Rossari Biotech Ltd — Q4 FY26

Rossari Biotech Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=JVCviEoN4VY Published: 2 weeks ago

0:00 Ladies and gentlemen, good day and welcome to Razari Biotech Limited's earnings conference call. As a reminder, all participant lines will be in the 0:09 9 seconds listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. 0:16 16 seconds Should you need assistance during the conference call, please signal an operator by pressing star and Z on your touchstone phone. Please note that this 0:23 23 seconds conference is being recorded. I now hand the conference over to Mr. Natashen from CDR India. Thank you and over to you Mr. 0:31 31 seconds Jen. 0:33 33 seconds Thank you Rousila. Good evening everyone and thank you for joining us on Rosari Biotech Limited Q4 and FY26 earnings conference work. We have with us Mr. 0:43 43 seconds Edward Manages promoter and executive chairman Mr. Sunil Jari promoter and managing director and Mr. Chan Sabloop 0:51 51 seconds group chief financial officer of the company. We will begin the call with opening remarks from the management following which we will have the forum open for a question and answer session. 1:02 1 minute, 2 seconds Before we start, I would like to point out that some statements made in today's call may be forward-looking in nature and our disclaimer to this effect has 1:10 1 minute, 10 seconds been included in the earnings presentation shared with you all earlier. I would now like to invite Mr. 1:16 1 minute, 16 seconds Edward Manis to make his opening remarks. Thank you and over to you sir. Uh thank you Mitesh. 1:25 1 minute, 25 seconds Uh good evening everyone and thank you for joining us on our earnings conference call. It is a pleasure to have you with us as we discuss our 1:34 1 minute, 34 seconds operational and financial performance for the quarter and the full year ended March 31, 2026. 1:42 1 minute, 42 seconds We concluded the year 26 on a very strong note with Q4 marking our highest ever quarterly 1:50 1 minute, 50 seconds revenue and AIDA performance for the full year. We delivered revenue growth 1:55 1 minute, 55 seconds of 15% which was primarily volumedriven performance during the year was supported by healthy traction across 2:04 2 minutes, 4 seconds businesses and steady progress in the international markets. While the year saw its share of external challenges, 2:12 2 minutes, 12 seconds including volatility in certain raw materials, markets and disruptions arising from geopolitical developments in the Middle East, the business 2:21 2 minutes, 21 seconds remained resilient with all our key segments delivering healthy growth during the quarter. 2:28 2 minutes, 28 seconds A key area of focus for us continues to be R&D and innovation. We are gradually evolving from a formulation-led approach 2:37 2 minutes, 37 seconds towards developing broader platform technology with multi-vertical applicability enabling more scalable and 2:45 2 minutes, 45 seconds differentiated solutions across end user segments. 2:50 2 minutes, 50 seconds During the year, this translated into meaningful progress in product development and application-led 2:56 2 minutes, 56 seconds innovation with newer products contributing increasingly to the business and sustainable chemistries including biurfactants gaining traction. 3:07 3 minutes, 7 seconds To further strengthen this capability, we set up a new R&D facility in Nav'i, Mumbai, which brings together our 3:14 3 minutes, 14 seconds existing R&D operations, including the IIT Mumbai center under one roof. We expect this facility to provide a 3:23 3 minutes, 23 seconds stronger platform for innovation, product development, and application-led research while also improving collaboration and supporting faster 3:32 3 minutes, 32 seconds scale up of new technologies in line with our long-term growth priorities. 3:37 3 minutes, 37 seconds On the manufacturing front, UNTOP commissioned additional ethoxilation capacity at the age taking the total 3:45 3 minutes, 45 seconds install installed capacity to 66,000 metric tons peranom. 3:52 3 minutes, 52 seconds This expansion enhances supplier reliability and improves our ability to serve customer requirements more 3:59 3 minutes, 59 seconds effectively. At the same time, we are reviewing our broader investment plans across businesses in line with evolving 4:07 4 minutes, 7 seconds business requirements and market conditions. We're also working to strengthen the operational backbone of 4:14 4 minutes, 14 seconds the of the organization in our SAP S4 HANA implementation is helping create a 4:22 4 minutes, 22 seconds stronger digital foundation across the business, improving visibility, coordination, and decision making across 4:29 4 minutes, 29 seconds functions. In parallel, we continue to advance our responsible manufacturing agenda through structured waste 4:36 4 minutes, 36 seconds management and sustainability, sustainability operational practices. 4:42 4 minutes, 42 seconds Overall, FY26 has been a year of strong execution, capability building, and strategic progress. With a diversified 4:51 4 minutes, 51 seconds portfolio, strengthened R&D capabilities and expanding capacities, we believe we 4:58 4 minutes, 58 seconds are well placed to drive the next phase of growth in a more integrated, innovation-led and scalable manner. 5:05 5 minutes, 5 seconds With this, I now invite Mr. Sunil Shari to share additional perspectives on our business performance and strategic priorities. 5:16 5 minutes, 16 seconds Thank you Edward sir and a warm namaste to everyone. 5:19 5 minutes, 19 seconds FI26 was a year of steady progress for the company and we are pleased to report a strong finish to the year. 5:28 5 minutes, 28 seconds Our performance during the quarter was broad-based with all three business segments delivering healthy doubledigit growth. 5:37 5 minutes, 37 seconds A diversified portfolio and balanced exposure across end markets supported performance during the period despite a dynamic of operating environment. 5:50 5 minutes, 50 seconds From a segment perspective, HPPP delivered growth of 20% during the quarter. Textiles grew by 10% and AHM recorded a growth of 10 11%. 6:02 6 minutes, 2 seconds This performance was supported by continued customer engagement, product development efforts and steady execution. 6:10 6 minutes, 10 seconds Our focus remains on strengthening customer relationships, expanding the product market, improving market 6:18 6 minutes, 18 seconds penetration, and building scale in relevant chemistries and applications. 6:23 6 minutes, 23 seconds On the export trend, we witnessed continuous momentum during the year with exports growing by 11% yearonear in FY26 6:32 6 minutes, 32 seconds supported by deeper engagement with existing customers and expansion into geographies across Latin America, Europe, Southeast Asia, and Africa. 6:43 6 minutes, 43 seconds Our focus on increasing wallet share with key partners and expanding into newer markets continues to strengthen our international banker business and 6:51 6 minutes, 51 seconds diversify our growth profile. On the domestic side, demand conditions remain relatively soft during the certain periods of the year. Performance in the 6:59 6 minutes, 59 seconds institutional and B2C businesses are also remain subdued. As discussed earlier, we are actively undertaking 7:07 7 minutes, 7 seconds cost optimization and portfol port portfolio externalization initiatives in this segment. 7:13 7 minutes, 13 seconds On the international expansion front, we are making progress on our corros initiative in the Kingdom of Saudi Arabia. As shared earlier, this remains 7:22 7 minutes, 22 seconds an important strategic step towards strengthening our long-term manufacturing footprint 7:29 7 minutes, 29 seconds and enhancing supply side competitiveness in part of the recent geopolitical developments. We 7:36 7 minutes, 36 seconds remain confident of our Kingdom of Saudi Arabia expansion plans. At the same time, we remain watchful of the external 7:43 7 minutes, 43 seconds environment, the ongoing conflict in the Middle East that create uncertainty across markets, supply chains, and 7:51 7 minutes, 51 seconds logistics. And this may have an impact over the coming quarters. While our Saudi initiative reflects a long-term 7:57 7 minutes, 57 seconds strategy direction, our immediate focus remains on navigating the current environment through closer customer 8:04 8 minutes, 4 seconds engagement, calibrated pricing actions, and disciplined execution. Overall, we remain committed to building the 8:12 8 minutes, 12 seconds business with a clear focus on growth and long-term value creation. 8:16 8 minutes, 16 seconds The strategic step we have taken across capacity expansion, portfolio development, customer relationships, 8:23 8 minutes, 23 seconds exports, and international initiatives are steadily strengthening the foundation of the business. We believe 8:30 8 minutes, 30 seconds these efforts are putting the right building blocks in place to significantly accelerate growth over the next two to three years. As we move 8:39 8 minutes, 39 seconds forward, our focus will remain on disciplined ex execution, strengthening our market coalition and building a more 8:46 8 minutes, 46 seconds scalable and resilient platform for future growth. Thank you once again for your continued support and I now invite 8:54 8 minutes, 54 seconds Kevin to take you through the financial aids. 8:59 8 minutes, 59 seconds Thank you Mr. Chari and good evening everyone. Let me take you through the financial highlights for the quarter and the year ended March 31st 2026. 9:10 9 minutes, 10 seconds In Q4 FI26, we delivered a strong performance with revenue from operations at rupees 684.9 9:19 9 minutes, 19 seconds crores, registering a growth of 18% Y. 9:24 9 minutes, 24 seconds AITA for the quarter stood at rupees 77.3 crores, up 11% Y with an AITA 9:31 9 minutes, 31 seconds margin of 11.3% compared to 12% in the corresponding period last year. 9:39 9 minutes, 39 seconds Notably, this quarter marked the company's highest ever quarterly revenue and absolute AITA performance. 9:48 9 minutes, 48 seconds For the full year FY26, revenue from operations stood at rupees 2396.4 crores, reflecting a growth of 15% YI. 10:00 10 minutes AITA for the year was at 286 crores up 88% Y while AITA margin stood at 11.9% compared to 12.7% in FYI25. 10:14 10 minutes, 14 seconds The year's performance was supported by healthy growth uh healthy growth across business segments even as margins 10:23 10 minutes, 23 seconds remained influenced by the prevailing cost environment. 10:28 10 minutes, 28 seconds Gross margins during the periods were relatively lower with the quarters sales mix having an impact on the overall margin profile. 10:38 10 minutes, 38 seconds Also, March saw some raw material price increases. Some of them were to the tune of 25 to 30% which impacted the costs. 10:48 10 minutes, 48 seconds Some of our older orders for the quarter were also honored in the month of March. 10:55 10 minutes, 55 seconds Some of these cost increases have since been passed on to the customers and some of them are in the process of happening 11:02 11 minutes, 2 seconds over the month of April and May. 11:07 11 minutes, 7 seconds That said, higher revenues along with discipline, cost management and operating efficiencies helped contain 11:14 11 minutes, 14 seconds the impact at the AETA level. Our institutional and B2C businesses continued to operate in a challenging 11:22 11 minutes, 22 seconds environment during the year which had an impact on overall profitability. 11:29 11 minutes, 29 seconds We are taking calibrated steps to optimize costs and improve operational effic efficiencies in this segment. 11:36 11 minutes, 36 seconds While growth in these verticles remained muted, losses have continued to moderate through the second half of the year. 11:44 11 minutes, 44 seconds This is driven by our focus on improving product mix, enhancing operational efficiency and maintaining cost stability. 11:53 11 minutes, 53 seconds Excluding the institutional and the B2C businesses, our core B2B operations delivered an actor margin of 14% for the 12:02 12 minutes, 2 seconds year, reflecting the underlying strength and stability of our core business. 12:07 12 minutes, 7 seconds On the cost front, expenses remained elevated during the year primarily on account of ongoing investment in capacity expansion, new business 12:16 12 minutes, 16 seconds development and capability building. As these investments scale up and utilization improves, we expect the 12:25 12 minutes, 25 seconds operating leverage to support margin improvement over the coming years. 12:32 12 minutes, 32 seconds The other income during the quarter includes sales of our office space in Mumbai. The net income from these sales 12:38 12 minutes, 38 seconds is rupees 19 crores. This is our first step towards liquidating some of our non-core assets. More of these we plan to do during this current year. 12:50 12 minutes, 50 seconds Our balance sheet remains strong with healthy liquid liquidity and comfortable leverage levels providing us flexibility 12:58 12 minutes, 58 seconds to pursue our growth initiatives. We continue to focus on efficient working capital management and improving operational efficiencies. across businesses. 13:09 13 minutes, 9 seconds In this step, we internally have decided to reface our earlier capex spend which was announced in April of rupees 1909 92 13:18 13 minutes, 18 seconds crores across Rosari unit of Tristar. 13:24 13 minutes, 24 seconds The re-evaluation of this said investment plan is being done in light of the evolving business requirements and the market conditions. 13:33 13 minutes, 33 seconds As we move into FI27, our focus will remain on improving capacity utilization, driving operating 13:40 13 minutes, 40 seconds efficiencies and scaling our growth initiatives in a calibrated manner. We also remain focused on enhancing margin 13:49 13 minutes, 49 seconds profile through better product mix, operating leverage and continued cost control while maintaining a prudent approach to 13:58 13 minutes, 58 seconds capital allocation and balance sheet strength. 14:02 14 minutes, 2 seconds That's all from my side. Thank you everyone. I would now request Mites to open up for question and answer. 14:11 14 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 14:19 14 minutes, 19 seconds telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use answers while asking a 14:28 14 minutes, 28 seconds question. Ladies and gentlemen, we will wait for a moment while the question cube assembles. 14:44 14 minutes, 44 seconds The first question is from the line of Madur Radi from Counter Cyclical Investments. Please go ahead. 14:51 14 minutes, 51 seconds So firstly if you could uh tell us that what is the expectation shareholders should be having for FY27 considering 14:59 14 minutes, 59 seconds the uh Iran war and increase in raw materials and so on. So what kind of growth are we looking at top line and 15:07 15 minutes, 7 seconds what should be the consolidated operating margins that we are expecting. 15:14 15 minutes, 14 seconds Yes. So uh [clears throat] Madu currently as you know the situation is very dynamic things are changing every 15:22 15 minutes, 22 seconds day but uh for us I think uh internally what we see and what uh we have uh 15:31 15 minutes, 31 seconds planned is that our growth for the next year we continue to do at least minimum the similar kind of growth that we've 15:38 15 minutes, 38 seconds done in this year. Uh hopefully if things improve our growth trajectory will be much better. Uh we we we will 15:47 15 minutes, 47 seconds have the new capacities now on stream for the full year and we are expecting the new EO capacities in Reliance to 15:55 15 minutes, 55 seconds also come in the later part of this year probably by uh the uh by quarter three 16:02 16 minutes, 2 seconds that's what we have. So uh currently the way we understand minimum we should be able to deliver this kind of a growth 16:10 16 minutes, 10 seconds that we've done in this year and anything uh if the situation globally improves it will only add on to our growth plans. 16:19 16 minutes, 19 seconds Sure. And what about the beta margins? 16:24 16 minutes, 24 seconds Yeah. So currently the actor margins uh will remain at uh these current levels between 12 to 13%. 16:33 16 minutes, 33 seconds Uh there are certain initiatives which we have planned uh for this year in terms of getting into some of uh better marginal uh segments like pharma etc. 16:44 16 minutes, 44 seconds Some of those will come into play uh probably by the second half of this year. So that should help us uh improve 16:52 16 minutes, 52 seconds the bargain. But currently uh we would we would be what we would like to put forth is the current margin will be maintained in the next year also. 17:03 17 minutes, 3 seconds Understood. And sir if you could give us some idea about uh segment wise margins 17:09 17 minutes, 9 seconds broadly like HPCC and uh textile social chemical and animal nutrition business. 17:16 17 minutes, 16 seconds Each of these business what is the AITA margin profile? 17:21 17 minutes, 21 seconds So this is some data we don't uh put forth uh and we don't talk about it but 17:28 17 minutes, 28 seconds uh to give you a sense of the margins uh at the AITA level the most of these 17:36 17 minutes, 36 seconds three businesses stay at at the company level margin some of them uh uh could be slightly higher a 17:44 17 minutes, 44 seconds percent or two plus finals but generally they are at uh the same level On the gross margin side, I can give you an 17:53 17 minutes, 53 seconds textiles has a has a a decent gross margin. EN has a higher margin and HPPC 18:02 18 minutes, 2 seconds since it's a mix of both agro, non-aggro and other products, the gross margins are are are a mixed bag. But the cost 18:11 18 minutes, 11 seconds profiles in each of these uh businesses, the fixed cost profiles are slightly varied. So at the AITA level they 18:19 18 minutes, 19 seconds generally come out to be the company level AITA. 18:25 18 minutes, 25 seconds Okay. So at least if you could give us some sense that which of these three divisions enjoys the highest margins and which enjoys the lowest margin. So that 18:34 18 minutes, 34 seconds will be enough for shareholders to at least get a sense that in future if the mix changes then what should be the 18:41 18 minutes, 41 seconds impact on the margins from that's where I'm coming from. 18:46 18 minutes, 46 seconds Yeah. So at the gross margin levels I think uh the the smallest business segment of our VHM enjoys the highest uh 18:55 18 minutes, 55 seconds gross margin but within HPPPC uh if you ask me the uh agro and the oil 19:03 19 minutes, 3 seconds and gas have better gross margins and pharma is a segment that we are going to start expanding from this year that once 19:11 19 minutes, 11 seconds it that business becomes a reasonable size it's going to fetch us the highest gross margin across all these segments. 19:20 19 minutes, 20 seconds Okay. And what about textile is the lowest? 19:24 19 minutes, 24 seconds So textile again has has a split of specialtity and uh little bit of the commodity chemicals. So within the 19:31 19 minutes, 31 seconds specialtity textile margins are very handy and uh sir in each of these divisions who would be our closest competitors. 19:43 19 minutes, 43 seconds So as we have given in the past in animal nutrition there are global majors uh like uh chem 19:52 19 minutes, 52 seconds like cargill like no uh what is uh uh wet neck 20:00 20 minutes you know which is spiser which is now become mortis and then uh there are companies from Indian markets like 20:09 20 minutes, 9 seconds natural remedies and jubilant who are there in the nutrition market. Uh in the textile uh majorly we have you know our 20:18 20 minutes, 18 seconds chroma who also uh has a constant portfolio in the B portfolio uh as a leader but there are other 20:26 20 minutes, 26 seconds multinationals like uh Kona uh like CHT and Pulkar in the home personal care and 20:36 20 minutes, 36 seconds performance chemicals. uh in different segments we are different but uh the global majors like BSL, DA, Liz, 20:44 20 minutes, 44 seconds Shinsco, Elonic uh they they are uh you know the players who rule the market 20:54 20 minutes, 54 seconds globally but there are other companies like Star you know Saudi Arabia uh Petronas who have integrated but also 21:02 21 minutes, 2 seconds Chinese companies are there uh but uh the Indian market you know uh there's import coming in from all the sources 21:10 21 minutes, 10 seconds but also from domestic like India black which is there understood and for textile chemical is a 21:19 21 minutes, 19 seconds listed company finex chemical are they our competitors or it's a different business no there are two they also have textile 21:27 21 minutes, 27 seconds chemicals and other special so is it like to like product portfolio or is it varied 21:36 21 minutes, 36 seconds I cannot comment because I don't know the okay and and sir post this capex that is 21:43 21 minutes, 43 seconds expected to get completed what will be the peak uh revenue potential of the company if we operate at full utilization across our manufacturing 21:52 21 minutes, 52 seconds facilities across divisions then what is the broad topline that we'll be able to achieve 21:59 21 minutes, 59 seconds you should do an asset turn of at least three between three to four at peak utilization Understood. 22:10 22 minutes, 10 seconds Okay. So, thanks a lot. And uh sir, one last thing sir, we are trading at like less than 10 times a bit which is a historical low. So, any plans to do a share buyback? 22:23 22 minutes, 23 seconds No, we nothing like that from the card. 22:27 22 minutes, 27 seconds Okay sir. Thank you very much and thank you. The next question is from the line of Rohit Nagaraj from 361 Capital. 22:37 22 minutes, 37 seconds Please go ahead. 22:39 22 minutes, 39 seconds Yeah. Uh thanks for the opportunity and good to hear the volume growth coming back. Uh so two questions on the business side and a couple of them on 22:47 22 minutes, 47 seconds the financial side. Uh first in terms of sourcing of raw material. So how much of 22:53 22 minutes, 53 seconds our uh RM baskets is crude uh linked and in terms of sourcing how are we 23:00 23 minutes currently placed both from alic acid and EO which are again crude linked and 23:07 23 minutes, 7 seconds lastly in terms of domestic and international sourcing how does that also look like? Thank you. 23:15 23 minutes, 15 seconds So currently our uh this is Sun Chari here. Uh currently our raw material position looks to be 23:22 23 minutes, 22 seconds stable. Our supply chain teams have you know uh been able to maintain all the raw materials. Uh we do not have stock uh shortages of any raw material. 23:33 23 minutes, 33 seconds Ethineoxide supply also is very stable. 23:36 23 minutes, 36 seconds Uh so we have no no worries on that. uh raw material prices have gone up and raw material prices we have been able to pass through in in in the in the in the 23:45 23 minutes, 45 seconds current uh marketplace. Uh ethic is made domestically. So we have no imports and other raw as we know you know we do not 23:54 23 minutes, 54 seconds have too much uh uh imports of our raw materials. So whatever are there so 24:01 24 minutes, 1 second phenol you know is available you know from various sources including Thailand including Malaysia uh you know including 24:09 24 minutes, 9 seconds India uh and including China and we are not buying anything from varish now but there's also a lot of material coming from US which does not pass through the 24:18 24 minutes, 18 seconds state of commerce and then there is similar other raw materials like acidic acid which which has plenty of other sources 24:27 24 minutes, 27 seconds We have silicones which come in from China. Acrylic acid is something which India manufactures and you know it comes 24:33 24 minutes, 33 seconds from various sources. uh so unlike you know other industries our dependence uh on Middle [clears throat] East is not as 24:42 24 minutes, 42 seconds much as uh the other countries of course uh prices globally have risen and uh last quarter last month especially uh we 24:51 24 minutes, 51 seconds had you know to buy some houses at higher prices but we had you know orders from the customers and that impacted our gross margins uh but uh from this month 25:00 25 minutes onwards we've been able to pass through all you know our high high h high 25:07 25 minutes, 7 seconds raw materials uh into uh you know adding margins and getting the budget prices the customers are accepting because 25:14 25 minutes, 14 seconds everybody everybody can see uh the global geopolitical situation uh going forward also I don't foresee any uh 25:23 25 minutes, 23 seconds issues on sourcing and availability for the range of raw materials which we buy now 25:30 25 minutes, 30 seconds sure that is helpful uh second question in terms uh just to understand the 25:37 25 minutes, 37 seconds postponement of KEX. So it was exactly one year back we had announced we were supposed to commission it now. So why 25:46 25 minutes, 46 seconds you know such a late announcement in terms of postponing it? What has been the main factor for reconsidering that? 25:53 25 minutes, 53 seconds Thank you. 25:56 25 minutes, 56 seconds So Rohit uh on the capex front I think uh it seemed that our earlier capex also 26:04 26 minutes, 4 seconds got uh you know we had uh um kind of delayed that uh the oxygen capacities 26:11 26 minutes, 11 seconds which were also supposed to come year before last but then Reliance again 26:17 26 minutes, 17 seconds redid its uh plan for capacity expansion and hence we also slowed down in that capex spend. 26:26 26 minutes, 26 seconds and uh you know that we have um with that capacity we have capitalized now 26:33 26 minutes, 33 seconds partly in Q3 and the balance now in Q4 in the month of March. So the other 26:40 26 minutes, 40 seconds capex plan which we had announced uh in in the April of last year which had a 26:47 26 minutes, 47 seconds mix of uh products uh in the amine range as well as some pilot plants some R&D expansion in at the sides. 26:59 26 minutes, 59 seconds So some of them you know because of these the earlier capex getting a little delayed. So even this capex we decided 27:07 27 minutes, 7 seconds not to immediately go and start uh uh spending on this keeping uh in mind the 27:14 27 minutes, 14 seconds current business environment and uh the overall global uh you know situation 27:20 27 minutes, 20 seconds that's prevailing. Um also the spend which we had planned for the R&D at 27:27 27 minutes, 27 seconds sites we went ahead and we've now set up this new R&D facility at Nabi Mumbai. So 27:33 27 minutes, 33 seconds probably our R&D needs we plan to get it accomplished from here itself and the 27:40 27 minutes, 40 seconds some of the other uh smaller products and mines that we had planned. I think it's not that we've decided not to go 27:48 27 minutes, 48 seconds ahead with this. We probably now reface this entire spend over this year and 27:55 27 minutes, 55 seconds partly next year. So that is something which we are internally still uh planning out that how we should uh you 28:04 28 minutes, 4 seconds know plan out this spend because that total spend was also to the tune of 190 crores if you add up at all these three 28:12 28 minutes, 12 seconds sites. So a little bit of change in in the our strategy and also the business environment but this trend will happen. 28:20 28 minutes, 20 seconds These are new products which we are working some of them we definitely do this year. because there is a uh there's 28:28 28 minutes, 28 seconds a part uh work on one of the uh pharma products also. So that will surely come up uh sometime in this year but some of 28:36 28 minutes, 36 seconds the other spend probably we will reook and rephase it. It's just an more optimization of our spend in terms of 28:46 28 minutes, 46 seconds cash flow management and uh the ratios that we are looking ROC. 28:52 28 minutes, 52 seconds We would like at least the current capacities to give back some of the returns that we have DMR and then probably go ahead and spend on these 28:59 28 minutes, 59 seconds balance capexes. So that's what was the thought and since uh we thought it was prudent that we talk to the investors and and everyone about this. 29:12 29 minutes, 12 seconds Yeah. Uh just one allied question on that. uh in terms of capex what is the number that we are looking this year and 29:20 29 minutes, 20 seconds current what is what is the gross debt including the long-term as well as working capital and given that uh the kx 29:28 29 minutes, 28 seconds plan is now uh you know meowed down uh we will be looking at pairing of the bet 29:35 29 minutes, 35 seconds in the next one year one and a half year thank you yeah so uh the capex plan for this year 29:43 29 minutes, 43 seconds would be I I think anything between 50 to 75 crores that is the plan. We would not like to spend anything more than 29:51 29 minutes, 51 seconds that. Uh and that also at at a very peak level we would reach that 70 75 cr 29:59 29 minutes, 59 seconds number. And in terms of uh uh the debt that we have now almost we have uh 200 30:07 30 minutes, 7 seconds odd cr I think of uh long-term uh debt and the balances will be short-term uh 30:14 30 minutes, 14 seconds working capital borrowing. some of the other plans that we have in this year. 30:20 30 minutes, 20 seconds Uh one of course to use the cash flows to bring down the overall debt levels 30:27 30 minutes, 27 seconds and secondly also uh to uh shed off some of the non-core assets that are there in 30:34 30 minutes, 34 seconds in the books. So one we already did in the last quarter which was the office space at Mumbai. uh we have a couple of 30:42 30 minutes, 42 seconds more office spaces here and some of some more uh as effects across India uh which we are currently not utilizing. So we'll 30:51 30 minutes, 51 seconds try to get rid of all these all these uh noncore assets and there are some 30:58 30 minutes, 58 seconds further plans uh which we have in terms of uh um trimming our our product profile 31:06 31 minutes, 6 seconds business segments. uh some of them we plan to you know bring it uh uh on ground in this year. So all these we 31:14 31 minutes, 14 seconds expect will help us prune down our over improve our cash flows and tune down the overall debt probably by the end of this 31:22 31 minutes, 22 seconds this year. Okay. So that's what the plan is that over the next this year and probably probably by and in another 18 31:32 31 minutes, 32 seconds months we should be able to bring down our debt significantly. 31:35 31 minutes, 35 seconds The target is to actually get debt free by by in the next 18 months but I think that that the time is there but currently the plan is to keep bringing down our debts over the next 18 months. 31:49 31 minutes, 49 seconds Uh sure that is helpful. Uh one more last question in terms of current intoxillation 31:56 31 minutes, 56 seconds u you know after this 56,000 tons what is the utilization level that we are currently working on and uh in terms of 32:05 32 minutes, 5 seconds the epoxilate product uh how has been the response from the customers given that uh the pricing I mean raw material 32:13 32 minutes, 13 seconds prices have gone up and consequently the product prices have also gone up so how comfortable are the customers to pay for 32:21 32 minutes, 21 seconds it or is there any demand side challenge which may eliminate if not now or maybe a month couple of months later. Thank you. 32:30 32 minutes, 30 seconds So there is no demand side challenge orders remain robust. Uh the aggro season is dependent on Elino uh the Lino 32:39 32 minutes, 39 seconds effect can affect the aggro season. uh uh it's too early to comment but uh uh 32:47 32 minutes, 47 seconds we had worries last year also uh but nothing matter all uh other than that uh 32:54 32 minutes, 54 seconds uh uh the glo the global situation uh we don't see any fall in demand uh uh we 33:03 33 minutes, 3 seconds see you know a good uh pipeline of projects which our sales teams and business development teams have you know 33:10 33 minutes, 10 seconds worked on in the last 12 months and uh we should be able to the results of those uh uh initiatives. 33:18 33 minutes, 18 seconds Uh and the utilization level formation currently utilization levels for is practically 33:25 33 minutes, 25 seconds you know 90 to 100%. whatever maximum we can do uh you know we we run 24 by uh 7 33:33 33 minutes, 33 seconds days 35 days a year uh and apart from uh whatever it gets you know stopped for uh 33:40 33 minutes, 40 seconds expansion uh uh we don't have a single downtime in anything and uh we have 33:48 33 minutes, 48 seconds added it to new you know expansion capacities uh so we are confident that reliance you know will you know add uh 33:57 33 minutes, 57 seconds release more EO from December when the expansion you know is done the the partial expansion is done because more is coming up in the next financial uh 34:05 34 minutes, 5 seconds next December that is always so we should see uh availability of EO and we have the capacity and uh we think the 34:14 34 minutes, 14 seconds market is also there yes uh thanks for answering all the questions and all the best 34:22 34 minutes, 22 seconds thank you the next question is from the line of Maitrica from Safire Capital. Please go ahead. 34:28 34 minutes, 28 seconds Yeah. Hello. Good afternoon. Am I audible? Yes. Please continue. 34:34 34 minutes, 34 seconds Yeah. Hello. Uh I have a couple of questions. Firstly, you mentioned that we doing around 50 to 70 crickets for by 34:41 34 minutes, 41 seconds for by 27 and part of it is going for the farmer facility. Um any others are we adding other than the farmer facility for this year? 34:52 34 minutes, 52 seconds Yeah, apart from the sauna facility, we are going to do couple of small capsules. Uh 34:59 34 minutes, 59 seconds uh one of them is probably going to be in the aroma chemical space. Uh so that's what these are the two we have at 35:08 35 minutes, 8 seconds least now uh concluded that we should do it in in this year that two are the big ones big ones in that number of years. 35:19 35 minutes, 19 seconds Okay. Um secondly on the farmer side you mentioned that our margins are the gross margins are the highest among them all. 35:25 35 minutes, 25 seconds So what exactly are we targeting in pharma? Do we currently are kind of do we have a client on clientele based on 35:33 35 minutes, 33 seconds it and uh yeah how are we kind of expanding the pharma portfolio from now on. 35:39 35 minutes, 39 seconds See surffectant you know amongst all our chemistries uh we have surfectant uh you know we have acrylicate we have enzyme 35:48 35 minutes, 48 seconds and we have silicones uh all of these can go to the pharma. Uh presently our focus is on the surfactant chemistry. So 35:57 35 minutes, 57 seconds our polyine glycols but there are host of other products polyine glycol comes in different molecular weight. So for 36:04 36 minutes, 4 seconds example we sell poly policy glycol from 400 600,000 2,000 3,000 350 4,000 6,000 36:12 36 minutes, 12 seconds 10,000 20,000 and above. So all all these are areas which can go into the pharma but there are also other esters 36:20 36 minutes, 20 seconds which we manufacture uh which can go into pharma. Uh so the focus would also be uh you know on uh coating products uh 36:29 36 minutes, 29 seconds but also uh you know something uh like uh products which can make gels you know 36:35 36 minutes, 35 seconds for pharma and personal care uh uh so these are products which we focus on the farmer. 36:44 36 minutes, 44 seconds Okay that's great. Um secondly on the margins so you've guided for a 12 to 13% margin um on a console basis but we've 36:52 36 minutes, 52 seconds seen the margins kind of drop quarter and quarter this year for 26 um and you did the lude for that kind of like a 37:00 37 minutes mixed change we had we also had raw material price increase so um what sort of kind of initiatives are we taking on 37:07 37 minutes, 7 seconds like kind of supporting the data margins right now and are we how confident are we on maintaining this 12 13% guidance for FI 27 also for the next year FI 28. 37:20 37 minutes, 20 seconds Uh this year we have one initiative is you know uh uh selling some uh uh you 37:28 37 minutes, 28 seconds know assets and selling some businesses which are not go to our businesses or which requires uh lot of investment you know to grow these businesses especially 37:36 37 minutes, 36 seconds the consumer businesses. Uh that could that you know are pulling down our gross margins and our margins. uh once you 37:44 37 minutes, 44 seconds know these are are not there in in those are automatically the uh our margins will improve. The second part is now 37:52 37 minutes, 52 seconds we're focusing on value added products products that are higher margins and consciously cutting down on you know uh 37:59 37 minutes, 59 seconds low margin products. uh so this should also help us uh you know increase the 38:05 38 minutes, 5 seconds margins the focus on food personal care uh pharma cosmetics uh and also animal 38:15 38 minutes, 15 seconds health and nutrition uh these are these are all uh high margin areas which you want to f focus on we have the products 38:23 38 minutes, 23 seconds approvals uh and we see you know a gradual increase in both exos 38:33 38 minutes, 33 seconds Okay. Are you a metric you can kind of provide us with? What sort of value added uh sales do you have for like FYI 38:40 38 minutes, 40 seconds 26 maybe from next quarter onwards? So we could kind of track on how we're growing on that number if that's possible. 38:49 38 minutes, 49 seconds We could not share so much of uh details but uh we we'll think about this how we can 38:57 38 minutes, 57 seconds more info on the data currently provide in the presentation 39:04 39 minutes, 4 seconds and the our core B2B business has to 14% but now margin what sort of revenues are we um what sort of revenues are they 39:13 39 minutes, 13 seconds contributing to and how do you see that kind of scaling up because once that kind of business grows we see on a consolid basis a quite higher margin going forward. 39:23 39 minutes, 23 seconds Yeah. So most of the growth that you know we discussed uh now are all going to happen in our core B2B business on 39:32 39 minutes, 32 seconds the consumer side of the business. We are in fact uh reooking at the entire business and the product profile in that 39:41 39 minutes, 41 seconds business. So there also we are trying to ensure that we only work on on products where the margins are stronger. So so 39:50 39 minutes, 50 seconds that's what we plan on but yes most of the growth that we talked about is all going to happen in a B2B. 39:56 39 minutes, 56 seconds And what percentage of revenue is contributed from this B2B business currently? Yeah. 40:04 40 minutes, 4 seconds So say you can from the total you can subtract about 250 260 crores of B2C 40:12 40 minutes, 12 seconds business balance everything is a B2 okay and uh on the revenue side how you 40:21 40 minutes, 21 seconds mentioned that at least we going to target 15% growth by 27 as well but any new drivers that you expect kind of 40:29 40 minutes, 29 seconds increasing or riching up the growth to like uh the higher side of the double Those are like 20% growth moving forward. If you could mention those. 40:38 40 minutes, 38 seconds Yeah. So, uh as I said the capacities that we have put up uh in in FI26, we'll 40:46 40 minutes, 46 seconds have this for the at least for you know more than half the year next year assuming the your availability also 40:54 40 minutes, 54 seconds comes through by the second half. And then of course uh the segments that we are looking at are the pharma the agro 41:03 41 minutes, 3 seconds these and these two are going to be the the current segments which are going to drive the growth and the new segments of 41:10 41 minutes, 10 seconds of pharma that we are planning to uh get into. So that will also add though not a may not add a big number but it'll help 41:19 41 minutes, 19 seconds us at least uh penetrate the market for the coming year. And thirdly the oil and gas is another segment that's going to 41:28 41 minutes, 28 seconds drive growth in the current year. These three four initiatives will help us drive the 15% plus growth that we talked about. 41:39 41 minutes, 39 seconds That is great. And the cost cutting kind of initiative that we mentioned before that we taking like taking in effect 41:46 41 minutes, 46 seconds from next year. Could you elaborate on that or how how how the quantitative benefits that will happen over the next two to three years if that's possible to quantify? 41:57 41 minutes, 57 seconds So yeah so cost cutting uh uh see we've already uh in in this year spent uh a 42:06 42 minutes, 6 seconds lot of cost in terms of employing talent. So you can see our uh employee costs have gone up significantly in in 42:13 42 minutes, 13 seconds the in F526 to compare it with the earlier years. 42:18 42 minutes, 18 seconds But that was a sort of an investment which we did uh willingly given plans for expansions in the next few years. So 42:26 42 minutes, 26 seconds hopefully the uh the the employee cost expense will not grow at similar levels though we'll be taking in some new 42:36 42 minutes, 36 seconds talent also but not at the at the same kind of numbers and apart from that 42:42 42 minutes, 42 seconds as uh Mr. Chari also said we'll be moving out of lot of our non-core businesses. Uh we are evaluating you 42:51 42 minutes, 51 seconds know how we should restructure our business segments. Some of these uh consumer focused business which uh 42:58 42 minutes, 58 seconds really we are not able to uh give the kind of time energy money that they require for uh you know their growth. So 43:07 43 minutes, 7 seconds if we can cash out of these businesses then I think it'll help us uh streamline our core business and it will also help 43:16 43 minutes, 16 seconds these businesses to take their own path of growth uh with whoever comes in. So these are this 43:24 43 minutes, 24 seconds is something which we are we don't have anything concrete as of now but these are some of the things that are looking 43:31 43 minutes, 31 seconds at um so that we can keep growing in our core business. 43:36 43 minutes, 36 seconds Okay. and the no the consumer focused business what sort of asset block does uh pertain to that kind of vertical right now and are we going to like is it 43:45 43 minutes, 45 seconds funible are we going to move it to the B2B side or are we actually going to be selling out a lot of the norcore assets and if you could quantify what amount of 43:52 43 minutes, 52 seconds assets we have planned yeah so they do not account for too much of our asset block most of our asset 44:01 44 minutes, 1 second blocks are for the B2B businesses these these are only add-ons blocks that we had which we carved out of our B2B 44:10 44 minutes, 10 seconds segment assets to do some of these consumer products. So, so they don't account for too much of our asset blocks. 44:19 44 minutes, 19 seconds Any any quantification of how much of the value we're going to be selling? I do not have offered this number. 44:27 44 minutes, 27 seconds Yeah, that makes sense. And the Thailand textile facility, how how has that been going on? um how could we record any 44:35 44 minutes, 35 seconds revenues in the fourth quarter and what sort of guidance would you give on the revenues that we can realize FY27? 44:43 44 minutes, 43 seconds Yeah, so Thailand Thailand the plant has come offream in uh in the last quarter 44:49 44 minutes, 49 seconds towards the end of March. So this should uh uh it's a small blending unit that 44:57 44 minutes, 57 seconds we've set up. It's not a full scale textile chemical plant. The plan is to 45:03 45 minutes, 3 seconds do some blending uh in Thailand to meet uh the customer requirements of Southeast Asia and also the plan is that 45:12 45 minutes, 12 seconds some of uh the raw materials uh for our lending activities we can bring in directly there from China at more 45:20 45 minutes, 20 seconds competitive rate. So yes, Thailand is going to now start contributing meaningfully from this year. Probably 45:28 45 minutes, 28 seconds from the quarter two onwards, we should see uh meaningful uh ramp up in the 45:35 45 minutes, 35 seconds silent facility for so we'll start off with textiles. We'll do a little bit of EN 45:42 45 minutes, 42 seconds also that's the plan and then we'll see how how it ramps up how the customers you know react to the products from 45:50 45 minutes, 50 seconds there and then probably we will think of adding some more products within our other basket of home home and personal care also. 46:00 46 minutes Okay, that's great. And the peak uh this last question I'm so sorry but the peak uh revenue that you can kind of gauge 46:07 46 minutes, 7 seconds from the Thailand front currently is uh how much 46:16 46 minutes, 16 seconds hello we should do about I think between 50 to 75 crores at its peak depending on you 46:25 46 minutes, 25 seconds know since it's blending so it depends a lot on the product also and what kind of blend we do but we can do at a peak of 46:33 46 minutes, 33 seconds 50 to 75 cr and this will be over and above the 15% growth that we're targeting for for 27. 46:42 46 minutes, 42 seconds No no this all all inclusive of that but we will not reach 50% this year. 46:48 46 minutes, 48 seconds Yeah. Yeah. Sure. But the the silent revenues are inclusive in the 50% growth. 46:55 46 minutes, 55 seconds They are all part of this 50%. Okay. Thank that is it for my textbook. Thank you. 47:03 47 minutes, 3 seconds Thank you. The next question is from the line of Tanir Varikar from Anendraati Institutional Equities. Please go ahead. 47:10 47 minutes, 10 seconds Uh hi team thank you so much for the opportunity. Uh so my first question is on the pass through that we were able to 47:17 47 minutes, 17 seconds do in March some of it and some of it will be in April and May. So c can you outline is there any challenge in any 47:25 47 minutes, 25 seconds particular segment in pass through or is it broad? 47:30 47 minutes, 30 seconds No there is no challenge we have been able to pass through from the 1st of April. Uh so pass is easy uh for all the products. 47:40 47 minutes, 40 seconds We have some resistance in textile industry. uh but we are controlling you know the supplies and uh ensuring that 47:47 47 minutes, 47 seconds you know we uh do a profitable uh margin service business all right and just one on the capacity 47:56 47 minutes, 56 seconds related so the the 15,000 tons in which was commissioned in Q2 FI26 so that 48:03 48 minutes, 3 seconds capacity was roughly around 10 to 15% utilization in Q3 so what's the current utilization that would that was done on 48:11 48 minutes, 11 seconds Q4 four it is little more uh better than Q3 we do not have the exact figures I do not 48:18 48 minutes, 18 seconds have exact figures now but it is ramping up everything is ramping up more so the growth that came in from the 48:25 48 minutes, 25 seconds subsidiary number in Q4 that's largely on the higher utilization of that capacity right okay perfect okay yes 48:33 48 minutes, 33 seconds and there was a premix plan that was supposed to come up in Q1 FI27 so are we still doing that in the same time or is that also be it? 48:43 48 minutes, 43 seconds No, no, that's that's that's as per its timeline. It it will come up uh probably by end of this month. 48:52 48 minutes, 52 seconds Commission. Okay. That's already been commissioned. Yeah. All right. Okay. All right. 48:59 48 minutes, 59 seconds Is coming coming from the premix uh starting this quarter. Okay, that's perfect. Thank you so much. 49:08 49 minutes, 8 seconds Thank you. The next question is from the line of Harsh Muta from Neo Group. 49:13 49 minutes, 13 seconds Please go ahead. Uh, hi sir. Hello. Yeah. Yes, we can hear you. 49:21 49 minutes, 21 seconds Yeah. So, sir, I was asking what is the percentage of revenue that we generate from our top 10 customers? 49:31 49 minutes, 31 seconds So, we will be doing between 12 to 13% not more than that. Our products are very well diversified. the concentration 49:39 49 minutes, 39 seconds is very less. So our top 10 customers would not would be I think between 12 49:46 49 minutes, 46 seconds 12ish is what I I have off and so we do not have any customer which is more than 2% of our sales. So you know we now have 49:56 49 minutes, 56 seconds you know very good uh diversification in terms of uh customers and so what the percentage of our 50:02 50 minutes, 2 seconds customers are like coming back to us repeated customers sorry what is your question 50:11 50 minutes, 11 seconds what what percentage of our customers are are repeat customers basically repeat customers basically you know we 50:20 50 minutes, 20 seconds we've been growing so for example if you In the last uh 6 years uh we have grown 50:26 50 minutes, 26 seconds 25% kagger in sales and we've grown 18% kagger in profits and that would majorly 50:34 50 minutes, 34 seconds come from repeat sales but also getting new customers but also getting new products into existing customers. So getting a bigger wallet in every 50:42 50 minutes, 42 seconds customer is something which we always target. Right. Perfect. Okay. 50:50 50 minutes, 50 seconds Thank you. 50:52 50 minutes, 52 seconds Participants to ask a question please press star and one. The next question is from the line of Mahil Damana from Fid AMC. Please go ahead. 51:03 51 minutes, 3 seconds Uh hi. Uh what explains the difference between the standalone and consulted profit in this quarter? The standalone profit seems to be higher than the consolidate number. 51:13 51 minutes, 13 seconds No, I do think you should see the number separately. It is better to see it at a consolidated level because now the 51:22 51 minutes, 22 seconds business makes it such that uh we uh sell similar products from sub 51:30 51 minutes, 30 seconds subsidiaries to certain customers the same products to certain customers from from Rosari. So uh most of the sales 51:39 51 minutes, 39 seconds currently is happening out of uh the Rosari uh uh company because uh Rosari is the 51:49 51 minutes, 49 seconds registered uh uh supplier for most of the customers in India as well as uh uh 51:57 51 minutes, 57 seconds globally. So hence while some of these products are manufactured at the subsidiaries 52:04 52 minutes, 4 seconds some part of their end lending could happen in Rosari and vice versa. So that 52:11 52 minutes, 11 seconds mix between uh standalone and revenue and consolidated could keep changing quarter 52:18 52 minutes, 18 seconds and quarter. So the best way to look at the performance is at at the consolidated level. 52:25 52 minutes, 25 seconds Okay. Rotate. uh would like to probably give like a timeline or a or a rupee value amount of divestment of non-core 52:34 52 minutes, 34 seconds assets. Uh just a ballpark range is is fine. 52:39 52 minutes, 39 seconds No, we would not like to have it any number. See this is uh something which we are still internally working on. So 52:48 52 minutes, 48 seconds we at an appropriate time when we have something on hand we will come back and talk about it. 52:57 52 minutes, 57 seconds The diverment will will happen in XY 27. 53:00 53 minutes No, that also we cannot give you any timeline. The plan is we would like it to happen in preparation but it could 53:07 53 minutes, 7 seconds take more than an year, two years but strate but my aim of talking about it was strategically we are looking at 53:15 53 minutes, 15 seconds getting out of these not good businesses. It could take its own time. 53:20 53 minutes, 20 seconds Uh we should get a lot of value for the business. We built this business over the last so many years. So we we would 53:27 53 minutes, 27 seconds like to exit it at a good value and exited it to a to a uh 53:35 53 minutes, 35 seconds to a customer who would be able to grow this business because the business have a lot of inherent strength to you know grow. 53:45 53 minutes, 45 seconds Okay. And uh just just leave one clarification from the promoter. So there was some rumors of uh promoter kind of selling some stake or exiting 53:53 53 minutes, 53 seconds the entire company on the news somewhere in the month of January 5. Any clarification on the same 54:00 54 minutes I think uh there's nothing of such you know at all we are all setting working and focusing on growth uh market rumors 54:10 54 minutes, 10 seconds will come and go there's nothing in the plan at this moment. Got it. Thank you. 54:19 54 minutes, 19 seconds Thank you. The next question is from the line of Maduri from Counteryclical Investments. Please go ahead. 54:27 54 minutes, 27 seconds So thank you for the opportunity once again. So it seems that a B2C business is loss making currently. So so what 54:35 54 minutes, 35 seconds kind of working capital requirements have we invested in this business on the 250 260 cr uh revenue that we have currently? 54:47 54 minutes, 47 seconds So it would have similar kind of working capital the kind we have in the company. 54:53 54 minutes, 53 seconds So at a net net working capital would be close to 90 odd days in this business. 55:03 55 minutes, 3 seconds Okay. Got it. Uh and how so it seems like on a revenue potential basis we 55:11 55 minutes, 11 seconds could be 3,500 or uh on our current asset base. How should we see the ramp up maybe over the next 3 four years? 55:19 55 minutes, 19 seconds Will it be driven by customer edition or will it be driven by the solution that we are trying to move towards pharma oil 55:27 55 minutes, 27 seconds or even gas solution? So like all the scale up might take time due to this high margin segment but whatever 55:35 55 minutes, 35 seconds incremental revenue will come will be a better margin. So how should I look at that segment? 55:41 55 minutes, 41 seconds So uh you're talking about growth at a company level or growth in pharma segment. 55:48 55 minutes, 48 seconds Sure I'm talking about the growth at company level but what I understood from this call was we are trying to move towards more value added products going 55:55 55 minutes, 55 seconds forward. So incremental lot of incremental growth will come from these pharma oil and gas these kind of segments. So yeah I'm trying to understand on that front. 56:06 56 minutes, 6 seconds Yeah, but not only the the pharma or oil and gas, there is aroma, there is personal care, uh you know and there is 56:13 56 minutes, 13 seconds uh food processing uh and there is institutional chemicals uh cleaning chemicals for hygiene, health and 56:20 56 minutes, 20 seconds hygiene. Uh so it will be spread across different segments uh but also animal and 56:27 56 minutes, 27 seconds nutrition you know could be a good uh driver for our increased margins. So focus remains now on you know getting 56:36 56 minutes, 36 seconds into a higher uh you know orbit for the AIDA. uh the teams are being attuned, trained, you know, made to focus uh that 56:45 56 minutes, 45 seconds you know each businesses uh we have to improve our return on capital employer markets. 56:54 56 minutes, 54 seconds Right. So so on the ramp upure uh will so to it seems that these businesses will have a higher gestation period 57:02 57 minutes, 2 seconds versus our current uh customer where we are already a qualified vendor. 57:08 57 minutes, 8 seconds So I'm trying to understand how should I look from a gestation period perspective for uh like ramp up to our optimum utilization of our capacities. 57:19 57 minutes, 19 seconds So our capacities uh the expectation is that that ramp up will happen over the next two to three 57:27 57 minutes, 27 seconds years. So while we will be getting into some of these high value added uh segments our current segments of uh core 57:36 57 minutes, 36 seconds agro and textile and AM will keep seeing their latent growths uh happening 57:42 57 minutes, 42 seconds parallelly. So uh even in personal care the phoxy business where you know we are one of the largest globally and with the 57:52 57 minutes, 52 seconds new capacities coming up we are getting into new markets um across the globe. 57:58 57 minutes, 58 seconds uh you look the North American market we are looking at both for the personal care and the agro business uh in in the 58:07 58 minutes, 7 seconds Latin America we are already strong in agro we trying to build the business there uh again in textiles we are 58:14 58 minutes, 14 seconds ramping up our exports uh uh business so Bangladesh the Southeast Asia Asian countries through Thailand and also 58:23 58 minutes, 23 seconds Turkey Brazil these are some of the markets uh in textiles where we expect the domestic growth to actually out 58:32 58 minutes, 32 seconds outperform our the export growth to outperform our domestic growth in textiles and similarly hn with this new 58:40 58 minutes, 40 seconds premix uh facility coming up uh we should see this part of this ramp up happening this year and a full scale uh 58:49 58 minutes, 49 seconds premix facility capacity enhancement in in the next year. So all these I think 58:55 58 minutes, 55 seconds uh plans that we have on the table uh I think uh that's what makes us pretty 59:02 59 minutes, 2 seconds bullish on that at least a minimum 15% growth coming in the infra zone 59:10 59 minutes, 10 seconds right thank you the next question is from the 59:19 59 minutes, 19 seconds line of Rohit Nagash from 361 capital please go ahead Uh thanks for the followup. Just one clarification on the institutional 59:28 59 minutes, 28 seconds business. Uh we've been feeding this business but performance has been relatively muted with expanding losses. 59:36 59 minutes, 36 seconds Uh so how are we looking at it in terms of scaling up and when do you now expect break even happening? Is it going to be 59:44 59 minutes, 44 seconds FI 27 28? Any timeline on that? Thank you. 59:50 59 minutes, 50 seconds 527 we should look at uh break even or even profits and also diverment of some businesses in that business which are 59:59 59 minutes, 59 seconds lower margins or you know uh which create which contributed to their loss. 1:00:04 1 hour, 4 seconds So we we feel uh 27 should be a very good year for the institutional business. 1:00:12 1 hour, 12 seconds Yeah. Uh that's all from my thank you so much. 1:00:19 1 hour, 19 seconds Thank you ladies and gentlemen. That was the last question. I now hand the conference over to the management for closing comments. 1:00:29 1 hour, 29 seconds So thank you everyone. I hope we have been able to answer all your questions satisfactorily. Should you need any further clarifications or would like to 1:00:37 1 hour, 37 seconds know more about the company, please feel free to contact our team or CDR India. 1:00:44 1 hour, 44 seconds Thank you once again for taking the time to join us on this call and good evening. 1:00:50 1 hour, 50 seconds Thank you very much. On behalf of Rosari Biotech Limited, that concludes this conference. Thank you for joining us.