Chambal Fertilisers and Chemicals Ltd — Q4 FY26

Chambal Fertilisers and Chemicals Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=YXegxinrCBE Published: 1d ago

0:01 1 second Ladies and gentlemen, good day and welcome to the Chumble Fertilizers and Chemicals Limited Q4 FI26 earnings 0:09 9 seconds conference call hosted by Baloram Advisor. As a reminder, all participant lines will be in the listenon mode and 0:17 17 seconds there will be an opportunity for you to ask questions after the presentation concludes. 0:23 23 seconds Should you need assistance during this conference call, please signal an operator by pressing star bin zero on 0:29 29 seconds your touchstone 4. Please note that this conference is being recorded. I now hand the conference over to Miss Pulwangi Jan 0:37 37 seconds from Baller Advisor. Thank you and over to you ma'am. 0:42 42 seconds Thank you. Good morning everyone and a warm welcome to you all. My name is Purvangi Jan from Baller Advisors. We represent the investor relations of 0:51 51 seconds Chumbell Fertilizers and Chemicals Limited. On behalf of the company and Valerum Advisers, I would like to thank you all for participating in the 0:58 58 seconds company's earnings call for the fourth quarter and financial year ended 2026. 1:04 1 minute, 4 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 1:12 1 minute, 12 seconds forward-looking statements are subject to risk and uncertaintities which could cause actual results to differ from those anticipated. 1:19 1 minute, 19 seconds Such statements are based on management's belief as well as assumptions made by and information currently available to the management. 1:27 1 minute, 27 seconds Audiences are cautioned not to place any undue reliance on these forward-looking statements in making any investment decision. 1:34 1 minute, 34 seconds The purpose of today's earnings call is purely to educate and bring awareness about the company's fundamental business and financial quarter under review. 1:43 1 minute, 43 seconds Let me now introduce you to the management participating with us in today's earnings call and hand it over to them for their opening remarks. 1:51 1 minute, 51 seconds We have with us Mr. Abha, managing director, Mr. Narendra Goyel, business head manufacturing operations, 1:59 1 minute, 59 seconds Mr. Mr. Ano Jen, Chief Financial Officer, Mr. Ashishi Shivas, Vice President Sales 2:06 2 minutes, 6 seconds and Marketing, Mr. Trit Bat, Vice President, Legal and Company Secretary, and Mr. Vive Mishra, business head of TAN. Without any delay, I request Mr. 2:17 2 minutes, 17 seconds Abbe to start with his opening remarks. Thank you and over to you, sir. 2:22 2 minutes, 22 seconds Thank you Purwangi and good morning everyone. Thank you for joining us in this conference call to discuss our fourth quarter and financial year ended 2026. 2:31 2 minutes, 31 seconds The Indian fertilizer industry faced a challenging environment in 2026 marked by global geopolitical uncertainties 2:38 2 minutes, 38 seconds elevated energy prices uh volatility in key raw material markets. India's agriculture 2:46 2 minutes, 46 seconds fundamentals remain resilient supported by a favorable southwest monsoon at 108% of the long period average. healthy 2:54 2 minutes, 54 seconds reservoir levels at 126% of normal and stock crop uh sewing activity across both karif and ravi season. Karif 3:03 3 minutes, 3 seconds acreage stood at 112 million hectars and rai sewing at around 68 million hectars resulting in record food brand production of nearly 348 million tons. 3:14 3 minutes, 14 seconds The Indian agriculture sector grew around 2.4% in FY26 despite uneven climatic conditions. 3:22 3 minutes, 22 seconds India achieved a record fertilizer production of 503 lakh metric tons during FY26 across both URI and NPKDAP sectors 3:32 3 minutes, 32 seconds reflecting continued capacity expansion and improved product availability across regions. Fertilizer demand also remained 3:39 3 minutes, 39 seconds uh healthy during the year while the government continued to support the industry through stable ura pricricing robust subsidy allocation DBT 3:47 3 minutes, 47 seconds implementation and close coordination with industry participants to ensure uninterrupted supply across the country 3:54 3 minutes, 54 seconds ahead of the karif 2026 season the total fertilizer inventory stood at around 200 lakh metric tons equivalent to about 51% 4:02 4 minutes, 2 seconds of seasonal requirement as compared to the normal level of 33% supported by strong advanced stocking and efficient 4:09 4 minutes, 9 seconds logistics management. During Q4 FY26, geopolitical tensions in West Asia led to sharp volatility in global fertilizer 4:18 4 minutes, 18 seconds and energy markets. India continues to remain dependent on imports for key raw materials such as LNG, ammonia and 4:25 4 minutes, 25 seconds sulfur. During the quarter, disruptions in supplies for Middle East resulted in volatility in availability and pricing across the industry. 4:35 4 minutes, 35 seconds For instance, ammonia prices increased sharply to about $850 to $900 per ton, while sulfur prices also increased from 4:42 4 minutes, 42 seconds $900 to $950 per ton. Elevated LG prices further pressured input economics for the industry. Given India's import 4:50 4 minutes, 50 seconds dependence for key raw materials, the sector faced higher sourcing costs, supply disruptions, and logistics constraints during the quarter. Although 4:59 4 minutes, 59 seconds the government raised the NBS subsidy rates upwards by about 10% industry margins would remain under pressure due 5:07 5 minutes, 7 seconds to high raw material and costs and rupee depreciation. During the quarter the government also took measures to prioritize gas availability for domestic 5:15 5 minutes, 15 seconds ura manufacturers which helped limit the impact on production to a very large extent. Our lower gas availability 5:23 5 minutes, 23 seconds during part of the quarter impacted the capacity utilization slightly and energy efficiency for the sector. Domestic 5:31 5 minutes, 31 seconds prosthetic fertilizer production increased increased during FY26 while imports of DAP and NPK fertilizers 5:39 5 minutes, 39 seconds also rose sharply to ensure availability within the phosphatic segment. NPK fertilizer 5:47 5 minutes, 47 seconds continue to gain shares while companies increase diversified sourcing across Southeast Asia, Africa, Canada, Russia 5:54 5 minutes, 54 seconds and China to reduce supply chain risk and improve sourcing security. From an agricultural perspective, the year 6:00 6 minutes remained broadly favorable. Reservoir levels uh across key agricultural states remained healthy and supported strong 6:09 6 minutes, 9 seconds crop crop sewing activities both karif and rabi seasons. Rabi acreage witnessed healthy growth 6:16 6 minutes, 16 seconds led by wheat pulses and oil seeds where early indicators for the upcoming karif season also remain encouraging. Rural demand trends remain to remain 6:25 6 minutes, 25 seconds supportive for fertilizer consumption across regions. With this backdrop, let me move to our operational and financial performance for the fourth quarter for 6:33 6 minutes, 33 seconds 26. Our crop protection, chemicals and specialtity nutrients business delivered another year of strong growth during FY26 6:41 6 minutes, 41 seconds driven by higher market penetration expanding product portfolio and improved contribution from value added offerings. 6:48 6 minutes, 48 seconds Business continued to witness strong growth in both revenues and margins with contribution increasing by around 27% 6:55 6 minutes, 55 seconds YUI. During FY26, we launched 17 new products in spawning herbicides, fungicides, and insecticides, 7:03 7 minutes, 3 seconds strengthening our presence presence across key crop segments and geography. 7:08 7 minutes, 8 seconds We also continue to build healthy innovation pipeline with 14 new crop protection products and one specialtity 7:15 7 minutes, 15 seconds nutrient product plant for FY27. The biologicals business continued to scale up well with robust increase about 30% 7:23 7 minutes, 23 seconds in volumes and 57% growth in revenues reflecting increased farmer adoption of sustainable agricultural solutions. Utam 7:32 7 minutes, 32 seconds pronam our biogenic nanophosphorus product introduced in Q1 FY25 witnessed significant increase in 7:39 7 minutes, 39 seconds contribution during FY26. The product is developed through a biogenic process and contains 10% P205 with encapsulated 7:47 7 minutes, 47 seconds biomolelecules such as polysaccharides and lipoproteins. 7:51 7 minutes, 51 seconds Two of our biological products Utam Superiza and Utam Pronam have now covered almost 3 million acres since 7:57 7 minutes, 57 seconds launch supported by increasing awareness and field level demonstrations. During the year we also introduced a water 8:04 8 minutes, 4 seconds soluble variant powder variant of thumbs supervisor targeted at precision farming drip irrigation and high value crops. 8:12 8 minutes, 12 seconds Further strengthening the portfolio we've launched four new biological products across fungicide and pneumaticide categories during the year. 8:21 8 minutes, 21 seconds Additionally, we partnered with Terry to establish the CFC at Terry center of excellence for advanced and sustainable agricultural solutions which will focus 8:30 8 minutes, 30 seconds on research and development of next generation agricultural technologies. 8:34 8 minutes, 34 seconds Coming to our seed business, we expanded our portfolio during FY26 with the introduction of new products across wheat, maze, mustard and baja 8:42 8 minutes, 42 seconds categories. The initial farmer response and field performance have been very encouraging and we continue to strengthen our product portfolio. The 8:50 8 minutes, 50 seconds coming year will be increased emphasis on serial and research variety. Our bug fertilizers business delivered a robust 8:58 8 minutes, 58 seconds performance during FY26 despite the volatile. 9:06 9 minutes, 6 seconds Sorry to interrupt in between sir if you're speaking and not audible. 9:18 9 minutes, 18 seconds Sorry to interrupt again sir. You're not audible. 9:26 9 minutes, 26 seconds Ladies and gentlemen, the line for the management has been disconnected. Please stay connected while we join them back. 10:07 10 minutes, 7 seconds Hello. Beautiful. 11:45 11 minutes, 45 seconds ladies and gentlemen, the line for the management has been connected. Over to you, sir. 11:51 11 minutes, 51 seconds Yeah. Coming to our seat business, we expanded our portfolio during FY26 with the introduction of new products across 11:58 11 minutes, 58 seconds wheat, meal, mustard and bajra categories. The initial farmer response and field performance have been very encouraging and we continue to 12:06 12 minutes, 6 seconds strengthen our product portfolio. The coming year will be seeing increased emphasis on serial and research varieties. Our bulk fertilizers 12:14 12 minutes, 14 seconds delivered a robust performance during FY26 despite global volatile operating environment. The 12:21 12 minutes, 21 seconds phosphate and potassic fertilizer portfolio segment performed well during the year supported by effective sourcing strategy and inventory planning and 12:30 12 minutes, 30 seconds timely market placement. We also secured product availability for upcoming karif season despite continued uncertainty in 12:38 12 minutes, 38 seconds global market raw material market and supply chains. in ura volumes for the year were more or less marginally lower 12:46 12 minutes, 46 seconds due to an unscheduled shutdown at one of our plants in quarter 1 which temporarily affected production during 12:53 12 minutes, 53 seconds during FY2 our engagement initiatives through digital platforms and outreach programs 13:00 13 minutes our social media spanded significantly during the year with both Facebook and YouTube platforms crossing 100,000 13:08 13 minutes, 8 seconds subscribers while our YouTube channel received the silver play button recognition. The Chambal Utang Krishak 13:16 13 minutes, 16 seconds Mitra app crossed 100,000 downloads during the year reflecting growing farmer participation and engagement. We 13:23 13 minutes, 23 seconds also conducted multiple digital knowledge sessions, product awareness campaigns and farmer education and initiatives aimed at approving outreach 13:32 13 minutes, 32 seconds and strengthening connect with the farmer farming community. Our technical ammonium nitrate project is s significant progress during FY26 and has 13:40 13 minutes, 40 seconds now entered the commissioning phase. Dry runs for the weak nitric acid plant have commenced and subsequent commissioning 13:47 13 minutes, 47 seconds activities for downstream tan including ANS melt and HDM products are also underway. The pro project is being 13:55 13 minutes, 55 seconds developed using state-of-the-art technology from Kasali, Switzerland and has a capacity of 240,000 metric tons peranom representing Chambul 14:04 14 minutes, 4 seconds strategic entry into industrial mining chemicals making marking another important step in the company's growth 14:11 14 minutes, 11 seconds trajectory. The initiative is aligned with India's broader focus on Atmanar Bat, domestic manufacturing, infrastructure development and energy 14:19 14 minutes, 19 seconds security while also creating a new long-term growth avenue for the company. 14:24 14 minutes, 24 seconds Finally, let me walk you through the details of the financial performance for the period under review on a standalone basis. The fourth quarter financial year 14:32 14 minutes, 32 seconds 2026 revenue from operations grew 14% yearon year to about 2785 crores. A bida 14:40 14 minutes, 40 seconds for the quarters 155 crores up 56% yearon year with a bida margins at 9.16% 14:47 14 minutes, 47 seconds profit after tax was INR45 crores up 46% yearonear with pack margins of 5.22% 14:54 14 minutes, 54 seconds 22%. For the financial year as a whole, ended 2026. Standalone revenue 15:00 15 minutes operations increased 25% yearon year to 20,794 crores. Aida rose 8% yearon year 15:08 15 minutes, 8 seconds to 2,679 crores with AIA margins at about 12.88%. 15:13 15 minutes, 13 seconds Profit after tax for the period grew 18% yearon year to 1,950 crores with part margins at 9.38%. 15:23 15 minutes, 23 seconds uh subsidy receivables and subsidy flows. We received a subsidy of around 248 crores during the quarter as 15:30 15 minutes, 30 seconds compared to 1,592 crores in the corresponding quarter last year. During FY26, our subsidy receipts stood at 15:38 15 minutes, 38 seconds approximately 2 12,276 crores broadly in line with 11,945 crores received in the same period 15:45 15 minutes, 45 seconds during last year. As of 31st March 2026, total receivables stood at about 275 15:52 15 minutes, 52 seconds crores comprising market datas of 121 crores and subsidy receivables of 1,954 crores. Coming to segmental performance, 16:01 16 minutes, 1 second uh, URIA segment delivered stable performance, URIA revenues in the quarter came in about 2,432 16:08 16 minutes, 8 seconds crores, an increase of 8%, a bit margins improved significantly to about 7.83%. 16:14 16 minutes, 14 seconds Sales volume was marginally higher at 6.72 lakh metric tonses as compared to 6.3 lakh metric tons in the same 16:22 16 minutes, 22 seconds quarter. During FY26 we saw a minor decline in the URA segment 16:28 16 minutes, 28 seconds at around revenue being 12,566 crores lower by 5% while abit margins remained steady at 14.6%. 16:37 16 minutes, 37 seconds The sales volumes declined 2% to stand at 34.06 lakh metric tons as compared to 34.6 7 16:45 16 minutes, 45 seconds lakh metric tons last year. In the complex fertilizer segment, revenues increased significantly to about 323 16:52 16 minutes, 52 seconds crores in the quarter, reflecting year-on-year increase of 94%. Sales volume also rose 0.65 16:59 16 minutes, 59 seconds lakh metric tons compared to 0.3 lakh metric. Strong demand and steady increasing adoption of balanced 17:07 17 minutes, 7 seconds fertilizers. Complex fertilizer segment continued to perform outperformed during FY26 with revenues increasing sharply to 17:14 17 minutes, 14 seconds INR 7,025 crores reflecting year-on-year growth of 175% sales volume increased 17:21 17 minutes, 21 seconds 12.31 lakh metric ton during FY26 as compared to 5.64 64 lakh metric tons led 17:28 17 minutes, 28 seconds by strong growth in DAP tsp and NPK fertilizers a bit margin stood at around 4% during FY26 the CPC specialtity 17:37 17 minutes, 37 seconds nutrients and seed segment witnessed a decline in performance in this quarter revenues lower by 21% yearonear 17:46 17 minutes, 46 seconds margins remained healthy for FY26 the segment reserve delivered strong performance revenues increasing by 30% 17:54 17 minutes, 54 seconds yearon year to 1,23 crores as compared to 926 crores in FY25 and EIT margins remained healthy at around 23.5%. 18:04 18 minutes, 4 seconds Our joint venture asset is performing well. The increase in P205 production capacity from 5 lakh metric tons to 7 is expected to be implemented in December 18:13 18 minutes, 13 seconds 26. Further sulfuric acid capacity is also being increased which is 18:20 18 minutes, 20 seconds expected to be implemented a year ahead in FY27. 18:25 18 minutes, 25 seconds Board of directors has recommended a final dividend of rupees INR6 per share totaling to rupees 11 rupees per equity share for FY26. 18:33 18 minutes, 33 seconds Overall FY26 uh reflected resilient execution across our core and value added businesses despite global a volatile global operating environment. 18:44 18 minutes, 44 seconds While the URA business continued to provide operational stability and healthy cash flows, the complex fertilizer segment delivered strong 18:52 18 minutes, 52 seconds growth driven by DAP TSP and NPK volumes. At the same time, our crop protection, chemicals, specialtity, nutrients and biologicals business 19:00 19 minutes continued to scale up well with improving contribution, product expansion and increasing farmer adoption. Progress in technical ammonium 19:07 19 minutes, 7 seconds nitrate project continued investment in sustainable agriculture solutions further strengthen the diversification and long-term growth profile of our 19:16 19 minutes, 16 seconds operating portfolio. With this I would like it hand to back to the moderator and open for question and answer session. Thank you. 19:26 19 minutes, 26 seconds Thank you very much. We will now begin with the question and answer session. 19:31 19 minutes, 31 seconds Anyone who wishes to ask a question may press star and one on the touchstone telephone. If you wish to remove 19:39 19 minutes, 39 seconds yourself from the question queue, you may press star then two. Participants, you are requested to use handsets while 19:46 19 minutes, 46 seconds asking a question. Ladies and gentlemen, we will wait for a moment while the question assembles. 19:56 19 minutes, 56 seconds A reminder to all, you may press star and one to ask a question. 20:06 20 minutes, 6 seconds We will take the first question from the line of Aman Kotari from Aquitas Investments. Please go ahead. 20:12 20 minutes, 12 seconds Yeah. Um am I audible? Hello. Yes, you're audible. 20:17 20 minutes, 17 seconds Yeah. So firstly, congratulations sir on the wonderful set of results. So the first question that I have is uh I think 20:25 20 minutes, 25 seconds the last time we talked uh you said the gas costs were about 20. Can you give us an idea what the current gas costs are looking like for the first quarter? 20:34 20 minutes, 34 seconds They will be around the same number. Uh we are still in the midst of the quarter. Currently what I understand it is 18 plus 18 and a half plus. It may be around the same number. 20:47 20 minutes, 47 seconds Okay. And so this we have seen a jump in receivables. So I think uh we've reached 20:52 20 minutes, 52 seconds almost from 367 to uh 2,00 cr uh to 275 receivables and we have also seen an 21:00 21 minutes increase in short-term borrowing. So can you give us an idea on what those are? 21:06 21 minutes, 6 seconds The these are some short-term uh as far as short-term borrowings are concerned these are small uh cash flow mismatches which happen but they will be eventually 21:15 21 minutes, 15 seconds evened out during the course of the year. the company more or less uh on a stable keel as far as finances are concerned. As you know as far as the 21:24 21 minutes, 24 seconds increase in receivables are concerned uh we have a process called escalation and deescalation. 21:30 21 minutes, 30 seconds Sometimes what happens is that the government have compensated us on a base of a higher gas number. So that continues when you are actually 21:39 21 minutes, 39 seconds consuming at a lower cost then you tend to accumulate cash because you get more subsidy than what you would be actually spending. Reverse starts happening. If 21:48 21 minutes, 48 seconds they have uh drecognized that subsidy or taken it back then you get uh different set of equations and secondly uh as we 21:57 21 minutes, 57 seconds go forward as you know that the prices are going up from the base there will be some amount of escalation which we have taken up with the government to give us uh interim relief in terms of cash flow. 22:07 22 minutes, 7 seconds So I am very hopeful that the government will look into this very favorably. 22:13 22 minutes, 13 seconds But sir, if we see the gas prices elevated for the rest of the year, do you think do you think that this could be a problem uh that could uh pop up and 22:22 22 minutes, 22 seconds continue probably till the end of the year? 22:24 22 minutes, 24 seconds I see there is a cycle for about first of all there is a what they give is a provisional price for the previous which 22:33 22 minutes, 33 seconds is applicable for the next one or two quarters. what we are going to tell them and in fact what the industry is continuously telling them is that there 22:40 22 minutes, 40 seconds has been a dollar increase there's a gas price increase so can you give us interim relief pending final calculations which I think they are very 22:48 22 minutes, 48 seconds sympathetic to hearing too so that's what uh we are we are hopeful that we will be able to manage this issue not a big problem 22:55 22 minutes, 55 seconds okay but sir right now I think you're all aware that government is running a bit thin on its reserves we today saw a 23:03 23 minutes, 3 seconds petrol and diesel price increase we're seeing the the uh you know expenditures that they'll have to make in terms of cost rating and for URA also. So do you 23:12 23 minutes, 12 seconds think that uh situation like uh the last time we had this in 22 23 could arrive let's say in terms of receivables 23:20 23 minutes, 20 seconds bloating up no I don't think that is going to happen this government in particular are very clear that uh fertilizer is a very very 23:29 23 minutes, 29 seconds important sector to support and you have seen the kind of support that they are giving in terms of uh purchasing at very even 23:37 23 minutes, 37 seconds high costs. So they there is a clear focus on farmer being a very important 23:44 23 minutes, 44 seconds element of the economy and so this support I think is likely to continue despite the costs 23:51 23 minutes, 51 seconds and I would hazard a guess as to how much the amount of increase in subsidy is going to be but I hear from uh the 23:59 23 minutes, 59 seconds concerned quarters that whatever it takes is the world line there whatever it takes to support the segment will be available. 24:08 24 minutes, 8 seconds Got it. So for the tan I think 30th April is the com thing and I think you gave the update on the same. So at this 24:15 24 minutes, 15 seconds current year do you see the capacity reaching to 75 80% that we could have done in a year? 24:23 24 minutes, 23 seconds Yes definitely that Mr. Narendra Goyel has promised me that by all means he will 75 80% uh that is his commitment to me. 24:32 24 minutes, 32 seconds Yes Mr. 24:34 24 minutes, 34 seconds So it is his commitment to me and I'm sure that he will meet that commitment and I'm sure that you're aware tan 24:40 24 minutes, 40 seconds prices are up by 40%. We have had Russia also pulling up from uh putting a curb on the tan exports to India. 24:50 24 minutes, 50 seconds We keep a tab on what happening in the market. Mr. Mishra keeps me give me a daily report on what the daily prices of are. 24:58 24 minutes, 58 seconds Sure. Got it. And sir just last question. So this year we had a very good growth in terms of complex fertilizers particularly DAP NTK and 25:06 25 minutes, 6 seconds TSP. So do you think in this year uh in terms of volumes do you see that we'll be able to deliver a growth on this 25:14 25 minutes, 14 seconds because there will be limited availability let's say you said just at the current prices that are elevated. 25:22 25 minutes, 22 seconds So you are very right that this year availability especially in the phosphotic segment is likely to be constrained. We do hope that uh the 25:31 25 minutes, 31 seconds better sense will prevail in terms of it is not a question of production it is a question of logistics. First of all let's understand that we have many ships 25:39 25 minutes, 39 seconds about 28 or 29 ships uh which are stuck up in the hormones they are carrying material they are there loaded up and so 25:46 25 minutes, 46 seconds on. So it is more a question of logistics than production. That is firstly one thing to understand. That means if we have an opening up of the 25:55 25 minutes, 55 seconds hormones in the next 1 month or so even if you take a delayed uh you know uh adjustment because this shipping takes 26:03 26 minutes, 3 seconds some times to adjust in 3 months time things should return to normal. So that is one thing. Secondly, as far as Chambal is concerned, we did make some 26:12 26 minutes, 12 seconds strategic purchases very big I mean in the beginning of the year and we have covered at least July August in terms of our stocks for complex fertilizers. 26:23 26 minutes, 23 seconds Yes. 26:24 26 minutes, 24 seconds Got it. And sir just last question I think in the last corn call you touched upon a new capeex that we could be looking at and a substantial capeex. I 26:32 26 minutes, 32 seconds think there were two three ideas that you guys had in mind. I think first one was the URA new plan that we could set 26:39 26 minutes, 39 seconds up or a tank expansion or a new product line. So is there any uh further guidance you would like to give on the same? 26:49 26 minutes, 49 seconds The only guidance I would give is that the government looking to the situation that is there are very very serious in terms of uh pushing out a policy to 26:58 26 minutes, 58 seconds attract investment and for our uh part we are very ready in the sense that we have land we have the environmental 27:07 27 minutes, 7 seconds clearance I'm happy to report to you on that issue we have the water requirements tied up and we have already 27:14 27 minutes, 14 seconds started talking to the uh technology Some of them some of them have visited our plant. So we are ready the moment 27:23 27 minutes, 23 seconds the government pushes the button within five 6 months we'll be on the block to run to this particular situation. That is one. Secondly they what you talked 27:32 27 minutes, 32 seconds about the tan and so on there will be subsequent developments but we are also ready with that in terms of making an analysis where and how we should put 27:41 27 minutes, 41 seconds that plant. So that is but that is in the works and I will not be able to reveal much more on that. But as far as the fourth plant in terms of URI are 27:49 27 minutes, 49 seconds concerned, we are very very advanced in terms of uh execution of this. Okay. Got it. Thank you so much sir. 27:57 27 minutes, 57 seconds I'll just join back in line. Yeah. 28:03 28 minutes, 3 seconds Thank you. We will take the next question from the line of Prashant from Byani. Please go ahead. 28:12 28 minutes, 12 seconds Yeah. Thank you for the opportunity. Uh sir this quarter we have seen a significant growth in AIDA per ton for 28:19 28 minutes, 19 seconds URA. What has led to this uh sharp jump in the quarter? Uh and how to assertain 28:26 28 minutes, 26 seconds this uh quarterly volatility in aida per ton because for the last three quarters it has been more or less flat but uh we have seen a sudden jump in Q4. 28:38 28 minutes, 38 seconds So it is uh more to do with the product mix. We do know that we do sell a certain amount of ammonia. So we had better margins there. 28:48 28 minutes, 48 seconds How much was the ammonia volume for this quarter? 28:52 28 minutes, 52 seconds Okay, that you will discuss offline with Mr. Anu Jen. 28:58 28 minutes, 58 seconds But it was uh primarily because of uh maybe higher volume and price of ammonia. 29:04 29 minutes, 4 seconds Oh no, it is not not we have there is price increase no doubt. uh and uh of 29:11 29 minutes, 11 seconds course production of uh ura was also there and we have used the sales of ura also was higher by about 30 40,000 tons. 29:20 29 minutes, 20 seconds So all of that taken into but sir uh regarding URA volume two years back same quarter we had more or 29:27 29 minutes, 27 seconds less same number of uh ura sold but our pattern was half also you sometimes what happens is that 29:35 29 minutes, 35 seconds you are doing maybe two plants at that time in terms of uh annual turnaround. So debits of that nature also occurred. 29:42 29 minutes, 42 seconds This year we did uh one plant not two. 29:46 29 minutes, 46 seconds So that uh has impacted although we had planned to do something much earlier uh but we did not do because of gas shortage and so on. So that debit in 29:55 29 minutes, 55 seconds terms of uh the cost of repair and maintenance also when on a smaller base it makes a bigger difference in terms of 30:03 30 minutes, 3 seconds percentages right uh sir uh this entire year we had around 3.4 4 million tons of ura sales. 30:15 30 minutes, 15 seconds Last year it was 3.47. Uh would we be touching around 3.5 uh uh this year? Is that uh is that in the realm of reality? 30:26 30 minutes, 26 seconds So we had we have we have to have we had to have two shutdowns. uh this year was uh in the end of the year and then in 30:34 30 minutes, 34 seconds the beginning of the year we are currently undergoing one shutdown for gadipan one which is slightly longish shutdown which will tend to be happening 30:42 30 minutes, 42 seconds till about June middle June so the number that is there that we are going to do is more or less the same although we'll ramp up and try and ramp up once 30:51 30 minutes, 51 seconds the uh once we have completed the uh turnaround run it at a little higher 30:59 30 minutes, 59 seconds rate we are confident that we will do uh better than last year but we whether we'll touch 35 we will have to uh it's a 31:07 31 minutes, 7 seconds touch and go there but we will definitely uh exceed what we did this year u s how much would be URA inventory with 31:16 31 minutes, 16 seconds the company at the end of 526 31:22 31 minutes, 22 seconds it's about uh 1 lakh 30,000 around okay and it's about quarter one till 31:31 31 minutes, 31 seconds date how much of our quarterly requirement of gas for all the three plants combined we are getting from the 31:38 31 minutes, 38 seconds government or from the uh Gale and others no we have no issues in terms of gas 31:46 31 minutes, 46 seconds availability as of now thanks to very active procurement by the government for which I should thank them they have 31:53 31 minutes, 53 seconds really been proactive on this issue uh I'll jump back to 32:02 32 minutes, 2 seconds Thank you. We will take the next question from the line of Manus Baker from SR equities. Please go ahead. 32:09 32 minutes, 9 seconds Uh yes, thanks for the opportunity. Uh so as we commission the plan so can you 32:16 32 minutes, 16 seconds throw some light on the plan and WA as this will be the important chapter for the CFC for the future growth. So can 32:25 32 minutes, 25 seconds you give some idea about what will be the margin range for the tank when we will operate at the full capacity and how does the market for the tan looks like. 32:36 32 minutes, 36 seconds So I'll start with the last question first. The market for tan is buoyant. I would say the demand is there and you 32:45 32 minutes, 45 seconds know that the continued emphasis on uh mining and infrastructure and all that is a strong growth driver for this 32:54 32 minutes, 54 seconds particular uh uh for this particular uh segment of 33:00 33 minutes the market. So my view is that uh we for this year at least uh we do not have uh 33:10 33 minutes, 10 seconds any issues in terms of the demand and uh as somebody just said before this uh the 33:17 33 minutes, 17 seconds questioner before this had made the comment about Russia not uh supplying uh so that the import market is also a 33:25 33 minutes, 25 seconds little short. So on this basis uh I don't think there is an issue in terms of the demand as well. Second part that 33:33 33 minutes, 33 seconds you questioned in terms of what would be the aida I think our budgeted numbers are very well there in fact they will be 33:40 33 minutes, 40 seconds exceeded in terms of what the margins could be and that's my feeling at the moment. 33:48 33 minutes, 48 seconds Oh, for sure. And secondly, are we expecting the high working capital requirement for next quarter due to this 33:56 33 minutes, 56 seconds high gas prices? Because as you mentioned in the starting comment that the government increased the price for 34:03 34 minutes, 3 seconds the subsidiary by 12%. Is it par with our cost we incur or it is below our cost? 34:13 34 minutes, 13 seconds No, I uh if I could understand what you're saying Mr. Baker is that you are talking about the India price or you are 34:21 34 minutes, 21 seconds talking about the NPK. 34:27 34 minutes, 27 seconds So as I if you understand this business is basically a cost plus kind of business. So government recognizes the 34:35 34 minutes, 35 seconds cost uh and therefore in terms of higher prices of gas uh except for that impact 34:41 34 minutes, 41 seconds on working capital we are able to pass on the cost to the government in the form of subsidy increased subsidy so it would not be a problem for us. 34:52 34 minutes, 52 seconds Oh sure that's from all this for the Thank you. 35:00 35 minutes Thank you. Before we take the next question, a reminder to all. You may press star and one to ask a question. 35:09 35 minutes, 9 seconds We have the next question from the line of Sep Mukharji from SKP Securities Limited. Please go ahead. 35:16 35 minutes, 16 seconds Hi sir, thanks for taking my question. 35:18 35 minutes, 18 seconds Uh sir, uh what was the actual Gal of G1 and G2 and G3? G1 plus G2 and G3 35:27 35 minutes, 27 seconds for the potter for the full year. Sorry. Could you repeat that please? 35:33 35 minutes, 33 seconds Sir, what was the uh actual energy consumption decal per metric ton for G1 and G2 and G3 for the year? 35:43 35 minutes, 43 seconds Definitely below the government uh norms by percentage good percentage. So 35:50 35 minutes, 50 seconds normally we do not reveal these numbers publicly but we are well below the uh established norms. Therefore, a certain amount of energy gain does acrue to us. 36:02 36 minutes, 2 seconds Right sir and uh and sir uh can you tell the sales volume of G1, G2, G3 for the quarter? 36:13 36 minutes, 13 seconds I will ask Mr. Anojen to answer this question. 36:16 36 minutes, 16 seconds Uh sales volume for the quarter in the quarter G1 was 2.67 67 lakh turn. G2 is 36:24 36 minutes, 24 seconds 1.52 lakh and G3 is 2.53 lakh. 36:30 36 minutes, 30 seconds Okay sir. Okay sir. Thank you. Thank you very much. 36:37 36 minutes, 37 seconds Thank you. We will take the next question from the line of Bashal Takur from Balaji Investment. Please go ahead. 36:44 36 minutes, 44 seconds Yeah. Yeah. Good morning sir. Uh I just wanted to ask you about uh with the current capacity new capacity coming up. 36:51 36 minutes, 51 seconds Can you give me some guidance about the turnover you're expecting in this financial year? 36:57 36 minutes, 57 seconds Which which uh uh the new the new expansion you done which is coming up today. Uh the the production is going to start today. 37:08 37 minutes, 8 seconds That you are talking about 10 tan. Yeah. 10. Yeah. 37:11 37 minutes, 11 seconds Yeah. Yeah. So tan we normally our production level is about 700 tons per day and assuming that we are able to start 37:20 37 minutes, 20 seconds uh we'll start with WNA production nitric acid nitric acid and then it goes to melt production and then it goes to H10 which 37:29 37 minutes, 29 seconds will come by the end of the month or little bit later than that. So let's assume that we have got uh uh about 9 37:36 37 minutes, 36 seconds months production to be very conservative. So we are saying that we have uh roughly about uh 37:44 37 minutes, 44 seconds uh 1 lakh 60 1 lakh 70,000 tons of production would be possible. 37:50 37 minutes, 50 seconds So if I can you give me some revenue guidance roughly I can I it can add to the that this is a very volatile product in 37:59 37 minutes, 59 seconds terms of pricing somebody just said that the 10 prices are up by 40%. 38:05 38 minutes, 5 seconds Normally they used to so it will revenue guidance is dependent on what the number is budgeted number normally for this is 38:13 38 minutes, 13 seconds about uh 38 about 37 38,000 rupees a ton that is the 38:22 38 minutes, 22 seconds normal number that you might think about okay thank you and uh are you also looking at this year any buyback uh also 38:31 38 minutes, 31 seconds you're thinking about coming up with buyback because we do uh promoters buy back the shares in last quarter. So are you looking at buyback and considering buyback? 38:41 38 minutes, 41 seconds There's no such there's no such proposal on the table as well. Thank you so much. 38:50 38 minutes, 50 seconds Thank you. We will take the next question from the line of Vaj from Simple. Please go ahead. 38:57 38 minutes, 57 seconds Yeah. First question is on the tan. uh would we be able to reach a 60 70% or 39:04 39 minutes, 4 seconds even higher utilization in the first year itself and any color on the market dynamics uh you know given challenges on 39:12 39 minutes, 12 seconds imports of that into the market so is the market right now very tight or you know how would you describe the market 39:19 39 minutes, 19 seconds structure right now market at the moment is short I think the people want material 39:26 39 minutes, 26 seconds and uh in fact the sooner we get it to the market the better. That's what the question uh issue is. So that is one. 39:34 39 minutes, 34 seconds The second is that going forward it depends on what the geopolitical 39:40 39 minutes, 40 seconds situation pans out at and what will be the stance of Russia in terms of exports and but I can say that there's an 39:48 39 minutes, 48 seconds underlying growth in about 6 to 7% in the explosive segment and therefore that translates back into ammonium nitrate uh 39:57 39 minutes, 57 seconds increase is about 6 to 7% and uh it's a healthy growth I would say given that we 40:03 40 minutes, 3 seconds are already at 1.2 million tons or so of demand. So if we are saying 6 7% growth 40:10 40 minutes, 10 seconds we are talking about 70,000 tons per year add on year or year that kind of number. So uh as of now I don't think it 40:19 40 minutes, 19 seconds is more a question of how we produce and how we place it in the market and what is our uh connect with the customers and 40:27 40 minutes, 27 seconds so on. there's enough room for everybody to play at the home. 40:32 40 minutes, 32 seconds So in the first year should we accept or close to full utilization or and even in regard to your 40:40 40 minutes, 40 seconds that we know how to run continuous process uh chemical plants. Uh it all depends on how we uh successfully 40:49 40 minutes, 49 seconds commission it which I'm very hopeful that we will be doing it. uh we have the best technology we have a brand new 40:56 40 minutes, 56 seconds equipment and uh we have a competent uh team to operate it so I don't see in terms of production why we should have 41:03 41 minutes, 3 seconds an issue that's certainly not a concern and in terms of uh key feed stock and 41:10 41 minutes, 10 seconds raw material availability especially for ura or be it for tank uh do you think you are covered well for the karif and 41:20 41 minutes, 20 seconds I couldn't get you but I thought you were Talking about raw material availability for this is basically ammonia and ammonia is self- prodduced 41:28 41 minutes, 28 seconds in our case because we have got uh uh three plants producing ammonia and we have about four 3 to four 5% surplus on 41:37 41 minutes, 37 seconds account of uh technical reasons. So we don't see any shortfall coming from that 41:43 41 minutes, 43 seconds side as far as tan is concerned. So we are there in terms of uh quantities for 41:51 41 minutes, 51 seconds matching quantities for ammonia on ura sir on ura of course gas is the main uh 41:59 41 minutes, 59 seconds component we first make ammonia then we make ura so as I've told you that the government are very proactive in getting 42:06 42 minutes, 6 seconds the uh gas for the uh plants fertilizer plants so that I don't think is also a 42:15 42 minutes, 15 seconds constraint It's only a question of price. 42:18 42 minutes, 18 seconds Okay. Got it. But given where the prices are for ura and ammonia, uh do you think that you know it won't 42:26 42 minutes, 26 seconds be enimmerative for you to produce uh you know above RC you know uh any color you can give? 42:34 42 minutes, 34 seconds No, I would suggest that you also have a look at where the IP for URI is. It is $900 sir. 42:43 42 minutes, 43 seconds way way above. So this is not a problem in terms of production beyond the RSC. 42:51 42 minutes, 51 seconds Okay. Thank you. 42:56 42 minutes, 56 seconds Thank you. We will take the next follow-up question from the line of Aman Gotari from Aquitas Investments. Please go ahead. 43:04 43 minutes, 4 seconds Yeah. Hi sir. Uh so sir uh I think um you had mentioned some cost structure and how we would be going about URA 43:12 43 minutes, 12 seconds plant. So can you just help me understand if we are potentially setting up a new ura plant how would the project cost go and how would we look at funding it? 43:24 43 minutes, 24 seconds See we have uh checked around and what has been happening in the sector lately 43:32 43 minutes, 32 seconds the prices will be 9 and a half th000 tons uh 9 and a half,000 crores to 10,000 crores that is the upper bound as 43:41 43 minutes, 41 seconds far as brownfield projects are concerned about 1.4 uh for 1.3 million tons roughly the same 43:51 43 minutes, 51 seconds now that uh you know the balance sheet of Chumbul so I don't think there is much of a challenge in funding that that 44:00 44 minutes is one yes second of all in terms of the government policy now that is the open question what exactly they are going to offer on 44:09 44 minutes, 9 seconds the plate but whatever other information that we have and we have been discussing it's a doable project for this. 44:22 44 minutes, 22 seconds Thank you. Before we take the next question, a reminder to all you may press star and one to ask a question. 44:31 44 minutes, 31 seconds We will take the next follow-up question from the line of Prashant from B. Please go ahead. 44:37 44 minutes, 37 seconds U sir uh what would be the capeex number for FI27 and what would be the areas of investment? 44:46 44 minutes, 46 seconds FY27 there would be some balance uh uh expense on account of uh the tan project 44:53 44 minutes, 53 seconds of course and plus there would be the normal routine capex of the order of about 170 180 crores which is there 45:02 45 minutes, 2 seconds which are uh in terms of either replacement or new more efficient equipment such as for instance steam turbines or CO2 compressors and so on. 45:12 45 minutes, 12 seconds So those are the standard kind of 160 170 crores that we spend and what is the balancing amount in 10 45:23 45 minutes, 23 seconds total put together should be around 500 crores balance I mean fury and tan put together 45:30 45 minutes, 30 seconds okay uh sir uh once we commission WNA uh we would be taking some time to start 45:38 45 minutes, 38 seconds ANS and HDAN so is it that uh we will store WNA till the time we produce HD or we will sell WNA in the market. 45:49 45 minutes, 49 seconds Obviously, we'll sell it in the market. 45:51 45 minutes, 51 seconds There's a ready and uh good market for WNA at the moment, but I don't think there is uh yes, you're right that there 46:00 46 minutes is a sequential uh commissioning in this process. Our plants on both sides are more or less ready but as you know that 46:08 46 minutes, 8 seconds we have to run do dry runs both sides and then commission and so on. So it will take a little bit of time but we are we are there as far as the most 46:17 46 minutes, 17 seconds important component of the plant is double right u so have we also evaluated making 46:26 46 minutes, 26 seconds automotive grade ura uh while you know it does not come under the subsidy regime but uh 75% of India's requirement 46:35 46 minutes, 35 seconds is imported so any thoughts if you have ever evaluated uh this we are no it It's definitely possible 46:43 46 minutes, 43 seconds with our plants at least one stream or two streams we can take out to do that and we are in fact uh having some very 46:51 46 minutes, 51 seconds very preliminary discussions on this issue and uh we are telling the government also that you should allow us 46:58 46 minutes, 58 seconds to do this technical technical grade ura for automative purpose but it is very nent I would not 47:05 47 minutes, 5 seconds uh put any uh uh you know I won't give a timeline onto That depends on government policy. 47:16 47 minutes, 16 seconds We would require government approval because gas has to be supplied through them. Is that Yeah. Yeah. Obviously. Obviously this is 47:23 47 minutes, 23 seconds a uh requirement that they would uh allow us like they have allowed for instance GNFC and GSFC to do that. 47:33 47 minutes, 33 seconds Is there any clarity on uh G3 profitability starting next calendar year? 47:40 47 minutes, 40 seconds Uh what I can say is that what I said last time that the government are seized of the matter. The file has started. We have had one or two preliminary 47:48 47 minutes, 48 seconds discussions too premature to give you any uh guidance on this but it is moving 47:55 47 minutes, 55 seconds that much I can say because we are to be in this regime from December 1st onwards. Government are quite aware currently they are a little busy with 48:04 48 minutes, 4 seconds other things as you know in terms of sourcing and so on. I'm sure within the fullness of time maybe within maybe a 48:12 48 minutes, 12 seconds month or so we will engage more uh effectively with the government on 48:19 48 minutes, 19 seconds and uh just lastly how much would be the net cash on balance sheet uh I think at the end of the year we 48:27 48 minutes, 27 seconds were balanced with both uh I think it was 000 almost that cash was uh whatever cash on the books was more or less 48:36 48 minutes, 36 seconds counter uh by the amount of short-term borrowing. Somebody asked that question in the very beginning but this is a 48:43 48 minutes, 43 seconds fluctuating number uh once our subsidies get released in the first quarter and so on. So this will go down and I'm sure we 48:50 48 minutes, 50 seconds are already surplus as Anoj informs me we're already surplus. 48:57 48 minutes, 57 seconds Okay sir, thank you so much for your time. 49:03 49 minutes, 3 seconds Thank you. We will take the next follow-up question from the line of Aman Kotari from Alcatas Investments. Please go ahead. 49:11 49 minutes, 11 seconds Sir, I think uh we had also mentioned something about setting up a phosphatic fertilizer business primarily in a 49:20 49 minutes, 20 seconds manufacturing side. So has there been a push by the government that you have seen for you know increasing these capacities also? 49:29 49 minutes, 29 seconds You see government are I know informally talking I cannot say anything about this and it would not be proper for me to say 49:37 49 minutes, 37 seconds this that they are thinking of something on this area as well but we have uh as I've said in terms of phosphhatic capacity we are and we remain very keen 49:46 49 minutes, 46 seconds on this but there are two or three important issues which need to be sorted out in this sector uh apart from of 49:53 49 minutes, 53 seconds course the scale and the value is huh the gap rising I I couldn't get what did you say? 50:03 50 minutes, 3 seconds Yeah, I just meant that DAP pricing is also an issue. 50:07 50 minutes, 7 seconds No, DAP pricing is definitely an issue but more than that are issues with respect to uh GST for instance in this 50:14 50 minutes, 14 seconds sector which is uh quite a uh problematic area which they have to sort out. We have been at it for quite some 50:22 50 minutes, 22 seconds time with them. That's a tax issue which is easily sorted but they have to rework their entire uh GST around uh this 50:30 50 minutes, 30 seconds particular sector. That is one part. The second part is the the uh upfront investment visa v the value ad which you 50:38 50 minutes, 38 seconds rightly said is suppressed because of uh controlled pricing. So we'll have to see a situation where we are relatively free 50:46 50 minutes, 46 seconds in terms of pricing power before we can take this forward. 50:51 50 minutes, 51 seconds uh these two things I think are the important issues which we are waiting for in terms of production in land but 50:58 50 minutes, 58 seconds our uh thoughts are not only limited to India by the way. So that uh that is something that uh as we have sent hinted 51:07 51 minutes, 7 seconds in the past uh this is something that remains an ongoing uh issue. We have had 51:13 51 minutes, 13 seconds one or two engagements with somebody who could provide us uh possibilities 51:20 51 minutes, 20 seconds outside India and that is an ongoing uh affair. Uh at the moment uh we have had 51:27 51 minutes, 27 seconds a break off due to this Gulf war situation and all that but we are ready to engage at uh some point of time in very near future on this issue. 51:37 51 minutes, 37 seconds So that would be a JV kind of a structure that we'll be looking outside. Yes sir. Got it. 51:46 51 minutes, 46 seconds And sir, last question on the CPC and biologic segment. I know we are gearing up with product launches for this year. 51:53 51 minutes, 53 seconds What do you think uh is the strategy or the outlook that we have for this segment. How big do you think that we can get it in the next 2 three years 52:02 52 minutes, 2 seconds considering I think last quarter you mentioned multiple uh international companies that you were talking to Nutrien, Cava, Singene. So how are you thinking about this segment? 52:13 52 minutes, 13 seconds So I'll tell you that nutrient are already more or less uh done in terms of engagements. We have got uh transform 52:20 52 minutes, 20 seconds agreements more or less in place. So we'll be starting with their products uh very soon. But those will be potach products. 52:29 52 minutes, 29 seconds No, no, they are specialized uh nutrient use efficiency products very high. 52:36 52 minutes, 36 seconds Yeah, those are as you say you see somebody should understand that the agriculture is moving in a different direction. 52:43 52 minutes, 43 seconds It is no longer bulk. It is more precision. It is more specific to soil conditions. It is also very specific to 52:51 52 minutes, 51 seconds nutrient use efficiency and uh application uh uh capabilities. So we 52:58 52 minutes, 58 seconds have to now move from uh very uh generic to kind of specialized uh uh agricultural uh inputs. So that is the 53:07 53 minutes, 7 seconds way it is going and we have to work with uh some of the international companies to bring products that really work and one of them is what we are going to do. 53:16 53 minutes, 16 seconds It's called I think utam carbonis or something which we are coming with with nutrient it's uh content to increase the 53:24 53 minutes, 24 seconds carbon content in the soil. It will improve the nutrient use efficiency. So these kind of products plus cot we are 53:31 53 minutes, 31 seconds already there with them in terms of some of their products we are already co-arketing. 53:38 53 minutes, 38 seconds Got it. And sir how big do you think this could get for us in terms of our router? 53:44 53 minutes, 44 seconds Well, if we if we when we were talking through nutrient uh they said that look what is the total 53:52 53 minutes, 52 seconds market in India and we indicated in the region of $1 billion by the next five years. So you can understand what kind 54:00 54 minutes of percentage they would be looking for 10% would make a very large number. Yeah. 54:08 54 minutes, 8 seconds Got it sir. Thank you. Thank you sir. 54:13 54 minutes, 13 seconds Thank you ladies and gentlemen. You may press star and one to ask a question. 54:26 54 minutes, 26 seconds A reminder to all you may press star and one to ask a question. 54:39 54 minutes, 39 seconds Thank you very much. As there are no further questions from the participants, I now hand the conference back to the management for closing comments. 54:49 54 minutes, 49 seconds Thank you Purwangi. 54:54 54 minutes, 54 seconds I would like to thank you all for joining the call today and hope you were able to address all your queries. If you have any further questions, you can 55:02 55 minutes, 2 seconds reach out to our our partners at Valoram Advisers. Thank you once again for participating in the 55:10 55 minutes, 10 seconds Thank you members of the management. On behalf of Valve Advisers, that concludes this conference. Thank you all for joining us and you may now disconnect your lines. 55:20 55 minutes, 20 seconds Thank you. Thank you. Thank you.