J.G.Chemicals Limited — Q4 FY26

JG Chemicals Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=87o62pq7k8g Published: 1d ago

0:00 Ladies and gentlemen, good day and welcome to JGET Q4 FI26 and FI26 earnings conference 0:09 9 seconds call. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation 0:17 17 seconds concludes. Should you need assistance during this conference call, please signal an operator by pressing star then 0:24 24 seconds zero on your touchstone phone. Please note that this conference is being recorded. And now from the conference of 0:32 32 seconds San Nagaral, head institutional equities at SKP Securities Limited. Thank you and over to Mr. 0:41 41 seconds Good afternoon ladies and gentlemen. 0:43 43 seconds It's a pleasure to welcome you on behalf of JG Chemicals Limited and Skep Securities to this financial results conference call. We have with us Mr. 0:52 52 seconds Anit Junwala, M and CEO, Mr. Anojunwala fulltime director and CFO and Mr. Amit 0:59 59 seconds Agarwal general manager accounts and finance. We'll have the opening remarks by Mr. Aner Junjunwala followed by the 1:06 1 minute, 6 seconds Q&A session. Thank you and over to you Mr. Junjuna. 1:12 1 minute, 12 seconds Uh thank you so much. A very good afternoon to everyone and a warm welcome to JG Chemicals earning call for the fourth quarter and the full financial 1:21 1 minute, 21 seconds year ended March 2026. We sincerely appreciate the time all of you have set aside to join us today. Let me start 1:29 1 minute, 29 seconds with a quick recap of the company after which I will walk you through the key operational and strategic developments 1:37 1 minute, 37 seconds of the quarter and also the year gone by. By way of a brief introduction, JG Chemicals Limited is the largest zinc 1:45 1 minute, 45 seconds oxide manufacturer in India and also the country's largest zinc recycler. 1:51 1 minute, 51 seconds Globally, we count ourselves amongst the top five zinc oxide producers. Our product today finds application across a 1:59 1 minute, 59 seconds wide spectrum of industries including rubber, tires, ceramics, paints, coatings, pharmaceuticals, cosmetics, 2:08 2 minutes, 8 seconds agriculture, electronics, EVs, and also a range of specialtity chemical applications. Today our customer 2:17 2 minutes, 17 seconds franchise now extends to more than 200 domestic customers and also perhaps 50 2:24 2 minutes, 24 seconds plus international accounts and we are proud today to supply to every major Indian tire manufacturer and also to 2:33 2 minutes, 33 seconds nine out of the world's top 10 companies. Our manufacturing is anchored at our facilities in West Bengal and 2:39 2 minutes, 39 seconds Andhra Pradesh which together command installed capacity of close to 70,000 metric tons peranom with the Gujarat 2:48 2 minutes, 48 seconds project being commissioned during the current financial year and once both phases at the deh plant are on stream by 2:57 2 minutes, 57 seconds 2029 our combined wing capacity chemical capacity will exceed 115,000 metric tons 3:05 3 minutes, 5 seconds peranom. A scale which is perhaps matched today globally by only a few players. Tailor-made product development 3:14 3 minutes, 14 seconds is the cornerstone of our business model. As we close FI26, we are now offering more than 90 specialized grades 3:22 3 minutes, 22 seconds of zinc oxide to our customers up from the 80 plus grades we had at the end of FY25. 3:30 3 minutes, 30 seconds Since no two customers have identical specifications, this depth of customization covering a very broad 3:37 3 minutes, 37 seconds range of chemical and physical properties is something only we feel JG delivers with consistency. Our R&D team 3:46 3 minutes, 46 seconds is working on developing some other varieties of zinc oxide also which will further aid our customers compounding process. These products would be 3:55 3 minutes, 55 seconds introduced in the current financial year. Our Naidupeta facility continues to be a structural differentiator for 4:02 4 minutes, 2 seconds us. It remains the only IATF certified zinc oxide facility anywhere in the 4:09 4 minutes, 9 seconds world and it also carries the WHO GMP accreditition along with several Pharmacopia certifications. 4:17 4 minutes, 17 seconds Today, like always, sustainability and circularity are deeply embedded in how we operate. By maximizing the use of 4:25 4 minutes, 25 seconds recycled zinc as a feed stock, we lower our cost waste, lower our energy intensity, cut down on our carbon 4:34 4 minutes, 34 seconds emission, and also minimize our overall carbon footprint. This circular economy approach is not only good for resource 4:42 4 minutes, 42 seconds efficiency, it also strongly reinforces our long-term ESG positioning and our growth roadmap. With the strong focus of 4:51 4 minutes, 51 seconds the fire sector on green chemicals, our zinc oxide ranks right up there on the list of products considered beneficial 5:00 5 minutes to reach these ESG targets for our customers. In keeping with this sustainability agenda, I am pleased to 5:08 5 minutes, 8 seconds inform you that we have commissioned phase one of our solar power generation project at Naidupeta in FY26, which has 5:17 5 minutes, 17 seconds progressively been ramping up our share of renewable energy. Further phases of renewable investments are planned and we 5:25 5 minutes, 25 seconds will continue to pursue other sustainability initiatives in parallel. 5:29 5 minutes, 29 seconds Also the company is fully committed to delivering on its sustainability objectives. We are also exploring other 5:37 5 minutes, 37 seconds areas of sustainability initiatives which will not just help us reducing our cost but also will greatly improve our ESG score. 5:47 5 minutes, 47 seconds Friends, before I move on to our capacity projects, I want to spend a moment on what I believe is one of the 5:54 5 minutes, 54 seconds most exciting new initiatives in the JD pipeline today. our recycled rubber project. Since we last spoke, we have 6:03 6 minutes, 3 seconds made very meaningful and substantiative progress on this front. The pilot tile trials have just not continued. The 6:11 6 minutes, 11 seconds feedback we have received from our customers has been extremely positive and validated. On the back of this 6:18 6 minutes, 18 seconds strong customer endorsement, we are now actively working on a detailed commercial scale project pro project for 6:26 6 minutes, 26 seconds this product as well as on a few adjacent related products which will also go to the same customer segment. We 6:34 6 minutes, 34 seconds are very gung-ho about the prospects here and we will share more granular details like capa capex, capacity, timelines, revenue potential at an 6:43 6 minutes, 43 seconds appropriate time. This is a product line that we believe will materially increase the content per tire coming out of the 6:50 6 minutes, 50 seconds house of GG. Given our strong and deeprooted relationship with the tire customers already, our ability to scale 6:57 6 minutes, 57 seconds this business and make it a leader in its products category is something which we feel is possible in times to come. 7:06 7 minutes, 6 seconds Let me now take your focus on the capacity expansion initiatives. The green field project at the H continues to advance in line with our planned 7:14 7 minutes, 14 seconds timelines. This state-of-the-art facility will significantly strengthen our footprint in western India and put 7:22 7 minutes, 22 seconds us in very close proximity to several of our key customers in that geography. It will also open doors to new user 7:30 7 minutes, 30 seconds industries where currently our presence is next to negligible. For example, the ceramic industry which is also one of 7:38 7 minutes, 38 seconds the large consumers of zinc oxide. Civil construction at the DHI site is now in advanced stages and equipment, plant and 7:46 7 minutes, 46 seconds machinery installation has also commenced during the quarter as we speak. We continue to target the commissioning of phase one of the zinc 7:54 7 minutes, 54 seconds oxide production as per plan. Once operation and stabilize the the H facility will become a pivotal 8:02 8 minutes, 2 seconds contributor to our overall capacity buildup and also to our growth plans. 8:09 8 minutes, 9 seconds Alongside Bah we have also undertaken certain downfield debuting expansions and nueta to support the 8:18 8 minutes, 18 seconds future demand. Our existing capacity is more than adequate for near-term requirements and these incremental 8:25 8 minutes, 25 seconds additions will further enhance our a ability to serve our customer base as the demand scales up. Now let let me now 8:35 8 minutes, 35 seconds share our perspective on the industry environment which I must say is amongst the most encouraging we have seen in a 8:42 8 minutes, 42 seconds long time. Tire and rubber remain the largest demand pillar for our business. 8:47 8 minutes, 47 seconds Demand momentum across tire industry was extremely robust right through the fourth quarter and the same momentum has 8:55 8 minutes, 55 seconds continued in the current quarter as well as we speak. The tire industry continues to benefit meaningfully from the GST 9:03 9 minutes, 3 seconds reforms. The GST rate reductions from September 2025 have visibly improved affordability and 9:11 9 minutes, 11 seconds customer sentiments across both the OEM and the replacement segment. To put the strength of the underlying demand into 9:19 9 minutes, 19 seconds perspective, the Indian automo industry has closed FI26 by I mean wasn't by any measure an exceptional performance. 9:31 9 minutes, 31 seconds As per Fiat, demand across almost all categories of vehicle has grown and hit a fresh all-time high in the last 9:39 9 minutes, 39 seconds quarter. The robust automotive cycle is being mirrored in the tire industry. 9:44 9 minutes, 44 seconds Also leading tire majors have reported doubledigit revenue growth for Q4 FI26 9:51 9 minutes, 51 seconds with several of them reporting the best ever quarter. We feel it also in our demand and the industry has now 9:58 9 minutes, 58 seconds announced cumulative capex plan of over 20,000 crores over the next 3 years materially higher than what was on the table just a couple of quarters ago. 10:10 10 minutes, 10 seconds When the tire industry invests, JG Chemicals is a direct immediate beneficiary. Our customers today are 10:18 10 minutes, 18 seconds operating at very healthy utilization levels and we have strong visibility on a multi-year growth runway from here. 10:26 10 minutes, 26 seconds The union budget 2627 has further reinforced India's manufacturing growth story. The 10:33 10 minutes, 33 seconds continued focus on capital expenditure with infrastructure allocation of more than 12.2 2 lakh crores will definitely 10:41 10 minutes, 41 seconds improve logistic efficiency and sustain demand momentum across the auto sector and other industries. Pathma the AEX 10:50 10 minutes, 50 seconds body of the Indian tire industry has itself welcomed the budget as a significant positive for the long-term 10:57 10 minutes, 57 seconds tire demand growth. The recently concluded trade agreements with European Union and the US have also opened up 11:06 11 minutes, 6 seconds significant export opportunities for many of our customers in the segments where exports have been somewhat subdued 11:13 11 minutes, 13 seconds over the last few months. We are seeing green shoots of these demands already. 11:18 11 minutes, 18 seconds Outside the rubber and the tire, we continue to see very encouraging traction across the non- rubber portfolio, namely the pharmaceuticals, 11:27 11 minutes, 27 seconds ceramics, specialtity chemicals, electronics, agriculture to name a few. 11:32 11 minutes, 32 seconds Our focus on product customization and customer specific solutions is helping us deepen this partnerships and steadily 11:41 11 minutes, 41 seconds increase our share in each of these segments. Over the long term, we remain committed to growing the contribution of 11:49 11 minutes, 49 seconds nonaba application both to drive margin expansion and also to diversify our overall portfolio. Taken as a whole, we 11:58 11 minutes, 58 seconds are extremely confident and bullish on the long-term prospect of the Zing chemicals business driven by deep 12:05 12 minutes, 5 seconds customer relationship, continuous product innovation and a sustainability approach together with the capacity expansion 12:14 12 minutes, 14 seconds roadmap which we which I just mentioned about. JGC I feel is extremely well positioned to capture a disproportionate 12:23 12 minutes, 23 seconds share of the growth ahead. With these opening remarks I would now request our CFO Mr. Anudin Wala to take you through 12:32 12 minutes, 32 seconds the financial highlights for the quarter and the full year. Over to you now Anoj. 12:37 12 minutes, 37 seconds Thank you. Good afternoon once again everyone and I will now walk you through the financial performance for the fourth quarter and the full year ended March 12:45 12 minutes, 45 seconds 26. I'm pleased to report that JG closed FI26 on a strong note with the company 12:52 12 minutes, 52 seconds delivering its highest ever annual revenue EBIDA and PAT. For FI26, the 12:59 12 minutes, 59 seconds revenue stood at 972.9 crores. EBIDA stood at 97.9 crores and the PAT stood 13:07 13 minutes, 7 seconds at 68.6 crores. For the fourth quarter, we saw continued momentum across all our key customer segments with revenue for 13:15 13 minutes, 15 seconds Q4 at 286.2 crores, up 27.6% yearonear, 13:22 13 minutes, 22 seconds ibida at 26.8 crores and PAT at 18.9 crores. 13:32 13 minutes, 32 seconds The company was able to achieve doubledigit volume growth in its key segments on a fullear basis and this is 13:40 13 minutes, 40 seconds despite the slowdown witnessed in the first two quarters of the fiscal. The second half of the year saw strong 13:46 13 minutes, 46 seconds pullback that the company was able to capitalize on. We expect this momentum as we see strong demand from our end 13:54 13 minutes, 54 seconds customer segments. Our current utilization rates are in the late 70s and we can easily take this up to the 86 14:03 14 minutes, 3 seconds to 87% range as required within this calendar year. We would be adding the Gujarat capacity as well as the ground 14:11 14 minutes, 11 seconds expansion in our Naidupa plant and hence we are well entrenched to cater to the increased demand. The company has 14:18 14 minutes, 18 seconds surplus land available in its Naidup picka plant for further expansion of the zinc chemicals capacity as required and 14:25 14 minutes, 25 seconds shall review further capacity addition strategy in line with the market demand by next fiscal. 14:32 14 minutes, 32 seconds As mentioned by our managing director, the GST reductions from September have driven a clear and sustained improvement 14:39 14 minutes, 39 seconds in demand across all segments of the automotive industry. This momentum has continued into the current quarter as 14:47 14 minutes, 47 seconds well supported by improving customer sentiment and driving industry activity. 14:52 14 minutes, 52 seconds At this point, I would like to address a question that I know is on the minds of many investors, which is the impact of 14:59 14 minutes, 59 seconds the ongoing geopolitical conflict and the broader disruption it has caused to the global supply chains. There is no 15:06 15 minutes, 6 seconds denying the fact that the war has impacted virtually every industrial supply chain across the world. and zinc 15:13 15 minutes, 13 seconds dos our primary raw material has been no exception. However, this is precisely the kind of environment in which JDC 15:23 15 minutes, 23 seconds strength comes to the four. our scale, our financial strength, our balance sheet, our two decade plus track record 15:30 15 minutes, 30 seconds of honoring every commitment to our suppliers and our unmatched relationships with the draw suppliers across India and different parts of the 15:39 15 minutes, 39 seconds world have made us the preferred customer for majority of the draw suppliers globally. As a result, we have 15:47 15 minutes, 47 seconds been able to fully secure our raw material requirements and ensure uninterrupted supply to every one of our 15:56 15 minutes, 56 seconds customers even when smaller players in the market have struggled. Crisis like these only reinforce a conviction that 16:04 16 minutes, 4 seconds JG's franchise gets stronger, not weaker, when the operating environment becomes more challenging. 16:11 16 minutes, 11 seconds As you can see, we have achieved robust revenue growth year on year and also a strong quarter even though the first 16:19 16 minutes, 19 seconds half of the year was slightly slow because of micro factors. Now, we've also mentioned time and again that you 16:27 16 minutes, 27 seconds may witness a lag of one quarter when it comes to directly mapping revenue and evida 16:35 16 minutes, 35 seconds from Feb end and whole of March. We have seen the world being impacted due to the geopolitical conflicts and this war 16:44 16 minutes, 44 seconds which was not expected obviously has had an impact on our raw material pricing as well. During the month of March there 16:52 16 minutes, 52 seconds was a complete freeze in imports from the Middle East and also there were huge delays in shipments from Europe. Hence 16:59 16 minutes, 59 seconds raw materials during the month of March had to be procured from the domestic market at a much higher LME which was 17:07 17 minutes, 7 seconds prevailing at that point. This LME on the sell side would only get affected in April 2026. 17:15 17 minutes, 15 seconds Moreover, March was also characterized by a current spike in energy prices. 17:23 17 minutes, 23 seconds In line with our long-standing pricing philosophy, all of these incremental costs including higher rates, energy and 17:31 17 minutes, 31 seconds other ancillary costs have been transparently passed on to all our customers with effect from 1st April 17:38 17 minutes, 38 seconds 2026 itself. Our customers with whom we share deep multi-deade relationships have understood and accepted these 17:46 17 minutes, 46 seconds revisions. Benefits of these will acrue starting 1st April. Our business therefore remains strong, resilient and 17:54 17 minutes, 54 seconds well insulated from these pressures going into financial year 27. We remain positive that the demand scenario will 18:03 18 minutes, 3 seconds sustain into the coming fiscal providing very strong visibility for the tire industry and the broader industries we serve. 18:12 18 minutes, 12 seconds We are also hearing and expecting renewed economic thrust in our home state of West Bengal. As the general 18:19 18 minutes, 19 seconds economic activity increases in our region, we could see more investments across our end customer categories. This 18:28 18 minutes, 28 seconds bodess well for JD and it is well poised to tap into the growing demand going forward. As required, we shall also 18:35 18 minutes, 35 seconds evaluate further capacity additions in the eastern regions in the future. In addition to the time history 18:42 18 minutes, 42 seconds investments, several auto and auto ancillary companies have also announced fresh 18:49 18 minutes, 49 seconds capex plans for the year ahead. All of this points to a very robust demand environment in India and I genuinely 18:56 18 minutes, 56 seconds feel the country is geared up to attract a new wave of investment both from Indian as well as foreign companies. To 19:03 19 minutes, 3 seconds meet this rising demand, JG is itself in active capacity expansion mode to ensure that we have the capacity in place well 19:12 19 minutes, 12 seconds before the demand wave arrives. Thank you ladies and gentlemen and we would now like to open the floor to the Q&A session. 19:22 19 minutes, 22 seconds Thank you very much. We'll now begin with the question and answer session. 19:27 19 minutes, 27 seconds Anyone who wishes to ask a question may press R and one on the touchstone on telephone. 19:33 19 minutes, 33 seconds If you wish to remove yourself from the question queue, you may press R and two. 19:38 19 minutes, 38 seconds Participants are requested to use handsets while asking a question. 19:43 19 minutes, 43 seconds Ladies and gentlemen, we will wait for a moment while the question Q symbols. 19:49 19 minutes, 49 seconds Participants, you may press R and one to ask the question. 20:00 20 minutes The first question is from the line of tunnels from SGP securities. Please go ahead. 20:06 20 minutes, 6 seconds Good afternoon everyone. So uh can you give a brief about what is the capacity utilization for both uh the zinc sulfate 20:14 20 minutes, 14 seconds and the oxide your audio. Can you speak a little louder please? Yeah. Am I audible? 20:22 20 minutes, 22 seconds Yeah. Go ahead. 20:23 20 minutes, 23 seconds Yes please. Yeah. So what is the capacity utilization for zinc sulfate and zinc oxide? 20:33 20 minutes, 33 seconds So amongst the two segments for zinc oxide as an just mentioned the capacity utilization currently is about 77%. 20:42 20 minutes, 42 seconds We can easily take this up to 86 87%. So we still have about 10% of the spare capacity. The zinc sulfate business 20:50 20 minutes, 50 seconds which has gradually been growing is today running at approximately 60% of the installed capacity. 20:57 20 minutes, 57 seconds Okay. Thank you. Uh my next question would be what is the personal contribution of exports to sales? 21:05 21 minutes, 5 seconds I can give as we mentioned. Yeah. So the export to sales is roughly between 10 and 15%. 21:14 21 minutes, 14 seconds Okay. 10 and 15%. 21:16 21 minutes, 16 seconds And what is your last question? So what is the exclusion status of the debottle necking plant in Nigeta? 21:24 21 minutes, 24 seconds We are actively working on that and gradually small steps for debottlenecking are being taken which is freeing up certain capacity additions. 21:32 21 minutes, 32 seconds So this is a gradual process which is going on and we expect that by December 2026 we'll have uh complete debottlenecking of this facility. 21:44 21 minutes, 44 seconds Okay. Thank you so much. That's that's it. Thank you. 21:51 21 minutes, 51 seconds Participants you may press start and one to ask a question. 21:55 21 minutes, 55 seconds Next question is from the line of NRA from Khalki Ventures. Please go ahead. 22:01 22 minutes, 1 second Hi. Uh I wanted to know you know uh this has been mentioned that you know yours is the only plant which has an IATF 22:08 22 minutes, 8 seconds approval and a WH certification. So I wanted to understand how tough it is to get uh you know these certification for 22:15 22 minutes, 15 seconds any competit competitors and if there is any large organized competitor who might be uh you know eligible for the same. 22:24 22 minutes, 24 seconds Well certification is the certification is awarded on a particular day but the process to get the certification when 22:32 22 minutes, 32 seconds you ready yourself is a multi-year process. So it's not only about just paying a fee and getting a certification. 22:40 22 minutes, 40 seconds upgrading maintaining consistency, maintaining credibility and adapting to the needs of 22:46 22 minutes, 46 seconds the industry. So we feel that our our continued focus on the tire business and 22:54 22 minutes, 54 seconds in turn on the automo business. So that has helped us take this certification because over the years we've developed a 23:02 23 minutes, 2 seconds systems in line with the needs of the automotive industry which has been passed on to us by our good tire 23:09 23 minutes, 9 seconds customers. So you know this requires significant investment. This requires a culture which has to set inside the 23:17 23 minutes, 17 seconds company and so we feel that I mean today there is nothing which anybody else cannot do theoretically but for somebody 23:24 23 minutes, 24 seconds to do it practically I don't think it's a very easy task and the reason why I say this that if it was simple we would 23:32 23 minutes, 32 seconds have a few more zinc oxide players with this certification the fact that globally you're not seeing people with this certification itself is a proof 23:40 23 minutes, 40 seconds that it it it is not a very easy task but yes Why not? Somebody can do it if if the company puts that effort. But the question is how does one do it? 23:51 23 minutes, 51 seconds Okay. And uh you know the zinc chemicals that you're going to be producing in the age uh will that have like a higher 23:59 23 minutes, 59 seconds margin or will that also be in the range of uh you know 8 to 10 uh% of AITA margins that you're currently operating. 24:08 24 minutes, 8 seconds So you see our current EBIDA margins are usually in the 10 to 11% range and as we've mentioned before higher you know 24:15 24 minutes, 15 seconds higher value added products would help increase the blended margins to the 13 14% range. The production at Gujarat 24:23 24 minutes, 23 seconds would be a combination of the existing product portfolio and certain grades of higher product and higher performance chemicals which would help in increasing 24:31 24 minutes, 31 seconds the overall margin profile for the company going forward. Okay. Okay. Uh that's about what I say. 24:38 24 minutes, 38 seconds Thanks. 24:41 24 minutes, 41 seconds Thank you. Participants, you may press star and one to ask a question. 24:47 24 minutes, 47 seconds Next question is from the line of Ashita from Electrum PMS. Please go ahead. 24:53 24 minutes, 53 seconds Uh yeah. Hi, thank you so much for the opportunity sir. I just wanted to know if it's posible now. 25:06 25 minutes, 6 seconds Yes. 25:07 25 minutes, 7 seconds Yeah. So I just wanted thank you for the opportunity. I just wanted to know if it's possible for you to give us the 25:14 25 minutes, 14 seconds volume growth uh for the quarter and for year. 25:20 25 minutes, 20 seconds So uh we are confident of you know achieving double digit volume growth. 25:25 25 minutes, 25 seconds This is what we had outlined earlier as well and even in this fiscal uh our volume growths have been in the double digits range and even for the current quarter we've been in the mid- teens. 25:38 25 minutes, 38 seconds Uh what would be the volumes for the Bangkok side for this quarter and responsible? 25:42 25 minutes, 42 seconds Uh as a company policy we do not disclose volume numbers uh and we we've mentioned this before as well. And would 25:51 25 minutes, 51 seconds it be possible for you to give us the utilization for zinc oxide and zinc sulfate and corresponding realization? 25:59 25 minutes, 59 seconds We have already mentioned the utilization rates for the zinc oxide in the late '7s and the zinc sulfate in the 60s. already mentioned that 26:08 26 minutes, 8 seconds uh and sir with the upcoming uh plant at Naidupa would would it be possible for you to bifocate it into zinc sulfate and 26:15 26 minutes, 15 seconds zinc oxide like how much volume how much capacity is coming up into zinc sulfate and zinc oxide so the nigopa plant is already 26:23 26 minutes, 23 seconds operational I don't know why you're saying upcoming plant no no the the new brownfield that expansion that is going to take place so the brownfield expansion is taking 26:32 26 minutes, 32 seconds place taking place for both the zinc oxide and the zinc sulfate units. So there are different products being uh developed for both the units uh for both the products. 26:42 26 minutes, 42 seconds Okay. Sure. Thank you so much sir. Thank you. 26:48 26 minutes, 48 seconds Participants you may press star and one to ask a question. Next question is from the line of dal sha from Philip Capital. 26:57 26 minutes, 57 seconds Please go ahead. 26:59 26 minutes, 59 seconds Yeah good afternoon sir. Uh congratulations for the good set of numbers. So my question is as you mentioned that in the month of March 27:06 27 minutes, 6 seconds there was a rise in the zinc draw and you know maybe from the month of April we have seen in the rise in the zinc 27:15 27 minutes, 15 seconds oxide Friday. So how much price rise we have seen in a raw material correspond with how much increase we have seen in our end product. 27:25 27 minutes, 25 seconds So to answer this question I mean the idea in difficult times in a time when there is a crisis around the world the 27:33 27 minutes, 33 seconds idea is not to make any undue advantage or undue profit. So we have transparently passed on whatever cost 27:42 27 minutes, 42 seconds implications has come on us whether it is on account of energy whether it is on account of uh raw material so that has 27:49 27 minutes, 49 seconds been passed on. So practically speaking we should be at our regular IIDA levels 27:57 27 minutes, 57 seconds margin levels where we are supposed to operate. Now obviously in this period there has also been some rise in the 28:05 28 minutes, 5 seconds zinc prices which always as a matter of fact occurs in the following quarter due to a time lag. That's it. 28:14 28 minutes, 14 seconds Okay. So maybe whatever margin impact that we have seen in Q3 and even in Q4 okay you you are of the view that when 28:22 28 minutes, 22 seconds we establish Q1 this result you may again get that 10 to 11% margin change so we are even uh at the end of the year 28:31 28 minutes, 31 seconds if you take a year figure we are still in the region of 10 plus IDA level so 28:38 28 minutes, 38 seconds going forward this could be even better okay and so current whatever we have seen in part that the rising or you know 28:46 28 minutes, 46 seconds commodity price scenario you know first we get the benefit and then we pass it on to the end customers. So that is also equity better margin in the coming quarters. 28:56 28 minutes, 56 seconds Your understanding to a certain level is correct. Uh a rising commodity prices leads to inventory gains which obviously 29:04 29 minutes, 4 seconds acrew in the following quarter. So this will happen but the inventory gains are not uh I mean the gains are not passed to the customer because the inventory 29:12 29 minutes, 12 seconds gain is retained by the company because there would also be times going forward and we have seen in the past where there have been drop downs in zinc prices also 29:21 29 minutes, 21 seconds which also temporarily affect the inventory. So any any negatives that have come because of that have also been 29:29 29 minutes, 29 seconds absorbed by the company in the past. So going forward any gains on account of zinc price movement and on the inventory will be retained by the company and not passed on. 29:40 29 minutes, 40 seconds Okay sure sir second thing on the zinc sulfate side if I look at your performance of zinc sulfate particularly in FI26 29:47 29 minutes, 47 seconds uh largely it has remained flat if I compare it with the FI25. What was the reason behind you know zinc the flat performance of zinc confer as you 29:56 29 minutes, 56 seconds mentioned that ultimately we want to increase our non- rubber revenue but however in effort to increasing the performance was relatively on the softer side. 30:07 30 minutes, 7 seconds So increasing the non rubber revenue zinc sulfate is not a very large part of that. When we say increasing non- rubber 30:15 30 minutes, 15 seconds revenue in the zinc oxide business, we mean is focusing on segments which are outside the tire and rubber. So like one 30:24 30 minutes, 24 seconds of the biggest segment is ceramics which constitutes to almost a very very large percentage. The next largest percentage 30:31 30 minutes, 31 seconds of consumption in India today our share over there is negligible. So the dahage plant the moment it comes up because the center of ceramic production is in 30:39 30 minutes, 39 seconds Gujarat the Modi region. the DH plant would be equipped to cater to that. Then there are a lot of speciality chemical manufacturers around that region where 30:48 30 minutes, 48 seconds also today sending material from whether eastern India plant of Kolkata or the southern plant of Nidopeta is not such 30:55 30 minutes, 55 seconds an easy job. Customers like suppliers to be closer to them. So those are the effects by which the share of non-rubber 31:05 31 minutes, 5 seconds tire will increase. Now coming to the sulfate side uh I would request Amish to take it up. So sulfate you know what has 31:12 31 minutes, 12 seconds happened is that sulfate is used primarily by the farmers and uh last entire fiscal week were in a scenario 31:20 31 minutes, 20 seconds where the prices of zinc sulfate kept rising every month. It was due to mainly due to input cost pressures whether it's the prices of zinc cash or the prices of 31:29 31 minutes, 29 seconds sulfuric acid. In a in a scenario where the prices keep on rising every month, the farmer tends to defer the purchase 31:37 31 minutes, 37 seconds and the usage of zinc sulfate which is mainly a micronutrient in his own farm. 31:42 31 minutes, 42 seconds So that was the reason why the sales were a little muted in the last fiscal. 31:47 31 minutes, 47 seconds However, in the last couple of months, we the farmers have also actually accepted and realized that this is the new normal price for the zinc sulfate. 31:56 31 minutes, 56 seconds So you know you can only defer the consumption of a particular micronutrient for a certain period and once the pricing has got you know reset 32:06 32 minutes, 6 seconds at a particular level it's got reset at that level for all the farmers and the farmers will have no choice but to use it. So we are seeing slight demand uh 32:14 32 minutes, 14 seconds you know green shoots coming off in the last couple of months and we expect that you know with the new pricing range which is being set now this will become 32:23 32 minutes, 23 seconds the new standard normal and demand will come back to its old uh older days. 32:28 32 minutes, 28 seconds Okay just last one question from my end so Gujarat plant is going to commission in H1 FI 27. So what kind of utilization 32:36 32 minutes, 36 seconds you are expecting in the current year let's say in H2 and maybe for the FDI for the Gujarat plan yes sir 32:47 32 minutes, 47 seconds you know if it's operating for 6 months in a year only so let's let's talk about utilization for those 6 months only I 32:54 32 minutes, 54 seconds think we should get to about 30 to 35 to 40% range for that period and for the full year which is the next financial 33:02 33 minutes, 2 seconds year which is FI28 plate we should get to about 65 to 70% utilization for that plant. 33:10 33 minutes, 10 seconds Okay. Okay. Thank you so much for answering. Thank you. 33:19 33 minutes, 19 seconds Next follow-up question is from the line of Naj from Khalki Ventures. Please go ahead. 33:24 33 minutes, 24 seconds So your presentation said that the hange facility you will be investing 100 crores from internal occurs and it will 33:31 33 minutes, 31 seconds earn you around 900 crores of sales. Uh this is of course at full capacity. So this is also in line with the previous question that uh so can we expect that 33:40 33 minutes, 40 seconds by say FI 29 we will be uh able to see uh an addition of say 900 crores of sales on your revenue. 33:49 33 minutes, 49 seconds Yes, more or less your what you've said is correct. 33:53 33 minutes, 53 seconds Okay. And you are expecting to reach 100% capacity because obviously there will be uh other products than zinc sulfate and zinc oxide is my 34:02 34 minutes, 2 seconds understanding. Okay. So yeah. So 100% capacity of the achievable capacity. There is a name plate capacity. There is an achievable 34:10 34 minutes, 10 seconds capacity. So 100% of the achievable capacity. Okay. Yes. 34:13 34 minutes, 13 seconds Okay. Okay. And uh so so uh like the uh you know like this is a very basic question. I wanted to understand that as 34:22 34 minutes, 22 seconds a percentage of a production of a tire what is the amount of zinc oxide that is required if you can throw some light on 34:30 34 minutes, 30 seconds that you know because obviously you know your customers are increasing their uh you know increasing the capacities 34:38 34 minutes, 38 seconds and you are saying that you know as the capacity goes up your sales will also go up so what I'm trying to understand is that uh how uh important is uh you know 34:47 34 minutes, 47 seconds as a percentage of the total cost how important is oxide for their supplies. So there are two parts to this question. 34:54 34 minutes, 54 seconds One is your quantity. On the quantitative terms, roughly 3.5 to 5% of 35:00 35 minutes the compound is zinc oxide. And in terms of cost, how much zinc oxide contributes to a tire? It's roughly about 1 to one and a half% of the tire cost. 35:11 35 minutes, 11 seconds Okay. Okay. Okay. Thank you, sir. Thank you so much. Thank you. Thank you. 35:20 35 minutes, 20 seconds Next question is from land of Adata from SIPL. Please go ahead. 35:26 35 minutes, 26 seconds Yeah. Hi sir, thanks for the opportunity. Uh basic question now uh so prices have been increasing I think for 35:33 35 minutes, 33 seconds the last two quarters now and generally in the past what we have seen is we generally get the benefit of inventory gains during such a period but if I look 35:42 35 minutes, 42 seconds at the numbers in Q3 and Q4 there doesn't seem to be any benefit which has flown through the company. Uh so if you help us understand why is that? 35:52 35 minutes, 52 seconds So so if you were to take the zinc prices in the December quarter and zinc prices 36:00 36 minutes in the March quarter I mean there has not been much increase honestly speaking there is hardly an increase of about 2%. 36:10 36 minutes, 10 seconds So it's not it's not a great increase. 36:13 36 minutes, 13 seconds like uh maybe perhaps you might just want to look at the figures between the quarter the uh the third quarter and the 36:20 36 minutes, 20 seconds fourth quarter prices have gone up by hardly 2%. 36:26 36 minutes, 26 seconds No, now as we speak in the last 30 days to 36:34 36 minutes, 34 seconds 60 days prices have gone up. So that benefit you would see in the current quarter but between December to March there's hardly been a rise of about 2%. 36:46 36 minutes, 46 seconds And I was more talking about from uh June and September quarter because in September from September almost I think moving prices are increasing. 36:56 36 minutes, 56 seconds So in the last call also I think yeah I think at the last call also you 37:03 37 minutes, 3 seconds had mentioned that we might be getting some benefit in Q4. 37:11 37 minutes, 11 seconds So if you see the first half numbers uh the first half our total uh you know just one second I'll just 37:20 37 minutes, 20 seconds share with you the number the total IBIDA uh was much lower with the second half. 37:30 37 minutes, 30 seconds So obviously uh the there has been an increase in the absolute quantum of IBITA also as and if you see the margins 37:39 37 minutes, 39 seconds also in the first half it was slightly low and started to inch up towards Q3. 37:43 37 minutes, 43 seconds Q4 as we mentioned the month of March got impacted because of uh very high energy prices and also because of higher 37:52 37 minutes, 52 seconds raw material price which had to be procured on spot basis in the month of March when the LM shot up and the supply chain got disrupted. So that partly 38:00 38 minutes impacted the you know in the margin in March which correspondingly has an impact on the entire quarter. 38:09 38 minutes, 9 seconds I just have to understand uh how much of our sales is on contractual basis and how much of it is in spots and in on 38:17 38 minutes, 17 seconds contractual basis as well uh how frequently is the reset happening with the customers. 38:23 38 minutes, 23 seconds So bulk of our sales is on contractual basis and as far as the price movement is concerned as we've explained before 38:32 38 minutes, 32 seconds our sales prices directly linked to the LME on which even our cost of raw materials is linked. So we have a very 38:39 38 minutes, 39 seconds pass on model any increase in raw material prices has automatically gets passed on to the customers. Now if there 38:48 38 minutes, 48 seconds are any unprecedented situations like the one which happened in March those kind of resets happen like we said it 38:56 38 minutes, 56 seconds happened from 1st of April because the impact of that came in March. So obviously you watch the impact you you 39:04 39 minutes, 4 seconds have a dialogue with the customer there is a process and from 1st of April that was passed on. 39:11 39 minutes, 11 seconds Understood sir. And now sir for this Gujarat plant uh should one assume that uh bulk of our seals will be brittle by 39:19 39 minutes, 19 seconds the ceramic sector or would tire be also a big component uh for the fields to pick up in Gujarat. 39:27 39 minutes, 27 seconds So Gujarat will have a combination of this about say 30 35% of the sales would 39:34 39 minutes, 34 seconds come from ceramics. There would also be an equal percentage from the tire business because there is a lot of tire industry which is also there in the 39:43 39 minutes, 43 seconds Gujarat region. Some of our large customers also have plant in that region where we are currently not serving them at all. Our wallet share with them in 39:51 39 minutes, 51 seconds those plants is almost zero. So those benefits will also occur. So it will be a very healthy mix of an equal mix of 39:59 39 minutes, 59 seconds tire ceramics and non- rubber also excluding ceramics also. 40:06 40 minutes, 6 seconds And that's it. And now sorry it's hard to understand the complicated landscape in the western part of India. Uh so 40:13 40 minutes, 13 seconds there would already be suppliers supplying to the ceramic and the tire companies. Uh so if you just help us 40:20 40 minutes, 20 seconds understand uh what kind of competition is present in that part of India and uh what would help us gain market share uh uh in ceramics and tiles. 40:33 40 minutes, 33 seconds So basically in the Gujarat side we have some players who are fairly small and there is a couple of other players who 40:41 40 minutes, 41 seconds are midsize. So nobody quite matches the capacity and scale of JD today. So today 40:48 40 minutes, 48 seconds say for example a large customer of ours is say in the tire segment they have plants there. Now they are looking to 40:56 40 minutes, 56 seconds leverage our presence our product even in those plants. But today because our plants are only situated in south and 41:03 41 minutes, 3 seconds eastern India as I mentioned the wallet share of them is zero by virtue of JG having a presence there it is very 41:10 41 minutes, 10 seconds natural for them to also include us in their scheme of things for those plants. 41:16 41 minutes, 16 seconds So irrespective of the fact that those plants are being today served perhaps by a smaller competitor but the fact that 41:22 41 minutes, 22 seconds you have a large player in the space there in six in 3 to 4 months time would definitely want the tire companies to 41:31 41 minutes, 31 seconds also include us because today our share with them is higher in all the other plants. There is a reason for that. we have the requisite capability to you 41:39 41 minutes, 39 seconds know deliver product tailor made to their needs and also innovate them with them. So as Anuj had mentioned earlier 41:48 41 minutes, 48 seconds also we are also developing certain customized products for our customers. 41:53 41 minutes, 53 seconds This is also outside the rubber industry also. So today the ceramic industry is using a plain vanilla zinc oxide. I am 42:02 42 minutes, 2 seconds not trying to say that we will do a complete change in the product u chemistry but we are also looking to introduce certain newer products for 42:10 42 minutes, 10 seconds those markets and which will be beneficial to the customer. So we expect that we should be able to gain market share and uh since the scale and the 42:20 42 minutes, 20 seconds size of those competition in that region is still quite nent it's quite small and since our capacity will be the 42:28 42 minutes, 28 seconds largest uh this 40,000 capacity in the western part of India that would be fair yes it would be fair to assume 42:36 42 minutes, 36 seconds understood and now sir on the ceramics part now uh GB strong the tire part so 42:43 42 minutes, 43 seconds there is uh one uh one advantage is that the approval process in tires is pretty long. Uh but 42:51 42 minutes, 51 seconds when you go into a ceramics industry now how the approval timelines uh over there and uh the I believe the customer base 43:00 43 minutes would also be a pretty fragmented. Uh so just wanted to help us understand uh uh how do you think the penetration for us would happen in the ceramic industry? 43:09 43 minutes, 9 seconds Would it be gradual or you think you could quickly gain market share in that? 43:15 43 minutes, 15 seconds So let me take you back maybe a decade back when even the tire industry was a space. The tire industry evolved over 43:25 43 minutes, 25 seconds time. Then their OEMs like the Marutis of the world or the Hyundai of the world started putting pressure on the tire 43:32 43 minutes, 32 seconds industries for more stability, for more systems, for more you know I mean a a 43:38 43 minutes, 38 seconds lesser uh supplier base so that you know consistency can be maintained. So then the tire industry started to evaluate 43:46 43 minutes, 46 seconds scale and size and started to choose suppliers based on scale size. That's how JG started to penetrate more and 43:53 43 minutes, 53 seconds more. Today the ceramic market is slightly not as organized at today's tire market but we feel that the ceramic 44:00 44 minutes industry is also coming of age in the sense that today we have foreign ceramic companies setting up shops in uh the 44:07 44 minutes, 7 seconds Gujarat region. We have some of our own facilities who are supplying to international brands. So the ceramic 44:14 44 minutes, 14 seconds industry also gradually is you know developing and finding the need to have suppliers who have a better scale size 44:23 44 minutes, 23 seconds systems etc. So we feel JD gets that on the table. So penetrating into them would not be such a difficult task and 44:31 44 minutes, 31 seconds as you rightly and one thing important to say is definitely the approval processes in ceramic is nowhere compared 44:38 44 minutes, 38 seconds to the tire sector which is far quicker and which you know already bodess well for us and we've also already started to 44:46 44 minutes, 46 seconds seed the market. So it's not that the ceramic sector customers are not aware of JG. We may not be big suppliers today to them but we already are in dialogue 44:54 44 minutes, 54 seconds with them. So we started to do the groundwork for that in the last one year. 45:00 45 minutes Yes. Understood. And now sir in our type of industry uh generally at what kind of utilization levels would our facility 45:08 45 minutes, 8 seconds break even our facilities would break even above 60% 60 65% but ideally we like to 45:16 45 minutes, 16 seconds operate our capacities above 75%. And the moment we reach 80 85 we 80 plus we start looking at more expansions. 45:27 45 minutes, 27 seconds Understood. Understood. So there might be some losses uh in FI27 Gujarat facilities. 45:34 45 minutes, 34 seconds I mean you see the period for which we will be operating will be very small and uh for any new plant when you start the 45:42 45 minutes, 42 seconds plant there yes there could be some small uh you know startup cost associated with that but I think the overall growth in the volumes would more 45:51 45 minutes, 51 seconds than enough compensate for any you know small cost increase pertaining to that plant. 46:06 46 minutes, 6 seconds Thank you. 46:09 46 minutes, 9 seconds Next question is from the line of Deep Gandhi from my thought PMS. Please go ahead. 46:15 46 minutes, 15 seconds Yeah. Hi sir. Um so first question is again I mean on the zinc prices. So for you know broadly see between Q3 to Q1 46:22 46 minutes, 22 seconds there has been almost you know 20% increase in zinc prices and last quarter I mean you are trying to highlight that we might see some kind of inventory 46:30 46 minutes, 30 seconds gains in Q4. So just wanted to check I mean have we seen any inventory gains in Q4 and if you can share that number. 46:38 46 minutes, 38 seconds So between QZ and Q4 as I just mentioned the actual increase has only been about 2%. 46:49 46 minutes, 49 seconds Yeah that's so there has not been any significant inventory gains but at the same time 46:57 46 minutes, 57 seconds March as we said there's a lot of cost pressure. So even without a significant inventory gain and a cost pressure the company was able to deliver its numbers. 47:07 47 minutes, 7 seconds So that would be an indication for you to you know comprehend the numbers better. 47:14 47 minutes, 14 seconds Actually what I was trying to indicate and based on our conversation which we had in last quarter so the inventory gains for Q3 quarter Q between Q3 to Q1 47:24 47 minutes, 24 seconds was going to come with a lag in Q4. So I understand in Q4 there wasn't any increase in Z prices but I think the understanding was that for the Z prices 47:33 47 minutes, 33 seconds between Q3 to Q1 we might have seen some inventory gain in Q4 with a lag definitely that has happened between if you compare with Q1 yes it did happen. 47:43 47 minutes, 43 seconds Sure. So can you share that number? Uh what was the number of quantum of inventory gain? 47:48 47 minutes, 48 seconds So you see ours is a rolling inventory uh and we keep buying every month and we keep selling every month. So per say you 47:56 47 minutes, 56 seconds know we don't operate in a in the manner in which some other commodities companies will be operating as in they quantify the inventory and they set 48:04 48 minutes, 4 seconds aside inventory gains. Ours is a rolling uh way of you know inventory valuation and a fee for basis of consumption. So 48:12 48 minutes, 12 seconds you know every quarter on quarter the inventories keep coming in and the you know the sale price gets established every month on month. So yes, there 48:21 48 minutes, 21 seconds there should have been a slight uh improvement in the margins in Q4. 48:26 48 minutes, 26 seconds However, the margins in Q4 were in the 10.26% range. Iota margin as a percentage of revenue from operation, it 48:33 48 minutes, 33 seconds did not increase much because of the significant increase in costs in the month of March. So that kind of affected it. 48:44 48 minutes, 44 seconds Okay. Uh so maybe other way to understand this is can you I mean help us understand what would have been our you know margins if it would have been a 48:51 48 minutes, 51 seconds normal quarter no cost increase. So I mean would I would have what would have been our uh estimated margins if you can share that number just to understand. 49:02 49 minutes, 2 seconds I mean uh although it would just be a projection but what what you you can yourself also understand there was a 49:09 49 minutes, 9 seconds very significant energy price uptick and also you you would see that materials 49:16 49 minutes, 16 seconds which were perhaps contracted in January or December which was scheduled to arrive in March did not arrive. So those 49:23 49 minutes, 23 seconds were at much lower ele when you talk of the third quarter. Even if it was a $100 gap, it matters. Now those inventories 49:32 49 minutes, 32 seconds did not arrive in March. So obviously we had to buy at the current market prices in the domestic market to offset any supply shortages which could have 49:40 49 minutes, 40 seconds occurred. So energy you you've seen March almost prices of energy have doubled. So that has had a significant impact. If I were to broadly classify 49:49 49 minutes, 49 seconds it, it should be about a percent and a half about 150 basis points or so. 49:56 49 minutes, 56 seconds Wow, that is helpful. So coming on to my next question I mean if I look at the share of non- rubber u even say you 50:04 50 minutes, 4 seconds already explained the reason for why the zinc sulfate business has been slow but even if I look at the farmer and the other segments which we have within non 50:11 50 minutes, 11 seconds number so it was almost same percentage as last year in terms of revenue and uh so I mean u if you can help us 50:19 50 minutes, 19 seconds understand why the percentage share did not increase this year and uh any specific reasons if you can call out. 50:27 50 minutes, 27 seconds So as we mentioned this renew this focus on non rubber share increase Gujarat 50:35 50 minutes, 35 seconds plant dahage plant will be the biggest catalyst to that because that is where the majority of the non- rubber consumption is there. The majority of 50:43 50 minutes, 43 seconds the non-rubber consumption is not unfortunately in southern India or eastern India. It is in the Gujarat belt. Whether you take talk about ceramics which is the second largest 50:52 50 minutes, 52 seconds consumption center whether you talk about specialtity chemicals whether you talk about pharma even the pharma the 50:58 50 minutes, 58 seconds largest demands come from the western India so these segments would actually you would see material differences in 51:06 51 minutes, 6 seconds the share only when the dah plant starts today there is incremental gains that we are making there's no large footsteps 51:14 51 minutes, 14 seconds that are being created today that will only occur once the plant starts Sure. 51:21 51 minutes, 21 seconds And sir, I mean just on the demand outlook now. 51:26 51 minutes, 26 seconds Okay. My question is I have one more question and and just to uh clarify even 51:33 51 minutes, 33 seconds and even if you take between FI 24 and 25 there has been about 3 4% shift in 51:41 51 minutes, 41 seconds the non- rubber thing. So it's not that it has not moved but I as I mentioned these are small gains. The larger gains will only come once the diet plan starts. 51:52 51 minutes, 52 seconds Thank you Deep Gandhi. I'll request to come back for a follow-up questions. We have participants waiting in the queue. 51:59 51 minutes, 59 seconds Next question is from line of Suchi Parmar from NX Wealth Management. Please go ahead. 52:06 52 minutes, 6 seconds Yeah, good afternoon sir. Uh just wanted to ask uh coming up about your Gujarat 52:13 52 minutes, 13 seconds plant as it will be operational by the first half and you are already in talks with the customer. So any customer on 52:20 52 minutes, 20 seconds board for uh ceramic side you see right now. 52:27 52 minutes, 27 seconds So we have a few ceramic customers already on board. As we said we had started to sleep the market in the last six eight months. When I say seed, the 52:36 52 minutes, 36 seconds market is on not only verbally but also in terms of certain supplies. So for example, if a SAI customer is using say 52:43 52 minutes, 43 seconds 200 tons a month, we would probably right now be with them with a 10 ton 9 ton load just to start our presence. So 52:51 52 minutes, 51 seconds it is not that all of these approvals are going to be fresh. So people are aware of JG and people are looking forward to GG coming to the Western India side. 53:02 53 minutes, 2 seconds Okay. And uh is there a difference of margin in uh zinc oxide uh you are 53:10 53 minutes, 10 seconds providing for the tire and for the ceramic? 53:15 53 minutes, 15 seconds It's more or less similar to the tire and the ceramic but to the specialtity chemical sector and to other sectors like pharma etc. the margin profile is uh much higher. 53:27 53 minutes, 27 seconds Okay. U but you are not going to that side correct right now. 53:32 53 minutes, 32 seconds No, we will as I mentioned the Bah facility there will be three segments which will be catered to rubber and tire 53:39 53 minutes, 39 seconds ceramics and everything apart from that which includes speciality chemicals, pharma, electronics etc. 53:49 53 minutes, 49 seconds Okay. Okay. And uh regarding this uh solar uh uh initiative in Naidupa. So 53:58 53 minutes, 58 seconds how much uh difference you see in the consumption of your power uh because of this uh solar initiative 54:08 54 minutes, 8 seconds uh you can give in a percentage way uh the saving in expenses. 54:18 54 minutes, 18 seconds So basically when you know we are talking about renewable energy investment we are looking at it from two aspects. One to increase and improve our 54:26 54 minutes, 26 seconds ESG scorecard and also from the point of view of the return on investment that capex offers. So let's say that we have 54:34 54 minutes, 34 seconds spent uh we've spent roughly about 2 crores or so in the solar power project and the payback period for the project 54:43 54 minutes, 43 seconds is about 3 to 3 and 1/2 years. So the return on the capital employed is fairly high and it also leads to significant 54:50 54 minutes, 50 seconds reductions in the energy cost and we want to increase the quantum of solar energy that we generate going forward both in our nitro pickup plant and in our dah facility. 55:03 55 minutes, 3 seconds Okay. Uh that's it from my side. Thank you so much. 55:09 55 minutes, 9 seconds Thank you. Next followup question is from the line of Adita from SIMPL. Please go ahead. 55:16 55 minutes, 16 seconds Yeah. Thanks for the followup again. I just had one question. Uh sir who would be the top two three players apart from us in the zinc oxide space in India and 55:26 55 minutes, 26 seconds uh is the supply is this industry you know consolidated or it is pretty much fragment do the top four five players uh 55:35 55 minutes, 35 seconds make up 70 to 80% of the supply or it's pretty fragmented uh partly you know you've got your 55:43 55 minutes, 43 seconds question answered yourself uh yes the top three four people would be controlling about 60 to 670 % shares in 55:51 55 minutes, 51 seconds the market but there in there is a long page of uh smaller smaller zinc oxide players present in most regions uh maybe 56:00 56 minutes 30 40 of them. So what will uh eventually benefit the larger players is as the smaller guys you know uh are not 56:08 56 minutes, 8 seconds able to ramp up because the customer requirements are getting very stringent customers who want to deal with larger organized factories that definitely is 56:16 56 minutes, 16 seconds going to bode well for the larger producers. Now as a matter of company policy we would not like to comment on any specific competitor but I'm very 56:25 56 minutes, 25 seconds happy to state that the difference in size in terms of capacity and volumes etc between us and our nearest competitor would be significant today. 56:35 56 minutes, 35 seconds So we are by far the largest player in India. That's sir. 56:45 56 minutes, 45 seconds Thank you. Next follow-up question is from the line of Deep Gandhi from iPod PMS. Please go ahead. 56:56 56 minutes, 56 seconds May I request to unmute your line and proceed with your question? Yeah. Am I audible now? Yes sir. Go ahead. 57:03 57 minutes, 3 seconds Okay. So just one question on the demand outlook now. So if we understand I mean the tire companies are facing you know a lot of issues because of the rising 57:11 57 minutes, 11 seconds crude prices and hence the rubber prices and similarly on ground we hear that even in Mori there are a lot of plant shutdowns due to gas shortage and also 57:19 57 minutes, 19 seconds so you know what kind of conversation you are having with the client in terms of demand for next one one and a half year because the Gujarat plant for 57:28 57 minutes, 28 seconds Gujarat plant the camoth is going to be a significant I mean contributor to start scaling up so just some understanding on 57:36 57 minutes, 36 seconds So uh two parts to this one is the ceramic sector in Mori. Yes, we also hear that some plants are closed because 57:44 57 minutes, 44 seconds of nonavvailability or reduced availability of gas. So some ceramic plants are closed but however this is a 57:51 57 minutes, 51 seconds temporary thing. This will be there till the geopolitical tension continues or the war continues. By the time our 57:58 57 minutes, 58 seconds Gujarat facility comes on stream, we still have about uh five to six months, five months almost for it to come up. So 58:06 58 minutes, 6 seconds we cannot really predict what the scenario will be then. But yes, there is a demand for the ceramic products which has not come down. Production is less. 58:15 58 minutes, 15 seconds So we expect as and when production normalizes there will be a huge pent up demand for those uh customers of ours in 58:23 58 minutes, 23 seconds their final product. So I mean whether it will come back in 2 months, 3 months, 5 months, we don't know but hopefully it should not be more than 5 6 months if 58:32 58 minutes, 32 seconds this situation continues. As far as the tire demand is concerned, yes, tire industry is facing a huge input cost 58:40 58 minutes, 40 seconds pressure in all their items. Currently how they are passing on to the market, we are not fully aware of that whether 58:48 58 minutes, 48 seconds the tire prices entire thing has been passed on or not. However, what we can say that even as we speak the months of 58:55 58 minutes, 55 seconds May, June, we have a very very healthy order group and a very healthy demand projection. So currently we are not 59:02 59 minutes, 2 seconds witnessing any slowdown from the tire industry and what we hear that the demand for tires is quite strong in the 59:09 59 minutes, 9 seconds market and even our projections what they have given for the month of June are almost at par with what was there in 59:16 59 minutes, 16 seconds April and May. So this much information we can give you as of now. 59:23 59 minutes, 23 seconds Sure. Sure. And the clients are not asking for any kind of you know maybe price discounts because they are facing the input cost inflation no such conversations with client on that right. 59:33 59 minutes, 33 seconds No, not in fact uh the cost pressures that we are facing, we are being able to pass on to the customers because the 59:40 59 minutes, 40 seconds customers appreciate that uh as an intermediary supplier, we need to pass it on and because of our long-standing relationship, we are able to pass on those increases to our customers. 59:53 59 minutes, 53 seconds Sure. That is it. Thank you. Thank you very much. 1:00:02 1 hour, 2 seconds As there are no further questions now like to hand the conference walla and gingwala for closing comments. 1:00:12 1 hour, 12 seconds So ladies and gentlemen friends once again thank you all for joining this call today. If you have any other 1:00:20 1 hour, 20 seconds follow-up questions etc you can always reach out to SKP securities or to us. We will be more than happy to answer them. 1:00:28 1 hour, 28 seconds Thank you once again everybody for joining. Wish you a very good day. Thank you. 1:00:33 1 hour, 33 seconds Thank you very much. On behalf of SKP Securities Limited, that concludes this conference. Thank you for joining us and 1:00:40 1 hour, 40 seconds you may now disconnect your lines. Thank