Krishana Phoschem Ltd — Q4 FY26

Krishana Phoschem Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=G2-imh31YKI Published: 1 month ago

0:04 4 seconds Good afternoon ladies and gentlemen. A very warm welcome to the Q4 and FY26 earnings conference call of Krishna 0:11 11 seconds Poskim Limited. From the senior management we have with us today Mr. 0:16 16 seconds Prain Odwal promoter and managing director Mr. Pukrajar group financial advisor. 0:23 23 seconds As a reminder, all participant lines will be in the listen on emote and there will be an opportunity for you to ask questions after the presentation concludes. 0:33 33 seconds Should you need assistance during this conference call, please signal an operator by pressing star then zero on your touchstone 4. Please note that this 0:42 42 seconds conference is being recorded. I now hand the conference over to Mr. Pukaraj. Thank you and over to you sir. 0:51 51 seconds Thank you madam and good evening to everyone and welcome to earning call of Krishna first limited. Uh before we 0:58 58 seconds begin the earning call I would like to mention that some of the statements made during today's call might be 1:05 1 minute, 5 seconds forwardlooking in nature and hence it may invol involve risk and uncertainties including those related to future financial and operating performance. 1:16 1 minute, 16 seconds Please bear with us if there is a call drop during the course of conference call. We would ensure the call is 1:24 1 minute, 24 seconds reconnected the soonest. I would like to hand over the conference to Mr. Posal, managing director of the company to province. 1:37 1 minute, 37 seconds Good afternoon everyone. 1:39 1 minute, 39 seconds Thank you for joining us for Krishna Poscan Limited Q4 and full year FY26 1:46 1 minute, 46 seconds earnings call. We are pleased to report a year of exceptional performance. Our results reflected disciplined 1:54 1 minute, 54 seconds executions, a successful scale up of our core operations and significant momentum across our strategic growth initiatives. 2:04 2 minutes, 4 seconds As we review the year ended March 31st, 2026, we look forward to discuss how these milestones strengthen our 2:13 2 minutes, 13 seconds foundation for the future. I will begin with the dynamics industry snapshot dive into our stellar financials and 2:21 2 minutes, 21 seconds operational performance key strategic developments wrapped with our closing remarks then we will open the floor for Q&A question 2:30 2 minutes, 30 seconds session on the on ry season the quarter ended March 26 witnessed stable dynam demand 2:39 2 minutes, 39 seconds dynamics during the ry season this was reflected in strong industry performance 2:44 2 minutes, 44 seconds with PNK production reaching 15.76 lakh metric ton during the peak period 2:53 2 minutes, 53 seconds marking one of the highest monthly output levels. March saw a natural seasonal moderation in demand as key 3:00 3 minutes crops such as wheat and mustard approach maturity consistent with typical fertilizer application cycles. 3:08 3 minutes, 8 seconds The industry concluded Q4 FY26 with comfortable inventory levels of 177 lakh 3:16 3 minutes, 16 seconds metricton indicating balanced supply demand conditions and healthy channel inventory levels. 3:23 3 minutes, 23 seconds Global cost environment while domestic demand remained stable the global input cost environment tightened towards the 3:32 3 minutes, 32 seconds later part of the quarter. During January and early February, input prices remained 3:40 3 minutes, 40 seconds relatively stable. However, from midFebruary onwards, global market witnessed, firming trends driven by 3:47 3 minutes, 47 seconds supply side constraints, tightness in gas link production, higher logistic and freight costs. As a result, ammonia 3:57 3 minutes, 57 seconds prices moved up sequentially during the quarter. 4:01 4 minutes, 1 second Sulfur prices also firmed up towards March. This created a timing mismatch where domestic demand was slowed down in 4:09 4 minutes, 9 seconds March while input costs were increasing leading to higher cost pressure in the closing. 4:17 4 minutes, 17 seconds Given the industry reliance on imports for 90% of key intermediates, these global movements had direct impact on cost structures. 4:28 4 minutes, 28 seconds Policy framework. The NBS framework continues to be a key stabilizing factor for the sector. The recently announced 4:35 4 minutes, 35 seconds NBS support is expected to help offset input cost pressures to lower burden on farmers. 4:44 4 minutes, 44 seconds Market evolution. Amid these dynamics, the industry continues to undergo a structural shift in product consumption patterns. 4:54 4 minutes, 54 seconds DAP prices and availability have led to gradual shift towards more cost effective and balanced nutrient 5:01 5 minutes, 1 second solutions including NPK complexes and SSPs. 5:05 5 minutes, 5 seconds This trend reflects both affordability availability considerations and increasing awareness around balanced fertil fertilization. 5:15 5 minutes, 15 seconds As a result, integrated players with diversified product portfolio are structurally better positioned to 5:22 5 minutes, 22 seconds navigate input volatility while capturing evolving demand patterns outlook. As we look ahead, the industry 5:30 5 minutes, 30 seconds enters the new fis fiscal year with a mix of supportive demand drivers and evolving cost dynamics. On one hand, a 5:39 5 minutes, 39 seconds stable agricultural environment supported by favorable monsoon outlook provides a constructive demand outlook. 5:46 5 minutes, 46 seconds On the other, input cost volatility and global supply uncertaintities remain key 5:53 5 minutes, 53 seconds monitorables. In this context, the combination of the recently announced NBS support structural shift towards 6:02 6 minutes, 2 seconds balanced fertilization and continuous focus on integration and efficiency will play a defining role in shaping industry performance going forward. 6:14 6 minutes, 14 seconds Financial performance Q4 FY26. 6:18 6 minutes, 18 seconds Coming to the financial performance for the quarter, the company delivered a record performance. Revenue from 6:24 6 minutes, 24 seconds operations stood at 756 cr up 59.8% 6:31 6 minutes, 31 seconds yearonear primarily driven by higher sales volume supported by strong ruby demand along with better relation across 6:38 6 minutes, 38 seconds product segments. Abita came in at 90 cr registering a 59.1% yearon-year growth supported by 6:47 6 minutes, 47 seconds operating leverage from higher volumes and stable cost management despite its input price volatility. PAT reached 83 6:56 6 minutes, 56 seconds cr up mean 54.9% yearonear driven by scale benefits and deferred tax 7:02 7 minutes, 2 seconds benefits. EPS stood 13.4 4 compared to 5.3 reflecting 152.8% increase in line 7:11 7 minutes, 11 seconds with significant improvement in profitability. 7:16 7 minutes, 16 seconds Financial performance financial year 26 for the year ended FI26 marks the benchmark year with strong growth across all key financial metrics. 7:28 7 minutes, 28 seconds Revenue from operations stood at 2418 cr up 78% yearonear driven by 7:36 7 minutes, 36 seconds significant volume growth and strong demand across fertilizer segments. A beta increased to 298 cr up 62% 7:45 7 minutes, 45 seconds yearonear supported by improved operating performance and a favorable product 7:52 7 minutes, 52 seconds that stood at 180 cr up 109% yearonear supported by financial efficiencies 7:59 7 minutes, 59 seconds including deferred tax benefits EPS came in at 29.1 compared to 14 reflecting a 108% 8:08 8 minutes, 8 seconds year-on-year growth aligned with The overall profitability expansion operational highlights 8:17 8 minutes, 17 seconds our operational performance reflects strong execution and effective utilization of capacities for the quarter. achieved fertilizer 8:26 8 minutes, 26 seconds production 94103 metric ton driven by peak rubby season demand and improved operational throughput 8:34 8 minutes, 34 seconds maintained healthy utilization across NPKDAP and SSP plants with certain units 8:41 8 minutes, 41 seconds operating above 100% capacity reflecting strong demand and efficient plant operations 8:49 8 minutes, 49 seconds for the year achieved a total production of 3 lak 97,263 metric return supported by high demand across markets. 8:58 8 minutes, 58 seconds Record high utilization levels in NPK, DAP and SSP plant operating above rated capacity highlighting strong market 9:07 9 minutes, 7 seconds acceptance and efficient asset utilation. 9:11 9 minutes, 11 seconds Coming to capacity expansion and strategic developments during the year we successfully completed a significant capacity expansion and PKDFP capacity 9:21 9 minutes, 21 seconds enhanced by 50% to 4 lakh 95,000 metricton ton peranom and existing SSP 9:28 9 minutes, 28 seconds capacity at 1 lakh 20,000 metric ton perm taking total phosphatic fertilizer capacity to 6 lakh 15,000 metricton ton 9:37 9 minutes, 37 seconds perm backward integration Senton sent with sulfuric acid capacity of 99,000 metric 9:45 9 minutes, 45 seconds ton perm. This expansion has been funded through a prudent mix of internal approvals and term loans reflecting 9:54 9 minutes, 54 seconds disciplined capital allocation on the part of green commitment. As part of long-term sustainability strategy, 10:03 10 minutes, 3 seconds KPL has entered into 10-year green ammonia sale agreement under India's national green hydrogen mission for 70,000 metric ton perom. 10:14 10 minutes, 14 seconds This initiative enhances supply security, supports decarbonization, and improves long-term cost visibility. 10:24 10 minutes, 24 seconds We are also pleased to highlight that our credit rating has been upgraded 10:31 10 minutes, 31 seconds precel to A+ table reflecting improved financial strength and business fundamentals 10:38 10 minutes, 38 seconds with enhanced capacities now operational. We expect the benefits of this expansion to meaningfully reflect 10:44 10 minutes, 44 seconds in our performance from FY27 onwards supported by improved scale operating leverage and better efficiency levels. 10:55 10 minutes, 55 seconds Combined with our continuous focus on integration and sustainability initiatives, we are well positioned for the next phase of growth. We remain 11:04 11 minutes, 4 seconds committed to deliver consistent performance and creating long-term value for our stakeholders going forward. We 11:12 11 minutes, 12 seconds will continue to keep you updated on key developments. Thank you for the continued support. We now open the floor for the question and answer session. 11:25 11 minutes, 25 seconds Thank you very much. 11:27 11 minutes, 27 seconds We will now begin the question and answer session. Anyone who wishes to ask the question may press star and one on the touchstone telephone. 11:37 11 minutes, 37 seconds If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use 11:46 11 minutes, 46 seconds while asking a question. Ladies and gentlemen, we will wait for a moment while the question to assembles. 12:00 12 minutes A reminder to all you may press star and one to ask a question. 12:12 12 minutes, 12 seconds We have the first question from the line of Adita Garwal from Motoral Oswald Financial Services Limited. Please go ahead. 12:20 12 minutes, 20 seconds Hi sir. Uh congratulations on our set of numbers and thanks for this opportunity. 12:27 12 minutes, 27 seconds Uh just wanted to understand how how are our what are our plans going forward for the next couple financial years and you 12:34 12 minutes, 34 seconds know how are you projecting our for the next financial years. 12:39 12 minutes, 39 seconds Look, we as as our MD has told our new expansion of uh has already started 12:48 12 minutes, 48 seconds production and we hope in the next three four months it will stabilize. So we hope this current year we'll be able to 12:55 12 minutes, 55 seconds show a growth of more than 40% in all parameters. 13:03 13 minutes, 3 seconds Understood. Sir also there was some news yesterday that the government Sorry to interrupt in between Ada your voice is not audible right. Hi am I audible now? 13:14 13 minutes, 14 seconds Yes. 13:15 13 minutes, 15 seconds Yeah. So there was some news yesterday that the government has also g given some relief on some nutrient- based fertilizers. So how how will that affect us? Is it beneficial for us? 13:27 13 minutes, 27 seconds Obviously that uh as the price input prices have gone up substantially and all fertilizer manufacturers were 13:35 13 minutes, 35 seconds expecting that government will come out with some support though that support is not compensated completely the input 13:43 13 minutes, 43 seconds price will increase but yes it will offset to a great extent and that balance will increase by MRP. So I think 13:51 13 minutes, 51 seconds this uh next quarter this uh position will be reflected in a better uh performance. 13:58 13 minutes, 58 seconds So so you mean to say that you will pass on the additional price tag to the customers and we won't have any bearing or you know loss due to this right is my 14:08 14 minutes, 8 seconds correct obviously obviously look uh the price rise had been phenomenal in the last quarter and it is not possible to 14:17 14 minutes, 17 seconds absorb. Yes, of course we will bas on we will absorb to some extent and as a result our profitability is expected to come down slightly during the current 14:25 14 minutes, 25 seconds year FY 27 but uh a major part will have to be worn by the consumer. 14:35 14 minutes, 35 seconds Understood. Understood. Understood. And and sir what would I know we have we are adding another plant in today. Uh in 14:42 14 minutes, 42 seconds addition to that do we have any other tapeex plans or any other uh you know uh capacity expansion plans? 14:50 14 minutes, 50 seconds No, so far so far we have not planned anything. Whatever we had it has been implemented. 14:59 14 minutes, 59 seconds Okay. Okay. Okay. Okay. Uh understood. 15:01 15 minutes, 1 second And one more thing sir. Uh so I was just wanted to understand about our receivable days as to because I saw that our receivable days has touched around 15:09 15 minutes, 9 seconds 100 days. So uh will we needing any other working capital financing or how how are we looking to are we looking to 15:17 15 minutes, 17 seconds reduce this going forward or this is a sustained number of weekly receivable that we will have. 15:22 15 minutes, 22 seconds No obviously what happened uh in the last running call also I explained that the demand for different variant of NPK 15:31 15 minutes, 31 seconds is rising in India. uh we have been producing one variant at 20203 15:38 15 minutes, 38 seconds and even the demand of this product we have not been able to meet adequately as a result our plants are operating purely 15:45 15 minutes, 45 seconds on this one product. Now to meet the market demand and uh just that our consumers should think that we are 15:53 15 minutes, 53 seconds capable of providing all variants. We imported other variants uh and that we supplied and that has happened within 16:03 16 minutes, 3 seconds the last quarter. As a result on the balance side on the day, March and closing the receable levels are going up 16:12 16 minutes, 12 seconds but otherwise uh but for subsidy our receivable levels are normally in the range of uh for 50 to 55 days. 16:24 16 minutes, 24 seconds Understood. Understood. Understood. Uh sure sir. I think I think that uh that's 16:31 16 minutes, 31 seconds it for my side. I'll happily join back in the queue. But thank you so much sir for answering the questions and congratulations again on a and an 16:38 16 minutes, 38 seconds excellent set of numbers. Uh I would also we would also like to meet you guys sometime soon. Uh so we'll just get in touch with your team. 16:50 16 minutes, 50 seconds Thank you. 16:53 16 minutes, 53 seconds Thank you. We will take the next question from the line of Duv MKkesh Baj from Growth Ventures. Please go ahead. 17:02 17 minutes, 2 seconds Yeah, thank you so much for giving me this opportunity and congratulations sir on an amazing quarter and amazing annual here. 17:11 17 minutes, 11 seconds Given the disruption that we have seen mainly on the supply front of input. So is it fair to say that Apple has been 17:18 17 minutes, 18 seconds pretty slow on the demand front as well given the increase in the prices as you mentioned and since a new cape has also 17:25 17 minutes, 25 seconds come like from the start of April. So how do we see the near future going ahead in terms of the demand side? 17:34 17 minutes, 34 seconds Look 140 cr population of India need to be paid. So absolutely is that whether you compromise on any 17:43 17 minutes, 43 seconds subject or not but on food and consumer items you cannot compromise. farmers have to have produced the agriculture 17:52 17 minutes, 52 seconds output and they need fertilizer and at the same time so as far as I see the domestic product manufacturers will not 18:00 18 minutes any pressure on as far as demand is concerned in any case for the sake of 18:07 18 minutes, 7 seconds just for hypertation that in case something happens and demand goes down you should know that phosphatic fertilizer almost 40% we import. 18:19 18 minutes, 19 seconds So as far as logistics manufacturers are concerned uh though I'm I'm sure including import the demand is not going 18:27 18 minutes, 27 seconds to go down but still for the sake of understanding if it goes down we are not going to affect it. Definitely sir I was coming more from the angle that as we 18:36 18 minutes, 36 seconds mentioned earlier in our previous conference that we are price makers because we make complex fertilizers when we are not too much dependent on 18:44 18 minutes, 44 seconds subsidiary and naturally we are able to maintain our margins versus our peers. 18:48 18 minutes, 48 seconds So I was coming from that angle like given the recent disruption. So you have already mentioned that we might have to take some sort of margin hit is it 18:56 18 minutes, 56 seconds possible to quantify on how much margin we are looking at because there is a mix of distribution as well as our own 19:03 19 minutes, 3 seconds manufacturer products. Hence it is a bit difficult for the analyst to decipher like like for instance for a year on 19:11 19 minutes, 11 seconds year comparison our margins on a bit level have decreased from 15% to 31% but that might also be because of higher 19:18 19 minutes, 18 seconds distribution revenue. So is it possible to quantify that for the current quart and for going forward as well so we can understand like are we facing? 19:28 19 minutes, 28 seconds No no no right now it is not it is not uh working out because still still we are working on to how to 19:37 19 minutes, 37 seconds procure the material and at a reasonable price and that reasonable price increase will be passed on to the customers because subsidy has already been 19:46 19 minutes, 46 seconds announced. So uh we don't think so that uh we will we'll get a hit but but we 19:53 19 minutes, 53 seconds are expecting some uh downturn in the first quarter. It may be in the first quarter but after after these uh 20:01 20 minutes, 1 second downturn happens in the first quarter we'll be able to pass on all the price hike to the consumers 20:10 20 minutes, 10 seconds right now looking to the volatility in the market 20:16 20 minutes, 16 seconds price up and down government policy government decision on giving some 20:23 20 minutes, 23 seconds requires our decision to pass on to increase in MRP everything it is a dynamic position and we will keep on 20:32 20 minutes, 32 seconds taking decision based on our sustainability and I'm sure no government would like that we will turn 20:39 20 minutes, 39 seconds into losses yes there can be pressure on the margin but we will continue to earn profit got it and sir there was a recent 20:48 20 minutes, 48 seconds announcement of the trading point wherein our although ratings was upgraded but there was a negative outlook given the fact that input prices 20:55 20 minutes, 55 seconds are increasing we have low stock of ammonia and we also import rock phosphate which we ultimately do beneficial pro process. So in that front 21:04 21 minutes, 4 seconds how are we placed in terms of input and because we have also announced that recently we have tied up for some green ammonia. So will we be able to tap that 21:14 21 minutes, 14 seconds thing in from the domestic market in the coming year itself. So if you can give some sort of picture on that will be very helpful because we are one of the 21:22 21 minutes, 22 seconds more backward integrated players. So your commentary does help a lot. 21:27 21 minutes, 27 seconds Look, first of all, let me tell you this uh negative watch is for the industry not for the company. The pedigree and 21:36 21 minutes, 36 seconds all that for fertilizer as such because of this Iran Israel war uh posity of gas 21:44 21 minutes, 44 seconds uh the availability of ammonia maybe business. So for industry as a whole they have put under negative watch. As 21:52 21 minutes, 52 seconds far as concerned we will continue to be on the A+ so there is no issue. Another thing green ammonia will be available 22:00 22 minutes only after 3 years. For the time being we will have to rely only on gammonia and uh in the last two days you might 22:08 22 minutes, 8 seconds have read in the press the gas supply to the UVA manufacturers have been restored to the 100%. As a result we expect that 22:17 22 minutes, 17 seconds ammonia supply will ease out in next seven days. 22:21 22 minutes, 21 seconds So we any issues with the raw material and and and further uh signing of this uh 22:31 22 minutes, 31 seconds ammonia green ammonia will strengthen the company as a whole. 22:36 22 minutes, 36 seconds what it's and so based on our recent performance for the past three four years ours have been a relatively much higher margin business versus our peers 22:46 22 minutes, 46 seconds and computation if you if you compare four years then 22:53 22 minutes, 53 seconds you know we started production of NPK BP only from 2023 earlier we were producing SP which is a 23:02 23 minutes, 2 seconds loan product so by adding to this And then next last year we added even SFP UV also. So we 23:10 23 minutes, 10 seconds keep on innovating keep on meeting the demand of the market and giving the innovative product. So uh that way the 23:18 23 minutes, 18 seconds we are trying to offset the margin and offset the volatility in the market because of the price in few segment of the input material. 23:27 23 minutes, 27 seconds No no sir definitely I'm not trying to get gods whether you are able to pass on the pricing or not. My question is a bit different. So since I'm trying to 23:36 23 minutes, 36 seconds understand the entire landscape of fertilizer players. So I wanted to understand like why so since we do our own manifestation and produce our own 23:43 23 minutes, 43 seconds sulfuric acid and that's why we are more backward integrated versus some of our other complex fertilizer. So I'm trying to understand that given our performance 23:51 23 minutes, 51 seconds on the numbers part of the same is being led by our supply side cost dominance because we are backward integrated versus our ability to maybe cross shell 24:00 24 minutes our products better than our peers because we have a good distinction network. So what what are the key factors that are contribut to our success? 24:11 24 minutes, 11 seconds Backward integration has benefited it has our market better than our peer group. We have to see 24:20 24 minutes, 20 seconds right why could other players also do this benefici benefici as far as concerned there are 24:29 24 minutes, 29 seconds only three players in India. one is which is government often another isal 24:37 24 minutes, 37 seconds agroated our group company and KPL so only three players otherwise there is no phosphate reserves available 24:45 24 minutes, 45 seconds anywhere so far at present so I don't think available to anybody else 24:53 24 minutes, 53 seconds got it got it just one last question from my end was that what are we expecting in terms of the new uh nutrient based subsidy Because from what 25:01 25 minutes, 1 second I understand we complex fertilizer players don't get a lot of impact from all these subsidies. So is that a fair 25:10 25 minutes, 10 seconds assessment or does that also play a major role in our performance as well? 25:15 25 minutes, 15 seconds It is not fair. The subsidy constitute and substantial part almost ink 40% revenue comes from subsidy. So it will be unfair on the government initiative. 25:27 25 minutes, 27 seconds They are doing very well. Yes, of course during this first half year the compensation as announced yesterday does not mean adequately the price rising. 25:41 25 minutes, 41 seconds Got it. Got it sir. Congratulations on an amazing sense. Thank you so much for your attention. 25:50 25 minutes, 50 seconds Thank you. We will take the next question from the line of Nitan Koshik from Aen Capital Private Limited. Please go ahead. 25:59 25 minutes, 59 seconds Uh hello good evening sir. Uh first of all congratulations uh for such a good result. Uh my first question is uh 26:08 26 minutes, 8 seconds regarding inventory and receivables uh they have increased significantly. 26:13 26 minutes, 13 seconds So should we see this as strong future demand or slower scale in future? 26:20 26 minutes, 20 seconds Yeah I think inventory part is concerned there has not been any right. Yes, receivable part there has been right which I explained to an earlier uh our 26:29 26 minutes, 29 seconds participants that in the last quarter of this year we have imported other variant 26:36 26 minutes, 36 seconds of NPK and uh as a result that receivable is out selling and that will be realized during the current quarter. 26:45 26 minutes, 45 seconds Uh okay sir. So sir this question was arised because uh in April 25 26:52 26 minutes, 52 seconds in cash flow it was around uh the it was around the increase of 664 26:59 26 minutes, 59 seconds lakhs but right now it's more than 16,000 lakhs. So the increase is huge if you see that. 27:24 27 minutes, 24 seconds Just hold on. Okay. 27:30 27 minutes, 30 seconds Look raw material increased from 60 cr to 93 cr and then uh 27:38 27 minutes, 38 seconds finished goods 50 finished good as I told you this this right which you visible is because of uh supplies to 27:46 27 minutes, 46 seconds these cooperative federation where we supply but we are not permitted to issue invoice till some inspection or 27:55 27 minutes, 55 seconds some it is called var. So technically this 161 it is it is a stock lying with this 28:02 28 minutes, 2 seconds marketing otherwise you can see it is almost in the same range. 28:15 28 minutes, 15 seconds Okay sir. Uh got it sir. 28:18 28 minutes, 18 seconds Um so the next question is recently Skyat forecasted that this year will have a weaker monsoon compared to 28:25 28 minutes, 25 seconds previous year around 94% long period average which was which was around 106% 28:32 28 minutes, 32 seconds long period average previous year. So would it have an impact on fertilizer sales in coming months? 28:41 28 minutes, 41 seconds the monsoon forecast is around uh 95% of the normal monsoon. So this is not a 28:49 28 minutes, 49 seconds major variation and and uh the major reservoirs or the rivers or what do you call it uh where borwells water levels 28:59 28 minutes, 59 seconds are high in comparison to the older times in the country and we are not expecting any any stress on the 29:06 29 minutes, 6 seconds agriculture part and and and in continuations the fertilizer is also fertilizer is also will be in demand for the agriculture. 29:19 29 minutes, 19 seconds Uh okay sir. Sir uh so could you please shed some light on uh purchase of trading stock because it increased more than six times this year. 29:31 29 minutes, 31 seconds Uh purchase of trading purchase of stock. I have already I have already explained 29:38 29 minutes, 38 seconds you that we have been manufacturing only one type of variant of NPK. 29:46 29 minutes, 46 seconds There is the demand for other variants and just that the consumers should feel that we are capable of supplying all type of variant. We resorted to import 29:55 29 minutes, 55 seconds of the other variant supply to our supply to our farmers and that is why this import has 30:03 30 minutes, 3 seconds increased which is nothing that's the trade goods purchased. 30:09 30 minutes, 9 seconds Okay sir. So that's it from my side and sir again thank you for attention. 30:16 30 minutes, 16 seconds Thank you. Thank you. 30:31 30 minutes, 31 seconds Next question. 30:32 30 minutes, 32 seconds We'll take our next question from the line of Asha from Latin Security. Please go ahead. 30:40 30 minutes, 40 seconds Yeah. Good evening. Am I audible? Yes. Yes. 30:44 30 minutes, 44 seconds Uh good evening sir and congratulations on a great set of numbers. uh I think uh uh it's kind of a picture perfect 30:52 30 minutes, 52 seconds situation as far as the capacity addition is concerned as far as the performance is concerned. Um uh I would 31:00 31 minutes like to get some color on uh uh what are your expectations as far as the revenue growth for the current uh year is 31:09 31 minutes, 9 seconds concerned. uh what kind of uh after having put in this kind of capacity utilization which is so impressive at 6 31:17 31 minutes, 17 seconds lakh 15,000 uh metric tons u uh what kind of capacity utilization are you 31:24 31 minutes, 24 seconds targeting for the current year? Uh what is uh your take on margins and what kind of headwinds do you see especially with 31:33 31 minutes, 33 seconds respect to uh factors like the uh the increase uh co increase in the cost uh and the working capital issues. 31:44 31 minutes, 44 seconds Okay. See we we we remain committed to the best utilization of our 31:51 31 minutes, 51 seconds manufacturing facilities and uh you have been seeing our capability of manufacturing the fertilizer products uh 31:59 31 minutes, 59 seconds in last two three years. So our team of manufacturing is uh working on to give 32:06 32 minutes, 6 seconds the best and efficient results at the manufacturing uh units and uh this year 32:12 32 minutes, 12 seconds also we are committed to perform as as in as performed in our last two three years and the new expansion which has 32:21 32 minutes, 21 seconds already uh started uh started this month. uh in in first quarter or second 32:28 32 minutes, 28 seconds quarter we think that uh there can be a initial teaching problems but then this capacity will be fully utilized in uh coming quarter. So one point is this. 32:38 32 minutes, 38 seconds The second point is again on coming on to the uh profits and and the raw material cost. We we have been 32:46 32 minutes, 46 seconds explaining you that the raw material cost have rised that is that is for sure because it is coming from that war area 32:54 32 minutes, 54 seconds and the prices have to be compensated either from the government or from the MRP to the farmers. So government has 33:02 33 minutes, 2 seconds already declared their NBS uh policy already. they have come out with the numbers and we we have also started 33:11 33 minutes, 11 seconds working on to increase the MRPs and uh we are sure that after the increase of MRPs uh of the various products uh the 33:21 33 minutes, 21 seconds market remains uh sustainable and uh the then the product is already in demand 33:28 33 minutes, 28 seconds and uh as told to you there could be a slight pressure of uh margins in the 33:34 33 minutes, 34 seconds first quarter but we then we don't be uh any margins in the coming quarters at the later part of the year because then 33:42 33 minutes, 42 seconds we will be passing on the cost to the farmers as well. So this is in in all summary best utilization of the asset 33:51 33 minutes, 51 seconds and uh trying to maintain the margins after this part. 33:58 33 minutes, 58 seconds Uh thank you sir. uh but uh I I think uh in terms of some quantification I mean uh as we've seen this particular year 34:06 34 minutes, 6 seconds that the revenue growth has been impressive at around 80% close to 80% revenue growth u so I mean I'm sure 34:14 34 minutes, 14 seconds you're working with some kind of figures uh for uh FY27 so uh could you give me some color on on 34:23 34 minutes, 23 seconds what you see one see one 44 right one lakh 65,000 tons is the capacity 34:30 34 minutes, 30 seconds increase 40 50% also if you if you think it off 80,000 tons 80,000 tons into uh 34:38 34 minutes, 38 seconds uh 80,000 tons into around 60,000 rupees per ton so you can expect a topline 34:46 34 minutes, 46 seconds increase of around 500 crores. So this year we had around uh 2400 odd crores. 34:52 34 minutes, 52 seconds So you you expect an increase of around 500 crores more 2900 to 3,000 but this 34:58 34 minutes, 58 seconds is all numbers uh based on the uh the capacity expanded and the utilization of that asset. 35:07 35 minutes, 7 seconds Uh thank you sir. Uh uh so can uh I safely assume something like a 35 to 40% uh hike in the revenue. 35:17 35 minutes, 17 seconds Yes, including uh the import and manufacturing we are expecting 40 we expect 40% growth will not be a big issue. 35:27 35 minutes, 27 seconds And sir uh what kind of margin trajectory are you working with considering the fact that we we we have repeatedly been told 35:36 35 minutes, 36 seconds margin will be under pressure margin will be under pressure and probably the 35:42 35 minutes, 42 seconds kind of margin which we have shown during this FY26 may not be possible. There will be slight election 35:51 35 minutes, 51 seconds because some part of increased ravens will be absorbed by us. Some part will be absorbed by government of India and 35:57 35 minutes, 57 seconds something will pass on to the but of course investors the company will continue to earn profit and a reasonable good profit. 36:08 36 minutes, 8 seconds Uh sir can we expect margins to go into single digits operating profit margin? 36:15 36 minutes, 15 seconds See see again we want to tell you that see we will we will try our best we will try our best to maintain the 36:24 36 minutes, 24 seconds profitability we understand the investors concern that uh the profits should profit should not go down but but 36:31 36 minutes, 31 seconds in the present scenario where the raw metal prices have gone up and uh and the prices to the farmers or MRP to the 36:39 36 minutes, 39 seconds farmers will increase gradually so we cannot quantify right down. We are we are trying hard that the profit should 36:47 36 minutes, 47 seconds not go down and we we are much more uh certain and we still remain committed to the investors that uh we will work hard 36:56 36 minutes, 56 seconds to to sustain the profits but definitely first quarter may be difficult but in 37:04 37 minutes, 4 seconds coming quarters and the year along we'll be able to able to sustain the profitability. 37:11 37 minutes, 11 seconds Thank you so much for your input sir. Um uh and uh uh I wish you all the best for the coming quarters. Thank you sir. 37:19 37 minutes, 19 seconds Thank you. Thank you very much. And and don't worry uh we we are working on it. 37:26 37 minutes, 26 seconds Thank you so much sir. 37:30 37 minutes, 30 seconds Thank you. We will take the next question from the line of Rashikes Rajes Sha from Alchemy Capital. Please go ahead. 37:38 37 minutes, 38 seconds Yeah. Hi. Am I audible? 37:41 37 minutes, 41 seconds Yes. Yeah. Uh congratulations on good set of numbers. My questions were mainly regarding the volumes and EIA. So what 37:51 37 minutes, 51 seconds is the trading volume that we did in FI26? 37:56 37 minutes, 56 seconds Look trading has almost our manufacturing has been about 1,900 cr and the rest has been trading around 500 for 5 minutes. 38:08 38 minutes, 8 seconds Yes. Yeah. Uh okay. Yeah. 550. 38:14 38 minutes, 14 seconds No, I'm asking the volumes. Okay. Volumes. Trading volumes. 38:22 38 minutes, 22 seconds Yeah. Yeah. It is the trading was 93,000. 38:32 38 minutes, 32 seconds 93,000 and that is included. 38:37 38 minutes, 37 seconds 93 and 383 is manufactured. 38:43 38 minutes, 43 seconds Okay, understood. And so what would be a beta per ton on the manufacturing side? 38:48 38 minutes, 48 seconds Manufactured uh it is in the range of 5,500 rupees. 38:55 38 minutes, 55 seconds 5,500. And sir, what was it in March 25 financial year? Uh it was 6,000. 39:04 39 minutes, 4 seconds 6,000. Okay. So actually it has decreased from FI 25 to 26 right? 39:12 39 minutes, 12 seconds Yes slightly sir slight our overall margin overall margin which was 13.54% has come down to 12.34%. 39:21 39 minutes, 21 seconds Right. So, so what I wanted to ask is see our phosphoric acid uh capacity utilization has increased our BRP 39:30 39 minutes, 30 seconds crushing capacity has increased. So, what is the reason for lower margins when our 39:37 39 minutes, 37 seconds sorry sorry for the interruption but you all already asked me what the trading trading margin is 36%. 39:46 39 minutes, 46 seconds And our trading now has gone up from 164 560 rupees. Obviously market will be less than last year. 39:53 39 minutes, 53 seconds No no I'm asking on the manufactured side. 39:56 39 minutes, 56 seconds Manuing manufacturing they have no s so my question is are EITA margins 40:04 40 minutes, 4 seconds on manufacturing side AIA per turn on manufacturing side. What would be that in FI26? 40:14 40 minutes, 14 seconds FY26 only manufacturing every manufacturing only manufacturer 40:24 40 minutes, 24 seconds is the 5,900 and we have maintained the last year. 40:32 40 minutes, 32 seconds So that is around 5,200 or something. 40:36 40 minutes, 36 seconds Yes. Yes. We have maintained whatever uh 425 it has been maintained in 2526. 40:44 40 minutes, 44 seconds Okay. Okay. Understood. Thanks. That's all from my side. Thanks a lot. 40:51 40 minutes, 51 seconds Thank you. We will take the next question from the line of Zohib Rashid from Swing List. Please go ahead. 40:58 40 minutes, 58 seconds Hello. Uh thank you for the opportunity and congratulations for a great set of numbers. So I wanted to ask uh that um 41:07 41 minutes, 7 seconds are we having any problem with the procurement of sulfur uh as we you know uh procure it domestically? I I 41:14 41 minutes, 14 seconds understand there is a price hike but uh are we having also uh you know problems in uh procuring it uh because we uh 41:23 41 minutes, 23 seconds procure it from domestically from Indian refiners and smelters. So is there a problem in procurement as well? No, no, 41:30 41 minutes, 30 seconds no, no, no, no problems. Only the price increase is there which is which we are already working on to get the best price 41:38 41 minutes, 38 seconds and uh ultimately the cost has to be passed on to the consumers. Okay. 41:47 41 minutes, 47 seconds And sir um are we expecting any increase in subsidy from government as the cost is going continuously up? 41:54 41 minutes, 54 seconds Already the NBS has been announced yesterday and the notification has been received today. uh the subsidies have been increased and uh the reference has 42:03 42 minutes, 3 seconds to be passed on to the consumers. So for this 6 months the subsidy has been announced. 42:09 42 minutes, 9 seconds That's that's nice sir. And sir um how much must be the MRP increase of NPK and 42:16 42 minutes, 16 seconds DAP and SSP uh you know after uh February after February we we have been working 42:25 42 minutes, 25 seconds uh last 10 15 20 days and uh since the subsidy announcement has already come 42:32 42 minutes, 32 seconds out we we are expecting around uh 25 to 30% of price increase in in coming 42:42 42 minutes, 42 seconds Okay. Okay. Thank you. Thank you. That's all from side and best of luck in in in present scenario and and what happens if if the prices go down or 42:50 42 minutes, 50 seconds something happens uh because already the prices are at the top and the bar has stopped. We we are uh let's see how do 42:59 42 minutes, 59 seconds things move in in terms of costing. Okay sir. Thank you. 43:06 43 minutes, 6 seconds Okay. Thank you. 43:10 43 minutes, 10 seconds Thank you. We will take the next question from the line of Dave Gulwani from Care PMS. Please go ahead. 43:17 43 minutes, 17 seconds Thank you for the opportunity. Company imports lowgrade phosphate rocks and convert it into high grade rock. So is 43:24 43 minutes, 24 seconds it more beneficial than importing high-grade phosphate rocks in terms of price? 43:31 43 minutes, 31 seconds No, see we we are not importing low grade. We are just getting the low grade rock from the local mining 43:38 43 minutes, 38 seconds uh institute which is which is a government of Madhya Pradesh uh company anti-state mining corporation limited 43:46 43 minutes, 46 seconds and that is the rock we are we are beneficiating and uh definitely that beneficiation is 43:53 43 minutes, 53 seconds always better and and it gives a definitive margin in the in the numbers 44:00 44 minutes and the capacity is uh is at uh 200,000 tons and uh we we are utilizing that capacity in the range of 50 to 75%. 44:13 44 minutes, 13 seconds And uh uh other rock which we are importing whether it is medium grade or 44:19 44 minutes, 19 seconds high grade that is being used uh for the manufacturing of fertilizers directly and what is the conversion rate? So 44:28 44 minutes, 28 seconds approx phosphate is required to produce a single metric ton of phosphoric acid. 44:38 44 minutes, 38 seconds Uh it depends what quality of low we are getting low rate from 14% to 20%. So what type of low rate you are 44:46 44 minutes, 46 seconds getting accordingly the output will be there still any approx number 44:56 44 minutes, 56 seconds you can see last year at the capacity of 200,000 we produced more than 30,000 of 45:03 45 minutes, 3 seconds high see if you give an input of suppose 15% and you get an output of 30% so around 45:12 45 minutes, 12 seconds 2.2.5 2.5 tons of rock is required. This is all keeps on changing. 45:17 45 minutes, 17 seconds It keeps on changing it. It is not like it is it cannot be some rule format at one time or it keeps on it keeps depending on the input what you give it. 45:29 45 minutes, 29 seconds Okay, understood. Thank you. 45:34 45 minutes, 34 seconds Thank you. We will take the next question from the line of Rishi Ma and individual investor. Please go ahead. 45:42 45 minutes, 42 seconds Hello. Uh first of all congratulations to the whole team for the achievements. 45:46 45 minutes, 46 seconds Uh my question is uh as you mentioned the plant are operating on the 100% capacity. So how much life you assume and is there any risk of asset stress? 45:58 45 minutes, 58 seconds So no there cannot be a risk of stress because if you maintain a plant at a very good level the plant can operate at 46:07 46 minutes, 7 seconds plant can operate for another 50 40 50 years 50 years and uh as as we have 46:14 46 minutes, 14 seconds already told you that since we are maintaining the efficiencies at 100%. 46:19 46 minutes, 19 seconds So uh we we uh maintain our assets in the best way to give uh give the good 46:26 46 minutes, 26 seconds results in terms of quality and quantity and we expect our team uh to maintain those plants for another 50 years. 46:36 46 minutes, 36 seconds Okay. And uh uh when we will start receiving the green ammonia after 3 years. 46:45 46 minutes, 45 seconds Okay. Thank you. This is the contract phase. contract says green ammonia plant has to be started in the third year and 46:53 46 minutes, 53 seconds we would be eager to get that green ammonia very fast because then what happens is that it reduces our 46:59 46 minutes, 59 seconds dependency on any other uh supplier and uh the green ammonia will ultimately be 47:07 47 minutes, 7 seconds a great uh great achievement for the country as a 47:15 47 minutes, 15 seconds whole also and we being the biggest of the consumers in the country in the world. Uh it will be a pride for us and pride for the investors as well. 47:26 47 minutes, 26 seconds Okay. Okay. Thank you sir. Thank you. 47:31 47 minutes, 31 seconds Thank you ladies and gentlemen. In order to ensure that the management should be able to address all the queries from the participants in the question queue, we 47:40 47 minutes, 40 seconds request you to kindly limit your questions to two per participant. If you have a follow-up question, please rejoin the queue again. 47:52 47 minutes, 52 seconds We will take the next question from the line of Manadi Chhaturvedi, an individual investor. Please go ahead. Good morning, sir. 48:01 48 minutes, 1 second Hello. Am I audible? Yes. Yes. Yes. 48:04 48 minutes, 4 seconds Yeah. So, so my question is input costs were rising in quarter 4. Then how did you manage to deliver such strong EITA margins despite this? 48:15 48 minutes, 15 seconds See the input cost has rised in the last part of the Q4 and uh we maintain the 48:23 48 minutes, 23 seconds reasonable inventories whole year around so margins were never under pressure uh for this for this Q4 48:33 48 minutes, 33 seconds and uh let's see what happens in the coming quarters. Okay sir. Thank you. 48:43 48 minutes, 43 seconds Thank you. We will take the next question from the line of Adita, an individual investor. Please go ahead. 48:55 48 minutes, 55 seconds Adita, please proceed with the question. Yeah. Am I? Yes, you are. 49:03 49 minutes, 3 seconds Yeah. So, uh, yes. Yes. 49:08 49 minutes, 8 seconds Question is regarding your working capital side. uh sir if I understand correctly your trading margin is like 49:15 49 minutes, 15 seconds two and two two and a half% in between like in between trading business margin every margin is 6% in trading 5 to 6% 49:25 49 minutes, 25 seconds okay and uh and sorry is the interest cost is 8 to 9% in between the shortterm 49:32 49 minutes, 32 seconds borrowings you ask me the rate of interest which we are paying 49:40 49 minutes, 40 seconds yes yes sir This depends what type of facility we are using. If you are using in foreign 49:47 49 minutes, 47 seconds currency so far some reasonable margin of 30 40 basis point. If you're using WCBL then some banks are charging bill 49:55 49 minutes, 55 seconds with about 60 70 basis point about some are charging 08 but uh you can say it is in the range of 6 to 7.5. 50:07 50 minutes, 7 seconds Okay. No, I'm asking because the short-term borrowing uh completely wiping out our net profitability in the trading segment, right? 50:18 50 minutes, 18 seconds No, we did not get your point. Please repeat uh I'm asking if the interest cost uh is 50:26 50 minutes, 26 seconds more than more than your uh trading business margin. So, it's a short borrowing completely wiping our profitability on the trading segment, right? 50:42 50 minutes, 42 seconds But look in trading as I told you every 6% can be spent about interest cost 50:50 50 minutes, 50 seconds deficiency is not interesting 3% so leftover is 3%. Yes, obviously we 50:57 50 minutes, 57 seconds are working only in 2.5 to 3% margin uh less margin on import nothing more than that. But the question is when we are 51:05 51 minutes, 5 seconds able to provide all type of variant that is more useful that that gives some credibility to this organization that we are able to meet the demand of the 51:14 51 minutes, 14 seconds market. It is not of the profit. Import is being done to facilitate our consumer not to earn profit. 51:23 51 minutes, 23 seconds or we have our production facility. 51:29 51 minutes, 29 seconds Thank you. We will take the next question from the line of Balachander, an individual investor. Please go ahead. 51:38 51 minutes, 38 seconds Uh hello. Um my question is mainly regarding the AITA margin and sulfur prices and as we talk right now the 51:47 51 minutes, 47 seconds sulfur price is around 90,000 bon and saludic acid is around 25,000 pon and this is 100%age hike uh compared to the 51:56 51 minutes, 56 seconds last quarter and uh the full impact of this might only be seen in the next quarter that I understand very much um 52:04 52 minutes, 4 seconds and I also wish to be optimistic that the sulfur prices will come down but there are concerns that under the new normal the crude oil might be as 52:12 52 minutes, 12 seconds inflated as around $90 for a longer period of time and I know that we cannot pass on much burden to the customer and 52:20 52 minutes, 20 seconds also the government also cannot uh keep on increasing the subsidy rates so is the management taking any proactive 52:27 52 minutes, 27 seconds measures to mitigate the risk management 52:34 52 minutes, 34 seconds 90,000 is nowhere the price thing is 90,000 is no longer the price. 52:40 52 minutes, 40 seconds This is not correct. And another thing is uh we cannot pass on this this statement itself has many limitation. 52:49 52 minutes, 49 seconds Yes, of course we can pass on but then a balance view has to be taken how much we would like to absorb, how much 52:57 52 minutes, 57 seconds government will support and how much we will pass on but of course uh a part will be passed on to the consumer. No doubt we have already increased the MRP. 53:07 53 minutes, 7 seconds Fertilizer remains to be an essential part of the life of a farmer and and India still remains to be an agriculture 53:14 53 minutes, 14 seconds economy and uh still the farmers will keep on farming and and at large 53:23 53 minutes, 23 seconds fertilizer cost or any other cost has to be passed on to the consumer. So no doubt no doubt uh the 53:32 53 minutes, 32 seconds car the car just to add this point if we talk of the world scenario still the prices in India are well within control. 53:43 53 minutes, 43 seconds Okay and uh can can you please quantify the margin for the next because the next is going to see the much impact due to the increased seller price. 53:53 53 minutes, 53 seconds We we have already told you that we are working on it already. The NBS has been announced. We we have already started 54:00 54 minutes increase increasing the MRPs definitely uh AITA 54:07 54 minutes, 7 seconds uh with our old old stocks and the new stocks which we are buying and the new MRPs which we are uh which we are 54:15 54 minutes, 15 seconds already giving in in the market. Let's see what happens. One more thing to add add to this. India India's BAP 54:25 54 minutes, 25 seconds availability and stock positions are very limited. So we expect 54:33 54 minutes, 33 seconds expect the things in line as we told you there will be some 54:39 54 minutes, 39 seconds pressure but uh we will continue to be in positive and have a reasonable profit. That's for sure. 54:51 54 minutes, 51 seconds All right. Thank you. 54:54 54 minutes, 54 seconds Thank you. We will take the next question from the line of Anoj Hara from Intergro Services. Please go ahead. 55:04 55 minutes, 4 seconds Yes. Hi, congratulations on a great number. Uh I just wanted to know for the coming uh for FI27 what will be the 55:11 55 minutes, 11 seconds balance of manufactured revenue and trading revenue like for FI26 which was maybe a 85 80 8020 mix uh what what can we expect for the coming year? 55:25 55 minutes, 25 seconds Look on the FY27 uh based on the demand market we had anticipated that we will be importing 55:34 55 minutes, 34 seconds around 1 lakh 50,000 ton of material which will translate into,000 cr and uh 55:41 55 minutes, 41 seconds based on the capacity utilization on reasonable level uh the growth uh in the manufacturing will be in the range of 55:49 55 minutes, 49 seconds 25%. So overall we hope 35 to 40% they will grow in 202. 55:57 55 minutes, 57 seconds Okay. Uh and the other thing is if you could just uh highlight what are the current sulfur and acid prices that you are witnessing right now. 56:09 56 minutes, 9 seconds the prices are changing and uh prices are in the range of around 55 to 70,000 rupees per ton I think and 56:19 56 minutes, 19 seconds depending on the supplier and what time we are buying and what are the payment terms so no it is changing it has 56:26 56 minutes, 26 seconds changed changed a lot in uh in in last last 30 days 45 days and we are 56:32 56 minutes, 32 seconds expecting changes in another 30 days it may start going down also. 56:44 56 minutes, 44 seconds Um, can we expect a 60,000 uh revenue per per ton for the for FI27 and for the SSP 56:54 56 minutes, 54 seconds fertilizers? Can we expect around 15,000 revenue per ton or or there's a 57:01 57 minutes, 1 second divergence in numbers? 15,000 15,000 we are going to 15,000 we are yes 15,000 is already 57:09 57 minutes, 9 seconds there and 15,000 they need to say 1500 and 6,000 plus plus 57:16 57 minutes, 16 seconds means to say 1500 in SSP and 600 57:25 57 minutes, 25 seconds you're talking about or you talking about No I'm talking I'm talking about aa 57:35 57 minutes, 35 seconds So basic so basically 6,000 of aa for NPK and approximately 16,500 to 1600 for 57:43 57 minutes, 43 seconds SSP or yeah should not be an issue and NPJ yes 6,000 57:52 57 minutes, 52 seconds plus minus 3 4% here and there okay okay got it thank you thank the refuge also man. 58:05 58 minutes, 5 seconds Thank you. We will take the next follow-up question from the line of Adita an individual investor. Please go ahead. 58:14 58 minutes, 14 seconds Uh sorry uh our our cash operator has turned negatively in this year around so 58:22 58 minutes, 22 seconds and uh 336 from last year as a trade receivable. So, so can can you just break down the what percentage of these receivables are spending from the 58:30 58 minutes, 30 seconds government subsidies versus credit extending to dealers and uh are we seeing any subsidy cycle stretched beyond the historical 58:39 58 minutes, 39 seconds 100 days your your subsidy and other 58:47 58 minutes, 47 seconds yes security okay okay subsidy because we that board continuously supplied substantively 58:56 58 minutes, 56 seconds within this last quarter. So subsidy receivable is almost 400 cr and other 59:04 59 minutes, 4 seconds receivables are in the range of 300 to 325 32. 59:11 59 minutes, 11 seconds Okay. 59:13 59 minutes, 13 seconds And we expect all these uh money to flow in in this quarter. So we don't feel any stress on the cash registration. 59:24 59 minutes, 24 seconds Thank you. 59:25 59 minutes, 25 seconds We will take the next follow-up question from the line of Nathan Koshik from Aen Capital Private Limited. Please go ahead. 59:34 59 minutes, 34 seconds Uh thanks again sir. Uh my question is since most of our uh expert most of our capacity expansion is done now. So could 59:43 59 minutes, 43 seconds you please guide us on going forward uh if possible as a percentage of revenue? 59:49 59 minutes, 49 seconds So assuming that we are not doing any capacity addition uh uh going on. So what would be the maintenance capex? 59:59 59 minutes, 59 seconds The benefit capacity addition will happen only during the current year we started production only for coverage. 1:00:08 1 hour, 8 seconds Yes sir. 1:00:10 1 hour, 10 seconds So during the current year only this new capacity will get result. 1:00:16 1 hour, 16 seconds So so you try to you try to understand that 50% of the NPK capacity has been 1:00:23 1 hour, 23 seconds increased and this whole year we can expect a 50% of 1 lakh 65,000 1:00:30 1 hour, 30 seconds uh tons capacity increase means it is around 80,000 tons and 80,000 into around 60,000 rupees per ton we are 1:00:38 1 hour, 38 seconds expecting a line increase of around 500 500 this is what you want to know or you 1:00:45 1 hour, 45 seconds want to know anything No sir that was not my question. My question was regarding that uh we have 1:00:52 1 hour, 52 seconds done capacity expansion now. So going forward what would be capital expenditure as a percentage of revenue 1:00:59 1 hour, 59 seconds assuming that we are not doing any uh capacity expansion going forward we we keep on planning uh the business 1:01:07 1 hour, 1 minute, 7 seconds expansions and we keep on updating our investors as well as the regulators and once they come out with any expansion 1:01:13 1 hour, 1 minute, 13 seconds plans uh definitely we will update you we are we are working on different different uh projects and we have a very 1:01:22 1 hour, 1 minute, 22 seconds good cash flow we are expecting getting good cash flows in this year also. So as as we as we finalize the project on Kex we'll we'll we'll declare it. 1:01:34 1 hour, 1 minute, 34 seconds So also sir we have seen the you have seen the history of our company that we 1:01:43 1 hour, 1 minute, 43 seconds declaring the capex at appropriate times and and and with the uh proper debt equity ratio we keep on expanding. 1:01:54 1 hour, 1 minute, 54 seconds So yes sir also sir if you could give a seven estimate for kx 1:02:03 1 hour, 2 minutes, 3 seconds see when we have not declared on with the regulators we we cannot we cannot come out right now 1:02:11 1 hour, 2 minutes, 11 seconds it it is it is on the it is on the part of a statutory obligation to declare with the regulator and then only we can 1:02:18 1 hour, 2 minutes, 18 seconds come out with the exact capex uh for the yes I understand completely against that. 1:02:30 1 hour, 2 minutes, 30 seconds Okay. Thank you very much. 1:02:35 1 hour, 2 minutes, 35 seconds Thank you ladies and gentlemen. As there are no further questions from the participants but that concludes the question and 1:02:43 1 hour, 2 minutes, 43 seconds answer session. I would now like to hand the conference back to the management for closing comments. 1:02:55 1 hour, 2 minutes, 55 seconds Thank you. Uh thank you very much once again for joining this earning call. If you have any further questions, please 1:03:02 1 hour, 3 minutes, 2 seconds do not hesitate to reach out to our investor relation team and thank you. Have a great day. 1:03:10 1 hour, 3 minutes, 10 seconds Thank you members of the management. On behalf of Krishna Posskim Limited that concludes this conference. Thank you all for joining with us today and you may now disconnect your lines. 1:03:22 1 hour, 3 minutes, 22 seconds Okay. Thank you very much. Bye. Thank you sir.