Balrampur Chini Mills Limited — Q3 FY26

Balrampur Chini Mills Ltd Q3 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=IXFOQV1cv3s Published: 3 months ago

0:00 Ladies and gentlemen, good day and welcome to Balram Puchini Mills Limited's earnings conference 0:07 7 seconds call. As a reminder, all participant lines will be in the listenonly mode and there will be an opportunity for you to ask questions after the presentation 0:16 16 seconds concludes. Should you need assistance during the call, please signal an operator by pressing star then zero on your Touchstone phone. Please note that 0:25 25 seconds this conference is being recorded. I now hand the conference over to Miss Jenny Rose from CDR India. Thank you and over to you ma'am. 0:35 35 seconds Good afternoon everyone and thank you for joining us on Bal Rampur Cheni Mills Q3 and 9M FYI26 results conference call. 0:43 43 seconds We have with us today Mr. Vive Saragi chair chairman and managing director of Balraur Chini Mills, Miss Avantika Saragi, executive director and Mr. 0:53 53 seconds Proomote Pwari, chief financial officer of the company. We would like to begin the call with brief opening remarks from the management following which we will 1:02 1 minute, 2 seconds have the forum open for the question and answer session. Before we start, I would like to point out that some statements made in today's call may be 1:10 1 minute, 10 seconds forward-looking in nature and a disclaimer to this effect has been included in the results presentation shared with you earlier. I would now 1:17 1 minute, 17 seconds like to invite Mr. Saragi to make his opening remarks. Over to you Mr. Saragi. 1:24 1 minute, 24 seconds Thank you and good afternoon everyone and thank you for joining us on our Q3 9 1:31 1 minute, 31 seconds month FY26 earnings call. I trust all of you have had the opportunity to go through the detailed presentation put 1:38 1 minute, 38 seconds out by the team which gives our operational financial performance. I will initiate the call with an update on 1:45 1 minute, 45 seconds the current developments in the sugar sector followed by a company's key highlights for the period under review. 1:53 1 minute, 53 seconds India's next sugar production. So I I will just put this very simply. uh our estimate is that's Balraur Chinim's 2:02 2 minutes, 2 seconds internal personal estimate the company's estimate is 325 lakh tons diversion 35 lakh tons net 2:11 2 minutes, 11 seconds production of 290 lakh tons four lakhs has been contracted for exports leaving 2:17 2 minutes, 17 seconds a net balance of 286 consumption is estimated some people say 288 some say 2:25 2 minutes, 25 seconds 290 so net net If we do not go down to nitty-g gritties and of one or two lakh 2:31 2 minutes, 31 seconds tons, the assumption is that there will be no addition to inventory. There will be a minor depletion to inventory. 2:40 2 minutes, 40 seconds The opening inventory is at bone thin levels which is at 5 million tons 2:46 2 minutes, 46 seconds and this in effect will lead to a very uh strong demand situation with no 2:55 2 minutes, 55 seconds inventory overhang. So therefore the pricing seems to be uh moving up there. Therefore it's 3:03 3 minutes, 3 seconds bullish for the prices and the prices in the month of February for up mills for our factory is between 41 and 41 and a 3:10 3 minutes, 10 seconds half hour which we feel can inch upwards as the season progresses a as the year progresses. 3:20 3 minutes, 20 seconds On the policy front, cane prices have been increased by several key producing states adding to cost pressures for the 3:27 3 minutes, 27 seconds mill. In UP, we have had a 30 rupee increase in can price. In this scenario, a revision in MSP aligned with cost uh 3:37 3 minutes, 37 seconds current cost structures becomes critical for timely payment to farmers and to maintain market stability without any 3:45 3 minutes, 45 seconds fiscal burden on the government. So again I'll give a little perspective to this. Uh MSP might not be relevant at 3:52 3 minutes, 52 seconds this point of time with the current prices from at of UP. However, this is a uh bottoming kind of a signal from the 4:02 4 minutes, 2 seconds government which will be a sort of which comes in hand when you begin the season in December etc. And it is a signal which is much needed and much overdue. 4:12 4 minutes, 12 seconds However, if let's say MSP came today, it would not change the pricing trajectory. 4:19 4 minutes, 19 seconds Now, the real concern is about the ethanol pricing. I'll come to later. So, one concern about the potential ethanol 4:26 4 minutes, 26 seconds imports from US and Maze etc. have been eased following the recent trade agreement. However, uncertainty 4:34 4 minutes, 34 seconds continues around long-term revision of domestic ethnol price despite an increase of 16.4% 4% in the FRP and 4:42 4 minutes, 42 seconds operating costs ethanol prices under B heavy and juice route have not been revised from this is the third year third year 4:51 4 minutes, 51 seconds now this is extremely disappointing and we we are extremely surprised since 4:59 4 minutes, 59 seconds this revision which was sought would have marginally or absolutely submarinally impacted either the OMC's 5:08 5 minutes, 8 seconds or if they decided to pass on to the you know consumer it would be in the t you know 10 to 20 pesa per liter 5:16 5 minutes, 16 seconds on a price of what's the petrol price 100 yeah so it around if the pump price for 5:25 5 minutes, 25 seconds the consumer is 100 rupees this was 10 20% impact so this kind of amazes us as 5:32 5 minutes, 32 seconds to why this has not been done for the third year postrp revision of 16.4% 4%. 5:40 5 minutes, 40 seconds Without this in future millers will have to rethink about large scale diversion and the E20 5:49 5 minutes, 49 seconds program I'm not sure but it needs more attention. It it began with a lot of 5:55 5 minutes, 55 seconds commitment. That commitment has been sort of reaged upon by the government midway. 6:02 6 minutes, 2 seconds Against this backdrop the company delivered a healthy operational and financial performance. Sugar segment performed well supported by improved 6:10 6 minutes, 10 seconds realization. Distillery segment delivered stable performance on back of higher volumes. However, margins remained under 6:17 6 minutes, 17 seconds pressure in the absence of ethnol price division. 6:21 6 minutes, 21 seconds Sugar cane crushing for the company under for the period under review increased by 8.4% to 387.6 6 lakh 6:31 6 minutes, 31 seconds winters supported by early commencement of operation and improved capacity utilization. Despite a decline in 6:39 6 minutes, 39 seconds overall sugar cane acreage, company expects higher crushing levels for itself during the season under review 6:47 6 minutes, 47 seconds aided by additional area allotted by the government and better yield owing to our working with the farmers close. 6:55 6 minutes, 55 seconds Our PLA project continues as planned. 6:59 6 minutes, 59 seconds Construction activities are in full swing with more than 3,000 workers being deployed at site. Approximately 90% of 7:07 7 minutes, 7 seconds the uh imported equipment has arrived and the balance is on schedule and in transit. Market developments efforts 7:16 7 minutes, 16 seconds have commenced through trading of imported PLA. As of 31st January, cumulative project expenditure stands at 7:25 7 minutes, 25 seconds 1421 crores funded through a combination of 790 crores via debt and balance 7:32 7 minutes, 32 seconds through internal acres. We remain committed to sustainable value creation by optimizing operations, maximizing 7:40 7 minutes, 40 seconds value extraction from each unit of sugar cane. Our diver diversified product portfolio including PLS initiative is 7:49 7 minutes, 49 seconds closely aligned with emerging global sustainability trends and strengthens the long-term resilience of our business. 7:58 7 minutes, 58 seconds So we continue to focus on debottlenecking, enhancing efficiency, strengthening stakeholder relationship 8:04 8 minutes, 4 seconds and we continue to be very careful and prudently look forward to deploying our capital. 8:12 8 minutes, 12 seconds This brings me to the end of our discussion. I'll now hand over the floor to Aantika for giving you an update on 8:21 8 minutes, 21 seconds the on K and PLA. Thereafter, promote can take you through the financials. Thereafter, we'll do the Q&A session. 8:30 8 minutes, 30 seconds Uh good afternoon everyone. Thank you for having me. So just a very quick update on both uh first Kane and then 8:37 8 minutes, 37 seconds VA. So I just want to highlight that uh we are uh I mean as already highlighted 8:43 8 minutes, 43 seconds within uh the opening remarks but we have a we expect a five to six% increase in the crushing uh this year visa v last 8:51 8 minutes, 51 seconds year and uh I also want to share some um encouraging news for the upcoming year we expect a increase in area of about 5 8:58 8 minutes, 58 seconds to 7% uh in the upcoming season as well uh not only since uh can prices have been increased but we have also been 9:07 9 minutes, 7 seconds allotted some new geographies. Um, other than this, our development activities in KE, I want to highlight one in particular. So, in our insect pest 9:15 9 minutes, 15 seconds disease management program, we have now focused since the last two years very very heavily on mechanical control uh by 9:22 9 minutes, 22 seconds allocating labor budgets rather than uh chemical budgets. uh since you know actively since the last three years we have uh ramped this up and this has 9:31 9 minutes, 31 seconds encouraged uh this has not only uh in increased the fertility of the soil but increased the uh actual sort of 9:39 9 minutes, 39 seconds resilience of the crop against uh these kind of insect pest diseases whether it's top borer or whether it is red rot uh we have relied less and less on 9:48 9 minutes, 48 seconds chemicals and more and more on mechanical and biocontrols uh reducing the in carbon footprint of sugarcane cultivation 9:56 9 minutes, 56 seconds Uh secondly, now I would like to move on to PLA. Uh I want to highlight another figure which might not be so visible uh 10:04 10 minutes, 4 seconds to uh investors that uh the trade of PLA since the time that we have announced the project has nearly doubled uh if we 10:12 10 minutes, 12 seconds are to take the annual uh import of PLA and its products. So it used to stand between four to 5,000 tons before we 10:20 10 minutes, 20 seconds announced the project as neat PLA and we expect that at least a four to fivefold at a conservative level uh in compounds 10:28 10 minutes, 28 seconds and finished goods was coming in uh but now uh we see it at around 10,000 runs annually in the year of 2025 and uh 10:37 10 minutes, 37 seconds again we see a consequent four to five uh fold in compounds of PLA coming in. 10:43 10 minutes, 43 seconds So uh while our trade and our sale figure might not exactly reflect uh the exact PLA market in India, I just wanted 10:52 10 minutes, 52 seconds to highlight this uh to show that we have been working relentlessly and with a lot of uh compounders and converters 10:59 10 minutes, 59 seconds and achieving not only uh sort of goodwill but real technical success which has never been seen before in 11:06 11 minutes, 6 seconds India. uh as highlighted last time we had worked on uh over 50 projects out of which 20 have been closed successfully 11:13 11 minutes, 13 seconds and 30 are ongoing and we see success in them all. So the technical success is actually what I would like to highlight in uh the downstream technology. So that's it uh from me. 11:28 11 minutes, 28 seconds Thank you. Good afternoon everyone. I would not like to repeat the uh financial numbers which we had already shared in the detailed presentation. I 11:37 11 minutes, 37 seconds would now request the moderator to open the forum. Thank you. 11:41 11 minutes, 41 seconds Sure. Thank you very much. We will now begin the question and answer session. 11:45 11 minutes, 45 seconds Anyone who wishes to ask questions may press star and one on their touchstone telephone. If you wish to remove yourself from the question queue, you 11:52 11 minutes, 52 seconds may press star and two. Participants are requested to use handsets while asking questions. Ladies and gentlemen, we will wait for a moment while the question 12:01 12 minutes, 1 second queue assembles to ask questions. Please press star and one. 12:08 12 minutes, 8 seconds The first question is from Prashant Bani from Aara Capital. Please go ahead. 12:14 12 minutes, 14 seconds Yeah, thank you for the opportunity. Uh sir, uh regarding this ethnol pricing, um if we have to look the other way, you 12:22 12 minutes, 22 seconds know what is the incentive for the government to increase the ethanol price. Right now blending targets have been achieved and we have ample 12:29 12 minutes, 29 seconds capacities also. So till the time there is sugar glut or even standalone ethanol companies are on the verge of 12:37 12 minutes, 37 seconds bankruptcy. Government may not increase the price at all from here. Uh your view on it. 12:44 12 minutes, 44 seconds So uh we are talking as if you know government is running a business. 12:50 12 minutes, 50 seconds So government is supposed to be running a system which is for the well-being of the country and that's where this policy 12:58 12 minutes, 58 seconds began. So just because you get capacity up to what you need you don't stop increasing the price and the commitment 13:06 13 minutes, 6 seconds which was made which was followed up to 2223 which was if 5% was the rise in FRP 5% was the rise in ethanol price. So you 13:16 13 minutes, 16 seconds know if we talk like and if I may speak a little informally government is not a BA government is supposed to this is 13:23 13 minutes, 23 seconds climate friendly farmer friendly so owing to this exports were not needed export subsidies were not needed owing 13:31 13 minutes, 31 seconds to this farmers were paid on time you suddenly for you know don't backtrack midway 13:38 13 minutes, 38 seconds and and uh just on the price front uh they they would just increase prices based on the consequent increase of sugar cane prices they need not increase 13:47 13 minutes, 47 seconds quantity of ethanol in that uh so it actually has more relevance to sugar per se I agree with all that but uh I mean 13:56 13 minutes, 56 seconds because now government is acting like a bunna only so then then you're right so that's why they've 14:04 14 minutes, 4 seconds not yet increased it so these are not moves with uh any kind of long-term thinking suddenly something has gone up 14:12 14 minutes, 12 seconds and I government has been pragmatic for years And I and I'm very hopeful that they would again see pragmatism down the line. 14:21 14 minutes, 21 seconds Sure. U so on PLA uh while we would be supplying to converters but uh uh have 14:29 14 minutes, 29 seconds we got any formal or informal assurance from any of the potential client for offtake or you know either from railways or defense or temples where we are also 14:38 14 minutes, 38 seconds targeting them as a potential client for the end product. 14:44 14 minutes, 44 seconds So um I mean I'm not uh at liberty to tell you as of today but the fact that we have put the names in our investor 14:52 14 minutes, 52 seconds presentation and how sort of prudent our conduct has been it's indication enough. 14:57 14 minutes, 57 seconds Uh I think that you know these are just some institutions and then there are lots of private and everything. There's really very very encouraging uh market 15:07 15 minutes, 7 seconds coming for uh PLA. I highlighted it in the import figures for this very reason. 15:12 15 minutes, 12 seconds So if you see inside and I think this may be of interest to all investors and Aandika knows better. So the PMO 15:20 15 minutes, 20 seconds initiative and if you know those things play out I mean why not just in short gives the perspective 15:28 15 minutes, 28 seconds about the entire program of this good basala packaging. So uh there was a there was an article uh and a press 15:36 15 minutes, 36 seconds release from the government which included our name uh and our PLA and uh basically for the application of gutka 15:43 15 minutes, 43 seconds and pan masala packaging. Uh so this is one of the most visible litters causing 22% silting in uh drain systems in uh 15:52 15 minutes, 52 seconds urban India. So the PMO is really taking up this in a very fast track manner and we have been able to get technical 15:59 15 minutes, 59 seconds success which has only before this happened in China in terms of being able to convert the product with quality and on the existing legacy machines that 16:08 16 minutes, 8 seconds exist in the country. That was the only roadblock. We have already achieved technical success. we are we have done 16:16 16 minutes, 16 seconds prototypes and it has already gone for uh user and degradation testing and SOP and all of that is being done. So uh the 16:24 16 minutes, 24 seconds government is working really really fast and really really cohesive on that. So uh you know if we look at sache usage in 16:32 16 minutes, 32 seconds India you guys will probably be better at uh estimating the exact figures but it's something like in hundreds of thousand of tons and why I'm hopping on 16:40 16 minutes, 40 seconds the technical efficiency is that it's extremely difficult to get the oxygen and water vapor uh barrier right with 16:47 16 minutes, 47 seconds the you know with bioplastics and biodegradable materials which we've been able to do. Uh this is you know this is 16:54 16 minutes, 54 seconds a great thing and the cost is also decent. 16:58 16 minutes, 58 seconds So there there's a lot of promise there is a lot of interaction and it's not up in the air anymore. 17:07 17 minutes, 7 seconds Uh sure and while we are not uh really impacted by it but on the other side is the government also trying to uh 17:15 17 minutes, 15 seconds separately pick up the uh waste product uh or the packing material which is made out of PLA at the garbage picking front. 17:26 17 minutes, 26 seconds Uh do you mean race segregation? Uh right right. Wa segregation. 17:32 17 minutes, 32 seconds I mean the less we comment on way segregation in India the better. I don't know what to tell you more than this. Uh 17:39 17 minutes, 39 seconds it's not in it's not where it should be and if it does happen like that it's rather simple to separate uh PLA. There 17:46 17 minutes, 46 seconds are any number of uh technologies and even mechanical properties which can be taught to the rack pickers just as they do for other products. we can easily separate the area. 17:56 17 minutes, 56 seconds Uh sure that's it from my side. Thanks. 18:01 18 minutes, 1 second Thank you. The next question is from Vikram Suryawanchi from Philip Capital. Please go ahead. 18:09 18 minutes, 9 seconds Uh hi uh good afternoon sir. Hope I'm audible. Uh yes thank you. All good. 18:15 18 minutes, 15 seconds Okay. So first of all I want to acknowledge you for giving a more realistic production estimates in presentation compared to what we used to 18:23 18 minutes, 23 seconds get from different sources. uh uh for initial if you look at our initial estimate as a country and now 18:30 18 minutes, 30 seconds significant downward revision which was expected how coming from UPA and Maharashtra uh if you can give some 18:38 18 minutes, 38 seconds broad sense production we are looking at maximum of 18:47 18 minutes, 47 seconds 10 million at a growth level and Maharashtra Karnataka maybe 17 and a half to 18 million 18:57 18 minutes, 57 seconds 10 18 28 and rest of India 47 45 by 2 325 19:05 19 minutes, 5 seconds okay got that's the breakup and uh second uh you highlighted about increase can allocation by 5 to 7% so 19:14 19 minutes, 14 seconds does that uh additional land what you have got already has a significant amount of cane or there is a further scope to improve further cane development going forward there so we 19:22 19 minutes, 22 seconds can see apart from the area availability can also increase significantly. Yeah, good point. Good point. 19:29 19 minutes, 29 seconds Good question. Actually, uh I just want to clarify it's not 5 to 7% increase in allotment. It's 5 to 7% uh increase in 19:37 19 minutes, 37 seconds crushing. Five to 6% increase in crushing that we expect. This is not only through external areas but internal development and yields and everything. 19:44 19 minutes, 44 seconds Now moving to the second part of the question. Yes, definitely the new areas which we have got already have cane but they have a large opportunity to increase cane as well 19:53 19 minutes, 53 seconds and these are farmers who have not been paid properly. So they are very very happy and very very excited to actually see the color of money and work with us 20:01 20 minutes, 1 second and increase can area. We're very very hopeful increase area improve variety everything. 20:09 20 minutes, 9 seconds Got it. And in terms of a improvement uh uh we have seen uh improvement but probably we I was expecting significant 20:16 20 minutes, 16 seconds improvement further from here. So was that improvement mainly because of uh weather related and recovery from the disease or we do can expect some 20:26 20 minutes, 26 seconds structural uh yield improvement with varietal difference going forward also in terms of u recovery as well as yield if you can comment. 20:36 20 minutes, 36 seconds So uh I just want to highlight uh that we've been working very hard on variety uh since you know since red rod hit. So 20:43 20 minutes, 43 seconds while the red rod variety is reduced to low single digits uh we see an increase like uh 14201 is an established variety. 20:52 20 minutes, 52 seconds Now uh this year we already going to crush around 16% of it and we see a sign significant increase in the coming year. 21:01 21 minutes, 1 second uh similar to this we have two more varieties in the pipeline uh which have good potential for yield as well as recovery. So this is something that we 21:09 21 minutes, 9 seconds are working on plus we have a four to five year plan and four other pipeline varieties which will then come in. So this is a very strong program with the tissue culture and everything that we 21:17 21 minutes, 17 seconds have established. So we always try for structural change so that we do not need to rely as much on outside factors. 21:25 21 minutes, 25 seconds Got it. 21:27 21 minutes, 27 seconds And uh last question I think s also talked about on ethanol views and all that but just for uh clarity if you look 21:35 21 minutes, 35 seconds at uh situation remain and with sugar prices currently what we have uh can we go for uh maximize sugar and then uh use 21:44 21 minutes, 44 seconds the distillary capacity more for grain based ethanol as a structural change going forward or we still hope that 21:50 21 minutes, 50 seconds government will consider the division in ethanol prices so we can stick with the existing models. 21:58 21 minutes, 58 seconds So what we have done uh pursuant to the fact that government did not increase price, we have already diverted many of 22:05 22 minutes, 5 seconds our units to you know sea heavy grain is not possible in these units because grain is a separate line of machinery 22:13 22 minutes, 13 seconds which is only available in meapur. So we have taken those decisions internally to maximize sugar production. 22:22 22 minutes, 22 seconds Okay, got it. So I was just thinking to can we also go for um multif feed in other places also? 22:30 22 minutes, 30 seconds No no no that's not what we are planning. Okay got it. Thank you sir. 22:38 22 minutes, 38 seconds Thank you. 22:39 22 minutes, 39 seconds The next question is from Sanjay Manal from Dam Capital. Please go ahead. 22:46 22 minutes, 46 seconds Yeah I think uh my questions are pretty similar to what the previous parts participate uh has mentioned. Uh so it is about the recovery specifically. I 22:54 22 minutes, 54 seconds think initially we were thinking we were talking about 50 60 probably basis point recovery improvement in western UP and probably 20 to 30 basis point recovery 23:02 23 minutes, 2 seconds improvement in eastern UP. But uh I think it's fizzled out uh is it because of the ratoon crop or uh we may think we 23:10 23 minutes, 10 seconds may get better in plant or you think that recoveries will probably will be flattish kind of a for the season. 23:17 23 minutes, 17 seconds Good question Sanj. 23:19 23 minutes, 19 seconds uh you're right west I don't know even that's not as nearly as high as what you're saying lot of west is higher by 23:26 23 minutes, 26 seconds half and lot of west is lower than last year so west is also divided into parts having said that we began with an improvement of.3 23:35 23 minutes, 35 seconds kind of expectation for one and a half months we got no sunlight so beginning as of yesterday bright 23:43 23 minutes, 43 seconds sunshine is started again so maybe we have lost some time which we did not anticipate. So 2.3 may not be possible. 23:53 23 minutes, 53 seconds 1.15 may be possible. 23:57 23 minutes, 57 seconds Okay. Okay. Uh and second about the uh fungeability part only uh uh it seems 24:04 24 minutes, 4 seconds that uh you know maapur I think initially when we uh when we do the when we did the capex for meapur for 320 kpd 24:12 24 minutes, 12 seconds uh it was assumed that you know in a certain situation like today when the when the maze or the grain ethanol prices are higher probably we'll utilize 24:20 24 minutes, 20 seconds this ma facility uh for a higher uh grain uh ethanol but it seems that it will be less than 5 k only seems means 24:29 24 minutes, 29 seconds it seems to be that way only uh uh what's your view on that and why we have not been able to scale that up to 8 10 24:36 24 minutes, 36 seconds cr liters probably so Sanjay please understand we have a capacity of 5 and a half cr 5 cr liters 24:44 24 minutes, 44 seconds of maze for the balance amount of season after sugar season shuts down right balance period yeah let's let me get it 24:54 24 minutes, 54 seconds very clear government has accepted only 60% of tenders put out for me. Okay. 25:00 25 minutes And you cannot put out a tender than what you have than your capacity. So we tended for 5 cr we got 3.12 or something 25:09 25 minutes, 9 seconds 3.15 also divided between rice and the ratio to grain divide. 25:18 25 minutes, 18 seconds So government is not inherently very much in favor of that segment. So if you wanted to increase may you put in a 25:25 25 minutes, 25 seconds capex let's say for another distly of 10 crores you would only be able to sell 6 crores balance the distilled would be 25:32 25 minutes, 32 seconds idle am I clear right yeah but my question over 25:40 25 minutes, 40 seconds yeah so sorry yeah my question over here is that why we couldn't bid more than 5 k because if I'm not wrong the entire 25:47 25 minutes, 47 seconds mapur facility is funible towards grain so maybe I I can do C heavy uh means ethanol C heavy or B heavy 25:55 25 minutes, 55 seconds right right so that was possible but at that point of time one did not know that they are not going to increase the price 26:04 26 minutes, 4 seconds having begun and tendered it's not possible to roll back right and in the overall scheme you know until 26:13 26 minutes, 13 seconds you reduce sugar you don't get good price for sugar yes I mean if I knew on day one that they are not going to increase any 26:21 26 minutes, 21 seconds Maybe we would have done lesser juice. Right. Right. Understood. Understood. 26:28 26 minutes, 28 seconds But capacity would have been idle. Huh. 26:33 26 minutes, 33 seconds BC you would have done but that grain would have gone uh for unutilized. Yeah. 26:38 26 minutes, 38 seconds Or you 60% utilized. But yes, your question is valid. If we knew this on day one, we would have not done full juice. 26:49 26 minutes, 49 seconds Right. Right. Understood. Understood. Uh and sir lastly on PLA front uh I think uh uh you have mentioned that you 26:57 26 minutes, 57 seconds already started trading uh PLA and uh so uh is it is it that to build the market as of now we have to significantly 27:04 27 minutes, 4 seconds reduce the price or sort of come up with the lower price to the clients. No no no this is this is not the case. 27:13 27 minutes, 13 seconds We are wanting to do this so that we can get the technical feedback required for our own production and also start 27:20 27 minutes, 20 seconds creating a name in the market meeting the right customers and everything. So customers are largely still importing on their own and just buying a small 27:27 27 minutes, 27 seconds percentage from us and giving us feedback which is very valuable for when we start production. 27:33 27 minutes, 33 seconds Okay. Okay. So this these are only pilot works which is which is happening as of now it seems. No, we are doing commercial sale also but to a small 27:40 27 minutes, 40 seconds percentage uh in order to get feedback on quality. 27:44 27 minutes, 44 seconds Okay, understood. Understood. Uh uh thanks. Thanks. That's a that's a promising. 27:51 27 minutes, 51 seconds Thank you. The next question is from Tanoj Nagalia from SKP Securities. Please go ahead. 28:00 28 minutes Hello everyone. Good afternoon. 28:02 28 minutes, 2 seconds So sir, I wanted to know whether there is any change in the ethanol mix. As you said you'll be making more of C heavy. 28:10 28 minutes, 10 seconds So the previous uh mix you had said it was 25% C, 65% B and 10% setup. 28:18 28 minutes, 18 seconds It's a very marginal tweet because midway is remaining that range. 28:24 28 minutes, 24 seconds Yeah. So just one unit midway we are shifting which may not because we have a 10 unit company may not look very 28:31 28 minutes, 31 seconds visible but yes whatever we can salvage we are salvaging. 28:36 28 minutes, 36 seconds Uh okay sir thank you sir. My next question will be sir are we on track to close the uh financial year 26 with uh 28:44 28 minutes, 44 seconds ethanol sale of 28 k uh looks like between 26 to 27 cr 26 to 27. 28:56 28 minutes, 56 seconds Okay. Answer one last question like what kind of uh revenue are we expecting in PLA from the uh palparag statutes which 29:05 29 minutes, 5 seconds you were talking about right now all no this this is too early in the day 29:12 29 minutes, 12 seconds so what we are wanting to say let's understand what we are wanting to say without over uh expecting or under 29:21 29 minutes, 21 seconds delivering you know so today this is something new for us we are going in There are two parts to this. One to make 29:29 29 minutes, 29 seconds the quality that is the function at the plant level. Two is to sell this. That is what your pan paraget is. So you're 29:37 29 minutes, 37 seconds separately working on these two and with the interactions we are having around we feel very very confident and 29:43 29 minutes, 43 seconds happy that you know we should see success on both the fronts. 29:50 29 minutes, 50 seconds The detail of how we are want hoping to be successful is all what we have spoken about. 29:58 29 minutes, 58 seconds Okay, got it sir. Sir, uh just I can squeeze one last question. What is the cost of production of the uh sugar in Q4? 30:07 30 minutes, 7 seconds Q3 mean the coming. 30:14 30 minutes, 14 seconds So for the full year we are in the region of around 37 and 37 and a half. Okay sir. Thank you so much. That's from my end. 30:26 30 minutes, 26 seconds Thank you. 30:28 30 minutes, 28 seconds The next question is from Hitesh Sharma from Goldman Sachs. Please go ahead. Good afternoon everyone. 30:35 30 minutes, 35 seconds Good afternoon. 30:37 30 minutes, 37 seconds I just want to check up on this PLA. How much is the capacity relation right now and uh what sort of at the full capacity will add to the profit. 30:50 30 minutes, 50 seconds Hi. So uh we are commissioning in October of 2026. So right now there's of course no capacity utilization. Did not come up. Yeah. 30:58 30 minutes, 58 seconds Um and then uh if on full capacity utilization the revenue potential is 2,000 cr at peace and we have given 31:06 31 minutes, 6 seconds guidance before of a 35% AITA profit margin. Thank you very much. 31:16 31 minutes, 16 seconds Thank you. Before we take the next question, a reminder to participants that you may press star and one to join the question queue. The next question is from Dwanit from Sabla family office. 31:28 31 minutes, 28 seconds Please go ahead. 31:31 31 minutes, 31 seconds Uh hi sir, I think so most of my questions have been. Yeah, I just wanted to know on the ethanol bit. uh have we 31:41 31 minutes, 41 seconds been have we know what kind of rising are they going to go on the sea heavy route for this current sugar season 31:49 31 minutes, 49 seconds because in case so they al they have given an increase last year also. So if they give an increase right now then the 31:58 31 minutes, 58 seconds price differential between the B heavy root and the C heavy root is very minimal. So in that case it looks ominous that they might actually 32:06 32 minutes, 6 seconds increase the price high on a on the B heavy route right at least or any in 32:13 32 minutes, 13 seconds line with that on the cane uh juice route. So that uh and uh what my second question is what is our current 32:21 32 minutes, 21 seconds conversation with regards to the government on this particular aspect or are they still in talks with the 32:28 32 minutes, 28 seconds government for the price revision or uh have the talks stalled for now? 32:35 32 minutes, 35 seconds So uh I think uh what you're meaning is whether there will be a revision for CAV. So currently the indications are there is no revision on the envel. 32:45 32 minutes, 45 seconds So we have pitched pitched and pitched no reply is the message we have which I 32:52 32 minutes, 52 seconds mean I cannot again this government which gives a feeling that they might not be looking at it. That is the indication. 33:02 33 minutes, 2 seconds Okay. 33:04 33 minutes, 4 seconds All products will remain the same CV juice. 33:09 33 minutes, 9 seconds So as for the November 24 October 25 season, right? Right. Oh, thank you. 33:22 33 minutes, 22 seconds Thank you very much. That was the last question in Q. Okay. 33:27 33 minutes, 27 seconds I Sorry. Sorry. Can I give some closing remarks? Absolutely. Yes sir. 33:32 33 minutes, 32 seconds Yeah. So our hope not more than hope we are hoping to crash over 10.5 cr uh 33:39 33 minutes, 39 seconds quintil this year which is about 50 10.55 actually which is about 60 lakh increase over last year 33:47 33 minutes, 47 seconds yeah about a 58 60 lakh quintail increase which amounts to about almost 6%. Our ability with the capeex already 33:56 33 minutes, 56 seconds done is to very easily hand a half roads and we hope to achieve that very soon is 34:03 34 minutes, 3 seconds the wish list and but it's not a dream we are working towards that and feel very positively inclined to achieving that 34:12 34 minutes, 12 seconds my hope is maybe part of that vision gets completed next year itself and in Maharashtan up you would start see 34:21 34 minutes, 21 seconds closures by February end. So that is why the price is where it is and even the 34:28 34 minutes, 28 seconds monsoon prediction which we have read about till now is not great. So one thing is structural kind of a tailwind 34:36 34 minutes, 36 seconds to sugar prices as we proceed. So yes one sector ditch ethanol the other looks 34:43 34 minutes, 43 seconds good and especially for Balur right. 34:50 34 minutes, 50 seconds Thank you. Thank you very much. 34:56 34 minutes, 56 seconds On behalf of Balramuchini Mills, that concludes this conference. Thank you for joining us. Ladies and gentlemen, you may now disconnect your lines. 35:04 35 minutes, 4 seconds Thank you. Thank you.