Fineotex Chemical Ltd — Q3 FY26

Fineotex Chemical Ltd Q3 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=cwjm29ii2d0 Published: 2 months ago

0:01 1 second Ladies and gentlemen, good day and welcome to Q3 and 9 months FI26 earnings conference call of Finotex Chemical 0:09 9 seconds Limited. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation 0:18 18 seconds concludes. Should you need assistance during this conference call, please signal an operator by pressing star then zero on your dashboard. 0:27 27 seconds Please note that this conference is being recorded. I now hand the conference ODMUS Arti Jingjuna from 0:34 34 seconds Finex Chemicals Limited. Thank you and over to you. 0:40 40 seconds Good afternoon everyone. It is always a pleasure to connect with our investors, analysts and stakeholders. We deeply 0:48 48 seconds appreciate your time and continue trust in Photex Chemical Limited. 0:54 54 seconds Pinoteex is not just a specialtity chemicals company. We are a solutionsdriven organization built on innovation, customer centricity, and sustainable value creation. 1:05 1 minute, 5 seconds Our integrated product range, strong global presence, and deep industry relationships position us to cater to the evolving needs of a wide spectrum of industries. 1:16 1 minute, 16 seconds During this quarter, we continue to build on this foundation and achieve several important milestones. 1:23 1 minute, 23 seconds On 9th December 2025, we acquired controlling stake in crude chem technology group, a US-based specialtity 1:31 1 minute, 31 seconds chemical manufacturer of advanced chemical fluid additives and comprehensive oil field chemical solutions for the global oil and gas 1:38 1 minute, 38 seconds sector. This acquisition is fully aligned with our communicated growth plan and a long-term strategy of 1:45 1 minute, 45 seconds expanding into technologydriven specialtity segments. 1:50 1 minute, 50 seconds With this acquisition, we have added two new manufacturing plants, increasing our overall capacity by approximately 80,000 metric tons per year. 2:01 2 minutes, 1 second The group brings a cuttingedge technical lab and an innovative product portfolio of more than 90 specialtity chemicals 2:10 2 minutes, 10 seconds designed to optimize oil field and water treatment performance. 2:16 2 minutes, 16 seconds It has a leading presence in the friction reducer market. continuously outperforming competitors in thirdparty testing. This group's in-house 2:25 2 minutes, 25 seconds specialtities include product design and testing, manufacturing, last mile delivery, and field engineering support enabling complete end-to-end solutions. 2:36 2 minutes, 36 seconds Most importantly, the acquired group shares the same ESGdriven philosophy that forms a core pillar of finex's long-term vision, reinforcing our 2:45 2 minutes, 45 seconds commitment to sustainability, compliance, and responsible growth. 2:49 2 minutes, 49 seconds The company has served several marquee global customers including NESR, Nexar, Debborn Energy and Exxon Mobile amongst 2:58 2 minutes, 58 seconds many others. Overall, this acquisition significantly strengthens our global positioning in oil and gas segment and 3:06 3 minutes, 6 seconds enhances our ability to deliver high performance customized solutions to international clients. 3:13 3 minutes, 13 seconds It is also EPS accative and expected to contribute meaningfully to both revenue growth and margin expansion going forward. 3:23 3 minutes, 23 seconds On the industry front during the quarter, India signed multiple strategic trade agreements including those with the UK, the US and the European Union. 3:34 3 minutes, 34 seconds These agreements are strategically positive for Indian specialtity chemical sector and create a significant long-term advantage for us. 3:42 3 minutes, 42 seconds Across the India, US and the India UK trade firms, several common themes emerge. Tariff rationalization and 3:49 3 minutes, 49 seconds improved market access for petroleum products, petrochemicals and specialtity chemicals input. 3:56 3 minutes, 56 seconds technology transfer and financing support for modernizing oil and gas infrastructure with lower emission technologies and encouragement of 4:05 4 minutes, 5 seconds partnerships in refining technology, clean fluids and transition energy initiatives. 4:11 4 minutes, 11 seconds Also from a market perspective, the North America opportunity substantial as India increases energy trade with the 4:19 4 minutes, 19 seconds US and strengthens cooperation with the UK. activity across drilling, refining and mid-stream services is expected to 4:26 4 minutes, 26 seconds rise. This directly supports uh demand for oil field specialtity chemicals including high cost of performance additives and friction reducers. 4:37 4 minutes, 37 seconds Arendum G will now take us through the key developments during the quarter. 4:47 4 minutes, 47 seconds Hello. Uh thank you RTG and very good afternoon everyone. 4:53 4 minutes, 53 seconds We are expanding onto the trade deal and its effects on the textile sector is significantly strengthen India's textile 5:00 5 minutes export competitiveness particularly under the UK and the EU frameworks. 5:06 5 minutes, 6 seconds As you all know zero duty access on majority of textiles and apparel export to both the UK and UA EU has been 5:14 5 minutes, 14 seconds announced. Removal of earlier tariff ranging from 8 to 12% and in some cases up to 16% will significantly improving 5:23 5 minutes, 23 seconds price competitiveness of Indian manufacturers. 5:26 5 minutes, 26 seconds Textile exports projected to grow 30 to 45% by 2030 in certain markets and categories potentially adding 1.1 to 1.2 5:35 5 minutes, 35 seconds $2 billion annually in incremental exports. 5:39 5 minutes, 39 seconds Importantly, the processing and finishing stages consume the highest volume of specialty chemicals particularly in the weight processing 5:47 5 minutes, 47 seconds and advanced finishing applications where we are the masters. There is also a structural shift underway 5:55 5 minutes, 55 seconds such as export markets like EU increasingly demand eco-friendly, low emission and high performance formulation. 6:04 6 minutes, 4 seconds This drives a transition from commodity dice to premium performance chemicals. 6:10 6 minutes, 10 seconds As textile processor upgrade their formulation to meet stricter environmental and compliance standards, 6:17 6 minutes, 17 seconds demand for value added speciality chemicals expected to rise. We are equipped with all round certification as you all know. Now I request Sanjay G to 6:26 6 minutes, 26 seconds take us through the financial performance during this quarter. Thank you. 6:31 6 minutes, 31 seconds Uh thank you Arindam G. Good afternoon everyone. I would like to start by highlighting to all that the quarter 3 financial year 26 our total revenue grew 6:41 6 minutes, 41 seconds by 46% to 190 kores uh uh compared to the last year quart financial quarter 3. This performance 6:50 6 minutes, 50 seconds reflects both strong underlining demand and the strategic expansion of our international businesses. 6:56 6 minutes, 56 seconds Our export shares has increased significantly to 48% in quarter 3 financial year 26. from 25% last quarter 7:04 7 minutes, 4 seconds demonstrating our growing international presence and traction. Importantly, even post acquisition, the company maintains 7:12 7 minutes, 12 seconds a strong healthy position of approximately 340 crores. This healthy cash balance enables us to remain 7:19 7 minutes, 19 seconds debt-free even during our ongoing expansion phases and provides sufficient financial flexibility to pursue 7:26 7 minutes, 26 seconds additional inorganic growth opportunities as a plan as our long-term strategic road map. Additionally, during 7:34 7 minutes, 34 seconds the quarter, the company has received approximately 35.68 crores pursuant to the conversion of 75% of the outstanding 7:41 7 minutes, 41 seconds warrant. Out of this the promoter exercised five lakh warrants amounting to aggregate consideration of 7:50 7 minutes, 50 seconds approximately rupees 17.3 crores reflecting continued promoter confidence in the company's long-term growth trajectory. 7:59 7 minutes, 59 seconds Looking at looking ahead our long-term growth trajectory remains robust with innovation continuing to be the key driver of our business. The ongoing in 8:08 8 minutes, 8 seconds integration is expected to generate meaningful operational and product leverage synergies over time. Centering revenue visibilities and supporting sustained growth across global markets. 8:20 8 minutes, 20 seconds With that, I now open the floor for questions. Thank you. Over to you Nero. 8:26 8 minutes, 26 seconds Thank you very much. We will now begin with the question and answer session. 8:30 8 minutes, 30 seconds Anyone who wishes to ask a question may press star and one on their Kashton telephone. If you wish to remove yourself from the question queue, you may press star and two. 8:41 8 minutes, 41 seconds Participants are requested to use handsets while asking the question. 8:46 8 minutes, 46 seconds Ladies and gentlemen, we will wait for a moment while the questions. 8:52 8 minutes, 52 seconds Participants, you may press star and one to ask a question. 9:07 9 minutes, 7 seconds First question is from the line of Amanu Kumar Singh from MK Investments. Please go ahead. Hello. 9:15 9 minutes, 15 seconds Yes, Mr. Manu. Hello. Congratulations sir. Uh thank you very much Mr. Manukumar. 9:24 9 minutes, 24 seconds Sir this is what we want to see as growing at this pace. Very very congratulations sir. 9:31 9 minutes, 31 seconds Thank you sir. Sir my uh question is sir uh is labor code impact included in the results or not? 9:38 9 minutes, 38 seconds I'm sorry could you repeat sir labor code do new labor code that has been implemented that impact have been included in the results or not? 9:49 9 minutes, 49 seconds No that has not been uh yet included but we'll get into the more details about it and let you know about that. 9:55 9 minutes, 55 seconds Okay. Okay. As such we our labor cost is not much. So it is not going to impact any greatly things and already 10:03 10 minutes, 3 seconds if it is all the social uh welfare activities etc have been already been uh taken to the book since beginning. 10:12 10 minutes, 12 seconds Okay. Okay. Okay sir. Thank you sir. Uh my second question sir. Uh sir no any 10:19 10 minutes, 19 seconds update on order from aquasite. Sir last control you said now the summers have come. any update you want to share sir? 10:27 10 minutes, 27 seconds Yeah, it is in the process. Uh definitely uh it's in the process. We are getting very uh great uh you know kind of interest coming up from the 10:36 10 minutes, 36 seconds authorities. I think in a couple of uh very near we should be having some good news on that as well. Thank you. 10:44 10 minutes, 44 seconds Thank you. 10:45 10 minutes, 45 seconds Thank you. Manukumar request to come back for a follow-up question. 10:49 10 minutes, 49 seconds Ladies and gentlemen, you may press star and one to ask a question. 10:55 10 minutes, 55 seconds Next question is from the line of Asan and visual investor. Please go ahead. 11:09 11 minutes, 9 seconds May I request unmute your line and proceed with your question? Uh hello sir, can you hear me? Yes. 11:16 11 minutes, 16 seconds uh uh it's regarding the my question after the acquisition of uh CCM what will be our uh new uh margin and the 11:27 11 minutes, 27 seconds second question is uh what is the like how much percentage of revenue is from the uh hygiene segment and 11:37 11 minutes, 37 seconds oil and gas segment and individual can you give some guidance yeah regarding CCT group we had acquired 11:45 11 minutes, 45 seconds it on 9th December mber it's in USA and there were uh at least almost uh 10 days holiday due to the Christmas and the new 11:53 11 minutes, 53 seconds year's so as such there was only 15 days working uh going around uh which we could add it consolidate in the books so 12:02 12 minutes, 2 seconds as per the last records they are uh annual report annual sales has been more than $60 million it's 65 $66 million 12:10 12 minutes, 10 seconds broadly and there is a lot of expansion going on there is a new plant also which be coming up very soon there and uh so 12:18 12 minutes, 18 seconds we are just in the initial uh stage of integration integrating the things and systems and lot of strategies have been 12:24 12 minutes, 24 seconds brought to surface regarding the mix as uh I can see in the quarter three so as 12:31 12 minutes, 31 seconds such uh 55% is textiles now 15% uh 15% is cleaning and hygiene and the 12:39 12 minutes, 39 seconds remaining is 30% is uh the speciality oil field that is a broad uh industries which we are into. 12:49 12 minutes, 49 seconds Thank you. 12:51 12 minutes, 51 seconds Okay sir. Thank you. I will thank you. Next question is from the line of Sedat Lakhan from Dash Capital. 12:59 12 minutes, 59 seconds Please go ahead. 13:01 13 minutes, 1 second Hi good afternoon uh Sanjay G and congratulations on a decent set of number. Uh I have uh two questions 13:09 13 minutes, 9 seconds broadly just like like you explained the verticals textile and then like home care and reading. So on the textile side 13:19 13 minutes, 19 seconds uh I believe the volumes are up but sir uh there's been a trend of declining realizations. 13:25 13 minutes, 25 seconds So uh what are those now and how do you expect them to pro progress going forward given the uh government push 13:32 13 minutes, 32 seconds also on the textile health. So what do you see what do you foresee in the near future that will be on the textile side 13:40 13 minutes, 40 seconds all my questions or yeah I can answer this one first I'll take this one first. So actually in textiles what has happened as you know 13:47 13 minutes, 47 seconds uh the you know India is largely depending and supplying to the USA markets and uh that's also the reason that you know most of the textile Indian 13:56 13 minutes, 56 seconds corporates exporters let's say from I mean whoever is the listed companies all of them have their dependency on USA 14:03 14 minutes, 3 seconds which started in first on first J uh 1 April that is the financial new year almost and it lasted till January I mean 14:12 14 minutes, 12 seconds just around the like two weeks track it has been you know got back to the old ones in fact better than the old ones. 14:18 14 minutes, 18 seconds So then the hit has come everyone had a decline in their businesses and so did we also however because our product range has been growing our teams have 14:27 14 minutes, 27 seconds been growing and we have been getting more and more traction from various number of new customers also. So we were not having that much decline in our 14:36 14 minutes, 36 seconds businesses in textiles. So and also there was some pricing pressure in the last quarter. Now because this call is about the last quarter till then the 14:44 14 minutes, 44 seconds impact was totally felt in the uh by the Indian textile company. So that is what we have also experienced 14:51 14 minutes, 51 seconds and uh yeah so also you could say so that the H1 was not greatly great enough 14:58 14 minutes, 58 seconds because of this kind of uh situations which we have faced globally. So going forward now India has good rel not good relation. 15:12 15 minutes, 12 seconds Sorry to interrupt you. We lost your audio. Can you hear us? 15:22 15 minutes, 22 seconds Ladies and gentlemen, please stay connected while we rejoice on just a back call. 15:54 15 minutes, 54 seconds Ladies and gentlemen, thank you for your patience. We have line for Sana Deconnected. Please go ahead. 15:59 15 minutes, 59 seconds Yeah, sorry the line got cut. So, I'll just uh you know repeat the last few sentences. So, so like uh right now our customers are getting great order books 16:08 16 minutes, 8 seconds going forward and they have told us to gear up for the new supplies and things like that. So way forward is going to be much much better than the H1 and that's what we are expecting. 16:19 16 minutes, 19 seconds Sure. Yes sir. 16:20 16 minutes, 20 seconds Uh and yes sir and sir uh in the homeare side as you mentioned and we faced pressures there as well in the initial 16:28 16 minutes, 28 seconds quarters uh first two quarters and since basically the last two quarters of the previous financial year. So current 16:35 16 minutes, 35 seconds levels we seem to be stabilizing on these levels. So how do you see this uh vertical of yours going forward as well 16:42 16 minutes, 42 seconds given that uh realizations also moderated to quite a quite an extent and now they seem to be stabilizing. So on the volume sir what do you expect? 16:52 16 minutes, 52 seconds Oh yeah basically so the quarter 3 was much better than quarter 1 and two in the pen hygiene segment also. Uh so we 17:00 17 minutes believe that the you know all the low demand everything is behind us now and uh way forward we are looking forward 17:08 17 minutes, 8 seconds for a great opportunities coming up and there are a lot many more products are come we have added on more sales team 17:15 17 minutes, 15 seconds more distribution channels we are cracking a lot many bigger accounts now so there is a lot of action going on 17:23 17 minutes, 23 seconds right now and this is this is one of those months where basically the cleaning operations generally happen more just before the summers and the 17:31 17 minutes, 31 seconds summers. So now this is the period where this business picks up more because it's too much the temperature rises in India 17:39 17 minutes, 39 seconds and then there is a more cleaning going on with the consumers. Yeah. 17:44 17 minutes, 44 seconds Understood. Okay. And sir in the drilling chemicals and other segment that you have we've seen a significant uptake in volume now and uh also with 17:53 17 minutes, 53 seconds your acquisition of CCT. So uh given this uh volume trend you see even higher 18:00 18 minutes volumes from the drilling chemicals and the specialty chemical side also what will be the margin profile sir 18:08 18 minutes, 8 seconds because I believe that CCJ acquisition was at a 7 8% kind of a beta level so when can we see 18:16 18 minutes, 16 seconds uh margin going up in the near future if you could please give some timeline or what are your plans here? 18:24 18 minutes, 24 seconds Okay. So what you know what I would like to mention here is uh it's not uh see is not uh into only drilling and other 18:32 18 minutes, 32 seconds stuffs. It's totally into providing systems and packages which are like solutions for these companies and taking 18:40 18 minutes, 40 seconds in into the various uh functions in the oil speciality field. So that's one. 18:45 18 minutes, 45 seconds Yes, it will be growing more and more rapidly. And uh right now I like like I was mentioning that you know this has been consolidated from 9th December only 18:54 18 minutes, 54 seconds and that also it had a Christmas holidays and new year and and in US it's uh you know it's almost like closing everything is closing down from let's 19:02 19 minutes, 2 seconds say 20th of December. So yeah those things factored in is also there in the books uh going forward it's super exciting right now for us uh number one. 19:12 19 minutes, 12 seconds Number two, uh as we have also invested in the company, 30% of the proceeds has been get uh given um you know introduced 19:22 19 minutes, 22 seconds in the company and that has helped to reduce the purchases the negotiations the purchase negotiations. If you can 19:29 19 minutes, 29 seconds also go through one of our uh you know the TV channel interviews uh maybe that is also something which will enlighten 19:36 19 minutes, 36 seconds you about what are things going on there. Plus we had a con call also on this topic separately in the month of December 1st or second week 19:44 19 minutes, 44 seconds things are definitely so if you want more insights about that you know that would be a right reference but yeah this is what I can u uh we are doubly sure 19:53 19 minutes, 53 seconds that so integration is going on uh margins are going to it's already started improving and of course it takes 20:00 20 minutes a little bit time uh we have been spending a lot of time in US uh I mean there is a lot of action going on so 20:08 20 minutes, 8 seconds Yes, going forward we are hopeful that you know the this next coming financial year would be excellent than what has been done in the past. 20:18 20 minutes, 18 seconds Thank you Sarah. I'll request to come back for a follow-up question. 20:23 20 minutes, 23 seconds Participants you may press star and one to answer question. 20:28 20 minutes, 28 seconds Next question is from the line of Katar from green portfolio. Please go ahead. 20:34 20 minutes, 34 seconds Yeah sir. Uh thank you for taking my question. Uh my first question is regarding the textile segment. So in 20:40 20 minutes, 40 seconds FY25 we saw an uptick in uh the volumes of textile chemical sales and we also added new customers but there was a 20:49 20 minutes, 49 seconds decline in the hygiene segment which resulted in a meager growth in our overall revenue. Now that we have 20:56 20 minutes, 56 seconds completed the deals uh the deals with the Europe and UK and US uh what is the 21:03 21 minutes, 3 seconds size like are you seeing uh you started witnessing uptick in order book or what is the quantum of growth that you are 21:11 21 minutes, 11 seconds expecting coming from these deals. So actually in textiles uh let's put it like the US is one of the biggest markets for Indian textile companies and 21:19 21 minutes, 19 seconds uh from first week of prep there was an announcement uh it seems that yes the imports have been started getting cleared off at the 21:27 21 minutes, 27 seconds lower tariffs if not maybe this month would be the you know where all the you know the you know the resolutions and 21:34 21 minutes, 34 seconds the import tariffs everything is going to get back to the normal old ones or better than that. So going forward yes already the orders which are been uh 21:43 21 minutes, 43 seconds there in the customers they have doubled by now there is a lot of traction which we are seeing the demand is increasing 21:50 21 minutes, 50 seconds so way forward we are very confident that it will be much better than the year financial year 25 also there's no 21:58 21 minutes, 58 seconds doubt about it so we are just making sure and we are just waiting for things to shape up more so I think in a couple of months we'll be having the exact 22:07 22 minutes, 7 seconds understanding where we have reached and where the trend is going to. So trend is definitely going to improve. There is no doubt about it. If that's your question, 22:14 22 minutes, 14 seconds this is the answer. But uh how how much we can you know uh capitalize on it is something which we are working upon. 22:23 22 minutes, 23 seconds So as we saw in the industry as well that both Urban Wellspun other companies were also doing a lot of capeex and FI24 22:30 22 minutes, 30 seconds and FI25 towards improving their capacities. So there must be some like uh an uptick that they are also 22:37 22 minutes, 37 seconds expecting in orders and you know that will trickle down to our order book as well if I'm correct right. Oh of course yeah like I said uh the order books for 22:45 22 minutes, 45 seconds them have already started increasing in the last 10 days. There's no doubt about it. So rather than some of the companies are again talking of expansions for the 22:52 22 minutes, 52 seconds coming next two years. So that's also very positive update and uh yeah so yeah we are just it's not even two weeks and in two weeks you know a lot of things 23:01 23 minutes, 1 second has to flow down to the ground realities where the uh the effect to be seen so yeah that's uh that's something I think 23:08 23 minutes, 8 seconds we need to wait a couple of weeks or months time to understand where is it exactly going forward to but textile is definitely going to boom compared to 23:17 23 minutes, 17 seconds what it has faced in the last three quarters okay uh that's very helpful sir And uh second question regarding our latest 23:25 23 minutes, 25 seconds acquisition. So as our understanding is that the FY25 revenue was around $65 million and uh during the acquisition 23:34 23 minutes, 34 seconds also and in the latest investor presentation also uh Finiteex has uh you know reiterated the guidance of 23:41 23 minutes, 41 seconds achieving $200 million of revenue uh by 2030. that is around let's say 1,800 23:48 23 minutes, 48 seconds crores in India right and our current revenue stands at around 590 crores as of TTF so uh is the management still 23:56 23 minutes, 56 seconds confident of achieving this kind of growth where we are growing 3x in next I mean it's yeah it's not too too old 24:03 24 minutes, 3 seconds statement what we have made and I think uh yeah why not I mean that's what is looking evident actually and uh this is the right time so now everything is 24:12 24 minutes, 12 seconds shaping up very well I think uh definitely the the wor the the the the worst is behind us. Textile is getting 24:18 24 minutes, 18 seconds back very swiftly and uh similar for the oil and gas. Yeah. So we have this crude camp. There is a lot of more actions 24:26 24 minutes, 26 seconds going on there for new expansions and a lot of more strategic tieups also going in. So we are really working uh very 24:35 24 minutes, 35 seconds closely in all those developments. So what is going to be the like uh increasing your oil chemical business also from like 3x from 65 million to 200 24:44 24 minutes, 44 seconds millions. So what is the strategy that management is employing? It's it's the increasing supply to current clients only or expanding it to Indian markets as well the product. 24:55 24 minutes, 55 seconds So generally generally what happens in oil field chemicals there is a lot of investments which is required uh in terms of capital and now we are there we 25:03 25 minutes, 3 seconds have the capital cash on books as we have told them. So we are gauging and capturing every capitalizing every opportunity which we get. Uh we are 25:10 25 minutes, 10 seconds working with the biggest companies of the world. Uh those who are like let's say from half a trillion dollar business 25:17 25 minutes, 17 seconds to let's say 30 billion dollar businesses. So I mean these are the companies they have huge amount of opportunities. They need companies like 25:26 25 minutes, 26 seconds us aggregators and they need companies like us who can develop the package for them work for them work together. 25:32 25 minutes, 32 seconds There's a lot of new drillings coming up in various countries and uh I mean lot of exploration coming up in various 25:38 25 minutes, 38 seconds countries and uh so they need partners there we are ready I mean there's a lot of things it's not possible for us to explain these things on the call but 25:47 25 minutes, 47 seconds yeah apparently there has to be a lot of things happening it's not one thing it has to be a package of things it has to be more product information we adding 25:55 25 minutes, 55 seconds more more team members more geographies I'm more capital more investments everything so then only you can have 26:02 26 minutes, 2 seconds these kinds of uh target set. So it's not one factor, it's a accumulation of all the factors because of which you are confident. 26:13 26 minutes, 13 seconds Thank you. AMK shall request to come back for a follow-up question. 26:18 26 minutes, 18 seconds Next question is from the man of Varni from Hatway Investments. Please go ahead. Hello Z. 26:25 26 minutes, 25 seconds Hello. Yeah, good number. Just wanted uh two bookkeeping questions and one question on uh how your Q3 FI25 numbers 26:35 26 minutes, 35 seconds and Q3 FI26 numbers are shaping up. If I see Q3 FI25 your total of figure of sale was 125 crores and you said 76. 26:46 26 minutes, 46 seconds Can you can you repeat the last sentence? You said uh Q3 financial year 25 was 125.92 crores 26:55 26 minutes, 55 seconds correct the sales revenue from operations rather and in that 27:01 27 minutes, 1 second 76% domestic and 24% international that translates to around 96 odd crores for domestic and around 30 crores for 27:09 27 minutes, 9 seconds international if I see the same numbers in FI26 it comes to 95.58 crores of domestic and around 88 crores 27:17 27 minutes, 17 seconds of export sport. So has the domestic really not grown at all year on year? 27:24 27 minutes, 24 seconds Yeah, definitely domestic has not grown because the companies whom we are working for are already depending on the US markets and not only us. I mean 27:33 27 minutes, 33 seconds anyone in textiles will definitely have uh you know businesses in US and US is not has not done at all well. You can 27:41 27 minutes, 41 seconds see you know the our main major customers like Himat Singh, Indones I mean these are the companies uh you know 27:49 27 minutes, 49 seconds Gokula so these are the companies which have not been doing uh you know meeting their expected growth at all. 27:57 27 minutes, 57 seconds So so the drop in textile was compensated by increase in other sectors is it during this period or because there's no drop why would you be Q3 to Q3? 28:06 28 minutes, 6 seconds I would say there is not a substantial drop at all. Now why there was no substantial drop is because we added more customers, more products. We became a little bit aggressive in the pricing. 28:16 28 minutes, 16 seconds Advertising prices has also gone down in some product line. So we were trying to let's put it like uh you know manage the 28:23 28 minutes, 23 seconds the tactile entire division on that lines up to December and yes as the rightly said yes the the drilling came 28:31 28 minutes, 31 seconds at a time where you know we could have this thing also together with our group and so that that's also the reason why 28:39 28 minutes, 39 seconds you can see that the domestic is almost mute the growth is same for domestic but exports has gone up because of the US factor also 28:46 28 minutes, 46 seconds yeah now in exports from 30 to 88 how much is contributed by Malaysia and how much is uh this includes exports from uh 28:54 28 minutes, 54 seconds India or exports from India is a part of domestic business rather I'll come to your uh you know to make it more simpler for you or maybe where the question is 29:03 29 minutes, 3 seconds going towards I can say that you know almost uh 50 crores of this is contributed by uh US crude chem okay okay 29:11 29 minutes, 11 seconds uh yeah so I think then you can do your math about it yeah yeah yeah that I'll do so perfect and now the second part was on 29:18 29 minutes, 18 seconds consumption If I really see there's a huge growth in the the raw material consumed part which has 29:25 29 minutes, 25 seconds really dropped your uh gross margins this time any particular reason there so so as I have been uh so what has also 29:34 29 minutes, 34 seconds happened is uh I would I wouldn't say it's a you know uh if you see the 9 months yeah okay so we are at let's say 29:42 29 minutes, 42 seconds 30 36% growth margins now even in 9 months we had 36% earlier it was 38% But then there is uh the the group factor 29:51 29 minutes, 51 seconds which has also come in and uh so of course there can always be written recalibration of things and uh yeah so 29:59 29 minutes, 59 seconds that is one of the reasons why it has changed. Yeah. Okay. 30:01 30 minutes, 1 second And also little bit margin pressures we got in India in the textiles because many companies we had to support them in the times of 30:09 30 minutes, 9 seconds tarik which we are rolling back by the way. Uh we have already written to our customers uh last week uh that we are rolling back the prices uh the discount 30:18 30 minutes, 18 seconds which we are given to them as a supply chain partner and a collaborator uh which will be reversed in the from 1st uh March or something like that. 30:29 30 minutes, 29 seconds Mhm. 30:31 30 minutes, 31 seconds Okay fine. Thanks a lot. I'll join back in with you. Thank you. Thank you man. Thank you. Thank you. 30:38 30 minutes, 38 seconds Next question is from the man of Prasad from Kamayaka we work management. Please go ahead. 30:44 30 minutes, 44 seconds Uh good afternoon sir. Uh so CCT group Prasad sorry to interrupt. Can you please speak through the handset? 30:53 30 minutes, 53 seconds Can you hear me now? Yes sir. Yeah much better Mr. Pashad. 30:57 30 minutes, 57 seconds Uh yeah. So sir uh in CCT group what kind of ROIC's are we currently you know uh delivering and what kind of ROIC are 31:06 31 minutes, 6 seconds we you know in disaging post achieving $200 million worth of targets that we have envisaged. 31:14 31 minutes, 14 seconds So if you uh still uh if you consider the entire quarter three our ROIC is uh for the quarter 3 is almost uh 27% 31:23 31 minutes, 23 seconds broadly I I'm very sure CCT's figures will be uh ROIC will be ROC will be much 31:31 31 minutes, 31 seconds better than that because they have been working there was a let's put it in this way they had a capital crunch and that's why we are in that plus at the same time 31:38 31 minutes, 38 seconds they we had a lot of synergies cross-selling product technologies which they understand the kind of capabilities finite has the kind of ambition plans 31:47 31 minutes, 47 seconds finex has. So that was one of the reasons uh we were able to uh take it up in that way. So uh now that the uh after 31:57 31 minutes, 57 seconds our arrival the ROC's are going to be much better than where it is now. 32:04 32 minutes, 4 seconds Okay. Okay. And and we consolidated about 15 days worth of revenues uh for CCD group in this quarter, right? 32:11 32 minutes, 11 seconds uh I mean sometimes what happens it is 15 days but then you know because there are some targets also on the you know for completing in the December uh 32:19 32 minutes, 19 seconds broadly it was just a you know a short uh you know bookkeeping uh thing which to so that would not lead to any uh you 32:28 32 minutes, 28 seconds know this thing but yeah this from this quarter you will see something which is really desirable okay okay that's it from a side thanks Mr. 32:41 32 minutes, 41 seconds Thank you. Next question is from the line of Vikran Sahu from RK Advisory. Please go ahead. 32:49 32 minutes, 49 seconds Good afternoon sir. Thank you for the opportunity. Am I audible? Yeah Mr. Van, please go ahead. 32:55 32 minutes, 55 seconds Yeah. Uh I just had a couple of questions on the crude chem part of the business that we have acquired recently. 33:01 33 minutes, 1 second Um this might be a repetition of what you have said but I just wanted to know that krug cam the iita for it is about 33:07 33 minutes, 7 seconds 7% roughly uh so I just wanted to know that how much did it contribute to final 33:14 33 minutes, 14 seconds Texas revenue on an iotaa level and uh what would be the margin that we'll be looking at going forward. 33:21 33 minutes, 21 seconds So actually the I beta level percentage which you are talking about is historical and uh going forward it's already getting much better than where 33:29 33 minutes, 29 seconds it is now because of the you know the open you know the capital introduction and other better pricings and uh you 33:36 33 minutes, 36 seconds know the negotiations with suppliers on contracts etc. So way forward it's going to be uh almost uh I can say you know it 33:45 33 minutes, 45 seconds it has to be always double digits. So that's the way I'm looking at things and uh so sorry could you repeat your second part of the question? 33:56 33 minutes, 56 seconds Yeah. 33:57 33 minutes, 57 seconds I don't know how much did it uh contribute on a consolidated basis for us this quarter. I believe it has been consolidated since. 34:05 34 minutes, 5 seconds Yeah. Yeah. It's done. That's what Yeah. 34:07 34 minutes, 7 seconds Yeah. As you said, you know, it's a repetitive question, but I'll take it up. So it's like 50 crores for the quarter three. Okay. So, so that's uh the number broadly. 34:18 34 minutes, 18 seconds Got so for uh about um maybe 20 let's say 1 month we have acquired got around 34:25 34 minutes, 25 seconds 50 crores of revenue. So for the entire quarter if we see can we expect 150 crores or it is 150 or 50 crores for the entire quarter that we have taken in the books. 34:35 34 minutes, 35 seconds No no no uh it has to be only from the date we we uh transferred the shares. 34:41 34 minutes, 41 seconds It's like 9th December. So that's the date we cannot take it from October for sure. 34:47 34 minutes, 47 seconds But but so basically next quarter we can expect anywhere around uh 150 160 odd cross if my understanding is right. 34:55 34 minutes, 55 seconds Yeah on those yeah if you go by that math. Yes. 35:00 35 minutes Got it. Uh and uh secondly um I just wanted to know that if you see the previous quarter uh we had about 340 35:09 35 minutes, 9 seconds crores of uh cash in hand and even this quarter we have about 350 odd crores cash in hand and we have done 35:17 35 minutes, 17 seconds significant amount of uh spending in the previous quarter be it the bonus or the dividend or uh the acquisition. So I 35:25 35 minutes, 25 seconds just wanted to know where or how are we maintaining such a heavy cash in hand. 35:32 35 minutes, 32 seconds So I will also mention uh not only that if I talk to you about let's say last two years. So there has been a good capex in the new Amber facility where 35:40 35 minutes, 40 seconds the company has invested almost. So let's say the the new office and the new plant in Amber which is the you know 35:47 35 minutes, 47 seconds which we have done last uh one 18 months by now or something like this. we have already deployed 120 crores broadly and 35:56 35 minutes, 56 seconds uh so yeah that's uh one thing I would like to mention at the same time yes uh you know there is a good uh receivables 36:05 36 minutes, 5 seconds uh we are being very much more efficient enough in handling our uh businesses and operations and uh yeah so there it's 36:12 36 minutes, 12 seconds have been increase in that and uh yeah 36:16 36 minutes, 16 seconds [clears throat] 36:17 36 minutes, 17 seconds that's all I can tell you about it so apart from that plus the acquisition which has been done it's already paid paid for and already uh so there was 36:24 36 minutes, 24 seconds being some as I also mentioned in the beginning there was 35 crores odd which has been received from the investors including the promoters uh which is 17.3 36:33 36 minutes, 33 seconds which is uh in fact my myself and uh so yeah 35 crores has come in during this period in the company in quarter 3 so 36:41 36 minutes, 41 seconds yeah broadly this is the where we are today got it sir and uh the final final question I have from my end is that 36:49 36 minutes, 49 seconds given the oil and gas moves that we are seeing recently uh in the western hemisphere of the world. I just wanted 36:57 36 minutes, 57 seconds to know how much will our revenue grow from oil and gas because I I believe we are at a very uh insignificant level at 37:06 37 minutes, 6 seconds this point in time. We just wanted to know moving forward how much are we uh expecting oil and gas to contribute and 37:15 37 minutes, 15 seconds uh as a matter of fact other uh revenue streams for us as well be it uh chemicals or FMCG or textile. So I just 37:24 37 minutes, 24 seconds wanted to know what is the revenue split that we are looking for moving forward. 37:29 37 minutes, 29 seconds So you know if we go by your question and uh take it up uh more ahead I can uh so so basically if you say like say by 37:36 37 minutes, 36 seconds you said like 150 so let's say together I'm very sure in the next financial year we are going to be uh 1,000 cr plus 37:43 37 minutes, 43 seconds company in terms of businesses so that's given from your own derivations of the quarterly of the sales of CCT and things 37:51 37 minutes, 51 seconds that and that's the normalized on the lowest side I can say because now oil and gas everything is going very 37:58 37 minutes, 58 seconds Well in US uh more and more exploration activities is on textiles is going to be very good from this uh this period which 38:07 38 minutes, 7 seconds is going on let's say from next month for sure and uh so even cleaning and hygiene more and more products have been added more team members more big 38:14 38 minutes, 14 seconds accounts have been started up so that's the way I can say so and even if you do the math I think oil and gas businesses 38:22 38 minutes, 22 seconds should be around uh 45 to 50% of our total businesses So uh I mean to answer that question although we are a little 38:32 38 minutes, 32 seconds bit earlier in getting into such kinds of uh you know under the viewpoint but yeah this is uh for the numbers yeah it is evident enough. 38:42 38 minutes, 42 seconds Got it. Got it. Sir uh if if I could squeeze in uh just one last question. 38:49 38 minutes, 49 seconds Uh I just wanted to know that what kind of uh spends that we are looking at for crude chem because I believe we have a 38:57 38 minutes, 57 seconds goal or an aspiration to increase the capacity there as well. 39:02 39 minutes, 2 seconds So just wanted to know in the coming few years maybe next two to three years what kind of spends are we looking at in terms of expanding the facility as well 39:10 39 minutes, 10 seconds as R&D for them. So there is a lot of uh projects which we have already started working upon and uh in any way I can 39:17 39 minutes, 17 seconds only tell you that you know apart from the current cash flows which we have and and by the time we start deploying more 39:24 39 minutes, 24 seconds capital in crude chem uh definitely there will be more uh cash generated by the company for the existing businesses. 39:31 39 minutes, 31 seconds So even if uh to to say on the highest level it will not be above uh let's say 70 80 cr so let's say less than $10 million. Now that's not a big number. 39:41 39 minutes, 41 seconds I'm talking of 2 years time or one and a half years time. So broadly I think this should be a good uh good uh kind of 39:48 39 minutes, 48 seconds value. But yeah that's all being done by internet rules. 39:54 39 minutes, 54 seconds Got it. Got it. Got it. So by the way I want to mention on this line I want to mention crude cam is a debtree company right now. So so that's 40:03 40 minutes, 3 seconds also I would just like to mention all participants about it. Yeah. 40:08 40 minutes, 8 seconds So I guess overall we we do remain debt free uh in all aspects. 40:15 40 minutes, 15 seconds Perfect. Exactly right. So that's always been the you know we have been always very disciplined and uh you know deployment of our cash and uh so we look 40:24 40 minutes, 24 seconds forward to be more and more efficient in our operations and uh going to the next level. 40:31 40 minutes, 31 seconds Definitely that shows in the balance sheet as well. Yes. Thank you so much. 40:37 40 minutes, 37 seconds Okay. Thank you. Thank you so much and I wish you all the best for the future. Thanks. 40:43 40 minutes, 43 seconds Thank you. Next question is from the land of Aneruda Daga from AV Securities. Please go ahead. 40:51 40 minutes, 51 seconds Hi Sanjay. Uh congratulations. 40:55 40 minutes, 55 seconds Uh my first question is uh on the line of uh the preferential conversion. So what is the amount of warrants that has been lapsed? 41:07 41 minutes, 7 seconds Okay, that's the only question. Uh or you want to continue that? 41:10 41 minutes, 10 seconds No, I have one more but since you like to answer one at a time. So I thought uh so I think we have uh got more than 41:18 41 minutes, 18 seconds 70% of uh no sorry uh so yeah in the quarter three I can say yeah almost 80% or yeah 80% has been 41:28 41 minutes, 28 seconds uh only 20% has been lapsed maybe. So yeah that will be added to the uh reserves directly. it will not touch the P&L if that is your accounting question. 41:38 41 minutes, 38 seconds Yeah. Yeah. It was only the accounting question and uh so regarding CCT so uh 50 crores now is what has been added to 41:46 41 minutes, 46 seconds the top line as you said. Now uh so assuming 50 crores in say 20 days if you 41:53 41 minutes, 53 seconds if you just do the math it could be like 160 170 crores on the quarter but then CCT is doing 600 crores approximately on 42:02 42 minutes, 2 seconds annual basis and we have a 53% state how are we adding about the entire turnover I I think uh for that you need to refer 42:11 42 minutes, 11 seconds to the the you know uh the right professionals because that's the as per the accounting standard this This is the 42:18 42 minutes, 18 seconds process. It's not our wish or anybody's uh likings to we have to just follow the uh the system set by the by the institute of standard accounts. 42:29 42 minutes, 29 seconds So we are so from my understanding is we are adding the entire CCD. 42:33 42 minutes, 33 seconds It's not about me. It's not about us or it's not a choice. It's not obl it's it's not a choice. It's obligatory to do that. That's the normal process. It's 42:41 42 minutes, 41 seconds not about uh yeah that's the normal way it works. 42:46 42 minutes, 46 seconds Thank you. Anerudal request to come back for a follow-up question. 42:52 42 minutes, 52 seconds Next follow-up question is from land of Hamsh Katar from Green Portfolio. Please go ahead. 42:57 42 minutes, 57 seconds Hello uh sin for taking my question. So my follow-up question is regarding uh first of all the capex. So what is the 43:06 43 minutes, 6 seconds capex that the company is expecting to incur in FY27 and 28? 43:13 43 minutes, 13 seconds Okay. So yeah uh you mean overall right for all these yes so you know recently as uh I did mention 43:22 43 minutes, 22 seconds now also that recently we have started uh last year only we have started oh no maybe in sorry this current financial only we have uh commissioned our new 43:30 43 minutes, 30 seconds plant amut plant which is one of the largest land parcels and the one of the best state-of-the-art investment which we have done recently 43:38 43 minutes, 38 seconds so that is also taking care of our requirements organically there can be little bit more requirements let's say 10 20 30 40 crores something like that 43:47 43 minutes, 47 seconds is not going to be massively required right now on the organic front so from the capex point this is something which I can tell you going forward uh as the 9 43:56 43 minutes, 56 seconds months was for the domestic demand was it was the muted demand muted growth reason being like I said about the US 44:03 44 minutes, 3 seconds and India so let us see how it fares in a couple of months and then we can always be ready with our new plants and new projects once we are able to utilize 44:12 44 minutes, 12 seconds the existing uh production capacities to an optimum level. 44:19 44 minutes, 19 seconds Okay. And and so follow question to that what is the current like I I understand that we commissioned a new plant in August only but what is the current 44:27 44 minutes, 27 seconds capacity utilization of uh the plant overall? 44:31 44 minutes, 31 seconds So if you talk about the uh overall capacity utilization of the entire company right now it is almost uh 64%. 44:40 44 minutes, 40 seconds And uh so that's uh so basically you know we were able to I I can say that you know we were able to increase uh 44:48 44 minutes, 48 seconds some of the product lines and have a better so this quarter the the volumes has gone up and in fact if you compare to the last year quarter there has been 44:55 44 minutes, 55 seconds a last year uh year-on-year basis quarter three there has been a almost 39% of uh increase in the volumes 45:03 45 minutes, 3 seconds so so I think the volumes are getting better now we need to get more and more excuse This is 39% excluding the oil 45:12 45 minutes, 12 seconds business or including no everything is included now. Oh included. Okay. 45:18 45 minutes, 18 seconds You know the best way to understand the company now would be on the console basis because there is a lot of action going on in the uh foreign subsidies uh 45:27 45 minutes, 27 seconds things like that. So I think we'll have to eventually get into the the format of understanding it on the on the totality. 45:35 45 minutes, 35 seconds Understood. And so just one last question from my side that uh I understand that our uh like focus has 45:42 45 minutes, 42 seconds moved more towards oil because of the recent acquisition and textiles because of the tailwinds that we are seeing in the industry but is there any update on 45:50 45 minutes, 50 seconds the water treatment chemicals like we had uh basically launched that product also but not seen an uptick in the 45:58 45 minutes, 58 seconds revenue so are you seeing any uptick moving forward in let's say FY 27 or maybe 28. See I'll tell you what is the 46:06 46 minutes, 6 seconds model of finite. So what we do typically is like we do polymerization sulfonation phosphonations and all the reactions 46:13 46 minutes, 13 seconds with different monomers. So what our uh you know model is that we wherever these 46:19 46 minutes, 19 seconds chemistries can have a outlay and a vertical we always try to focus on those businesses more and more. Now in oil 46:28 46 minutes, 28 seconds also you have similar kind of product lines you know the chemistry point of view. So that is the reason like oil, textile, water some of them are having 46:37 46 minutes, 37 seconds overlap technologies and that makes us very easy because when we are expanding our capacities we have economies of scale and coming to the water treatment 46:45 46 minutes, 45 seconds also. Yes, that business is also getting better and better. There's no doubt about it. There is a lot of interest coming in from many customers. We are 46:52 46 minutes, 52 seconds also going to tie up with some uh big companies going forward who are the the largest companies in water treatment in the world. So we were in Middle East 47:01 47 minutes, 1 second also last week in uh Saudi Kuwait and other countries. So there is a lot of things happening around in the water segment also. 47:11 47 minutes, 11 seconds Can can we expect a sizable revenue to come uh within next few years? 47:16 47 minutes, 16 seconds Yeah, definitely. Why not? I mean there is action going on all the fronts but everything doesn't need to happen on in one quarter. So every you know there's a lot of action going 47:25 47 minutes, 25 seconds on in some stages like like uh uh you know the drilling I mean the drilling is going well the oil and speciality we have already proven our 47:33 47 minutes, 33 seconds you know with the new CCT coming in this is what we have been promising our investors and we have delivered so this 47:40 47 minutes, 40 seconds is something which we are doing one by one and I think now the times have come this I think this is the best time I would also like to mention to you the by 47:48 47 minutes, 48 seconds when we took this decision of acquiring the controlling stake in crude came we the relations with us and tric were not 47:58 47 minutes, 58 seconds in the favor still we went ahead and we were sure that you know eventually things are going to shape up better so that was the time and we took the right 48:06 48 minutes, 6 seconds decisions and now we can see the getting much and much good tailwinds coming in in these sectors 48:15 48 minutes, 15 seconds thank you thank you so much thank you thank you Mr. 48:20 48 minutes, 20 seconds Thank you very much. We'll take that as a last question. I'll now hand the conference over to the management for closing comments. 48:31 48 minutes, 31 seconds Sanjay, I would like to make any closing comments. 48:32 48 minutes, 32 seconds Uh okay. So, yeah. Uh yeah, thank you participants. Uh thanks for your continued interest. 48:38 48 minutes, 38 seconds So, Pinotex team is always available to answer and give you some more insights. 48:42 48 minutes, 42 seconds I know a lot of questions must be still left out to be answered and uh yeah as I can understand because there are so many things happening in various industries 48:52 48 minutes, 52 seconds and also participants would like to know what's going on in textiles oil and gas. 48:56 48 minutes, 56 seconds So we'll try to be as helpful as we can in our informations. Uh but yeah thank you so much for your continued support 49:02 49 minutes, 2 seconds and trust in finanote and uh yeah so that's uh I just remain committed to creating long-term value for all of you. 49:10 49 minutes, 10 seconds Thank you so much. Over to you Vir. 49:13 49 minutes, 13 seconds Thank you very much. On behalf of Pinotex Chemical Limited, that concludes this conference. Thank you for joining us and you may now disconnect your lines. Thank you.