Gem Aromatics Limited — Q3 FY26

Gem Aromatics Ltd Q3 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=M0K1hX7ovp8 Published: 3 months ago

0:01 1 second Ladies and gentlemen, good day and welcome to the Q3 and 9 months FY26 conference call hosted by Jam Aromatics 0:08 8 seconds Limited. As a reminder, all participant lines will be in the listenerly mode and there will be an opportunity for you to ask questions after the presentation concludes. 0:19 19 seconds Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touchstone phone. I now hand the 0:28 28 seconds conference over to Mr. Akillesh Gandhi from Stellar. Thank you and over to you sir. 0:33 33 seconds Uh thank you Steve. Good evening everyone. I Akillesh Gandhi on behalf of Stella investor relations welcome you all to the gem aromatics quarter 3 and 9 0:42 42 seconds month FI26 earnings conference call. We shall be sharing the key operating and financial highlights for the third quarter and 9 month ended on December 31, 2025. 0:54 54 seconds Today we have with us the senior management team of Gem Aromatics Limited. We have Mr. Yash Parik he's the managing director and CEO with him we 1:01 1 minute, 1 second have Mrs. Kaksha Parrick she's a whole time director chairperson and CFO along with them we have Mr. Surat Sha he's a 1:08 1 minute, 8 seconds deputy CFO and Mr. Ajit Sha from CEO's office. Before we begin, I would like to state that this call may contain some of 1:16 1 minute, 16 seconds the forward-looking statements which are completely based upon company's beliefs, opinion, and expectation. As of today, 1:24 1 minute, 24 seconds the statements made in today's call are not a guarantee of future performance and also involve unforeseen risk and uncertainties. The company also 1:33 1 minute, 33 seconds undertakes no obligation to update any forward-looking statement to reflect development that occur after the statement is made. Documents related to 1:41 1 minute, 41 seconds company's financial performance including press release and investor presentation have already been uploaded on the stock exchange. I now invite Mr. 1:49 1 minute, 49 seconds Yash Parak to share his initial remarks on the company's performance for the quarter 3 and 9 month ended on December 31, 2025. Thank you and over to you. 2:01 2 minutes, 1 second Good evening everyone. Thank you for joining us today. On behalf of Gem Robomatics, I'd like to welcome all our 2:09 2 minutes, 9 seconds investors, in stakeholders to our quarter 3 and 9 month 26 earnings call. 2:18 2 minutes, 18 seconds We appreciate your continued interest and engagement with the company. Before we begin, I would like to thank our 2:26 2 minutes, 26 seconds investors, customers, partners, and employees for their continued trust and support. Your confidence encourages us 2:34 2 minutes, 34 seconds as we progress through the next phase of our growth journey. For those who may be joining us for the first time, Gem 2:42 2 minutes, 42 seconds Aromatics is a specialty ingredients manufacturer with integrated capabilities across mint, glow, phenol, 2:49 2 minutes, 49 seconds and other synthetic and natural chemistries. 2:52 2 minutes, 52 seconds We cater to global flavor, fragrance and personal care, as well as wellness, pharmaceuticals and allied industries. 2:59 2 minutes, 59 seconds We operate across four key product segments. Mint and mint derivatives, clove and clove derivatives, phenol and 3:08 3 minutes, 8 seconds anisol chemistries and other synthetic and natural ingredients. Our diversified portfolio in a comprises of 3:16 3 minutes, 16 seconds approximately 80 products enabling us to serve a wide range of end applications. 3:23 3 minutes, 23 seconds Our manufacturing footprint includes facilities at Talvasa, Vadayu, Uttar Pradesh and the Gujarat 3:32 3 minutes, 32 seconds supported by advanced process technologies and in-house research and development capabilities. 3:39 3 minutes, 39 seconds We currently serve more than 260 customers across 18 countries, including 3:46 3 minutes, 46 seconds leading flavor and fragrance houses and FMCG companies. Over the years, we have steadily expanded beyond a mink centric 3:55 3 minutes, 55 seconds business towards a more diversified and integrated specialty ingredients platform with a growing focus on higher 4:03 4 minutes, 3 seconds value products and sustainable manufacturing practices. 4:08 4 minutes, 8 seconds Coming to our performance for the quarter, gross margins improved during the quarter and are trending towards 4:14 4 minutes, 14 seconds normalized levels with IBIDA margins also showing improvement. supported by a 4:21 4 minutes, 21 seconds gradual recovery in mint prices and better customer alignment leading to improved order inquiries during Q3's FI26. 4:32 4 minutes, 32 seconds Lawnmint products such as Clover and its derivatives continue to grow in line with the company's diversification strategy. However, revenues remain 4:41 4 minutes, 41 seconds impacted by external headwinds including tariff related uncertainty and GST 4:48 4 minutes, 48 seconds related changes which continue to influence consumer procurement behavior and demand during the period. 4:56 4 minutes, 56 seconds During the quarter, we made significant progress at our green field deage facility which is a key pillar of our 5:03 5 minutes, 3 seconds long-term growth and diversification strategy. We commissioned the cooling agents vertical with WS23 5:11 5 minutes, 11 seconds and WS03 as well as the flow and eugenol verticals as of 11th December 2025. 5:21 5 minutes, 21 seconds The plant is currently in the stabilization phase and has successfully completed the first stage audits for 5:28 5 minutes, 28 seconds FFSC 22000 version 6 GHP HACCCP 5:34 5 minutes, 34 seconds ISO 901 14,0001 and 451 underscoring our focus 5:42 5 minutes, 42 seconds on building a globally compliant manufacturing platform. 5:47 5 minutes, 47 seconds The total capital expenditure for the BH facility is approximately rupees 270 crores of which around 250 crores has 5:55 5 minutes, 55 seconds already been incurred and largely capitalized. This facility will increase the company's total capacity by 6:02 6 minutes, 2 seconds approximately 16,000 MPa representing an effective PX expansion 6:09 6 minutes, 9 seconds in capacity. The site will have manufacturing capabilities across clove and clove derivatives, citrol 6:18 6 minutes, 18 seconds derivatives, phenol derivatives and cooling agents which we believe significantly strengthens our product portfolio and long-term growth platform. 6:28 6 minutes, 28 seconds We have successfully launched select products and are continuing to progress towards the next phase of commercialization across multiple 6:37 6 minutes, 37 seconds specialty chemistries. For phenol derivatives, catalyst pedration is currently underway and is expected to be completed by the end of Q4 and 526. 6:47 6 minutes, 47 seconds Following this trial production of anisol, MEHQ and boycol is planned for Q1 FI27 with a commercial scale up expected four successful trials. 6:58 6 minutes, 58 seconds Subsequently, additional downstream phenol derivatives such as formap and BHA are planned to be introduced in a phase manner. Further expanding the company's specialty chemical portfolio. 7:09 7 minutes, 9 seconds A key differentiator at the H is the adoption of our continuous flow technologies for phenol chemistries. 7:17 7 minutes, 17 seconds enabling the fluent free processing compared to conventional routes. This enhances product quality, 7:26 7 minutes, 26 seconds operational efficiency and environmental compliance particularly for the export markets. The strategic locations near 7:35 7 minutes, 35 seconds our raw material suppliers and the ports of Zera also provide logistical advantages optimizing raw material sourcing and export efficiency. 7:47 7 minutes, 47 seconds Pilot trials for central derivatives have been successfully completed with all necessary equipment now installed. 7:54 7 minutes, 54 seconds The company is gearing up for commercialization followed by a gradual ramp up of capacity. Overall, the H facility has 8:02 8 minutes, 2 seconds been designed as a flexible multi-purpose manufacturing platform enabling rapid product transitions, 8:10 8 minutes, 10 seconds faster commercialization cycles and improved asset utilization across multiple chemistries. 23 FI26 was a 8:19 8 minutes, 19 seconds milestone quarter for us with commissioning at the H, progress on diversification and early signs of margin normalization. 8:28 8 minutes, 28 seconds While external headwinds remain, we are encouraged by improving demand visibility and progress across product 8:35 8 minutes, 35 seconds pipeline. Looking ahead, we remain confident about the company's growth trajectory. We expect near-term 8:42 8 minutes, 42 seconds uncertainty to gradually ease which should support improved business momentum. At the H, we are unlaunching 8:51 8 minutes, 51 seconds new products and ramping up capacity utilization, which we believe will be the key growth driver of growth going forward. With an expanding product 8:59 8 minutes, 59 seconds portfolio, improving asset utilization and a strong focus on innovation, sustainability, we believe the company 9:07 9 minutes, 7 seconds is well positioned to deliver sustainable and profitable growth over the long term. The company is targeting 9:13 9 minutes, 13 seconds revenue of rupees 1050 to 1100 crores by FI28 with Ibida margins in the range of 16 to 18%. 9:23 9 minutes, 23 seconds I will now hand over the call to our chief financial officer for a detailed financial review. Thank you. 9:35 9 minutes, 35 seconds Thank you. Yes. Good evening everyone. I will briefly take you through our financial performance of QC, FYI26 and 9:43 9 minutes, 43 seconds 9month period. First on a standalone basis and then on a consolidated basis followed by a key drivers and outlook 9:51 9 minutes, 51 seconds for Q3 and 526 standalone revenue for from operations stood at rupees 83.9 crit 9:59 9 minutes, 59 seconds for the period was rupees 15.4 cr with a gross margin of 18.4%a 4%. Abita for the 10:07 10 minutes, 7 seconds period was 7.6 crores. An Abita margin of 9.1%. 10:14 10 minutes, 14 seconds Net profit for the period was 4.2 crores resulting in a PAT margin of 5% and cash 10:20 10 minutes, 20 seconds PAT stood at 6.2 crores. For 9 month FY26, standalone revenue from the operation stood at rupees 258.7 cr. 10:31 10 minutes, 31 seconds Gross profit for the period was rupes 48.3 cr with a gross margin of 18.7%. 10:38 10 minutes, 38 seconds Abita for the period was rupees 24.2 cr with anita margin of 9.4%. 10:45 10 minutes, 45 seconds Net profit for the period was 14.88 crores resulting into pat margin of 5.7% 10:51 10 minutes, 51 seconds and the cash stood at 19.8 crores. On a consolidated basis for Q3 FI26, revenue 10:59 10 minutes, 59 seconds from operations stood at rupees 78.9 crores. Gross profit for the quarter was 18.2 crores with a gross margin of 23%. 11:10 11 minutes, 10 seconds EITA for the quarter was 7 cr with an AITA margin of 8.9%. 11:16 11 minutes, 16 seconds Net loss for the quarter was rupes 5 cr and cash stood at rupees 3.7 cr for 9 11:24 11 minutes, 24 seconds month FI26 consolidated revenue from operations stood at rupees 2561 11:31 11 minutes, 31 seconds cr and gross profit for the period was rups 56.6 6 cr with a gross margin of 22.1%. 11:40 11 minutes, 40 seconds Abita for the period was rupees 24.9 cr with an AITA margin of 9.7% 11:46 11 minutes, 46 seconds and net profit for the period was rupees 0.4 cr resulting in a pat margin of 0.2% 11:54 11 minutes, 54 seconds and cash stood at rupees 14 cr. Coming to the business environment revenue 12:01 12 minutes, 1 second revenue during the Q3 FY26 and 9 month FYI26 was impacted by tariff related 12:08 12 minutes, 8 seconds uncertainties and GST GST related changes which led customers to adopt cautious procurement behavior and 12:16 12 minutes, 16 seconds optimize inventories. However, conditions is improved during Q3 FY26 with alignment of customers blending 12:25 12 minutes, 25 seconds requirements and leading to a better order inquiries supported by a gradual recovery in mint prices and growth in cloud and its derivative. 12:36 12 minutes, 36 seconds Uh coming to margin on a consolidated basis, gross profit margins improved from 14% to 23% and is trending towards 12:44 12 minutes, 44 seconds normalized levels while EITA margins improved from 3% to 9% on a quarteronquarter basis supported by 12:51 12 minutes, 51 seconds improving mint prices. on reported profitability profit profitability was impacted by higher depreciation of rupes 12:59 12 minutes, 59 seconds 8.7 cr which is a non-cash charge following capitalization of a large portion of the approximately rupees 250 13:06 13 minutes, 6 seconds cr incurred capex out of the total planned capex of around 270 cr at the dahage facility on the dahage facility 13:15 13 minutes, 15 seconds commercial production of WS23 and WS3 cooling agents along with cloud and eugenol commence at the green field dahage facility on 11 December 2025. 13:26 13 minutes, 26 seconds Contribution from DH remained limited in Q3 and 526 as operations were restricted to only approximately 20 days during the 13:35 13 minutes, 35 seconds quarter. We expect a more meaningful contribution from uh Q4 FI26 onwards as 13:42 13 minutes, 42 seconds new products are launched and capacity ramp up begins which should support higher utilization and improved revenue 13:49 13 minutes, 49 seconds and margin visibility overall. While the operating environment remained challenging, we are encouraged by improving pricing trends, stabilizing 13:58 13 minutes, 58 seconds demand and increasing contribution from non-ment products with the heat ramping up and a strong product pipeline. We 14:05 14 minutes, 5 seconds expect financial performance to improve gradually over the coming quarters. With that, we will open the floor for questions. Thank you. 14:15 14 minutes, 15 seconds Thank you very much. 14:18 14 minutes, 18 seconds We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on your touchstone telephone. 14:28 14 minutes, 28 seconds If you wish to remove yourself from the question queue, you may press star and two. 14:34 14 minutes, 34 seconds Participants are requested to limit the questions to two per participants. 14:41 14 minutes, 41 seconds Ladies and gentlemen, we will wait for a moment while the question Q assembles. 14:57 14 minutes, 57 seconds The first question comes from the line of Kamlesh Bhagmar with Lotus Asset Managers. Please go ahead. 15:06 15 minutes, 6 seconds Uh thanks for the opportunity. Uh yes, I had one question on the part of 15:12 15 minutes, 12 seconds margins like if I see standalone basis margins have improved by around 440. 15:18 15 minutes, 18 seconds Uh I'm sorry to interrupt. Uh Mr. Kesh could you please use your handset? Uh the voice is not coming clear. 15:25 15 minutes, 25 seconds Yeah. So I was uh uh asking that uh if we see the gross margin improvement in 15:32 15 minutes, 32 seconds standalone we have seen 438 dips order around quarteron quarter while on uh console basis we have seen a s rise 15:41 15 minutes, 41 seconds roughly around double of that. So what has drove that because uh I believe it it is more of a transfer pricing factor 15:50 15 minutes, 50 seconds or what has driven these particular margins right so thank you for the question so 15:58 15 minutes, 58 seconds so it's a mix it's actually improving realizations compared to Q2 and uh it's also coming in from our US subsidiary 16:07 16 minutes, 7 seconds which is GMLC where realization and demand to to the extent that some inventory has been exhausted with a few 16:15 16 minutes, 15 seconds customers. They've started ordering also at a slower pace. So that also helped realizations come up and end the margins. 16:24 16 minutes, 24 seconds Okay. And uh lastly on your guidance like say,50 to 1100 cr by fi 28 and with 16:32 16 minutes, 32 seconds a margins of healthy margins of 16 to 18%. So uh can you highlight the key drivers like how that would move like 16:40 16 minutes, 40 seconds what what contribution would be on the part of product makes realizations cost part. So if you can break it up in those 16:48 16 minutes, 48 seconds three or four buckets or efficiency improvement so that would be very helpful. 16:57 16 minutes, 57 seconds Thank you for the question. Yes, it's a combination of all the things that we have named which is the ramping up of our crystal unit which is focused much more on specialties. 17:08 17 minutes, 8 seconds It will also be automation that we have installed at our plants thereby bringing in efficiencies and also we uh envision 17:15 17 minutes, 15 seconds that now with uh the entire EU trade deal that has been signed of course the broader contours are only visible to all 17:22 17 minutes, 22 seconds of us but certainly we see this as a net positive uh between uh the flavor and fragrance companies incoming and uh 17:31 17 minutes, 31 seconds making this happen facility has been designed effectively with the capacities uh which are significant in nature. Uh 17:40 17 minutes, 40 seconds we are going to have uh much more downstreams there and as a result of which we are certainly going to be in a position to have a much better product 17:49 17 minutes, 49 seconds mix, much better optimization and also exploring more and more geographies. 17:55 17 minutes, 55 seconds Okay. But uh how do how are we seeing this particular phase out of the margins 18:02 18 minutes, 2 seconds or the improvement right from Q1 FI27 or how that flow out? What we see in say 18:09 18 minutes, 9 seconds mid of Q FI27 how how that would get like say phased out over the period of time. 18:17 18 minutes, 17 seconds So tough to kind of quantify that quarterly but I think Crystal has all margin accretive products as you go more downstream. So for example, cooling 18:25 18 minutes, 25 seconds agents and eugenol are even exempt today from tariffs of the US right now given these this production has started. So 18:34 18 minutes, 34 seconds tough to say whether it'll uh come from Q1 or Q2 but directionally I think we 18:41 18 minutes, 41 seconds are trying to ramp up crystal which contains margin accretative products and uh it's it's for us to execute and u please monitor that. 18:53 18 minutes, 53 seconds Great. Great and best of luck. Thanks for Thank you. And next question comes from 19:01 19 minutes, 1 second the line of Rohan Mata with FCOM family office. Please go ahead. 19:08 19 minutes, 8 seconds Hi. Thank you so much for the opportunity. Am I audible? Yes. 19:14 19 minutes, 14 seconds Perfect. So uh sir I wanted to understand uh are we currently producing uh menuran 19:23 19 minutes, 23 seconds uh as part of our min derivative segment and I firstly I wanted to understand a 19:30 19 minutes, 30 seconds uh what are the applications of this particular product and secondly what are the realizations for the for this product in dollars per. 19:40 19 minutes, 40 seconds So we do we do product uh produce this product uh mantairon specifically it's a specialty product that is used in mints 19:48 19 minutes, 48 seconds and depending on the type of manta purity and the different grades of which type of isomers it is the range effectively varies from something close 19:57 19 minutes, 57 seconds to so that's one of the products that we make and and there's a combination of 20:04 20 minutes, 4 seconds different isomes that we can make which really put the price in the out My apologies. I lost you on the pricing. 20:13 20 minutes, 13 seconds Uh, could you just surprise that? 20:14 20 minutes, 14 seconds No problem. Pricing could start from $80 a kg going up to 200 depending on the level of purities and the type of 20:22 20 minutes, 22 seconds product it is. So, it is on the isomer ratios. 20:28 20 minutes, 28 seconds Okay. Okay. And where are these specifically used? 20:32 20 minutes, 32 seconds So it is used it's a part of the mint value chain where effectively there is a product called mennta papriita where 20:40 20 minutes, 40 seconds menthapuron is naturally occurring out there and uh if the objective would be to a either synthesize it uh from a 20:49 20 minutes, 49 seconds synthetic route natural identical route or to extract it directly from a mentita which is a basic essential oil. So there are different ways and means and they 20:57 20 minutes, 57 seconds all all of them have a different objective. So the the clearcut would be to take this ingredient out of the mint 21:04 21 minutes, 4 seconds and then have a standalone isomer of it which again has an application in 21:10 21 minutes, 10 seconds flavors and fragrances at Got it. Got it. And currently how much capacity do we have to produce this? 21:19 21 minutes, 19 seconds It's a specialty product. Uh to be honest we are not it is something that is a part of the main portfolio. We don't give individual specific product 21:28 21 minutes, 28 seconds capacities but it's it's part of the mint portfolio and it complements whatever we're trying to do and and we continuously keep 21:36 21 minutes, 36 seconds working on on extracting components from the mint value chain of of uh essential 21:42 21 minutes, 42 seconds oils which are in absolutely uh if it is a it has if the individual ingredient 21:49 21 minutes, 49 seconds has a value in the world of flavors and fragrances our objective would be to extract it in the most cost effective manner 21:58 21 minutes, 58 seconds uh and then make it available to our customers. 22:04 22 minutes, 4 seconds Thank you. Uh Mr. Rowan, I would request you to please come back in the queue for further questions. 22:10 22 minutes, 10 seconds The next question comes from the line of Nishita with Sapphire Capital. Please go ahead. 22:17 22 minutes, 17 seconds Um yes. Hello. Oh, yes ma'am. Audible. 22:22 22 minutes, 22 seconds Yes. uh so I just had two questions one is on the margins so uh I just wanted to understand you know given a 16 to 18% a 22:31 22 minutes, 31 seconds margin target by FI28 so uh like can you give a sustainable mahajin in FI27 how where do you see the 22:39 22 minutes, 39 seconds margin in FI27 so thank you for that question Nisha uh 22:48 22 minutes, 48 seconds see so right now if you look at the margin that we've reported this quarter the better margin is close to 9%. now because crystal expenses are coming 22:57 22 minutes, 57 seconds through and the revenue revenues haven't uh begun to you know come in now as as the ramp up at crystal happens um you 23:06 23 minutes, 6 seconds know the the overall eeta margins would improve so with with a lot of moving parts tough to again give like I said it's tough to give a quarterly guidance 23:14 23 minutes, 14 seconds of or a yearly guidance which is why you want to stick to what we've said on the last call where we continue to believe that standing today as well we'll be 23:23 23 minutes, 23 seconds able to achieve FI28 numbers that we've guided for. 23:27 23 minutes, 27 seconds Right. So like when will we see crystal becoming part positive? 23:36 23 minutes, 36 seconds Right. So uh right. So I think again a lot of parts have to fall in place but 23:43 23 minutes, 43 seconds we we expect crystal to break even in the next year. 23:50 23 minutes, 50 seconds Okay. Okay. Understood. And uh my uh next question is on the facility the new DH facility how fast can we ramp this 23:58 23 minutes, 58 seconds facility to our peak utilization and what will be the revenue at peak utilization that we expect 24:06 24 minutes, 6 seconds right so so we we've um we so we've spent 250 odd crores on the H um some 20 24:15 24 minutes, 15 seconds 25 crores is left we are working with an asset asset turn of three times So uh and there is of course 30% free 24:24 24 minutes, 24 seconds space. So you know at at current uh expansion I think 150 to 800 course is what we can 24:33 24 minutes, 33 seconds reach in 2 to 3 years and um so so that's that your first question was sorry 24:41 24 minutes, 41 seconds how fast can we see that ramp up to like 70%. 24:45 24 minutes, 45 seconds Right. So um I think the goal is to have all products come in come online by like 24:52 24 minutes, 52 seconds Q1 of next year and then we we observe the you know we observe our uh execution 25:00 25 minutes and uh we expect like 50 to 60% by next year by next year end. 25:08 25 minutes, 8 seconds So when you say Q1 of next year you mean by Q1 of FI27 right? 25:14 25 minutes, 14 seconds Yes, Q1 of FI27 is well all our products will be online and 50 to 60% utilization by Q1 of FI28. 25:24 25 minutes, 24 seconds Yes, that's a good assumption. 25:25 25 minutes, 25 seconds And in 2 to 3 years we can reach the revenue of 150 to 180 crores. 25:31 25 minutes, 31 seconds Sorry one uh no I I meant uh we can reach the revenue of 750 to 800 crores in crystal which is like 3x the asset. 25:42 25 minutes, 42 seconds Yeah. 25:43 25 minutes, 43 seconds So like in 3 years out the somewhere in FY29 we can do that. Okay. 25:49 25 minutes, 49 seconds In crystal in crystal and from the facility how much what is the acet in the hage facility? 25:57 25 minutes, 57 seconds So ma'am I was uh referring to the dah facility which is crystal ingredient. 26:02 26 minutes, 2 seconds Okay only subsidiary. Yeah I was talking all along for the h only. 26:06 26 minutes, 6 seconds Okay. Okay. Thank you. Thank you for clarifying this. All the best. Thank you. 26:15 26 minutes, 15 seconds Thank you participants. If you wish to ask a question, you may press star and one. 26:23 26 minutes, 23 seconds The next question comes from the line of Janin with Swan Investments. Please go ahead. 26:29 26 minutes, 29 seconds Good evening sir and thank you for the opportunity. So just wanted to clarify you indicated that the crystal will be break even in the next financial year. 26:36 26 minutes, 36 seconds So what sort ofation you we are assuming that it will operate it 26:44 26 minutes, 44 seconds right? So uh so I meant uh hello Jimin thanks for the question I I meant cash break even because obviously there is 26:51 26 minutes, 51 seconds depreciation as well. So yeah, so like somewhere in the range of 45% is when 26:59 26 minutes, 59 seconds our calculations are we should break even at at like cash as soon as I I lost. 27:10 27 minutes, 10 seconds Yeah. Hello. Am I audible now? Yes. 27:13 27 minutes, 13 seconds Yeah. So I was saying I was referring to cash break even at roughly 45% or capacity utilization. We should reach that cash break even level by next year. 27:22 27 minutes, 22 seconds And you indicate that the three time asset turnover I mean 750 to 800 crores of a revenue over the next three years right it will be by 29 they will be operating at the rated capacity. 27:32 27 minutes, 32 seconds Yes. 27:34 27 minutes, 34 seconds So how shall one look at the existing facility operation because in the initial remarks Mr. Par indicated,50 to 27:42 27 minutes, 42 seconds 1100 cr of 16 margin. So how shall one look at the ramp up and the contribution from the ex existing facility and what 27:50 27 minutes, 50 seconds sorts of margin contribution one can get it from that? So you mean gem gem like oh yes so of course so what spoke about 27:59 27 minutes, 59 seconds in his opening remarks was uh on a conservative basis uh for 1100 crores u I was saying that at peak capacity 28:08 28 minutes, 8 seconds currently what so we are assuming a three three times asset turn now we are also moving club from gem to crystal so 28:16 28 minutes, 16 seconds we we will try to you know consolidate club and expand there depending on how capacities open up at gem and what 28:23 28 minutes, 23 seconds products we pick there. It could also vary accordingly. So, you know, it's the best estimate that we can make at this point. But um we'll have to see what 28:32 28 minutes, 32 seconds product we do when we move club from gem to crystal gradually. No because my question was coming from since at 28:40 28 minutes, 40 seconds Crystal which is the we are probably changing our products mix bringing some speciality fragrance out there having a 28:48 28 minutes, 48 seconds better margin as compared to our existing product mix which is and right so at currently if you look on the standalone last year also we did 28:56 28 minutes, 56 seconds near about 16 17 margin margin on a standalone basis. 29:00 29 minutes Yes. Now with the dah coming in and with the operating efficiency is much higher than the existing one don't you think we 29:08 29 minutes, 8 seconds should have a better margins at the console level once the capacity operated around 65 70%. 29:16 29 minutes, 16 seconds That's that's a fair assumption to have Jatin. We've just factored in. So the way we uh look at this is given the 29:23 29 minutes, 23 seconds uncertainties right now assuming all remains as is and this is the bare minimum which you know we are guiding 29:30 29 minutes, 30 seconds at. Of course uh what whatever you laid down in your uh explanation made sense. 29:37 29 minutes, 37 seconds So it's fair to expect that. 29:40 29 minutes, 40 seconds Thank you. That's all from my side and all the best. 29:46 29 minutes, 46 seconds The next question comes from the line of Disha with IFL Capital Services. Please go ahead. 29:53 29 minutes, 53 seconds Hi, thank you so much for the opportunity. Am I audible? Hello. 30:01 30 minutes, 1 second Yes. 30:04 30 minutes, 4 seconds Uh okay. So my first question is on the phenol derivative business. Uh as we 30:10 30 minutes, 10 seconds know is one of the key ingredients. Do we intend to manufacture it inhouse or uh source it locally? 30:20 30 minutes, 20 seconds So at this stage of course while we are ramping up the entire uh unit we have a clean vapor phase based technology that 30:26 30 minutes, 26 seconds is ready to go for anisol and our intent is to manufacture and produce the anisol in house 30:34 30 minutes, 34 seconds to go ahead and give us the necessary cost competitive advantages for going downstream from there towards MEHQL 30:41 30 minutes, 41 seconds and then eventually BHA as well as there are other products such as formap and anthol that we are going to be using for manisol as a base 30:48 30 minutes, 48 seconds right Um and another question uh on the same line uh as we know um in MEHQ we 30:56 30 minutes, 56 seconds already have legacy players like team Sway and now even entering the business how do we intend 31:04 31 minutes, 4 seconds to compete and how do we see the market going ahead the demand and also uh we've seen some softening and realization so 31:12 31 minutes, 12 seconds how do we expect the overall market to uh grow from here great so uh we are convinced about our 31:20 31 minutes, 20 seconds technology or what we have invested in a thorough backward integration starting from Anisol. Some of the names that you 31:28 31 minutes, 28 seconds have mentioned do not really follow the Anisol path. Some do, some don't. But we are confident of our technology. We have connected and our plant is currently 31:36 31 minutes, 36 seconds under approvals by a handful of majors uh who are big consumers worldwide of these products. And as our capacity is 31:46 31 minutes, 46 seconds ready to go, we envisge that there should be not a significant challenge in selling what we are producing out here. 31:53 31 minutes, 53 seconds In addition to that even in some of the downstreams such as from the anisol vertical we are going towards anthol and 32:01 32 minutes, 1 second from the glycol vertical we are forward integrating into other FNF products which are kind of unique to some of the names that you have mentioned out here 32:09 32 minutes, 9 seconds and these are much more downstream derivatives that are focused upon the flavor and fragrance industry. So that's also a differentiation and it's also 32:17 32 minutes, 17 seconds margin accritive. So that's where we are based on our surveys and the the journey we are on so far. We don't envisage the challenge in selling these products. 32:28 32 minutes, 28 seconds So these are going to be uh export focused or uh domestic combination of both but more focus would 32:36 32 minutes, 36 seconds be heavier towards exports and uh are we going to follow a contracted volume basis or just um sell 32:45 32 minutes, 45 seconds in open markets? Have we uh do we have anything on that? 32:49 32 minutes, 49 seconds Sure. So for when we starting out any product, the first goal is towards selling these towards distributors and traders worldwide because those are kind 32:58 32 minutes, 58 seconds of the easiest doors to knock and they will open fast if the quality and the pricing and other points match. Well, of 33:04 33 minutes, 4 seconds course, uh the intent in long term is to clearly get our product approved with global measures who also want to see the 33:12 33 minutes, 12 seconds stability records uh the consistent performance all of that is in place. So in the first couple years we see more of 33:20 33 minutes, 20 seconds traders and distributors coming with bulk of the orders but certainly and with some with minor coming from the big majors but then towards year two and 33:28 33 minutes, 28 seconds year three we certainly see the big end consumers really coming on board and then picking majority of the volume. 33:36 33 minutes, 36 seconds Right. So you mentioned in one Q FY27 is when your capacity is going to be coming 33:42 33 minutes, 42 seconds online for NHQ and call. uh what uh is the size of uh these two combined or if 33:49 33 minutes, 49 seconds you can give me product wise that would be helpful. 33:53 33 minutes, 53 seconds So you're talking about productwise capacity. I'm sorry your line was not very clear. If you could repeat the question please. 33:58 33 minutes, 58 seconds Yes. Yes. Um I wanted productwise capacity if you could if that's possible. 34:03 34 minutes, 3 seconds So it is we of course know the product wise capacities but we are not giving that out as a part of uh our strategy. 34:10 34 minutes, 10 seconds So at this stage uh we'll not be able to provide that. Okay. No problem. That's all from mine. Thank you and all the best. 34:18 34 minutes, 18 seconds Thank you. 34:20 34 minutes, 20 seconds Thank you. Ladies and gentlemen, if you wish to ask a question, you will press star and one. The next question comes 34:28 34 minutes, 28 seconds from the line of Nikil Oswall with Oswall Investments. Please go ahead. 34:34 34 minutes, 34 seconds Hello. Good evening sir. Uh so I think one of the previous participants asked this question but uh the line was pretty patchy so I couldn't hear it. I just 34:43 34 minutes, 43 seconds want to know what is the estimated peak revenue from the new age facility is that around 750 crores and the margin 34:49 34 minutes, 49 seconds profile correct. Hi so yeah so we so we've 34:57 34 minutes, 57 seconds considered an asset return of three times and there is 30% free space after that. So we've spent closer to 250 35:05 35 minutes, 5 seconds crores. So with this current uh capacity we can do a peak of 750 to 800 crores by 35:12 35 minutes, 12 seconds FI29 is is our assumption at peak and then we'll we'll see how I mean we get because it's an 85% multi-purpose plant. 35:20 35 minutes, 20 seconds So depending on which product gets more traction we could uh uh you know utilize the facility that way and accordingly 35:27 35 minutes, 27 seconds see with minimal capex uh how do you kind of completely optimize it uh see on 35:34 35 minutes, 34 seconds margins like we've been alluding to that crystal as a plant the products that we've selected are all margin accreative than the current products that we deal 35:42 35 minutes, 42 seconds in so yeah so blended I think yeah it's it's it should should do better margins 35:50 35 minutes, 50 seconds Okay sir. And uh so what the ramp up what you expecting next year is around 4550% right? Yeah. 35:58 35 minutes, 58 seconds Okay. Okay sir. Thank you. 36:04 36 minutes, 4 seconds Thank you. The next question comes from the line of Vanesha with TCD. Please go ahead. 36:12 36 minutes, 12 seconds Uh yeah good evening sir. Uh I wanted to ask sir uh any implications you know any export opportunities that you have from 36:19 36 minutes, 19 seconds Europe or uh this FDA or then uh again uh USA uh because USA the tariffs are so 36:27 36 minutes, 27 seconds high. So what what exactly is the current contribution from USA and how do you see uh forward? Thank you. 36:36 36 minutes, 36 seconds So uh there are two questions in it. So first of course uh what you're mentioning about Europe we are 36:43 36 minutes, 43 seconds continuously increasing our focus on territories outside the US to kind of 36:50 36 minutes, 50 seconds have a much more open basket uh of products and markets to serve. So 36:57 36 minutes, 57 seconds far as of FI25 a large portion of our exports almost 60% of our total exports was to the US 37:06 37 minutes, 6 seconds market and majority of it as you rightly mentioned is under tariffs and that is also clearly being reflected in some of 37:14 37 minutes, 14 seconds the pains that we are seeing where customers have accepted to purchase the product with the tariffs but they are exhausting their ex in 37:22 37 minutes, 22 seconds complete inventory and we do see some of the are coming back but clearly there is there is that that's the reason why the 37:29 37 minutes, 29 seconds pain is currently there. Now as we go into the next generation products which are a crystal like it was mentioned by 37:38 37 minutes, 38 seconds uh our team briefly on this call a majority of those products are actually tariff exempt that's point number one 37:46 37 minutes, 46 seconds for the US bank and we certainly are hopeful that once the tariffs in US as being it is being suggested by recent 37:53 37 minutes, 53 seconds media reports there could be a potential trade deal or at least the reduction of the 25% Russian penalty we will certainly see a much more positive turn towards export into the US market. 38:05 38 minutes, 5 seconds That's one. Now coming to the Europe session. Now as this happened the endeavor was to start expanding in other 38:12 38 minutes, 12 seconds territories. Europe is a major flavor and fragrance hub for the world and uh 38:20 38 minutes, 20 seconds our uh objective is to have a fairly significant exposure in the European markets based on the media reports that 38:29 38 minutes, 29 seconds are currently there about the India EU trade deal happening. Of course the broader contours are going to be finalized over the next few months by 38:37 38 minutes, 37 seconds the governments of both the countries but definitely it is a significant positive and uh for our industry of flavors and fragrances. 38:48 38 minutes, 48 seconds Uh so uh I wanted to one ask one more question that out of the total revenue that you have uh what is the recurring 38:56 38 minutes, 56 seconds revenue you know from the sticky customers who don't prefer to change the uh fragrance or flavor provider uh you 39:04 39 minutes, 4 seconds know who remain with your company. So what is the proportion of that business in terms of percentage if you can just mention? 39:13 39 minutes, 13 seconds So, so a large portion of our business is with sticky customers and this portfol 39:20 39 minutes, 20 seconds uh the numbers of the top five customers pretty much have not changed in the last decade or so because uh once your 39:30 39 minutes, 30 seconds ingredients are approved in their composition, it becomes very difficult for them to onboard someone else and 39:37 39 minutes, 37 seconds bring them on. So of course the numbers within within the top five may change year on year depending on different factors but largely the top five customer profile has stayed the same. 39:50 39 minutes, 50 seconds Thank you. That would be all. Thank you and that's thank you. 39:57 39 minutes, 57 seconds Thank you. The next question comes from the line of Sai Ganesh with Square 64 Capital Advisers. Please go ahead. 40:07 40 minutes, 7 seconds Yeah. Thank you for the question. Am I audible? Yes, please go ahead. Hello. Yes. 40:14 40 minutes, 14 seconds Okay. What will be the capacity duration for our 9,000 metric capacity at Could you please repeat the question? 40:25 40 minutes, 25 seconds What would be the capac 40:35 40 minutes, 35 seconds your line was not clear. Could you please repeat again? Is it clear now sir? Uh yes please go ahead. 40:43 40 minutes, 43 seconds What will be the capacity bifertation for our new 9,000 odd metric capacity at the right? 40:54 40 minutes, 54 seconds So so like yes mentioned earlier on the call we're not uh breaking down the capacities by product. 41:04 41 minutes, 4 seconds Okay. And how will the working capital cycle looking for digital given that our 41:11 41 minutes, 11 seconds current business typically requires 45% of revenue as working capital right so see uh initially while we ramp 41:21 41 minutes, 21 seconds up crystal of course we load load up more inventory so that you know you have adequate stock before you can go and start selling to those large customers 41:29 41 minutes, 29 seconds but given the nature of products like for example phenol derivatives citral derivatives uh for that matter even club and eugenol and for the derivatives 41:38 41 minutes, 38 seconds would not require us to carry so much inventory because uh they're easily available. So from that sense our 41:45 41 minutes, 45 seconds inventory days should come down and um on data days we are actively 41:51 41 minutes, 51 seconds uh you know evaluating off balance sheet alternatives like factoring which we've also implemented in the last quarter 41:59 41 minutes, 59 seconds from um for two of our customers. So while we do all of this we look at the overall working capital cycle to get 42:06 42 minutes, 6 seconds better so cash moves faster and we become more efficient but that's how you should look at okay broad sense you can 42:14 42 minutes, 14 seconds give like yeah in FI28 you have ded,50 or gross revenue how you working capital 42:25 42 minutes, 25 seconds no I think tough to give that three years out from a working from a balance sheet standpoint uh but the but the endeavor is to um you know um bring it 42:34 42 minutes, 34 seconds down both on inventory and and receivables but I think let's let's observe for a few more quarters of how that shapes up before we can comment. 42:45 42 minutes, 45 seconds Okay. And you talked about the current estimated bill. What are current current duties applicable on Indian export for to Europe for our products? 43:00 43 minutes You could repeat that question. S Ganesh. 43:03 43 minutes, 3 seconds Yes. What are the current duties applicable on Indian exports to Europe for our products currently? 43:11 43 minutes, 11 seconds So for if we have heard the question correctly what I what you mean to ask is what is the current duties in Europe for our product. 43:19 43 minutes, 19 seconds Yes. So we as as we mentioned in the beginning of this particular uh call there are about close to 80 products that we have. Each one clearly has a 43:28 43 minutes, 28 seconds different uh import tax as it stands today and uh we would need to kind of evaluate this uh 43:36 43 minutes, 36 seconds on a much more holistic level once the EU trade deal really uh the contours of those trade deals are much more visible to all of us and then come back uh if 43:45 43 minutes, 45 seconds that's where your question is eventually leading which is how will the EU trade deal really impact. 43:51 43 minutes, 51 seconds Yes sir. Thank you sir. That's what the answer is. 43:56 43 minutes, 56 seconds Thank you. The next question comes from the line of Pratik Kulkarni with Kosh Wealth Management. Please go ahead. 44:06 44 minutes, 6 seconds Hello sir. Thank you for the opportunity. Um uh sorry to interrupt Mr. Pratik. Uh you're not audible. Well, could you please use your handset? 44:16 44 minutes, 16 seconds Uh hello. Am I audible right now? 44:21 44 minutes, 21 seconds Uh not quite well, sir. Could you please come closer to the mic? Hello. Uh is it okay now? 44:30 44 minutes, 30 seconds Yeah, please go ahead. 44:32 44 minutes, 32 seconds Yeah. Uh I just wanted an update on like uh last uh two quarters we have been facing issues on uh tariffs and uh last 44:41 44 minutes, 41 seconds quarter also there was one issue regarding the GST division where our product often domestic market wasn't uh 44:48 44 minutes, 48 seconds encouraging. So you have given the updates on the tariff issue but uh what are the updates on the GST issue which we faced last quarter? 44:58 44 minutes, 58 seconds Sure. So uh largely the answer to the GST is that this is uh something which 45:06 45 minutes, 6 seconds is far more uh with the unorganized and fragmented smaller suppliers and smaller customers where price is the only consideration. 45:16 45 minutes, 16 seconds We feel that the GST issue is here to stay for some time. Okay. Thank you. 45:22 45 minutes, 22 seconds I just I just want to add to what Yas said. So on demand what we are seeing is on the last call we what we observed is 45:31 45 minutes, 31 seconds that companies were reworking their formulations as they had to adjust to the two rate structure right on on uh 45:38 45 minutes, 38 seconds mentor which is a starting point. So, so the observation is that the that clarity has emerged. People have understood that 45:46 45 minutes, 46 seconds to be the new normal and they've adjusted their um blend requirements. 45:52 45 minutes, 52 seconds So, we see like green shoots in demand coming from there. And what was alluding to is the other part where uh a few 46:00 46 minutes players would only have price as a factor. So there you know obviously there's um uh that that part hasn't 46:08 46 minutes, 8 seconds improved but we see that that clarity has emerged with the buyers where now I think they've understood that there are 46:15 46 minutes, 15 seconds two different rate structures and uh they've uh they work with the blend requirements and that demand has started to come back. 46:25 46 minutes, 25 seconds Okay sir. Thank you. Thank you. 46:34 46 minutes, 34 seconds The next question comes from the line of Axa Deo with Nish. Please go ahead. 46:41 46 minutes, 41 seconds Yeah. Hello. Yes ma'am. 46:45 46 minutes, 45 seconds Okay. So there are two things I want you to know from Yeshu. I want you to know more on the cooling agent side. What is 46:52 46 minutes, 52 seconds the update there? that was finding metric capacity and uh I think that was 46:59 46 minutes, 59 seconds a good customer also who was expected to come in. So has that happened and second I wanted to know more on the new front 47:07 47 minutes, 7 seconds side because Q4 is typically where most of the order gets booked for the company. So how are we facing how are we expecting that to come up? 47:19 47 minutes, 19 seconds Okay, thank you. So I'll answer the first part of the question uh which is about cooling agents. Yes. 47:25 47 minutes, 25 seconds Uh large customers have uh reached out there are multiple stage audits that they undertake. So the 47:33 47 minutes, 33 seconds first stage of the audits have successfully been completed. Now as the production ramps because they really want to see three to five production 47:41 47 minutes, 41 seconds batches and then they come in for a follow-up audit and as that has happening we are that's also been scheduled. We expect that those orders 47:49 47 minutes, 49 seconds to be completed hopefully by March and April and post which we would start seeing a ramp up in the sales to large 47:57 47 minutes, 57 seconds institutional customers for specifically the cooling region range. That's the question number one. Second is in Q4. 48:04 48 minutes, 4 seconds Yes, historically Q4 of the financial year from January to March has been always the strongest quarter for the 48:12 48 minutes, 12 seconds company and a large portion of that is from the United States and from the exports. So that is also one area where 48:20 48 minutes, 20 seconds we are seeing now an uptick because majority of the inventories have been utilized by our uh customers over Q2 and 48:29 48 minutes, 29 seconds Q3 and much more inquiries and those order flows are expected to come in in Q4. 48:38 48 minutes, 38 seconds Do we believe that we'll be able to maintain the numbers that we did last year or we should expect some amount of 48:47 48 minutes, 47 seconds uh you know these groups Q1 Q and Q4 as well? 48:52 48 minutes, 52 seconds It's tough to say to be honest at this stage considering there are there are far more modalities out here plus uh also if we are exporting in the months 49:00 49 minutes of February and March of the India's uh accounting practices it will not reach most likely the American people. So even 49:08 49 minutes, 8 seconds that would not be factor in this is a part of the revenue directly at the end of March 31st to 14 but the inquiries that the order flows are certainly much 49:16 49 minutes, 16 seconds higher than what they have been sequentially over Q2 and Q3. 49:22 49 minutes, 22 seconds Okay. Okay. Considering uh that tariffs have been there for almost a year now I think we have to adjust for normalizing 49:32 49 minutes, 32 seconds that this is the environment and whenever it happens it happens. But as a risk mitigation uh are there any 49:39 49 minutes, 39 seconds strategies that uh you know we were able to implement uh throughout? 49:43 49 minutes, 43 seconds Yes. So we have been able to implement and we are working actively on pursuing uh a number of strategies because our 49:51 49 minutes, 51 seconds ingredients go into flavors and fragrances. There is significant amount of due diligence that is required on any 50:00 50 minutes US plus1 strategy where the value addition criterias need to be met as well as the production fac uh facilities 50:09 50 minutes, 9 seconds need to be of a certain standard and even our end customers who are large institutional buyers would need to come and approve those third party facilities 50:18 50 minutes, 18 seconds that we'll be effectively uh taking on lease or renting them out or or contracting them. So it's a it's a 50:25 50 minutes, 25 seconds fairly long due diligence process where we are sending the intermediates is going out there. There's a certain 50:32 50 minutes, 32 seconds degree of manufacturing as per that respected country where the finished goods are going to be finally met considering all the compliances and the 50:41 50 minutes, 41 seconds valuation norms are being met and then fi also approved by the customer where they have to come in and check the facility out and then it goes into 50:49 50 minutes, 49 seconds there. So it's it's a long cycle. We've done a lot of work to do this but clearly the headwinds from a standpoint 50:57 50 minutes, 57 seconds of changing global scenarios by the current uh geopolitics that is that we see also makes it very challenging but 51:05 51 minutes, 5 seconds we are working on a on a dual one uh US plus one strategy from the standpoint of getting that even if the tariffs stay as 51:14 51 minutes, 14 seconds they are we are cognizant of this and we're taking all the necessary steps to ensure that it no longer becomes a major 51:21 51 minutes, 21 seconds hook. quarters in the coming quarters and GST. 51:29 51 minutes, 29 seconds Uh I'm sorry to interrupt. Uh ma'am, I would request you to please come back in the queue for further questions. Yeah, thank you. 51:38 51 minutes, 38 seconds The next question comes from the line of Daran Gag with Tiger Assets. Please go ahead. 51:46 51 minutes, 46 seconds Hello. Hello. Yeah. Hi sir. Sir uh we have given the guidance of FI28 of 1100 51:53 51 minutes, 53 seconds odd crores with 16 to 18% margins. Sir as you know a statement was made that uh 52:00 52 minutes in Q1 by Q128 the H plant will reach 50% utilization. 52:06 52 minutes, 6 seconds So sir uh do we see this ramp up happening quickly from the budau plant where you know from 320 odd kores of annual topline to 700 kores over a period of next two years is possible. 52:19 52 minutes, 19 seconds So could you please repeat the question sorry uh yeah I know no problem sir am I audible now? Yeah. 52:28 52 minutes, 28 seconds Yeah. So sir, we have given the guidance of 1100 crores uh by FI28 with 16 to 18% 52:36 52 minutes, 36 seconds a bit margins I believe. So with the the H plant ramping up 50% utilization by Q1 52:44 52 minutes, 44 seconds or Q2 FI28. So that comes out at around 400 odd kores. Uh will we see do the 52:51 52 minutes, 51 seconds Bodau plan ramp up from current 80 K topline to you know close to around 130 or to 140 K quarter topline in a period 52:59 52 minutes, 59 seconds of next two years alone is not going to be from 350 it's 53:09 53 minutes, 9 seconds not going to take up to sorry ma'am I'm not able to hear your voice your voice is not audible 53:15 53 minutes, 15 seconds yeah hello can you hear it me now is it audible Yeah. So if we've understood this rightly, the Ballayu plant is 350 400 K 53:25 53 minutes, 25 seconds and the rest will come up from crystal ingredients. It's not going to be ramping up from bad itself. So if that if I understood and answered your 53:34 53 minutes, 34 seconds question correctly correct but ma'am previously there was this mention that by Q1 FI28 the the H plant will reach 50% utilization. 53:45 53 minutes, 45 seconds So will we be able to ramp up it to 100% in the in FI28 itself? No. 53:52 53 minutes, 52 seconds So I think it wasn't Q1 FI28 50%. So there were multiple questions on peak revenue capacity and all that right but 53:59 53 minutes, 59 seconds so the way see so if I have to lay down as we stand today how that 1100 cr may look like and this can change of course 54:08 54 minutes, 8 seconds given uh but our sense is it still would be like 650 to 700 the balance would be 54:15 54 minutes, 15 seconds gem but again there's a factor if if you're able to move a lot of clubs from gem to crystal then gem could be higher 54:24 54 minutes, 24 seconds so the I mean but that is how the split will look as of now. 54:30 54 minutes, 30 seconds Okay. And how much of the crystal revenue is dependent on US markets? 54:35 54 minutes, 35 seconds Right. So crystal see so we are doing if I have to break it into four broad categories cooling agents derivatives 54:43 54 minutes, 43 seconds club and um I'm sorry I lost your lost your voice. Yes. 54:56 54 minutes, 56 seconds Sorry to interrupt. The management line has been disconnected. Please wait while we reconnect them. 55:13 55 minutes, 13 seconds Never. 56:21 56 minutes, 21 seconds Ladies and gentlemen, the line for the management has been reconnected. Uh, yes sir, please proceed. 56:28 56 minutes, 28 seconds Yes. So, um, yeah. So dash does that answer your question of the split? 56:34 56 minutes, 34 seconds Sir, we were not able to hear you. Your voice completely sir. So I'm saying that the 1100 cr that we talk about the split that we see is 56:43 56 minutes, 43 seconds 700 by crystal and 400 order by gem and I was telling you you sorry you were asking how many products we are 56:49 56 minutes, 49 seconds dependent on the US. So cooling agents is exempt from tariffs per annex 2. 56:57 56 minutes, 57 seconds Eugenol is exempt from US tariffs. Petra derivatives is largely an import substitution play and phenol derivatives 57:05 57 minutes, 5 seconds is also a mix between domestic and export but non US. 57:11 57 minutes, 11 seconds Okay. Okay. Fair enough. So sir uh right now by gem in gem we are doing 4 320 odd 57:19 57 minutes, 19 seconds kores of annual topline considering the Q2 and Q3 run rate. So, uh, the ramp up of 400 kores, isn't it a very conservative target coming by by FI28? 57:31 57 minutes, 31 seconds No, no. So, again, so I'm not looking at see this year, uh, have to understand that it is affected by tariffs, right? 57:39 57 minutes, 39 seconds Two quarters. M so tough to look at current best thing and then what I mean is that from a revenue split standpoint because there 57:46 57 minutes, 46 seconds is a product vertical which we gradually moving and we will have to refill that and something else would make up and 57:53 57 minutes, 53 seconds reach 400. So those that's the moving part which is why we kind of talk consolidated because you want to see how 58:00 58 minutes this shapes up and a few decisions would be made as we get more customers as we get traction on a few products but uh 58:10 58 minutes, 10 seconds this is the best estimate you can have you know three years out thank you sir 58:18 58 minutes, 18 seconds ladies and gentlemen that was the last question for today I now hand the conference over to Mr. Yes, Parik for closing comments. 58:28 58 minutes, 28 seconds Thank you. Thank you all for your questions and for continued interest in the company. We remain confident about 58:35 58 minutes, 35 seconds our growth trajectory and are encouraged by the progress we are making on diversification capacity ramp up at the 58:42 58 minutes, 42 seconds H and improving demand visibility. We expect near-terms uncertainties to gradually ease which should support 58:51 58 minutes, 51 seconds improved business momentum with an expanding product portfolio, improving asset utilization 58:59 58 minutes, 59 seconds and a strong focus on innovation and sustainability. 59:04 59 minutes, 4 seconds We believe we are well positioned to deliver sustainable and profitable growth over the long term. The company 59:13 59 minutes, 13 seconds is targeting revenue of 1050 to 1100 crores by FI28 with an addenda margin in 59:21 59 minutes, 21 seconds the range of 16 to 18%. If you have any further questions or require additional information, please feel free to get in 59:29 59 minutes, 29 seconds touch with our investor relations team at Stellar Investor relations. Thank you once again for joining the call and for your continued support. 59:41 59 minutes, 41 seconds Thank you. 59:43 59 minutes, 43 seconds Thank you on behalf of Gem Aromatics Limited. That concludes this conference. 59:49 59 minutes, 49 seconds Thank you for joining us and you may now disconnect your lines.