Privi Speciality Chemicals Ltd — Q4 FY26

Privi Speciality Chemicals Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=h5e0VvV1vmU Published: 1 day ago

0:02 2 seconds Ladies and gentlemen, good day and welcome to the pre specialty chemicals limited Q4 and FYI 2026 earnings 0:09 9 seconds conference call. As a reminder, all participant lines will be in the listenon only mode and there will be an opportunity for you to ask questions 0:17 17 seconds after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing start and zero on 0:24 24 seconds the touchstone phone. From the management, we have with us Mr. Mahesh Bibani chairman and managing director 0:32 32 seconds Mr. RS Dajan President Mr. Miss Sanjit Patel, executive vice president, strategy and biotechnology. Miss Nara 0:39 39 seconds Naya, chief financial officer. Miss Ashwinish Sha, company secretary and compliance officer. Before we begin the 0:47 47 seconds conference call, I would like to mention that some of the statements made during the course of today's call may contain forward-looking statements about the 0:55 55 seconds company which are based on the beliefs, opinions, and expectations of the company as on the date of this call. 1:00 1 minute These statements are not the guarantees of future performance and involve risk and uncertaintities that are difficult to predict. I now hand the conference 1:08 1 minute, 8 seconds over to Mr. Mahesh Budani, chairman and managing director of previous specialty chemicals. Thank you and over to you sir. 1:16 1 minute, 16 seconds Uh good evening to everyone uh and thank you for joining us today. I would take this opportunity to take you beyond our 1:25 1 minute, 25 seconds strong FYI26 performance. I would like to inform you about position today and strength of the foundation that we built 1:33 1 minute, 33 seconds for the future. Over the past year, we have strategically transform into a more relevant, diversified and forward 1:41 1 minute, 41 seconds cooking specialtity aroma chemical platform. Today, our company is far better positioned than ever before. 1:49 1 minute, 49 seconds Supported by our robust diversified portfolio, deep customer relationships, strong R&D and innovation. 1:57 1 minute, 57 seconds and notable global footprint that allow us to navigate externals uncertainty 2:04 2 minutes, 4 seconds and with confidence. With that I hand over my team Rajan Mar and Sanjiv and Ashwini to answer all the investor 2:12 2 minutes, 12 seconds questions. Thank you Sanjie. Thank you. This is Sanjiv here 2:20 2 minutes, 20 seconds to all. I believe that you all have had a chance to go through our financial results and investor presentation. I will briefly take you through the 2:29 2 minutes, 29 seconds operational performance for the quarter ended March 26 and the entire year as well. The industry tailwinds remain 2:36 2 minutes, 36 seconds firmly intact. Demand for fragrance and flavor ingredients continue to grow driven by rising consumption pay for 2:44 2 minutes, 44 seconds premium products and increasing focus on wellness and personal care. 2:49 2 minutes, 49 seconds In addition, global supply chain are un undergoing a structural shift with customers 2:56 2 minutes, 56 seconds increasingly looking for reliable, highquality and compliant partners. A space where your company PRB is strongly positioned. 3:06 3 minutes, 6 seconds Operationally, the quarter reflects steady execution across all key priorities. We continue to see consistent traction across our core 3:16 3 minutes, 16 seconds aroma chemical portfolio supported by steady demand from global customers. At the same time, our efforts towards increasing contribution from downstream 3:24 3 minutes, 24 seconds and value added products are progressing well and this is gradually restricted in the overall mix. From a manufacturing 3:32 3 minutes, 32 seconds point of standpoint, plant utilizations remained healthy across major product lines. Our teams continued to focus on 3:41 3 minutes, 41 seconds operational excellence through process optimization, yield improvement, energy efficiency initiatives and debottleing 3:48 3 minutes, 48 seconds programs across the plants. These initiatives have helped us improve throughput while maintaining strong cost discipline. 3:56 3 minutes, 56 seconds On capex front, we are on track to complete the first phase of our capex expansion by 38th June 2026. Total 4:04 4 minutes, 4 seconds install capacity will increase to 54,000 metric ton peranom after this phase of expansion. We are now entering a 4:12 4 minutes, 12 seconds calibrated ramp up phase and expect these additional capacities to be commissioned progressively over the coming quarters in line with strong demand visibility across key products. 4:22 4 minutes, 22 seconds In parallel, phase two of our multi aroma chemicals project is progressing as planned. These investments position 4:30 4 minutes, 30 seconds us well to drive the next leg of growth with phase and meaningful contribution to both revenues and profitability 4:38 4 minutes, 38 seconds ahead. The joint venture with Preje in quarter 4. Preje turn the corner and reported profits for the first time. 4:47 4 minutes, 47 seconds Further additional capex of rupes 50 cr is being implemented based on the equity infusion by PV and jawan in the ratio of 4:54 4 minutes, 54 seconds 51 and 49 percentile. Going forward, the joint venture will gain further traction on growth and robust profitability. 5:04 5 minutes, 4 seconds Overall, our focus remains on driving volume growth in core products, improving product mix through higher share of value added products and 5:11 5 minutes, 11 seconds maintaining cost discipline and operational efficiency. 5:15 5 minutes, 15 seconds As we enter the next phase of growth, we remain focused on discipline execution, strengthening our product mix and 5:24 5 minutes, 24 seconds driving operational excellence. We believe this approach will allow us to deliver consistent profitable growth while continuing to create long-term 5:32 5 minutes, 32 seconds value for all our stakeholders. With that, I hand over to our CFO Mr. Mariner for the financial details of the company. 5:42 5 minutes, 42 seconds Good evening to all and thank you Sanjay and a warm welcome to all of you. 5:48 5 minutes, 48 seconds We are pleased to report strong financial performance for the financial year 2526 5:54 5 minutes, 54 seconds delivered in a dynamic and evolving macro environment. Our performance reflects strong execution, disciplined 6:03 6 minutes, 3 seconds cost management and the continued strength of our diversified product portfolio. Our performance for the 6:12 6 minutes, 12 seconds quarter and the financial year 2526 highlights our ability to protect 6:19 6 minutes, 19 seconds profitability across cycles and reinforces our confidence in the structural strength of our operations and the organization. 6:29 6 minutes, 29 seconds Let me give you a glimpse on the key highlights for the year 2526. 6:35 6 minutes, 35 seconds We have reported strong growth despite subdued market. A 22% revenue growth on 6:42 6 minutes, 42 seconds a year-on-year basis was what we have achieved during 2526. 6:48 6 minutes, 48 seconds We have delivered 25% plus margins consistently across all quarters and for 6:54 6 minutes, 54 seconds the financial year 2526 on the EITA numbers and we expect to sustain a 20% 7:02 7 minutes, 2 seconds plus EITA margins going forward which is driven by operational efficiencies 7:08 7 minutes, 8 seconds improved product mix and increased capacities which is coming over in the next few quarters. 7:16 7 minutes, 16 seconds Our JB with Pri is also shaping up very well and we expect meaningful 7:23 7 minutes, 23 seconds contribution in the coming years. The good news is that PRIV has earned profits in Q4 on its own and we expect 7:31 7 minutes, 31 seconds to maintain and improve on the same going forward. 7:38 7 minutes, 38 seconds Additionally during the year we continued to make progress on the proposed merger of PR speciality 7:45 7 minutes, 45 seconds chemicals limited, PRV fine sciences private limited and PRV biotechnologies private limited with the parent company. 7:54 7 minutes, 54 seconds This consolidation is aimed at simplifying the group structure, enhancing operational synergies, 8:01 8 minutes, 1 second improving scalability and creating a more integrated platform for future growth. We are also pleased to share 8:10 8 minutes, 10 seconds that the company has recently received an observation letter with no objection from both the stock exchanges namely BSE 8:19 8 minutes, 19 seconds and NSE marking an important milestone in the merger process. We shall now go 8:26 8 minutes, 26 seconds ahead filing with the NCT the scheme and we expect the approval final coming from NCT during the financial year 202627. 8:39 8 minutes, 39 seconds Coming now to the financial key highlights. I will touch base on the quarter 4 results first and then go to 8:46 8 minutes, 46 seconds the uh year at large. During the quarter 4, the total income achieved by the 8:53 8 minutes, 53 seconds company was 725.70 crores with a growth of 15.29% 9:00 9 minutes on a year-on-year basis. AITA achieved during the set period was 184.41 crores 9:08 9 minutes, 8 seconds registering a growth of 25.09% on the previous year. 9:14 9 minutes, 14 seconds AITA margins achieved was 25.41% 41% for the quarter and we expect the company to maintain such similar margins going 9:22 9 minutes, 22 seconds forward. Profit after tax for the quarter was as strong 95.66 9:28 9 minutes, 28 seconds crores as again 63.57 achieved during quarter 4 of 2425. 9:36 9 minutes, 36 seconds Coming to the annual numbers for the financial year 2526, the overall income achieved by our 9:43 9 minutes, 43 seconds company was rupees 2582.92 crores as against 2,121.84 9:51 9 minutes, 51 seconds crores achieved last year indicating a growth of 21.73%. 9:58 9 minutes, 58 seconds AITA achieved during the year was 665.45 45 crores as against 474.15 10:06 10 minutes, 6 seconds in the previous year indicating an increase of 40.35%. 10:13 10 minutes, 13 seconds AITA margins achieved was 25.76% for the year 2526 as against previous years 22.35%. 10:24 10 minutes, 24 seconds Profit after tax for the period was 327.54 crores as against 187 crores in the 10:31 10 minutes, 31 seconds previous year indicating an astounding increase of 75.16%. 10:38 10 minutes, 38 seconds During the year the total volume of sales achieved was about 42,389 10:46 10 minutes, 46 seconds metric tons which indicates an increase of 6 and a half% over previous year's volumes achieved. 10:53 10 minutes, 53 seconds My dear friends and shareholders, the overall growth of our company was driven 11:00 11 minutes primarily by volume growth, price increase and an improved product mix. 11:06 11 minutes, 6 seconds This growth was supported by sustained demand across key end user industries and an increasing traction in our 11:15 11 minutes, 15 seconds specialtity and value added product segments. While input costs remained relatively stable during the year, we 11:22 11 minutes, 22 seconds continued to focus on operational efficiencies, cost optimization initiatives and improved capacity utilization which supported the margins. 11:34 11 minutes, 34 seconds We have been able to bring down the manufacturing and other administrative expenses which has enabled to improve 11:41 11 minutes, 41 seconds the AITA margins further during the year. 11:45 11 minutes, 45 seconds Now coming to the balance sheet numbers as a company we continue to maintain a very prudent capital structure. I'm 11:54 11 minutes, 54 seconds happy to inform that due to the excellent management and constant monitoring and focus we have been able 12:02 12 minutes, 2 seconds to bring down our overall working capital cycle to 117 days during the year 202526. 12:12 12 minutes, 12 seconds Our net debt as of March 26 stood at 876 crores. This is of course net of cash 12:19 12 minutes, 19 seconds and surplus money deployed in mutual funds with a net debt to an AITA ratio of 1.33 12:27 12 minutes, 27 seconds reflecting our focus on maintaining financial flexibility while supporting growth investments. Our net debt to 12:36 12 minutes, 36 seconds equity ratio was a very healthy 62 reflecting good generation of profits. 12:44 12 minutes, 44 seconds As you may have noticed, we continue to improve our ROE and ROC which during the 12:52 12 minutes, 52 seconds year we achieved a number of 22.05% and 22.42% 42% respectively. Thereby 13:01 13 minutes, 1 second reaffirming our visionary chairman uh vision that going forward the 13:09 13 minutes, 9 seconds company's roe and ROC is poised to be in excess of 20%. 13:14 13 minutes, 14 seconds During the year we generated healthy cap operating cash flows of rupees 550 crores maintaining a comfortable liquidity position. 13:25 13 minutes, 25 seconds Our capital allocation, our focus remains on investing in high return growth opportunities particularly in 13:33 13 minutes, 33 seconds expanding our specialtity chemicals portfolio, enhancing the backward integration and improving operational efficiencies. 13:43 13 minutes, 43 seconds In line with our commitment to shareholder returns, the board has recommended a dividend of rupees 10 per 13:50 13 minutes, 50 seconds share for financial year 2526 with a dividend payout of 100% of the face 13:58 13 minutes, 58 seconds value of the share which reflects our confidence in the business outlook and cash flow generation going forward. 14:06 14 minutes, 6 seconds Looking ahead, we remain confident in our ability to deliver sustainable growth. Our strong balance sheet, robust 14:14 14 minutes, 14 seconds cash flows and disciplined capital allocation strategy position us well to capitalize on emerging opportunities 14:23 14 minutes, 23 seconds while navigating external uncertaintities. 14:27 14 minutes, 27 seconds With the planned capacity expansion of existing products and the introduction of new specialtity products, we have 14:34 14 minutes, 34 seconds established a clear road map and are on track to achieve the vision. the 14:41 14 minutes, 41 seconds foundation of which was laid by our visionary chairman Mr. Mahesh Babani of the 5,000 crores of revenue and 1,000 cr 14:50 14 minutes, 50 seconds plus in the AITA numbers over the next 3 to four years which represents a growth of about 2 ends. 14:59 14 minutes, 59 seconds With this I would like to conclude the presentation as of now and open the floor for questions and answers. Thank you over to your de moderator. 15:11 15 minutes, 11 seconds Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on the touchstone 15:19 15 minutes, 19 seconds telephone. If you wish to withdraw yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a 15:27 15 minutes, 27 seconds question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. 15:36 15 minutes, 36 seconds The first question is from the line of Sumat Kubar from Motil. Please go ahead. 15:42 15 minutes, 42 seconds Yes, my question regarding gross margin, we have seen a significant dip in gross margin sequentially. Any specific reason for that? 15:52 15 minutes, 52 seconds Yeah, so [clears throat] much as you know our business is so structured uh that 70% of our you know revenues come from export and most of that are through 16:01 16 minutes, 1 second contracts. So you know in the fourth quarter and if you see historically also that's why there's an overlap of you know sometimes the raw material contract 16:10 16 minutes, 10 seconds getting into the fourth quarter the that is first quarter for the calendar year and because of this overlap sometimes 16:17 16 minutes, 17 seconds you have this kind of situation but as we always say that you should judge PV on an annualized basis and this trend you will find in the last few years also 16:26 16 minutes, 26 seconds if you if you look at the last two few years also you'll find a similar trend because the way the prices move for the annual contracts for both raw material 16:33 16 minutes, 33 seconds and finish group. Such an overlap and distortion can happen but that's only part of the thing and you should look 16:40 16 minutes, 40 seconds always on annualized basis regarding capex in Q3 FY 26 uh you you 16:49 16 minutes, 49 seconds have given all the timeline of capex so that capex plan intact or any or any changes? 16:56 16 minutes, 56 seconds It is it is intact. 16:59 16 minutes, 59 seconds Thank you so much sir. It is intact. We will we are confident of showing an growth of 20% in the coming year and we 17:08 17 minutes, 8 seconds are hopeful we'll also be able to maintain similar margins. 17:18 17 minutes, 18 seconds Does that answer your question Mr. Siman Kabar? Hello. 17:24 17 minutes, 24 seconds Thank you. The next question is from the line of Rohit Sa from Sunidi Securities. Please go ahead. 17:31 17 minutes, 31 seconds Yeah. Uh thank you for taking my question and congratulations for good set of numbers sir. Uh so first question 17:38 17 minutes, 38 seconds is first question sir on the uh on the guidance side as we are looking at a 20% uh kind of growth and of uh 34% kind of 17:47 17 minutes, 47 seconds margin of similar kind of margin. So uh although we have got the approval of the mation of our fine science and uh other 17:56 17 minutes, 56 seconds business. So does we take into account this number also in uh on this 20% growth or it would be purely from the 18:05 18 minutes, 5 seconds existing business only uh uh uh uh thank you uh the numbers are 18:15 18 minutes, 15 seconds uh you know appreciated uh the 20% growth that Mr. Marani talked about is on the standalone basis as it is today 18:24 18 minutes, 24 seconds and uh as and when the scheme of merger happens then of course we'll be consolidating it. 18:31 18 minutes, 31 seconds Got it. Got it. Uh secondly on uh just wanted to know how we should see the 18:38 18 minutes, 38 seconds engagement with the MNC's uh during this tough time of war uh and how the spot customers behave during the time and how 18:46 18 minutes, 46 seconds we are looking at uh going forward in the coming quarters. 18:52 18 minutes, 52 seconds So spot customers you know we have to I mean these are all very delicate questions you know these these calls are recorded so we won't be able to fix but 19:00 19 minutes we have very healthy relationship and very transparent relationship with our with our customers and they are also able to see that the changes which are 19:08 19 minutes, 8 seconds happening I mean that these are changes which are you know once in a lifetime kind of uh impact that is there so they we because of our transparency and trust 19:17 19 minutes, 17 seconds you know we are able to pass on uh and it is accepted from our customers. 19:22 19 minutes, 22 seconds And I don't see any reason that uh we will not be able to pass on the price increase. We are confident that we'll be 19:29 19 minutes, 29 seconds able to pass on the price increase and we because you see uh I would I would yet tell you I'm not saying I'm the most 19:36 19 minutes, 36 seconds competitive but I am definitely in the lead and people do have confidence by paying one or two% higher. Py is a 19:45 19 minutes, 45 seconds better supplier. So we have that confidence that people will pay up and people and we do have customer 19:52 19 minutes, 52 seconds relationship so strong that when we sell a basket you know we make sure that the customer has a happy ending and good 20:00 20 minutes smile on the sleeve. So we do somewhere we have extra margins we do give something keeper something as a basket we are keeping our customers happy 20:07 20 minutes, 7 seconds that's our strength you know we have 75 products 15 more in the pipeline 10 more in development 100 products from one 20:15 20 minutes, 15 seconds door step is a great strength to have great 20:22 20 minutes, 22 seconds uh and on the uh side uh as we have invested under 50 cr uh for the kx uh so 20:31 20 minutes, 31 seconds uh is it towards more uh you towards the revenue improvement or it would be on the margin improvement I mean anything 20:38 20 minutes, 38 seconds on the backward integration kind of angle there's no backward integration here the 20:45 20 minutes, 45 seconds thing is uh we are bringing in new additional products and additional revenues so in fact this year we expect 20:54 20 minutes, 54 seconds almost uh 130 crores of sales in instead of 55 last Yeah. And we hope we are 21:03 21 minutes, 3 seconds working in a bigger direction to see at least in next three four years we should be at least 300 crores of uh uh revenue and with decent margins obviously. 21:15 21 minutes, 15 seconds Great. Great. One one last question uh from my side as as our working capital days now stands at around 117 21:24 21 minutes, 24 seconds days. Uh do we see any increase in this number due to the current situation or it will more or less remain in the similar uh level? 21:34 21 minutes, 34 seconds Even if it increase it won't be more than 3 4%. because of you know we have to be when you increase sizes person 21:42 21 minutes, 42 seconds makes late payment we even increase it won't increase more than 5% or something like that we confident be able to manage 21:51 21 minutes, 51 seconds this situations and we have to we always want to see a happy customer a smile on his face keeps keeps our day and keeps 21:58 21 minutes, 58 seconds our balance sheet very alive got it got it sir that's it from my tes thank you and best of luck 22:06 22 minutes, 6 seconds thank you thank Thank you. The next question is from the line of Rohit Nagaraj from 361 Capital. 22:15 22 minutes, 15 seconds Please go ahead. 22:18 22 minutes, 18 seconds Uh thanks for the opportunity and congrats on a very strong set of numbers. Uh the first question is on the raw material sourcing side. So if you 22:28 22 minutes, 28 seconds could give us a flavor as to how are we protected in terms of inventories the current sourcing situation and on the 22:36 22 minutes, 36 seconds entire aggregate raw material basket what is the kind of cost inflation that we have observed over the last couple of months. Thank you. 22:44 22 minutes, 44 seconds Sure. So there are two categories of of raw material we can say. One is one is the renewable raw material for which we 22:51 22 minutes, 51 seconds have annual contracts and based on those annual contracts typically we hold about uh one one and a half to two months of inventory and then there's always 23:00 23 minutes inventory in transit because most of these are shipped from Europe or from US. So you have another one months of inventory there. So we are covered for 23:08 23 minutes, 8 seconds almost a quarter for for uh regular raw material which are which are contracted and the other raw materials you know we 23:15 23 minutes, 15 seconds are we are covered for about 3 months in stock and another another two to three months in in pipeline you know so that's 23:23 23 minutes, 23 seconds the way we we plan our raw materials and for non-pinine based products we whenever we get into annual contract is that typically six monthly contract so 23:32 23 minutes, 32 seconds we keep and maintain visibility for those many months you know so that's the way function and and that's how that's how 23:40 23 minutes, 40 seconds we try and you know mitigate the risk of the volatile situation what we are facing right now. So we position our 23:46 23 minutes, 46 seconds contracts as per the raw motives in hand. We don't take too many contracts 23:53 23 minutes, 53 seconds if we we we we reduce our market share with some contracted customers if we see 23:59 23 minutes, 59 seconds contracts are overburdened. So we we maintain a fine balance. We keep our eyes on the ball to maintain the fine 24:07 24 minutes, 7 seconds balance between customer relationship and sales. 24:13 24 minutes, 13 seconds Sure. Got that. The second question in terms of TSI 26 if it's topline growth of 22%. uh if you could give us a 24:22 24 minutes, 22 seconds broader understanding how much was given through volumes pricing and the product mix that is thank you 24:32 24 minutes, 32 seconds Ro as indicated uh 6% it is about 6 and a half% on account of volume growth and the balance is on 24:40 24 minutes, 40 seconds account of the product mix and uh about 8% odd uh increase in the uh prices in 24:47 24 minutes, 47 seconds that you and just to clarify uh was there any material benefit from the uh forex gains during last year? 24:59 24 minutes, 59 seconds Uh definitely because we are a net exporter per se. So there is uh uh uh some amount of forex gain that has 25:08 25 minutes, 8 seconds happened in uh uh 25 26 I think uh what is we are reported is close to about 14 crores or so. 25:17 25 minutes, 17 seconds So you got that which falls under income. Yeah. Thank you. Thank you. Got it. Got it. Thank you. 25:25 25 minutes, 25 seconds Yeah. 25:26 25 minutes, 26 seconds Thank you. The next question is from the line of Rab Arvin from IT PMS. Please go ahead. 25:33 25 minutes, 33 seconds Uh hi. Am I audible? Good. You're audible. Yes. Yes, you are. 25:42 25 minutes, 42 seconds Am I audible? 25:44 25 minutes, 44 seconds Yeah. But there's slight echo in your now. Now there's a slight eco in your uh M. 25:52 25 minutes, 52 seconds Yes, please go ahead. You you are audible. 25:55 25 minutes, 55 seconds So yeah, thanks for the opportunity. Uh so the question I had was uh specifically on the new products that we're going to be coming about which is 26:03 26 minutes, 3 seconds the mal non and cyclopentalon. So I wanted to know if the phase two and phase three of capex is uh taken into 26:11 26 minutes, 11 seconds consideration for specifically for these products or is or is the phase two and phase three going to be for the existing products. That will be my first question. 26:21 26 minutes, 21 seconds Okay. Shall I ask the first question then we'll come to the second question. 26:23 26 minutes, 23 seconds Yes. Yeah. Um we are we are working um and these projects are already uh underway. So as you will know typical uh 26:32 26 minutes, 32 seconds projects of this size do take 12 months to 15 months for implementation. So we are at very advanced stage in terms of detail engineering the 26:42 26 minutes, 42 seconds uh you know structural structural design equipment design procurement in for some equipments has started other equipments 26:48 26 minutes, 48 seconds we are still in that phase of detail design. So all both all the three products design projects are 26:57 26 minutes, 57 seconds in full swing right. So sir could you give some any timeline as to when these products might be commercialized? 27:08 27 minutes, 8 seconds Yeah. So we are targeting to do by the end of first quarter of next financial year. So by uh June of next financial 27:16 27 minutes, 16 seconds year we are targeting to complete these projects mechanical completion as we call it so that we can start taking the trials and typically in 27:24 27 minutes, 24 seconds a month's time after those trials we are in the business of commercial production right and uh just to follow up on 27:33 27 minutes, 33 seconds cyclopentanon specifically like do we have to wait for certain approval periods for this molecule like to some of the clients who we are going to be 27:40 27 minutes, 40 seconds selling it to so will we have any approval period for Uh yeah so so uh we as we always have been saying that you know when we 27:49 27 minutes, 49 seconds develop a product uh we do it in the lab and then in the pilot and our lab samples are approved so our customers 27:56 27 minutes, 56 seconds are aware of this product and they have seen our samples approved those you know so we are we are doing that homework simultaneously. 28:07 28 minutes, 7 seconds Okay sir. And uh so the second question uh was uh to do with the fural. So where do we see the timeline of this peral 28:15 28 minutes, 15 seconds backward integration like uh we give some timeline and will will this fall in the capex span of phase two and phase three or is that completely separate? 28:24 28 minutes, 24 seconds Yeah. So this is this is uh we will first establish the finished goods and then we'll go for backward integration. 28:29 28 minutes, 29 seconds Uh so in the meanwhile we will be we are trying to get into contracts for buying for fural from outside agencies. uh if you want me to uh you know talk about 28:38 28 minutes, 38 seconds the timeline for for fural it will be post u I would say two years or you know it's only after 2 years that we will get 28:45 28 minutes, 45 seconds into that particular act okay so so anytime around FY 28 29 we 28:53 28 minutes, 53 seconds can expect for yeah we can expect that project to be there yeah correct that's correct all that's good and uh lastly just one 29:01 29 minutes, 1 second thing on the biotech side which is uh uh there mentions biomass conversion, right? So, bio waste into value added products. Could you just talk a bit more on this? 29:10 29 minutes, 10 seconds Yeah. 29:11 29 minutes, 11 seconds Yeah. So, so we are we continue to work this is a very complex technology. So, we continue to work on that and right now we are working on uh setting up a 29:20 29 minutes, 20 seconds demonstration plant which has a which has a capacity which is which is you know significant. So that demonstration 29:27 29 minutes, 27 seconds plant is being put up um with a capex of around 70 to 75 or cr which will then 29:36 29 minutes, 36 seconds you know uh do this thing on on few turns per day basis so that you know we have products coming out of that plant and uh all the three products will 29:44 29 minutes, 44 seconds happen simultaneously energy conservation happen and lot of lot of data will be available you know so that demonstration plan project is also 29:52 29 minutes, 52 seconds underway right now we are we are at a stage at which we are doing the uh we have done the basic engineing we are in the process of doing the digital 30:00 30 minutes engineing work for that so this is separate from the mal and mal project is it the bio products 30:09 30 minutes, 9 seconds it is completely yeah that's good yes and just on a final note what could be the end capacity figure like let's 30:17 30 minutes, 17 seconds say after all these three phases of capacity is done okay yeah after all The first three phases of uh 30:26 30 minutes, 26 seconds capex expansion as uh also mentioned in our investor presentation will have on its own about 72,000 metric tons of capacities. 30:37 30 minutes, 37 seconds Right. And the timeline for this sir it is somewhere around uh uh 30:44 30 minutes, 44 seconds 28 June uh optimistically maybe September 28th uh more realistically I would say that. 30:53 30 minutes, 53 seconds Okay. Thank you very much sir. Thank you. Thank you. 30:58 30 minutes, 58 seconds Thank you. The next question is from the line of Rohan Meta from FCOM family office. Please go ahead. 31:06 31 minutes, 6 seconds Hello sir. Yes. Yes. Yes. 31:10 31 minutes, 10 seconds Perfect. Thank you so much for the opportunity and congratulations on a good set of numbers. So uh the 2025 31:16 31 minutes, 16 seconds ammon report it uh you know references uh lot of molecules including silver amber amber silk as well as privylide 31:25 31 minutes, 25 seconds and privolite. So should we read this as a deliberative shift towards a a deeper value in integration and also 31:33 31 minutes, 33 seconds structurally higher gross margin going forward. uh also in terms of I wanted to understand what is the commercialization 31:41 31 minutes, 41 seconds timeline uh for these products and how do these factor in to your FI27 revenue and capacity utilization. 31:50 31 minutes, 50 seconds Yeah. So I will I will uh you know pass the first part of margins because you know obviously you can realize that uh 31:58 31 minutes, 58 seconds it is very important for us to you know uh uh maintain that confidentiality but these products are already being 32:05 32 minutes, 5 seconds commissioned right now. One of them is already commissioned and and the other ones will be commissioned during the course of this financial year. 32:16 32 minutes, 16 seconds I I would hesitate to give you margins and all that you know. So you have summarized it well. So that's that's what it says. 32:23 32 minutes, 23 seconds Sure. Sure. Thank you. And my second question is on uh ra material and uh alongside logistics outlook for FI27. So 32:32 32 minutes, 32 seconds given the recent volatility in uh crude prices as well as you know overall energy and freight cost. uh could you 32:39 32 minutes, 39 seconds give some sense of you know uh when it comes to your fuel source uh what part of your fuel source is currently crude 32:47 32 minutes, 47 seconds linked and how are you mitigating that risk? Secondly, uh when it comes to CST 32:54 32 minutes, 54 seconds and GTO sourcing, uh how comfortable are you when it comes to uh sourcing these 33:01 33 minutes, 1 second and should we think about any margin segments from input cost in FI27 or are you comfortable on that front so far? 33:11 33 minutes, 11 seconds I think we answered this question partially earlier that you know 70% of our revenue does come from contracts that will be already made and those are 33:18 33 minutes, 18 seconds in place. Now uh in terms of shipping uh you know time there could be a delay I mean to say that there is no delay at all is not correct but there will be a 33:27 33 minutes, 27 seconds delay but that's about a week or two and we are well covered for that because we always maintain the stocks which are mentioned in the earlier answer. So we 33:34 33 minutes, 34 seconds maintain that stock and uh that's how that's how we try to mitigate the risk of such an you know event that is next 33:42 33 minutes, 42 seconds event uh like this war that that's where we stand and about about the raw material pricing 33:49 33 minutes, 49 seconds and everything Mr. already told uh you that uh we you know we are we having very good relation with the customers and it's a very transparent relationship with built on huge amount of trust. 34:00 34 minutes Therefore you know wherever it is it is you know it makes a case for us to get a higher price we do get that. Yeah 34:08 34 minutes, 8 seconds sure sure. Thank you so much uh for the opportunity and wishing you all the best. Thank you. 34:14 34 minutes, 14 seconds Thank you. The next question is from the line of man from Growth Spear Ventures. Please go ahead. 34:21 34 minutes, 21 seconds Uh hi hi Sanjiv. Hi Gavani. Uh congratulations for great set of numbers and pleasure to hear from you once again. 34:32 34 minutes, 32 seconds So actually I I have three questions. I I'll start with my first. So uh realizations for us actually tend to be 34:40 34 minutes, 40 seconds in the range of 560 to 590 rupees per kg kind of a region and as we are seeing 34:48 34 minutes, 48 seconds that it has increased approximately by 6 to 8% this year. How do we see this moving considering that we have 70% of 34:57 34 minutes, 57 seconds our revenue as exports and uh which is actually dollar denominated and hence you will be getting some sort of forex 35:04 35 minutes, 4 seconds benefit out of it as well uh and you are moving towards higher value products. So how should we model this around and how how should we see the quality of business going ahead around the pricing. 35:16 35 minutes, 16 seconds Yeah. So two things you know one is that yes the as the as as rupee or dollar appreciate in rupee they would be there 35:25 35 minutes, 25 seconds would be slightly higher realization but you have to always remember when you do the P&L part that our raw materials also 70% of our raw materials are imported so 35:34 35 minutes, 34 seconds to that extent it does get balanced and also we have some amount of uh you know forex data and all that so the there is 35:40 35 minutes, 40 seconds obviously a benefit of of uh rupee weakening or rupee depreciation But it is only it is only calibrated you know 35:48 35 minutes, 48 seconds it is not something that everything comes to us because we also import raw material. So that's that's answering your question about dressing and 35:55 35 minutes, 55 seconds realization will go up. If you see the trend for the last uh 3 years it has been or even five years you can take it has been steadily going up barring 36:04 36 minutes, 4 seconds couple of years in between but it is going up from about 450 rupees to about 525 rupees to 600 rupees uh in the in 36:14 36 minutes, 14 seconds the last financial year. So it is it is going up and uh going forward uh we have both categories of products you know we 36:21 36 minutes, 21 seconds have majority of the products would be higher value products uh but cyclon obviously is not a product which is of 36:28 36 minutes, 28 seconds uh high value although very good margins but in terms of the pricing it is lower so you you will find growth going forward 36:37 36 minutes, 37 seconds definitely in this number you know but it will be calibrated. 36:41 36 minutes, 41 seconds Got it. Got it. So second question that I have considering the crude oil has gone bonkers and due to that GTO prices 36:49 36 minutes, 49 seconds have also increased a lot. So for us uh we have majority of our capacity benchmark to CSC and uh the raw material 36:59 36 minutes, 59 seconds for CS sort of a waste product that is basically imported from western countries. So uh considering that our 37:06 37 minutes, 6 seconds end end value is increasing and we have sort of a non-lin crude crude raw 37:13 37 minutes, 13 seconds material of some quantity. Do we expect the gross margin which is uh which has increased by I think one 50 odd basis 37:21 37 minutes, 21 seconds point this year uh increase in next or probably next financial year uh by any chance? 37:28 37 minutes, 28 seconds No, I think you you should consider uh we always play safe. So we will assume that the gross margin remains at similar 37:35 37 minutes, 35 seconds level. What we actually do you know and that's what that's what defines prey is that we always look internally and try to improve the efficiencies you know. So 37:43 37 minutes, 43 seconds that's what we done in the last quarter and we'll continue to do that and and improve our efficiencies and and improve our margins. 37:51 37 minutes, 51 seconds Got it. Got it. And so uh for the new products like uh malitol and ethal mal, 37:57 37 minutes, 57 seconds malitol, cyclopent if you can explain to the investors what is the actual benefit to uh prev for 38:07 38 minutes, 7 seconds basically making these products because as far as we have known this products are basically imported to India and now there is some sedan norm is also coming. 38:15 38 minutes, 15 seconds So could you explain a a bit in depth as to what would actually uh be going on in the industry posted dogs and how is 3D differentiated in this new products. 38:28 38 minutes, 28 seconds So if if you really look at it you know it is strategically similar to what we have been doing so far that is converting the a waste into wealth you 38:37 38 minutes, 37 seconds know that's what that's what we define internally so like we do CST which is a west into valuable aroma chemicals 38:45 38 minutes, 45 seconds similarly we will be starting with fural which is made from west uh that is corn cop and go all the way from making 38:53 38 minutes, 53 seconds buying corn cop to adding value to make you know this flavor chemicals and and a speciality molecule. So that's the way 39:00 39 minutes we are we have positioned ourselves you know. So when we when we are getting into this vertical which will be ultimately valued at up to thousands in 39:09 39 minutes, 9 seconds revenue we are fully pack integrated and we will be the only one of that type and we also have a proprietary technology 39:17 39 minutes, 17 seconds for making cyber. So based on this we are are differentiated from what others do. 39:24 39 minutes, 24 seconds Got it. Got it. And and this would also be export focused right as some as CBA SBA norms have come like that would actually help us against our peers. 39:35 39 minutes, 35 seconds Yes. Yes. You're right. You're right. 39:37 39 minutes, 37 seconds Got it. Got it. And sir last question for me is if we see standalone margins of pre as an entity they are uh actually 39:46 39 minutes, 46 seconds 27 28% kind of a range and as uh uh as in the speech you said that now preview has also started to become profitable. 39:55 39 minutes, 55 seconds when we expect the uh total or the the consol margins to tend towards what uh standalone entity is quoting at right 40:04 40 minutes, 4 seconds now not exactly 23 28 but the direction yes uh there will definitely be an 40:11 40 minutes, 11 seconds improvement in the consolidated margins going forward now that bridging is also you know turning itself to a positive 40:19 40 minutes, 19 seconds got it got it uh that's it from mine uh congratulations again for great set of numbers and all the very best for uh the year ahead. Thank you. 40:28 40 minutes, 28 seconds Thank you. 40:29 40 minutes, 29 seconds Thank you. Participants who wishes to ask a question may press star and one now. The next question is from the line of Pratik Shasta from Nvesh Wisdom. 40:40 40 minutes, 40 seconds Please go ahead. 40:43 40 minutes, 43 seconds Uh yeah hello sir. Uh first of all again congratulations on a great set of numbers. 40:49 40 minutes, 49 seconds My question I just have little more of follow up on the raw materials especially on the gum turfing time. 40:56 40 minutes, 56 seconds So at least from the what I know that you know China is the global dominant supplier with around 60 to 70% of world 41:04 41 minutes, 4 seconds gum ting time. So is that also our supplier for GTO? 41:13 41 minutes, 13 seconds No. Ah okay okay. 41:18 41 minutes, 18 seconds All right. So we we have derived our pipeline from uh that right? Yeah. 41:24 41 minutes, 24 seconds And when we say sell China plus one Mhm. 41:28 41 minutes, 28 seconds are do we have any like new customer who has moved away from Chinese suppliers to us. 41:38 41 minutes, 38 seconds So you know uh you see uh Mr. Babari's interview in the morning on CNBC. He actually has you know very nicely stated that we were born out of China plus one. 41:48 41 minutes, 48 seconds It is now fashionable to say China plus one but the necessity of having an alternate supplier for aroma chemicals arose you know many 41:57 41 minutes, 57 seconds decades back and that's how PV came into being and um in terms of you know acquiring new customers um as as it is 42:05 42 minutes, 5 seconds you know I think all all the FNF companies as well as uh majority of FMCG companies which buy aroma chemicals we 42:14 42 minutes, 14 seconds are supplier to them and and they are more than happy to have a source which is in front of Chinese source and in 42:22 42 minutes, 22 seconds even even in case where we are saying China plus one strategy we never forget about getting back to basics and I explained in the previous question that 42:30 42 minutes, 30 seconds we would be fully backward integrated so you know that is what gives us the strength it's not just that we depend on China plus one but it also make oursel 42:37 42 minutes, 37 seconds very strong in terms of being fully backward integrated to get into the products that we are getting into to add 42:45 42 minutes, 45 seconds to what Sanjay is saying I'll literally say that we are indeed China plus one you know so so on on a lighter note 42:54 42 minutes, 54 seconds because we are backward integrated we are definitely China plus plus one 43:00 43 minutes great great great to hear that sir uh my uh second question is on the amalgamation of this proposed merger 43:09 43 minutes, 9 seconds between this uh you know this PSCL and PDA PDCL into PSCL any timeline uh uh for NPMP approval. 43:22 43 minutes, 22 seconds So as indicated in my opening remarks, we expect that to happen by this financial year. Maybe it can come in the 43:29 43 minutes, 29 seconds third quarter of this year uh is what uh internally we are targeting. In fact, 43:36 43 minutes, 36 seconds Got it. Thank you. Thank you so much, sir. Thank you. 43:41 43 minutes, 41 seconds Thank you. The next question is from the line of Mayor Panchwani from 40 cents. Please go ahead. 43:50 43 minutes, 50 seconds So thank you so much for the opportunity and uh pardon me because I'm new uh for this company. Uh sir uh are the new 43:59 43 minutes, 59 seconds specialtity projects uh which we are uh which are in pipeline and also the PG expansion 44:06 44 minutes, 6 seconds uh I mean all these would translate into u revenues uh in effort all of them or I heard that PG is already contributing. 44:18 44 minutes, 18 seconds I think Babali explained in the previous question that in the current financial year PG will give about 130 odd cr of 44:26 44 minutes, 26 seconds revenues and again 55 odd somewhere in the current financial year and the other other speciality molecules are still the 44:34 44 minutes, 34 seconds projects are being implemented and you will find revenues coming from those in the next 18 months or so or 18 months 44:41 44 minutes, 41 seconds almost right thank you so much and ma'am another question is both margins uh uh 44:49 44 minutes, 49 seconds the margins I think I heard that are sustainable about 25%. That's correct. 44:57 44 minutes, 57 seconds Uh okay% and and we will endeavor to stay there. 45:03 45 minutes, 3 seconds Right. Great sir. Sir last question about the partnership with the uh multinationals. Uh can you please uh 45:10 45 minutes, 10 seconds share uh elaborate a little bit on what are we working with these guys? I mean that is the JV that we talked about 45:18 45 minutes, 18 seconds where Mr. Babani also mentioned the numbers. So it is purely manufacturing certain high-end speciality chemicals 45:26 45 minutes, 26 seconds exclusively for our JV partner Jadan SA right and there there are two more right 45:34 45 minutes, 34 seconds or it's only only one there is only one JB 45:41 45 minutes, 41 seconds the other 100% subsidiary of the parent company all right okay okay sir thank you 45:48 45 minutes, 48 seconds thank you welcome thank Thank you. The next question is from the line of Karan Talw from Dam Capital. Please go ahead. 45:57 45 minutes, 57 seconds Yeah. Hi sir. Thank you for taking my question and congratulations on a good set of numbers. Uh so just a couple of 46:04 46 minutes, 4 seconds uh one from my side. So we seeing that uh in this quarter apparently our other expenses and power together have uh 46:12 46 minutes, 12 seconds declined both sequentially as well as y despite having a strong uh revenue growth and uh the prevailing disruption 46:19 46 minutes, 19 seconds in west Asia uh which should have typically increased your fake and logistic cost. So could you please help us understand what happened in this decline? 46:28 46 minutes, 28 seconds Yeah. So on the first part the power part uh you know I will give all the credit to our engineering team who has been working around the clock in terms 46:36 46 minutes, 36 seconds of saving steam and power. uh it's you know so therefore therefore overall fuel cost has come down and and we continue to work on that you know so we have a 46:45 46 minutes, 45 seconds program uh which is called as promax wherein we keep on working on you know utilizing the existing whatever is the 46:53 46 minutes, 53 seconds residual steam that is left we try and get value out of that and that's how that's why we have brought down the cost of power and steam and going forward you 47:00 47 minutes will see this trend continuing but these improvements come very slow and steady but uh certainly you And on the second 47:09 47 minutes, 9 seconds part of controlling expenses, I think we have Hawk here in our CFO who has been controlling all the cost and and uh he he I would leave the rest to Narend. 47:20 47 minutes, 20 seconds Yeah. So there has been a constant monitoring and an endeavor and we have been able to uh ensure that some of the contracts that we enter into with 47:28 47 minutes, 28 seconds various CHAs and freight forwarders um the prices have been uh you know uh uh very very uh definitely uh uh concisely 47:38 47 minutes, 38 seconds and precisely uh uh negotiated and you are able to see the better results out of that. In fact, and our end has always 47:46 47 minutes, 46 seconds been as also mentioned by me in my uh uh you know initial speech that it's a conscious decision of the entire 47:53 47 minutes, 53 seconds management effort of bringing down and keeping all the expenses under control and that's what you would see that it has helped in improving and increasing 48:01 48 minutes, 1 second the AITA margins over the previous years and we will continue sliding for that. 48:08 48 minutes, 8 seconds That's helpful sir. So uh secondly on uh the ITAB side that you mentioned on the current portfolio now uh with the 48:16 48 minutes, 16 seconds current uh mix how should we think about you know the remaining levers for a bit expansion from here uh what I need to 48:23 48 minutes, 23 seconds say is have the benefits of uh probably product mix optimization from your site stream and the operational efficiencies 48:30 48 minutes, 30 seconds have they been largely captured or can we see some meaningful upside from here on this is only 48:37 48 minutes, 37 seconds to answer So uh the epida margin should remain at these levels. Uh this is our endeavor. You can't expect uh you know 48:47 48 minutes, 47 seconds at the end of the day I happened to mention in my earlier uh thing also that we are manufacturers of uh chemicals and 48:54 48 minutes, 54 seconds we are not magicians. So there could be a particular limit up to which we could uh you know strive and get the abida margins going up. But with the scale of 49:02 49 minutes, 2 seconds operations that we're looking at you know uh absolute numbers you will see that it keeps growing around margins we should be in a position to sustain. 49:12 49 minutes, 12 seconds Uh that's sir uh so would you want to throw some light on if you are in any active discussions with other MC players 49:20 49 minutes, 20 seconds like he did with Jodan. Are there any others in the pipeline as well? Any discussion that you like to highlight? 49:26 49 minutes, 26 seconds uh discussions are always on but you know at this stage it is too premature for us to say anything at the appropriate time we will be uh you know 49:34 49 minutes, 34 seconds bringing the same to the world outside perfect sir so just ask from my end uh so uh what would be the state incentive 49:42 49 minutes, 42 seconds for this year for this fiscal sorry could uh could you repeat the question uh what would be the state incentive 49:51 49 minutes, 51 seconds that uh we may get from uh in this year so which is 25 26 or 26 for 26 as well as for 27. 50:01 50 minutes, 1 second See last year around uh the financials which has been audited uh uh on an 50:08 50 minutes, 8 seconds average we have received about close to 30 odd crores as state incentives from both the Gujarat as well as Maharashtra government. Of course this is been 50:17 50 minutes, 17 seconds offshoot of uh a couple of years. Going forward we expect as we have stated you know that these are uh incentive schemes 50:25 50 minutes, 25 seconds basis uh Maharasha government and state government of Gujarat are mentioning and we should be in a position of getting 50:32 50 minutes, 32 seconds 50% of the GST uh amount on sales made in the uh state uh within the local 50:40 50 minutes, 40 seconds state in fact so so we should be in this range only around sir thank you so much and all the time 50:47 50 minutes, 47 seconds thank you thank Thank you participants to ask a question you may press star and one. 50:56 50 minutes, 56 seconds The next question is from the line of sil Kapoor from antifragile thinking. Please go ahead. 51:04 51 minutes, 4 seconds Yeah, thanks for the opportunity. Uh I have two questions. Uh first uh you have spoken about biotechnology, enzyatic 51:12 51 minutes, 12 seconds chemistry and renewable feed stock as the strategic priorities. What I want to understand is the economic crossover 51:21 51 minutes, 21 seconds point. Uh for which product categories or molecules uh do you believe biiobased roots are or can realistically achieve 51:30 51 minutes, 30 seconds um cost parity or cost superiority versus you know conventional prochemical synthesis over let's say next three 51:39 51 minutes, 39 seconds years. And what are the key bottlenecks still preventing wider commercial adoption today? 51:49 51 minutes, 49 seconds Okay. So I will I'll answer this question now. 51:53 51 minutes, 53 seconds So the very purpose of putting a demonstration plan is to is to uh uh you know assess in detail the overall 52:02 52 minutes, 2 seconds overall economics and and as we stand here today we do see merits in uh biotechnology root and and adding value 52:10 52 minutes, 10 seconds to that. So what is it that that PB does differently. So majority of of of work that is going on in in biotechnology 52:18 52 minutes, 18 seconds right now is about making 2G alcohol you know or a fuel. Whereas what we are doing is actually a refinery where we 52:25 52 minutes, 25 seconds have multiple products you know which are of significantly higher value than alcohol which can at best get you price 52:32 52 minutes, 32 seconds of 1057 rupees for a 2G alcohol producer. So we are we are looking at more higher value products which is what 52:39 52 minutes, 39 seconds makes these economics plausible. But then having said that the technology is very complex uh and that's why we are 52:46 52 minutes, 46 seconds putting a demonstration plan u which which will come up in the next probably 12 months or so and once we operate that 52:53 52 minutes, 53 seconds demonstration plan continuously then uh we will establish these you know and one of the reasons why these plants do turn 53:02 53 minutes, 2 seconds out to be economically unviable is the capex cost. So while an on operating basis most of the bow waste is available 53:10 53 minutes, 10 seconds at through basis but it is what you do with it in terms of one uh adding adding value to it which is what we are doing. 53:18 53 minutes, 18 seconds Uh but on the other hand the capex that is required is significant you know so that's how that's how the return on capital has to be you know well 53:27 53 minutes, 27 seconds calibrated uh which is the reason why we are going for a demonstration plan. So it's a very cautious approach. Cautious to be very optimistic but cautious near 53:35 53 minutes, 35 seconds the risk. That's that's the answer your question. 53:40 53 minutes, 40 seconds Yes. So what what I was trying to get from my question was the economic crossover point because if you see historically new manufacturing paradigms 53:49 53 minutes, 49 seconds um and and biotechnology enzyatic chemistry um in aroma and fragrance is 53:56 53 minutes, 56 seconds is a new paradigm but the but they only scale when they start to outperform the 54:03 54 minutes, 3 seconds incumbents on both the cost as well as the performance because you need to achieve both the cost parity if not 54:10 54 minutes, 10 seconds superiority as well as uh at least at par performance or better performance at using a newer sort of manufacturing 54:19 54 minutes, 19 seconds paradigm. So I was just trying to frame [clears throat] my question from that perspective. Are we are we are we likely to get there in the next um 3 years or 54:28 54 minutes, 28 seconds so or is this kind of a more of a we are definitely likely to get there because as I said one of the key parameters there is the what kind of 54:35 54 minutes, 35 seconds products you're making. So uh when you make premium products you know you definitely make the economics turn in your favor and that's what that's what we we are doing. 54:48 54 minutes, 48 seconds So this if in if we get there in three years this will be a kind of a paradigm shift in the chemicals manufacturing 54:54 54 minutes, 54 seconds because the whole world um many many uh materials are currently 55:01 55 minutes, 1 second uh they haven't got any alternate synthesis route other than you know the feed stock based on the fossil fuels and 55:09 55 minutes, 9 seconds if you could crack biotechnology at scale keeping the economics and the performance um at par then I think it 55:16 55 minutes, 16 seconds can be a game changer Yes indeed it it would be for sure. Let me give you a example. There are two large companies 55:25 55 minutes, 25 seconds in our space who have succeeded on six or seven products in this space on six 55:31 55 minutes, 31 seconds seven molecules which are large you know $30, $40, $50. Now our challenge is coming when we are doing this. We are 55:40 55 minutes, 40 seconds confident that about the five molecules we are launching three of them are below $10 or below $5 55:50 55 minutes, 50 seconds but they are one of the items which is few percentage of that volume is at $90 55:58 55 minutes, 58 seconds $80 $70 but we want to multiply so much that we don't mind selling it at $50. So 56:04 56 minutes, 4 seconds we making we having a lot of challenges in assessing the market. So we have been meeting all the customers. In fact how 56:13 56 minutes, 13 seconds will the elasticity of demand span out if we launch it at $45. So everyone is confident the market will multiply 56:21 56 minutes, 21 seconds multiple if we launch it. So we produce right now only few kilos or maybe 10 56:28 56 minutes, 28 seconds kilos and we are in the process in the next couple of years we'll produce few 56:34 56 minutes, 34 seconds tons and then take a market research and then launch it because we don't want to 56:41 56 minutes, 41 seconds put you know any shareholder money to this once we are sure of it we'll go full swing 56:50 56 minutes, 50 seconds and that may take three four years. So this is beyond 5,000 beyond beyond 5K 56:57 56 minutes, 57 seconds story and we are working the top team of preying is working beyond 5K 5K the team is different and beyond 5K the team is different. 57:09 57 minutes, 9 seconds No thank you for thank thanks so much for this um comprehensive response very sensible thinking I must appreciate and 57:17 57 minutes, 17 seconds look forward to all the execution in the coming years as well. Thank you so much. 57:22 57 minutes, 22 seconds Keep our fingers crossed we surely succeed and uh it's our endeavor to do this going to bring something good good 57:30 57 minutes, 30 seconds molecules on earth so that we we will be you know uh making a significant name in 57:38 57 minutes, 38 seconds the world markets. Our expectation is to reach beyond the expectations one can imagine. 57:46 57 minutes, 46 seconds Absolutely amazing to hear that. Thank you so much for all the responses. Many thank you. Thank you. Thank you. 57:53 57 minutes, 53 seconds Thank you ladies and gentlemen. That was the last question for today. I would now like to hand the conference over to Mr. 58:00 58 minutes Nada and for closing comments. 58:04 58 minutes, 4 seconds Thank you. And on behalf of Pre Specialtity Chemicals Limited, I thank all of your investors, shareholders and every person there attending this call 58:13 58 minutes, 13 seconds and listening to the perspective from the management of PR. Uh thank you everyone and looking forward to keep interacting with all of you going 58:21 58 minutes, 21 seconds forward. Mr. Mahish Babani really uh thank the person who asked that question so that my other shareholders also could 58:28 58 minutes, 28 seconds listen what we are doing they'll also be able to get knowledge of what impossible things we are trying to do. So thank you 58:38 58 minutes, 38 seconds for that on that positive uh uh statement and sentence by Mr. Mahesh Babana visionary 58:45 58 minutes, 45 seconds chairman and managing data. We have preed the management team say goodbye as of now. Uh but thank you. 58:56 58 minutes, 56 seconds Thank you ladies and gentlemen on behalf of PB Specialty Chemicals Limited that concludes this conference. Thank you for joining us and you may now disconnect 59:05 59 minutes, 5 seconds your lines. I