SRF LTD — Q4 FY26

SRF Limited Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=S3NipwVCTKM Published: 7 days ago

0:01 1 second Ladies and gentlemen, good day and welcome to SRF Limited U4 FI26 earnings conference call hosted by ICICA Securities Limited. 0:13 13 seconds As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation 0:20 20 seconds concludes. Should you need assistance during the conference call, please signal an operator by pressing star then 0:28 28 seconds zero on your touchstone phone. Please note that this conference is being recorded. I now hand the conference Otum 0:36 36 seconds Sanjesh Jane from ICIC securities. Thank you and over to you sir. 0:42 42 seconds Thanks. Uh good morning everyone and thank you for joining us today. Uh we at ICS securities are pleased to host SRF 0:50 50 seconds limited Q4 and FI26 results conference call. We have with us uh Mr. Ashish Paratan, chairman and managing director. 0:59 59 seconds Mr. Samir Kash, president and chief financial officer at SRF limited. I would now like to invite Miss Nitika 1:08 1 minute, 8 seconds Dawan, head of corporate communication at SRF to initiate the proceeding for the results consult. Thank you. Over to you ma'am. 1:17 1 minute, 17 seconds Uh good morning everyone and welcome to SRF limited quarter 4 and financial year 2026 results conference call. We are 1:25 1 minute, 25 seconds pleased to have you join us today. On the call we have our chairman and managing director Mustish Paracham along with our president and CFO Mr. Fami 1:34 1 minute, 34 seconds Kashar and Muganda Singh senior vice president treasury and investor relations. To begin, our CMD will share 1:41 1 minute, 41 seconds insights into the company's performance during the financial year 2026, followed by an overview of our strategy, business 1:48 1 minute, 48 seconds outlook, and growth plans. After these remarks, we will open the floor for a Q&A with our CFO and IR head. Please be 1:56 1 minute, 56 seconds reminded that any statements made regarding our outlook are forward-looking and are covered by a disclaimer included in the earnings presentation shared with you earlier. 2:05 2 minutes, 5 seconds Without further ado, I invite our CNB, Mr. Ashish Paratra to deliver his opening remarks please. 2:12 2 minutes, 12 seconds Thank you [clears throat] Nitar. Uh good morning to all of you. I extend a warm welcome to you and thank you for joining us today for the earnings call. I trust 2:20 2 minutes, 20 seconds all of you have had the opportunity to go through our results and the presentation shared with you earlier. 2:25 2 minutes, 25 seconds The [clears throat] global operating environment remains defined by volatility, uncertainty and complexity. 2:30 2 minutes, 30 seconds A true Waua world. Compared to this time last year, conditions have not materially improved. If anything, they have become more challenging. Persistent 2:38 2 minutes, 38 seconds geopolitical tensions, particularly the ongoing conflict in the Middle East have continued to disrupt global trade flows and supply chains. As a company 2:47 2 minutes, 47 seconds operating in chemical intermediates, we have felt the impact of these disruptions across logistics, supply chains, and market access. Having said 2:55 2 minutes, 55 seconds that, the company has made tremendous efforts in finding answers to the challenges that we're facing. I believe that we will navigate through these due 3:02 3 minutes, 2 seconds to the resilience of our team. Our focus has remained firmly on disciplined execution, operational excellence, strategic investments across our 3:10 3 minutes, 10 seconds businesses. Let me now share with you my thoughts on the business performance in the fiscal year gone by and the growth opportunities that lie ahead. 3:20 3 minutes, 20 seconds Fiscal year 2026 unfolded against a challenging backdrop, testing resilience while opening avenues for long-term growth. During this period, SRS revenue 3:28 3 minutes, 28 seconds increased by 7% to 15,787 crores compared to the corresponding period last year. The company's operational 3:36 3 minutes, 36 seconds debit rose by 29% to 3,8 crores over the current period last year. And the company's PAT increased 47% to 1,835 3:45 3 minutes, 45 seconds crores over the current period last year. I'm proud to share that this has been a second best performance and an overall basis in our history. Moving to 3:54 3 minutes, 54 seconds my viewpoint on the performance and outlook of each of our three markete dealing businesses. Now I'll begin with the chemicals business. During the 4:01 4 minutes, 1 second fiscal year 2026, the chemicals business achieved a 16% increase in revenue amounting to rupees 7,779 4:09 4 minutes, 9 seconds crores. Despite challenges, our fluochemicals business delivered a record year in terms of both realizations and volumes. Across plants, 4:18 4 minutes, 18 seconds operating performance remains strong with sorry with optimal utilization. 4:25 4 minutes, 25 seconds This is despite our sales into the Middle East where we traditionally have a strong presence which were impacted in the fourth quarter. As a de-risking 4:33 4 minutes, 33 seconds strategy, we have developed new markets and I'm hopeful that in the near future the Middle East situation will improve. 4:39 4 minutes, 39 seconds SRF is a leading global player in HFCs and HFC blends. We are undertaking incremental capacity enhancements to strengthen our market position aligned 4:48 4 minutes, 48 seconds with the potential HCFC quota under the Montreal protocol. The required environmental clearances are already in place as communicated earlier. This will 4:57 4 minutes, 57 seconds take our HFC capacity beyond 65,000 metric tons peranom. 5:01 5 minutes, 1 second Last year we spoke about our investment in the next generation referring gases based on the tremendous work done by in-house technology team. I'm pleased to 5:10 5 minutes, 10 seconds say that we have developed a global benchmark process both on capital and operating expenditure sides that will be non-infringing. In view of the 5:19 5 minutes, 19 seconds anticipated transition to the next generation gases and the interest shown to us by potential customers, the board 5:26 5 minutes, 26 seconds has revised the capex approved in October 2024. We will now be investing approximately 2,300 crores out of a new site in Odisha over the next 2 years. 5:35 5 minutes, 35 seconds This investment envisages fourth generation gas capacity of 20,000 metric tons peranom and includes backward integration into 30,000 tons of 5:43 5 minutes, 43 seconds hydrofuloric acid along with investments in electronic grade hydrofuloric acid. 5:48 5 minutes, 48 seconds The product mix will comprise HFO1234 YF, HFO1234 Z and HFO1233 5:55 5 minutes, 55 seconds ZD. This reinforces a strong commitment to building a globally significant refri gas business. I'm also proud to state 6:03 6 minutes, 3 seconds that just as we did with the launch of our HFC's many years ago, our investment in the HFO portfolio will ensure that India remains self-reliant in this critical segment. 6:14 6 minutes, 14 seconds The chloromthane segment delivered stable performance during the year. In flora polymers, sustained efforts to ramp up PTFE capacity have begun to 6:21 6 minutes, 21 seconds yield positive outcomes, including key account key account approvals from leading global customers. We're pleased to note that our investment in 6:29 6 minutes, 29 seconds investments in speciality floral polymers are progressing as planned and represent a meaningful long-term growth opportunity. To support the strategic 6:37 6 minutes, 37 seconds direction, we have further strengthened our leadership and technical teams by onboarding experienced industry professionals enabling a continued move 6:45 6 minutes, 45 seconds up the value chain. I believe that we'll see a significant change in the product mix as the year unfolds. Furthermore, our project with the chemos company is 6:53 6 minutes, 53 seconds progressing well and we expect to complete this high margin project on time. In my view, this investment is the start of a relationship that can develop 7:01 7 minutes, 1 second into a far more significant opportunity for us. I'm confident that the new cafe investments in fourth generation gases 7:08 7 minutes, 8 seconds and specialtity fluoropolymers position the florochemicals business to sustain and further accelerate a strong growth trajectory. 7:17 7 minutes, 17 seconds In the specialtity chemicals business, the year was marked by stress in the innovative hydrochemical value chain and muted uptake of impacting demand 7:25 7 minutes, 25 seconds visibility. Pricing pressure was seen across value chain with aggressive participation from Chinese players impacting both our markets and customers 7:34 7 minutes, 34 seconds and markets. Even in this environment, we were able to sustain our base business base through a continued focus on cost control, operating efficiencies 7:42 7 minutes, 42 seconds and disciplined execution. Our approach has been to defend market share in a rational manner and avoid losing business to overseas competitors as we 7:50 7 minutes, 50 seconds believe industry industry pricing will normalize to more sustainable levels over time. I would like to take this opportunity to also share my perspective 7:59 7 minutes, 59 seconds on how I see the macro elements of this business. The pricing of a specialtity product over time will always move to a more commoditized level. There have been 8:08 8 minutes, 8 seconds a lot of questions about the drop in pricing for DFPA. While pricing levels may have reached unsustainability unsustainably low levels, we continue to 8:16 8 minutes, 16 seconds generate healthy returns through ongoing process improvements and technology interventions implemented over time. The key for this business is to ensure a 8:24 8 minutes, 24 seconds strong pipeline of intermediates and AIS which can replace high impact molecules such as DFA, DFPA. Today, our pipeline 8:33 8 minutes, 33 seconds remains extremely robust across both AIS and intermediates which have the potential to replace products like DFPA in its early stage. However, the pace of 8:42 8 minutes, 42 seconds roll out for these products will depend on customer market assessments, progress in the registration process and the pricing dynam dynamic dynamics of their end products with generic alternatives. 8:53 8 minutes, 53 seconds That said, industry [clears throat] cycles inevitably evolve over time. We must therefore remain patient yet agile 9:01 9 minutes, 1 second positioning ourselves to effectively capitalize on this opportunity as it unfolds and unfold it will. on our pharmaceuticals investment strate 9:09 9 minutes, 9 seconds intermediate strategy our focus has been on this our focus on the segment continues and while we will grow our agrochemicals business we remain 9:17 9 minutes, 17 seconds committed to scaling up our farmer segment faster and increasing a share of the overall portfolio against this background we have our farmer 9:26 9 minutes, 26 seconds intermediates plant number two coming up moreover our pipeline of molecules has expanded meaning meaningfully over the past year Importantly we are moving up 9:34 9 minutes, 34 seconds the value chain with participation not only and key starting materials but also on regulatory starting materials. That said, as is typical in this industry, 9:42 9 minutes, 42 seconds the pace of commercialization will depend sorry will depend on a customer's product launch time lines. 9:51 9 minutes, 51 seconds Our announced capex projects at the age farmer and agro are pro progressing as planned and we expect to start seeing the benefits during the year. Going 10:00 10 minutes forward, we'll also continue to focus on operational improvements to build a more competitive cost base. SRF's chemical technology group has consistently 10:08 10 minutes, 8 seconds demonstrated its ability to overcome complex technological challenges enabling timely scaleups, improved 10:15 10 minutes, 15 seconds operational outputs, cost efficiencies and successful new product launches. As product complexity increases and development timeline timelines continue 10:23 10 minutes, 23 seconds to compress, CTG has strengthened its capabilities and support systems to remain future ready. During the year, R&D activities covered over 50 10:32 10 minutes, 32 seconds molecules, many of which progressed into product process development and more than 35 molecules advanced to scale up studies with over half successfully 10:40 10 minutes, 40 seconds successfully commercialized across multi-purpose and dedicated manufacturing facilities. Reinforcement reinforcing 10:47 10 minutes, 47 seconds CTG's role as a key enabler of business growth aligned with evolving customer and market requirements. SRF continues 10:55 10 minutes, 55 seconds to invest strongly in R&D to build future ready value propositions with capital and revenue expenditure of 160 crores incurred during financial year 11:02 11 minutes, 2 seconds 46. SRF's dedicated R&D facilities including development labs and pilot plants bring together a robust pool of 11:10 11 minutes, 10 seconds scientists and engineers to drive innovation and technology-led dealership. In FY26, CDG filed 40 11:18 11 minutes, 18 seconds patents, taking the cumulative total to 521 patents filed by while five patents were granted during the year, increasing 11:25 11 minutes, 25 seconds the total number of patents granted to 156. 11:30 11 minutes, 30 seconds We have a fundamentally strong outlook on our chemicals business. Looking ahead sorry 11:38 11 minutes, 38 seconds looking ahead while the operating environment remains volatile we believe that the company should be able to deliver growth in the region of 15 in 11:45 11 minutes, 45 seconds the range of 15 to 20% in the coming year turning to performance films and foil during fiscal year 26 the business 11:52 11 minutes, 52 seconds reported revenues of 5764 crores registering a growth of 4% over the previous year the quarter four saw a 12:00 12 minutes recovery in the business across all geographies with operating performance performance demonstrating steady improvement. Just like other businesses, 12:07 12 minutes, 7 seconds BFB faced significant supply challenges in quarter 4 arising from the ongoing geopolitical situation that led to extreme volatility in raw material 12:16 12 minutes, 16 seconds prices. Despite these headwinds, SR was able to secure supplies and capitalize on select market opportunities arising from the volatile environment. 12:26 12 minutes, 26 seconds In quarter 4, bid margins have begun showing early signs of recovery supported by price improvements in select Southeastern Asian markets 12:34 12 minutes, 34 seconds following China's recent anti-involution measures. Operations in South Africa continue to perform well and remain stable while Hungary also exhibited 12:43 12 minutes, 43 seconds initial signs of recovery during the quarter. Overall, I believe the industry cycle has largely bottomed out though competitive pressures persist. Our value 12:52 12 minutes, 52 seconds added products journey continues. I'm happy to announce the successful startup of prior runs of a Kapla plant marking 12:59 12 minutes, 59 seconds our entry into the capacitor grade BOP films which will be capitalized shortly. 13:04 13 minutes, 4 seconds The BOP BOP line remains on track and is expected to commence production in July. 13:10 13 minutes, 10 seconds This project strengthens our existing BOPPP substrate and VAP portfolio while opportunities in the innovative polyolifan BOP sub substrate. 13:23 13 minutes, 23 seconds Based on the current demand supply outlook, we have decided to indefinitely defer the second BOP line that was earlier planned for 2027. Instead, we 13:32 13 minutes, 32 seconds investing 180 crores in a state-of-the-art PA line that's polyomide line expected to be operational by September 27th. 13:40 13 minutes, 40 seconds This will be India's first of its kind BOPA line based on simultaneous stretching and will benefit significantly from import substitution. 13:49 13 minutes, 49 seconds This will be the first in our aluminium foil plant. The ramp up has gathered pace with a sharper focus on exports to Europe and the US. We're also 13:57 13 minutes, 57 seconds progressing well towards approvals for high-end applications including aseptic cartons. Sustainability continues to be 14:04 14 minutes, 4 seconds a core focus and is embedded across all aspects of operations. The business is expanding its range of sustainable products [clears throat] 14:12 14 minutes, 12 seconds including solutions for monof family structures by lamp structures and PCR based films. We remain firmly committed to advancing sustainability initiatives 14:21 14 minutes, 21 seconds anchored in the three framework of reduce, reuse and recycle. 14:26 14 minutes, 26 seconds In financial year 26, the technical textiles business business recorded a revenue of rups 1,877 crores. Within 14:34 14 minutes, 34 seconds technical textiles, NTCF continues to remain a stable cash generator. We've seen growth in the polyester diocore fabric segment and the new dipping line 14:43 14 minutes, 43 seconds at Manoly is expected to be commissioned shortly. Post commissioning, we intend to ramp this business more aggressively. 14:49 14 minutes, 49 seconds The belting fabrics business has now begun showing traction again post the rationalization in US tariffs. This should bode well for the future. 14:58 14 minutes, 58 seconds Advancing sustainability remains a key focus for the technical text textile business. During the year, the business increased the share of renewable power 15:06 15 minutes, 6 seconds in its overall energy mix further strengthening environmentally responsible operations. 15:12 15 minutes, 12 seconds In financial year 26, the quoted and laminated fabric business reported revenues of 366 crores. SRF continued to maintain its leadership in the domestic 15:20 15 minutes, 20 seconds photo fabric segment during the year while demand stoppness in food food grain liners presented near-term challenges. The impact was offset 15:28 15 minutes, 28 seconds effectively offset by increased sales of other value added products. The business also sustained its price leadership reinforcing its competitive positioning in the market. 15:38 15 minutes, 38 seconds On ESG, corporate citizenship and sustainability are firmly embedded in SRS business strategy and decision-m this integrated 15:47 15 minutes, 47 seconds approach drives efficient resource optimization while enabling meaningful participation in the circular economy. A strong emphasis on transparent and 15:54 15 minutes, 54 seconds robust sustainability disclosures, allows the company to systematically identify and assess ESG risks, track progress, and implement a structured 16:03 16 minutes, 3 seconds long-term roadmap for continuous improvement. SRS sustainability efforts have received international validation. 16:09 16 minutes, 9 seconds In FY26, the company's facilities in Gundi Pundi and Viralai in Tamil Nadu were awarded the Ecoare Silver Medal by one of the world's most respected 16:18 16 minutes, 18 seconds business sustainability rating agencies reinforcing SRF's commitment to responsible and sustainable operations. 16:24 16 minutes, 24 seconds Further detail on SRF's ESG journey, priorities and progress will be provided in the annual report. 16:30 16 minutes, 30 seconds During the year financial year 26, the SRA Foundation strengthened its education and skilling efforts through an integrated model spanning school 16:39 16 minutes, 39 seconds transformation digital inclusion, institutional education, and employability enhancement. Education initiatives covered 327 government 16:48 16 minutes, 48 seconds schools across 38 locations in 13 states and one union territory benefiting over a lack in 30,000 students through model 16:56 16 minutes, 56 seconds school interventions, digital programs, capacity building of more than 3,000 teachers and 190 headmasters and early childhood development reaching over 17:04 17 minutes, 4 seconds 25,000 children across 314 Angalvari centers. A key milestone was the completion of the SRF school at Buch 17:12 17 minutes, 12 seconds with the first phase commencing by June 26th and a planned capacity of around 1,600 students alongside continued 17:18 17 minutes, 18 seconds operations of SR Vyalai Manali and SR Vyalai Gurugram serving over 800 students. 17:25 17 minutes, 25 seconds In parallel, employability was strengthened through vocational and green skilling initiatives, including the basic electrician training program 17:32 17 minutes, 32 seconds across 13 centers in seven states, training 1,180 youth. 17:39 17 minutes, 39 seconds [clears throat] 17:39 17 minutes, 39 seconds In conclusion, we are in an increasingly voca global environment. Currency movements have remained particularly dynamic. On forex, the company has 17:49 17 minutes, 49 seconds followed a prudent strategy of covering future exports through long-term hedges. 17:53 17 minutes, 53 seconds However, the sharp and unprecedented depreciation of Indian rupee during the year has led to mark tomark market 18:00 18 minutes losses on these forward positions impacting financial year 26 results and will extend over the near term as well. 18:07 18 minutes, 7 seconds However, this short-term pain should be seen in the context of our higher export and domestic pricing which generally 18:14 18 minutes, 14 seconds based on import parity and will thus continue to benefit will thus continue to benefit from a weaker op. Our plan 18:21 18 minutes, 21 seconds capex for financial year 27 stands at approximately 2500 crores aligned with our long-term growth priorities. 18:29 18 minutes, 29 seconds Reflecting on financial year 26, I'm extremely proud of how the company has positioned itself across businesses and geographies. The business models we have 18:38 18 minutes, 38 seconds built are resilient and welld designigned to create sustained value for our shareholders. Despite all the uncertainties, I remain optimistic for 18:46 18 minutes, 46 seconds the year ahead. Thank you to all our to all our shareholders for the continued trust and confidence in our long-term vision. 19:02 19 minutes, 2 seconds Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press 19:09 19 minutes, 9 seconds star N1 on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and 19:18 19 minutes, 18 seconds two. Participants are requested to use handsets while asking a question. Please note, in order to ensure that the 19:25 19 minutes, 25 seconds management will kindly limit your questions to two per participant. Should you have a follow-up question, please rejoin the queue. 19:36 19 minutes, 36 seconds Ladies and gentlemen, we will wait for a moment while the question queue assembles. 19:52 19 minutes, 52 seconds The first question is from the line of Arjun Kana from Kuk Mutual Fund. Please go ahead. 20:10 20 minutes, 10 seconds uh how do you see the impact to our business in terms of a vis I'm sorry to interrupt Mr. Karna, can you please uh repeat your question? 20:19 20 minutes, 19 seconds Sure. Uh uh I just said uh thank you so much uh for this opportunity and uh congratulations for a great set of 20:27 20 minutes, 27 seconds numbers. Uh I think we have closed the year very strongly as we had indicated in the conference calls earlier. Uh the 20:34 20 minutes, 34 seconds first query is uh regarding the availability of uh uh raw materials uh etc. How do you see that impacting our 20:43 20 minutes, 43 seconds business uh on the chemicals, technical, textiles and packaging side? Uh do you see massage any disruptions from the 20:50 20 minutes, 50 seconds same? Uh I know we have talked of 15 20% to 20% growth in the chemical side of it 20:55 20 minutes, 55 seconds but uh how much have we uh assumed as the impact from this? 21:06 21 minutes, 6 seconds Yeah. Hi Arjun. Uh thanks for your question. uh a couple of things we've got going here together. So let me just try and take them uh one after another. 21:14 21 minutes, 14 seconds So in terms of uh impact of raw material uh across the businesses I think uh the first indicator I'd point you to is just 21:22 21 minutes, 22 seconds the Q4 outcome. Uh despite all the disruption we've seen uh I think we've had a fairly standout result. uh and I 21:31 21 minutes, 31 seconds think that just speaks uh strongly of the team's ability to uh be able to ensure supply chains have remained uh 21:39 21 minutes, 39 seconds unimpacted for the large part. Um potentially the single uh biggest area of impact we could have seen was in our 21:47 21 minutes, 47 seconds uh performance and foils business. uh and that's where I think the team scrambled really quickly and early uh as 21:54 21 minutes, 54 seconds soon as the first indicators um appeared uh to ensure that uh we had alternate supply chains uh in place um these have 22:03 22 minutes, 3 seconds been robust and u you know held strong for SRF for quite some time and ability our ability to continue to leverage that 22:11 22 minutes, 11 seconds uh just ensured we had absolutely no impact. We were able to run through uh Q4 with you know literally flat out. So 22:19 22 minutes, 19 seconds we've had no shut days. Uh our expectation is uh even in uh you know the current quarter uh we don't see 22:28 22 minutes, 28 seconds impact to that business which is probably uh the most severely impacted potentially across uh raw material supplies um you know across our 22:36 22 minutes, 36 seconds portfolio of businesses. So that's the view on uh on performance and soils on chemicals as well. Um I think uh we've 22:45 22 minutes, 45 seconds seen some disruption in terms of our ability to sell uh rest gas into the Middle East. So for about half of the 22:53 22 minutes, 53 seconds quarter we did see some impact in our ability to ship to those markets. Uh but outside of that uh there's been really 23:01 23 minutes, 1 second nothing else uh from a chemical standpoint that's impacted us uh at a margin level. uh pretty much um I think 23:10 23 minutes, 10 seconds our expanding global footprint also puts in place the ability to counter such measures and um I think the the outcomes 23:18 23 minutes, 18 seconds we've seen overall on the refas side are just kind of pointed to the fact that despite the Middle East disruption we 23:26 23 minutes, 26 seconds were we were able to and find counter measures in other markets uh possibly if we were in a place where those shipments weren't impacted we would have seen a 23:34 23 minutes, 34 seconds even better quarter um Having said that, in terms of outlook, I think uh the current view is that we believe there 23:42 23 minutes, 42 seconds are some solutions showing up in terms of ability to shift back into Saudi. So, uh that will hopefully ease off uh you 23:50 23 minutes, 50 seconds know in in the coming weeks. Um and that should probably take care of about more than half of uh what was going into the 23:58 23 minutes, 58 seconds Middle East market. So yeah, I would I would urge you to look at it as a as a portfolio set of markets that we are 24:05 24 minutes, 5 seconds kind of uh supplying into and uh you know therefore the middle east middle east impact is kind of well set offset 24:13 24 minutes, 13 seconds by uh our ability to uh ship to other uh customers. Uh so Samir uh can you bring 24:20 24 minutes, 20 seconds out in the uh yeah uh just uh on the the first question uh uh could you talk about how much business we lost from the 24:28 24 minutes, 28 seconds Middle East uh in the fourth quarter FI26? Yeah, I don't think we've lost anything. 24:33 24 minutes, 33 seconds If you if you my comments uh completely uh we've you know we lost it's a shift from the Middle East into other markets. Uh okay. Sure. 24:44 24 minutes, 44 seconds Our ability to reposition I think has uh ensured that we we stayed strong in terms of the outcome for Q4. 24:51 24 minutes, 51 seconds Sure. Uh uh the the second query is uh regarding uh the uh capeex we have announced on HFC's. So we have announced a 88 crore uh debottlenecking exercise. 25:01 25 minutes, 1 second Uh could you comment because uh the uh uh document uh available uh uh online uh suggest what we have put to the exchange 25:09 25 minutes, 9 seconds says capacity is beyond 65,000 uh metric tons peranom. So what is it uh that the 25:16 25 minutes, 16 seconds rated capacity would be uh post this expansion and uh what was the capacity before this expansion? 25:24 25 minutes, 24 seconds Okay. So, I think what you've what you've seen in uh in the communication uh to the exchange uh points 25:32 25 minutes, 32 seconds directionally to where we believe we will land in terms of uh capacity. Uh we believe we will be north of 65,000. Uh that's our current estimate. 25:44 25 minutes, 44 seconds uh as you probably are well aware to precisely compute where debottlenecking will land us is uh is is it's fairly 25:53 25 minutes, 53 seconds difficult to be overly precise. Uh but I think we're reasonably certain we're going to be north of 65,000. Um and I'll 26:01 26 minutes, 1 second leave it at that. Um you guys have a bunch of models already I think in terms of where you believe we are. uh I leave you all to to compute that math out. 26:11 26 minutes, 11 seconds Sure. Sure. Suffice to say that we will land at 65,000 uh and north of that uh you know once 26:18 26 minutes, 18 seconds we're done with this exercise. Uh I also want to call out the fact that we've been debotting for some time. Uh it's 26:25 26 minutes, 25 seconds not something new. We've you've heard us talk about this in previous calls in other sides of the chemicals business. Uh so this has been an ongoing activity. 26:33 26 minutes, 33 seconds The only reason we called this out specifically uh is that this is a significantly larger investment than what we've typically made in that space. 26:41 26 minutes, 41 seconds Uh and therefore we went to port to seek approvals. 26:44 26 minutes, 44 seconds Sure. Uh and uh uh in terms of the uh uh uh allowance of HCFC uh 22 or our 22 26:52 26 minutes, 52 seconds during the year baseline years uh uh essentially calculation suggest we are allowed we would have about 20 odd,000 26:59 26 minutes, 59 seconds tons uh available to us. uh is that the right understanding if you're producing R32? 27:07 27 minutes, 7 seconds So I I'm not going to uh directly point you towards uh towards that but let let me say the let me say a couple of 27:14 27 minutes, 14 seconds things. So one the whole situation on HCSC is still uncertain. You know we've 27:21 27 minutes, 21 seconds seen positions from other markets. We don't have direction insight from the government of India as yet in the way 27:28 27 minutes, 28 seconds which they will go. Um I think you heard us say in the past that um it would it would seem that the government would 27:36 27 minutes, 36 seconds probably go uh a similar way as maybe the other markets what we saw in China and the US. So uh whether that will 27:46 27 minutes, 46 seconds entitle anyone to kan capacities later on is a is a tough question to predict. 27:52 27 minutes, 52 seconds Uh and I don't think there's been anything uh directly to suggest otherwise from the government in this entire period. 28:01 28 minutes, 1 second Sure. So uh essentially we are doing the capeex in the hope that we would get uh that uh allowance. 28:09 28 minutes, 9 seconds Well let me let me put it this way. We have uh we've seen very strong demand um you know through the second half of this 28:17 28 minutes, 17 seconds year uh across our clients. Uh so we are we are really putting up the uh you know 28:24 28 minutes, 24 seconds the debottlenecking uh activities around ensuring we can fulfill that demand. uh what it will also do simultaneously is 28:33 28 minutes, 33 seconds that should the government decide to consider HCFC as well uh it will ensure that we can completely avail our quotas. 28:42 28 minutes, 42 seconds So it it it's more positioned with solving current demand uh that we're seeing and which we expect to stay 28:48 28 minutes, 48 seconds strong uh in the coming quarters. uh and like I said uh it will also ensure that we cover any uh kota entitlement that we 28:57 28 minutes, 57 seconds get we may get should the government decide to go down that path which I like I said the opening was is uncertain at this point and that's for some time 29:06 29 minutes, 6 seconds hasn't changed perfect no thank you so much for this I will come back in the queue but uh if I don't get a chance again thank you so 29:13 29 minutes, 13 seconds much uh and wishing you all the best thanks thank you ladies and gentlemen kindly 29:20 29 minutes, 20 seconds restrict Ask yourself to two questions at a time. In case of follow-up questions, please rejoin the queue. The next question is from the line of Nitesh 29:29 29 minutes, 29 seconds Dud from Anantati Institutional Equities. Please go ahead. 29:34 29 minutes, 34 seconds Uh, hi team. Uh, good afternoon and thank you for the opportunity and uh, congratulations on a good set of uh, numbers. Uh, my first question is again 29:43 29 minutes, 43 seconds on the HCFC and HFC uh, uh, you know piece. So u u again I mean the way it came out is uh you know on the way the 29:52 29 minutes, 52 seconds quotas will be allocated probably is still not uh you know still not very clear uh you know so what I wanted to ask is uh whether it'll be uh you know 30:01 30 minutes, 1 second on the basis of the FCFC production which in a way favors the incumbents or on the basis of production capacities by 30:08 30 minutes, 8 seconds uh you know by 31st December 27 which probably favors newcomers as well. So uh you know any view there you know whether 30:16 30 minutes, 16 seconds the new entrance without the HCFC or HSFC history uh you know would be would be allowed or would be you know completely excluded. Any thoughts around that? 30:27 30 minutes, 27 seconds Yeah. Hi Nate. Um so I'd almost first urge you to uh you know if you haven't heard the 30:35 30 minutes, 35 seconds commentaries in previous calls to kind of just pick through that. uh I know our our president uh Prashant did a detailed 30:42 30 minutes, 42 seconds conversation uh with the whole community around our understanding on how the Kota regime is going to work. Uh 30:50 30 minutes, 50 seconds fundamentally nothing has changed right so the baseline period and how it's going to get computed across 24 256 is 30:58 30 minutes, 58 seconds still the same. Um the government retains the right to consider HCFC uh 31:05 31 minutes, 5 seconds from 2009 and 10. um that's a right that they continue to legally retain. Uh I think it's safe to assume that the final 31:14 31 minutes, 14 seconds view that the government will probably take will only become clear once we hit uh the end of the baseline period. So we 31:22 31 minutes, 22 seconds should assume that early in 2027 once we kind of have known where production has landed for this year. Uh the government 31:29 31 minutes, 29 seconds will probably uh look at those outcomes and determine if there's even a need to consider it CFC. I almost want you to point you to that direction. Um, you 31:38 31 minutes, 38 seconds know, if HSC uh production has kind of fulfilled all of our domestic consumption needs, we could potentially 31:46 31 minutes, 46 seconds be in a place where there is no such requirement in itself, right? But that's a right the government retains just like all the other geographies as per uh you 31:55 31 minutes, 55 seconds know the the Montreal protocol and the Kali amendment and and nothing has changed on that front. uh and that's the consistent view you've heard us say uh 32:03 32 minutes, 3 seconds over multiple calls um so yeah I think you know those documents available for everyone to read um there's you know not 32:12 32 minutes, 12 seconds a lot to be interpreted over there but uh I would almost urge you to uh to refer back to that um you know beyond 32:19 32 minutes, 19 seconds that it's tough for anyone to predict uh sure sir but I think the recent notification that came in on the 1st April 26 that you know pretty much made 32:28 32 minutes, 28 seconds it clear that 65 5% HCFC is you know is certainly being considered right. So uh I think probably that you know thing is pretty much clear. 32:39 32 minutes, 39 seconds Uh yeah. 32:40 32 minutes, 40 seconds Yeah. Nit my my my answer to that is if you read that uh circular that came out in April uh I think what the government 32:47 32 minutes, 47 seconds was trying to do and this is our view um was really two or three things. Number one, I think they were clearly calling 32:54 32 minutes, 54 seconds out the fact um and making people cognizant uh that new capacities that were coming 33:01 33 minutes, 1 second up while they would be allowed in terms of a environment clearance being granted. Uh I think they were trying to call out and clarify to investors in the 33:11 33 minutes, 11 seconds space to understand that it would still need to operate within the four corners of the kegali amendment. Right. So um 33:19 33 minutes, 19 seconds yes there have been lots of we understand there's been lots of asks for environmental clearances and this is the government's reaction to respond to 33:26 33 minutes, 26 seconds that. Um it does not talk about quotas anywhere. 33:31 33 minutes, 31 seconds Uh all it talks about is the fact that you need to have capacity up by 31st 33:37 33 minutes, 37 seconds December uh 2027. It talks about the fact that you need environment clearance. It talks about the fact that 33:46 33 minutes, 46 seconds if you're going to look to put up capacity now, we will ask you for a with for a clear confirmation that you will 33:53 33 minutes, 53 seconds indeed have that capacity up by 2027. So uh I'm not sure that uh it points to the fact that uh there is ACFC being 34:02 34 minutes, 2 seconds included in when they get to the Kota calculations. Uh you know, if that's a conclusion you're reaching, I'm not 34:08 34 minutes, 8 seconds entirely certain how. uh but our best understanding of the of what came out on 34:15 34 minutes, 15 seconds April 1 was uh is totally silent on Kota uh and doesn't indicate anything to that effect. 34:22 34 minutes, 22 seconds Uh sure. Uh my second question is on uh on calendar year 27 which you know which apparently is a free year. So uh uh you 34:31 34 minutes, 31 seconds know I mean just wanted a clarification on what exactly a free year is. Is it like a free free to all or is it only 34:39 34 minutes, 39 seconds free to the incumbents uh you know to produce uh and sell? How does that work? 34:44 34 minutes, 44 seconds You know probably some uh understanding there would be very helpful. 34:49 34 minutes, 49 seconds Yeah, it is uh so the free basically is a free-for-all um uh at the at the highest level if you had to consider it. 34:59 34 minutes, 59 seconds Uh basically uh freeze gets applied uh Jan 1 2028. Um so if uh if someone for 35:09 35 minutes, 9 seconds instance has capacity but does not have uh kota uh they would still be entitled 35:16 35 minutes, 16 seconds to sell uh during 2027. That's all the free year means right and so that would probably have 35:22 35 minutes, 22 seconds some impact on the on our pricing. I mean what would be your team or your takeh you know on the same because there 35:30 35 minutes, 30 seconds are too much of capacities that are you know that are coming in so yeah so um you know there's lot of 35:38 35 minutes, 38 seconds there's a lot of announcements of capacity uh but I think uh I would urge you all to to consume that more 35:46 35 minutes, 46 seconds holistically uh and with an understanding of what it takes to first set that capacity up in terms of 35:53 35 minutes, 53 seconds timelines um you you know realistically you're at 18 plus months there's time to 36:00 36 minutes then stabilize and commission which is a couple of months beyond that. So you know even if even if any of these 36:08 36 minutes, 8 seconds capacities come up you're talking about potential impact uh of uh you know couple of quarters maybe at best at the 36:16 36 minutes, 16 seconds end of 2027. It seem highly unlikely anything meaningful is coming on stream before that. 36:25 36 minutes, 25 seconds Uh sure sir. Uh so this is very helpful. 36:28 36 minutes, 28 seconds Thank you so much and wish you all the best. Thank you Nish. 36:36 36 minutes, 36 seconds Thank you participants. Kindly restrict yourself to two questions at a time. Please rejoin the queue for follow-up 36:44 36 minutes, 44 seconds questions. Next question is from the line of Rohit Nagat from 361 Capital. Please go ahead. 36:52 36 minutes, 52 seconds Uh thanks for the opportunity and congrats on good FI26. Uh first question is on the HFO and associated HF plant. 37:00 37 minutes Uh when is it likely to be commissioned? 37:03 37 minutes, 3 seconds Uh and in terms of sourcing for flu per how are we placed and the HF plant will it be completely I mean the 20,000 37:12 37 minutes, 12 seconds metric tons of HFO capacity uh will require the entire 30,000 or we'll be having certain contingency left for future requirements. Thank you. 37:24 37 minutes, 24 seconds Yeah. So, uh first question uh or first part of your question, we're looking at a FEP 2028 um potential timeline for commissioning. 37:35 37 minutes, 35 seconds That's uh that's where we are in terms of timelines for HFO. Um 37:43 37 minutes, 43 seconds let me take the third one first. um since those are related in terms of the uh HF capacity is 30,000 37:52 37 minutes, 52 seconds um primarily uh that's feed for the HFO plant itself. So significant part is 37:59 37 minutes, 59 seconds going to get consumed over there. You also heard um of us talking about VHF in our announcement. So the range of uh 38:09 38 minutes, 9 seconds high-end fast growth uh market needs that we're seeing uh show up on that 38:16 38 minutes, 16 seconds front and so part of the part of IHF capacity will uh will get utilized in 38:23 38 minutes, 23 seconds our VHS facility as well. Um yeah so that's the that's the broad direction uh 38:29 38 minutes, 29 seconds in terms of uh how the 30,000 uh tons of HF capacity is going to get deployed in 38:36 38 minutes, 36 seconds terms of floor uh you know uh as things stand right now uh we are in a comfortable position uh needless to say 38:45 38 minutes, 45 seconds uh we continue to look for new opportunities uh from where we can source raw material that remains ongoing um and is pretty 38:55 38 minutes, 55 seconds much uh continuing activity uh in the organization but as things stand uh you know we we don't see any uh disruption or issues on that front. 39:07 39 minutes, 7 seconds Sure. Uh thanks for that. Uh second question you also mentioned that uh some of the shipments to Middle East were rerouted to other markets. 39:15 39 minutes, 15 seconds uh does that mean there is a change in terms of the dynamics in which Middle East is being served or is it that the 39:24 39 minutes, 24 seconds shipments in other geographies will create at least some inventory position for the time being and which may impact uh our future supplies in the near term. 39:34 39 minutes, 34 seconds Thank you. 39:37 39 minutes, 37 seconds So I think the the Middle East is probably underserved because of the the current scenario that we're in. The issue is about being able to get product 39:44 39 minutes, 44 seconds into the market. Uh you know, everyone's belief at least is uh a significant part of that will come back, you know, very 39:53 39 minutes, 53 seconds early this quarter. Um I don't think we're in a situation where we are, uh, you know, overs supplied or stocked in 40:01 40 minutes, 1 second other markets. Uh like I said in my earlier commentary even about the additional capacity, uh we are seeing very strong demand pull at this point in 40:10 40 minutes, 10 seconds time. uh and uh you know so you I kind of would dovetail both those comments and consume them together so that uh 40:18 40 minutes, 18 seconds really what we're in a we're in a situation where uh I think we've got enough uh uh you know we've got enough 40:26 40 minutes, 26 seconds order so to say uh and interest from customers which we're seeking to fulfill. Uh so I don't think there are 40:33 40 minutes, 33 seconds significant changes or uh stocking situations that have got created out of this. It's more about where we've been able to fulfill demand at this point in time. 40:43 40 minutes, 43 seconds Perfect. Uh just one clarification on the number. Sorry to interrupt Rohit. 40:47 40 minutes, 47 seconds I'll come back to you. Thank you so much. Thank you. 40:51 40 minutes, 51 seconds Next question is from the line of Arun Prasad from Aendas Park. Please go ahead. 40:58 40 minutes, 58 seconds Uh good morning everyone. Thanks for the opportunity. Uh my first question is on u uh the CVIP that we have in balance 41:07 41 minutes, 7 seconds sheet at this point of time roughly 2,000 crores. Uh what is the timeline at at which these C will get capitalized 41:15 41 minutes, 15 seconds and uh and if you can kindly provide some color on the projects that will be capitalized in this year and next year. 41:23 41 minutes, 23 seconds I'm sorry um Arun, I didn't get the second part of your question. If you could just repeat that. So I I was asking the break up of the CIP at this 41:31 41 minutes, 31 seconds point of time in the balance sheet and when it will get capitalized in the project if you can give a 41:39 41 minutes, 39 seconds yeah okay so you know it's across a set of uh it's across a set of projects that are going on uh I don't think I can just 41:47 41 minutes, 47 seconds give you any you know one timeline that would uh would answer but major one we've got 41:57 41 minutes, 57 seconds yeah we we've investments that can you repeat please even you not audible sir 42:04 42 minutes, 4 seconds you can hear me now yeah please proceed thank you okay so there are a bunch of investments that are uh going to get capitalized um 42:14 42 minutes, 14 seconds you know through even the current financial year uh there's uh BOP uh the capacitor plant that you heard 42:22 42 minutes, 22 seconds our chairman speak about that's expected to come through uh very early this financial year there is uh the BOP BOP 42:31 42 minutes, 31 seconds line that's coming through uh you know closer to uh the second quarter. Uh we've have the fluoropolymer side uh 42:40 42 minutes, 40 seconds coming through towards Q3 early Q4 timeline. Um 42:46 42 minutes, 46 seconds so yeah and and we will see the we will see the early investments on uh the the 42:54 42 minutes, 54 seconds popa plant that uh our chairman spoke about come through as well during the first half uh of this financial year. So um yeah those are probably the big ones. 43:06 43 minutes, 6 seconds You also heard him talk about the pharma intermediate plant. So uh though that's 43:13 43 minutes, 13 seconds new it's not sitting in cip uh you will see uh that come through online and safe to assume that many of these 43:21 43 minutes, 21 seconds will take uh at least a couple of quarters to reach a ramp up stage or any approvals uh will will take u uh will 43:31 43 minutes, 31 seconds will push the revenue monetization say uh more than two three quarters. 43:37 43 minutes, 37 seconds I think that's a fair assumption to work with. That's what we've typically seen. 43:40 43 minutes, 40 seconds Uh yeah. Uh maybe on a on the floropolymer side. Well uh there's work happening in parallel. And let let me try and rephrase that answer. There's 43:49 43 minutes, 49 seconds work happening in parallel. Uh even as these plants come online uh you know uh in some areas we are able to uh secure a 43:58 43 minutes, 58 seconds lot of customer interest early um and do some amount of work with them to make sure we can uh crunch approval times. 44:06 44 minutes, 6 seconds But for the most part, I think your assumption um kind of holds true. 44:13 44 minutes, 13 seconds Speaking of the projects on please rejoin for followup questions. Thank you. 44:21 44 minutes, 21 seconds Next question is from the lineup Nad Chadri from Adita BLA Sunlife AMC. Please go ahead. 44:28 44 minutes, 28 seconds Yeah. Hi. Uh hope I'm audible. Uh thank you for the opportunity. Uh just uh one thing u from our next 3 to 5 years point 44:37 44 minutes, 37 seconds of view wanted to understand uh few media articles had indicated that we have roughly uh 10,000 cr rupes of 44:45 44 minutes, 45 seconds investment plans at our side in next four five years. So apart from uh the HFO what what other projects we have in 44:54 44 minutes, 54 seconds the mind which we are evaluating and can come to this uh slide in next three three years. 45:04 45 minutes, 4 seconds Yeah. Uh I think it's premature to to kind of conjecture about anything else but let me give you a sense of scale. Uh 45:11 45 minutes, 11 seconds the Orisa site is uh a close to 300 acre site. uh at this point in time uh we are probably developing 45:20 45 minutes, 20 seconds um you know a fifth or a sixth of it uh for what we're talking about on HFO that site is largely going to be for 45:28 45 minutes, 28 seconds chemicals I think uh we've we've kind of been explicit about that uh now how that pans out beyond what we've initially 45:36 45 minutes, 36 seconds thought about uh on HFO uh is still to be seen so it' be very premature I think at this time to kind of talk about what 45:43 45 minutes, 43 seconds else would come over there but I we safe to assume uh it would be largely in the chemical space. Uh that's how we're thinking about that location. 45:55 45 minutes, 55 seconds And lastly on the um spectum side would we be able to quantify in terms of 46:03 46 minutes, 3 seconds how many molecules we have in the hand if it goes well could be um as equal to as your current largest molecule. 46:16 46 minutes, 16 seconds Well, there's work that's ongoing. Um, you know, I'm assuming your your question is directed more at the uh agro 46:23 46 minutes, 23 seconds side. Uh, there are um at this point uh seven or eight uh you know products that 46:32 46 minutes, 32 seconds we are in uh in a in a very advanced state on uh with customers. Um I would 46:40 46 minutes, 40 seconds also kind of add to that that despite everything happening in the space we continue to get interest from customers 46:48 46 minutes, 48 seconds on newer areas. So there are newer products where we're continuing to see interest uh from the from our customers. 46:56 46 minutes, 56 seconds Um so you know while the innovators may be work you know uh proceeding slowly on the registration side their intent to uh 47:06 47 minutes, 6 seconds continue to look at new opportunity opportunities with us continues at this point. Um yeah so I think that's that's 47:13 47 minutes, 13 seconds kind of where we are uh in that space at this point in time. Um yeah, I'd also I'd also add that I think given the 47:21 47 minutes, 21 seconds amount of work that's happened over there uh in that whole space as we kind of eventually get to a place where we are out of the cycle uh you know we 47:30 47 minutes, 30 seconds should we should see a lot of interest and ramp up um you know in that whole space fairly soon thereafter given the 47:38 47 minutes, 38 seconds work that's gone in over the over the last year. 47:43 47 minutes, 43 seconds Um sure thank you so much all the Thank you. Next question is from the 47:50 47 minutes, 50 seconds line of Ker Panda from ICISA Credential Life Insurance. Please go ahead. 47:56 47 minutes, 56 seconds Uh thank you for the opportunity. Uh just to u u expand the comment uh of the chairman on 48:04 48 minutes, 4 seconds the 15 to 20% growth for the entire capital uh chemical segment. uh uh if you can give more clarification on um 48:13 48 minutes, 13 seconds what would be the growth drivers for FI27 since we are almost fully utilized in terms of FAF gas uh and we are 48:21 48 minutes, 21 seconds talking about uh uh pricing challenges and volatility in spec segment. So what what would be the build uh building 48:29 48 minutes, 29 seconds blocks for 27 15 20% growth that is first question. 48:35 48 minutes, 35 seconds Yeah. uh over there. Um so number one is just overall ref gaps. Uh I think we 48:44 48 minutes, 44 seconds we've seen uh you know if you look at the numbers sequentially uh you see a significant uptick between Q3 and Q4 U 48:52 48 minutes, 52 seconds itself we believe that will continue to hold. Um like I said earlier while 48:59 48 minutes, 59 seconds you've heard about debottlenecking at scale right now it's not that this was not continuing in the past as well. Um 49:08 49 minutes, 8 seconds so uh there are volumes that that we are seeing that we can go fulfill and uh so 49:15 49 minutes, 15 seconds there's both the volume and price play over here um that that's driving outcome. So I think that would be the first piece. Uh the second really is on 49:25 49 minutes, 25 seconds the specialtity side. Uh we we you know we've consistently said that we will 49:32 49 minutes, 32 seconds hold share. uh you know even if we had impact on price um I think it's you know 49:40 49 minutes, 40 seconds the current current sense is that we believe the the worst of uh you know the the price destruction so to say in the 49:48 49 minutes, 48 seconds market is behind us and we should slowly start seeing a recovery from here so 49:55 49 minutes, 55 seconds that's the second piece uh I think we are going to have uh the the photopolymer part uh pick up in the 50:04 50 minutes, 4 seconds second half of the year as well. So that will start increasingly uh looking better and uh we're you know I think you 50:13 50 minutes, 13 seconds heard uh chairman also talk about the fact that the chemo's arrangement is is working out well. Um that's all set and 50:23 50 minutes, 23 seconds progressing on track. So again towards the second half late of this later half of the uh year we should see uh you know 50:31 50 minutes, 31 seconds we should start seeing early outcomes over there in terms of impact on numbers. So broadly those are the 50:38 50 minutes, 38 seconds building blocks that kind of drive this uh view in terms of where the growth should be uh for the chemicals business in coming year. 50:48 50 minutes, 48 seconds Understood. uh and second on the HFO part. So I think in the initial comments the initial comment was about uh 50:56 50 minutes, 56 seconds enhancing the capacity because of the client interest. Uh so this would be a merchant sales the way we have done for 51:04 51 minutes, 4 seconds HFC or there would be a tie up and we'll be making it for someone else. Uh if you can just clarify on that. Thank you and all the best. 51:13 51 minutes, 13 seconds Yeah, thank you. Uh well as things stand uh you know we're not in any tie up uh you know even when we uh went into the 51:22 51 minutes, 22 seconds HSC space uh it was with a clear view on where we saw the ref gas opportunities 51:29 51 minutes, 29 seconds lie uh and that's and you know uh where we are following uh the same track over here uh it's very clear the shift is 51:38 51 minutes, 38 seconds going to come uh you know and I think there's a strong advantage to be a early mover Um you also heard uh in our 51:47 51 minutes, 47 seconds chairman's speech this is uh you know uh in-house developed technology. It's 51:54 51 minutes, 54 seconds non-infringing uh and we believe it's uh it's potentially going to come in at uh uh 52:02 52 minutes, 2 seconds price points that are very competitive and um that I think positions us really well for an opportunity. Uh we're 52:10 52 minutes, 10 seconds already a global player with a significant share. So um you know in in the more mature markets that we're in 52:17 52 minutes, 17 seconds where uh some of the shift is already beginning uh we are hearing a lot uh in terms of interest over there and that's 52:25 52 minutes, 25 seconds kind of driving our uh actions today that you see uh in terms of this capacity. 52:37 52 minutes, 37 seconds Thank you. 52:38 52 minutes, 38 seconds Next question is from the line of Krishnan Pwani from SBI mutual fund. Please go ahead. 52:44 52 minutes, 44 seconds Yeah. Hi sir. Uh thank you for the opportunity. Uh two questions from my side. First on the fluo specialty. Uh 52:52 52 minutes, 52 seconds what was your fluo specialty sales for FI26 and where do you expect to end FI27 for fluo specialty? 53:00 53 minutes Yeah. Uh you know we we don't get into the subsegment data. uh uh what I can share is we've made strong progress over 53:09 53 minutes, 9 seconds there. Uh you you've heard us consistently talk about moving up the value chain uh you know from um from uh 53:19 53 minutes, 19 seconds bulb to uh fine cut and free flow that continues. uh we are in a in a pretty 53:26 53 minutes, 26 seconds advanced state in terms of uh a specialtity photo polymer as well and um 53:33 53 minutes, 33 seconds you know that that progress stays on track. I think you're going to have to think about this business uh almost like 53:42 53 minutes, 42 seconds how many of you consumed the chemicals business many many years ago. Um there is there is a lead time uh to to 53:51 53 minutes, 51 seconds get to a place where we will be effective but uh I think the combination of all that we're doing ourselves uh 53:58 53 minutes, 58 seconds along with the whole key arrangement that we have positions us really well. I think we'll ste we'll start seeing some 54:05 54 minutes, 5 seconds strong outcomes uh in FY27 on the revenue side. uh like I did say earlier in my commentary to earlier 54:13 54 minutes, 13 seconds question uh we should start seeing that in the second half of this year and uh I think post uh us going into the next 54:21 54 minutes, 21 seconds financial year uh we will see a fairly uh material ramp up uh in terms of outcomes. 54:29 54 minutes, 29 seconds Okay. Uh thanks for the um elaborative answer. I asked you because you mentioned the refs and before the specialy cells every year in the annual 54:38 54 minutes, 38 seconds report but no worries if uh you don't want to disclose it right now. Um second on um question is on HFO. Uh so which 54:48 54 minutes, 48 seconds HFO will come first because I think um I think chairman mentioned that you're looking at multiple HFOs. So, are you 54:55 54 minutes, 55 seconds looking at 1 2 3 4 YF to uh sell it first? And if yes, do you expect some of 55:02 55 minutes, 2 seconds your 134 AC to be canabilized by 1 123 for YF? 55:12 55 minutes, 12 seconds I think you heard uh you heard the chairman clearly call it we're going to get into all three uh products. Uh 55:22 55 minutes, 22 seconds the current uh the current plan is that these are all going to come up largely in parallel. Um commissionings of each 55:31 55 minutes, 31 seconds of these could be at slightly different times. Uh just given uh the product intricacies uh but given we are barely 55:40 55 minutes, 40 seconds just announced uh I think would be a little premature at this point in time to call out which ones will come up first. Um yeah, I think it would suffice 55:49 55 minutes, 49 seconds to say that uh all all three uh capacities are being put up in parallel uh along with everything on the HF side 55:58 55 minutes, 58 seconds uh and BHF. So it's not that we're going sequentially on this. Uh but uh which ones precisely will come up first um at 56:06 56 minutes, 6 seconds this point I think is a little premature. We will have a you know we'll probably have a better sense uh and be able to share in some time from here on. 56:15 56 minutes, 15 seconds Sure. And could you answer the second part? Uh, do you expect HFO1 123 for YS sales to cannibalize part of your 134A sales? 56:26 56 minutes, 26 seconds Well, I don't I I don't see that happening just for the simple reason, you know, where the markets that we're addressing uh and where HFO demand is 56:35 56 minutes, 35 seconds probably going to come through first, uh, they're probably going to be fairly distinct. So, you know, at the outset, I I I would think that would be my my my 56:44 56 minutes, 44 seconds summary answer at this point. Um, but yeah, again, we're we're talking situations 2 years plus out. Uh, we'll 56:51 56 minutes, 51 seconds need to see how things are at that point in time, but directionally that's the view right now. 56:57 56 minutes, 57 seconds Okay. Thank you. Thank you for patiently answering my question. Wish you all the best. Thank you. Thank you. 57:04 57 minutes, 4 seconds Next question is from the line of Ankor from Access Bank. Please go ahead. 57:10 57 minutes, 10 seconds Uh yeah hi sir thanks for the opportunity. Uh first question on the uh the specialy chemical side. Uh if you could help us you know better understand 57:18 57 minutes, 18 seconds how uh are you looking at the growth here across the existing as well as you know the newer products that we uh have 57:26 57 minutes, 26 seconds been working on especially given you know the pricing pressure from China being there. 57:32 57 minutes, 32 seconds Yeah, I think uh I think the way we're looking at this is um it's it's going to be super critical to have a really 57:41 57 minutes, 41 seconds strong product pipeline. Uh and this has got to scale across from the intermediate space all the way to AIS. 57:49 57 minutes, 49 seconds Um you know, we've all seen the cycle pan out. Uh you heard our chairman speak about it as well. uh at some point uh 57:58 57 minutes, 58 seconds you know different products will go down the value chain uh and therefore this having a strong product pipeline is going to be super important uh I think 58:07 58 minutes, 7 seconds just given uh the quant the amount of work that's gone in uh in terms of de you know our in-house development and 58:16 58 minutes, 16 seconds customer interest we are well positioned over there uh across this whole value chain from intermediates through to EI 58:23 58 minutes, 23 seconds um we've also done a fabulous uh uh quantum of work in the last year around 58:31 58 minutes, 31 seconds uh managing through efficiencies and I think even in these tough times to see the outcome that the chemicals business 58:38 58 minutes, 38 seconds has uh you know has reached from a from a margin standpoint uh you know clearly points to all of the effort that's gone 58:46 58 minutes, 46 seconds in in terms of technological interventions as well um to make sure that even as products kind of come off 58:54 58 minutes, 54 seconds those uh really high pricing levels uh we're in a place where we can continue to compete in the market uh and ensure we sustain volumes at effective margins. 59:05 59 minutes, 5 seconds So uh I think what's key is going to be to stay relevant across that whole type of products uh and there's a significant 59:13 59 minutes, 13 seconds amount of work that continues to go on over there that's going to be key I think uh for ongoing success in the specialtity space. 59:23 59 minutes, 23 seconds Sure sir. Uh second question on uh you know the the product approvals bit. Uh this is more for the the newer uh businesses uh on the aluminium foil side 59:31 59 minutes, 31 seconds or uh the PTFE the speciality grade. Uh where are we uh in terms of you know because we wanted to get into the premium grades and the you know higher 59:40 59 minutes, 40 seconds realization ones. So where are we in terms of product approvals here? Uh and what timeline can we look at uh for a uh 59:47 59 minutes, 47 seconds a revenue ramper for the existing capacities? 59:54 59 minutes, 54 seconds Well, on uh on the uh floropolymer side, uh you know, everything that we're doing in terms of moving up on uh from from 1:00:03 1 hour, 3 seconds bulb to uh fine cut and free flow, that's you know, very advanced right now. Uh I think we've kind of pointed 1:00:12 1 hour, 12 seconds earlier to a question saying we should expect to see uh ramp up over there in the the latter part of this year. Um I'm 1:00:21 1 hour, 21 seconds not sure if the rest of your question points to everything uh in terms of uh the the KOS arrangement. Uh again we 1:00:30 1 hour, 30 seconds said that's on track. So uh post December uh which is when we're kind of meant to be uh set and ready. Uh you 1:00:38 1 hour, 38 seconds know Q4 is when that should kick in. Uh and you've heard uh our chairman talk about the fact that that's a reasonably 1:00:46 1 hour, 46 seconds high margin contract. So we should see good outcomes over there. Um 1:00:54 1 hour, 54 seconds yeah I I'm not sure on Yes. So exports on aluminium have already started if I I think that was 1:01:02 1 hour, 1 minute, 2 seconds the second part of the question. Um you know we've already seen um progress over there through Q4 of this year and that's helped ramp up uh outcomes over there. 1:01:14 1 hour, 1 minute, 14 seconds We continue to have that focus and uh we should see uh that kind of uh that trajectory only improve through 2027. 1:01:25 1 hour, 1 minute, 25 seconds Sure. Uh thank you and all the best. Thank you. 1:01:30 1 hour, 1 minute, 30 seconds Thank you ladies and gentlemen. We will take that as a last question for today. 1:01:34 1 hour, 1 minute, 34 seconds I would like to hand the conference over to the management for closing comments. 1:01:39 1 hour, 1 minute, 39 seconds Yeah. Thank you all for joining this call. Uh we hope we've addressed many of your questions. Uh you know if you should have any further queries, we're 1:01:48 1 hour, 1 minute, 48 seconds more than happy to assist. Uh look forward to your continuing support as we move ahead. And on behalf of the whole management, thank you once again for taking out the time to join us today. 1:01:59 1 hour, 1 minute, 59 seconds Thank you very much. On behalf of ICIC Securities Limited, that concludes this conference. Thank you all for joining us 1:02:06 1 hour, 2 minutes, 6 seconds today. And you may now disconnect your lines.