Himadri Speciality Chemical Ltd — Q4 FY26

Himadri Speciality Chemical Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=wAy8F0vrp8M Published: 2 weeks ago

0:01 1 second Ladies and gentlemen, good day and welcome to the Himadrini Speciality Chemical Limited Q4 and FY26 conference call hosted by MUFG. 0:14 14 seconds As a reminder, all participant lines will be in the listenonly mode and there will be an opportunity for you to ask questions after the presentation 0:22 22 seconds concludes. Should you need assistance during the conference call, please signal an operator by pressing star then 0:29 29 seconds zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over 0:36 36 seconds to Mr. Chira from MUFG. Thank you and over to you sir. 0:44 44 seconds Good evening everyone and welcome to Q4 FI26 earning conference call of Madrid Speciality Capital Unit. Today in the 0:52 52 seconds call we have with us Mr. Kra Chri CMD and CEO and Mr. Kam Shagraad CFO. Before 1:00 1 minute we proceed with the call I would like to give you a disclaimer that this conference call may contain forwardlooking statement about the 1:07 1 minute, 7 seconds companies which are based on belie opinion and expectation. As of today actual result may differ materially. The 1:16 1 minute, 16 seconds statement are not guarantee of the future performance and involved risk and uncertaintity that are difficult to 1:22 1 minute, 22 seconds predict. A detailed three harbor statement is being given on page two of investor presentation of the company 1:30 1 minute, 30 seconds which are being uploaded on the stock exchange and on the company website. 1:35 1 minute, 35 seconds With this I now hand over the call to Mr. Anur Chadri. Over to you sir. 1:41 1 minute, 41 seconds Thank you Chira. Good evening ladies and gentlemen and thank you for joining us today to discuss Madri Speciality 1:49 1 minute, 49 seconds Chemical Limited performance for Q4 and FY26. 1:53 1 minute, 53 seconds I sincerely appreciate your continued trust and engagement and it is a pleasure to connect with you once again 2:01 2 minutes, 1 second at Himadri. Research and development is not merely an enabler. It is foundational 2:08 2 minutes, 8 seconds to who we are and how we have evolved over the years. It is not a standalone function but deeply embedded in our 2:16 2 minutes, 16 seconds business strategy and culture. It is part of Himad's DNA. Our growth into high value speciality chemicals and 2:24 2 minutes, 24 seconds advanced materials have been driven by deep and sustainable commitment to in-house innovation supported by a 2:31 2 minutes, 31 seconds robust and constantly evolving research and development ecosystem. 2:36 2 minutes, 36 seconds Today we operate one of the India's most comprehensive speciality solutions research and development platforms with 2:43 2 minutes, 43 seconds a team of over 180 scientists, technologists and subject matter experts including 28 PhDs in different streams 2:51 2 minutes, 51 seconds of chemistry and international specialists drawn from Japan, South Korea, Australia, United States, Europe and China. 3:00 3 minutes This global exposure combined with a strong process engineering and scaleup capabilities has enabled us to consistently translate ideas from 3:09 3 minutes, 9 seconds laboratory into commercially viable business alternatives, scalable solutions across carbon value chain, 3:18 3 minutes, 18 seconds specificity chemicals and increasingly advanced material chemistry. 3:23 3 minutes, 23 seconds Importantly, it is this same research and development engine that continues to drive the development of several new 3:31 3 minutes, 31 seconds breakthrough solutions that are currently in our pipeline. Many of which have reached advanced stages of development are in the progress towards commercialization. 3:42 3 minutes, 42 seconds During the current year, we spent 120 crores in research and development. 3:49 3 minutes, 49 seconds It is this long-standing R&D capability built recently over more than a decade of focused work in lithium ion chemistry 3:58 3 minutes, 58 seconds that has culminated into the most defining milestone for him. This year on 23rd April 2026 we successfully 4:08 4 minutes, 8 seconds commenced operation at our first anode material manufacturing facility in ministry West Bengal with an initial 4:15 4 minutes, 15 seconds capacity of 200 metric ton peranom marking a pivotal step in our entry into lithium ion battery material value 4:22 4 minutes, 22 seconds chain. What makes this achievement particularly significant is that the entire technology platform from raw 4:30 4 minutes, 30 seconds material processing to finished anode active material has been developed fully inhouse without reliance on external or licensed technologies. 4:40 4 minutes, 40 seconds At the core of this capability is a specially engineered high purity colar pitch produced entirely in house by 4:50 4 minutes, 50 seconds Himadri which serves as a primary raw material precursor and enabler for 4:57 4 minutes, 57 seconds superior quality consistency and performance. This degree of backward integration supported by proprietary 5:04 5 minutes, 4 seconds process knowhow gives him a fully integrated and self-reliant manufacturing ecosystem. 5:10 5 minutes, 10 seconds while manufact maintaining the flexibility to process alternative raw materials with as market evolves. 5:21 5 minutes, 21 seconds As we engage with OEMs at various sampling stages, our differentiated approach build on innovation, cost 5:29 5 minutes, 29 seconds efficiency and sustainability positions us strongly for validation and scale up in this high growth segment. Building on 5:38 5 minutes, 38 seconds this, our broader lithium ion battery material strategy continues to progress in a calibrated and disciplined manner 5:46 5 minutes, 46 seconds underpinned by strong focus on product capital deployment to drive sustainable returns and maintain a robust ROC 5:55 5 minutes, 55 seconds profile. Execution of phase one of our lithium iron phosphate cathode active material project which ambitions a total 6:04 6 minutes, 4 seconds capacity of 40,000 metric peranom is on track as part of this phase execution. 6:11 6 minutes, 11 seconds The first milestone capacity of 2,000 metric ton is targeted for commissioning by Q3 FY27. The balanced phase one 6:19 6 minutes, 19 seconds capacity will be progressively brought on steam over the subsequent 12 months closely aligned with customers approval 6:29 6 minutes, 29 seconds and demand visibility with FY29 and visas as the year for full phase one operations 6:37 6 minutes, 37 seconds beyond phase one. Our long-term vision is to build a scaled globally relevant LFP platform with a capacity to produce 6:46 6 minutes, 46 seconds 200,000 metric of LFP cathode active material catering to the approximately 100 gawatt of lithium ion battery 6:54 6 minutes, 54 seconds capacity executed in a phase manner and demand length manner. Importantly, this positions Margari as first company 7:02 7 minutes, 2 seconds globally to establish commercial scale FB cathode active material manufacturing facility outside China serving both 7:09 7 minutes, 9 seconds domestic and international markets and representing a significant step towards atma bharat. Customer engagements have 7:17 7 minutes, 17 seconds intensified significantly with leading Indians as well as global cell manufacturers and the response has been 7:24 7 minutes, 24 seconds strongly encouraging. This reinforces our conviction in LFP as a chemistry of choice across electric mobility and ESS 7:33 7 minutes, 33 seconds globally and underpins our confidence in long-term relevance of this platform. In parallel, our collaboration with Sikuna 7:42 7 minutes, 42 seconds battery technologies has progressed meaningfully over the year, marking a truly transformative phase in the 7:49 7 minutes, 49 seconds development of next generation anode materials through an exclusive technology licensing agreement. Himadu is secured right to access localized 7:58 7 minutes, 58 seconds commercialize Sikuna's proprietary silicon carbon anode technology in India for the world. 8:05 8 minutes, 5 seconds During the year, Sikona has achieved important milestone at pilot scale level with further cap capacity expansion 8:13 8 minutes, 13 seconds currently underway and targeted for completion by Q2 FY27 supporting 8:20 8 minutes, 20 seconds intensified engagement with global cell manufacturers across multiple stages of sample approvals. Performance-wise, 8:28 8 minutes, 28 seconds Shikuna's Gen 3 SICX material have demonstrated superior energy density and improved electrochemical 8:36 8 minutes, 36 seconds characteristics. While Gen 4 SICX has shown high capacity retention over extended cycle life, aligning with the 8:44 8 minutes, 44 seconds stringent requirement of leading global OEMs. 8:48 8 minutes, 48 seconds Further advancing our strategic road map, we have made our strategic investment in IBC, International Battery 8:56 8 minutes, 56 seconds Company, a US headquarter developer and manufacturer of chemistry agnostic prismatic lithium ion cells. This 9:03 9 minutes, 3 seconds collaboration represents an important milestone for him as it enables real world validity 9:11 9 minutes, 11 seconds validation and early commercial deployment of our lithium ion battery materials including LFP cathode active 9:18 9 minutes, 18 seconds material and anode solutions leveraging IBC operational lithium ion cell manufacturing facility in South Korea. 9:26 9 minutes, 26 seconds We are actively engaged in product validation, scale up and customer engagement thereby accelerating our readiness for commercial adoption. 9:36 9 minutes, 36 seconds From a market perspective, IPC operates across a diversified set of enduse applications including B2B fleet 9:44 9 minutes, 44 seconds customers, two, three, four wheelers, OEMs, global battery exports for energy storage and mobility solutions. 9:51 9 minutes, 51 seconds Importantly, IBC looking forward products road map also addresses high performance, high value applications 10:00 10 minutes such as defense, drones, AIdriven data center infrastructure aligning well with Himad's ambition to be an innovation led 10:09 10 minutes, 9 seconds and differentiated participant across the evolving global battery ecosystem. 10:14 10 minutes, 14 seconds Alongside this, our collaboration with Inbati creation continues to progress steadily with focused research efforts 10:22 10 minutes, 22 seconds underway across advanced lithium ion electrode materials. Ini brings strong capabilities in modular engineering 10:30 10 minutes, 30 seconds research and intellectual property development which complements ambition to build innovative high performance battery material platforms. 10:41 10 minutes, 41 seconds Taking together these initiatives and decisions and strategic investments and partnerships are enabling Mari to build 10:49 10 minutes, 49 seconds a future facing integrated product and technology platform across the lithium ion battery value chain by combining 10:56 10 minutes, 56 seconds advanced material innovation real world validation and deep research capabilities. We are creating a collaborative ecosystem that is well 11:05 11 minutes, 5 seconds positioned to serve emerging sunrise industries spanning electric mobility, ESS, defense, drones, next generation digital infrastructure. 11:16 11 minutes, 16 seconds This approach strengthens our ability to develop differentiated solutions, shorten commercialization cycle and 11:23 11 minutes, 23 seconds remain relevant as new applications, chemistry use cases continues to evolve globally. Turning to the operating 11:32 11 minutes, 32 seconds environment, recent geopolitical developments in West Asia have introduced volatility in energy prices 11:38 11 minutes, 38 seconds and logistics. However, our business remains structurally insulated as we are not dependent on that reason for our 11:47 11 minutes, 47 seconds core feed stock or operations. Our raw material platform, diversified end use portfolio and strong customer 11:54 11 minutes, 54 seconds relationship continue to provide stability and resilience. 11:58 11 minutes, 58 seconds I am pleased to report that FY26 has been a year of strong execution and delivery. During the year, we 12:06 12 minutes, 6 seconds successfully commissioned an additional 70,000 metric ton speciality carbon black facility at Mahest degree. Taking 12:13 12 minutes, 13 seconds our total speciality carbon black capacity to 130,000 metric ton peranom and overall carbon black capacity to 12:22 12 minutes, 22 seconds 250,000 metric ton peranom. This positions the MSTP facility as the world's single largest location for 12:30 12 minutes, 30 seconds speciality carbon black plant and places him among the top five players globally in this segment. 12:40 12 minutes, 40 seconds Alongside this, our old cola pitch and associated products business is also well positioned for the next phase of 12:48 12 minutes, 48 seconds growth with the successful debottling of our cola pitch distillation capacity taking it to 600,000 metric ton peranom 12:56 12 minutes, 56 seconds and the commissioning of liquid cola pitch export terminals at halvia and manro. We are now in a position to 13:06 13 minutes, 6 seconds leverage our operational headrooms and logistic capability to support growth in the 13:13 13 minutes, 13 seconds coming quarters and further consolidate our leadership position in Kolit segment. 13:19 13 minutes, 19 seconds Financially we have delivered our strongest performance to date on a consolidated basis. A beta school at 1,6 13:27 13 minutes, 27 seconds crores, PBT at 1,1 crores and profit after tax at 755 crores reflecting the 13:36 13 minutes, 36 seconds strength of our value added products portfolio, operational discipline and consistent focus on in-house innovation. 13:44 13 minutes, 44 seconds Beyond this, our growth continues to be supported by a well diversified portfolio spanning acquisite, 13:52 13 minutes, 52 seconds aluminium, lithium ion batteries, speciality chemicals and advanced chemicals. Turning to our next strategic 14:02 14 minutes, 2 seconds growth pillar, Bila Tires. FYI26 marks the first half year uh of operation of Bila Tires. 14:14 14 minutes, 14 seconds This year we have been able to revive the brand and steadily progress in rebuilding both market presence and the 14:22 14 minutes, 22 seconds operation operating foundation have been encouraging. We have approached this revival in a calibrated manner. 14:29 14 minutes, 29 seconds Prioritizing product market fit channel strength and brand repositioning before pursuing 14:36 14 minutes, 36 seconds volume led growth. Our current portfolio anchored by proven products such as Kala, Sanl Plus, BT339 and Ultrat 14:46 14 minutes, 46 seconds continues to be well received across key segments particularly in agriculture and commercial vehicles. In the fourth 14:54 14 minutes, 54 seconds quarter, we stentled our agree portfolio with launch of new STUs, Agri Plus and 15:01 15 minutes, 1 second Agriin tractor tire series, both of which are already witnessing incurren traction. 15:09 15 minutes, 9 seconds From a distribution standpoint, we have established a strong and expanding network of 43 distributors and over 15:17 15 minutes, 17 seconds 1,000 leaders, giving us a solid platform for scale. More importantly, brand acceptance continues to guide as 15:26 15 minutes, 26 seconds we consistently deliver on quality, reliability, and performance. Key drivers in this category. Looking ahead, 15:33 15 minutes, 33 seconds our focus is clearly on disciplined scaleup. We are now entering the next phase of revival 15:41 15 minutes, 41 seconds where production ramp up will be aligned closely with demand visibility and channel expansion over the next 12 to 24 15:49 15 minutes, 49 seconds months. Will we progressively enhance our capacity utilization supported by robust pipeline of new product launches 15:58 15 minutes, 58 seconds across agriculture, mining and commercial vehicle segments. In parallel, we are strengthening our manufacturing processes and supply chain 16:06 16 minutes, 6 seconds to ensure consistent quality and volume scales. Our objective is not merely to regain presence but to build a 16:15 16 minutes, 15 seconds competitive and differentiated tire business that can sustainably participate in both domestic and select international markets. 16:25 16 minutes, 25 seconds Bilatar is still early in its journey but the direction is clear. A measured and disciplined revival built on product 16:34 16 minutes, 34 seconds strength, market relevance and execution excellence. We are confident this business will evolve into a meaningful 16:41 16 minutes, 41 seconds contributor to Himadi's overall growth in the coming years. Beyond this, our consumer for into Durapress continues to 16:49 16 minutes, 49 seconds gain encouraging traction, adding further depth to our diversified portfolio. Looking ahead, our anthropon 16:57 16 minutes, 57 seconds karazel project is progressing as planned and expected to commence in Q2 FY27 helping address a significant 17:05 17 minutes, 5 seconds import dependency in India. At Madi, research and development is not a function, it is core capability embedded 17:15 17 minutes, 15 seconds in how we operate. Our global R&D ecosystem continues to drive innovation across all business verticals enabling 17:22 17 minutes, 22 seconds us to develop differentiated high value added solution for emerging industries. 17:28 17 minutes, 28 seconds Sustainability remains integrated to our core strategy guiding our approach to responsible 17:36 17 minutes, 36 seconds manufacturing, efficient resource utilization and long-term value creation. Himadri for the second year 17:45 17 minutes, 45 seconds has been awarded with platinum rating by Ecoartis being among the 1% uh company among 17:54 17 minutes, 54 seconds 150,000 companies rated by Ecois globally. 17:59 17 minutes, 59 seconds As I conclude, FY26 marks an important milestone in Iad's transformational journey. When we stood 18:07 18 minutes, 7 seconds before you 12 months ago, we made clear commitments and I'm pleased to say that we delivered on all of them and in 18:14 18 minutes, 14 seconds several areas gone beyond. We committed to expanding our facility carbon black capacity. We delivered. We spoke about 18:24 18 minutes, 24 seconds deepening focus on value added products which is reflected in our consumer for with Durap. We debottled our kota 18:32 18 minutes, 32 seconds distillation capacity from 500,000 to 600,000 metric tons and revival of bilaterally 18:44 18 minutes, 44 seconds this execution has been underpinned by strong operating plat performance as we set new benchmarks across key financial and operational metrics during the year. 18:54 18 minutes, 54 seconds As we look ahead, we are entering the next phase of growth with strong foundation, clear strategic direction and discipline execution. 19:02 19 minutes, 2 seconds With our expanding presence in advanced material, particularly within lithium ion battery ecosystem and the steady 19:10 19 minutes, 10 seconds revival of cars, we are confident of creating sustainable long-term value for all our stakeholders. Thank you. And I 19:18 19 minutes, 18 seconds now invite our CFO to take you through the financial performance in details. Thank you. Come. 19:30 19 minutes, 30 seconds Thank you G. Good evening everyone and thank you for joining us today. I trust that everyone has had a chance to review 19:38 19 minutes, 38 seconds our financial results and the latest investor presentation which have been made available on both the stock exchanges and our company's website. 19:46 19 minutes, 46 seconds This quarter and year marked an important milestone in our transformation learning on a consolidated basis. We are pleased to 19:54 19 minutes, 54 seconds share that we have achieved highest stable and back on both quarterly and full basis which was due to our focus on 20:03 20 minutes, 3 seconds a high value added solution operational efficiency and cost optimization. 20:08 20 minutes, 8 seconds From a quarterly perspective, in Q4 FY26, our consolidated revenue stood at rupees 1,288 20:16 20 minutes, 16 seconds crores as compared to 1,135 crores, an increase of 14%. 20:24 20 minutes, 24 seconds ITA came in at rupees 280 crores registering a growth of 21% yearonear 20:31 20 minutes, 31 seconds while PAT stood at rupees 28 crores delivering a strong growth of 34% yearonear 20:39 20 minutes, 39 seconds looking at the cumulative performance for fullear basis our consolidated revenue stood at rups 4661 20:47 20 minutes, 47 seconds croresa reached rups 1 crores uh uh up around 20:54 20 minutes, 54 seconds 19% yearonear from rupes 847 crores in FY25. 20:59 20 minutes, 59 seconds Profit after tax stood at rupees 755 crores reflecting a growth of 36% yearonear over 555 crores reported in FY25. 21:11 21 minutes, 11 seconds This performance highlights the strength and resilience across all the business segments. 21:17 21 minutes, 17 seconds Coming on standalone basis performance in Q4 FY26 revenue stood at rups 1,11 21:24 21 minutes, 24 seconds crores with AITA at rupes 252 crores while packed came to rups 186 crores 21:32 21 minutes, 32 seconds registering a growth of 17% against rups 158 crores of aida in FY25 21:40 21 minutes, 40 seconds for fy 26 on a standalone basis revenue stood at rups 4,45 crores a a rupees 978 21:49 21 minutes, 49 seconds crores reflecting a growth of around 16% when compared with 844 crores in a 25 21:57 21 minutes, 57 seconds while profit after tax stood at rupees 750 crores a jump of 34% as compared to 22:05 22 minutes, 5 seconds rupees 558 crores in FY25 over the last 5 years on consolidated 22:12 22 minutes, 12 seconds basis we have demonstrated a consistent and robust financial performance reflecting the strength of our strategic 22:19 22 minutes, 19 seconds focus and execution. Since FY22, our revenues have grown at an impressive CAGR of 14%. 22:28 22 minutes, 28 seconds More significantly, our AITA has expanded at a CAGR of 58%. 22:34 22 minutes, 34 seconds And our profit after tax has grown at an exceptional 110% CAGR. 22:41 22 minutes, 41 seconds In terms of financial health, we continue to maintain a resilient balance sheet as of 31st March 2026. We hold a 22:50 22 minutes, 50 seconds net positive cash balance of rupees 121 crores which gives us ample flexibilities to pursue growth 22:58 22 minutes, 58 seconds opportunities while maintaining a prudent approach to capital allocation. 23:02 23 minutes, 2 seconds Our return on capital employed has also shown a steady upward trajectory reaching to the level of 32% in FY26 a 23:10 23 minutes, 10 seconds test to our sharp focus on value creation and capital efficiencies. 23:16 23 minutes, 16 seconds With these results we believe we are well positioned to continue our upward trajectory building on a foundation of 23:23 23 minutes, 23 seconds financial strength, operational excellence and strategic foresight. Thank you. 23:33 23 minutes, 33 seconds No, we can uh start the question and answer session. 23:39 23 minutes, 39 seconds Thank you. Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a 23:46 23 minutes, 46 seconds question may press star and one on on the touchstone phone. If you wish to remove yourself from the question queue, 23:53 23 minutes, 53 seconds you may press star and two. Participants are requested to use handsets while asking of questions. Ladies and 24:00 24 minutes gentlemen, we'll wait for a moment while the question cue assembles. 24:18 24 minutes, 18 seconds The first question is from the line of sesh Jane from ICIC securities. Please go ahead. 24:27 24 minutes, 27 seconds Yeah. Hi, this is Sanjesh Jane. Uh thanks thanks for the opportunity and uh uh good evening uh and Kam G. 24:37 24 minutes, 37 seconds First question on the uh anode business like you have mentioned the growth path for your cathode where you want to start 24:44 24 minutes, 44 seconds with say 2,000 metric t and scale it to 40,000 in fi27 and eventually to the 24:51 24 minutes, 51 seconds 200,000 uh can you can you share us the thought process of the growth trajectory for anode. 25:00 25 minutes So for the anode business we are still working on it and uh in due course of time we'll come up with the figures and the investment required and the time frame. 25:11 25 minutes, 11 seconds Got it sir. But but what will be the market size for anode today and what is the economics between cathode and anode 25:18 25 minutes, 18 seconds and uh how do you see the uh pitchbased uh uh cathode uh anode demand uh versus 25:26 25 minutes, 26 seconds a siliconbased carbon in which we are developing parallelly. Um how do you see these uh portfolio playing out for us? 25:35 25 minutes, 35 seconds See uh cathode and anode together constitute an integral and important raw material for lithium ion batteries. 25:44 25 minutes, 44 seconds In terms of cost it is 65% of a cell lithium and cell cathode anode together and in the ratio suppose for a 25:54 25 minutes, 54 seconds lithiumion cell anode and cathode is used in a ratio of 1 is to2. So suppose 100 is the requirement of anode. So 200 26:02 26 minutes, 2 seconds will be the requirement of cathode. So basically uh in whichever cathode chemistry you are working but anode 26:10 26 minutes, 10 seconds requirement remains stable. So whether it's NMC, CLO, LFP whichever the chemistry is but you need anode and 26:18 26 minutes, 18 seconds anodes there are different types of anodes natural synthetic synthetic they are petroleum based and pula pitch 26:25 26 minutes, 25 seconds based. So we have the unique positioning of both. 26:30 26 minutes, 30 seconds And uh regarding silicon carbon anode material, it's it is added to uh 26:36 26 minutes, 36 seconds synthetic or natural anode to increase the capacity of the battery, increase the density and uh reduce the uh you 26:45 26 minutes, 45 seconds know charging time. So it silicon is an add-on. It makes to make hybrid anode. 26:51 26 minutes, 51 seconds So it's not actually uh that you can use either this or that. The silicon has to be added to this material. 26:59 26 minutes, 59 seconds Got it. Got it. But today we don't add it right. This is something which will happen. 27:03 27 minutes, 3 seconds We are adding already. It has started in some percent very small percent uh globally but since the capacity material 27:10 27 minutes, 10 seconds availability is very limited so that uh supply is not much. 27:16 27 minutes, 16 seconds Got it. Um my second question G on the Middle East issue. Uh we were planning to export cola pitch in the Middle East 27:25 27 minutes, 25 seconds uh and obviously South Africa and other geography. But Middle East is something where we have already started uh with 27:32 27 minutes, 32 seconds this situation. What's happening in the Middle East? Do you see there will be some shift in the focus for colar fitch from Middle East to other geography and which will be those geographies? 27:43 27 minutes, 43 seconds See this is a temporary phenomenon uh we feel and so uh some shipments were planned for Middle East but that's not 27:52 27 minutes, 52 seconds having going to have any material impact because we are diverting those material to other geographies. So there's absolutely no issues with that. 28:00 28 minutes So which are the geographies we are trapping? Uh apart from Middle East like we are looking at different geographies like Southeast Asia, Africa remains intact. 28:11 28 minutes, 11 seconds So these are the geographies. 28:15 28 minutes, 15 seconds Got it. But Southeast Asia we would see competition higher from China, right? 28:18 28 minutes, 18 seconds Geographically China actually competition is not there because we supply our quality is very high and plus we China cost is higher 28:26 28 minutes, 26 seconds than India. So even in India we supply Kula pitch has a price lower than China. 28:32 28 minutes, 32 seconds So that dynamics doesn't work for our business. China dynamic is no not at all valid for our business. 28:40 28 minutes, 40 seconds Got it. Got it. In the carbon black business we started this new plant. Um how has been the ramp up in that? That's 28:47 28 minutes, 47 seconds one. Number two, the situation in carbon black should be positive for us, right? 28:52 28 minutes, 52 seconds Because carbon black realization has gone up globally. There is a large capacity which uses screw based feed 28:59 28 minutes, 59 seconds stock while uh we use colar based feed stock. Now that colar prices my senses would not have gone as sharply as crude. 29:09 29 minutes, 9 seconds uh so this shift in the carbon black business from the higher input cost should positively reflect for him. 29:19 29 minutes, 19 seconds So the see what we have developed is a long-term sustainable business model and we don't look at you know quarter and 29:26 29 minutes, 26 seconds quarter uh ups and downs but uh one thing is there the model what we have built up we can transfer the increase in 29:34 29 minutes, 34 seconds price to our customers. So whether it is crude based or based whatever increase in price is there we transfer to our customers. So that has helped us to build up a resilient business model. 29:46 29 minutes, 46 seconds No, but in a situation where one car carbon black feed stock is expensive, we can use more of our own oil to produce 29:53 29 minutes, 53 seconds carbon black. That economics is much better right now. 29:57 29 minutes, 57 seconds Yeah, definitely that economics is better. But ult has also gone up. 30:03 30 minutes, 3 seconds So I don't think that is the delta on which has built up its business model also and that is not something which we 30:10 30 minutes, 10 seconds I also we have we work on a sustainable uh profit and which is uh firmly assured. 30:20 30 minutes, 20 seconds Got it sir. Uh that's it from my side. 30:22 30 minutes, 22 seconds Thanks for answering all those question and best of luck for the coming quarters. Thank you. Thank you so much. 30:30 30 minutes, 30 seconds Thank you. The next question is from Ri S from Sapia Capital. Thank you and please go ahead. 30:39 30 minutes, 39 seconds Yes. Hi sir, good evening. Uh can you hear me? Yeah. Yeah, we can hear you please. 30:44 30 minutes, 44 seconds Yes. Yes. So firstly coming back to this anode capacity specifically the 200 metric tons right can you tell us what uh what will be the you know peak 30:53 30 minutes, 53 seconds revenue potential uh from there and how will the utilizations look like in FI27? 31:00 31 minutes So this capacity is basically to commercialize our R&D efforts and to showcase that what we have worked on R&D 31:09 31 minutes, 9 seconds is workable on a commercial plant. So this is the beginning of the journey and uh if you I have next step we will be 31:19 31 minutes, 19 seconds announcing capex for large scale commercial capacity where meaningful revenue will start coming in. 31:29 31 minutes, 29 seconds Okay. Okay. So as of now nothing is expected from this 200 metric tons in terms of numbers. 31:35 31 minutes, 35 seconds In terms of numbers these are not significantly materialistic approval uh based volumes. 31:42 31 minutes, 42 seconds Okay. So okay so in F27 this will not be you know uh contributing to our revenue and sort. 31:49 31 minutes, 49 seconds This will be contributing but not materically but not materally. Okay. Secondly then coming to the BLA you know uh the the BA 31:57 31 minutes, 57 seconds tires segment which you have restarted how much did it contribute in FI6 in terms of revenue and how will it scale 32:04 32 minutes, 4 seconds up now going ahead topline contribution for the year was 187 course and we expect to be around 32:12 32 minutes, 12 seconds 3,000 codes of topline from this business in next four years. 32:18 32 minutes, 18 seconds So do you have any indication as to what will it be in April 7 particularly? 32:25 32 minutes, 25 seconds We don't give year on year you know yearly uh guidance. 32:30 32 minutes, 30 seconds Oh okay. Uh so what about like overall in consolidated level any guidance there 32:37 32 minutes, 37 seconds for revenue and uh our epida margins FI27? 32:42 32 minutes, 42 seconds See again coming to that I have given a guidance that FI25 we had a pack of 555 crores. So we have 32:53 32 minutes, 53 seconds committed to double this pat in next 3 years in FI28 to 1100 plus codes. So the right way to 33:00 33 minutes look at him is not at a bit but at PAT levels. If you consider look at him also as a percentage of top line it is 16 33:07 33 minutes, 7 seconds plus%. So because there is no interest and no additional cost. So the right way to look at madi is a consolidated 33:16 33 minutes, 16 seconds topline and rather than okay u so just uh last thing then uh if 33:24 33 minutes, 24 seconds I observe your top line has I think in FI25 it grew at 10%. Okay and FI26 it 33:32 33 minutes, 32 seconds largely has been flat correct. So with these new additions of the villa tires and the added carbon black capacity will 33:39 33 minutes, 39 seconds your top line also grow and at what rate? So yeah any indication there? 33:45 33 minutes, 45 seconds Sure. Sure. So so up till now last 3 four years you have not been able to see any growth in the top line practically 33:52 33 minutes, 52 seconds maybe few% but now the real topline growth starts. FI27 you will see topline growth also and bottom line growth also. 34:02 34 minutes, 2 seconds Okay. But you don't have any sort of uh growth number to attach. I don't want to give any growth number. Right. No. Okay. Okay. No problem sir. 34:11 34 minutes, 11 seconds Thank you so much. 34:15 34 minutes, 15 seconds Thank you. The next question is from the line of Akshai from AK Investment. Thank you and please go ahead. 34:24 34 minutes, 24 seconds Hello. Am I? Yes. Yes. 34:28 34 minutes, 28 seconds Okay. Thank you. Thank you so much for giving me this opportunity and uh also congratulations for the great set of number. Uh my first question is uh we 34:36 34 minutes, 36 seconds have generated the um highest ever gross profit margin this quarter. So uh do we see this trend will be continued going 34:46 34 minutes, 46 seconds forward for the next two to three years and also do we able to uh continue the 20% margin going forward? 34:56 34 minutes, 56 seconds Yes. Uh we are confident of achieving these on a sustainable basis. 35:04 35 minutes, 4 seconds Okay sir. And so looking forward also you'll see growth in the numbers. 35:11 35 minutes, 11 seconds Okay. Sure sir. Noted. And uh sir secondly on the US Iran war and geopolitical situation. So due to the 35:18 35 minutes, 18 seconds commodity prices in in all all over the world. So how do we see impacting our types of business and whether uh we will 35:26 35 minutes, 26 seconds face any uh pressure going forward uh due to this war? 35:33 35 minutes, 33 seconds See as I told in my opening commentary also we are resilient to any shock in any movement in uh you know or 35:41 35 minutes, 41 seconds dislocation in uh supply chain logistic in West Asia because of the ongoing 35:48 35 minutes, 48 seconds geopolitical situation given our nil dependence on this geography. 35:54 35 minutes, 54 seconds So definitely with with the energy prices going up the material prices going up this will have impact but good thing is that we'll be able to pass on this to our customers. 36:05 36 minutes, 5 seconds So as such we don't have an impact on our P&L for because of this geopolitical situation. 36:14 36 minutes, 14 seconds Okay sir. Okay understood and all the best for the future. Thank you. 36:22 36 minutes, 22 seconds Thank you. The next question is from the line of Nathan Shakar from Green Capital Single Family Office. Please go ahead. 36:32 36 minutes, 32 seconds Hi, good afternoon to the management. 36:34 36 minutes, 34 seconds This is Nathan Shakar from the Green Capital Single Family Office. 36:38 36 minutes, 38 seconds uh I my question is more from an investor's point of view rather than an analyst uh type of a question is that 36:46 36 minutes, 46 seconds for this annual year and uh in terms of uh approximate margin guidance for the three businesses which is let's 36:55 36 minutes, 55 seconds say advanced battery materials the turnaround of the acquired assets on BLA tires and obviously the main core business which is the specialtity carbon 37:03 37 minutes, 3 seconds black are you able to give any sort of indication uh margin guidance growth straight for the year. I do understand 37:10 37 minutes, 10 seconds that geopolitically or raw material cost will be up and down but just as an indication. Thank you. 37:18 37 minutes, 18 seconds So for the current year uh we we don't prefer to give any specific number guideline but on a macro basis I can 37:26 37 minutes, 26 seconds give you guideline that current year we will see both top line and bottom line growth. So up till now you have not we are not able to give any bottom line 37:35 37 minutes, 35 seconds growth basically because we are going for value added within the same product profile. So what was happening we were adding value to our existing product. So 37:44 37 minutes, 44 seconds the margins were increasing but the top line was not increasing in a big way but now with new capacities coming up you 37:52 37 minutes, 52 seconds will see topline growth plus margin expansion. So both you will see in the year to come. 37:58 37 minutes, 58 seconds Okay thank you. Thanks a lot and all the best for this year. Thank you so much. 38:06 38 minutes, 6 seconds Thank you. 38:09 38 minutes, 9 seconds The next question is from the line of animation chain from Dalal and Procha. 38:18 38 minutes, 18 seconds Please go ahead. 38:19 38 minutes, 19 seconds Thank you for the question. uh I want to ask what is the current utilization level that we have uh newly commissioned 38:27 38 minutes, 27 seconds 78,000 metric t of specialty carbon black and what is the steady state utilization level and it aa spurt 38:37 38 minutes, 37 seconds so we expect to have around 85 to 90% capacity utilization for our new uh 38:45 38 minutes, 45 seconds newly announced capacities for FY27 7 and uh AITA in terms of if you look at 38:53 38 minutes, 53 seconds our IITA per metric ton it was around 17,000 metric per metric ton on an average on the entire basket of 39:01 39 minutes, 1 second portfolio and this being speciality it will be significantly higher than this average 17,000 plus 39:11 39 minutes, 11 seconds uh and uh I want to also ask about that we have set up new uh subsidiary in China that we have mentioned. So why we 39:20 39 minutes, 20 seconds have set up that subsidiary and voted the so we are we will be importing some raw 39:28 39 minutes, 28 seconds materials and equipments from China. For that we have set up our subsidiary to take some local tax benefits. 39:37 39 minutes, 37 seconds Okay. Thank you. Thank you. 39:43 39 minutes, 43 seconds The next question is from the line of Duven Karakia from SKP Securities. Please go ahead. 39:51 39 minutes, 51 seconds Uh hello sir and congratulations on this robberous set of numbers. Uh my only request would be that in terms of sales 39:58 39 minutes, 58 seconds volume will it be possible for you to provide me with a breakup as to what was the volume generated between your legacy business carbon black and tires uh in this particular year. 40:11 40 minutes, 11 seconds So that till now we have not consolidated. So once we consolidate then we can discuss this. Now it's a 40:18 40 minutes, 18 seconds part of you know uh sales only which is coming into him. So uh as such number detail numbers we don't disclose. 40:31 40 minutes, 31 seconds Okay. So no problem. And uh any new updates with regarding to the capeex plan than what we already know like uh is there something on the block? 40:41 40 minutes, 41 seconds No, as of now we have already announced all the capex but yes anode capex will be announcing uh uh soon and once that 40:48 40 minutes, 48 seconds is finalized the volume uh the capacity and the capex that will come up with a 40:55 40 minutes, 55 seconds uh new disclosure. All right. So thank you so much. 41:02 41 minutes, 2 seconds Thank you. 41:05 41 minutes, 5 seconds The next question is from the line of Sagar Jetwani from Philip Capital PMS. Please go ahead. 41:13 41 minutes, 13 seconds Yeah. Uh thanks for the opportunity. 41:15 41 minutes, 15 seconds This significant jump in the other expenses is because of the forex loss. Is that correct? Yes. Yes. 41:22 41 minutes, 22 seconds Uh and so uh what is our hedging policy in that case? Can we see some curtailment of this uh you know impact from the forex volatility? 41:32 41 minutes, 32 seconds Yes, as you know there was sharp depreciation in rupees which impacted us on the import side and the export side 41:39 41 minutes, 39 seconds also we hedged something but generally we keep our position open but because of uh this huge volatility we hedged and 41:47 41 minutes, 47 seconds hedging because of the hedging we had to incur losses this time it was the other way around. So but looking forward we 41:55 41 minutes, 55 seconds are very vigilant on this and maybe we are confident that after Q1 Q1 there 42:03 42 minutes, 3 seconds may be some head but after that there will uh be very strong uh position in terms of uh any open position of FX. 42:14 42 minutes, 14 seconds Actually my question is not quarter on quarter it is more of a structural in nature. Can we reduce the volatility swing from these forex losses and long-term? 42:24 42 minutes, 24 seconds Definitely since we have export and import more or less are in parity. So leaving the position open leaves us with 42:31 42 minutes, 31 seconds very uh less chance of any FX volatility theory. 42:37 42 minutes, 37 seconds Understood. And secondly uh yeah so uh that that this time we hedged the 42:44 42 minutes, 44 seconds position thinking it was going to be volatile and that's why we had effect loss but our standing policy was to keep 42:52 42 minutes, 52 seconds the position open being import and export being more or less in parity with each other. So we will continue with our existing principles only. 43:02 43 minutes, 2 seconds Understood. So but you're saying that beyond Q1 the impact would reduce I don't think there will be any impact before after Q1. 43:12 43 minutes, 12 seconds Okay. Uh secondly how many new clients that we have added in last two years and you know geography wise any new 43:20 43 minutes, 20 seconds countries that we are planning to enter or scale up where you might be witnessing some kind of a significant opportunity given China plus one uh 43:30 43 minutes, 30 seconds there's a you know cost escalation in Europe as well. So some color on that would be helpful. 43:36 43 minutes, 36 seconds Definitely. So la last year our exposure was 56 countries. We were selling our product. This year it is 61 countries. 43:43 43 minutes, 43 seconds We added five more countries. 43:45 43 minutes, 45 seconds Particularly Europe is doing good and US is doing good. Uh for us uh in Europe also more more countries are being 43:53 43 minutes, 53 seconds added. So because of the as you correctly said because of the cost structure in Europe and USA this is 44:02 44 minutes, 2 seconds giving us a lot of advantage and China one policy is also working out well for our supplies to the global market. 44:11 44 minutes, 11 seconds Lastly any color on margin can you give up until FY28? I'm not talking about FY27 again not the one-year guidance 44:19 44 minutes, 19 seconds typically just you know structurally long-term how do you see the margins because we are adding some new capacities also considering that fact. 44:27 44 minutes, 27 seconds Yeah. So with the new capacities coming out we are confident of uh strengthening our existing margins further from here on. 44:37 44 minutes, 37 seconds From here on. 44:39 44 minutes, 39 seconds Yeah. Thank you. These were my questions. Thank you. 44:46 44 minutes, 46 seconds Thank you. The next question is from the line of Suhani Singh from SA capital. Please go ahead. 44:54 44 minutes, 54 seconds Okay. Good afternoon. Uh so I wanted to ask if the passenger car radior commissioning. So what is the targeted 45:01 45 minutes, 1 second PCR capacity the capeex and commissioning timeline and so PCR is a notoriously crowded segment in India. 45:09 45 minutes, 9 seconds What is the differentiation strategy for that as well? 45:14 45 minutes, 14 seconds So PCR we target to commission in next 24 months and uh differentiating strategy will be 45:22 45 minutes, 22 seconds we'll focusing more on EV uh that is the segment we will be focusing on uh and specialized tire for 45:30 45 minutes, 30 seconds electric vehicles and given the Himadi strength in carbon black chemistry so that gives us a 45:37 45 minutes, 37 seconds unique advantage of uh building a value added tire with more strength res 45:43 45 minutes, 43 seconds resilience and uh this gives us a unique positioning in the business the understanding of key raw material. 45:53 45 minutes, 53 seconds Okay. Okay sir. Uh I also wanted to understand uh the standalone other income jumped from 51 CS to 176 cr. So 46:02 46 minutes, 2 seconds could you break down the composition it means treasury dividend from subsidiaries government incentives or one-offs? 46:10 46 minutes, 10 seconds The basically this is because of FDR interest in uh investments that we have put in mutual fund gains. Then uh NCDS 46:19 46 minutes, 19 seconds that we have deployed uh in for uh operation of billas that fair value calculation then based on our investment 46:28 46 minutes, 28 seconds different investment they have fair value calculation is a combination of all these. 46:33 46 minutes, 33 seconds Okay understood sir. Um lastly with Halia and Mangalore liquid coal parage uh terminals commission what is the 46:42 46 minutes, 42 seconds targeted FY26 export value and what proportion of standalone CPP revenue do you export from expect from exports by 46:50 46 minutes, 50 seconds 28 FY28 see by FY28 we expect the new commission capacity of 100,000 tons which gives us 46:59 46 minutes, 59 seconds 50,000 tons of ultra pitch that will be completely exported to the global Okay, thank you very much. 47:07 47 minutes, 7 seconds Thank you. Thank you. 47:10 47 minutes, 10 seconds Thank you. The next question is from the line of Rohit Nagraj from 361 Cabriate. Please go ahead. 47:19 47 minutes, 19 seconds Uh thanks for the opportunity and congrats on good set of numbers. Uh so first question is on the anode material facility that we have commissioned. Uh 47:28 47 minutes, 28 seconds so here in terms of uh the commercial validation of materials, how much time will it take and which and all are the 47:35 47 minutes, 35 seconds customers where we will be targeting to send the material? Uh is it domestic uh exports? Uh how are we looking at it and 47:44 47 minutes, 44 seconds once the validation is done, how much time will it take for us to put up a new commercial sale plant? Thank you. 47:53 47 minutes, 53 seconds The idea to commercialize and start this plant was to expedite the time frame required for validity of material and 48:02 48 minutes, 2 seconds that is the idea behind commercializing this uh plant. Uh we are engaged with 48:08 48 minutes, 8 seconds all the customers in India and all the you know who's who in the industry globally. So we have already sent them 48:17 48 minutes, 17 seconds sample A which has been uh got a very good uh uh response from our customers in terms 48:25 48 minutes, 25 seconds of quality valid validation. Now we are have to send them uh sample B C D that 48:32 48 minutes, 32 seconds will start now once it is done then we'll come up with road map for our future capacity expansion but that will 48:40 48 minutes, 40 seconds happen very soon will not take a significantly long time now. 48:45 48 minutes, 45 seconds Sure. Uh just one alllight question in terms of the anode material pricing. Uh how has it changed over the last five 48:52 48 minutes, 52 seconds years? So what was the price about five years back and given that new technologies have come of the commercial 48:59 48 minutes, 59 seconds operations capacity how the price has been currently in terms of rupees per kg or you know dollar per kg or dollar per 49:07 49 minutes, 7 seconds ton? Thank you. So uh I don't want to comment on price per metric but to give you a broader idea all the cell 49:15 49 minutes, 15 seconds component prices have come down between 50 to 60% over the last four five years whether it is cathode or anode. 49:24 49 minutes, 24 seconds Sure. Sure. Uh and second also depending on what quality you make what grade you make what application is 49:33 49 minutes, 33 seconds so price is significantly valid. So it seems not [clears throat] right on my part to comment on permission price. 49:40 49 minutes, 40 seconds Sure. That's also uh the second question is in terms of uh our gross margins which have expanded. Uh so just to get a 49:48 49 minutes, 48 seconds perspective since the uh pricing of finished goods, work in progress and raw materials would have been at a higher 49:56 49 minutes, 56 seconds level given that they have been increased during the month of March. uh is there any element of inventory gains that we have observed during this 50:04 50 minutes, 4 seconds quarter and if so what could be the quantum of the same see uh the margins expansion that you 50:11 50 minutes, 11 seconds are say seeing is not one of thing it's a sustainable long-term uh margin improvement that because of our all the 50:20 50 minutes, 20 seconds efforts in terms of uh improvement in real operational efficiencies uh waste recovery systems we have been 50:29 50 minutes, 29 seconds able to do and these are sustainable on a long-term basis and they strengthen only 50:36 50 minutes, 36 seconds uh I was just concerned more on the gross margins front so and because of 50:43 50 minutes, 43 seconds revaluation or better valuation of the inventories uh is there any benefit of know inventory gains which we have 50:50 50 minutes, 50 seconds observed no no not really sure thank you so much and all the best sir 51:01 51 minutes, 1 second Thank you. The next question is from the line of Duven Karaka from SKP Securities. Please go ahead. 51:09 51 minutes, 9 seconds Uh hi sir. Uh I just wanted to confirm that in the segmental uh breakup of revenues that we've given. We've included a new category called others 51:17 51 minutes, 17 seconds which includes mining and other businesses. So could you uh shed a little bit light on what the other businesses are like? Is it tires combined? 51:26 51 minutes, 26 seconds That's tire combined, right? 51:28 51 minutes, 28 seconds And and uh you you mentioned a figure for tire sales this year. What was it? Could you please repeat that? 187 crores. 51:36 51 minutes, 36 seconds 187 crores. And would you uh be comfortable in sharing what was the realization per ton on this that you've gotten for this year? 51:44 51 minutes, 44 seconds We don't give uh per realization like that. 51:49 51 minutes, 49 seconds Okay. Not a problem, sir. Thank you so much. 51:54 51 minutes, 54 seconds Thank you. The next question is from the line of Vignesh SPK from Seville. Please go ahead. 52:03 52 minutes, 3 seconds Hi sir, am I audible? Yes. Yes, please. 52:07 52 minutes, 7 seconds Yeah. Uh just want to understand about upcoming chat segment or business. What would be the typical assertion for the project or for the segment? 52:18 52 minutes, 18 seconds Two times. Hello. 52:26 52 minutes, 26 seconds Hello. 52:32 52 minutes, 32 seconds Just want to understand the assert return for the upcoming cathode segment sir. 52:36 52 minutes, 36 seconds Yes. Two times. It will be two times of the asset investments turn over to assets. 52:42 52 minutes, 42 seconds Okay. And one more thing uh for the first we said around 2,000 tons could be commissioned. What is the phase one? How 52:50 52 minutes, 50 seconds much would be the total one in the phase one? What is Can you speak louder? 52:59 52 minutes, 59 seconds Hello. Is it better now? Yes. Yeah, it's better. 53:02 53 minutes, 2 seconds Yeah. Yeah. Yeah. Uh we said initials will be 2,000 MTPA and what would be the total phase from capacity? 53:11 53 minutes, 11 seconds 40,000. 53:13 53 minutes, 13 seconds 40,000 and 40,000 would be commissioned by FI 29. 53:18 53 minutes, 18 seconds Yes. Yes. No. FI 28 end of FI20 before FI 29. So FI 29 you will see the 53:26 53 minutes, 26 seconds full year of operation of entire 40,000 capacity and the reason logic see capital allocation has been done but we 53:34 53 minutes, 34 seconds have we are very careful in terms of deployment of capital because we are focused on ROC. So I don't want to as a 53:43 53 minutes, 43 seconds company policy we don't want to deploy capital ahead of requirement we can very well set up and start the commissioning and set up the facility 53:51 53 minutes, 51 seconds and deploy capital for 40,000 metric but since the approval period itself takes longer time so it makes sense to get 54:00 54 minutes 2,000 get it approved and in the same time 40,000 is 38,000 will continue and 54:07 54 minutes, 7 seconds it will commission so that there is utilization and proper return on capital employed. 54:14 54 minutes, 14 seconds Got it. So that's helpful. And what will be the total capex incurred for this 40,000 1125 crores. 54:24 54 minutes, 24 seconds Okay. Okay. Thank you. And uh in the scatter facility usually it is energy consu energy heavy or how how are we 54:31 54 minutes, 31 seconds planning to uh any plan for the energy side as such renewables or something like that for cathode? 54:40 54 minutes, 40 seconds Yeah. Yeah. Code plant. 54:42 54 minutes, 42 seconds Yeah. Yeah. We have renewable plans for to consume renewable energies. So those can be fun people. 54:50 54 minutes, 50 seconds No there you buy you enter into a long-term contract. We don't plan to invest on our own. 54:57 54 minutes, 57 seconds Okay. Okay. Okay. 55:03 55 minutes, 3 seconds Thank you. The next question is from the line of Yesha from Arkin Capital. Please go ahead. Hello. Good afternoon. 55:12 55 minutes, 12 seconds Good afternoon. Good afternoon. So I want to ask are there any binding lossus or optics signed with Indian or global 55:20 55 minutes, 20 seconds cell manufacturers for LFP supply and what proportion of phase one capacity is contracted? 55:29 55 minutes, 29 seconds What's the what cap proportion of phase one capacity is contracted? 55:36 55 minutes, 36 seconds See uh any MUS or LOI but you have signed we have NDA we cannot disclose this now at right point of time it will 55:45 55 minutes, 45 seconds be disclosed and uh uh for our phase one the capacity depending on the product approval this alloys will be affected. 55:58 55 minutes, 58 seconds Yeah. Okay. Okay. Got it sir. And my next question is as we can see the net cash declined from 392 crores to 122 56:05 56 minutes, 5 seconds crores despite record pat and the standalone current borrowings also rose from 306 crores to 719 crores. So could 56:14 56 minutes, 14 seconds you please walk me through the FY26 sources and users and moreover can you tell me about the steadystate debt level 56:22 56 minutes, 22 seconds that you will be comfortable carrying forward? 56:26 56 minutes, 26 seconds See the increase in working in the bank volume borrowing mean basically we have huge we have significant bank limits. So 56:33 56 minutes, 33 seconds we need to utilize this limit to keep our limits intact and we take at a lower rate and deploy back to the bank at a 56:42 56 minutes, 42 seconds higher rate. So that gives a delta also which is part of our so for our future expansion plan is to use the internal equivalent. 56:55 56 minutes, 55 seconds So in any case in future if we take debt also that will very significantly low portion and uh will be just timing gap 57:04 57 minutes, 4 seconds not much we don't want to be heavy on debt. Okay. Okay. Yeah that's completely fine. 57:12 57 minutes, 12 seconds Thank you sir. 57:18 57 minutes, 18 seconds The next due to time constraints, I now hand the 57:25 57 minutes, 25 seconds conference over to Mr. Anurak Chri from closing comments. Thank you. 57:35 57 minutes, 35 seconds Thank you once again for taking the time to join us on today's conference call. 57:40 57 minutes, 40 seconds We hope we have been able to address your queries adequately. This year has been truly been transformational 57:48 57 minutes, 48 seconds as we set new performance records, achieved world-class capacity, addition, earmark landmark recognition and made 57:57 57 minutes, 57 seconds decisive progress on our future growth engines and yet we firmly believe the best chapters of Himadi story are still 58:04 58 minutes, 4 seconds ahead of us. We remain committed to delivering long-term value and are grateful for your trust and confidence 58:12 58 minutes, 12 seconds and engagement as we scale new capacities and capabilities and 58:20 58 minutes, 20 seconds scale new frontiers and save the next phase of our growth. Should you have any further questions, please feel free to 58:29 58 minutes, 29 seconds reach to our investor partners relations partner MUFG in time. Ay, thank you once again for joining the con call today and 58:37 58 minutes, 37 seconds we look forward to your continued support. Thank you. 58:43 58 minutes, 43 seconds On behalf of Himadri Speciality Chemical Limited, that concludes this conference. 58:48 58 minutes, 48 seconds Thank you for joining us and you may now disconnect your lines.