Chembond Chemicals Limited — Q4 FY26

Chembond Chemicals Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=0dNQGWTA8Do Published: 4 hours ago

0:01 1 second Good afternoon everyone. On behalf of company, I would like to welcome you all the Kimborn chemicals second analyst 0:09 9 seconds investor for quarter 4 and half year second for financial year 2526. 0:18 18 seconds Today on this meet we have with us from the management Mr. Nimal Minosha, chairman and managing director, Mrs. 0:27 27 seconds Prai Maharik chief financial officer and myself Kiran Mukadam company secretary and compliance officer of the company. 0:36 36 seconds We will begin with the meeting meeting with the brief opening remark followed by the presentation of the financial result. After the presentation we will proceed to a question answer session. 0:49 49 seconds Participant who wish to ask question can click on the question answer icon on the bottom of your screen and post your question here. 0:59 59 seconds We request all participant to keep their microphone muted during the opening remark and the presentation to ensure a smooth and uninterrupted session. 1:10 1 minute, 10 seconds Please note that certain statement made during this meet may be forward-looking in nature. Such forward-looking 1:18 1 minute, 18 seconds statement are subject to certain risk and uncert uncertainties that could cause the actual result or projection to differ materially from those statement. 1:29 1 minute, 29 seconds Kmon chemical will not be in any way responsible for any action taken based on such statement and undertake no 1:38 1 minute, 38 seconds obligation to publicly update this forward-looking statement. I would like now hand over the m to Mr. 1:46 1 minute, 46 seconds Nirmal Sha for it opening remman. Thank you sir. Over to you. 1:51 1 minute, 51 seconds Hello everyone. It's a Saturday afternoon. So whether it's a good siesta time or should I say wake up everybody 2:01 2 minutes, 1 second uh time will tell us. So welcome to this uh second investor meet and presentation that we're having. Uh we just concluded 2:10 2 minutes, 10 seconds our board meeting a few minutes ago and uh we have a set of numbers that have been uploaded on the website. Our uh aim 2:19 2 minutes, 19 seconds today is to uh for the new members joining this call quickly walk you through uh the company's businesses and its activities. It won't take too long. 2:30 2 minutes, 30 seconds uh provide uh some updates on the financials uh hopefully preempting any of your questions on those fronts and uh 2:38 2 minutes, 38 seconds then we'll you know have an open house uh with some questions and we'll try to put some context uh I'm sure many of you 2:47 2 minutes, 47 seconds might have some uh questions queries or comments u some concerns so please do 2:55 2 minutes, 55 seconds feel free to uh express them at the appropriate time. Uh Kiran, can you 3:02 3 minutes, 2 seconds please put up the presentation uh the company presentation? Okay, sir. 3:15 3 minutes, 15 seconds Miss Madik is uh along with me here and so she'll also step in at the appropriate time. 3:28 3 minutes, 28 seconds Yes. Yeah. Can you please move on next slide? 3:39 3 minutes, 39 seconds Yeah. 3:41 3 minutes, 41 seconds So, uh a quick uh round up. We are an old company 50 years old 51 years 3:48 3 minutes, 48 seconds actually. Now we have a 950 uh team size. This 290 kores is for the previous 3:56 3 minutes, 56 seconds financial year. We intend to update this presentation. 4:02 4 minutes, 2 seconds Couldn't do it earlier because the announcements to the stock exchange just happened few minutes ago. We operate three manufacturing 4:11 4 minutes, 11 seconds locations. Um as you know we underwent a de merger in the financial year under review and uh we are now uh the new 4:20 4 minutes, 20 seconds entity Chem Chemicals Limited uh which was Chemond Chemical Specialties Limited is also listed on the NSE and PSC. 4:37 4 minutes, 37 seconds Uh our board of directors is a mix of uh experienced uh young and uh very 4:45 4 minutes, 45 seconds knowledgeable uh people. U professor Niruda Pandit is the vice chancellor of 4:52 4 minutes, 52 seconds ICT and professor of repute and standing. Uh Mrs. Paraskar she's the 4:59 4 minutes, 59 seconds independent uh woman director on board a marketing and HR uh professional. Uh Mr. 5:06 5 minutes, 6 seconds Galani is uh a solicitor of long-standing uh and Sushi Lakhani he's a chartered 5:15 5 minutes, 15 seconds accountant and uh also on various panels of international taxation. Mr. Samisha 5:22 5 minutes, 22 seconds and Malsha both of us are promoter directors and post this de merger 5:30 5 minutes, 30 seconds I'm I've assumed the chair and uh Sami continues to be the director. 5:39 5 minutes, 39 seconds Next slide please. 5:43 5 minutes, 43 seconds Um so I just take a moment to orient you. This is the bottom the base on which we've built Kembond over the 5:52 5 minutes, 52 seconds years. Uh we it's not just something of a statement that we provide. We believe that the customer is a priority for us 6:00 6 minutes and uh that not just by saying that but we want to deliver a lot of value and do it in a very committed way. So we 6:07 6 minutes, 7 seconds understand that every customer is investing his uh money and we owe it to ourselves to deliver um um you know a 6:16 6 minutes, 16 seconds good uh uh service to them. So that's what we do. 6:22 6 minutes, 22 seconds Uh supplier of choice is again we don't want to impose ourselves on customers but we aim to be adopted by them and 6:31 6 minutes, 31 seconds choose us as their uh suppliers of choice. We remain committed to growing 6:37 6 minutes, 37 seconds uh continuously by learning and u being aware of our surroundings at all times. 6:45 6 minutes, 45 seconds Uh power of innovation is another aspect that's always been there whether it's in processes in products in technologies. 6:53 6 minutes, 53 seconds Uh something that we want to harness to stay relevant at all times. We want to keep improving, get better at what we do 7:01 7 minutes, 1 second and thus the setting higher standards is you know a core value and everything we understand is not done on our own. It's 7:10 7 minutes, 10 seconds all about collaboration um and working towards the customers and partners common objectives. uh usually those are 7:19 7 minutes, 19 seconds of getting better value, good quality and working towards increasingly now more important is also delivering a 7:27 7 minutes, 27 seconds friendlier environment. So these are the six foundational uh and uh principles of Kembond right since the early days and 7:36 7 minutes, 36 seconds we uh stand committed to always uh keeping these in our sites. 7:44 7 minutes, 44 seconds Yeah. Next slide please. 7:47 7 minutes, 47 seconds Uh these are our businesses. We operate across four segments. Uh water technologies is by far the largest. Uh 7:54 7 minutes, 54 seconds construction chemicals and distributions are the other two larger businesses. And the cleaning and hygiene is a smaller business that is a JV with a German 8:03 8 minutes, 3 seconds company called Kalvatus and we are still uh you know uh working hard to get some more traction in this business. Yes. 8:11 8 minutes, 11 seconds Next slide please. 8:13 8 minutes, 13 seconds uh we'll talk a little more on the water technologies in the following three four slides. Yes. 8:20 8 minutes, 20 seconds So what we do is we provide chemicals uh specialty products. These are formulated to solve certain problems that a 8:28 8 minutes, 28 seconds customer faces. These problems are um identified by our team by doing a lot of work in the field uh analyzing the water 8:37 8 minutes, 37 seconds quality at the customer's location and coming up with a recommendation that can solve pretty much like a doctor who 8:44 8 minutes, 44 seconds would uh you know give uh a prescription on the basis of some blood test. So it's something similar. We also do uh 8:53 8 minutes, 53 seconds equipment uh solutions uh more complimentary rather than being our primary focus. Uh so if it's about 9:01 9 minutes, 1 second improving the cycles of concentration or better feed control of products or uh better water quality in the 9:09 9 minutes, 9 seconds recirculation circuit. So those are solutions that we work with. Uh and then 9:16 9 minutes, 16 seconds we a newer business not really new but uh something that's uh having tremendous potential right now is the wastewater 9:23 9 minutes, 23 seconds remediation using uh microbial cultures and enzyme systems. So that's something that uh complements so and it's a triad 9:32 9 minutes, 32 seconds of solutions and all of these are backed by a very dedicated technical team um and capabilities like uh remote 9:41 9 minutes, 41 seconds monitoring online feed and uh data logging capabilities. Yes, next slide please. 9:50 9 minutes, 50 seconds So we treat cooling towers, we treat boilers, we treat uh you know intake water that's whether it's borewell, it's 9:58 9 minutes, 58 seconds a lake or it's a municipal water. We work with clarification of that water. 10:04 10 minutes, 4 seconds Affluent treatment is the last leg of any industrial process where the waste water is treated and either for recovery 10:13 10 minutes, 13 seconds or for final discharge. uh within these we also then encounter situations of foaming. So we have foam control 10:21 10 minutes, 21 seconds solutions. We have RO membrane treatments uh that prevent fouling on membranes and elongate uh their life. Uh 10:30 10 minutes, 30 seconds AHU finan disinfection are uh uh additional businesses that um we're growing. We're 10:39 10 minutes, 39 seconds seeing some um pickup in this segment especially driven by a lot of data centers and commercial buildings having 10:47 10 minutes, 47 seconds significantly large ahus in place. Next slide please. 10:54 10 minutes, 54 seconds Um this is a cross-section of industries uh that we serve. Every segment that you 11:01 11 minutes, 1 second can see that will use water will need our products. So our customers come from all of these segments. uh and a few more which we would have left out. 11:12 11 minutes, 12 seconds Next slide please. 11:14 11 minutes, 14 seconds Uh talking about our water BU this uh second half. Uh so first H1 we did our review earlier in the year. Um so our 11:24 11 minutes, 24 seconds revenues in this year are uh higher by 34% approximately. Uh so we clocked 162 11:33 11 minutes, 33 seconds lakhs of sales uh um in this last six months and we also hit our highest 11:40 11 minutes, 40 seconds revenue ever in single month in March of about 30 32 Kores. Um so Raji please feel free to step in. 11:51 11 minutes, 51 seconds Hi good afternoon all. So yes revenue as compared half year first half year to 11:58 11 minutes, 58 seconds second half year. So 162 crores in second half year and volume growth from 9905 in terms of metric tons it has 12:07 12 minutes, 7 seconds grown to 4813 metric tons. So 50% increase in terms of volume for our water business 12:16 12 minutes, 16 seconds and most of this is carrying forward. So we're starting this financial year with a strong order book for our chemicals 12:22 12 minutes, 22 seconds business also. uh equipment systems are of course on the order book we have but even the chemicals we have contracts 12:30 12 minutes, 30 seconds running u till late in this financial year before they come up for uh renewal. 12:38 12 minutes, 38 seconds Yeah, next slide please. 12:42 12 minutes, 42 seconds Uh in the construction chemicals business uh we do ad mixtures for concrete modification, sealants, waterproofing. So it's the entire gamut 12:50 12 minutes, 50 seconds of solutions for the construction industry. Um our focus has been on infrastructure um predominantly a lot of 12:59 12 minutes, 59 seconds uh so some achievements of the year were that our products are certified for use in all u MSIDC projects. So and we've 13:08 13 minutes, 8 seconds already had about four or five contracts post that approval. uh sealants we are seeing a significant growth and we um 13:17 13 minutes, 17 seconds intend to consolidate consolidate our presence in that segment uh through our polyulfide and PU sealants that's a 13:25 13 minutes, 25 seconds strong growing area for us uh waterproofing and repair motors uh waterproofing is a little crowded space 13:32 13 minutes, 32 seconds and some large names already dominate the retail space so it's something that we do as we get projects with a 13:40 13 minutes, 40 seconds comprehensive uh solution um as you know a ser service provider 13:47 13 minutes, 47 seconds repair motors yeah they are powder products so distance from manufacturing is uh a hurdle so outsourced 13:54 13 minutes, 54 seconds manufacturing is what we're doing currently and we'll continue to expand that network to reach further away next 14:02 14 minutes, 2 seconds slide away um so these are the segments everywhere you see construction u is a potential 14:10 14 minutes, 10 seconds site So uh every building, every bridge, every dam, every airport uh or a road 14:16 14 minutes, 16 seconds would be um a potential customer for construction chemicals. Next slide. 14:25 14 minutes, 25 seconds Coming to numbers on construction chemicals. So first half year was 11 crores and second half we were at 13 14:32 14 minutes, 32 seconds crores. So this is a 20% increase over first half year. In first half year our quarter two was slow on account of 14:41 14 minutes, 41 seconds monsoon but uh yes quarter 3 and quarter four picked up. In terms of volume first 14:48 14 minutes, 48 seconds half we were at 1988 metric t of volume it increased by 30%. So in second half we were at 2590 metric tons of volume. 15:00 15 minutes We are maintaining a tight credit policy and our day sales outstanding for construction chemicals is around 88 days as on 31st of March 2026. 15:13 15 minutes, 13 seconds Customer bases are increasing uh especially in Maharashtra and Gujarat region. So we have uh dealers, 15:21 15 minutes, 21 seconds distributors uh which have grown in these two regions and also few projects wherein we have taken up. we have got 15:30 15 minutes, 30 seconds approvals from major key agencies. So wherein we are approved vendors and so uh getting orders have become the more 15:39 15 minutes, 39 seconds yeah I'll just add that in this segment uh we are operating at a PBT of about 20 odd% which is the I mean I've I've not 15:48 15 minutes, 48 seconds known any of our peers in the industry operating at those levels. Of course, it's at a small base, sales base, but it 15:57 15 minutes, 57 seconds gives you an idea as to we're making up with the bottom line. Uh even if uh sales are not a very large part of the overall consolidated sales that we have. 16:10 16 minutes, 10 seconds Next slide, please. Yes. 16:17 16 minutes, 17 seconds So in a cleaning and hygiene business, it's a JV between Kembond and Kalwatis. 16:22 16 minutes, 22 seconds We do uh various treatments like a clean in place, we do disinfection, we do 16:29 16 minutes, 29 seconds fryer cleaning, we do milk tank, uh vertical storage tank, uh wall cleaning. 16:35 16 minutes, 35 seconds So we have products that are used in all these applications in bottle washing in uh lubricant lubricants for large 16:43 16 minutes, 43 seconds conveyor lines for any bottling or packaging plant. Um in the institutional segment we have uh the professional 16:52 16 minutes, 52 seconds series of products uh that are in uh smaller packs and more attuned to for use in kitchens, laundry and 17:01 17 minutes, 1 second housekeeping departments of uh hotels, hospitals, restaurants, um malls etc. 17:10 17 minutes, 10 seconds Next slide please. 17:13 17 minutes, 13 seconds Um so it's all of these uh what we consume um is a typical way to explain uh where cleaning and hygiene products 17:21 17 minutes, 21 seconds have application. So whether it's food, beverage, milk, u anything of that sort or what we wear and where we live. So 17:30 17 minutes, 30 seconds housekeeping and laundry. Yes. Next slide please. 17:36 17 minutes, 36 seconds In the distribution business, we import and trade um a lot of uh specialty 17:42 17 minutes, 42 seconds chemicals. So we have four product lines. Uh various additives for 17:49 17 minutes, 49 seconds water treatment, various additives for construction chemicals, typically dry motor industry. Uh we stock and sell 17:56 17 minutes, 56 seconds additives for paints and inks and then we have some uh polymers and uh um 18:04 18 minutes, 4 seconds sealants which we don't manufacture but then we import and sell. Next slide. 18:12 18 minutes, 12 seconds Uh coming to numbers on con chemond distribution. So in half year first half year we were at 9 crores in second half 18:21 18 minutes, 21 seconds year we were at 12.5 crores. So combon distribution contributed to 21 crores in 18:28 18 minutes, 28 seconds terms of revenue. In terms of volume for first half year we were 594 metric ton and the volume nearly doubled to 1049 18:38 18 minutes, 38 seconds metric tons in second half. So Q3 and Q4 uh growth was highest in terms of quarterly uh revenue performance for 18:46 18 minutes, 46 seconds distribution. So here also we are maintaining a tight credit policy with days sales outstanding at 80 days uh 18:56 18 minutes, 56 seconds roughly as on 31st of March 2026 and here the customer base is increasing especially it increased in quarter 3 and quarter four of the year. 19:07 19 minutes, 7 seconds Next slide. 19:11 19 minutes, 11 seconds Yeah we'll quickly walk you through the financials uh for the year. Um yeah, next slide please. 19:21 19 minutes, 21 seconds So second half of this year our consolidated revenue was at 188 crores. 19:26 19 minutes, 26 seconds It's up 35% over H1. H1 was a little slow which we had mentioned last time. 19:33 19 minutes, 33 seconds Um various segments were uh subpar performance but we had the confidence that we'll be able to uh ramp up and uh 19:42 19 minutes, 42 seconds our team has delivered a spectacular performance in second half. What technologies grew 36% uh construction 19:50 19 minutes, 50 seconds 18% distribution 40% and cleaning and hygiene 15%. So you see uh a you know 19:58 19 minutes, 58 seconds complete stream of green on this page because the second half was in general also for the industry and uh 20:07 20 minutes, 7 seconds specifically in these segments uh that we've seen growth. Uh some changes that we made structurally in the distribution 20:15 20 minutes, 15 seconds business. Uh we reigned our teams that introduced several new products and that has led to an addition. So some of the 20:24 20 minutes, 24 seconds products that we used to were you know slowing down. So we've uh brought in new products to the basket. Um cleaning and 20:32 20 minutes, 32 seconds hygiene is now better aligned with our channel partners and u uh segments that are being that are selling to these 20:40 20 minutes, 40 seconds industrial segments. So it's a synergy with our water business that we are now exploiting uh more efficiently. 20:49 20 minutes, 49 seconds our rabida for second year second half at 29 crores uh is a 31% improvement 20:56 20 minutes, 56 seconds over the first half um and uh the uh consolidated PBT that's post interest 21:03 21 minutes, 3 seconds and tax and depreciation at 26 crores is a 33% improvement over last year's sale 21:10 21 minutes, 10 seconds period uh uh first half of this year um most of the margin improvements are 21:17 21 minutes, 17 seconds of course on lower costs Unfortunately, this story has changed post this war having started this 21:24 21 minutes, 24 seconds financial year. Um, and many new product technologies have led to our improved margins. Revenue outlook continues to 21:32 21 minutes, 32 seconds remain positive. Uh, however, on the earnings, profitability is a little bit of a challenge right now. Um, we'll talk 21:41 21 minutes, 41 seconds about it um a little later. Next slide, please. 21:49 21 minutes, 49 seconds uh revenue track for uh consolidated business of Kon Chemicals and this is quarter-wise comparison for last nine 21:57 21 minutes, 57 seconds quarters starting for quarter 4 of financial year 24 to quarter 4 of financial year 26. 22:04 22 minutes, 4 seconds So quarter 4 financial year 26 the revenue is highest 101.4 4 crores and uh if we compare quarter to 22:14 22 minutes, 14 seconds quarter so quarter 4 financial year 26 quarter four financial year 25 and last quarter four so again it's the highest 22:22 22 minutes, 22 seconds um in terms of all quarters so the track remains positive and on the positive growth for all quarters. Next slide. 22:34 22 minutes, 34 seconds So even within this financial year uh Kiran can you just go back one slide one moment. 22:41 22 minutes, 41 seconds Yeah. So this financial year every quarter is an improvement over the previous and uh every quarter this year 22:48 22 minutes, 48 seconds has been an improvement over the same quarter in the pre previous year except Q2 which was a small uh aberration that 22:56 22 minutes, 56 seconds we would have. Yeah. Next slide. 23:02 23 minutes, 2 seconds profitability track. So this is EVITDA and profit before tax again quarter wise for last nine quarters. So quarter 4 23:12 23 minutes, 12 seconds financial year 26 uh EBITDA is 15.7 crores and PBT is 14 crores. So highest 23:22 23 minutes, 22 seconds in this financial year if we compare from quarter 1 to quarter 4 and also yes highest of the last nine quarters what 23:30 23 minutes, 30 seconds we have next slide executive summary for financial year uh 23:40 23 minutes, 40 seconds year on so this is the yearon-year uh comparison consolidated revenue for financial year 23:48 23 minutes, 48 seconds 2026 at 326 36.15 crores. It is higher by 12% on last financial year. 23:56 23 minutes, 56 seconds So this is a significant improvement. Uh and most of this is led by the water business. Uh as you'll see the first 24:04 24 minutes, 4 seconds half of both the construction and the distribution businesses were low. Um and we mentioned last time that the 15% 24:12 24 minutes, 12 seconds decrease in u that you see here is primarily the first half the prolonged monsoon. It started in May and ended 24:20 24 minutes, 20 seconds around October. That took out two and a half full months of sales uh for a lot of projects. Most of the construction 24:28 24 minutes, 28 seconds activity was impacted. Uh distribution we had mentioned earlier was uh a change in their team as well as the product 24:36 24 minutes, 36 seconds mix. Uh however both these businesses have started tracking back and uh second 24:42 24 minutes, 42 seconds half as you saw uh have already been a larger segment. AIDA for the full 24:51 24 minutes, 51 seconds financial year is at 51 crores up 7% over prior. Uh consolidated PBT is at 45 odd crores uh 7% improvement over prior. 25:03 25 minutes, 3 seconds All of these businesses are having uh strong sales uh pipelines and uh we see that u the sales growth outlook uh looks 25:13 25 minutes, 13 seconds positive across all these business units. Next slide please. 25:21 25 minutes, 21 seconds Uh water continues to be our largest segment uh 87 comprising 87% of the pie. 25:28 25 minutes, 28 seconds uh we intend to bring the portion of the total pie a little lower but uh in the financial year this is the fastest 25:36 25 minutes, 36 seconds growing business. Uh construction is a 7% of total distribution 6% and the cleaning and hygiene is a small 1%. Um 25:46 25 minutes, 46 seconds and all of these by and large are tracking to the previous year. This 3% differential has been taken away from 25:55 25 minutes, 55 seconds the construction chemicals and the distribution businesses. Next slide please. 26:06 26 minutes, 6 seconds This is the yearon-year comparison of revenue operating EBITDA and profit after tax. So strong revenue growth in 26:14 26 minutes, 14 seconds financial year 2026 as compared to earlier two years. Revenue at 326 26:20 26 minutes, 20 seconds crores. Operating EBITDA at 46.3 crores 26:26 26 minutes, 26 seconds and profit after tax at 34 crores. So higher than earlier two years and in terms of 26:35 26 minutes, 35 seconds percentage margin to sales EBITDA is 14% of sales and profit after tax is 10% of sales. Next slide. 26:51 26 minutes, 51 seconds So to uh conclude this uh presentation and open up uh the floor for questions 26:58 26 minutes, 58 seconds uh waterbu we are uh entering this year as I mentioned earlier with a strong order book for chemicals as well as for 27:06 27 minutes, 6 seconds the equipment uh we have things lined up on the bio remediation space we should be able to start seeing a larger 27:13 27 minutes, 13 seconds contribution from that waste water treatment uh small subsection construction chemicals uh were impacted 27:22 27 minutes, 22 seconds but we've taken action this year to try to recoup and uh surpass uh the sales that we've had in past several years. Uh 27:31 27 minutes, 31 seconds we're also ramping up our team and presence. Uh material costs uh started 27:38 27 minutes, 38 seconds increasing from March uh end of Feb March. Uh lot of volatility in metals 27:45 27 minutes, 45 seconds before that. So some key materials that we use are based on metals. So zinc and malibum and stuff like that. All of them 27:54 27 minutes, 54 seconds had been tracking up. And post war declaration it was a very challenging period. We had limited inventories of 28:03 28 minutes, 3 seconds surplus inventories but had to ration them across customers. Uh we kicked in our force major very quickly and 28:13 28 minutes, 13 seconds proactively tried to manage the situation. 28:16 28 minutes, 16 seconds uh about 30 odd% of our total business in the water business comes from public sector units and none of them had 28:24 28 minutes, 24 seconds accepted a force measure until the government just declared it uh two weeks ago and hence uh we had a challenging 28:31 28 minutes, 31 seconds time uh delivering uh good customer service and maintaining u product flow to other customers as well as them. But 28:40 28 minutes, 40 seconds we were able to balance u those expectations with uh consistent deliveries of a lower volume. So our 28:47 28 minutes, 47 seconds volumes could have been higher but we constricted our uh supplies. 28:52 28 minutes, 52 seconds Um and uh we are seeing a little more impact in this financial year and uh we'll closely monitor we are prepared 29:01 29 minutes, 1 second with certain contingent actions in case this situation uh prolongs beyond another month. 29:10 29 minutes, 10 seconds So on this note, I think we come to an end to the formal presentation part of this meeting. Um, and we'd like to take 29:19 29 minutes, 19 seconds some questions and try our best to answer them hopefully satisfactoryy. 29:29 29 minutes, 29 seconds Uh, uh, Kiran, how does this go? you're going to be unmuting and allowing the questions or Yeah. Yes, sir. 29:39 29 minutes, 39 seconds Okay. 29:51 29 minutes, 51 seconds Hello, Nasir Investment please ask your question. 29:55 29 minutes, 55 seconds Yes. Uh uh good afternoon uh Nal G and congratulations on crossing the 100 crore uh mark in the quarter. Sir, I 30:04 30 minutes, 4 seconds have a few questions in terms of u uh number one is would would would you uh 30:12 30 minutes, 12 seconds uh see the current quarter um trend continue into the next year sir in terms 30:19 30 minutes, 19 seconds of at least the next four quarters being 100 cr plus. 30:25 30 minutes, 25 seconds Uh simple answer yes it's possible but uh some seasonality comes into this 30:32 30 minutes, 32 seconds business. Quarter 1 is not as fast as quarter 4 but on a quarter to quarter yes if you compare those uh yes we see 30:41 30 minutes, 41 seconds it to be an improvement over the prior year throughout and sir uh in terms of other 30:48 30 minutes, 48 seconds income I think um we have a small negative is that a accounting adjustment 30:54 30 minutes, 54 seconds or what is it because uh we we have certain balances on the books and we account for interest so how come it is 31:02 31 minutes, 2 seconds negative this quarter sir it's an accounting adjustment so that is on account of uh net gain and net loss 31:10 31 minutes, 10 seconds differential so net gain last 31st December was lower whereas net loss on uh fair value of investment is higher so 31:19 31 minutes, 19 seconds that is a fair value yeah okay yes it's a fair value adjustment 31:26 31 minutes, 26 seconds okay and um sir u are a margin margins have been from 15 15.5 16%. Uh you 31:37 31 minutes, 37 seconds mentioned that you see a slight pressure uh because of input cost. Uh how many percentage point would that be sir? And 31:46 31 minutes, 46 seconds I believe in the past week 10 days uh chemical prices have returned to more sena level sir. 31:54 31 minutes, 54 seconds So would would would it be possible for us or maybe if things improve in another week or so that our AITA margins be 32:03 32 minutes, 3 seconds maintained at maybe the last year levels overall? 32:07 32 minutes, 7 seconds Excellent question. I was hoping you someone would ask that gives me a chance to give a little more perspective. Uh so 32:15 32 minutes, 15 seconds uh historically I mean this is not the first time we've seen some cost pressures. Uh the magnitude is more intense this time. Uh but what happens 32:24 32 minutes, 24 seconds is that uh when costs increase uh it takes us about a couple quarters to pass them on fully and uh there are multiple 32:33 32 minutes, 33 seconds factors in play. Some of our contracts that come up for renewal in the financial year in April. U so most of 32:42 32 minutes, 42 seconds them we have bid at higher value considering the higher baseline cost. Um so and those plants cannot run without 32:50 32 minutes, 50 seconds product. So they have to take a decision. So if they lock in if we lock those in at a higher value uh then the 32:57 32 minutes, 57 seconds margins will start improving. Um the total impact is uh I mean I don't know whether I can um give you up to the day 33:07 33 minutes, 7 seconds um uh updates but in the immediate month we saw about a 3% impact on our margins 33:18 33 minutes, 18 seconds due to these haywire costs. Your third part of the question was where you've seen some chemical prices return to 33:26 33 minutes, 26 seconds normal. Um unfortunately we are not seeing them coming to a much lower level. Yes they've softened because some 33:35 33 minutes, 35 seconds import cargo has arrived or some plants that were under shutdown have restarted but they are still tracking 100 some 33:44 33 minutes, 44 seconds materials are at 140% andund I mean we have a list of 15 a group items which are all above 120%. 33:55 33 minutes, 55 seconds So yeah, so this is going to impact us, but the uh beauty is that we've always 34:02 34 minutes, 2 seconds had this situation and when we lock in contracts at current prices, uh costs the day they start softening the margin instantly starts upticking. 34:14 34 minutes, 14 seconds Sir, yeah. And if I can add one more question, sir. 34:17 34 minutes, 17 seconds Um uh sir uh water is a large percentage of our business 85 86%. Do you do you 34:24 34 minutes, 24 seconds see that continuing and if you could throw a bit of light on your hygiene business like you said water the milk tank cleaning. 34:35 34 minutes, 35 seconds So do you supply the hardware for this all also or you just supply the consumables for this business and how does that that work that model work? 34:44 34 minutes, 44 seconds Yes. Yes. So as of now we've been doing only the chemicals and some small supporting equipment. Uh but uh we've 34:53 34 minutes, 53 seconds won some significant I mean I wouldn't call it significant but we've won uh quite a lot of business in the dairy 35:00 35 minutes segment uh milk processing plants especially in southern part of India and our uh product supplies uh you know 35:08 35 minutes, 8 seconds would start coming up in the dairy segment. Most of these have uh pretty elaborate uh cleaning in place uh 35:16 35 minutes, 16 seconds systems. So if at all they need we would need to supply some foam cleaning machines etc. But nothing beyond that. 35:25 35 minutes, 25 seconds Um so that's a segment that we have now closely integrated with our water treatment uh middle market segment. A 35:32 35 minutes, 32 seconds lot of our channel partners are taking up these products for sales and we are seeing uh synergies play out now. 35:43 35 minutes, 43 seconds Sir and about the water you expect water to remain. 35:47 35 minutes, 47 seconds Yeah. Yeah. We of course we don't want anything to decrease. We want the other businesses to grow faster. So I'd be 35:54 35 minutes, 54 seconds very happy if water comes down to uh 80 and then 70% of the total pie with the pi expanding more rapidly with the other businesses. Yes. 36:06 36 minutes, 6 seconds And but all all opportunities in all businesses are uh I mean they exist 36:13 36 minutes, 13 seconds sir which other players see you are one of the largest in in this niche the water niche you and Vasu chemicals. 36:20 36 minutes, 20 seconds Which other players are there which have a large pie? I would say more than 10% kind of stuff sir. 36:28 36 minutes, 28 seconds Uh sir all the companies that you can think of operate in this business. The international companies like Eolab Nalco 36:37 36 minutes, 37 seconds Solenis there's Suez that is now a part of Violia. So there are three global companies operate here. There's iron exchange there's the all very active. 36:50 36 minutes, 50 seconds They have good teams, good good business networks and are doing well. Thank you. I'll come back in the queue. 36:58 36 minutes, 58 seconds Yeah. Thank you very much. Uh Janal Shet. Yes. 37:08 37 minutes, 8 seconds Yes. Sorry, I was on mute. Good afternoon and team. Uh firstly I'd like to commend this uh the way you guys have 37:15 37 minutes, 15 seconds uh uh you know summarized the uh results and the commentary and it's a great 37:22 37 minutes, 22 seconds start for you guys. uh just want to touch upon firstly that uh when we 37:29 37 minutes, 29 seconds demerged uh from Kond Chem Chemicals for the de merger obviously the uh bigger 37:36 37 minutes, 36 seconds objective being each of the brothers could get focused to their businesses. 37:41 37 minutes, 41 seconds So in that light uh along with as you you know you gave your commentary on water but are there any new products 37:48 37 minutes, 48 seconds that you guys have introduced and over the next say 2 to 3 years would we see you know a decent contribution coming from that is my first question. 37:59 37 minutes, 59 seconds Uh yes Jal. So what uh uh this is a little tricky for me to answer because 38:06 38 minutes, 6 seconds there are some incremental technological changes that we keep making in the products. Um and uh our expertise lies 38:15 38 minutes, 15 seconds in solving problems. So if a customer expresses that he has an issue uh we can dive in and start working on providing a 38:24 38 minutes, 24 seconds solution. So when the next such big opportunity will come u our teams keep scouting for it but uh yeah so one is 38:33 38 minutes, 33 seconds that is customer le innovation and development of a solution. The other one is something that we work on develop and 38:41 38 minutes, 41 seconds go to the market and try to launch. So currently we are working on the first option. So uh three new applications 38:50 38 minutes, 50 seconds that we uh picked up in the last year have been uh all proof of concept trials have been completed. We've been approved 38:59 38 minutes, 59 seconds in the largest of these u uh customers and they are on the full commercialization 39:07 39 minutes, 7 seconds uh pipeline and we expect those. So there's a little bit of um uncharted 39:14 39 minutes, 14 seconds territory for us as well as for the customer because they've never had they've never seen this kind of an 39:21 39 minutes, 21 seconds improvement. So they are also going a little uh guarded and uh but that 39:27 39 minutes, 27 seconds confidence and uh trust will build up in this year and we will see some uh large 39:34 39 minutes, 34 seconds uh uptakes from those new three new solutions that we have developed. 39:41 39 minutes, 41 seconds Okay, thanks. And uh I noticed that the GEX this year has shot up to almost 20 21 crores or so. Now is that for the 39:50 39 minutes, 50 seconds existing capacity ramp up or anything any observations there? 39:56 39 minutes, 56 seconds I think what primarily is the full year of impact of the de merger. So some of the assets that were on the common books 40:04 40 minutes, 4 seconds and could not have been very critically identified or tagged, they've started coming in. Um and uh of course the 40:12 40 minutes, 12 seconds office building the improvements that we've done and the u the entire renovation of the office building to 40:19 40 minutes, 19 seconds house our teams. So that has taken up but uh 21 K 40:25 40 minutes, 25 seconds whole de merger uh uh PPE which has come into our books. So this is the de merger 40:32 40 minutes, 32 seconds effect. Okay, great. And just lastly, uh as you already have answered this Nirmal, but just uh touching upon it 40:39 40 minutes, 39 seconds that looking at the environment currently uh do you still believe that uh in this 40:47 40 minutes, 47 seconds if this environment were to persist for a bit more? Uh do we believe that the outlook that you're given that is 40:54 40 minutes, 54 seconds basically from new business wins or exist incre incremental wallet share increase. So is that where the confidence is coming from for the growth for the coming year? 41:04 41 minutes, 4 seconds Um so yeah the I'm of course when I say this it's all things being equal. So current situation the scenario if the 41:12 41 minutes, 12 seconds industry continues to grow I don't see any hiccup in the growth momentum. Um at the most there would be a temporary 41:21 41 minutes, 21 seconds impact on our margins. Uh again that is not something that we 41:28 41 minutes, 28 seconds overly get worried about because over time over a couple quarters those start reflecting back and then we again have a 41:35 41 minutes, 35 seconds tailwind um effect where we continue to get you know those higher margins for few more months until another desperate 41:43 41 minutes, 43 seconds competitor starts dropping prices. Um so I think from that perspective uh the 41:49 41 minutes, 49 seconds growth story continues and we are uh the government after seeing them for so many 41:56 41 minutes, 56 seconds years they're not going to slow down on capex because that's a better way to pump the economy rather than just uh 42:04 42 minutes, 4 seconds giving some freebies. So we believe that uh sense will continue to drive uh businesses for us. 42:13 42 minutes, 13 seconds Thank you so much and good luck to the team. Thank you Janal. Yes. Uh there's a question from Himmanu. 42:28 42 minutes, 28 seconds Hello. Am I audible? Yes, you are. Yeah. Yes. 42:32 42 minutes, 32 seconds Yeah. So my first question was uh on the water business. uh now when force merger 42:39 42 minutes, 39 seconds has been declared in the f in the ter period agreements what we have with our 42:46 42 minutes, 46 seconds clients. Okay. Uh can we raise the prices for the raw material or uh the 42:53 42 minutes, 53 seconds fixed price contract remains? How does it now move ahead or what? 42:57 42 minutes, 57 seconds So private sector private sector we've been quite successful and we've approached this that this is a temporary phenomenon. So we need at least a 43:06 43 minutes, 6 seconds temporary price increase. So several customers on the private sector have already given us increments for uh 3 43:15 43 minutes, 15 seconds months and which would continue if this situation doesn't normalize. Um and in case it worsens then we have to go back to them and seek higher increases. 43:26 43 minutes, 26 seconds Public sector is a different story. they are refusing to uh amend the terms and for that then our only hope is that 43:35 43 minutes, 35 seconds the situation starts getting better but several public sector units operate on an April to March calendar for their 43:42 43 minutes, 42 seconds annual contracts and where we don't have multi-year contracts then those have already come up for tendering and we've already been submitting bids at a higher 43:51 43 minutes, 51 seconds price and one more thing uh Nirmat uh generally 43:58 43 minutes, 58 seconds uh retention of client in the uh one year or two year period contract is difficult more in inflationary periods 44:07 44 minutes, 7 seconds or on the uh when the markets are much more sanguin or the prices are not moving too much how has been the 44:14 44 minutes, 14 seconds historical situation be and your experience anything on I'm sorry I actually didn't fully understand your question 44:23 44 minutes, 23 seconds no so I was saying that how difficult or easy is to maintain the client relationship 44:30 44 minutes, 30 seconds in terms of the period contracts or long-term contracts with fixed prices in inflationary periods. Okay. 44:38 44 minutes, 38 seconds Yeah. 44:39 44 minutes, 39 seconds Do we tend to see more loss of customers in inflationary periods or in a more stable price period? 44:46 44 minutes, 46 seconds No. No. So this is a business where customer stickiness is important. If you don't mess up with your performance, 44:54 44 minutes, 54 seconds then um the customer is ready to keep working with you. Private sector looks at how honestly you're doing your job 45:03 45 minutes, 3 seconds and how much money you're saving them and then giving 5% 8% 12% extra for a temporary period is not a challenge for 45:12 45 minutes, 12 seconds them. In public sector unfortunately they have a uh vigilance team that's always monitoring and uh the you know 45:20 45 minutes, 20 seconds the law the they are u general terms and conditions state that you cannot favor any single party. So unless you don't 45:30 45 minutes, 30 seconds rebid then um you know there is no other alternative. So in those cases uh either 45:37 45 minutes, 37 seconds we have to just um lay low, keep doing our work and watch very carefully how we 45:44 45 minutes, 44 seconds are performing and uh other way is then to talk to the management and say we just can't sustain at this uh cost and 45:52 45 minutes, 52 seconds price and uh then come with a rebid. So there it might be driven by us not being 46:00 46 minutes able to supply. Um and because a force major has been declared by us and also by the government uh there is no risk 46:09 46 minutes, 9 seconds purchase uh uh fear where they will buy from anyone at our cost. So that fear is now out of the equation. 46:20 46 minutes, 20 seconds Okay. And one small question FI26 the water chemicals which has done pretty well. Okay. Can you elaborate on what 46:29 46 minutes, 29 seconds were the two three things which helped us uh do pretty well means is it more client addition which helped or new 46:37 46 minutes, 37 seconds products or something on that will be helpful to understand the situation. 46:44 46 minutes, 44 seconds Yes. So new client addition is the primary driver and hence you see the increase in volumes. Um so definitely 46:52 46 minutes, 52 seconds that uh and we have those contracts lasting till uh the mid of this year. So 46:59 46 minutes, 59 seconds that volume and uh you know sales trend is uh already uh provided for in this 47:06 47 minutes, 6 seconds financial year in our budget sales budget for the team. Um so yeah it is driven by new customer acquisition and 47:14 47 minutes, 14 seconds volume growth. Price growth did not play a factor in this uh incremental grow in the growth for the financial year this 47:23 47 minutes, 23 seconds year. Hopefully um though there will be a negative pressure on the margin uh some price increases that have kicked in 47:31 47 minutes, 31 seconds would contribute to um negating the margin loss to some extent. 47:39 47 minutes, 39 seconds Okay. Okay. I'll join back in the queue for further queries. Thank you very much. 47:58 47 minutes, 58 seconds Am I audible? 48:06 48 minutes, 6 seconds Yes. Yeah. Yes. 48:08 48 minutes, 8 seconds Yes. Uh Nanj uh we have around 65 crores on books. Uh any any plan for that? Any 48:16 48 minutes, 16 seconds any uh apart from the current year capex? 48:19 48 minutes, 19 seconds Any further deployment uh or any additional plant um setting up is planned? 48:29 48 minutes, 29 seconds No no no nothing to that extent but currently we are we are preparing to for the worst eventualities. Uh the 48:38 48 minutes, 38 seconds situation is unfortunately not very readable to most of us on this call also. So uh we are staying ready for 48:46 48 minutes, 46 seconds everything. Um we intend to deploy some of it in u network growth um and geographical expansion 48:55 48 minutes, 55 seconds and sir uh what percentage of our top line would be contributed by top three to four customers I mean does any 49:04 49 minutes, 4 seconds customer command more than 10% of our sales? 49:08 49 minutes, 8 seconds uh no currently that is uh we have uh overcome all those uh uh challenges I 49:16 49 minutes, 16 seconds would call it a challenge because I don't want to be too heavily dependent on a few so it's a very good 49:22 49 minutes, 22 seconds distribution that we have um and uh the 80/20 rule could apply but uh that's a 49:29 49 minutes, 29 seconds lot of customers in that 20%. It's not one. So no one customer of ours would 49:35 49 minutes, 35 seconds contribute more than five 5% to 6% of total revenue. 49:42 49 minutes, 42 seconds I think I think that's that's a very healthy mix sir. Yes. Yes. 49:48 49 minutes, 48 seconds Thanks a lot sir. Sir sir and and um best of luck and hoping to see all four quarters cross 100 course sir. 49:54 49 minutes, 54 seconds Yes. Yes. Thank you very much. 49:57 49 minutes, 57 seconds If you come ac across any prospects needing water treatment, please refer them on. We'll do sir. Definitely. Definitely. 50:04 50 minutes, 4 seconds Thank you. Hello Vive. Hello. 50:12 50 minutes, 12 seconds Um Mr. Vive, you have a question. Please unmute yourself and uh ask your question. 50:21 50 minutes, 21 seconds Can you hear me? Uh yes, I can. 50:24 50 minutes, 24 seconds Yeah. Hi. Just had a couple of questions. I was just seeing the presentation and uh in both the construction chemicals as well as the 50:32 50 minutes, 32 seconds distribution business the realization seems to have gone down in H2 over H1. 50:38 50 minutes, 38 seconds So any specific reason for that? In construction chemicals you had about 55,584 per metric ton in the first half and 50:46 50 minutes, 46 seconds then it fell down to 51274 per metric ton and in distribution you had 1 lakh 50,842 in the first half and 50:54 50 minutes, 54 seconds 1 lakh 19,000 odd in the second half. So any specific reason for that? 50:58 50 minutes, 58 seconds No, it's usually the product mix and a lot of these would be seasonal. So um if ad mixtures is selling more then you'd 51:07 51 minutes, 7 seconds have a lower price realization in the construction chemicals and if sealant sell more then you have a higher price 51:15 51 minutes, 15 seconds realization and likewise in the distribution business too if uh it's uh depending on the customer demand we this 51:23 51 minutes, 23 seconds a purely distribution trading business um so yes uh it would be the product mixdriven 51:31 51 minutes, 31 seconds and in sorry I missed the water chemicals part. So there also you've seen a fall in the realizations uh not really no 51:40 51 minutes, 40 seconds so there is broadly stable and can you just uh uh confirm how much is the realization broadly in water chemicals per metric t 51:48 51 minutes, 48 seconds I'm sorry I don't have the number of hand uh in the presentation in your presentation uh 51:55 51 minutes, 55 seconds if it was uh total value and divide by volume right so if you could share the presentation as well that would be we'll put it up on the website of course 52:04 52 minutes, 4 seconds yesuh it'll come up and the second question I had was you were saying that it's a little difficult to get price hikes for the material 52:13 52 minutes, 13 seconds price increase in the public sector so how much of our business is public sector and how much is private sector so in the water business roughly about 52:22 52 minutes, 22 seconds 28 to 30% is public sector driven okay and these are what generally these are municipal contracts or 52:31 52 minutes, 31 seconds no no We no we are not at all into municipal uh segment. Uh primarily these would be power plants and refineries. 52:43 52 minutes, 43 seconds Okay. 52:43 52 minutes, 43 seconds So yeah the Indian oils yeah Indian oil the HPCL BPCL in the refining space and 52:52 52 minutes, 52 seconds NTPC and uh NPC in the power segment. 52:57 52 minutes, 57 seconds Sure. And one last question from my side is how much volume growth are you seeing basically especially in the water chemicals business. I mean I know 53:05 53 minutes, 5 seconds pricing depends on what you finally get in terms of raw material pricing and everything but generally how much volume 53:13 53 minutes, 13 seconds growth are you seeing on the construction chemical side? 53:16 53 minutes, 16 seconds Um so in all the businesses I think we are uh most of the delta in the sales is coming from volumes. 53:26 53 minutes, 26 seconds uh last so many years I don't remember uh price increases contributing to any 53:33 53 minutes, 33 seconds enhanced revenues to that extent uh one or you know hardly a small percentage of 53:40 53 minutes, 40 seconds you know fraction actually is driven by price increases so almost all of it is volume driven 53:49 53 minutes, 49 seconds first half year to second next half year it was 30% volume growth uh but uh this uh high increase was mainly because Q2 53:58 53 minutes, 58 seconds was lower but uh coming to quarter 1 of this year we foresee around 15 to 20% of 54:05 54 minutes, 5 seconds volume growth in construction chemicals and in water chemicals ma'am uh water chemicals it would be roughly 54:13 54 minutes, 13 seconds around uh 10%. And you would have uh I mean budgeted how much volume growth for the full year is that possible to be 54:21 54 minutes, 21 seconds shared around I think we'll have to refer actually that's not something we were really very 54:28 54 minutes, 28 seconds prepared for. We're more prepared to discuss this past financial year. Um yeah so the budgets uh we'll get to that. 54:39 54 minutes, 39 seconds Sure. Okay. Thanks a lot. Yeah. Thank you Vic. 54:46 54 minutes, 46 seconds Hello Lady please please ask your question. 54:54 54 minutes, 54 seconds Um you are on mute sir. Hello good morning and the team. 55:02 55 minutes, 2 seconds Congratul the results. Good growth on revenue side. Good to see after a long time. I'm sorry sir your voice is very feeble. 55:09 55 minutes, 9 seconds Can you please speak up a little bit? Hello. Is it better now? 55:18 55 minutes, 18 seconds Ah, much better. Thank you very much. Great. Good evening and the Kimon team. 55:24 55 minutes, 24 seconds Um, I have a few questions. Number one is in the previous call you had uh said that you aspire to test thousand crores 55:32 55 minutes, 32 seconds as a company within four years specifically. 55:36 55 minutes, 36 seconds Yes. Yes. Um I would like to uh understand how we are looking to achieve 55:43 55 minutes, 43 seconds that number broadly broad direction given that our current sales is 330 340 crores. So it's it's a almost a tripling 55:52 55 minutes, 52 seconds of sales and going by the historical growth of the company which has been around 10 12%. Um it'll be good to understand what what what will change. 56:03 56 minutes, 3 seconds Uh sure sure. Number two. Yes. Okay. Go ahead. 56:07 56 minutes, 7 seconds Can I ask all the questions or you want to answer one by one? No, no, go ahead please. 56:12 56 minutes, 12 seconds Second question is um Chembond Chemicals as a group the DNA 56:19 56 minutes, 19 seconds has been profitability and uh good receivables management etc. So when I 56:26 56 minutes, 26 seconds look at say a water chemical business uh if I compare with almost all the competitors I see we have the lowest 56:33 56 minutes, 33 seconds margin. uh something that you know I would want to understand because when you said that construction 56:42 56 minutes, 42 seconds construction chemical makes 20% BB margin which is generally a commodity business right um I would like to 56:49 56 minutes, 49 seconds believe that uh why can't we make similar margins in the water business which looks much more value added um in 56:58 56 minutes, 58 seconds nature and more critical so that's the second question can we touch 20% PBT margin in the water business. Uh if no, what's the reason? 57:08 57 minutes, 8 seconds And if yes, you know, why are we not able to do that right now today? Uh what is leading to the you know lower margins? 57:17 57 minutes, 17 seconds Yeah, sure. Exactly your point. Yes. 57:19 57 minutes, 19 seconds Also allude that you know one of the competitors Vasu chemicals uh which I think got acquired by by a European 57:26 57 minutes, 26 seconds company I believe. So their numbers uh say that they make 30% epida margins 57:33 57 minutes, 33 seconds and uh which which looks very high um and we are almost in the similar business right uh so would would love to 57:41 57 minutes, 41 seconds know about the margin structure right I because there's a little constraint on time I'll just quickly answer these three questions that you've 57:48 57 minutes, 48 seconds already posed so 1,000 cr is yes it is an aspiratory number we are trying to ensure that we have plans in place to 57:57 57 minutes, 57 seconds get to that number. It's not something that we're saying we will get to but yes um various uh strategies are in place as 58:06 58 minutes, 6 seconds I mentioned a geographical expansion some markets that are responding favorably we are activating uh more 58:14 58 minutes, 14 seconds aggressively secondly on a larger base with more reach organical growth itself 58:21 58 minutes, 21 seconds will also start contributing uh the construction chemicals business is uh compared to the market potential a very 58:28 58 minutes, 28 seconds small business. So that's the top priority that will contribute a larger pie of our larger slice to the pie and 58:38 58 minutes, 38 seconds the cleaning and hygiene has been operating at a subpar level for the past 7 years. So that's something that uh 58:45 58 minutes, 45 seconds with this integration with our water treatment uh technologies team uh we are seeing some early signs of uh traction and we hope to be able to amplify those. 58:56 58 minutes, 56 seconds So that's on the thousand Kores on the profitability I am uh I don't know where you're getting these numbers from but 59:04 59 minutes, 4 seconds when we compare to all our peers in this industry we are almost at par maybe half a percent point up or down and most of 59:13 59 minutes, 13 seconds them are driven by u you know the the mix of the business that we get in some years if uh we get more uh successful 59:22 59 minutes, 22 seconds with some tenders there would be a small uh depression session but in general this business is a people business and a 59:30 59 minutes, 30 seconds solutions business. So a lot of our cost if you look at about almost 18% of our top line is into employee cost as 59:39 59 minutes, 39 seconds opposed to you know a 14% or something like that in the other businesses. So that's one reason that uh causes this. 59:48 59 minutes, 48 seconds You mentioned about Wasu. Yes. It's been taken over by an Indian company called D Kettle. And uh if I look back historically at their margins, they were 59:57 59 minutes, 57 seconds at about 6.5 to 8% at best and it's only in the past 2 years that we've seen some 1:00:04 1 hour, 4 seconds sudden magic that's happened and it's uh started lifting up to 25 and now 30%. So 1:00:11 1 hour, 11 seconds I really don't have access to their financials. uh uh so maybe being from 1:00:18 1 hour, 18 seconds this faculty and field if you can uh analyze what changed for them in the past 2 years it would and share that 1:00:26 1 hour, 26 seconds with us we'd really appreciate that help from you yeah um I think there's a time 1:00:33 1 hour, 33 seconds just for the last question uh Mr. An Sharma if you can please ask your question. 1:00:41 1 hour, 41 seconds Yeah thank you so much Neville. Um just on uh on the water segment first see 1:00:48 1 hour, 48 seconds there are couple of uh players in this uh international players domestic players large what is our positioning here and how is that how has that 1:00:56 1 hour, 56 seconds evolved over the past 3 five years that's question number one okay no I I'll ask one by one if you can 1:01:04 1 hour, 1 minute, 4 seconds answer this okay so our position is that the customers trust Kembond for its uh product performance and uh the service 1:01:13 1 hour, 1 minute, 13 seconds that we deliver um they prefer Kambond over any multinational and any other Indian uh manufacturer and supplier of 1:01:23 1 hour, 1 minute, 23 seconds these products. So this is something I can say with confidence because there are some public sector units that you 1:01:31 1 hour, 1 minute, 31 seconds know are so scared of shifting because their productivity certain lines in 1:01:37 1 hour, 1 minute, 37 seconds their uh plants are profitable only because um you know their water treatment is doing a good job and the 1:01:46 1 hour, 1 minute, 46 seconds day that uh trips then uh so typically in the fertilizer space you know the most of the money is made from the 1:01:54 1 hour, 1 minute, 54 seconds chemical chemicals rather than the fertilizers which is a subsidized business. So, so when it comes to real 1:02:02 1 hour, 2 minutes, 2 seconds solutions and consistent performance, uh people will always prefer Chemot. So, that's our positioning. Uh we don't and 1:02:11 1 hour, 2 minutes, 11 seconds that's also what I mentioned about our core values. I think that's something that's within the DNA of every technical service and salesperson in our 1:02:20 1 hour, 2 minutes, 20 seconds organization right since the day the company was founded um in 1975. 1:02:28 1 hour, 2 minutes, 28 seconds Yeah. 1:02:28 1 hour, 2 minutes, 28 seconds All right. That yeah that's helpful. And uh second question is on on the construction chemical as you rightly 1:02:35 1 hour, 2 minutes, 35 seconds said it's a it's a huge market uh and we we we we do want to get big over there 1:02:43 1 hour, 2 minutes, 43 seconds but what is the area or what is the strategy there which can help us increase our positioning or our market share? 1:02:51 1 hour, 2 minutes, 51 seconds Yeah. So yes, so with revived attention to this business uh we've started 1:02:59 1 hour, 2 minutes, 59 seconds getting uh approvals from uh large government agencies and consultants. So that's an enabler for our sales team. Uh 1:03:08 1 hour, 3 minutes, 8 seconds we've been able to have a cost competitive uh product development and production uh with uh debottlenecking 1:03:16 1 hour, 3 minutes, 16 seconds some of our production lines. So that's a segment that'll grow uh for us. the sealants business, the uh curing 1:03:23 1 hour, 3 minutes, 23 seconds compounds and surface treatment products. Um ad mixtures I don't see it uh scaling up too much because there are 1:03:33 1 hour, 3 minutes, 33 seconds again it's a bulk product and uh freight is a big cost. So we u unless we 1:03:41 1 hour, 3 minutes, 41 seconds you know have remote manufacturing or toll manufacturing we don't see ourselves scaling up in that and we don't want to get into that uh toll 1:03:51 1 hour, 3 minutes, 51 seconds manufacturing for liquid products yet but the sealants is another thing and uh all the approvals that we have started 1:03:59 1 hour, 3 minutes, 59 seconds obtaining is uh going to help us and we've not ramped up our team in a long time. We're very focused on improving 1:04:07 1 hour, 4 minutes, 7 seconds margins and profitability and now that we've done that uh it's time for us to get back. So last seven six seven years 1:04:16 1 hour, 4 minutes, 16 seconds we've been saying that we're very very credit conscious on that business. 1:04:20 1 hour, 4 minutes, 20 seconds Consolidation has happened and maturity has also cre crept in. Um so and we've 1:04:27 1 hour, 4 minutes, 27 seconds also sensed how to gauge uh the you know credit worthiness of a customer. So 1:04:33 1 hour, 4 minutes, 33 seconds that's these are the factors that um makes me a little more bullish about that business. Now again 1:04:41 1 hour, 4 minutes, 41 seconds excellent uh congratulations just one hygiene factor hygiene number what is the difference between what is the break 1:04:48 1 hour, 4 minutes, 48 seconds up between private and non-private in water segment or the treatment chemical uh private business is roughly about 70% 1:04:56 1 hour, 4 minutes, 56 seconds of our total revenue 28 to 30% is uh public sector excellent okay thank you so much and 1:05:04 1 hour, 5 minutes, 4 seconds wish you all the thank you very much Anuj all right I think we've We've reached the end. Uh Himman sure you have one 1:05:11 1 hour, 5 minutes, 11 seconds last quick question then please go ahead otherwise uh yeah hi my question was uh see 1:05:20 1 hour, 5 minutes, 20 seconds historically when we we also tried our expand our business outside India okay 1:05:27 1 hour, 5 minutes, 27 seconds through inorganic and uh putting some businesses on what is your thought process currently means uh outside India 1:05:35 1 hour, 5 minutes, 35 seconds do you want to go or not go inorganic versus organic Uh first is yeah first is uh we had a JV 1:05:44 1 hour, 5 minutes, 44 seconds in uh Malaysia which didn't really work out well. So we acquired that piece and it's a 100% business. Uh it's continuing 1:05:51 1 hour, 5 minutes, 51 seconds to maintain it at that level. Uh in Thailand we've been able to add new accounts, new customers. So that's a 1:05:59 1 hour, 5 minutes, 59 seconds segment where we also are growing our team. We have about I think six or seven employees there and uh the customer base 1:06:06 1 hour, 6 minutes, 6 seconds and the volume is increasing. So that's a focus that we'll continue to maintain. 1:06:12 1 hour, 6 minutes, 12 seconds Um Nigeria was another pocket where we were doing significant export business uh for the water treatment products. Uh 1:06:19 1 hour, 6 minutes, 19 seconds we uh discontinued that because uh the customer did not want to operate uh with LC terms and wanted open credit. At that 1:06:29 1 hour, 6 minutes, 29 seconds time we weren't uh you know the Nigerian economy wasn't really um firing on all cylinders and uh the payables from their 1:06:39 1 hour, 6 minutes, 39 seconds side and receivables at our end would have been a challenge and we didn't want to get into all those RBI issues on uh 1:06:46 1 hour, 6 minutes, 46 seconds you know not uh collecting the funds. So we uh went away from that business. We walked away in fact and uh just as an 1:06:56 1 hour, 6 minutes, 56 seconds update to you our competitor who walked in and through the ex employee of ours who joined a competitor he got them that 1:07:04 1 hour, 7 minutes, 4 seconds business and uh they are having more than 15 to 18 months of receivables and 1:07:10 1 hour, 7 minutes, 10 seconds uh are being uh arm twisted if they don't supply they don't get paid so I think we turned out uh pretty well on 1:07:18 1 hour, 7 minutes, 18 seconds that one so we'll it will be driven by those kind of things. So, we're looking at some partnerships in different 1:07:24 1 hour, 7 minutes, 24 seconds geographies. Um, those who bring in some value in either through market access or 1:07:31 1 hour, 7 minutes, 31 seconds through a customer base and selectively we'll keep picking them up. We are not 1:07:37 1 hour, 7 minutes, 37 seconds in any rush to get into any rash decisions. We'll we'll keep doing things slowly but steadily. 1:07:46 1 hour, 7 minutes, 46 seconds Thank you. Thank you, Nit. 1:07:48 1 hour, 7 minutes, 48 seconds Yeah. Yeah. Thank you. Thank you very much. Thank you all. Thank you. 1:07:53 1 hour, 7 minutes, 53 seconds So I call this meeting to a close. I thank you very much for joining us and um forgoing your afternoon nap on a 1:08:02 1 hour, 8 minutes, 2 seconds Saturday. Uh take care and uh have a nice weekend. Bye-bye. Yeah. Thank you all.