Archean Chemical Industries Limited — Q3 FY26

Archean Chemical Industries Ltd Q3 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=FITTJEyg8pg Published: 3 months ago

0:00 Ladies and gentlemen, good day and welcome to Arkin Chem Chemicals Industries Limited Q3 FI26 earnings 0:07 7 seconds conference call. As a reminder, all participants line will be in the listenon mode and there will be an opportunity for you to ask questions 0:15 15 seconds after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing star then zero on 0:23 23 seconds your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Ranjit 0:30 30 seconds Pendori, executive vice chairman of Arkin Chemicals Industries Limited. Thank you and over to you sir. 0:39 39 seconds Thank you. Good morning everyone. A warm welcome to all of you joining our Q3 and 9 month FI26 earnings call. Thank you 0:49 49 seconds for taking the time to be here with us today. On this call we are joined by Mr. 0:54 54 seconds Mr. Ram Pramin Swami Nadan managing director Mr. Natrajan Ram Morti CFO Mr. 1:00 1 minute Rajiv Kumar DGM Finance and SGA team our investor relations adviser 1:08 1 minute, 8 seconds first update is on the changes in the senior management team. 1:12 1 minute, 12 seconds Further the board has appointed Mr. Ram Pravin Swaminadan as the managing director of the company. We would like to welcome him to the ARN team. Ram 1:21 1 minute, 21 seconds Pravin Swaminadan has over 28 years of experience in business leadership, operations and strategic transformation across industrials, energy and manufacturing sectors. 1:32 1 minute, 32 seconds He has led large-scale growth technology enabled transformations and operational turnarounds across multiple geographies and industries. 1:40 1 minute, 40 seconds He's most recently served as the MD and CEO of Mahindra Logistics Limited where he repositioned the company as an 1:47 1 minute, 47 seconds integrated technology-driven logistics provider and significantly scaled its revenues. 1:53 1 minute, 53 seconds Our colleague Mr. Karnan has decided to move out of the company due to personal reasons. I'd like to place on record our thanks and appreciation for Mr. Karnan for his contributions to the company. 2:05 2 minutes, 5 seconds Mr. Karnan will continue to work closely with Ram and myself over the coming months as part of the leadership trans transition. 2:13 2 minutes, 13 seconds We at a very exciting phase in Arkin Chemicals businesses across the range of businesses we operate and to further 2:21 2 minutes, 21 seconds lead this exciting phase of growth. Ram has agreed to come on board and lead the management. 2:28 2 minutes, 28 seconds I will now hand over to Ram to provide an overview of the business performance. Thank you. 2:36 2 minutes, 36 seconds Uh good morning everyone and thanks Ranjit. Uh I am pretty excited to be joining the team uh as we focus on developing the organization and scaling 2:44 2 minutes, 44 seconds up uh our businesses further in the future. Uh I'm also looking forward to engaging with our investor community including all of you on the call today 2:52 2 minutes, 52 seconds uh and taking your inputs and insights as well on this journey. Uh I hope you all have had a chance to go through the financial results and the investor presentation which is available on our 3:00 3 minutes website and the stock exchanges websites. uh I will provide a quick summary of the overall business performance and then hand it over to Natrajan for a quick financial summary 3:09 3 minutes, 9 seconds and then revert back for the Q&A and closing comments. uh so starting with just an overall market uh market environment uh you know over the last uh 3:18 3 minutes, 18 seconds we have been working operating in a mixed market environment uh driven by some level of uncertainties over the past three to four quarters. Uh while there are early indications of 3:27 3 minutes, 27 seconds improvement, we expect the rest of this year largely to be one of stabilization uh and the operating environment to normalize as we move forward. Uh we are 3:36 3 minutes, 36 seconds closely tracking developments across the proposed India, US and the India EUFDAS which could be and platform to create new opportunities for the Indian 3:45 3 minutes, 45 seconds speciality chemicals exporters over the medium to long term. uh the India EUFT and other regional trade agreements will provide long-term tailwinds for the 3:54 3 minutes, 54 seconds sector though it has short-term limited short-term impact on our operating segments. Uh during this period uh our 4:01 4 minutes, 1 second focus continues to remain firmly on strengthening the fundamentals of the business uh driving focus growth um you know accelerating operational excellence 4:10 4 minutes, 10 seconds uh deepening our customer partnerships and you know capability building across the enterprise. A continued focus and acceleration on this will ensure that we 4:18 4 minutes, 18 seconds are well positioned to benefit uh from these initiatives uh and other macroeconomic drivers which we believe uh continue to remain extremely positive 4:27 4 minutes, 27 seconds for our company and the sector as a whole. uh coming more specific to our own performance. Uh you know as as we 4:34 4 minutes, 34 seconds have mentioned in prior earnings calls as well uh the overall business performance in the first two quarters was challenging uh with results imparted 4:42 4 minutes, 42 seconds by multiple issues including erratic monsoons, logistics disruptions in our area of operations, uh some technical 4:49 4 minutes, 49 seconds issues in our plant operations and lower uh crude prices which kind of impacted rig activity and affected some of our end markets. Uh we've also seen a mixed 4:58 4 minutes, 58 seconds environment on pricing with continuing pressure on industrial salt uh prices but favorable movements on growine. Uh 5:05 5 minutes, 5 seconds on a positive side in the quarter we just completed I think price salt pricing was stable uh and that's kind of an uh a good good trend uh as we look 5:14 5 minutes, 14 seconds forward uh increasing broine prices have also put pressure on margins in the derivative segment uh and demand for some of the downstream products. uh 5:23 5 minutes, 23 seconds despite these challenges uh I think we were able to capitalize on some of the tailwinds uh and drive uh know stronger momentum in the third quarter uh we saw 5:32 5 minutes, 32 seconds an healthy demand in the industrial so salt segment uh which showed strong volume growth year on year and also year-on-year growth in derivatives uh 5:40 5 minutes, 40 seconds which partially offset weaknesses in other segments most uh specifically the broine uh the broine business on a 5:47 5 minutes, 47 seconds consolidated business the company has reported 11% year-on-year revenue growth for the 9month period uh and for Q3 5:55 5 minutes, 55 seconds specifically our revenues on the standalone operations grew by 12% and consolidated operations grew by around 10%. Now I'd say growth uh was limited 6:04 6 minutes, 4 seconds for us in as much by operational factors as by the market and I kind of talk about them a little bit more as I cover 6:11 6 minutes, 11 seconds segmental performance. Uh so going to the specific segments uh and I'll start off with elemental broine demand for broine continues to remain strong. uh 6:19 6 minutes, 19 seconds you know during the first nine months India was a net importer of bromine uh with you know stable to positive trends globally as well as domestically in 6:27 6 minutes, 27 seconds terms [clears throat] of demand. Uh short-term pricing trends have also remained favorable and we continue to have a very healthy order book uh and are seeing positive traction with our 6:36 6 minutes, 36 seconds customers. Uh we'll also continue to see growing demand internally from our derivatives business which is a um and overall I think we believe we remain 6:44 6 minutes, 44 seconds very well positioned from market perspective. Uh and from a demand side uh you know we definitely think that you know that the volume growth uh is likely 6:53 6 minutes, 53 seconds to continue to happen. Uh our engagement with clients remain strong and they continue to support us. Um and obviously 7:01 7 minutes, 1 second the this year and next year we expect bromine cap consumption from our captive operations to also uh drive further growth. Uh during the quarter as in 7:10 7 minutes, 10 seconds prior quarters I think our our performance remain constrained by operational challenges and disruptions. 7:15 7 minutes, 15 seconds uh these did continue to imp you know some of the challenges we had in Q2 did impact us in early Q3 as well uh we have 7:23 7 minutes, 23 seconds launched several improvement projects which we expect will help us get back to steady state uh in Q4 and then we'll further try to scale up operations um in 7:32 7 minutes, 32 seconds the in the coming quarters uh for the quarter uh you know elemental broine contribute approximately 24% of standalone revenues uh and for for year 7:41 7 minutes, 41 seconds to date it has been approximately 29% of our consolidated revenues uh in on industrial salt. During the quarter we sold approximately 1.1 7:50 7 minutes, 50 seconds million tons of salt uh kind of reverting back to our quarterly run rate of more than a million tons. Uh the 7:58 7 minutes, 58 seconds segment contributed nearly 70% of Stalinone revenue uh and for the nine months our volumes are now about 3 8:05 8 minutes, 5 seconds million tons with demand remain being uh robust despite the moderation in prices. 8:11 8 minutes, 11 seconds uh sequentially Q on Q uh pricing has remained stable uh and we expect that to continue in the short term. Uh we have a 8:18 8 minutes, 18 seconds strong demand visibility and you know our long-term contracts our customers continue to be in good shape. Uh so we we continue to expect to scale this 8:26 8 minutes, 26 seconds business up with some seasonal uptick in Q4 um and continuing kind of expansion of operations as well. Uh on SOP uh 8:34 8 minutes, 34 seconds which I think uh you know just continues to extending from what we had covered in the last quarter. Uh our pilot stage 8:41 8 minutes, 41 seconds trials uh have been completed successfully. Uh during the quarter we have worked towards progressing from pilot to plant scale trials. uh the site 8:51 8 minutes, 51 seconds is ready uh and we are on the verge of commencing plant scale trials and expect meaningful contributions uh from this 8:58 8 minutes, 58 seconds business in the in F-27 especially the latter half of F27. Uh as we stated as you have stated repeatedly uh we 9:05 9 minutes, 5 seconds continue to believe and have strong conviction that SOP uh has significant potential for the business in the long term. Um and uh you know we our 9:14 9 minutes, 14 seconds challenges in that business has been obviously around uh you know changes in feed stock given brine quality uh and those are the technical changes we are 9:23 9 minutes, 23 seconds making in the plant operating system now which should when when successful will kind of position us well to start scaling up operations again uh on broine 9:31 9 minutes, 31 seconds derivatives which is essentially in a our operations are up and running. 9:35 9 minutes, 35 seconds Uh we're currently at around 30 to 40% utilization. and we have around 40 reactors and you know month and month they change but generally around 30 to 9:43 9 minutes, 43 seconds 40% utilization. Uh global uncertainties and obviously lower crude oil prices have impacted rig activities which has 9:50 9 minutes, 50 seconds further impacted the oil field chemical market demand. Um the on the supply side price increases on bromine have also 9:58 9 minutes, 58 seconds increased cost pressures. Uh however we are engaging with clients uh availing certifications uh you know and approval 10:06 10 minutes, 6 seconds uh right and expect the volumes to start scaling up um you know we continue to focus really on product development uh we have around 15 new products in 10:14 10 minutes, 14 seconds pipeline which are at different stages in in terms of customer trials and completion u and this should help us uh 10:21 10 minutes, 21 seconds we believe uh grow toward 50 to 60% utilization uh in the coming quarters. 10:27 10 minutes, 27 seconds uh we've in the past mentioned uh about the flame retardant brooming project. So a quick update on that uh we are in the project evaluation phase there um and 10:36 10 minutes, 36 seconds we'll provide an more detailed update on that as we make progress. Uh I know current market environment is kind of mixed there. So we are trying to 10:43 10 minutes, 43 seconds evaluate the feasibility of u of that business and how quickly we can um scale that scale volumes up. 10:51 10 minutes, 51 seconds Uh now moving on to our strategic initiatives especially in what I call the advanced material space broadly. Uh on the semiconductor side during our the 11:00 11 minutes quarter our semong business initiative through system continue to make strong progress. Uh as you're all already aware is among the 10 projects approved by the 11:08 11 minutes, 8 seconds union cabinet under the Indian semiconductor mission. Uh the finalization of the fiscal support agreement with uh the Indian semiconductor mission is currently 11:16 11 minutes, 16 seconds underway and is expected to complete to be completed soon. uh which will then uh give further finalization to the overall 11:23 11 minutes, 23 seconds funding framework. Execution on the ground has already begun. Uh the 25 acre site in Info Valley Bhneshw has been 11:31 11 minutes, 31 seconds allotted and uh we held a groundbreaking ceremony on that at the site in uh November 2025. Uh land uh you know 11:40 11 minutes, 40 seconds leveling is complete and we are right now on going through topographical survey and soil testing um right before we start any uh know construction 11:48 11 minutes, 48 seconds activity. Along this along the same time we're also kind of investing in developing our gotom market strategy uh 11:55 11 minutes, 55 seconds finalizing our supply partners including for fab design EPC and project execution um and overall you know we believe the 12:03 12 minutes, 3 seconds project is well positioned uh from a timing perspective we are on target right now uh in terms of our internal schedules uh and from an medium to 12:11 12 minutes, 11 seconds long-term perspective we continue to believe that this is very well positioned uh to not just enhance our own business but also I think contribute 12:19 12 minutes, 19 seconds ute meaningfully to India's emerging uh compound semiconductor ecosystem. All right, we'll continue to share uh this is a this is a longest stationation 12:27 12 minutes, 27 seconds project. So we'll continue to share updates uh with all of you as we move to the next phase of execution. uh our energy story storage business uh which 12:36 12 minutes, 36 seconds is the other other strategic initiative we have uh as you know we have invested in offgrid energy labs a zinc bromide 12:42 12 minutes, 42 seconds battery innovator uh with a robust IP portfolio of over 50 patents uh and more across cathodes anodes and separators u 12:50 12 minutes, 50 seconds in May 2025 just to remind everyone we successfully acquired 18.14% uh with the remaining commitment expect 12:57 12 minutes, 57 seconds to be completed over the coming period uh the company as an offgrid energy labs plans to set up a 10 megawatt R demo 13:05 13 minutes, 5 seconds manufacturing facility in the UK. Uh the work has already started and is progressing well uh with the R&D uh for the next generation state station energy 13:14 13 minutes, 14 seconds solutions uh kind of underway. Uh again this is an project we continue to keep you all updated of progress in the coming quarters. Uh overall if I kind of 13:23 13 minutes, 23 seconds looked at summarizing uh at a high at a summary level you know our business fundamentals remain you know strong and robust. Our marine chemicals portfolio 13:32 13 minutes, 32 seconds is well positioned uh with high product quality, strong customer acceptance uh and continued focus on strengthening our 13:39 13 minutes, 39 seconds cost position. Uh year to date we have had some challenges operationally due to some external factors uh and operational factors really in the blooming business 13:47 13 minutes, 47 seconds uh and of course some external issues around pricing um on the industrial solid side. Uh but we are remain focused on recovering this in coming quarters. 13:56 13 minutes, 56 seconds uh our longerterm investments and advanced materials are on track continue to position as well for the long term. 14:02 14 minutes, 2 seconds Uh so I'll now hand over to Natrajan to provide a more detailed financial summary for the quarter uh and uh for the year to date and then you know we I'll come back uh for the Q&A. 14:13 14 minutes, 13 seconds NRA yeah thank you and a very good morning to all the participants on the call. We are pleased to report a notable performance for the quarter gone by. To 14:22 14 minutes, 22 seconds give you a summary of Q3 and 9 months FYI26 on a standalone basis, let's start 14:29 14 minutes, 29 seconds with Q3 FY26 performance. Total income for Q3 FI26 stood at 2,68.1 14:37 14 minutes, 37 seconds million 2.4 increase on a year-on-year basis. We have shared the revenue and business mix in the investor presentation for better understanding. 14:46 14 minutes, 46 seconds Our business mix is as follows. In Q3, brooming contributed 23% of the total standard revenue and the industrial salt 14:54 14 minutes, 54 seconds contributed around 77%. Sale volume of the business are as follows. 15:00 15 minutes Volume sales of broine for Q3 FI26 stood at 2403 ton. Volume sales of industry 15:06 15 minutes, 6 seconds sold Q3 FI26 stood at 1.1 million ton. A bit for the company stood at 698.6 6 15:14 15 minutes, 14 seconds million in Q3 FI26 25% decline on a year-on-year basis. Eida margin stood at nearly 27% for the quarter. Increase in 15:23 15 minutes, 23 seconds expenses were largely due to increase in logistics cost, new employees and other overhead cost from the new units. 15:31 15 minutes, 31 seconds Net profit of Q3 FI2 stood at around 343 million. Um coming to 9 months 15:39 15 minutes, 39 seconds performance, total revenue for 9 months stood at 7,840 million, 7.4% growth on a year-on-year basis. Aida 15:48 15 minutes, 48 seconds stood at 2416 million, 10.8% deep on a year-on-year basis. Net profit 15:56 15 minutes, 56 seconds is 1,246 million. Um 1.6% decline on a year-on-year basis. on a consolidated 16:04 16 minutes, 4 seconds basis Q3 and 9 9 month performance stood at total revenue Q3 FI26 stood at 2615 16:13 16 minutes, 13 seconds million bromine der derivative 142.1 million aid for the company 613.5 16:23 16 minutes, 23 seconds million and the net profit 240 million 9 month performance total revenue 816.7 16:31 16 minutes, 31 seconds milliona 2,166 million and net profit 931 million. With this we conclude the speech and open the floor for Q&A. 16:42 16 minutes, 42 seconds Thank you Natraan. Uh we'll we'll now open for Q&A and I request the moderator to kind of uh facilitate the same. 16:51 16 minutes, 51 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 touchtone 16:59 16 minutes, 59 seconds telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a 17:08 17 minutes, 8 seconds question and you are also requested to limit your questions to two per participant. Ladies and gentlemen, we will wait for a moment while the question queue assembles. 17:19 17 minutes, 19 seconds The first question is from the line of Sanjay Jen from ICICI Securities. Please go ahead. 17:26 17 minutes, 26 seconds Yeah, morning Sanjay. Good morning. Good afternoon Sanjes. Good afternoon. 17:30 17 minutes, 30 seconds Good afternoon. Uh so quickly uh I got couple of questions but before that uh just data keeping questions. Natraan sir 17:38 17 minutes, 38 seconds can you repeat the revenue for Akums for Q3 SOP and volumes for both? 17:45 17 minutes, 45 seconds Yeah sure sure. Uh one second Q3 [clears throat] only right? 17:49 17 minutes, 49 seconds Yeah Q3. 23 total quantity is 799 metric t and uh 17:54 17 minutes, 54 seconds value is uh in okay in 137 million 137 and for 9 months ended 18:03 18 minutes, 3 seconds no for SOP no 9 month we got okay SOP yeah SOP volume and revenue 18:12 18 minutes, 12 seconds yeah SOP Q3 is uh Um 18:20 18 minutes, 20 seconds one second. Okay. It is Q3 is 71 metric tan. Okay. And value is 751. Okay. 18:29 18 minutes, 29 seconds No no 7 71 71 71 71. Okay. Okay. Okay. And value is value is 32 lakhs. 18:39 18 minutes, 39 seconds Okay. 32. Uh so so now coming to the uh questions uh you mentioned in the 18:47 18 minutes, 47 seconds initial remark that you are seeing pressure on the broine derivative but on the other side if I look at the bromine prices they have really shot up now both 18:55 18 minutes, 55 seconds really doesn't add up if there is a pressure on the derivative how can the elemental prices go up or if there is a 19:02 19 minutes, 2 seconds or there is some supply constraint which is driving this broken prices uh how should we read this commentary either. 19:11 19 minutes, 11 seconds No. So I think uh my comment was that we obviously the increase in broine prices obviously spring thoughts cost pressures 19:19 19 minutes, 19 seconds uh on our uh bromine derivatives business. Uh and what I mean by sesh obviously is that given the specific 19:26 19 minutes, 26 seconds products we are making right now and the way the contracts are not all of the crossing is something we're going to pass through to our clients. Right. 19:34 19 minutes, 34 seconds Right. So you're seeing this trend where obviously bromine prices are up and very favorable for us if our volumes have been better on the broine side. Uh but 19:42 19 minutes, 42 seconds that increase is also putting cost pressures on the elemental broine business. And that's why you have seen in the accum side we've had to uh 19:50 19 minutes, 50 seconds enhance our product development efforts towards new products. Uh and also we've seen some downtick in our revenues because we've had to kind of adjust 19:58 19 minutes, 58 seconds volumes on some of the products where uh we had a higher cost impact. 20:03 20 minutes, 3 seconds No, I got it. There are only three product which significantly take away the bromine volumes globally. Now what 20:10 20 minutes, 10 seconds we are telling is that the derivative pressure is specific to the arkin not to the industry. Right? Then yeah it's specific more to our products. 20:19 20 minutes, 19 seconds That's why I made that comment that currently our current product portfolio has a car has a longer tail on that. Uh which is why I mentioned we are in the 20:28 20 minutes, 28 seconds process of accelerating the 15 products we have in the pipeline. 20:32 20 minutes, 32 seconds Very clear. Second on the broine last quarter we mentioned that we have a 10,000 metric ton of backlog. Uh the production really not keeping up. Just 20:41 20 minutes, 41 seconds wanted to understand how much of this backlog uh is with the lower pricing which may hurt us because we are not fulfilling that and probably may have to fulfill 20:50 20 minutes, 50 seconds them in the future. And number two that means the realization we will be in the catching up catching up game and number two what really is happening on the 20:57 20 minutes, 57 seconds production side. Can you help us understand when we say the technical problem uh what what we really mean technical problem? 21:05 21 minutes, 5 seconds All right. So let me answer the first question first. I think uh uh I think we so we have much of the order intake we 21:13 21 minutes, 13 seconds had uh you know is roughly at the same price. Uh it's still very much still there Sunday. So I think the 10,000 ton or 9 and a half thousand ton backlog we 21:22 21 minutes, 22 seconds had at the end of last quarter. We obviously shipped approximately uh 2 and a half thousand tons of that. 21:28 21 minutes, 28 seconds So we have still around 6 and a half thousand tons in backlog. Uh we've not seen a significant amount of cancellations there. Uh we are obviously 21:37 21 minutes, 37 seconds reviewing by contract with our individual customers on what is the uh what we can do to repric those contracts. Um if I had to give a simple 21:45 21 minutes, 45 seconds headline message I think there will be some carry uh over the next uh one and a half quarters or so but we hope to then 21:52 21 minutes, 52 seconds reset to market pricing uh over the next couple of quarters right so there'll be some carry in it uh I don't have a more 21:58 21 minutes, 58 seconds specific answer at this stage uh you happy to kind of revert back to you a little bit more detail there but that's just like a headline uh you u on the 22:08 22 minutes, 8 seconds operational side I think uh what's really happened uh is and I think uh Ran Ranjit and Kandan may have spoken about this a little bit last quarter's call. 22:16 22 minutes, 16 seconds Uh you know we've obviously had a fair amount of weather changes you know the last the first 6 months uh and flooding and kind of weather changes have meant 22:25 22 minutes, 25 seconds that the brine quality uh which then kind of drives the feed stock quality has changed in terms of composition. Uh 22:33 22 minutes, 33 seconds that has meant that we've had to make some changes in our brine field operations uh to kind of uh to kind of ensure that we are enhancing the feed 22:42 22 minutes, 42 seconds stock quality. uh we've also had to make some you know changes or improvements in the operation in the plant itself to be 22:49 22 minutes, 49 seconds able to kind of manage a wider range of prime or input feed stock. Uh so we had a trailing effect of that uh century 22:56 22 minutes, 56 seconds throughput came down because of that uh last quarter as well and we had a trailing effect of that in the first 23:04 23 minutes, 4 seconds half of this third quarter as well. uh we then obviously launched some improvement projects. We had that also resulted in some uh time off because we 23:11 23 minutes, 11 seconds had to kind of make changes in the system. Uh we ended the quarter getting back on a positive trend. Uh and that's 23:19 23 minutes, 19 seconds why I mentioned that I believe that uh you know in the coming quarters uh in the short earlier than later we should be able to get to a steady state. Uh 23:27 23 minutes, 27 seconds steady state to remind you in my mind uh is kind of what lasted last year last couple of years we've been at the 18,000 ton kind of level. uh and we want to get 23:36 23 minutes, 36 seconds back there and then obviously uh our goal is still in the medium near to medium term to try and get to the 25,000 t run. 23:45 23 minutes, 45 seconds Got it. Got it. So we had a capacity of 42. Why why are we targeting only 25 that there's a disconnect between the 23:53 23 minutes, 53 seconds capacity we have and the production we are targeting? 23:57 23 minutes, 57 seconds So Sanjesh Rajiv there I'll step in Raj see hi Sanjesh so see as as we have 24:05 24 minutes, 5 seconds previously mentioned in our call the capacity expansion will actually primarily happen between 25 and 42 in 24:13 24 minutes, 13 seconds line with the capacity expansion in the derivative business. Okay. Yeah. 24:21 24 minutes, 21 seconds So, so as we put up more derivative only then we will be able to uh extract more brain or we will be extracting more brahmen probably and 24:30 24 minutes, 30 seconds so I think obviously uh yeah that's a headline that's overall got it no but but just want to understand on the derivative side 24:38 24 minutes, 38 seconds there's a sharp drop in the volume how do we plan to ramp it up and I think we are lagging significantly in terms of what we thought we should do I know the 24:46 24 minutes, 46 seconds market conditions stuff but can you help us understand how should we look at FI206 seven for us. 24:53 24 minutes, 53 seconds Yeah. So I think uh just answer the question more clearly. Uh see we are right around 35 to 40 30 to 40% 25:00 25 minutes utilization. Uh so first the plant is uh first target for us in the kind of we get the utilization up. The second thing 25:08 25 minutes, 8 seconds I think is that you know the product mix we have uh we have you know essentially three to five products which are running 25:14 25 minutes, 14 seconds most of the volume. uh those are things which we would like to kind of uh you know move away from or change the mix from away from that. Uh so that's the 25:24 25 minutes, 24 seconds two big focuses right now is to get the right product mix uh get the right level of penetration with customers. uh the 25:32 25 minutes, 32 seconds potential is there even though markets are a bit soft I think the potential is there uh and uh we have uh we ended we 25:39 25 minutes, 39 seconds we started the quarter with around five six products in the pipeline uh Q3 uh and as we speak right now we've actually 25:46 25 minutes, 46 seconds expanded uh products to around 15 products which are now in trials and going through kind of customer acceptation acceptance validation and so 25:54 25 minutes, 54 seconds on. Uh so that's kind of the focus is to kind of expand the product portfolio and repivot the portfolio let me say towards better yield uh kind of products for us. 26:05 26 minutes, 5 seconds Uh what does this translate into math? 26:07 26 minutes, 7 seconds Uh I think for know 26 27 as I mentioned earlier we are trying to scale it up to around 60 to 70% utilization uh at a 26:16 26 minutes, 16 seconds plant level. uh and of course that'll move day to day or week to week based on which reactors we operate but just from an overall throughput perspective to get 26:23 26 minutes, 23 seconds to that 60 to 70% level uh that's the product portfolio we've been working on um and I think you'll see that step up you know Q on Q it will not be a it 26:32 26 minutes, 32 seconds won't be a it's not a one-time switch uh but over the next couple of quarters you should start seeing that uh scaling up 26:39 26 minutes, 39 seconds no that's great uh thanks thanks for answering all those questions so patiently and a clip for the coming quarters 26:48 26 minutes, 48 seconds Thank you. The next question is from the line of Vin Nadkarnney from Hatway Investments Private Limited. Please go ahead. 26:57 26 minutes, 57 seconds Yeah, good afternoon. Uh I have just one basic fundamental question. I when I'm looking at your company for the last 27:06 27 minutes, 6 seconds what seven eight quarters now uh the whether it is orin hydrocarbons whether it is u you know your bromine 27:14 27 minutes, 14 seconds derivatives whether it is bromine also or SOP everything gets delayed as the quarters go by every time there is some 27:23 27 minutes, 23 seconds kind of a delay that is happening is there any uh management bandwidth issue that you 27:30 27 minutes, 30 seconds have which is impacting So he I think uh I I don't think that 27:37 27 minutes, 37 seconds would probably uh so firstly every company has challenges around management bandwidth scale up operations. So I would I'd be caution but but that would be an oversimplification of the issue. I 27:46 27 minutes, 46 seconds think there specific challenges we've had uh right so obviously broine uh we have we were at a good run rate prior as 27:54 27 minutes, 54 seconds I think we were at 17 18,000 tons. We are we are looking at a run rate of around 25. Uh and then as you mentioned earlier to do a kind of a minor 28:03 28 minutes, 3 seconds brownfield expansion to take it around to that target of 40,000. Uh we've had the setbacks which we talked about earlier and and I think we have good 28:12 28 minutes, 12 seconds bandwidth on the ground which is why we've been able to make these changes within one quarter. Right? It's a continuous op it's a continuous process manufacturing plant. Uh and we've been 28:20 28 minutes, 20 seconds able to make changes in fact without any major shutdowns. uh right because we have fairly good bandwidth on the ground 28:27 28 minutes, 27 seconds uh industrial salt volumes are growing uh right and therefore we are so in that part of the business I think uh there 28:34 28 minutes, 34 seconds are there are headwinds but there's no challenge around bandwidth um right the idealist investment is was always pro 28:42 28 minutes, 42 seconds was projected saying that it will take us multiple quarters as we had got the assets out of NCT uh we had to make stepwise changes there are issues in 28:50 28 minutes, 50 seconds terms of local ecosystem challenges and so on um the good thing and so there's it's not been that we don't have bandwidth we don't have team working on 28:58 28 minutes, 58 seconds it it's just I think the nature of the uh the the program which we had and we always I think more caution to the fact 29:05 29 minutes, 5 seconds that given it's an NCT asset uh buyout uh it will be a stage recovery process and not a not an overnight kind of scale 29:13 29 minutes, 13 seconds up three plants are now operational uh right we have to take uh these products actually have a long customer certification cycle uh it's not a 29:22 29 minutes, 22 seconds commodity product like salt uh right and therefore uh it does require uh a fair amount of customer you know approvals uh so three plants are up 29:31 29 minutes, 31 seconds and running now we are in the process of scaling it up uh on the accum side and the derivative side yes I think that's a piece which has been uh I think we you 29:39 29 minutes, 39 seconds know we we are to execute that a little bit better uh and and those are changes which we are making right so I think uh and a lot of that is around product 29:47 29 minutes, 47 seconds development uh we've accelerated that uh over the last quarter uh and we continue to focus on accelerating that this 29:54 29 minutes, 54 seconds quarter even further. Right? So that's a piece where back end is really solid. Uh right operationally we are in the plant's in great shape. It's very good. 30:03 30 minutes, 3 seconds It's got great operating metrics but the demand side has been scale up has been weak because we have had to uh you know 30:11 30 minutes, 11 seconds kind of rework our go to market in our product portfolio and that I I I take your point and that's what we are working on right now. 30:17 30 minutes, 17 seconds Yeah. My my observation was also on SOP because that is one high margin product that you have and uh which has got a 30:25 30 minutes, 25 seconds good demand also but somehow quarter after quarter we see delays getting you know a little too frustrating now. Sahad 30:34 30 minutes, 34 seconds as you know our conviction on SOP so I mean so our conviction on on on SOP still remains extremely strong right we 30:42 30 minutes, 42 seconds had maintained that now for several years uh right uh it's a complex technical issue uh and uh not uh it's 30:50 30 minutes, 50 seconds not you know the lack of our our resources committed to it or the capability of those resources we have uh strong resources partnerships globally 30:59 30 minutes, 59 seconds uh but it is a complex technical problem which takes time to solve uh I think we are now getting close to a point where we think we have I would say a more 31:08 31 minutes, 8 seconds enduring fix. Uh we have been trying to do many short-term fixes which obviously have not given the yield we're expected. 31:14 31 minutes, 14 seconds Uh so we are now at a point where I think we have a more enduring fix but it'll take us a few more quarters to get there. Thanks. Thanks a lot for that answer. 31:22 31 minutes, 22 seconds Looking forward to a brilliant F27. 31:28 31 minutes, 28 seconds Thank you. The next question is from the line of Rohit Nag from 361 Capital. Please go ahead. 31:37 31 minutes, 37 seconds Uh thanks for the opportunity. Good afternoon. Uh so first question is in terms of the contracted volumes for BIM. 31:45 31 minutes, 45 seconds So if you can just help us understand how much is maybe a medium long-term contract and how much is F. I mean the 31:52 31 minutes, 52 seconds perspective that we want to hear is uh whenever there is change in bromine prices 32:00 32 minutes whether we'll get that advantage or not because I think last year also it happened sometimes in the month of April 32:06 32 minutes, 6 seconds May broine prices went up but it was not reflected in our performance in the last couple of months now broine prices have 32:13 32 minutes, 13 seconds gone up beyond $5,000 so when we will be able to see the tangible benefit in the financials 32:22 32 minutes, 22 seconds So a broader perspective in terms of contracted spot will also you know so I think uh you know so I and I'm just 32:29 32 minutes, 29 seconds I assume you're there in the earlier part of the call as well when I answered part of this in some ways. Yes. 32:33 32 minutes, 33 seconds Uh I think we you know we we had we have around 6 and a half thousand tons of contracted backlog uh right but that's not backlog which is like only for one 32:42 32 minutes, 42 seconds quarter or two quarters. It's kind of spread over a period of time. Uh and we have a mix of both spot and contract 32:48 32 minutes, 48 seconds prices. So we have obviously uh the the balance of both long-term contracts and short-term contracts in the in the mix. 32:58 32 minutes, 58 seconds Um I think the challenge for us uh is about the production side of it. Uh obviously when the production side has been training we are have uh we have 33:07 33 minutes, 7 seconds don't have enough broine coming out to actually balance both those customer sets. Uh and we do have to make uh strategic calls given our customer 33:14 33 minutes, 14 seconds relationships. Um and that's probably the reason why you may not have seen some of this impact at least this year. 33:20 33 minutes, 20 seconds I can't talk about last year but at least this year's perspective. Uh and I I think as I mentioned we will probably see a trailing impact on some of these 33:27 33 minutes, 27 seconds contracts for a couple of quarters. Uh the exact impact of it will also be a function of how much we're able to get through into our system right uh in 33:34 33 minutes, 34 seconds terms of production. uh so at this stage I mean that's probably the best input I can give you is that I I do think we 33:42 33 minutes, 42 seconds will see that the contracts will have a impact over the next couple of quarters but they should probably the longerterm contract should probably represent 33:49 33 minutes, 49 seconds probably 50 to 60% of our volume and not more than that okay so so once these I mean just a clarification on this once 33:57 33 minutes, 57 seconds these long-term commitments are over what could be the optimal mix in terms of maybe a medium long-term contracts 34:05 34 minutes, 5 seconds and spot just to get an advantage of the spot market as and when it arises otherwise. Yeah, let me come if you can just hold let me 34:13 34 minutes, 13 seconds come back to you specifically on that. I don't have I'm going to kind of don't have a perfect answer on that right now. 34:19 34 minutes, 19 seconds Uh right, we still kind of reviewing uh some of this as well. Uh but but I will try and reach out we somebody from our 34:26 34 minutes, 26 seconds team will reach out to you separately outside this call. Sure. 34:31 34 minutes, 31 seconds Sure sir. Thank you. Thank you. So second question is in terms of next year given the constraints that we have on domain uh is there a fair chance of 34:40 34 minutes, 40 seconds reaching at least the 18,000 tons of production which includes both the element sale as well as for our captain. 34:49 34 minutes, 49 seconds So simple answer yes right perfect perfect that's helpful uh and one more question I just want to squeeze 34:57 34 minutes, 57 seconds in Orin we had indicated that uh I mean there have been delays in terms of the 35:03 35 minutes, 3 seconds revenues uh next year what is the you know reasonable number that we can put 35:10 35 minutes, 10 seconds 100 crores 150 crores based on the current understandings of uh where we are 35:17 35 minutes, 17 seconds see I think as as a matter of rule we don't give guidance and I think uh right so but what I would say I think uh is on 35:24 35 minutes, 24 seconds the side I was very specific uh we do expect we'll get to a 50 to 60% capacity utilization there uh on the 35:31 35 minutes, 31 seconds orange side idealist side I think each as I said we are still in the process of scaling up plants uh and operations so 35:38 35 minutes, 38 seconds at this stage I probably uh defer that defer answering that question uh but if you can pick the thread on it next quarter uh I'll probably be able to give 35:47 35 minutes, 47 seconds you a better insight on Fair. Uh, thanks a lot for all the answering all the questions and all the best sir. Thank you. 35:55 35 minutes, 55 seconds Thank you. The next question is from the line of Adita Ketan from Smith's Institutional Equities. Please go ahead. 36:04 36 minutes, 4 seconds Yeah, thank you sir for the opportunity. 36:06 36 minutes, 6 seconds Just a couple of questions. So on the brooming side today so climate change is quite visible as you mentioned like uh 36:13 36 minutes, 13 seconds there was some bad weather impact and it seems s nowadays like even a smaller wind comes it takes away our volumes so 36:20 36 minutes, 20 seconds s just putting things in in perspective how many months or days of lost volumes we can build and uh what is the 36:28 36 minutes, 28 seconds sustainability of the numbers which you have given of 25 KT uh how should one put faith in the numbers like uh this bad weather impact wouldn't be there in 36:37 36 minutes, 37 seconds the coming fiscal also one to two one to two years and how could this play out like in the longer run? 36:44 36 minutes, 44 seconds No, I I think uh the the weather so so the weather impact is is is is two things. Obviously, you know, in some 36:51 36 minutes, 51 seconds extreme cases it can result in a total shutdown of operations. Uh but the larger set of issues we've had is more 36:58 36 minutes, 58 seconds more about adapting our systems uh right to it. uh when these changes happen uh they obviously change uh you know the 37:06 37 minutes, 6 seconds the the flow of each stock and the chemical capabilities of the system uh I'm reasonably confident that I think we 37:14 37 minutes, 14 seconds should uh we are we have solves on most of this implemented now uh there's you know there is clearly a road map to get 37:22 37 minutes, 22 seconds to that 17 18,000 number uh as I mentioned to the earlier to the earlier uh to earlier that we are a simple 37:30 37 minutes, 30 seconds answer we will be north of 18,000 tons next Uh right. Uh now the goal is to get to a run rate of between 18 and 25,000 at 37:38 37 minutes, 38 seconds which stage we obviously have to do some expansion work. Uh right and and we're hoping that the derivatives growing business will also start scaling up 37:45 37 minutes, 45 seconds meaningfully at that stage. Uh so we can actually make that step up beyond 25,000 right. uh but uh I don't think this is 37:54 37 minutes, 54 seconds uh this is a this is an this is a flash in the pan thing you know that when it happens you know we just end up having 38:02 38 minutes, 2 seconds uh going sideways uh there is uh there are technical things which one has to do to solve the problem and that's what we 38:09 38 minutes, 9 seconds have taken care of now uh and you should start seeing that coming coming through in our in our results as well 38:16 38 minutes, 16 seconds onto the broine degenerative side uh we have clearly witnessed like the business is not been able to ramp up quite steep. 38:23 38 minutes, 23 seconds Just like I want to know uh like you mentioned earlier also like there is the uh demand is not that great today. So uh 38:32 38 minutes, 32 seconds is that also related to the higher broine prices because of because the feature stock prices are higher consequently the CBF and PTA synthesis 38:39 38 minutes, 39 seconds prices are also higher which is where you might not been able to pass on or the demand itself like in the global world that is muted today. No. So, let 38:48 38 minutes, 48 seconds me let me just state this overall just as several of you might be interested. I think I think medium to long-term demand on the derivative side is pretty good, 38:57 38 minutes, 57 seconds right? Short-term demand across categories is also fairly stable and improving. Our challenge has been uh in 39:04 39 minutes, 4 seconds scaling up the business has been in some of the specific products we make and diving penetration with our with the 39:11 39 minutes, 11 seconds with the end user accounts, right? uh so that there is quite obviously there is a supply side pressure which we have to 39:19 39 minutes, 19 seconds either optimize for our own cost of operations or you know in different customer contracts pass it through our to our clients as well right uh so this 39:27 39 minutes, 27 seconds is not a this is not an enduring this is not that kind of a challenge what we have to and and the steps we have taken obviously is uh to kind of refocus a lot 39:36 39 minutes, 36 seconds on getting the right product portfolio out uh and and increasing the speed at which we're getting products out right so that's the big pivot we have to 39:44 39 minutes, 44 seconds accelerate in the business. Uh I think if we get the get the product expansion out and accelerate the customer uh ac 39:52 39 minutes, 52 seconds acceptance cycle we should be able to uh get there. So obviously we are I think probably 12 to 18 months behind I don't 39:59 39 minutes, 59 seconds have exact number because I'm I'm still trying to figure out some things but uh but I would say that whatever duration we are behind a lot of this has just 40:07 40 minutes, 7 seconds been you know how quickly we execute here um and that's what I kind of commented earlier on that you know to the person who asked me do we have a 40:14 40 minutes, 14 seconds bandwidth issue I think this is one area where we could have executed a little bit better but we have put the fixes in now we're putting some more fixes so we 40:22 40 minutes, 22 seconds should be able to get this back on stream and have 27. Um, I won't say that's going to happen in Q1 of F27, but from an underate perspective through the 40:30 40 minutes, 30 seconds year, we should be able to get to that uh 60%ish kind of capacity utilization. 40:36 40 minutes, 36 seconds Got it. Sir, just one last question. Uh so considering the recent geopolitical tensions between Israel and Iran uh is 40:44 40 minutes, 44 seconds there any sort of uh is there any uh so while talking to customers are they hinting about uh so diversifying from 40:53 40 minutes, 53 seconds Israel to India volumes because uh Israel chemicals like which is the biggest player in Israel is there any sort of like if these things turn out 41:02 41 minutes, 2 seconds there could be some short-term supply chain issues supply issues and customers are looking more towards India towards 41:09 41 minutes, 9 seconds other players is there any sort of like things you're talking in and secondly sir uh if you can also highlight the global supply is there any new player 41:17 41 minutes, 17 seconds which is entering or existing players looking to expand the supply in China and in other countries that would be helpful yeah I think some supply will come up uh 41:26 41 minutes, 26 seconds you know globally probably next next year or so uh with you know expansions probably in Australia uh right uh 41:33 41 minutes, 33 seconds somewhere towards 27 or so uh right uh but Again it's these are organic changes 41:40 41 minutes, 40 seconds which do continue to happen. Uh from an demand perspective I think our focus markets have actually been around Asia, 41:47 41 minutes, 47 seconds South Asia and East Asia and uh we've not heard any significant repivot. 41:52 41 minutes, 52 seconds Demand still is is sta stable and growing. Uh right and therefore I don't think uh anything to be concerned about 41:59 41 minutes, 59 seconds in that sense. uh no immediate upside as well because of uh the way global supply chains work uh but in our kind of 42:06 42 minutes, 6 seconds focused markets uh we don't see it being dramatically changing we've heard from our customers at least 42:15 42 minutes, 15 seconds got it thank you thank you the next question is from the line of Duv Muchell from HDFC AMC please 42:24 42 minutes, 24 seconds go ahead uh yeah sir thank you so much uh sir uh one of the uh challenges in the bromine production I believe as you have 42:32 42 minutes, 32 seconds mentioned in some of the previous calls was also as you're focusing uh some bit on the uh in the SOP so as you're confident of the recovery in broine from 42:41 42 minutes, 41 seconds next year also can you highlight how the uh SOP trajectory could be I understand it's still on the plant trial stage 42:48 42 minutes, 48 seconds probably starting soon but u some early trends uh uh if you can uh you know share something on there 42:55 42 minutes, 55 seconds I I think our pilot trials uh these are fairly independent programs as you know obviously the you know and uh the pilot trials have been successful. uh the the 43:04 43 minutes, 4 seconds chemistry works. Uh we have been able to ensure that we are getting good yields out. Uh and uh from a quality 43:10 43 minutes, 10 seconds perspective we are good. Uh we have the plant scale trials somewhere in this quarter or early next quarter. Uh you 43:18 43 minutes, 18 seconds know that we kind of got the plant ready. That's one of the reasons why probably volume has been lower in Q3 because we've been getting uh plant 43:25 43 minutes, 25 seconds ready. uh but uh you know uh we should uh we should I think it's hard for me right now uh to give a specific number if that's what you're looking for. Okay. 43:36 43 minutes, 36 seconds Uh I think once we finish the plan trials probably in April or May we will be in a better sense to see what kind of ramp up will be required. Uh you know we 43:44 43 minutes, 44 seconds also have to because we'll have to understand what kind of modifications we have to do at a plant level. uh and uh we have an preliminary sense obviously 43:52 43 minutes, 52 seconds of what has to be done but we'll be able to confirm that only after we do the plan trials uh and that's when we'll be able to give a far clearer view on what 44:00 44 minutes the the project the projected kind of throughput will be. Uh you already know the capacity number so that's been out 44:08 44 minutes, 8 seconds there in the public world for a long time. Uh so so that's you know so the goalpost is known to everyone uh right we just have to come back with a more 44:16 44 minutes, 16 seconds specific ramp up plan which we'll share with you as the plan trials get completed. 44:21 44 minutes, 21 seconds Sure. Thank you. And so the second but I do want to highlight but I just want to highlight obviously it you know we look at an F27 perspective there will 44:29 44 minutes, 29 seconds be plant modification modifications etc to be done. Uh once the plant tiles are successful uh we'll have to make some 44:36 44 minutes, 36 seconds modifications in the plant. So uh hard right now to say even know what the F27 impact will be. Couple of you have asked that question. So I just want to kind of rec clarify that. 44:46 44 minutes, 46 seconds So uh but just to confirm uh probably clarify uh these plan trials would not have any implication on the broine production because now that can happen. 44:54 44 minutes, 54 seconds No no no nothing independent independent value chains. there's a lot of shared infrastructure in you know on utilities and so on uh in the business right and 45:03 45 minutes, 3 seconds on the on the feed stock side but operationally they are very different. 45:07 45 minutes, 7 seconds All right. And so the second question was on the flame retardant project. Now I think um if I could have missed but 45:14 45 minutes, 14 seconds the project I earlier you had mentioned about 12 to 18 months for the project. 45:18 45 minutes, 18 seconds Uh I think uh in the commentary you mentioned earlier that uh the project uh you're reooking at the project now. Uh 45:25 45 minutes, 25 seconds this was to be a downstream project which could could have taken some of the virgin broine. Uh does it have any implication in terms of how you ramp up 45:33 45 minutes, 33 seconds your um so assuming this project is on hold for now does it have any implications on how you ramp up your elemental broine now? No, I think what I 45:43 45 minutes, 43 seconds mentioned was that we are we are evaluating the project feasibility and not the viability, right? Uh so we are 45:51 45 minutes, 51 seconds going to continue to work on frame retardant. It's only that we are working through the project details. Uh and working on that it has no direct impact 45:58 45 minutes, 58 seconds on our ramp up plan. So the 60 to 70% growth the utilization I had talked about uh right that has got uh that is 46:06 46 minutes, 6 seconds something which we hope to achieve uh in either case. 46:10 46 minutes, 10 seconds No. So uh so uh the near-term happens for the for example FI27 happens FI28 also happens because of your other uh downstream rosines but assuming this 46:19 46 minutes, 19 seconds project I'm not still not very clear is this project on hold on not on hold no it's not on hold it's not on hold it's just it's just that we are working on it in a fair amount of detail trying 46:28 46 minutes, 28 seconds to ensure that we we launch the product properly uh and we have that we have a clear ramp up plan which we deliver on 46:37 46 minutes, 37 seconds right so so that's so [clears throat] as I said So we and that's kind of what we are working on in a very detailed uh project plan like I talked about what we 46:45 46 minutes, 45 seconds did in Sysm 6M at a high level uh we talked about 6M in more detail but very similar approach here as well we're trying to do the project planning in a 46:54 46 minutes, 54 seconds lot more detailed way ensure that we are failing execution looking at uh you know margins returns product mix etc a lot 47:02 47 minutes, 2 seconds more carefully and that's why that the execution is taking longer period of time but it's not it's not it's very much on it's not on the back burner it's 47:10 47 minutes, 10 seconds not off the border it's very much on the border. 47:13 47 minutes, 13 seconds Okay. So because uh if I just I was just looking at 2Q uh conference uh details you had earlier mentioned it can come 47:20 47 minutes, 20 seconds online in 12 to 18 months. So assuming by end of in 2Q so end of FI27ish somewhere uh does that timeline still remains or 47:29 47 minutes, 29 seconds still still remains still okay got it okay so basically you're just reconfiguring the product and yeah that okay 47:36 47 minutes, 36 seconds that was the update I gave since we working through the the project details uh and that's all it is and let me give you an update because you know because we mentioned in Q2 47:45 47 minutes, 45 seconds that's why we gave an update this quarter. 47:46 47 minutes, 46 seconds Got it. Perfect. Great. Thank you so much and all the best. Thank you. 47:50 47 minutes, 50 seconds Thank you. The next question is from the line of Rushab from RBSA Investment Managers LLP. Please go ahead. 47:59 47 minutes, 59 seconds Hi sir, thank you for the opportunity. 48:01 48 minutes, 1 second Just to you know get a more sense on the weather impact that we have over the years. So you mentioned that we've done some fixes you know currently I just 48:09 48 minutes, 9 seconds want to understand next time the bad weather does the impact remain as same as earlier or no we better off now. Bad weather is a very broad statement but as 48:17 48 minutes, 17 seconds I said I think uh you know what does bad weather to do to us? I I'm just going to repeat what I said earlier. Uh bad weather can either have impact on on 48:24 48 minutes, 24 seconds just operating environment or it can just have an impact on our on the brine fields and you know overflooding etc can 48:32 48 minutes, 32 seconds change that uh I think we'll be technically we'll be uh in a strong position to manage those kind of 48:38 48 minutes, 38 seconds challenges going forward. uh right uh I mean if you have a cyclone or something which requires you to kind of temporarily take safety measures on 48:45 48 minutes, 45 seconds operations that's something which you know I don't think anything which any fix we could have done is going to protect against that but on the feed 48:53 48 minutes, 53 seconds stock the brine fields etc and what what you know higher levels of rain or floods etc due to that uh those are things 49:01 49 minutes, 1 second which I think we've put in the fixes to try and get strong process control and uh be able to man manage that that range 49:09 49 minutes, 9 seconds of width Okay, some more done. Sorry, go ahead. 49:16 49 minutes, 16 seconds Yeah, given that we have so much on our plate right now and uh just want to understand on the you know senior management and the mid senior management 49:23 49 minutes, 23 seconds bandwidth so are we done with hiring what is the progress on that so that next time you know as industry wins appear you know we don't falter again I 49:30 49 minutes, 30 seconds just want to understand on that sense is the team up and running I think organization and you know let me give you a perspective of someone who is 49:38 49 minutes, 38 seconds fairly new to the job right so I obviously have a very short sense on this I think organizationally we are well set up uh Right. And and I'm not 49:46 49 minutes, 46 seconds I'm not worried about it as well. We we have to add some capacity as the business grows. But I would say that from a capability perspective uh there 49:53 49 minutes, 53 seconds are many pockets in the company where the capability is very deep. Uh even some of the changes we made to the the bromine operations as I said we've done 50:00 50 minutes it without uh long without any shutdowns. Uh and we've done it within you know 6 to 8 weeks uh in some of the changes we made. So those are a 50:09 50 minutes, 9 seconds reflection of the depth we have technically and on the execution side. 50:13 50 minutes, 13 seconds uh so I'm not I wouldn't be worried about uh that in that sense I think we we've got plans around it and we are executing 50:21 50 minutes, 21 seconds and just the last question to Mr. Ranjit post the designation change you know where you will devote your time more now if you just share your thought process 50:28 50 minutes, 28 seconds now and uh so [clears throat] I think uh I'm happy uh that you know uh the management depth 50:37 50 minutes, 37 seconds is increasing I think uh that's one of our tasks as promoters to ensure that you know there are people who are right and fit for the job to be able to take 50:46 50 minutes, 46 seconds it up and then move the company at the speed and execution level that we want so I think that's the first change that 50:52 50 minutes, 52 seconds we have consciously made. Uh with uh your specific question regarding my own role, I think it'll remain strategic. Uh 51:00 51 minutes I think that's where possibly most of my time will go. We do have the new initiatives going on. So while I work with Ram on the existing business and 51:08 51 minutes, 8 seconds making sure that you know uh I'm an enabler for him uh and uh guiding you know and helping him uh make these things happen in the existing base 51:17 51 minutes, 17 seconds businesses. I think my focus will also uh possibly more shift towards the strategic initiatives and making you know the semiconductor business u happen 51:26 51 minutes, 26 seconds on the ground uh team building there and you know uh working on uh that part of the business uh as well. 51:34 51 minutes, 34 seconds Uh that sounds great sir. Thank you sir. Wish you all the best. Thank you. 51:39 51 minutes, 39 seconds Thank you. The next question is from the line of Vikin Sha from the Boring AMC. Please go ahead. 51:47 51 minutes, 47 seconds Hi, thank you for taking my question. Uh I just wanted to ask on the orn side. Uh 51:54 51 minutes, 54 seconds so in Q4 FI25 we have guided for 150 160 crores of revenue in FI26. In Q2 FI26 we 52:03 52 minutes, 3 seconds have you know guided that nothing will meaningfully come this year and we shifted the guidance to FI27. So we had 52:10 52 minutes, 10 seconds acquired this asset to NCL. It was well known you know to have complexities. So why was the initial diligence so far off 52:17 52 minutes, 17 seconds regarding regulatory timelines and other challenges and now that you're guiding uh numbers to come in FI27 what is 52:25 52 minutes, 25 seconds giving you reasonable confidence that this will happen? I think the first one is you from a diligence perspective we 52:32 52 minutes, 32 seconds did a diligence in the operating assets the products which we can make from there and obviously you know what would be a reasonable operational time to get 52:39 52 minutes, 39 seconds the assets back uh and as always coming out of NCT process there are several other issues we have to deal with as 52:46 52 minutes, 46 seconds well there many other ecosystem factors which are dealt with the local local environment issues the local communities 52:53 52 minutes, 53 seconds and we have to engage with uh you know labor groups which we have to engage with uh and and so that is something which so our ability in any in any 53:01 53 minutes, 1 second scenario to predict the last part of it perfectly is a is a challenge right uh so uh I think the first two parts which 53:10 53 minutes, 10 seconds is getting the plant readiness back understanding go to market and products I think those we have been fairly uh 53:18 53 minutes, 18 seconds fairly in good shape even in terms of what we projected uh you know the plants were shut down for nearly six years uh 53:25 53 minutes, 25 seconds and we have we forecast to aggressively and be able to get plants back in a year. Uh we've got three plants up in 12 months, right? In fact, even lesser if 53:34 53 minutes, 34 seconds you actually see the actual operating days we had. Uh but we've had obviously challenges which you had to deal with. 53:40 53 minutes, 40 seconds Uh right and they do and therefore it's been on off onoff uh situation. Um now that the plants are so that's been the 53:48 53 minutes, 48 seconds real issue right what we could predict the things which you can control which can influence which are not which outside our control. uh and that's been 53:56 53 minutes, 56 seconds uh the factors which has been here. Uh nobody wants us you know we we obviously want to we bought the asset we want to ramp it up quickly. We put in resources 54:05 54 minutes, 5 seconds to kind of scale that up. Uh so we want to always work on it in the hardest way possible. Uh what gives us confidence now is obviously our plants are up. Uh 54:13 54 minutes, 13 seconds three of the plants are up. Uh we are operationally there. Uh you know we are getting uh the the customer trials are 54:20 54 minutes, 20 seconds going on in different products. uh so we are in a process of ramping it up uh and and I think just the fact that we have operational stability now is what gives 54:29 54 minutes, 29 seconds me the most confidence right that we will start you know seeing scale up I don't I I think uh I at this stage I'm not going to give you a number saying 54:38 54 minutes, 38 seconds 150 160 crores etc uh but I think you will start seeing meaningful progress in terms of uh getting this up and going uh 54:46 54 minutes, 46 seconds but that's been the real challenge uh which has been there okay Got it. But even in SOP we have seen 54:55 54 minutes, 55 seconds similar patterns that in Q1 FI26 we have stated meaningful contribution but in the previous in the last quarter Q2 we 55:02 55 minutes, 2 seconds have stated that trials will only happen after Q4 and production will start post monsoon next year in FI27. So we are seeing persistent delays in other 55:11 55 minutes, 11 seconds segments. So you know are there some issues fundamentally you have obviously clarified on bandwidth issues that you are saying that they don't exist but 55:20 55 minutes, 20 seconds just trying to understand why these delays are happening uh you know in all these segments. 55:27 55 minutes, 27 seconds Uh well I think our I mean it's a fair point in one way obviously from outside in view several of our programs have got delayed I'm going to take that on you 55:36 55 minutes, 36 seconds take that on as a matter of fact because they are a matter of facts uh I think clearly uh you know our ability to what 55:44 55 minutes, 44 seconds I think is uh the one thing which we can do a lot better on is our ability to see the interplay between external and internal factors and organize ourselves 55:52 55 minutes, 52 seconds better to respond to them. uh right and that's the piece which we are investing a lot more on doing right now. So if you look at uh the SOP issue I think there 56:01 56 minutes, 1 second have been technical delays we are working with the technology partner there pilot trials do take time uh I won't say it's hit and miss but there are multiple scenarios which they test 56:10 56 minutes, 10 seconds on uh and uh you know we have to do it's a bit iterative because you get results from every trial and try to rework it. 56:17 56 minutes, 17 seconds Uh we went we went into F2526 thinking that uh you know we were in a good shape there. uh but obviously uh as we did the 56:26 56 minutes, 26 seconds trials uh we gave you an update uh you know uh that you will actually require more time on it. Uh I think I think I 56:34 56 minutes, 34 seconds think idealist or or is a very unique case because of the NCL issue right I mean these two in my mind are two big things which uh you know as you called 56:42 56 minutes, 42 seconds out are probably have been more longerterm shifts uh but one is very technical and the other one I think is a bit of an ecosystem issue. Can we do a 56:49 56 minutes, 49 seconds better job of synchronizing between external and internal factors? I think definitely. Uh and that's uh that's our 56:57 56 minutes, 57 seconds job as a management team to execute better and hopefully you will see that going forward. 57:02 57 minutes, 2 seconds All right. And lastly, just building upon what uh Mr. Sha, sorry to interrupt you. Can you please rejoin the queue for more questions? 57:12 57 minutes, 12 seconds All right. Sure. 57:14 57 minutes, 14 seconds Thank you. The the next question is from the line of Rohit Sha from Sunnidi Securities. Please go ahead. 57:22 57 minutes, 22 seconds Yeah. Uh thanks for taking my question. 57:24 57 minutes, 24 seconds Uh most of my questions are already answered. Uh just one thing on the uh the order backlog which we are trading 57:32 57 minutes, 32 seconds around 6,500 for derivatives. I uh yeah on not derivatives. 57:41 57 minutes, 41 seconds Okay. uh so so that uh 6,500 is uh pertaining to I mean which geography or 57:47 57 minutes, 47 seconds industry if you can uh indicate it's I think it's across the board there's no specific factor of 57:55 57 minutes, 55 seconds materiality in that it's across the board and the only thing I would say that it's not 6 and a half thousand tons which is all due our contracts are 58:02 58 minutes, 2 seconds stamped for different delivery dates so you know it's not necessary that all six and a half thousand are actually you know all to be dispatched today uh they 58:10 58 minutes, 10 seconds are to be dispatched crash over a longer period of time. Uh right and and that's why we have a balance between short-term contracts and long-term contracts in the 58:18 58 minutes, 18 seconds portfolio. Uh and as the volume starts getting ramped up, you will start getting seeing that getting kind of burned out. Uh right or is getting 58:26 58 minutes, 26 seconds repriced. Uh but there's no specific uh trend line which has shifted in that largely we remain uh a lot heavily 58:34 58 minutes, 34 seconds focused on the Asian markets for the for the for the larger part. Uh and our segments still remain pretty much the same. model shift. 58:43 58 minutes, 43 seconds Okay. Okay. Uh so in industry specific if you can uh indicate 58:52 58 minutes, 52 seconds sorry for which industry these uh products are on already we have been nicked for the region wise as Asia Pacific mainly we 59:01 59 minutes, 1 second will be having this but on the industry side whom whom we are going to uh supply 59:09 59 minutes, 9 seconds these volumes yeah we pro why don't If you can just send an email to SGA probably I'm not 59:16 59 minutes, 16 seconds able to understand the question very well but if you can just send a quick query to our investor relations team we will give you a more detailed response on it. I'm happy to 59:24 59 minutes, 24 seconds I will share whatever is not very sensitive but please let us know. Okay. 59:29 59 minutes, 29 seconds Okay. And one uh just uh just for uh information sake uh for this semiconductor 59:36 59 minutes, 36 seconds uh if you can just uh indicate the timeline from where uh this financial agreement will be completed and post how 59:45 59 minutes, 45 seconds things will be progressing and by when we should uh uh start uh uh seeing the uh final output from the uh plants. 59:56 59 minutes, 56 seconds So I I think as you mentioned earlier one is on the ground I think we've we we've broken ground we're going through topographical evaluations land soil 1:00:04 1 hour, 4 seconds evaluations and so on. So that is one program, one item which is going on. I think uh the uh the the uh the funding 1:00:14 1 hour, 14 seconds framework has to be finalized. That's something which we are having discussions the Indian semicon mission on. That's an external dependency which we don't have a clear end date on. 1:00:22 1 hour, 22 seconds Right. Uh we in good shape there. We have got good progress happening there. 1:00:26 1 hour, 26 seconds Uh once that gets finalized I think we'll be in a position to give you more specific details on on on timing uh and impact. 1:00:36 1 hour, 36 seconds Okay. Okay. Fair. That is for my tent. Thank you. Thank you. 1:00:41 1 hour, 41 seconds Thank you ladies and gentlemen. In the interest of time, that was the last question. I would now like to hand the conference over to the management for the closing comments. 1:00:52 1 hour, 52 seconds All right. Uh thank you all for joining us uh in the call today. Uh we appreciate your time and continuing interest in the company. Um you know uh 1:01:00 1 hour, 1 minute in case of any queries you may you know please feel free to get in touch with SGR investor relations advisor uh and obviously I look forward to meeting you 1:01:09 1 hour, 1 minute, 9 seconds know all over the next call and uh some of you probably even before that. Thank you all for your know interest and participation. 1:01:16 1 hour, 1 minute, 16 seconds On behalf of Aran Chemical Industries Limited that concludes this conference. 1:01:21 1 hour, 1 minute, 21 seconds Thank you for joining us and you may now disconnect your lines. Thank you.