GHCL Limited — Q4 FY26

GHCL Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=szfsOUwIf-Y Published: 8 days ago

0:01 1 second Ladies and gentlemen, good day and welcome to GHCL's Q4 FI26 conference call hosted by MK Global Financial 0:09 9 seconds Services Limited. As a reminder, all participant lines will be in the listenonly mode and there will be an opportunity for you to ask questions 0:17 17 seconds after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing start and zero on 0:25 25 seconds your touchstone phone. I now hand the conference over to Mr. Bura MK Global Financial Services Limited. Thank you and over to you. 0:35 35 seconds Thank you. Good evening everyone. Thank you for joining us on GCL's Q4 FI26 results conference call. I would like to 0:43 43 seconds welcome the management and thank them for giving us this opportunity to host them. We have with us today Mr. RS Jaran, managing director, Mr. Raman 0:52 52 seconds Chopra, CFO and executive director of finance, Mr. Manu Jen, senior general manager, investor relations and finance. 0:59 59 seconds Before we begin this call, I would like to point out that some statements made in this call may be forward-looking and a disclaimer to this effect has been included in the earnings presentation 1:08 1 minute, 8 seconds shared with you earlier. I shall now hand over the call to the management for their opening remarks. Thank you and over to you sir. 1:16 1 minute, 16 seconds Thank you mate. Uh good evening everyone. Uh I'm very warm welcome to the GSL Q4 and full year of FY26 earning 1:24 1 minute, 24 seconds call. Our results and investor presentation has been published and I trust you have the opportunity to review them. 1:33 1 minute, 33 seconds Let me begin with the industry landscape. Global solar markets continues to be face headwinds with 1:40 1 minute, 40 seconds supply broadly exceeding demand and prices remaining under pressure. It is worth noting that the current pricing 1:47 1 minute, 47 seconds environment is a continuation of a cycle that has been playing out over the past two to three years. 1:55 1 minute, 55 seconds Through this period, GSL operational and cost parameters have remained intact. 2:00 2 minutes The net net impact has been felt only on pricing and we believe our lowcost 2:07 2 minutes, 7 seconds foundation positions us to the among the first to benefit as and when pricing recovers. China's demand recovery has 2:16 2 minutes, 16 seconds been slower than anticipated and this continues to weigh on the global market sentiments. Chinese inventory remain 2:23 2 minutes, 23 seconds elevated and while we are beginning to see early sign signals of capacity rationalization including maintenance 2:31 2 minutes, 31 seconds closures and financial stress among older synthetic producers meaningful supply reduction remains some time away 2:39 2 minutes, 39 seconds adding a new layer of complexity the conflict between US and Iran has introduced a meaningful uncertaintity 2:47 2 minutes, 47 seconds into global energy and markets we are seeing the effect of resulting in a higher energy and input cost and 2:54 2 minutes, 54 seconds elevated shipping expenses with supply chain disruptions in the Indian domestic market. The price is 3:03 3 minutes, 3 seconds however more picture is more uh more constructive. Indian demand continues to grow at the healthy pace and we are 3:12 3 minutes, 12 seconds encouraged by the momentum we see across key end segments particularly in solar glass where capity additions are 3:20 3 minutes, 20 seconds creating a sustained and visible demand tailwind for sodas. We estimate incremental lo dense uh sodas demand 3:29 3 minutes, 29 seconds from solar glass units ramping up in the range of several thousand tons per month with further upside as new capacity comes online. 3:39 3 minutes, 39 seconds Interestingly the same geop geopolitical dynamics that has pressured cost have also had a moderating effect on import 3:47 3 minutes, 47 seconds flow into India. Higher shipping cost has made imports comparatively less competitive. This has helped us in uh in 3:57 3 minutes, 57 seconds easing the inventory level in domestic market and provided some support to the domestic realization. On balance, while 4:04 4 minutes, 4 seconds input cost has risen, domestic prices has also firmed up and we believe that the worst of the pricing pressure may be 4:10 4 minutes, 10 seconds behind us. The Indian market appear to be approaching an inflection point. I must say that we have remained focused 4:19 4 minutes, 19 seconds on our cost discipline and operational efficiencies in what continues to be seen a demanding environment 4:27 4 minutes, 27 seconds where cost increase including elevated shipping and energy cost have been unavoidable. We have moved to pass these 4:35 4 minutes, 35 seconds through to customers in the transparent manner. Additionally, rupee depreciation has also provided a degree of natural 4:42 4 minutes, 42 seconds protection to Indian producers particularly offsetting the landed cost pressure from import. Our fundamental 4:49 4 minutes, 49 seconds including cash generation, customer relationship and operating excellence remain intact. Our focus remain on what 4:57 4 minutes, 57 seconds is within our control on our growth initiative. Our bromine and vacuum salt project are in their 5:05 5 minutes, 5 seconds final stages and the first lead has already been commissioned. We expect full commissioning to take place in Q1 5:13 5 minutes, 13 seconds FY27. The progress made is substantive and we remain confident in the near terms of personalization of these 5:20 5 minutes, 20 seconds assets. In FY27 makes the beginning of a new earning layer for GSCL. Valu added downstream 5:29 5 minutes, 29 seconds producer products will now begin contributing to profitability. 5:33 5 minutes, 33 seconds Curtailing impact of business from adverse industry cycles. These projects remain strategically important as they 5:41 5 minutes, 41 seconds present a meaningful steps in the diversifying our product portfolio on our green field project. This is 5:51 5 minutes, 51 seconds a significant strategic investment and part of our long-term goals and we we will continue to provide update at commissioning milestones are achieved. 6:03 6 minutes, 3 seconds GSL ends the year in a position of financial strength. The external environment including global over supply, geopolitical uncertainty and 6:11 6 minutes, 11 seconds cost inflation is not without its challenge. But let me leave you with what I believe is the right frame of 6:20 6 minutes, 20 seconds GSCL. We are one of the most efficient sodas producers. Our cost delivery has been on plan through a prolonged down 6:29 6 minutes, 29 seconds cycle and as pricing headwinds gradually ease. We are positioned to be the among the first to benefit on margin. More 6:38 6 minutes, 38 seconds importantly, FYI27 marks the beginning of a new financial layer, earning layer that is value added 6:45 6 minutes, 45 seconds products are now commissioned and we will continue meaningful profitability reducing our dependence on commodity 6:53 6 minutes, 53 seconds sodas cycle entirely. The domestic demand outlook is improving. The pricing environment is stabilizing and our 7:00 7 minutes diversification investments are beginning to contribute. We remain committed to operational excellence, prudent capital allocation and 7:08 7 minutes, 8 seconds delivering consistent value to our stakeholders and all the stakeholders. I would like to thank our investors and stakeholders for their continued trust 7:17 7 minutes, 17 seconds in GST limited. We remain committed towards shareholders return and in FY26 7:24 7 minutes, 24 seconds we have rewarded our stakeholders with 415 cr in combination of dividend and share buyback. I will now hand over the 7:33 7 minutes, 33 seconds call to Raman to walk through the financial highlights in detail. Thank you. 7:37 7 minutes, 37 seconds Thank you sir. Good evening everyone and a warm welcome to our earning call for the fourth quarter and full year ended 7:44 7 minutes, 44 seconds 31st March 2026. Our performance remains steady. This is a result of our focus on operational excellence and efficient 7:53 7 minutes, 53 seconds manufacturing. We achieved this despite the challenging pricing environment in the industry. I will now walk you through the key financial highlights. 8:02 8 minutes, 2 seconds Revenue for the quarter came in at 88 cr compared to 773 cr in the previous quarter of this year and flat from rupes 87 cr in the same quarter of last year. 8:14 8 minutes, 14 seconds While the global scenario remains challenging, sequential improvement reflects the changing situation in domestic market driving better volumes 8:22 8 minutes, 22 seconds and realization. For the full year, revenue came in at 3,144 cr which is much similar to last year at 3 to 73 8:30 8 minutes, 30 seconds crores. AITA for the quarter stood at 194 cr compared to 175 cr in Q3 of this 8:37 8 minutes, 37 seconds year and 244 cr in Q4 of last year. A beta margin improved to 23.9% compared to 22.7% 8:45 8 minutes, 45 seconds in Q3 of this year. For full year, AITA came in at 769 cr and beta margins at 24.4%. 8:53 8 minutes, 53 seconds We have been able to protect profitability and margin due to our deep rooted philosophy of cost optimization and operational efficiencies. Pat for 9:01 9 minutes, 1 second the quarter came in at 120 cr which compared to compared to 107 cr in Q3 of this year and 153 cr in Q4 of last year. 9:10 9 minutes, 10 seconds For full year our pat came in at 479 cr which is 15.2% net margin. This demonstrates strong profitability 9:18 9 minutes, 18 seconds despite the global headwinds. For the full year we generated 603 cr in cash profit after tax. Out of this we spent 9:26 9 minutes, 26 seconds 265 cr on capex including new bromine and vacuum projects and we repaid 335 9:34 9 minutes, 34 seconds crores worth of borrowings. During the year we distributed 415 crores to our shareholders in the form of dividends 9:41 9 minutes, 41 seconds and buyback which represents a substantial 87% of full year FI26. 9:48 9 minutes, 48 seconds Further working capital has reduced by 153 cr resulting in a net cash dimmination of 41 cr for the year as a 9:56 9 minutes, 56 seconds whole in a period of external volatility. This reflects the strength of our balance sheet our commitment to shareholders and disciplined capital 10:04 10 minutes, 4 seconds allocation applause approach. We have a net cash surplus of,58 cr at the end of FI26. This financial agility sports our 10:13 10 minutes, 13 seconds strategic capex execution and provides significant growth headroom. With this I conclude my comments and would now request the moderator to open the forum for question and answer. Thank you. 10:26 10 minutes, 26 seconds Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on the touchstone 10:35 10 minutes, 35 seconds telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a 10:44 10 minutes, 44 seconds question. Ladies and gentlemen, we will wait for a moment while the question Q assembles. 11:03 11 minutes, 3 seconds Participants who wishes to ask a question please press star and one. 11:12 11 minutes, 12 seconds The first question is from the line of Dshita from DSPSet managers. Please go ahead. 11:19 11 minutes, 19 seconds Um I want to ask you for the opportunity. Uh so my first question was regarding uh the volume of uh growth 11:29 11 minutes, 29 seconds benefit that you mentioned given that imports were not as possible due to higher freed uh we got some benefit. 11:38 11 minutes, 38 seconds However, a top line u for the quarter was largely flat on y basis. So um I mean how much would the volume growth be 11:47 11 minutes, 47 seconds approximately and was it all offset by a negative pricing or should it is that I mean is that how we should think about it? 11:58 11 minutes, 58 seconds So Raja if if you look at in terms of the volume uh there is approximately around 11% of the volume growth has 12:06 12 minutes, 6 seconds happened whereas your pricing uh had gone down uh by 10%. 12:14 12 minutes, 14 seconds Okay. And uh you believe that uh the pricing should improve from here on I mean from your opening commentary you 12:22 12 minutes, 22 seconds mentioned that uh there is some benefit that we are getting on pricing front. So you expect pricing to improve from here on is it? 12:32 12 minutes, 32 seconds So if I can say like I said the global uncertaintity is so volatile that uh saying something 12:40 12 minutes, 40 seconds definitely is going to be very difficult but yes uh because of the import uh getting restricted and uh globally the supply 12:49 12 minutes, 49 seconds chain disruptions and the supply chain uh cost has gone up. Definitely uh pricing uh improvement is being seen. 12:58 12 minutes, 58 seconds Got it. Um I mean if you could uh share some insight insight as to how much pricing growth we have seen of freight 13:06 13 minutes, 6 seconds in the last one odd month uh ever since the world has struck 13:13 13 minutes, 13 seconds the has been seen in the like I said if you look at the last quarter in the month of March some increase has been 13:20 13 minutes, 20 seconds felt uh industry whatever the inventory they had there was a kind of a reduction in the inventory so probably you will be 13:27 13 minutes, 27 seconds seeing some uh benefit Of course on the other side the cost is also going up because your energy cost because of uh your uh what do you call raw material 13:36 13 minutes, 36 seconds cost uh the cost are also going up but prices are also getting increased. 13:43 13 minutes, 43 seconds Okay. And you can say that in a way you can say that whatever the cost increases are happening we have been able to pass on that to the uh to the to the consumers. 13:53 13 minutes, 53 seconds Uh therefore got it. Yeah. Okay. That's what I was trying to understand. And uh are we are 14:01 14 minutes, 1 second we facing any raw material unavailability issues or is that all taken care of? 14:08 14 minutes, 8 seconds We have taken care of that. Fortunately, we had a very well planning of uh the raw material and uh we have a sufficient 14:15 14 minutes, 15 seconds inventory of few I would say four five months of the raw material and we are taking care of that absolutely no use on that. 14:23 14 minutes, 23 seconds Okay. And just lastly on the new toad uh facility uh do we have any update here as to when will the construction begin? 14:35 14 minutes, 35 seconds Like I've mentioned in the earlier quarters as well I think there are some uh land requests are kind of a taking a 14:42 14 minutes, 42 seconds longer time. So at this point of a time very specifically it will be difficult to say when we are starting the construction. We are in the process of 14:50 14 minutes, 50 seconds uh making those land acquisitions and the land conversion uh happening and once that happen we will come back to the to the investors and give them a specific timeline. 15:01 15 minutes, 1 second Great. Okay. Thanks. Thanks. Thank you. 15:10 15 minutes, 10 seconds Thank you. 15:12 15 minutes, 12 seconds Participants who wishes to ask a question, please press star and one. 15:26 15 minutes, 26 seconds The next question is from the line of Ojas Singh from Celestial Crest Capital. Please go ahead. 15:33 15 minutes, 33 seconds Thank you for the opportunity to hear me. 15:38 15 minutes, 38 seconds I'm sorry to interrupt able to hear you, sir. Hold on. 15:44 15 minutes, 44 seconds Uh hello. Are you guys able to hear me now? Yeah, better. Much better. 15:51 15 minutes, 51 seconds Yeah, thank you. Uh thank you for the opportunity. Uh see, I don't want to talk about the operations because you you guys are the subject matter expert. 15:58 15 minutes, 58 seconds But I just want to I just have two or three questions. The first one is u as you guys are expanding into a new green 16:07 16 minutes, 7 seconds field project I just wanted to know uh are we doing it through internal because this is my first conference call this is 16:14 16 minutes, 14 seconds I haven't yet been on any of your other calls so is this being done through a mix of debt or internal or this is all 16:23 16 minutes, 23 seconds debt or what is the mix A B what would be the timeline of us deploying that capital and and this is a follow to that 16:32 16 minutes, 32 seconds question. Wouldn't it be beneficial for the company to hold some cash on the balance sheet rather than giving it to us like shareholders rather than giving 16:40 16 minutes, 40 seconds it to us in in in form of buybacks or dividends? Wouldn't it be beneficial to hold that cash onto your books and not 16:47 16 minutes, 47 seconds take debt and then fund our acquisition or fund our expansion on through through that? 16:55 16 minutes, 55 seconds No other uh thank you very much for this very valid questions on both in terms of the uh the acquisition which we are talk 17:03 17 minutes, 3 seconds uh the the investment of the green field project or the new project which we are talking about definitely it will be a mix of internal approval as well as some 17:12 17 minutes, 12 seconds debts. However, debt will always be very well within the limit because we have clearly articulated to our investors 17:20 17 minutes, 20 seconds that our debt equity ratio will never cross one. 17:24 17 minutes, 24 seconds uh because see first and foremost when we start investing into this project it will take approximately around 3 years of time two and a half years to three 17:32 17 minutes, 32 seconds years of time. Today already we have around 1,000 cr on the balance sheet we have a reserves of the cash balance on the balance sheet of,000 cr and the way 17:40 17 minutes, 40 seconds we are seeing uh this figure can be uh significantly higher uh because the capital expuned will happen in the rear end of the project. 17:50 17 minutes, 50 seconds Yes but of course the debt will be there. Second, your question about the uh payout to the shareholders versus uh 17:57 17 minutes, 57 seconds retaining the balance sheet. I think we have been retaining a sufficient balance at this point of a time. But we also believe that some kind of a reward to the shareholders is also very important. 18:08 18 minutes, 8 seconds And therefore we are taking a very conscious call on on on this buyback and the dividend and we are kind of uh doing 18:16 18 minutes, 16 seconds a very justified kind of a uh understanding of how do we kind of distribute to our 18:23 18 minutes, 23 seconds correct correct but I feel that giving out 80% of your pack isn't it way too much for us I know because you guys will 18:32 18 minutes, 32 seconds expand it will eventually create value for us but you guys giving out 80% of your pack to I I don't know. I don't think it's it's 18:39 18 minutes, 39 seconds it's it's it's I I think it's way too much of of returning value to the shareholders. But I feel that you can just hold on to a little bit of cash and 18:47 18 minutes, 47 seconds then expand on it. That is that is your point. 18:51 18 minutes, 51 seconds Your point is valid valid and I think uh till last year 24 25 the similar 18:58 18 minutes, 58 seconds philosophy was there we have not kind of that kind of a return we have not done. 19:02 19 minutes, 2 seconds I think this is the first time we have done that. Uh after that a substantial amount of bottom line has been uh has 19:09 19 minutes, 9 seconds been distributed to the shareholders and depending upon how the progress of this project happens uh we will be able to 19:16 19 minutes, 16 seconds kind of take this kind of a uh allocation of the capital differently. 19:21 19 minutes, 21 seconds These two both these project which are I've just mentioned in my opening remarks about this uh vacuum salt which are strategic investments. This all has 19:29 19 minutes, 29 seconds been funded through the internal approval only. Correct. 19:36 19 minutes, 36 seconds Yeah. Yeah. Thank you. Thank you. Just that I just wanted to ask those two questions. Thank you. 19:43 19 minutes, 43 seconds Thank you. Participants who wish us to ask a question, please press star and one. Now the next question is from the line of Rohit Sa from Sundi Securities. 19:54 19 minutes, 54 seconds Please go ahead. 19:56 19 minutes, 56 seconds Yeah. Uh thank you for taking my question sir. Uh just one thing on this uh slight I would say delay in this 20:03 20 minutes, 3 seconds broine and vector uh project uh although now that is pushed to Q1. uh uh how the 20:12 20 minutes, 12 seconds pricing right now is there and if uh uh at all we are going to start it uh are 20:18 20 minutes, 18 seconds we looking at a uh a better uh situation as compared to what it would be in the Q4 or earlier if we have started. 20:30 20 minutes, 30 seconds See right if you look at the blue mean I think uh blue mean the pricing has been uh has been significantly higher now as 20:36 20 minutes, 36 seconds compared to what we thought of uh so obviously that will have an advantage to us in terms of the vacuum I 20:44 20 minutes, 44 seconds would say that the prices are more or less on the stable uh pricing so I think I think there also kind of a uh we have 20:52 20 minutes, 52 seconds anticipated the bottom line will continue to be the same what we thought of when the roing the project when the project start definitely looks to the the return will be better. 21:02 21 minutes, 2 seconds So so any any specific or rough number we can get what kind of revenue size would be 21:11 21 minutes, 11 seconds contributing in the F27 for this project from this project? 21:17 21 minutes, 17 seconds Yeah. Uh basically uh just uh the number I'll just tell you the number broadly the number will be uh as per our as this 21:26 21 minutes, 26 seconds point of the time roughly the top line will be roughly around 160 K and 21:33 21 minutes, 33 seconds uh both the project put together and range will be something around 40 to 45% kind of a range for a full 21:42 21 minutes, 42 seconds number of 627 Yeah, that's fine. 21:48 21 minutes, 48 seconds Fully operational, the numbers will be significantly higher. 21:54 21 minutes, 54 seconds Fair enough. Fair enough. And uh uh again looking at the uh the overall 22:01 22 minutes, 1 second sorry I just measured the number uh this this 22:08 22 minutes, 8 seconds number which I told you is more of a full year benefit in the FY27. This number will be 120 K approximately the 22:17 22 minutes, 17 seconds margin remains almost the same level at 40 to 45%. Okay. 22:26 22 minutes, 26 seconds And uh and any um uh thought uh about expanding the capacity once we'll be uh 22:35 22 minutes, 35 seconds looking to uh I mean reach the uh peak utilization or peak level at this thing. 22:41 22 minutes, 41 seconds How basically I just wanted to understand how the uh market outlook you are seeing in this segment uh whether it 22:48 22 minutes, 48 seconds would be uh better for us to expand the capacity in this particular uh segment only or would be looking to spend something uh on a different scale. 23:00 23 minutes Surely right on this project both are like I said margin looks to be very attractive. So once the project is getting commissioned and we start 23:07 23 minutes, 7 seconds getting the benefit and we stabilize that because both the business we are going first time okay once we complete and we we start realizing the benefit 23:16 23 minutes, 16 seconds and we stabilize on that operation we will look at the uh opportunity of expanding. 23:23 23 minutes, 23 seconds Got it. Sorry. One last question. Uh just from the China angle uh how has been the important time and uh given the 23:33 23 minutes, 33 seconds current situation in China, how we are looking at the situation uh going forward with uh uh with the imports being uh competitive to us. 23:46 23 minutes, 46 seconds So at at this particular time like I said in the opening remarks uh the imports has significantly come down uh 23:52 23 minutes, 52 seconds in the last quarter and we hoping uh that uh because of this elevated freight cost supply chain uh delays the customer 24:02 24 minutes, 2 seconds are also kind of a uh preferring to have a domestic consumers domestic production or domestic uh supply. I think uh looks 24:11 24 minutes, 11 seconds to me that if the geopolitical situation continues to be the way it is uh it will be imports will be on the lower side but 24:19 24 minutes, 19 seconds another good part is the demand growth in India is also significantly better like I said last year the growth was 24:26 24 minutes, 26 seconds significantly better almost around 6% growth and hopefully this year also the growth will be there led by this solar 24:32 24 minutes, 32 seconds glass and all those things okay okay so so overall what kind volume 24:39 24 minutes, 39 seconds growth would be looking at for 27 in so dash see basically like I said the volume 24:48 24 minutes, 48 seconds growth per se will be there and we are kind of a number you we are producing 100% of our production in terms of the 24:55 24 minutes, 55 seconds volume growth may not be very significantly higher but this may have a better outlook on the pricing side 25:05 25 minutes, 5 seconds got it and and what uh pricing has been changed from last quarter? I mean uh 25:11 25 minutes, 11 seconds from Q Q3 to Q4 and uh post March what has been the price if at all you can share the numbers. 25:20 25 minutes, 20 seconds As I said so like whatever the cost increase which has happened uh that has been kind of fully been able to pass on 25:27 25 minutes, 27 seconds to the customers. So obviously the price escalation has happened but on the other side the cost has also gone up. 25:36 25 minutes, 36 seconds Fair that's it for my tech. Thank you. 25:41 25 minutes, 41 seconds Thank you. Participants who wishes to ask a question please press star and one. 25:53 25 minutes, 53 seconds Ladies and gentlemen to ask a question you may please press star and one. Now the next question is from the line of 26:02 26 minutes, 2 seconds Rohit Nagj from 361 capital. Please go ahead. 26:07 26 minutes, 7 seconds Yeah. Uh thanks for the opportunity and I apologize if I'm uh asking the question again because I missed the first 10 15 minutes commentary. Uh so in 26:16 26 minutes, 16 seconds terms of cost escalation what kind of uh cost increase uh we have seen both in 26:23 26 minutes, 23 seconds terms of uh say uh raw material and from the operating cost perspective because 26:30 26 minutes, 30 seconds of increase in coal cost as well as ignite cost. Thank you. 26:36 26 minutes, 36 seconds No ro as you right rightly said on the cost side there are two cost where the cost had gone up on one side is the 26:43 26 minutes, 43 seconds limestone limestone as you know the industry is importing uh from the middle east the limestone where the cost has 26:50 26 minutes, 50 seconds gone up and the second is energy cost so these are the two cost primarily of course there are some others like packing materials and other cost has 26:59 26 minutes, 59 seconds also gone up but this cost has gone up however like I said we have suffic recently covered uh in terms of our 27:08 27 minutes, 8 seconds inventory and therefore supply disruptions we are not seeing in that in terms of the number uh number of course 27:15 27 minutes, 15 seconds uh the number will be getting reflected uh at this point of a time I would say that uh the energy prices which is more 27:22 27 minutes, 22 seconds of a coal on the uh what you call index it has gone up from $120 to roughly around $136 approximately I'm giving the 27:31 27 minutes, 31 seconds number which is a very volatile number it changes on a day day-to-day to the basis on the limestone the supply chain cost has gone up the freight of from the 27:40 27 minutes, 40 seconds Middle East has gone up these are the two major impact which is happening 27:46 27 minutes, 46 seconds got sir uh so I'm just question in terms of uh the logistic cost so what has been 27:55 27 minutes, 55 seconds the increase in terms of the logistic cost if it could give us per metric ton because I think that could be one of the 28:03 28 minutes, 3 seconds elements where if the imported prices go up and if we are able to pass on or rather you know vet our 28:13 28 minutes, 13 seconds prices based on the import parity then we may have some chance of uh you know increasing the domestic prices. So just 28:21 28 minutes, 21 seconds to get a perspective what is the absolute increase in terms of per metric t cost of soda imports it has gone up. 28:31 28 minutes, 31 seconds See you know it's two things you know that the sodas is getting imported from the some uh many parts of the world okay 28:38 28 minutes, 38 seconds something is coming from US something is coming from Turkey something is coming from China everywhere has a different pricing increase or the supply chain 28:46 28 minutes, 46 seconds cost but the important part in this whole piece is even the rupee dollar as you know rupee dollar kind of a rupee 28:53 28 minutes, 53 seconds has depreciated both this put together uh there's a kind of a substantial increase and second is the supply chain 29:00 29 minutes disruption itself. So probably all these three factors had led to kind of a been able to the domestic industry had been 29:08 29 minutes, 8 seconds able to kind of a pass on uh the cost pressure what they have been uh because of this increase in the cost to the customers. 29:17 29 minutes, 17 seconds Sure. Sure. Fair enough. Uh sir just one last clarification from an industry perspective. Uh we heard from the competitor that there have been certain 29:25 29 minutes, 25 seconds capacities which have been shut down in different parts of the world. uh so could you give us uh any understanding broader understanding of the same and 29:34 29 minutes, 34 seconds whether that will also be an element to for uh incremental increase in this dash crisis. Thank you. 29:42 29 minutes, 42 seconds See what you rightly said in terms of the one of the US facility has been kind of a mouth okay which is roughly 1.3 29:52 29 minutes, 52 seconds million tons. And in China also there are a lot of maintenance activities are being taken because see as I said in my opening remarks. China is seeing the 30:00 30 minutes heat of uh cost pressure on the synthetic soda and I've said in my opening remarks that lot of stress 30:08 30 minutes, 8 seconds financial stress are being felt by the Chinese producers but the meaningful supply reduction uh in the China which 30:17 30 minutes, 17 seconds is more of a synthetic soda uh is some time away. this will happen but uh but 30:24 30 minutes, 24 seconds as you know that in the last 3 years uh the new capacity of natural sodas majority of the new sodas capacity has 30:32 30 minutes, 32 seconds happened in China which is Ind Mongolia at this point of a time obviously supply is more than the demand 30:41 30 minutes, 41 seconds right got and just last in terms of the inner Mongolia capacity uh is it being fully now operational and what is the 30:50 30 minutes, 50 seconds full capacity As of now in terms of uh production in terms of the total uh fully 30:58 30 minutes, 58 seconds operational and I think last year they have added to approximately around 2 and a half million or 3 million transities 31:04 31 minutes, 4 seconds they have added and overall is around 13 million of the uh total 31:11 31 minutes, 11 seconds sorry 7 million trans in sure uh that's all from my side. Thanks a lot and all the best sir. 31:24 31 minutes, 24 seconds Thank you. Participants please press star and one. 31:31 31 minutes, 31 seconds The next question is from the line of Sakit Kapoor from Kapoor and company. Please go ahead. Yeah. Hope I'm audible. 31:40 31 minutes, 40 seconds Yeah. Yes. 31:42 31 minutes, 42 seconds Yes sir. Thank you sir for this opportunity first of all and thank you for sir for also uh amending the dividend distribution payout to your 31:50 31 minutes, 50 seconds investors from 15 to 25% and maintaining the absolute number at 12 per share we 31:57 31 minutes, 57 seconds hope uh the theme get clear through the uh AGM part and but kudos to the team the camps and the board of directors for 32:05 32 minutes, 5 seconds considering the same now uh firstly that with respect to the capital work in progress closing balance We we find the closing balance at 450 K. 32:17 32 minutes, 17 seconds So if you could just explain are these uh mainly attributable to the broine and the vacuum salt project or 32:25 32 minutes, 25 seconds what portion will get capitalized uh in the first quarter itself. 32:31 32 minutes, 31 seconds So strategy as you rightly said this capital work in progress is primarily driven by the vacuum salt and the blooming project and uh once uh the 32:40 32 minutes, 40 seconds project gets commissioned like I said in the first quarter this both will be kept around 300 crores will be uh from this account but then there are some other 32:48 32 minutes, 48 seconds project like a pipeline project and all those things and that will also get commissioned uh the moment uh this project is completed I think this year 32:56 32 minutes, 56 seconds probably that project also will get commissioned that is also pertaining to our existing facility only sir. 33:04 33 minutes, 4 seconds Yes. Yes. I agree. Yes. 33:07 33 minutes, 7 seconds Okay. Sir, as you mentioned to the earlier participant that the additional revenue from the broine and the vacuum solve project for the current financial 33:16 33 minutes, 16 seconds year 2327 is approximately 120 K. Uh correct I'm correct on that. Yes sir. At 33:23 33 minutes, 23 seconds what utilization levels are we uh are we concluding with this figure of 120 K? 33:30 33 minutes, 30 seconds You see this is the gradual uh increase will be there as you know that the project will get commissioned now in the month of May June after that the gradual 33:39 33 minutes, 39 seconds expansion will happen and end of the year uh we will be running at the full capacity. 33:46 33 minutes, 46 seconds Correct sir that what should be that that number 120 cr is represent what percentage of utilization levels ramped 33:53 33 minutes, 53 seconds up till the next financial year till the end of this financial year. Calculate now you can just calculate I said that the peak number it will be 170 cr and 34:01 34 minutes, 1 second this number I'm saying 120 you can just calculate okay I missed it I missed that 170 number so so 170 will be the peak 34:09 34 minutes, 9 seconds capacity at fully utilization levels sir when we look at our AITA margin 34:18 34 minutes, 18 seconds trends I think so in the presentation you we people are very well articulated that our averages have been above 26 27% 34:25 34 minutes, 25 seconds % and now with the vegggeries of uh the the lower realizations and the other uh dumping aspect we are now trending in 23 34:34 34 minutes, 34 seconds 20 22 to 23 sub levels. So uh what what should be the likelihood of the a beta 34:41 34 minutes, 41 seconds margin trend with the with your opening commentary wherein you have articulated that things look for positive going ahead where how should this this line 34:50 34 minutes, 50 seconds item shape up sir for the current financial year. 34:55 34 minutes, 55 seconds See S is first and foremost like I said in my opening remarks also the market is so volatile you know that because of the 35:03 35 minutes, 3 seconds geopolitical situation completely uncertainity how does this uh shape up going forward nobody knows about it I 35:11 35 minutes, 11 seconds think in the month of February we did not knew that this geopolitical crisis will happen but having said that there 35:18 35 minutes, 18 seconds are two things which are very important for kind of a I want to highlight what we have in our control we have done it a remarkable job on the on the cost side 35:28 35 minutes, 28 seconds of best efficiencies, best-in-class of uh rail consumption norms and so on so 35:34 35 minutes, 34 seconds forth. So that's one part of it. The second part of at this point of the time when we stand and the way the geopolitical situation at this point of 35:42 35 minutes, 42 seconds the time I said on one side the costs are also getting uh increased on the other side the realization is also 35:50 35 minutes, 50 seconds getting increased. So overall per say at this point of a time slightly it will be more neutral to kind of a little bit of 35:58 35 minutes, 58 seconds a positive side but how this will shape up in the next month we don't know right now. 36:04 36 minutes, 4 seconds Okay sir. And sir uh for the sodium bicarbonate part of the story I think so we did uh uh some capex in doubling our 36:12 36 minutes, 12 seconds capacity there. How are the utilization levels and the demand outlook for sodium bicarbonate shaping up 36:21 36 minutes, 21 seconds this year our volume of sodium bicarbonate has also grown up and we are expecting that next year also it will be growing up. we have almost around I 36:31 36 minutes, 31 seconds would say 80% 85% kind of utilization we have been able to achieve in the sodium bicarbonate and hopefully uh the the way 36:39 36 minutes, 39 seconds we are looking at the demand probably this number will be slightly better in the coming uh coming uh years 26 27 36:47 36 minutes, 47 seconds okay and as in the in your presentation also this was mentioned that we are more moving towards the glass uh utilization 36:54 36 minutes, 54 seconds levels in the country as a whole and hence the requirement for dense soda should higher. So what proportion of our 37:01 37 minutes, 1 second uh uh sales mix is dense versus the light sodax mix. 37:07 37 minutes, 7 seconds Now as you rightly said the trend is more towards the uh growth in the glass sector particularly led by 37:15 37 minutes, 15 seconds the solar glass right. So at this point of a time approximately around our capacity wise around 55%. 37:22 37 minutes, 22 seconds Uh 50 to 55% is the capacity which is of a uh glass 37:30 37 minutes, 30 seconds and 50% is approximately around uh on the detergent side. Okay. 37:36 37 minutes, 36 seconds Because what we have Yes sir. So we have heard from your competitor that they are making some some changes and upping 37:43 37 minutes, 43 seconds their uh dense uh sort of facility for in the times to come. So taking into account uh do that kind of uh uh uh 37:52 37 minutes, 52 seconds canvas or landscape work for us also that going ahead we will be also doing the same or we are comfortable with this mix uh in terms of the uh demand out. 38:03 38 minutes, 3 seconds See first and foremost secondly what we have been doing is and that uh we have been very successfully been been done without any major capital expenditure we 38:11 38 minutes, 11 seconds have expanded our sash uh production which used to be around 40% now around 55%. 38:19 38 minutes, 19 seconds And our endeavor going forward will be from the existing uh assess what we have on the dense we expand the uh the 38:26 38 minutes, 26 seconds production itself on that and hopefully we will be able to improve upon that will be sufficient at this point of the time. Okay. And this ratio will improve. 38:34 38 minutes, 34 seconds That is what you are conveying. Yes. From 55%. 38:39 38 minutes, 39 seconds Okay. I think what we have right now will we are trying to increase it to more number 38:46 38 minutes, 46 seconds to to a higher number. We going right sir in the uh last point is from for Raman when we look at our uh cash flow 38:55 38 minutes, 55 seconds there is a 7 cr I think so uh loss from the subsidiary part. So what will that attribute to sir? 6.6 cr. 39:05 39 minutes, 5 seconds In fact in fact this is a income which we were receiving from the sale of asseted subsidiary. So at a standalone 39:12 39 minutes, 12 seconds basis that income was reflected in uh the standalone uh numbers. So when you consolidate because your subsidiary that 39:19 39 minutes, 19 seconds gets knocked off. So in one side it's a payout on another side this is an income. So there is no negative on the 39:25 39 minutes, 25 seconds consolid basis from that aspect. So it's just a accounting treatment which is there. So the income has been recorded 39:32 39 minutes, 32 seconds in a standalone basis. I hope I've been able to clear that. So secondly this is income only of 7 cr which has come from 39:40 39 minutes, 40 seconds the subsidiary but while consolidating this gets knocked off and because of that you don't see that there no loss of the investment. 39:51 39 minutes, 51 seconds Thanks sir. I'm joining the queue sir and all the best to the team sir for the good work there. Thank you. 39:59 39 minutes, 59 seconds Thank you. The next question is from the line of Oja Singh from Celestial Crest Capital. Please go ahead. 40:11 40 minutes, 11 seconds Mr. Oja Singh, please go ahead with your question. Your line is unmuted. 40:22 40 minutes, 22 seconds Mr. Oja Singh, please go ahead with your question. Your line is unmuted. Yeah. Are you guys able to hear me? 40:31 40 minutes, 31 seconds Sorry. Yes, we are able to hear you now. 40:34 40 minutes, 34 seconds Yeah. Uh just one more question. Uh I just wanted to know what was uh your rational behind that 300 cr buyback. 40:43 40 minutes, 43 seconds Were you seeing the stock price being say undervalued or what was your rational behind that 300 cr buyback? 40:52 40 minutes, 52 seconds see this uh I I don't think I'll be able to comment on whether I see the underpricing or things like that. Our purpose was to 41:01 41 minutes, 1 second kind of a reward the solders and uh that was the rationale behind the that uh pricing whether undervalued or not that investors to kind of decide. 41:12 41 minutes, 12 seconds Correct. Correct. Thank you. I just wanted to know because I I I thought uh that you guys must have been some there 41:19 41 minutes, 19 seconds there must have been some rational behind doing some do uh doing that 300 crow bar. That's it. Thank you. That was my last question. Thank you. Thank you. 41:30 41 minutes, 30 seconds Thank you. The next question is from the line of sake Kapoor from Kapoor company. 41:35 41 minutes, 35 seconds Please go ahead. Yes, a small addition in terms of this anti-dumping duty and the and this and the safeguard duty part 41:42 41 minutes, 42 seconds where are we in uh currently I think so we have filed fresh application for the same and any any updates that you can 41:50 41 minutes, 50 seconds share on the same yes I can so far as the antidoping is concerned I think in the last uh call I 41:57 41 minutes, 57 seconds have kind of updated it has been recommended that it has gone to the finance ministry and that has no decision has been taken at the finance minister so that is hold by the 42:06 42 minutes, 6 seconds So okay uh at this point of time I'm assuming that we are not uh considered a state laby now we have filed another 42:14 42 minutes, 14 seconds application which is a safeguard on the quantitative restriction under the safeguards that is under investigation and that is under the process that will 42:22 42 minutes, 22 seconds take some uh months of time to kind finally come to a conclusion once that happens they will come back to the sales 42:30 42 minutes, 30 seconds for update on that correct correct sir 42:37 42 minutes, 37 seconds Right sir, that that was a closing remark. Thank you sir. Thank you. 42:44 42 minutes, 44 seconds Thank you ladies and gentlemen. As there are no further questions from the participants, I now hand the conference over to management for closing comments. 42:54 42 minutes, 54 seconds Oh, thank you very much and thank you to all uh the stakeholders shareholders uh about the continued support. Like I said, I always said in my in my comment 43:04 43 minutes, 4 seconds that we are trying to do on our path which is in our control and as I've said over a period of time we have been able 43:11 43 minutes, 11 seconds to uh bring lot of efficiencies lot of cost uh optional and because of that we are one of the lowest cost producers at 43:19 43 minutes, 19 seconds this point of the time uh in in this space and any upside on the sodas of course for three years sodas prices are 43:26 43 minutes, 26 seconds under pressure but any opportunity of an increase in uh in the in the outlook of the so uh we will be the first one to 43:33 43 minutes, 33 seconds kind of get an advantage of that. So we will continue to do what is in our control and uh and and and try to deliver the comments on that. 43:44 43 minutes, 44 seconds Thank you very much for your support. 43:47 43 minutes, 47 seconds Thank you ladies and gentlemen on behalf of MT Global Financial Services Limited that concludes this conference. Thank you for joining us.