Gujarat Fluorochemicals Limited — Q4 FY26

Gujarat Fluorochemicals Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=HnZelK2TIlo Published: 3 weeks ago

0:01 1 second Ladies and gentlemen, good day and welcome to the Q4 FI26 earnings conference call of Gujad Floro Chemicals 0:07 7 seconds Limited hosted by 361 Capital. As a reminder, all participant lines will be in the listenonly mode and there will be 0:15 15 seconds an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an 0:22 22 seconds operator by pressing start then zero on your touchstone phone. I would now like to hand the conference over to Mr. Rohit Nagaraj from 361 Capitals. Thank you and over to you sir. 0:34 34 seconds Thanks Aduja. Uh good evening and welcome everyone for Gujarat Fluo Chemicals Limited Q4 FI26 and FI26 0:43 43 seconds conference call. Uh we thank the management to provide us the opportunity to host the call. Uh we have uh the 0:50 50 seconds management represented by Dr. Deir Kapoor uh CEO and deputy managing director along with the senior members 0:58 58 seconds of the management team. Uh now I would like to hand over the call to Dr. Deir Kapoor sir for his opening remarks. Over to you sir. Thank you. 1:08 1 minute, 8 seconds Uh thank you Rohit. Uh good afternoon everyone. 1:12 1 minute, 12 seconds Uh very warm welcome to all of you for GFL's quarter 4 FY26 earnings call. 1:20 1 minute, 20 seconds For this call I have with my with me my colleagues Mr. Akil Jindel who is group CFO, Mr. Manojaral who is CFO of GFL, Mr. 1:32 1 minute, 32 seconds Capil Mhotra business head of fluoropolymer and Mr. Rajiv Rao who is the business head of battery materials. 1:42 1 minute, 42 seconds The company announced its quarter 4 FI26 and fullear results at its board meeting held today. The results along with 1:52 1 minute, 52 seconds earnings presentation are already available on the stock exchange and on our website. 1:59 1 minute, 59 seconds I'll briefly highlight the key financials and then give you an update on business operations and outlook. 2:10 2 minutes, 10 seconds FY26 was marked by a highly volatile global operating environment. The first half of the year was impacted by 2:19 2 minutes, 19 seconds uncertainty surrounding US tariff policies and evolving global trade dynamics. 2:27 2 minutes, 27 seconds While the latter part witnessed heightened geopolitical tensions amidst the war in Middle East, dampening the 2:36 2 minutes, 36 seconds macros and the business environment which continue to disrupt global trade flows, impact logistics and supply 2:46 2 minutes, 46 seconds chains and contribute to elevated volatility across commodities and currency markets. 2:55 2 minutes, 55 seconds Sharp movement in energy prices have also resulted in higher input and logistic costs across businesses. 3:04 3 minutes, 4 seconds While we are seeing some signs of stabilization, the condition continue to be volatile. 3:13 3 minutes, 13 seconds Despite these headwinds, the company remained focused on disciplined execution, operational excellence, 3:22 3 minutes, 22 seconds supply chain optimization, and stringent cost management across businesses, enabling us to navigate the evolving 3:31 3 minutes, 31 seconds environment with agility and resilience. 3:36 3 minutes, 36 seconds Against this backdrop, our chemicals business delivered a commendable 3:42 3 minutes, 42 seconds performance during quarter 4 with revenue growing 11% yearonear 3:50 3 minutes, 50 seconds to rupees 1358 cr. Aida increasing 30 3:55 3 minutes, 55 seconds 13% year on year to rupees 353 K 4:01 4 minutes, 1 second and PAT rising 5% year on year to 169 K 4:07 4 minutes, 7 seconds as compared to quarter 4 FY25 the performance was led by growth in 4:15 4 minutes, 15 seconds fluoropolymer segment and the commencement of R32 production in March 2026 4:23 4 minutes, 23 seconds which marks an important milestone in our fluorochemicals growth journey. 4:29 4 minutes, 29 seconds Continue on the growth journey. GFL has earmarked rupees 3,150 4:36 4 minutes, 36 seconds kores of capit for FI27 of which rups 2300 4:45 4 minutes, 45 seconds is for GFCL EV and rupees 850 cr for GFL. 4:54 4 minutes, 54 seconds [clears throat] 4:55 4 minutes, 55 seconds of rupees 850 K capex approximately rupees 150 cr will 5:02 5 minutes, 2 seconds be spent on expanding our refrigerant gas and related infrastructure capacities 5:09 5 minutes, 9 seconds rupees 222 crores will be spent on new high purity electronic specialtity 5:15 5 minutes, 15 seconds chemicals or semiconductor sectors another rupees 250 cr will be spent 5:23 5 minutes, 23 seconds on adding new floropolymer capacities and the remaining 230 crores will be 5:30 5 minutes, 30 seconds spent on increasing capacities for backward integration including the regular annual maintenance capex. 5:40 5 minutes, 40 seconds The EV capex of rupes 300 K 2300 K will be spent in increasing capacities across 5:49 5 minutes, 49 seconds existing products in addition to the capex for uh natural graphite active material 5:57 5 minutes, 57 seconds natural graphite anode active material I'm sorry and this capex is part of the overall capex of 6,000 K that we have 6:04 6 minutes, 4 seconds earmarked for GFCLE the Chloropolymer segment delivered a 6:14 6 minutes, 14 seconds strong performance with revenues growing 19% yearonear 6:21 6 minutes, 21 seconds and 14% quarteron quarter to rupees 848 6:27 6 minutes, 27 seconds cr in quarter 4 f26 the growth was primarily driven by 6:35 6 minutes, 35 seconds value added products and higher volumes across key products categories. 6:42 6 minutes, 42 seconds Our focus on high value specialtity grades, deeper customer engagement, and expanding global reach continue to 6:50 6 minutes, 50 seconds support growth momentum during the quarter. 6:55 6 minutes, 55 seconds Looking ahead, we remain constructive on the long-term outlook for fluoropolymers 7:03 7 minutes, 3 seconds supported by increasing penetration across structurally growing sectors such as semiconductors, EVs, 7:12 7 minutes, 12 seconds battery energy storage systems, and clean energy applications. 7:18 7 minutes, 18 seconds In addition, global energy transition themes including hydrogen, fuel cells, 7:25 7 minutes, 25 seconds electrolyers, and solar are emerging as important long-term demand drivers for fluoropolymers. 7:35 7 minutes, 35 seconds Given the increasing complexities and purity requirement in these applications, 7:41 7 minutes, 41 seconds we believe a specialtity chloropolymers will continue to witness 7:48 7 minutes, 48 seconds strong demand over the medium to long term. 7:55 7 minutes, 55 seconds The earlier capex in this this segment should achieve its optimum utilization level in the current financial year. 8:05 8 minutes, 5 seconds We will be incurring further capex starting this year to continue on the growth journey in this segment. 8:14 8 minutes, 14 seconds In the plurochemical segment, production and sales of R32 commence from March 2026. 8:23 8 minutes, 23 seconds strengthening our refrigerant portfolio despite weakness in the Middle East market 8:33 8 minutes, 33 seconds and an overall challenging global environment. Segment delivered a stable performance. 8:40 8 minutes, 40 seconds We will be incurring rupees 150 cr of capex on increasing capacities of refrigerant gases in the current financial year. 8:52 8 minutes, 52 seconds Increased production of R32 will provide major growth in this segment in the subsequent quarters. 9:01 9 minutes, 1 second Demand for refrigerant is expected to remain healthy supported by increasing penetration of residential air 9:08 9 minutes, 8 seconds conditioning, commercial refrigeration, cold chain infrastructure and surge in demand of cooling 9:17 9 minutes, 17 seconds infrastructure for AI data centers across the globe. 9:24 9 minutes, 24 seconds Within bulk chemicals, the demand outlook for costic soda is expected to remain stable 9:31 9 minutes, 31 seconds in FI27 while pricing is likely to remain rangebound due to domestic capacity additions and balanced supply demand dynamics. 9:42 9 minutes, 42 seconds Similarly, the performance in chloro methane business is expected to remain rangebound in the near term amid 9:51 9 minutes, 51 seconds moderate demand conditions and competitive market analytics. 9:56 9 minutes, 56 seconds As we look at our battery material business, we believe the segment is now at an important inflection point. The 10:04 10 minutes, 4 seconds global energy transition continue to accelerate and the demand environment for advanced battery materials remains highly encouraging. 10:14 10 minutes, 14 seconds The the battery energy storage system opportunity in particular has strengthened significantly over the last few quarters. 10:24 10 minutes, 24 seconds Increasing investment in AI and machine learning infrastructure coupled with rising data center capacities are 10:31 10 minutes, 31 seconds driving the power requirements and creating structural demands for energy storage solutions globally. Against this 10:39 10 minutes, 39 seconds backdrop, we are pleased to share that all the initial capacities planned under phase one have now been commissioned and 10:47 10 minutes, 47 seconds contracted for. We have secured marquee anchor customers across all our battery material products which provide 10:55 10 minutes, 55 seconds confidence on utilization ramp up and commercial scale up over the coming quarters. 11:03 11 minutes, 3 seconds The LIS6 salt has now received approval from most of the major global electrolyte players and commercial sales are scaling up in line with our plans. 11:17 11 minutes, 17 seconds We have orders in place for FI27 and beyond. 11:22 11 minutes, 22 seconds Accordingly, production will be ramped up quarter and quarter. 11:28 11 minutes, 28 seconds In cathode active material, sample from our plant have received initial approval and final qualification is expected by 11:36 11 minutes, 36 seconds the end of this year. End of the third quarter, I'm sorry. Thereafter, commercial supply will commence for 11:44 11 minutes, 44 seconds which we have already optic agreement for the entire capacity. 11:50 11 minutes, 50 seconds As part of our next phase of growth, we are also setting up natural graphite anode active materials facility. 11:58 11 minutes, 58 seconds With this addition, we will be able to address nearly 70% of the value of an LSB battery cell, positioning us as one 12:08 12 minutes, 8 seconds of the most integrated battery materials platforms globally. 12:14 12 minutes, 14 seconds To support this growth road map, we have planned a capex of approximately 2,300 KES for FI27 12:23 12 minutes, 23 seconds across the battery materials portfolio largely focused on growth capex including the anode active material project. 12:35 12 minutes, 35 seconds To support this growth road map, we have planned uh I'm sorry, we remain committed to our previously outlined 12:42 12 minutes, 42 seconds guidelines of 6,000 K cumulative capex by FY28 12:49 12 minutes, 49 seconds across the battery materials portfolio with targeted asset turns of nearly 2x 12:57 12 minutes, 57 seconds and aida margins of over 25% plus. The full earnings potential of these investments expected to be realized by 13:06 13 minutes, 6 seconds FY29 as the facilities progressively ramp up and achieve optimum utilization levels. 13:16 13 minutes, 16 seconds While the macroeconomic environment remains challenging, the broader business landscape is gradually showing signs of improvement. 13:26 13 minutes, 26 seconds We remain focused on strong execution, prudent cost management and disciplined 13:33 13 minutes, 33 seconds scaling of our emerging growth platforms. 13:37 13 minutes, 37 seconds Remain confident in our ability to deliver sustain growth and create long-term value for all our stakeholders. 13:47 13 minutes, 47 seconds Thank you very much. And now I open the floor for questions. 13:55 13 minutes, 55 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 14:03 14 minutes, 3 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 14:12 14 minutes, 12 seconds question. Ladies and gentlemen, we will wait for a moment while the question assembles. 14:25 14 minutes, 25 seconds The first question is from the line of uncle Ankur Perial from Access Capital. Please go ahead. 14:32 14 minutes, 32 seconds Uh yeah, hi sir. Thanks for the opportunity and uh congratulations on decent set of numbers. Uh first question on uh the capeex announcement uh uh you 14:41 14 minutes, 41 seconds know both on the battery side as well as on the standalone side. uh the fluoropolymer uh expansion which will 14:48 14 minutes, 48 seconds this be on PTFE side or the new fluoropolymers uh how do you see that and uh just you know uh commensurate to 14:56 14 minutes, 56 seconds that the fluoropolymer's growth for the full year that we are seeing around 15 odd percent. Uh how will you break this up between uh PTFE and uh new fluoropolymers? 15:07 15 minutes, 7 seconds Um so the investment will be on new floropolymers as and in and and so far 15:14 15 minutes, 14 seconds uh we have not been given we have not been giving any u break up of growth of respective floropolymers. 15:23 15 minutes, 23 seconds uh however uh all I can say at this point Ankur is that the capacity that we had set up uh you know few years back 15:31 15 minutes, 31 seconds are almost reaching its full capacity optimum capacity utilization and uh now 15:38 15 minutes, 38 seconds is the time for us to add capexes in new fluoropolymer's uh segment right now. 15:46 15 minutes, 46 seconds Okay. 15:49 15 minutes, 49 seconds Sure sir. uh on the refare side uh 150 odd crores you know expansion there uh this is largely for uh the 20,000 ton uh 15:57 15 minutes, 57 seconds you know capacity that you are looking at or are there any further thoughts to expand uh that capacity further with respect to the kota that we have? 16:07 16 minutes, 7 seconds No, it's mostly as as of now we have announced that we'll be going up to 20,000 ton in R32. U so it's related to that as of now. 16:18 16 minutes, 18 seconds Okay. And by when uh are we expecting this 20k t uh commissioned and you know production starting there? The 16:26 16 minutes, 26 seconds production has already started as I said last time that uh we have achieved over 10,000 ton capacity at the moment and over a period of time I think it will be ramped up uh to 20,000 tons. 16:39 16 minutes, 39 seconds Sure sir. And uh just lastly on the the battery chemical bit uh you know uh good to see the capeex seeing a ramp up 16:47 16 minutes, 47 seconds there. Uh when we are saying from a you know product approvals perspective large part of things are already there. These are largely for uh the salt approval or 16:56 16 minutes, 56 seconds even the other you know products the value chain etc. How's the progress there? And on the technology side any tie up or it is largely uh you know homegrown uh for us there. 17:08 17 minutes, 8 seconds So uh Anor u we started with salt and electrolyte in the beginning as we had indicated. So uh initially obviously 17:18 17 minutes, 18 seconds that uh our initial capacity were in the salt our capacity commissioning was in that area. So our approvals are all in 17:26 17 minutes, 26 seconds the salt at this phase. The second we added was cathode active material. So that plant was commissioned recently um 17:35 17 minutes, 35 seconds and we have prepared the sample and our initial sample has already been qualified. So now it'll go through the full qualification 17:43 17 minutes, 43 seconds uh u and which we expect to uh get it by the end of this year which is the third quarter of this financial year uh and 17:53 17 minutes, 53 seconds then our u supply uh will start after that after we get the full qualification. So in LIIPF6 uh we have 18:01 18 minutes, 1 second achieved the full qualification from number of players and the supply is being ramped up. LFP at the early stage 18:08 18 minutes, 8 seconds plant is already commissioned as I said and uh samples are made. We have optimized the um uh product uh as per 18:16 18 minutes, 16 seconds the customer need and once the product is fully qualified the supply will start and this entire plant is is fully contracted. 18:29 18 minutes, 29 seconds Uh sure Mr. Kapur uh that's helpful. 18:31 18 minutes, 31 seconds Thank you and I'll get back into the queue. Thanks. Thank you. 18:37 18 minutes, 37 seconds Thank you. The next question is from the line of Sanjay Jensen from ICIC Securities. Please go ahead. 18:44 18 minutes, 44 seconds Yeah, thanks. Thanks Bir. Uh I have couple of questions. Uh first on the battery side uh when we say that we are 18:52 18 minutes, 52 seconds fully booked for the existing plant um are we talking about LIIPF6 and uh how 19:00 19 minutes much revenue potential when we say because for us uh u we don't know the capacity we don't know the capex you 19:08 19 minutes, 8 seconds have put so um how to think about FI27 FI28 revenue and when you say we have 19:15 19 minutes, 15 seconds fully sold capacity is it fair to assume that in FI27 that entire capacity will be sold to the customer. 19:24 19 minutes, 24 seconds Okay. Um you know what we have is that that whatever capacity that we have uh 19:30 19 minutes, 30 seconds in place now is contracted. Okay. This is true for LIP6 as well as for LFP which have been recently commissioned. 19:40 19 minutes, 40 seconds Now coming back to your question Sanjay regarding uh revenue potential and uh I 19:47 19 minutes, 47 seconds think we had guided earlier that uh you know once you put in a capex there's a certain gestation period in terms of uh 19:56 19 minutes, 56 seconds uh plant uh getting stabilized getting the right quality and then qualification and subsequently the revenue stream 20:03 20 minutes, 3 seconds starts coming up and uh product mix average I had indicated two times the asset turnover. 20:12 20 minutes, 12 seconds So I would follow the similar approach because it would difficult for me to give the exact number in terms of the but if you look at uh uh the way the cap 20:22 20 minutes, 22 seconds the our investments are happening and the capexes are being built in um over a period of time after certain gestation 20:29 20 minutes, 29 seconds period you would start seeing a two times revenue coming in. 20:34 20 minutes, 34 seconds So will will FI27 be a more uh again a qualification year or we intend to supply a material quantity in this year? 20:44 20 minutes, 44 seconds FI27 will be a material quantity for salt which I have already indicated very clearly. Okay. Because our initial 20:51 20 minutes, 51 seconds investments was all in salt. Salt plants are all see let me tell you initially I think this I had explained in several 20:59 20 minutes, 59 seconds calls earlier that our initial phase of investment is building up the capacity 21:07 21 minutes, 7 seconds uh which is the smallest commercial scale capacity to achieve the quality level and get the approvals and then 21:14 21 minutes, 14 seconds subsequently we go through the ramp phase. Okay. So initial capacities in the salt has already been built. We are ramping up phase right now continuously. 21:24 21 minutes, 24 seconds Uh so the salt we already have a qualification. So salt you will see a consistent uh uh growth uh in supply and 21:33 21 minutes, 33 seconds the revenue coming in. Uh LFP this will happen uh little later as I said that it'll probably happen at the end of the after the third quarter of this year. 21:43 21 minutes, 43 seconds Now again because we have already put one/ird of the money what we have uh thought about which is almost 2,000 crores has already gone into the battery 21:52 21 minutes, 52 seconds material um and we are still left with 4,000 even if I just say thumb rule of uh 2x this 21:59 21 minutes, 59 seconds itself should potentially give us a 4,000 probably we have utilities and all so probably giving some discount to that 22:07 22 minutes, 7 seconds a 3,000 cr revenue potential itself comes from the investment already done um there's gestation period again um I must 22:15 22 minutes, 15 seconds say that this is uh a sort of a relatively long-term play Sanjesh it's not quarter and quarter kind of business 22:23 22 minutes, 23 seconds uh there is a gestation period for each plant because there's a long qualification uh period almost could be 22:29 22 minutes, 29 seconds 9 months to a year okay so once the plants are commissioned uh qualification for the quality and then the 22:38 22 minutes, 38 seconds qualification and then the revenue starts kicking in and the number that you're talking about will come eventually. Yes. But but uh but then 22:46 22 minutes, 46 seconds when then the uh capacity utilization is is complete. 22:51 22 minutes, 51 seconds Got it. Got it. And and on this anode we never heard about this. No sen why 22:56 22 minutes, 56 seconds [laughter] 22:58 22 minutes, 58 seconds tech I don't know because all across we talked about LIP LFP and additives and binders. Now anode was a twist. 23:09 23 minutes, 9 seconds Um not a twist. It's uh it's one of our uh you know we have been adding product 23:15 23 minutes, 15 seconds u in our battery material portfolio and uh this was kind of one of the last uh bit that to because you know 23:24 23 minutes, 24 seconds batteries has typically uh three major component cathode anode and electrolyte we are present in cathode uh electrolyte 23:31 23 minutes, 31 seconds we are present salt binders and now anode and this we are talking about a natural graphite anode okay there are 23:40 23 minutes, 40 seconds different kinds of anode synthetic as well and natural. I'm talking about natural right now. Okay. Why? 23:45 23 minutes, 45 seconds And there's of course certain synergy with uh with our capability in natural graphite anode. 23:52 23 minutes, 52 seconds Now what capability can you can you help us understand that? 23:56 23 minutes, 56 seconds Um um it would be uh I'll hold on to that for now but there are uh definitely synergies with our existing businesses. 24:07 24 minutes, 7 seconds Got it. Got it. One related question on battery before I go to the co- business. 24:11 24 minutes, 11 seconds In this quarter, we saw a sharp jump in the losses because the revenues are largely same as last quarter. Well, if I 24:19 24 minutes, 19 seconds look at the IITA loss, it appears to be a significantly large. Now, now why why such a large cost addition in this quarter? 24:29 24 minutes, 29 seconds See the as the as we are capitalizing our assets you know once we qualify we reach the point where the assets are 24:37 24 minutes, 37 seconds qualified all the cost starts coming up right away Sanjesh and as the volumes are being ramped up 24:44 24 minutes, 44 seconds so this will uh eventually ease off okay it's a short-term thing because it's kind of a startup business 24:52 24 minutes, 52 seconds because your depreciation number on the EV segment has really not gone up so it's just um no depreciation appreciation number 25:00 25 minutes because as we capitalize the depreciation number starts coming in. So as uh the plants and the product gets 25:06 25 minutes, 6 seconds qualified and we commercialize it uh these number gets up and again I'll request Manoj to answer. Manoj is here with me. 25:13 25 minutes, 13 seconds Hi uh so you are specifically speaking about the segment of EV EV business. Yes he's talking about the minus 58. 25:22 25 minutes, 22 seconds Okay. So essentially the we have capitalized the LIPF 6 plant on 5th of 25:28 25 minutes, 28 seconds January uh this quarter. Okay. So our operation have started. So before the operations you are eligible for capitalization of all pre-operative 25:37 25 minutes, 37 seconds expenses and trial production losses everything. Once we start the operations uh the accounting standard doesn't allow 25:44 25 minutes, 44 seconds you to capitalize the expenses. So all the expenses flows through a P&L irrespective where the your uh sales 25:52 25 minutes, 52 seconds ramp up has happened or not or your capitalization has happened or not. So this has resulted in this. So earlier also if you have seen some of the 26:00 26 minutes expenses which were always charged to P&L which is around 20 cr rupees or so but this has gone up to from 20 crores 26:08 26 minutes, 8 seconds to 45 crores roughly. out of that one uh we have started utilizing the bias credit in the foreign currency and that 26:16 26 minutes, 16 seconds was unexpectedly one-time loss that will not recur in future because we have now M2M 26:22 26 minutes, 22 seconds M2M and we have all covered it 100%. In GFL we don't have to cover anything because we have got a naturalized there 26:30 26 minutes, 30 seconds here because sales are ramping up uh this naked uh as on the balance sheet and unfortunately the movement of dollar 26:38 26 minutes, 38 seconds and iron was extreme due to Iran and US war okay got very clear thanks thanks 26:46 26 minutes, 46 seconds thank you thanks thank you no no no one on core business [laughter] please on the core business thank you 26:53 26 minutes, 53 seconds for the answer so one on the core business is going up in the floral polymer uh uh 27:02 27 minutes, 2 seconds by one of the large competition. Um have we taken the similar price increases? Uh uh that's number one. Number two uh on 27:11 27 minutes, 11 seconds the volume and demand itself generally what happens in a in an inflationary environment restocking happen faster and it also kicks in restocking which we 27:20 27 minutes, 20 seconds were struggling because u BCP quantities of uh uh 3M and uh solv 27:28 27 minutes, 28 seconds I hope uh this this entire phenomena should help you to uh get back the demand and and approvals and also in 27:35 27 minutes, 35 seconds that scenario how should we see FI27 Seven. 27:40 27 minutes, 40 seconds Um, sure. First let me answer one uh quickly and then I'll hand it over to couple for detailed answer. There has been a a price increase. We have also taken a price increase. Uh, Sanjesh. 27:51 27 minutes, 51 seconds Okay. And uh because if you look at it that we have been in spite of increasing 27:57 27 minutes, 57 seconds uh raw material and the logistic prices uh we have been able to maintain uh our 28:05 28 minutes, 5 seconds margins and uh continue to uh show growth in our business. So uh that's of 28:12 28 minutes, 12 seconds course has happened uh with us also. But for your detailed for 27 outlook I'll let uh a couple please. 28:20 28 minutes, 20 seconds Hi Sesh. Hi sir, good evening to you. Good evening. 28:25 28 minutes, 25 seconds Yeah, so as Dr. Kapoor has mentioned uh you know we are also seeing the uh demand growth in this year mentioned by 28:34 28 minutes, 34 seconds the sectors which have been uh semiconductor and a couple of other growth sectors plus also we have been 28:41 28 minutes, 41 seconds mentioning in the past uh calls also that we are totally focusing on the value added applications and value added 28:48 28 minutes, 48 seconds uh customers. So this year we expect to see a growth of around 15 to 20% as compared to the last year in our 28:55 28 minutes, 55 seconds fluoropolymer products uh which we are going ahead and that is why we are also entailing a capex also because we are seeing that whatever capexes are made 29:05 29 minutes, 5 seconds last couple of years we are almost at the complete utilization cycle of those products in this financial year. So we are seeing a growth outlook for this 29:13 29 minutes, 13 seconds year as well as for the next couple of years also growth coming from the sectors which we are mentioning. 29:20 29 minutes, 20 seconds So 15 to 20% when we say it's volume growth right pricing I think pricing itself has gone up by 15%. Right. 29:28 29 minutes, 28 seconds Yeah. Right. So obviously you know that effects also start coming in you will see in the you know results when they are coming out. So that also you know 29:35 29 minutes, 35 seconds starts coming out whatever uh know but there are also been the cost uh push also from the back end also. So that 29:44 29 minutes, 44 seconds also gets out balanced out also. So but we are seeing the growth in the prices as well as in the growth in the volumes also. 29:52 29 minutes, 52 seconds Got it. Got it. One one last in the Yeah. 29:54 29 minutes, 54 seconds Sorry to interrupt you Mr. Jen. May we request you to please rejoin the queue. 29:58 29 minutes, 58 seconds We have participants waiting for the turn. 30:01 30 minutes, 1 second Thank you ladies and gentlemen. In order to ensure that the management is able to address questions from all participants, we would request you to please limit 30:09 30 minutes, 9 seconds your question to two per participant. If you have a follow-up question, you may rejoin the queue. The next question is from the line of Aron Prashad from Avent Park. Please go ahead. 30:25 30 minutes, 25 seconds Yeah, thank you. 30:27 30 minutes, 27 seconds Yeah. Uh sorry. Uh thanks for opportunity. Uh so my first question is on the uh fluoropolymer business uh 30:35 30 minutes, 35 seconds generally chemicals business uh excluding EV. Uh so in the past we set uh our steady state um uh targets for 30:44 30 minutes, 44 seconds the existing uh assets and capacity uh at a much higher level but uh now we are saying 30:53 30 minutes, 53 seconds that uh we have not even reached uh 80%age of that level but still we are seeing that we will we are fully 31:01 31 minutes, 1 second utilized and uh we would like to add capex. So how should we look at this? 31:06 31 minutes, 6 seconds Was it uh any uh expectation of ours didn't happen because we are not able to ramp up or or what's happening around in 31:14 31 minutes, 14 seconds this chloropolymer and new fluoropolymer business. 31:19 31 minutes, 19 seconds Okay. Uh Aron first of all u we have never given u ever a capacity utilization numbers earlier. Um all we 31:28 31 minutes, 28 seconds are saying right now that the initial capacity that we had put up in the fluoropolymers 31:36 31 minutes, 36 seconds uh we are seeing now that reaching a pretty much uh reaching an optimum utilization 31:43 31 minutes, 43 seconds [clears throat] and uh the time has come for us to now um put fresh set of investment in fluoropoly because because 31:51 31 minutes, 51 seconds the growth that we are seeing is consistent. 31:55 31 minutes, 55 seconds Now you're asking that why it has taken some time etc because I had said many times that there is a u as uh we go into 32:05 32 minutes, 5 seconds higher and higher grades of polymers the qualification time becomes uh longer okay and particularly now for example if 32:14 32 minutes, 14 seconds you talk about uh some of the fluoropolymer which is getting into an application like semicon so the uh 32:22 32 minutes, 22 seconds gestation period or the qualification period long but today I think we are in a much much much stronger position and 32:29 32 minutes, 29 seconds couple you want to add something. Yeah, just continuing on the same part. Uh, obviously when we are going into the 32:36 32 minutes, 36 seconds high valuated applications, you know, talking about semiconductor, talking about hydrogen fuel cells, talking about the other applications, the approval cycles are definitely a bit longer. 32:48 32 minutes, 48 seconds But now we are on the end where most of the approvals have come in. Commercial businesses have started doing well and we are seeing that growth coming in. 32:58 32 minutes, 58 seconds That is why we are very confident about the figures which I told and uh going ahead in the new photoolymer business especially PFA FKM and couple of other 33:06 33 minutes, 6 seconds products which we have added. We are seeing that the growth is continuing and that is why a capex is also being planned as we feel that by this 33:14 33 minutes, 14 seconds financial end we'll be almost to the maximum capacity utilization of these products. Uh no actually uh there is a 33:23 33 minutes, 23 seconds what I meant was not with respect to the uh product approval timelines that we understand that you know it's a uh 33:31 33 minutes, 31 seconds fairly longer uh listation period products but uh what I trying to ask is that is this is the kind of aida numbers 33:38 33 minutes, 38 seconds for the uh fluoropolant at least in the chemical business is this a steady state number that we actually enaged when we 33:47 33 minutes, 47 seconds uh when we put up those plants uh 2 years ago or is it something like lower than what the invisaged? 33:57 33 minutes, 57 seconds No, I think I think Aron this has been in line with what we had thought because we had already uh you know given an 34:05 34 minutes, 5 seconds indication of uh certain eida margins and which we have been uh sustaining. So I don't think there is any disconnect 34:13 34 minutes, 13 seconds with respect to what we have talked through. 34:15 34 minutes, 15 seconds Understood. And when we are adding capacities is it across all the uh new floropolymers or is it in some pockets 34:23 34 minutes, 23 seconds or some if you if you would like to call out few polymers where we are adding disproportionately. 34:30 34 minutes, 30 seconds Obviously there are you know the margins are different depending upon the different grades. So uh some of the new polymer which is very highend the 34:39 34 minutes, 39 seconds margins are disproportionately higher obviously. Yes. So when we talk about it, we talk about it as mix. Okay. 34:48 34 minutes, 48 seconds Okay. All right. So second question on the EV. Um we say that uh our all our capacities are contracted. 34:57 34 minutes, 57 seconds Um does it mean that uh uh is it something like a take pay or uh after you are done with the qualification is 35:05 35 minutes, 5 seconds it a take pay or is it like uh more like a soft commitment? 35:12 35 minutes, 12 seconds Um I'm not really uh at liberty to give details of our contracts Arun. U however 35:19 35 minutes, 19 seconds uh these are all I can say that uh these these capacities and uh you know and we 35:26 35 minutes, 26 seconds had put up uh there are anchor customers there are specs agreed on there are pricing that has been agreed on uh and 35:34 35 minutes, 34 seconds these are some of the contract which is in writing. Okay. You want to add in? 35:43 35 minutes, 43 seconds So, uh it would not I would not be able to give details of uh the customer contract or any detail about the customers. 35:52 35 minutes, 52 seconds Sorry to interrupt. May we request Mr. Adam Prashad to please rejoin the queue. 35:56 35 minutes, 56 seconds Thank you. The next question is from the line of Hanel Tucker from WAL Securities Private Limited. Please go ahead. 36:04 36 minutes, 4 seconds Yeah, good evening Dr. Kapoor and uh the rest of the team firstly accept my heartiest congratulations for uh you 36:12 36 minutes, 12 seconds know such a good resilient performance on the chemical uh segment especially from photo polymers against a rather 36:20 36 minutes, 20 seconds challenging global backdrop. Um also very encouraging to see that we are aspiring to be at 70% of the uh EV 36:28 36 minutes, 28 seconds battery value. Um just one question I had sir just trying to put the capex figures in perspective 36:36 36 minutes, 36 seconds uh the 800 cr plan capex of 27 I understand 150 crores as you mentioned is towards the uh R32 so is the balance 36:46 36 minutes, 46 seconds part of any specific polymer expansion or is it part of common infra because I'm trying to add the numbers up and you 36:53 36 minutes, 53 seconds know taking cue from your comment that you know the cumulative capex figure remains at 6,000 37:08 37 minutes, 8 seconds Hello. Uh sir, we are unable to hear you. Uh can you hear me now? Yes, please go ahead. 37:17 37 minutes, 17 seconds Okay. So, Hansel, I think uh uh maybe there might be a mismatch in the numbers. The projected number that we have said is around 800 crores for GFL. 37:28 37 minutes, 28 seconds Okay. Out of that 150 cr is for rev gas. 37:34 37 minutes, 34 seconds Uh 220 cr for electronic specialtity chemicals which is primarily for semicolon. 37:43 37 minutes, 43 seconds Uh and we have fluoropolymers. We have set 250 kles. 37:49 37 minutes, 49 seconds Uh uh is this clear? You had some question on the fluoropolymer capex. Uh Hansel. Yes sir. Yes. So I got I got my answer. 37:58 37 minutes, 58 seconds I'm just trying to wonder how this totals into 6,000 crores of the unchanged capex figure. But I guess uh 38:05 38 minutes, 5 seconds it has something to do with the bifurcation of the capex of FY24. I'm guessing. 38:12 38 minutes, 12 seconds So the 6,000 cr numbers that we had said uh when we started the journey in the new EV vertical or the EV business at 38:22 38 minutes, 22 seconds that time almost couple of years back we had said that our plan is to invest 6,000 kores uh in EV business over a 38:31 38 minutes, 31 seconds period of four to five years. So I was uh so 2,300 K for EV is part of that 38:38 38 minutes, 38 seconds 6,000 uh that we had uh indicated earlier. Is that clear? And then now the 38:45 38 minutes, 45 seconds GFL capexes are separate because GFL capexes are in the chemicals part of the uh 38:53 38 minutes, 53 seconds the is the mother company investments and EV is now being separated out. 39:00 39 minutes Excellent. Excellent. Got it. Crystal clear. Thank you so much Anel. Thank you so much. 39:06 39 minutes, 6 seconds Thank you. The next question is from the line of Arch Jooshi from Noama Wells. Please go ahead. 39:12 39 minutes, 12 seconds Hi, good evening sir. Thanks for the opportunity. Uh just had one question. 39:17 39 minutes, 17 seconds Uh rather a clarification if you can give on the R32 capacity. Uh we would be 39:23 39 minutes, 23 seconds uh eventually at a 20,000 t capacity of R32. Uh if I understand that correctly. 39:30 39 minutes, 30 seconds Uh do we would we have any plans to uh add more capacity going into 2027 uh 39:36 39 minutes, 36 seconds given that uh uh we we have sufficient kota from the the baseline of the HCFC 39:45 39 minutes, 45 seconds years and uh there's another year for us to uh make use of the timeline to add more capacities. uh and on the same 39:53 39 minutes, 53 seconds lines uh how do we see the ramp up of R32 capacities in um in F27 40:01 40 minutes, 1 second any elaboration over there thank you thanks Archett first of all we had said that we would be adding 20,000 ton in 40:09 40 minutes, 9 seconds R32 okay so we are going through that process right now and our capacities will soon reach uh 20,000 it hasn't 40:18 40 minutes, 18 seconds reached yet and regarding the subsequent addition We have also made it very clear that we will be uh adding the full 40:26 40 minutes, 26 seconds capacities and uh utilizing uh our uh kota or our uh uh allocated quantities. 40:35 40 minutes, 35 seconds Uh we have time um and we will take that call as we go along uh looking at the market dynamics and the opportunities uh 40:43 40 minutes, 43 seconds to utilize it and looking at the product mix and what's the right product mix for refrigerants. 40:51 40 minutes, 51 seconds All right. So, so that for that we we'll have to wait till a few more quarters to understand how much capacity might get added and uh what the kind of kota that 41:00 41 minutes we are targeting uh maybe in the next year just for yes our kota numbers are very clear we have internal estimates because this 41:08 41 minutes, 8 seconds there's a very well definfined uh you know guidelines for the kota u uh so that numbers are very clear to us and we 41:16 41 minutes, 16 seconds are clear about uh adding capacities to reach that Got it. And and this uh 220 odd cr capex 41:26 41 minutes, 26 seconds uh uh if I if I heard that correctly for R32 uh this is for F27 assuming that we 41:34 41 minutes, 34 seconds would have that capacity towards the end of the year or we very close to commissioning that capacity. Sorry A I I 41:41 41 minutes, 41 seconds think we mentioned 150 K for 150. Sorry. Right. Right. 41:46 41 minutes, 46 seconds So it'll happen in uh very soon. Very soon. 41:50 41 minutes, 50 seconds All right. So by by second half would we have the full 20,000 ton available for sales? Would that be a right assumption? 41:59 41 minutes, 59 seconds Yes. Hopefully. Yes. Sure. Right. Sure sir. Thank you. Thanks. 42:03 42 minutes, 3 seconds Thanks for answering my questions and all the best. 42:11 42 minutes, 11 seconds Thank you. Participants who wishes to ask a question please press star and one. The next question is from the line 42:19 42 minutes, 19 seconds of tjan Arunes from Asian market securities. Please go ahead. 42:25 42 minutes, 25 seconds Yeah good. Thank you for the opportunity. Uh my first question is on the uh EV capeex. uh could you help us with uh what how much has been the total 42:34 42 minutes, 34 seconds capeex so far on the EV side and how much have we capitalized from that capeex 42:44 42 minutes, 44 seconds so approximately uh 1,900 to 2,000 is what we have already invested so far pages um the 42:51 42 minutes, 51 seconds plan is to go for 2300 uh next year or this coming year um and uh so this is 42:59 42 minutes, 59 seconds actually is our ramp up phase now. Okay, we have done what we have to do for learning customers qualifications pretty 43:07 43 minutes, 7 seconds much you know. So now this is the time um where the the serious investments of that are committed uh capex are going to 43:15 43 minutes, 15 seconds take place. So with this I think the remaining uh the subsequent uh financial year probably would see the similar 43:23 43 minutes, 23 seconds order of capex to reach the 6,000 number. 43:27 43 minutes, 27 seconds Okay. So this 2,000 crores is the amount which you have already commercialized. Uh would that be correct? 43:33 43 minutes, 33 seconds The capex that we have already invested that cash flow and some part of it is capitalized not the entire thing as we 43:41 43 minutes, 41 seconds are getting ramped up uh as the plants are commissioned with the intended uh uh uh you know with whatever the intent of 43:50 43 minutes, 50 seconds that capex is and that's reached uh we are capitalizing it. 43:55 43 minutes, 55 seconds Understood. And uh second on the uh Oman Kipex uh which we indicated last quarter uh with whatever has happened in the 44:02 44 minutes, 2 seconds Middle East uh uh what is the status of that project? Are we on track to uh go ahead with this keex? 44:11 44 minutes, 11 seconds No we will go ahead with the capex because I'm sorry there are no we have not uh there no impact on Oman. If you 44:20 44 minutes, 20 seconds look at the overall capacities, Oman has been uh uh overall uh one of the uh safest countries uh so far in the Middle 44:28 44 minutes, 28 seconds East and uh so there's no change in our capex plan and we are going ahead with it. 44:34 44 minutes, 34 seconds Okay. Uh one last question on the gross margin front. Uh this quarter we have seen that the gross margin has seen some decline. Uh could you help us understand 44:42 44 minutes, 42 seconds what could be the reason behind the drops? 44:49 44 minutes, 49 seconds So it's it's not really decline. It's probably what maybe half percent point. 44:54 44 minutes, 54 seconds Very small number chance. There's not a significant change uh it's it's pretty much flat overall. 45:02 45 minutes, 2 seconds Uh okay that's helpful. That's also my side. Thank you so much. Okay. Thanks. Yeah. 45:07 45 minutes, 7 seconds Thank you. The next question is from the Farun Prashad from Aend Spark. Please go ahead. 45:16 45 minutes, 16 seconds As a followup sir uh we were discussing about the contracts in the EV business and you said it is not exact I mean it's 45:24 45 minutes, 24 seconds contracted and sold out does it mean we should have some kind of a revenue visibility for this year uh isn't it at least for those uh products where we are 45:33 45 minutes, 33 seconds done with the uh uh approvals and qualification cycle. 45:39 45 minutes, 39 seconds Yeah I'll let Mr. Rajie uh answer this please go ahead. Yeah. So we have uh as mentioned earlier uh our first 45:47 45 minutes, 47 seconds investment of LIPF6 salt where uh the plants are u our product has been fully qualified by most of the major 45:56 45 minutes, 56 seconds electrolyte players. Uh so the commercial sales for that product has started now and we should be expecting revenue for LIPF6 salt for all of SI27. 46:08 46 minutes, 8 seconds As far as LSP is concerned, uh our initial samples have been approved and the final qualification of that product 46:16 46 minutes, 16 seconds is expected sometime in Q3 of this financial year and the revenue for LSP CAM should start uh subsequent to that. 46:25 46 minutes, 25 seconds Uh additionally, our binders have been uh fully qualified at major customers uh 46:32 46 minutes, 32 seconds and revenue for that should start uh in the next couple of quarters. 46:39 46 minutes, 39 seconds Okay. Uh, understood sir. We'll we'll get back to you later. Thank you. 46:48 46 minutes, 48 seconds Thanks. Thank you. 46:50 46 minutes, 50 seconds Thank you. The next question is from the line of Darita Sha from DST Mutual Fund. Please go ahead. 46:56 46 minutes, 56 seconds Yeah. Hi. Uh, thank you so for the opportunity. Uh, just a question on the working capital. Uh, inventory days have 47:03 47 minutes, 3 seconds continued to move up. uh a how do you think uh this will pan out or do we have 47:11 47 minutes, 11 seconds any uh plans to you know bring it back to the 90 95 days that we used to have in FI2223 47:20 47 minutes, 20 seconds uh first on that and second as the uh batching business scales up how should we see the working capital panning out? 47:31 47 minutes, 31 seconds Yes, I I'm requesting Mr. Manoj to take this and please Manojita first of all uh the numbers which we are referring to is 47:40 47 minutes, 40 seconds uh at a higher base level that there was the exceptional outlier year where our turnover was 6,300 crores because the exceptional increase in the chemical 47:49 47 minutes, 49 seconds prices that was first reason. So denominator effect base effect was there uh which 47:56 47 minutes, 56 seconds has resulted into abnormally low working capital cycle of 120 days to 150 days. 48:01 48 minutes, 1 second Uh so far our distribution model is concerned uh we deal in the polymers we stock at our uh Germany warehouse we 48:08 48 minutes, 8 seconds stock at our USA warehouse and that remains so almost we have to keep 30 days inventory 30 days to 90 days 48:17 48 minutes, 17 seconds inventory in our plant 30 to 90 days inventory at warehouses and the C uh transit time also takes 30 to 60 days 48:26 48 minutes, 26 seconds depending on whether it's going to Germany or USA. So uh that is the thing. 48:31 48 minutes, 31 seconds So and our uh average credit period is also span between 60 to 90 days and our 48:40 48 minutes, 40 seconds because we are fully integrated uh lot of creditors are not there in our system so we don't get that credit benefit uh 48:48 48 minutes, 48 seconds uh and because of that our average working capital cycle remains high further uh being we are now stabilizing 48:56 48 minutes, 56 seconds the or started doing uh our EV business building of our EV business we have to start procuring the inventories for our EV business that raw material 49:04 49 minutes, 4 seconds inventories and we have started commercial production of LIIPF6 that has also added. So as we go along uh we 49:11 49 minutes, 11 seconds reach our full capacities uh and the turnover uh the automatically that denominator effect will come back and this will get reduced. 49:23 49 minutes, 23 seconds Okay. So so Darita the the one of the reason is the kind of uh the business model that we have where we have uh you know stock 49:31 49 minutes, 31 seconds and sale and also the large uh dependence on the export market. Uh because of that uh our uh working cycles 49:40 49 minutes, 40 seconds of the days are long but uh part of it is of course is also related to uh capacity utilization. As our uh capacity 49:49 49 minutes, 49 seconds builds up you'll probably see these numbers going down. Sorry, if you could just explain as to why would we require 49:56 49 minutes, 56 seconds a 30 to 90 day kind of an inventory at the warehouse uh in the US and Germany as well? I mean how how does the offtake usually work? 50:08 50 minutes, 8 seconds Um I mean why why would why would we require such a high inventory day at the warehouse in the US and Germany like in those regions as well? 50:19 50 minutes, 19 seconds Yes. 50:19 50 minutes, 19 seconds Yeah. Hi Dashita Capel Malotra this first of all the kind of business we are in we also 50:27 50 minutes, 27 seconds have to keep the insurance stock for certain marquee customers in uh both the European as well as the US market 50:36 50 minutes, 36 seconds because there they have the concept of just in time so we have agreement with them where we have to keep the stocks for them uh for two to three months as 50:45 50 minutes, 45 seconds an insurance stock that's one the second important thing is if you Understand now currently if you see the geopolitical 50:52 50 minutes, 52 seconds scenario the voyage time has increased from almost uh no 3 to 4 weeks to almost 7 to 8 weeks. So our material in the 51:01 51 minutes, 1 second stocks has actually helped us in converting the sales and also we have to say to it that there is almost 8 weeks which is taking in transit time to reach 51:09 51 minutes, 9 seconds to these destinations. So that is why to ensure that our customers receive material, we have enough stocks with us to convert into sales, we have to have 51:18 51 minutes, 18 seconds these working capital days with us with material in stock. Okay. Yeah. 51:26 51 minutes, 26 seconds All right. Okay. Thank you. Thanks. Thank you. 51:33 51 minutes, 33 seconds Thank you. Participants who wishes to ask a question, please press star and one. 51:45 51 minutes, 45 seconds The next question is from the line of Rohit Nagrash from 361 Capital. Please go ahead. 51:51 51 minutes, 51 seconds Uh thanks. Uh so first question is on R32. So given that we have commissioned 51:58 51 minutes, 58 seconds the 10,000 tons of capacity. Uh have we already started operating at optimal levels from March or will it be 52:06 52 minutes, 6 seconds happening in subsequent months? Thank you. 52:11 52 minutes, 11 seconds No, it's already started operating uh from April onwards. So, it's already operating at the optimal capacities and it'll be ramped up as we go along. 52:22 52 minutes, 22 seconds Right. And in terms of uh the customers, how are we looking at it? Is it domestic? Is it exports? And uh do we 52:31 52 minutes, 31 seconds have uh any contracts in place for this 10,000 and the additional 10,000 that is coming in uh I know any anchor customers 52:40 52 minutes, 40 seconds where we have at least a part of the volumes which are contracted for a medium to long term. Thank you. 52:47 52 minutes, 47 seconds Thanks Ro. We have been in represent business for a very long time. you know we have a one of the uh legacy uh 52:55 52 minutes, 55 seconds suppliers in this area u with lot of experience in uh export market as well. 53:01 53 minutes, 1 second So when we look at R32 uh it's both domestic as well as exports and uh in uh 53:08 53 minutes, 8 seconds some cases we have uh uh contracts as well. So we are quite confident that when the capacity is uh when we ramp up 53:16 53 minutes, 16 seconds the capacity and go to 20,000 t we'll have no uh challenge at all. No issue at all in terms of uh uh selling that 53:24 53 minutes, 24 seconds material. It's it's uh it's contracted as of now. 53:29 53 minutes, 29 seconds Got it. And sir, second question is on these neuropolymers business. What is the kind of you know potential evida 53:39 53 minutes, 39 seconds that we are looking at uh at in you know whenever we reach the optimal or full utilization for the existing capacities. 53:48 53 minutes, 48 seconds Thank you. 53:53 53 minutes, 53 seconds So, so the thing is that that we are still uh Rohit not reached the uh full capacity as I said earlier. So as we are 54:00 54 minutes seeing the the volume growth in in fluoropolymers the aida will continue to 54:07 54 minutes, 7 seconds grow. In fact in uh as uh we have seen earlier also as more and more uh uh new 54:14 54 minutes, 14 seconds fluoropolymers are added which are high value add overall aida going higher because of the 54:21 54 minutes, 21 seconds higher margin products. So we will see aida growth as well along with the volume growth. 54:28 54 minutes, 28 seconds All right. And what just last bit on the battery chemicals front uh so given that this quarter there's been some 54:36 54 minutes, 36 seconds improvement in the revenues. uh do we see a significant or exponential 54:42 54 minutes, 42 seconds improvement in revenues on a QQ basis and by Q4 of FI27 uh there could be potential a three 54:51 54 minutes, 51 seconds digit number from the uh you know battery chemicals front a high three-digit number from the battery chemicals front as an exit rate. Thank you. 55:00 55 minutes Yes, you're right. uh we would uh we'll you'll see a growth uh going up quarter and quarter and uh the rise would be 55:08 55 minutes, 8 seconds significant and uh we expect uh to reach of course the three-digit number by the end of this quarter uh the end of this financial year in last quarter. Yes. 55:20 55 minutes, 20 seconds Sure. Uh that's it from my side. Sure. Thank you. 55:24 55 minutes, 24 seconds That's it from my side sir. Thank you and all the best. Thanks. 55:27 55 minutes, 27 seconds Thank you ladies and gentlemen. That was the last question for today. With that, I now hand the conference over to management for closing comment. 55:36 55 minutes, 36 seconds Yeah, thank you very much. um and the strong growth driver for short-term to long-term uh are all in place I think 55:45 55 minutes, 45 seconds and short to medium-term growth will be driven by the refrigerant and fluoropolymer segment and the medium to 55:52 55 minutes, 52 seconds long-term growth journey is equally encouraging for us as the advanced battery materials business is scaling up 56:01 56 minutes, 1 second and reaching up to the full potential in uh coming years. So with this I would like to thank you all for your interest 56:09 56 minutes, 9 seconds in GFO and thank you very much for being part of this call. 56:15 56 minutes, 15 seconds Thank you ladies and gentlemen. On behalf of 361 Capital that concludes this conference. Thank you for joining us.