Platinum Industries Ltd — Q3 FY26

Platinum Industries Ltd Q3 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=cansUoeomog Published: 3 months ago

0:00 Ladies and gentlemen, on behalf of Captify Consulting investor relations team, I welcome you all to the Q3 and 9 0:08 8 seconds months FI26 post earnings conference call of Platinum Industries Limited. 0:13 13 seconds Today on the call from the management, we have with us Mr. Krishna Rana, chairman and managing director and Mr. 0:18 18 seconds Asho Bothra, Chief Financial Officer. As a disclaimer, I would like to inform all of you that this call may contain forward-looking statements which may 0:26 26 seconds involve risk and uncertainties. Also a reminder that this call is being recorded. I would now request the management to brief us about the 0:34 34 seconds business and performance highlights for the period ended December 2025. The growth perspective and vision for the coming years post which we will open the 0:42 42 seconds floor for Q&A. Over to the management team. 0:48 48 seconds Thank you so much uh Venai. Uh good afternoon and thank you for joining us today for platinum industries uh limited post earnings conference call for the 0:56 56 seconds third quarter and nine months of fiscal year 2026. I am Krishna Duchantrana chairman and managing director and I am 1:03 1 minute, 3 seconds joined by our chief financial officer Mr. Ashok Bhra who will provide a detailed overview of our financial performance shortly. First, let me start 1:13 1 minute, 13 seconds by expressing my gratitude uh to our dedicated team, valued partners and loyal shareholders for their continued support. At Platinum, we remain 1:22 1 minute, 22 seconds committed to our core mission of being leading being a leader in manufacturing of PVC and CPVC stabilizers in India, 1:29 1 minute, 29 seconds delivering highquality stabilizers, lubricants and compounds that drive innovation in the construction, infrastructure and manufacturing sectors. 1:37 1 minute, 37 seconds Turning to our performance, Q3 financial year 2026 reflects a resilience quarter amid a dynamic market environment. We 1:46 1 minute, 46 seconds achieved standalone revenue of 102.62 crores, marking a robust 31% year-over-year growth. This strong 1:54 1 minute, 54 seconds year-on-year expansion underscores the growing demand of our products, particularly in the PVC pipe and fitting segment, which benefits from India's 2:03 2 minutes, 3 seconds ongoing infrastructure boom and urbanization trends. 2:07 2 minutes, 7 seconds for the 9 months ended 30 uh December 31st 2025 our top line reached 300 uh 2:13 2 minutes, 13 seconds 2025 our top line reached 302.38 crores up 25% from the previous year driven by 2:20 2 minutes, 20 seconds strategic capacity expansions at our facilities and deeper penetration into key markets. Our focus on CPVC and 2:27 2 minutes, 27 seconds sustainable low and calcium zinc which are lead free stabilizers continues to position us as a preferred partner for 2:34 2 minutes, 34 seconds environmentally conscious customers aligning with global regulatory shifts towards greener materials 2:42 2 minutes, 42 seconds on consolidated basis. We achieve a revenue of 104.67 67 cringing a 12% year-on-year growth year-over-year 2:50 2 minutes, 50 seconds growth and the 9 months ended December 31st 2025 at topline reached 318.42 42 cr up 7.7% from the previous year. 3:00 3 minutes Operationally, we made meaningful progress in optimizing our supply chain and R&D initiatives. We launched new 3:07 3 minutes, 7 seconds hybrid formulations that enhance product performance while reducing environmental impact and we expanded our export footprint contributing to diversified revenue streams. 3:19 3 minutes, 19 seconds Looking ahead, we are optimistic about growth in the coming years. With India's PVC consumption projected to grow at a 3:25 3 minutes, 25 seconds CAGR of over 8% in the coming years, fueled by the government initiatives like housing for all and smart city 3:32 3 minutes, 32 seconds projects, we are well poised to capture this opportunity. 3:36 3 minutes, 36 seconds We expect to accelerate our growth trajectory targeting more than 40% revenue growth in financial year 2027 3:44 3 minutes, 44 seconds and a 35% CAGR from 26 to 20 uh from financial year 2026 to financial year 2029. 3:53 3 minutes, 53 seconds This ambitious outlook is driven by a multi-prololong strategy including the commissioning and ramp up of our new facility in Egypt which will unlock high 4:02 4 minutes, 2 seconds growth international markets and add cost efficient capacity increase utilization and operational scaling at our new Palar facility through capacity 4:11 4 minutes, 11 seconds addition automation process optimizations and efficiency improvements deeper market penetration in existing in existing geographies via 4:20 4 minutes, 20 seconds portfolio expansion and new products and success successful launch and scaling of innovative product lines to broaden our offerings and capture incremental 4:28 4 minutes, 28 seconds demand. These initiatives combine new capacity, geographic diversification, 4:35 4 minutes, 35 seconds enhanced utilization and innovation to sustain high growth momentum while capitalizing on structural trends in our core markets. 4:46 4 minutes, 46 seconds We plan to invest further in these capacity augmentations and technology upgrades with our strong balance sheet featuring low leverage providing the 4:54 4 minutes, 54 seconds flexibility for both organic and in organic growth. We value your trust and are committed to create long-term 5:01 5 minutes, 1 second shareholder value through innovation, sustainability and execution excellence. I will now hand over to our CFO Mr. 5:07 5 minutes, 7 seconds Ashwok Botra for a deeper dive into the financials of Platinum Industries. Thank you. Thank you very much. 5:17 5 minutes, 17 seconds Thank you sir. Good afternoon everyone. 5:20 5 minutes, 20 seconds It is a pleasure to discuss our financial result for the Q3 and 9 month of FY26 in more detail. Let me begin 5:27 5 minutes, 27 seconds with key highlights for the quarter ended December 31st 2025. 5:32 5 minutes, 32 seconds On standalone basis revenue came in at 102.62 cr representing a 31% increase 5:39 5 minutes, 39 seconds year on year year on year basis from 78.4. 4 47 cr in Q3 by 25 driven by 5:47 5 minutes, 47 seconds higher volume of CPVC and improved product mix on sequential basis this reflect a 6% growth from 96.87 cr in Q2 5:56 5 minutes, 56 seconds by 26 gross margins stood at approximately 31% against 32.6% due to higher proportion of CPVC sale 6:05 6 minutes, 5 seconds which has a lesser margin as compared to other products. IA for the quarter was 16.25 25 cr with a with with a margin of 15.8%. 6:15 6 minutes, 15 seconds Profit before tax was 17.54 crores up 15% y while profit after tax reached 12.93 6:24 6 minutes, 24 seconds crores and 18% growth yearon-year basis and 6.5% sequential growth on yasis. The 6:32 6 minutes, 32 seconds main reason for higher batter is increased sale and sales volume but partly offset by high CGS deprecation employee cost due to new newly set up 6:41 6 minutes, 41 seconds manufacturing facility at Palar. EPS for the quarter was 2.35 rupee 6:48 6 minutes, 48 seconds for the 9 month period revenue aggraded to 302.38 cr is strong 25% y growth ITA 6:56 6 minutes, 56 seconds was 44.11 cr with a margin of 14.6%. 7:01 7 minutes, 1 second and pet stood at 37.58 crores. The modation in PET reflects the impact due to higher depletion amid ongoing capacity expansion lesser other income. 7:11 7 minutes, 11 seconds Even revenue grew strongly. Other factor is like high COGS due to higher proportion of CP sale which is high 7:19 7 minutes, 19 seconds volume but less margin product but this product product has a high future potential. 7:26 7 minutes, 26 seconds On balance sheet front, as of 31st December, we remain net debt-free company underscoring our prudent financial management. We maintain a 7:33 7 minutes, 33 seconds healthy cash position and liquidity for ongoing operation and future investment. 7:39 7 minutes, 39 seconds Overall, our financials demonstrate resilience and a strong foundation for sustained growth. We continue to 7:46 7 minutes, 46 seconds prioritize cost optimization, risk management, and shareholder returns. 7:52 7 minutes, 52 seconds Thank you everyone. And now I now open the floor for your questions. 7:57 7 minutes, 57 seconds Thank you sir. We'll now begin the question and answer session. All those who wish to ask a question, please use the option of raise hand. 8:07 8 minutes, 7 seconds Alternatively, you can also post your question in the chat box. 8:12 8 minutes, 12 seconds We'll wait for a moment till the question assembles. We'll take the first question from Mr. 8:20 8 minutes, 20 seconds Bhar Bud. Please go ahead. 8:24 8 minutes, 24 seconds Yeah, good afternoon sir and congratulations on a good set of numbers. Uh sir, my first question is 8:31 8 minutes, 31 seconds that uh obviously now the PBC market seems to be uh turning in terms of uh 8:37 8 minutes, 37 seconds prices going up. So is it fair to assume a sort of uh some pre- buying on the 8:45 8 minutes, 45 seconds back of that uh channel is again uh restocking. So is the uh volume growth likely to pick up on the back of increase in this PBC resin prices. 9:01 9 minutes, 1 second Sir, you are on mute sir. Barab G. Uh thank you for your question. 9:07 9 minutes, 7 seconds uh if you if you understand the PVC scenario you know of uh let's consider uh you know 25 20 uh 2425 9:17 9 minutes, 17 seconds 2425 the PVC consumption in India was somewhere around 43 you know 43 lakh tons 9:25 9 minutes, 25 seconds uh from April due to the prices that were continuously declining from April to December in fact when we were talking 9:32 9 minutes, 32 seconds to Reliance also there was a 10 to 12% degrowth in the PVC industry But despite of the degrowth in PBC industry the CPVC 9:39 9 minutes, 39 seconds grew exponentially high. So uh what I feel is uh in the month of January from 9:46 9 minutes, 46 seconds mid January the prices have you know reversed back due to the 13% rebate policy in China that was you know taken 9:53 9 minutes, 53 seconds back by the government that has led to the prices going up and the sentiments of the farmers and the retailers have you know grown better. So what I see is 10:03 10 minutes, 3 seconds from January the orders that we have have definitely helped us to understand that there is the future and the current 10:10 10 minutes, 10 seconds run rate is growing for us. So the PVC consumption is going to grow from uh you know has grown from January this year. 10:20 10 minutes, 20 seconds Secondly sir if you can give us some update on the Palar expansion. So I think the 12,000 ton CPVC plant is 10:28 10 minutes, 28 seconds already operational. But what is the update on the remainder of uh uh the capacity expansion and also an update on 10:36 10 minutes, 36 seconds when do you expect the Egypt plant to start getting commissioned. 10:40 10 minutes, 40 seconds So uh the first phase that was CPVC we already started manufacturing in Palar. 10:46 10 minutes, 46 seconds So that is up and running. We are running at almost 60 to 65% as on today of that capacity of 12,000 tons. uh 10:55 10 minutes, 55 seconds regarding the calcium zinc I think there was some problem with respect to the automation which has been corrected uh this this month and probably from I 11:04 11 minutes, 4 seconds think April we should be having on a complete uh you know scale of production. So uh I think from April we 11:11 11 minutes, 11 seconds should be able to start the uh commercial production completely for uh calcium zinc and the lead free lines 11:20 11 minutes, 20 seconds and Egypt sir Egypt when do we expect Egypt Egypt we tend to complete the complete construction by uh end of May 11:29 11 minutes, 29 seconds and we will start the pre-commissioning by June. So mostly I think by 1st of uh September we should be able to start the 11:36 11 minutes, 36 seconds commercial production if there are no problems but we'll still we have told the exchange that December 2026 is the 11:42 11 minutes, 42 seconds final outlook for the 100% uh uh plant running and lastly sir in your update you 11:51 11 minutes, 51 seconds mentioned about floating a new subsidy for entering into pharma so uh are you looking at making APIs or pharma 12:00 12 minutes intermediates or specialty chemicals which will go into far. 12:04 12 minutes, 4 seconds So basically we are we are we have recently registered a company by the name of Rivardu life sciences private limited and where platinum is going to 12:13 12 minutes, 13 seconds hold 70% and 30% is one by one of the scientists uh who holds many patents in his name. Okay so we are getting into 12:21 12 minutes, 21 seconds different verticals of pharma with uh neutrauticals APIs exppients and uh you know different niche uh products. So not 12:29 12 minutes, 29 seconds a common product but this is something niche we are entering into. Uh what we foresee is a good demand for for the 12:36 12 minutes, 36 seconds pharma products and u uh currently the uh process that we're going to follow is we going to hire the uh production 12:45 12 minutes, 45 seconds capacities of many pharma companies and uh sell into the market and then we will go into uh you know investing in capex post 2 or 3 years from today. 12:55 12 minutes, 55 seconds So uh are you confident of generating revenue in FI27 from this? Uh yes I can 13:03 13 minutes, 3 seconds say so but I cannot tell you the figures as of now but yes we are confident that 26 27 will be generating good revenue from the pharma business 13:10 13 minutes, 10 seconds because these will be all new customers for you right I mean yes these these will be our new customers uh but since the product and 13:17 13 minutes, 17 seconds the chemistry is not new for us we are very confident that you know we'll be able to convert the customers into having a niche market for these products 13:27 13 minutes, 27 seconds great sir thank you very much and all the very best thank you thank Thank you ma'am. 13:32 13 minutes, 32 seconds Thank you. We'll take the next question from Yash Girani. Please go ahead. Am I audible? 13:40 13 minutes, 40 seconds Yes. Yes. 13:42 13 minutes, 42 seconds So sir, I wanted to understand a few things mainly regarding the value chain. 13:47 13 minutes, 47 seconds So uh so are the end users say that the platinum supplies to being astral, prince pipes or supreme. Are they 13:54 13 minutes, 54 seconds directly buying PVC compounds from their own tie-ups like lubricol or gold stab and cutting down on middleman like 14:02 14 minutes, 2 seconds platinum or like what is the scenario that is currently happening in the value chain? The last I heard was a company like Prince pipes was in a long-term 14:09 14 minutes, 9 seconds relationship with lubrisol to get their own PVC and CPVC compounds. 14:15 14 minutes, 15 seconds So basically yes platinum is not acting as a middleman. Okay. Number one, we are into hardcore manufacturing. The 14:23 14 minutes, 23 seconds products that we offer to the let's let's consider there are two different products. One is PVC as a polymer and one is CPVC as a polymer. Uh since you 14:31 14 minutes, 31 seconds took the name of Prince Pipes, Prince pipes was earlier uh you know using uh products of lubricol. So now they were 14:39 14 minutes, 39 seconds buying complete compounds. Okay. If uh you if you must have analyzed in the past one or two years India has come up 14:46 14 minutes, 46 seconds with a huge capacity of manufacturing CPVC resin. Okay. And the customers wanted to move away from using a 14:53 14 minutes, 53 seconds compound because in in using a compound companies pipe manufacturing CPC pipe manufacturing companies were basically a 15:03 15 minutes, 3 seconds what do you call you can say a mediator or a you know mediator between lubrisol because lubrisol gives material only 15:09 15 minutes, 9 seconds when you know the customers are using their brand as flow guard. It's called a co-branding of their uh so they were 15:17 15 minutes, 17 seconds always wanting to move away because the the cost control was always in the hands of lubricol they were not being able to 15:25 15 minutes, 25 seconds control their formulation. What we did is we broke down and we entered into an additive sector and we told customers 15:32 15 minutes, 32 seconds who are manufacturing CP CPVC pies they will buy resin. So when you buy a compound from lucrrisol 75% that 15:39 15 minutes, 39 seconds compound is dependent on raisin and rest 25% is dependent on 20 to 25% is dependent on additives different 15:46 15 minutes, 46 seconds additives. Okay. And what we did is we told the customers that you know we have developed an additive which will enhance 15:54 15 minutes, 54 seconds your you know the qual the uh quality of your pipe as well as it will give you an 16:00 16 minutes edge over controlling your 75 to 80% of the formulation means if they buy CPVC 16:07 16 minutes, 7 seconds resin directly from the suppliers they have the control of the resin prices they have various resin manufacturers where they can buy resin from right so 16:16 16 minutes, 16 seconds if someone is giving a product at 100 they can negotiate with somebody at 98 or 99 or you know X XY Z price. So they 16:23 16 minutes, 23 seconds have an edge to buy a raisin directly and they buy editives from us and that is how they make a compound in extruder pipe. So this is the area where we have 16:30 16 minutes, 30 seconds entered and supplying additives and not the entire compound. Of course we are also manufacturing compound for small customers where they require an an 16:39 16 minutes, 39 seconds entire compound and not just additives but we are there with supreme industries. We are with uh prints pipe and fittings. 16:46 16 minutes, 46 seconds Understood. So one more thing on the similar line say one of uh the PPTs that was uploaded on the exchange in I think 16:54 16 minutes, 54 seconds around November 2024 had few of the management estimates of the revenues and I think we are a year delayed in terms 17:01 17 minutes, 1 second of the revenue that we were expecting in FY25 like there was an estimate of around 450 crores. So how do we plan on getting that 40% CAGR that you just 17:09 17 minutes, 9 seconds mentioned say a few minutes back like what are the future plans that we say we jump from around say we close this year at around 400 CR and then next year we 17:18 17 minutes, 18 seconds go to around 600 then 800 like what are our plans how are we looking forward to get those numbers. So uh you know if you 17:25 17 minutes, 25 seconds if you understand our projections our projections had that you know 450 crores will come from the India plant and remaining 100 or 125 odd crores will 17:33 17 minutes, 33 seconds come from Egypt plant. Uh unfortunately the Egypt plant has been delayed by almost you know 9 to 12 months and that 17:42 17 minutes, 42 seconds is where our revenue has been shifted you know one year later so that's the only gap. 17:47 17 minutes, 47 seconds Understood. Understood. I think that answers my questions. Thank you so much. 17:54 17 minutes, 54 seconds Yes, we'll take the next question from Raj Sha. Please go ahead. 18:00 18 minutes Uh hello sir. Uh during the IPO, I think the capacity utilization was around 40% and currently you said it's 60%. So what 18:08 18 minutes, 8 seconds is the optimum capacity utilization achieved from our unit one? 18:15 18 minutes, 15 seconds Okay. Uh Raj, you know we have a different product mix. Okay. Like let's talk about stabilizers. Now uh when we 18:23 18 minutes, 23 seconds started in 2016 2018 by you know when we expanded our capacity uh we have two 18:30 18 minutes, 30 seconds forms. One is powder form and one is solid form. Solid is flakes form. When you make an a product in a reactor okay 18:38 18 minutes, 38 seconds it goes on a flaker and you it converts into a solid form and powder is just a blend you know and you just pack it. In 18:45 18 minutes, 45 seconds India when we started the plant we were not aware that you know whether the customers in India for the lead free 18:53 18 minutes, 53 seconds additives will be accepting the powder capacity or they'll be accepting a flakes capacity but we went with both the capacities so that the customer is 19:01 19 minutes, 1 second having both the options in terms of you know having a better processibility at their end. So when you talk about flakes 19:08 19 minutes, 8 seconds uh in unit one we were running at 95% of the capacity in flakes in in flakes form and uh the unit two the new unit we did 19:17 19 minutes, 17 seconds the 100% almost 80% of the capacity that we expanded is in the solid form that is in flakes form. So the powder capacity 19:25 19 minutes, 25 seconds was utilized only 10%. uh now today what we've done is we've done some technology uh advancement and we were being uh 19:33 19 minutes, 33 seconds successful to launch a lead free product in a uh there is a pipe manufacturing when the pipe manufacturer they have a pipe manufacturing unit as well as a 19:41 19 minutes, 41 seconds fittings the fittings are where the pipes pipes are joined with so we were successful into converting the pipe 19:48 19 minutes, 48 seconds manufacturers to fit to fitting now our powder capacity is running at almost 20 30% which is continuously increasing so if you see the product mix we will be 19:56 19 minutes, 56 seconds able to answer you in terms of product mix that which product which is the highest sale is running on 90%, lowest sale is running on 10%. 20:05 20 minutes, 5 seconds Uh so to answer in a better way so what is the revenue potential of our India uh Indian factories? What is the revenue 20:13 20 minutes, 13 seconds potential of our Indian factories? Uh Ashok would you like to answer this question? 20:18 20 minutes, 18 seconds For new from new plant we can generate a maximum uh sales revenue of say around 7 to 750 roads over a period of 3 to four years. 20:29 20 minutes, 29 seconds Uh from that is in PVC that is in PVC only in PVC in CPVC it is somewhere around 600 crores. 20:39 20 minutes, 39 seconds So total cing you are telling me correct from unit two and from unit one from unit one and unit two both. 20:49 20 minutes, 49 seconds Okay. Okay. Uh so can you give me product wise revenue like uh uh which uh how much revenue comes from which product? 21:00 21 minutes So we will get back to you. You can connect with me offline. We will share with you. 21:06 21 minutes, 6 seconds Okay. And there's a 40% FI 27 projection and 35% TAR is including far business or 21:14 21 minutes, 14 seconds uh only PBC sir your voice is not audible. 21:24 21 minutes, 24 seconds Hello Raj you're not audible. Am I audible now? 21:30 21 minutes, 30 seconds Yes yes yes please. So uh my question uh this 30% 27 growth and 35% kar for 3 years is 21:39 21 minutes, 39 seconds including pharma business or it it is only PBC. Uh this is other than pharma. 21:46 21 minutes, 46 seconds This is other than pharma. Yeah. 21:48 21 minutes, 48 seconds Okay. And sir recently uh we issued some shares of platinum audio chemicals to external shareholders. So what is the 21:57 21 minutes, 57 seconds business of uh platinum chemicals and uh what is the reason for issuing shares to external shareholders? 22:05 22 minutes, 5 seconds So uh platinum oliochemicals we are we are investing in uh you know 22:12 22 minutes, 12 seconds oliochemicals derivatives. So we have uh recently been a we are researching on these products like these are the products which are used for not PVC not 22:20 22 minutes, 20 seconds CPVC but for the entire polyolophene sector. So whether it's SD, LLDP, PET you know these olio based derivatives 22:28 22 minutes, 28 seconds are used for all. So the companies who who which other companies are manufacturing these products one is fine organics and one is Adani Wilmar. So uh 22:35 22 minutes, 35 seconds since 2 and a half years since we have spent heavily on R&D and you know we were able to launch few products and sell it to the market. We have ventured 22:43 22 minutes, 43 seconds into platinum oliochemicals and we are going with a higher capacity in future to manufacture these olamide urekamide 22:49 22 minutes, 49 seconds and you know different different eastern sector. So uh recently Mr. Anand 23:00 23 minutes Pachikar okay who is also a family member uh brother of my wife and I since 23:07 23 minutes, 7 seconds I am the only person in the uh organization I thought that I need some hands to you know handhold the other projects also so that's how we have 23:16 23 minutes, 16 seconds parted some 10% equity to Mr. Anand Pachiger and 0.5% equity to Mr. Anand Shankr who was the ex-honey well guy who 23:23 23 minutes, 23 seconds is managing the entire technicality of this uh project. So Anan Shankar worked with Honeywell editives for more than 12 23:32 23 minutes, 32 seconds years. He he left and he joined platinum as a business uh business director new product development and innovations. So he's the one who setting up the olio 23:40 23 minutes, 40 seconds plant and uh you know olio plant for us. 23:45 23 minutes, 45 seconds Uh okay. So can I say there are total three businesses. One is PVC which which is established but second is pharma in which we are in 23:53 23 minutes, 53 seconds one is PBC one I'll tell you I'll explain you in verticals one is PVC one is CPVC one is olio and fourth is the 24:01 24 minutes, 1 second new entrance is the pharma yes so pharma we are still identifying you know that you know how which way should we go and 24:09 24 minutes, 9 seconds how will we plan so it's still under planning okay if I see uh like our margins are 24:17 24 minutes, 17 seconds continuously uh decreasing Second FI 23 it was 23% FI 24 was 23% FI 25 15%. And 24:25 24 minutes, 25 seconds now is now is also 15%. So what is stable state margins? 24:31 24 minutes, 31 seconds So if you're you're asking a question that the margins are declining. Yes correct. 24:37 24 minutes, 37 seconds Okay. So uh uh CPVC basically has you know given a good revenue to us this 24:44 24 minutes, 44 seconds year and CPVC is absolutely a new product to the Indian market. So uh uh uh when when you talk about you know new 24:52 24 minutes, 52 seconds product into the market the yet the we have not achieved the entire raw material cost you know in terms of like 24:59 24 minutes, 59 seconds for example in PVC when we talk about lead free products we are working on a contribution of say uh 30 to 35%. But in 25:07 25 minutes, 7 seconds CPVC we are working we worked on a contribution of 7% last year then we increased the contribution to almost 12% uh in the first two quarters. In the 25:15 25 minutes, 15 seconds third quarter it came to almost 17%. So uh the product the new product has its own life cycle in terms of you know 25:24 25 minutes, 24 seconds getting to its mature state because the raw materials we are using from all you know renowned companies. So we we need 25:32 25 minutes, 32 seconds to find alternatives and we were very successful in you know two quarters back to find the alternatives to make the formulation more uh you know effective 25:41 25 minutes, 41 seconds in terms of having the same performance but yet effective in terms of cost also. 25:46 25 minutes, 46 seconds So that is what has led to the increase uh in little bit of margins for that. 25:52 25 minutes, 52 seconds Okay. sort of situation guys. Uh yeah. So uh can I say that uh in Egypt 25:58 25 minutes, 58 seconds business the potential is 600 cr but uh with we are targeting in 2 3 years we will reach 300 crores. 26:09 26 minutes, 9 seconds In Egypt yeah correct in Egypt. Yes I I think you're right. 26:16 26 minutes, 16 seconds So uh why only uh like within like 3 years is a good time. So only 50% 26:23 26 minutes, 23 seconds utilization we are targeting in 3 years you have the Egypt numbers it is around 26:32 26 minutes, 32 seconds say around 250 to 300 crores over a period of 3 years sir exactly right so what I'm saying is 26:38 26 minutes, 38 seconds total information is around 600 cr so 3 years is a good time so we are targeting only 50% 26:46 26 minutes, 46 seconds uh in 3 years Raj you are not clearly audible. 26:59 26 minutes, 59 seconds Uh when I chat my writing okay we'll take the next question from Karak J. Please go ahead. 27:23 27 minutes, 23 seconds So we'll move on to question from chat. 27:27 27 minutes, 27 seconds It's from uh uh she's asking uh can you elaborate your strategy and thought process to go 27:35 27 minutes, 35 seconds to Egypt? How does it help us in terms of tapping markets cost benefit analysis? 27:48 27 minutes, 48 seconds Hello. 27:50 27 minutes, 50 seconds Yeah, I I think uh they've not been able to hear that clearly. Mosen, uh the question from Mural in chat is can you 27:57 27 minutes, 57 seconds elaborate your strategy and thought process to go to Egypt? How does it help us in terms of tapping markets and what is the costbenefit analysis? 28:08 28 minutes, 8 seconds Great. So, uh thank you Vinn. 28:11 28 minutes, 11 seconds uh like Egypt basically Egypt holds uh around uh 20 FDA uh agreements right and 28:20 28 minutes, 20 seconds if you talk about the strategic location is closer to the western world uh 20 FTA agreements means almost uh 130 countries 28:28 28 minutes, 28 seconds can import from us duty-free so we have an access to 130 countries whether it is South of America whether it's America 28:35 28 minutes, 35 seconds quiz indust industrial zones uh Europe Turkey uh middle East you know uh the 28:42 28 minutes, 42 seconds entire African market uh we we have a we have a better edge into you know getting 28:49 28 minutes, 49 seconds and penetrating to the markets uh uh faster. uh talking about you know uh the kind of benefits that we have uh just 28:57 28 minutes, 57 seconds giving you a small example that you know which I always say that why we went to Egypt was um we wanted to cater to a 29:04 29 minutes, 4 seconds customer in Usbakistan from India and uh we understood that for a 20 ft container you know from India to Usbakistan was 29:12 29 minutes, 12 seconds somewhere around $5,500 $6,000 for a 20 ft container and uh that's the that's when we realized that you know how where 29:21 29 minutes, 21 seconds are they buying from so they they were buying from one of our competitors in Turkey that is ecanismia and egghdiskeemia holds a very you know 29:29 29 minutes, 29 seconds strong market share in the middle east side that's what you know this is the same thought that led us to you know think that we should have a plant which 29:38 29 minutes, 38 seconds which is close to the western world and that's where we realize that you know India and Egypt they hold a bilateral agreement and uh the benefit is that you 29:46 29 minutes, 46 seconds know if we wanted to supply to an Usbakistan customer from Egypt it was somewhere around only $450 to $500 So the gap was really big that time and 29:55 29 minutes, 55 seconds that's where we decided and you know to put a plant over there. The benefits of putting a plant over there is like let's uh the electricity cost which is the 30:04 30 minutes, 4 seconds biggest benefit uh we have a plant in Maharashtra where the uh per unit cost of electricity is somewhere around 14.5 30:12 30 minutes, 12 seconds to 15 rupees per unit. But if you go to Egypt is 2.93 rupees 3 rupees per unit. 30:18 30 minutes, 18 seconds So that's a huge benefit in having a you know operational efficiency in terms of manufacturing these products. We have 30:26 30 minutes, 26 seconds set up a plant for lead based commodities. So let's understand if India if we are manufacturing a lead based product we are fetching a 30:33 30 minutes, 33 seconds contribution margin of 18% but if in Egypt we are manufacturing we are fetching a contribution margin of almost 22 23%. I think this difference itself 30:41 30 minutes, 41 seconds will make you understand that the operational benefit is much higher as compared to India. 30:47 30 minutes, 47 seconds The second part of a question is uh what are going to be your focus products from Egypt? 30:53 30 minutes, 53 seconds Lead as I mentioned that our major capacity is lead and you know steroids that are metallic states which are used 31:01 31 minutes, 1 second for the petrochemical industries. Uh we are also setting up a plant for CPVC but we are still identifying that you know 31:08 31 minutes, 8 seconds how easy for us is to supply from India to uh the South American and the North American markets. So we are also setting up a plan for CPC compounds over there. 31:19 31 minutes, 19 seconds A third question is you have put out a announcement regarding setting up of a new subsidiary where you plan to take at 31:26 31 minutes, 26 seconds least 70% equity stake. Can you throw some more light on that? That is a remaining 30%. 31:32 31 minutes, 32 seconds Yeah, that is a pharmaceutical which we already spoke on. I think Mr. Bargo's question was the same in the start that we registered a company called Rivu far 31:40 31 minutes, 40 seconds riadu life sciences private limited where 70% is uh platinum industries and 30% is a very uh renowned scientist who 31:49 31 minutes, 49 seconds holds many patents in his name so uh as we are getting into pharma sector sure Raj had a problem in the line so he 31:57 31 minutes, 57 seconds sent his message on the chat uh the Egypt business am I right in saying in saying that revenue potential is 600 32:05 32 minutes, 5 seconds crores. If yes, then why in 3 years we are targeting only 300 crores that is 50% utilization. 32:11 32 minutes, 11 seconds Yeah. Because it's a new plant. It's a new geographical location for us. You know, initially it takes time to build up the capacities and you know build up 32:20 32 minutes, 20 seconds the sales also. So I think every every company or manufacturing company has its own cycle. like in India when we started 32:28 32 minutes, 28 seconds we had you know it took us almost four 4 and a half years to reach even cross even 40% 50% 32:35 32 minutes, 35 seconds you know capacity uh what we had installed so I think uh this has it the 32:42 32 minutes, 42 seconds company has its own life cycle we'll take the next question from yes Jurani yes you can go ahead please 32:50 32 minutes, 50 seconds uh hi sir I uh just wanted to confirm few things again uh you just said that in the Egypt Can't you are focusing on a 32:57 32 minutes, 57 seconds lead based capacity majorly for the petrochem sector can you describe not for petrochem there are many products lead stabilizers then there are 33:04 33 minutes, 4 seconds products which we are going to manufacture for the petrochemical companies which are steroids metallic steroids. 33:11 33 minutes, 11 seconds So when we say look at the overall industry uh like people like companies are more focused on moving away from 33:18 33 minutes, 18 seconds lead based or lead products how like and we are trying to set up a factory where our majorly products will be in the on 33:25 33 minutes, 25 seconds on the lead based side. So how does that add up like I want to understand what your thoughts are on that. So the the market area from Egypt that we are going 33:34 33 minutes, 34 seconds to cater to is Africa, Middle East, Turkey, uh Russia, uh uh the America of 33:43 33 minutes, 43 seconds course for American markets, we are mainly focusing on CPVC and we will be having a very small capacity for calcium zinc for the transplant application for 33:52 33 minutes, 52 seconds the American markets. So why lead more is because the demand and the notifications have not come globally for 33:59 33 minutes, 59 seconds uh in other in in countries in African region that you know they have to stop the usage of lead. Uh in Russia it is not there in Saudi Arabia and in Middle 34:06 34 minutes, 6 seconds East it's not there. Um so say tomorrow say in 24 hours or in 36 hours everybody says that you know tomorrow we'll stop 34:15 34 minutes, 15 seconds lead our machines are going to be the same. We just have to have a cleaning of the machine, make it more potent and then start manufacturing calcium zinc on there. 34:24 34 minutes, 24 seconds Understood. Understood. Thank you. 34:29 34 minutes, 29 seconds Thank you. Uh there's again a question in chat from Kutarth. Hello sir, congratulations on great set of number. 34:35 34 minutes, 35 seconds Two questions. First, any scope of margin expansion after commencement of operations in Egypt? 34:44 34 minutes, 44 seconds And the second question is any future plans on inorganic growth through acquisitions. 34:50 34 minutes, 50 seconds Uh regarding first question the margin expansion yes we are uh expecting a 34:57 34 minutes, 57 seconds margin expansion in Egypt with the lead products as I explained you earlier that you know in India due to the operational uh efficiency over there we see that the 35:06 35 minutes, 6 seconds margin expansion is uh quite visible for us. Uh secondly uh uh the second question was uh with 35:15 35 minutes, 15 seconds respect to vinay just a second uh with respect to any future plans on inorganic growth through acquisitions. 35:22 35 minutes, 22 seconds Yes we might we might I acquisitions as in when we want to grow. So probably our major focus is mainly on the current capacity to be filled in and of course 35:31 35 minutes, 31 seconds acquisition is a is a way to grow the company also in future we will we definitely have it in mind. 35:38 35 minutes, 38 seconds Okay. Anybody else who wishes to ask a question, please use the option of raise hand. 35:44 35 minutes, 44 seconds There is a question in chat from Ashish Bod. 35:50 35 minutes, 50 seconds Any specific reason for the name of the new subsidiary as Rivadu? 35:58 35 minutes, 58 seconds Sorry, any specific name for the name of the new subsidiary as Riadu? 36:03 36 minutes, 3 seconds The question is why Rivadu? What is the meaning of Rivu? Yes. 36:10 36 minutes, 10 seconds So Rivu is like Rivan is R I my son my elder son's name is Rivan so R I V is V 36:18 36 minutes, 18 seconds my younger one V and A is Abigan who is with us and Du is Dian my father's name 36:25 36 minutes, 25 seconds that's how we arrived at Radu okay we'll take the next question from Dhal Sha D you can go ahead please 36:36 36 minutes, 36 seconds sir sir last uh two Sir, we have seen a very uh you know good increase in the overall gross blog of the company. So can you uh you know explain in detail and where we have expanded our capacity? 36:48 36 minutes, 48 seconds Uh sure Ashoko would you like to answer this please? 36:53 36 minutes, 53 seconds Could you please repeat your question sir? 36:57 36 minutes, 57 seconds Sir in last two to three years we have seen a very good uh you know uh cex and that is why have also expanded in last 2 37:05 37 minutes, 5 seconds three years. So if you can explain you know where we have expanded our capacity in which product categories. 37:11 37 minutes, 11 seconds So our main products are PVC stabilizer and CPVC stabilizer. Okay. So we earlier 37:18 37 minutes, 18 seconds our capacity was around 30,000 metric t now it is 60,000. 37:24 37 minutes, 24 seconds So capacit capacity wise we almost doubled and uh in Egypt also we are setting a plant for manufacturing products similar 37:33 37 minutes, 33 seconds products with a capacity of around 60,000. So capacity wise it is around say around more than uh it will be around 2 to 2.5 times. 37:44 37 minutes, 44 seconds So as of now we are not able to utilize fully. So by March or April we will be fully utilize our this palar facility. 37:54 37 minutes, 54 seconds So there will be growth in the volume as well as in revenue and from Egypt plant say we will be able 38:02 38 minutes, 2 seconds to the plant will be available to us for a period of say 6 months in this year FI27. 38:12 38 minutes, 12 seconds So over a period of 3 to four years we are expecting a growth of around say with a CAGR of around 40% minimum 38:20 38 minutes, 20 seconds and with commence rate margins okay answer if you can bifurcate how much of the percentage of revenue coming 38:28 38 minutes, 28 seconds from PBC stabilizer and how much is from CPG stabilizer and in Egypt where we are you know increasing our capacity putting 38:36 38 minutes, 36 seconds up a 60,000 ton capacity is it purely a PVC uh you know capacity over 38:43 38 minutes, 43 seconds So roughly if you ask me 38:53 38 minutes, 53 seconds say around say say if you break down say around say 1500 old crores. So around 39:01 39 minutes, 1 second 200 load will be coming from lead stabilizer from India. 39:05 39 minutes, 5 seconds 250 from lead uh around 400 will be lead free. Then again lubric lubricants 39:13 39 minutes, 13 seconds around 100 crores and CPVC will be around 260 crores and from Egypt it will be mainly lead based 39:22 39 minutes, 22 seconds stabilizer it will be around 250 odd clothes. Then other olio and other products are there. So we they will contribute around 250 crores. So these 39:31 39 minutes, 31 seconds are the basic breakdown of the top line over a period of say four years. 39:38 39 minutes, 38 seconds So for audio how much of the capacity or what is the you know capex that we have done for this uh particular segment? 39:46 39 minutes, 46 seconds So we have we have not done any capex for the olio. 39:50 39 minutes, 50 seconds We have just uh invested heavily in the R&D in terms of research and development in past two years. Uh today what we are 39:57 39 minutes, 57 seconds doing is we are uh for the audio business we are doing going through a CDMMO process and we are uh getting it made from uh you know different 40:05 40 minutes, 5 seconds companies based on our uh uh research and development. The quality of our product depends on us and uh we're going 40:12 40 minutes, 12 seconds to uh do a seed marketing for at least one year and basis on that I think by next year we plan to invest in a uh 40:20 40 minutes, 20 seconds 40,000 tons of capacity for the oolamomides itself and the derivatives 40:28 40 minutes, 28 seconds and what will be the capeex requirement for the same sir so the capeex for the oliochemicals would be somewhere around 150 to 200 40:34 40 minutes, 34 seconds crores and how we are looking to fund the skippets. 40:40 40 minutes, 40 seconds So through a debt route or you know it depends at that time you know what is the situation maybe we do it and with an internal approval or through a debt 40:49 40 minutes, 49 seconds route or maybe raise some equity. 40:54 40 minutes, 54 seconds Okay. And sir, when you when you are going to start your Egypt capacity, let's say from maybe September or maybe Q3 onwards, what kind of margins we are 41:02 41 minutes, 2 seconds expecting in this segment? As you mentioned, there is a you know high amount of operational efficiency because of the lower power cost and maybe lower 41:10 41 minutes, 10 seconds freight cost. But what would be the overall margin that we are looking to generate in this uh region? So uh at a 41:17 41 minutes, 17 seconds at a optimum uh you know at an optimized level I feel that somewhere in lead if uh as I explained earlier that in India 41:25 41 minutes, 25 seconds we are somewhere in 18 to 19% of of contribution margins in lead. It's a highly commodity product but in Egypt we 41:32 41 minutes, 32 seconds should be it should be somewhere around 23 to 24% of contribution margins. 41:40 41 minutes, 40 seconds So this will be ITA margin sir 23 to 24%. These are contribution gross margins. 41:46 41 minutes, 46 seconds But on the ebitita sir how much it would be generating sir? 41:50 41 minutes, 50 seconds On ebitita uh I I think on ebitita it would be generating somewhere around because this will be uh you know we are 41:59 41 minutes, 59 seconds starting only lead. So it's a total 60,000 tons of capacity. Lead is around 30,000 tons. Uh uh lubricants is 42:07 42 minutes, 7 seconds somewhere around 5,000 tons. 15,000 tons. 12,000 tons is around steroids and around 20,000 tons is CPVC. So when you 42:15 42 minutes, 15 seconds talk about only lead I think I I don't think I'll be able to justify this but it would be somewhere around uh 12 to 13%. 42:26 42 minutes, 26 seconds So I'm asking on the overall basis sir once this maybe 60,000 t capacity you have the g you have the futuristic 42:35 42 minutes, 35 seconds projections if you can just guide them the three-year scenario from today if I so we'll avoid giving any specific annual numbers we'll give a broad 42:43 42 minutes, 43 seconds guidance okay the broad guidance is 12 to 13% ITA margin from the Egypt segment 42:52 42 minutes, 52 seconds correct initially but I I feel that you know it will go up to 15 16%. So initially for first few years it'll be first 2 or 3 years it'll be around 12 to 43:00 43 minutes 13%. On lead products so now when the PBC prices have started moving up so do you feel that maybe going ahead let's say in FI27 India PVC 43:10 43 minutes, 10 seconds business will give us the good margins because if you if I look at your 24 23 numbers where margins were about 20%. 43:18 43 minutes, 18 seconds And now it is came down to 15%. So do you feel you know that kind of margins are achievable once again? 43:24 43 minutes, 24 seconds So uh you know the margins are uh I I think the projections that we have shown also it it is somewhere you know for the 43:32 43 minutes, 32 seconds entire portfolio we have shown that you know 11 to 12% is going to be our pat margins right so somewhere I think 15 16 43:40 43 minutes, 40 seconds 17% is what we'll be able to you know maintain it with the product mix 43:47 43 minutes, 47 seconds okay and sir just last one question sir if I ask uh you know in the uh December quarter we have seen a 1% % reduction in the promoter uh stake. So any particular reason for that? 43:58 43 minutes, 58 seconds Uh so uh we we had sold somewhere around 4 lakh 30,000 shares uh you know in the in the market because there were some 44:06 44 minutes, 6 seconds personal uh loans which I had to get rid of. So this is what uh led I had just sold around four four lakh 0 I think 8 7%. 44:17 44 minutes, 17 seconds So any uh future you know stell kind of a thing or maybe this is what we have not plan anything in the short run at all nothing planned. 44:28 44 minutes, 28 seconds Okay. So no further stell or no options. 44:32 44 minutes, 32 seconds Okay. Okay. Thank you so much from Thank you D. Since we have a hard stop uh we would like to request the 44:41 44 minutes, 41 seconds management to give in their closing comments. Would you like to give any closing comments Krishna? 44:45 44 minutes, 45 seconds No, thank you. Thank you so much. Uh it was really pleasure meeting all of you and uh uh we just wish for all of your prayers for Platinum Industries. 44:56 44 minutes, 56 seconds Thank you. Thank you to all the participants for joining on the call and thank you to the management team. This brings us to the end of today's conference.