Chemplast Sanmar Limited — Q4 FY26

Chemplast Sanmar Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=rvrVVtCeqP4 Published: 3 weeks ago

0:01 1 second Ladies and gentlemen, good day and welcome to the Kemplar Surm Limited Q4 and FI26 earnings conference call. As a 0:10 10 seconds reminder, all participant lines will be in the listenon mode and there will be an opportunity for you to ask questions after the presentation concludes. 0:20 20 seconds Should you need assistance during this conference call, please signal an operator by pressing star then zero on your touchstone phone. Please note that this conference call has been recorded. 0:32 32 seconds Before we proceed, this conference call may contain forward-looking statements about the company which are based on the 0:40 40 seconds beliefs, opinions and expectations of the company as on date of this call. 0:46 46 seconds These statements are not the guarantees of future performance and involves risk and uncertainties that are difficult to 0:52 52 seconds correct. I now hand the conference over to Mr. S. Ganesh Kumar, managing director, Kempl Sanmar Limited. Thank you and over to you sir. 1:03 1 minute, 3 seconds Thank you Sapnali and good morning everybody. Uh on behalf of Kemplus Sunmar Limited I extend a very warm 1:11 1 minute, 11 seconds welcome to everyone joining us on our call today. On this call we are joined by our CFO Mr. AR Balaji, Dr. Krishna 1:19 1 minute, 19 seconds Kumar Rangachari who heads our custom manufactured chemicals division, Mr. N. 1:24 1 minute, 24 seconds Murlaran, executive director of finance and SGA, our investor relations advisor. 1:30 1 minute, 30 seconds I hope everyone has had an opportunity to go through the financial results and investor presentation which have been 1:38 1 minute, 38 seconds uploaded on the stock exchanges and on our company's website. 1:43 1 minute, 43 seconds [clears throat] 1:44 1 minute, 44 seconds The financial year 2526 turned out to be very challenging year. During the year the company reported consolidated 1:52 1 minute, 52 seconds revenue of rups 4,224 crores and eida of rups 198 crores. The 2:00 2 minutes year was marked by persistent price pressures, excess global capacities, geopolitical disruptions, volatile feed 2:08 2 minutes, 8 seconds stock and energy costs and continued dumping of suspension PVC and phase PVC into India from China, Europe and Japan. 2:18 2 minutes, 18 seconds Uh getting into the details uh the specialtity segment recorded one of its strongest stronger quarterly sales at 2:26 2 minutes, 26 seconds rupees 475 crores reflecting 13% year-on-year growth. Sales volumes also registered a healthy 17% year-on-year increase mainly driven by pace PVC. 2:38 2 minutes, 38 seconds Now getting into the details of specialtity products within the segment. 2:43 2 minutes, 43 seconds Starting with space PVC in quarter 4 FI26, demand conditions remained relatively stable from the footwear 2:50 2 minutes, 50 seconds segment while the automotive and upholstery segments continue to see healthy traction. On the regulatory front, we have received the final 2:59 2 minutes, 59 seconds findings from DJTR in the ongoing anti-dumping duty investigation against imports from the European Union and 3:06 3 minutes, 6 seconds Japan. We await the notification by the finance ministry. This has already resulted in relatively lower import 3:14 3 minutes, 14 seconds bookings from Europe while implementation of the ADD is now expected during first half of FI 20267. 3:24 3 minutes, 24 seconds The Kadaloo based PVC facility operated through the year at 100% of capacity reflecting a very strong operational 3:32 3 minutes, 32 seconds performance. The realizations and margins also saw a steady uptake in fuel core. Overall, we remain positive on the 3:41 3 minutes, 41 seconds paste PVC business given the strong demand, relatively lower pressure on feed stock side and potential upsides 3:48 3 minutes, 48 seconds via implementation of ADD on imports from the EU and Japan. The ongoing war in the Middle East has had both its 3:56 3 minutes, 56 seconds positives and negatives. While prices and margins have improved, there has been some temporary concerns around 4:04 4 minutes, 4 seconds demand due to the non-availability of NP. 4:09 4 minutes, 9 seconds Coming to the custom manufactured chemicals business, Q4 saw healthy dispatches despite some sales getting deferred to the current financial year. 4:19 4 minutes, 19 seconds Performance during the quarter continued to be impacted by the slowdown in global agrochemical market led by pricing 4:26 4 minutes, 26 seconds pressure from low cost generic supply from China and slower ramp up of new molecules by innovators. 4:34 4 minutes, 34 seconds However, we believe the current weakness is temporary in nature and we are encouraged by the early signs of recovery supported by a strong order book for FI27. 4:45 4 minutes, 45 seconds On the expansion side, progress on MPB3 phase 3 continued as planned during the quarter. The pipeline continues to gain 4:53 4 minutes, 53 seconds momentum with 45 plus molecules progressing across various stages of development. 5:00 5 minutes Our customer engagement and diversification efforts have started yielding results with ongoing discussions and progress in new product development. 5:10 5 minutes, 10 seconds We are further accelerating our business development efforts in the markets where we participate. This includes recruiting senior resources in these geographies. 5:21 5 minutes, 21 seconds Uh on our refrigerant gas project, we are happy to announce that the commercial production of R32 refrigerant 5:27 5 minutes, 27 seconds gas at our 2K swing plant in Mur has commenced recently. Further, the commissioning of the new plants is 5:34 5 minutes, 34 seconds expected to be undertaken in phases over the course of the year. Moving to our value added chemicals business. During 5:42 5 minutes, 42 seconds the quarter, costic soda and chloromthane's market remained under pressure in the first two months due to weak demand and continued pricing 5:50 5 minutes, 50 seconds pressure. Costic soda volumes improved sequentially supported by better sales and inventory liquidation at the Karakal facility. 5:59 5 minutes, 59 seconds Volumes however remained lower year on year due to reduced production at the mur facility on account of the membrane change activity. 6:08 6 minutes, 8 seconds There was a temporary spurt in costic prices immediately after the war which had started tempering down. Hydrogen 6:16 6 minutes, 16 seconds peroxide and chloromthane volumes were impacted by lower hydrogen and chlorine availability linked to reduced costic soda output. However, demand from key 6:25 6 minutes, 25 seconds end user industries and pharma customers remained largely stable during the quarter. 6:32 6 minutes, 32 seconds Moving on to the suspension PV PVC business. Water for FI2526 began on a 6:39 6 minutes, 39 seconds positive note supported by dealers restocking ahead of the seasonal demand cycle and expectations of improving prices. The Chinese government's 6:48 6 minutes, 48 seconds announcement to withdraw the export rebates on PVC also helped in pushing PVC prices further up. However, the 6:56 6 minutes, 56 seconds commencement of the war in the Middle East led to a chaotic situation on the prices and availability of both PVC and feed stock VCF. 7:05 7 minutes, 5 seconds The Middle East war situation has had consequential impact on the availability of VCM in Asia given the acute shortage 7:13 7 minutes, 13 seconds of NAPA and ethylene. This led to a sharp spurt in VCM prices. While this increase in VCM prices were matched 7:21 7 minutes, 21 seconds initially uh by similar increase in PVC prices, the latter did not last as carbide PVC from China which was largely 7:30 7 minutes, 30 seconds immune from the impact of the war in the Middle East started flooding India at very low prices. This therefore led to a 7:38 7 minutes, 38 seconds sharp disconnect between PVC and feed stock PCM prices. As a result, the broader industry outlook continues to remain very subdued. 7:48 7 minutes, 48 seconds The industry had expected relief through anti-dumping duties, higher customs duty or other import control measures to 7:54 7 minutes, 54 seconds counter persistent lowpric PVC imports especially from China. However, none of these measures has come through. In 8:03 8 minutes, 3 seconds fact, regulatory support has weakened including the rescending of QCOS and the recent reduction in customs duty though only till June 2026. 8:13 8 minutes, 13 seconds [clears throat] While the removal of export rebate in China acted as a philip in the first two months of Q4 FI26, the 8:21 8 minutes, 21 seconds same has been completely nullified with the volatility seen post the commencement of the Iran war. These 8:29 8 minutes, 29 seconds developments together created a more structural reset in the earnings outlook necessitating reassessment of the 8:37 8 minutes, 37 seconds carrying value under India's 36. The assessment has resulted in an impairment loss of rupees 898 crores. 8:48 8 minutes, 48 seconds Visa v the book value of the investments at rups 1,556 crores. 8:55 8 minutes, 55 seconds This is a non-cash adjustment that aligns the book value of the investment with the current economic realities. It does not affect liquidity or the 9:03 9 minutes, 3 seconds company's ability to operate the business. 9:06 9 minutes, 6 seconds Also CCBL recorded a record a charge of rupees 150 crores as an exceptional item 9:14 9 minutes, 14 seconds for the year ended March 31st 2026 towards provision for ownerous contracts and write down in the carrying value of 9:23 9 minutes, 23 seconds raw materials in line with the applicable accounting standards. At this juncture, I would I wish to communicate 9:31 9 minutes, 31 seconds that the board has constituted a committee of three independent directors to examine the strategic priorities for 9:39 9 minutes, 39 seconds the company with a view to enhance the long-term value creation for stakeholders. The company may evaluate 9:46 9 minutes, 46 seconds potential reorganization and M&A opportunities and will table their findings to the board for review and appropriate decision making. The 9:55 9 minutes, 55 seconds committee may engage advisers to support them in this engagement. 10:00 10 minutes As we move into FY 2026 27, the commodity business including CCBL is expected to face volatile near-term 10:08 10 minutes, 8 seconds operating environment driven by the ongoing geopolitical developments, fluctuations in global raw material and 10:16 10 minutes, 16 seconds energy prices and continued uncertainty in international supply chains. 10:21 10 minutes, 21 seconds However, we are positive in our specialtity business where we expect a stronger performance given the better 10:28 10 minutes, 28 seconds fundamentals and prospects. Our focus will remain on operational efficiency, cost optimization and improving capacity 10:36 10 minutes, 36 seconds utilization across our manufacturing facilities. We will also continue to strengthen customer relationships, 10:43 10 minutes, 43 seconds ensure timely execution of the ongoing expansion projects and enhance our specialtity portfolio to drive more 10:50 10 minutes, 50 seconds stable and value accurative growth going forward. Now I would like to invite our CFO Mr. Balaji to walk you through the financial performance of the company. 11:02 11 minutes, 2 seconds Uh thank you Ganesh and good morning to all the participants on the call. Coming to the performance in Q4 FI26 on a 11:09 11 minutes, 9 seconds consolidated basis the company reported revenues of,256 scores registering 9% yearon-year growth a bit of for the 11:17 11 minutes, 17 seconds period stood at 194 C compared to rupees 37 cr in the same quarter of the previous year. The net loss for the 11:24 11 minutes, 24 seconds quarter stood at 45 crores. Now coming to the quarterly segment wise performance, the specialtity chemical segment reported revenues of rupes 475 11:33 11 minutes, 33 seconds cringing a 13% yearon-year increase and volumes registered a healthy 17% year-on-year growth. The value added 11:41 11 minutes, 41 seconds chemical segment reported revenues of 120 crores for the quarter compared to rups 169 crores in the corresponding 11:48 11 minutes, 48 seconds period last year. The suspension PVC business housed in TCV reported revenues of rupees 661 crores for the quarter 11:56 11 minutes, 56 seconds registering an 18% yearon-year growth compared to rups 560 crores in the corresponding quarter last year. In line with the applicable accounting 12:04 12 minutes, 4 seconds standards, CCVL has recorded a charge of rupees 150 crores as an exceptional item for the year ended 31st March 2026 12:13 12 minutes, 13 seconds towards provision for owners contracts and write down in the carrying value of raw materials. This inventory write down of rupees 150 crores is expected to be reversed in the current financial year. 12:24 12 minutes, 24 seconds Looking at the revenue mix for the quarter, specialtity chemicals contributed 38% of the total revenue. 12:30 12 minutes, 30 seconds Value added chemicals accounted for 9% while the suspension PVC segment contributed to the remaining 53%. 12:38 12 minutes, 38 seconds For FI26, the company reported revenues of 4,224 crores with a bit of rups 198 12:45 12 minutes, 45 seconds crores. While the net loss for the period was rupes 280 cr as of 31st March 2026, the company's consolidated net 12:53 12 minutes, 53 seconds debt stood at rupees,419 cr. On the standalone front of Kempl for 13:00 13 minutes FI26 the company reported revenues of Rs 2,170 crores with AIDA standing at rupes 108 crores while the net loss for the 13:08 13 minutes, 8 seconds period stood at 1,0003 crores after the empowerment provision. As Ganesh mentioned the business environment has 13:16 13 minutes, 16 seconds been challenging and in light of significant regulatory and market development we carried out a detailed evaluation of the carrying value of the 13:23 13 minutes, 23 seconds investment in CCBs with the help of an independent valuer. Based on this assessment, the company has recorded an 13:30 13 minutes, 30 seconds impairment provision of rupees 898 cr as an exceptional item for the quarter end and year ending 31st March 2026. This 13:39 13 minutes, 39 seconds should be viewed as an accounting entry and has no impact on the cash flow of the company. Further, this has also has no bearing on the consolidated 13:46 13 minutes, 46 seconds financial. With this, we conclude the presentation and open the floor for further discussion. Thank you. 13:56 13 minutes, 56 seconds Thank you very much. We will now begin with the question and answer session. 14:01 14 minutes, 1 second Anyone who wishes to ask a question may press star and one on the touchstone telephone. 14:08 14 minutes, 8 seconds If you wish to remove yourself from the question cue, you may press star and two. Participants, you are requested to use hands while asking a question. 14:19 14 minutes, 19 seconds Ladies and gentlemen, we will wait for a moment while the question to assembles. 14:27 14 minutes, 27 seconds We will take the first question from the line of Sanjay Chen from ICC security. Please go ahead. 14:34 14 minutes, 34 seconds Yeah, good morning. Uh, thanks for the opportunity. Uh, first on the suspension PVC. Um, how is uh the current? 14:43 14 minutes, 43 seconds Sorry to interrupt in between. Uh, Sanjay, I would request you to please use the handset mode and speak. 14:47 14 minutes, 47 seconds No, I am on handset but hopefully you can hear me properly now. 14:51 14 minutes, 51 seconds Yeah, now you're audible. things to think. 14:53 14 minutes, 53 seconds Okay. Uh hi sir. Uh good morning. Um just first on the suspension 15:00 15 minutes PVC can you help us understand now that uh things are settling down. How is the trend for the spread uh as we speak in 15:08 15 minutes, 8 seconds the Q1 because I think last quarter or probably in the month of March one can understand the volatility hasn't been in 15:15 15 minutes, 15 seconds our favor considering that we signed certain ownorous contract uh which has taken away all the profitability in the 15:22 15 minutes, 22 seconds suspension PVC. Um how is it looking uh now? uh the spreads are still weak uh 15:30 15 minutes, 30 seconds considering that the carbide um export continue to remain unabated. In that scenario, how should we expect the uh performance of CCVL in FI27? 15:43 15 minutes, 43 seconds Thank you Sanjesh. uh you are right that uh there are still uncertainties looming around the markets and with uh China 15:51 15 minutes, 51 seconds bringing in uh the carbide PVC uh at lower prices uh we are as we speak we 15:58 15 minutes, 58 seconds are looking at a spread which is at a neutral level on a replacement cost basis given the current VCM price but we 16:06 16 minutes, 6 seconds are also seeing uh some softening on VCM prices uh may not be significant at this stage too early to talk about it. But at 16:15 16 minutes, 15 seconds the same time uh we may get into a positive side. But having said that 16:21 16 minutes, 21 seconds while we have taken the broad uh impairment on the uh ownerous contract 16:29 16 minutes, 29 seconds uh what you say the 150 crores hit sit on the uh balance sheet on the P&L we still may have some in between between 16:38 16 minutes, 38 seconds the today's price and the ownerous contract. There are still couple of other contracts which will hit the production line between May and June. So 16:46 16 minutes, 46 seconds there could be uh uncertainties as we go into this quarter. But we are hopeful that as the uh geopolitical situation 16:56 16 minutes, 56 seconds stabilizes and the production comes back uh we will be able to move to the spreads that we have been talking about. 17:04 17 minutes, 4 seconds But assuming if crude remains elevated um and gas prices remain elevated for a while, Chinese will keep having that 17:12 17 minutes, 12 seconds advantage of having the much lower cost and it doesn't look like they want to make profit out of that situation. This 17:20 17 minutes, 20 seconds means that even FI27 can remain a stressful for CCBL on a on a very uh what you say uh uh 17:30 17 minutes, 30 seconds pessimistic end of the assumptions. Yes, it is possible. But however, from what we also hear is the Chinese producers are also going through the stretch. 17:40 17 minutes, 40 seconds Second is end of June, we hope that the 7.5% duty comes back uh into the 17:48 17 minutes, 48 seconds uh into the system. So that would that would add another uh uh what you s $70 17:56 17 minutes, 56 seconds uh to the to the pricing and the realization. and Chinese also we we feel that from what we are hearing is not all 18:04 18 minutes, 4 seconds of them but some of them are going through tremendous cost pressures at this price. 18:11 18 minutes, 11 seconds Got it. Got it. Now coming back to paste PVC how different the behavior in paste PVC versus suspension PVC. 18:20 18 minutes, 20 seconds See place PVC a the size itself is very small compared to what we are talking 18:27 18 minutes, 27 seconds about in suspension from a 4.3 million suspension we are talking of a 200,000 ton uh roughly a 2,00 200,000 t market. 18:37 18 minutes, 37 seconds Uh second the paste has always traditionally been at a higher price. uh further there is already uh anti-dumping 18:46 18 minutes, 46 seconds on five countries which is which is levied which also puts brings in some pressure on how the product is entering 18:54 18 minutes, 54 seconds the market. Fourth point is given that the uh add investigations are finalized 19:01 19 minutes, 1 second and the file is with the ministry of finance uh import we have seen a slowing down of imports from Europe uh 19:09 19 minutes, 9 seconds especially which is the other alternative. So overall we expect that at least this time around uh uh we are 19:17 19 minutes, 17 seconds we are hopeful that the government will take a fair uh approach and we should be able to manage the paste business effectively. 19:28 19 minutes, 28 seconds Don't one last question on the ref gas and the specialtity. 19:34 19 minutes, 34 seconds How feel the speciality this year the growth uh versus the previous year and we were expecting a 1100 crores kind of 19:42 19 minutes, 42 seconds a revenue in 2728 now considering agrochemical supply chain being a little stressed uh how should we think growth 19:51 19 minutes, 51 seconds in uh next two years and what does this 45 product mean? um what is an opportunity size what is the probability 19:59 19 minutes, 59 seconds uh if you can give some color on that and number two on the R32 um there's lot of debate on it but we 20:06 20 minutes, 6 seconds have started 200 metric ton now um by end of this year where do we see ourself in the R32 capacity 20:15 20 minutes, 15 seconds uh so I will first take the R32 and then give it to Dr. Krishna to respond to the specialtity chemicals. Uh we have as in 20:25 20 minutes, 25 seconds earlier calls uh the quantities have been specified. So we are now on the verge of getting into the expansion. We 20:33 20 minutes, 33 seconds are already uh progressing very well and by the end of the year as committed earlier 14 KT capacity but we are also 20:41 20 minutes, 41 seconds providing design opportunities to debottleneck it further as required as the opportunity may arise. 20:48 20 minutes, 48 seconds So by this calendar year we should be having the 14,000 metric t. Yes. 20:56 20 minutes, 56 seconds Okay. Okay. Very clear. Hi Krishna. 21:00 21 minutes Hi Sanjay. Good morning. Um so responding to your question the our projections on the custom manufacturing 21:08 21 minutes, 8 seconds you know continues to be strong. Um the 45 molecules that we talk about includes 17 that are commercial. So the balance 21:16 21 minutes, 16 seconds are what we call which are at the various stages of development and for us you know we keep monitoring that 21:23 21 minutes, 23 seconds particular number the overall basket u which you know the it continues to grow quarter on quarter and and the reason 21:31 21 minutes, 31 seconds for that is u the engagement with know all our customers is quite strong and uh 21:39 21 minutes, 39 seconds all of them uh know continue to indicate and intend to diversify by their suppliers based in India and um you know 21:48 21 minutes, 48 seconds and when they look for reliable good partners uh they continue to consider um 21:55 21 minutes, 55 seconds Sanmar as a very reliable partner. So overall uh the outlook is strong and you know as we indicated in the in the last 22:04 22 minutes, 4 seconds call you know we we've had a temporary u you know issue you know in the near term primarily driven by the slowdown in the 22:14 22 minutes, 14 seconds in the acum space and because of which you know many of the new molecules that 22:21 22 minutes, 21 seconds our customers are launching are not ramping up as quickly as they originally anticipated uh in the near term. 22:28 22 minutes, 28 seconds But uh the medium-term to long term you know continues to be our projection continues to hold and we build. 22:40 22 minutes, 40 seconds Got it. Got it. Uh thanks for all those answers and best of luck for the coming. Thank you. 22:48 22 minutes, 48 seconds Thank you. Take the next question from the line of Ankor Pial from Access Capital. Please go ahead. 22:57 22 minutes, 57 seconds Uh yeah. Hi, thanks for the opportunity. 22:59 22 minutes, 59 seconds Uh continuing with uh you know Krishna S there on the the CDMO side uh you you we have been highlighting on uh you know 23:08 23 minutes, 8 seconds the pricing pressure uh in the global markets which had led to some deferment in terms of uh you know the innovators demand here. uh any uh you know updates 23:17 23 minutes, 17 seconds there in terms of you know given the current macro is there any revival given that pricing pressure would have eased a bit uh and how is the product pipeline 23:26 23 minutes, 26 seconds sort of you know looking like uh both in the egg cam as well as in the other segments across lines. 23:32 23 minutes, 32 seconds So no, so our our model is innovators, right? And um the we have not been 23:40 23 minutes, 40 seconds impacted by you know what's been going on in the generic space because many of our products do not fall in that 23:48 23 minutes, 48 seconds category. Most of the products that we supply now as well as the projects that we're working on, many of them are 23:56 23 minutes, 56 seconds linked to new molecules, you know, new pipeline molecules that the customers are have been have been working on. So, 24:03 24 minutes, 3 seconds we have not seen any significant issues related to demand on those. It's just a delay in terms of how those 24:11 24 minutes, 11 seconds launches have been going on from a from a customer standpoint. So which is why what we're going through know is a is a 24:19 24 minutes, 19 seconds is a near-term near-term issue. So again long-term mid to medium to long term we 24:26 24 minutes, 26 seconds continue to be optimistic because engagement and um you know and uh and the pipeline continues to grow. In 24:35 24 minutes, 35 seconds addition, you know, we have also, you know, started working on uh putting in additional resources, you know, both in 24:43 24 minutes, 43 seconds the markets that we currently participate in as well as to look into new markets, you know, beyond ACM. Um 24:51 24 minutes, 51 seconds again, that's uh medium-term to long-term initiative to you know, diversify 24:57 24 minutes, 57 seconds um our exposure or to diversify beyond beyond ACM. So towards that you know we have recruited some very senior resource 25:06 25 minutes, 6 seconds in Europe as well as you know we are ramping up our engagement uh in Japan uh you know where there are significant 25:14 25 minutes, 14 seconds opportunities and you know we have we have identified resources there to uh to drive some of these initiatives. 25:23 25 minutes, 23 seconds Uh sure sir and uh from a ramp up perspective any timelines for that thousand odd kores revenue that we were looking at or uh we still sort of you know keep that number intact. 25:33 25 minutes, 33 seconds Uh we I mean we still keep that intact I mean but last quarter we indicated hopefully next year we will be at that number based on what I have in the 25:42 25 minutes, 42 seconds pipeline and the products we have commercialized we stand a good chance of getting there. 25:50 25 minutes, 50 seconds Okay sure uh thanks for that. Uh secondly on uh you know the the SPVC side uh you did alluded towards uh you 25:58 25 minutes, 58 seconds know Chinese import being uh sort of you know picking up uh which is where uh uh you know the prices or the spreads 26:06 26 minutes, 6 seconds overall are under pressure uh the 7.5% duty that you were talking of uh right so the comeback of that duty is there 26:13 26 minutes, 13 seconds any talks with the government on that or uh you know how are we looking at that? 26:22 26 minutes, 22 seconds Ankur Ankur Ganeshir. Uh yeah, we we have been representing to the government 26:29 26 minutes, 29 seconds under the Atman the recent uh uh announcements by the honorable prime minister uh where he said that we have 26:38 26 minutes, 38 seconds to manage forex outdoors. We have to add value back in India. We have been representing as industry bodies with the 26:44 26 minutes, 44 seconds government different uh sectors in the government about uh the 7.5% 26:50 26 minutes, 50 seconds uh to be brought back which uh while there is no response to uh indications 26:59 26 minutes, 59 seconds to any extension but which means we are assuming that it should come back at the end of June. Uh there are other measures 27:06 27 minutes, 6 seconds both uh uh what do you say uh trade measures like minimum import price etc 27:14 27 minutes, 14 seconds which we are still talking with the government but ultimately to provide a level playing field and not being used 27:21 27 minutes, 21 seconds uh uh to be dumped uh the anti-dumping duty is the only long-term solution which is compliant with the WTO. 27:32 27 minutes, 32 seconds Uh sure sir. Uh but you know where I'm coming from is uh you know earlier also there have been multiple times you know hits and misses there on the 27:40 27 minutes, 40 seconds anti-dumping duty on SPVC especially uh we are hopeful of you know get that getting implemented on PPVC. Uh but will 27:48 27 minutes, 48 seconds that be the only way out for the you know the business economics to be stabilized and till then we will have to be sort of you know the profitability will have to be slightly under pressure. 27:59 27 minutes, 59 seconds Will that be a fair way to look at it? 28:02 28 minutes, 2 seconds as of today uh under the given circumstances yes but then there are other measures non-trade measures like 28:09 28 minutes, 9 seconds uh QCOs which was resended which is now we are representing back again saying that this is a different you can't paint 28:17 28 minutes, 17 seconds all products with the same rush this is this is another effort which has been taken with the government so whereby 28:25 28 minutes, 25 seconds idea is to bring in a a fair level playing field to the domestic manufacturing 28:31 28 minutes, 31 seconds And uh that should be the approach which will help us in the short to medium term. Today as we look at it uh it's all 28:39 28 minutes, 39 seconds there. Tomorrow if for example the the supply chain stabilized the war situation goes away the VCMP PVC spread 28:48 28 minutes, 48 seconds is back to normal then things would be different. But as of today as we see this is where we are. Uh Ankur this only 28:56 28 minutes, 56 seconds just to add to what An said uh in in the suspension PVC business as you would know last two years have been a struggle 29:04 29 minutes, 4 seconds primarily because of the excessive dumpings from China and uh regulatory support there is very critical uh one it 29:12 29 minutes, 12 seconds could be add it could be QCO in some form regulatory support on the suspension PVC side is uh very critical 29:19 29 minutes, 19 seconds at from the medium to long-term point of view of course the short term is more driven currently by the war situation that is happening but if you look at the 29:27 29 minutes, 27 seconds medium to long term it's important that the regulatory support some former shape comes 29:34 29 minutes, 34 seconds sure sir uh that's helpful just one last question uh if I may uh on R32 uh what is the thought process here uh whether 29:42 29 minutes, 42 seconds you know we are looking to sell this in the domestic market itself or is there some tie up or maybe some global sort of 29:50 29 minutes, 50 seconds you know tie up there is is where uh this ultimate capacity will go into. Thank you. 29:56 29 minutes, 56 seconds So regarding the go to market strategy for R32 uh domestic of course is uh one 30:02 30 minutes, 2 seconds of the uh destinations for the product but apart from that we are also looking at serving the global market uh uh and 30:11 30 minutes, 11 seconds we are exploring with a few partners on how to take this uh to the market in the international space. Okay. 30:19 30 minutes, 19 seconds Okay. Uh that's helpful sir. Thank you and uh all the best. Thank you. 30:26 30 minutes, 26 seconds Thank you. Before we take the next question, ladies and gentlemen, in order to ensure that the management will be 30:34 30 minutes, 34 seconds able to address all the questions from the participants in the conference call, we request you to kindly limit your questions to two per participant. If you 30:42 30 minutes, 42 seconds have a follow-up question, please rejoin the queue. Then we will take the next question from the line of Nikl Gandhi from Bajash life insurance. Please go ahead. 30:54 30 minutes, 54 seconds Hello hope I'm audible. Uh thank you for the opportunity. uh just wanted to understand more on the exceptional item of that 150 crores which we have taken 31:02 31 minutes, 2 seconds in and since we are expecting it in the reversal in part 27 the nature of it and 31:09 31 minutes, 9 seconds how should we see the extended question to that is the management has also highlighted that 31:17 31 minutes, 17 seconds there will be few more containers in Q1 so how should we see the Q1 moving out from the exceptional p item perspective 31:27 31 minutes, 27 seconds No, this is the difference between the actual cost and the net salable value which we have provided as of 31st March 31:35 31 minutes, 35 seconds and it's getting reversed during the current quarter. What Ganesh told us maybe one or two more containments will come for the current quarter where there 31:42 31 minutes, 42 seconds could be some difference in contribution. Uh so Ganesh said earlier today it's almost a break even kind of 31:49 31 minutes, 49 seconds thing. So hopefully things improve post 30th June while situation improves it should be better till then it may be 31:57 31 minutes, 57 seconds kind of a break even as Ganesh told earlier. 32:02 32 minutes, 2 seconds Okay. Okay. Noted. Uh the second thing is mainly on the environment loss which we have taken on SPVC business. So since 32:09 32 minutes, 9 seconds we have uh estimated a future cash flow for the segment are we not expecting any meaningful improvement in the SPVC 32:16 32 minutes, 16 seconds business for 27 and 28 considering this uh impairment loss of around close to 900 crores. 32:25 32 minutes, 25 seconds Uh Nikl this is Mi as you would appreciate impairment X is always done based on at a point in time what is your 32:33 32 minutes, 33 seconds view and at the current point in time with so with the volatility is around and the uncertainty around regulatory 32:40 32 minutes, 40 seconds support uh the best estimate has been used and that has been used for the valuation purposes and as it stands 32:48 32 minutes, 48 seconds today uh the margins today currently if you look at the Chinese PBC is coming at 32:54 32 minutes, 54 seconds $820 $20 CFR India and the FOB Japan VCM is landing at almost around $15560. 33:03 33 minutes, 3 seconds So taking the conversion cost into account effectively we are just meeting the cost the variable cost that is where we are today. So that is the outlook 33:12 33 minutes, 12 seconds that we can see as of now given where we are today and if things improve over a period of time obviously this impactment will get reviewed on a periodic basis. 33:24 33 minutes, 24 seconds Okay, thank you. Thank you so much. 33:29 33 minutes, 29 seconds Thank you. We will take the next question from the line of Rohit Nagraj from 361 Capital. Please go ahead. 33:38 33 minutes, 38 seconds Yeah. Uh thanks for the opportunity. Um first question again unfortunately delving on to SQC 33:46 33 minutes, 46 seconds in terms of uh couple of questions under that one is that how has been the domestic demand in the wake of the 33:55 33 minutes, 55 seconds current volatility in prices and second in terms of the sustainability of our operations uh given that there has been 34:04 34 minutes, 4 seconds challenges even from the raw material sourcing and we are dependent on imported raw materials. 34:11 34 minutes, 11 seconds uh and a third aspect from the uh add perspective have we filed for an application because I think after filing 34:19 34 minutes, 19 seconds the application there'll be a process of 1 year 3 months before any decision comes in thank you 34:27 34 minutes, 27 seconds thanks thanks Ro uh uh regarding the domestic demand side I think if I look at the full year that has passed by the 34:36 34 minutes, 36 seconds demand demand has been muted rather probably about percentage point below last year which is which was at 4.3 34:44 34 minutes, 44 seconds million tons for SPVC. Uh we can say that demand is more or less the same as for the over the last two years. Uh we 34:53 34 minutes, 53 seconds see that as of today there is no indication of it growing significantly. 34:58 34 minutes, 58 seconds uh but uh we are optimistic that uh it should catch up uh maybe after the first quarter uh once the 35:07 35 minutes, 7 seconds uh global geopolitical situation settles down uh will take one or two quarters to for the demand to bounce back. So that 35:15 35 minutes, 15 seconds is our estimate uh given today's uh environment that we are looking at. uh regarding sustainability of operations 35:23 35 minutes, 23 seconds you are right you are right we are uh to that extent VCM is critical for us to run the SPVC business and we are 35:31 35 minutes, 31 seconds constantly looking at different ways and means of mitigating this risk and I think you may appreciate that to the 35:38 35 minutes, 38 seconds credit of the team uh when one of the suppliers uh uh declared that they are going to will not be able to supply post 35:47 35 minutes, 47 seconds the contract period uh the team managed to secure ure the same supply without any disruption uh before before the 35:56 35 minutes, 56 seconds contract period expires. So to that extent the ability of Kemplas to be able to understand the market get the 36:04 36 minutes, 4 seconds supplies uh is very high. Uh is that a long-term solution? No, it is a short-term solution. For long-term we 36:11 36 minutes, 11 seconds are exploring various avenues to see how to secure feed stock on a more uh sustainable manner. when I say 36:19 36 minutes, 19 seconds sustainable both from a qualitative and from a commercial point of view. So we are working on that exercise. 36:28 36 minutes, 28 seconds Yeah. And just a clarification on add whether yeah sorry yeah you had the third point uh the third point on add uh we are 36:36 36 minutes, 36 seconds working on the data uh to be for the add to be filed. Have we filed as of now? No but we will be filing in the near future 36:44 36 minutes, 44 seconds for the add to be relooked at from for imports from China. 36:49 36 minutes, 49 seconds Right. And again uh sorry to delve again on R32. 36:54 36 minutes, 54 seconds So we initially plan to uh have you know focus on the domestic market but given that uh there will be multiple players 37:02 37 minutes, 2 seconds who will be also tapping and the demand will be limited at least in the near term. Uh what is the strategy that we 37:09 37 minutes, 9 seconds are looking at from tapping the exports market? uh have we already started seeding it and how are we planning to do 37:17 37 minutes, 17 seconds over the next uh one and a half two years I mean till the window is open till December 26. Thank you. Uh so so 37:25 37 minutes, 25 seconds Rohit from an uh R32 perspective the go to market strategy always considered a 37:32 37 minutes, 32 seconds combination of domestic and export because we were looking at the multiple capacities that would be coming up in the country and it was uh always on the 37:41 37 minutes, 41 seconds radar. Uh we are working with a few partners. We are working with a few of them trying to uh see in what way can we collaborate in the export export market. 37:51 37 minutes, 51 seconds uh which is we are pretty sure that we should be able to uh crack this part of the puzzle. 38:00 38 minutes Sure. Uh just one clarification on the numbers part. Was there any uh inventory gains and forex gains during Q4? 38:09 38 minutes, 9 seconds There is no inventory gain because we have made a provision for the inventory. Forex all our imports we have covered. 38:17 38 minutes, 17 seconds So on the mask to market we are positive but it's a cost already recognized and we have taken forward cover for all our imports. 38:27 38 minutes, 27 seconds Okay perfect thanks a lot for answering. Yeah. 38:33 38 minutes, 33 seconds Thank you. We will take the next question from the line of Madurati from counter cyclical investments. Please go ahead. 38:41 38 minutes, 41 seconds So thank you for the opportunity sir. I wanted to understand regarding the spreads that the uh that is I see it seems that currently around $100 for the 38:48 38 minutes, 48 seconds variable uh the gross spreads. So so how do we see the spreads improving with first the anti-involution drive uh and 38:58 38 minutes, 58 seconds uh second with the energy called the renewable energy u JV that we have done with GSW. So how should we see at uh the 39:07 39 minutes, 7 seconds spreads for sub suspension PVC maybe uh over the next one year uh if things normalizes and second was with 39:15 39 minutes, 15 seconds anti-dumping duty uh how should we look at the spreads on paste PVC moving versus what it were and sir what were 39:23 39 minutes, 23 seconds they in FI26 on the uh ASW power contract and its 39:30 39 minutes, 30 seconds impact on the suspension PVC spread uh As you repreciate the suspension PVC is not power intensive uh it's more costic 39:38 39 minutes, 38 seconds soda that is power intensive. So that contract will more benefit the BAC business not the suspension PC business. 39:45 39 minutes, 45 seconds It will not have any uh significant impact on the spreads of suspension PS and uh how we see going it forward 39:53 39 minutes, 53 seconds actually uh the current situation is reasonably sort of volatile. Uh as you would know the uh like I said currently 40:03 40 minutes, 3 seconds the prices are more or less at variable cost levels. We are breaking even that is where we are and the future outlook 40:09 40 minutes, 9 seconds would depend on how the uh Iran war situation sort of pans out and how soon the feed stock availability becomes uh 40:18 40 minutes, 18 seconds much more easier. So it's slightly difficult to predict at this point. In fact, uh so I'm not trying asking you to 40:27 40 minutes, 27 seconds predict but so can we see the 13% whatever difference delta from anti-involution drive in China and the 7 40:34 40 minutes, 34 seconds and a half% import duty that is expected in India should have some impact like 10 12% impact. Can we expect that is a 40:42 40 minutes, 42 seconds reasonable uh expectation from this uh spread improvement or that is still that is still uh uncertain right now 40:51 40 minutes, 51 seconds a 13% uh actually benefit that came through actually improved the profitability in January and uh February 41:01 41 minutes, 1 second uh post that post the war that's been completely subsumed in the uh uh overall 41:08 41 minutes, 8 seconds market scenario that currently we are not seeing the impact of that spread at all in our margins. 41:17 41 minutes, 17 seconds Got it. And sir, one question on the CNC business, we used to give LOI of the uh products that were in commercial stages. 41:25 41 minutes, 25 seconds So, so what would be the uh revenue potential from the LOI of the 17 LOIs that we have currently? 41:34 41 minutes, 34 seconds So if you could help us understand on that like where has the business moved maybe from I think earlier you used to be like it was 13400 crores in FI20 41:42 41 minutes, 42 seconds closer to FI24 and FI25. So where it is right now so the just to clarify the LOI is not on 41:51 41 minutes, 51 seconds the 17 molecules that are commercial we you know we announced loss on six out of those 17 if I recall. So it doesn't 42:00 42 minutes cover all the you know doesn't cover the 70 and uh you know as I indicated earlier you know we are behind by 42:09 42 minutes, 9 seconds probably 12 months or so in terms of uh meeting our revenue targets of,000 crores. Um so we are still comfortable 42:19 42 minutes, 19 seconds um with what I stated earlier that we anticipate getting to that level exponentially. 42:28 42 minutes, 28 seconds So, so how what would be the revenue potential of these 17 LOS altogether uh 42:35 42 minutes, 35 seconds over over their life period or the peak revenue potential you can expect I don't know the timeline but this is the intent 42:43 42 minutes, 43 seconds that the innovator has given us that should be the like should it be 2,000 cr 200 crores any number would be helpful 42:51 42 minutes, 51 seconds we wouldn't sort of we would refrain from giving a guidance on what would come out of the Like Krishna said, we have signed LOI for six products. Rest 43:00 43 minutes of them are uh sort of commercial products but uh not everyone everything has an agreement or an LOI. Uh I would 43:09 43 minutes, 9 seconds sort of refrain from giving a guidance on uh how the total uh volume value of 43:15 43 minutes, 15 seconds business that is possible for the trajectory positive like Krishna 43:22 43 minutes, 22 seconds said the trajectory is positive. Of course the business has gone through some pain because of the aggrochemical slowdown but the trajectory is quite positive. 43:33 43 minutes, 33 seconds Right. So thank you so much and all the best. 43:39 43 minutes, 39 seconds Thank you. We will take the next question from the line of Pujen Shia from Molecule Ventures. Please go ahead. 43:47 43 minutes, 47 seconds Uh thanks for the opportunity sir. Uh my first question pertains to uh the duty 43:54 43 minutes, 54 seconds which government has removed. So just to understand the V1 stance uh is it 44:01 44 minutes, 1 second possible that if the duty comes back uh it also impacts the VCN prices as well because that will also impact the duty or it the duty won't be impacted on VCN. 44:14 44 minutes, 14 seconds So if it comes back maybe it will come back for all the products that's what we are looking at but the duty on BCM is about 2.5% versus 7.5% on PC. 44:27 44 minutes, 27 seconds Okay, got it sir. And uh second question pertains to uh this uh costic soda 44:34 44 minutes, 34 seconds division. So in earlier remarks we have seen uh stated that the prices have been 44:40 44 minutes, 40 seconds softening up because uh so I understand in the Jan to March there were some uh 44:47 44 minutes, 47 seconds plant uh shutdowns as well due to which the price has been in as well as the global prices has been increasing. But 44:54 44 minutes, 54 seconds for to look at a year basis how we are looking at the prices it will remain firm or it will slow gradually be on a declining mode again. 45:06 45 minutes, 6 seconds See today today we are seeing the price stabilizing back from the short-term highs which was a blip during the Janmar 45:14 45 minutes, 14 seconds period. Uh we expected to achieve the normal level which has been continuing over the last couple of years. 45:22 45 minutes, 22 seconds Got it. So my last question is on the longer term side as we see uh China real 45:29 45 minutes, 29 seconds estate uh prices has been a 20 year low and that's where it has been impacting the PVC demand and that's why you stated 45:37 45 minutes, 37 seconds also that the uh uh the PVC producers are not able to cope up at the prices 45:44 45 minutes, 44 seconds and they have been keen on dumping but to uh to frame it along are we seeing uh 45:51 45 minutes, 51 seconds a a gradual recovery in China or it will remain elongated over the year or two. 46:01 46 minutes, 1 second China China factual situation is always a mystery. Whatever we can discuss but at the end of the day we will never be 46:09 46 minutes, 9 seconds able to know the real situation that's happening there. Rather we should focus on our approach is to focus on our 46:16 46 minutes, 16 seconds government our regulatory system and make sure that we get the adequate uh protection or rather protection is not 46:24 46 minutes, 24 seconds the right word the adequate support to bring us on a level playing level playing field. 46:31 46 minutes, 31 seconds Uh got it. Uh thank you so much and I'll join the Thank you sir. 46:38 46 minutes, 38 seconds Thank you. We will take the next question from the line of Deepa Kajmira from IT India. Please go ahead 46:53 46 minutes, 53 seconds for the opportunity. I hope uh I want to ask do we have any Kota allotment from the government for let's say R32 for Vietnam? 47:05 47 minutes, 5 seconds The government is still working on it. I think the entire country is operating on uh belief that we will be getting the 47:12 47 minutes, 12 seconds kota. The government is still not because the the period for the kota calculation is not yet at over. It will be till end of 2026 for the baseline survey. 47:24 47 minutes, 24 seconds But it will be getting clear that we have the kota allotment. 47:29 47 minutes, 29 seconds We hope so. We we strongly believe that we should be getting the kota. We have a right to some volumes that we will be able to play in the market. 47:40 47 minutes, 40 seconds Isn't this a very risky strategy to go after uh that much great size of a plant uh without the kota allotment? 47:52 47 minutes, 52 seconds No, we are reasonably confident actually the reason that we are reasonably confident of the uh uh allocation like we had said earlier. 48:02 48 minutes, 2 seconds I think uh the overall formula is we believe is for the country and uh we believe the recent circular also sort of 48:10 48 minutes, 10 seconds highlights notification also highlights that and uh uh I think with the capacities in place uh we are reasonably 48:18 48 minutes, 18 seconds confident of uh uh the availability of kota okay any timeline by when it will be 48:26 48 minutes, 26 seconds getting clear to us by next year uh by 2027 the people have time and then to put up the capacity. 48:40 48 minutes, 40 seconds Okay, thank you. 48:44 48 minutes, 44 seconds Thank you. We will take the next question from the line of Sadhad Gadikar from Aquarius security. Please go ahead. 48:54 48 minutes, 54 seconds Hi sir, good morning. Uh so the first question is on IS-32 raw material sourcing. So how are we looking at sourcing our HF for the R32 capacity? 49:06 49 minutes, 6 seconds So, so you're right. This this is this is a good question because R32 hinges around HF. Uh we have tied up with 49:14 49 minutes, 14 seconds couple of sources to meet our short-term demand and uh as the business progresses 49:20 49 minutes, 20 seconds and as the business generates uh profitable contribution, we can even look at uh setting up our own support systems. 49:31 49 minutes, 31 seconds So but do we have a logistics in place to actually transport that much HF given that we would be setting up 14,000 tons of R32? 49:39 49 minutes, 39 seconds Yeah, we still for 14,000 tons to be completely up and running it is going to be 49:46 49 minutes, 46 seconds a while by that time we we already have we have our existing productions we have uh logistics in place the rest of it we 49:53 49 minutes, 53 seconds are already in the discussion to keep it keep it ready. 49:58 49 minutes, 58 seconds And on chloromthane also we will have enough capacity for uh the R32 capacity. Pardon? 50:07 50 minutes, 7 seconds For the chloromthane side. Can you repeat the question? 50:18 50 minutes, 18 seconds So on the cloth also we will have enough capacity for consumption for our for making our Yes. Yes. Yes. We will have. 50:27 50 minutes, 27 seconds Okay. So that's it. Thank you. 50:32 50 minutes, 32 seconds Thank you. We will take the next questions from the line of Japan Takers from M3 Investment Private Limited. 50:39 50 minutes, 39 seconds Please go ahead. Hello. Am I audible? Yes, you're audible. Please proceed. 50:46 50 minutes, 46 seconds Yeah. So, just a question on the committee that is being formed. Is there any particular mandate that is in mind uh which is being provided to the 50:53 50 minutes, 53 seconds committee uh to look into from a more longerterm perspective? 50:58 50 minutes, 58 seconds Yeah. Uh yeah, as you'd appreciate, campus currently has uh three distinct portfolios. Uh one is a speciality 51:06 51 minutes, 6 seconds portfolio and uh the others are primarily commodity which is the VAC and the uh suspension PVC business. Uh when 51:15 51 minutes, 15 seconds the specialtity portfolio the output is quite strong. uh the VAC which is costic soda, chloromthine, hydrogen peroxide 51:22 51 minutes, 22 seconds and the suspension PVC uh the market is quite volatile and the outlook is also not that great. Uh given 51:31 51 minutes, 31 seconds that uh we thought it is important that uh we look at uh the business as a good and see how best we can reorganize the 51:39 51 minutes, 39 seconds business uh going forward uh and create value unlock value for all the stakeholders. That's the broad objective 51:46 51 minutes, 46 seconds and that's the mandate. Beyond that we have not given any mandate to the county. So it's a clean state. They will look at the businesses see how western 51:54 51 minutes, 54 seconds they can deorgganize the businesses to create value for all stakeholders. And we also given a mandate would also include looking at possible M& 52:03 52 minutes, 3 seconds opportunities. All of that has been uh uh sort of considered as part of this exercise. Uh we thought it's important 52:10 52 minutes, 10 seconds that at this stage we evaluate the business portfolio has evolved and see how much they can be reorganized to 52:18 52 minutes, 18 seconds create value. That that's the only objective. 52:21 52 minutes, 21 seconds Understood. So because the question was coming from the fact that even preipo uh we had essentially seen that we had invested in Egypt and it was a similar 52:30 52 minutes, 30 seconds situation where it was a commodity business and the reorganization happened post which there was deleveraging of the balance sheet once we got listed and it 52:39 52 minutes, 39 seconds appears we are again in the same situation uh looking forward right now as we see it. So hence just wanted to understand is there a structural 52:47 52 minutes, 47 seconds rethought from the management to say that what kind of future businesses or capexes we would do uh so that this does 52:54 52 minutes, 54 seconds not repeat because commodity cycles can keep repeating. So that is the underlying objective of the question. 53:02 53 minutes, 2 seconds Thank you. No just one point to correct uh Egypt was never part of Kla Smar. Uh that investment was never part of 53:10 53 minutes, 10 seconds Klasmar. was always kemplasmar and the suspension PC business in India together. So it was never part of it. It 53:18 53 minutes, 18 seconds was never taken away from Kemplast also to a restart that was that was not the case. So that's just to highlight that. 53:26 53 minutes, 26 seconds And what was your second question? Sorry. 53:32 53 minutes, 32 seconds Uh the second question was uh just to understand the future capexes. Hence uh the committee will be looking at capital employment from that perspective as well 53:40 53 minutes, 40 seconds to ensure that uh we go ahead and invest in businesses which create more long-term value and get a bit away from 53:47 53 minutes, 47 seconds these typical commodity underlying nature of the business. No. 53:52 53 minutes, 52 seconds Is there anything to do with the mandate? 53:55 53 minutes, 55 seconds Uh actually if you had the sort of seen our earnings call earlier guidance as well uh our focus has been capital 54:03 54 minutes, 3 seconds allocation for specialtity is our priority uh that is what we've been communicating even earlier uh we 54:10 54 minutes, 10 seconds expanded this space capacity last year and we have invested in the custom manufacturing business we are investing 54:17 54 minutes, 17 seconds in defes which broadly consists of our portfolio of specialtity businesses that's been our capital allocation 54:24 54 minutes, 24 seconds priority I think that will continue to be our capital allocation priority and as far as the committee is concerned it's more to holistically look at our 54:33 54 minutes, 33 seconds business portfolio and to see whether is there a need for reorganization I don't think we can prejudge today that whether 54:40 54 minutes, 40 seconds this will be done whether a structuring will be done I think it's too premature to prejudge basically the idea is to see whether how they what are the existing 54:49 54 minutes, 49 seconds businesses how are they doing either a way that we can reorganize so that we can create value for stakeholders that's the mandate. 54:57 54 minutes, 57 seconds Sure. Thank you so much. Understand that. All the very Thank you. 55:02 55 minutes, 2 seconds Thank you. We will take the next question from the line of Darita Sha from DSP Asset Manager. Please go ahead. 55:10 55 minutes, 10 seconds Hi sir. Uh thank you for the opportunity. I had a question on the PBC market. Um if you could just touch upon 55:18 55 minutes, 18 seconds how the uh PVC demand has been uh I mean how was it last year in CY25 how are we 55:27 55 minutes, 27 seconds expecting it to be for CY26 uh and uh secondly if you could touch upon how the demand I know you briefly 55:35 55 minutes, 35 seconds mentioned about the demand but if you could just give more details as to uh how do you see the demand uh uh for PVC 55:43 55 minutes, 43 seconds uh as we move forward especially in the light of uh higher diesel cost uh which could result in higher transportation. 55:50 55 minutes, 50 seconds Um are we seeing any postponement of demand from the uh end user side? 55:57 55 minutes, 57 seconds Okay. So uh as we said in 25 the market size was around 4 56:04 56 minutes, 4 seconds uh 3 million tons and uh about a percentage drop in this FI 26. uh as we 56:11 56 minutes, 11 seconds go ahead we are assuming that the demand should be either stable or marginally move up. Uh the diesel price hike uh 56:20 56 minutes, 20 seconds these are these are transportation typically as a percentage of the overall cost whether it is construction etc will 56:28 56 minutes, 28 seconds not be significantly impacting it and construction once started nobody will uh put it back. Second is also the 56:36 56 minutes, 36 seconds consumption of where do where does the PVC go? A majority of it goes into the pipes which is in different applications 56:43 56 minutes, 43 seconds whether it is irrigation whether it is electrical pipes whether it is uh different types of application but there 56:51 56 minutes, 51 seconds it is we don't see a construction of demand as of now indication is not there because if the GDP is supposed to continue to grow at even at a low 3 and 57:00 57 minutes a half four and a half% at a very very pessimistic level uh the PVC consumption 57:07 57 minutes, 7 seconds follows that because infrastructure follows GDP growth. 57:12 57 minutes, 12 seconds Okay. And because of the increase in PBC, sorry, sorry sir. Yes. Plus coming back to pace sorry uh just to complete 57:19 57 minutes, 19 seconds it to pace paste is we have seen a sustained growth uh there's still a long way to go because as long as the uh 57:26 57 minutes, 26 seconds sectors of uh automobiles footwear etc continues to have a robust demand PVC will be a pace PVC will have a role to 57:35 57 minutes, 35 seconds play and that's that's somewhere uh we see this to continue the the long-term average of growth to take place. 57:44 57 minutes, 44 seconds Got it. And most of from a near-term perspective because of uh prices going up uh from historical levels last year 57:53 57 minutes, 53 seconds was somewhere close to say 60 rupees now trading at about 80 8500 rupees. Uh are we seeing any demand destruction coming 58:00 58 minutes in from the agri side irrigation side specifically especially you know when we have concerns around El Nino around 58:07 58 minutes, 7 seconds rainfall uh uh any demand destruction happening on the agree front? 58:13 58 minutes, 13 seconds See in fact uh the demand gets augmented by the agri side because most of the 58:21 58 minutes, 21 seconds irrigation project in the agri is actually refinanced under the nabad scheme. Okay, this goes under priority 58:28 58 minutes, 28 seconds special lending and whereby most of the subsidy that is offered is based on the landed cost. So there I don't think the 58:35 58 minutes, 35 seconds demand destruction will happen. Second is logically with depleting water levels uh and challenges in agriculture 58:43 58 minutes, 43 seconds everyone is moving towards either sprinkler or drip. So the demand for pipe will continue to be reversed there. 58:50 58 minutes, 50 seconds You look at India's data we have about uh 36% irrigated land out of which 80% of 36 is irrigated through rain rainfall. 59:03 59 minutes, 3 seconds So there there is still a lot of scope for people to to approach this irrigation side in agriculture. 59:11 59 minutes, 11 seconds Got it. And just lastly uh are we seeing I mean we we've heard about uh some capacities coming in from Adani and 59:18 59 minutes, 18 seconds Reliance starting with CPVC but then moving on to PBC as well. Uh any update on that? Anything that you would have heard on when these capacities are expected to come through? 59:29 59 minutes, 29 seconds We are we are hearing what you are hearing from the market. Okay. And uh okay so it's it's better that Reliance and Adani respond to this question. 59:40 59 minutes, 40 seconds Great. Okay. Sure. Thanks. Thanks a lot. 59:45 59 minutes, 45 seconds Thank you very much ladies and gentlemen. We will take that as a last question. And with that concludes the question and answer session. I now hand 59:54 59 minutes, 54 seconds the conference back to the management for the global comment. Thank you and over to you sir. 1:00:00 1 hour Thank you. Thank you everyone for joining us today on this earning call and thank you so much for the questions that you have asked. We really 1:00:07 1 hour, 7 seconds appreciate your interest in Camplas and Limited. If you have any further queries, please do contact SGA, our investor relations advisor. Uh have a good day. 1:00:18 1 hour, 18 seconds Thank you members of the management. On behalf of Kemplar Limited, we conclude this conference. Thank you all for 1:00:25 1 hour, 25 seconds joining us today and disconnect alliance. Thank you.