Oriental Aromatics Limited — Q3 FY26

Oriental Aromatics Ltd Q3 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=qkqYrLhGEMQ Published: 3 months ago

0:01 1 second Ladies and gentlemen, good day and welcome to Oriental Aeromatics Limited Q3 and 9month FI26 earnings conference 0:09 9 seconds call. As a reminder, all participant lines will be in the listenonly mode and there will be an opportunity for you to 0:16 16 seconds ask questions after the presentation concludes. 0:20 20 seconds Should you need should you need assistance during this conference call, please signal an operator by pressing star then zero on your touchstone phone. 0:28 28 seconds Please note that this conference is being recorded. 0:32 32 seconds I now hand the conference over to Miss Purwangi Jen from Valor Advisors. Thank you and over to you ma'am. 0:40 40 seconds Good afternoon everyone and a very warm welcome to you all. My name is Purangi Jen from Valer Advisers. We represent the investor relations of Oriental 0:49 49 seconds Aromatics Limited. On behalf of the company, I would like to thank you all for participating in the company's earnings conference call for the third quarter of the financial year 2026. 1:00 1 minute Before we begin, let me mention a short cautionary statement. Some of the statements made in today's earnings call may be forward-looking in nature. Such 1:08 1 minute, 8 seconds forward-looking statements are subject to risk and uncertaintities which could cause actual results to differ from those anticipated. 1:16 1 minute, 16 seconds Such statements are based on management's belief as well as assumptions made by and information currently available to the management. 1:23 1 minute, 23 seconds Audiences are cautioned not to place any undue reliance on the forward-looking statement in making any investment decisions. The purpose of today's 1:32 1 minute, 32 seconds earnings call is purely to educate and bring awareness about the company's fundamental business and financial quarter under review. Now let me 1:40 1 minute, 40 seconds introduce you to the management participating with us in today's earnings call and hand it over to them for their opening remarks. We have with 1:47 1 minute, 47 seconds us Mr. Dhl A Bodhani chairman and managing director Mr. Shamal A Budani 1:54 1 minute, 54 seconds executive director Mr. Girish Kandelwal Chief Financial Officer Mr. Parak Satosskar, Chief Executive Officer and Miss Kiran Prikill, company secretary. 2:06 2 minutes, 6 seconds Without any further delay, I request Mr. 2:08 2 minutes, 8 seconds Dhal Bodhani to start with his opening remarks. Thank you and over to you, sir. 2:14 2 minutes, 14 seconds Thank you, Bulwangi. Good afternoon everyone and welcome to our earnings call to discuss the performance of the first quarter of financial year 2026. 2:23 2 minutes, 23 seconds Our executive director, Mr. Shamallay Bodhani shall be briefing you all on the operational highlights for the first quarter after which our CFO and Mr. 2:33 2 minutes, 33 seconds Girish Kandelwal will brief you on the financial highlights. Over to you Sha. 2:38 2 minutes, 38 seconds Thank you. Thank you Dhal. Good afternoon everyone and welcome to our earnings con call to discuss the performance of the third quarter of the financial year 2026. 2:49 2 minutes, 49 seconds Let me begin by connecting the dots with what we had shared with you over the last two quarters. In Q1 and Q2, we had 2:57 2 minutes, 57 seconds clearly stated that the industry was operating in a profit in a soft pricing environment 3:05 3 minutes, 5 seconds on the aroma ingredients and turpin chemicals side of our business and that our strategy would be to 3:14 3 minutes, 14 seconds protect and grow volumes, deepen customer relationships and expand market share. While we have executed internal 3:24 3 minutes, 24 seconds cost and process programs and ramped up Mahad that is exactly what we have continued 3:31 3 minutes, 31 seconds to do in quarter 3. The performance of the fragrance division continues to be very strong and sustainable bene 3:40 3 minutes, 40 seconds benefits from a softer pricing of raw materials and new wins with existing customers and new customers being added. 3:50 3 minutes, 50 seconds Q3 is typically a more normalized quarter after the festive peak. And every year we see a sequential cooling 3:58 3 minutes, 58 seconds off in certain categories, most notably in camper and at times in select aroma ingredients and fragrances. 4:07 4 minutes, 7 seconds This year too, we saw sequential softness with lower demand in specialtity aroma ingredients and 4:14 4 minutes, 14 seconds fragrances and a sequential decline in camper volumes in line with historical seasonal patterns. 4:23 4 minutes, 23 seconds However, what is encouraging is that the underlining yearon-year direction remains positive. Production increased 4:31 4 minutes, 31 seconds 3% year on year and sales volumes increased 10% yearonear for the quarter. 4:39 4 minutes, 39 seconds From an operational standpoint, our plant-wise numbers reinforce this picture clearly in Q3. Total production 4:48 4 minutes, 48 seconds was up 3% year on year. Total sales were up 10% yearonear even though sales were 4:55 4 minutes, 55 seconds down sequentially versus Q2 due to the postfestive normalization. 5:02 5 minutes, 2 seconds BLI sales were up 27% yearonear despite being down subsequentially 5:11 5 minutes, 11 seconds which is consistent with the seasonal curve. Ambernat our fragrance division sales were up 4% yearon year. Boda where 5:20 5 minutes, 20 seconds we produce aroma ingredients continues to show resilience on production up 15% yearonear 5:28 5 minutes, 28 seconds while the broader specialtity ingredients market remains competitive and price sensitive. 5:36 5 minutes, 36 seconds Mahad continues its early ramp up trajectory and remains strategically important. It is still in the 5:43 5 minutes, 43 seconds stabilization phase and we have always guided that it would take a few quarters to reach optimal utilization. 5:53 5 minutes, 53 seconds On the financial side, Q3 revenues from operations was 252.03 6:00 6 minutes crores and our IITA margin for the quarter stood at 5.26%. 6:07 6 minutes, 7 seconds ITA moderation in Q3 reflects three realities we have been 6:16 6 minutes, 16 seconds transparent about with the investor community. Pricing remains under pressure especially in ingredients in 6:24 6 minutes, 24 seconds what is still a buyer market. Mahhat being a green field facility in ramp up continues to be a near-term drag on consolidated profitability. 6:36 6 minutes, 36 seconds An effect we expect to reduce progressively as utilization rises and fixed costs get absorbed better. 6:45 6 minutes, 45 seconds Consistent with what we have discussed earlier in quarter 2, Q3 demand mix is typically less favorable than Q2 given 6:54 6 minutes, 54 seconds the seasonal cycle. Importantly, when you step back and view performance the way global peers encourage investors to 7:04 7 minutes, 4 seconds view it over a long arc rather than a quarterto quarter noise, the trend is reassuring. 7:13 7 minutes, 13 seconds For the 9-month period, we delivered 11% growth in production and 10% growth in sales volume versus last year. 7:23 7 minutes, 23 seconds This is the clearest indicator that our focus on sales maximization, penetration and customer retention is 7:30 7 minutes, 30 seconds working even in a tough pricing environment. 7:35 7 minutes, 35 seconds We are also maintaining balance sheet discipline. Net debt to equity stands at 7:42 7 minutes, 42 seconds 0.65x 65x as of 31st December 2025, which keeps us well positioned to fund growth while managing volatility. 7:54 7 minutes, 54 seconds As we look ahead, our priorities remain unchanged and very clear. Protect and grow volumes and market share across 8:03 8 minutes, 3 seconds camphor fragrances and specialtity aroma ingredients. 8:08 8 minutes, 8 seconds Execute process improvements and cost programs to rebuild margins structurally independent of pricing cycles. 8:18 8 minutes, 18 seconds Accelerate Mahad's commercial ramp up so that what is a temporary drag becomes a meaningful driver of growth and profitability. 8:28 8 minutes, 28 seconds To summarize, Q3 is seasonally and structurally a different quarter versus Q2. And this year too, we we saw a sequential softness. 8:39 8 minutes, 39 seconds Yet, we delivered positive year-on-year volume growth, healthy 9-month trends, and continued execution on the strategic 8:48 8 minutes, 48 seconds building blocks that will improve margins as Mahad stabilizes and the pricing cycle turns. 8:56 8 minutes, 56 seconds Thank you. I will now hand over to our CFO, Mr. Girish Kandelwal for the financial highlights. 9:05 9 minutes, 5 seconds Thank you very much Shamal. I would like to welcome you all to the conference call. Let me begin by sharing our 9:13 9 minutes, 13 seconds consolidated performance for the quarter. 9:17 9 minutes, 17 seconds The operating revenue for the quarter stood at rupees 252 cr reflecting a growth of approximately 13% yearonear. 9:28 9 minutes, 28 seconds IBITA for the quarter was reported at rupees 13 cr compared to rups 23 cr in 9:34 9 minutes, 34 seconds the corresponding quarter. The IBITA margin stood at 5.26%. 9:41 9 minutes, 41 seconds Net loss for the quarter was rups 1.92 cr is against net profit of rups 7.14 cr in the same period last year. 9:52 9 minutes, 52 seconds the profit after tax margin for the quarter store at minus 0.76%. 10:00 10 minutes Now moving on the consolidated performance for 9 month FI 2026. 10:06 10 minutes, 6 seconds The operating revenue for 9 month FY 2026 was rupees 748 cr representing a 10:14 10 minutes, 14 seconds 11% yearon-year increase. ITA for the period stood at rupees 49 cr compared to 10:22 10 minutes, 22 seconds rupees 73 cr in the corresponding 9 months the iita margin was 6.49% 10:30 10 minutes, 30 seconds as against 10.85% in the corresponding period net loss for 9 month 2026 was rupees 10:40 10 minutes, 40 seconds 0.67 67 cr compared to net profit of rups 32.90 cr in 9 months 2025 10:50 10 minutes, 50 seconds with net margin stood at minus 0.09%. 10:56 10 minutes, 56 seconds As on December 31st December 2025 the net depth equity ratio is stood at 0.65x 65x 11:05 11 minutes, 5 seconds and the cash profit for the 9 months 2026 was 22.65 cr. With this we can now 11:15 11 minutes, 15 seconds open the floor for the question and answer session. Thank you. 11:19 11 minutes, 19 seconds Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on the touchstone 11:28 11 minutes, 28 seconds telephone. If you wish to remove yourself from the question queue, you may press star and Q. Participants are requested to use handsets while asking a 11:37 11 minutes, 37 seconds question. Ladies and gentlemen, we will wait for a moment while the question Q assembles. 11:59 11 minutes, 59 seconds The first question is from the line of Rajesh Mishra from Liberi security. 12:06 12 minutes, 6 seconds Please go ahead. Yes. 12:14 12 minutes, 14 seconds Rajes country. 12:49 12 minutes, 49 seconds 100% 13:01 13 minutes, 1 second manufacturer import. 13:16 13 minutes, 16 seconds manufacturer more than 200 micrst 13:37 13 minutes, 37 seconds question. 13:41 13 minutes, 41 seconds So respond 13:59 13 minutes, 59 seconds disturbing instance. Point number one. 14:03 14 minutes, 3 seconds Point number two, manufacturers situationally 14:19 14 minutes, 19 seconds natural camper. 14:30 14 minutes, 30 seconds focus improve 14:56 14 minutes, 56 seconds China last importment. 15:25 15 minutes, 25 seconds Thank you, sir. Thank you, Mr. 15:32 15 minutes, 32 seconds Thank you very much. Participants who wish to ask a question may press star and one. The next question is from the line of Kustoau Bhubna from BM SPL. 15:45 15 minutes, 45 seconds Please go ahead. 15:47 15 minutes, 47 seconds Yeah. Hi. uh wanted to understand what is the exposure to North America 15:54 15 minutes, 54 seconds for our company and how much have number financials been impacted 16:01 16 minutes, 1 second uh due to the tariff situation and uh if you can quantify it somehow the exposure 16:08 16 minutes, 8 seconds and what's your view on this trade deal and how does that benefit a company like ours? 16:15 16 minutes, 15 seconds Uh did I is your name Kausto? Did I get it right? Yeah. 16:21 16 minutes, 21 seconds Okay, great. So, uh Kaus primarily I wouldn't be able to give you the exact numbers but uh Girish correct me if I'm 16:29 16 minutes, 29 seconds right. The last time we checked between uh 16 to 20% of our sales are uh 16:38 16 minutes, 38 seconds oriented uh towards America. Point number one. Uh point number two, I think uh the major impact because of this uh 16:47 16 minutes, 47 seconds positive trade deal is if you historically look at the American market, it it is driven by having 16:54 16 minutes, 54 seconds material in inventory and because of the uncertainty the American customer was 17:01 17 minutes, 1 second buying hand-to-mouth and hence what used to normally stay at the inventory level was the loss in sales. I think that's 17:10 17 minutes, 10 seconds slowly started opening up because nobody still has the final draft of the uh of the tariff tariff reduction program and 17:18 17 minutes, 18 seconds how it's going to be implemented. But we are seeing positive signs in terms of in terms of customers coming back and 17:25 17 minutes, 25 seconds placing orders uh which will definitely have a positive impact on sales. 17:31 17 minutes, 31 seconds No, but uh if you could explain that part again where your current financials, your 9mon financials 17:39 17 minutes, 39 seconds have Yes. 17:40 17 minutes, 40 seconds Has there been what type of impact has there been on these financials because of the tariff uncertainty that existed in that time period? 17:51 17 minutes, 51 seconds So, so I I will not be able to quantify exactly what has been the impact on the 9 months financials but I would have 17:59 17 minutes, 59 seconds said that we would have very easily expected to have an a 6 to 9% more sales 18:06 18 minutes, 6 seconds in these 9 months have had the tariffs not been there or there was clarity in terms of the eventual landed cost for an 18:15 18 minutes, 15 seconds American customer coming from goods from India and or Yes, just to further add, can you hear me? 18:23 18 minutes, 23 seconds Hi, this is Zill. 18:24 18 minutes, 24 seconds I just to further add that there is I mean look if if you come down in duty structure from where we were to where we 18:31 18 minutes, 31 seconds are today that obviously makes uh or gives a sense of stability to our buyers 18:38 18 minutes, 38 seconds in North America and gives them a clear idea of where their cost structure of the landed material is going to be. So 18:45 18 minutes, 45 seconds they have obviously not bought and built stocks because they had no idea whether the tariffs would continue to go up, go down. So there was a lot of uncertainty. 18:54 18 minutes, 54 seconds So if you're asking us a forward-looking question on the impact of this trade uh deal that we've had with the United 19:02 19 minutes, 2 seconds States, it's extremely positive. I think it's in the right direction. And I think if America starts looking back at India 19:10 19 minutes, 10 seconds and buying again and building stocks, I think we're going to be, you know, seeing much better days ahead than we have so far. 19:20 19 minutes, 20 seconds And and just thank you. And just a follow-up question on when you you know when you talk about return of pricing 19:26 19 minutes, 26 seconds power, you know, you mentioned pricing is still weak. Just could you explain the China angle once? uh 19:35 19 minutes, 35 seconds so [clears throat] currently in our industry there's a 14% duty difference between the Chinese and the uh companies 19:42 19 minutes, 42 seconds like mine. So if if uh you just look at that difference that gives us some hope 19:49 19 minutes, 49 seconds in terms of pricing power and I think the pricing power that when we talk about pricing power what we are 19:57 19 minutes, 57 seconds referring to is we are net I mean we are importing most of our materials to process and reexport. 20:07 20 minutes, 7 seconds So if the duty structures have changed, if the 20:14 20 minutes, 14 seconds Indian companies are again competitive in North America, what will happen and we hope will happen that if pro goes up, 20:24 20 minutes, 24 seconds if naturals go up, if there is a general shift in in the starting raw materials 20:32 20 minutes, 32 seconds that we use for our industry, then we will see an opportunity to have better realizations. Meanwhile, what we do and 20:40 20 minutes, 40 seconds continue to do is improve on our processes and hope to see movement upward. 20:48 20 minutes, 48 seconds Yeah. Just you know because in your opening comments you had mentioned that long if you look at long-term numbers we are happy with our performance but you 20:56 20 minutes, 56 seconds know like we are back to we're almost back to 2018 21:03 21 minutes, 3 seconds FY18 EITA levels. Absolutely and the aroma chemical prices are even lower 21:09 21 minutes, 9 seconds than the 2018 uh results that you are referring to. So we have we feel internally we have bottomed out as far as chemical prices are concerned. 21:21 21 minutes, 21 seconds Can I also probably add cost that you know it's it's not so linear in terms of the functioning of the business. You 21:28 21 minutes, 28 seconds know between 2018 and 2026 we see a completely different oriental where we have a large range of materials. These 21:38 21 minutes, 38 seconds materials are used by our fragrance division. We have internalized our formulated camper. So a lot of things uh 21:46 21 minutes, 46 seconds have been have been are now ready for action when the opportunities come. 21:53 21 minutes, 53 seconds Okay. Okay. That's the plan. Yeah. 21:59 21 minutes, 59 seconds Thank you ladies and gentlemen. If anyone wishes to ask a question, you may press star and one on your touchstone telephone. 22:08 22 minutes, 8 seconds The next question is from the line of Jane, an individual investor. Please go ahead. 22:15 22 minutes, 15 seconds Hello. Hi sir, thank you for the opportunity. Oh, I just wanted to know the outlook on the revenue side of how much growth we can expect by the end of 22:23 22 minutes, 23 seconds this fiscal and also for the next Uh so uh I mean we we always like to be 22:32 22 minutes, 32 seconds uh cautiously optimistic and uh you know uh Shamal in his opening speech has already highlighted in terms of the uh 22:41 22 minutes, 41 seconds sales and in terms of the production the growth that we have achieved. I think these last three months is going to only reiterate and reinforce that growth 22:50 22 minutes, 50 seconds structure. So we are looking at anywhere between 8 to 10% uh growth in in uh in 22:57 22 minutes, 57 seconds sales for this year. Definitely uh not a big fan of projections. So we we are 23:04 23 minutes, 4 seconds pretty solid in terms of our order book for H1 2026. Uh the process the the plan 23:11 23 minutes, 11 seconds is now to execute all these and continue in the same trajectory. 23:22 23 minutes, 22 seconds So we lost the line. We'll move on to the next participant. Okay. 23:28 23 minutes, 28 seconds The next question is from the line of Manasi Gupta, an individual investor. Please go ahead. 23:35 23 minutes, 35 seconds Hi. Uh I just had a small uh question. 23:38 23 minutes, 38 seconds Uh why was there a decline in the margins and when can we expect them to stabilize? 23:45 23 minutes, 45 seconds So uh manus just to if you look at if you look at the Q3 numbers per se you 23:51 23 minutes, 51 seconds know historically Q3 since we have a a a product mix where you have camper which 23:58 23 minutes, 58 seconds is a a very strong seasonal product. Uh Q3 normally tends to be a little softer 24:05 24 minutes, 5 seconds uh than the Q2 which is more of the festive season. So it's not it's not surprising. Point number one. Uh point 24:13 24 minutes, 13 seconds number two, similar seasonality also happens in some of the fragrance part of 24:20 24 minutes, 20 seconds our business and and hence uh and the third element uh is the geopolitical 24:27 24 minutes, 27 seconds situation which was kind of uh restricting the American buyers because of the uncertainty in uh in in the 24:36 24 minutes, 36 seconds tariffs and because of which all the focus on sales was for the global suppliers was on Europe. So even the 24:43 24 minutes, 43 seconds European buyers were slow because they felt that there was too much of material in the market. Having said that, now 24:50 24 minutes, 50 seconds that on both sides of the Atlantic, we have positive news where the EU trade deal will help as well as the tariff 24:58 24 minutes, 58 seconds reduction will uh show increase in sales in America. Both these factors should be 25:05 25 minutes, 5 seconds a good catalyst for the coming quarters to show us increased sales and hence profitable. 25:13 25 minutes, 13 seconds Oh, thank you so much. That's all from my side. Thank you. 25:18 25 minutes, 18 seconds Thank you very much. Participants who wish to ask a question may press star an 25:26 25 minutes, 26 seconds is back from Jai Jane an individual investor please go ahead. Hello. Yeah. 25:34 25 minutes, 34 seconds Hi sir. Thank you again. 25:38 25 minutes, 38 seconds any international partners with big fragrance and aroma players like uh the other competitors are doing. 25:46 25 minutes, 46 seconds Sorry Jay, can you repeat your question please? I mean we lost you in the middle. 25:51 25 minutes, 51 seconds Sure. Sure. I just wanted to know like if Oriental is planning some JVS with big fragrance and aroma players like the peers are doing. 26:01 26 minutes, 1 second I think we're very happy with the way the structure of the business is as on today. I mean most of our uh uh most of 26:08 26 minutes, 8 seconds our plants on the aroma ingredient size are are running at capacity. 26:14 26 minutes, 14 seconds Camper powder sales as well as formulated camper sales look very encouraging. Uh the fragrance division is benefiting from the overall uh 26:23 26 minutes, 23 seconds reduction in the raw material cost. So as of now we stay in the holding pattern and we continue with our business. If there are any opportunities that come in 26:31 26 minutes, 31 seconds the future, we will definitely explore them based on the merit. 26:38 26 minutes, 38 seconds Oh, and one more question sir, any other new products you are planning for the upcoming fiscal. 26:43 26 minutes, 43 seconds So like we have mentioned in our uh initial in our past investor calls 202526 26:50 26 minutes, 50 seconds financial year was a year of consolidation where we are looking at uh where we are looking at our current 26:57 26 minutes, 57 seconds range of products looking at areas where we haven't reached and trying to uh build markets over there uh stabilize 27:05 27 minutes, 5 seconds our mahad infrastructure. So these were our primary uh outline. I mean as a company we have an extremely extremely 27:14 27 minutes, 14 seconds uh strong uh R&D program which is driven by uh by our perfumeary division acting as a beacon for our ingredients 27:22 27 minutes, 22 seconds division. So we have a very strong pipeline which we normally don't talk about as and when the opportunities come 27:29 27 minutes, 29 seconds we will be in a position to a launch them commercially and b inform you guys. 27:38 27 minutes, 38 seconds Sure. Thank you. Thank you. 27:44 27 minutes, 44 seconds Thank you very much. The next question is from the line of Rohit Kumar, an individual investor. Please go ahead. 27:52 27 minutes, 52 seconds Hello. Hello. 27:55 27 minutes, 55 seconds Yeah. Uh hello sir. Can you give me an outlook for the special specialtity or mua industry? 28:04 28 minutes, 4 seconds Hello. 28:05 28 minutes, 5 seconds Yes. So, so again I the specialtity aroma ingredients industry primarily is is extremely broad-based. If you if you 28:13 28 minutes, 13 seconds look at if you look at the overall uh the overall industry that lies in 28:20 28 minutes, 20 seconds this space it it continues to grow. Uh Albat there are also uh many companies who are trying to look at this 28:29 28 minutes, 29 seconds particular part of the fragrance business as an opportunity to grow. 28:34 28 minutes, 34 seconds Hence companies which are able to uh kind of uh uh develop these products 28:40 28 minutes, 40 seconds using some uniqueness in terms of the uh processes or some uniqueness that they get in term on the table in terms of 28:49 28 minutes, 49 seconds chemistry or engineering will continue to be ahead of the others. I mean uh just to answer briefly uh the 28:57 28 minutes, 57 seconds specialtity aroma ingredients business uh continues to grow looks strong but is also crowded. 29:11 29 minutes, 11 seconds Yeah. That is it. Thank you. Thank you. 29:17 29 minutes, 17 seconds Thank you. Participants who wish to ask question may press star and one on the touchstone telephone. The next question 29:24 29 minutes, 24 seconds is from the line of sake from Sagari Capital. Please go ahead. 29:29 29 minutes, 29 seconds Hi, thanks for the question. So one quick question. So while I appreciate the management has been uh you know uh 29:36 29 minutes, 36 seconds conservative in its outlook but somehow even then you know the performance uh and uh you know sorry if I'm being uh 29:43 29 minutes, 43 seconds too critical here but my in my humble opinion the performance still has been uh you know below expectations. So what 29:50 29 minutes, 50 seconds is the now new reset for the IITA because initially we were even hoping that you know 8 to 10% would material light but that even seems to be a 29:59 29 minutes, 59 seconds distant dream and second part is around this mahab thing right initially we thinking that you know 200 would be a good uh days would be a good 30:07 30 minutes, 7 seconds stabilization uh period but even after one year now if I look at the difference between say standalone and conserate since there was a negative contribution 30:15 30 minutes, 15 seconds from overall on the top line but bottom line was anyways I think the losses are uh mounting which is uh you know understandable. So what exactly is the 30:24 30 minutes, 24 seconds issue with Mahad is that uh the product the plant has not stabilized or there are some teasing troubles or with machinery or something because there has 30:33 30 minutes, 33 seconds been no revenues so far. So these would be that would be you know uh my question you know where should we look at aa even 30:42 30 minutes, 42 seconds say at least for the Q4 and then we can take it from there. 30:47 30 minutes, 47 seconds So for a uh sake to answer your first question I think uh a when you are in 30:53 30 minutes, 53 seconds the generic uh ingredient space you know um a lot of a lot of the actions that 31:00 31 minutes you take and lot of the uh projected outcomes that you might have uh you know there there might be a a bit of a gap in 31:09 31 minutes, 9 seconds terms of in terms of achieving them and unlike some other industries where the outcomes are relatively faster 31:17 31 minutes, 17 seconds Especially when you look at the chemical industry and when you look at say something like Mahad which was a very large site which has been taken or 31:25 31 minutes, 25 seconds acquired with future in the plan we we have ended spending money which was little more than what we would have 31:32 31 minutes, 32 seconds spent if we would have just built the Evermos plant in some of our other sites. Point number one. Uh so so I 31:39 31 minutes, 39 seconds think if if you are going to probably look at a a process of and which is what Shamal mentioned in his uh in his speech 31:48 31 minutes, 48 seconds that what we are trying to create is a is a sustainable infrastructure which will continue to uh to churn out 31:57 31 minutes, 57 seconds products for a long period of time. you know especially Q3 especially geopolitical if you just add all these 32:06 32 minutes, 6 seconds factors up and and look at the AITA uh movement I mean a lot of the companies who are in this space also have shown a 32:14 32 minutes, 14 seconds similar kind of a movement so uh so to answer your question Mahad will take its time it's taking a little while longer 32:23 32 minutes, 23 seconds and that's beyond our control what is in our control is to ensure that we continue to move in the positive space 32:30 32 minutes, 30 seconds which we are and we will give you I mean whether it is 8 to 10 whether it is less than 8 where where it will stay 32:38 32 minutes, 38 seconds something which only time will tell we are pretty confident about our business model and we are not looking at it specifically from a quartertoquarter 32:46 32 minutes, 46 seconds perspective but from a long-term sustainability perspective when opportunities are back in the market 32:54 32 minutes, 54 seconds and how is that FMCG initiative doing because see the margins remain on downward trajectory. So when that strategy has it is it really working out 33:03 33 minutes, 3 seconds or it is still subscaled for it to uh add meaningfully or in fact or maybe even it is contributing negatively 33:10 33 minutes, 10 seconds because there might be some advertising spend or distribution expenses. So what because see none of the strategy seems to be working properly that is the 33:17 33 minutes, 17 seconds limited point right but I understand maybe that's a long-term part but still look at even if you look at the last three years now three to four years now 33:26 33 minutes, 26 seconds how when the performance has not really kicked in right and we were uh positioned as such uh specialized people 33:33 33 minutes, 33 seconds who were looking at you know individual chemistric abilities so something uh either the business model has uh you 33:40 33 minutes, 40 seconds know uh has been struggling so can you update on a conc requested for that in the PPT but this time the PP hardly has 33:49 33 minutes, 49 seconds anything uh for us to really connect with the company on the long-term frame it's very uh simple or you know just 33:56 33 minutes, 56 seconds state the uh basic facts so not really as an investor I think there could have been bit more explanation just to you 34:04 34 minutes, 4 seconds know help us understand how our company is doing so anything on the FMCG plan sir sure so I I think I will take your note 34:12 34 minutes, 12 seconds on the presentation side uh you know we had an internal discussion of the subject it's still work in progress point number one point number two I 34:21 34 minutes, 21 seconds think the FMCG uh segment of the business continues to stay stronger uh we all have to be uh we all have to also 34:30 34 minutes, 30 seconds be mindful that the FMCG part of our business is in camper which as a product 34:37 34 minutes, 37 seconds is very much under pressure in terms of the in terms of the profitability hence uh uh you know the the the normal 34:46 34 minutes, 46 seconds outcome that we should see in that piece of our business. We are unfortunately unable to kind of capitalize on it. But 34:55 34 minutes, 55 seconds like I said that we are currently focusing on customer retention. We are focusing on sales maximization and we 35:04 35 minutes, 4 seconds are very confident that the that the opportunities will come. I mean if you look if you look at the past two or three years, the past two or three years 35:12 35 minutes, 12 seconds have been very uh uh asset uh creationheavy 35:19 35 minutes, 19 seconds and and all these assets are now on the ground and so now it's our job to ensure that they get filled up and are sold to 35:26 35 minutes, 26 seconds capacity which is what we are doing. So we are pretty confident if if that has not been translated in our PPP we will make an attempt to probably make a 35:35 35 minutes, 35 seconds better one next time. No, I would prefer to translate into the numbers. I think mainly the PPT part was just to know 35:42 35 minutes, 42 seconds educate us about because that's not that not necessarily a very confidential area and some of the other companies who are 35:50 35 minutes, 50 seconds into that camper branding at least uh give us these are the new launches that we are doing even because even Amazon's or say digital uh say the e-commerce 35:58 35 minutes, 58 seconds companies there's very limited listing of three kind different varieties of camper offerings 36:06 36 minutes, 6 seconds right from room fresheners to you know gifting apps. So the the innovation is very much visible there right in our case. 36:14 36 minutes, 14 seconds So Saki G just to Sak G just to answer your question you know I am not going to discuss my FMCG sales strategy with you 36:22 36 minutes, 22 seconds on the investor call point number one. I think all the positive points that you have said uh we have taken it into into 36:31 36 minutes, 31 seconds a note and we will try to uh definitely place it uh uh in in our presentation. 36:39 36 minutes, 39 seconds If you look at if you look at the fine print of Shamal's speech, it says very clearly that we are currently in a sales 36:46 36 minutes, 46 seconds maximization mode. And if you look at the sales number and if you look at the production number for 9 months or for 36:53 36 minutes, 53 seconds year on year, we are achieving our targets. We are not going to uh uh uh go and uh oversell in a market where the 37:02 37 minutes, 2 seconds pricing is not correct. And hence we are waiting and watching the situation. Everything that goes down has to go up. 37:09 37 minutes, 9 seconds We are already seeing some green shoots because of the uh American market opening up. So as quarters go I can only 37:17 37 minutes, 17 seconds tell you two things will happen and that is what we believe in working. 37:25 37 minutes, 25 seconds Okay s thank you and appreciate for answering your question and apologies if I was hard at anyone. Thank you. Thank you sir. Thank you. 37:33 37 minutes, 33 seconds Thank you. 37:36 37 minutes, 36 seconds Thank you very much sir. Participants who wish to ask a question may press star and one on the touchstone telephone. The next question is a 37:44 37 minutes, 44 seconds follow-up question from Costa Raa from BM SPL. Please go ahead. 37:51 37 minutes, 51 seconds Yeah, thanks again. So uh wanted to understand what is the total capacity at 37:57 37 minutes, 57 seconds Mahar uh which which markets are we going to be uh in terms of what what 38:05 38 minutes, 5 seconds would be the ideal domestic export split that we target at this uh from from 38:11 38 minutes, 11 seconds Mahar and I mean post the m how long do you think we'll take to reach 75 70 75% 38:21 38 minutes, 21 seconds utilization in this facility And then what is the to what is the pla the management's plan for total capacity 38:30 38 minutes, 30 seconds at mahar post I mean what's the broader plan in terms of how big including brownfield etc. 38:38 38 minutes, 38 seconds Uh so kostop I think a lot of these questions have been answered by us very specifically in our previous calls but I 38:46 38 minutes, 46 seconds will probably try to kind of summarize them. The the mahad facility or the mahad site that we have is a 18 acre 38:54 38 minutes, 54 seconds site. So we have currently only implemented phase one but when we had to implement phase one we had to do the 39:02 39 minutes, 2 seconds land development for the whole site and that took up a substantially large chunk of the investment that was done there. 39:09 39 minutes, 9 seconds Point number one. Uh point number two is we are looking at a split of anywhere between 30 to 70 30 local and 70 exports 39:20 39 minutes, 20 seconds uh uh percent in terms of the 250 tons that we have uh kind of earmarked for this particular plant which will help us 39:29 39 minutes, 29 seconds get into the profitable zone. uh you know we we already have reached around I 39:36 39 minutes, 36 seconds mean to to be very honest the the real production in that plant has only started from June 2025 39:44 39 minutes, 44 seconds so in 7 months we are already seeing that the plan is plant is running at anywhere between uh 30 to 35% of its 39:52 39 minutes, 52 seconds capacity and and like I had mentioned in my previous previous call that there is a six month cycle between a sample 40:00 40 minutes submission and getting the approval for commercial shipments and uh assuming that the plant 40:08 40 minutes, 8 seconds started in June and we started our first commercial sampling for the global customers in August and September. I 40:16 40 minutes, 16 seconds think the next two quarters should see Mahad uh uh getting into some level of uh some level of independence. Point 40:25 40 minutes, 25 seconds number one and this is not something which is new for us because between 2018 and 2026 we have had multiple plants in 40:33 40 minutes, 33 seconds very large sites all of them brownfield though where we have commissioned the plants and then within a period of 1,000 40:42 40 minutes, 42 seconds days have moved to the expected uh uh sales level. Now in this case there was 40:48 40 minutes, 48 seconds a slight aberration because of one year lost in the whole geopolitical confusion that's happened to 40:56 40 minutes, 56 seconds yeah exactly exactly so uh that's yeah thanks and just one clarification on camper is 41:03 41 minutes, 3 seconds camper purely domestic our sales or we have some exposure to western markets 41:10 41 minutes, 10 seconds we are we are the world's uh uh to the best of my knowledge we are the world's and I stand corrected Uh we are the world's only US FDA 41:19 41 minutes, 19 seconds approved camper manufacturer. Point number one. We also have uh WH and GMP 41:27 41 minutes, 27 seconds certified camper. So I don't have the exact number of exports but we play a very large role globally in the pain 41:34 41 minutes, 34 seconds management space when it comes to the medical side of the camper business. So your camper business could also be impacted by the US tit situation and 41:44 41 minutes, 44 seconds what's happening in Europe because of so I think what we will have to do is we will have to probably 41:52 41 minutes, 52 seconds lay to rest the whole US tariff situation because I think that's gone so no rearview mirror yes it was impacted to an extent like I said because for a 42:01 42 minutes, 1 second brief period of 6 to 8 months India and China were probably for a US customer placed at the same level of tariffs. 42:10 42 minutes, 10 seconds You know, India always had that advantage of between like Dill said between 25 to 28%. And then suddenly we 42:17 42 minutes, 17 seconds found that we we found that we were at the same level as China. Whereas now when we are scaled back to 18%, we will 42:25 42 minutes, 25 seconds now retain that 20% which is needed especially in the American market because because of the certain 42:32 42 minutes, 32 seconds advantages that a Chinese manufacturer has. So, so I think just to answer your question in a very short way, 42:40 42 minutes, 40 seconds I feel that we have to put the tariffs to rest. We have to now look forward and we have to take the advantage of this situation and grow the business. 42:50 42 minutes, 50 seconds Thank you so much for the detailed answers. Thank you. Thank you. Thank you. Thank you very much, sir. 42:59 42 minutes, 59 seconds Participants who wish to ask a question may press star and one on the touchstone telephone. 43:15 43 minutes, 15 seconds As there are no further questions, I now hand the conference over to Mr. Dhail Bodhani from Oriental Automatics Limited for the closing comments. 43:25 43 minutes, 25 seconds Thank you all for participating in this earnings conference call. I hope we have been able to answer your questions satisfactoryy. If you have any further 43:34 43 minutes, 34 seconds questions or would like to know more about the company, please reach out to I to our IR managers at Valorum Advisers. 43:42 43 minutes, 42 seconds Thank you. 43:44 43 minutes, 44 seconds Thank you on behalf of Valerim. On behalf of Oriental Aromatics Limited, that concludes this conference. Thank you for 43:53 43 minutes, 53 seconds joining us. You may now disconnect