Chambal Fertilisers and Chemicals Ltd — Q3 FY26

Chambal Fertilisers and Chemicals Ltd Q3 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=d6ZxS7Mg-k0 Published: 3 months ago

0:01 1 second Ladies and gentlemen, good day and welcome to the Q3 N9M FI26 earnings conference call of Jumble Fertilizers 0:08 8 seconds and Chemicals Limited. As a reminder, all participant lines will remain in the listenon mode and there will be an opportunity for you to ask questions after the presentation concludes. 0:20 20 seconds Should you need assistance during the conference call, please signal the operator by pressing star then zero on your touchstone telephone. 0:28 28 seconds Please note that this conference is being recorded. 0:32 32 seconds I will now hand the conference over to Miss Pwagi Jan from Baloram Advisers for opening remarks. Thank you and over to you. 0:40 40 seconds Thank you. Good afternoon everyone and a warm welcome to you all. My name is Purvangi Jen from Alarim Advisors. We represent the investor relations of 0:48 48 seconds Chumbell Fertilizers and Chemicals Limited. On behalf of the company, I would like to thank you all for participating in the company's earnings 0:56 56 seconds call for the third quarter and 9 months ended of the financial year 2026. 1:02 1 minute, 2 seconds Before we begin, let me mention a short cautionary statement. Some of the statements made in today's earnings call may be forward-looking in nature. Such 1:10 1 minute, 10 seconds forward-looking statements are subject to risk and uncertaintities which could cause actual results to differ from those anticipated. 1:18 1 minute, 18 seconds Such statements are based on management's belief as well as assumptions made by and information currently available to the management. 1:25 1 minute, 25 seconds Audent is a caution not to place any undue reliance on these forward-looking statements in making any investment decisions. The purpose of today's 1:33 1 minute, 33 seconds earnings calls purely to apprise about the company's fundamental business and financial quarter under review. Let me 1:41 1 minute, 41 seconds now introduce you to the management of Chumbel Fertilizer participating with us in today's earnings call and hand it over to them for their opening remarks. 1:50 1 minute, 50 seconds We have with us Mr. Abbear managing director, Mr. Narendra Gohel, business head manufacturing operations, Mr. An 1:59 1 minute, 59 seconds Chen, Chief Financial Officer, Mr. Ashish Shivasafa, Vice President Sales and Marketing and Mr. Predep Barat 2:08 2 minutes, 8 seconds Vice President Legal and Company Secretary without any delay I request Mr. Abbe to start with his opening remarks. Thank you and over to you sir. 2:19 2 minutes, 19 seconds Thank you Purwangi. 2:22 2 minutes, 22 seconds Good afternoon everyone and thank you for joining us in this conference call to discuss our financial performance during the third quarter and 9 months ended fiscal 2026. 2:35 2 minutes, 35 seconds Jumble fertilizers continue to play a critical role in supporting India's agricultural ecosystem as India's 2:43 2 minutes, 43 seconds largest private sector ura producer 2:52 2 minutes, 52 seconds uh contributing close to 10% of domestic supply but not only that we are almost 3% of the crop protection chemicals and 3:02 3 minutes, 2 seconds specialty nutrients witness in the country in NPK's our share is almost 5%, DAP is also 5%, MOP is about 6%. 3:12 3 minutes, 12 seconds Therefore, we are an in important contributor to country's agricultural outputs. The union budget has allocated 3:20 3 minutes, 20 seconds about 1.71 lakh crores to the department of fertilizer this year providing long-term visibility and 3:27 3 minutes, 27 seconds stability to the sector. From an economic standpoint, conditions during the last quarter of the rabbi season were broadly favorable. 3:36 3 minutes, 36 seconds India received 11% higher than normal rainfall during October to December 2025 with strong October rains offsetting 3:44 3 minutes, 44 seconds deficits later in the season. Key northern states such as Rajasthan, Uttar Pradesh, Hana, Punjab witnessed 3:52 3 minutes, 52 seconds favorable conditions supporting early sewing. 3:56 3 minutes, 56 seconds As a result, Rabi sewing increased by 2.8%. 8% yearonear to 652.3 lakh hectares as of January 26. 4:05 4 minutes, 5 seconds Wheat acreage reached an accord level alongside healthy growth in pulses and oil seeds. Northern states such as 4:13 4 minutes, 13 seconds Rajasthan, Uttar Pradesh, Hana and Punjab saw higher sewing of wheat and mustard supported by favorable rainfall conditions during October. 4:23 4 minutes, 23 seconds For Chumble, this translated into a stable outlook with Juria continuing to anchor volumes and cash flows and DAP 4:31 4 minutes, 31 seconds and NPK providing diversification and growth, positioning us well to benefit from both steady base demand and gradual shift towards balanced fertilization. 4:42 4 minutes, 42 seconds With this backdrop, let me now move to our operational performance for the quarter under review. 4:48 4 minutes, 48 seconds During the quarter and 9 months period, our crop protection chemicals and specialtity nutrients business alongside biologicals continued to demonstrate 4:56 4 minutes, 56 seconds strong momentum with sustained growth in both revenue and margins. On a 9-month basis, the contribution from the segment 5:04 5 minutes, 4 seconds grew by 30% yearonear reflecting improving scale product mix and execution. In the third quarter, we 5:11 5 minutes, 11 seconds introduced five new products across biop pesticides, bio fungicides, and insecticides, further strengthening our 5:18 5 minutes, 18 seconds differentiated portfolio. Looking ahead, our pipeline remains healthy with 12 new CPC products and one new specialtity 5:27 5 minutes, 27 seconds nutrient product lined up for launch in FY27, supporting our growth ambitions. 5:33 5 minutes, 33 seconds On biologicals portfolio, I am happy to report that we continue to perform strongly with volumes increasing by 31% 5:41 5 minutes, 41 seconds and revenues growing by almost 58% year on year over the 9-month period. 5:47 5 minutes, 47 seconds Encouragingly, Utam Pronam, our bio nanophosphorus product launched last year, is witnessing strong market acceptance 5:55 5 minutes, 55 seconds and better product outcomes with volumes and revenue up almost 250% yearonear. We are 6:04 6 minutes, 4 seconds doing well in this area and actively working on expanding our biological offerings particularly in the fungicides and meticides which are planned for 6:13 6 minutes, 13 seconds launch over the course of the next financial year. I am also happy to report that in terms of biologicals we are almost 6% of the market as of today. 6:25 6 minutes, 25 seconds Chamber fertilizers and Terry the energy and resources institute entered into an agreement for research for advanced and sustainable agricultural solutions. This 6:34 6 minutes, 34 seconds is significant in the backdrop of food security challenges due to an increasing population. Terry as you may know is a 6:41 6 minutes, 41 seconds pioneer institution in the area and will be doing research under the center of excellence to develop products where IP 6:48 6 minutes, 48 seconds rights are jointly owned by CFCL and Terry and Chumbul will have exclusive commercial rights globally on the 6:56 6 minutes, 56 seconds product. A dedicated lab is operational now and the products are expected to launch launch from FY2728 7:03 7 minutes, 3 seconds onwards based on product efficacy. We will also explore the export market for these products. In the seed segment, we 7:10 7 minutes, 10 seconds have launched research variety of seed wheats and early results have been encouraging giving us confidence as we continue to build capabilities in this 7:18 7 minutes, 18 seconds segment. In the bulk fertilizers category, PNK fertilizers delivered good performance supported by timely and 7:25 7 minutes, 25 seconds prudent procurement strategy and effective placement during the season. 7:30 7 minutes, 30 seconds Further, we have sourced adequate volumes of PNK fertilizer ensuring preparedness for the karif season. The 7:37 7 minutes, 37 seconds demand for phosphhatic fertilizers continues to grow and we continue exploring and evaluating capacity in 7:45 7 minutes, 45 seconds India or abroad. On the marketing and farmer engagement front, we continue to strengthen our digital outreach. Our 7:52 7 minutes, 52 seconds Chambal Utam Krishek Mitra app crossed about 100,000 downloads and we have launched a quarterly digital marketing 7:59 7 minutes, 59 seconds newsletter. Our social media campaigns around National Farmer Day and World Soil Day further enhanced Farmer Connect 8:08 8 minutes, 8 seconds and our YouTube channel received YouTube creator awards and the silver play button reflecting growing engagement. 8:15 8 minutes, 15 seconds Lastly, with respect to our technical ammonium nitrate project, the progress is ongoing with EPC work largely completed at 92% as of third quarter and 8:25 8 minutes, 25 seconds construction activities are in full swing. The date of completion is scheduled for April 30th, 26. As at the end of third quarter, we have incurred a 8:33 8 minutes, 33 seconds project expenditure of INR 1184 crores out of the total estimated cost of INR 8:40 8 minutes, 40 seconds 1645 crores. tan is a very important focus area for CFCL and vertical and 8:48 8 minutes, 48 seconds horizontal expansions are being actively explored. A joint venture in massid is performing well. The increase in P205 8:56 8 minutes, 56 seconds production capacity from 5 lakh metric t to 7 lakh metric t is expected to be implemented by December 2026. 9:05 9 minutes, 5 seconds Further the sulfuric acid capacity is also being increased which is expected to be implemented a year ahead of in a 9:12 9 minutes, 12 seconds year ahead in financial year 27. This will optimize its operations and increase the profitability further. 9:20 9 minutes, 20 seconds Overall our operational performance during the quarter a reflects steady progress across core and value added segments continued portfolio expansion 9:29 9 minutes, 29 seconds and disciplined execution positioning us well for the coming periods. Finally, let me walk you through some of the detailed financial performance for the 9:37 9 minutes, 37 seconds period under the review. On standalone basis, for the third quarter of financial year 26, revenue from operations grew 20% 9:46 9 minutes, 46 seconds to touch 5,898 crores. A bida for the quarter came at 821 crores, up 6% 9:55 9 minutes, 55 seconds despite taking a hit of 31 crores on account of labor code with a bit of margins at 13.92%. 10:02 10 minutes, 2 seconds Profit after tax was INR565 crores up 12% yearon year with PAT margins of 9.57%. 10:10 10 minutes, 10 seconds For the 9 months ended financial year 2026 standalone revenue from operations increased 27% 10:17 10 minutes, 17 seconds yearonear to 18,09 crores. Aida rose 4% yearon year to 2424 crores with AIDA margins at 13.46%. 10:27 10 minutes, 27 seconds Profit after tax for the period grew 16% yearonear to INR 1,84 crores with bad margins and 10.02%. 10:37 10 minutes, 37 seconds I will again remind you that this is after taking a hit on labor codes of the extent of 30 30 crores this quarter on 10:46 10 minutes, 46 seconds receivables and subsidy flows. During the quarter we received subsidy of 5 3,880 crores compared to 3349 crores in 10:55 10 minutes, 55 seconds the corresponding quarter last year. For the 9-month period, subsidy received stood at approximately 10,228 11:02 11 minutes, 2 seconds crores. Broadly in line with 3 10,353 crores received in the same period last year. As of 31st December 25, total 11:11 11 minutes, 11 seconds receivables stood at around 2346 crores com comprising market datas of INR 367 crores and subsidy receivables 11:21 11 minutes, 21 seconds of INR1 1979 crores. In terms of segmental performance for the quarter, our URA segment delivered stable 11:28 11 minutes, 28 seconds performance. URA revenues in the quarter stood at INR 3708 crores which remained broadly stable year on year. EVIT 11:36 11 minutes, 36 seconds margins remained broadly stable at around 17.28%. 11:40 11 minutes, 40 seconds URA sales volumes were largely flat at 9.83 lakh metric ton in the quarter compared to 9.88 lakh metric ton in the 11:49 11 minutes, 49 seconds same quarter last year. In the complex fertilizer segment, revenues increased significantly to approximately 1,850 11:57 11 minutes, 57 seconds crores in the quarter reflecting year-on-year increase of 81%. Sales volume also grow also rose to 2.94 lakh 12:05 12 minutes, 5 seconds metric tons compared to 2.13 lakh metric tonses last year reflecting strong seasonal demand and EIT margins improved 12:13 12 minutes, 13 seconds modestly to around 1.4% supported by better operating leverage. 12:19 12 minutes, 19 seconds The CPC special nutrient and seed segment continued to deliver robust year-on-year growth. Revenues increased 12:27 12 minutes, 27 seconds 33% yearonear to about 340 crores in the quarter representing strong growth driven by portfolio expansion and 12:34 12 minutes, 34 seconds improved penetration. Abit margins remained healthy at around 22.8% on a year to date basis. The URA segment 12:42 12 minutes, 42 seconds delivered stable performance with revenues around 10,134 crores on 9 months for FY26 whilst EBIT margins remained steady at around 16.3%. 12:54 12 minutes, 54 seconds URA sales volumes were largely flat at 27.3 lakh metric tons respectively. 13:00 13 minutes The complex fertilizer segment recorded strong growth with revenues increasing sharply to approximately 6,72 crores in 13:08 13 minutes, 8 seconds 9 months FY26 a yearon-year increase of 180%. Sales [clears throat] volume increased to 11.7 13:16 13 minutes, 16 seconds lakh metric tons led by strong growth in DAP, TSP and NPK. AIT margins moderated to around 4.4% from 6.87%. 13:26 13 minutes, 26 seconds The CPC specialtity nutrients and seed segment continued its healthy momentum with revenues growing to about 1,172 13:35 13 minutes, 35 seconds crores from INR887 crores and EBIT margins improved slightly to 23.69%. 13:42 13 minutes, 42 seconds Overall, the year-to-year performance reflects stable execution in URA, strong growth in complex fertilizers, and continued momentum and value added 13:51 13 minutes, 51 seconds businesses, reinforcing the strength and diversification of our operating portfolio. With this, I would like to 13:58 13 minutes, 58 seconds hand it back to the moderator and open for question and answer session. Thank you. 14:05 14 minutes, 5 seconds Thank you, ladies and gentlemen. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their 14:13 14 minutes, 13 seconds touchstone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants 14:21 14 minutes, 21 seconds are requested to use their handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question giver symbols. 14:35 14 minutes, 35 seconds Ladies and gentlemen, a reminder if you wish to ask a question, please press star and one. 14:44 14 minutes, 44 seconds We take the first question from the line of Prashant Biani from LR Securities. Please go ahead. 14:50 14 minutes, 50 seconds Yeah, thank you for the opportunity. Uh sir, when are we going to start the trial run for the tan plant? 14:58 14 minutes, 58 seconds We are just at the cusp. uh in fact we had started the steam blowing and other pre-commissioning activities. 15:05 15 minutes, 5 seconds So that part is uh for the WNA plant and for the ANS and melt we should be doing that shortly or thereafter. 15:16 15 minutes, 16 seconds Uh but the end product should be out by say March. 15:20 15 minutes, 20 seconds April April April. 15:23 15 minutes, 23 seconds Okay. And sub would be your expectation from the upcoming NBS policy? 15:30 15 minutes, 30 seconds NBS policy we believe will be more or less a continuation from the past wherein I do not expect the government 15:39 15 minutes, 39 seconds to go opening up the DAP segment but as you know the other parts of the NPKs are 15:46 15 minutes, 46 seconds open in terms of pricing. I would believe that that will be more or less the uh what they will continue to go forward 15:54 15 minutes, 54 seconds already have a mechanism and that mechanism DAP has worked so far although there are now increasing difficulties in 16:02 16 minutes, 2 seconds terms of working capital management because of blockage of you know GST and all that but I think the government has seized of the problem and they'll come 16:10 16 minutes, 10 seconds with a resolution that more or less a continuation right sir uh for a URA plant. There was 16:19 16 minutes, 19 seconds some unscheduled stoppage in Q2 as well if I'm if I recollected Q2 yes Q2 yes Q3 we had a minor stripper 16:28 16 minutes, 28 seconds leak for 3 days that's all but uh in gap on one plant but otherwise has been a steady quarter in terms of production 16:37 16 minutes, 37 seconds and there will be further maintenance shutdown in 4Q yes there will be a maintenance shutdown for gapon two plants effective 20th 16:45 16 minutes, 45 seconds February which will take about 30 days 35 days 35 to 35 days. 16:53 16 minutes, 53 seconds Okay. It was a traded business aida person was around 9 900 rupees I believe 17:00 17 minutes uh this time while you know it has improved year on year but on an absolute basis it seems to be low. Is it that on per bag basis it is higher and the 17:09 17 minutes, 9 seconds overhead cost has taken it down to 900 or uh uh it it is at uh that level only on a per bag basis as well. 17:25 17 minutes, 25 seconds Ladies and gentlemen, we have lost the line of the management. Please stay connected while I reconnect the management. Thank you. 17:42 17 minutes, 42 seconds [music] 17:45 17 minutes, 45 seconds Try it. 17:54 17 minutes, 54 seconds [music] 18:03 18 minutes, 3 seconds I think so. 18:17 18 minutes, 17 seconds [music] 18:31 18 minutes, 31 seconds Ladies and gentlemen, we have the management line reconnected. Prashant, if you could please repeat your question for the management. Thank you. 18:39 18 minutes, 39 seconds Uh yeah, sure. Sir, uh traded business Aida per ton uh seems to be at around 900 rupees uh per ton which is higher on 18:48 18 minutes, 48 seconds year on year but on absolute basis it seems to be lower. So my question was u on a per bag basis it is higher and the 18:56 18 minutes, 56 seconds overhead cost is dragging it down or it is at 900 rupees on a per bag basis as well. 19:03 19 minutes, 3 seconds I'm don't the the way it is to be seen is that we had significantly higher capacity also sale of uh D uh DAP 19:14 19 minutes, 14 seconds and DAP you know is a fixed margin business despite the higher cost that we you see procurement was done at much 19:21 19 minutes, 21 seconds higher prices in this quarter although the government gives you a fixed percentage or fixed number 1,026 or some 19:29 19 minutes, 29 seconds such number because it's 4% of the MRP So that drags the margin down. 19:38 19 minutes, 38 seconds But sir, we had decent mix of NPK and MOP as well. 19:42 19 minutes, 42 seconds That's okay. That's okay. But the very large quantity or large price increase in DAP, it went as high as $850 or 19:52 19 minutes, 52 seconds something like that. So if you do the math, 1,000 rupees on something like 60,000 rupees is a very small amount. 20:00 20 minutes Sure. and uh any communication from the management regarding uh profit calculation or cost calculation for G3 post expiry of benefits? 20:12 20 minutes, 12 seconds No, as far as we understand we have raked up this issue with the government. 20:17 20 minutes, 17 seconds Uh we have met the requisite personnel but they said that we have to start the exercise. They are busy with other 20:24 20 minutes, 24 seconds things uh on other matters so far. uh one of them of course is the futuristic 20:31 20 minutes, 31 seconds expansion of capacity in the country and they are caught up with some other things. So they have not been able to start on this so far. We have touched 20:40 20 minutes, 40 seconds base with them at least twice in the last four. 20:44 20 minutes, 44 seconds Okay. And lastly sir any update on investment plans after 10? you have briefly touched upon but uh 20:51 20 minutes, 51 seconds yeah I said that 10 10 remains a focus area for CFCL and vertical and horizontal expansion are being actively 21:00 21 minutes pursued I think that's a very sufficient indication of what we want to 21:08 21 minutes, 8 seconds okay sir thank you that's it for my friend thank you thank you ladies and gentlemen 21:15 21 minutes, 15 seconds if you wish to ask a question please press are and one we take the next question from the line 21:23 21 minutes, 23 seconds of Vaj Kacharia from SIMPL please go ahead yeah hi uh thanks for the opportunity a 21:30 21 minutes, 30 seconds couple of questions uh first any update you can give for G3 I think it kind of uh the policy benefits uh expire by the 21:38 21 minutes, 38 seconds end of this year uh so I think I've just uh explained that we do not really have a handle on this 21:47 21 minutes, 47 seconds uh the although although uh there are precedents but we do not know what the government is actually going to do or what thought process they are going to 21:56 21 minutes, 56 seconds follow. I have touched base with the uh generally with the people who matter in this and they have said that uh they have not yet started the exercise. 22:07 22 minutes, 7 seconds Once we have a start on the exercise maybe I can give you some explanation on this. 22:13 22 minutes, 13 seconds But in terms of precedence can you give some perspective what are those and you know how does it positively or negatively affect us? 22:19 22 minutes, 19 seconds Precedence is what they have been doing for the past for other uh in the past what have they done for our other uh 22:29 22 minutes, 29 seconds plants. So briefly it is considers the net fixed assets and then the return on net worth and so on so forth. So it's a 22:37 22 minutes, 37 seconds calculation based on that. Uh given that Chambble 3 uh that is Karapan 3 has 22:44 22 minutes, 44 seconds finished its tenor in what way they will treat these numbers is something open to question. We are not hazarding a guess as to [clears throat] what they will do. 22:55 22 minutes, 55 seconds The numbers could vary from our estimates both positively and negatively. So we have to see because uh 23:04 23 minutes, 4 seconds normally they take a 15ear span for depreciation and so on so forth but currently this plant is only 8 years 23:11 23 minutes, 11 seconds into its life. So what exactly will be the parameters they will choose for NIP 23:18 23 minutes, 18 seconds 2012 units going forward because this will be a template not only for us but for all other plants that will follow 23:25 23 minutes, 25 seconds through that is MATX is there HR3 plants are there and so on. So it will be have 23:33 23 minutes, 33 seconds to be very well thought out because what they will do with us will uh go forth for others also. 23:39 23 minutes, 39 seconds And uh so into the TAM project uh you know uh any perspective which you see how should we see the scale up happening 23:48 23 minutes, 48 seconds in FI27 should we see a 70 80% or even a higher kind of a utilization? 23:56 23 minutes, 56 seconds We do hope that uh we have the capacity in terms of running the plant. We have trained up our people. I don't think 24:04 24 minutes, 4 seconds production is going to be an issue. We have to see how well the market absorbs the product with something in the future 24:13 24 minutes, 13 seconds and that is the key because at the end point we have to see and we are fairly confident we have our people in place a 24:19 24 minutes, 19 seconds marketing team in place and uh I think uh we have I think today the most modern technology available for this kind of 24:27 24 minutes, 27 seconds product. So at the moment I don't see any showstoppers as far as reaching a 24:34 24 minutes, 34 seconds very healthy uh capacity utilization 75 80% plus I don't see any problem. 24:42 24 minutes, 42 seconds Okay and so I think last uh just two questions first in the opening remarks you talked about us you know signing an uh uhou or a licensing deal with a MNC. 24:55 24 minutes, 55 seconds Can you just explain what does it pertain to in the sense is it purely for domestic market or it's more an 25:02 25 minutes, 2 seconds opportunity and you know how can this I I think you are talking about we were talking about Terry Terry is you know a 25:11 25 minutes, 11 seconds very uh well-known institute in terms of uh sustainable agricultural solutions in biologicals 25:20 25 minutes, 20 seconds we had as you know entered into a uh an understanding for them to do research on specified product lines and with 25:29 25 minutes, 29 seconds specific personality traits or whatever of the products. Now we have also commissioned a laboratory to do the specific job there. That was one. 25:38 25 minutes, 38 seconds Secondly, as we as I indicated there is a pipeline of products which are going to come from now up to 2028. 25:48 25 minutes, 48 seconds There are in fact if I'm not wrong and Ashish will correct me there. There are about eight or nine products uh in 25:55 25 minutes, 55 seconds various varieties which are in including bionnetoatides and fungicides and so on 26:01 26 minutes, 1 second which we have complete IP control to and as they form and we feel confident we can go I mean beyond our borders to sell 26:10 26 minutes, 10 seconds that kind of a thing and we are having interesting inquiries from some one or two companies who are looking at our 26:18 26 minutes, 18 seconds performance of our product and they might uh you know after their set of field trials or getting convinced on the 26:25 26 minutes, 25 seconds product capability could take it abroad as well. 26:30 26 minutes, 30 seconds Okay. But any other tie up? So I think we were exploring you know in licensing opportunities with other MNC's for the 26:39 26 minutes, 39 seconds CTP portfolio and same for manufacturing we that is continuing. We are introducing 26:47 26 minutes, 47 seconds products that we said are new products are coming from those uh so-called formal and informal arrangements with 26:55 26 minutes, 55 seconds the uh multinationals that we are talking to and uh we have progressed some way. Uh first of all we have a 27:03 27 minutes, 3 seconds company called nutrient worldwide which is going to give us some carbon related products which will come in next year 27:11 27 minutes, 11 seconds and then uh there are products coming from Nino which uh we already have we are also talking to Sententa Cortiva all 27:20 27 minutes, 20 seconds those people. So as they get confident about our reach capability to market the 27:26 27 minutes, 26 seconds gen x or 1.5x products definitely get into that and uh there are both 27:33 27 minutes, 33 seconds arrangements in terms of the volumes of sales that we have [clears throat] to achieve the geography in which we have to do that uh etc etc. So those are 27:42 27 minutes, 42 seconds arrangements that we have with many of our uh uh corresponding companies who are now taking uh the company seriously 27:51 27 minutes, 51 seconds in terms of reach, in terms of our marketing capability, in terms of the trust we enjoy with our brands. 28:00 28 minutes Okay, last question. Any Va, I would request you to please join back the queue for follow-up questions. 28:05 28 minutes, 5 seconds Thank you. [clears throat] Ladies and gentlemen, if you wish to ask a question, please press star and one. 28:13 28 minutes, 13 seconds We take the next question from the line of SEP Mukharji from SKP Securities Limited. Please go ahead. 28:20 28 minutes, 20 seconds Yes sir. Thanks for taking my question. 28:22 28 minutes, 22 seconds Uh I have certain bookkeeping questions like uh what was the gas cost for the quarter? 28:30 28 minutes, 30 seconds I'll ask Mr. Anu Jan to give the answer to that. Yes, thank you. 28:36 28 minutes, 36 seconds order was uh $14.6 on NCV basis per MMPU. Yes sir. 28:44 28 minutes, 44 seconds Okay sir. And sir uh if you can please give a give the plant wise production volume for G1 G2 G3. 28:53 28 minutes, 53 seconds Okay. So Gipon one for the quarter we had about 2.84 lakh ton produced. 29:00 29 minutes Garipan 2 it was 2.69 69 lakh t and gap 3 it was 3.51 lakh t so total 9.04 lton 29:11 29 minutes, 11 seconds okay okay sir and uh sir actual gal for G1 G2 for Q3 and 9 month what would be 29:17 29 minutes, 17 seconds the number Mr. bagels. Yeah, I couldn't get your question. 29:25 29 minutes, 25 seconds Could you repeat please? 29:27 29 minutes, 27 seconds Sir, uh the actual GCAL uh energy efficiency for uh for G1 uh and G2 for 29:35 29 minutes, 35 seconds Q3 and 9 month what would be the numbers? 29:38 29 minutes, 38 seconds I can only give you a range. they were uh quite a bit I would say 5 to 6% 4 to 29:45 29 minutes, 45 seconds 5% lower than the knots for G1 and G2 and um about let's say 29:54 29 minutes, 54 seconds about 4 to 5% lower about 2% 2 to 3% lower from three 30:02 30 minutes, 2 seconds okay okay okay sir okay okay sir thank you thank you we take the Next question from the line of Duv Muchel from HDFC AMC. 30:14 30 minutes, 14 seconds Please go ahead. 30:16 30 minutes, 16 seconds Uh yeah sir. So just a question on the NPK and the DAP business. So we are seeing that the input price have increased both phosid sulfuric acid 30:24 30 minutes, 24 seconds significantly which will probably lead to an increase in the NPK pricing uh if you have to probably pass it on. Uh and 30:32 30 minutes, 32 seconds the DAP pricing remains steady because of whatever government policy. So does it start to have an impact in terms of the uptake of NPK because for the last 9 30:41 30 minutes, 41 seconds months 12 months we are seeing a good uptake in NPKs probably also because of the shortage in DAP uh but does the economics don't work very favorably for 30:49 30 minutes, 49 seconds the farmers if you have to take that price hike I mean just trying to understand how does this dynamic work yeah naturally they there is a 30:57 30 minutes, 57 seconds substitution effect if prices are beyond a certain range farmers will tolerate a certain price gap beyond which they will 31:04 31 minutes, 4 seconds not now that is also incumbent upon the availability of the substitute. Last year the substitute was not available to 31:13 31 minutes, 13 seconds some extent that is why the NPK's uh worked well for the industry. 31:19 31 minutes, 19 seconds Uh the second part is we are not prognosticating what is going to happen to the DAP availability this year but 31:26 31 minutes, 26 seconds you rightly said there are pointers which are worrying. One is that the price sulfur is very high and not seem 31:34 31 minutes, 34 seconds to be coming down very soon. The second part is that it has a knock-on effect on the price of phosphoric acid and that 31:42 31 minutes, 42 seconds also is uh not uh conducive to the production of a high uh P percentage uh fertilizer like DAP. 31:53 31 minutes, 53 seconds So naturally the cost of production of DAP is going high uh from rock. Yes. Uh if people have got the rock route 32:02 32 minutes, 2 seconds definitely [clears throat] they have still some margin left although it's getting squeezed but it will all depend 32:08 32 minutes, 8 seconds on what the price fixation for uh DAP for phosphoric acid happens in this quarter but from my understanding it has 32:16 32 minutes, 16 seconds not yet happened although uh discussions are going on. That is one part the other part is that ammonia itself also has a 32:24 32 minutes, 24 seconds little uh elevated levels at this point of time. What I'm trying to say ultimately is that it will depend on the 32:32 32 minutes, 32 seconds price dynamics and what the government of course has got the policy for uh advantage disadvantage as far as DAP is 32:39 32 minutes, 39 seconds concerned for the importers where as I told you that the increasing involvement of working capital 32:47 32 minutes, 47 seconds is an issue and secondly as far as the producers are concerned they have slightly different formula I think if 32:55 32 minutes, 55 seconds I'm not wrong this past 6 months prices and then the uh their subsidy is derived 33:02 33 minutes, 2 seconds from the import of the actual import of the material for the last 6 months. How it will work for them is something that 33:10 33 minutes, 10 seconds we should ask either Paradep or Kuromandal or somebody who is actually producing that. So that would decide the 33:18 33 minutes, 18 seconds availability in terms of the DAP in the country going forward. uh the situation looked to be okay sometime back in 33:28 33 minutes, 28 seconds January when prices were at 650 levels 670 levels but of late they have climbed up rather sharply my understanding is 33:36 33 minutes, 36 seconds that they are reaching levels of 720 730 already and uh where it will end up and 33:43 33 minutes, 43 seconds what it will do to the availability once again is something although the starting point this time is more favorable in 33:51 33 minutes, 51 seconds terms of better stock position so it's a a complex interplay I will not be able to predict but I think uh still uh there 34:00 34 minutes will be a demand for NPK in a certain percentage and Chumbel is well poised to take advantage. 34:08 34 minutes, 8 seconds Sure sir thank you. So just to uh extend on this so basically there are two things uh first is the pricing of DAP uh 34:15 34 minutes, 15 seconds sorry the availability of DAP and the relative price gap between DAP and NPK. 34:19 34 minutes, 19 seconds So keeping the availability aside because that will I'm not sure how it will play out but just on the pricing gap uh I mean uh is there space to take 34:27 34 minutes, 27 seconds price hikes in NPK case uh for the cost increase or the tipping point is reached where uh the affordability affordability 34:35 34 minutes, 35 seconds versus the DAP becomes increasingly more challenging the it is then the question of 34:42 34 minutes, 42 seconds positioning and who has taken uh what position in terms of pricing in the market. So that is that is an important 34:50 34 minutes, 50 seconds issue because as you rightly said there's a tipping point uh whereby after which the consumption will drop to some 34:59 34 minutes, 59 seconds extent. [clears throat] So uh that will be pressure all around but on the same uh you know let's look at it this way 35:08 35 minutes, 8 seconds that the availability itself of these will be domestically quite constrained because the the economics don't work out 35:16 35 minutes, 16 seconds at all for NPKs DAP still there is some protection in NPK uh there is no option except for a 35:24 35 minutes, 24 seconds grade like possibly 203 where also because of sulfur prices margins are under pressure. 35:31 35 minutes, 31 seconds Sure. Got it. And sir, the second question was on the uh on the uh tan you mentioned about horizontal and vertical 35:38 35 minutes, 38 seconds uh possibilities. So any uh if you can um you know provide some more comments here. Uh what can what are these possibilities would be? 35:46 35 minutes, 46 seconds I think I have thrown a very broad and uh encompassing hint on this. It's a very broad and encompassing hint. 35:54 35 minutes, 54 seconds If you can give more a very broad horizontally means that you produce more of the same stuff and uh uh vertically 36:04 36 minutes, 4 seconds means that you go forward in the value chain. 36:09 36 minutes, 9 seconds All right. Sure. And so how how when do you I mean is there a point where you decide that uh you go ahead with this or I mean how how does that happen? 36:18 36 minutes, 18 seconds Uh there there are two points to it. One is that we have to we decide with it when we go to the board and say okay 36:25 36 minutes, 25 seconds here is a specific proposal okay that this plant will be put at this place with this cost and with this return and 36:33 36 minutes, 33 seconds this product uh kind of mix and that is when we we will announce in the meantime there are all kind of 36:42 36 minutes, 42 seconds things going on in the background sure agreed thank you and all the best thank you 36:49 36 minutes, 49 seconds thank Thank you. We take the next question from the line of Rashant Pyani from Lala Securities. Please go ahead. 36:59 36 minutes, 59 seconds Uh yeah sir, ideally for DAP u how much availability would the government want 37:06 37 minutes, 6 seconds to ensure every year be it from domestic production or imports? 37:11 37 minutes, 11 seconds As much as possible. BAP has now become as important a product as Juria in terms of the requirement from the farmers. 37:21 37 minutes, 21 seconds Ideally in my opinion what I have seen in the past and Ashish can bear me out on that is that we have seen levels of 37:30 37 minutes, 30 seconds about 2 to four 2.3 2.4 4 million tons in April. Uh which is was considered safe. 37:40 37 minutes, 40 seconds But if you see what I mentioned in the first paragraph that there has been extensive sewing of uh wheat and so on. 37:49 37 minutes, 49 seconds Of course, some part of it has already been used as basil dose which is where most of the DAP goes. 37:57 37 minutes, 57 seconds But there are sometimes top up uh pricing and so on what they call I will like like uh Ashish to explain that 38:06 38 minutes, 6 seconds further. So my feeling is that that the consumption in the balance period from January to March is also not going to be a small number. What it will do to the 38:15 38 minutes, 15 seconds availability on 1st of April is something to guess at at the moment. But I'll ask Ashish to give some color on this. 38:24 38 minutes, 24 seconds Okay. So Prashant you know if you look at the DAP availability as of now visav uh vizav end January last year. So the 38:34 38 minutes, 34 seconds inventories end of January last year were around uh uh uh 1 uh 3 million tons 38:40 38 minutes, 40 seconds and the end of January it is around 2.5 million tons and if you look at the import contracts and the production for 38:47 38 minutes, 47 seconds February March we should open up with an inventory of 2.8 8 million tons on 1 April which is a which is a very safe 38:54 38 minutes, 54 seconds inventory to start the season with. So I think no panic as of now as far as DAP is concerned. Hope I have answered your question. 39:03 39 minutes, 3 seconds Uh no sir my question was you know irrespective of any month in any calendar years what is the bare minimum 39:10 39 minutes, 10 seconds amount of DAP would any would India want be it from domestic source or import? So if you look at the capacities, you know, 39:19 39 minutes, 19 seconds India produces a minimum of three 300,000 tons and a maximum of 3.6 3.6 3 and 6,000 tons in a month. So that's the range. 39:31 39 minutes, 31 seconds No, I think Ashish what he's asking it what is the minimum comfortable inventory which the government [clears throat] would want. Now I think 39:39 39 minutes, 39 seconds you should come from there uh Prashant that there is a karif rabi split in this total amount is about 105 106 lakh 39:48 39 minutes, 48 seconds metric tons although if you see the numbers last year and sometime that is more due to availability there was no 39:55 39 minutes, 55 seconds availability that's why the amount fell although the latent demand in my uh opinion is close to 106 to 107 lakh 40:04 40 minutes, 4 seconds metric tons. Now given that most of that I do not know the exact split between karif and rabi you divide by the number 40:12 40 minutes, 12 seconds of months and take a center point and that would be the kind of inventory that the government would like to have. So assuming let's say I'm just doing a very 40:20 40 minutes, 20 seconds very crude math on this most of the consumption takes place in ry somewhere around around 55 60% I think goes into 40:29 40 minutes, 29 seconds ry so we are talking about 6 million tons in the 2 and 1/2 months or 3 months of ry which is active so we are talking 40:38 40 minutes, 38 seconds about 2 million tons a month will get flushed out of the system if that is the case the government should have a by ry at least three three and a half million 40:46 40 minutes, 46 seconds tons in its pocket That's the way to look at. 40:50 40 minutes, 50 seconds Uh so thank you for that. Uh and sir um how much is the net cash and liquid investment right now? 40:58 40 minutes, 58 seconds I will ask uh Anoj to answer this question. 41:02 41 minutes, 2 seconds About 800 crores about 800 crores as of today. 41:08 41 minutes, 8 seconds Okay. And uh Mr. Bger it has been a while since you are talking about overseas investment. uh nothing concrete 41:17 41 minutes, 17 seconds uh you have uh shared as of now we I can only report that we are in active discussions and we continue to 41:24 41 minutes, 24 seconds have active discussions but uh as I said last time sometimes you break off and then engage so this is a time when I'm 41:32 41 minutes, 32 seconds talking to you we have had a significant re-engagement and uh where it will lead to we'll have 41:39 41 minutes, 39 seconds to wait for some time but uh I think there has been a re-engagement and a positive re-engagement Okay sir. Thank you. 41:50 41 minutes, 50 seconds Thank you ladies and gentlemen. If you wish to ask a question please press star and one. 41:56 41 minutes, 56 seconds We take the next question from the line of Vira Kacharia from SIMPL. Please go ahead. 42:04 42 minutes, 4 seconds Uh yeah I thanks for the opportunity. 42:12 42 minutes, 12 seconds how we are looking at wrapping up in your quiet. 42:17 42 minutes, 17 seconds I think your voice is breaking. I could not really hear. Yeah. Is it audible now? 42:23 42 minutes, 23 seconds Yeah, you are audible but there was a break in the in the sound. 42:27 42 minutes, 27 seconds Yeah. So I was just trying to understand you know how we looking at scaling on the seed business. Any tie up vitamin C's? 42:34 42 minutes, 34 seconds Yeah. No. Uh we are doing a two-pronged approach. First of all, this year we just introduced and tested the market 42:43 42 minutes, 43 seconds and we went into mustard, we went into palm millet, we went into wheat and so 42:50 42 minutes, 50 seconds on small quantities to just test out what really happens in this market. What are the uh operating realities of this 42:59 42 minutes, 59 seconds market. So we have got a good fix. We are going to scale this up while we look for opportunities and there are uh 43:06 43 minutes, 6 seconds because of our entry into this we have started receiving inquiries of uh of a significant nature on people 43:15 43 minutes, 15 seconds who want to tie up or offer a stake. So we will look at those and once we have 43:22 43 minutes, 22 seconds something to tell you we shall but in the stake also we will be looking at a majority ownership kind of a 43:30 43 minutes, 30 seconds we don't know what will work uh depending on the valuations and so on we don't know what will work but we have 43:38 43 minutes, 38 seconds started receiving inquiries that much I can say okay and second question was on the CPP uh you know we were also evaluating 43:47 43 minutes, 47 seconds uh into the own manufacturing setup. So any any decision you have come to in terms of you know uh 43:56 43 minutes, 56 seconds no uh we uh really uh have not thought in terms of uh 44:04 44 minutes, 4 seconds proactive uh uh going out and snagging some asset or something like that. Well, 44:12 44 minutes, 12 seconds what we are talking to one or two people is that they develop some generic combinations for us. 44:22 44 minutes, 22 seconds And although this is very embionic, very embionic, we have had just a uh discussion on this. But there are people 44:30 44 minutes, 30 seconds who are willing to develop our white label generic combinations which we will then see if it is uh once 44:39 44 minutes, 39 seconds it is and then also manufacture it for us if it is possible. So at the moment asset acquisition in this side is not 44:47 44 minutes, 47 seconds really uh on the table but this way where we uh get again a Terry kind of 44:55 44 minutes, 55 seconds model where we get stuff uh done for us and then also get manufactured is what we are actually exploring. 45:06 45 minutes, 6 seconds Okay that's all. Thank you. 45:09 45 minutes, 9 seconds Thank you ladies and gentlemen. If you wish to ask a question, please press star and one. We take the next question 45:17 45 minutes, 17 seconds from the line of Karan Gupta from Ki Capital. Please go ahead. 45:23 45 minutes, 23 seconds Yes, thank you for the opportunity. Uh, one question on the demand supply dynamics in the tan market. Uh, there 45:31 45 minutes, 31 seconds were some recent reports about CIL also wanting to set up its own manufacturing facilities. So could you just uh talk a 45:39 45 minutes, 39 seconds little bit more about your thinking about the market? No, this is a good it's a expanding market let me tell you 45:45 45 minutes, 45 seconds uh we are anyways growing in the market I think around five to 6% kagger 45:53 45 minutes, 53 seconds and that you can recheck from Deepak as well but and the market will shortly become 46:01 46 minutes, 1 second uh uh short I mean long in the sense that there will be some capacities addition added by us by even Gopalur at 46:09 46 minutes, 9 seconds Deepak and so on in the next one or two Yes, but overall if you see the trajectory of what's going to happen in India, infrastructure, [clears throat] 46:17 46 minutes, 17 seconds data centers, copper, cement, uh requirement of power through coal and so on. I'm pretty confident that the trajectory is going to go higher. 46:28 46 minutes, 28 seconds Secondly, the other trigger that we think is going to happen is the private sector involvement in mining, 46:36 46 minutes, 36 seconds especially metals and so on. This is going to open up a big way in the next 3 four years. That is real opportunity 46:44 46 minutes, 44 seconds because uh there will be requirement for specific stuff there which is why we talked about some kind of vertical 46:53 46 minutes, 53 seconds integration into this then uh that in any case doing vertical integration insulates us to some extent. The second 47:01 47 minutes, 1 second part is that we have heard about CIL and BHL. 47:06 47 minutes, 6 seconds Coal technology is uh definitely gives lot of advantages in terms of ammonia manufacturer but it's a difficult 47:15 47 minutes, 15 seconds technology to master and it's very emission intensive. 47:19 47 minutes, 19 seconds Uh we have lot of respect for coal India and BHL but by their own admission they are talking about 4 years from now. So 47:28 47 minutes, 28 seconds we are looking at a space where the market is already going to go long and uh that point of time I think we will 47:37 47 minutes, 37 seconds have enough uh space for everybody around I think uh to tackle this issue. We are quite confident. 47:48 47 minutes, 48 seconds Okay. Thank you sir. Uh another question is regarding capital allocation. So apart from the expected TAN expansion 47:56 47 minutes, 56 seconds and any inorganic opportunities, is there any consideration of uh increasing uh cash returns to shareholders? 48:06 48 minutes, 6 seconds I think if our plans work out, we don't have anything to offer in the next one or two years. 48:14 48 minutes, 14 seconds Beyond that, we'll see. 48:19 48 minutes, 19 seconds Okay. And uh lastly on the pending dues, subsidiary dues when do you expect to receive those from the government? 48:29 48 minutes, 29 seconds My understanding it is a cycle uh goes back and forth. Uh we have a total of 48:41 48 minutes, 41 seconds ladies and gentlemen. We have lost the line of the management. Please stay connected while I reconnect the management. Thank you. 49:08 49 minutes, 8 seconds Hey. [music] Hey. Hey. 49:30 49 minutes, 30 seconds [music] 49:38 49 minutes, 38 seconds Ladies and gentlemen, thank you for your patience. We have the management line reconnected. Karam if you could please repeat the question for the management. 49:46 49 minutes, 46 seconds Thank you. 49:48 49 minutes, 48 seconds Yeah, I think they were in the process of telling us about uh any I will ask if I'm not wrong. Uh as of 49:56 49 minutes, 56 seconds end of uh December we had something like 16700 crores or little bit tad more 1500 50:05 50 minutes, 5 seconds crores here or there that's my memory can feed me on that. that was outstanding as receivable from the books 50:14 50 minutes, 14 seconds of which about 700 crores is what has been built and the balance is unbuilt because there is a certain process of flushing it out through pause and all 50:22 50 minutes, 22 seconds that. So that is a that keep on coming and going. So we know that the government has taken some extra for the 50:32 50 minutes, 32 seconds sector by way of some supplementary grants and all that. So I think we are comfortable there. I don't think there's 50:39 50 minutes, 39 seconds much of an issue but uh you can either I I can ask Anoj to give you the exact numbers 50:49 50 minutes, 49 seconds about 1980 crores and uh as Mr. Bezels actually said that about 600 odd crores 50:55 50 minutes, 55 seconds is the build value uh balances because of some uh pause clearance or some 51:02 51 minutes, 2 seconds advantage disadvantage and fate etc. And in January and February till date we have received about 1,000 crores. 51:14 51 minutes, 14 seconds Okay. Very helpful. Thank you. Thanks. 51:19 51 minutes, 19 seconds Thank you. We take the next question from the line of Akash Maji from IIFL Capital. Please go ahead. 51:27 51 minutes, 27 seconds Uh hello sir, thank you for the opportunity. Uh can you uh please share the ura sales volume for guardon 1 2 and three facility. 51:36 51 minutes, 36 seconds I'll ask to answer that. 51:39 51 minutes, 39 seconds Yeah. So uh we have sold in the quarter GIPAN 1 2.87 87 lakh taripan 2 2.79 lakh 51:48 51 minutes, 48 seconds t and gipan 3 4.18 lakh ton so total 9.83 three lakh. 51:55 51 minutes, 55 seconds Okay. Uh and what would be the estimated volume loss from this uh unplanned shutdown in 3Q? Is would that be minimal or is there an figure for that? 52:04 52 minutes, 4 seconds So that's not much. We are talking hardly 3 4,000. We had enough stock to make up for that loss of 10,000. 52:12 52 minutes, 12 seconds Okay. Uh the last question would be uh given the unplanned shutdown in 2Q uh now in 3Q and now the planned shutdown 52:19 52 minutes, 19 seconds in 4Q as well. uh what would be the URA volume growth that you are expecting for FR26. Is there any reason for that? 52:27 52 minutes, 27 seconds I think URA volumes normally Mr. Kash remain static because we run as it is beyond 100% capacity for all three 52:36 52 minutes, 36 seconds plants. We are fully and more exploiting the capacity and these plants have a certain uh number which beyond which you 52:45 52 minutes, 45 seconds cannot uh sort of uh uh exploit capacities unless you run for a larger number of days in a year. So as you know 52:53 52 minutes, 53 seconds we are already in a 2-year cycle before we do turnaround for all the three plants. Our effort uh technically is to 53:02 53 minutes, 2 seconds go to threeear cycle in this as and when we do that some unexploited capacity will come out in all three plants. 53:10 53 minutes, 10 seconds Okay. Thank you. Thank you for answering my questions. 53:15 53 minutes, 15 seconds Thank you ladies and gentlemen. A reminder, if you wish to ask a question, please press star and one. 53:27 53 minutes, 27 seconds As there are no further questions from the participant, I now hand the conference over to the management for their closing comments. 53:35 53 minutes, 35 seconds Thank you. Uh I would like to thank all of you for the call today and I hope that you were able to address all your queries. If you have any further 53:44 53 minutes, 44 seconds questions, you can reach out to our partners at Balorum Advisors. Thank you once again for participating in the form. 53:53 53 minutes, 53 seconds Thank you on behalf of Jumble Fertilizers and Chemicals Limited. That concludes this conference call. Thank you for joining us.