PCBL Chemical Ltd — Q4 FY26

PCBL Chemical Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=IrV3LGHu0z4 Published: 13 days ago

0:03 3 seconds Ladies and gentlemen, good day and welcome to PCBL Chemical Limited Q4 F526 earnings conference call hosted by ICIC 0:11 11 seconds Securities Limited. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions 0:18 18 seconds after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star and zero on 0:26 26 seconds your touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Sanjay Chen. Thank you and over to you Jen. 0:36 36 seconds Thanks Ranger. Uh good afternoon everyone. Uh thank you for joining on uh 0:42 42 seconds the PCPL chemical limited Q4 FI26 results conference call. We have PCL chemical management on the call 0:51 51 seconds represented by Mr. Nillesh Call managing director. Mr. Raj Guptat, Chief Financial Officer, Mr. Pankage Kia, ED 0:59 59 seconds investor relations. I would like to invite Mr. Nlesh to initiate the call with his opening remarks post which we 1:07 1 minute, 7 seconds will have a Q&A session. Over to you sir. 1:14 1 minute, 14 seconds Hi, good afternoon everyone and a warm welcome to you on the PCB Q4 and full year 26 earnings conference call. 1:23 1 minute, 23 seconds When we last connected at the Q3 earnings call, we had outlined uh the headwinds shaping our business. Uh 1:30 1 minute, 30 seconds softer global benchmark spreads, surplus domestic capacity, geopolitical uncertainty and a sharp inventory adjustment by international customers. 1:40 1 minute, 40 seconds Most of these pressures persisted through the fourth quarter and FY26 whole has truly tested our resilience 1:48 1 minute, 48 seconds and our business amid a challenging microeconomic and industry environment. 1:52 1 minute, 52 seconds That said, while we faced significant headwinds last year, the broad industry dynamics have now started to show clear signs of recovery. Traders appear to 2:02 2 minutes, 2 seconds have found a floor. Exit quarter momentum has turned positive. The recent rationalization of US tariffs has 2:09 2 minutes, 9 seconds restored a meaningful cost advantage for Indian exports. Customer pipelines in our specialtity b business are firming 2:16 2 minutes, 16 seconds up and the ratification of the India EU FDA opens up a duty-free access to 1.8 million tons of carbon black market. We 2:25 2 minutes, 25 seconds expect this recovery to consolidate progressively over the next two or three quarters. 2:30 2 minutes, 30 seconds Today I'll walk you through headwinds we navigated, the challenges that have emerged from the West Asia situation, the recovery signals we are seeing, the 2:40 2 minutes, 40 seconds steps we are taking to strengthen our position, and the outlook for the year ahead. I will initiate by briefly talking you through the key financials 2:48 2 minutes, 48 seconds and operational highlights of the quarter and full year. 2:53 2 minutes, 53 seconds The most defining feature of the quarter was the escalation of the West Asia conflict which began in February and created significant disruptions across 3:01 3 minutes, 1 second our value chain and substantial increases in cost. With approximately 75% of our raw materials sourced from 3:09 3 minutes, 9 seconds the US Gulf Coast and around 40% of our business driven by exports across geographies, we have significant dependence on global supply chain and 3:18 3 minutes, 18 seconds this quarter we felt the impact on multiple fronts. The West Asia situation has created new challenges in terms of 3:24 3 minutes, 24 seconds massive increases in logistics cost, cost of feed stock and the availability of ships and access to markets. While 3:32 3 minutes, 32 seconds availability of CBFS itself has remained uninterrupted as we continue to source from the US Gulf Coast, raw material 3:39 3 minutes, 39 seconds prices have risen, packing material costs have moved up materially and freight costs have escalated sharply, 3:46 3 minutes, 46 seconds exerting significant pressure on our margins during the period. Our key export routes to Europe and US pass through the conflict zone, causing disruption to the normal trade routes. 3:57 3 minutes, 57 seconds Vessels are being rerouted via the Cape of Good Hope, adding at least 14 days to transit time and increasing logistics cost significantly. 4:07 4 minutes, 7 seconds This rrooting has tightened container availability globally as vessels are caught in longer loops and the effect is visible in ocean freight rates which 4:15 4 minutes, 15 seconds remain significantly elevated compared to pre-conlict levels. 4:19 4 minutes, 19 seconds Through all of this, our priority has remained unchanged. The company is fully focused on ensuring timely supply to customers with no disruptions. I would 4:28 4 minutes, 28 seconds also like to particularly acknowledge that most of our customers have been very considerate in sharing the increased cost with us and I sincerely 4:36 4 minutes, 36 seconds thank them for their partnership during this period. 4:40 4 minutes, 40 seconds Our raw material is directly linked to crude price and this quarter crude rose sharply and witnessed high volatility. 4:47 4 minutes, 47 seconds Brent started at around $60 per barrel and ended March at around $100 uh dollars per ton. As we speak, it's 4:54 4 minutes, 54 seconds hovering uh close to $120 per barrel. A significant portion of our volumes flows 5:02 5 minutes, 2 seconds through formula based contracts with our majors. Given that price contracts carry an inherent uh quarterly lag effect, the 5:09 5 minutes, 9 seconds full impact of cost pass through will reflect in our numbers by Q2 uh FI27 at which point our margins profile should normalize. 5:19 5 minutes, 19 seconds In the spot market, cost pass through has been initiated and will help offset the rise in input costs. We will continue to manage this actively as the situation evolves. 5:30 5 minutes, 30 seconds A second important development is a clear shift in how customers are approaching their inventory. We are seeing a trend of stocking up at the 5:37 5 minutes, 37 seconds customer level which appears to be driven by uncertainty regarding the availability of materials going forward. 5:44 5 minutes, 44 seconds Global tire majors are increasingly building strategic inventory buffers, transitioning from just in time to a 5:52 5 minutes, 52 seconds more resilient just in case approach in order to mitigate supply chain disruptions. 5:58 5 minutes, 58 seconds We expect this transition to translate into an incremental demand environment driven by restocking of carbon black across the region. 6:06 6 minutes, 6 seconds Over the past few months, we have added 90,000 tons of carbon black capacity, enabling us to effectively cater to this 6:14 6 minutes, 14 seconds increased demand. With the global carbon black market continuing to grow over the long term, we believe we are well placed to benefit from this structural shift. 6:24 6 minutes, 24 seconds Domestic and export in the domestic sales have remained stable, supported by steady demand across key segments. Gina 6:32 6 minutes, 32 seconds limited exposure to conflict affected regions except maybe a little bit for the specialtity volumes. Exports have 6:40 6 minutes, 40 seconds remained resilient despite the uncertainty arising from West Asia situation. Around 40% of our total sales volume are exported with South Asia 6:49 6 minutes, 49 seconds being the primary markets and remaining unaffected by the ongoing conflict. To navigate the disruptions in West West 6:56 6 minutes, 56 seconds Asia trade routes, we have proactively rerooed shipments to alternate geographies, ensuring continuity and minimizing any impact on international 7:05 7 minutes, 5 seconds sales. With supply chain stabilizing, we expect both domestic and export growth to continue in the coming quarters. We 7:13 7 minutes, 13 seconds are deepening our presence uh through a service-led model in Europe and Japan, aiming to drive volume and market share 7:20 7 minutes, 20 seconds growth through customized solutions with key players. um in these markets. 7:26 7 minutes, 26 seconds Beyond the near-term disruption, the underlying fundamentals of our industry remain intact and several structural tailwinds are turning in our favor. The 7:36 7 minutes, 36 seconds India EU FTA has rat been ratified bringing duty-free access to an important market within sight. The re 7:43 7 minutes, 43 seconds recent US tariff reduction and duty refund benefits will also work in our favor. We are already in active conversations with 7:51 7 minutes, 51 seconds customers in these markets and see good headroom for growth. 7:56 7 minutes, 56 seconds Despite cost headwinds, the tire industry is navigating globally. Tire demand in the US and replacement segment 8:03 8 minutes, 3 seconds has remained resilient. The Indian tire sector in FI27 is poised for robust high singledigit growth. High vehicle usage 8:12 8 minutes, 12 seconds and aging commercial vehicle fleet support steady tire replacement demand in India. 8:18 8 minutes, 18 seconds The industry is also benefiting from capacity expansion, premiumization and electric vehicle EV adoption. 8:26 8 minutes, 26 seconds On the special black uh outlook in the special black segment, we took some price hike to meet the rising cost 8:33 8 minutes, 33 seconds during the quarter. Uh the near-term environment has been influenced by slower infrastructure activity. Um however, our products are gaining 8:41 8 minutes, 41 seconds acceptance in applications such as industrial quoting supported by their performance characteristics. That said, we are seeing encouraging traction in 8:48 8 minutes, 48 seconds segments like EV, semiconductor, data center and AIEL investment. Overall, we remain constructive on the outlook and 8:56 8 minutes, 56 seconds continue to selectively increase our focus on uh resource reallocation in this segment. Just a word on nanoway 9:04 9 minutes, 4 seconds which is our platform uh for battery 9:13 9 minutes, 13 seconds in the coming weeks. On the R&D front, the team has been significantly strengthened with uh enhanced lab 9:20 9 minutes, 20 seconds capabilities. Business development has also been expanded across key markets including Europe and South Korea. 9:27 9 minutes, 27 seconds Engagement with large battery manufacturers is already underway to validate product properties. Post commissioning, a validation period of a 9:35 9 minutes, 35 seconds few months is anticipated before capacity ramp up begins. This represents a significant opportunity for PCBs to 9:42 9 minutes, 42 seconds diversify into battery material industry. A high growth, high margin segment with strong long-term potential. 9:52 9 minutes, 52 seconds A word on the initiative uh cost reduction initiative I had talked about in the last quarter. Um this initiative 9:59 9 minutes, 59 seconds has made significant progress in unlocking efficiencies across manufacturing and procurement. I'm pleased to share that the program is 10:07 10 minutes, 7 seconds progressing well. Cost initiatives across yield improvement, throughput enhancement, and feed stock diversification are on track to unlock 10:16 10 minutes, 16 seconds over 200 to 250 crores of savings over the next four to six quarters. 10:21 10 minutes, 21 seconds We have also begun introducing agentic AI solutions on the shop floor. Early signs are very very encouraging. Faster 10:29 10 minutes, 29 seconds decision-m is already visible and we expect this to translate into improved uptime, better quality, and more consistent operations. The shift also 10:38 10 minutes, 38 seconds calls for new ways of working and focused upskilling which remains a priority for us. An edit a benefit is 10:45 10 minutes, 45 seconds faster speed to market from lab to actual commercialization and the ability to introduce new solutions that support 10:52 10 minutes, 52 seconds a more sustainable value chain. As part of our long-term cost resilience strategy, we are also actively pursuing 10:59 10 minutes, 59 seconds feed stock diversification through backward integration into colar distillation. 11:05 11 minutes, 5 seconds Increasing the share of coltar based feed stock for select applications is a key lever. Technical feasibility studies are currently underway and we'll share more details in the next quarter. 11:16 11 minutes, 16 seconds Now for the outlook. Uh at PCBL we are no strangers to ad adversity. Uh and PCBL has navigated these challenging 11:24 11 minutes, 24 seconds cycles in the past. Be it raw material volatility, demand disruption or global macroeconomic headwinds. And each time 11:32 11 minutes, 32 seconds we have emerged stronger and more resilient. Through all of this, our priority remains unchanged. Ensure our customers face no disruption in 11:41 11 minutes, 41 seconds supplies. We are doing everything necessary to meet their requirements without compromise. 11:46 11 minutes, 46 seconds We have already taken steps to address the current environment by tightening procurement, accelerating cost optimization and improving supply chain 11:54 11 minutes, 54 seconds efficiency. As the environment normalizes and volumes recover, we are confident of delivering double-digit AIA 12:01 12 minutes, 1 second growth fueled by volume momentum, leaner cost structure and better pricing realization. 12:07 12 minutes, 7 seconds We are maintaining capital discipline with investment priorities towards specialtity carbon black battery chemicals and other valuated segments 12:15 12 minutes, 15 seconds where margins are higher and growth is much faster. 12:19 12 minutes, 19 seconds Importantly, we have used this period to strengthen the balance sheet. Net borrowings reduced by 454 crores to 4536 crores during FI26. 12:30 12 minutes, 30 seconds Even while we funded 750 crores of capex, our working capital cycle has tightened further. The platform we are 12:39 12 minutes, 39 seconds entering FI27 with is materially stronger than we were 12 months ago. 12:45 12 minutes, 45 seconds Just a quick update on the projects. Um with the 90,000 tons brownfield expansion of rubber carbon black at our 12:53 12 minutes, 53 seconds Tamil Nadu during this quarter, our total installed capacity is now 880,000 13:00 13 minutes tons for Anna. The superconductive specialtity black line of one KT at Palage is mechanically ready for commissioning. 13:10 13 minutes, 10 seconds However, commissioning has been delayed due to gas shortage. The specialtity black line of 20,000 tons in Mudra is 13:18 13 minutes, 18 seconds now ready as well and we'll be commissioning it in the next few weeks. 13:23 13 minutes, 23 seconds Coming to the quarterly performance during the quarter, our consolidated sales volume in carbon black business 13:29 13 minutes, 29 seconds increased by 8% yearon year to 161865 metric tons. Consolidated revenue from 13:37 13 minutes, 37 seconds operations during the quarter was 266 crores and consolidated IITa was rupees 13:44 13 minutes, 44 seconds 248 crores. Of the total carbon black sales volume, domestic sales volume grew by 21% year-on-year to 10505 13:54 13 minutes, 54 seconds tons while international sales volume decreased by 10% to 56,800 tons in Q4 FI26. 14:04 14 minutes, 4 seconds Moving on to our segment performance, tires accounted for 88,591 tons. Performance chemicals 53,888 14:12 14 minutes, 12 seconds tons, while specialtity sales volumes was up by 26% yearonear to 19,386 14:20 14 minutes, 20 seconds tons. Power generation increased by 12% year-on-year from 175 MU to 196 million 14:27 14 minutes, 27 seconds units with external sales volume of 116 million units as against 100 million units in Q425. 14:36 14 minutes, 36 seconds Coming to the fullear performance during FI26 consolidated revenues from operations stood at rupees 8189 crores as against 8404 crores in FI25. 14:48 14 minutes, 48 seconds Sales volume for carbon black decreased 4% year-on-year to 618 956 metric tonses 14:55 14 minutes, 55 seconds in FI26 as against 596262 metric tons in FI25. 15:02 15 minutes, 2 seconds The consolidated EIDA for FI26 stood at 1,081 crores as against 1,384 crores in FI25. 15:14 15 minutes, 14 seconds Power generation was up around 14% and power sales volume by 17% during this financial year. 15:22 15 minutes, 22 seconds Turning to our specialtity and solutions business at Aquafarm, uh it continues to face challenging external environments. 15:30 15 minutes, 30 seconds There are different dynamics shaping performance across our key markets. I'll take it one by one. 15:35 15 minutes, 35 seconds Aquafir reported sales volumes of 21,998 metric tons, revenue of 339 crores and an EIT of 29 crores in Q4 FI26. 15:48 15 minutes, 48 seconds For the full year, revenue was 1,443 crores and EIDA 15:54 15 minutes, 54 seconds Indian rupees 162 crores. Amidst the geopolitical conflict around the year, total sales volume in FI26 was resilient 16:03 16 minutes, 3 seconds at 94,445 metric tons. During the year, home care sales volumes increased by 11% on 16:11 16 minutes, 11 seconds year-to-year basis. Our water solutions business also faced headwinds resulting in a 12% year-on-year decline. 16:19 16 minutes, 19 seconds Application specific solutions increased by 18% while the oil and gas segment declined by 19% year-onear impacted by 16:27 16 minutes, 27 seconds low oil rig counts and frack spreads in the US. Lower oil prices preval led to more cautious customer behavior and an indirect impact realizations. 16:38 16 minutes, 38 seconds In Q4 FI26 we face multiple challenges during the West Asia conflict. Lead time and freight rates 16:47 16 minutes, 47 seconds increased significantly alongside a 25 to 30% raise in raw material prices. 16:53 16 minutes, 53 seconds Yellow phosphorus, acrylic acid, melic acid and other raw materials packed materials cost also went up materially 17:01 17 minutes, 1 second after 1.5 times. Disruption in LPG supply and increase in price during the war impacted production as LPGs used in a few of our processes. 17:12 17 minutes, 12 seconds However, to ensure wallet shared loss, we reduce deliveries in consultation with customers. And once again, I would like to thank our customers for their 17:20 17 minutes, 20 seconds continued support and consideration during this period. In home care, we are locking in orders for FI26 with our key 17:28 17 minutes, 28 seconds customers and new products are also under approval. Similarly, for water solutions and green chilates, several 17:35 17 minutes, 35 seconds products at the approval stage and we expect these to materialize in the next few months. During the year, we have 17:42 17 minutes, 42 seconds successfully expanded our capacity from 1 lakh 30,000 tons to 1 lak 67,000 tons, enabling us to serve higher volumes 17:51 17 minutes, 51 seconds going forward. We are expanding our oil and gas business by increasing wallet share and strengthening new customer engagement. We now have presence in 17:59 17 minutes, 59 seconds Midland and North Dakota and have also received product approvals from new customers in Latan. Overall, we remain 18:07 18 minutes, 7 seconds positive on the strong growth opportunities in oil and gas and based on historical trends, drilling activity should raise by around 30% at current 18:17 18 minutes, 17 seconds crude levels. Overall utilization level should also increase with faster commercialization of new products and diversification of our product portfolio. 18:26 18 minutes, 26 seconds With China implementing supply side reforms including VAT rebate cuts, provincial value added mandates and stricter capital guidel capacity 18:35 18 minutes, 35 seconds guidelines. We expect structural price improvement across various chemicals and we expect to benefit from the same in 18:41 18 minutes, 41 seconds the near future. To summarize, financial year 26 was a year that tested us. But it's also a year in which we deleveraged 18:50 18 minutes, 50 seconds advanced our growth pipeline and built a sharper operating. 18:54 18 minutes, 54 seconds The fundamentals of our industry remain strong. The early signs of recovery are clear and we are entering financial year 27 with great confidence and purpose. 19:05 19 minutes, 5 seconds With this, I'll conclude my remarks. 19:07 19 minutes, 7 seconds Thank you for your attention and I welcome your questions. Now, thank you. 19:13 19 minutes, 13 seconds We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on the touchstone. 19:20 19 minutes, 20 seconds If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies 19:28 19 minutes, 28 seconds and gentlemen, we'll wait for a moment while the question queue assembles. 19:35 19 minutes, 35 seconds The first question comes from the line of Sanjay Chen with ICIC Securities Limited. Please go ahead. 19:42 19 minutes, 42 seconds Yeah, thank you. Uh uh thanks for taking my questions and for this opportunity. I got few uh across the business. First on 19:50 19 minutes, 50 seconds the carbon black um what is benefiting us because the profitability in the segment has gone up uh is purely because 19:58 19 minutes, 58 seconds US tariff has uh changed way uh we were uh struggling or uh there is a lower 20:06 20 minutes, 6 seconds import coming from Russia thanks to the uh midish crisis. Uh I can also sense 20:13 20 minutes, 13 seconds inventory gain um during the quarter considering that there was a sharp increase uh in prices across commodity 20:20 20 minutes, 20 seconds which should have uh benefited. In this backdrop, how do you see FI27 panning out both from a volume perspective and 20:28 20 minutes, 28 seconds the profitability perspective in the carbon plant business? Thank you. 20:33 20 minutes, 33 seconds I think uh first there was some US tariff reduction has definitely uh improved prospects uh which also means 20:42 20 minutes, 42 seconds that more players are exporting material outside of India and therefore there's a little bit of reduced pressure on the 20:49 20 minutes, 49 seconds pricing in India while the tire business is uh based on pass through in the non-tire business in India uh we have 20:58 20 minutes, 58 seconds been successful in increasing prices over the last few months. Um, of course after the West Asia crisis, this is u we 21:08 21 minutes, 8 seconds were forced to increase even more prices but structurally we have been able to improve some pricing in that area. Uh, that's one. Going forward, I think we 21:17 21 minutes, 17 seconds are optimistic on both fronts in terms of volume improvement both domestic as well as export because the headroom for 21:24 21 minutes, 24 seconds us to grow in export markets is significant and we are implementing some supply chain initiatives which will unlock some markets which we could not 21:32 21 minutes, 32 seconds access given the transit time etc. On the pricing front also while the industry continues to be uh over 21:40 21 minutes, 40 seconds capacity we believe that structurally we will be able to take some price increases with value added products coming into play as 21:48 21 minutes, 48 seconds well as uh introducing new services for the customers which unlock more value for the entire value chain and therefore sharing that with the customers. 22:00 22 minutes Got it. Got it. But but what is the reason for jump in profitability this quarter? If you can break that up that will be really helpful 22:09 22 minutes, 9 seconds you want to get into details but essentially it's contribution increase and yes there is a lag inventory valuation as well. 22:17 22 minutes, 17 seconds Uh so that last quarter if you're comparing with uh last quarter it was not a usual quarter right and our 22:25 22 minutes, 25 seconds profitability dipped significantly. So while quarter on quarter when you're looking it is uh appearing as a 22:32 22 minutes, 32 seconds significant jump but this is not where we should be with the kind of volumes that we have done and of course this quarter the volumes have gone up by 22:39 22 minutes, 39 seconds thousand times the volumes have contributed margins remain same there's I mean not much improvement at IITA per turn level 22:46 22 minutes, 46 seconds per kg so the real uh impact of all the initiatives which nle just spoke about is yet to come it is still not 22:55 22 minutes, 55 seconds reflecting in the performance That's clear. Second nish on the entire 23:02 23 minutes, 2 seconds shift towards colar distillation. Uh we have been position ourself as a uh 23:10 23 minutes, 10 seconds crudebased feed stock producer uh and and gold top which any which way is finding more buyer thanks to the 23:18 23 minutes, 18 seconds multiple applications there. Now what is driving us to reconsider a business proposition to shift towards colar uh 23:26 23 minutes, 26 seconds distillation that's number one and number two there's already established where we are procuring the cola now how 23:32 23 minutes, 32 seconds we ensure that we get the feed stock I I I'll get into more details on this in the next call because the project 23:41 23 minutes, 41 seconds feasibility is being finalized right now but at the core of it is that we need to diversify our feed stock base. Second, 23:50 23 minutes, 50 seconds it's not that we will use colar for all applications. This will be specific application uh based. Uh so there are 23:59 23 minutes, 59 seconds applications where colar based feed stock is slightly better. We have also upgraded our facilities to be able to 24:06 24 minutes, 6 seconds use combination of feed stocks. So that will help and uh as I said I I I'll I'll get more details for you in the next 24:14 24 minutes, 14 seconds call where we would have already signed off uh the capex investment. 24:21 24 minutes, 21 seconds Got it. One last question on carbon black and then probably one question on network farm. uh with the existing West 24:28 24 minutes, 28 seconds Asia crisis uh do you think uh we are in a better position uh from a carbon black 24:34 24 minutes, 34 seconds manufacturing perspective and uh tapping the US market or do you think Russia now has a uh chance of selling their product 24:43 24 minutes, 43 seconds in Europe or that's not happening we are seeing good traction from US customers um given that the tariff has 24:52 24 minutes, 52 seconds gone down now of course people are waiting for final stability ility in that structure. Uh the logistics cost is a little bit challenging but I think we 25:01 25 minutes, 1 second are more competitive now than we were pre-war. So we are we stay optimistic for both EU as well as as well as the US markets. 25:11 25 minutes, 11 seconds But how do you read the jump in the logistic process because we are bulky material right? 25:19 25 minutes, 19 seconds Yes, but even even with that we are competitive in the US market as the um as the US customers are also it's an 25:27 25 minutes, 27 seconds underserved market and the US customers are also trying to diversify away because the competition is China, Russia 25:35 25 minutes, 35 seconds as you said they want to diversify to other Indian players. Uh therefore we believe we are still competitive in in multiple applications. 25:44 25 minutes, 44 seconds And last one from my side on the acquarm side. Uh phosphoric acid prices have gone up very sharply. Uh that should 25:52 25 minutes, 52 seconds itself has driven a lot lot faster growth in my view. Uh number two uh crude prices uh very beneficiary for us 26:01 26 minutes, 1 second in our US business. Uh a combination of this does it improve the outlook for 26:08 26 minutes, 8 seconds acrom in FI27? Now for last two quarter we have been doing a bit losses there. 26:15 26 minutes, 15 seconds So Sanjay yes the uh the phosphoric prices have gone up. Uh we have also taken immediate price hikes uh uh from 26:23 26 minutes, 23 seconds March onwards. So it will have some cushioning effect going forward. But uh as far as the oil and gas business is 26:30 26 minutes, 30 seconds concerned uh with this jump in the uh you know uh oil prices which we are seeing uh we see substantial uh you know 26:39 26 minutes, 39 seconds restocking impact coming in uh the first two quarter itself of FI27. So most probably you will see a decent growth on 26:47 26 minutes, 47 seconds the oil and gas business in Equapform in FI27 and and how should we see part to the profitability? 26:56 26 minutes, 56 seconds So as you see uh from from a profitability perspective what has happened is uh a significantly 27:04 27 minutes, 4 seconds lower capacity utilization in the last couple of quarters that has led to some kind of you know negative operating leverage playing to our numbers. As we 27:13 27 minutes, 13 seconds see Q1 and Q2 onwards oil and gas uh business moving up sharply the same thing will turn into positive to our advantage. So you will see profitability 27:22 27 minutes, 22 seconds moving up as our overall capacity utilization moves up from Q1 FI27 onwards. 27:29 27 minutes, 29 seconds That's very clear. Uh just one balance sheet question. Sorry I'm holding on more. Uh considering there is a sharp 27:36 27 minutes, 36 seconds increase in the feed stock prices that will put significant pressure on working capital and hence on the net debt position which already appears to be 27:45 27 minutes, 45 seconds stretched in correct profitability situation. How do we want to manage this entire uh leverage situation and and still continue to grow? 27:57 27 minutes, 57 seconds Our overall borrowings have come down by about roughly 450 odd crores this year as you must have seen from the balance 28:04 28 minutes, 4 seconds sheet. Uh you must have also noticed that our uh investment in working capital has also gone down 28:11 28 minutes, 11 seconds significantly. So we are managing our uh receivables and inventory very tightly and we feel that there is further scope 28:18 28 minutes, 18 seconds for us to improve there. So we are instituting better controls. uh we believe that even despite crude being 28:26 28 minutes, 26 seconds here and we don't believe that crude is going to be here uh for the full year uh we believe that I mean maybe in a 28:33 28 minutes, 33 seconds quarter's time we'll see crude should soften back to that 8090 level whatever even if crude remains at $90 level I 28:41 28 minutes, 41 seconds think considering the volume growth the revenue growth uh we would require another 100 cr worth of incremental working capital that's that's how we are 28:50 28 minutes, 50 seconds estimating it as of now and the cash generation with higher volumes and better margins will be far more than uh 28:58 28 minutes, 58 seconds you know what we require to invest in our growth uh pay out to shareholders and invest in working capital for this incremental requirement. 29:09 29 minutes, 9 seconds Got it right. Uh thanks thanks Raj for all those questions and best of luck for the coming quarters. Thank you. Thank you. 29:17 29 minutes, 17 seconds Thank you. 29:19 29 minutes, 19 seconds Next question comes from the line of Rohit Singha with Sumidi Securities. Please go ahead. 29:26 29 minutes, 26 seconds Yeah. Uh thank you for taking my question sir. Uh so already some of my questions are answered. Uh just uh few 29:34 29 minutes, 34 seconds uh from my side. One is as sir in uh opening uh remark indicated about the uh this price increase pass on would be 29:42 29 minutes, 42 seconds majorly uh reflecting from Q2 onwards I guess. So just wanted to understand how 29:49 29 minutes, 49 seconds this uh uh pricing uh pass on would be uh I mean uh playing out in the 29:57 29 minutes, 57 seconds different segments for us for carbon black as well as for the aquaarm also and uh I think uh uh from March March 30:06 30 minutes, 6 seconds onwards we have some uh higher prices which came down in uh mid April but 30:13 30 minutes, 13 seconds again this since crude has again started moving up and probably there would be some uh some adjustment in the contracts 30:20 30 minutes, 20 seconds also. So how the contracts are shaped and how we should look at uh the basically uh going forward our Qo and uh performance also. 30:34 30 minutes, 34 seconds So uh as you said different segments in our market have different pricing linkages. So in case of tires for example there is a structure where uh 30:43 30 minutes, 43 seconds pricing can be linked to and we have different types of contracts with tire consumers. Some are Q minus one some are M minus one. So there are different pass 30:52 30 minutes, 52 seconds through mechanisms. So uh th those will come into effect as and when the contract terms move along with it. There 31:00 31 minutes is also a significant piece of uh volume which is based on spot pricing. there we have anticipated and taken the prices up 31:07 31 minutes, 7 seconds early as I said in March itself we had started taking prices up and price increases have gone through because 31:15 31 minutes, 15 seconds obviously the entire industry is facing the same challenge. So we expect prices to be strong in Q1 and uh depending on how the crude situation moves. 31:28 31 minutes, 28 seconds This will sustain some part of it. We will lose later on as the crude prices hopefully come down but we expect 31:36 31 minutes, 36 seconds profitability improvement given uh the costing of our raw material available with us for Q1. 31:44 31 minutes, 44 seconds Okay. Okay, is is going to be a similar story for for some segments where uh we have passed through and prices are linked to Q1, Q minus one or M minus one in some cases. 31:56 31 minutes, 56 seconds Got it. Awesome. And sir, uh from our new battery business uh how the things are progressing there uh when when we 32:04 32 minutes, 4 seconds should be seeing the material numbers in that segment. 32:09 32 minutes, 9 seconds I think the plant the pilot plant is ready. uh this of course is a very high value business with high margins but it 32:16 32 minutes, 16 seconds also requires qualification. So the pilot plant is designed to start getting qualifications done within this year. Um 32:24 32 minutes, 24 seconds then we will move on to putting up a commercial plant with additional capacities. I would expect that FI28 is 32:32 32 minutes, 32 seconds when we will start seeing commercial volumes going up. uh we will share more details as as as we progress in getting more qualification with our customers. 32:44 32 minutes, 44 seconds Got it. Got it. And one uh last question for uh maybe uh for the guidance point of view that how we should be looking at 32:53 32 minutes, 53 seconds the volume growth in the carbon black side uh for next year and and uh for the power business also I think uh uh uh I 33:03 33 minutes, 3 seconds mean some some outlook wanted to know as uh the demands are quite uh strong there but pricing has not been uh to that 33:10 33 minutes, 10 seconds extent. So are we seeing any uh material price increase also uh going forward in 33:17 33 minutes, 17 seconds the power side or it will remain more or less in this uh similar range. 33:24 33 minutes, 24 seconds I think on the carbon black business now with our additional capacity coming in we expect to see a high singledigit volume growth. uh we should see a much 33:33 33 minutes, 33 seconds stronger u more than double digit growth in IIDA as well for the next year. Um as 33:40 33 minutes, 40 seconds Raj was saying Q4 results are not what we um aspire to be. So you should see significant improvement in that going 33:49 33 minutes, 49 seconds from Q Q1 onwards. On power side the pricing there is two components of it. 33:56 33 minutes, 56 seconds One is the bilateral agreements that we have now there the pricing is moving well and I would also expect that 34:02 34 minutes, 2 seconds because of the fuel crisis in West Asia we should start seeing some better pricing realization uh Q1 onwards as 34:11 34 minutes, 11 seconds well. Uh so we should see structurally better pricing in power business as well. 34:20 34 minutes, 20 seconds Okay that's it from my head sir. Thank you. Thank you very much. Thank you. 34:27 34 minutes, 27 seconds Thank you. Next question comes from the line of Adit Ketan with Smith's Institutional Equities. Please go ahead. 34:35 34 minutes, 35 seconds Yeah, thank you sir for the opportunity just a couple of questions. Uh sir, you mentioned in your opening remarks on the uh carbon black spreads bottoming out. 34:45 34 minutes, 45 seconds Uh so what are the indicators like if you can highlight and what is giving you that confidence that this has bottomed out and what are the triggers wherein it 34:54 34 minutes, 54 seconds can improve apart from what we say that tire demand will grow any structural change in the business we can see okay now this has bottomed out and and so 35:03 35 minutes, 3 seconds comparing with last quarter actually spreads look much lower here adjusting for the inventory gains uh so what has 35:10 35 minutes, 10 seconds changed and and what is giving you that confidence that it has bottomed See for for the Indian players uh some 35:18 35 minutes, 18 seconds of the positive things that we are seeing is because the US tariff uh issue is to some extent sorted out. So the 35:27 35 minutes, 27 seconds additional volume coming into the Indian market is now moving towards US as well. 35:31 35 minutes, 31 seconds So you should see some uh improvement in volumes being exported out of India which therefore reduces the pressure on pricing in India. Uh that's that's 35:41 35 minutes, 41 seconds number one. uh I think we are also going continuing to see some inventory build up by our customers as well which is a little bit of an additional demand 35:49 35 minutes, 49 seconds coming through and again should uh allow us to start charging a little bit more premium. Third of course is the value 35:56 35 minutes, 56 seconds added component of our businesses going up and we expect to see that also helping us improve our spreads. 36:06 36 minutes, 6 seconds Got it. Sir onto the customer side like you mentioned so customers are keeping some inventory which earlier uh they were taking just in time. Uh so can you 36:15 36 minutes, 15 seconds highlight like what are the inventory levels today with the tire players of carbon black and specialtity and aquaform across businesses? 36:23 36 minutes, 23 seconds It varies by customer to customer. So depending on the market that you're talking about uh for example our domestic customers usually keep uh were 36:32 36 minutes, 32 seconds keeping about 3 to 7 days depending on the location of their plants etc. uh which they are dialing up a little bit 36:40 36 minutes, 40 seconds given the uncertainty in export markets again it varies across um the value chain. What we are looking at doing is 36:47 36 minutes, 47 seconds actually providing some more additional inventory stock points for just in time delivery as well for the longer term. 36:53 36 minutes, 53 seconds This is not going to come in effect right now. It will take a little bit of time to do that. But customers are increasing their uh uh cover for beyond 37:03 37 minutes, 3 seconds increasing that by at least 3 to 4 days minimum as we see uh as of now and this is true for specialtity as well as for tire customers. 37:13 37 minutes, 13 seconds Got it sir. So onto the equ mentioned so with the rise in crude prices definitely coming quarters should look good. uh but 37:22 37 minutes, 22 seconds you also mentioned onto the restocking pickup. So uh so suppose sir if tomorrow all these things stabilizes the west 37:29 37 minutes, 29 seconds Asia crisis we are everyone is anticipating crude price to fall down. 37:34 37 minutes, 34 seconds So still this thesis will remain intact that demand will pick up and restocking thing also will continue or we could be 37:42 37 minutes, 42 seconds back to that original levels like we were saying earlier. So, so this is this we are not banking only 37:50 37 minutes, 50 seconds on the inventory uh increase. We are also making efforts to grow share of wallet um in terms of providing value 37:59 37 minutes, 59 seconds added services and solutions for customers. As I mentioned there is a lot of new product approvals that we have got. So we are seeing positive traction 38:07 38 minutes, 7 seconds beyond the immediate impact of uh inventory increase. Uh so structurally we believe there is enough growth in the 38:14 38 minutes, 14 seconds key segments oil and gas in uh water treatment and the home care segments uh especially as we have got now greener 38:21 38 minutes, 21 seconds products coming into the mix and we should see increased volume. So no structurally we are making efforts to ensure that profitability goes up. 38:31 38 minutes, 31 seconds So current quarter when we look so we are sitting at around 29 K sort of an AIDA which I mentioned in the presentation. So next year considering 38:38 38 minutes, 38 seconds if things normalizes and you mentioned that premium mix will go up can we again go back to that levels of of 50 55 cr a bita per quarter in aquafarma? 38:49 38 minutes, 49 seconds Yes sir we believe we should be able to do that. 38:53 38 minutes, 53 seconds Correct. And sir on onto the volume side any number for FI 2728 like earlier we had said for 26 uh so double digit 39:00 39 minutes volume but I think we are at flatter for FI 2728. any numbers uh specifically for Equifarm? 39:09 39 minutes, 9 seconds Yes. Yes. Aquafarm Equifarm should see a very strong growth in top line in FI27. I think uh in the 39:17 39 minutes, 17 seconds region of 20 25% is something which we believe should be uh able to achieve. 39:24 39 minutes, 24 seconds Got one last question onto the debt part. You had mentioned that we have also reduced some of the debt along with that we are also into uh capital 39:33 39 minutes, 33 seconds expenditure mode. So this will continue in FI27 also both paying off debt and simultaneously doing Apex 2728. How you 39:41 39 minutes, 41 seconds see how you see like things shaping up on on this front? 39:46 39 minutes, 46 seconds Yeah, we feel that we can generate uh more uh cash from operations and what we required to invest in growth and 39:53 39 minutes, 53 seconds therefore there should be net net uh reduction in overall leverage. 39:58 39 minutes, 58 seconds There's one last question that uh you mentioned in our investor day earlier some 40 billion guidance of AIDA by 40:06 40 minutes, 6 seconds 2030. So does that hold out or is there any change onto that? 40:11 40 minutes, 11 seconds The long-term fundamentals of the industry remain intact. These are short-term you know some headwinds that we are facing currently. So from 2030 40:18 40 minutes, 18 seconds perspective we are very confident uh we remain on track and with all the initiatives that we are taking we believe that we should be able to deliver those numbers. 40:29 40 minutes, 29 seconds Got it sir. Thank you. That's it for myself. 40:35 40 minutes, 35 seconds Thank you. A reminder to all the participants that you may press star and one to ask a question. Next question comes from the line of Pri Nagatri wealth finer. Please go ahead. 40:48 40 minutes, 48 seconds Yes. Uh thank you. Uh my question is uh back to the AIDA per ton for FI27. So if I understand you said you were expecting 40:57 40 minutes, 57 seconds a double digit uh growth on the AIDA so should I assume that the 14,900 odd per ton we should see at least about a 14 41:05 41 minutes, 5 seconds 15% increase on this number is that what this leads to we we should easily see that. Yes. 41:13 41 minutes, 13 seconds Right. And uh because it's it's a it's a mix of just just to clarify it's a mix of both. We see we expect pricing to move up and we 41:20 41 minutes, 20 seconds also are taking significant initiatives on cost. So, so combination of that should definitely deliver that 41:28 41 minutes, 28 seconds and and here you are coming to this number based on two factors. One being the volume growth of uh five single 41:34 41 minutes, 34 seconds digits so 7 8 10% 9%. And the value growth of the remainder to get to this number is that is again my understanding correct? 41:43 41 minutes, 43 seconds So, so let me recapture. So there are three elements. One is of course the volume growth. Second is product mix change. we are getting higher valuated 41:51 41 minutes, 51 seconds products coming through. Uh the third one is general price increase and sorry there's a fourth one which is the cost initiatives which we are also taking. 42:01 42 minutes, 1 second Understood. So so basically effectively the build moves up uh by a strong double digit number and uh u we should also see 42:09 42 minutes, 9 seconds maybe revenue increase uh volume increase alongside all of these things. Yes. 42:16 42 minutes, 16 seconds Right. Wonderful. Uh, okay. Great. Thank you. The other questions have been answered. 42:24 42 minutes, 24 seconds Thank you. 42:27 42 minutes, 27 seconds Thank you. Next question comes from the line of silhouk securities. Please go ahead. 42:34 42 minutes, 34 seconds Yeah. Sir, uh, in the last call we had mentioned that Aquafir received incremental allocation from customers like uh, PNG, Hel. So could you quantify 42:43 42 minutes, 43 seconds the potential volume growth expected from these two allocations over the next one two years also regarding the recent 42:51 42 minutes, 51 seconds uh you know the removal of 13% VAT the export debate uh which you were talking the benefit in China so specific to TBTC 43:00 43 minutes product so within the aquaform the overall volumeics what proportion of volume is currently derived from TBTC 43:09 43 minutes, 9 seconds product and uh what about the pro operating profit growth that we are expecting in across firm. 43:17 43 minutes, 17 seconds So Sales specifically if you talk about the green fillet portfolio where we last quarter also mentioned that we have 43:24 43 minutes, 24 seconds started receiving trial orders uh and supplies have started u to both PNG and 43:31 43 minutes, 31 seconds Henkle there. I think uh from Q2 and Q3 onwards we see uh significant uh you know increase in the expected sales 43:40 43 minutes, 40 seconds revenue as we get product approvals and supply moving up. So from potential perspective potential is large. Uh we 43:48 43 minutes, 48 seconds ourselves has limited capacity. Our overall green fillet capacity is 4,000 ton and we have been looking at expanding that capacity but we have been 43:56 43 minutes, 56 seconds waiting for you know uh product approvals to come in so that we don't set up capacities too early now as we 44:04 44 minutes, 4 seconds see increasing sales in the green killet portfolio both FI 27 and 28 you should see significant increase in the revenue 44:12 44 minutes, 12 seconds side and we will be adding more capacities on the green portfolio uh for Equaarm. 44:17 44 minutes, 17 seconds Uh your second question was yeah yeah yeah please continue. So please continue. Yeah. 44:26 44 minutes, 26 seconds So so uh once we get these uh product approvals from PNG and ankle we are also working with more customers to get uh uh 44:35 44 minutes, 35 seconds product approvals uh from the non-deterrenent side of the business too. So this should help us to green uh uh have a larger uh revenue increase from this green field portfolio. 44:48 44 minutes, 48 seconds Okay sir, can you please quantify that we are we are expecting around 20,000 times incremental number your voice is not audible. 44:56 44 minutes, 56 seconds Hello. Yeah. Yeah sir. We are expecting 20,000 times incremental number. Can you please quantify sir uh the volume that we you are expecting from these two 45:04 45 minutes, 4 seconds customers and also that big growth that you are expecting from Aquaform. 45:11 45 minutes, 11 seconds See couple of things the requirement of these customers is pretty large. I mean we'll not be able to supply that requirement with what capacities we 45:19 45 minutes, 19 seconds have. So if you if I tell you about the opportunity size it is pretty big. Uh once we have received the trial orders 45:27 45 minutes, 27 seconds in the last quarter and the supplies have started now uh we have to build up that portfolio gradually. 45:34 45 minutes, 34 seconds So uh if you recall couple of years back also we had mentioned that we have a very large ambition on the green 45:40 45 minutes, 40 seconds portfolio. uh we have some capacity we are now getting uh trial orders and more orders are expected to come in a couple 45:49 45 minutes, 49 seconds of quarters. So by the end of this year we should have a much larger say when we talk about the green kill portfolio 45:58 45 minutes, 58 seconds challenge is not the uh you know the target market or the size of the market and from a perspective I think while 46:06 46 minutes, 6 seconds last quarter has been a challenging quarter in aquaarm and we face multiple challenges which Nesh also mentioned during his opening comment we believe 46:15 46 minutes, 15 seconds that our goal remains to reach that 75 cr per quarter AIA run rate which we have been trying to achieve in the last 46:23 46 minutes, 23 seconds few quarters and if the market would have been uh in a normalized scenario uh we would probably would have achieved it by now 46:31 46 minutes, 31 seconds but over the next two or three quarters we believe that that goal remains intact for us to reach 75 cr run rate on a 46:38 46 minutes, 38 seconds quarterly basis okay thank okay sir yeah great sir sir uh that Europe market if you see the 46:46 46 minutes, 46 seconds carbon black the size is around 1.5 million tons just to understand better to see just potential benefit from EU 46:53 46 minutes, 53 seconds SDA that could you please help us with the current supply mix how much of demand is met through domestic 47:00 47 minutes production versus imports and within uh imports uh what is the share from China 47:06 47 minutes, 6 seconds India is some Russia supplies coming to Europe market you can talk about 47:19 47 minutes, 19 seconds uh you know uh on an average imports about 500,000 tons uh of carbon black every year and earlier almost 80% of it 47:29 47 minutes, 29 seconds used to come from Russia now of course it is spread across uh number of countries India currently is doing about 47:36 47 minutes, 36 seconds close to 100,000 tons to our understanding um and uh China share is would be little more compared to us. 47:44 47 minutes, 44 seconds Rest is coming from you know multiple geographies. Now in terms of how this uh this EU FDA is going to benefit us there 47:52 47 minutes, 52 seconds is no import duty on carbon black in Europe. So there is no direct benefit but when you look at indirect benefit 47:59 47 minutes, 59 seconds currently uh tire imports in EU from India that attracts 4 and a half% duty. 48:05 48 minutes, 5 seconds So once this FDA is signed then uh that duty is likely to get to 0%. And uh 48:13 48 minutes, 13 seconds Europe is one/ird of I mean Europe accounts for onethird of India's tire exports. Uh okay. So uh I mean that 48:22 48 minutes, 22 seconds should boost up domestic production in India and uh from that perspective it is it is going to be positive. 48:29 48 minutes, 29 seconds So how much is domestic uh carbon black import? 48:36 48 minutes, 36 seconds India India import it's it's not significant 48:44 48 minutes, 44 seconds from where China and Russia into India China and Russia is not much China does about roughly about 1 one and a half 48:51 48 minutes, 51 seconds thousand tons a month uh and uh Russia would be around similar 1 and a half 2,000 tons a month India in totality 48:59 48 minutes, 59 seconds imports about 8 to 10,000 tons a month okay okay thank you sir Thanks. 49:09 49 minutes, 9 seconds Thank you. Next question comes from the line of Shashank Canodia with ICA security. Please go ahead. 49:16 49 minutes, 16 seconds Yeah. Good afternoon team. Thank you for opportunity. So sir given the the current prices what kind of blended carbonization should we look for Q1 F27 49:24 49 minutes, 24 seconds given that you clock closer to 52 kg in Q4. 49:30 49 minutes, 30 seconds Sorry I couldn't get the question. If you can say say that again please. 49:34 49 minutes, 34 seconds Yeah. So what kind of blended carbon price realizations should we expecting Cuban effort can be saving uh given the pool prices that they can be hoping that around around $14 to $1,500? 49:46 49 minutes, 46 seconds Okay. Okay. And that is true for Indian markets as well, right sir? 49:51 49 minutes, 51 seconds Yeah. I'm talking about average blended both domestic and international. 49:55 49 minutes, 55 seconds Right. And so at the current level of crude prices, how is the CBO versus uh you know CBFS popularity? So do we see more of Chinese supply getting into the 50:02 50 minutes, 2 seconds market the current prices which is cola based or CBDFs as a root is still has an advantage position. 50:10 50 minutes, 10 seconds So the cola prices have also moved up. 50:12 50 minutes, 12 seconds So it is even ke as of now. So pre-war and versus now it's it's about the same levels of difference. 50:20 50 minutes, 20 seconds So when when it is imported colar into India it's still a little bit more expensive on a TCO basis because there is a difference in yield. 50:30 50 minutes, 30 seconds which we get between CBFS and Kota. So competitive but CBFS is better for us right now. 50:38 50 minutes, 38 seconds Okay. And you know uh for a quarterly make up of volumes that you have shown in the presentation your tires space volumes declined from 90,000 odd tons in 50:47 50 minutes, 47 seconds Q4 to 88 888 and a half thousand tons KT for this quarter whereas the domestic tire space has gone double digit. So uh 50:55 50 minutes, 55 seconds is it just purely out of profitability angle that they supplied less to the industry or is there some uh market share loss some some angle to it? 51:06 51 minutes, 6 seconds I'm talking yeah quarterly sales volume for tires performance speciality that you have showcased in your presentation performance speciality. One second. 51:17 51 minutes, 17 seconds Yeah, I'm talking about T particular getting uh potentially decline in sales volume 90,000 K last uh quarter as in Q4 51:26 51 minutes, 26 seconds to 888.6 this quarter this is this is just um customer mix uh that we had and uh it is just a timing 51:35 51 minutes, 35 seconds effect in terms of when the material got supplied. So overall we are going to see growth in tire business as well. 51:42 51 minutes, 42 seconds Right. And lastly sir do we see Q1 you should Q1 you should see higher volume from us on tires. 51:49 51 minutes, 49 seconds Okay sir. Uh sir given that there is there are state elections in a home state uh is there any recurring mental expense charged to a penel for this quarter or do we expect something in 51:58 51 minutes, 58 seconds Cuban sorry you have to repeat so I'm saying that s given that there 52:05 52 minutes, 5 seconds are straight elections in your home state do we see any one time referring charge which is non-referring in nature either in Q4 or in Q1 so we had a 52:14 52 minutes, 14 seconds history of you know uh some donations in the past so do we see that as an element for Q4 or next quarter Q1 Nothing significant sash sam. 52:24 52 minutes, 24 seconds Okay. And sir given that you expecting good amount of period increase for base carbon black as a fararm uh in fi 27 do 52:31 52 minutes, 31 seconds we surpass the fi 25 base case profility in terms of a bita impact? 52:38 52 minutes, 38 seconds Yes sure sir. Thank you so much and wish you all the best. 52:50 52 minutes, 50 seconds Thank you sir. Thank you. Thank you. Thank you. 52:55 52 minutes, 55 seconds Thank you. Ladies and gentlemen, we have reached the end of question and answer session. On behalf of ICA Securities Limited, that concludes this conference. 53:03 53 minutes, 3 seconds Thank you for joining us. You may now discuss