Deepakfrtlsrsandptrchmcl Ltd — Q3 FY26

Deepak Frtlsrs and Ptrchmcls Corp Ltd Q3 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=xstW8J5Cg1Y Published: 3 months ago

0:02 2 seconds Ladies and gentlemen, good day and welcome to the Deep Fertilizers Q3 FI26 earnings call. As a reminder, all participant lines will be in the listen 0:10 10 seconds only mode and there'll be an opportunity for you to ask questions after the presentation concludes. 0:15 15 seconds Should you need assistance during the conference call, please signal an operator by pressing star and then zero on your touchstone phone. I now hand the conference over to Mr. Akash Maji. Thank you and over to you. 0:27 27 seconds Thank you Mike. Uh good evening everyone. Uh thank you for joining us on the deeper fertilizers and petrochemicals Q3 FA26 earnings 0:35 35 seconds conference call from the company. We have with us Mr. Shalis Mata the chairman managing director Mr. Subbash Anan president and CFO Mr. Tarun Sina uh 0:44 44 seconds president technical ammonium nitrate and Mr. Subaras Jane executive vice president corporate finance. We would like to begin the call with with opening 0:52 52 seconds remarks from the management following which we will have the forum open for an interactive question and answer session. I would now now like to invite Mr. 1:00 1 minute Shalesh Mata to make the initial remarks. Thank you and over to you sir. Thank you. My voice is clear right? 1:07 1 minute, 7 seconds Yes sir you are clear. 1:09 1 minute, 9 seconds Okay so very good afternoon to everyone and thank you once again for joining us for the Q3 FI26 earnings call of DFPCL. 1:20 1 minute, 20 seconds Our earnings presentation and press releases have been shared with the stock exchange and are also available on our website and I do hope you have had a chance to look at them. 1:31 1 minute, 31 seconds So as you would have seen Q3 was a challenging quarter 1:37 1 minute, 37 seconds and it got shaped by extended rains, geopolitical uncertaintities 1:46 1 minute, 46 seconds and certain degree of price volatility. 1:51 1 minute, 51 seconds Uh however, what differentiates DFPCL today is our ability to navigate some of these 1:59 1 minute, 59 seconds volatile cycles with a greater degree of resilience. 2:05 2 minutes, 5 seconds Over the past few years, uh we have increasingly transformed our portfolio, 2:14 2 minutes, 14 seconds uh further strengthened our operating model, uh substantially enhance our customer engagement approach and all of that has supported building this resilience. 2:28 2 minutes, 28 seconds Now let me begin with a brief overview of our financial performance for the year-to- date FI26 revenues grew by 12%. 2:40 2 minutes, 40 seconds Driven by a healthy momentum in our crop nutrition and bulk businesses and adjusted for the one-time tax credit 2:49 2 minutes, 49 seconds in the previous year did decline 4%. 2:54 2 minutes, 54 seconds Our net debt to Abita ratio today stands at 2.27x fully aligned with our ongoing capeex 3:03 3 minutes, 3 seconds cycle which is in its last leg of execution and it is going to be laying the foundation for our future growth and ens competitiveness. 3:16 3 minutes, 16 seconds Having said that at the undercurrent level there were two or three aspects that impacted our results in a predominant manner. 3:26 3 minutes, 26 seconds The first one being unseasonal and heavy rains. Now what it did was it slowed 3:33 3 minutes, 33 seconds down the mining activity in the country and that impacted by 3:42 3 minutes, 42 seconds uh slowing down the requirement of technical ammonium nitrate one of our key products 3:48 3 minutes, 48 seconds and uh for us and the industry it also uh brought in a certain kind of a 3:55 3 minutes, 55 seconds constraint in terms of nitric acid usage because nitric acid goes to feed into ammonium nitrate. 4:02 4 minutes, 2 seconds So there was a dual impact emerging out of extended monsoon season. 4:09 4 minutes, 9 seconds Softness in the technical ammonium nitrate space and softness in the nitric acid space. 4:18 4 minutes, 18 seconds Now added to this we also saw an increase in the ammonia prices globally 4:26 4 minutes, 26 seconds and uh that you know brought in the raw material price increase for both technical ammonium nitrate and nitric 4:34 4 minutes, 34 seconds acid. So it was a bit of a double whammy. 4:38 4 minutes, 38 seconds Now if this were not enough normally the rains would have been good for the fertilizer sector for the crop nutrition business 4:46 4 minutes, 46 seconds but the timing and the continuence of the heavy monsoon impacted the karif crop 4:54 4 minutes, 54 seconds and you know a lot of sufference at the farmer level and in our Q3 uh actually the farmers 5:01 5 minutes, 1 second were cleaning away the fields from the karif crop which because of heavy rains 5:08 5 minutes, 8 seconds uh you know got impacted and they were getting ready for the Rabi plantation. 5:15 5 minutes, 15 seconds So this major ripple effect which is like a black swan event impacted all the three of our businesses. 5:25 5 minutes, 25 seconds Having said that, uh now as we see things, it is broadly behind us 5:33 5 minutes, 33 seconds and with uh now the normal weather emerging, mining is expected to pick up to its normal levels. 5:42 5 minutes, 42 seconds Uh and the resultant, you know, demand for technical ammonium nitrate and also the resultant demand for nitric acid should pick up. 5:51 5 minutes, 51 seconds With the good water table, we are expecting the rubby season to also be a very good supportive season for the crop nutrition and fertilizer business. 6:04 6 minutes, 4 seconds Now our other product IPA coincidentally also during this period got impacted due 6:11 6 minutes, 11 seconds to much lower propane prices globally but not uh you know available in India at those lower prices. 6:21 6 minutes, 21 seconds And this again impacted in terms of softening of the IPA prices. 6:29 6 minutes, 29 seconds However, as per the ISIS Asia-Pacific pricing insight analysis report 6:36 6 minutes, 36 seconds dated uh 2728 Jan uh there again we are seeing a slow improvement in the IPA prices that is being seen. 6:47 6 minutes, 47 seconds So in summary if I look at the operations I would somewhere see three things that we continue to firmly believe in and we see validation. 7:00 7 minutes Number one is that the basket of products that is uh from gas to ammonia to nitric acid to the 7:08 7 minutes, 8 seconds downstream the basket of products is giving us a good risk mitigator to be able to bring the resilience. 7:19 7 minutes, 19 seconds The second thing that is getting validated quarter after quarter which is that the strong alignment with the India 7:28 7 minutes, 28 seconds growth story that all of our three businesses have that has always supported us in terms of ensuring that there is no demand destruction. 7:40 7 minutes, 40 seconds And the third is that our continued drive from commodity to specialtity 7:46 7 minutes, 46 seconds or being more and more segment focused and wherever possible combining products 7:53 7 minutes, 53 seconds plus services. This transformative model is certainly appearing to be in the right direction. 8:03 8 minutes, 3 seconds On the project front, the project execution is going on in full steam. And again that despite all the challenges we 8:12 8 minutes, 12 seconds are forging ahead with now almost 91% completion of our Gopalpur 8:19 8 minutes, 19 seconds technical ammonited project and around 79% completion of our the age acid project. 8:28 8 minutes, 28 seconds So as I look ahead the next quarter and mainly the year ahead 8:36 8 minutes, 36 seconds we will certainly see I would say at least minimum for half of the year the 8:43 8 minutes, 43 seconds tan gopalpur project and the acid the edge project contributing to the bottom line. So this 8:51 8 minutes, 51 seconds will be a you major addition that we are foreseeing. 8:56 8 minutes, 56 seconds Uh the year is also going to see a partial advantage emerging out of our 15-year long-term LNG contract 9:05 9 minutes, 5 seconds with the U Norwegian giant which will be somewhere supporting the uh good uh I would say gas pricing. 9:17 9 minutes, 17 seconds So with uh that note let me hand you over now to our CFO Mr. Subbash Anunan 9:24 9 minutes, 24 seconds who will take you through the detailed financial performance of the quarter and be available for any clarification that you may want to seek. Subash. 9:34 9 minutes, 34 seconds Yeah. Thank you. Thank you. Uh thank you Mr. Ma and good afternoon everyone. 9:40 9 minutes, 40 seconds Thank you for joining us for Deepak Fertilizers and Prochemical Corporations Limited Q3 FI26 earning call. It's 9:49 9 minutes, 49 seconds always a pleasure to update you on our performance and share how we are progressing on our key priorities. 9:58 9 minutes, 58 seconds At DFPCL, our focus continue to be what drives long-term value. Strengthening our specialtity product makes staying 10:07 10 minutes, 7 seconds close to our customers and ensuring agility across the organization. 10:13 10 minutes, 13 seconds Despite the volatility in the external environment, our teams have maintained strong operational discipline and 10:21 10 minutes, 21 seconds prudent financials management keeping us on track for sustainable growth. 10:29 10 minutes, 29 seconds Let me begin with the financial performance. As Mr. Ma stated for Q3 FI26 consolidated operating revenues 10:38 10 minutes, 38 seconds stood at 2,830 cr reflecting a 10% YI 10:44 10 minutes, 44 seconds growth led primarily by CNB business on YTD basis revenue was 8,495 10:53 10 minutes, 53 seconds cr up 12% YI demonstr demonstrating healthy demand 11:00 11 minutes despite extended monsoon geopolitical uncertainty and supply chain disruption. 11:08 11 minutes, 8 seconds Moving to the segment wide performance in mining chemical Q3 volumes were largely flat YI due to extended monsoon and softer coal demand. 11:19 11 minutes, 19 seconds The bright spot was our B2C segment which continued its strong momentum with 11:25 11 minutes, 25 seconds 26% YI growth and on YTD basis total 10 volume grew 11% YI 11:34 11 minutes, 34 seconds in IPA volume declined 26% YI largely due to plant shutdown in quarter 3 and 11:44 11 minutes, 44 seconds weaker sentiments from correctness in acetone prices. YTD volume remains stable. 11:54 11 minutes, 54 seconds In nitric acid, volume was steady with a marginal upstick. Though pricing remain under pressures from excess imports and downstream dumping from abroad. 12:07 12 minutes, 7 seconds YTD volume increased 4% YI basis. 12:12 12 minutes, 12 seconds Turning to our crop nutrition, CNB revenue grew 26% Y in Q3. However, 12:20 12 minutes, 20 seconds delayed Ravi sewing and heavy monsoon impacted the uptake of crop tech and our specialtity product 12:29 12 minutes, 29 seconds with raw material cost inflation affecting margins. Even so, specialtity fertilizer and crop tip contributed 30% 12:37 12 minutes, 37 seconds of CNB revenue up from our previous quarter. an encouraging shift towards a more value centric mix. 12:47 12 minutes, 47 seconds Coming to profitability Q3 beta came in at 353 cr a 27% yi decline 12:57 12 minutes, 57 seconds dri by higher raw material cost inadequate subsidy support in fertilizers a weaker realization in IPA 13:07 13 minutes, 7 seconds and nitric acid tan remained steady and in ammonia higher pricing supported delivery 13:16 13 minutes, 16 seconds though the GST reduction ction on the incentive income impacted the profitability 13:24 13 minutes, 24 seconds on YTD basis IITA stood at,330 cr down 8% YI 13:31 13 minutes, 31 seconds primarily due to softness in IPA and ammonia with CNB and tan helping cushion the 13:40 13 minutes, 40 seconds overall impact adjusting adjusted PAN for Q3 was 141 13:47 13 minutes, 47 seconds down 34% YI after normalizing for one time 40 cr tax credit in Q3 FI25 13:56 13 minutes, 56 seconds YTD PAT was 599 cr down 4% YI shifting to product mix and balance 14:05 14 minutes, 5 seconds sheet we continue to reshape the business towards high value solutionsdriven offering specialtity product contributed 14:13 14 minutes, 13 seconds 33% of CNP revenue and B2C accounted for 60 16% of mining chemical revenue. 14:23 14 minutes, 23 seconds On the investment front, YTD capex is around,495 cr largely directed towards Kopalpur, PAN and the H2 nitric asset project. 14:36 14 minutes, 36 seconds Net debt stands at 4,21 cr with a net debt of 2.2x 2x in line with our planned capex cycle. 14:48 14 minutes, 48 seconds Both key projects are progressing well and expected for commissioning in Q1 FI27. 14:55 14 minutes, 55 seconds They will materally enhance competitiveness and margin resilience once operational. 15:03 15 minutes, 3 seconds Looking ahead, while some near-term volatility may continue, we are beginning to see improvement in few areas. 15:12 15 minutes, 12 seconds In mining chemicals, Q3 softness came from lower coal demand, extended monsoon and higher channel inventory. 15:21 15 minutes, 21 seconds However, the early sign of recovery are already visible in Q4. Our focus remain on strengthening direct sales, expanding 15:30 15 minutes, 30 seconds regional warehousing, scaling exports and deepening our TCO based customer engagement model in our farmer and specialtity chemical. 15:41 15 minutes, 41 seconds IPA sentiment is likely to stay muted in the near term due to weak acetone prices and elevated inventory. 15:51 15 minutes, 51 seconds Nit nitric acid prices will remain stable amid excess imports and new capacity. 16:00 16 minutes We are responding by sharpening our applicationless segmentations and strengthening solution based customer 16:06 16 minutes, 6 seconds engagement which will help to improve the overall nitric acet business 16:13 16 minutes, 13 seconds in our crop nutrition favor favorable reser reservoir levels and healthy farmer sentiment position us well for rai 2026. 16:24 16 minutes, 24 seconds Our farmer activation program continue to deliver strong engagement on the ground. 16:31 16 minutes, 31 seconds With our major strategic projects nearing completions and our portfolio steadily shifting towards high value 16:38 16 minutes, 38 seconds solutions offering, we expect earning visibility and margin stability to strengthen meaningfully in the medium term. 16:49 16 minutes, 49 seconds Thank you once again for your continued support. We now welcome your questions. 16:56 16 minutes, 56 seconds Thank you. We will now begin the question answer session. Anyone who wishes to ask a question may press star and one on the touchstone telephone. If 17:04 17 minutes, 4 seconds you wish to remove yourself from the question key, you may press star and two. Participants are requested to use handsets while asking a question. 17:12 17 minutes, 12 seconds Ladies and gentlemen, we'll wait for a moment while the question Q assembles. 17:23 17 minutes, 23 seconds 1 2 3 4 5 6. 17:24 17 minutes, 24 seconds We have the first question on the line of Nirj Mana from White Pine Investment. Please go ahead. 17:30 17 minutes, 30 seconds Yeah, thank you. Uh I had a few uh two questions. One is on the can you give us some color on the new upcoming tan and 17:39 17 minutes, 39 seconds ammonia projects and uh and any any impact that can have on your uh our India's demand supply equation. 17:49 17 minutes, 49 seconds Uh and secondly, how much can be the savings from the LG long-term contract uh once they start 17:57 17 minutes, 57 seconds uh uh okay just a clarification when you say 10 upcoming projects uh you're 18:04 18 minutes, 4 seconds talking about aropalpur project right not the industry no no no I'm talking of other like chambul and other government companies 18:11 18 minutes, 11 seconds also signed ammonia projects so how will the demand supply equation in India change and what is 18:19 18 minutes, 19 seconds Uh okay. Uh I understand. Uh let me pass on uh this questions to our president uh Sarun Sina. 18:26 18 minutes, 26 seconds Thank you Sash. Uh just to check am I audible? Yeah. 18:31 18 minutes, 31 seconds Okay. Thank you. Uh thanks for your question. This question has been asked in the past also. So we see the 18:38 18 minutes, 38 seconds situation like this from our point of view. uh you know the demand growth in India which is uh driven by mining and 18:46 18 minutes, 46 seconds infrastructure largely for our products for tan products is uh likely to be in the range of uh 6% compounded average 18:54 18 minutes, 54 seconds growth rate over the course of next uh 5 to 6 years at least that we can see that's the first point which means that 19:02 19 minutes, 2 seconds uh you know every 3 years or so 2 to 3 years or so a fresh demand additional demand creation of around 2 and a half lakh ract tons of tan will take place. 19:13 19 minutes, 13 seconds So that's the first point. So the so the demand creation is is quite good. On the other hand uh you know the country 19:20 19 minutes, 20 seconds imports at this point in time close to 4 lakh tons of ammonium nitrate which will 19:27 19 minutes, 27 seconds have to slowly reduce uh with uh the domestic capacities coming in. So if you add these two the demand growth rate and 19:36 19 minutes, 36 seconds the imports which will get substituted you know we are looking at quite a reasonable market getting created to accommodate these capacities in the 19:44 19 minutes, 44 seconds coming year that's on the tan part on the there was also this question on the nitric acid part as well I think 19:52 19 minutes, 52 seconds and take it uh let let me take that uh second uh side on uh ammonia uh side uh 20:00 20 minutes the question basically uh uh or uh you want first nit nitric acid basically there's no new further capacity getting 20:07 20 minutes, 7 seconds added are the H2 plant is expected to come in uh sometime in towards end of quarter 1 and uh uh the way we have 20:16 20 minutes, 16 seconds planned uh we have uh almost 70% of the capacity is already tied up with long-term CNA capacities tied up and 20:24 20 minutes, 24 seconds seeing the current situation we haven't seen a demand uh shortage for our uh nitric acid business uh whatever 20:32 20 minutes, 32 seconds uh in fact we always remain shortage of DNA for long long time. So we are confident uh uh able to place that uh 20:40 20 minutes, 40 seconds additional capacity which will be available in the marketplace. Coming on ammonia ammonia business uh uh yes some 20:49 20 minutes, 49 seconds uh uh we we have a new econ from uh next year quarter 1. uh that 20:57 20 minutes, 57 seconds will give us a uh re I'll say decent uh uh costsaving in terms of gas prices are 21:04 21 minutes, 4 seconds concerned and will bring the overall uh break even levels significantly down from uh where the ammonia currently or PCL is currently operating. 21:16 21 minutes, 16 seconds uh just to uh give broader sense of number uh if I I call it uh currently with the revised GST reduction uh which 21:25 21 minutes, 25 seconds has happened uh in October towards uh end of towards September end our break 21:32 21 minutes, 32 seconds even a bit is almost around 430 440 at this point of time uh at the current gas 21:38 21 minutes, 38 seconds prices which will come down uh substantially uh in the in the coming quarter once we have an econom contract 21:46 21 minutes, 46 seconds getting in uh and recently the ammonia prices has firmed up. So that has 21:52 21 minutes, 52 seconds supported PCL turnaround uh in tonsoro or PCL was almost at break break even level in last quarter. 22:02 22 minutes, 2 seconds Uh hope that uh you just related only the 430 would fall down to how much on a like to like basis 22:10 22 minutes, 10 seconds uh uh you need to wait for that specific numbers. uh but it's a it's a significant reduction not uh uh can you give a range because it'll be 22:18 22 minutes, 18 seconds easy for us to slightly understand the financials in longer term it's a double digit reduction uh definitely it's not it's it's more than 22:26 22 minutes, 26 seconds d it's in double digit I call it that way in percent terms could you give something was it bit 10% 22:35 22 minutes, 35 seconds that's why I'm saying it it I'm saying the percentage reduction is in double digit not in okay I thought I thought double digit in dollars Okay. Thank you very much. 22:43 22 minutes, 43 seconds No. Presenters reduction agend Thank you. 22:50 22 minutes, 50 seconds Thank you. We have the next question from the line of Shabbam Tasman from Asid Kotija family office. Please go ahead. 22:58 22 minutes, 58 seconds Hello sir. Am I audible? Uh yes. 23:02 23 minutes, 2 seconds Uh so sir I wanted to understand the reason behind price volatility and what is your outlook for the IPA business for a whole year. 23:13 23 minutes, 13 seconds uh okay uh the IPA business price volatility is uh I call it severe at this point of time. If we just talk 23:21 23 minutes, 21 seconds about number the price uh correction or rather the price reduction in this year is almost around 23:30 23 minutes, 30 seconds 20 uh 27 roughly around 22 23%. Uh that's the kind of a price correction which IPA business has seen this year. 23:42 23 minutes, 42 seconds uh and various reason I call it uh uh primly driven by uh softer prices of 23:49 23 minutes, 49 seconds acetone in the market and also a lot of imports which is coming. Uh we haven't seen a uh pressure on our demand side. 23:58 23 minutes, 58 seconds Uh in fact the volume which we were selling we are able to hold on to volume. In fact we have sold more volume compared to last year. But pricing 24:07 24 minutes, 7 seconds pressure which is there in IP business uh uh expected to continue for some more time although the slower recovery has 24:17 24 minutes, 17 seconds started I call it but uh uh we don't see immediate uh quick turnaround of IB prices happening in a quarter or two it 24:24 24 minutes, 24 seconds it will take some time to come back to a normal okay and sir I want to understand the 24:34 24 minutes, 34 seconds tan business so how much revenue comes from around top five or top three players in the tan business. How much concentration risk are we having that segment? 24:42 24 minutes, 42 seconds We uh in fact uh sorry we don't share customer wise profiling of tan business. 24:48 24 minutes, 48 seconds Uh uh so uh that that's very very clear but yes uh if if you talk about our market share is almost around 40% uh 24:56 24 minutes, 56 seconds what we hold in this business and any customer you talk about in tan business we are supplying to them. So uh they 25:04 25 minutes, 4 seconds know uh uh almost every customer is covered by us uh I can call it that way. 25:10 25 minutes, 10 seconds Okay. So no five depending on explosive business market share their buying also broadly will be 25:18 25 minutes, 18 seconds in a similar line from us also I call it that way. Okay. Thank you. Yeah. 25:26 25 minutes, 26 seconds Thank you. 25:28 25 minutes, 28 seconds Participants who wish to ask a question may press star and one on your touchstone telephone. 25:33 25 minutes, 33 seconds We have the next question from the line of Pratush Kamill from Ingred Equities. Please go ahead. Uh hello sir, I'm audible. 25:42 25 minutes, 42 seconds Yes, we can hear you. 25:44 25 minutes, 44 seconds Okay. So, uh thanks for letting me ask the question. So, I have concern regarding all the three segments you know which deeper fertilizer is working 25:52 25 minutes, 52 seconds into. Uh first regarding the tan segment. So there are few things which I'm seeing in the back end when I'm analyzing the data and when I'm looking 26:00 26 minutes at the industry. First thing is that the China uh increase in the export of China as far as ammonium nitrate is concerned. 26:07 26 minutes, 7 seconds So in January the share of ammonium nitrate exports from China used to be 7%, it has increased about 30%. between 26:15 26 minutes, 15 seconds January and December and it is playing its role uh perfectly well in the in terms of decreasing the ammonium nitrated spreads also even after you 26:24 26 minutes, 24 seconds know ammonia prices increasing to a level to a level of you know $450 to $500 from $350 the the ammonium nitrate 26:32 26 minutes, 32 seconds prices has not increased so it means that you know there has there is a bit of supply glut which I'm seeing in ammonium nitrate export market also if I 26:42 26 minutes, 42 seconds talk about the domestic market so domestic market demand uh definitely is not increasing in fact it has shrked by 26:49 26 minutes, 49 seconds 1% YTD if you compare in terms of YUI basis in Q3 it has decreased by 5%. So 26:56 26 minutes, 56 seconds in place of increasing the demand the coal demand is getting decreased and if you talk about the supply of ammon 27:04 27 minutes, 4 seconds domestic supply it is getting increased by about 500 KTP in FY27 by Chumble and GNFC. So when you know current demand 27:11 27 minutes, 11 seconds would be about 1 million ton if 500 and total demand would be 1.5 million ton total supply domestic would be 1 million turn and if you know 500 KTP additional 27:20 27 minutes, 20 seconds supply comes off then definitely there would be no place for anyone to sell the ammonium nitrate in the you know India market so how do you and definitely 27:29 27 minutes, 29 seconds there's export cap also of ammonium nitrate and if there would be supply glut in the global market it becomes difficult for us to supply to other places also so how do you come across 27:37 27 minutes, 37 seconds that problem and you know what's the response response which you have for this problem which I am currently seeing in the back end. 27:45 27 minutes, 45 seconds Okay. Uh I'll I'll just start with and then I pass on to Tarun. Uh now uh Pratush you need to see uh industry not 27:54 27 minutes, 54 seconds with one quarter lens. You need to see slightly longer uh horizon and see how India energy and consumption or a coal 28:02 28 minutes, 2 seconds consumption going to go. Uh yes you are right coal consumption or coal production has come down in the last quarter and the region was uh as 28:11 28 minutes, 11 seconds articulated earlier also the extended monsoon which normally get over in September got extended for longer time 28:20 28 minutes, 20 seconds and that has impacted cur production and so the time demand if we look from a I'll say from a one quarter perspective 28:27 28 minutes, 27 seconds most of your comment may be right but are are we looking one quarter business no this is a long-term business and when when India look at his energy 28:36 28 minutes, 36 seconds requirement long-term energy requirement demand projection there no reasons to believe the India coal production is 28:44 28 minutes, 44 seconds going to come down uh the industry all the projection all the long-term projection all the right thesis if you 28:51 28 minutes, 51 seconds pick it up it's showing the demand for coal is going to go up around 4 to 5%. 28:59 28 minutes, 59 seconds If that is a scenario uh the time demand will grow. So that's that's definitely one thing. 29:07 29 minutes, 7 seconds Second thing if if I talk about yes there is a additional capacity getting added. We are coming up with our uh plant in Gopalur. So the uh uh the 29:16 29 minutes, 16 seconds competitor also is coming in that segment. But adding capacity is one thing. Uh is the production or the 29:23 29 minutes, 23 seconds license capacity or the capacity which is getting added will will that be available for sale in the very first year? No, it's not going to happen. 29:32 29 minutes, 32 seconds There is a ramp up phase for everybody. 29:34 29 minutes, 34 seconds So if you see that that perspective the demand with four to 5% growth and the available capacity, India may still be 29:43 29 minutes, 43 seconds short supply or may just be balanced. So if in in those scenario we don't see a challenge 29:51 29 minutes, 51 seconds where we see we'll we will not be able to place this material and then there are inherent advantage. Uh Karun you 29:59 29 minutes, 59 seconds want to touch upon I think you've covered everything. If there's any question and answer of yours I sure I I'll just I I'll just give one 30:06 30 minutes, 6 seconds more the the place where or the the location where our our plant is coming. 30:12 30 minutes, 12 seconds We are coming very near or at the heart of uh mining activity. So we are pretty confident uh we will be able to place 30:19 30 minutes, 19 seconds our material much better uh and with the kind of a reach market reach and experience in this industry or in this 30:26 30 minutes, 26 seconds place which we have that gives us a confidence uh we have a plan in place and we should be able to ramp it up 30:34 30 minutes, 34 seconds and just on the export kota because that was another one. So uh we have had a very fruitful discussion with uh the concerned ministries just a couple of 30:42 30 minutes, 42 seconds weeks back on this topic and I think there is a fair amount of realization that now India is not short of ammonium 30:51 30 minutes, 51 seconds nitrate uh because of the additional capacities that that are coming in and it it has enough uh product to feed the 30:58 30 minutes, 58 seconds mining industry and the infrastructure industry. Hence there is a very strong case for reviewing this 50,000 ton per 31:06 31 minutes, 6 seconds year of export kota and if things goes as per the plan based on the way the discussions have gone by this quota may also get removed eventually. 31:16 31 minutes, 16 seconds Okay sir. So you know there's a follow-up question regarding the same since definitely since s mentioned that you know definitely there would be no ramp up in the first year itself but if 31:24 31 minutes, 24 seconds you look at the total capacity addition it is on a tune of about 900 KTPa right 500 by chumble and BNFC and 31:31 31 minutes, 31 seconds approximately 386 350 by so even if they you know they run by 50% utilization rate it means that about 450 additional 31:39 31 minutes, 39 seconds KTP would easily cover up the entire India market and when you talk about the global exports definitely there's an opportunity Even if the you know the 31:47 31 minutes, 47 seconds lift is opened up the ceiling is opened up of 50 KTPa and if you're ready to export to the global market it becomes you know very challenging and difficult 31:55 31 minutes, 55 seconds for uh Indian player to sell the ammonium nitrate exports especially in a situation where you know since I mentioned the Chinese export is increasing continuously from the last 32:04 32 minutes, 4 seconds you know five 6 months at least from 7% market share in January it has increasing to about 30% uh in December 32:12 32 minutes, 12 seconds in October December so it means that definitely there would be a supply alert and you would be competing with all the major players be it China, Chinese, 32:21 32 minutes, 21 seconds Russian or Bulgarian. So do you still think that there's an export opportunity of ammonium nitrate in the global market 32:27 32 minutes, 27 seconds after seeing the margin crash in Q3 even if the raw material prices ammonia has increased from 350 to 450 the ammonium 32:36 32 minutes, 36 seconds nitrate prices are have not seen any jump in fact has become stagnant so how do you tackle that 32:43 32 minutes, 43 seconds okay I'll again come back to same if you if you look at industry with one quarter phenomena you'll always have uh 32:52 32 minutes, 52 seconds shortterm view which may not align with the long-term uh the way industry is. 32:58 32 minutes, 58 seconds Second thing uh if if I talk about uh 33:07 33 minutes, 7 seconds uh your GNSC capacity is coming in FI28 not in FI27. 33:14 33 minutes, 14 seconds So uh it's not everything 450 what you are counting is there in FI27 it's not 33:21 33 minutes, 21 seconds going to be available in FI27. Third thing I call it industry is growing uh even four to 5% 33:30 33 minutes, 30 seconds growth means adding 100,000 ton every year in demand. 33:35 33 minutes, 35 seconds By the time GNSC comes in industry move from 1.5 to 1.7 2 years from now 33:43 33 minutes, 43 seconds with that 3 years from now all the capacity what we are talking this point of time will not be good enough to even 33:51 33 minutes, 51 seconds meet India demand after that export yes I'll not say export one need 33:58 33 minutes, 58 seconds to take it with the broad brush no uh from India not every market is servable profitably So one need to know which 34:07 34 minutes, 7 seconds market what is the right place where it's a profitable market and that's what uh uh we are focused on. Uh we are not 34:15 34 minutes, 15 seconds saying we'll we'll uh export nitric uh tan to every place every country every market. No that's not our goal. We are 34:23 34 minutes, 23 seconds looking a focused market and that that's where the export development is going on. 34:29 34 minutes, 29 seconds But sir in your own guidance you have said that you know coal demand would grow grow at a rate of 5%. And if you say that you know the tan demand would 34:36 34 minutes, 36 seconds be increasing from 1500 KTP to 1700 it means that you know we are estimating a demanding change of about 16.6%. Right? 34:43 34 minutes, 43 seconds So how like again so the math isn't matching itself that 5% growth of core would it lead to 16% growth in the tan demand. 34:54 34 minutes, 54 seconds Tarunir let me again try to clarify some of your points. So first is and I'll repeat uh some of the points which I mentioned in the very first question. I 35:03 35 minutes, 3 seconds was I'm not sure whether you were there at that time hence I'm kind of repeating. First is uh today there is 35:10 35 minutes, 10 seconds about four lakh tons of import which is substitutable. That's a readym made demand available in the country for the 35:18 35 minutes, 18 seconds domestic producers. Second, every 2 years to 3 years time period, let's say 3 years, every 3 years, 2 and a half 35:27 35 minutes, 27 seconds lakh tons of additional demand because of the mining and infrastructure growth is likely to take place. So in 2 to 3 35:35 35 minutes, 35 seconds years from now, we are looking at 4 lakh tons of import substituted plus 2 and a half lakh tons of fresh demand created. 6 and a half lakh tons. 35:43 35 minutes, 43 seconds Yeah. 35:43 35 minutes, 43 seconds 2 to 3 years from now. GNFC plant comes after that by the time GNFC plant comes as Sash was saying the demand will continue to grow. 35:54 35 minutes, 54 seconds So therefore uh you know those those capacities will start to get utilized. 35:59 35 minutes, 59 seconds At the same time the exports of tan which currently we have seen uh should see a little bit of uplift in volume 36:06 36 minutes, 6 seconds also uh because of uh you know the reason Sash was talking and we are very selective in where we export. We are not 36:13 36 minutes, 13 seconds like China. So therefore if you combine all of this this is how the numbers stack up over a 3 to 5 year period and 36:21 36 minutes, 21 seconds the capacity you know got it sir and how about the isopropyl alcohol because you know the prices have come down from 1 lakh 37,000 per turn to 36:30 36 minutes, 30 seconds about 85 90,000 per turn and in that case you know the you like your correct situation is that you are making it 36:38 36 minutes, 38 seconds through the propylene route acetone would be cheaper which your competitors are doing so you definitely face that margin pressure also And you know when 36:45 36 minutes, 45 seconds the realization is coming down uh in has continuously come down in the last 12 months. How do you see it ramping up and 36:51 36 minutes, 51 seconds about the again nitric acid front nitro aromatics something has always been a concern from China. So how do you tackle the industrial chemical side in that 37:00 37 minutes case going forward? Uh okay British I think uh let me answer it and then you need to leave a space for others also to 37:08 37 minutes, 8 seconds speak otherwise one hour have it here you only but let me give you IPA in my opening commentary I was very clear 37:15 37 minutes, 15 seconds there's a correction in prices and we expect softness to continue for some time we don't expect uh overnight things 37:22 37 minutes, 22 seconds are going to change no it's not it's a cyclic business that also a reality uh there is a there is a time when uh uh 37:32 37 minutes, 32 seconds prices start going in other direction and uh when the phenol prices start getting firmed up acetone availability 37:41 37 minutes, 41 seconds get challenge or the prices become firmed up and so the IPA prices goes up there is a cycle uh currently cycle is 37:48 37 minutes, 48 seconds in a uh at a bottom I call it at this point of time we are seeing IPA prices broadly now at a level where it's it's 37:57 37 minutes, 57 seconds bare it for some time now it's not every quarter we are seeing further reduction it broadly remaining at that level. Now 38:04 38 minutes, 4 seconds the cycle need to turn uh will it turn in one quarter two quarter we need to wait. We are in in the commodity 38:12 38 minutes, 12 seconds business when it comes to IPA. It it has a cyc uh cyclic and uh process and 38:20 38 minutes, 20 seconds things will move back uh in coming time uh once the demand supply gets corrected overall uh geopolitical issue which is 38:29 38 minutes, 29 seconds which has created this tensions once it's open up the demand supply will get balanced and these prices will come back 38:36 38 minutes, 36 seconds but yes it will take some time we we ourselves are not saying IPA is getting corrected in one quarter no it's 38:45 38 minutes, 45 seconds Okay sir and about the nitric acid sorry to interrupt you Mr. Dr. Kamill request to kindly come back in the key for follow. 38:50 38 minutes, 50 seconds It was the same question. It was the same question regarding nitric acid. No nitric acid is one quarter phenomena. 38:56 38 minutes, 56 seconds It was an uh import access import happen in last quarter. Normally nitric acid otherwise it is short-term demand. We 39:03 39 minutes, 3 seconds haven't we don't have a issue of demand side of nitric acid. uh if you see nitric acid remains stable for long long 39:12 39 minutes, 12 seconds time even it's just one quarter when we have seen uh softness in nitric acid prices again since tan was soft lot of 39:21 39 minutes, 21 seconds nitric acid goes in tan tan softness impacted the nitric acid demand and so the prices 39:29 39 minutes, 29 seconds once nitric once the tan demand is okay we don't see a nitric acid business getting uh having a challenge that's a 39:37 39 minutes, 37 seconds short-term phenomen No, no, that's not going to be long. No. 39:42 39 minutes, 42 seconds Thank you. We have the next question on the line of Kushal Sha and Rachel Investor. Please go ahead. 39:49 39 minutes, 49 seconds Uh hello. Am I audible? Yes, I can hear you. 39:54 39 minutes, 54 seconds Okay. Uh my first question is from exclusive manufacturer that we did purchased. I want to know the strategy 40:02 40 minutes, 2 seconds behind that acquisition. Is it more of a production ramp up or is it more of a acquisition from point of view of 40:09 40 minutes, 9 seconds technology gain and any capex that we are looking or any uh amount of money we are trying to infuse in that exclusive 40:17 40 minutes, 17 seconds manufacturer that's my first question and second is on the line of uh uh deep mining solutions and deep fertilizers de 40:25 40 minutes, 25 seconds merger we have been seeing it since I think 2023 or 2024 and we are in 2026 and we are yet to any updates on that front? 40:37 40 minutes, 37 seconds Uh okay. Uh let let me give second answer first and then I'll pass on to Tarun. Now the de merger uh there are 40:44 40 minutes, 44 seconds two aspect uh de merger per say in a separate entity happened last year. Uh 40:51 40 minutes, 51 seconds we have created a separate entity uh which is DMSL and the business of mining chemical moved out of ML and gone to 41:00 41 minutes DMSL. So the restructuring of entity has happened. Uh if you're looking yeah the 41:07 41 minutes, 7 seconds listing of subsidiary uh uh yes uh that is I'll say as a part of our plan we are 41:16 41 minutes, 16 seconds uh in fact when we went with the restructuring the focus was very clear uh we need to have a very clean entity 41:24 41 minutes, 24 seconds structure so each business can draw its own growth charter and see how do they take business to the next level. 41:31 41 minutes, 31 seconds uh to achieve that uh uh listing also is one of that uh I'll say road map timing 41:39 41 minutes, 39 seconds is we haven't yet uh uh say we have taken a decision and we have found up the timing no uh we we are still or I 41:49 41 minutes, 49 seconds say we yet to decide when are we going going ahead and uh with the process of listing so we need to wait for some more 41:56 41 minutes, 56 seconds time till till we form up our plan and then uh share with the external word t uh you want to talk about explosive 42:04 42 minutes, 4 seconds sure so I think your first question was about uh something about explosives acquisition is that correct 42:12 42 minutes, 12 seconds so it was about I'll repeat myself it was about an explosive manufacturer that we recently acquired I want to know the kind of strategy we are playing with 42:19 42 minutes, 19 seconds that is it more like production ramp up or is it more like a tech acquisition or and are we looking forward for infusing 42:27 42 minutes, 27 seconds any amount of money in that explosive manufacturer Sir. 42:31 42 minutes, 31 seconds Okay. So, first is we have not yet acquired the company as you mentioned. 42:36 42 minutes, 36 seconds You know, I think you said you have acquired. The answer is no, we haven't. 42:40 42 minutes, 40 seconds What we have done is we have signed an agreement to acquire. So that's the first clarification and and the acquisition will be subject to certain 42:49 42 minutes, 49 seconds due diligence and conditions precedence as we say being fulfilled after which uh if everything goes to our satisfaction 42:56 42 minutes, 56 seconds then the transaction will go through and that would mark the acquisition. So that's one clarification. Now if that goes through under that assumption 43:05 43 minutes, 5 seconds what's the purpose of that? Uh the purpose is basically for us to for DMSL to produce uh differentiated value 43:14 43 minutes, 14 seconds adding kind of products to help enhance uh you know our journey you know in the mining industry as a solutions provider 43:22 43 minutes, 22 seconds and also help uh in terms of our export business. So you know one example of that could be we could look at bundling 43:31 43 minutes, 31 seconds those newly produced products along with our technical ammonium nitrate and provide a comprehensive bundled offering 43:38 43 minutes, 38 seconds to the international markets and to some extent also assist our uh Australian subsidiary which is known as platinum 43:45 43 minutes, 45 seconds blasting service. So that's the kind of overall uh view we have at this stage. 43:52 43 minutes, 52 seconds Uh thanks for the answer. uh and uh whether that uh manufacturer is placed in India or is it outside the India? 44:02 44 minutes, 2 seconds Based in India. 44:04 44 minutes, 4 seconds Uh thanks. And uh the last question could you please throw some light on how our steel pickling solution that we recently launched I think pigbrite is the name is performing. 44:16 44 minutes, 16 seconds Sorry come again. 44:19 44 minutes, 19 seconds We had a steel pickling solution. Uh I think the pigbr is the brand name. I just wanted to know how that is performing in the market. 44:30 44 minutes, 30 seconds Okay. Uh that is still in ramp up stage I call it. Uh uh it's an early stage where uh we are working with couple of 44:38 44 minutes, 38 seconds uh uh manufacturer uh and then uh I'll say take it up from 44:44 44 minutes, 44 seconds uh uh you call it a from a ramper stage to commercialization. So still not reached to a level where it has a 44:52 44 minutes, 52 seconds meaningful uh or I say sizable uh contribution to our uh overall scenario. 44:57 44 minutes, 57 seconds But yes uh this is one of the product uh on which uh we are working and then once is there it will be a differentiated product in our nitric acid business. 45:08 45 minutes, 8 seconds Uh thanks for all the answers. Thank you. Yeah. 45:14 45 minutes, 14 seconds Thank you. Participants are requested to kindly restrict your questions to two per participant. 45:19 45 minutes, 19 seconds Participants are requested to kindly restrict your questions to two per participant. 45:24 45 minutes, 24 seconds We have the next question on the line of Churak from keynote capitals. Please go ahead. 45:29 45 minutes, 29 seconds Yeah, thank you for the opportunity. Uh sir, my first question is related to the fertilizer segment. Uh as I'm able to 45:36 45 minutes, 36 seconds see that our volume growth was stable for the water and the realization has improved. However, there has been a 45:44 45 minutes, 44 seconds significant dip in the margins. So, do you want to say that this is purely because of the increase in price of 45:51 45 minutes, 51 seconds phosphoric acid which you had tried to pass on to the customers. However, the passon was not that much due to uh the 46:00 46 minutes ability for us to charge higher as there was an extended monsoon. This is the reason behind that. 46:08 46 minutes, 8 seconds uh two reason uh chak uh yes one reason very clearly uh this is hableable cost uh and increases which has happened 46:16 46 minutes, 16 seconds on raw material side uh and uh subsidy was not in tune with the increases side of increases which happen impacting the 46:25 46 minutes, 25 seconds overall uh profitability of that. Second uh if you see the growth uh uh in uh 46:33 46 minutes, 33 seconds overall revenue which has come it has come in primarily from uh I'll say uh 46:40 46 minutes, 40 seconds low end of the uh product since the monsoon was delayed and uh eretic actually that gave us only just a month 46:49 46 minutes, 49 seconds to place the product of our value added product which was crop tech and specialtity. So the mix has changed in last quarter. 46:58 46 minutes, 58 seconds Uh and that the another reason for us uh with the lower profitability what has come in uh the one was ramp cost not uh 47:07 47 minutes, 7 seconds compensated by subsidy. Second erratic rain and delayed uh rain finally restricted our ability to push the or 47:17 47 minutes, 17 seconds I'll say place the full uh value added product which normally which happens in this business. So both region were there in in the last quarter. 47:28 47 minutes, 28 seconds Now with this quarter with Ravi back in place we hope now things will will be back in place. 47:34 47 minutes, 34 seconds Fair enough. Fair enough. Uh so my second question is related to the IPA segment which you have mentioned. Uh I couldn't understand the reason behind 47:42 47 minutes, 42 seconds the plan shutdown. If you could just repeat that once again. 47:46 47 minutes, 46 seconds It it was a annual planned maintenance which we need to carry it out. Uh so it was it was uh nothing to do with anything specific. Uh there was a 47:54 47 minutes, 54 seconds planned shutdown which happened maintenance shut. 48:01 48 minutes, 1 second Okay. And the third thing I wanted to understand that we have an ammonia plant with ourselves too. So any increase in price of the ammonia is actually 48:10 48 minutes, 10 seconds beneficial for us as it helps us to uh make the plant break even to an extent. 48:15 48 minutes, 15 seconds Right? So even after increase in ammonia prices uh uh I would just wanted to 48:23 48 minutes, 23 seconds understand why there was a reason uh our margins significantly took a hit in our chemical segments. 48:32 48 minutes, 32 seconds Yeah. No normally uh if you say mid to long-term ammonia prices uh get passed on in the end uh in the end product 48:40 48 minutes, 40 seconds whether it's a tan or uh whether it's a other uh nitric acid product. uh but it's always there is always a time lag 48:47 48 minutes, 47 seconds uh it it it doesn't happen uh immediately with ammonia price movement uh so what price increases what we have 48:56 48 minutes, 56 seconds seen in ammonia in last quarter uh if it remain at this level for for some time then we will see uh the correction 49:03 49 minutes, 3 seconds happening in end product and that's the time when the real benefit come out otherwise it's a shift from one basket to another basket or one segment to another segment till the end product 49:12 49 minutes, 12 seconds prices gets uh corrected in line with ammonia. 49:17 49 minutes, 17 seconds Okay. So will it be fair for me to assume that in tang specifically there was no margin correction spec uh there 49:24 49 minutes, 24 seconds were no margin impact. However the impact was majorly into industrial companies. 49:30 49 minutes, 30 seconds Uh I will okay yeah if you're looking combine ammonia and uh tan together then yes uh tan price increase fin or ammonia 49:39 49 minutes, 39 seconds price increases uh impacted tan standalone margin but both put together margin was same and nitric acid yes has 49:47 49 minutes, 47 seconds seen a price uh cost increases because of ammonia coming to them. 49:53 49 minutes, 53 seconds That that's it from market. Thank you sir. 49:56 49 minutes, 56 seconds We have the next question from the line of Mkta Chandani from Aryan Capital. Please go ahead. 50:04 50 minutes, 4 seconds Hello. Hello. 50:08 50 minutes, 8 seconds Mr. Chandani request you to kindly come closer to the microphone. Your voice is not very much audible. Uh okay. Am I audible now? 50:16 50 minutes, 16 seconds This is much better. Yes. 50:19 50 minutes, 19 seconds Uh first of all, thanks for taking my question. Uh I wanted to know regarding mining chemical business. I can see uh 50:28 50 minutes, 28 seconds B23 revenue share is stood at 15% this time. So if you could just throw some white on long-term target it would be 50:37 50 minutes, 37 seconds great to see my um okay so Tarun here thank you for your question. 50:48 50 minutes, 48 seconds So one thing which uh you know the way we are looking at B2C is in the we we now start to call it as a downstream 50:56 50 minutes, 56 seconds business of DMSL because I think earlier in the call there was some qu there was one question on DMSL as an entity and 51:03 51 minutes, 3 seconds and things like that. So as an entity DMSL has got its own upstream and downstream businesses. upstream business 51:11 51 minutes, 11 seconds is largely tan and supported by its own ammonia as was answered in the previous question from now and the downstream is 51:18 51 minutes, 18 seconds the B2C part which you are talking so first I wanted to clarify not just for you but for all the callers 51:25 51 minutes, 25 seconds um and uh the way we measure downstream is you know through that model through that B2C model we connect with directly 51:32 51 minutes, 32 seconds with the mining companies the end consumers so there are various ways we do that and uh you know there are 51:40 51 minutes, 40 seconds different gotom market models that we adopt for that. Uh but that's where I would like to leave it at. Uh it's 51:47 51 minutes, 47 seconds growing. It's it's growing in its own way driven by the mining you know the growth in mining and infrastructure 51:53 51 minutes, 53 seconds and uh our share is slowly slowly improving there. Having said that as we will have uh the new tan facility in 52:02 52 minutes, 2 seconds Gopalpur in a few months from now uh again you know the mix will look a little bit different because uh we've got a range of products coming in 52:10 52 minutes, 10 seconds Gopalur also to market. So, so what we will have to see is not downstream as the overall mix in the revenue but in 52:18 52 minutes, 18 seconds terms of absolute numbers whether it's growing or not and the answer is yes in absolute number it will be growing in line with the market growth 52:27 52 minutes, 27 seconds and uh just to add to pum uh uh our strategy or or just now just couple of uh questions back uh we talk about 52:35 52 minutes, 35 seconds acquisition uh in explosive so that's also part of our downstream journey uh how do we take that downstream journey journey and and speed up that journey in 52:44 52 minutes, 44 seconds that. So all actions all in place we want to make that business uh grow and then uh meaningful for us. So we are working in that direction. 52:56 52 minutes, 56 seconds Okay. Thank you. This is this was nice. Thank you. 53:01 53 minutes, 1 second Thank you. We have the next question from the mind of Shil Kumar Sha from Samia Capital. Please go ahead. Okay. 53:09 53 minutes, 9 seconds Hello. Am I audible? Yes, Shil Kumar, we can hear you. Yeah. Hi. Uh thanks for the opportunity. 53:17 53 minutes, 17 seconds Uh my question is on a fertilizer side. 53:20 53 minutes, 20 seconds So I could see that our trading business uh revenue has significantly increased uh probably for the for 2Q and this 53:28 53 minutes, 28 seconds quarter as well. So what is driving that? uh I mean is it going to continue for 4Q and probably uh next year as well 53:38 53 minutes, 38 seconds and what type of margins margins do we make on uh this trading side? Yeah. 53:43 53 minutes, 43 seconds Okay. The strategy in our fertilizer business is simple I I call it our focus is to grow uh speciality and crop focus 53:52 53 minutes, 52 seconds business. Uh and that's that's how uh we are looking crop tech and speciality growth happening in overall site. uh we 54:01 54 minutes, 1 second have a limited manufacturing facility but it's funible uh so our priority will 54:08 54 minutes, 8 seconds always be uh dedicating our manufacturing facility more and more towards crop tech 54:15 54 minutes, 15 seconds uh at the same time uh we have a brand we have a market presence so if we see a demand uh we will look at trading route 54:24 54 minutes, 24 seconds to fulfill that demand of smart tech and uh uh other product uh so that's the strategy which we'll continue to take. 54:33 54 minutes, 33 seconds uh yes uh specialtity product do have a margin profile which is uh I'll say 54:40 54 minutes, 40 seconds elevated compared to uh rest of the profile uh but at the same time when we are looking at traded versus 54:48 54 minutes, 48 seconds manufacturing even even if we go with trading uh we we see we maintain uh right margin profile even with that 54:56 54 minutes, 56 seconds journey and that's what the focus will continue to have uh our strategy is to focus on crop and specialtity and grow 55:04 55 minutes, 4 seconds that in a big way for us. Uh trading is an opportunity we'll keep looking that way. 55:12 55 minutes, 12 seconds So I mean do you mean that uh when you say trading it's like a B2B of whatever manufacturing we have done of smart tech 55:20 55 minutes, 20 seconds or crop tech products or it's like a uh getting products from somewhere and probably importing and then selling to the market. No, we we we do it's not a 55:29 55 minutes, 29 seconds uh uh plain vanilla product what we import and sell. Even if we import uh we have our own process which we uh which 55:38 55 minutes, 38 seconds we need to apply to make a customer uh product which is differentiated and uh uh which which match to our our uh 55:46 55 minutes, 46 seconds product differentiation and quality. So we we follow that route. But yes uh we 55:52 55 minutes, 52 seconds do uh in if we see an opportunity uh and if manufacturing capability is not good enough we are opens to looking that 56:00 56 minutes opportunity to through trade route and then doing a uh few processes inhouse to make it right product for for our 56:08 56 minutes, 8 seconds quality level and for our customer level. 56:11 56 minutes, 11 seconds Okay. So do you think this to continue in 4Q and probably 1 Q as well? 56:16 56 minutes, 16 seconds uh we are it that's what I'm saying our focus is more on crop tech and uh specialtity that's our priority uh but 56:25 56 minutes, 25 seconds this is an opportunity business we are in market if we see a demand we'll continue with this journey okay understood yeah thank you 56:34 56 minutes, 34 seconds thank you we have the next question from the line of Dave Mata individual investor please go ahead 56:41 56 minutes, 41 seconds so yes I have one question with respect to our forward integration in the tan business into explosives. So are we 56:50 56 minutes, 50 seconds directly competing one of the uh largest mining explosive manufacturer in India 56:59 56 minutes, 59 seconds in yeah so uh our business model is uh likely to be quite different from the 57:06 57 minutes, 6 seconds existing players uh in the explosives industry in India and the main difference will be the offering that we will make to the mining companies mining 57:15 57 minutes, 15 seconds contractors infrastructure projects and that will be that our proposal and our offering will be more on the outcome 57:24 57 minutes, 24 seconds based more on the solution based rather than on the product sale based which means you know eventually we will 57:32 57 minutes, 32 seconds be you know guaranteeing you know some KPIs some some deliverables to the mine owners mine operators mine contractors which others are not doing and that's 57:41 57 minutes, 41 seconds the very big difference in in our business model compared to what currently prevails in the country okay Answer the second question is uh 57:50 57 minutes, 50 seconds the $430 $450 savings which was mentioned was at a beta level $430 57:58 57 minutes, 58 seconds break even when break even when I mean the $430 $450 at that level. 58:05 58 minutes, 5 seconds So in our previous corn call sir it was mentioned as $350. So why is there so much difference? 58:12 58 minutes, 12 seconds There are there are always uh I'll call it two things which one need to see. One is gas prices where it is. Second is uh 58:20 58 minutes, 20 seconds with GST reduction or lower uh GST rates the incentive has come down. So that impact also now got factored in. 58:29 58 minutes, 29 seconds Okay. So sir this much difference uh it will uh have approx $80 58:36 58 minutes, 36 seconds if we because for calculation purposes what should we take as a sustainable basis for savings amount because uh when 58:44 58 minutes, 44 seconds we take $350 then we are breaking even at uh at a very low level considering the ammonia prices have reached $500. So 58:53 58 minutes, 53 seconds there is a $150 of savings we are we can see here. So if you can just guide me through that. So in fact if if uh uh you 59:01 59 minutes, 1 second see uh the incentive benefit itself which uh 9% local tax is coming down to 2 and a half% itself is sizable uh on 59:11 59 minutes, 11 seconds the overall volume and that that's what the impact is. Now uh what what we are seeing basically currently current uh 59:19 59 minutes, 19 seconds last quarter uh Middle East FOB was around 400 59:26 59 minutes, 26 seconds uh around 420 430 uh at that we were almost at break even uh last quarter but that was at a gas price which is prevailing today. 59:36 59 minutes, 36 seconds Now uh with a new contract coming in uh we do see a substantial gas prices reduction and that will bring our uh 59:45 59 minutes, 45 seconds break even down uh in double digit percentage term uh I'll say uh at this point of time so so 59:52 59 minutes, 52 seconds that will bring the overall break even much lower and and will make the PCL profitable. 59:58 59 minutes, 58 seconds Okay. Answer last question uh with respect to our uh uh tan business only if we are looking for permanent 1:00:06 1 hour, 6 seconds integration uh so are we looking at any potential acquisition in the smaller uh explosive companies to get all the uh 1:00:14 1 hour, 14 seconds licenses in place so maybe if we can intend to sell products in future we can do the same 1:00:21 1 hour, 21 seconds uh we are we are not I said we we have all options open uh we'll see what is fit for our strategy and we'll we'll 1:00:28 1 hour, 28 seconds keep doing uh those steps. Uh as Tarun spoke just few steps we had uh one acquisition in pipeline for which we 1:00:37 1 hour, 37 seconds have done a communication not yet concluded but uh the opportunity if it comes and if it makes a business case we are open for that. 1:00:46 1 hour, 46 seconds Okay sir. Yeah thank you so much. 1:00:50 1 hour, 50 seconds Thank you ladies and gentlemen. That was the last question. I now hand the conference over to Mr. Shubash Anand, President and Chief Financial Officer for closing comments. 1:01:00 1 hour, 1 minute Uh uh thank uh thanks and and thanks everyone for taking out time and uh uh having a conversation. Uh look forward 1:01:09 1 hour, 1 minute, 9 seconds uh connecting with all of you. I understand we are not able to take all the questions because of time uh constraint. So in case uh uh you feel 1:01:18 1 hour, 1 minute, 18 seconds please do reach out uh we'll able to uh answer those questions on oneonone basis or any further clarification but thanks 1:01:26 1 hour, 1 minute, 26 seconds everyone uh look forward connecting again next quarter. Thank you. 1:01:32 1 hour, 1 minute, 32 seconds Thank you on behalf of Deepak Fertilizers that concludes this conference. Thank you for joining us. And you may now disconnect your lines.