initiatives you taken the business will continue to grow and show uh good returns. In case of any 1:01:02 1 hour, 1 minute, 2 seconds queries you can get in touch with us or SGA our investor relations advisors and we look forward to meeting all of you over the next call. Thank you very much 1:01:11 1 hour, 1 minute, 11 seconds and uh although it is early wish you all a very happy new year uh in uh December. 1:01:17 1 hour, 1 minute, 17 seconds Thank you on behalf of Aran Chemicals Limited that concludes this conference. Thank you for joining us and you may now disconnect your lines. Thank you.