Paradeep Phosphates Ltd — Q4 FY26

Paradeep Phosphates Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=n4NjpdhnVzE Published: 15 hours ago

0:01 1 second Ladies and gentlemen, good day and welcome to Parody Phosphate Limited Q4 FI26 earnings conference call 0:10 10 seconds hosted by Anti Stocking Limited. As a reminder, all participant lines will be in the listen only mode and there'll be 0:17 17 seconds an opportunity for you to ask questions after the presentation concludes. 0:22 22 seconds Should you need assistance during this conference call, please signal an operator by pressing star then zero on your touchstone phone. 0:30 30 seconds Please note that this conference is being recorded. I now hand the conference for Mr. Manish Mahavar from Antique Stock Broking. Thank you and over to you sir. 0:41 41 seconds Yeah. Thanks N. Hello everyone. I'm pleased to host today's call of Parati Posit. We are leadership team 0:48 48 seconds represented by Mr. Rajin Nambyar joint MD and COO. Mr. Hersip Singh president and chief commercial officer. Mr. Bijay 0:56 56 seconds Bispal CFO and Mr. Aluk Sakina head corporate finance and IR on the call. 1:01 1 minute, 1 second Without further ado, I would like to hand over the call to Mr. Nambi for opening comments. Post which we will open the floor for Q&A. Thank you and over to you Raji sir. 1:10 1 minute, 10 seconds Thank you. Thank you Manish. Am I audible properly? Yes sir. 1:16 1 minute, 16 seconds Okay. Uh good morning everyone and welcome to Parati for state limited running call for this quarter ended 1:22 1 minute, 22 seconds March and the financial year 2026. I appreciate your time and interest in our company. I trust you have seen our 1:30 1 minute, 30 seconds earnings and presentations and press release which have been circulated and are available on our websites and stock exchange. Let me give you an overview of 1:38 1 minute, 38 seconds our business. I'm happy to report that PPL has once again delivered a robust financial and operational performance 1:45 1 minute, 45 seconds and best-in-class AITA per ton. Many congratulations to all of you. In the financial year 2026, revenue from 1:52 1 minute, 52 seconds operation increased by 29%age YI to 21,826 1:58 1 minute, 58 seconds crores. EITA rose up by 33%age to 2,259 crores. Profit before tax 2:07 2 minutes, 7 seconds increased by 46%age year yearover year 2,328 and the profit after tax stood at 1,000 crores up by 50%age. 2:17 2 minutes, 17 seconds For the quarter ended March, the company reported total revenue of 4,72 crores with an EITA of 484 2:26 2 minutes, 26 seconds crores with the PBT stood at 202 crores and the profit after tax at 161 cr. 2:34 2 minutes, 34 seconds Production volumes grew by 8% year-over-year and it stood at 36.66 66 2:40 2 minutes, 40 seconds lakh metric ton achieving almost 100% capacity utilization of our existing capacities reflecting our continued 2:48 2 minutes, 48 seconds endeavor for manufacturing excellence sales volume rose up to 42 lakh 42.1 2:55 2 minutes, 55 seconds lakh metric ton with a 10% yi growth was led by strong performance in value added NPK grades NPK as a category including 3:04 3 minutes, 4 seconds TSP grew by 22%age to 24.64 64 laptop. 3:09 3 minutes, 9 seconds Despite global uncertaintity and volatilities in key raw material availability and as well as pricing 3:17 3 minutes, 17 seconds along with the INR depreciation, PPL has been able to deliver a consistent robust performance through high operational 3:24 3 minutes, 24 seconds agility, integrated operation and supply chain sourcing efficiencies. 3:30 3 minutes, 30 seconds Let me also give you an over related to the key projects we have completed in the financial year 2026. During the year we commissioned our sulfuric acid plant 3:38 3 minutes, 38 seconds at Paradiv half a million in capacity and at Mangalore.1 million ton capacity thereby increasing our sulfuric acid 3:45 3 minutes, 45 seconds capacity at company level by6 million t annually an increase of 45%age of the total capacity. The benefit of 3:53 3 minutes, 53 seconds incremental sulfuric acid capacity commission this year will be available to us in financial year 2027 and will aid in improving our quality of earnings 4:02 4 minutes, 2 seconds further. One more important project at Goa. We have completed our energy efficiency project and the improved energy benefits has started coming as we 4:11 4 minutes, 11 seconds speak now. Our plan to double the full size capacity from 0.5 million t to 1 million t is on track and directionally 4:18 4 minutes, 18 seconds we endeavor to make all our sites 100% backward integrated in phosphoric acid. 4:23 4 minutes, 23 seconds The phase one of this expansion that is from 0.5 million to 7 parad is underway and is expected to be commissioned by financial year 2027. 4:34 4 minutes, 34 seconds Sustainability remains core to our operations and during the year we achieved S&P global EG score of 76 and 4:41 4 minutes, 41 seconds ranked top 2% in the global chemical sector. 4:46 4 minutes, 46 seconds Through our expanded distribution and digital outreach, we are now engaging with over 15 million farmers across 18 states, supported by more than a lack 4:55 4 minutes, 55 seconds retailers and 6,800 dealers, and a strong on the ground adversary network. 5:01 5 minutes, 1 second In summary, PPL remain committed for strategic growth and expansion, build economies of scale, and deepen our 5:08 5 minutes, 8 seconds market presence. Let me also give you an outlook for the future. Looking ahead, we remain optimistic about the fertilizer demand, continued government 5:17 5 minutes, 17 seconds trust on soil health and rising shift towards balance and specialized nutrient applications. However, we remain in a 5:24 5 minutes, 24 seconds challenging time amidst the Middle East situation and we have seen spurt in key raw materials particularly ammonia and sulfur. As you are aware, Middle East 5:32 5 minutes, 32 seconds contribute significantly significantly to raw materials particularly ammonia and sulfur which is almost like 70 75%age and most of the shipments across 5:42 5 minutes, 42 seconds the state of homes. While industry stock remains balanced at this point, industry is making considered efforts and empowered committee comprising of 5:50 5 minutes, 50 seconds government and industry officials have been working in close coordination to ensure fertilizer production and raw material sourcing planning. Thanking all 5:59 5 minutes, 59 seconds of you once again and I now open the floor for questions. Thank you. 6:04 6 minutes, 4 seconds Thank you very much. We'll now begin the question and answer session. Anyone who wishes to ask a question may pressed R and one on their touchstone telephone. 6:15 6 minutes, 15 seconds If you wish to remove yourself from the question queue, you may press R and two. 6:20 6 minutes, 20 seconds Participants are requested to use handsets while asking a question. 6:26 6 minutes, 26 seconds Ladies and gentlemen, we will wait for a moment while the question Q assembles. 6:33 6 minutes, 33 seconds Participants, you must press star and one to ask a question. 6:42 6 minutes, 42 seconds The first question is from the line of Deep Sang from Dal Brocha. Please go ahead. 6:48 6 minutes, 48 seconds Uh yeah, thank you so much for my audible first. 6:52 6 minutes, 52 seconds Yes. Can you a little louder? Yeah. So, uh yeah, first of all, thank you so much for taking a question. Um my first 7:00 7 minutes question is regarding the operating cash flow uh which was of course uh which is negative this year around negative,000 7:07 7 minutes, 7 seconds crores. So that was largely driven driven by uh the increase in the inventories uh and receivables right. So 7:15 7 minutes, 15 seconds could you help me understand uh the like the key reasons behind this and uh whether this should normalize you know going forward. 7:24 7 minutes, 24 seconds Yeah. Yeah. Hi uh so thanks for the question. 7:29 7 minutes, 29 seconds Now this is uh yes you know we are quite mindful of that we have a there is a negative you know operating cash cash 7:37 7 minutes, 37 seconds flow but this is mainly on account the increase in the inventory and you know increase the pay receivables and you know subsidy this uh you know increase 7:45 7 minutes, 45 seconds in inventory is mainly to accommodate this increase in the middle prices which is going to unfold in one of 26 27. So 7:55 7 minutes, 55 seconds that's a that's a you know what is the strategy call that you know we should you know we hold this uh additional inventory of around 30 odd days and this 8:05 8 minutes, 5 seconds subsidy receivable is mainly on account of the increase of the DAP prices DAP subsidy and other things which came 8:12 8 minutes, 12 seconds toward the end of the period and all these things whatever is there that will get unwinded in this Q1 and you know we 8:18 8 minutes, 18 seconds will definitely reap the benefit of this uh you know stock holding and So this 8:26 8 minutes, 26 seconds subsidy receable in QI right right okay sir and uh my other 8:34 8 minutes, 34 seconds question is regarding the sub sulfur prices which are uh still higher so uh 8:42 8 minutes, 42 seconds so what could you um give like guidance about that for the future and uh u so 8:50 8 minutes, 50 seconds last I think last one call you also said that you're sourcing domestically from the IOC and uh MRPL which is in 8:58 8 minutes, 58 seconds Bangalore. So can you also give something tell something about that please? 9:06 9 minutes, 6 seconds Sulfur prices remain under stress actually for past few months and we expect actually under the homo situation 9:13 9 minutes, 13 seconds deescalates there won't be a major impact which is coming and supporting us but as you said actually we are taking out 100%age of this sulfur requirement 9:22 9 minutes, 22 seconds from MRPL from Mangalore even with the increased capacity the recent 300 tons plant we commissioned is currently 9:28 9 minutes, 28 seconds running at almost 400 tons and the parade almost 20 30% of the sulfur equipment comes from the IO parity. So 9:36 9 minutes, 36 seconds put together domestically we are poised towards the comfort position but yes internationally we remain under such conditions so far 9:44 9 minutes, 44 seconds right uh and my last question is regarding the uh the future guidance if you can so the company is I think they 9:51 9 minutes, 51 seconds you're looking for uh you're increasing the share in getting higher margin NPK fertilizers right um and of course the 9:59 9 minutes, 59 seconds backward integration as well so uh in the medium-term trajectory so what would be the abitar per ton I think for this 10:06 10 minutes, 6 seconds FI26 F26 was around 5,100 uh per ton, right? So what could be the u uh you 10:15 10 minutes, 15 seconds know so yeah so currently the spread was 5,300 I think 10:22 10 minutes, 22 seconds uh and uh as we deepen the backward integration across process and sulfuric acid the the spread is going to increase 10:30 10 minutes, 30 seconds but we also have to take care of the global situation that is in place. So it will be hard for us to give you a specific number for FI27 but uh given 10:39 10 minutes, 39 seconds the supply chain linkages and the backward integration that we have the backward integration benefit should flow in F27. 10:49 10 minutes, 49 seconds That's all. 10:52 10 minutes, 52 seconds Thank you. A request to all the participants kindly limit yourself to two per participant. 11:00 11 minutes Next question is from the line of Prashan Bani. Please go ahead. Yeah, thank you for the opportunity. 11:07 11 minutes, 7 seconds Sir, how are you placed with regard to raw material availability for Q1? Um, how much of your requirement you have 11:14 11 minutes, 14 seconds already bought pre-war and uh how much are you having to buy at higher prices which are prevailing right now. 11:24 11 minutes, 24 seconds We remain optimistic for the Q1 because we covered most of the Q1 and Q2 the situation is unfolding. It 11:32 11 minutes, 32 seconds will be little difficult for us to give a direct answer for the rest of beyond Q1 I think 11:39 11 minutes, 39 seconds and and I think industry is actively engaging with government on this aspect particularly for Q2 and almost you know 11:46 11 minutes, 46 seconds daily discussions being being discussed with secretary fertilizers and MDs of the major companies. So I think all the stakeholders are involved and we should 11:54 11 minutes, 54 seconds get some some some clarity very soon. Uh but as far as as Mr. Nambia said Q1 is is adequately covered for Q2. The 12:02 12 minutes, 2 seconds company as well as the industry is working with the government to have have more visibility. 12:08 12 minutes, 8 seconds Sure. Uh Mr. Nambas can you share some update on our cape which is underway across granulation for acid and sulfuric acid. 12:18 12 minutes, 18 seconds Uh sulfuric acid if you look at it actually two projects were completed last year that 5.16 12:26 12 minutes, 26 seconds all together. The next sulfuric acid project is actually we are in the stage where the commercial offers are coming now. We should be able to take a call in 12:35 12 minutes, 35 seconds terms of our proposed 3,000 tons per day sulfuric acid by within this quarter at least. Uh and for also it'll be coupled 12:43 12 minutes, 43 seconds with both together. So our in spite of all these challenges coming on the global scenario our commitment for our capex remain same. 12:53 12 minutes, 53 seconds Currently it would be in design stage or uh we have finalized vendors for uh construction. 13:00 13 minutes We are in the final finalizing stage for the vendors. We have almost received the codes and there is separate team working on it. 13:09 13 minutes, 9 seconds How much would be the capex for FI27 that we are planning? 13:16 13 minutes, 16 seconds FI normal capex will be around you know 600 cr which is completely we have you 13:23 13 minutes, 23 seconds know the financial closure has been done so this is normal capex and you know something of this uh all the major 13:30 13 minutes, 30 seconds projects or some outflow will be included there yes and just for f 27 the major projects that we expect to close this year will 13:38 13 minutes, 38 seconds be expansion of process rate from half a million turn to 7 so there's an incremental 200,000 concept processes 13:46 13 minutes, 46 seconds that is expected in FY27 and the key other project is some key bottlenecking at parab. So these are the incremental I 13:54 13 minutes, 54 seconds would say the the the cash flows that you expected to receive from the project that is getting completed and all other major capexes as we have said earlier is is likely to be done by FI 28 and FI 29. 14:07 14 minutes, 7 seconds Sure I'll rejoin the queue. Thank you. 14:13 14 minutes, 13 seconds Next question is from line of VU from anti stock broking. Please go ahead. 14:18 14 minutes, 18 seconds Hello. Hi. Uh uh uh few questions. Uh first one is is uh regarding the gua plant energy efficiency. So uh the guant 14:25 14 minutes, 25 seconds energy efficiency project that we have completed in Q4 or in the Q3. 14:35 14 minutes, 35 seconds So can you repeat the question? 14:38 14 minutes, 38 seconds Yeah. So the Goa plant energy efficiency project so that we have completed in Q4 or earlier Q4. 14:46 14 minutes, 46 seconds No this Q4 you have we have taken the shutdown actually on the month of February and completed in uh the last week of April. 14:57 14 minutes, 57 seconds Okay understood. So sir uh I think I think as per your your your earlier guidance I think 6.4 4 to 6.1 G decal 15:04 15 minutes, 4 seconds kind of energy everything that we like will be in Goa plant. So with that how much every turn improvement that we can expect uh from going forward. 15:16 15 minutes, 16 seconds So look you know the guidance or we have given that you know from 6.4 to 6.1 that energy efficiency will accur to us. So 15:24 15 minutes, 24 seconds in current gas price scenario it will be around 1,00 2,200 rupees per ton per year at a level. 15:36 15 minutes, 36 seconds Understood and sir uh in terms of the uh the uh NCFL UDA plant I think there was 15:44 15 minutes, 44 seconds some issues uh uh like there was some policy issues uh due to which we are we were expecting that a pattern to be 15:51 15 minutes, 51 seconds lower. So uh if you could indicate the department for the uh NCFL plant as of now maybe in the H2 of 26. 16:02 16 minutes, 2 seconds No look you know earlier to this policies you know changed uh this there is a reduction in this norm benchmark 16:09 16 minutes, 9 seconds you know energy norm from 7.3 to 6.5. So that uh that impacted the emitter by 16:17 16 minutes, 17 seconds around 3,000 rupees per ton and current level it will be around 6,000 rupees 6 16:24 16 minutes, 24 seconds to 6500 rupees and uh this yeah this is a scenario as of now just to add you 16:31 16 minutes, 31 seconds know there was no there was no policy change uh that was an incentive given uh because we switched over from NAFTA to gas and that that has expired so there's 16:39 16 minutes, 39 seconds no as far as policy change it was an investment benefit that was accured to us for a period of Yeah, which has done so, so there is no major policy shift as far as that is concerned. 16:50 16 minutes, 50 seconds Okay. So, so, so the margin that we we used to you know get uh roughly around 6,000 rupees a turn for the MCF URA. So, 16:58 16 minutes, 58 seconds that we are continue to we are getting till now, right? 17:03 17 minutes, 3 seconds Yes. And it is also a function of the global gas prices. The margins in URA is a function of the global gas prices. 17:09 17 minutes, 9 seconds And also sir uh we have we have expanded sulfuric acid capacity at the MCL plant. 17:14 17 minutes, 14 seconds I think that might help in terms of getting the higher margin for the ura plant because of the power generation from the sulfuric acid plant. So how we 17:22 17 minutes, 22 seconds can look at that scenario in 27 we are expected actually we'll be using 17:29 17 minutes, 29 seconds this from the sulfuric acid plant to the other one. So at least uh almost 8,000 rupees per ton could be the impact which is on a favorable side. 17:40 17 minutes, 40 seconds Understood. And sir uh one one uh last question uh in terms of the overall overall uh capacity for the gua plant 17:48 17 minutes, 48 seconds for this year and for the MCFL plant for this year for the uh NPK and for the like ura and the nona both if you could 17:56 17 minutes, 56 seconds bifocate uh those two numbers for ga 26. 18:01 18 minutes, 1 second No, we have produced around four lakh t of uria at Goa and around seven lakh 18:07 18 minutes, 7 seconds turn of NPC and in mango same similar to four lakh t of ura and you know 3 and a half lakh turn of both the plants have 18:17 18 minutes, 17 seconds actually completed the ra quantity and afterwards only we went for the goa energy saving project and in terms of 18:24 18 minutes, 24 seconds npk actually goa is almost like 7 to8 in between and Mangalore is almost a capacity of 14. So put together both 18:33 18 minutes, 33 seconds the plans are run wonderfully well in terms of capacity utilization. 18:38 18 minutes, 38 seconds Understood sir and and and sir one last things uh I think earlier we have mentioned the debottling of granuation at disha plant roughly around two lakh 18:46 18 minutes, 46 seconds so that is that might come in f27 is that correct understanding it'll be in 2027 next this current year 18:54 18 minutes, 54 seconds it will come okay so the so the incremental volume that can we expect from this year or maybe from the next Yeah. 19:10 19 minutes, 10 seconds So you should expect to this in second half uh the incremental volumes coming into the company. 19:16 19 minutes, 16 seconds Okay. Okay. Okay. Thank you. Thanks. Uh thanks for clarifying all the thanks. All the best. 19:22 19 minutes, 22 seconds Thank you. A request to all the participants kindly limit yourself to two questions per participant. 19:29 19 minutes, 29 seconds Next question is from the line of var from SIMPL. Please go ahead. Yeah, just a couple of questions. Uh first is 19:36 19 minutes, 36 seconds uh if I look at Q4 and for the year gone by, what will be the delta per turn on the manufactured uh uh you know volumes? 19:44 19 minutes, 44 seconds Uh BAP NPK. 19:47 19 minutes, 47 seconds Yeah, you know we give the you know product know blended margin you know a bit margin that is around 5,000 7 for the Q4 it is 5,700. 19:59 19 minutes, 59 seconds In the whole year it is a 5,300. 20:03 20 minutes, 3 seconds Yeah. But for the manufacturing business any indication you can give how much would that be? 20:08 20 minutes, 8 seconds Yeah. We we give it at a blended company level and obviously traded product will be at a at a lower number. 20:15 20 minutes, 15 seconds Okay. But this will be purely the DAP NBK basis right not in the URA please. 20:21 20 minutes, 21 seconds So this is at a company level. So it includes everything all put together. 20:26 20 minutes, 26 seconds Okay. Uh second question is now what is the current level of uh backward integration post the sulfuric acid and you know the first asset we have and on 20:35 20 minutes, 35 seconds the expansion of force asset and you know other initiatives what will be the background integration you know a year or two down the line 20:44 20 minutes, 44 seconds it is around 80 90% almost like fully integrated actually so par expansion which is coming from 0.5 20:52 20 minutes, 52 seconds to 7 should cover most of the other two units requirement for process also 20:59 20 minutes, 59 seconds and for sulfuric acid are we sulfuric acid for acid is 100% 21:06 21 minutes, 6 seconds integrated if you take up you know n20 product then there will be some you know requirement you know you have to import around 10%. But in Mangalore it is 100% backward integrated salary. 21:19 21 minutes, 19 seconds Okay. Uh just one last question. Uh I mean now the subsidy rates are out by the government. Uh uh with the way the key rate prices are behaving right now. 21:29 21 minutes, 29 seconds How should one understand spreads for us in the first half? I mean do you think there's more flexibility in terms of adjusting the market prices to cover for 21:38 21 minutes, 38 seconds the raw material under recovery or you know where does the Raja focus lie any color you can give 21:47 21 minutes, 47 seconds just to share with you we retain our price leadership as market is concerned so we've taken a price increase in NPK 21:55 21 minutes, 55 seconds however we also working very closely with the government because uh the entire price increase uh cannot be passed on to the customers also uh 22:04 22 minutes, 4 seconds because the sulfur ammonia prices are uh extremely high in the current situation and we expect the government also to be 22:12 22 minutes, 12 seconds equally supportive on that and at the same time we also having a strategy where there's clarity and margin like focusing on products like DAP uh so 22:20 22 minutes, 20 seconds which also ensures that we maintain our overall profitability so that's how we're doing it but in terms of NPKs we we we are a leader in the market in 22:29 22 minutes, 29 seconds terms of our market valuation also Okay, understood. But generally uh there's no issue in the availability of 22:38 22 minutes, 38 seconds raw material. It's just the prices are at abnormal levels. So in terms of curry, we are well covered in the supplies. 22:47 22 minutes, 47 seconds Yeah, karif I think we are confident and optimistic about it. But we are making our end to CH for future tips and faster. 22:57 22 minutes, 57 seconds That's I'll come back in. Thank you. 23:01 23 minutes, 1 second Thank you participants. You may press star and one to ask a question. Next question is from the line of Kiran Nai from Modi Finap. Please go ahead. 23:12 23 minutes, 12 seconds Thank you for giving me an opportunity sir. Uh sir if I'm correct as per the presentation shown on the uh BC India on the website. Hello can you hear sir? 23:25 23 minutes, 25 seconds Yeah yeah we can hear. Go ahead. 23:26 23 minutes, 26 seconds Yeah yeah yeah. So the beta margin for the full year was 8.4. 4 am I right 23:35 23 minutes, 35 seconds 8.4 what uh percentage a beta margin shown for the 26th uh financial year 23:44 23 minutes, 44 seconds or is or was it 10.03 03 10.3% AIA margin is 11% for the year 23:51 23 minutes, 51 seconds 11% 11% for the year. So can we expect sir uh because the conditions are not good geopolitically so can we expect for 25 for 27 aida margin 10%. 24:04 24 minutes, 4 seconds See I think the percentage is not the right metrics for us as an industry. We we evaluate the industry as aida per 24:11 24 minutes, 11 seconds turn. Uh so I think the right matrix for us is to look at as aida per turn. Uh given the situation we are in today of the middle east uh we will not be able 24:20 24 minutes, 20 seconds to give you a right abida for turn at this moment of time. But I think with the kind of supply side linkages that we have and the marketplace penetration we 24:27 24 minutes, 27 seconds have we should be able to give to end the year with a good uh margins. 24:33 24 minutes, 33 seconds Uh revenue expectation for 27. 24:38 24 minutes, 38 seconds What is that? Revenue expectation for we will still hold ourselves because let things settle and we will come back. 24:46 24 minutes, 46 seconds Actually situation is quite volatile and you know see our endeavor is to get the raw materials to produce. So if we are able 24:54 24 minutes, 54 seconds to do that then definitely we'll see a growth. 24:57 24 minutes, 57 seconds See just to kind of give you a perspective from the market side. See uh we we had opening stocks we have had a good visibility on Khar. So we will 25:05 25 minutes, 5 seconds continue to maintain our leadership and hopefully by another two to three months we should get a clarity on the Rabi supply chain but we we are very 25:13 25 minutes, 13 seconds confident as far as market leadership is concerned. So I don't see any concern except for very unexceptional situations where the value chain is impacted. 25:24 25 minutes, 24 seconds Thank you. Kiran may I request to come back for a follow-up question please? Yeah. Yeah, thank you. 25:31 25 minutes, 31 seconds Thank you. 25:33 25 minutes, 33 seconds Next question is from the line of Sep Mukharji from SKP Securities. Please go ahead. 25:39 25 minutes, 39 seconds Yes sir. Uh thank you for taking my question sir. Uh sir my first question is like what was the N20 volume in the total NPK mix for Q4 and FI26. 25:50 25 minutes, 50 seconds Yeah good morning. So N20 volume which we did was 14.5 lakh metric t. Okay. and 25:56 25 minutes, 56 seconds uh we grew almost 9% over last year and we are among the top uh two three companies today in the NPK volumes 26:06 26 minutes, 6 seconds sir for N20 uh this is for N20 sir this is for N20 what I'm talking of 14.5 26:14 26 minutes, 14 seconds lakh metric t okay okay sir and for traded products uh what were the volumes for tsp and mop 26:22 26 minutes, 22 seconds sir uh tsp was around 2.8 8 lakh metric ton and DP was around uh another 2.2 lakh 26:30 26 minutes, 30 seconds metric t overall uh import portfolio was around6 million tons.6 6 million tons officer. And what was the gas cost sir for the quarter? 26:42 26 minutes, 42 seconds What is that? 26:43 26 minutes, 43 seconds Cost around $14. $14 for MMBTU. 26:49 26 minutes, 49 seconds And what is the current uh cap cost sir? 26:53 26 minutes, 53 seconds It has slightly moved up you know it is now around $18 to $19 because of this uh 26:59 26 minutes, 59 seconds disturbance in the supply. But you know I can tell you that this entire URA energy cost is a pass through. So 27:08 27 minutes, 8 seconds whatever the incre you know increase in the gas cost you know that will be passed through that will not impact the uh this you know bottom line of the URA. 27:17 27 minutes, 17 seconds Absolutely. 27:17 27 minutes, 17 seconds In fact uh in fact it is helpful because uh what Europe is is the energy efficiency. Yeah. 27:24 27 minutes, 24 seconds Yes. Yes. Uh and uh out of the new project cost sir uh that 36600 cr rupees 27:32 27 minutes, 32 seconds uh so what was your spent in FI26 and uh what what is uh what your planning for FI27 is spent. 27:41 27 minutes, 41 seconds FI26 actually most of things were in the engineering stages the actual cash flow will start happening 27 and we expect 600 cr will be spent in 27. 27:52 27 minutes, 52 seconds Thank you. Sep may I request to come back for a follow-up question please? Yes. Thank you. 27:58 27 minutes, 58 seconds Thank you. A request to all the participants. Kindly limit yourself to two questions per participant. 28:04 28 minutes, 4 seconds Next question is from Lion of Ammon from Unifi Capital. Please go ahead. 28:10 28 minutes, 10 seconds Yeah, thanks for the opportunity. Uh you made few remarks around government support and your communication with government. uh can you elaborate a bit I 28:19 28 minutes, 19 seconds mean what sort of measures we are expecting is it uh certain kind of an add subsidy increases or uh support in 28:29 28 minutes, 29 seconds some other form if you can just expand on it how you are looking at things as of today I'm asking this question considering the subsidy height for the 28:38 28 minutes, 38 seconds season has been just 10%age while the raw material prices are up uh significantly yeah yeah good good morning to you uh see 28:46 28 minutes, 46 seconds Just to kind of give you an overview, government's policy as far as DP and TSP is concerned, government has a clear 28:54 28 minutes, 54 seconds advantage disadvantage as a policy which factors in the uh increase in the import prices and the the price of the product. 29:01 29 minutes, 1 second So to that extent DP gets adjusted and your bottom line gets uh kind of adjusted positively with any price 29:09 29 minutes, 9 seconds change and we are also working closely with the government as far as the sulfur and ammonia tail prices are concerned. So that that's how we look at it. 29:21 29 minutes, 21 seconds Okay. But in terms of availability you don't see any challenge even if you have to buy at current prices for quarter two. 29:30 29 minutes, 30 seconds So, so the way we are looking at it is see we we are uh it's not that there is no challenge we have ensured that more 29:37 29 minutes, 37 seconds or less we covered our Q1 and and we securing our Q2 but you understand there is a lot of sulfur which flows through 29:45 29 minutes, 45 seconds the gulf of hormones. Okay. So while we equally balanced because a lot of our sulfur is sourced from the refineries within India. So there's a good balance 29:53 29 minutes, 53 seconds and hopefully uh if this sitution resolves within next few uh weeks then I think uh the value chain should be 30:00 30 minutes streamlined that that's how we look at it and to add on to that you know we are now more focusing on low sulfur grade 30:07 30 minutes, 7 seconds products which is uh you know increasing DAP and other things where there is a clarity of that you know policy and you 30:14 30 minutes, 14 seconds know so we are we are trying to minimize our sulfur requirement you Sure. 30:23 30 minutes, 23 seconds Thank you so much. 30:25 30 minutes, 25 seconds Thank you. Participants, you may press star and one to ask the question. 30:34 30 minutes, 34 seconds Next question is from the man of Aman Kotari from Aquaras Investments. Please go ahead. 30:40 30 minutes, 40 seconds Uh hello everyone. Firstly, congratulations sir on a wonderful set of results. Sir I think you covered the point of the inventory increase that we 30:49 30 minutes, 49 seconds have done that deliberately for let's say meeting Q1. Can you tell how much inventory additional we are keeping a 30:55 30 minutes, 55 seconds stop off as against to what we do on a normal year? 31:02 31 minutes, 2 seconds No this talk increased in the raw material stage you know around another 30 days it is there you know so to take care of this uh production for the Q1 31:11 31 minutes, 11 seconds and uh uh in fact that will benefit us you know looking at this you knowward movement of the raw metal prices 31:20 31 minutes, 20 seconds got it okay and u on the balance sheet side to I think for us the total gross 31:28 31 minutes, 28 seconds state has increased to 6,800 and As you mentioned a large part of this is again subsidy receivable that's 31:35 31 minutes, 35 seconds has to happen. So do you think that let's say barring Q1 we could have a problem in the timing of the subsidy and 31:43 31 minutes, 43 seconds that could lead us to you know raising a possibility of short-term working capital 31:50 31 minutes, 50 seconds because the government is already working capital you know we have adequate limit you know which we have 31:58 31 minutes, 58 seconds got it only thing that the money what is stuck in this subsidy and inventory that will wind up in this quarter so I don't 32:06 32 minutes, 6 seconds see that there is a you know this level goes up given from here uh in all probability should come down. 32:14 32 minutes, 14 seconds So once this pause sale happen the subsidy start flowing and this uh inventory goes out the main consumption 32:22 32 minutes, 22 seconds happens in June and July. So this this will definitely reduce you know this borrowing level you know what are the working capital borrowing level that will reduce. 32:32 32 minutes, 32 seconds Got it. 32:34 32 minutes, 34 seconds And uh in terms of the uh NPK leadership that we have established s we are almost growing on a company level almost as 22% 32:43 32 minutes, 43 seconds among the top three companies. So do you think that I think in the last call also you had mentioned that maybe 50% of the 32:50 32 minutes, 50 seconds market is still NPK but that is 45%. So do you see that push by the government also happening and you also seeing an 32:58 32 minutes, 58 seconds increase in farming adopting to nitrogen MPK products. 33:03 33 minutes, 3 seconds Uh uh good morning. Is there two dimensions? So first is on the leadership uh so just to give you a perspective let's say the industry 33:10 33 minutes, 10 seconds growth of uh NPK standalone this year was minus 1%. 33:16 33 minutes, 16 seconds And your company grew by 10%. So, so in a situation where there was a degrowth, we grew and if you include the TSP plus 33:24 33 minutes, 24 seconds NTK, the industry growth was around 1.6%, we grew by 15%. So, that's the direction that we consciously taken to provide balance nutrition. 33:34 33 minutes, 34 seconds So, that's that's a long-term strategy we continue to build up. However, in the current year, you could have a mixed uh this thing because of constraints of 33:43 33 minutes, 43 seconds sulfur and other products. So the strategy might be more uh tilted to ensure that uh the the phosphate and 33:51 33 minutes, 51 seconds nitrogen also is secured so that the food security is maintained. So you will see a government putting a lot of emphasis on ura and DAP and of course 34:00 34 minutes complexes it continues but uh be conscious of fact that the complexes for the farmer today are priced quite higher 34:07 34 minutes, 7 seconds compared to the DAP and DAP. H so if the prices are higher in this currency, do you think farmers would want to switch 34:16 34 minutes, 16 seconds to a NPK kind of product? I mean I can understand the nutrient balance that they would want to have. But 34:23 34 minutes, 23 seconds no, so it's a natural preference. The first preference for a farmer would be to typically go for products like ura and DAP. Okay. So that that's what would 34:32 34 minutes, 32 seconds happen. uh but like I was sharing with you with the last year also uh with the industry where uh in NPK the industry 34:40 34 minutes, 40 seconds didn't grow but we grew by uh more than 10%. So from that perspective once you 34:46 34 minutes, 46 seconds convey the benefits of the entire nutrition to the farmers you will see an uptake happening but in the current situation where with too much of 34:56 34 minutes, 56 seconds variance between the NP cap and DP you you would see a balanced kind of growth in both the segments but the overall 35:04 35 minutes, 4 seconds phosphotic segment remains strong that that's how I look at it. 35:09 35 minutes, 9 seconds Thank you Aman. May I request you to come back for a follow-up question? Sure. Sure. Thank you. 35:16 35 minutes, 16 seconds Participants, you may press star and one to ask a question. Next question is from line of Sharia from Capital Capital Advisors. Please go ahead. 35:30 35 minutes, 30 seconds Shria, can you hear us? 35:35 35 minutes, 35 seconds Shri, may I request to unmute your line and proceed with your question? 35:43 35 minutes, 43 seconds Due to no response, we move on to the next participant. 35:48 35 minutes, 48 seconds Next question is from the line of Sorav Gupta from Madyhar Tigur products. Please go ahead. 35:57 35 minutes, 57 seconds Good morning. Uh first of all, hello. Am I audible? Yes. Yes. Go ahead. 36:09 36 minutes, 9 seconds Go ahead please. The line for the participant dropped. 36:14 36 minutes, 14 seconds Ladies and gentlemen, you may press star and one to ask the question. 36:19 36 minutes, 19 seconds Next followup question is from the line of Prashant Bani. Please go ahead. 36:26 36 minutes, 26 seconds So how much is the false asset volume for Q4 as well as for FI26? 36:34 36 minutes, 34 seconds No, you we produce around 1.25 lakh metric ton in Q4 and year basis 5 lakh 36:42 36 minutes, 42 seconds 1,000 five lakh plus and for sulfuric acid for Q4 and full years 36:53 36 minutes, 53 seconds all together with the whole year and you know we produce around 1.8 8 million 1.75. Okay. 37:03 37 minutes, 3 seconds And for Q4 just a second. 37:11 37 minutes, 11 seconds Yes. So Q is this first? 37:18 37 minutes, 18 seconds Yes. 4 lakh 10,000 sir. uh how much is the subsidy that we received in uh Q4 and how much is the outstanding right now? 37:30 37 minutes, 30 seconds We have received in Q4 2,600 o and the outstanding is 37:37 37 minutes, 37 seconds the subsidies 3,00 one second 3,800 37:44 37 minutes, 44 seconds 3,800 okay uh Mr. Mr. Hep 37:51 37 minutes, 51 seconds you know channel stock right uh Mr. HDEP uh out of the total 37:58 37 minutes, 58 seconds trading volume for Q4 how much is DAB and TSP 38:04 38 minutes, 4 seconds DAB and TSP right so uh uh DP was 2.2 2 million tons 38:12 38 minutes, 12 seconds that is okay quarter also we'll tell you the number uh just give me a minute Q4 uh 38:20 38 minutes, 20 seconds number for DAP was uh DAP ported was.3 38:28 38 minutes, 28 seconds million tons and tsp was4 million tons for the Q4 yeah 38:37 38 minutes, 37 seconds three lakh and four lakh tons three lakh 3 and 04 million. Yes. Okay. 38:45 38 minutes, 45 seconds Yeah. Sorry. 3 lakh and 4 lakh metric. Okay. 30,000 and 40,000. 30,000 40,000. Yeah. 38:53 38 minutes, 53 seconds And now is the pos stock at the end of Q4 for DAP and NPK. 39:00 39 minutes Uh total stock is around uh 8 lakh 30,000. And you want to understand the DP stocks? 39:09 39 minutes, 9 seconds No. uh for uh total com phosphatics DAP plus NPK 39:15 39 minutes, 15 seconds okay uh DAP is around uh at the end was 1.28 28 lakh metric t and npk was around uh 6 lakh metric t 5.95. 39:28 39 minutes, 28 seconds Okay, thank you so much. Thank you. 39:38 39 minutes, 38 seconds Next followup question is from line of Aman Kotari from Aquaras Investments. Please go ahead. 39:44 39 minutes, 44 seconds Sure. So is there any production guidance that we can currently factor in at this time of the year? 39:52 39 minutes, 52 seconds Can you repeat it? Production guidance. 39:55 39 minutes, 55 seconds Any production guidance that we can give at this time of the year? I mean I know there's uncertainty but regards let's say first quarter and then you probably something for the year. 40:07 40 minutes, 7 seconds Basically there are two anxieties is coming one is ammonia side and second is in terms of the sulfur and sulfate. 40:14 40 minutes, 14 seconds the production uh volumes remains almost like steady to large extent at least 70 to 80% for us in the Q1 but we are just 40:23 40 minutes, 23 seconds slightly shifting from these two intensive products ammonia intensive as well as from the sulfur intensive products and wherever the policy clarity 40:31 40 minutes, 31 seconds exist so in terms of the running of the plants as you all the three plants are running uh to large extent that we are 40:39 40 minutes, 39 seconds covered till end of June we don't sign major anxieties But since we produce around five to six different kinds of products, we have 40:48 40 minutes, 48 seconds access actually whichever is shooting to the market as well as in terms of the policy. 40:53 40 minutes, 53 seconds So all the three plants are operating we can say about 90%. Not exactly uh we can say around 80%age. 41:03 41 minutes, 3 seconds Okay. 41:04 41 minutes, 4 seconds And this is primarily because of the raw material constraints. Yes. Yes. 41:11 41 minutes, 11 seconds Okay. Got it. And uh sort of the price of DAP that we are seeing at current trades uh I think this has happened 41:19 41 minutes, 19 seconds before also in a previous year when they deliberately uh reduce the volumes of DAP or trading. Uh if you see the prices 41:27 41 minutes, 27 seconds elevated let's say at a similar level for the next couple of quarters. Do you think this is a deliberate step that we are going to again take? 41:38 41 minutes, 38 seconds See we we're not getting into the deliberate step. Uh the way we look at it is the government has put uh kind of a structure where we doing a buying as a 41:48 41 minutes, 48 seconds industry consortium. Okay. So so there there has been a very very transparent and effective process as a country that we've done so that instead of people taking spot positions individually. 41:58 41 minutes, 58 seconds Okay. So we have kind of asked the people to vote and we got the L1 prizes discovered. So you're right these are 42:06 42 minutes, 6 seconds exceptionally high prices both for ura and how the the view from the government side is that is important 42:15 42 minutes, 15 seconds that the farmers get uh their phosphates and nitrogen for the cropping season. So that that's how we look at it and it is 42:24 42 minutes, 24 seconds important that we maintain a certain strategic inventory as a country so that we get a better bargaining position as 42:31 42 minutes, 31 seconds we go into the uh subsequent uh season that that strengthens our position that way. 42:37 42 minutes, 37 seconds Okay. So the two tenders that India put I think at those elevated prices that was a industry level procurement that was done right. 42:46 42 minutes, 46 seconds Yeah. So it is not IPL tender alone. It is IPR on behalf of a consortium of five six companies. Okay. The large cross 42:53 42 minutes, 53 seconds company. We are a part of that and we had a good offer availability and we 43:00 43 minutes have only picked up uh the the quantity that L1 prices. 43:09 43 minutes, 9 seconds Okay. Okay. 43:11 43 minutes, 11 seconds And uh so I think in a capex plan that also that we have I think debottlinking would almost contribute to us.3 million 43:20 43 minutes, 20 seconds tons. So I think you already mentioned that 2 is something we're targeting for this year. So I'm assuming that 0.1 will be targeted for FI28. 43:30 43 minutes, 30 seconds Yes. Yes. 43:32 43 minutes, 32 seconds And that will again be at the parity plant. 43:36 43 minutes, 36 seconds Yes. Partly it could be coming from angle but uh both both the units will have some growth coming out. 43:47 43 minutes, 47 seconds Okay. Thank you. 43:50 43 minutes, 50 seconds And just one last question to add on u s this is an if scenario but considering that we have now seen an import duty 43:57 43 minutes, 57 seconds increase or some deliberate steps that government is having to take to you know uh reduce the impact that it is having. 44:05 44 minutes, 5 seconds So do you think that if this situation is elevated and there are steps that since you're having continued 44:12 44 minutes, 12 seconds discussions with the industry is there a possibility that fertilizer subsidies could get delayed at these elevated prices? 44:21 44 minutes, 21 seconds No see look you know this ammonia and sulfur prices there is no person in fact 44:27 44 minutes, 27 seconds you know very recently. So with this uh the now the harip is coming in and the type of stock built up and the sales is 44:36 44 minutes, 36 seconds consumption is happening we don't see that the subsidy will be delayed as of now what we had now we have got the 44:42 44 minutes, 42 seconds subsidy up to every end and you know with the kind of discussion that are happening on daily basis with the government and industry you know 44:50 44 minutes, 50 seconds government is very is very protective of the industry because they believe that manufacturing has to go to ensure food security so there's no reason for us to 44:59 44 minutes, 59 seconds have subsidially delayed and it is adequately budgeted. You know they have budget support for the 45:05 45 minutes, 5 seconds subsidy. So we don't see any reason for to delay the subsidy. 45:13 45 minutes, 13 seconds Thank you. 45:16 45 minutes, 16 seconds Next question is from the line of Ank from Steve Trade Capital. Please go ahead. 45:23 45 minutes, 23 seconds Yeah. Yes. 45:28 45 minutes, 28 seconds Yeah. So I just wanted to know uh how much percentage of the raw materials are imported I mean in terms of sulfate uh etc. 45:39 45 minutes, 39 seconds It's not very clear what percentage of imported. 45:46 45 minutes, 46 seconds Yeah, correct. Percentage of your own are currently imported. I mean, state of 45:54 45 minutes, 54 seconds see we get you know almost entire thing of ammonia imported earlier from state of almost now it has been shifted to 46:01 46 minutes, 1 second east coast. So we are getting mostly now from the south southeast Asian 46:08 46 minutes, 8 seconds countries. this ammonia as well as sulfur is concerned. Yes, it was through state of hormones but now that is also 46:16 46 minutes, 16 seconds impacted. So if you see large extent actually diversification happen in ammonia sa remains a critical resource 46:24 46 minutes, 24 seconds for us actually to bother us but I'm sure at least the kind of tie up all industry as well as government is 46:32 46 minutes, 32 seconds supporting us to make we will see at least better days to coming. So just to kind of update you, we also so the sourcing of sulfur that we're doing 46:41 46 minutes, 41 seconds within the country. So that partially supplements and like for the finished fertilizers, there is a consortium which is working also on on sulfur and ammonia 46:50 46 minutes, 50 seconds securing sulfur ammonia in a transparent way. So, so that is that that also has been kind of we've already declared that 46:57 46 minutes, 57 seconds as industry and we hopeful of securing that rather one of the vessels that we secured for sulfur came by a state of commerce. 47:09 47 minutes, 9 seconds Okay. And so considering the you know uh commissioning of the self plant. So uh I 47:17 47 minutes, 17 seconds mean uh how much margin margin expansion are we looking at? I mean after getting the uh no uh 47:27 47 minutes, 27 seconds if we see the the world situation getting settled out. 47:33 47 minutes, 33 seconds You know the delta between the imported sulfur and you know import sulfuric acid and indigenous sulfuric acid around 47:40 47 minutes, 40 seconds 3,000 rupees but it depends on that what source you know what price you are sourcing this uh sulfur. So at this 47:48 47 minutes, 48 seconds current level it is uh you know it will be reduced and it will be at around 1,500 2,000 level of delta. 47:58 47 minutes, 58 seconds Thank you. 48:01 48 minutes, 1 second Next question is from the line of Raju from Antic Stock Broking. Please go ahead. 48:06 48 minutes, 6 seconds Hi sir. Uh hope I'm audible. Uh sir as you earlier said that uh in a Goa plant UDA plant was was taken under 48:14 48 minutes, 14 seconds maintenance shutdown due to energy efficiency. So how much was the volume impacted or if you could indicate the production volume for the for this quarter for the Gua Uria plant? 48:25 48 minutes, 25 seconds Yeah overall if you look at it the whole year actually we will be completing RAC. 48:29 48 minutes, 29 seconds Okay. Because anyway around 30 35 days are always kept on shutdowns of annual shutdowns. So that we are consumed actually. So we don't see any decrease 48:37 48 minutes, 37 seconds in volume on a yearly basis. Okay. This year we have done four lakh and 48:44 48 minutes, 44 seconds uh now with the policy suppose you know the new change in the policy come we can do up to 4.5 lakh at Goa. 48:52 48 minutes, 52 seconds Okay. So going for we can do four and a half lan kind of a volume right. Yeah. 48:59 48 minutes, 59 seconds Okay, understood. And uh sir uh for the for the MCL you said that our production volume some for the UA was somewhere 49:06 49 minutes, 6 seconds around four four lakh 10 for the MCL. Is that correct? Yes. Yes. 49:13 49 minutes, 13 seconds Yeah. So so uh with that number was there any any deep in the UDA production volume in the MCFL for 4Q? 49:22 49 minutes, 22 seconds The MCF will continue to run. We have taken the shutdown the last October November but if there is a supportive policy we can still produce more than that more than four lakhs. 49:33 49 minutes, 33 seconds Okay. Okay. So uh like uh for for the for the H2 uh if you could indicate the production volume of UDIA at at MCable plant that will be helpful. 49:46 49 minutes, 46 seconds H2 uh if you look at it our overall RC is around four lakhs is the supported policy we can go up to 4.4 to 4. I think 49:54 49 minutes, 54 seconds last year number we we will share that specific number to a month shutdown last year for maintenance. Yeah. 50:08 50 minutes, 8 seconds Yeah. 50:12 50 minutes, 12 seconds No sir. Uh my my question was that like uh in in in 3Q and 4Q how much was the uh production volume for MCFL AIA plant? 50:22 50 minutes, 22 seconds will get get back to you separately on that. I think we don't give a plug back to you separately. Yeah. Okay sir. No. 50:30 50 minutes, 30 seconds Thank you. Thank you. 50:34 50 minutes, 34 seconds Ladies and gentlemen, we'll take that as the last question. I know the conference wrote to the management for closing comments. 50:46 50 minutes, 46 seconds The last question. Uh sir, that was the last question. 50:51 50 minutes, 51 seconds Oh, okay. Thank you. Thank you. And on behalf of the management team PPL, uh we thank you for taking time to join 50:59 50 minutes, 59 seconds earnings call and lot of interesting questions from you. Should you have any further questions, please reach out to us, our investor relation team and thank 51:07 51 minutes, 7 seconds you once again and have a good morning and afternoon. Thank you. Thank you. Thank you. Thank you very much. 51:14 51 minutes, 14 seconds Thank you on behalf of Anti Stock Broking Limited. That concludes this conference. Thank you for joining us and you may now disconnect your lines. 51:21 51 minutes, 21 seconds Thank you. Thank you.