Madhya Bharat Agro products Ltd — Q4 FY26

Madhya Bharat Agro products Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=hbNlCLcnwjk Published: 3 weeks ago

0:02 2 seconds Good afternoon ladies and gentlemen. A very warm welcome to the Q4 and FYI26 earnings call of Madya Bharat Agro 0:09 9 seconds Products Limited. From the senior management we have with us today Mr. 0:13 13 seconds Panka Jwa managing director Mr. Sorab Gupta chief financial officer Mr. Dorava 0:20 20 seconds chief accounting officer Mr. for Chris Stanter group financial advisor. As a reminder, participant clients will be in 0:28 28 seconds the listenon mode. There will be an opportunity for you to ask questions after the presentation concludes. Should you need any assistance during this 0:36 36 seconds conference, please signal for an operator by pressing star and then zero on your touchstone telephone. Please note that this conference call is being 0:44 44 seconds recorded. I now hand the conference over to Mr. Sorov Gupta. Thank you and over to you sir. 0:52 52 seconds Thank you Farah. Good afternoon everyone and welcome to the earning call for Madhy Bharat Agro Products Limited. 0:59 59 seconds Before we begin the earning call, I would like to mention that the some of the statements made during today's call 1:06 1 minute, 6 seconds might be forwardlooking in nature and hence it may involve risk and uncertaintities including those related 1:14 1 minute, 14 seconds to the financial and operating performances. Please bear with us if there is fall drop during the course of 1:22 1 minute, 22 seconds conference call. We would ensure the call is reconnected soon as I would like to hand over the conference to Mr. 1:30 1 minute, 30 seconds Tanka, managing director. Over to you sir. Good afternoon everyone and thank you for joining us today. On behalf of 1:39 1 minute, 39 seconds the board and the entire NBA family, welcome you to our Q4 and full year FY26 1:46 1 minute, 46 seconds earnings call. FY26 has been a year of meaningful transformation not just in financial performance but in how we 1:55 1 minute, 55 seconds position ourselves within India's evolving agriculture ecosystem across the fertilizer sector. The year was 2:02 2 minutes, 2 seconds marked by strong domestic production and more streamlined subsidy framework and a continued structural shift towards 2:10 2 minutes, 10 seconds balanced nutrition and usage. Early developments in green ammonia also signal the beginning of a transition towards more sustainable input sourcing. 2:19 2 minutes, 19 seconds These trends align closely with NDAP's integrated strategy and strengthen our positioning for the future. Let me start 2:27 2 minutes, 27 seconds with a brief overview of the industry and then walk you through our performance key milestones and outro before opening the floor for questions. 2:37 2 minutes, 37 seconds Industry overview, rubby season and operational environment, domestic production and supply adequacy. India's 2:44 2 minutes, 44 seconds fertilizer production remained strong through Q4 FY26 driven by policy support and operational depth. The quarter 2:52 2 minutes, 52 seconds witnessed stable dynamic dynamics during the rubby season with peak activity concentrated in January and February a 2:59 2 minutes, 59 seconds period that saw PK production reach approximately 15.76 lakh metric tons marking one of the highest monthly 3:06 3 minutes, 6 seconds output levels on record. This momentum continued in March 26. Domestic production remained steady despite the typical seasonal dip in demand as key 3:15 3 minutes, 15 seconds ruby crops like wheat and mustard reach maturity. In the first three weeks of March alone, DAP and NPK production 3:23 3 minutes, 23 seconds reached 7.62 lakh metric tons while SSP contributed another 3.06 lakh metric tons. These figures highlight an 3:30 3 minutes, 30 seconds industry maintaining strong operational depth even against seasonal headwinds, input cost, environment and feed stock 3:38 3 minutes, 38 seconds trend. The fertilizer sector is currently navigating a period of unstable and supply chain res disruption arising of southwest Asia disturbance. 3:48 3 minutes, 48 seconds This has led to the direct impact on the escalation of raw material input cost that includes natural gas and ammonia 3:55 3 minutes, 55 seconds apart from others. DAB prices remained elevated due to the tight global supply while MO prices were relatively stable 4:03 4 minutes, 3 seconds supporting NPK economics. From our perspective, this mix was manageable given our product portfolio and sourcing 4:10 4 minutes, 10 seconds strategy. Sulfur, which is a key input for SSP and phosphoric assay, saw a sharp increase during FY26, moving from 4:18 4 minutes, 18 seconds $100 in FY24 to almost $700 per metric ton. This remained a cost for cosmetic 4:25 4 minutes, 25 seconds fertilizer manufacturer. However, given our integrated setup and captive surgery acid capacity, we were relatively better 4:33 4 minutes, 33 seconds placed to curb down this impact. Rock phosphate prices remain stable during the year which provided some support to overall inputs. 4:43 4 minutes, 43 seconds Policy architecture stable responsive farming farmercentric India's fertilizer policy framework 4:51 4 minutes, 51 seconds continues to remain supportive for the industry. The nutrient-based subsidy regime now covering 28 grades compared 4:58 4 minutes, 58 seconds to 22 RB has held improved flexibility in product mix while keeping fertilizers affordable for farmers. The overall 5:06 5 minutes, 6 seconds subsidy outlay for FY26 was to increase to rupees 1.86 lakh cr reinforcing the government's continued focus on the 5:15 5 minutes, 15 seconds sector. From our perspective, this policy stability provides a strong operating environment and supports demand visibility going forward. 5:25 5 minutes, 25 seconds Structural market trends, a shift in nutrient logic. We are clearly seeing a shift in India's fertilizer consumption 5:33 5 minutes, 33 seconds pattern. Increasing awareness around balanced nutrition use are deriving are driving demand towards NPK complexes and 5:41 5 minutes, 41 seconds FSB. NPK NP production grew by 18.6% in F525 while SSP also saw a strong growth 5:50 5 minutes, 50 seconds in both production and sales. This indicates a gradual move towards more balanced crop nutrition for MBAL. This 5:59 5 minutes, 59 seconds is a posit positive trend as it aligns well with our product portfolios and integrated strategy. Green ammonia the 6:07 6 minutes, 7 seconds structural transformations of Indian fertilizer. One of the key developments this year has been the progress on green 6:14 6 minutes, 14 seconds ammonia under the national green hydrogen mission. Under SEI site program, most of the plant options have 6:23 6 minutes, 23 seconds now been completed covering a significant part of targeted capacity across fertilizer plants. 6:31 6 minutes, 31 seconds Importantly, the price discovery has been encouraging. The lowest price discovered is around 49.75 rupees per kg 6:39 6 minutes, 39 seconds which is now much lower to gray ammonia levels than earlier expected. 6:45 6 minutes, 45 seconds The green ammonia is becoming commercially viable in the Indian context for the industry. These long-term contracts provide better visibility on a critical input for us. 6:56 6 minutes, 56 seconds It is an important step towards securing our our future feed stock requirements with greater cost stability. Having 7:04 7 minutes, 4 seconds outlined the industry development, I will now cover our financial performance for the Q4 and full year FY26. 7:12 7 minutes, 12 seconds Quarter performance F Q4 FY26. 7:16 7 minutes, 16 seconds The company delivered a resilient quarter in Q4 FY26. 7:21 7 minutes, 21 seconds Revenue from operations stood at rupees 394.7 KW up 33% value supported by 7:28 7 minutes, 28 seconds healthy volumes aligned with the robust res demand and stable product relations. 7:34 7 minutes, 34 seconds Aida stood at rupees 41.2 cr up 14% yi reflecting disciplined cost management 7:42 7 minutes, 42 seconds and operating leverage even as feed stock cost intensified in the later half of the quarter. Profit after tax stood 7:49 7 minutes, 49 seconds at rupees 59.8 8 cr up 318.2% earnings per share for the quarter stood 7:57 7 minutes, 57 seconds at rupees 6.82 82 full year performance FY26 for the full year FY26 NVL 8:05 8 minutes, 5 seconds delivered record high performance across all key metrices alltime high revenue from operations stood at rupees 1867 8:14 8 minutes, 14 seconds crores up 76% YI driven by volume growth and steady demand across our product 8:21 8 minutes, 21 seconds portfolio highest ever AITA stood at rupes 227 cr up 55% by UI supported by 8:28 8 minutes, 28 seconds operational efficiency, a favorable product mix and our backward integration advantage. Record high profit after tax 8:36 8 minutes, 36 seconds at rupees 150 cr up 161% value and earnings per share at rupees 17.14 8:45 8 minutes, 45 seconds driven by tax benefits along with improved operational efficiency. 8:51 8 minutes, 51 seconds Now moving to operational performance Q4 FY26 strong fertilizer production for the 8:57 8 minutes, 57 seconds quarter stood at 1 lakh 16,281 metric t and healthy healthy sales stood at 99,146 9:05 9 minutes, 5 seconds metric ts utilization stood at a robust 99% while NPK utilization remained 9:12 9 minutes, 12 seconds healthy at 95%. Our clients demonstrated consistent throughut despite the challenging input environment at 9:20 9 minutes, 20 seconds testament to our supply chain agility and operational discipline. Full year FY26 for FY26 record high production 9:29 9 minutes, 29 seconds stood at 4 lak 75,154 metric t and sales at 4 lak 72,270 9:36 9 minutes, 36 seconds metric t. SSP utilization reached a record high of 98% while NPK DAP fertilizer operated at a peak capacity 9:44 9 minutes, 44 seconds utilization of 100%. Reflecting strong market acceptance and efficient plant operations, we enter FY27. 9:59 9 minutes, 59 seconds Uh Mr. Oar, we are not able to hear you. 10:04 10 minutes, 4 seconds Participants, please hold the line disconnected. We'll just try and call him back. 10:24 10 minutes, 24 seconds We have the management line we collected. 10:27 10 minutes, 27 seconds Yeah. Uh so I'll start with full year FY26. For FY26, record high production stood at 475,154 10:36 10 minutes, 36 seconds metric t and sales at 472,270 metric t. SSP utilization reached a 10:43 10 minutes, 43 seconds record high of 98% while NPK DAP fertilizer operated at peak capacity utilization of 100%. Reflecting strong 10:51 10 minutes, 51 seconds market acceptance and efficient plant operations. We enter FY27 with our facilities well calibrated with new 10:59 10 minutes, 59 seconds capacities and our team's experience in navigating supply volatility strategic expansion building tomorrow's 11:08 11 minutes, 8 seconds capacity today dou project based at Maharashtra integrated platform our doulay integrated manufacturing platform 11:17 11 minutes, 17 seconds represents NBA's next phase of growth in the early commissioning phase we have already crystallized 3 lakh 30,000 11:25 11 minutes, 25 seconds metric ton peranom of SSP fertilizer capacity and 1 lakh 98,000 metric ton perom of sorary gases delivered ahead of 11:33 11 minutes, 33 seconds schedule this is not just a milestone it is a proof point of execution quality our fully integrated DAPK fertilizer 11:42 11 minutes, 42 seconds facility at 3,000 metric ton permk and 99,000 metric ton peranom phosphoric 11:50 11 minutes, 50 seconds acid is progressing ing as planned with commissioning targeted before October 2026. This backward integrated into 11:59 11 minutes, 59 seconds psoriic into phosphoric and subrigic acive positions up to control our cost curve in a volatile raw material environment. 12:10 12 minutes, 10 seconds next phase which will scale up to an additional 3 lakh 30,000 metric ton per nanom of BB LPK fertilizer 66,000 metric 12:18 12 minutes, 18 seconds ton peranom of phosphoric acid and 3 lak 96,000 metric ton peranom of sulfuric acid is targeted for commissioning by 12:26 12 minutes, 26 seconds October 2027 the strategic intent is clear we are building an integrated phosphoric manufacturing complex that 12:35 12 minutes, 35 seconds will be structurally insulated from import dependency Saga Madhya Pradesh commissioned and 12:42 12 minutes, 42 seconds contributing at our Saga facility. The 90,000 metric tons peranom DAP SDK advantage and 1 lakh 65,000 metric tons 12:51 12 minutes, 51 seconds peromic gas capacity have been successfully commissioned in March 2026. 12:56 12 minutes, 56 seconds This facility strengthens our market presence and enhances our route to farmer in central India. Overall, we 13:04 13 minutes, 4 seconds have significantly scaled our capacities during the year. Our SSP capacity now stands at 5 lakh 70,000 metric t per and 13:13 13 minutes, 13 seconds npkdap fertilizer at 3 lakh 30,000 metric ton perom taking our total fertilizer capacity to 9 lakh metric t 13:21 13 minutes, 21 seconds perm on the backward integration front sulfuric acid capacity stands at 5 lakh 28,000 metric tons per total 13:30 13 minutes, 30 seconds intermediate capacity at 7 lak 86,000 metric tons per ongoing expansion we are 13:37 13 minutes, 37 seconds targeting to scale our total fertilizer capacity to 1.56 million metric ton perom by FY28 13:45 13 minutes, 45 seconds significantly enhancing our growth visibility sustainability and credit recognition green ammonia long-term supply security 13:54 13 minutes, 54 seconds MBAL has entered MBAL has entered into a long-term green 14:01 14 minutes, 1 second ammonia procurement agreement under the national green hydrogen mission for 1 lak 30,000 ton metric ton peranom. This 14:09 14 minutes, 9 seconds is a strategic decision on multiple dimensions. It reduces our dependence on imported gray ammonia which currently 14:18 14 minutes, 18 seconds cost approximately $750 per metric ton and is subject to geopolitical disruption. It provides 14:26 14 minutes, 26 seconds 10-year price visibility through SEI's fixed trade contract structure and it positions NBS as an early mover in 14:35 14 minutes, 35 seconds India's agricultural decarbonization journey as green ammonia prices coverage towards gray ammonia parity improve it 14:45 14 minutes, 45 seconds improves commercial viability and positioning green ammonia as a sustainable and economically feasible 14:51 14 minutes, 51 seconds input over time. Credit rating upgrade A+ table. We are pleased to report that 14:59 14 minutes, 59 seconds Crystal and IRA have upgraded MBAL's credit rating to A+ table during the year. This reflects the rating agency's 15:08 15 minutes, 8 seconds recognition of our improved financial strength, expanding asset base, disciplined balance sheet management and 15:15 15 minutes, 15 seconds the strategic logic of our integrated growth model. A stronger rating translates into better financing terms 15:24 15 minutes, 24 seconds for our program and reaffirms the confidence of our lenders, customers and partners in NBA's trajectory. Outlook 15:33 15 minutes, 33 seconds FY27 and beyond. As we look ahead to FY27, the industry stands at an inflection point. Navigating a landscape 15:42 15 minutes, 42 seconds shaped equally by structural opportunity and evolving challenges. The demand foundation remains compelling. India's 15:50 15 minutes, 50 seconds fertilizer consumption in FY26 approached 680 lakh metric tons sustaining the sector multi-year growth 15:58 15 minutes, 58 seconds trajectory underpinned by 140 plus million farming out and MSP support that continues to provide feasible rural 16:07 16 minutes, 7 seconds liquidity and confidence in agricultural productivity. A favor a favorable monsoon outlook further reinforces a 16:14 16 minutes, 14 seconds constructive Kar demand environment. At the same time, input cost, volatility, subsidies, dispersment timeline, global 16:22 16 minutes, 22 seconds supply dynamics and monsoon variability remains key monitorable and have been factored into our planning assumptions. 16:29 16 minutes, 29 seconds Against this backdrop, MBAS is strategically positioned to capitalize on these opportunities through focused 16:37 16 minutes, 37 seconds execution across key growth levers, capacity expansion and exponential growth. Phase one of the doule facility 16:45 16 minutes, 45 seconds has been partially commissioned with backward integration alongside the completed expansion at the Saga unit. 16:52 16 minutes, 52 seconds The balance phase one capacity at the dual facility is expected to be commissioned before October 2026. 17:00 17 minutes These phase integrated expansions is expected to generate 100% revenue growth over the current baseline. This will be 17:09 17 minutes, 9 seconds followed by a further phase of expansion by October 2027 resulting in an additional 25% revenue of site. These 17:18 17 minutes, 18 seconds phase expansions supported by backward integration are expected to enhance operational efficiency and provide 17:25 17 minutes, 25 seconds strong medium-term volume and profit profitability visibility. Scaling towards leadership position with ongoing 17:34 17 minutes, 34 seconds expansions. Today total capacity is expected to increase from 9 lakh metric ton peranom to 1.56 17:43 17 minutes, 43 seconds million lakh million metric ton peranom supporting the company's vision to become India's third largest private 17:50 17 minutes, 50 seconds sector cosmetic fundizer company capital strength supporting growth the company's upgraded credit rating strengthens its 17:59 17 minutes, 59 seconds access to capital markets supporting funding requirements for ongoing and planned capacity 8.7 Green ammonia initiative. The company 18:06 18 minutes, 6 seconds has entered into an agreement for green ammonia and expected to commence after 3 years strengthening input security while 18:14 18 minutes, 14 seconds aligning with long-term sustainability and cost optimization of objectives. 18:18 18 minutes, 18 seconds Geographical diversification with with new capacities coming on stream. The company is strengthening its presence in 18:26 18 minutes, 26 seconds high growth southern markets and plans to establish a dedicated marketing office to enhance distribution reach and 18:33 18 minutes, 33 seconds demand capture. In this context, the combination of favorable demand dynamics, policy support, expected 18:41 18 minutes, 41 seconds restrained supply of imported fertilizer due to war and NBA's ongoing capacity expanses, backward integration and a 18:49 18 minutes, 49 seconds strategic initiative positions the company primed to deliver sustainable growth while maintaining resilence 18:56 18 minutes, 56 seconds against sectoral volatility. Closing remarks. Ladies and gentlemen, MVAPL is a company in purposeful motion. We are 19:05 19 minutes, 5 seconds scaling intelligently, integrating vertically, decarbonizing proactively and earning the trust of our financial 19:13 19 minutes, 13 seconds stakehold stakeholders through consistent execution. India's agriculture story is one of the most durable long-term growth narratives in 19:22 19 minutes, 22 seconds the world. We are honored to be part of it and determined to be one of the best participants. On behalf of entire NBA 19:30 19 minutes, 30 seconds team, I thank you for your continued confidence and partnership. We now open the floor for your questions. 19:39 19 minutes, 39 seconds Thank you very much sir. We will now begin with the question and answer session. Anyone who wishes to ask a question may enter star followed by one 19:48 19 minutes, 48 seconds on their touchstone telephones. If you wish to remove yourself from the queue, you may enter star and two. Participants 19:55 19 minutes, 55 seconds are requested to use only handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. 20:07 20 minutes, 7 seconds Anyone who wishes to ask a question may enter star and one on the touchstone telephones. 20:18 20 minutes, 18 seconds The first question is from the line of Mishita from Crown Capital. Please go ahead. 20:24 20 minutes, 24 seconds Um yes hello yes yeah congratulations on a very good set 20:31 20 minutes, 31 seconds of numbers um so uh I just had a question on the revenue growth that you that you just mentioned so you mentioned that from the uh partial phase one 20:40 20 minutes, 40 seconds capacity expansion that we've already done like that is already commissioned we can expect a 100% of revenue growth 20:47 20 minutes, 47 seconds so uh I am assuming that is going to be on the full capacity utilization so how fast can we plan for that capacity utilization like can we see this growth in FI27? 20:59 20 minutes, 59 seconds See uh the SSP fertilizer plant uh is already commissioned and it is uh 21:07 21 minutes, 7 seconds already on in FY uh 26 on in the last last part of March and uh there are 21:16 21 minutes, 16 seconds there are some due uh government compliances which which are being taken care of and it is supposed to be uh 21:25 21 minutes, 25 seconds starting in another two months uh 2 months commercial production And it is going to start sale sale of fertilizer will start in two months and the DAP NPK 21:34 21 minutes, 34 seconds fertilizer is supposed to supposed to start before October 26. So what we can 21:40 21 minutes, 40 seconds expect is uh this year it will be uh it can be around 50 60 60% of the total 21:49 21 minutes, 49 seconds capacities which we are which we are putting up and then further next year we can we can say that it could be around that uh 75 80 or around 80%. 22:01 22 minutes, 1 second Okay. Okay. Understood. 22:03 22 minutes, 3 seconds to like what is the growth that you can expect this year overall growth as you already spoken uh during the 22:12 22 minutes, 12 seconds current year we expect growth of 50 to 60% and another growth of next FI28 when 22:21 22 minutes, 21 seconds the full benefit of the pool expansion will be available so at that time uh the 22:28 22 minutes, 28 seconds growth rate as on FI26 will be more than 250% you can say 200%. 22:37 22 minutes, 37 seconds Oh so in FY28 we can have more than 200% growth from FYI 26 what 22:46 22 minutes, 46 seconds okay so the baseline of on the baseline of FY26 we can expect a 200% growth in FY28 in FY28. 22:55 22 minutes, 55 seconds Yes. 22:56 22 minutes, 56 seconds Right. Right. Okay. Understood. And my uh next question would be on the payex amount that we like that is required for 23:05 23 minutes, 5 seconds this whole capex that we are doing in the doulay plant. What is the total capex? 23:11 23 minutes, 11 seconds See already doule doule expansion doule project has fully been funded. Uh financial closure has been achieved and 23:20 23 minutes, 20 seconds uh tams have started discussing our margin contribution. We are confident that uh through these internal approvals 23:27 23 minutes, 27 seconds and the coming six month approvals we'll be able to meet. So as far as the current ongoing expansion is concerned 23:35 23 minutes, 35 seconds uh we are fully uh financially closed and that should not be an issue. But as regards that second expansion which our 23:44 23 minutes, 44 seconds MD has spoken about which we are yet to undertake uh there uh it is still under 23:51 23 minutes, 51 seconds process and we will be able to give you the full details only after this uh operational commercialization uh starts 23:59 23 minutes, 59 seconds producing results. So maybe in like month of October November we'll be able to understand that exercise. 24:08 24 minutes, 8 seconds Okay. Understood. 24:10 24 minutes, 10 seconds And uh my uh next question was on margins. So uh like uh in Q3 and Q4 our 24:19 24 minutes, 19 seconds margins were around 10% and like in Q1 it was around 13%. So is there any seasonality that we see in our business? 24:28 24 minutes, 28 seconds So like the first half we experienced more margins than the second half is there any seasonality? 24:35 24 minutes, 35 seconds In fact uh the third last quarter because of the rise in input cost there has been some pressure. So the aida 24:43 24 minutes, 43 seconds margin has been low but uh going forward there are certain positive factors which 24:50 24 minutes, 50 seconds uh particularly phosphatic fertile industries are witnessing. Number one, the supply of raw material is not going 24:59 24 minutes, 59 seconds to be affected except that ammonia which we procure from domestic supplier. For ammonia, the domestic ura manufacturers 25:08 25 minutes, 8 seconds who have been restored full gas supply are expected to give adequate ammonia to us. As far on the question of pricing is 25:18 25 minutes, 18 seconds concerned, the government of VPI has already directed all the manufacturers to quote reasonable rate for ammonia. 25:25 25 minutes, 25 seconds Another point is during this current quarter all the fertilizer manufacturers uh taking into account the increased NBS 25:34 25 minutes, 34 seconds subsidy we have uh increased the MRP uh which will be further reviewed in next 25:41 25 minutes, 41 seconds one to two months. So put together all these factors where raw material supply is ensured costing whatever has 25:50 25 minutes, 50 seconds increased is uh going to be cut MRP going up NBS subsidy increased by government further government support. 26:01 26 minutes, 1 second We hope that the this whatever situation we have seen in the past or the war 26:08 26 minutes, 8 seconds situation it will be a blessing in disguise and we should be in position to show you a better result with new 26:16 26 minutes, 16 seconds capacities coming into uh operations. 26:22 26 minutes, 22 seconds Okay. Okay. So like there's no seasonality because of which the markets have fallen. It's just the outside 26:29 26 minutes, 29 seconds factors and the raw material cost because of this because of which it's new right? No, whatever whatever 26:37 26 minutes, 37 seconds seasonity has been there for the decades it will be there. Nothing else nothing new. 26:43 26 minutes, 43 seconds Okay. Okay. So what are the sectional margins that you can expect? 26:48 26 minutes, 48 seconds We'll be able to we will be able to mention the margin that is what I have told you. We will be able to mention margin and if there is any any 26:56 26 minutes, 56 seconds deficiency is occurred on account of the raw material prices we will adjust the thing with increase in MRP. 27:04 27 minutes, 4 seconds Okay. Okay. So like can we maintain the margins around 14%. Yes. 27:13 27 minutes, 13 seconds Uh 14% talking percentage wise I think it will not be fair to tell that 14%. 27:21 27 minutes, 21 seconds But absolute terms per will be able to maintain. 27:26 27 minutes, 26 seconds Okay. Understood. Understood. Thank you so much. That is it from the Thank you. Participants with questions 27:34 27 minutes, 34 seconds may enter star and one on the touchstone telephones. The next question is from the line of Jan Gillani from Swan Investments. Please go ahead. 27:44 27 minutes, 44 seconds Hi sir, thank you for this opportunity. 27:46 27 minutes, 46 seconds So uh as you mentioned to the earlier participant that you expect the IIDA per ton to be sustainable. So what is the AIDA per ton target that you are expecting could be sustainable by FI28? 27:59 27 minutes, 59 seconds By 28? Yes. 28:04 28 minutes, 4 seconds uh sorry for 27 and 28 if possible 28 I think it is too early for industry 28:12 28 minutes, 12 seconds is going by the geohic position to forecast about 28 but 27 as I told you we'll be able to maintain per 28:21 28 minutes, 21 seconds in 27 also so what could be the absolute per ton that you would maintain in 27 it will be 28:28 28 minutes, 28 seconds in the range of 6,000 rupees for NPK 6,000 for NPK and what about SSP? 28:35 28 minutes, 35 seconds SSP will be in the range of uh 1,800. 28:40 28 minutes, 40 seconds Okay. And uh so sorry just to clarify that to the earlier participant you mentioned that we can expect uh revenues 28:47 28 minutes, 47 seconds of almost 4,000 crores by FI28. Is that right? Absolutely correct. Yes. Yes. 28:55 28 minutes, 55 seconds Okay. Done. That's it from my side. Thank you. 28:58 28 minutes, 58 seconds Thank you. Thank you. The next question is from the line of Anish Dari from Vicaria Change LLC. Please go ahead. 29:07 29 minutes, 7 seconds Hi. Uh can you uh explain this uh oil and gas shock uh which has happened uh 29:14 29 minutes, 14 seconds how has it uh flown through your business either in terms of volume raw material just an experience of how are 29:22 29 minutes, 22 seconds you managing it and where are you seeing changes in the prices you have to take or volume impact in your business. 29:31 29 minutes, 31 seconds See basically u there are three nutrients NPK and N comes from uh this 29:39 29 minutes, 39 seconds ammonia and ammonia is coming from natural gas. So natural gas is being imported into India. So one one point is 29:48 29 minutes, 48 seconds clear that when when this oil and natural gas are impacted uh this natur this this ultimately 29:56 29 minutes, 56 seconds impacts the uh cost of ammonia. So uh the cost of ammonia has increased uh due 30:05 30 minutes, 5 seconds to the natural gas prices and uh which uh which is already impacted down the lines from all these Middle East 30:13 30 minutes, 13 seconds countries. part is there and the other part is that we being a complex fertilizer manufacturer, DA MPK 30:21 30 minutes, 21 seconds fertilizer manufacturer, we buy ammonia from URA manufacturers because what happens is there is a ammonia excess 30:29 30 minutes, 29 seconds availability is there in URA manufacturing units. 30:33 30 minutes, 33 seconds uh the uh the ammonia prices have increased for our units also and uh uh but as already explained due to this 30:42 30 minutes, 42 seconds government initiatives and uh the hurdles from the imports and uh the other initiatives taken from the 30:49 30 minutes, 49 seconds industries has increased the MRP has increased. So all these uh cost impacts 30:56 30 minutes, 56 seconds of ammonia or sulfuric acid or sulfur have been taken care of and as such 31:03 31 minutes, 3 seconds there is no uh impact on the edita or the profitability 31:10 31 minutes, 10 seconds right. How how much has ammonia increased and uh how much have you increased the prices of your products? 31:19 31 minutes, 19 seconds See ammonia has increased. Ammonia prices have gone up uh by 31:26 31 minutes, 26 seconds uh it it has gone up by 40,000 per,000 31:36 31 minutes, 36 seconds 45,000 per yes and we have increased our MRP by 50%. 31:45 31 minutes, 45 seconds Okay. Let's say this increase of 60% in MRP does it make up for all of this 45,000 or you end up making some profit also. 31:52 31 minutes, 52 seconds Subsidy subsidy component has also been increased by government. 31:57 31 minutes, 57 seconds Okay. So including subsidy component increase and your MRP increase 60%. Uh does it cover all the raw material cost 32:05 32 minutes, 5 seconds increase or you have extra profit also on no cover. No extra cost has been covered. 32:14 32 minutes, 14 seconds So okay great. And this you said that this crisis could be blessing in disguise also for you as we look forward maybe few come some some time ahead. Uh 32:22 32 minutes, 22 seconds can you explain what would you look out for which can be positive for you let's say few sometime down the line. 32:30 32 minutes, 30 seconds See what happens is uh the particularly this Iran and this part they were 32:37 32 minutes, 37 seconds supplying fertilizers to India and the raw material comes from the other side Egypt, Jordan, Morocco and all those 32:46 32 minutes, 46 seconds parts. So only this finished fertilizer part is affected. So what is happening is this finished fertilizer is coming 32:53 32 minutes, 53 seconds left into India. So ultimately the domestic manufacturing units in India are uh are in a position to produce 33:02 33 minutes, 2 seconds maximum in any case Indian manufacturers produce maximum because the because the country is dependent on uh foreign 33:10 33 minutes, 10 seconds foreign fertilizers. So it gives an imported Indian manufacturer to produce maximum and get better revenues. This is 33:18 33 minutes, 18 seconds this is one part. Uh the second part is the government is already uh working out various types of initiatives to help the 33:27 33 minutes, 27 seconds Indian manufacturers uh remain in profits, remain in reasonable profits. And the other part 33:35 33 minutes, 35 seconds which is being scattered is that industry has already started increasing the prices which in turn will cover the increased cost of the raw material. 33:46 33 minutes, 46 seconds Right? This industry increasing the prices is the same. You also have increased the prices, right? That's the you were also part of the same industry. 33:53 33 minutes, 53 seconds Yes. Yes. Yes. Yes. Yes. 33:55 33 minutes, 55 seconds Lastly, if you were to look back in 2022 when Russia Ukraine war happened, how it 34:04 34 minutes, 4 seconds in in 2022, we also had a oil and gas shock when Russia Ukraine war happened. 34:11 34 minutes, 11 seconds Uh what were the things which were different that time versus now? Uh what were what did you experience that time? 34:17 34 minutes, 17 seconds uh if you can explain that year also has been described. We reported the best results 34:27 34 minutes, 27 seconds and was it similar to this time that where you were facing uh increase in no not exactly this time because of the 34:35 34 minutes, 35 seconds Iran Israel war this belt of uh Gulf country who supplies maximum phosphate 34:42 34 minutes, 42 seconds or other fertilizer and also uh other material. So this time it is more affected than as compared to Russia or Ukraine war. 34:55 34 minutes, 55 seconds Okay. But in terms of fertilizer supply globally getting reduced that was similar phenomena which you're experiencing this time. 35:05 35 minutes, 5 seconds No global fertilizer supply has no iron case the import 35:13 35 minutes, 13 seconds maybe some restraint or there will be some issue import of these phosphates and fertilizer so it can affect or 35:21 35 minutes, 21 seconds because demand is maintained demand will be more so the pressure for supply from domestic manufacturer will be more so 35:29 35 minutes, 29 seconds that is why I have been telling this is going to be addressing in these guys we will be produced to the extent maximum we'll be able to staying without any 35:37 35 minutes, 37 seconds problem and with these MRP increased NPS subsidy raw material rock not going to 35:45 35 minutes, 45 seconds be hindered because it comes from Jordan ammonia supply is being regulated by government of India uh we hope that we 35:53 35 minutes, 53 seconds should be able to give you very good results great and your raw material supply anyway uh affected in terms of volume so 36:01 36 minutes, 1 second I know prices have gone up but in terms of volume are you getting as much volume as you want because it's coming from Egypt, Jordan, Morocco or there is some degree of volume shortage on Rome or real time. 36:11 36 minutes, 11 seconds No, no, we are getting appropriate quantities. That is not an issue. That is not an issue. Great. Thank you. 36:19 36 minutes, 19 seconds Thank you. 36:21 36 minutes, 21 seconds Thank you. The next question is from the line of Kesha Sharma, an individual investor. Please go ahead. 36:30 36 minutes, 30 seconds U Mr. Sharma, your line is unmuted. You may go ahead and ask your question. 36:35 36 minutes, 35 seconds Um hi good evening. Thanks for opportunity. Uh uh you mentioned a target to become 36:42 36 minutes, 42 seconds India's third largest trial sector phosphat fertilizer company. What is the current ranking and who are the top two 36:52 36 minutes, 52 seconds right now? uh Korumat and Paradiv are the top two and we could be around uh on the fifth or sixth position but after 37:01 37 minutes, 1 second this uh all expansions being completed and then we we will be manufacturing almost more than 1.5 million ton of fertilizer then we rank to be on the third position in private sector. 37:14 37 minutes, 14 seconds Okay. Okay. Thank you. Thanks. 37:17 37 minutes, 17 seconds Thank you. Our next question is from the line of Vignesh Ayar from Sequent Investments. Please go ahead. 37:24 37 minutes, 24 seconds Uh sir uh congratulation on good set of numbers and thank you for the opportunity. Uh so for my first question 37:31 37 minutes, 31 seconds is uh I just wanted to understand uh you know uh the prices of sulfur and sulfuric acid the average price for 37:39 37 minutes, 39 seconds quarter 4 and what is the price uh in right now I mean uh in the in the month of April if you could provide per kg uh 37:48 37 minutes, 48 seconds what is the trend prices of suffering last quarter 37:57 37 minutes, 57 seconds last year last quarter last quarter approx 55,000. Last quarter it was around 50 55,000. Now it is around 70,000 quarter. 38:08 38 minutes, 8 seconds Uh and sulfuric acid practically sulfuric acid comes from sulfur and the refiner and the smelter. 38:17 38 minutes, 17 seconds So smelters have their own vices but from sulfuric from sulfur it is uh around uh 15,000 which has increased to 38:27 38 minutes, 27 seconds around 22,000 20,000 20,000. 38:32 38 minutes, 32 seconds uh 15,000 was the price last quarter and 20,000 is now is what you are saying right approximate number 38:40 38 minutes, 40 seconds right perfect yeah that's some method thank you thank you very much thank you participants with questions you may 38:49 38 minutes, 49 seconds enter star followed by one on your handset the next question is from the line of Anu from Agarwa from lucky investments please go ahead 38:58 38 minutes, 58 seconds uh thank you so much for taking my question and congratulations questions on gate number sir. Uh my question is sir if you can elaborate more on the 39:05 39 minutes, 5 seconds green ammonia project uh with the government um it's a 10-year contract by when are we looking to put capeex for that? How much would that be? When are 39:14 39 minutes, 14 seconds we looking to commence the project? Uh what is the kind of incentive structure that is in place? Uh if you can just maybe elaborate a little bit. 39:23 39 minutes, 23 seconds See we have done the contract buying contract with the government agency known as SECI right and we are not putting that green ammonia project. 39:34 39 minutes, 34 seconds Green ammonia project is put by an another player which is in contract with SECI. So there is a uh another company 39:44 39 minutes, 44 seconds who will put the green ammonia project sell it to SECI at a price and SECI will 39:50 39 minutes, 50 seconds set sell us at certain price. So there is no capex involvement from our sides. 39:57 39 minutes, 57 seconds It is only that the contract fails that we will be able to receive this 1 lak 20,000 tons of green ammonia at both of 40:06 40 minutes, 6 seconds the plants at a fixed price for 10 years and which can be renewed for which can be renewed after 10 years. 40:15 40 minutes, 15 seconds Understood. And when is this going to start uh commencing? 40:18 40 minutes, 18 seconds Uh in another 3 years. In another 3 years. And the quantity is not 1 lakh 20,000. The quantity is 1 lakh 30,000. 40:24 40 minutes, 24 seconds 30,000. Okay. April April 29. April 29. 40:28 40 minutes, 28 seconds We expect the supply from April 29. 40:33 40 minutes, 33 seconds And the pricing wise, it is an upper price has been fixed. In case green ammonia goes down, 40:41 40 minutes, 41 seconds gray ammonia goes down, we will be charged the rate equivalent to gray gray ammonia. 40:48 40 minutes, 48 seconds Okay. If I may ask, sir, what is the price that we have signed a contract about? 40:54 40 minutes, 54 seconds 53 53,000 rupees per 53,000 for 10 years delivered delivered at our factory site 41:02 41 minutes, 2 seconds and this includes the incentive sir or it does not include the incentive uh no in case gray ammonia means the 41:09 41 minutes, 9 seconds ammonia produced from natural gas it's available lesser than 53,000 in market 41:16 41 minutes, 16 seconds then we got this green ammonia at lesser price at currently that ammonia produc producing from natural gas is around 41:25 41 minutes, 25 seconds 90,000. In that case, we also get this green ammonia at 53,000 rupees per metric ton. The upper price is kept and 41:34 41 minutes, 34 seconds the lower price is not kept. The whichever price is low whether it is gray ammonia or green ammonia charged by. 41:44 41 minutes, 44 seconds But so the product the production process will have a different route for manufacturing, right? It may not be 41:52 41 minutes, 52 seconds Yeah. Yeah. Yeah. Yeah. Production process is completely natural and the difference is 42:00 42 minutes so whether we use green ammonia or the gray uh it does not matter all. No no it is it is ammonia. 42:09 42 minutes, 9 seconds Okay. Uh what what what technology do we use sir? 42:14 42 minutes, 14 seconds See I told you that we are not we are not we will not be into manufacturing. 42:23 42 minutes, 23 seconds For us it is the same ammonia the process is different. One is produced by natural gas another will be produced by solar energy and air. 42:34 42 minutes, 34 seconds So different supplies are there. 42:38 42 minutes, 38 seconds So so the the question of setting up or technology or how process we are not 42:46 42 minutes, 46 seconds concerned. We'll get the ammonia from this uh player through government agency. 42:52 42 minutes, 52 seconds Understood. And then we'll convert to DAP and PK. Okay. That mostly same. 42:59 42 minutes, 59 seconds Understood. Got it sir. Thank you so much for this. Thank you. 43:06 43 minutes, 6 seconds The next question is from Ma and individual investor. Please go ahead. 43:12 43 minutes, 12 seconds Hello. Uh sir my question is what is the total capex outlay for the doulay platform across phase one and phase 2. 43:23 43 minutes, 23 seconds See the total project cost is uh 675 crores which includes our father 43:32 43 minutes, 32 seconds and uh the present uh expenditure has been made to the tune of 460 crores. the 43:39 43 minutes, 39 seconds balance project balance the cost will be incurred in another 34 month. 43:46 43 minutes, 46 seconds Okay. Um another question is the doulay DAP or NPK facilities targeted for uh 43:52 43 minutes, 52 seconds October 26 commissioning. What are the key risk to this timeline? 43:59 43 minutes, 59 seconds Nothing. We we hope to start even before October. 44:05 44 minutes, 5 seconds going by the present going by the present state of work going in progress even SSP was also targeted 44:14 44 minutes, 14 seconds to start from October we started in April and PK targeted in October we hope to start before that date 44:24 44 minutes, 24 seconds okay thank you sir all the best for the projects thank you thank you very much thank you ladies and gentlemen if you 44:33 44 minutes, 33 seconds have any questions questions. At this time, you may enter star followed by one on your touchstone telephone. 44:47 44 minutes, 47 seconds To ask a question, you may enter star and one. 45:00 45 minutes We have a followup from the line of Anish Dari from Vicaria change LLP. Please go ahead. 45:06 45 minutes, 6 seconds Hi, this is green ammonia which is 50,000 rupees per 10 caps. So graymonia price is much lower than do you pay 45:15 45 minutes, 15 seconds 50,000 or you pay lower amount which is there on gray ammonia lower amount we will pay lower amount lower amount. So and and let's say the 45:24 45 minutes, 24 seconds supply of this ammonia green ammonia would be at a certain cost which is not changing. So who is bearing that in terms of a case it goes? 45:32 45 minutes, 32 seconds Government of India. Government of India. 45:35 45 minutes, 35 seconds Got it. So they are basically supporting the use of green ammonia and through their own uh 45:43 45 minutes, 43 seconds this is this is between the manufacturer of green green ammonia and government agency they 45:50 45 minutes, 50 seconds have to make the assessment right and you got one lakh 30,000 uh 45:56 45 minutes, 56 seconds tied up uh and other 30,000 one lakh 30 one lakh yes 46:04 46 minutes, 4 seconds right and who who are the other fertilizer companies uh who have got this kind of uh sign up 46:13 46 minutes, 13 seconds forand parade uh deeper supply 46:21 46 minutes, 21 seconds we we are aware of these three players out of seven uh around seven lakh metric 46:28 46 minutes, 28 seconds seven lakh metric contract has been done and uh we as a host group are the 46:35 46 minutes, 35 seconds biggest uh with a tie up of of 2.5 lakh metric temp 2.5 lakh metric temp 46:45 46 minutes, 45 seconds okay the 1 lakh 30 here and 1 lakh 20 is in future or some other place in our other group 46:53 46 minutes, 53 seconds okay the group you have got two and a half lakh so one lakh 30,000 is in here, right? 47:01 47 minutes, 1 second Okay. Yeah. Thank you. Thank you. 47:07 47 minutes, 7 seconds Thank you. Participants with questions may enter star and one on your handsets. 47:20 47 minutes, 20 seconds There appears to be no further questions. Management, shall we close the call? 47:26 47 minutes, 26 seconds Okay, would you like any comments? 47:32 47 minutes, 32 seconds Yes. Yes. Thank you once again for joining us. If you have any further questions, please don't hesitate to reach out to our investor lesson team. 47:40 47 minutes, 40 seconds Thank you. Have a great day. 47:44 47 minutes, 44 seconds Thank you very much. On behalf of Matya Agro Products Limited, that concludes this conference call. Thank you all for joining us and we may now disconnect your lines. Thank you.