Supreme Petrochem Ltd — Q4 FY26

Supreme Petrochem Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=AHRqqYyq8Lc Published: 2 weeks ago

0:03 3 seconds Ladies and gentlemen, good day and welcome to the Q4 FI26 earnings conference call of Supreme Petrochem 0:10 10 seconds Limited. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you 0:18 18 seconds to ask questions after the presentation concludes. 0:22 22 seconds Should you need assistance during this conference call, please signal an operator by pressing star then zero on your touchstone phone. Please note that 0:32 32 seconds this conference is being recorded. I now hand the conference over to Miss Purwangi Chen from Valerim Advisors. 0:39 39 seconds Thank you and over to you ma'am. 0:42 42 seconds Thank you. Good evening everyone and a very warm welcome to you all. My name is Purvangi Jen from Baller Advisors. We 0:49 49 seconds represent the investor relations of Supreme Petrochem Limited. On behalf of the company, I would like to thank you all for participating in the company's 0:57 57 seconds earnings call for the fourth quarter and financial year ended 2026. 1:03 1 minute, 3 seconds Before we begin, let me mention a quick cautionary statement. Some of the statements made in today's earnings call may be forward-looking in nature. Such 1:10 1 minute, 10 seconds forward-looking statements are subject to risk and uncertaintities which could cause actual results to differ from those anticipated. 1:18 1 minute, 18 seconds Such statements are based on management's belief as well as assumption made by and information currently available to the management. 1:26 1 minute, 26 seconds Audiences are cautioned not to place any undue reliant on these forward-looking statements in making any investment decisions. The purpose of today's 1:34 1 minute, 34 seconds earnings conference call is purely to educate and bring awareness about the company's fundamental business and financial performance for the quarter under review. 1:43 1 minute, 43 seconds Now let me introduce you to the management participating with us in today's earnings call. We have with us Mr. Rakkesh Nayar, executive director 1:52 1 minute, 52 seconds and CFO, Mr. Dilip, chief executive of finance and account and Mr. Dian Mishra, 2:00 2 minutes company secretary. Without any delay, I request Mr. Rakkesh to start with his opening remarks. Thank you and over to you sir. 2:10 2 minutes, 10 seconds Uh thank you Burwangi. 2:13 2 minutes, 13 seconds Good evening everyone. It's a pleasure to welcome you to the earnings conference call for the fourth quarter and the financial year 2026. 2:23 2 minutes, 23 seconds We'll give you a brief overview of the performance for the quarter ended 31st March. 2:28 2 minutes, 28 seconds On a standalone basis, the revenue from the operations for the fourth quarter stood at rupees,587 2:36 2 minutes, 36 seconds crores, reflecting a growth of 3% year on year. The fourth quarter is typically a strong quarter for the company supported by seasonally higher demand. 2:47 2 minutes, 47 seconds Generally, the performance during the quarter was driven by higher volumes and uh better spreads. 2:56 2 minutes, 56 seconds Stin monomodore prices remained stable during the quarter except when it jumps witnessed sharp jump in the month of March. 3:06 3 minutes, 6 seconds The operating avita stood at INR 253 crores reflecting a growth of 75% year on year 3:15 3 minutes, 15 seconds with operating AITA margins improving to 15.9%. 3:22 3 minutes, 22 seconds The total AITA was at 264 crores including the other income. 3:28 3 minutes, 28 seconds The net profit after tax was at rupees 168 crores with a fat margin of 10.59% 3:36 3 minutes, 36 seconds for three quarters. For the financial year 2026, the revenue from operations to red are 3:43 3 minutes, 43 seconds 5,338 crores. This is reflecting a decline of 11% yearonear primarily on account of 3:51 3 minutes, 51 seconds lower average styin monomer price during the year. Average sty monomer prices were lower by around 17% compared to the 4:00 4 minutes previous year which resulted in lower realizations despite nominal volume growth. The operating AITA is today 4:08 4 minutes, 8 seconds rupees 515 crores with the total AITA being at 558 crores with a margin of 10.37%. 4:17 4 minutes, 17 seconds And a net profit margin at 327 crores with a margin of 6.13%. 4:25 4 minutes, 25 seconds On the operational front, the sales volume of manufactured products increased to uh 1 lak 6 thou 6 64 tons 4:34 4 minutes, 34 seconds in quarter 4 2026 as against 95,556 in quarter 425 4:41 4 minutes, 41 seconds reflecting a growth of about 5.4% for the full year. Volume stood at 363,23 4:49 4 minutes, 49 seconds metric tons as compared to 355,967 metric tonses in last year reflecting a 4:56 4 minutes, 56 seconds growth of about 2%. Demand from OM segments remained healthy during the quarter while non segments witnessed 5:04 5 minutes, 4 seconds some softness and capacity utilization for the year remained healthy at over 80%. 5:12 5 minutes, 12 seconds The volumes here are reported are net of approximately 14,000 tons of our of the uh internal products being transferred 5:21 5 minutes, 21 seconds and consumed internally for compounding and and in the use for XPS installation board and hence are not included in the external sales volumes. 5:32 5 minutes, 32 seconds On the raw metal front, stin monomer prices remained largely stable until February 2026 within a range of plus 5:40 5 minutes, 40 seconds minus 10%. However, prices increased sharply in March 2026 following the West Asia conflict and disruption in supply 5:48 5 minutes, 48 seconds through the Strait of Armos. Stan monomer prices rose from around thousand per dollar prior to the conflict to a 5:56 5 minutes, 56 seconds peak of approximately $1650 ton and have since moderated to around USD $1,500 per ton. 6:05 6 minutes, 5 seconds The wild shipments from the Middle East were impacted during the month company was able to meet the domestic demand 6:13 6 minutes, 13 seconds through sufficient inventory material in transit and sourcing from alternate geographies. 6:21 6 minutes, 21 seconds Adequate arrangements have been made to ensure raw metal availability going forward in the coming months and the situation is only once the normal 6:30 6 minutes, 30 seconds shipping through the state of armors resumes. 6:33 6 minutes, 33 seconds With regard to our capex projects, manufacturing operations of the mass ABS plant have restarted with modified arrangements and are currently operating 6:42 6 minutes, 42 seconds at around 65% of the design capacity pending restoration of the impacted equipment. 6:50 6 minutes, 50 seconds The product has been well accepted in the market and we are pleased to inform that the EPS phase 2 expansion project 6:57 6 minutes, 57 seconds at our Nagotan complex was successfully commissioned on April 14th 2026 7:04 7 minutes, 4 seconds enhancing the APS capacity from 85,000 tons peranom to 115,000 tons peranom Adamoshi complex on the balance sheet 7:13 7 minutes, 13 seconds side the company continues to remain debt-free with an investable surplus of rupes 700 crores as at the end of March 2026. 7:22 7 minutes, 22 seconds All capital expenditure continues to be funded through internal acruals. 7:27 7 minutes, 27 seconds The board of directors has recommended a final dividend of rupees 8 per equity share along with interim dividend of rupees 2.5 per share declared earlier. 7:37 7 minutes, 37 seconds The total dividend for the year stands at rupees 10.5 per equity share of rupees face value of rupees 2 each. With 7:45 7 minutes, 45 seconds this I conclude my opening remarks. We are now open to the floor for question and answer session. Thank you. 7:53 7 minutes, 53 seconds Thanks. 7:54 7 minutes, 54 seconds Thank you very much. We will now begin with the question and answer session. 7:59 7 minutes, 59 seconds Anyone who wishes to ask a question may press star and one on the touchstone telephone. 8:06 8 minutes, 6 seconds If you wish to remove yourself from the question queue, you may press star and two. 8:12 8 minutes, 12 seconds Participants are requested to use handsets while asking a question. 8:17 8 minutes, 17 seconds Ladies and gentlemen, we will wait for a moment while the question Q assembles. 8:24 8 minutes, 24 seconds A reminder to all. You may press star and one to ask a question. 8:35 8 minutes, 35 seconds We will take the first question from the line of Adita Ketan from Smith's Institutional Equities. Please go ahead. 8:44 8 minutes, 44 seconds Yeah, thank you sir for the opportunity. 8:46 8 minutes, 46 seconds suggest a couple of questions and uh and congrats on a good set of numbers also. 8:50 8 minutes, 50 seconds Uh so my first question is uh is it possible to quantify the inventory gains in this quarter or a ballpark figure if 8:58 8 minutes, 58 seconds you can give and consequent to this s suppose if the situation into the west Asia stabilizes uh when are we expecting 9:07 9 minutes, 7 seconds that uh uh to come to an end and subsequently in in inventory losses if you would take so that would be booked 9:15 9 minutes, 15 seconds in Q1 or Q2 any sense of that sense It's very difficult very very difficult 9:23 9 minutes, 23 seconds to estimate the gains or the inventory gain or inventory loss at the moment because even in the month of April when 9:30 9 minutes, 30 seconds the in the month of March when the prices of the raw material increased and the shipments which were to 9:39 9 minutes, 39 seconds uh be loaded they were stopped. So some consignments had to be arranged at very 9:46 9 minutes, 46 seconds high prices. So it it's very difficult to estimate that and uh going forward also similarly when the situation 9:55 9 minutes, 55 seconds normalizes and our inventories on the high seas or inventories in the stock here what losses will happen nobody 10:02 10 minutes, 2 seconds knows. It's very difficult to assume because the last month the prices were at $1,650 a ton and today they are ruling around $1,500 a ton. 10:14 10 minutes, 14 seconds So what this is something which is very dynamic and estimating this is it's very 10:22 10 minutes, 22 seconds very impos difficult rather next to impossible at the moment. 10:27 10 minutes, 27 seconds Okay, got it sir. Uh so follow up on on on onto this question. Uh so suppose if if if the prices stabilize at this 10:35 10 minutes, 35 seconds levels how you see the demands from the end user industries are OEM uh still on their way to make contracts at this 10:43 10 minutes, 43 seconds higher prices or they are waiting uh so that prices come down and then they start buying off the finished product. Any idea on that sir? 10:52 10 minutes, 52 seconds See the OEMs are buying but then we are not entering into contracts at the moment because the situation is so fluid. 11:01 11 minutes, 1 second that what the what assumptions to be made now in the current scenario for the raw material pricing and and the other 11:10 11 minutes, 10 seconds expenses to be incurred in to procure the raw material the shipping costs have gone up the freight costs are up so it's 11:17 11 minutes, 17 seconds very difficult to assume and uh so we and the OEMs we have agreed that we will be doing contracts on the situation 11:26 11 minutes, 26 seconds normalizes the secondly as well as the demand is concerned the demand from the OEM 11:34 11 minutes, 34 seconds sectors is good but the non se OEM sector the demand has taken a big beating at the moment particularly 11:42 11 minutes, 42 seconds because one the prices are high two the labor is also not available the people have gone back the contract labors and 11:51 11 minutes, 51 seconds all they have gone back to their villages or some places and thirdly the for some processing you need gas and gas 11:58 11 minutes, 58 seconds is not available to the industry or some short supplies so people are not available. Uh the the the demand is low there. 12:09 12 minutes, 9 seconds Okay, got it. So uh sir, what would be our raw material cycle? So uh or how much inventory we keep in the pipeline 12:18 12 minutes, 18 seconds and secondly sir if you can quantify also how much are we procuring styneomer from Gulf countries versus China versus US. 12:26 12 minutes, 26 seconds I can only suffice to say that as far as domestic market is concerned, we will continue to meet the demand and we are 12:33 12 minutes, 33 seconds meeting the demand. What geographies we buy? But we will buy, we will source the material and uh we will meet the 12:40 12 minutes, 40 seconds domestic demand. That is our focus right now and all our customers are being supplied the raw mater the the material as and when they require it. 12:51 12 minutes, 51 seconds Got it. 12:53 12 minutes, 53 seconds So coming to ABS as per our latest filing that the capacity design has been modified it to make at 65% of the rated 13:02 13 minutes, 2 seconds capacity earlier. So is this the new normal or like uh so the 65% can go to 100% as and when so that technical 13:10 13 minutes, 10 seconds failure will be resolved once the failure gets resolved because what that equipment which failed has 13:17 13 minutes, 17 seconds been isolated and the collaborators have provided us some alternate arrangements by which of the original capacity we can operate at 65%. 13:29 13 minutes, 29 seconds Got it. 13:31 13 minutes, 31 seconds our capacity which was 70,000 for the time being it is now reduced to say 45 to 50,000 tons. 13:40 13 minutes, 40 seconds Got it sir. Got it sir. In into the presentation we have stated some so 14,000 tons of mass ABS we have produced and we have used it for the compounding. 13:49 13 minutes, 49 seconds Uh so this 14,000 tons of ABS has been manufactured in in the month of March only. Right sir? So 14,000 seems a good 13:56 13 minutes, 56 seconds figure. Some 20% odd utilization. We have not said 14,000 tons of ABS. What 14:02 14 minutes, 2 seconds we have said is polystyrene and ABS of 14,000 tons which has been produced 14:11 14 minutes, 11 seconds and transferred to our compounding further processing and compounding 14:18 14 minutes, 18 seconds purposes. So that when we when we look at our total capacity or the the sales 14:26 14 minutes, 26 seconds so that is the this is something this is our sales numbers they don't come because they are an interdivisional transfer when you look at our sales 14:34 14 minutes, 34 seconds volumes so that is net of these sales volumes though they have been produced in our other units and consumed in our compounding divisions. 14:44 14 minutes, 44 seconds Got it sir. Sir just one last question. 14:46 14 minutes, 46 seconds Uh sir, any target volume guidance for FI27 for base volumes as well as for EBS separate sir if you can give it. Uh I 14:55 14 minutes, 55 seconds have only one volume to give and uh if the normaly returns by June end second 15:02 15 minutes, 2 seconds quarter onwards things are normal then we expect that with the ABS operational we should be able to do 8 to 10% volume growth this year. 15:14 15 minutes, 14 seconds But that seems low s considering ABS also is now started at 65% plus there's business volume of EPS uh that numbers 15:22 15 minutes, 22 seconds are look slightly lower side then because the first quarter the first quarter we don't know where we are at the moment 15:31 15 minutes, 31 seconds okay that also is what I'm saying is subject to the complete normal situation being there from the second quarter 15:39 15 minutes, 39 seconds onwards exports also the you can send exports to Europe today only the Cape of 15:47 15 minutes, 47 seconds Good Hope. The shipping times have increased, the freight rates have gone up. So it is not the normal work 15:55 15 minutes, 55 seconds business conditions as far as the that part of the world is concerned. 16:02 16 minutes, 2 seconds Sorry interrupted between I would kindly request you to rejoin the queue again for more questions. 16:11 16 minutes, 11 seconds Thank you. 16:13 16 minutes, 13 seconds We will take the next question from the line of Rahul Gerval from Akai Asset Managers. Please go ahead. 16:20 16 minutes, 20 seconds Hi sir. Uh very good evening. Thank you for the opportunity and uh good set sir uh in a challenging 16:28 16 minutes, 28 seconds environment good numbers. Starting with couple of questions firstly on pricing and then on sourcing of raw material. 16:36 16 minutes, 36 seconds on pricing sir for ABS and polistering in both you know how are what is the imports price right now we're getting 16:44 16 minutes, 44 seconds quotes for like typical from an Indian industry perspective and when we compare that to you know what a supreme sells on 16:52 16 minutes, 52 seconds you know mass absol is that in quotes parity pricing or because the rupee depreciated 16:59 16 minutes, 59 seconds so is it similar is it is there a large difference there for the commodity ity grades. The base 17:09 17 minutes, 9 seconds price is uh always the landed price here of imported material. Then you add your little premiums here and there and the 17:18 17 minutes, 18 seconds costs involved. So for the commodity the the base for the price decision is the landed price. 17:26 17 minutes, 26 seconds Uh but for the value added grades then the price differential is entirely different. There are different 17:32 17 minutes, 32 seconds calculations for that. And as far as the uh the price or the imported material 17:40 17 minutes, 40 seconds coming in, we have uh not heard of any PS imports coming in or booked recently. 17:49 17 minutes, 49 seconds So I can't comment what prices the PS now will come if already booked in the month of March or April. ABS we heard 17:57 17 minutes, 57 seconds that some imports have been booked at $2,300 and $2,400 and they may arrive now in May or 18:04 18 minutes, 4 seconds something. So early March we had heard when the West Asia started that the polyarene at $1650 or $1,700 was booked. 18:15 18 minutes, 15 seconds So they uh would arrive sometimes in May. 18:20 18 minutes, 20 seconds But the Indian prices as far as the commodity grades are concerned they're generally in line with the landed prices plus the costs involved here. 18:31 18 minutes, 31 seconds Got sir. So you know I should assume that polyine whatever uh the Indian pricing is is is line with what commodity grade of the general grades. 18:44 18 minutes, 44 seconds Yes. 18:46 18 minutes, 46 seconds Which basically means that on a quarteronquarter basis you're going to see polisterine right now selling at what price are almost like 170 180 18:55 18 minutes, 55 seconds rupees a k around different depending upon grade to grade or thereabout. 19:03 19 minutes, 3 seconds Got it sir. Moving ahead on on the raw metal side. Similar question you mentioned steaming pricing you know right now spot at $1500. 19:13 19 minutes, 13 seconds uh is it like you know whatever inflation we've seen on raw material and you also mentioned you're not booking new contracts with OEMs there's going to 19:22 19 minutes, 22 seconds be more squat uh sales I think will that should I assume it's 100% pass through and customers are okay buying uh you 19:30 19 minutes, 30 seconds know at that higher price and there's no hit on margin is that I said the earlier to the gentleman Adita 19:39 19 minutes, 39 seconds uh that the non non market demand is dented at the moment. It's subdued because of the high prices. 19:50 19 minutes, 50 seconds So it has impacted the demand as far as OEMs are concerned because it's the season for them. So they are buying but 20:00 20 minutes then it has to assess at the increased prices only and it's not that we don't want to enter 20:07 20 minutes, 7 seconds into a contract with the uh OEMs. We the OEMs have been our old partners and we 20:15 20 minutes, 15 seconds have been engaging with the OEMs from beginning and we supply to practically all the OEMs in the country. It's only 20:22 20 minutes, 22 seconds that the situation is so fluid in terms of the raw material prices, the freight costs and other attributes which we consider 20:31 20 minutes, 31 seconds that it is not fair to do a contract at this moment and maybe once the situation normalizes then we will enter into our regular contracts with them. 20:42 20 minutes, 42 seconds But sir and last question then I'll get back in with you queue on the raw material sourcing side when I look at the balance sheet right I mean at 600 20:50 20 minutes, 50 seconds crores of inventory it looks pretty stable on a Y basis in terms of days of sales uh don't really think that companies actually stock more material 20:59 20 minutes, 59 seconds anyway the supplies were impacted in fourth quarter going forward you mentioned you'll ensure that domestic demand is completely met 100%. Uh could 21:09 21 minutes, 9 seconds you just elaborate on this sourcing part? Uh where are you getting steering from? Uh and you know incremental pricing how should we look at it? 21:19 21 minutes, 19 seconds See incremental pricing is the incremental pricing will get passed on to the 21:26 21 minutes, 26 seconds consumers here only except when the prices really start dropping then we may have an inventory loss. It's all a play 21:33 21 minutes, 33 seconds of market supply and demand today. And as far as the sourcing of material is concerned, we source some from Asia and some from China at the moment. 21:47 21 minutes, 47 seconds Got it. Very clear what I see. I'll get back in with you. Thank you. Thank you. 21:53 21 minutes, 53 seconds Thank you. The next question is from the line of Manish Osw from Nirmal Bank Securities. Please go ahead. 21:59 21 minutes, 59 seconds Yes sir. Thank you for the opportunity and good set of numbers. Uh sir, I have only one question uh about the Hana 22:07 22 minutes, 7 seconds capex thing. Uh can you update what is the status and how and what is the capex plan for the F27 sir? 22:16 22 minutes, 16 seconds So with the the as far as Hana is concerned we because the IOC styin monomer plant is delayed. 22:26 22 minutes, 26 seconds So as far as our polystyrene or EPS our projects are concerned so we are not committing any expense for that at the 22:34 22 minutes, 34 seconds moment we are going to spend some money but that will be more on the infrastructure and on the other related 22:43 22 minutes, 43 seconds activities because the once we have more clarity on the IOC's SM plant commissioning date then only we will put 22:51 22 minutes, 51 seconds in the big monies for the SM and P sorry PS and EPS Otherwise we will be we are planning to do some work in regard to 22:59 22 minutes, 59 seconds the other units there this year and the capex for the F27 23:08 23 minutes, 8 seconds for the year I don't have the separate numbers for uh panip but for the year for the company as a whole we'll be doing around 250 odd crores 23:17 23 minutes, 17 seconds all right sir thank you very much thank you the next question is from the 23:24 23 minutes, 24 seconds line of miraodia from annual wealth please go ahead. 23:28 23 minutes, 28 seconds Yes sir. Good afternoon and thanks for the opportunity. So a few questions. So first is on the consumption of ABS and 23:34 23 minutes, 34 seconds PS. So like ABS on a monthly basis we are close to around 25 26,000 tons some months maybe higher also and for PS we 23:44 23 minutes, 44 seconds are currently close to around 30,000 tons a month. So you mentioned that the Wii demand were impacted uh during the 23:51 23 minutes, 51 seconds quarter because of uh the reasons you mentioned on uh if you can just help us understand what could be uh the demand 24:01 24 minutes, 1 second coming from the nonoe sector out of this uh total consumption of PS and ABS on a monthly basis some understanding sir 24:10 24 minutes, 10 seconds I said the nonm market was impacted correct particularly in the month of April not till March 24:18 24 minutes, 18 seconds correct the in the month of April the nonm market is demand is impacted and as far as the division between the OEM and 24:26 24 minutes, 26 seconds nonMe is concerned I would say for both categories you can take roughly around 24:32 24 minutes, 32 seconds 50/50 or 45% for OEM and 55 for non OEM got it so since 55% of the demand which 24:41 24 minutes, 41 seconds was impacted is it possible to give some uh quantum in terms of how much it would have reduced. So let's say on a base of 24:48 24 minutes, 48 seconds 100 which it was pre war how much it would have fallen in the month of April and May to estimate that too early to estimate 24:57 24 minutes, 57 seconds that because it's now in April only it started correct but now so once the quarter closes will we have a better 25:05 25 minutes, 5 seconds numbers then correct uh sir you mentioned about the styrene sourcing like when we see the global map let's say consumption of 25:14 25 minutes, 14 seconds around 32 33 million tons of styrene and by ch global consumption where China is close to around 18 and we are at around 1.5 25:23 25 minutes, 23 seconds uh in terms of the global consumption so when we see the upstreams of styrene let's say benzene and ethylene or let's 25:31 25 minutes, 31 seconds say slightly above that to napa even China is importing everything so how they've been able to manage in terms of 25:38 25 minutes, 38 seconds their captive consumption of styrene and also have some exportable surplus which could come to us a and b if you can 25:45 25 minutes, 45 seconds share your similar thoughts on acrony because then for ABS this becomes a very critical raw material. So uh from where 25:53 25 minutes, 53 seconds we the ACN part is currently coming from. 25:57 25 minutes, 57 seconds Yeah. As far as uh ethylene and benzene is concerned, China is not fully dependent for this. They have their own 26:06 26 minutes, 6 seconds uh internal production. Some part of it they are dependent on it. But then uh they are in any case however were till 26:15 26 minutes, 15 seconds now buying the crude from Russia as well as from Iran. They were able to take their crude oil. 26:23 26 minutes, 23 seconds So they have some difficulties there but then uh to that extent their installed capacity was 18 million tons but their 26:30 26 minutes, 30 seconds own consumption was not 18 million tons of sty monomer was less and so they are able to at least what surplus they have 26:38 26 minutes, 38 seconds now by ramping up of their capacities uh they they are able to meet some part of the demand 26:47 26 minutes, 47 seconds and si if you can share your thoughts Sorry 26:54 26 minutes, 54 seconds ACN we have not faced any difficulty till now. We have one we have our own sufficient stock with us and uh or some 27:03 27 minutes, 3 seconds supplies were in the pipeline they have come for us and going forward also we are getting it right now we are getting it from the other geographies. 27:14 27 minutes, 14 seconds Correct. So last time uh in our conference call you updated about onboarding some larger customers for X 27:21 27 minutes, 21 seconds mold and you also mentioned that one of the bigger OEM which was like a third OEM we had a good discussion which 27:28 27 minutes, 28 seconds probably could come on board with us. So if you can uh help us understand like uh has that customer been onboarded A and B 27:38 27 minutes, 38 seconds uh how do we see the X mold volumes picking up in FY27. So first if you can share your thoughts on the utilization 27:46 27 minutes, 46 seconds part in FI26 and how are we seeing FI27 forex mode 27:53 27 minutes, 53 seconds the the uh OEM customers which we said in the last they are there on the board we are getting 28:01 28 minutes, 1 second some orders from them and the third one was an automobile one which again our 28:07 28 minutes, 7 seconds material is going to their uh uh tier one um 28:14 28 minutes, 14 seconds uh the the supplier for the automobile company. So uh that has been uh on a on 28:22 28 minutes, 22 seconds regular basis it has started. So the as far as customer induction is concerned that is going on there. Now volumes are 28:30 28 minutes, 30 seconds concerned we after the all streamlining and cleaning up there now we expect this year we should be doing 50 to 60% more 28:39 28 minutes, 39 seconds like last year we did utilization of close to only uh how much is that around 50% or 40 45% of their overall installed capacity. 28:52 28 minutes, 52 seconds Okay. uh and this year we should be doing close to say 70% of that capacity or 65 to 70% of that capacity. 29:01 29 minutes, 1 second Perfect sir. So last question from my side. Uh what was the trading sales in quarter 4 of FI26 trading sales? 29:11 29 minutes, 11 seconds Yeah. So like we reported close to around 1587 crores of turnover this quarter. How much of it was uh trading out of trading of this? 29:22 29 minutes, 22 seconds Generally roughly it'll be uh around uh 18% or so in this quarter. 29:29 29 minutes, 29 seconds Sorry sir, I missed your point around 18%. 29:37 29 minutes, 37 seconds Okay. So 18% was 18% would be there in this quarter. So even for the full year breeding has come 29:45 29 minutes, 45 seconds down now this year and it will be close to the same level of uh 9 18 to 19% download. 29:52 29 minutes, 52 seconds Got it sir. Thank you so much and wish you all the best. 29:59 29 minutes, 59 seconds Thank you. A reminder to all the participants you may press star and one to ask a question. 30:06 30 minutes, 6 seconds We will take the next question from the line of Abishwal from Dr. Choxy. Please go ahead. 30:13 30 minutes, 13 seconds Good evening sir. Thank you for taking up my question. So most of my questions have been answered. So just one question final sir. So sir given that the phase 30:21 30 minutes, 21 seconds one is uh now running on for the EBS and what is the current thinking of uh like on phase two expansion like is there any timeline or utilization milestone you 30:30 30 minutes, 30 seconds are targeting before committing to it and separately what's your thought upon uh competition from ABS imports coming 30:37 30 minutes, 37 seconds in from Taiwan and Korea like are these imports competing on price versus domestic products thank you 30:46 30 minutes, 46 seconds see the imports have been coming imports will continue to come because the domestic capacity is 30:53 30 minutes, 53 seconds far lower than the actual demand in the country. So the imports is not a concern at the moment. 31:04 31 minutes, 4 seconds the as far as the our own capacity utilization is concerned as I said that we are currently 31:13 31 minutes, 13 seconds after the modified arrangement at 65% of the original rated capacity and we expect that we should be able to do 31:21 31 minutes, 21 seconds close to 85 90% or 80% of that capacity utilization this year now as the second 31:30 31 minutes, 30 seconds line is concerned the we are working on that and uh that that is irrespective of 31:37 31 minutes, 37 seconds the fact that what has happened here as far as one equipment one piece of equipment is concerned but then we are 31:44 31 minutes, 44 seconds we are working on the second line okay okay that's it thank you so much 31:54 31 minutes, 54 seconds thank you we will take the next question from the line of sesh Raja from BNK security please go ahead 32:02 32 minutes, 2 seconds yeah sir I joined a call late. Apologies if this has already been answered. Sir, uh with styrene monomer prices currently at elevated levels uh you know USD,500. 32:14 32 minutes, 14 seconds So how are you approaching you know the procurement uh decision especially considering our typical inventory holding of uh you know 2 months. So in 32:22 32 minutes, 22 seconds this environment would we look to reduce inventory in anticipation of your price correction or continue procuring at 32:29 32 minutes, 29 seconds higher prices and rely on pass through mechanism with customers. So could you please talk about that? 32:37 32 minutes, 37 seconds No we are procuring of course the regular suppliers are not available. 32:43 32 minutes, 43 seconds Procuring itself is a task today and we are right now balancing the material available with the demand here 32:52 32 minutes, 52 seconds and uh we are concentrating mainly on meeting at least the domestic demand. 33:00 33 minutes Mhm. And uh we are we are aware that because some loss inventory loss might come the moment the whole situation 33:09 33 minutes, 9 seconds normalizes the prices drop and that dropping will happen where there will it will be a sharp drop. So as and when it 33:17 33 minutes, 17 seconds happens there will be some an inventory loss to us and we are trying to find ways that the we are able to contain that if if as and 33:26 33 minutes, 26 seconds when it happens if it happens then we are able to contain those losses. So 33:33 33 minutes, 33 seconds all kinds of uh things we are doing in terms of even passing through the extra cost 33:41 33 minutes, 41 seconds uh sourcing the raw material in the matching it with our requirements or the domestic demand. 33:49 33 minutes, 49 seconds So efforts are on known towards that. 33:52 33 minutes, 52 seconds Okay. Okay. Okay. Sir uh given the current raw material supply constraint uh affecting some polymer players. So do 34:00 34 minutes you see scope for faster customer approvals for new grade in the SPC X mold division for us considering that 34:08 34 minutes, 8 seconds such approval typically it will take a year's time. So how do you see that? 34:15 34 minutes, 15 seconds No it's happening it's happening. We have not faced any difficulty there but OEMs will take their own time. OEMs this 34:22 34 minutes, 22 seconds is not the case with the OEMs but the nonEMs earlier also were not taking very long and uh uh we are not facing such thing at the moment. 34:35 34 minutes, 35 seconds Okay. Okay. Sir in the SPC division uh could you elaborate on specific initiatives that we are taking to 34:43 34 minutes, 43 seconds increase the volumes and also the potential you know the cross-ell products through X mold existing automotive customer base and also by 34:52 34 minutes, 52 seconds when do you think that we can reach sir we are not doing any crossell in the sense we know that all sterinics mold 35:00 35 minutes compounding is being done by us and uh the we continue to do what we 35:08 35 minutes, 8 seconds were doing but then they since more on the only good thing there is that they were never an appliance 35:15 35 minutes, 15 seconds uh compounding company but now with Sher city being there 35:21 35 minutes, 21 seconds and lot of OEMs are there in Shir city air conditioning companies are there in 35:26 35 minutes, 26 seconds Shir city so they are also uh focusing on the 35:34 35 minutes, 34 seconds supplies to air conditioning guys and other OEM guys and they have been successful in uh onboarding uh two of the AC manufacturers there. 35:44 35 minutes, 44 seconds Okay. Okay. Great sir. Mhm. So by when we are uh when we are expected to touch you know 50,000 volumes in SPC division SPC and X mold. 35:57 35 minutes, 57 seconds Maybe maybe it'll happen this year or next year because ABS compounding is going through that. Now we are started 36:05 36 minutes, 5 seconds doing ABS compounding in a little bigger way than what we were doing earlier. 36:10 36 minutes, 10 seconds So the next question our compounding volume should see a jump 36:16 36 minutes, 16 seconds this year. So we hope that by if not in FY27 but FY28 we should be certainly at 50,000. 36:27 36 minutes, 27 seconds Okay. Okay. Great sir. Sir one last question. So in ABS why we are targeting around 36,000 uh tons of volume in SI27. 36:36 36 minutes, 36 seconds Could you clarify how much additional demand we expect from our internal consumption particularly from SPC XML division 36:45 36 minutes, 45 seconds and also wanted to know the PDP break even capacity in ABS. 36:54 36 minutes, 54 seconds How much you will supply to our own internal consumption is very difficult to predict because based on what the ABS 37:01 37 minutes, 1 second compounds because we are going to start now the ABS compounds and the again acceptability the new 37:08 37 minutes, 8 seconds customers coming in approving the grades are very difficult to say that but yes we we would be increasing our uh focus 37:16 37 minutes, 16 seconds on that. Uh so and in any case the uh these uh 37:26 37 minutes, 26 seconds uh what's the the X volt X volt is not in the ABS compounding at the moment. Okay. Okay. Okay. 37:34 37 minutes, 34 seconds Okay. Okay sir. Yeah. Okay sir. Thank you sir. Only this. 37:43 37 minutes, 43 seconds Thank you. We have the next follow-up question from the line of Adita Ketan from Smith's Institutional Equities. Please go ahead. 37:52 37 minutes, 52 seconds Thank you sir for the followup. Uh sir uh my first question is on to the polystyrene. Uh it has been s four years 37:59 37 minutes, 59 seconds when we have last debottle the capacity uh and we are uh also nearing about 85% 38:07 38 minutes, 7 seconds utilization almost near peak. uh any plans s to further debut like that capacity? 38:14 38 minutes, 14 seconds Yeah, we are actually we did not debottle like four years back. We set up a new line altogether. Four years back 38:21 38 minutes, 21 seconds uh 2020 or 3 years back we set up a new line and now we are evaluating the tea 38:29 38 minutes, 29 seconds bottle I think and this will be done by sir FI 2728. 38:37 38 minutes, 37 seconds I just said we are evaluating there's no I can't give you a timeline for that. 38:44 38 minutes, 44 seconds Got it. Uh sir onto the spreads part if you can update like what are the current spreads between polystyrene and SM uh 38:52 38 minutes, 52 seconds pre-war and today and uh and where you see the the trajectory going ahead. 39:01 39 minutes, 1 second You are asking something which is very difficult to answer even because the way things are globally the it's first is 39:10 39 minutes, 10 seconds the getting the material is a concern the it's not uh that what margins are there 39:19 39 minutes, 19 seconds getting the material itself is a concern at the moment but then uh you see the delta will not sharply increase the 39:26 39 minutes, 26 seconds deltas which were earlier closer to say for GP for 200 they they have moved to 39:34 39 minutes, 34 seconds closer to 275 or so per GPU. 39:43 39 minutes, 43 seconds Okay. $270 per ton for GPS. Okay. 39:47 39 minutes, 47 seconds There about maybe some some transactions may have have happened at depending upon every day the prices are changing. Now 39:53 39 minutes, 53 seconds the situation is very fluid. You can't really define what delta. There is no standard thumb rule that this will be 40:00 40 minutes the delta now. So the prices are changing varying every day. Today the styrene is say at $1,500. 40:08 40 minutes, 8 seconds So the uh $1750 $1,800 could be for the uh 40:16 40 minutes, 16 seconds the landed cost of uh polyarin GP in India closer to that. So $275 you can assume. 40:24 40 minutes, 24 seconds Got it. So my third question so so in inventory gain benefit has been booked in this quarter or subsequent quarters 40:31 40 minutes, 31 seconds also we'll see some benefit we don't have some inventory gain as such specific entry as and when material 40:37 40 minutes, 37 seconds comes in it gets sold. So whatever loss profit comes in it is it gets booked in the business. 40:46 40 minutes, 46 seconds So there is not nothing such that the inventory gain has to be booked or inventory loss has to be booked. It is 40:54 40 minutes, 54 seconds the transaction happening. Material has come in. We have sold it. Whether I made loss or gain, it is there in the balance sheet. It is there in the accounts. 41:05 41 minutes, 5 seconds Got it. Got it. Uh so my next question is onto the ABS. So onto the phase two ABS. So sir that is planned by FI28. 41:13 41 minutes, 13 seconds Considering sir we are the phase one also we are operating at lower capacities. Uh any any ideas phase 2 will come by FI28. Are we sticking onto that? 41:24 41 minutes, 24 seconds As of now, yes, we are still aiming that only baky. See, as far as the uh capacity is concerned, there's enough 41:32 41 minutes, 32 seconds demand in India. Not that we okay, we had an unfortunate incident that the uh one of the critical equipment has developed some snag. 41:42 41 minutes, 42 seconds So and that is become something serious because it has to be removed and then repaired and it's a it's a time taking 41:50 41 minutes, 50 seconds process but then our collaborators have at least found an alternate arrangement for us or which we are able to operate at 65% and which we are doing now. 42:03 42 minutes, 3 seconds Got it. Got it. So just one last question sir. So the recent government decision took uh to remove the import duty on EBS. Are we seeing su 42:12 42 minutes, 12 seconds some good imports of EBS are coming in and and B because our samples are also now into the market. How are competitive 42:20 42 minutes, 20 seconds versus imports coming in onto pricing onto the quality front? 42:26 42 minutes, 26 seconds Right now as I said very difficult to compare because whatever material is coming if booked in the month of March 42:32 42 minutes, 32 seconds that March prices were ruling at $2,400 for ABS. 42:39 42 minutes, 39 seconds So if that comes in today duty or no duty the landed price of that itself will be 230 rupees then 42:48 42 minutes, 48 seconds at the current dollar of 95 rupees it'll be at 230 rupees a kg there. So the and 42:56 42 minutes, 56 seconds plus expenses so it it's uh the local prices are less than that. So there is no threat from 43:04 43 minutes, 4 seconds the competition as far as imports are concerned in terms of pricing is concerned. 43:10 43 minutes, 10 seconds That's it. Yeah, directional wise sir if you can just say like for FI27 because so new capacities of ABS and EPS have 43:19 43 minutes, 19 seconds come in so some higher cost from that and consequently uh assuming if if the war situation stabilizes so prices are 43:27 43 minutes, 27 seconds anticipated to come down are we how you see that directionally wise Aida for FI27 can be maintained onto that number 43:34 43 minutes, 34 seconds of FI26 or it could be slightly lower any directional wise I'm just asking no 43:41 43 minutes, 41 seconds wise I presume that the on for the remaining if I see the first 3 months I can't predict anything if situation 43:49 43 minutes, 49 seconds normalizes then in the normal circumstances we we should be doing 43:56 43 minutes, 56 seconds uh because the volumes will be better so we should be doing better than the last year 44:04 44 minutes, 4 seconds thank you sir that's it thank Thank you. We will take the next question from the line of Pria from Lucky Investments. Please go ahead. 44:16 44 minutes, 16 seconds Yes sir. Just one clarification uh a couple of them. So on your pricing which you mentioned about $2,200 of ABS uh 44:25 44 minutes, 25 seconds booking. So this is material to arrive in May or this is the material which arrived in March. 44:33 44 minutes, 33 seconds I said the material which was booked in March. That is what we heard. We have not bought but we market information is 44:41 44 minutes, 41 seconds that material booked in March was for at $2,300 even $2,400. 44:48 44 minutes, 48 seconds So that arrival may be now in April maybe get may arrive in May. If arrived in April also it will get sold in May. 44:56 44 minutes, 56 seconds Okay. So booked in March was $2,200 and then you mentioned a number of $1,600 45:04 45 minutes, 4 seconds that that was booked in that is the star monomer price I mentioned. 45:10 45 minutes, 10 seconds Okay. Okay. The other thing is sir uh you know considering so one of the comment you mentioned that 45:18 45 minutes, 18 seconds it's a ongoing business for you and on the event question that you me you answered too. So is it fair to assume 45:26 45 minutes, 26 seconds that uh what we see as the profitability in quarter 4 a large part of the 45:33 45 minutes, 33 seconds profitability is a ongoing profitability uh without any material inventory uh number floating flowing into that uh operating number. 45:44 45 minutes, 44 seconds Sorry I couldn't get you. 45:48 45 minutes, 48 seconds So the observation is uh I think there is some disturbance. Wait a sec. I will just remove my hand. 45:57 45 minutes, 57 seconds Yeah. So to one of the question you answered uh about uh you know normal nature of the business being we buy 46:05 46 minutes, 5 seconds inventory and uh we process it and it sell it during the quarter. So is it fair to assume that uh the the quarter 46:15 46 minutes, 15 seconds bond by doesn't have any major M2M on account of inventory flowing into the P&L? 46:24 46 minutes, 24 seconds No, it's a it's a process. See whatever material has come to me I process I got increased price maybe but then I bought also higher price material also. 46:35 46 minutes, 35 seconds Correct? 46:35 46 minutes, 35 seconds I have supplied even when the market was high. I have met my some contractual commitments which were at in the month of March when prices were skyrocketing. 46:44 46 minutes, 44 seconds We even met our contractual commitments which were at the old prices. So it's a part of business. There is I can't 46:51 46 minutes, 51 seconds segregate into the pockets that what consignment came and what price it got sold or something. 46:58 46 minutes, 58 seconds Okay. Uh the other question is uh is it fair to assume and based on your experience you know when you have these 47:05 47 minutes, 5 seconds supply raw material supply crunch typically in a system uh whereby you 47:11 47 minutes, 11 seconds have a higher material price flowing in uh so materially the profitability of 47:18 47 minutes, 18 seconds the business is higher usually versus a scenario which was last year let's say where you had a continuously falling sting price for the first nine months. 47:28 47 minutes, 28 seconds So you know a higher styne price automatically brings in a slightly better profitability. Is that assumption correct? 47:36 47 minutes, 36 seconds Uh there are two ways to look at it. The higher price of styrene if think leads into a better spread as far as polyarene 47:45 47 minutes, 45 seconds is concerned yes then it is beneficial but then it generally doesn't happen because higher styin monomer prices 47:53 47 minutes, 53 seconds kills the demand particularly the sectors which can wait or particularly the people who start going and looking 48:00 48 minutes into their pockets and saying whatever is the old material let me consume that the warehouses the supply chain will rather get emptied there. So the 48:08 48 minutes, 8 seconds materials doesn't get sold there and you are actually you land up holding the stock which is 48:16 48 minutes, 16 seconds high price stock and if the prices go down it finally leads into an inventory loss also. So too much of high price is 48:23 48 minutes, 23 seconds does not guarantee that there'll be better profitability. It kills the demand also. 48:29 48 minutes, 29 seconds But in a scenario like this based on your experience uh where shortage of material is throughout the globe is it a 48:38 48 minutes, 38 seconds favorable scenario for generally for uh so let's say there were imports happening into the country I'm assuming 48:45 48 minutes, 45 seconds supply chain globally are seeing the pet related supply shocks so it's a slightly favorable 48:53 48 minutes, 53 seconds situation in terms of profitability is that correct or even that assumption is uh challenged There is there is there is no import duty on the imported raw 49:02 49 minutes, 2 seconds materials or imported polymers also be polystyrene or ABS or SM there's a zero duty SM already was on zero duty from 49:10 49 minutes, 10 seconds all the FDA countries but then there was a duty on PS and SAPS so rather the to that extent they they are uh their 49:18 49 minutes, 18 seconds import cost goes down now and as far as the uh global shortage is concerned but 49:25 49 minutes, 25 seconds trend again as I said that the nonom sector the market has already shrunk. 49:30 49 minutes, 30 seconds April itself we are seeing now that the market is shrinking as nonom sector is concerned. Okay. 49:38 49 minutes, 38 seconds So the which went up in the month of March the prices are coming down of all polymers substantial decrease in prices 49:45 49 minutes, 45 seconds happened because people want to push their material and whereas there is no demand coming in. 49:52 49 minutes, 52 seconds Okay sir. Okay. Thank you very much sir. I'll get back you have more question. Thank you. 50:00 50 minutes Thank you. We will take the next question from the line of Rahul Aerval from Iklai Asset Managers. Please go ahead. 50:08 50 minutes, 8 seconds Yeah. Hi, thank you for the followup. Uh Rakkesh G. One question is you know for the mass ABA segment u assuming whenever 50:16 50 minutes, 16 seconds we ramp up to 70,000 tons for the phase one and you said the market is about 50/50 on OEM non what would be a 50:23 50 minutes, 23 seconds preferred mix for us like you know what would we want to do eventually with the capacity we would like to be present in all 50:31 50 minutes, 31 seconds segments like in we are in all the segments we are with all the OEMs we are there for all the nonMe guys also so we 50:40 50 minutes, 40 seconds would like to be there it's not that I will be only looking at it. It's only that in the OEM segment the the process 50:47 50 minutes, 47 seconds to get your grades approved and acceptance process is longer. So till that happens we would be in the nonoem 50:55 50 minutes, 55 seconds segment. The moment that happens we will be in OEM sector also right? So it largely should reflect the 51:02 51 minutes, 2 seconds industry mix right. It should be like 50/50 overall whenever we reach to like 40,000 eventually going forward once we are the 51:10 51 minutes, 10 seconds grades are totally established in the market we are fully operating then that's the scenario we will have. 51:18 51 minutes, 18 seconds Got it sir. And uh sir, second question was on the operating cash flow. Look at the cash flow statement. I see you know 51:26 51 minutes, 26 seconds a bit of higher working capital investment largely driven by higher data by 20 crores as of 31st March. Uh what has changed over here? How should I read the operating capital generation? 51:37 51 minutes, 37 seconds The prices of the the our selling prices, our purchase price, everything went up in the month of uh 51:45 51 minutes, 45 seconds March. So the selling prices being higher the dattors numbers will go up. 51:51 51 minutes, 51 seconds Plus ABS has come in so their volume numbers will go up. Inventory is concerned. Not only the polyester 51:58 51 minutes, 58 seconds inventory is there but ABS inventory has also come in. So all that adds to that. 52:07 52 minutes, 7 seconds All right. Got it. So basically going forward sustainable basis 30 35 days of receivable cycle. Is that fair to you 52:14 52 minutes, 14 seconds want to consult is I know that our networking capital has gone up there because of the increased 52:21 52 minutes, 21 seconds prices increased material which has come in ABS material has come in. So but then uh once the things become normal now 52:29 52 minutes, 29 seconds they will go back to where we were earlier. 52:35 52 minutes, 35 seconds Got it. Got it. Thank you so much and wish you best of luck for fulfilling calendar. Thank you so much. Thank you. 52:44 52 minutes, 44 seconds Thank you. We will take the next question from the line of NRA Jimodia from annual wealth. Please go ahead. 52:52 52 minutes, 52 seconds Yes sir. Thanks for the opportunity again. So two questions. So first is on the specialized grades of PS uh I guess 52:59 52 minutes, 59 seconds they were also imported into India and like uh because of all this uh crisis which we are seeing possibly that uh 53:06 53 minutes, 6 seconds specialized grades would be restricted in terms of coming to India. So uh a uh have we seen the uh premiums for the 53:14 53 minutes, 14 seconds specialized grades expanded in line with you mentioned for GP and B uh uh how our 53:22 53 minutes, 22 seconds volumes have moved for the specialized grades in the month of uh uh April for that particular applications. 53:32 53 minutes, 32 seconds No, I don't know which grades you are talking about you know because we like uh uh we we produce some specialized grids. So in one of the 53:41 53 minutes, 41 seconds earlier calls you mentioned that those grades command premium over over over the normal grids. 53:48 53 minutes, 48 seconds You are talking about some imports happening. 53:51 53 minutes, 51 seconds Yeah. Yeah. So like there are some specific grades uh which are for higherend refrigerators or washing 53:57 53 minutes, 57 seconds machines. So they are the ones that is the even the uh if they have been imported they 54:05 54 minutes, 5 seconds certainly would be at much higher price than the normal commodity grades there must be a difference of almost $200 plus there. 54:15 54 minutes, 15 seconds Correct. If you're looking at import data, the grades which have become for the the specialized polystyrene grades 54:22 54 minutes, 22 seconds which have been imported, they would be uh at a price of at least additional price of $200 would be there over the normal grades on imported by others. 54:33 54 minutes, 33 seconds Correct. So I just wanted to understand like do we have present in terms of volumes for those specialized grades? Uh 54:41 54 minutes, 41 seconds we are we are there we are in all kinds of refrigerators and AC grades practically every 54:49 54 minutes, 49 seconds user maker of refrigerator uses our polyar. 54:53 54 minutes, 53 seconds Correct. So to that extent that benefit would also occur to us whenever those users that we talk about the value added grades every time. 55:02 55 minutes, 2 seconds Correct. Correct. But but I just wanted to understand in terms of the expansion of the premium part which you rightly addressed. Uh the second question is on 55:12 55 minutes, 12 seconds the EPS part like if we see the demand for India was close to around 1 lakh 50,000 tons. So is it also a very uh 55:20 55 minutes, 20 seconds price sensitive in terms of from the consumer point of view and also if you can share your thoughts in terms of how are we seeing the growth in EPS since we have expanded the capacity in FI27. 55:34 55 minutes, 34 seconds The EPS is price sensitive. Every product is but then u uh at the lower end yes but then for the 55:43 55 minutes, 43 seconds uh uh packing segment for the construction segment and cold storageages 55:51 55 minutes, 51 seconds the demand has been great. They it has uh increased last year. They are the segments from where the demand growth came in. 56:00 56 minutes uh the as far as the capacity increase what we are we have to target more of the construction side of it okay 56:06 56 minutes, 6 seconds including the cold stoages also and 3D panels so we expect going forward the demand would uh increase in these 56:14 56 minutes, 14 seconds segments and we'll be able to supply plus export market okay because our grades have been approved in the Europe and during the peak months we 56:23 56 minutes, 23 seconds we were finding that we are not able to meet the demand there uh we can't supply because we have to supply to the local 56:32 56 minutes, 32 seconds market. So this additional capacity will help us in uh starting our exports of EPS. 56:39 56 minutes, 39 seconds Correct. So safe to assume that at least in line with the volume growth guidance which you mentioned similar volume growth could be possible in EPS also 56:48 56 minutes, 48 seconds like on a on a consolidated basis for the company as a whole. 56:53 56 minutes, 53 seconds Huh? We have said that we will uh along with the market growth of this year, we will also grow this year. But then all 57:00 57 minutes the volumes put together depending upon the global situation, the war situation, if everything becomes normal by June end 57:08 57 minutes, 8 seconds and July sees the normal behavior in the global markets, we should be doing 8 to 10% volume growth this year. 57:16 57 minutes, 16 seconds Perfect sir. Perfect. Thank you so much. Thank you. 57:22 57 minutes, 22 seconds Thank you. A reminder to all the participants, you may press star and one to ask a question. 57:38 57 minutes, 38 seconds Ladies and gentlemen, as there are no further questions from the participants, we now conclude the question and answer session. I now hand the conference back to the management for closing comments. 57:49 57 minutes, 49 seconds Over to you sir. 57:51 57 minutes, 51 seconds Thank you all for participating in this earnings phone call. If you have any further questions or would like to know more about the company, please reach out to our IR managers at Valerum Advisors. 58:02 58 minutes, 2 seconds Thank you so much. Thank you. 58:04 58 minutes, 4 seconds Thank you members of the management. On behalf of Supreme Petrom Limited that concludes this conference. Thank you all for joining us today and you may now disconnect your lines.