NOCIL Limited — Q4 FY26

Nocil Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=08kEqIeGAYM Published: 5 days ago

0:00 Ladies and gentlemen, good day and welcome to the NOS limited Q4 FI26 conference call. This conference call 0:08 8 seconds may contain forward-looking statements about the company which are based on the beliefs, opinions and expectations of the company as on the date of this call. 0:17 17 seconds These statements do not guarantee the future performance of the company and it may involve risk and uncertainties that are difficult to predict. As a reminder, 0:27 27 seconds 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. Should 0:34 34 seconds you need assistance during the conference call, please signal an operator by pressing star ben zero on your touchtone phone. Please note that 0:44 44 seconds this conference is being recorded. I now hand the conference over to Mr. VS Lan, managing director from Limited. Thank you and over to you sir. 0:54 54 seconds Thank you Ikra and good morning to everyone. 0:58 58 seconds I'd like to start by expressing my appreciation for your presence today. 1:02 1 minute, 2 seconds Joining me are Mr. P. Shini Vasan, our chief financial officer and our investor relations advisors from SGA. I hope you 1:10 1 minute, 10 seconds have all received our investor presentation. If not, it's available on both the stock exchanges and our company's website. 1:17 1 minute, 17 seconds Let me begin by providing an overview of the company's performance for quarter 4 financial year 26. 1:23 1 minute, 23 seconds During the quarter, revenue from operations stood at rupees 30 330 crores, reflecting a sequential growth of 5%. 1:32 1 minute, 32 seconds Volumes continued their upward trajectory, registering a 7% sequential increase. 1:38 1 minute, 38 seconds Domestic volumes witnessed a single-digit growth, primarily driven by improved demand following the implementation of GSC 2.0. 1:46 1 minute, 46 seconds Volumes in international markets also posted a steady single-digit growth underpinned by our ability to convert our long-standing engagements into 1:53 1 minute, 53 seconds concrete business gains while further deepening and strengthening customer partnerships. 2:00 2 minutes Moving on to the full year performance finance financial year 26 can broadly be divided into two distincts 2:08 2 minutes, 8 seconds on a year-on-year basis. The first half saw a volume deg growth of 5%. However, the second half witnessed a strong 12% 2:16 2 minutes, 16 seconds volume growth support supported by a GST 2.0led demand uptake. 2:21 2 minutes, 21 seconds This helped the company deliver an overall volume growth of 3% for the full year. We expect this positive momentum to sustain in the coming quarters. 2:31 2 minutes, 31 seconds On the pricing front, realizations continue to be under pressure in the quarter due to the ongoing dumping of lowerpriced imports. In the revolving 2:40 2 minutes, 40 seconds global environment, we remain focused maintaining an optimal balance between price and volume. 2:46 2 minutes, 46 seconds With respect to the anti-dumping petitions filed with the government of India, the diretory general of trade remedies DGTR recommended positive final 2:54 2 minutes, 54 seconds findings in respect of the antioxidant TDQ and sulfonomides covering CBS and NS in March 2026. 3:03 3 minutes, 3 seconds The same is subject to central government approvals. 3:06 3 minutes, 6 seconds I would like to provide an update on the capex front. The TDQ capex at the h which was announced on 26th March 2024 3:14 3 minutes, 14 seconds has been completed and we have commenced trial production. After trial run, samples will be sent to customers for approval. As mentioned earlier, the 3:22 3 minutes, 22 seconds total capex incurred will be less than rupees 250 crores. 3:27 3 minutes, 27 seconds Additionally, in line with our overall growth plans, capacity utilization and market demand, we announced another 3:33 3 minutes, 33 seconds capex of rupees 130 crores on 16th March 2026, which is expected to be completed 3:39 3 minutes, 39 seconds by H1 financial year 28. This capex is for setting up a comprehensive integrated facility in the spe 3:47 3 minutes, 47 seconds speciality portion of our rubber chemicals business. 3:51 3 minutes, 51 seconds During the year, I would like to acknowledge the effort the efforts of our teams in driving initiatives across our eight strategic levers which were 3:58 3 minutes, 58 seconds which are aimed at strengthening resilience and building sustainable long-term growth for the company. As an example, under our excellence lever, we 4:08 4 minutes, 8 seconds continue to implement a series of operational and efficiency improvement initiatives across the organization which have started yielding positive 4:15 4 minutes, 15 seconds results. We believe the there remains further scope to build on these improvements and this will continue to be an important area of focus in the coming year. 4:26 4 minutes, 26 seconds As we speak today, the geopolitical developments in the Middle East continue to create uncertainty across global energy feed stock and logistics markets. 4:36 4 minutes, 36 seconds For the chemical industry globally, the impact is being felt primarily through volatility in crude link raw materials, freight costs, shipping availability and transit timelines. 4:47 4 minutes, 47 seconds While the situation remains dynamic, we have been proactively monitoring developments and working closely with our suppliers, logistics partners and 4:55 4 minutes, 55 seconds customers to ensure continuity and reliability of supply. Our teams have responded with agility through 5:03 5 minutes, 3 seconds calibrated inventory planning, diversified sourcing wherever feasible and tighter coordination across the supply chain. In response to the 5:11 5 minutes, 11 seconds significant increase in raw material prices during the quarter, we revised our price upwards for the non-contractual part of our business and from the present quarter for the contractual business. 5:22 5 minutes, 22 seconds At this stage, we see this more as a volatility and cost management challenge rather than a structural demand issue. 5:30 5 minutes, 30 seconds The global tire and rubber value chain continues to remain operational and resilient. Although near-term fluctuations in input costs, logistics 5:38 5 minutes, 38 seconds may continue depending on how the geopolitical situation evolves. 5:43 5 minutes, 43 seconds Over the last few years, including through the pandemic and subsequent global supply disruptions, we have built stronger operational resilience and 5:51 5 minutes, 51 seconds customer engagement capabilities. We believe these capabilities position us relatively well to navigate the current environment in a balanced and 5:59 5 minutes, 59 seconds disciplined manner. Our teams are closely monitoring developments and working proactively with suppliers, logistics partners and customers to 6:08 6 minutes, 8 seconds ensure dependable servicing and continuity. 6:12 6 minutes, 12 seconds At NOS, our approach remains balanced and disciplined, focusing on safe operations, customer reliability, 6:20 6 minutes, 20 seconds prudent cost management, agility and execution and calibrated price actions to ensure continuity of supply and operational stability. 6:29 6 minutes, 29 seconds We do this while continuing to advance our long-term growth and value creation plans. That's it from my side. I now invite Mr. 6:37 6 minutes, 37 seconds Pinasan to provide an overview of our financial performance. 6:42 6 minutes, 42 seconds Uh thank you Mr. Anand and good morning to everyone. So let us run through the consolidated financial highlights 6:50 6 minutes, 50 seconds on the index parameters. volumes for Q4 FI26 to 150 considering a base of 100 which was Q1 FI20 6:58 6 minutes, 58 seconds the 150 I think this is the second time in history we have achieved this is after 4 years after 10 or 12 quarters so 7:05 7 minutes, 5 seconds we are happy to be in that level and we hope to build on this net revenue from operations for Q426 stood at 330 crores 7:13 7 minutes, 13 seconds as against 316 crores in Q3 FY26 as far as the of revenue from operation for the whole year under review for FI26 7:23 7 minutes, 23 seconds it was at 1,33 crores as against 1,393 crores in FI25 for the quarter we recorded a 7% volume 7:31 7 minutes, 31 seconds growth as compared to Q3 FI26 and for the full year the growth was 3% as compared to FI25 7:39 7 minutes, 39 seconds coming to the operating EITA parameters operating EITA for Q4 FI26 stood at 21 cr as against 27 crores in Q3 FI26 with 7:49 7 minutes, 49 seconds EITA margins shrinking marginally to 6.4% in Q4 F526 7:55 7 minutes, 55 seconds partially due to rising cost in shutdown activities and also some inventory effect uh which has been seen in the 8:04 8 minutes, 4 seconds stock change effect so which we can discuss separately operating EIA for the year under review student 101 crores has against 137 crores in FI25 with AITA margin at 7.7%. 8:17 8 minutes, 17 seconds Coming to PBT. PBT for Q4 FI26 21 crores as against 13 crores for Q3 FI26. 8:25 8 minutes, 25 seconds PPD for the year student 76 crores as against 114 crores for FI25. 8:33 8 minutes, 33 seconds Coming to P profit of tax PAT uh for Q4 FI26 stood at 17 crores as compared to 9 8:39 8 minutes, 39 seconds crores in Q3 FI26 and PAT for year under review stood at 56 crores as compared to 103 crores in FI25. One of the reasons 8:48 8 minutes, 48 seconds for lower tax in previous year was because of the long-term capital gains structure change in the last year's budget. So which impacted previous 8:55 8 minutes, 55 seconds year's tax credits whereas in this year everything is in the normal tax rate. 9:00 9 minutes With this we would like to open the floor for question answers. 9:05 9 minutes, 5 seconds Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press 9:12 9 minutes, 12 seconds star and one on their touchtone telephone. If you wish to remove yourself from the question queue, you 9:19 9 minutes, 19 seconds may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will 9:27 9 minutes, 27 seconds wait for a moment while the question Q assembles. 9:39 9 minutes, 39 seconds The first question is from the line of Nav Jimmodia from annual wealth. Please go ahead. 9:45 9 minutes, 45 seconds Yes sir. Good morning. Uh I have a few questions. uh sir first is on uh the current situation like you touched upon 9:54 9 minutes, 54 seconds uh the raw material cost increases and uh also on the contractual and non-contractual part. So if you can help 10:00 10 minutes us understand like uh what's the current situation in terms of uh imports of Ramir chemicals coming to India and uh 10:10 10 minutes, 10 seconds based on your interactions with the customers uh are the customers currently negotiating on the prices or they are 10:18 10 minutes, 18 seconds more concerned about the volumes which they want to secure for their production. So that is A and B. Uh you 10:26 10 minutes, 26 seconds you said that uh we have increased the prices uh immediately for the non-contractual customers. So uh like 10:35 10 minutes, 35 seconds typically how our volumes are uh uh based uh in terms of the percentages between the contractual and the non-contractual part. 10:48 10 minutes, 48 seconds Yeah, thank you. Thank you Nav. Uh um so yeah so coming to uh imports uh the 10:54 10 minutes, 54 seconds first part of your your question uh uh yes uh we also see that there have been price revisions in the imports so that's 11:02 11 minutes, 2 seconds that's uh one one sign that that we are seeing due to cost increases uh that have gone up across the the value chain 11:10 11 minutes, 10 seconds u so uh coming to our own uh price increases like I mentioned uh uh the discussions with customers are positive 11:17 11 minutes, 17 seconds but it's it's always a combination of uh supply reliability and uh price. So given the current situation uh the focus 11:25 11 minutes, 25 seconds is also ensuring supply reliability because across the value chain uh there are uh continual uh disruptions 11:33 11 minutes, 33 seconds uh and uh so uh so that's that's the the response on that. um the uh the the last part which was on what's the kind of uh 11:42 11 minutes, 42 seconds ratio uh I would put it uh somewhere around 65 to 70% is contractual and the rest is usually not n not contractual. 11:51 11 minutes, 51 seconds Yeah. 11:52 11 minutes, 52 seconds Correct. So so you touched upon the price revisions on the imports but uh what is on the volume side? So has those 12:00 12 minutes uh uh volumes seen a dip which could give us an opportunity to uh increase our volumes? how how has been that 12:08 12 minutes, 8 seconds situation in last one one and a half months? 12:11 12 minutes, 11 seconds Uh it's still uh early days on on that uh uh but uh I would say we we we are continuing to to see our uh volume 12:20 12 minutes, 20 seconds positive development uh especially since uh also importantly to be able to manage the supply chain to ensure that uh we 12:28 12 minutes, 28 seconds can produce and deliver to our customers. So we still seeing it positively. 12:32 12 minutes, 32 seconds Correct. And Mr. Shinasan said in his opening remarks that u we are seeing so like u last Q1 of FI23 we have seen this 12:41 12 minutes, 41 seconds sort of volumes which now have been achieved. So given the kind of uh volume run rate we have achieved in Q4 uh and 12:50 12 minutes, 50 seconds taking let's say FY26 as a uh year we are already at 10% volume growth based 12:56 12 minutes, 56 seconds on Q4 run rate. uh so if you can help us understand or let's say is there a sense of confidence within NOS that uh 4Q 13:05 13 minutes, 5 seconds volumes can now become a base volumes given the spare capacity what we have and the expansions which we have 13:13 13 minutes, 13 seconds undertaken. Uh how are you seeing these volumes getting built up on Q400 volumes? Yeah, I think if if you may 13:22 13 minutes, 22 seconds recall uh uh at the last uh call uh we had mentioned that uh uh we expect uh to 13:30 13 minutes, 30 seconds be able to complete the year on a positive note in spite of the first half not going entirely along the lines we'd 13:36 13 minutes, 36 seconds expected. uh and I that did happen and that means that has been a momentum in the second half uh uh especially uh in 13:46 13 minutes, 46 seconds on the volumes front and we expect this to to continue uh going forward. So we are quite positive that uh we will be 13:53 13 minutes, 53 seconds able to build on this uh into the next quarters here. 13:56 13 minutes, 56 seconds Correct. So can one assume uh 4Q volumes can now become a base given the kind of 14:03 14 minutes, 3 seconds confidence we have in terms of customer approvals and uh the expansions what we have done. 14:10 14 minutes, 10 seconds Yes. Yes. We can perfect. So second question is on u the realization part like uh if I see last 14:18 14 minutes, 18 seconds 17 18 quarters this was probably the lowest one. So uh a uh when we had 14:26 14 minutes, 26 seconds touched that uh peak volumes in Q1 FI and 23 that was an abnormal period of COVID times uh and today also seems to 14:35 14 minutes, 35 seconds be an abnormal time in terms of the lowest prices what we have seen. So where are we seeing our average 14:42 14 minutes, 42 seconds realizations moving in between those periods like the best of the periods what we have seen during covid and worst 14:49 14 minutes, 49 seconds of the times because now we have seen the pricing momentum also gaining traction and generally our observation 14:56 14 minutes, 56 seconds is that during an inflationary trend we tend to gain more in terms of the gross margins part. So if you can share your 15:03 15 minutes, 3 seconds thoughts here where are we in terms of the current realizations and what one could expect from NOS in terms of the expansion on the gross margin side. 15:14 15 minutes, 14 seconds Yeah. uh NRA basically uh so one of the things which has happened this uh in 15:22 15 minutes, 22 seconds this quarter April was that the input prices went up uh and uh market also corrected the uh finished goods prices 15:30 15 minutes, 30 seconds in relation to input price rises. So that was one good point. Uh a second question on u your question is on that 15:39 15 minutes, 39 seconds whether uh in an inflationary or an high price high cost regime we we tend to expand. I think uh it's a very you know 15:47 15 minutes, 47 seconds maybe you may have judged something based on past track record so it it it moves but I think u typically uh in a 15:57 15 minutes, 57 seconds situation where India is not self-sufficient any industry which is depending on imports for uh to meet its requirement 16:06 16 minutes, 6 seconds or the input requirement generally tend to get that advantage for a short period it's not a big period but a shorter 16:13 16 minutes, 13 seconds period because you need to cover little uh earlier because your lead type is much higher as compared to domestic procurement in to that to that extent 16:21 16 minutes, 21 seconds you may get some marginal benefits just to add uh I think Shini mentioned it in the initial part and I just kind 16:29 16 minutes, 29 seconds of build on that so there were in this particular quarter there were some u impacts that actually is reflecting a 16:36 16 minutes, 36 seconds lower IBIDA that is on account of inventory change so basically uh lead one of the things which is very important is uh in the inventory change 16:45 16 minutes, 45 seconds the inventory as per the accounting standard is valued at raw materials plus overheads. So you have a situation in a 16:52 16 minutes, 52 seconds quarter where there's a stock change is debit which means you that debit concludes some partial of raw materials and some portion of 17:01 17 minutes, 1 second overhead of the previous legacy quarters that may come in. So typically if you maintain the inventory if you maintain 17:08 17 minutes, 8 seconds the inventory that particular debit of extra 8 maybe in this 34 crores 78 crores is there maybe that would not be there. So had we maintained the similar 17:17 17 minutes, 17 seconds inventory because in March we had to face some production cuts etc because of this energy prices etc. Had we not have that thing probably we would have improved our also. 17:28 17 minutes, 28 seconds Perfect. Perfect. And so last question from myself before I join back. uh how are we placed in terms of some of the 17:35 17 minutes, 35 seconds critical raw materials specifically on the mines and MIBK because some of the amines are available locally which were 17:42 17 minutes, 42 seconds also facing disruption due to ammonia shortage while some are imported in India and also on the MIBK which is totally an imported product so are we 17:50 17 minutes, 50 seconds getting or are we sufficiently stocked up uh to for our targeted production or let's say the committed production which 17:58 17 minutes, 58 seconds we have anticipated how how has been the situation there. 18:03 18 minutes, 3 seconds Yes. So, uh, yeah, you're right. There is, like I mentioned, there is supply chain disruptions on account of multiple 18:10 18 minutes, 10 seconds factors. Uh, but, uh, uh, until this point, we have been able to secure uh, supplies uh, so that we can reliably 18:18 18 minutes, 18 seconds deliver to our customers. Uh, uh, at least for the next few weeks and Horizon VC, we we are still uh, in a in a good position uh, for that need. Yeah. 18:28 18 minutes, 28 seconds Perfect. And sir lastly congratulations on an excellent uh working capital management because when I see our cash 18:35 18 minutes, 35 seconds flow statement we have been able to uh save close to around 170 180 crores on the working capital which is taken care 18:43 18 minutes, 43 seconds of of the capex is what we have done in FI26. So congratulations to the team. Thank you so much. Thank you. Thank you. 18:56 18 minutes, 56 seconds Thank you. 18:58 18 minutes, 58 seconds Next question is from the line of Nlesh from HTFC securities. Please go ahead. 19:04 19 minutes, 4 seconds Yeah. Uh good morning sir. Uh sir uh firstly um to an answer uh the first question is on the strategy. You 19:12 19 minutes, 12 seconds mentioned in the opening remark the company is optimizing between volumes and margin but the volumes are growing 19:19 19 minutes, 19 seconds steadily uh up for the company while the margins are falling uh since QF25. 19:27 19 minutes, 27 seconds Uh is company changing volume and compromising on margin? uh your thought on this will be helpful to understand the company strategy sir. 19:39 19 minutes, 39 seconds Yeah thank you. Thank you. Uh no so so clearly intention is is not to compromise on the margins but to look at 19:47 19 minutes, 47 seconds uh improving the overall consolidated and uh there has been that positive 19:54 19 minutes, 54 seconds uptick which we have seen. uh but I think like I said Q4 which Shini just explained uh is also also due to some uh 20:04 20 minutes, 4 seconds specific instance in the quarter uh so but I don't see that uh so but but we still in line with when we say it's a 20:11 20 minutes, 11 seconds mix between price and uh volume uh very clearly uh the intention is while the specific margin might drop because we 20:19 20 minutes, 19 seconds have to get some additional volume the absolute overall number is what we are looking to increase with our available capacities that is clearly the uh direction and the strategy. 20:29 20 minutes, 29 seconds Okay sir. Thank you. And sir uh in Q4 volume growth uh is there an element of volume increase as customer want to keep 20:38 20 minutes, 38 seconds some inventory level at their end so that their production remain uh steady. So is there that volume go? 20:48 20 minutes, 48 seconds Uh no so we don't see any significant overstocking that will spill into into Q1. Uh I'm kind of reading between the 20:56 20 minutes, 56 seconds lines of your question and and trying to answer it. Yeah. 21:00 21 minutes And just uh just one question on this uh expansion. So on Brownfield expansion project that the h that you announced a 21:09 21 minutes, 9 seconds couple of months back. So what percentage of this 130 crx will be spent on debottle making of capacity and how much volume you will add with this? 21:20 21 minutes, 20 seconds So this is uh largely uh additional capacities uh not not much of the body making. 21:27 21 minutes, 27 seconds Yeah. 21:30 21 minutes, 30 seconds Okay. Okay. So so uh and okay and whatever volume you are going to add uh 21:38 21 minutes, 38 seconds will be consumed uh captively or it will be the merchant sales. It's it's merchant sales merchant sales. 21:45 21 minutes, 45 seconds It's a gross capex. 21:47 21 minutes, 47 seconds Okay. And and sir on this lastly on this 250 cr capex at there is the overall capacity uh will be increased by about 21:55 21 minutes, 55 seconds roughly say 20%. Uh and when you are saying 20% volume increase uh is it the 22:01 22 minutes, 1 second merchant sales volume or uh again it is internally consumed. 22:06 22 minutes, 6 seconds You're referring to the the the 20% which we saw the the 250 cr the one right. So that's all yes all merchant 22:13 22 minutes, 13 seconds sales. While just let me just clarify some part of the earlier uh the the 130 we have announced has got a bit of uh uh 22:22 22 minutes, 22 seconds intermediate also included uh but uh largely it is it is captive sales on on that one but the but your second 22:29 22 minutes, 29 seconds question it's it's completely merchant sales okay so 130 uh just from my understanding 130 largely the captively 22:37 22 minutes, 37 seconds consume volume no not largely part so it is related to part of the the finished good that that 22:44 22 minutes, 44 seconds will be coming out. Uh for that whatever is required there is a part of it which will go into that the intermediate. 22:50 22 minutes, 50 seconds Yeah. And uh the the other 250 it's completely uh uh uh much. 22:57 22 minutes, 57 seconds Okay. Thanks. Thanks a lot and all the best. Thank you. 23:03 23 minutes, 3 seconds Thank you. Next question is from the line of Adita Ketan from Smith Institutional Equities. Please go ahead. 23:11 23 minutes, 11 seconds Yeah. Thank you sir for the opportunity. 23:13 23 minutes, 13 seconds So just a couple of questions. Uh so I just wanted to give you one perspective. 23:18 23 minutes, 18 seconds Uh when we look at the annual prices history from July 2025 to around the 23:25 23 minutes, 25 seconds around December 25 for that period analine prices has been ranged quite well between 100 to around 112 rupees 23:32 23 minutes, 32 seconds per kg. Thereafter for the last 3 months we have seen that 110 becoming 90 rupees per kg. So ideally any company which has 23:41 23 minutes, 41 seconds uh around 15 20 days of inventory keeping of raw materials would have benefited from that inventory gains but on the contrary we have not seen that 23:49 23 minutes, 49 seconds benefit even after adjusting for the 78 K which you mentioned on the legacy cost the numbers still look on the lower side. Uh so what should we judge like 23:59 23 minutes, 59 seconds the inventory management is not proper of RM what has actually happened like 24:07 24 minutes, 7 seconds I think um Adita there are two challenges in the beginning of the year I think we mentioned uh we had a legacy 24:15 24 minutes, 15 seconds uh cost inventories uh at the higher cost in the previous year where we had a plan of higher sales volume which we didn't happen so that spilled over into 24:23 24 minutes, 23 seconds the first half of this year so that affected our costing In the first half, in the second half, we got more of market uh uh cost etc. 24:34 24 minutes, 34 seconds The larger challenge which has been for us is the uh spreads got narrowed down 24:40 24 minutes, 40 seconds because one of our products was imported largely from FDA regime uh where the 24:48 24 minutes, 48 seconds protection which was there earlier in the form of basic duty the got wiped out and that impacted the uh bigger impact 24:55 24 minutes, 55 seconds on the profitability. So that is one of the key factors in this year which happened and that that was very very significant in that sense 25:02 25 minutes, 2 seconds but also coming to more recent quarters that should play out a year. So I think surely whatever is in the in the 25:10 25 minutes, 10 seconds pipeline should play out this is a structural s like because that FT has been now wiped out and that will 25:17 25 minutes, 17 seconds remain obviously so in terms of cost wise and do we see at at a disadvantage? 25:24 25 minutes, 24 seconds No, it's not at a disadvantage. Uh I I would say it's just been a certain uh correction but there has been a certain 25:31 25 minutes, 31 seconds normalization also in the last few quarters. 25:35 25 minutes, 35 seconds That's it. Uh so coming to AD we have we know that so DGTR has announced uh some 40 rupees per kg duty and so this is 25:43 25 minutes, 43 seconds applicable on roughly uh any sort of a percentage number sir can you give on to how much product basket and coming two products also like that there also we 25:52 25 minutes, 52 seconds are pending on anti-dumping duty. Uh any thoughts are like on these three pro on onto these three products how much is 25:59 25 minutes, 59 seconds the duty and these two products upcoming what duty could be there and when the finance ministry would give the final call any timelines on that 26:08 26 minutes, 8 seconds so first of all uh this is the recommendation uh from the digitier after doing a thorough investigation which is a cautious judicial body that's 26:16 26 minutes, 16 seconds number one number two so far they have announced for TDQ and sulfonommites they yet to announce their findings for pilllex 13 and 483 26:25 26 minutes, 25 seconds which we are expecting anytime in the few months. I think people expect it should come in the next month or two 1 month or so. Uh that's a deadline which 26:33 26 minutes, 33 seconds they have an internal deadlines which is already announced in the website. Now coming to the impact I think what we have shared with the investors at large 26:41 26 minutes, 41 seconds is that uh overall we had about 40% of revenue getting impacted by anti-dumping products. So the quantum of duty how 26:50 26 minutes, 50 seconds much is approved by finance ministry that's some it is a post matter and the second very important factor is generally what we have seen historically 26:59 26 minutes, 59 seconds and you can even refer to insulable sulfur case very specifically where you proposed a duty the exporters absorbed 27:06 27 minutes, 6 seconds it then again you have to see what is the net effect to the industry so those are all subsequent event which we'll analyze and we will take a call then 27:14 27 minutes, 14 seconds only we can derive uh the pro approval time for the central perform is about generally 90 days. So we expect 27:21 27 minutes, 21 seconds somewhere around middle of June the their viewpoint. 27:26 27 minutes, 26 seconds Okay sir. Thank you for that. Uh so now coming to uh when we look at the anti-dumping duty history from 2014 to 19. So at that time we have seen like 27:35 27 minutes, 35 seconds spreads have peaked out around 65 rupees per kg into this cycle. Suppose if the spreads are uh suppose if this 27:43 27 minutes, 43 seconds anti-dumping duty is imposed what sort of a numbers are we can look at the peak and considering a five to six year considering a five year from now on from 27:51 27 minutes, 51 seconds today how you see numbers of no sale and spreads and volumes moving out considering it 80 days in post 28:00 28 minutes another it's premature to comment on that I think then let's uh let the final decision come then we can and see the reaction how the foreign competitors 28:08 28 minutes, 8 seconds adopt then we'll take a So just one last question. Uh so coming to this quarter so obviously like sir in taking a history of the last two years this quarter numbers looks quite poor. 28:19 28 minutes, 19 seconds Uh and an sir has also reiterated since last four five quarters like uh every quarter we have stated like this is the 28:26 28 minutes, 26 seconds bottom. Uh these quarters are any thoughts like you see so this plan to be continuing or again like we are saying like this could be the bottom here. 28:37 28 minutes, 37 seconds So like I'd mentioned uh uh there is uh u there is an uptick in in pricing and we should see this playing out uh in the coming quarter. Yeah. 28:48 28 minutes, 48 seconds Got it. Thank you. 28:49 28 minutes, 49 seconds And so I just go back I think uh I think the the clearly there is a a strategy and a long-term view in terms of how we want to scale the business. So there are 28:58 28 minutes, 58 seconds also many other measures that we are taking internally in terms of uh our uh competitive intensity and what we need 29:05 29 minutes, 5 seconds to do on on our efficiency. So there are several other measures. So it's it's it's not only dependent on one of the external measures. Yeah. 29:14 29 minutes, 14 seconds Got it. Thank you sir for that explanation. 29:19 29 minutes, 19 seconds Thank you. Next question is from the line of Hershel Parrick from Equitas Capital. Please go ahead. 29:27 29 minutes, 27 seconds Uh hi thanks for the opportunity sir. Uh I think in last two three years US EU 29:33 29 minutes, 33 seconds and the US were planning to ban uh 6 PPD rubber antioxidants due to its toxicity on aquatic life and the author started 29:42 29 minutes, 42 seconds some investigation on that. So can you throw some color on this investigation? 29:48 29 minutes, 48 seconds Yeah, this has been a a finding which started in California and uh uh so there 29:55 29 minutes, 55 seconds is a discussion in terms of uh uh the aqua toxicity of this large largely used 30:02 30 minutes, 2 seconds product which is one the largest rubber chemical used uh the most reliable rubber chemical from a safety and uh uh 30:09 30 minutes, 9 seconds point of view. Uh so it's still uh there there are discussions and all all players are looking to find an alternative including us and we are 30:18 30 minutes, 18 seconds working on it. Uh but it is still some time away. There have been some uh new alternatives that have been announced but they're still in trial and testing 30:26 30 minutes, 26 seconds stages. Uh we must remember it's it's a very large volume product. So the the time will also be required will be large 30:33 30 minutes, 33 seconds because apart from the testing and uh the assurance on safety uh the execution of these products also will will take 30:40 30 minutes, 40 seconds time. Uh but that's that that is an ongoing topic. Yeah. 30:45 30 minutes, 45 seconds Uh but sir on a on a worst case scenario basis uh are we ready with the alternative products as such? So we we 30:54 30 minutes, 54 seconds are also in in advanced stages and uh we are uh we have got full teams dedicated working on this. 31:01 31 minutes, 1 second Sure sir sir and next question would be on the quantum of tikes that we have taken in March due to you know RM inflation. So can you just throw a tentative quantum of tikes? 31:14 31 minutes, 14 seconds It's it's kind of it's a dynamics situation. Yeah but like I given a direction that's the way it is. Yeah. 31:23 31 minutes, 23 seconds Okay, I said the last question is can you just give the volume and uh value mix between domestic and export for this year? 31:32 31 minutes, 32 seconds Uh let's just one second please let's just check that. 31:41 31 minutes, 41 seconds Um in terms of volume uh 70% is domestic 30% is exports. Uh in terms of value probably um 6040. 31:52 31 minutes, 52 seconds Yeah. Uh sorry it could be 6733 or something. My mistake. 6733. 32:00 32 minutes Thank you. Thank you so much. 32:04 32 minutes, 4 seconds Thank you. Next question is from the line of Nitesh Dud from Anitraati Institutional Equity. Please go ahead. 32:12 32 minutes, 12 seconds Hi team. Good afternoon. Uh thank you for the opportunity. Uh my question is on uh on the demand uptick uh you know 32:20 32 minutes, 20 seconds in the domestic market that would have been on the back of uh uh GST and you know the tire growth as you mentioned uh 32:28 32 minutes, 28 seconds but uh there would be an element of higher sourcing with respect to the AD that's likely to be implemented I mean 32:34 32 minutes, 34 seconds do you see the customers uh uh raising the MLS in anticipation and uh is it uh you know likely to slow down uh slow 32:43 32 minutes, 43 seconds down the volumes after the AD actually gets implemented. 32:47 32 minutes, 47 seconds So, so while I do understand that uh you know there may not be over talking on account of West Asia crisis but anything in anticipation of ADD is what I wanted to know. 32:58 32 minutes, 58 seconds No mish we haven't observed such a situation not that yeah not see that and I think the like you rightly said the 33:06 33 minutes, 6 seconds current uh situation is also not kind of uh being very conducive for that. Yeah. 33:14 33 minutes, 14 seconds Correct. So can you clarify on how much has been the domestic uh you know industry volume growth and how much has 33:21 33 minutes, 21 seconds our market share moved in the last quarter? 33:27 33 minutes, 27 seconds Yeah. So I think uh surely by u so so clearly the the the volume growth 33:34 33 minutes, 34 seconds we should have at least by uh uh close to 100 to 150 basis points uh improvement should have been there. 33:41 33 minutes, 41 seconds Yeah. 33:45 33 minutes, 45 seconds Uh okay. Okay. And uh so on the price increases that you mentioned for the non-contractual position uh which month 33:54 33 minutes, 54 seconds did we exactly take this uh you know price hike because when we see the blended realization that shows a decline of 2% sequentially. So uh which month 34:04 34 minutes, 4 seconds did we take it in March or probably that would have happened in April. No, you you would not see it so much in in the in the just the quarter gone by because 34:13 34 minutes, 13 seconds a lot of it started playing out uh that were not in the early part of March and it was more towards the second half of March. So very few days in the in the 34:22 34 minutes, 22 seconds quarter and in the year but more it's in the it's in the upcoming quarter. Yeah. 34:28 34 minutes, 28 seconds Uh understood. And uh just one last maybe on the the H expansion that was uh uh you know so when the capex was 34:37 34 minutes, 37 seconds announced uh the margins were in you know in the 13 15% uh range uh at currently at around 67% able margins 34:45 34 minutes, 45 seconds probably I understand that it's this is not a sustainable number I mean we probably will be moving higher uh and 34:53 34 minutes, 53 seconds you know there's a 250 cr incremental capacity so your internal IR assumptions and investment thesis has there any change around that? 35:02 35 minutes, 2 seconds No, not not significantly. Uh we are quite uh positive like we said also that uh uh the we're looking to improve the 35:10 35 minutes, 10 seconds uh EBIDA numbers through different measures and uh also with uh the the production from the H we should see 35:19 35 minutes, 19 seconds further improvement and better operating leverages there. 35:24 35 minutes, 24 seconds All right. Thank you so much sir for answering the question. Wish you the best for the future. Thank you. 35:31 35 minutes, 31 seconds Thank you. Next question is from the line of Sajel Kapoor from NP Fragile Thinking. Please go ahead. 35:39 35 minutes, 39 seconds Yeah, thank you for the opportunity. 35:41 35 minutes, 41 seconds I've got two questions. Uh first is um as approvals and customer qualifications are becoming increasingly important, 35:49 35 minutes, 49 seconds right? I mean, how do you measure the stickiness of your customer relationships today versus let's say 3 to 5 years ago? 35:59 35 minutes, 59 seconds Yeah. So, uh if you look at our presence fel, we have always been uh present with all 36:07 36 minutes, 7 seconds tire companies not only domestic but also uh internationally for for many years. uh what I would say in the last 36:14 36 minutes, 14 seconds three to five years is it's it's been uh uh more a deeper penetration with our international customers especially with 36:22 36 minutes, 22 seconds the additional capacities that we have brought to the screen in the last few years and uh with all the approvals and the increased volumes that we have got 36:30 36 minutes, 30 seconds uh with also the uh ability to prove our our our supplier reliability and with the trust that we have gained uh it's 36:37 36 minutes, 37 seconds significantly the the stickiness needle has significantly moved over the last three to five years. Yeah. 36:45 36 minutes, 45 seconds So, so price alone is not the only criteria. There are other factors that customers consider um before um deciding 36:54 36 minutes, 54 seconds on the sustainability of the relationship. Is that understanding correct? 36:58 36 minutes, 58 seconds Absolutely. While price is critical uh but uh it it is not not everything that that's why we need to uh to prove our 37:07 37 minutes, 7 seconds capability our ability to supply uh reliably uh in quality and also during difficult times. So I think uh that that 37:15 37 minutes, 15 seconds these are also other criteria that our customers look at. 37:20 37 minutes, 20 seconds Thank you. And then second question is if this uh anti-dumping protection does not materially improve industry pricing 37:29 37 minutes, 29 seconds can no still structurally improved uh improve margins through a combination of 37:36 37 minutes, 36 seconds mix uh efficiency and specialtity growth alone. 37:42 37 minutes, 42 seconds Yeah. Yeah. So um I think that that was uh that's I was just alluding to it a little while ago uh in the sense that uh 37:51 37 minutes, 51 seconds uh we have to be prepared for all scenarios and we have to work towards that and we are building uh on that. So 37:58 37 minutes, 58 seconds there is both uh internal measures uh to to enhance at the same time consolidate and see what we can do. Uh at the same 38:05 38 minutes, 5 seconds time in the product portfolio front also we're looking at how do we enhance the product mix. So it's it's a combination of both uh as well as geographical expansion as uh at a quicker pace. Yeah. 38:18 38 minutes, 18 seconds So some of it uh is already getting reflected in the financials for FI26. In terms of the other expenditure if you 38:25 38 minutes, 25 seconds see there is a reduction of 18 crores or 20 crores. So this uh these were the efforts which we took undertook to 38:32 38 minutes, 32 seconds optimize cost to control cost very differently look at various aspects of business uh operations and critically and try to see how best we can optimize 38:41 38 minutes, 41 seconds it. So those uh efforts are seen in the results in terms of uh uh I would say this controlling cost. Second is the 38:50 38 minutes, 50 seconds working capital management. We try to make an improvement in working capital management and that also gets reflected in the nonoperating other incomes. These 38:57 38 minutes, 57 seconds were some initiatives which we already which is already reflected in FI26. 39:02 39 minutes, 2 seconds Going forward we we have several other such initiatives to for work on that. 39:08 39 minutes, 8 seconds Sure. Sure. Thank you so much for answering my question. Thank you. 39:14 39 minutes, 14 seconds Thank you. Next question is from the line of Pesh Raja from 361 Capital. Please go ahead. 39:21 39 minutes, 21 seconds Yeah. Uh thanks for the opportunity sir sir. uh in this quarter excluding raw material cost there has been uh you know a healthy uh improvement in the 39:29 39 minutes, 29 seconds conversion cost. So could you please elaborate on uh in which area where we have seen there is a good cost cost 39:36 39 minutes, 36 seconds saving. Additionally for FA27 uh you know which specific area that we are being targeted under the cost reduction 39:44 39 minutes, 44 seconds initiatives also uh further company had announced performance linked esop allocations. So could you highlight the area that we are 39:53 39 minutes, 53 seconds still lagging versus its initial targets and what are the measures that we are taking to improve the performance. 40:02 40 minutes, 2 seconds So I'll request to take the first part and then I'll I'll come to the last question of this. 40:07 40 minutes, 7 seconds I think sh we looked at I think I've just said to the previous uh participant who raised the question. So there are 40:15 40 minutes, 15 seconds some measures which we took on utilities which improved the uh overall expenditure or reduce the overall expenditure by 10 11 crores. There were 40:23 40 minutes, 23 seconds some expenses on maintenance which we worked on hard and tried to see how best we can structure that we incurred and that also we reduced during the year. uh 40:32 40 minutes, 32 seconds so I think on utilities and operational other expenses etc we try to control it that's one there are there are other 40:40 40 minutes, 40 seconds administrative uh aspects also which we need not a small small item aggregating the significant amount but there was 40:47 40 minutes, 47 seconds every team task force were formed to look into the areas and to see how best we can optimize 40:54 40 minutes, 54 seconds at the same time on a capital employed for the business that was a working capital management if you see the large part of working capital management 41:01 41 minutes, 1 second happened in inventory uh uh so that we uh could get something. Of course, some inventory went uh further more than what 41:10 41 minutes, 10 seconds we expected. So some corrections will happen but what nonetheless we made a fundamental shift in terms of how to serve the customer with the least amount 41:18 41 minutes, 18 seconds of capital employed is what we were looking at. So this releases the cash and this enables it. So to an extent the 41:25 41 minutes, 25 seconds entire capex this year was largely financed out of internal working capital efficiency more than the uh so thus the 41:33 41 minutes, 33 seconds investment purpose which was there at the beginning of the year largely retained in front of the country it has increased so that enabled us to manage 41:41 41 minutes, 41 seconds things better efficiently. No the other part I think I will leave it alone to sir sir what sir what about the next year sir uh how much we are planning to 41:50 41 minutes, 50 seconds reduce it say with the similar volume 55,000 tons say today the conversion cost is 100 so how much uh we can able 41:58 41 minutes, 58 seconds to bring it down yeah so uh so there are so clearly the the the direction is is to there are 42:06 42 minutes, 6 seconds quite a few initiatives which are underway and they should start coming on on stream uh we expected to to improve 42:13 42 minutes, 13 seconds further uh on the the absolute uh conversion per kg. So that that we see see it to to go down further. Uh no 42:22 42 minutes, 22 seconds there's not a specific number that I can give you at at this this point in time. 42:25 42 minutes, 25 seconds Sher sh um there were other initiatives also in the SND area which is also reflected in the other expenses but 42:32 42 minutes, 32 seconds that's also something that has given us a positive philip uh coming back to the last part which you mentioned. Yeah. So 42:41 42 minutes, 41 seconds we had clearly our metrics were in the along the lines of profitability and 42:47 42 minutes, 47 seconds volume growth. Uh so we are a bit behind as far as what we had set out to do. Uh there are significant uh measures 42:55 42 minutes, 55 seconds internally uh which we had taken. Uh so a combination of external environment has also played a role but we are kind of really creating a road map to to see 43:04 43 minutes, 4 seconds how we can get back on track on that front. Yeah. 43:07 43 minutes, 7 seconds Okay. Okay sir. One last question. We had uh you know uh installed capacity of 115 43:13 43 minutes, 13 seconds uh 1 lakh 15,000 metric t. So that time our effective capacity was 80,000 tons. 43:20 43 minutes, 20 seconds Now the installed capacity has increased to uh 1 lakh 38 1 lakh 39,000 tons. So what is our effective capacity and also 43:28 43 minutes, 28 seconds uh we have announced you know that uh 130 crores of capex. So what is the number that uh you are looking for both 43:36 43 minutes, 36 seconds installed as well as the effective capacity? 43:41 43 minutes, 41 seconds Yeah. So the first of all the new capacities trial production is on. So let it come commercial as well as 115 we 43:49 43 minutes, 49 seconds have never said 80 or 75 anywhere. There is a ballpark of 65% 35% is what we do. 43:55 43 minutes, 55 seconds We don't give the specific numbers for business uh sensitivity. 44:00 44 minutes uh as far as the 130 cr of project is concerned we will let you know as we get into the uh advanced stage of project completion. 44:09 44 minutes, 9 seconds Okay. Okay. So sir with the commissioning of new capacity incremental capacity do you see the fixed cost absorption would be low in this year or do you think the ramp up of capacity will happen faster? 44:20 44 minutes, 20 seconds So there could be some initial uptick in the stabilization uh but overall it it should uh it will as the plant 44:28 44 minutes, 28 seconds stabilizes uh uh enhance our operating leverage on the site here because we already have the other 44:36 44 minutes, 36 seconds utilities and everything else on the site here. Okay sir. Yeah. Thanks. 44:44 44 minutes, 44 seconds Thank you. Next question is from the line of Nav Jimia from Annual Wealth. Please go ahead. 44:50 44 minutes, 50 seconds Yes sir. Thanks for the opportunity. Uh sir, one question on the export market like uh specifically on the Europe uh 45:00 45 minutes and the other parts of Asia where we are currently exporting. Uh how has been the situation there in terms of uh uh the 45:08 45 minutes, 8 seconds disruptions at the plant in Europe and other parts of the Asia which could provide us some opportunity in the short term to export our volumes there. 45:20 45 minutes, 20 seconds Are we seeing any traction in terms of the improved sales volumes to these geographies? 45:27 45 minutes, 27 seconds We're not seeing any uh significant uh deviation. Uh it's not too much positive or or on the negative side. U it's 45:36 45 minutes, 36 seconds pretty much quite stable. There are those uh ongoing interruption due to uh transit timelines and things like this. 45:44 45 minutes, 44 seconds Uh freight costs. Yeah. But uh I would say from a volume volutric uh requirement point of view there's not 45:53 45 minutes, 53 seconds been any significant uh difference that's playing out. Yes. 45:57 45 minutes, 57 seconds Correct. And last quarter you uh uh informed us that uh USA where the duties 46:05 46 minutes, 5 seconds were on a higher side which were then subsequently reduced uh our volumes were affected by close to around 50%. uh uh 46:13 46 minutes, 13 seconds how has been the situation there in terms of those improvement in uh USA volumes. 46:22 46 minutes, 22 seconds Yeah. So that that that is uh uh moving up like uh we had uh mentioned also. So that's a that's a positive development 46:29 46 minutes, 29 seconds and uh we are seeing that uh so I think it normally takes some time before supply chains can kind of adjust to any change of this sort uh and but we are 46:38 46 minutes, 38 seconds seeing it uh in the positive direction and we should see it gain traction in the in this coming year. 46:45 46 minutes, 45 seconds Correct. Uh sir also are your thoughts on the latex market like uh uh has those 46:51 46 minutes, 51 seconds uh volumes to the latex market improved uh in Q4 or how do you see FI27 panning 46:59 46 minutes, 59 seconds out so far as the latex volumes are concerned? 47:03 47 minutes, 3 seconds So latex volumes last year there was a bit of uh disruption due to all the tariff uh um back and forth that happened in the initial part of the year 47:12 47 minutes, 12 seconds but it has been quite uh stable in terms of production. Uh there is increased competitive intensity from Chinese 47:19 47 minutes, 19 seconds players in that market. Uh but uh I expect for this year it should it should be stable uh barring any significant uh disruption. Yeah. 47:30 47 minutes, 30 seconds Uh sir you mentioned that uh like we are already in the process of sending the samples for our expanded plant to the 47:38 47 minutes, 38 seconds customer. So typically based on your experience uh with the earlier expansions and the customer approvals 47:45 47 minutes, 45 seconds time cycle when can we see a material uh improvement in or material capacity 47:53 47 minutes, 53 seconds utilization uptick coming from our uh newer expansion uh coming off. 48:02 48 minutes, 2 seconds Yeah. So uh usually we expect the uh non-tire based uh business uh to start uh much earlier uh whereas the uh tire 48:11 48 minutes, 11 seconds based uh customers uh will will take the time of the approval but uh uh we are in engagement to see how we can speed it 48:19 48 minutes, 19 seconds up. Um so I I should expect that it should take about uh 6 to 8 months by the time we see see real traction or from from our larger customers. 48:29 48 minutes, 29 seconds Correct. Uh and so last question from my side is like uh uh since on an indexation basis we have already touched 48:38 48 minutes, 38 seconds 150 uh levels. So uh one a on the operating leverage part uh what is your 48:48 48 minutes, 48 seconds internal assessment in terms of the real benefit of operating leverage coming up. 48:53 48 minutes, 53 seconds Let's say can the indexation of 160 a benchmark where we would start seeing 48:59 48 minutes, 59 seconds some uh sizable improvement in our uh conversion cost. Uh what's your internal 49:06 49 minutes, 6 seconds assessment about the indexation levels where we start we can start seeing those operating leverage benefits. 49:14 49 minutes, 14 seconds So um I think I I tried to kind of consolidate it when I mentioned last uh at the last call that uh we are looking 49:22 49 minutes, 22 seconds to improve our IBITa uh from the base of uh financial year 26 to another 150 basis points going forward. So uh this will all kind of kick in in into that. 49:34 49 minutes, 34 seconds Yeah. 49:35 49 minutes, 35 seconds So any volume growth is going to have operational leverage benefit definitely there. That's uh well understood. 49:44 49 minutes, 44 seconds And so last thing from my side um sir on the newer products uh which were on which we were working and uh you have uh 49:52 49 minutes, 52 seconds informed us in the earlier calls also that we could see the volumes coming from the those newer products in FI27. 50:00 50 minutes So where are we and uh uh out of the volume growth which we are expecting in FI27 50:09 50 minutes, 9 seconds uh how much of the volume growth could be contributed by these newer products. 50:16 50 minutes, 16 seconds So um yes uh we we we do expect uh to to gain u higher volumes and traction on 50:22 50 minutes, 22 seconds those uh uh new products. So um I I I would still see that financial year 27 it'll still uh be uh in a pickup mode. 50:33 50 minutes, 33 seconds Uh might not make a significant impact on on the overall volumes but uh gradually moving uh towards the end of the year we should start seeing more 50:41 50 minutes, 41 seconds volume uptake. Uh not able to give you a specific number n at this point. 50:47 50 minutes, 47 seconds Perfect sir. Thank you so much and wish you all the best. Thank you. Thank you. 50:56 50 minutes, 56 seconds Thank you. 50:58 50 minutes, 58 seconds Next question is from the line of Pavin Kumar from Equitas Capital Advisers. Please go ahead. Yeah. Hi. Uh thanks for the opportunity. 51:06 51 minutes, 6 seconds I had a couple of questions. Uh the first one was uh on the imports of antioxidants. If I look at the overall 51:13 51 minutes, 13 seconds import data uh it looks like you know in the January February the first two months of the year on a Y basis volumes of importance picked up significantly. 51:24 51 minutes, 24 seconds So could you throw some light into what could be the positive factors behind this? 51:30 51 minutes, 30 seconds Uh you're talking about January to to Jan Feb of this this year. Uh yeah Jan Feb of this year compared to the Jan Feb of uh the previous uh year. 51:42 51 minutes, 42 seconds Yeah. So, uh I also uh see that potentially also like we said some of it is is come through the Thailand and and 51:51 51 minutes, 51 seconds Korean FDA. Uh but overall also um it there could have been a a slight uptick because the uh overall demand in the 51:58 51 minutes, 58 seconds market per se is also on the positive side. So basically what has happened is you have a situation where the domestic demand is expected to grow at 7% as per 52:07 52 minutes, 7 seconds Ikra estimate. So when you're looking at a 7% consumption in Indian rubber incidentally India is the second largest 52:14 52 minutes, 14 seconds consumer of rubber consumption as globally then we have surpass USA so given that background you could have seen customers importing more from the 52:23 52 minutes, 23 seconds FDR because it is coming at cheaper and stuff like that. 52:28 52 minutes, 28 seconds So do you expect that to persist or is there some uh corrective action or something that can be done on that? 52:35 52 minutes, 35 seconds No. So on the uh FDA front we are kind of highlighting to ensure that uh the value addition is within the norms of 52:42 52 minutes, 42 seconds the FDA uh and uh uh we are highlighting it uh uh and it's being taken up at this 52:49 52 minutes, 49 seconds point but uh no no specific uh outcome at this at this point in time. Yeah. 52:55 52 minutes, 55 seconds Understood. And the second question was on the global rubber consumption chart that you uh you know present. So I was just going through that. So from a again 53:03 53 minutes, 3 seconds if I look at uh it in two parts right one is let's say 2013 to 2018 kind of a time period during the time it went from 53:11 53 minutes, 11 seconds 25.5 to 29.3 which is like a roughly 5.7% kind of a CG increase right now if 53:17 53 minutes, 17 seconds I shift my focus to let's say 2022 till 25 the last three odd years there the growth rate you know went from it went 53:25 53 minutes, 25 seconds from 29.4 to 31.9 as per data which is more like a 2.8% 8% kind of a CH growth rate right so just wanted to understand 53:33 53 minutes, 33 seconds what do you think are the reasons for like almost more than having of the growth rate which the overall industry was growing at so could you throw some 53:41 53 minutes, 41 seconds light into this and how do you see this panning out yeah so while if you really see another 53:48 53 minutes, 48 seconds layered information on this more of it is also in Asia uh the the growth is much more stronger in in in Asia 53:55 53 minutes, 55 seconds compared to the uh western markets yeah so uh while globally uh also due to the continual uh disruptions that we have 54:03 54 minutes, 3 seconds had in the last few years that's also played out that at a lower growth rate but I see overall we typically take 54:12 54 minutes, 12 seconds about two to two and a half% growth that that is a safe number to achieve on a medium to long-term CAGR basis. Yeah. Uh 54:20 54 minutes, 20 seconds so anything above that sometimes is uh is really not very realistic. Yeah. 54:27 54 minutes, 27 seconds Uh so basically you're implying that the 2013 to 18 kind of a growth rate which happened at the broad level that was kind of more unusual and this 2.8 3% 54:36 54 minutes, 36 seconds what whatever 2.5 to 3% is more a realistic growth rate I assume. 54:40 54 minutes, 40 seconds Correct. Cor right that's what we always also use that is the that is the parameter we use for even for our evaluations of future demand scenario. 54:48 54 minutes, 48 seconds Understood. Understood. And just just to uh again go back to that the my earlier question on you know the imports picking up in the first two months. here. Uh is 54:57 54 minutes, 57 seconds there I mean we also noticed that you know in one of their large Chinese competitors the largest one in their one of their recent calls they had alluded 55:05 55 minutes, 5 seconds to uh Indian players putting up capeex probably they were referring to you I guess so I'm just wondering that is it 55:13 55 minutes, 13 seconds also maybe uh I mean given that your most you know recent capeex is uh the one which is going to come on stream is also for antioxidants is there a 55:21 55 minutes, 21 seconds likelihood aggressive And you know before you start uh you know commercializing your 55:28 55 minutes, 28 seconds capacity uh um I there is always a certain uh capacity to hold inventory right so I I 55:37 55 minutes, 37 seconds don't think u uh so I I don't I don't see that as a as a major impact uh on account of us uh coming up with with the 55:46 55 minutes, 46 seconds capex okay understood thanks thanks for the responses thank 55:55 55 minutes, 55 seconds Thank you. Next question is from the line of Adita from Smith's Institutional Equities. Please go ahead. 56:03 56 minutes, 3 seconds Yeah, thank you sir for the followup. Uh sir, my question is onto the speciality segment. Uh sir, I stated that this 56:10 56 minutes, 10 seconds capex of 130 cr will come largely into the speciality side. uh just a recalibrating some numbers if you can throw what is the specialtity segment 56:18 56 minutes, 18 seconds mix as on FI26 and what are the volumes or utilization level like this segment is working on and with this capacity 56:27 56 minutes, 27 seconds coming in in by FI28 I suppose uh what sort of capacity addition are we looking 56:34 56 minutes, 34 seconds at into specialtity side uh and what is the demand outlook into this segment in uh into the export market if you can 56:41 56 minutes, 41 seconds just highlight on this By and large the uh when we look at the whole the sector that we operate 56:49 56 minutes, 49 seconds typically we have a slightly higher skew towards uh the specialtities than what the uh uh industry reflects that is why 56:57 56 minutes, 57 seconds the industry reflects a single digit uh spread on on the specialtity versus the nonsp specialtity we would be at about 57:05 57 minutes, 5 seconds 15% and I think with this uh we should be able to go to 20% is what our expectation 57:13 57 minutes, 13 seconds 20% mix post commissioning of the capacity and and reaching peak utilization level so we can reach 20%. 57:20 57 minutes, 20 seconds Yeah, that's right. That's right. 57:22 57 minutes, 22 seconds Because again uh volumes are are not typically very very high. 57:28 57 minutes, 28 seconds Got it. Okay. Okay. and and and answer the speciality segment is like focused on which particular end users and which 57:35 57 minutes, 35 seconds particular geographies like US, Europe, any sort of mature markets versus emerging markets where it is specifically used. 57:43 57 minutes, 43 seconds It's across all the all the markets. Yeah. 57:48 57 minutes, 48 seconds Okay. Got it. Sir coming to the question on the higher imports in this quarter. 57:53 57 minutes, 53 seconds Sir also we have seen many times like before any anti-dumping duty comes in generally customers looks to stock up 58:00 58 minutes inventory right before uh this announcement and try to mitigate some of the higher cost which went post anti-dumping duty whatever is there uh 58:09 58 minutes, 9 seconds are you seeing this trend to playing out and and and this is leading to higher imports or general you see because uh 58:17 58 minutes, 17 seconds any sort of a change why imports have suddenly spiked up. 58:22 58 minutes, 22 seconds So uh yeah there there was a question earlier on this also while I said that uh that could be a a tendency and inclination we have not seen it so much 58:31 58 minutes, 31 seconds also due to the fact that uh current situation has not been so conducive towards that. Yeah. So there could be 58:38 58 minutes, 38 seconds pockets of it here and there but uh by and large due to the environment it has not played out to that extent. Yeah. 58:44 58 minutes, 44 seconds Because it's still at this point DGTR is still only a recommendation. Yeah. 58:49 58 minutes, 49 seconds Just one last question onto the volume growth uh for FI27 and 28 sir. What sort of numbers are we looking at? 58:57 58 minutes, 57 seconds Sorry come again please. I just could not show you that. Yeah. 59:00 59 minutes Onto the volume growth uh guidance like what numbers are we looking at for FI28 and 27 in terms of growth just 59:08 59 minutes, 8 seconds yeah so we are looking at uh u uh double digit growth in terms of volumes. That's that's a target. Yeah. For the coming 59:17 59 minutes, 17 seconds years. Yeah, got it sir. Thank you. Thank you. 59:24 59 minutes, 24 seconds Thank you. Next question is from the line of Tanvi Var from Anantraati Institutional Equities. Please go ahead. 59:32 59 minutes, 32 seconds Uh hi team, thank you for your opportunity. Uh so we have a 220 crores of CWIP NFI 26. Uh so going forward how 59:41 59 minutes, 41 seconds much of this comprise of the project debt and what will be the cost of debt in in one direction. 59:53 59 minutes, 53 seconds So as of today we have not borrowed any debt. We are having some lines uh about 100 crores from a bank but we are to 1:00:02 1 hour, 2 seconds utilize it. It depends on that and uh it is a repo linked uh interest rates. So nothing that is in the CWIP right? 1:00:11 1 hour, 11 seconds No no no so far nothing is there. Okay thank you so much. 1:00:18 1 hour, 18 seconds Thank you. Next question is from the line of Nlesh Kay from HTFC securities. Please go ahead. 1:00:26 1 hour, 26 seconds Uh yeah just my my question is on anti-dumping duty. Sir what we have observed that u in a inflationary scenario finance ministry uh largely 1:00:35 1 hour, 35 seconds reluctant to approve anti-dumping duty uh though there is a recommendation from uh from commerce ministry so uh it's a 1:00:44 1 hour, 44 seconds case that happen uh for our product so what are our plans to expand margins and 1:00:50 1 hour, 50 seconds uh how we are ready to that yes again I think uh one of earlier uh 1:01:00 1 hour, 1 minute people on the call participants did ask this question I think it was Mr. 1:01:04 1 hour, 1 minute, 4 seconds uh and uh yeah so there are plans so like I said uh we look to um there's a lot of uh cost efficiency measure 1:01:12 1 hour, 1 minute, 12 seconds improvements that are ongoing uh within the organization at our manufacturing sites uh and uh we expect that will also 1:01:20 1 hour, 1 minute, 20 seconds positively play there is also um product mix uh uh areas that we're looking at as well as uh the uh uh the geographical 1:01:29 1 hour, 1 minute, 29 seconds expansion is also another area so there are multiple actions in Okay. Uh uh that that we are looking at. 1:01:37 1 hour, 1 minute, 37 seconds Okay. And secondly uh to to Mr. Sini the what are the tax rate guidance for FI27 1:01:45 1 hour, 1 minute, 45 seconds uh any any reduction there because of this new planned commissioning and the revenue coming from there. 1:01:53 1 hour, 1 minute, 53 seconds No no s normal tax rates. Okay. Thanks. Thanks a lot sir. 1:02:00 1 hour, 2 minutes I just wanted to kind of thank you. 1:02:02 1 hour, 2 minutes, 2 seconds Thank you Nisha. So I think there were two questions again on this uh improved volumes from both Adita and Pravin uh on 1:02:10 1 hour, 2 minutes, 10 seconds uh the increased volumes uh which were coming in through the import. So just my uh one of my colleagues just mentioned 1:02:18 1 hour, 2 minutes, 18 seconds that uh towards the end of the year typically you see this where some of the uh importers tend to use the advanced license and there is always a chunking 1:02:27 1 hour, 2 minutes, 27 seconds up of it uh during the last quarter. So that's potentially one reason I just thought I'll add uh to that question 1:02:34 1 hour, 2 minutes, 34 seconds because it came up twice. Yeah. Thank you. 1:02:41 1 hour, 2 minutes, 41 seconds Thank you. As there are no further questions from the participants, I now hand the conference over to Mr. Vasan for closing comments. Over to you. 1:02:55 1 hour, 2 minutes, 55 seconds I'm sorry sir, we are not able to hear you if you're speaking. 1:02:58 1 hour, 2 minutes, 58 seconds Thank you. Thank you everybody for your time uh and we appreciate that you could uh be here today with us. So I hope we've been able to address uh all your 1:03:05 1 hour, 3 minutes, 5 seconds queries. For any further information kindly get in touch with any one of us or strategic growth advisors or investor 1:03:12 1 hour, 3 minutes, 12 seconds relations advisors. Thank you once again and wishing you a very pleasant day ahead. Thank you. 1:03:20 1 hour, 3 minutes, 20 seconds Thank you very much on behalf of Noel Limited. That concludes this conference. 1:03:24 1 hour, 3 minutes, 24 seconds Thank you all for joining us today. And you may now disconnect your lines.