DCW Limited — Q3 FY26

DCW Ltd Q3 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=2_suvmL9GJA Published: 3 months ago

0:01 1 second Ladies and gentlemen, good day and welcome to DCW Limited Q3 and 9 months 0:07 7 seconds FY26 earnings conference call hosted by Arenhan Capital Markets Limited. As a reminder, all participant lines will be 0:16 16 seconds in the listenon mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this 0:25 25 seconds conference call, please signal an operator by pressing star 10 on your touchstone phone. Please note that this 0:32 32 seconds conference is being recorded. I now hand the conference over to Miss Muktani from Ahan Capital Markets Limited. Thank you and over to you Miss Mktach Chandani. 0:45 45 seconds Hello and good afternoon to everyone. On behalf of Arhant Capital Markets, I thank you all for joining into the Q3 0:53 53 seconds and 9F FY26 earnings conference call of DCW Limited. Today from the management we have Mr. Satik Jan, President, Mr. 1:04 1 minute, 4 seconds Sudaran Gapati, Chief Operating Officer, Mr. Prraipto Mukharji, Chief Financial Officer. 1:13 1 minute, 13 seconds So without any further delay, I'll hand over the call to Mr. Satwig Jen for his opening remarks. Over to you sir. 1:21 1 minute, 21 seconds Thank you. Um good afternoon everyone and thank you for joining our earnings call for the third quarter of FY26. 1:31 1 minute, 31 seconds As always I appreciate your time and continued interest in DCW. I will begin with a brief perspective on the broader 1:38 1 minute, 38 seconds industry environment before moving on to our operating performance and outlook. 1:45 1 minute, 45 seconds The global chemical industry continued to operate in a challenging environment during the quarter. 1:51 1 minute, 51 seconds Pricing across most commodity value chains remained under pressure and demand recovery was uneven. Supply uh discipline globally was limited. 2:03 2 minutes, 3 seconds A key factor continues to be the elevated operating rates in China where capacity additions and state supported 2:10 2 minutes, 10 seconds production have kept global supply high despite the weak economics. 2:15 2 minutes, 15 seconds This has constrained pricing recovery across products such as PVC, sodash and costic soda. In India, underlying demand 2:24 2 minutes, 24 seconds has remained stable supported by housing infrastructure and water management related consumption. However, domestic 2:32 2 minutes, 32 seconds producers continue to face significant import competition. 2:36 2 minutes, 36 seconds Lower freight costs and global over supply resulted in materially higher imports during the year which directly impacted domestic realizations. 2:47 2 minutes, 47 seconds At a broader level, global trade flows are also undergoing realignment due to geopolitical shifts, tariffs, and supply chain diversification. 2:58 2 minutes, 58 seconds Over the medium term, this may create opportunities for Indian chemical manufacturers, particularly in export 3:05 3 minutes, 5 seconds oriented and specialty segments. But in the near term, the industry continues to navigate margin pressure. 3:12 3 minutes, 12 seconds Against this backdrop, DCW delivered a resilient operating performance during the quarter. Despite the price erosion 3:21 3 minutes, 21 seconds across all product segments, our revenue grew approximately 10% yearonear, driven primarily by strong volume momentum and 3:30 3 minutes, 30 seconds increasing contribution from our specialty chemicals. Our performance this quarter once again reinforces what 3:38 3 minutes, 38 seconds we have been communicating over the past few quarters. The transition of our portfolio towards specialty-led growth 3:45 3 minutes, 45 seconds is steadily improving our business stability. 3:49 3 minutes, 49 seconds Within the basic chemicals portfolio, most products recorded healthy volume growth. 3:56 3 minutes, 56 seconds The only exception was PVC where incremental volumes were largely diverted towards captive consumption for our CPVC production. 4:05 4 minutes, 5 seconds While this reduced our market PBC sales, it improved integrated value realization and supported downstream specialty growth. 4:16 4 minutes, 16 seconds Though there was volume improvement, the operating environment for basic chemicals remained particularly difficult again especially for PVC where 4:25 4 minutes, 25 seconds price erosion was not matched by a similar reduction in input cost. As a result, the basic chemical segment 4:33 4 minutes, 33 seconds reported operating pressure during the quarter. 4:37 4 minutes, 37 seconds The specialty chemical segment, however, continue to to show strong momentum. 4:43 4 minutes, 43 seconds CPBC volumes expanded significantly following the ramp up of the recently commissioned capacity expansion. 4:51 4 minutes, 51 seconds The ramp up has progressed well and the quarter recorded our highest ever CPVC sales. Although realizations declined 4:59 4 minutes, 59 seconds significantly during the quarter, the higher volumes largely offset the pricing impact. 5:06 5 minutes, 6 seconds A synthetic iron oxide pigment business also recorded healthy growth, further strengthening the specialty segment's 5:13 5 minutes, 13 seconds contribution to the company's overall profitability. 5:17 5 minutes, 17 seconds Importantly, investments made in the specialty chemicals over the past few years 5:25 5 minutes, 25 seconds provided stability to the company's overall performance. This segment generated strong operating profitability 5:31 5 minutes, 31 seconds and effectively offset the weakness in our basic chemicals business on a 9-month basis. Aribida has improved 5:40 5 minutes, 40 seconds approximately 14% yearonear reflecting improved operational efficiencies, disciplined ex execution and benefits of our portfolio rebalancing. 5:52 5 minutes, 52 seconds Moving to the outlook going forward, as previously communicated, the balanced 10,000 t CPVC expansion is progressing 6:00 6 minutes on schedule and is expected to be completed next month. Upon commissioning, our annual CPVC capacity 6:08 6 minutes, 8 seconds will increase to 50,000 tons. This will further ex strengthen our downstream integration and specialty positioning. 6:17 6 minutes, 17 seconds We expect quarter 4 to be stronger supported by higher dispatches of our pigments and synthetic root. 6:25 6 minutes, 25 seconds Additionally, the recent policy developments in China, especially uh specifically the withdrawal of the VAT 6:34 6 minutes, 34 seconds rebate on PVC exports effective April could improve export pricing discipline 6:41 6 minutes, 41 seconds and is a constructive development for domestic PVC producers. 6:46 6 minutes, 46 seconds The SOP business continues to demonstrate steady growth momentum and we are expanding our product portfolio 6:53 6 minutes, 53 seconds with new grades including black and orange pigments. We expect this to improve both our market reach and margin 7:00 7 minutes profile over time. Beyond the operating performance, we continue to invest in strengthening the organization itself. 7:09 7 minutes, 9 seconds Over the past year, we have focused on capability building, digital integration, governance processes, and 7:16 7 minutes, 16 seconds technology adoption. The SAP S4 Hannah implementation, process standardization, and internal systems development are not 7:25 7 minutes, 25 seconds short-term initiatives. They are foundational steps intended to support scalable growth. 7:31 7 minutes, 31 seconds By the end of this financial year, the current phase of projects will be completed and our balance sheet will continue to strengthen with ongoing debt 7:39 7 minutes, 39 seconds reduction. As I mentioned in the last quarter, we are not only preparing for cyclical recovery, we are preparing for the next phase of growth. 7:49 7 minutes, 49 seconds With a stronger specialty chemicals portfolio, expanded CPVC capacity, leaner balance sheet, DCW is entering 7:57 7 minutes, 57 seconds FY27 with a far more resilient and scalable base. 8:02 8 minutes, 2 seconds Our focus now is to convert this stability into growth. 8:07 8 minutes, 7 seconds Multiple downstream and value added specialty opportunities are progressing internally and we believe the coming years will mark a structural shift in 8:16 8 minutes, 16 seconds both our earnings quality and growth trajectory for the company. With that I'll hand over to Praipto our CFO to 8:24 8 minutes, 24 seconds discuss our financial performance in detail. Thank you. 8:29 8 minutes, 29 seconds Good afternoon everybody. Thank you Satri and uh welcome you all to the Q3 earnings call. 8:37 8 minutes, 37 seconds Q3 FI26 revenue for the company stood at 520 crores which is 9.6% higher on a YI 8:45 8 minutes, 45 seconds basis. The increase in revenue is driven by speciality chemical segment which reported a revenue of 156 cr a 27% 8:54 8 minutes, 54 seconds increase whereas the basic chemical revenue uh at 362 cr showed a growth of 3.8%. 9:03 9 minutes, 3 seconds The increase in topline has been driven by sales volume growth across all the product segment with uh CPVC and SIOP 9:11 9 minutes, 11 seconds sales growing uh at a pace of 80% and 19% respectively. The CPVC sales volume 9:20 9 minutes, 20 seconds uh is backed by capacity expansion from our 20K to 40K with negligible lag in commercialization commercialization of the incremental volumes. 9:32 9 minutes, 32 seconds It is important to note that the CPVC sales on a comparable period is lower due to captive consumption of its own 9:39 9 minutes, 39 seconds PVC for increased CPVC production. The price erosion is also witnessed across all product segments with CPVC and PVC 9:49 9 minutes, 49 seconds demonstrating severe cuts of 26% and 17% respectively on a YUI basis. Despite 9:55 9 minutes, 55 seconds that the company at a overall level have shown a topline growth of 10% on Y basis 10:02 10 minutes, 2 seconds for the quarter. On a sequential basis the revenue dipped by 3.6% from 539 floors to 520 floors again due 10:11 10 minutes, 11 seconds to price erosion ranging from 6 to 8% across all its product segment. 10:17 10 minutes, 17 seconds At whiter in 9 months the revenue clocked at 1535 crs which is up by 5% from 1462 cr. 10:25 10 minutes, 25 seconds This increases despite severe price erosions of PBCC PVC of 15 and 24% respectively. The price erosion was 10:32 10 minutes, 32 seconds compensated by more than compensated by higher sales volume across all product segments with standout volume increase in our synthetic rotile and CPVC. 10:44 10 minutes, 44 seconds The IITA including other income for the quarter stood at 50 cr which is 19% which is 19% lower on a YI basis down 10:52 10 minutes, 52 seconds from down from 61.8 cr while speciality chemical showed a growth of 4.2%. 11:01 11 minutes, 1 second This was pretty a pretty thin growth compared to the yi volume increase both in SOP and CPVC. While the net 11:10 11 minutes, 10 seconds realization of SOP on a YI basis remains stable. The CPVC as mentioned earlier had a severe price pricing pressure of 11:17 11 minutes, 17 seconds 26% downward reductions. The basic chemical seeta stood at 14 crores in Q3 11:24 11 minutes, 24 seconds FI20 uh which stood at 14 cr in the previous year got completely wiped up and had reported a break even number for FI26 Q3. 11:35 11 minutes, 35 seconds This is predominantly due to wild chewing in swing in net realization of PVC a tip of 17% putting pressure on the 11:43 11 minutes, 43 seconds PVC VCM spread and consequently on the IITA of basic chemicals. Further the sodash also showed a 9% price erosion on YI basis. 11:55 11 minutes, 55 seconds On a sequential basis the ITA fell from 62.6 from 6 cr to 50 crs a dip of 20% while the speciality chemicals again 12:04 12 minutes, 4 seconds grew by 9.4% 4% the basic chemicals reported a break even number against 17 12:11 12 minutes, 11 seconds cr a bita in the preceding quarter this was this was again due to the price erosion of PVC of 8% followed by soda 6% 12:20 12 minutes, 20 seconds without any com comparable reduction in the input costs including other income for 9 months 12:27 12 minutes, 27 seconds basis stood at 170 crores as against 155 crores a year back and increase by 10%. 12:34 12 minutes, 34 seconds The finance cost stood it flat at around 16 crores uh uh for the quarter totaling to 46.8 crores for 9 months which is a 12:43 12 minutes, 43 seconds reduction of 9% YI depreciation remaining more or less flat with slight increase the P the PBT 12:51 12 minutes, 51 seconds reported by the company for Q3 FI26 is 7 and a half crores totaling the 9 months number to 46.2 2 crores. 13:01 13 minutes, 1 second This is a increase of 61% over the previous year's 9month PBD of 28 crores. 13:09 13 minutes, 9 seconds On the balance sheet side, the company is is steadily deleveraging itself by making its scheduled repayment of long-term borrowings and is expected to 13:18 13 minutes, 18 seconds close the year at a 225 cr of long-term legacy loans. 13:25 13 minutes, 25 seconds The company maintains a healthy cash and cash equivalent of 220 crores against which it is running a working capital 13:32 13 minutes, 32 seconds borrowing facility to tide over the undergoing commodity down cycle. With this uh uh we would request the floor to be open for Q&A. Thank you. 13:46 13 minutes, 46 seconds Thank you very much. We will now begin with the question and answer session. 13:50 13 minutes, 50 seconds Anyone who wishes to ask a question may press star and one on the touchstone telephone. If you wish to remove 13:58 13 minutes, 58 seconds yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a 14:05 14 minutes, 5 seconds question. Ladies and gentlemen, we will wait for a moment while the question Q assembles. The first question is from 14:12 14 minutes, 12 seconds the line of Pujan Sha from Molecule Ventures. Please go ahead. Hello. Am I audible? 14:20 14 minutes, 20 seconds Yes, please go ahead. 14:22 14 minutes, 22 seconds Yeah. Yeah. Uh hi sir. Uh first of all congratulations uh uh showing a resilient performance in 14:30 14 minutes, 30 seconds this uh very weak demand scenario. So congratulation on all front. So my first 14:37 14 minutes, 37 seconds question you to uh in the C in the PVC side. So do we expect so we have seen a 9 rupees hike in January and February. 14:48 14 minutes, 48 seconds So as uh I just wanted to know that uh are we at right now we are at expecting 14:56 14 minutes, 56 seconds a break even in this specific quarter and if the similar crisis pertains do we expect the similar uh for profitable uh 15:06 15 minutes, 6 seconds uh segment for PVC next year uh because the shift is the key shift happening in the industry. So just wanted to know your view. 15:16 15 minutes, 16 seconds So I think uh uh there has been an increase post uh I mean from 1st of January onwards multiple price uh uh upward revisions have happened for PBC. 15:26 15 minutes, 26 seconds This obviously uh would enable us to uh reach a break even if not a bit better 15:33 15 minutes, 33 seconds number for the quarter. Having said that uh see at a static level where you have a price static and you have BCM coming 15:41 15 minutes, 41 seconds at a particular price the margins are fixed. we will be getting a break even or a better than break even this quarter 15:48 15 minutes, 48 seconds because of the VCMPVC lag which will play uh in a positive way for this quarter. 15:55 15 minutes, 55 seconds Maybe we have to see uh as we get into uh quarter one of next year how things shape up because it's been very volatile 16:02 16 minutes, 2 seconds over the many quarters now in either side. 16:07 16 minutes, 7 seconds Right sir? So we do expect uh quite a surge in price of uh EDC VCM as it is 16:14 16 minutes, 14 seconds mostly moved in a tandem. So we do expect a kind of move in EDC right? Yes. Yes. 16:22 16 minutes, 22 seconds Okay. Got it. And sir uh with the increase in the price of the PVC uh are we seeing any uh increase in the price 16:31 16 minutes, 31 seconds of CPVC in this quarter which ultimately help to benefit in our overall realization? 16:37 16 minutes, 37 seconds So in CPVC again like you know in VC and PBC we have a price lag. In CPVC uh again there will PBC CPVC price lag. We 16:47 16 minutes, 47 seconds expect the prices have not yet increased for CPVC but we expect the last month or that we would be able to sell our 16:53 16 minutes, 53 seconds produce at a higher price which is why so we do so we do expect or there is a increase in realization right now in the industry. 17:04 17 minutes, 4 seconds Yeah, I mean we can expect that. We're keeping our fingers crossed. 17:08 17 minutes, 8 seconds Okay. So that effect would be expected in Feb and March, right? Feb would be a bit too early maybe. 17:14 17 minutes, 14 seconds Yeah. Middle of Feb and March. Yeah. 40 45 days. 17:18 17 minutes, 18 seconds And sir, I just wanted to understand and the synthetic hotel division. So, so how we have been planning to get with the 17:26 17 minutes, 26 seconds Japanese agreement. So how been going right now? uh we have been full-fledged placed very well placed in terms of 17:32 17 minutes, 32 seconds supplies or uh still under discussion about SR no uh I will tell you quarter four uh we 17:40 17 minutes, 40 seconds will have uh dispatches more than our production and uh we will definitely see a reduction in our inventory and as we 17:47 17 minutes, 47 seconds talk now we are also in a very advanced stage of concluding our contracts with our traditional customers for next year. 17:54 17 minutes, 54 seconds So I think overall we are placed in a I would say in a terrible position as far as this product is concerned. 18:02 18 minutes, 2 seconds Uh right got it. Uh coming to the bookkeeping question just want to understand as we stated out that uh uh 18:10 18 minutes, 10 seconds considering the FI end of FI26 we will conclude the debt with 230 K. So I just wanted to understand what is the repayment schedule for FI27. 18:20 18 minutes, 20 seconds Uh so by end of FY uh 27 we would be around uh 80 crores on the legacy loan which basically is not a legacy loan. 18:31 18 minutes, 31 seconds It's a loan which has been taken you know in the last uh couple of one or two years which is basically uh to fund our CPVC uh project. 18:42 18 minutes, 42 seconds So legally gets all over by FI27. 18:46 18 minutes, 46 seconds So as we speak do considering the right now we are not considering the JPEG scenario. So do we expect that we would 18:55 18 minutes, 55 seconds be net debt negative by 150 K because ultimately we have a cash of 220. 19:02 19 minutes, 2 seconds Yeah you can say that that's assuming that we don't do any uh growth and any borrowings uh to support the growth. 19:09 19 minutes, 9 seconds Theoretically that number is correct. 19:12 19 minutes, 12 seconds Got it sir. So what do we expect interest cost saving for FI27 for a full year? 19:20 19 minutes, 20 seconds So I think uh on a steady state basis it should go I mean not an exact number we can say but on a steady state basis we 19:27 19 minutes, 27 seconds we should be a number of around 45 cr interest 45 19:34 19 minutes, 34 seconds okay 45 and in next year because ultimately we clear all our dues so we might be having a 25 cr interest yearly 19:43 19 minutes, 43 seconds only reason because we have tied up with working capital right that would that should be right you're Uh, got it sir. Thank you. 19:51 19 minutes, 51 seconds Congratulations. Uh, I will just join back in the quiz. Thank you so much. Thank you. 20:00 20 minutes Thank you. Participants may press star and one to ask a question. The next question is from the line of Ashish from Leo Capital. Please go ahead. 20:15 20 minutes, 15 seconds Sir, you may go ahead. 20:19 20 minutes, 19 seconds Yeah. Uh so uh I wanted to know how does the management view the CPVC capacity addition by the peers and how does this 20:28 20 minutes, 28 seconds impact the market dynamics? Has there been any impact on the price or utilization as yet and how do you expect it this to play out over the years? 20:39 20 minutes, 39 seconds Oh see as as far as we are concerned we are at full capacity utilization and uh more availability will replace imports 20:48 20 minutes, 48 seconds coming and it will also propel more demand. So I don't think uh there will be any situation of an over capacity. there 20:57 20 minutes, 57 seconds could be a temporary lag of uh the supply and the demand but I would say in the in the long run availability will 21:05 21 minutes, 5 seconds propel more demand and uh already we are working on creating new demands from uh the fire sprinkler and other 21:12 21 minutes, 12 seconds applications. So maybe in the next 2 three years once additional capacity comes there will be enough demand to uh 21:20 21 minutes, 20 seconds take that additional quantity. So we don't foresee any big uh challenge in tracing our volume or for any volume which is going to come uh from our competitors. 21:31 21 minutes, 31 seconds Okay. Okay. Thank you. Thank you. That's all for myself. 21:39 21 minutes, 39 seconds Thank you. A reminder to all participants to press star and one to ask a question. The next question is from the line of Amit Kumar from Determined Investments. Please go ahead. 21:52 21 minutes, 52 seconds Yeah, thank you so much for the opportunity. I hope you can hear me. Yes, you are audible. 21:58 21 minutes, 58 seconds Thank you. Uh just uh one point when you mentioned uh at the beginning in your initial commentary that uh you know the 22:05 22 minutes, 5 seconds dumping from China on the PVC side still you know continues and there is still over capacity in China. Uh and also you're saying that you know there are 22:13 22 minutes, 13 seconds some PVC hikes you know from January you know itself. So I mean just I mean slightly dichotoous. So Hishu how should we sort of read into this? Uh two points 22:22 22 minutes, 22 seconds specifically. One is that you know this entire anti- involution campaign going on in China doesn't have any sort of 22:29 22 minutes, 29 seconds impact uh on the PVC side or the chemical industry in general or I mean something that you're sort of seeing you 22:37 22 minutes, 37 seconds know on the ground if you have any sort of No, I think you did not hear the opening remarks made by Satwik. What we said is 22:45 22 minutes, 45 seconds that that finally China has removed the ex export incentive on the PVC. 22:53 22 minutes, 53 seconds So it's in line with their overall direction of you know uh uh having a cap on the uh dumping or overselling by the 23:03 23 minutes, 3 seconds Chinese producers. So there has been a 13% VA on the Chinese uh exports uh which was given to them as a subsidy 23:10 23 minutes, 10 seconds that has been withdrawn. So with this there will be some restriction and there will be some cost increase on the Chinese exporters which we feel will uh 23:20 23 minutes, 20 seconds help other producers outside China including India to get a better realization because the prices were 23:27 23 minutes, 27 seconds mostly matched based on the prices at which China was selling. 23:33 23 minutes, 33 seconds Okay. Okay. Un understood. I I missed it. So thanks so much for uh you know the the explanation on that. My second 23:40 23 minutes, 40 seconds point was that you know with respect to you know PBC business what is the kind of seasonality uh you know in this uh 23:47 23 minutes, 47 seconds you know business because you know the only uh you know 2Q 3Q you know seasonality is if you really see the 23:56 23 minutes, 56 seconds seasonality the uh the PVC demand is usually it's at a low end during the 24:02 24 minutes, 2 seconds monsoon because uh for us even today agree agree pipes are a big factor in our demand demand. So during monsoon the 24:11 24 minutes, 11 seconds demand is usually on the lower side as far as the sale of the PVC pipes are concerned. Having said that because of 24:19 24 minutes, 19 seconds the prices getting reduced on a uh I would say on a continuous basis there was been a significant restocking of 24:27 24 minutes, 27 seconds inventories at all levels which was happening the last 3 four months right from the consumer level to the pipe 24:36 24 minutes, 36 seconds dealers level. So now that there is a clarity on the price uh directionally there is a improvement in the prices and 24:45 24 minutes, 45 seconds prices are moving up as we as we are talking now right from 1st January till date we have seen over 10,000 rupees increase in the price. So now there is a 24:54 24 minutes, 54 seconds positive momentum with regard to restocking. So we expect uh the demand to be good uh because end of the day 25:03 25 minutes, 3 seconds there has to be stocking of the product at all levels then only you can have a proper supply. 25:08 25 minutes, 8 seconds So I think we have started the year on a good note and uh if the pricing remains 25:16 25 minutes, 16 seconds uh in the same direction we should have a reasonably good uh uh time to come. 25:22 25 minutes, 22 seconds That's good to hear. Thank you. Thank you so much for this. Thank you. 25:28 25 minutes, 28 seconds Thank you. The next question is from the line of Helisha, an investor. Please go ahead. 25:38 25 minutes, 38 seconds Hello. Yes, please. Uh, am I audible? Yes, go ahead. 25:46 25 minutes, 46 seconds Uh, thank you for the opportunity and congratulations for your number. So my question is uh what is your target 25:53 25 minutes, 53 seconds revenue and ITA contribution from speciality over the next 2 three years? 26:00 26 minutes I think uh when we started the journey into specialtity chemical we told our speciality profit should be contributing around 50 60% of the total bottom line. 26:10 26 minutes, 10 seconds We have never guided on a specialtity topline to the total topline of the company because it's very difficult uh 26:17 26 minutes, 17 seconds you know uh to estimate that the idea of getting into speciality for DCW was to bring stability to the bottom line and 26:26 26 minutes, 26 seconds if you seen the numbers this time the quarter IATA is 50 crores and all of it has come from speciality. 26:32 26 minutes, 32 seconds Having said all of this uh putting a number on percentage of total IITA to uh uh you know uh to specialty ITA becomes 26:41 26 minutes, 41 seconds bit difficult because like now this quarter while PBC will show a good amount of profit at the end of the day 26:50 26 minutes, 50 seconds DCW has roughly one lakh tons of capacity for all the uh uh the basic 26:56 26 minutes, 56 seconds chemicals right the soda ash the PVC and the costic and our specialtity volumes 27:03 27 minutes, 3 seconds are still lower because of the nichess and its demand. So to put a number as a percentage will be difficult but uh we 27:12 27 minutes, 12 seconds are we are doing capacity expansions and our focus is more on the uh specialtity or value added uh segment last leg of 27:21 27 minutes, 21 seconds investment as uh Mr. Sati Jan also told of last 10 NKT is underway. The volume the benefits of that would come from you 27:30 27 minutes, 30 seconds know mostly next quarter uh that is for next financial year. 27:35 27 minutes, 35 seconds So we will be on the growth trajectory so far as uh you know speciality is concerned that much we can say but to put a percentage to the total would be difficult. 27:46 27 minutes, 46 seconds Um okay so I have another which says that beyond uh CP uh VC phase 3 what is 27:55 27 minutes, 55 seconds the capeex pipeline for FI27 and FI28 and will the capeex remain focused only 28:02 28 minutes, 2 seconds on specialty chemicals um I think it'll be a bit premature to talk on that uh as I've mentioned we 28:11 28 minutes, 11 seconds have we are in discussion of various ideas for growth uh and at the opportune time we would communicate it. There is 28:18 28 minutes, 18 seconds definitely growth planned and growth planned in value added chemicals. So once we are ready with those uh projects and approved by the board, we will communicate it to the market. 28:31 28 minutes, 31 seconds Uh okay. And can I ask another question? Please go ahead. 28:37 28 minutes, 37 seconds Yes. Uh we uh port contributes to 22%. So can you 28:45 28 minutes, 45 seconds uh can you explain how is the demand in US and Europe and any impact global? 28:52 28 minutes, 52 seconds Could you repeat the question please? Uh that exports contribute uh to 22% 29:00 29 minutes uh explain how is the demand exactly is in Europe and is any impact from the global slowdown. 29:10 29 minutes, 10 seconds So I think uh you know uh so far as that if you're talking of a tariff and its effect on our supplies uh our US 29:18 29 minutes, 18 seconds supplies of SiOP was never impacted by the tariff because it was under exclusion. Now when the tariff has come 29:25 29 minutes, 25 seconds down or has been proposed to come down uh it it is not going to impact uh uh you know the prices of the product uh in 29:33 29 minutes, 33 seconds the end market which is US. uh so we don't we don't see uh much change uh in terms of the demand of the product going 29:41 29 minutes, 41 seconds into US which is SOP uh so so that's the way we see obviously we uh we have to see how the Europe 29:51 29 minutes, 51 seconds plays out because it is not only about our exports it's also about import of 29:58 29 minutes, 58 seconds products coming into the country but we think that if uh Europe is uh a zero 30:05 30 minutes, 5 seconds tariff. This may benefit us more than impacting us because we don't sell anything to the US. 30:14 30 minutes, 14 seconds Okay. Thank you. Thank you so much. Thank you. 30:21 30 minutes, 21 seconds Thank you. Ladies and gentlemen, may press star and one to ask a question. 30:26 30 minutes, 26 seconds The next question is from the line of Aan Khan, an individual investor. Please go ahead. 30:38 30 minutes, 38 seconds Sorry to interrupt you, sir. Your voice is breaking. 30:42 30 minutes, 42 seconds Can you please speak to the handset? Better now. Yeah, it's better please. 30:50 30 minutes, 50 seconds Yeah. Yeah. Go ahead. 30:51 30 minutes, 51 seconds Thank you. Thank you for this opportunity. Uh I just want to ask you how are the ramen cost changes really 30:59 30 minutes, 59 seconds passed on to the customers and uh what is the general uh usual timeline for that? 31:05 31 minutes, 5 seconds Uh would you would you please uh come back again with the question your voice is breaking? 31:10 31 minutes, 10 seconds Yeah. Uh I'll just uh go slower this time. Uh how are raw materials and cost changes really passed on to the customers and what is the usual time? 31:22 31 minutes, 22 seconds timeline if you need to say so are you if you're talking about our raw material so uh you need to understand uh DCW is basically an 31:31 31 minutes, 31 seconds upstream B2B company our impact of profitability is more driven from the topline price changes rather than the 31:41 31 minutes, 41 seconds you know our raw materials because most of our raw key starting material of our products are are natural resources or 31:48 31 minutes, 48 seconds mind resources so we do not have consu consumer at decrease or increase in price with the with the consumer at 31:56 31 minutes, 56 seconds front end prices or our sale prices barring an exception of VCM which obviously moves in with a time lag of 32:04 32 minutes, 4 seconds couple of months uh following PBC. 32:10 32 minutes, 10 seconds Okay. Uh uh fair enough. Uh I have another questions to ask. May I? Yes please. 32:18 32 minutes, 18 seconds Yeah. Uh so another question is on the line. uh like is there any clarity or guidance on the implementation of ADD or 32:26 32 minutes, 26 seconds some measures to you know uh address excess dumping from the company like any guidance on that? 32:33 32 minutes, 33 seconds No, as you may be aware the add petition for both PBC and soda ash has not been approved by the finance ministry. So as 32:42 32 minutes, 42 seconds of now we have no petitions in in in the pipeline. as and when there is any possibility we will explore. 32:52 32 minutes, 52 seconds Uh all right no worries. Okay. Thank you for the opportunity. Thank you. Yeah. 33:01 33 minutes, 1 second Thank you. A reminder to all participants to press star and one to ask a question. The next question is 33:08 33 minutes, 8 seconds from the line of Jilm Mahhata, an individual investor. Please go ahead. 33:15 33 minutes, 15 seconds Hi sir. Good evening. Uh thanks for the opportunity. 33:19 33 minutes, 19 seconds Uh so so my first question is uh are there any plans to increase the renewable power substitution uh beyond 25% to further insulate the company from volatile coal or grid prices. 33:34 33 minutes, 34 seconds uh we are exploring because there has been a change in the renewable policy of Tamilad government which is not very 33:40 33 minutes, 40 seconds conducive uh to add any renewable capacity at this juncture and there are lot of uh court cases which have been 33:48 33 minutes, 48 seconds filed challenging the policies. So we are waiting for uh clarity on the policy of the government. Based on that we will 33:57 33 minutes, 57 seconds plan our next leg of renewable expansion. As of now based on the current uh policy that has been announced uh it's not economically 34:05 34 minutes, 5 seconds viable without a battery and the battery prices are still uh not economical. So we are exploring we are waiting for a 34:13 34 minutes, 13 seconds proper policy guidelines to plan our next leg of renewable expansion. 34:20 34 minutes, 20 seconds Okay sir. Okay sir understood. And my uh second question would be so like how do you assess the remaining headroom for capacity expansion in the CPVC and SIOP? 34:31 34 minutes, 31 seconds Come again. Come again. Uh how do you assess the remaining headroom for the capacity expansion in CPVC and SOP? 34:41 34 minutes, 41 seconds So uh the plant has enough uh uh you know enough enough area for doing and 34:48 34 minutes, 48 seconds the utilities more or less are in are in place. Uh so it's only a matter of uh we 34:55 34 minutes, 55 seconds deciding uh on which keepix to pursue as Mr. Saki Jan has told we will at 35:02 35 minutes, 2 seconds opportune time let you know uh to which projects or value added products we are getting in. It's bit premature for us to discuss now please. 35:12 35 minutes, 12 seconds Okay sir. Okay. Understood. Thank you. Thank you for the opportunity. Thank you. 35:20 35 minutes, 20 seconds Thank you. Participants may press star and one to ask a question. 35:28 35 minutes, 28 seconds Ladies and gentlemen, you all may press star and one to ask a question. 35:43 35 minutes, 43 seconds A reminder to all participants to press star and one to ask a question. 36:01 36 minutes, 1 second Ladies and gentlemen, you all may press star and one to ask a question. 36:10 36 minutes, 10 seconds The next question is from the line of Pujan Sha Molecule Ventures. Please go ahead. 36:18 36 minutes, 18 seconds Hello. Uh thanks for the opportunity sir. So my first uh question pertains to the uh power agreement and we are 36:25 36 minutes, 25 seconds drawing from the renewables. So uh what is the cost saving uh we have uh benefited for this quarter and expecting 36:34 36 minutes, 34 seconds for a year that cost savings for a yearly basis 36:41 36 minutes, 41 seconds would be roughly around uh 25 to 25 26 crores. Having said that it will 36:48 36 minutes, 48 seconds not be even in all the quarters because uh uh unlike the west in the south we have monsoon uh between October and 36:56 36 minutes, 56 seconds December. So those months the solar generation may not be great. So we will have a 37:04 37 minutes, 4 seconds uneven cost saving on a quarteronquarter basis. So hopefully the next quarter uh quarter four we will see the more 37:11 37 minutes, 11 seconds benefits because uh it's a pretty sunny season and we expect a maximum generation. So the PPA is for the year 37:19 37 minutes, 19 seconds as a whole. It is not on a monthly basis or on a quarterly basis. 37:24 37 minutes, 24 seconds right sir and uh just wanted to know uh so I understand the PVC prices might 37:32 37 minutes, 32 seconds might be so dynamic and uh uh it might not be fair to assume anything but considering the current scenario of 37:40 37 minutes, 40 seconds European region and they are suffering from energy crisis right now with expectation of uh get China reviving in 37:50 37 minutes, 50 seconds their demand and ultimately capacity shutdown from carbide capacities uh due to their own norms and expecting this 37:58 37 minutes, 58 seconds rebate. So all the in all case do we expect that the price has been bottom out and that could be range from 800 to 38:05 38 minutes, 5 seconds 850 at least for a year. I wish uh what you say come true because it is too you 38:12 38 minutes, 12 seconds know it is too uh uh difficult to speculate the prices because no no one thought the prices 38:21 38 minutes, 21 seconds will go to 600 levels because even during the covid time the lowest price recorded was 680. So considering that it 38:28 38 minutes, 28 seconds is uh it is uh it is too premature to put any number but having said that we 38:35 38 minutes, 35 seconds have bottomed out on the pricing and I personally feel prices will be range bound maybe between 750 800 I don't 38:42 38 minutes, 42 seconds think uh we can speculate more than that because you should also see from the overall perspective the crude prices are 38:50 38 minutes, 50 seconds also not uh high they're lowering at $60 so are the NAFTA and other prices. So I 38:57 38 minutes, 57 seconds think uh uh the prices may not go back to the $600 levels hopefully and uh that will be the big takeaway that uh that we 39:06 39 minutes, 6 seconds should consider that we have seen the uh bottom of the BBC prices. 39:12 39 minutes, 12 seconds Got it sir. Uh thank you so much. I will join back. Thank you. 39:22 39 minutes, 22 seconds Thank you ladies and gentlemen. We take that as the last question of the day. 39:28 39 minutes, 28 seconds And now I would like to hand the conference over to Miss Muktas Shandan for closing comments. 39:38 39 minutes, 38 seconds Thank you to the management and participants for joining the Q3 FY26 conference call of DCW Limited. I would 39:47 39 minutes, 47 seconds now hand over the call to management for the closing remarks. 39:53 39 minutes, 53 seconds Thank you everyone for taking out the time to join us today and hearing us out. I hope we've been able to answer your questions. Um if there is anything 40:02 40 minutes, 2 seconds further request you to reach out to our uh investor relations at Valerim and look forward to talking to you again next quarter. Thank you. 40:15 40 minutes, 15 seconds On behalf of Ahan Capital Markets Limited that concludes this conference. 40:20 40 minutes, 20 seconds Thank you for joining us. And you may now disconnect your line.