Navin Fluorine International Limited — Q4 FY26

Navin Fluorine International Limited Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=vGCitabPz3Y Published: 2 weeks ago

0:00 Ladies and gentlemen, good day and welcome to the Naven Florine International Limited conference call hosted by MUFG. 0:08 8 seconds As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. 0:18 18 seconds Should you need assistance during the conference call, please signal an operator by pressing star then zero on your test phone. 0:26 26 seconds I now hand the conference over to Miss Puja Swami from MUFG. Thank you and over to you ma'am. Please proceed. 0:34 34 seconds Thank you Shalinda. Good evening everyone and welcome to Q4 and FYI26 earning conference call of Navin Florin 0:42 42 seconds International Limited. Today on the call we have with us Mr. Vishad Natla chairman, Mr. Nitin Kulkarni, managing 0:50 50 seconds director and Mr. Anish Gamata, chief financial officer. Before we proceed with the call, I would like to mention 0:57 57 seconds that this call will contain forward-looking statements about the company which are completely based on beliefs, opinions and expectations as of 1:06 1 minute, 6 seconds today. Actual results may differ materially. These statements are not the guarantee of our future performance and 1:14 1 minute, 14 seconds involve risks and uncertainties that are difficult to predict. A detailed safe harbor statement is given on page two of 1:21 1 minute, 21 seconds the investor presentation of the company which is uploaded on stock exchanges and on the company's website. 1:29 1 minute, 29 seconds This I hand over the call to Mr. Vishad Muttlav for his opening remarks. Thank you and over to you sir. 1:38 1 minute, 38 seconds Good evening [clears throat] everyone and a warm welcome to Naven Florin International Limited quarter 4 and full 1:45 1 minute, 45 seconds year FYI26 earnings call. I am joined today by our MD Mr. Nissan Karnney our 1:52 1 minute, 52 seconds CFO Mr. Anish Danatra along with Miss Pile de our investment investor relations advisor from MUFG in time. 2:02 2 minutes, 2 seconds FY26 has been a resilient year for Naven Florine marked by strong deliveries despite a 2:09 2 minutes, 9 seconds challenging global environment and geopolitical uncertainties. 2:14 2 minutes, 14 seconds By staying focused on our long-term priorities and leveraging capabilities, we remain committed to navigating these 2:22 2 minutes, 22 seconds uncertainties with discipline and agility. 2:26 2 minutes, 26 seconds I am pleased to report that the company has delivered six consecutive quarters of revenue and profitability growth, 2:34 2 minutes, 34 seconds reflecting the strength of our business ethos, consistent execution and sustained demand across key segments. 2:43 2 minutes, 43 seconds [clears throat] 2:43 2 minutes, 43 seconds This momentum underscores management's focus on discipline growth, market expansion, and long-term value creation for our stakeholders. 2:53 2 minutes, 53 seconds I am glad to inform you that the board in today's meeting has declared a final dividend of 8.6 rupees per equity share, 3:03 3 minutes, 3 seconds 430% of the face value of rupees 2 per share. 3:10 3 minutes, 10 seconds The growth in this fiscal is supported by contribution across the business verticles led by structural demand 3:17 3 minutes, 17 seconds drivers and constructive pricing environment. This diversification across products, customers and geographies 3:25 3 minutes, 25 seconds remain central to Naven Florine long-term strategy. Our strong balance sheet continues to provide flexibility 3:34 3 minutes, 34 seconds while our robust order book across verticals underscores the confidence our customers place in us. With 3:41 3 minutes, 41 seconds [clears throat] proven capabilities and operational efficiencies, we believe that innovation companies like us are 3:49 3 minutes, 49 seconds best positioned to capture long-term growth. 3:52 3 minutes, 52 seconds As we look ahead to the new financial year, we see [clears throat] commissioning and ramping up of 4:00 4 minutes additional ATSC capacity of 32 MP and the upcoming KOS project. These projects 4:08 4 minutes, 8 seconds will transition from investment phase to revenue generation in this year. We will continue to focus on a balance of 4:17 4 minutes, 17 seconds product and service play with emphasis on niche chemistries to drive differentiated growth and value 4:23 4 minutes, 23 seconds creation. We will continue to deepen and broaden our customer relationships across geographies. 4:31 4 minutes, 31 seconds We will maintain a strong balance sheet with continued focus on capital allocation to deliver long-term 4:37 4 minutes, 37 seconds shareholder value. I would like to thank our customers for trusting us, our employees whose dedication has made 4:46 4 minutes, 46 seconds every achievement possible, our board for their continuous guidance and our shareholders for believing in us. With 4:54 4 minutes, 54 seconds this, I will now hand over the call to Nitan to take you through the operational and segment wise performance in more detail. Thank you. 5:05 5 minutes, 5 seconds [clears throat] 5:06 5 minutes, 6 seconds Thank you Vishad and good evening everyone. 5:10 5 minutes, 10 seconds Let me walk you through the segmental performance and key operational developments. I'm pleased to share that we have reported a growth of more than 5:18 5 minutes, 18 seconds 2x in iita and pat for the year across all three business verticles. Our 5:26 5 minutes, 26 seconds performance is a continuation of operating momentum and execution discipline. 5:33 5 minutes, 33 seconds Starting with our HPP business, quarter 4 FY26 revenue grew 20% yearonear at 5:42 5 minutes, 42 seconds rupees 393 cr driven by input realization and volume growth. Our plant 5:51 5 minutes, 51 seconds was successfully commissioned and commercial supplies have commenced during the last quarter. Our additional 5:58 5 minutes, 58 seconds HSC capacity expansion equivalent to 15,000 metric tons peranom of R32 6:05 6 minutes, 5 seconds remains on track for commissioning in quarter 3 FY27. 6:10 6 minutes, 10 seconds The HPP business continues to benefit from a constructive global demand supply environment, increasing adoption of low 6:19 6 minutes, 19 seconds GWP refrigerants and export opportunities. 6:24 6 minutes, 24 seconds Moving to speciality chemicals vertical, Q4 FI26 revenue grew 39% yearonear at 6:32 6 minutes, 32 seconds rupees 360 crores reflecting strong execution in both existing and new molecules. We continue to see scale up 6:41 6 minutes, 41 seconds in ongoing products supported by customer confidence and long-term contracts. Our d mpb debottlenecking 6:50 6 minutes, 50 seconds capex is progressing well and is and is targeted for commissioning in quarter 3 f27. 6:57 6 minutes, 57 seconds The kos project is on track and expected to be completed by end june early July. 7:04 7 minutes, 4 seconds Importantly speciality chemical growth is backed by order visibility and a robust pipeline for fy 27. 7:13 7 minutes, 13 seconds Turning to CDMO business quarter 4 S FYI26 revenue grew by 61% yearonear to 7:20 7 minutes, 20 seconds rupees 186 crores. This growth was driven by balance mix of early late stage and commercial molecules across 7:30 7 minutes, 30 seconds therapeutic areas such as oncology, respiratory, cardiovascular, neurology 7:36 7 minutes, 36 seconds and animal health. To sum up, FY26 has reinforced our belief in the strength of Naven Floring's integrated platforms. 7:45 7 minutes, 45 seconds Our near-term priorities are efficient execution of announced capex and improving return ratios while scaling growth. 7:55 7 minutes, 55 seconds Before concluding, I would like to take a minute to address the current geopolitical environment. We are closely 8:03 8 minutes, 3 seconds monitoring and navigating the developments with agility particularly given implications on energy prices, logistics and supply chain disruptions. 8:14 8 minutes, 14 seconds With that I would like to hand over the call to Anish for his business. 8:21 8 minutes, 21 seconds Thank you Nathan. Good evening all and I welcome you all to the earnings call. 8:26 8 minutes, 26 seconds Moving on to the financial performance of the company in Q4 and FY26. 8:31 8 minutes, 31 seconds Let me begin with the financial highlights for the quarter ended March 31st. Consolidated revenues to that 938 8:39 8 minutes, 39 seconds crores registering a 34% year-on-year growth. Operating IIDA increased 80% 8:46 8 minutes, 46 seconds yearonear to 321 crores with margins expanding to 34.2%. 8:53 8 minutes, 53 seconds Operating PBT grew 118% yearonear to 251 crores. profit after tax sto 213 crores reflecting a growth of 124%. 9:06 9 minutes, 6 seconds For the full year FI26, net operating revenues grew to 3,314 crores reflecting a growth of 41% 9:15 9 minutes, 15 seconds supported by broad-based momentum across specialtity chemical CDMO and HP operating more than doubled to 1,082 9:24 9 minutes, 24 seconds crores with margins at 32.6% 6% and expansion of 992 basis points reflecting a favorable mix in operating leverage. 9:35 9 minutes, 35 seconds Operating PBT grew 142% yearonear to 815 crores as against 336 crores in the last 9:44 9 minutes, 44 seconds in F54 profit after tax stood at 664 crores as 9:50 9 minutes, 50 seconds against 289 crores. Our networking capital days is improved to 74 days versus 90 days, reflecting a stronger 9:59 9 minutes, 59 seconds operational efficiency and better conversion cycles. Going forward, the networking capital is expected to be in 10:06 10 minutes, 6 seconds the range of 75 to 80 days versus our previous indicative guidance of 90 days 10:13 10 minutes, 13 seconds 90 days of sales. As of 31st March 2026, our net debt to equity stood at 01x 10:20 10 minutes, 20 seconds negligible while both roe and roy improved at 20% and 21% respectively. 10:27 10 minutes, 27 seconds Thank you. And we can now open the floor for question and answers. Thank you very much. 10:37 10 minutes, 37 seconds We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on the 10:44 10 minutes, 44 seconds touchstone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants 10:51 10 minutes, 51 seconds are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question cue assembles. 11:08 11 minutes, 8 seconds The first question is from the line of Sanjay Chan from ICIA securities. Please go ahead. 11:17 11 minutes, 17 seconds Thank you. Uh and uh I got few questions. Uh let me start with the Middle East situation 11:25 11 minutes, 25 seconds right now. I got two questions. First on the availability of raw material uh including but not limited to sulfur and 11:33 11 minutes, 33 seconds non have we any challenge of see raw material availability uh the forward uh contracts have not 11:42 11 minutes, 42 seconds been written or suppliers have not been uh how is the situation there because I think it remains very volatile and 11:48 11 minutes, 48 seconds uncertain and a related question is on the inflation of the raw material uh we have been maintaining of 45 days 11:57 11 minutes, 57 seconds inventory we sailed through probably a better March and AS but we should be hitting a level where inventory is now 12:05 12 minutes, 5 seconds completely depleted that means it necessitates the uh increased pricing to the contracts which we are working and 12:13 12 minutes, 13 seconds spot price is probably adjust much faster but how we think about the passing on information of the contracts 12:19 12 minutes, 19 seconds like SFO agrochemical and CDM that's number one uh number two on For refrigerant gas there is a notification 12:29 12 minutes, 29 seconds which government has uh put up and now I think the plan can come up till 2027 12:36 12 minutes, 36 seconds and uh there could be a situation where the competition was not earlier looking 12:42 12 minutes, 42 seconds at significantly at the capacity in 27 probably we are adding a capacity now in 12:49 12 minutes, 49 seconds excess of 1 lakh 50,000 in India that situation is very different than what we were earlier for CY26. 12:58 12 minutes, 58 seconds Now how does it changes the scenario for sizes? Because in our presentation we are talking of a revenue potential from 13:04 13 minutes, 4 seconds UR32 of some tune of 600 to 825 cr. So at a lower end we are looking at a price which is 400 cr probably half of the 13:14 13 minutes, 14 seconds price uh is trading. So what do you why do you think uh you're looking at 400 as 13:21 13 minutes, 21 seconds a bottom ting that's number is probably at the margin uh we appreciate that you have been calling out margin some 13:29 13 minutes, 29 seconds benefit coming off in currency but can you help us with the number what is the margin benefit which has come purely from these are my initial question thank 13:38 13 minutes, 38 seconds you sorry Sanj can you repeat your last question on margin so we have been calling out benefit 13:46 13 minutes, 46 seconds benefit because of the currency depreciation which has the uh adding to the margin uh of 34%. 13:55 13 minutes, 55 seconds Now what is that margin benefit purely coming from the forex? 14:00 14 minutes Okay. Okay. So you've got a couple of questions. Thanks again. Um yeah starting from your uh comment on the 14:09 14 minutes, 9 seconds Middle East situation and the availability of raw material. See again as we all know the situation continues to remain volatile. As we mentioned 14:17 14 minutes, 17 seconds before our focus is on ensuring that we remain uh sort of vigilant to this focus 14:24 14 minutes, 24 seconds the efforts of the management with lot of discipline and at the same time maintain agility in how we respond. So to be honest this this in some ways 14:33 14 minutes, 33 seconds feels like the co days. Yeah. you had a uh you know call call every day morning with the leadership and you would sort 14:40 14 minutes, 40 seconds of look at what's happening in the market and how you sort of mitigate any events. So far we have not seen any disruption. We have seen inflation go 14:49 14 minutes, 49 seconds through but fortunately we've also been um able to pass on a lot of these back to the customers. there could be some 14:56 14 minutes, 56 seconds value effect but other than that we are pretty confident of passing on the uh price increases of the uh to the to the 15:04 15 minutes, 4 seconds finished product. Yeah. So so we don't see a material risk say for what may happen tomorrow. I don't know. Yeah. But 15:12 15 minutes, 12 seconds as we talk now we don't see a material risk coming from there. On your question on inflation and inventory deflation we are maintaining healthy level of stocks. 15:21 15 minutes, 21 seconds So far, we've not had a situation where we've not been able to get materials. 15:26 15 minutes, 26 seconds Yes, the pricing has gone up and that is kind of universally known, but we've not had a situation where we've had to shut 15:34 15 minutes, 34 seconds anything down for want of raw materials or anything like that and customer demand has remained robust during this period. Yeah. 15:43 15 minutes, 43 seconds Okay. 15:45 15 minutes, 45 seconds There is no demand disruption because of inflation is what we are telling or just a restocking demand anticipating an inflation. 15:53 15 minutes, 53 seconds So in fact I mean post the situation there may be further restocking uh demand that will come up because there will be some pent up that will open up 16:01 16 minutes, 1 second on situation improves but currently we're not seeing any uh destruction of demand as uh in our numbers as we speak 16:10 16 minutes, 10 seconds now as well. Right now your point on refrigerant gas notification you know 27 as the asset for bringing any new 16:18 16 minutes, 18 seconds capacities I mean that notification still doesn't uh change the position on the kota yeah and you should remember 16:26 16 minutes, 26 seconds that that kota is only going to be available as aligned with the kegali protocol which is 24 256 average 16:33 16 minutes, 33 seconds production and 65% of your uh blue variant of the CFC's of 2009 and end 16:40 16 minutes, 40 seconds right so that doesn't change and uh you know while while we can bring in capacity I think the key question is you 16:47 16 minutes, 47 seconds know is the porta available or not to anybody bringing in those capacities 16:55 16 minutes, 55 seconds in terms of sorry no just just one one one related question on breast gas uh is it 17:04 17 minutes, 4 seconds clear from the government side that the R22 which company add uh only start company 17:12 17 minutes, 12 seconds will be eligible or can we distribute the R22 kota on a pro basis do we have that clarity 17:20 17 minutes, 20 seconds so I think Sanjesh I mean again our understanding of the rules our understanding of how this is meant to 17:27 17 minutes, 27 seconds play out clearly indicates that you must have a right to win in this you know so your right to win comes from the kota that you have and that's exactly what 17:36 17 minutes, 36 seconds we've always been saying and which is why we put capacity to consume our kota fully. Very good. 17:44 17 minutes, 44 seconds Yeah. Your margin on the number specification. I mean I know you said there is a currency tailwind and there is a currency tailwind. If you analyze 17:53 17 minutes, 53 seconds the currency tailwind with the inflation figures that you know you will find that a lot of this is a wash between currency 18:00 18 minutes and inflation and what we are now seeing in terms of the growth of the IBIDA I 18:06 18 minutes, 6 seconds think it's about 990 basis points from FY to FI you will see 70% of that for marine is coming from our capacity is 18:16 18 minutes, 16 seconds coming on the ground our volumes going up and 30% is coming from affirmative actions on pricing that we've taken um 18:24 18 minutes, 24 seconds you know this sort of um uh you know I mean I was reading something but this basically implies that N sort of 18:31 18 minutes, 31 seconds operating leverage is meeting his capacity that's that's essentially what's happening out here very clear 18:40 18 minutes, 40 seconds related question yes two question one agrochemical 18:49 18 minutes, 49 seconds application is pretty weak from the innovator are we seeing that play for us in F7 18:57 18 minutes, 57 seconds and second can help us with TD and more late stage contract how many are we working one we know it's commercial with the European flight uh but we have 19:06 19 minutes, 6 seconds supplied two clients if I remember one in the Europe and one in the US uh on the commercial uh can you throw some 19:13 19 minutes, 13 seconds light on stage contract we have in our pipeline and uh uh how how should we see them uh becoming commercial for 19:22 19 minutes, 22 seconds Yeah. So on agrochemical again you know I mean if you look at the global scenario there is a slow sort of reset 19:30 19 minutes, 30 seconds happening you know you see some indication of volume recovery pricing is always going to be lagging that you know that I think all of us understand and 19:39 19 minutes, 39 seconds naven sort of you know as we said before our strategy was to work on newer molecules etc from a longer term point 19:47 19 minutes, 47 seconds of view if you look at FY26 we have done in in all I leave close to 19:53 19 minutes, 53 seconds about 13 new molecules uh during the year and that along with the demands of 20:00 20 minutes resurfacing gives us enough confidence to say that you know as we look into FY27 we have visibility 20:08 20 minutes, 8 seconds almost up to about 80% of our capacity utilization. So I think we are well covered for FY27 20:16 20 minutes, 16 seconds and as we move into 2027 we'll get further clarity on how this is reshaping into 28 and beyond. 20:23 20 minutes, 23 seconds In terms of ADM all these phase I mean we have a healthy balance of mix. I mean if I was to tell you in terms of number 20:30 20 minutes, 30 seconds of molecules I think we are working close to about 50 55 molecules half of them being in late stage commercial and 20:38 20 minutes, 38 seconds half of them being in early stages. So there's a very healthy balanced portfolio there. As we look into you 20:45 20 minutes, 45 seconds know coming into our F57 number that we've always said at 100 million you know this number that we've delivered 20:52 20 minutes, 52 seconds this year of 541 crores is again a solid sort of journey to kind of get to where 20:59 20 minutes, 59 seconds we want to get to by 527 and like I said before we've been inching closer to it with this quarter we further inched 21:07 21 minutes, 7 seconds closer to that number. So you know there is very good confidence that we will uh push for hitting the number and we'll 21:15 21 minutes, 15 seconds see where we get to at the end of the year. There is a lot of work happening on these commercial molecules as well and we've indicated broadly the 21:24 21 minutes, 24 seconds therapeutic areas uh that we talked about on the slide if you see it oncology if I remember neurology cardiovascular 21:32 21 minutes, 32 seconds you know um animal health. So you know in all of these areas we are playing in um in in sort of a good balance frankly 21:41 21 minutes, 41 seconds so so very confident on the CDM of road state you know very 21:47 21 minutes, 47 seconds thank yeah yeah yeah two questions per participants thank you so you can rejoin the queue 21:56 21 minutes, 56 seconds yeah thank you thank you sir thank you we have next Question from Nasad Chadri from Majila Bafam. Please go ahead. 22:10 22 minutes, 10 seconds Yeah. Hi. Uh thank you for the opportunity. 22:14 22 minutes, 14 seconds First on the uh option to win the project assuming assuming it goes well. uh what kind of 22:23 22 minutes, 23 seconds what size of capex it can you know trigger and by when we can you know have 22:28 22 minutes, 28 seconds some visibility that it should go in the okay 22:36 22 minutes, 36 seconds so chemos I mean again uh you know we've already said the project is on track for commissioning end of June early July and 22:44 22 minutes, 44 seconds as I stated previously you know this is a uh this is the initial capacities to accelerate adoption in the market as we 22:51 22 minutes, 51 seconds move to that over the next sort of 18 months we get a better understanding of what that market size looks like and accordingly there will be a capex uh 23:00 23 minutes that will be rolled on the back of that understanding we mature to talk what it will be today but I think you know it's 23:08 23 minutes, 8 seconds fair to assume that you know we are the only manufacturing site for kos given the nature of the product that it is essential to support the AI growth in 23:17 23 minutes, 17 seconds the uh that we are seeing around us you know and the unique benefits of the product. It should be a reasonable one. 23:24 23 minutes, 24 seconds No. 23:27 23 minutes, 27 seconds Second on the uh pricing side right side uh price. 23:31 23 minutes, 31 seconds Can you speak a bit louder if you don't mind? Yes. 23:36 23 minutes, 36 seconds Second uh on the pricing side especially on the firm and other portfolio as well. 23:42 23 minutes, 42 seconds uh uh so apart from ref which all portfolios uh uh uh you seeing uh price 23:49 23 minutes, 49 seconds uptake and what is your near-term outlook there and what is the uh when is the uh price revision expected in the firm portfolio? 23:59 23 minutes, 59 seconds Yeah, I I don't know what's driving that question, Nashad, but I mean for me on opportunity is quite publicly known because it it is published both by Orion 24:08 24 minutes, 8 seconds as well as uh Bay and would encourage you to have a look at it actually. uh but the last I remember it's about $5 24:16 24 minutes, 16 seconds billion uh sales in 28 or 29 and uh like we said uh you know we are very firm 24:23 24 minutes, 23 seconds believers of these projections that fion and and has shared with us and there is solid growth momentum to come on that as 24:31 24 minutes, 31 seconds we look into the future pricing and all I don't know where the question is coming from if you have a particular point on pricing I would 24:40 24 minutes, 40 seconds request you to elaborate on Uh see it's been two years to this contract and we have scaled it up. I was just thinking uh should we keep working 24:49 24 minutes, 49 seconds on the initial pricing which you would have you know uh um contracted or would there be any point where the price revision would trigger because your 24:58 24 minutes, 58 seconds scale and volume is going up in this particular project. 25:01 25 minutes, 1 second I will leave you to your judgment. These are commercial things we deal with but uh it's not something we can talk on any sort of forum outside the company. 25:11 25 minutes, 11 seconds Okay, thank you so much. 25:14 25 minutes, 14 seconds Yeah, thank you. 25:18 25 minutes, 18 seconds Next question is from the line of Rohit Nagras from 361 Capital. Please go ahead. 25:26 25 minutes, 26 seconds Yeah. Uh thanks for the opportunity and congrats on strong set of numbers. Uh first question uh unfortunately on the 25:32 25 minutes, 32 seconds pricing part given that uh there is a raw material price inflation and some of our contracts for HFO as well as for CDMO would be calendar year contracts. 25:45 25 minutes, 45 seconds So will there be a price rejigged or passed on immediately or will it be a transitory phase that for a couple of 25:54 25 minutes, 54 seconds months we'll be charging the previous price and then maybe a couple of months later the newer price incorporating the higher raw material cost. Thank you. 26:05 26 minutes, 5 seconds Okay. Thanks Rohit. I mean uh roy is rising and price inflation etc. You know these uh different contracts cover it in 26:13 26 minutes, 13 seconds different ways from a commercial standpoint. Obviously we have both a product play and a service play. In service play typically you have pass 26:21 26 minutes, 21 seconds through mechanism. So this will fall into that pass through mechanism. Now how and what we are doing to accelerate that recovery is something that is being 26:29 26 minutes, 29 seconds uh worked upon discussed but you know it's not a surprise to both the um both us and our customers about the price 26:37 26 minutes, 37 seconds rise. So there is a good reception to that. the uh second question on uh what 26:44 26 minutes, 44 seconds is the second thing you said transary one is something around uh uh you answer yeah so I I think I answered that right 26:52 26 minutes, 52 seconds right right okay uh the yeah the second question is slightly on R32 in terms of broader 27:01 27 minutes, 1 second structure in the domestic market so what is our understanding in terms of the current consumption of R32 to and given 27:10 27 minutes, 10 seconds that in your capacities even if we don't consider the ones who don't have Kota and we are adding there is another 27:18 27 minutes, 18 seconds player who has got Kota and they will be adding uh how this incremental volumes which is coming into play will be placed 27:26 27 minutes, 26 seconds and will it again I mean unfortunately I'm asking the same question again in terms of pricing will there be any impact given that these initial 27:35 27 minutes, 35 seconds capacities will come on so R32 again I think we've gone through this several times but you know you have 27:42 27 minutes, 42 seconds to look at the overall GWP cuts that are happening in the world and the blend play that R32 is uniquely positioned to 27:50 27 minutes, 50 seconds be in you know and that drives the pricing conversation I mean if I remember correctly China prices current currently are close to about $9. Yeah. 28:00 28 minutes So there is a significant sort of reason why they are stronger than uh and getting stronger as we speak. Okay. So, 28:08 28 minutes, 8 seconds one has to read into those dynamics. The point about I think it was Sanjesh asked and maybe I didn't address it at that point in time but you know there was a 28:17 28 minutes, 17 seconds question on the power range that we've given 600 to 875 frankly as part of our investment approach that we take to the 28:25 28 minutes, 25 seconds board. We always present the downside to so we've only translated that in full transparency to how we reported to the 28:33 28 minutes, 33 seconds market. It's a downside case that we always do more as a map rather than our belief and our belief is really driven 28:41 28 minutes, 41 seconds by the demand supply dynamics which again I've said this before also that the first R32 capacity came in when 28:50 28 minutes, 50 seconds prices was up $2 and the economics to then now. Yeah. 28:56 28 minutes, 56 seconds Yeah. Uh just one clarification on the numbers front. our uh employee benefit expenses have been up only 4% on a Y 29:05 29 minutes, 5 seconds basis and there has been a significant scale up in terms of operation. So will it be normalized uh during FY27 maybe 29:14 29 minutes, 14 seconds inflation at this plus the newer capacities coming on stream which earlier probably were capitalized in the 29:21 29 minutes, 21 seconds capex first. Thank you. So I think when we started the year or some point in last year and I think it was again a lot 29:28 29 minutes, 28 seconds of the analysts asking us the question that our employee cost was I think 12 13% of sales and we took some 29:35 29 minutes, 35 seconds alternative actions to bring it down. So what you see in the numbers is they look almost flattish but those reflect uh you 29:44 29 minutes, 44 seconds know typical implements they those reflect typical sort of new joiners coming in and those also reflect the affirmative actions taken by management 29:53 29 minutes, 53 seconds to optimize right so that's a combination of all I think we're done with the optimization where we are so 30:00 30 minutes going forward you will see the uh increase largely you will see you will see the normal disease coming. Yeah, the normal 30:08 30 minutes, 8 seconds disease. But I think you know if you have to put your model in, I would model it in the range of between 7 and 1/2, 8 and 1/2, 9%, not more than that. 30:19 30 minutes, 19 seconds You're very firm on getting it in that threshold. Perfect. Perfect. Thanks a lot. 30:27 30 minutes, 27 seconds Thank you. Participants are requested to ask two questions for participants. 30:33 30 minutes, 33 seconds We have next question from Vive Rajani from Morgan Stanley. Please go ahead sir. 30:40 30 minutes, 40 seconds Um hi sir um thank you for the presentation and congratulations on a strong finish. Uh just wanted to uh get a sense with respect to the customer 30:48 30 minutes, 48 seconds conversations that we are having. uh do you get a sense that we could move to increased restocking on a more sustainable basis with customers 30:57 30 minutes, 57 seconds potentially building up more buffers versus the just in time sentiment that we've gotten used to for the last couple of years and just uh just with respect 31:06 31 minutes, 6 seconds to agrochemicals uh given the uh dislocations that we've seen in fertilizers and obviously we don't know how the situation will 31:13 31 minutes, 13 seconds resolve itself do you see any risk of that flowing into you know potential offsets for some of the attempted Thank you. 31:22 31 minutes, 22 seconds So, so Vexi our portfolio on ATK is mainly export driven right and as you 31:29 31 minutes, 29 seconds know in the export driven you start getting solid visibility before the end of the calendar year and that visibility 31:37 31 minutes, 37 seconds uh translates into orders which then translates into deliveries. We not seeing any disruption on that front. I mean to be honest everybody will be 31:45 31 minutes, 45 seconds managing the supply chain disruption how they do it. Thank you. It's not something that they would share with us in our customer interactions. But we've 31:53 31 minutes, 53 seconds definitely not seen any demand destruction as yet in terms of uh you know if that's your question or that's where you were going with it. 32:05 32 minutes, 5 seconds Uh sure. No, it's actually going the other way where you could see more restocking potentially with what's happened. Uh not uh specifically on demand destruction. 32:15 32 minutes, 15 seconds No. So as I said see the a market you know and we've always maintained this that fundamentally that market has structurally good demand in the long 32:23 32 minutes, 23 seconds term in the near term it's going through a reset and it's going through a reset in a slow manner. So you are seeing some 32:30 32 minutes, 30 seconds volume increases and prices are kind of still sort of subdued but my understanding and my expectation is that 32:38 32 minutes, 38 seconds as we go through the year you will see price rises lesser than volume increase. 32:42 32 minutes, 42 seconds So it's going to look like flattish in terms of price rises but um you know that's where we are to be honest. Beyond that I don't think I have much to add. 32:55 32 minutes, 55 seconds Sure. No thank you very thank you. 33:01 33 minutes, 1 second The next question is from the line of Piral from Texas Capital. Please go ahead. 33:09 33 minutes, 9 seconds Yeah. Hi sir. Thanks for the opportunity and congratulations on my uh confusion and good set of numbers there. Uh first question on the CDM move. Uh just sort 33:18 33 minutes, 18 seconds of you know trying to understand the growth output better. one uh have we expanded our capabilities on the PDM 33:25 33 minutes, 25 seconds side uh versus let's say 10 months back or is it largely the same and uh in 33:32 33 minutes, 32 seconds related part how has the res between the the late stage molecules and the initial one 33:41 33 minutes, 41 seconds so so capability uh expanded certainly the case if you mean capability through 33:47 33 minutes, 47 seconds acquisition of new technology etc no not Um you know we have definitely expanded our capability because every therapeutic 33:55 33 minutes, 55 seconds area that we've stated out there is an area where we are actively working on molecules. Some in commercial stage some 34:02 34 minutes, 2 seconds in early stages I mean to be honest when you're looking for a revenue mix between early and late stage you should look at more at the number of molecules because 34:11 34 minutes, 11 seconds commercial molecules will tend to have a larger footprint in terms of the value. 34:16 34 minutes, 16 seconds So like I said therefore you know we have got about 50/50% and close to about 55 60 molecules that we are actively 34:24 34 minutes, 24 seconds working as we speak from sure okay because uh this molecule number has been largely consistent if I 34:31 34 minutes, 31 seconds look at last three years around that 5 6 5 6 5 6 5 6 5 6 5 6 5 6 5 6 5 6 5 65 number so which is what I was referring to from a from a number of 34:38 34 minutes, 38 seconds no so so the the molecules on commercial side you're right because it takes long time to sort of go through these cycle strategies you're aware of the early 34:47 34 minutes, 47 seconds stages is campaign driven largely and they keep moving but you know our our sort of endeavor is 34:54 34 minutes, 54 seconds to you know kind of hold it at a good balance and that's why you probably see the numbers like that 35:02 35 minutes, 2 seconds sure and second more of a bookkeeping question there one we will request two questions for 35:09 35 minutes, 9 seconds participants please join the Okay thanks I'm going to finish off. Yeah, let him 35:17 35 minutes, 17 seconds finish off now. Maybe next time the next one can be discuss. I think he has joined the queue. 35:23 35 minutes, 23 seconds Okay, I will Mr. We have next question from Jason S from IDI Capital. Please go ahead. 35:32 35 minutes, 32 seconds Yeah. Uh thanks for taking my question. 35:35 35 minutes, 35 seconds So I just wanted to know I mean you have grown really phenomenally well in the specialty chemical segment as well as the HTB segment as well for this year 35:43 35 minutes, 43 seconds growth in excess of 35 and 45%. Now just wanted to know from this higher base when we look into the next year 527 35:51 35 minutes, 51 seconds uh regarding you I know you gave a lot of color on the ATM side as well just wanted to know can we uh kind of clock 35:58 35 minutes, 58 seconds in high double digit revenue growth for both these segments going ahead and f27 36:05 36 minutes, 5 seconds so Jason I I think I've given apart from just not giving you the specific number but let me sort of reiterate the growth 36:14 36 minutes, 14 seconds blocks going into FY 527 you know if you look at we've said the HF plant has already been commissioned 36:21 36 minutes, 21 seconds it was commissioned in February so you should see the revenues for that kicking into F58 you should see the revenues for nectar 36:30 36 minutes, 30 seconds that we've talked about we dedicated chemical plant and we always said that our endeavor would be to be around 50% 36:39 36 minutes, 39 seconds 60% capacity utilization this year that would go to about 70 75% in coming year 36:46 36 minutes, 46 seconds uh you would see the new sort of capexes coming on stream you know the debottlenecking and we've again given you the power for that and the timeline 36:55 36 minutes, 55 seconds for that we've given you R32 and the timeline for that and again you can model your numbers from what you have as 37:03 37 minutes, 3 seconds an available uh data from the market uh you know you start putting all this together and obviously we've talked about the chemos project as well you 37:12 37 minutes, 12 seconds know CBMP4 was commissioned um last quarter again and you would see that on December if I'm not mistaken and you 37:20 37 minutes, 20 seconds will see the revenue sort of kicking in this year too again uh from that point of view uh for me on growth is very solid so again you can factor in those 37:29 37 minutes, 29 seconds numbers too so you will have enough to see the trajectory of the growth and I would be surprised if it's not double 37:37 37 minutes, 37 seconds digit but I'm happy to clarify if it is not separately sure thanks for that sir and just one 37:44 37 minutes, 44 seconds question I wanted to understand uh with the Middle East crisis going on uh any impact you saw in terms of press gas 37:51 37 minutes, 51 seconds volumes on from that region for that region. 37:54 37 minutes, 54 seconds So so Middle East uh frankly we our export footprint is very little uh you know mainly 72 gases and those having 38:03 38 minutes, 3 seconds gone in March and they are still in the schedule but not yet born in yet. uh to be honest we are working on numbers for 38:12 38 minutes, 12 seconds fuel excluding the Middle East movement at all. So if any of that comes in will be an upside but you know the demand 38:19 38 minutes, 19 seconds across the globe is pretty robust and uh also no logistics issues in that front. 38:27 38 minutes, 27 seconds Sure. Thanks a lot for answering my question. 38:31 38 minutes, 31 seconds Thank you. The next question is from the line of Sakrit Patri fromite printed private limited. Please go ahead. 38:39 38 minutes, 39 seconds Good evening to the team. I have two questions. Uh my first question to Mr. uh Parka is uh a forwardl looking one. 38:47 38 minutes, 47 seconds How are you positioning the sodium to capture the evolving demand in especially in fluochemical and the CDMO 38:55 38 minutes, 55 seconds space while mitigating risk from global regulatory uh changes and uh raw 39:01 39 minutes, 1 second material volatility and what and what uh strategic levers will differentiate the company from its peers in the coming 39:09 39 minutes, 9 seconds quarters. So first question I have a question after this. Thank you. 39:14 39 minutes, 14 seconds Sorry, what did you what did you direct your question to? Uh Mr. Roy, you don't have any Roy. You'll have to wait forever. No, let me answer that. 39:23 39 minutes, 23 seconds Anyway, 39:25 39 minutes, 25 seconds [laughter] 39:27 39 minutes, 27 seconds let me answer that. So, it's Anish here. 39:29 39 minutes, 29 seconds So, it's unusual. Uh so, so on the ACT CAM front, see again we have a service play, right? And in the service play, we 39:36 39 minutes, 36 seconds work with global innovators. So, frankly, their regulatory risks of the intermediates we supply to them are 39:43 39 minutes, 43 seconds managed by them. We are working on some new new innovation innovator molecules which are part of the strategic pipeline 39:51 39 minutes, 51 seconds of these global innovators. So I would suspect there is not any sort of issue over there. 40:01 40 minutes, 1 second Sorry you I was just so here he is right now off the queue. Okay. 40:10 40 minutes, 10 seconds Okay. We have next question from Arun Prasad from Aventus Park. Please go ahead. 40:17 40 minutes, 17 seconds Uh good evening Anish and G. Uh couple of questions. Uh first is u uh you talk 40:24 40 minutes, 24 seconds about demand. Uh you are not seeing any kind of a description but I'm sure you would agree that there are two parts to 40:31 40 minutes, 31 seconds this. One is uh the you know one set of customers would be restocking and second set of customers maybe they may be 40:39 40 minutes, 39 seconds little bit going slow and maybe doing on the wait and watch. So so you your read 40:45 40 minutes, 45 seconds on the demand situation is it more uh uh because that some of these customers are 40:52 40 minutes, 52 seconds restocking and probably the the issues with respect to the demand on the higher higher prices. Will it come with a lack? 41:00 41 minutes uh is that the right way to look at our business at this point of time? 41:05 41 minutes, 5 seconds So K the way I would look at it I mean if I look at 28 and order visibility we've talked about coming to 80% 41:12 41 minutes, 12 seconds utilization that's so sorry I yeah u so what I was saying was if you look at the 41:21 41 minutes, 21 seconds uh you know visibility we've talked about on 28 in the addressity I mean frankly the capacity utilization at 18% 41:29 41 minutes, 29 seconds is probably as best as one would go in an MTP environment you know and then doing 13 new molecules last year and 41:36 41 minutes, 36 seconds sort of working that through in the coming year. We don't see what we are saying some restocking some notes 41:43 41 minutes, 43 seconds stopping all I mean frankly the way it manifests for us is in the order visibility and in the order books and 41:50 41 minutes, 50 seconds that continues to be solid uh of course I'm sure for your pharma category would be relatively insulated 41:59 41 minutes, 59 seconds I'm talking of agro I'm talking of agro I'm talking of pharma again I frankly you you guys will know far more than I 42:06 42 minutes, 6 seconds do because for me numbers are out there and you you know so you will see the growth they are seeing annually year on year as well as the productions as well 42:15 42 minutes, 15 seconds as the further legal extensions that we're working on. So uh an outside pharma and a grow which 42:23 42 minutes, 23 seconds categories you would say that you know at a risk because higher prices eventually lead to the demand destruction at at a later stage not not 42:31 42 minutes, 31 seconds long-term but at least one or two quarters there will be a demand destruction. So can you call out some categories? I know this from your 42:39 42 minutes, 39 seconds probably I think again this is a economics question of theory but you know there 42:46 42 minutes, 46 seconds are several articles one can read that but you know at at 150 sustained dollar oil prices I think there is a there is a 42:54 42 minutes, 54 seconds concern that the global demand is low but today we are not seeing that we can't factor that. What we are doing today is making sure that we are 43:02 43 minutes, 2 seconds resilient. We are working hard at what we can do. We maintain our discipline and frankly in this environment we maintain significant ability as well to respond to situations as they arise. 43:14 43 minutes, 14 seconds Right? That's what we can do and and that actually will prepare us in the best possible way to whatever is thrown at us. That's our focus. 43:24 43 minutes, 24 seconds Uh no no I understand an what I'm asking is uh what categories you should be looking out for outside the category 43:32 43 minutes, 32 seconds outside the pharma and that growth because as an outsider we do not have much insight you know what's happening on a it's very simple at $150 if there is 43:41 43 minutes, 41 seconds demand destruction you will see interest rates inflation everything go haywire that will be a global scenario of 43:49 43 minutes, 49 seconds slowdown and I'm sure you're reading the world uh you know reports from the world economics etc etc but you know that's not 43:56 43 minutes, 56 seconds something I am planning on that's not something in my gift to control so as management we are doing what is within our gift of influence what is within our 44:04 44 minutes, 4 seconds gift of control and on the forex benefits you spoke earlier uh there are two costs 44:13 44 minutes, 13 seconds associated for you one is a dollar b dollar denominated cost and another is a rupee based cost so uh is it fair to 44:20 44 minutes, 20 seconds assume when the when the contracts goes for the renewal um customers would not be would be uh would be negotiating only 44:27 44 minutes, 27 seconds to the extent your rupee cost will not be uh you know repric uh to the same extent. 44:34 44 minutes, 34 seconds Commercial negotiations are never linear. 44:38 44 minutes, 38 seconds So you know you can't have one attribute and you relate that to another attribute. I mean these are holistic contracts where you would look at 44:45 44 minutes, 45 seconds everything. How a contract is structured, how you would sort of uh attend the risks of inflation. again you 44:52 44 minutes, 52 seconds know if you want to do a rupee based contract well then you will have to take inflation in your story right so there 44:59 44 minutes, 59 seconds are several custom nuances to it and it's not a subject I think we can cover here also 45:07 45 minutes, 7 seconds and and so one final look question HP segment uh sequentially there is a 45:14 45 minutes, 14 seconds revenue decline one would expect that with plant scaling up and a better uh gas line at least Can you repeat? Can 45:23 45 minutes, 23 seconds you repeat? Where do you think the decline? I just heard the word decline. 45:28 45 minutes, 28 seconds Hey, CP segment Q declin sequential not. 45:35 45 minutes, 35 seconds Oh yeah. Yeah. That is okay. Okay. That you're talking of Q Q3 to Q4, right? 45:41 45 minutes, 41 seconds We had so you know these are these are things in terms of uh you know every every of these plans have planned shutdowns, right? And we had taken a 45:50 45 minutes, 50 seconds plant shutdown in our Q4 and we also took an opportunistic exercise to recharge the catalyst in one of our 45:58 45 minutes, 58 seconds plans which is ahead of the heat season to maximize the value in in uh quarter one of this year. So that's just normal routine uh activity. 46:08 46 minutes, 8 seconds Yeah. 46:09 46 minutes, 9 seconds Middle East obviously as you know and I've said this before that we had no shipments in the Middle East which was close to about 15 odd 15 to 16. 46:19 46 minutes, 19 seconds Uh any quantification possible I will request you to restrict two questions per participant sir please rejoin the queue. Thank you. 46:32 46 minutes, 32 seconds We have next question from Panda RFA Provincial Life Insurance Limited. Please go ahead. 46:44 46 minutes, 44 seconds Mr. K. Yes. Sorry. Uh am I audible? Yes. Yes, you are. 46:51 46 minutes, 51 seconds Okay. Uh got two questions on the uh HPP side. Uh 46:58 46 minutes, 58 seconds so first the honeyal contract I mean we have always talked about annual some 47:04 47 minutes, 4 seconds quantum. So have we any scope for uh growth or expansion from current levels both in Honeywell and in our current R32 47:14 47 minutes, 14 seconds plant. So just wanted to understand before uh the new R32 plant uh what 47:20 47 minutes, 20 seconds growth levers do we have uh in the HTP that is first question. 47:26 47 minutes, 26 seconds Okay. So before uh on the growth levers in HTC, I'm sure you should certainly count the growth coming in from HF plan. 47:36 47 minutes, 36 seconds Um in terms of your question on annual contract, I mean you know that uh HFO 47:43 47 minutes, 43 seconds has applications in the construction area but also ancillary applications in the resident pooling space too. And 47:52 47 minutes, 52 seconds whatever we are doing on demand today it is at 80% capacity as I told you before. 47:58 47 minutes, 58 seconds So there is room to expand within that same capacity by another 20%. I mean that's nothing new that I'm saying today. Uh but it's been something we've 48:07 48 minutes, 7 seconds always been telling you guys. Uh what was the other question was something on 32. 48:13 48 minutes, 13 seconds So basically the question was growth levers ahead of new plants. You mentioned uh Honeywell additional 20% and ASF right 48:22 48 minutes, 22 seconds no no nohead no I didn't say ahead of 32 plant I said there is opportunity to grow that at 48:30 48 minutes, 30 seconds some point whenever that demand comes through today we are at 80% uh size before that you should certainly count 48:37 48 minutes, 37 seconds in the HS capacity and the growth and 32 will come in on time as we've said that before 48:45 48 minutes, 45 seconds okay And second question on uh the uh the segment two I mean specialy chemicals uh 48:54 48 minutes, 54 seconds there uh for this project nectar u I think there are some change in the uh 49:00 49 minutes product from the client. So now under the new scope uh what is what is the 49:07 49 minutes, 7 seconds visibility we have for uh say merchant sales which I mean outside the contracted volumes. 49:15 49 minutes, 15 seconds So the contracted volumes are fully covered. The additional molecule actually gives better risk management to 49:22 49 minutes, 22 seconds that plan. Uh we have also made shipments outside of the uh contracted revenues for qualification. Those qualifications are under progress. 49:32 49 minutes, 32 seconds Besides there are also possible downstream applications of that product that we are working on. So we're not duly concerned about uh utilization. 49:42 49 minutes, 42 seconds Yes, it has been we would have liked to have a full utilization by end of FI28 which would be the two years but I think 49:49 49 minutes, 49 seconds we are realistically talking about 75 to 80% is where we will get to by end of 49:56 49 minutes, 56 seconds okay and just lastly uh Mr. Q I'm very sorry sir please restrict your question to questions for 50:04 50 minutes, 4 seconds participants noted okay thank you please rejoin the queue we have next question from Mr. 50:10 50 minutes, 10 seconds Vijit Ailia from Cortex Securities please proceed. 50:16 50 minutes, 16 seconds Yeah, good evening. Thank you so much for taking my questions. Uh so first question on the margins. Uh so the gross margins this quarter are stable on a 50:24 50 minutes, 24 seconds sequential basis 58% odd. Um even though the CDMO business has ramped up substantially on a sequential basis. Um 50:32 50 minutes, 32 seconds so just sort of trying to understand you know what the dynamics are there. You know if we did expected normally the margins have expanded a little bit more. 50:41 50 minutes, 41 seconds No, so margin uh expansion you know in a diversified business is linked not just between business mixes but also the 50:49 50 minutes, 49 seconds portfolios that you place within the each vertical. So specialtity has different molecules. This has different you know molecules. So there's both an 50:58 50 minutes, 58 seconds intra business play and an inter business play. Yeah. So you should factor in both. It's sort of a 51:05 51 minutes, 5 seconds combination of both that results in that number. So it wouldn't be fair to just take one equation and jump to that conclusion. It could depend on what 51:13 51 minutes, 13 seconds product we've done this quarter versus what we did last quarter. And like I said before, there were 13 molecules we 51:21 51 minutes, 21 seconds did in uh FY 26 in the specialtity business. Three of them were done in quarter 4. 51:31 51 minutes, 31 seconds Okay. Thank you. And the other one was just um with regard to the uh margin guidance for FI27 in the context of this 51:39 51 minutes, 39 seconds inflationary environment. So is 30% still you know a good benchmark to work with. Uh so that that was one and just 51:47 51 minutes, 47 seconds the other quick thing from my side u the HPP vertical seems to have shifted marketkedly towards India in the past 51:55 51 minutes, 55 seconds two quarters in terms of sales. Uh so what might be driving that? Thank you so much. 52:00 52 minutes So u so to answer your first question on the margin guidance I mean we've always maintained that we will endeavor to the 52:07 52 minutes, 7 seconds 30%. Given what we know today of the business circumstances plus minus 1 to 2%. Yeah which we've always said. Yeah. 52:15 52 minutes, 15 seconds So that we will hold for the whole year. 52:16 52 minutes, 16 seconds This is not a quarter number and we've always maintained that uh you should look at the margin from a year perspective. Yeah. Your question on HP 52:26 52 minutes, 26 seconds sales uh shifted to India. Actually SP has had a bigger shift and that one needs to understand that it was a 52:33 52 minutes, 33 seconds business that we were doing in the range of about 250 300 now that per quarter now that is moved to clearly in the 400 52:40 52 minutes, 40 seconds mark and in the coming years in the new R32 capacities HS capacity that will further go up in terms of contribution 52:49 52 minutes, 49 seconds as you increase your profile in this fashion your customer base is going to change. So you should look at the 52:56 52 minutes, 56 seconds increase in India. Obviously we've done our 32 contracts in India. Obviously we've done global reach. If you look at 53:04 53 minutes, 4 seconds the export data you will see that we reach new geographies, new customers. 53:09 53 minutes, 9 seconds You know a lot of it will change as you grow the business in the pace at which we are growing. 53:18 53 minutes, 18 seconds Thank you. Thank you so much. 53:21 53 minutes, 21 seconds And the next question is from Ajit Josie from Noama Institutional Equities. Please proceed. 53:29 53 minutes, 29 seconds Hi sir, thank you for the opportunity. 53:31 53 minutes, 31 seconds Uh so two questions from me. Uh first one uh wanted to get a bit more understanding on the nectar project. uh 53:38 53 minutes, 38 seconds believe that uh 50% was uh towards uh one of our MI customers and the balance 50 was something that we still trying to 53:46 53 minutes, 46 seconds figure out uh in terms of how to uh dispise those volumes. uh I believe that uh uh the first 50% should definitely be 53:55 53 minutes, 55 seconds uh in line with our expectations. Uh but given what whatever we are seeing in the global agree industry uh would you have 54:03 54 minutes, 3 seconds uh any understanding on how we should be placing the balance 50% of that plant. 54:08 54 minutes, 8 seconds Uh that would be number one and second one would be we have uh recorded about 211 crores of contract liabilities on 54:15 54 minutes, 15 seconds the balance sheet including current and non-current ones uh which have increased from about 139 crores if I I calculate 54:23 54 minutes, 23 seconds correctly. Uh what could be the attribution to that? These would be my two questions. Thank you. 54:28 54 minutes, 28 seconds Okay. Sure. So on on nectar you know that apart from the market customers there are two to three other customers right. So we are going through 54:37 54 minutes, 37 seconds qualification campaigns. We are not figuring out. We are actually working on a plan and that plan is to get the qualification done and then the sales. 54:46 54 minutes, 46 seconds We think it is lower than what we would have liked it to be. So therefore we are talking of the 75% power this year and then the balance 54:54 54 minutes, 54 seconds next year. We've also talked about the fact that and I just said that before in the previous uh respondent that we would 55:01 55 minutes, 1 second be uh looking at u you know sort of downstream applications of the product. 55:07 55 minutes, 7 seconds Uh given whatever if your question is more around the pricing of that product etc to the Chinese market etc. We are 55:14 55 minutes, 14 seconds confident that even at that price we would make reasonable margins that would not be deteriorated to our overall margin profile. Yeah. Contract 55:23 55 minutes, 23 seconds liabilities. Now as you know contract liabilities actually reflects the monies that uh we receive from our customers towards the 55:32 55 minutes, 32 seconds capital contribution both on chemos project and the uh market project for the additional molecules. So therefore you see the increase that you see primarily. 55:44 55 minutes, 44 seconds Hello sir that's great. Thanks a lot. 55:47 55 minutes, 47 seconds Thank you. The next question is from the line of DHRA from value quest. Please proceed. 55:55 55 minutes, 55 seconds Thank you for taking my question. Uh so I would like to understand more on the Serion uh contract since now the CGMP4 56:04 56 minutes, 4 seconds is commissioned from this uh quarter onwards from Q4 onwards. Uh will the manufacturing that was already done in 56:11 56 minutes, 11 seconds your DEAS facility now move to I mean the other block of CDMP4 or do you have visibility for more volumes to offtake 56:20 56 minutes, 20 seconds in the next year? So both will be utilized. 56:24 56 minutes, 24 seconds So the panhon block was a dedicated block. So obviously what we are currently doing elsewhere will go into dedicated block because that's why we 56:33 56 minutes, 33 seconds created the dedicated block. But that answers your first question. The second question, do we have visibility to more volumes? Yes, of course we do have 56:41 56 minutes, 41 seconds visibility to more volumes and that will trigger off the decision in terms of where do we place them etc. as and when those volumes come into play. 56:52 56 minutes, 52 seconds Okay. So there could be a possibility of a cgmp5 as well if you have more visibility uh for the complex. 57:01 57 minutes, 1 second Yeah, there will be a phase two and uh you know and obviously we are working with other molecules too. So you know 57:10 57 minutes, 10 seconds we've got space for five, six and seven I believe. Okay. 57:17 57 minutes, 17 seconds Yeah. So they're scalable if we need to do it and there is a business we will do it. 57:23 57 minutes, 23 seconds So and uh can you mention the quantum of CDMO contribution that is coming from Fion for the full year of FI26. 57:33 57 minutes, 33 seconds Can I mention the quantum of contribution? 57:40 57 minutes, 40 seconds Sorry contribution. No, no, we so so d we don't commercially talk about uh these values. is is kind of quiet and 57:49 57 minutes, 49 seconds low like I said I mean you all have the benchmarks you know you know is whatever 57:56 57 minutes, 56 seconds 23% of the sale value etc in terms of the intermediate that all you know right and eventually 58:03 58 minutes, 3 seconds within the partner that also you know so you have enough what you need to know that 58:09 58 minutes, 9 seconds sir thank you thank you ladies and gentlemen due to time constraints This will be last 58:18 58 minutes, 18 seconds question. We now hand over the line to Mr. Anish Kinata for closing comments. Over to you sir. 58:26 58 minutes, 26 seconds All right. Thanks a lot everybody for taking the time to uh interact with us today. Uh very useful session from our 58:33 58 minutes, 33 seconds perspective certainly and hope you have the same uh outcome as well. U thank you again and have a good evening. 58:44 58 minutes, 44 seconds Thank you. On behalf of Navin Florine International Limited, that concludes this conference. Thank you for joining us and you may now disconnect your lines. Thank you.