Coromandel International Limited — Q4 FY26

Coromandel International Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=SnFrcS4hKOg Published: 5 days ago

0:02 2 seconds Ladies and gentlemen, good day and welcome to Koroandal International Limited Q4 FYI26 earnings conference 0:10 10 seconds call hosted by ARA Securities. As a reminder, all participant lines will be in the listenon mode and there will be 0:18 18 seconds an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an 0:25 25 seconds operator by pressing star then zero on your touchstone phone. Please note that this conference is being recorded. I now 0:33 33 seconds hand the conference over to Mr. Prashant Biani from ARA Securities. Thank you and over to you Mr. Bani. 0:41 41 seconds Hi, thank you all for joining the call today. U we would request Mr. Shankar Subramanyam to start the session with uh 0:50 50 seconds his opening remarks and then we'll follow it up with Q&A. Over to you sir. 0:56 56 seconds Good afternoon everyone and uh thank you Prashant for organizing this call. I'll begin with brief overview of the business environment during the year 1:03 1 minute, 3 seconds followed by uh detailed uh comment on operations and thereafter I will request deeper to talk on financial performance. 1:12 1 minute, 12 seconds The Indian agriculture sector in last year witnessed moderate growth with agree GDP expanding by 2.4% 1:20 1 minute, 20 seconds reflecting the impact of uneven climatic conditions and softening agree commodity prices. The southwest monsoon was above normal at 1 8% of the long period 1:28 1 minute, 28 seconds average. However, it erratic distribution delayed with oil affected crop cycles and rural consumption particularly during the rubbing season. 1:36 1 minute, 36 seconds Increasingly, the reservoir levels were quite strong supporting the improved sewing activity. As you all know, kar 1:44 1 minute, 44 seconds acorage increased to 112 million hectares and rai sewing rose to 68 million hectares culminating in record production of close to 348 million tons. 1:55 1 minute, 55 seconds As on April end, all India oil levels are 115% of the last year storage and 126% of the normal storage. South region 2:03 2 minutes, 3 seconds is 93 93% of the last year storage and 121% of normal storage. 2:09 2 minutes, 9 seconds Going forward, weather forecasting agencies have estimated a below monsoon for the upcoming kar season based on the 2:16 2 minutes, 16 seconds recent estimates. Key operating Southern markets are likely to experience largely normal rainfall. 2:23 2 minutes, 23 seconds IMDb is expected to issue the updated forecast providing region wise view in the last week of May. I think this can provide better clarity for all of us. 2:33 2 minutes, 33 seconds Summer sewings have on a positive note as on April end crop sewing stood at 8 million hectares marginally better than last year. 2:40 2 minutes, 40 seconds As you are aware government has announced the NPS rates for curry 2026 increasing nutrient rates by 10% for NPNS. 2:50 2 minutes, 50 seconds These rates do not reflect the sharp increase in raw material prices and rupee depreciation post the Middle East 2:58 2 minutes, 58 seconds crisis. Industry express further support to address the affordability issue for the farming community. Industry has been constantly engaging with the government 3:06 3 minutes, 6 seconds to address these issues and we are hopeful of a positive outcome. 3:11 3 minutes, 11 seconds Last year has been tough year for the sector as the supply disruption from Middle East has resulted in elevated prices especially the f of the year. We 3:18 3 minutes, 18 seconds have seen sudden sport in key raw materials like ammonia and sulfur and availability of finishedes became a challenge. 3:28 3 minutes, 28 seconds As you are aware Middle East contributes significantly to raw material, feed stocks and grease products. Our India 3:34 3 minutes, 34 seconds dependence on ammonia and sulfur is upwards of 80%. And most of the shipment cross foremost and thereby the 3:43 3 minutes, 43 seconds disruption in the region has led to sharp rise in commodity prices. 3:47 3 minutes, 47 seconds While China and industry stocks remain balanced at this point, industry is making concerted efforts to maximize supplies in Q1. An empire committee 3:56 3 minutes, 56 seconds comprising of government and industry features have been working in close coordination for fertilizer production planning and raw material sourcing. 4:05 4 minutes, 5 seconds During the year, domestic phosphotic industry increased its production to 16 million tons. Industry also resorted to 4:12 4 minutes, 12 seconds higher level of imports both DAP and NPK which added up to 10 million T against previous year of 7 million T. 4:21 4 minutes, 21 seconds Consumption for the year was close to 24 million tons more or less same as the previous year and the mix is favoring NPK despite relatively higher prices 4:30 4 minutes, 30 seconds compared to DAP and the share in the overall phosphotics NPK currently is having a share of 60%. 4:40 4 minutes, 40 seconds During the year industry players signed off agreement close to 7 lakh tons of green ammonia. These efforts are expected to play a crucial role in 4:47 4 minutes, 47 seconds reducing the carbon footprint of fertilizer production. 4:50 4 minutes, 50 seconds while aligning with India's long-term climate commitment. Happy to share has also taken a lead in this government initiative and agreed for the coverage 5:00 5 minutes of 20% of the total ammonia requirement to be met through green ammonia rule. 5:04 5 minutes, 4 seconds On the agrochemical industry side, um situation presented broadly constructive operating environment for the global 5:12 5 minutes, 12 seconds industry after two years of detoppression driven by inflated post-pandemic inventories. Channel levels show signs of normalizing across major geographies. 5:24 5 minutes, 24 seconds Indian nrochemical climate as the market experienced a recovery period in the first half with a near normal monsoon healthy koi which translated into 5:32 5 minutes, 32 seconds stronger field level demand compared to the previous year. However, the rugby demand was muted due to late withdrawal of monsoon leading to lower liquidation than expected. 5:44 5 minutes, 44 seconds Having covered the industry, I will specifically now talk about company's performance. During the year, company's manufacturing plant registered record 5:51 5 minutes, 51 seconds fertilizer production of 3.5 million tons with the highest level of safety and environmental management. In fact, it is heartening to know that one of our 6:00 6 minutes largest fertilizer plant has been given British safety council fivestar rating and also got British safety council sw 6:07 6 minutes, 7 seconds awards and all the plants undertook annual maintenance turn around in March April month and they have now resumed normal 6:14 6 minutes, 14 seconds operations process production for the year was up by 3% to 4.5 laks 6:21 6 minutes, 21 seconds in March month successfully commissioned as we communicated in the past communications 6:29 6 minutes, 29 seconds commissioned the 2,000 tons per day sulfuric acid plant and 650 tons per day phosphoric acid plant at Kinada testing its background integration capabilities. 6:41 6 minutes, 41 seconds This plant is capable of producing annually 200,000 tons of phosphoric acid 6:51 6 minutes, 51 seconds and it we have also synchronized the receipt of rock from sineagal which will be used in this new plant. Currently 6:59 6 minutes, 59 seconds this plant is going through trial runs and sulfuric acid volumes have scaled up. Power generation has also been met 7:06 7 minutes, 6 seconds through captive power plant. operations are getting overall stabilized and we expect to operate at a desired capacity from April May May and onwards. 7:17 7 minutes, 17 seconds Our project to expand our granulation capacity is gaining momentum. We are on our way to commission this band by 7:25 7 minutes, 25 seconds December of this financial year. Our post project at Seneagal has stabilized 7:32 7 minutes, 32 seconds very well and we have reached the output of more than 3.5 lakhs last year and 7:40 7 minutes, 40 seconds we're planning to increase the volume further by 30 40% in the current year. 7:44 7 minutes, 44 seconds The company also has enhanced its stake in final entity and currently holding 71.5% in the mining company. 7:56 7 minutes, 56 seconds We have been digesting our raw material sources through long-term contracts with various countries beyond Saudi and Qatar like Southeast Asian countries, African 8:05 8 minutes, 5 seconds countries and Canada and sometimes from Russia and China as well. So fairly we are reasonably covered in terms of the raw material for the first quarter. We 8:13 8 minutes, 13 seconds do hope that there can be a early resolution to the vegetation crisis and we'll be able to secure raw materials for Q2. 8:23 8 minutes, 23 seconds I would like to point out here the challenge is not only to everybody but also the price and we are closely working with the government for suitable 8:31 8 minutes, 31 seconds support to handle the current price volatile. 8:35 8 minutes, 35 seconds I do hope when the supply side improves price should get normalized. currently is quite abnormal and beyond affordability of uh any industry player 8:43 8 minutes, 43 seconds to secure and produce and convert them into 40s. 8:48 8 minutes, 48 seconds On the marketing front, we delivered record sales of 4.3 million tons of DAP in NPTS, a growth of 7% over last year. 8:54 8 minutes, 54 seconds Our consumption has reached the peak of 4.1 million tons making us the largest player, the highest market share of 17.5% in the phosphotic sector in the 9:03 9 minutes, 3 seconds country. Our share of grades remains at 35%. 9:08 9 minutes, 8 seconds We continue to expand our footprint across north and central India markets by active channel engagement and former connect initiatives and we registered a 9:16 9 minutes, 16 seconds growth of more than 24% in these markets. 9:19 9 minutes, 19 seconds Our single super profit business registered highest level sale volume of 8.4 lakh 10 with differentiated grades 9:26 9 minutes, 26 seconds like grow plus and grow alpha contributing to more than 50% of the volume and we continue to be the market leader in the SSP sector. 9:36 9 minutes, 36 seconds drone spraying service delivering through grow more drive initiative and also through our own retail centers. We had covered close to three lakh acres 9:44 9 minutes, 44 seconds and is witnessing strong adoption by the farming community. 9:48 9 minutes, 48 seconds Our specialty nutrient business delivered strong performance supported a focused market development and farmer engagement activities. We introduced 9:56 9 minutes, 56 seconds different products across organic and specialty segments offering cross specific and performance enhancing solution. business is centering its 10:05 10 minutes, 5 seconds manufacturing capability and is setting up a MEP plant and also seaweed genation capacity. These investments will generate revenue in the coming years. 10:15 10 minutes, 15 seconds Our nano business had a strong year emerging as a leader in the nano tap segment with around 50% market share while also expanding its presence in 10:23 10 minutes, 23 seconds international market through ongoing trials and registrations. 10:26 10 minutes, 26 seconds Overall volumes expanded by 60%. company marketed close to 42 lakh nano bottles by demonstrating product efficacy 10:34 10 minutes, 34 seconds through extensive field trials, scientific studies and former outreach programs. We strongly believe during this period of uh challenge and crisis, 10:44 10 minutes, 44 seconds alternate solutions like nanotechnology can make a huge impact and can save the country from the huge foreign exchange outgo as well as help the farmers to 10:51 10 minutes, 51 seconds have a right nutrient application for the crop. Company's retail business reported strong performance growing over 30% in 2526. 11:00 11 minutes Business expanded its footprint with the addition of over 300 new stores in Andhra Pradesh, Telana and Karnataka while also entering new markets such as 11:09 11 minutes, 9 seconds Mahastra and Tamil Nadu. We continue to leverage technologydriven solutions including precision advisory, e-commerce, drone spraying services and last minute delivery. 11:20 11 minutes, 20 seconds Moving on to one of our significant business segment which we have been growing consistently over the last uh 2 three years and also where we made a 11:28 11 minutes, 28 seconds significant investment through acquiring Nagas in agric. 11:33 11 minutes, 33 seconds The crop protection business of Coramandal achieved a healthy growth both in terms of revenue and profitability. Performance was supported by strong domestic demand, recovery in 11:42 11 minutes, 42 seconds export volume and new product introduction and discipline cost management. Our standalone crop protection business of Coramandal the 11:49 11 minutes, 49 seconds revenue moved up by 16% to go up to 354 crores led by higher sales across 11:55 11 minutes, 55 seconds segments. Formulations, exports, B2B and bio volumes has shown significant growth 12:02 12 minutes, 2 seconds and margins have improved significantly and profitability of crop protection business has grown by 55% to reach 569 12:10 12 minutes, 10 seconds crores benefiting from favorable demand for its key molecule across exports and domestic market on a combined basis. 12:22 12 minutes, 22 seconds our uh permanent crop protection business as well as uh Najarjana Adriam 12:30 12 minutes, 30 seconds has reported a combined revenue of 4,000 crores which could have been better but for the late withdrawal of monsoon and 12:38 12 minutes, 38 seconds Jabi season but structurally the business has been growing good and we are soon to reach a milestone what we 12:44 12 minutes, 44 seconds have been indicating in the past in domestic market we expanded our presence introducing new territories 12:52 12 minutes, 52 seconds onboarding over new dealers close to thousand and also introduced new formulations. 12:58 12 minutes, 58 seconds They have introduced 10 new products during this year which represent 21% of our total revenue. Our export business registered strong volume growth 13:06 13 minutes, 6 seconds reflecting both the global inventory rebalancing cycle and targeted business development efforts by Cormandal in key fields. During this year the corandal 13:16 13 minutes, 16 seconds commissioned a technical plant at the hage and is further expanding uh technical capacity at sleum 13:23 13 minutes, 23 seconds bio business where we are the large player in need based bioysicides. The demand for neem based a receive good 13:31 13 minutes, 31 seconds traction during the year expanding beyond plant extract. The company has built a fermentation and microbial proxing capabilities to diversify his 13:39 13 minutes, 39 seconds biological portfolio. The launch of five biopicization and three bio fertilizers has strengthened this innovation pipeline with new products gaining good traction in the domestic market. 13:52 13 minutes, 52 seconds We have completed the acquisition of 50% stake in NL and also followed on with the rights issue of 250 growth to reduce the high cost debt. So the borrowing 14:00 14 minutes cost has come down significantly from NL and we have brought in the best practice of corandel and we are now exploring the synergy opportunity between the two companies. 14:10 14 minutes, 10 seconds NL has made a significant progress with revenue moving up by 28% to register,58 14:16 14 minutes, 16 seconds crores of top line and a3 crores against last year loss. 14:23 14 minutes, 23 seconds T is working closely with NHL team on leveraging synergies across product development, manufacturing and sourcing. 14:31 14 minutes, 31 seconds Talking about our another subsidiary DUA, a drone subsidy which is currently in the nent phase with substantial headroom for growth. Focused efforts are 14:39 14 minutes, 39 seconds being made to streamline operations and address early stage challenges with a clear emphasis on driving improved performance in the periods 14:47 14 minutes, 47 seconds ahead. The company is working towards building strategic collaboration and sharpening execution capabilities to fast track product introduction, improve 14:55 14 minutes, 55 seconds business development and service aspects. 14:58 14 minutes, 58 seconds and permanent agree business has been working very closely to develop agree to specifically to address the need and 15:07 15 minutes, 7 seconds provide comprehensive solution to the farming community of India. 15:11 15 minutes, 11 seconds Overall governmental supported strong operational performance in fourth quarter with revenue growing by 19% reaching 6,68 crores and AITA growing by 16% and reached 494 crores. 15:23 15 minutes, 23 seconds It's fortunate to note that last year Q4 had exceptional income of 347 crores relating to land sales against the current year position of 71 crores which 15:31 15 minutes, 31 seconds you have taken towards investment impairment of investment. Hence the reported profit is modest at 115 crores 15:38 15 minutes, 38 seconds due to this variation of almost 48 crores within the corresponding periods. 15:43 15 minutes, 43 seconds Operationally we have done very well including the fourth quarter where we took annual turn on our own. We operated the plant full in spite of the 15:51 15 minutes, 51 seconds challenging situation which industry is facing due to certain spot in global prices not adequately covered by subsidy rates. 15:59 15 minutes, 59 seconds Permanental has turned around with the resilient performance. There has been a compression in purchaser margins. 16:06 16 minutes, 6 seconds However, all other business segments like speciality nutrients or crop protection retail business have reported healthy growth in revenue and profitability. On a fullear basis, 16:14 16 minutes, 14 seconds Cormandal has reported highest ever revenue of 31,827 crores and a bit of 3232 crores. Recently, NL as I mentioned 16:22 16 minutes, 22 seconds has turned profitable and registered a bit of one or three crores. Coral has invested significant investment of over 3,000 crores in the last 2 years across 16:31 16 minutes, 31 seconds business segments and I'm sure this will generate target revenue and profitability in the coming period. I'll now hand over to Deepak to comment on 16:38 16 minutes, 38 seconds the financial performance before I take any questions from the team. 16:44 16 minutes, 44 seconds Thank you Shanka. Good afternoon everyone. The company recorded a consolidated total income of 6,68 crores 16:52 16 minutes, 52 seconds during the quarter and 31,827 crores during the financial year FI2526. 16:59 16 minutes, 59 seconds This is a corresponding period of 5,114 crores and 24,44 crores registering a growth of 19% for the quarter and 30% for the full year. 17:11 17 minutes, 11 seconds uh the subsidy business share in the revenue stands at about 75% for a quarter and 85% for a full year. Uh 17:18 17 minutes, 18 seconds [clears throat] 17:18 17 minutes, 18 seconds from a profitability point of view the consolidated AITA for a quarter stands at 494 crores against 426 crores in the 17:26 17 minutes, 26 seconds previous year on a full year basis the consolidated AITA stands at 3,232 crores 17:32 17 minutes, 32 seconds against 26 28 2628 crores last year. uh the subsidy business share in ADITA 17:39 17 minutes, 39 seconds stands at 57% for a quarter and 66% for the full year. Uh correspondingly last 17:45 17 minutes, 45 seconds year it was 67% and 70%. Uh the net profit after tax for a quarter stands at 17:53 17 minutes, 53 seconds 115 crores in comparison to 578 crores in the previous year same quarter. 17:59 17 minutes, 59 seconds That's that was essentially because of some of the exceptional items we had taken last year and this year and the net profit after tax for the full year 18:06 18 minutes, 6 seconds stands at 1898 crores against two 255 crores in the previous year. 18:13 18 minutes, 13 seconds Uh during as far as subsidies concerned during the quarter the company received 3,441 18:20 18 minutes, 20 seconds crores towards subsidy claims for the full year we have received 10,649 crores as subsidy. This compares with 8,82 18:29 18 minutes, 29 seconds crores we received last year. Subsidy outstanding at the end of March stands at 2,168 crores compared with 1654,654 18:40 18 minutes, 40 seconds crores in the previous year. We have received the subsidy claims till the third week of March 2026. 18:47 18 minutes, 47 seconds uh while the subsidy outstanding at the end of the year is higher as compared to the previous year it has come down 18:54 18 minutes, 54 seconds sequentially quarteron quarter from 3,785 crores to uh 3,199 crores at the end of September as you may be aware the 19:02 19 minutes, 2 seconds government has also come up with supplementary grant of 1500 crores for NBS in March and this has helped settle 19:10 19 minutes, 10 seconds use in the month of March uh inventory has remained uh at a slightly elevated levels driven 19:17 19 minutes, 17 seconds primarily by uh elevated raw material prices and certain incremental inventory that we have kept for our newly 19:25 19 minutes, 25 seconds inaugurated phosphoric acid and sulfuric acid plant in kakinada. 19:30 19 minutes, 30 seconds Uh we are also holding some level of strategic inventory uh considering the ongoing crisis in West Asia. 19:38 19 minutes, 38 seconds uh during the quarter uh we took an impairment on the investments and goodwill in the standalone and consolidated financial results of the 19:46 19 minutes, 46 seconds company uh relating to the drones business. Uh this is primarily due to long lead time in the execution of 19:54 19 minutes, 54 seconds certain orders. Management believes the value of the investments to improve and has provided for retirement on a prudent 20:01 20 minutes, 1 second basis. Finally on forex during the during Q4 the repeat traded in a very 20:07 20 minutes, 7 seconds broad range of 89.75 to 95.23 which continued to p certain level of 20:13 20 minutes, 13 seconds challenges. Uh poor model has continued to hedge its exposures on a competitive basis. Thank you. 20:24 20 minutes, 24 seconds Uh sir should we open the floor for the Q&A? Yeah please. 20:28 20 minutes, 28 seconds Thank you very much sir. Ladies and gentlemen, we will now begin with the question and answer session. Anyone who wishes to ask questions may please press star and one on their touchstone phone. 20:39 20 minutes, 39 seconds If you wish to withdraw yourself from the question Q, you may press star and two. Participants are requested to use only handsets while asking a question. 20:48 20 minutes, 48 seconds Ladies and gentlemen, we will read for a moment while the question Q assembles. 21:13 21 minutes, 13 seconds The first question is from the line of Ahmed Madha from Unifi Capital. Please go ahead. 21:19 21 minutes, 19 seconds Yeah, thanks for the opportunity. I have few questions. Uh firstly, uh if I compare the consolidated P&L and 21:26 21 minutes, 26 seconds standalone P&L, there is a gap. Uh obviously NCL doesn't have incremental loss. I'm assuming that is coming from 21:34 21 minutes, 34 seconds the mining entity BMCC and even the depreciation numbers are uh much higher compared to last year. So if you can 21:42 21 minutes, 42 seconds expand on uh how is BMCC as an entity placed in terms of financials and also 21:51 21 minutes, 51 seconds explain how the uh depreciation amotization of the mining asset uh moves forward in next year and thereafter and 21:59 21 minutes, 59 seconds [clears throat] how do you see the profitability trends uh of the BMCC entity 22:08 22 minutes, 8 seconds on the mining side you are absolutely right government Deposition expenses depreciation is more of an accounting where the mining costs are also getting 22:16 22 minutes, 16 seconds amortized and it is showing there basically it is a basic cost what we incur uh before we reach the war that 22:24 22 minutes, 24 seconds gets amortized over the period of time as per the accounting command that needs to be accounted under the amotization. 22:29 22 minutes, 29 seconds So that's the reason when the volume of operation goes up the amortization cost increases and we charge the entire 22:37 22 minutes, 37 seconds initial mining cost over the volume of or which we can extract in the pit we do a mining accounting and accordingly that 22:46 22 minutes, 46 seconds gets reflected in the consolidated financial observations right in terms of the financial health and performance of 22:52 22 minutes, 52 seconds BMCC. The MCC has turned profitable now uh with the increased volume of operations, better absorption of his cost, improved efficiencies 23:01 23 minutes, 1 second and that price is linked to the market price because uh it's a inter company transfer and factoring that market price 23:09 23 minutes, 9 seconds for rates it turns profitable and it will improve its margin going forward with increase volume of production 23:18 23 minutes, 18 seconds coming through is as far as BMCC is concerned terms of the overall ally and other amortizations which are happening. 23:26 23 minutes, 26 seconds It's more of an accounting thing which should get evened out. When you do the consolidation accounting involving subsidiary there is a certain amount of 23:34 23 minutes, 34 seconds uh uh the intangibles which get amortized over the period and that has gone into the accounts while 23:41 23 minutes, 41 seconds operationally standalone nagarina has turned profitable at a beta level. uh but on a consulted level we need to have 23:49 23 minutes, 49 seconds some um amotization of certain expenses uh between the it's more of a consolidation accounting 23:57 23 minutes, 57 seconds between the acquisition value versus the holding value that gets amortized over the period. So that is reflected there. 24:04 24 minutes, 4 seconds That is why you see the uh change in the depreciation compared to standalone numbers. 24:11 24 minutes, 11 seconds Uh sure uh makes sense. Uh secondly on the margins of the fertilizer business for 24:19 24 minutes, 19 seconds the upcoming season uh how should one look at it considering the very nominal increase in the subsidy numbers about 24:26 24 minutes, 26 seconds 10% while the raw material prices are have gone up uh materially. So how do you see government response coming in? 24:35 24 minutes, 35 seconds Uh whether there can be another sort of a price increase rather subsidy increase which sort of happened in FI23. We were 24:43 24 minutes, 43 seconds going through similar phase where raw material prices went up materially and uh government again revised the subsidies. So how how do you see the 24:51 24 minutes, 51 seconds current situation and what is your broad sense of how uh the you how you'll be compensated for the higher raw material 25:00 25 minutes cost because I'm assuming current subsidy and the MRS are not sufficient for it. 25:08 25 minutes, 8 seconds You're right it's too early stages because this raw materials are coming in at a higher prices. Uh of course industry has some benefit of the 25:15 25 minutes, 15 seconds carryover inventory in the first one or two months. Farmers also will be able to have access to the opening stock of 25:23 25 minutes, 23 seconds finished places. But the replacement cost is very high. One is the availability, another is the price. As I mentioned in my opening remarks, the 25:31 25 minutes, 31 seconds prices of ammonia suffer has gone up extra exorbitantly higher and it definitely calls for additional compensation subsidies which we have 25:39 25 minutes, 39 seconds taken up with the government. It's under discussion stage and hopefully we should get some they have positively looked at it and hopefully we should get the pass 25:48 25 minutes, 48 seconds through on these costs. basic objective is to see that how best we can secure first and produce finishedes 25:55 25 minutes, 55 seconds and then uh try and see how best we can retain the price to the farmers um at more same level. If that calls for 26:02 26 minutes, 2 seconds additional subsidy it will happen or really gap still remains to correct the prices uh because these are all too 26:10 26 minutes, 10 seconds early stages and this extraordinary times and we don't want to put any number. We don't expect this scenario 26:17 26 minutes, 17 seconds also to remain for a long time. Abnormal event has happened and we hope the normaly gets restored once the supply 26:24 26 minutes, 24 seconds side improves. Uh we do expect things to be back to normal. Having said that it's very critical for additional subsidy to 26:32 26 minutes, 32 seconds come in beyond what has been notified as these rates are based on earlier rates. 26:38 26 minutes, 38 seconds uh we need to have additional surgery and some pass will also happen which industry also has taken some corrections in the last one or two months. 26:47 26 minutes, 47 seconds As far as BAP is concerned, government has been considerate and they have given a pass through last year and hopefully same should continue now. 26:59 26 minutes, 59 seconds Sure. Uh my third question was on the crop protection business. If you look at I mean the the performance in terms of 27:06 27 minutes, 6 seconds standalone has been pretty good in terms of margin improvement. Uh so can you just elaborate how do you see overall 27:16 27 minutes, 16 seconds opportunity with the uh NCL acquisition done now? Uh I mean and we have been the entity has been consolidated for uh 27:25 27 minutes, 25 seconds about two and a half quarters. So how do you see the opportunity in terms of export side in terms of scale up of your 27:31 27 minutes, 31 seconds recochemical business and uh Nag Juna's NSL margins how do you see the uh trend 27:38 27 minutes, 38 seconds changing and lastly the standalone crop protection had low growth about two two and a half% uh were 27:47 27 minutes, 47 seconds there any factors that led to that and how do you see the uh growth moving forward standalone has grown well it's not 2 3% 27:57 27 minutes, 57 seconds I know we have grown 3,53 as it is standalone crop protection I meant standalone crop protection. 28:04 28 minutes, 4 seconds Yeah I I also referring to crop protection only 15.8% 8% if I'm right. Uh it revenue has grown significantly. 28:12 28 minutes, 12 seconds See this year over I'll just have a look at the math but uh no I meant I meant for Q4. I meant for Q4 sir. 28:18 28 minutes, 18 seconds Oh Q4 Q4 is off season and um yeah yeah I I was talking about the overall number. 28:25 28 minutes, 25 seconds Yeah. Yeah. Fair. Yeah. Overall uh as I said initially that we have done well. So I meant just for Q4. 28:33 28 minutes, 33 seconds So but in terms of the profitability they've gone up. So also we um overall if you want to just to give you a comment on the crop protection business 28:41 28 minutes, 41 seconds we have done extremely well on all segments uh whether it is global exports of active ingredients especially the key 28:50 28 minutes, 50 seconds molecule micro we got better volume growth as well as better realization and our additional capacity which came 28:58 28 minutes, 58 seconds up in the h during the year was quite helpful to meet the additional demand the domestic uh B2C market we added territories and we increased the volume. 29:10 29 minutes, 10 seconds Our formation business overall has grown by 15 20% while the domestic sector as a 29:17 29 minutes, 17 seconds whole had a good growth. Corandal thanks to the new territories and the new products introduced during the year we have done well. 29:25 29 minutes, 25 seconds We could have done much better but for the challenges we faced in the RB season it is true for the entire industry 29:32 29 minutes, 32 seconds domestic B2B segment where we do sell active ingredients to other institutional customers. We have 29:40 29 minutes, 40 seconds broadened the portfolio beyond NOS and we have scaled up well prices of most of 29:46 29 minutes, 46 seconds the AS also improved during the year and that has resulted in improved margins 29:54 29 minutes, 54 seconds and a standalone basis crop protection business has reached the record turnover and record profitability 30:02 30 minutes, 2 seconds as you can see uh and uh it's close to 19% AITA margin and a revenue of 3,000 30:09 30 minutes, 9 seconds grows. This includes bio business as well where the new based bio business recorded good export volume and we 30:17 30 minutes, 17 seconds started our own channel in bios for domestic sale as well and we have also expanded the product portfolio in bio 30:26 30 minutes, 26 seconds business to go in for microbials and plant extract products. On the MCL side 30:32 30 minutes, 32 seconds as I mentioned in my opening remark um overall turnover has grown by 28% and 30:40 30 minutes, 40 seconds profitability has improved operationally but it has not added significantly to the bottom line mainly because of 30:48 30 minutes, 48 seconds alignment of major accounting policies in line with coramander and that has resulted in provisioning 30:56 30 minutes, 56 seconds which has reduced the net profit on a standalone basis. 31:01 31 minutes, 1 second But capacity utilization of the technical plants have improved significantly and we are also looking at additional 31:10 31 minutes, 10 seconds intermediates and technical capacities in the Hag plant which is currently operating at low level. Kandal and team 31:20 31 minutes, 20 seconds working together are leveraging synergy benefits and cross-selling products across various markets depending on the strength of the each company. 31:32 31 minutes, 32 seconds So overall on a consolidated basis uh we have reached 4,000 crores and margin of 31:38 31 minutes, 38 seconds inclus uh improved to 6% to 7% that is what we indicated in the beginning uh 31:47 31 minutes, 47 seconds and going forward next year with the change in product portfolio that should uh stabilize around 9 to 10%. 31:55 31 minutes, 55 seconds And we need some time to introduce new products, registered new products, introduce 93 formulations to 32:01 32 minutes, 1 second significantly improve IITA in line with corander. It would be difficult for NAS and a standalone basis 32:10 32 minutes, 10 seconds to increase the um margins unless new active ingredients and new formulations are introduced which will take uh some time. 32:21 32 minutes, 21 seconds So currently we can say we can restore the margin what it was 78% beyond that it requires investment which we will take a view at appropriate time. 32:32 32 minutes, 32 seconds Sure. Thank you so much. 32:35 32 minutes, 35 seconds Thank you. The next question is from the line of Ankur from Access Capital. Please go ahead. 32:44 32 minutes, 44 seconds Hi sir, good afternoon and thanks for the opportunity. uh first uh you know if you can uh give the the uh the AITA 32:52 32 minutes, 52 seconds breaker for uh you know for the full year in terms of subsidy unsubsidity and uh the revenue breaker for cost protection uh in terms of you know B2B 33:00 33 minutes B2C and export and domestic sorry come again first one what is it so uh the the sub the non-s subsidy uh 33:08 33 minutes, 8 seconds you know share for the full year uh if you can share that as well as you know the the the breakup in the for the crop protection business break up between 33:17 33 minutes, 17 seconds export domestic as well as B2B B2C revenues there for the food year 33:24 33 minutes, 24 seconds business share for the full year is 57% that is clear in terms of uh 33:44 33 minutes, 44 seconds I'm sorry sir you're not audible right No. 33:56 33 minutes, 56 seconds Hello. 33:58 33 minutes, 58 seconds Yes sir. The line is just give me a minute. I'm just checking the Sure. Sure. It's 66% uh for the year as a whole. 34:07 34 minutes, 7 seconds What you said? 57 is for the quarter and 56% for the year as a whole. 34:14 34 minutes, 14 seconds Sure sir. And uh you know the break up between export to Mystic and B2B B2C for 34:27 34 minutes, 27 seconds you need this for the full year or for the quarter? 34:29 34 minutes, 29 seconds Full year sir uh crop production business right? Yeah, the exports will be uh 34:38 34 minutes, 38 seconds 14 1450 crores exports, demonstrate will be 700 crores 34:47 34 minutes, 47 seconds and domestic B2B and formulation will be 900 crores. 34:56 34 minutes, 56 seconds Sure sir, that's helpful. Yeah. Yeah. 34:59 34 minutes, 59 seconds Uh yeah. Okay. So uh you know uh and you as you rightly highlighted in terms of the growth that we have seen for the non- subsidiary business as well as uh 35:07 35 minutes, 7 seconds the strong uh you know operating profits the margin expansion as well for the full year uh uh given the macro one uh 35:15 35 minutes, 15 seconds is there any concern from an RM availability perspective for the crop protection business or even from a pricing perspective and second how do 35:23 35 minutes, 23 seconds you look at the growth going ahead uh you did alluded towards NACL sort of you know cross-selling opportunity being there but let's say on corum 35:30 35 minutes, 30 seconds uh you know own portfolio basis what sort of growth are you looking at and uh sustainable margins there 35:38 35 minutes, 38 seconds as far as raw material supply chain is concerned on crop production we are quite comfortable and uh we are fairly covered I don't see any challenge uh it 35:45 35 minutes, 45 seconds continues to be available and whatever uh input cost increase has happened because of global phenomena we are able to pass through so we don't see any 35:55 35 minutes, 55 seconds impact on margin due to input cost so crop protection business is fairly we comfortable Terms of the growth opportunities it is 36:02 36 minutes, 2 seconds driven by active ingredient volumes mangro where additional capacity is coming up that will be commissioned during the year that will be the major 36:10 36 minutes, 10 seconds volume crer for active ingredient on the domestic formulation business we are planning to grow aggressively by another 20 25% because of the new registrations 36:19 36 minutes, 19 seconds which are coming through in this year we'll be launching another six new products and also we are increasing the our import of uh active ingredients from 36:27 36 minutes, 27 seconds China and also introducing new products In India overall you can see a revenue growth of 20 to 25%. Uh besides the 36:36 36 minutes, 36 seconds capacitydriven growth in active ingredients which were mainly for the export market. 36:44 36 minutes, 44 seconds Sure sir. And on the margins uh do we think we we'll be sustaining let's say 19ish% uh you know non MCL AITA margin 36:51 36 minutes, 51 seconds for our business or I don't see any challenge and also we should note that um with the currency 36:59 36 minutes, 59 seconds deprivation terribly helping this business significant share of exports happen. 37:06 37 minutes, 6 seconds Uh sure sir uh that's very helpful and just lastly uh you know you did cover up uh you know in your opening comments on the uh the raw material inflation on the 37:15 37 minutes, 15 seconds fertilizer side and our expectation that probably you know there could be another round of maybe an increase in subsidy from the government side. Uh my question 37:22 37 minutes, 22 seconds here was uh you know one given that uh Q1 is is fairly there but Q2 there could be RM inflation which could hit us and 37:30 37 minutes, 30 seconds uh what if the government is not increasing or maybe there is a delay in terms of increase in subsidy from from the government side. Are we looking to 37:38 37 minutes, 38 seconds increase uh the finished good prices there as aggressively or uh you know how should because that will have an implication on your uh you know overall margins as well. So how should one look at that part? 37:50 37 minutes, 50 seconds These are all very abnormal situations very difficult to predict how long it will take. But um it is very important both for the sector health as well as 37:59 37 minutes, 59 seconds for the farmer benefit government response favorably which they uh they are looking into it and it should happen 38:08 38 minutes, 8 seconds here and now if the production has to continue and fertilizer is to be made available to 38:15 38 minutes, 15 seconds the farmers. So we do hope that we'll have a yearly resolution on this additional compensation to ensure that 38:22 38 minutes, 22 seconds any further price increase on NPKs are reasonable for the farming community to observe. 38:32 38 minutes, 32 seconds Uh sure sir okay uh uh that's helpful. 38:34 38 minutes, 34 seconds Uh I'll get back into the view for if I have any more questions. Thank you. 38:38 38 minutes, 38 seconds Thank you. Thank you sir. The next question is from the line of Ru from Antic Stock Broking. Please go ahead. 38:46 38 minutes, 46 seconds Yeah. Hi sir. Uh thanks for the opportunity. Uh sir, uh the the the domestic and export revenue share that you have mentioned for the CP business 38:54 38 minutes, 54 seconds that was the standalone business or including NACL. 38:59 38 minutes, 59 seconds That is for the standalone business. He asked for the standalone business. 39:03 39 minutes, 3 seconds So uh uh if you could mention the NL like including NL number for the Q4 uh for the export revenue that will be helpful. 39:13 39 minutes, 13 seconds I need to get back to you on export revenue. Overall revenue is,584 for the full year and 361 crores for Q4. But um 39:21 39 minutes, 21 seconds I need to just get back to you on domestic and export break up. We'll ask this one later. 39:27 39 minutes, 27 seconds Understood sir. and uh uh uh in terms of uh the the fertilizer business. So uh could you please elaborate in terms of 39:36 39 minutes, 36 seconds the uh phis groups inventory that you have as on as on as on March 26 39:48 39 minutes, 48 seconds it may be close to 5.5 lakh tons uh roughly finished fertilizations we may be having and that's that's where 39:56 39 minutes, 56 seconds approximately at this point do you think entirely the manufacturing volume or uh improving trading 40:05 40 minutes, 5 seconds uh trading is not much probably 60 70,000 trading 40:12 40 minutes, 12 seconds understood sir and uh uh uh if if I look at in uh in terms of the the the the 40:19 40 minutes, 19 seconds kodamandal uh city business uh uh standalone city business kmandal so the growth was 2%. So that was mainly 40:27 40 minutes, 27 seconds because of this poor growth in the domestic market or or it is mainly on account of both domestic and exports. 40:38 40 minutes, 38 seconds Sorry come again. What you saying? 40:40 40 minutes, 40 seconds Uh if I if I look at uh kodandal CP business for the standalone ones the growth was two two and a half% for the 40:48 40 minutes, 48 seconds quarter. So uh the the the primary reason was to you know uh because of the poor domestic business growth or it is a 40:57 40 minutes, 57 seconds mix of domestic and export uh both have performed not not performed well. 41:04 41 minutes, 4 seconds No actually uh it's offseason in domestic market you know so there also at least there's a volume increase it's 41:12 41 minutes, 12 seconds exports we have moderated uh the sale in fourth quarter uh as we have opportunities to sell food in season 41:19 41 minutes, 19 seconds time in April May uh we have consciously taking a call to have a moderate sales in fourth quarter uh and there has been 41:27 41 minutes, 27 seconds significant increase in sight sales during that period so we have to look for right opportunity to sell hence uh begin to push for more volume of exports 41:36 41 minutes, 36 seconds in fourth quarter. So it's a temporary uh slowdown in fourth quarter that will come back in first quarter and formation business it has grown well by 14%. 41:47 41 minutes, 47 seconds and uh in spite of being an offse and domestic B2B is more of a function 41:53 41 minutes, 53 seconds of uh demand requirement and uh that can always be made up in first quarter. So I don't see any major issue per say in any 42:02 42 minutes, 2 seconds personal segment. Area where we have marginally degrone compared to last year is in bio product category where we did 42:11 42 minutes, 11 seconds exports in the fourth quarter of last year and we have executed this export order earlier in December. Hence it is showing a t growth in the current year. 42:19 42 minutes, 19 seconds So that is why the overall crop protection CPC is looking marginal 2%. 42:26 42 minutes, 26 seconds uh otherwise the overall for the year growth 16% and that set of growth we do expect to sustain. 42:34 42 minutes, 34 seconds Understood sir and uh one uh one last thing uh so so so the uh if you look at in terms of the global global industry 42:43 42 minutes, 43 seconds specifically in the latter market so latter market is is you know struggling with the with the with the uh inventory uh inventory issues. So how how do you 42:52 42 minutes, 52 seconds see see that market uh for your growth and second part is that if I look at mango prices for the for the last maybe 43:00 43 minutes maybe one or two months so the prices have gone up roughly by you know 30 to 40% in the range uh so so how how do you 43:08 43 minutes, 8 seconds do do you assess that in terms of your your your Q1 performance and second is that if if you could you know share the unique grade contribution number uh in 43:16 43 minutes, 16 seconds in in the particular business Our understanding is distracting has already happened in lat markets. We are 43:25 43 minutes, 25 seconds not facing any challenge and the micro per say uh our cost in is getting passed down and that is required in the current 43:34 43 minutes, 34 seconds market situation also our dependency is not only in Latin America we have a widespread reach across various 43:41 43 minutes, 41 seconds continents so to section we are very comfortable and we are waiting for the new capacity to come up to increase our volumes and revenues in the coming 43:48 43 minutes, 48 seconds quarters I don't see any challenge in improving our margins or performance or sustaining the same in the first quarter 43:58 43 minutes, 58 seconds Understood sir and and the uh unique rate uh continuing for this quarter more or less remains the same because some of 44:05 44 minutes, 5 seconds the unique rates because of the price increase in inputs but not that viable so it remains at 3% on the annual list 44:13 44 minutes, 13 seconds for the year and that's it. Thank you. Uh thanks for answering. Thank you. Thank you. 44:22 44 minutes, 22 seconds The next question is from the line of Somaya V from Aendis Park. Please go ahead. 44:28 44 minutes, 28 seconds Yeah, thanks for the opportunity sir. So my first question is on false asset price for the quarter has it been decided? Uh that's one and uh in the 44:37 44 minutes, 37 seconds international market if you were to u procure sulfur and ammonia what is the current uh pricing level? 44:46 44 minutes, 46 seconds PA price was fixed at 1315 uh when there was a short gap of C2 when happened that time around the time we fixed that 44:53 44 minutes, 53 seconds phosphoric price at 1360 at against the previous of 1290 45:01 45 minutes, 1 second 1360 okay of ammonia it's gone up significantly there are deals which are happening 45:08 45 minutes, 8 seconds around $840 $850 range that's where last week heard and sulfur is also on the same level $800,000. 45:19 45 minutes, 19 seconds Not so. So in terms of this uh the backward integrated capacity that we have added last quarter um so for the 45:26 45 minutes, 26 seconds first half of this year do we see uh any challenges in terms of raw material availability to run this kind of list 45:33 45 minutes, 33 seconds and also in terms of margin contribution do we see to be accretive uh given where let's say sulfur prices are 45:45 45 minutes, 45 seconds these are all very extraordinary times very difficult to look at margins at this point of time. 45:51 45 minutes, 51 seconds It doesn't make sense even to look at either product margin or foss value gap. 45:57 45 minutes, 57 seconds If you take current quarter phosphoric acid price and try to project next quarter value gap obvious will be negative because these price increase of 46:05 46 minutes, 5 seconds and other input prices will come in in the next quarter. 46:11 46 minutes, 11 seconds Uh this may be one or two quarters of challenges and pressures. uh but it should get normalized and structurally the value what we originally message 46:19 46 minutes, 19 seconds will come through. I don't see any challenge in availability per se for running the plant because we have a good coverage of rock phosphate and synagical 46:27 46 minutes, 27 seconds mines is operating at full stream and we are getting rock phosphate from there and sulfur there is a challenge we have 46:34 46 minutes, 34 seconds taken lot of efforts there is a visibility uh up to first quarter as I mentioned and going forward things ease 46:42 46 minutes, 42 seconds out we should be able to secure raw material for second quarter as well we have to wait and see how this Middle crisis playing out. 46:53 46 minutes, 53 seconds Understood sir. So uh in terms of uh between Q1 and Q2 uh I think we should 47:00 47 minutes be uh having a fair idea of at least how things stand today in terms of our uh inventory that is there in the system NPK subsidy that's being given and 47:08 47 minutes, 8 seconds pricing that's happened. So would be fair to say Q1 is kind of still manageable and Q2 is where uh definitely 47:17 47 minutes, 17 seconds the subsidy support should come in or is it like in Q1 itself we we need this incremental subsidy support 47:24 47 minutes, 24 seconds everyday is a new day we're not able to predict anything this time is little uncomfortable for us to put any number on the table let's wait for things to 47:33 47 minutes, 33 seconds play out before we can completely fair understand it's bit challenging Right now we are focusing 47:40 47 minutes, 40 seconds more on securing raw materials and having the production ensuring fertilizer availability for the 47:48 47 minutes, 48 seconds we have a lot of needs and government has to give them we have to correct the prices so many things are there bit fluid at this stage I would say 47:57 47 minutes, 57 seconds okay so last questions on I'm sorry to interrupt you so I would request you to kindly rejoin the queue for followup questions please there are 48:05 48 minutes, 5 seconds others who are waiting for their thank you so much yeah We'll take the next question from the line of Akash Ma from Canara HSBC live. Please go ahead. 48:17 48 minutes, 17 seconds Uh hi sir, thank you for having the call. Uh so my first question is on the uh sourcing bit only and you said uh I mean sir on the sunsa front uh it's 48:25 48 minutes, 25 seconds slightly challenging as of now. I mean obviously we have visibility of Q1 but going into Q2 it's a bit difficult. So 48:32 48 minutes, 32 seconds can you just help us with the current sourcing? I mean it was earlier with the Middle East. So from where you are kind of managing the sourcing for sulfur and 48:41 48 minutes, 41 seconds raw materials if there is any change. So that's my first question. 48:47 48 minutes, 47 seconds We used to source predominantly from Middle East only. Now we are diversify sources variable sulfur is available we are buying and we have been getting some 48:56 48 minutes, 56 seconds treatments from Canada as well. Uh we have got trying some domestic source also. So we are getting something from Southeast Asian countries Japan. So we 49:06 49 minutes, 6 seconds looking at all the opportunities. It's quite fortunate that we have got our own sulfuric acid plant coming up in cogn so that we can produce sulfuric acid 49:14 49 minutes, 14 seconds because sulfuric acid prices have gone up significantly higher and hence it comes handy to have our own sulfuric acid which in turn can generate steam 49:22 49 minutes, 22 seconds and produce power as well. So we have multiple sources we are working on. 49:28 49 minutes, 28 seconds So whoever supplies sulfur to us we are okay to take it. It's not right now it's more of a spot trans section which we're doing other way the major source is to 49:37 49 minutes, 37 seconds be katar energy and all the sure as of now there's no shortfall as 49:45 49 minutes, 45 seconds such it's available at a higher price that's about it right yeah visibility up to June we have to 49:52 49 minutes, 52 seconds keep uh covering so hopefully it should uh ease out the major challenge is the bottleneck of the ships to cross it is 50:00 50 minutes not it's not available. Helper is available in printing. It is a moment of shift through this fourth of almost is what making it difficult for us to 50:08 50 minutes, 8 seconds predict any we are hoping things normalized and training time is not much between Middle East to India. So for 50:17 50 minutes, 17 seconds July it is too early to predict whether it will happen or not. In a logical sense it looks like it will happen. 50:24 50 minutes, 24 seconds Uh sure. And my second question is uh I mean by chance you can just highlight any any on the subsidy front or again 50:33 50 minutes, 33 seconds you cannot give a clear timeline if it will and when it will come through but bas given the raw material price increase any number you can just help us 50:41 50 minutes, 41 seconds out with in terms of the implied uh increase in subsidy or the price uh on the last number and on big percentage 50:50 50 minutes, 50 seconds sums or other terms. Yeah, we have to wait and see for the Rabi 50:57 50 minutes, 57 seconds season NBS rate formula will kick in and probably will get updated. What we are talking about is the intervening period of June to September where the ramen 51:07 51 minutes, 7 seconds price up very shortly. So maybe a cost to cost reimbursement is what we are 51:13 51 minutes, 13 seconds looking at so that we can cushion the current sport in prices to great extent while we arrive at the final price to the farmer. 51:24 51 minutes, 24 seconds So very difficult to predict how much they will give like a pass through in DAP we are trying whether there can be a pass through in NPK as well. 51:35 51 minutes, 35 seconds We need to wait and see how it's going to happen. No. So that that's it from Thank you. 51:43 51 minutes, 43 seconds Thank you. The next question is from the line of Darita from DSP Asset Managers. Please go ahead. 51:51 51 minutes, 51 seconds Hi sir. Thank you for the opportunity. 51:54 51 minutes, 54 seconds Uh I just had one question. uh is there any key intermediate for mango that we import from middle east countries uh 52:02 52 minutes, 2 seconds where we may be facing any constraint uh for importing it fortunately not we are able to get 52:10 52 minutes, 10 seconds everything from other than that's the only comfort we have this raw material nothing is coming from within yeah of course we have some products but we have 52:18 52 minutes, 18 seconds alternate sources so we are quite okay with and uh we've been able to pass on the price increase uh even in the last two 52:27 52 minutes, 27 seconds months fourth quarter of course we can see that but over the last two months also we've been able to pass on the price increase yes and to some extent the currently the 52:34 52 minutes, 34 seconds president also has hated this absolve some f got it okay and uh not facing any 52:41 52 minutes, 41 seconds shortage uh for sourcing the intermediate yeah we had some small disruption in the 52:48 52 minutes, 48 seconds month of April but uh we have now looked at the alternate coverage unlike nutrients The import of these raw materials from China is quite okay. So 52:57 52 minutes, 57 seconds it takes time but it comes we finally covered. 53:02 53 minutes, 2 seconds Okay. Got it. Yeah that's all. Thank you. 53:05 53 minutes, 5 seconds Thank you. We'll take the next question from the line of Kumar Sha from Sumangal Investments. Please go ahead. 53:15 53 minutes, 15 seconds Hi thanks for the opportunity. So uh in view of the uh raw material inflation 53:23 53 minutes, 23 seconds what should be our margin guidance uh as far as ibita pattern is concerned for the whole year 53:32 53 minutes, 32 seconds I prefer to pass this question very difficult to predict at this point of time let's see how it goes because 53:40 53 minutes, 40 seconds it's a function of what government is going to compensate and how much we are going to look at price corrections is as a function of many things it's very 53:48 53 minutes, 48 seconds fluid I don't want to put any number now so let's wait for things to get normalized practically nothing has changed except 53:56 53 minutes, 56 seconds for the blockade which has happened which has resulted in shipments not going through once the supply situation 54:04 54 minutes, 4 seconds improves supply chain gets normalized prices should come back putting any number for the next two three months how it's going to be it's 54:11 54 minutes, 11 seconds not going to help any of us okay sir thank Thank you. Thank you. 54:19 54 minutes, 19 seconds Thank you. The next question is from the line of Sheil Kumar Sha from Samiksha Capital. Please go ahead. 54:26 54 minutes, 26 seconds Yeah. Hello. Am I audible? Yes sir. Yeah. 54:30 54 minutes, 30 seconds Yeah. Thank you for the opportunity. Uh my first question is uh uh what is our manufacturing aida on fertilizer side? I 54:39 54 minutes, 39 seconds mean part for 4Q and for the full year last year it was around 5,000 plus that 54:48 54 minutes, 48 seconds we have mentioned and u fourth quarter was uh compressed it was less than uh 54:55 54 minutes, 55 seconds 8,500 around that number it was around 8,500 for fourth quarter. 55:01 55 minutes, 1 second Okay and uh what about on a trading side if you can share margins or a bit per turn? 55:08 55 minutes, 8 seconds It's too difficult to make depends on the grades and timing of purchase and there's a pass through on DAP. So it's different set of numbers are there. 55:17 55 minutes, 17 seconds But on an average what type of margin would be be making on a trading 55:24 55 minutes, 24 seconds you can take roughly four to 5% sort of a number. 55:28 55 minutes, 28 seconds Okay. And uh how do you see trading volume for full I mean for FI27 on the high days of FI26? 55:39 55 minutes, 39 seconds We have a challenge in availability especially on DAP. So we need to see how things improve. We doubt to do the same 55:46 55 minutes, 46 seconds volume and uh there can be a potential reduction in the first quarter because of uh non availability especially major 55:55 55 minutes, 55 seconds imports coming through from Saudi may not happen. 55:58 55 minutes, 58 seconds And we also were want to be conscious on working up in liquidity. So we may not being unless it is absolutely essential to meet the demand. 56:08 56 minutes, 8 seconds But second of I think should get normalized if things improve the volume should come back avail. 56:20 56 minutes, 20 seconds My last question is on what would be the revenue for nano dep 56:28 56 minutes, 28 seconds I can tell you 45 lakh what if I'm not sure what the I don't get the number now it's part of the overall segment I will 56:36 56 minutes, 36 seconds come back to you on this have it ready yeah sure thank you thank you so much thank you 56:43 56 minutes, 43 seconds thank you the next question is from the line of Bharat Sait from Quest Investment Advisor Private Limited Please go ahead. 56:51 56 minutes, 51 seconds Hi, thanks for the opportunity. My question is related to this B capacity that which we are expanding. So how much 56:58 56 minutes, 58 seconds additional uh revenue or asset term if you can do we expect and what kind of I mean product portfolio diversity CBification it will help. 57:14 57 minutes, 14 seconds We expanded our capacity by 10,000 tens of nices and um I I'll get back to you on the 57:22 57 minutes, 22 seconds revenue per day on the H but uh the payback will be much faster less than one year. So our investment what we have made in debt linking the facility 57:32 57 minutes, 32 seconds uh that gets paid off less than one year. In fact we are expanding another 20,000 tons at Ariam as well and that project is underway that should come 57:40 57 minutes, 40 seconds through by middle of uh this year hopefully there also I think margins are pretty good and uh we should have a 57:48 57 minutes, 48 seconds payback in a shorter time frame of uh less than two years. Okay. 57:55 57 minutes, 55 seconds Hello sorry and we were earlier we were evaluating in foring into CRDMO. So what 58:03 58 minutes, 3 seconds stage we are I mean the CDMO and how is the opportunity that we look forward any further progress? 58:12 58 minutes, 12 seconds So the CDM takes very long time two three years and yeah right MNC's have responded favorably 58:19 58 minutes, 19 seconds they looked at the facilities they move to the next stage they take quite long time two three European entities have 58:26 58 minutes, 26 seconds shown interest and with the combined the strength of Nagatina we are able to fast track some of the intermediate manufacturing we are looking at flation 58:35 58 minutes, 35 seconds chemistry very seriously while Nagaratina has got the capability and we are going to invest on flination 58:41 58 minutes, 41 seconds chemistry in the coming quarters to um showcase it to the potential CDMO players and we are quite happy with this 58:49 58 minutes, 49 seconds and some of the Japanese collaborators are also keen to work with us. Things are progressing well while it is not materally impacting the revenue in the 58:56 58 minutes, 56 seconds current year but I'm sure few years down the line we will have significant play in this space. Uh we are trying to do it 59:04 59 minutes, 4 seconds organically and we will scale up. We are not looking for big ticket investment immediately and looking at the current market situation. Wanted to focus on current investments what we have made. 59:15 59 minutes, 15 seconds Realize the value out of it before we make any fresh investments on a large scale on CO but we are doing well on the organic space. At this point of time not 59:23 59 minutes, 23 seconds able to put out the party thing but things are progressing very well. So could we see I mean some revenue in from 59:31 59 minutes, 31 seconds FYI 28 or uh it may go into the year after that also because once they uh get the proof 59:39 59 minutes, 39 seconds of con and they start registering the product and then agree to the costing margin etc it may happen but we will 59:46 59 minutes, 46 seconds start creating some capacities of smaller scale this year and that will go into production next year. So some 59:54 59 minutes, 54 seconds revenues will come in but significant can come in in year after. 59:59 59 minutes, 59 seconds Now taking uh see with these price increase substantially in this fertilizer how should we think that 1:00:06 1 hour, 6 seconds adoption of nano DAP I mean going say post I mean harvesting. 1:00:15 1 hour, 15 seconds Yeah ideally this is a great opportunity like co many things have happened. Uh I wish farmers adoption increases. we are 1:00:22 1 hour, 22 seconds trying to do and promote balanced nutrition but as long as you have ura and dap available at affordable price 1:00:29 1 hour, 29 seconds this situation may be difficult so unless there's a major policy correction happens and restrict the availability in terms of actual need for the marginal 1:00:38 1 hour, 38 seconds farmers this adoption will be slow and steady and we are also not in an area to full but the product is working well and 1:00:44 1 hour, 44 seconds it can dictate uh shortage situations can be a bone to the farmers that's what it is okay and Last question sir if with your 1:00:53 1 hour, 53 seconds permission any update on daksha a good question I thank you rais's point 1:01:01 1 hour, 1 minute, 1 second because I've taken the dimminition in the value of investments relating to dua as you know we have got a large order which is funding for execution and we 1:01:10 1 hour, 1 minute, 10 seconds have fixed all the technical related gaps and we are waiting for the execution of orders I'm personally driving this initiative and we have made 1:01:18 1 hour, 1 minute, 18 seconds significant progress on introducing new products lot of projects have been identified. A lot of partnerships have been identified and we have seen good 1:01:26 1 hour, 1 minute, 26 seconds traction coming on from the defense segment after the usage of drones in various warfare and besides that 1:01:34 1 hour, 1 minute, 34 seconds agreement and tax has been working very closely. They come up with new products. 1:01:38 1 hour, 1 minute, 38 seconds We are going through tight certification and we strongly believe there's one space in agriculture where drone response has been extremely good from the farming community and we'll be 1:01:47 1 hour, 1 minute, 47 seconds scaling up volume. We are participating in the institution centers. They're also looking at drones for various institutional applications and we are trying to develop the complete ecosystem 1:01:56 1 hour, 1 minute, 56 seconds for Daksha by tying up with the various component manufacturers whether it is for batteries or cameras or various 1:02:04 1 hour, 2 minutes, 4 seconds other electronics instruments and also for software development will be moving to a larger place 1:02:11 1 hour, 2 minutes, 11 seconds more than 60,000 square ft where they will uh build this facility where the entire team will sit in Chennai 1:02:19 1 hour, 2 minutes, 19 seconds Hopefully this facility should be ready by May. Lot of process are happening and um I think we in a good recovery mode 1:02:28 1 hour, 2 minutes, 28 seconds after we execute the first order during this year. Uh that will give us a confidence to have repeat orders across various segments of defense. Meanwhile, 1:02:37 1 hour, 2 minutes, 37 seconds we also centering the R&D and we are going to introduce new products over the next 6 to 9 months. uh we will try and 1:02:46 1 hour, 2 minutes, 46 seconds realize the value of uh investment what we make. We bit ahead of time but it's going to make a difference uh in next two years. 1:02:55 1 hour, 2 minutes, 55 seconds Thank you very much sir and all the best. Thank you. 1:02:59 1 hour, 2 minutes, 59 seconds Thank you ladies and gentlemen. We'll take that as the last question for today. I would now like to hand the conference over to the management for closing comments. Thank you and over to you sir. 1:03:10 1 hour, 3 minutes, 10 seconds Thank you very much. Thank you for the insightful questions and I know it's a challenging time uh and definitely I'm sure uh we'll do our best to serve the 1:03:17 1 hour, 3 minutes, 17 seconds farming community. Thank you for your continued support. 1:03:21 1 hour, 3 minutes, 21 seconds Thank you members of the management. On behalf of ARA Securities that concludes this conference we thank you for joining us and you may now disconnect your lines. Thank you.