Chemplast Sanmar Limited — Q3 FY26

Chemplast Sanmar Ltd Q3 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=7BAb0xuaS1I Published: 3 months ago

0:01 1 second Ladies and gentlemen, good day and welcome to the Kemplenar Limited Q3 FI26 earnings conference call. As a reminder, 0:10 10 seconds all participant lines will be in the listenon only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should 0:19 19 seconds you need assistance during the conference call, please signal an operator by pressing star 10 on your 0:26 26 seconds touchstone phone. Please note that this conference has been recorded. This conference call may contain forward-looking statements about the 0:35 35 seconds company which are based on the beliefs, opinions and expectations of the company as on date of the call. These statements 0:43 43 seconds on are not the guarantees of future performance and involve risks and uncertaintities 0:51 51 seconds that are difficult to predict. I would now like to hand the conference over to Mr. Ram Kumar Shankar, managing director. Thank you and over to you sir. 1:03 1 minute, 3 seconds Thank you very much and good afternoon everybody. On behalf of Kenlas Sunmar Limited I extend a very warm welcome to everyone joining us on our call today. 1:13 1 minute, 13 seconds On this call we are joined by our CFO N Muridan, Dr. Dr. Krishnakumar Rangachari who heads our custom manufactured 1:21 1 minute, 21 seconds chemicals division and FGA our investor relations advisor. 1:26 1 minute, 26 seconds I hope everyone has had an opportunity to go through the financial results and investor presentation which have been 1:33 1 minute, 33 seconds uploaded on the stock exchanges and on our company's website. During the quarter, the company reported 1:40 1 minute, 40 seconds consolidated revenues of rupees 835 crores and a net loss of rupees 119 crores. This has been the most 1:49 1 minute, 49 seconds challenging quarter in the last 3 years with multiple factors impacting our performance. The suspension PVC business 1:57 1 minute, 57 seconds faced a challenging environment with the seasonal decline in demand, weather related production disruptions caused by 2:04 2 minutes, 4 seconds inability of feed stock ships to birth due to unusually rough seas during this year's northeast monsoon and a sharp 2:12 2 minutes, 12 seconds fall in import parity prices caused by regulatory uncertainty at the beginning of the quarter. We had setbacks on the 2:20 2 minutes, 20 seconds regulatory side with the anti-dumping duty recommended by the director general of trade remedies not being accepted by 2:26 2 minutes, 26 seconds the ministry of finance. The quality control order on PBC which was scheduled to be implemented in December was also 2:34 2 minutes, 34 seconds rescended in November along with the quality control orders on various other polymers. 2:40 2 minutes, 40 seconds On the PACE PBC side, we saw continued pricing pressure from imports originating from the European Union. 2:47 2 minutes, 47 seconds However, we believe that Q3 represents the bottom of the PBC cycle with with an uptrend being visible in January 2:56 2 minutes, 56 seconds continuing into February. Market sentiments are more positive resulting in higher demand and better prices 3:04 3 minutes, 4 seconds boarding well for the company in the days and months ahead. Getting into details, during quarter 3, domestic 3:12 3 minutes, 12 seconds demand for PHP PVC remains stable thanks to the footware and automobile segments. 3:18 3 minutes, 18 seconds The Cadloot PVC facility is operating at full capacity utilization, reflecting steady operations and market absorption. 3:27 3 minutes, 27 seconds Post the end of the quarter, we see an uptick in demand for PC PDC, which resulted in a significant draw down of 3:34 3 minutes, 34 seconds inventory in January. Some price improvements in paste PVC are also being seen. The anti-dumping investigation on 3:42 3 minutes, 42 seconds paste PVC imports from the European Union and Japan is ongoing with the final findings expected before the end 3:50 3 minutes, 50 seconds of Q4 of the current year. On the custom manufacturer chemicals business, as highlighted during the earlier analyst 3:59 3 minutes, 59 seconds call, the slowdown on agrochemicals impacted our quarterly performance. That said, our new product development and 4:07 4 minutes, 7 seconds customer diversification initiatives continued in two choose. We now have 17 products commercialized with additional 4:15 4 minutes, 15 seconds products under development. On the capacity expansion, work on MPB3 phase 3 and MPB 4 continue during the quarter. 4:24 4 minutes, 24 seconds MPB3 phase 3 is expected to be completed in Q4 of the current year with pilot commissioning also targeted for Q4 of 4:33 4 minutes, 33 seconds this year. following which production is expected to ramp up gradually. Civil works for MPB4 are targeted for 4:40 4 minutes, 40 seconds completion in Q1 of FY27 on a refrigerant gas project. The R32 4:48 4 minutes, 48 seconds capacity expansion of 14 KTPA is underway, including two new R32 plants of 10 KTPA and 2 KTPA capacity 4:57 4 minutes, 57 seconds respectively and conversion of the existing R22 capacity into a swing plant at May 2. Commercial sales are expected 5:06 5 minutes, 6 seconds to start post the swing plant commissioning by the end of this quarter. Moving on to our value added chemicals business. Our business 5:14 5 minutes, 14 seconds portfolio in this segment as you may be aware includes costic soda, chloromthane and hydrogen peroxide. During the quarter, prices and margins for costic 5:23 5 minutes, 23 seconds soda and chloromthane remained under pressure globally. Costic soda's domestic demand remained stable from key 5:30 5 minutes, 30 seconds consuming sectors including pulp and paper, soaps and detergents, aluminina and textiles. Sales volumes declined in 5:39 5 minutes, 39 seconds quarter 3 primarily due to lower production at the mood facility. costic soda output was impacted by technical 5:46 5 minutes, 46 seconds issues which in turn reduce hydrogen peroxide volumes as well. We expect the production to normalize by March uh 2026 5:56 5 minutes, 56 seconds in two months from now. Prices are expected to remain stable barring any material changes in market conditions. 6:04 6 minutes, 4 seconds on the suspension PVC business. As mentioned earlier, the suspension PVC business faced a difficult environment 6:12 6 minutes, 12 seconds in Q3 with a perfect storm of adverse conditions including weather related production disruptions, lower import 6:21 6 minutes, 21 seconds prices following the non-implementation of the long awaited anti-dumping duty and softer domestic demand due to both 6:29 6 minutes, 29 seconds seasonality and uncertainty around regulatory action. A key positive development post the end of the quarter 6:37 6 minutes, 37 seconds has been the decision by the Chinese government to withdraw the export tax rebate on PVC suspension PVC effective from April 2026. 6:47 6 minutes, 47 seconds This rebate which amounted to 13% of the export price or roughly around 70 to 80 per metric ton had been a significant 6:57 6 minutes, 57 seconds factor supporting Chinese exports to India. Its withdrawal is expected to reduce the price advantage of Chinese 7:04 7 minutes, 4 seconds exports and indeed has already helped improve market sentiment in the last few weeks. Despite the challenging operating 7:13 7 minutes, 13 seconds environment, we continue to execute our strategic priorities with discipline. 7:18 7 minutes, 18 seconds Our base PVC expansion has seen precision and execution with the new line reaching 100% utilization in quick 7:26 7 minutes, 26 seconds time with key capacity additions and custom manufactured chemicals nearing completion, 7:33 7 minutes, 33 seconds new products gaining traction and the regulatory and structural developments supporting improved market sentiment 7:40 7 minutes, 40 seconds particularly in suspension PVC. We believe that the company is well placed to emerge stronger from what has been a 7:47 7 minutes, 47 seconds long trough and deliver sustainable growth going forward. 7:52 7 minutes, 52 seconds On a personal note, after 13 years at the helm, I will be stepping down as managing director of the company with effect from the 1st of April 2026. 8:02 8 minutes, 2 seconds I would like to take this opportunity to place on record my sincere appreciation to our shareholders, the analyst community and all other stakeholders for 8:11 8 minutes, 11 seconds the understanding, trust and support you have extended to the company and to me personally over the years. Subject to 8:19 8 minutes, 19 seconds requisite approvals, Mr. Ganesh Kumar will be taking over as managing director from April and I'm confident that the 8:26 8 minutes, 26 seconds company will continue to build on its strong foundations under his leadership. 8:32 8 minutes, 32 seconds Now I'd like to invite a CFO Modi to walk you through the financial performance of the company. 8:38 8 minutes, 38 seconds Thank you Rahmar and a very good afternoon to all the participants on the call. 8:44 8 minutes, 44 seconds Talking about the performance in Q3 FI26, the company went through a very difficult quarter. 8:51 8 minutes, 51 seconds On a consolidated basis, the company recorded revenues of rupees 835 crores, a 20% drop on a year-on-year basis. The 9:00 9 minutes net loss for the quarter stood at rupees 119 crores. Now coming to the quarterly segment wise performance. The specialty 9:08 9 minutes, 8 seconds chemical segment generated revenues of 336 crores with volume increasing 13% on 9:15 9 minutes, 15 seconds yearon-year basis. The value added chemical segment revenue stood at rupees 105 crores for the quarter down from 9:22 9 minutes, 22 seconds rupees 153 crores reported in the same period last year. 9:27 9 minutes, 27 seconds performance was impacted by price volatility and production and related challenges as mentioned by Rakma 9:33 9 minutes, 33 seconds earlier. The suspension PVC recorded a top line of rupees 3094 crores for the 9:40 9 minutes, 40 seconds quarter down from rupees 525 crores in the respective quarters last year mainly due to lower volumes on account of 9:48 9 minutes, 48 seconds weather related disruptions and adverse pricing dynamics due to unabated damping which served as a significant headwind 9:55 9 minutes, 55 seconds throughout the quarter. Looking at the split of revenues for the quarter, specialty chemicals contributed 40% of 10:03 10 minutes, 3 seconds revenues. Value added chemicals accounted for 13% while the sus suspension PVC segment comprised the remaining 47%. 10:12 10 minutes, 12 seconds For 9 months FI26, the company reported revenue of 2,968 crores with Eida at rupees 4 crores while the net loss for the period was at rupees 234 crores. 10:25 10 minutes, 25 seconds Coming to the segment one highlights during the 9 month period while the value added chemicals and suspension PVC witnessed a drop due to pricing pressure 10:34 10 minutes, 34 seconds and lower volumes specialty chemicals registered a marginal growth during the period the company incurred a one-time 10:42 10 minutes, 42 seconds impact of rupees 2.68 Once it site grows due to the implementation of the new labor codes. As Rafar highlighted, we 10:50 10 minutes, 50 seconds are seeing green tools emerging more specifically in the suspension PC space. 10:56 10 minutes, 56 seconds This combined with the traction that we are gaining for the new products in the custom manufacturer chemicals business will help improve the profitability of 11:04 11 minutes, 4 seconds the company in the coming quarters. With this we conclude the presentation and open the floor for further discussions. 11:15 11 minutes, 15 seconds Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press 11:22 11 minutes, 22 seconds star and one on their touchstone telephone. If you wish to remove yourself from the question queue, you 11:29 11 minutes, 29 seconds may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will 11:37 11 minutes, 37 seconds wait for a moment while the question queue assembles. 11:44 11 minutes, 44 seconds We take the first question from the line of Rohit Nagaraj from 361 capital. Please proceed. 11:52 11 minutes, 52 seconds Uh thanks for the opportunity. Also first question on R32. So you mentioned that the swing plant will be operational 12:00 12 minutes by the end of this quarter. Uh so uh is it possible for us to operate the plant 12:06 12 minutes, 6 seconds at its optimal capacity throughout FI27 and uh which are the markets that we are targeting for R32? Is it going to be 12:15 12 minutes, 15 seconds domestic or a mix of domestic plus exports? Thanks. Okay. Uh thanks for the question Rohit. 12:23 12 minutes, 23 seconds Uh the first uh uh swing plant would have a capacity of around 2 KT and that should come in by the end of this 12:30 12 minutes, 30 seconds quarter. It will have some ramp up period. It will not operate at 100% from day one. There will be some ramp up 12:38 12 minutes, 38 seconds obviously like we always do with all our expansions. We would aim to get to 100% as early as possible as we had done in 12:46 12 minutes, 46 seconds phase PVP as well. And uh that would be our aim but I would not say that it would run at 100% from day one. Uh this 12:54 12 minutes, 54 seconds 2K should be we should be selling it in the domestic market. But once we have the full 14 KT online next year that would be a mix of domestic and exports. 13:06 13 minutes, 6 seconds Sure. Uh thanks. Uh the second question uh in our highlights key highlights we have mentioned that CMCD performance was 13:13 13 minutes, 13 seconds impacted by agrochemical slowdown. Uh but our new product development and uh 13:20 13 minutes, 20 seconds cexs are on on time. uh here in terms of setback uh is it going to be still a 13:28 13 minutes, 28 seconds short-term setback on the agrochemicals and we uh expect that you know FI28 things should again come back to a large 13:37 13 minutes, 37 seconds uh part to you know normalized business our earlier guidance of thousand crores for FI27 has been postponed by a couple 13:45 13 minutes, 45 seconds of quarter is there any possibility of that getting further stretched to maybe a second half of FI28 just a broader view on this. Thank you. 13:55 13 minutes, 55 seconds Okay. Hi, this is Krishna here Rohit. Um as we outlined in the last quarter call, 14:02 14 minutes, 2 seconds the global you know market you know remains mixed. um the demand is picking back up but there's a lot of price 14:10 14 minutes, 10 seconds pressure due to um lowc cost generics um in terms of um you know from China 14:17 14 minutes, 17 seconds and um while this is not impacting us directly in any way the you know the the launch of new molecules by the 14:26 14 minutes, 26 seconds innovators uh the ramp up is not happening as quickly as they had originally anticipated and so uh we see 14:35 14 minutes, 35 seconds this impacting in the near term but not in the long term. The long-term projections and the demand uh for many of the molecules we have commercialized uh is very healthy and and very strong. 14:48 14 minutes, 48 seconds So uh from a guidance standpoint you know we are still comfortable you know while there is a delay by a few quarters 14:56 14 minutes, 56 seconds in terms of our ramp up to the thousand quarters it's a th00and crores uh we don't see you know any significant 15:06 15 minutes, 6 seconds um issues in realizing that by uh by FY 2728. 15:15 15 minutes, 15 seconds Sure. Uh thanks uh thanks a lot for answering all the questions uh and all the best. Thank you. 15:23 15 minutes, 23 seconds Thank you. 15:25 15 minutes, 25 seconds The next question is from the line of Pujan Sha from Molecule Ventures. Please proceed. 15:32 15 minutes, 32 seconds Yeah. Hi sir and thanks for the opportunity. Am I audible or uh you're you're audible please please go ahead. 15:40 15 minutes, 40 seconds Yeah you're okay. My uh so first question would be the consideration of uh we have seen a uh PVC price hike of 7 15:49 15 minutes, 49 seconds to 8 rupees uh and there is also a discussion on MIP which is going on industries forward. So first question 15:57 15 minutes, 57 seconds would be on the MIP that how how much tenure we have been looking in terms of government uh that they will allow us a 16:06 16 minutes, 6 seconds leeway uh for MIP and are we filing any ADD uh refiling the ADD XUS or we are 16:15 16 minutes, 15 seconds still on the uh uh we we are still in the deciding mode that we want to file ADD or not. 16:23 16 minutes, 23 seconds Okay. Uh thanks for the question. uh as far as the you're right there have been uh uh there have been a few PVC price 16:32 16 minutes, 32 seconds increases rolled out from January onwards uh which was what I was talking about when I said that the sentiment has changed and uh we are seeing a positive 16:41 16 minutes, 41 seconds upswing right now as far as MIP is concerned this is traditionally a short-term measure which can be up to a 16:48 16 minutes, 48 seconds year and that is u while and this is a measure it's a bridging measure that will give time to to the industry to 16:56 16 minutes, 56 seconds under to apply for any other longerterm solutions that they see that we see fit and the industry is 17:05 17 minutes, 5 seconds looking at uh uh certain other uh longerterm measures that we have approached the government on and we are 17:13 17 minutes, 13 seconds confident that uh what one of those will move ahead in the in the coming months. 17:19 17 minutes, 19 seconds uh we'll be able to give you better details on this uh in the maybe in a couple of uh in a few weeks time. 17:26 17 minutes, 26 seconds So any expectation and any timeline for MIP or it is just uh right now industry 17:33 17 minutes, 33 seconds uh discussion so I won't be able to justify the timeline. 17:37 17 minutes, 37 seconds No MIP is know we wouldn't obviously we would not be able to come here and give you a timeline on that but I all I can 17:45 17 minutes, 45 seconds say is that the process started uh some time back and uh it is at least uh halfway into the process. So I think and 17:53 17 minutes, 53 seconds this is not a very long drawn out process. So I think we should see some traction on that uh uh in in in a couple 18:01 18 minutes, 1 second of months just okay got it on the s uh this R32 front. 18:12 18 minutes, 12 seconds So just wanted to understand the uh the current prices versus the last quarter prices is that a sperm prices has been 18:20 18 minutes, 20 seconds stayed along or it has been cooled off on a largely basis right now. 18:27 18 minutes, 27 seconds It's it's it's stable. There is no major change in R32. 18:33 18 minutes, 33 seconds So want to understand sustainable thing is that if you look at a break even on R32. So understanding 18:42 18 minutes, 42 seconds that it will take time to take to 14 KTPA. But if we want to understand a break even point at which we have been 18:49 18 minutes, 49 seconds able to sustainably generate uh at least a flat IDA margin. So what would be the 18:56 18 minutes, 56 seconds break even price or would it be difficult to justify because right now the temporary scenario has been changing. 19:04 19 minutes, 4 seconds No, we are very confident that this is a very short uh term uh break even uh for this project. We believe that it will 19:12 19 minutes, 12 seconds not extend beyond uh a couple of years. 19:17 19 minutes, 17 seconds Okay. I just wanted to understand on the uh anti-involution front are we seeing any uh improvement in PVC on 19:26 19 minutes, 26 seconds anti-involution front or it is just right now on the state of books only. 19:31 19 minutes, 31 seconds No that is a very concrete move on that front. uh in fact the withdrawal of the export tax rebate that I was talking about uh that was announced by the 19:40 19 minutes, 40 seconds Chinese government on multiple products including suspension PVC uh will take effect from the 1st of April 2026 uh 19:48 19 minutes, 48 seconds that is in a couple of months from now and that is in a sense to uh uh you know removes the incentives that were being 19:56 19 minutes, 56 seconds given for exporting all that capacity that had been set up without real economic justification. So what we 20:05 20 minutes, 5 seconds expect this to fuel would be an advancing of the rationalization of some of the carbide PVC capacity. Uh this 20:14 20 minutes, 14 seconds could accelerate it at least that is what we believe once this export tax rebate withdrawal uh is completely you 20:22 20 minutes, 22 seconds know that withdrawal comes into effect on the 1st of April. uh we do believe that some of those carbide PVC 20:29 20 minutes, 29 seconds capacities which are dependent on merchant carbide purchase could uh ru you know those capacities could be 20:36 20 minutes, 36 seconds rationalized uh uh sooner than we thought. So I think this is one step forward in the anti-involution uh program of the Chinese government. 20:47 20 minutes, 47 seconds Got it. And uh uh uh if we look at the prices right now 20:55 20 minutes, 55 seconds and this ining or this export duty incentives been removed do you feel that in a shortterm like let's suppose in a 21:03 21 minutes, 3 seconds Feb march there would be a dumping effect which can be seen due to low prices uh start keeping on uh like 21:12 21 minutes, 12 seconds inventory will be filled by low pricing and then eventually it will reset to a new pricing. Is it a possibility that would happen right now or it is now a 21:21 21 minutes, 21 seconds far case scenario because shipping time and all these delays will take time to ultimately reset to the new prices? 21:29 21 minutes, 29 seconds It's it's a very packed question from your side and I think that uh the possibility definitely is there. Uh since this was announced we have also 21:36 21 minutes, 36 seconds been tracking it. uh will there be a sudden flood of uh imports coming in to beat the April deadline and uh so all a 21:44 21 minutes, 44 seconds lot more comes in right now and then uh it settles into the higher level but actually what we are seeing is that the 21:51 21 minutes, 51 seconds prices have only gone up in January and it continues to go up in February and we hear that even some of the older orders 21:59 21 minutes, 59 seconds placed on Chinese suppliers have not been shipped out so I guess there is some logistic issues as well that the Chinese exporters are facing 22:07 22 minutes, 7 seconds And therefore since we are already into midFebruary uh we have hardly 6 weeks now. So the the risk of it coming in 22:16 22 minutes, 16 seconds after the 31st of March deadline is there. So there could still be some increase in quantities coming in in 22:23 22 minutes, 23 seconds March but uh we believe that it is manageable especially given the fact that the demand has uh come back strongly. 22:32 22 minutes, 32 seconds Got it sir. I will just jump back in the question. Thank you for detailed answer. Thank you. 22:40 22 minutes, 40 seconds Thank you. 22:42 22 minutes, 42 seconds Before we proceed with the next question, a reminder to the participants in order to ask a question, you may press star N1 on your touchstone 22:51 22 minutes, 51 seconds telephone. We take the next question from the line of Nick Hill Gandhi from Bajage Life Insurance. Please proceed. 23:01 23 minutes, 1 second Hello. Uh thank you for the opportunity. Am I now audible? Yes. N please go ahead. 23:08 23 minutes, 8 seconds Yes. Yeah. Yeah. Uh sir, concerning the current trajectory, how should we look from the fundraising perspectives? 23:15 23 minutes, 15 seconds Should we expect any kind of fundraising in the form of equity or debt in in the next one two years kind of a time frame 23:23 23 minutes, 23 seconds because currently we are facing some losses. And the second question which I just wanted to understand is key at what 23:31 23 minutes, 31 seconds price uh since we have seen around 6 to 8 rupees kind of price increase in SPVC and at what price should we expect and 23:40 23 minutes, 40 seconds break even for SPVC as well as for uh PSBC. 23:47 23 minutes, 47 seconds uh this morely on the uh fundraising part actually fundraising is an ongoing exercise uh both for projects and also 23:55 23 minutes, 55 seconds for our short-term requirements. uh I think those will go as per our plans that we have done over time and as far 24:02 24 minutes, 2 seconds equity raising is concerned we don't have any plans as of now I can't come out about for the next two years but we 24:09 24 minutes, 9 seconds don't have any plans as the question on the uh suspension the 24:17 24 minutes, 17 seconds break even actually we look at it more from the contribution that is the that uh contribution that we get uh rather 24:25 24 minutes, 25 seconds than the uh prices because the prices may move up and down but what really matters is the margin get that we get 24:32 24 minutes, 32 seconds from uh uh the suspension PVC after all the variable cost that's what we look at 24:39 24 minutes, 39 seconds that uh generally varies between somewhere around 11 to 12,000 rupees per cup 24:50 24 minutes, 50 seconds and for paste PVC a paste PVC it's slightly difficult to sort of Because Kemplast is a is an 24:59 24 minutes, 59 seconds integrated entity. It has plastic chloromthane CMCD all that as an integrated operation. So it'll be 25:08 25 minutes, 8 seconds difficult for us to look at the AIDA of individual products and then look at the breaking. But I think in Pace B we see 25:15 25 minutes, 15 seconds the price increase has only been uh you know we've just rolled out one price increase of around 2,000 rupees very recently. And I think we have some way 25:23 25 minutes, 23 seconds to go there uh before we can say we are comfortable uh suspension PVC I think by 25:30 25 minutes, 30 seconds we we are in the comfort zone we're heading into that comfort zone. 25:34 25 minutes, 34 seconds Yeah. When we break we are talking about the break of the PBT level. 25:41 25 minutes, 41 seconds Okay. Okay. So at the current pricing scenario should we expect it is an break even kind of an thing for uh uh suspension PVC. 25:51 25 minutes, 51 seconds Suspension PVC for by February and March. Yes. The answer is yes. 25:57 25 minutes, 57 seconds Oh okay. Okay. So if we expect 1 to2 rupees kind of price hike in the PVC prices. So we will be at an break even kind of thing. 26:06 26 minutes, 6 seconds uh I think with the current numbers we would already be at the break even uh uh level in February and March because uh 26:14 26 minutes, 14 seconds it's not just the visible price increases there are also some discount schemes that we were we had to give in 26:20 26 minutes, 20 seconds December which have been rolled back now okay thank you sir for the interview 26:28 26 minutes, 28 seconds thank you Nick thank you we take the next question from the line 26:35 26 minutes, 35 seconds of J from Dalal and Rocha. Please proceed. 26:41 26 minutes, 41 seconds Yeah, good afternoon sir. Uh thank you for the opportunity. Uh sir, just carry forwarding the last question. Uh you 26:50 26 minutes, 50 seconds saying that we are now breaking even in the suspension PBC at the break at the the contribution level. How much more 26:57 26 minutes, 57 seconds price increases we will require now to break even at the IITA level? 27:03 27 minutes, 3 seconds Uh okay. Uh no when we said the break even we were talking about the PBT level not not contribution level. So that is that is really what it is. 27:14 27 minutes, 14 seconds Obviously you know given the investment that we have you would need uh to get a decent return on the investment you 27:21 27 minutes, 21 seconds would need to earn uh uh more. So this is really at the a break even level but this is the first step that that's what 27:29 27 minutes, 29 seconds I would like to make a point. We still need to ensure that we can't take our eyes off the ball in terms of preventing unfair trade practices. We need to 27:37 27 minutes, 37 seconds ensure that dumping is stopped. Uh but this is a good uh first step. Got it. 27:43 27 minutes, 43 seconds Sir, one last question. Um assuming uh the the Chinese prices move up post 27:50 27 minutes, 50 seconds April rather post March because of this 13 withdrawal of 13% export rebate tax. 27:57 27 minutes, 57 seconds How much more price increases are possible? I think the seven you you you spoke about 78 rupees already being 28:04 28 minutes, 4 seconds increased. So does that equate to 13% roll back or there is still more room for the prices to go up? 28:13 28 minutes, 13 seconds See I you can't really relate uh that export tax rebate to the current price increases. You really it would be 28:21 28 minutes, 21 seconds difficult to uh draw a direct correlation between the two. it is a mix of uh economic conditions uh and and the 28:30 28 minutes, 30 seconds change in sentiment the the return of demand in India and so on. Uh however we would not be able to draw that direct 28:38 28 minutes, 38 seconds correlation and uh as to how much more is possible that is not something that we can predict with any certainty at this point in time. 28:48 28 minutes, 48 seconds Okay. Okay. Yeah. Thank you sir. One second sir. One sec. 28:52 28 minutes, 52 seconds And sir just in case that the prices move up by say 8 to 10 rupees how much the contribution will move up from. Yes. 29:00 29 minutes From say 11 to 12,000. 29:03 29 minutes, 3 seconds That depends on how the feed stock prices also move. So it's not just the contribution is uh uh you know result of 29:11 29 minutes, 11 seconds both the product price and the feed stock price. Uh so we would expect that the feed stock price would also start 29:18 29 minutes, 18 seconds moving up as the PVC prices move up. Uh but obviously in a rising market as we've always said in these calls in a 29:26 29 minutes, 26 seconds rising market we would get the benefit of the time lag between the product price movement increase and the feed 29:33 29 minutes, 33 seconds stock uh price uh change. Whereas in a falling market we would always be hit by that. Uh the last three years unfortunately have been the latter case. 29:43 29 minutes, 43 seconds Uh hopefully going forward we would get the benefit of that. Okay. So perfect. Thank you so much. 29:52 29 minutes, 52 seconds Thank you. 29:54 29 minutes, 54 seconds We take the next question from the line of Bat from Quest Investment Advisor Private Limited. Please proceed. 30:02 30 minutes, 2 seconds Hi sir, good afternoon and thanks for the opportunity. So my first question as you said that CBC price has already 30:08 30 minutes, 8 seconds moved up by 78 rupee and hence we are at a break. So can you give some more color on EDC price which is a pit to how much 30:16 30 minutes, 16 seconds it has increased and how are we seeing the availability and demand scenario over period. 30:24 30 minutes, 24 seconds All right. ETC prices have been at around less than uh you know $200 right 30:31 30 minutes, 31 seconds now. uh if you look at the last few months from January onwards from around 30:37 30 minutes, 37 seconds $225 in uh by by around April or uh end of March prices are right now by end of 30:45 30 minutes, 45 seconds January it's come down to $194 these are all CFR Asia prices for us EDC only for 30:53 30 minutes, 53 seconds PVC because we uh don't uh do not use uh you know and a little for our suspension PVC we import VCM straight away So uh 31:02 31 minutes, 2 seconds both EDC and VCF prices have been soft over the last 9 months uh in keeping with the softness in PVP prices 31:12 31 minutes, 12 seconds but post increase in this PVC price how are we seeing currently ruling in February and March and forward what if 31:21 31 minutes, 21 seconds you can give some yeah if PVC prices go up definitely VCM prices will follow uh because VCM is a 31:29 31 minutes, 29 seconds one-trick phoning which is used only for making PVC large 90. 31:35 31 minutes, 35 seconds So therefore uh it should follow PVC but like I was explaining to the uh uh previous caller as well uh the there 31:44 31 minutes, 44 seconds will be a lag in a rising market which would work to our benefit. Uh EDC dances to a different tune. It it is equally 31:51 31 minutes, 51 seconds dependent on uh power price energy price economics and also cost realizations. uh 31:59 31 minutes, 59 seconds we believe that EDC prices will also slowly move up and and uh ethylene will also play a role in that but it's not 32:06 32 minutes, 6 seconds going to move up sharply unless of course there is some major supply side uh constraint that develops all of a 32:13 32 minutes, 13 seconds sudden which we don't typically and can you give some color on 32:18 32 minutes, 18 seconds the uh spread between uh the past PVC and PCM price 32:27 32 minutes, 27 seconds uh can Can you give some sense on the spread of uh PH PVC and VCM? 32:36 32 minutes, 36 seconds Normally the uh VCM price you can say that that the spread between VCM and PVC suspension PVC right now is around $200. 32:46 32 minutes, 46 seconds It it usually moves between $175 to $200. 32:50 32 minutes, 50 seconds And uh PVC is another around $200 above suspension. 32:56 32 minutes, 56 seconds Okay, this is with the post as you said that price of paste VCAS we have seen increase by 3,000 rupees per turn 33:04 33 minutes, 4 seconds correct 2,000 rupees so far and how is the demand in past PVC in domestic market as well as PVC if you 33:13 33 minutes, 13 seconds can give some more color the demand of uh suspension PVP till uh 33:20 33 minutes, 20 seconds December was actually a little flat in fact marginally negative if you look at April to December 95 that uh the 33:28 33 minutes, 28 seconds apparent consumption in India is around 3.2 million tons as compared to 3.3 million tons in the same period last 33:37 33 minutes, 37 seconds year and this is largely because of uh this year there's been a far more extended monsoon and a pretty strong 33:44 33 minutes, 44 seconds monsoon at that as also a lot of uncertainty on price volatility and regulatory uncertainty. So there has 33:53 33 minutes, 53 seconds been a hold back in demand uh and uh de des detocking happened but we believe that from January with a lot more uh 34:02 34 minutes, 2 seconds positivity around prices and the return of positive sentiment in the market we are seeing a good strong demand uh 34:10 34 minutes, 10 seconds returning therefore for the year as a whole I believe that we would make up this very small uh negative in the first 34:17 34 minutes, 17 seconds nine months and we'll end up either at the same level as last year or maybe slightly more than that as far as pace PVC is 34:25 34 minutes, 25 seconds concerned actually the demand has been pretty strong there's been an 8% increase in the first nine months of the year on a year-on-year basis and we are 34:33 34 minutes, 33 seconds seeing a very strong pull in uh uh you know in January and February as well okay this on CRM I mean custom 34:43 34 minutes, 43 seconds manufacturing I miss initial remark so we we were targeting around 1,000 cr 34:49 34 minutes, 49 seconds kind of a top line by end of 27 in 26 27. So where are we in that journey or 34:57 34 minutes, 57 seconds we'll be able to achieve that or there will be some quarter league will be there 35:09 35 minutes, 9 seconds indicated last call that we anticipate a delay to quarters and we continue to 35:17 35 minutes, 17 seconds hold that uh that projection. So there's just a deferment primarily because the ramp up 35:24 35 minutes, 24 seconds of some of the new molecules are not happen as quickly as we anticipated. 35:31 35 minutes, 31 seconds The pipeline continues to be strong. Our engagement with all our customers in terms of what we are working on new 35:39 35 minutes, 39 seconds projects continue to be strong as well. Um but as you are aware the whole active industry 35:46 35 minutes, 46 seconds has been going through a very difficult cycle for the past couple of years and u each one of them one by one is coming 35:55 35 minutes, 55 seconds out of that and which is which is impacting many of their pipeline launches and ramp up. 36:05 36 minutes, 5 seconds Are we seeing some I mean bottoming out of that uh their inventory earlier which was piled up the stocking as well as the 36:14 36 minutes, 14 seconds new launches is bottomed it out and we are seeing any uptick. 36:19 36 minutes, 19 seconds Correct. So what we hear is that the demand is starting to take off. So the that inventory correction as you pointed 36:27 36 minutes, 27 seconds out uh you know it's behind the however the price pressure continues uh 36:35 36 minutes, 35 seconds in terms of uh some very high capacity of uh generic manufacturing put up in 36:42 36 minutes, 42 seconds China. So that's impacting at a price level which in turn is impacting some of 36:50 36 minutes, 50 seconds the new molecules uh because the uh the tendency is to use the older uh 36:57 36 minutes, 57 seconds chemistries and chemicals which are now available at much lower prices. So the incentive to switch from a farmer 37:04 37 minutes, 4 seconds standpoint um you know is that incentive is not as good uh as it could have been. 37:14 37 minutes, 14 seconds Can you give some more color? I T RF32 how much potential do we have and when we start to manufacturing the same 37:24 37 minutes, 24 seconds and does it we factor in,000 K uh revenue R32 like we mentioned we are targeting a 37:32 37 minutes, 32 seconds total capacity of around 14,000 tons. Uh there there will be three units there. 37:38 37 minutes, 38 seconds We are first converting our R22 plant into a spring plant of reaching 2,000 tons that will get uh ready by uh before 37:48 37 minutes, 48 seconds the end of this till financial year itself. Then there is another new plant of another 2,000 tons and that will get 37:55 37 minutes, 55 seconds ready by the first quarter of next year and then last 10,000 tons which get ready by the end of this calendar. 38:05 38 minutes, 5 seconds uh so overall in our first full year I think we we target to make around 11,000 tons and we should uh have around uh 38:14 38 minutes, 14 seconds annual revenue of this uh how much would that be 38:23 38 minutes, 23 seconds 550 okay great sir yeah part of that cmc 38:33 38 minutes, 33 seconds that's a separate sort of line and this is not part of that group. 38:40 38 minutes, 40 seconds Okay. Correct. So in last I mean how much is currently debt? Okay. Okay ma'am. 38:46 38 minutes, 46 seconds I would request you to join back the queue as participant waiting for their turn. Thank you. 38:53 38 minutes, 53 seconds Thank you. We take the next question from the line of Kiran Kard from Nights Capital Management LLP. Please proceed. 39:03 39 minutes, 3 seconds Hi, good afternoon. Apart from Westlake uh Westlake Corporation rationalizing some PVC raising capacity, are you observing any more shutdowns? 39:15 39 minutes, 15 seconds Uh it's an interesting question actually. We did see some rationalization that has happened in Europe. There was one Netherlands uh 39:23 39 minutes, 23 seconds plant at around 230,000 tons that shut down towards the end of last year. uh 39:30 39 minutes, 30 seconds and then a few other uh plants of the same uh company uh in different parts of Europe have gone into receiverhip. So I 39:39 39 minutes, 39 seconds think uh there are uh there is a lot of stress especially in Europe in terms of the PVC industry there and uh there 39:48 39 minutes, 48 seconds could be some announcements we do not know or further announcements as far as China is concerned like I mentioned 39:55 39 minutes, 55 seconds earlier in the call uh once this uh withdrawal of the export tax rebate plays out there could be an acceleration 40:03 40 minutes, 3 seconds of rationalization of the carbide PVC capacity which is dependent on purchase of calcium carbide. So that could be some rationalization there as well. 40:16 40 minutes, 16 seconds How much capacity are you expecting um for carbide base? 40:22 40 minutes, 22 seconds The these are not things that we can put a uh number on. All I can say is that China has around 20 million tons of 40:30 40 minutes, 30 seconds carbide PVC capacity of which around 4 to 5 million tons depends on purchase of calcium carbide uh on a merchant basis. 40:39 40 minutes, 39 seconds How much of that and all of this is operating at maybe around 75 80% uh operating rate right now. So how much of 40:48 40 minutes, 48 seconds that will shut down and what impact it will have was yet to be seen. Okay. Okay. Thank you. 40:59 40 minutes, 59 seconds Thank you. 41:01 41 minutes, 1 second Before we proceed with the next question, a reminder to the participants in order to ask a question, you may 41:08 41 minutes, 8 seconds press star in one on your touchstone telephone. 41:13 41 minutes, 13 seconds We take the next question from the line of Pranit from Sam Samatwa. Please proceed. 41:20 41 minutes, 20 seconds Uh yeah, thank you for the opportunity. 41:23 41 minutes, 23 seconds So in terms of the new FDA with the European Union, do we see any green truths from this or do we see any negative factors? 41:30 41 minutes, 30 seconds Can you explain how the company sees it with the European Union? Um uh see the 41:39 41 minutes, 39 seconds way we would see it is that I I am not sure that we will have the the details are yet to be seen because the schedules the detailed schedules are yet to be 41:48 41 minutes, 48 seconds released. So we would need to uh uh figure that out when it uh is officially released and anyway the uh approvals 41:56 41 minutes, 56 seconds from the European Parliament and uh on both sides will also take time. So it is not something that is going to impact us 42:03 42 minutes, 3 seconds tomorrow or next month. uh but if assuming that the automo imports into India increase from the from Europe and 42:11 42 minutes, 11 seconds lot of the artificial leather that is made from paste PVC uh is PVC based and 42:18 42 minutes, 18 seconds a lot of our customers are exporting the leather cloth to European car manufacturers that could result in some 42:27 42 minutes, 27 seconds positive uh uh demand pull in the market uh on suspension PVC I don't see much on 42:34 42 minutes, 34 seconds uh CMCD. I'm sure there would be some benefits. 42:37 42 minutes, 37 seconds Exactly. Yeah. We will have to wait and see what is included and what's captured there. But um there should be some 42:46 42 minutes, 46 seconds advantages because on the CMCD 100% of our sales or our products are exported uh eventually. So there should be some uh benefit there as well. 42:58 42 minutes, 58 seconds Understood. And in term in terms of the AD could you also could you repeat I think I missed it. So we we are not 43:06 43 minutes, 6 seconds going to have the AD for this uh anymore right from the European Union. 43:11 43 minutes, 11 seconds Uh the add on suspension PVC was not uh uh implemented. The ADD on based PVC imports from European Union and Japan. 43:23 43 minutes, 23 seconds That case is still ongoing and we are expecting the final finding from the DGTR uh before the end of this quarter 43:31 43 minutes, 31 seconds and after that of course it will have to go to the finance ministry for uh notification. We'll have to wait and see how that is received. 43:41 43 minutes, 41 seconds Understood. So but as China is getting less competitive because they're removing the subsidies that's a green shoot for us uh overall for suspension 43:49 43 minutes, 49 seconds PBC. Is that right understanding? That is right on suspension PVC. The removal of the export tax benefit that they had, 43:57 43 minutes, 57 seconds the rebate that they had is going to be a definite positive for the suspension PVC industry here in India because uh 44:06 44 minutes, 6 seconds China was the significant exporter to India. It was flooding the Indian market with lowriced imports exports. 44:16 44 minutes, 16 seconds uh so at let's say in terms of imports broad-based how much would have China contributed versus EU and Japan 44:24 44 minutes, 24 seconds okay u EU and Japan is in PVC China's position is in suspension PVC so I think 44:31 44 minutes, 31 seconds we should you know EU and Japan are not so much Japan is the player in suspension as well EU not so much on 44:40 44 minutes, 40 seconds pace PVC China is not so much a player because there is already an anti-dumping due duty that is in play. So let me just 44:47 44 minutes, 47 seconds uh tell you the you know the broad uh numbers for suspension first. Out of the total import arrivals of around 2 44:56 44 minutes, 56 seconds million 2.1 million tons in uh April to de the 9month period April to December 25, China accounted for around 52% of the arrivals. Japan accounted for 14%. 45:09 45 minutes, 9 seconds Taiwan accounted for 9% and Korea accounted for 6%. So these were the four large exporters to India. As far as the 45:18 45 minutes, 18 seconds suspension is concerned, if you look at uh paste PVC out of the around 62,000 45:25 45 minutes, 25 seconds tons of import arrivals in the 9-month period ended December 25, Europe accounted European Union accounted for around 45%. Korea for 22%. 45:36 45 minutes, 36 seconds And then you had the Malaysia for 8% and then Taiwan and Thailand 7% each. So 45:44 45 minutes, 44 seconds this is really the import arrival break up. Understood. So that is actually insightful. But in terms of price 45:52 45 minutes, 52 seconds parity, what would be let's say import versus us? The price parity the cost of production see landed price for them 46:00 46 minutes versus cost of production for us. What would be the priority between that? 46:04 46 minutes, 4 seconds Okay. That is really the subject of the anti-dumping duty and the DGTR that is exactly what they calculate and that is 46:12 46 minutes, 12 seconds how they work out on the work out the injury margin and the dumping margin that that's something that we can discuss offline. 46:21 46 minutes, 21 seconds Understood. Uh thank you that's been interesting. Thank you for your answers. Thank you very much. 46:30 46 minutes, 30 seconds Thank you. 46:32 46 minutes, 32 seconds We take the next question from the line of Nikil Gandhi from Bajage Life Insurance. Please proceed. 46:40 46 minutes, 40 seconds Thank you for the opportunity again. Uh so I just wanted to understand our 32 kota and how should we look into that 10,000 K city which we are planning. 46:51 46 minutes, 51 seconds uh given the fact that we have resized our ambition and our our plans in this 46:57 46 minutes, 57 seconds product uh to 14,000 tons uh and given that we had also a presence in the R22 47:05 47 minutes, 5 seconds production uh in the 200910 period we are quite confident that we would get the kota for this for this volume that we are going ahead with. 47:18 47 minutes, 18 seconds Okay. Okay. Okay. And the second thing is relating to the CNC business. So for the CNC business though we have highlighted that we will be achieving 47:26 47 minutes, 26 seconds that target with the delay of two three quarters. So we expect 20 25% kind of initial margin that is which we have given to be the same. 47:40 47 minutes, 40 seconds Yeah. In the longer term, yes. Uh like we had mentioned in the earlier calls as well. Uh when we are sort of uh pushing 47:48 47 minutes, 48 seconds through a number of new products, there is a learning curve. So the margin level will be slightly lower in the initial years. But on a steady state basis, we 47:57 47 minutes, 57 seconds still hold that number. That's what the industry is making. So we believe that we will also be in that range. 48:04 48 minutes, 4 seconds Okay. Is there any tentative number which we can model in for 27 to for alpha 28 H1 H2 or something of that sort? 48:14 48 minutes, 14 seconds We would uh proper avoid giving any specific guidance. We have already sort of uh said that we'll be somewhere 48:23 48 minutes, 23 seconds around we would look at the target of,000 crores by FI28. Beyond that I wouldn't like to sort of get into specific guidance. 48:32 48 minutes, 32 seconds Okay. Okay. Thank you so much. Thank you. 48:39 48 minutes, 39 seconds We take the next question from the line of Dr. Jane from Sapphire Capital. Please proceed. 48:48 48 minutes, 48 seconds Hello. Yes. 48:51 48 minutes, 51 seconds Am I audible? What kind of revenue are we expecting from the R32 plant? 48:57 48 minutes, 57 seconds Uh no, no. Can can you repeat that please? I lost that, sir. 49:02 49 minutes, 2 seconds What is the revenue that we are expecting from the R4 plant? 49:06 49 minutes, 6 seconds The first full year we should have around 550 crores. 600 crores roughly around 600. I did pay 550 earlier. My 49:14 49 minutes, 14 seconds team just corrected me. It should be around 600 crores. 49:20 49 minutes, 20 seconds And going forward that will be the full year. I'm talking about a full year of production after the ramp up etc. 49:29 49 minutes, 29 seconds Oh, all right. Thank you. Yeah. Thank you. 49:35 49 minutes, 35 seconds Thank you. We take the next question from the line of Pujan Sha from Molecule In Ventures. Please proceed. 49:44 49 minutes, 44 seconds Thanks for the opportunity again sir. I first wanted to understand the costic soda rising as we became the net 49:52 49 minutes, 52 seconds exporter and uh we see that once uh the additional um foreign integration 50:01 50 minutes, 1 second capacity comes up eventually it also follows by coming the costic sort of capacity as well. So do you feel that uh 50:10 50 minutes, 10 seconds the we remain the price will remain range bound over here on uh due to the scenario of uh already having a surplus 50:19 50 minutes, 19 seconds capacity or uh it is difficult right now to comment because of the muted demand. So what's your thought on costic? 50:29 50 minutes, 29 seconds uh costic soda you're right India from being a net importer for a very long time turned into a net exporter in the 50:36 50 minutes, 36 seconds last couple of years and today uh I think we export around half a million tons of costic soda a year u and and 50:45 50 minutes, 45 seconds prices are rangebound right now as you said we are at anywhere between 30 to 34 rupees per ton ditric ton and it is 50:53 50 minutes, 53 seconds hovering anywhere in that range uh it it can in different months it could be slightly higher in the higher end of the range. Sometimes it's at the lower end. 51:02 51 minutes, 2 seconds The one advantage that maybe we could claim to have is the fact that we are located in the south whereas most of the 51:10 51 minutes, 10 seconds capacity is concentrated in the west of the country and costic by nature of the product is transported you know it is 51:19 51 minutes, 19 seconds sold as 150% solution. So the transportation cost over large uh long long distances adds significantly to the 51:28 51 minutes, 28 seconds cost of the product. Therefore it is a largely a regional market. Uh therefore uh we are a little better definitely 51:37 51 minutes, 37 seconds than the rest of the you know at least producers in the western region. 51:42 51 minutes, 42 seconds uh new capacities coming up especially in u in in uh you know again in the western part of the region associated 51:50 51 minutes, 50 seconds with new PVC capacities would add to the exch from uh India. There is of course 51:58 51 minutes, 58 seconds definitely some demand improvement also happening on the uh end user side of the costic soda industry given the fact that 52:06 52 minutes, 6 seconds costic is a significant chemical used in the refining of critical minerals that are used in uh uh you know in in in the 52:15 52 minutes, 15 seconds EV industry etc. So there will be an improvement in demand as well but yes to 52:22 52 minutes, 22 seconds some extent prices we expect would remain rangebound. We'll have to wait and see uh once the new capacities start coming. 52:32 52 minutes, 32 seconds Uh thank you sir. And the second question is just to have a broad thought on can you just I I am new to the 52:39 52 minutes, 39 seconds industry so please spare me if I am asking a very new question but just wanted to understand what is 52:46 52 minutes, 46 seconds specifically R32 is is when we speak about the kota so what is that specific kota is it is it allocated by the 52:54 52 minutes, 54 seconds government how how it works the dynamic how it works is it that it is a protection for the domestic industry 53:02 53 minutes, 2 seconds uh it is about the environmental concerns that's why they have alerted with the court what is the key uh metric 53:09 53 minutes, 9 seconds where we look at the specifically kota thing the entire kota is not for protection this entire kota is arising out of an 53:17 53 minutes, 17 seconds international agreement uh amongst various countries and this is uh a kota that will be decided at the national 53:25 53 minutes, 25 seconds level and uh indicated by the government on the exact details of this may suggest that you contact us offline and we can 53:33 53 minutes, 33 seconds uh you know one of us can take you through uh you know the genesis of this the entire kota and the protocol and so on. 53:40 53 minutes, 40 seconds Sure that would be so please do contact we would be more than happy to take you through that. 53:47 53 minutes, 47 seconds Sure. And my last question is if you can you tell us the Q f prices of R32 and 53:55 53 minutes, 55 seconds R22 uh in percentage terms you can uh help just that wanted to understand the brief how the prices form of last quarter. 54:09 54 minutes, 9 seconds Actually R32 like Rahar mentioned earlier we had to commission the plant. 54:14 54 minutes, 14 seconds So we are not in the market for selling R32 currently. Uh the the R22 price for 54:23 54 minutes, 23 seconds uh the last quarter was around 3 lakh 5,000. 54:28 54 minutes, 28 seconds R32 prices currently are at around $7.5 per kilo. 54:35 54 minutes, 35 seconds Okay. And it is influenced from any it was if you look at it one year back it was at $4 a kilo. Okay. 54:44 54 minutes, 44 seconds Okay. 54:45 54 minutes, 45 seconds Okay. Got uh thank you so much. I will just connect you. Thank you. Thank you. Thank you. 54:53 54 minutes, 53 seconds We take the next question from the line of Rohit Nagaraj from 361 Capital. Please proceed. 55:01 55 minutes, 1 second Uh thanks for the followup. Uh so one question on the capeex front. So for this year and FI 27th uh what could be 55:09 55 minutes, 9 seconds the capeex and uh probably if you can split in terms of segment and maintenance capex. Thank you. 55:17 55 minutes, 17 seconds Apart from maintenance capex actually the announced capex is the R32 capex that we have announced and whatever 55:24 55 minutes, 24 seconds residual out of the CMCD expansions that we have announced and rest is only maintenance capex. So uh if you want 55:33 55 minutes, 33 seconds details of the maintenance capex and those details we can always take offline and provide you the details. So broadly 55:40 55 minutes, 40 seconds they say we don't see any large capex at least as of now. 55:44 55 minutes, 44 seconds No that helps. And second uh just theoretically speaking uh considering the current uh raw material or you know 55:53 55 minutes, 53 seconds VCM pricing environment uh if after 1st April the price goes up uh in the 56:00 56 minutes international market by 70 $80 would that construe to the uh spreads uh 56:07 56 minutes, 7 seconds entirely barring maybe some discounts for you know domestic production would that be the right assumption to work on. 56:16 56 minutes, 16 seconds Um this would not go down completely into the margin because there would be some increase in the feed stock price as 56:24 56 minutes, 24 seconds well because feed stock prices do follow the finished product prices but it will not there will be some improvement we 56:32 56 minutes, 32 seconds believe. Um the reason being the feed stock VCM price is largely determined in Asia by the PVC price in China. And if 56:42 56 minutes, 42 seconds the quantum of exports out of China fall uh and until such time that the capacity 56:49 56 minutes, 49 seconds rationalization happens that could be pressure on the PVC prices within China. 56:55 56 minutes, 55 seconds And if that happens then VCM prices could get uh u you know impacted uh downwards which could be favorable to 57:04 57 minutes, 4 seconds us. So I think it is a little early right now to talk about how much of it would uh uh flow down to the bottom 57:11 57 minutes, 11 seconds line. Uh let us just wait and see how it uh rolls out. We believe that there are certain positives there. 57:20 57 minutes, 20 seconds Uh thanks and all the best. Thank you very much. 57:27 57 minutes, 27 seconds Thank you ladies and gentlemen. Due to time constraints, we take that as the last question and would now like to hand 57:34 57 minutes, 34 seconds the conference over to the management for closing comments. 57:38 57 minutes, 38 seconds Thank you everyone for joining us again today on this earnings call and for all your uh probing questions. We appreciate 57:45 57 minutes, 45 seconds your interest in the company and if you have any further queries, please do contact SGA, our investor relations advisor. Thank you and uh good day. 57:58 57 minutes, 58 seconds Thank you on behalf of Kemp Plus and Mar Limited. That concludes this conference. 58:03 58 minutes, 3 seconds Thank you for joining us in Newad Connect your lines.