Tanfac Industries Ltd — Q4 FY26

Tanfac Industries Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=Kj3_Wjj7RNk Published: 1 day ago

0:00 Ladies and gentlemen, good day and welcome to Tanfac Industries Limited Q4 and FYI26 earnings conference call. As a 0:07 7 seconds reminder, all participant lines will be in the listenonly mode. There will be an opportunity for you to ask questions after the presentation concludes. Should 0:16 16 seconds you need any assistance during this conference, please signal for an operator by pressing star and then zero on your touchtone telephones. Please 0:24 24 seconds note that this conference call is being recorded. Before we begin, a brief disclaimer. This conference call may contain forward-looking statements about 0:32 32 seconds the company which are based on the beliefs, opinions, and expectations of the company as on date of this call. 0:39 39 seconds These statements are not the guarantees of future performance and it may involve risks and uncertainties that are difficult to predict. I now hand the 0:48 48 seconds conference over to Mr. Absal Malcani, managing director of Tanpac Industries Limited. Thank you and over to you sir. 0:56 56 seconds Thank you. Good afternoon everybody and very warm welcome to our Q4 and FY26 earnings call. Along with me we have Mr. 1:05 1 minute, 5 seconds Gupta CEO and Mr. Anna Ravi Chandran CFO and SGA our investor relations advisor. 1:12 1 minute, 12 seconds Since this is our maiden earnings call with the investor community I would like to begin with a brief introduction of the company and share the transformation 1:20 1 minute, 20 seconds journey that Tenfac has undergone over the last few years. 1:25 1 minute, 25 seconds Tensac Industries is a joint venture between Anubam Rasan and Tamil Nadu Industrial Development Corporation Tore. 1:32 1 minute, 32 seconds We are one of the India's wellestablished fluochemical manufacturers with more than four decades of expertise in handling hydrochloric acid and florine chemistries. 1:41 1 minute, 41 seconds Our integrated manufacturing facility is located at Kadur, Tamil Nadu which is about 200 kilometers south of Chennai and 30 kilometers from Pondisherry. The 1:50 1 minute, 50 seconds facility spread across around 60 acres currently has a total installed production capacity of approximately 135,000 metric ton perm. 2:00 2 minutes Over the years, Tensac has built a well integrated purochemical manufacturing platform with strong backward integration resulting in improved 2:09 2 minutes, 9 seconds efficiency, reliability and competitive cost advantages. 2:14 2 minutes, 14 seconds Today we are amongst the leading domestic manufacturers of hydrochloric acid and importantly we are also the 2:21 2 minutes, 21 seconds first and only manufacturer of solar grade DHF in India positioning us strongly in high growth sectors such as a solar photovoltics and semiconductors. 2:32 2 minutes, 32 seconds One of our biggest strengths is our proven execution capability. Over the last few years, we have consistently demonstrated our ability to execute 2:40 2 minutes, 40 seconds projects within aggressive timeline and at highly competitive capital costs. Our recent HF expansion is a strong example 2:48 2 minutes, 48 seconds of this capability where the project was commissioned successfully within the plant timeline and at a significantly competitive cost compared to industry benchmarks. 2:58 2 minutes, 58 seconds Another important uh strength of tens is the strong support from our promoters. 3:02 3 minutes, 2 seconds While Anom brings deep technical expertise, global customer access and speciality chemistry capabilities, Tilco brings institutional strength and 3:11 3 minutes, 11 seconds stability backed by a long-standing association with the company. With Tanfrack has a long operating history post acquisition by Anupam uh in March 3:20 3 minutes, 20 seconds 2022. The last four years have been particularly transformative for the company. This partnership has provided 3:27 3 minutes, 27 seconds significant strategic advantages including strengthen management capabilities, improved product synergies, market reach, enhanced 3:35 3 minutes, 35 seconds technical expertise and stronger operational execution. 3:40 3 minutes, 40 seconds This collaboration has enabled us to introduce new florine based products, strengthen our downstream chemistry capabilities, improve operational 3:47 3 minutes, 47 seconds efficiencies and accelerate our growth trajectory. 3:51 3 minutes, 51 seconds Since then our journey has evolved from a phase of stabilization and operational improvement to one focused on capacity 3:58 3 minutes, 58 seconds expansion, forward integrations and value added product development. 4:03 4 minutes, 3 seconds This transformation is clearly reflected in both our operational and financial performance. Our revenue from operation 4:10 4 minutes, 10 seconds has grown nearly five times from around rupees 148 crores in FY21 to rupees 711 crores in FY26 4:19 4 minutes, 19 seconds reflecting a strong C of around 37% over the last five years. We also achieved our highest ever production volumes and capacity utilization levels in a year. 4:30 4 minutes, 30 seconds Over the past three years, we have undertaken several strategic growth initiatives to strengthen our position in the fluochemicals value chain. In 4:39 4 minutes, 39 seconds October 2024, we successfully doubled our hydrofuloric acid capacity from 15,000 metric ton perom to approximately 4:47 4 minutes, 47 seconds 30,000 metric ton perom with a total investment of around 100 crores which is the lowest per ton investment in the industry. The project was commissioned 4:56 4 minutes, 56 seconds within the plan timeline and was a vertical startup reflecting our strong project execution capabilities. 5:02 5 minutes, 2 seconds In addition, FY26 marked another important milestone with the successful commissioning of both phases of our 5:09 5 minutes, 9 seconds solar grid DHF projects with a total capacity of 20,000 metric ton perm. As I mentioned earlier, we are the first and 5:18 5 minutes, 18 seconds the sole solar grid DHF manufacturer in the country and this position us strongly in high purity applications 5:25 5 minutes, 25 seconds linked to the photoaltic and semiconductor industries. 5:29 5 minutes, 29 seconds Further for this business we have already secured orders with approximately 1,68 crores expected to be executed over the next three and a half 5:38 5 minutes, 38 seconds years. This agreement provide strong visibility for future growth and reinforce customer confidence in our 5:44 5 minutes, 44 seconds capabilities and product quality. We have also invested substantially in debottlenecking existing capacities, improving plant safety and reliability, 5:53 5 minutes, 53 seconds strengthening environmental systems and modernizing our R&D centers towards worldclass standards. Our R&D efforts 6:00 6 minutes are increasingly focused on next generation chlorinated products, specialty fluoropolymers, battery chemical applications, electronic grade 6:08 6 minutes, 8 seconds chemicals and other advanced florine chemistries which we believe will become important growth drivers over the coming years. With that, I would now like to 6:17 6 minutes, 17 seconds hand over the call to our chief executive officer, Mr. Gupta, who will take you through the performance of the company in FY26 and also the expansion plan of the company. Thank you. 6:30 6 minutes, 30 seconds Thank you Mr. Malcani. Good afternoon everyone and thank you for joining us today. For the year Q4 and FY26, 6:39 6 minutes, 39 seconds the company has delivered strong performance across both revenue and profitability. I am pleased to share that we achieved our highest ever 6:48 6 minutes, 48 seconds quarterly and fullear revenue from the operations of rupees 193 crores and rupees 711 crores respectively. 6:57 6 minutes, 57 seconds During the year, we secured three consecutive long-term supply arrangements for florinated products with leading global customers. These 7:05 7 minutes, 5 seconds include contracts aggregating to approximately rupees 36 3612 to 3612 kores over a period of 5 to 7 years 7:14 7 minutes, 14 seconds along with an additional agreement with Bloomstar for an indefinite duration. 7:19 7 minutes, 19 seconds These milestone reinforce our position as a trusted and reliable partner for global customers. Let me now discuss our 7:27 7 minutes, 27 seconds next phase of expansion with the within the florine value chain particularly our entry into refrigent gases which we 7:34 7 minutes, 34 seconds believe will be a key long-term growth driver for the company. 7:38 7 minutes, 38 seconds The global refrigerant industry is currently undergoing a major structural transformation driven by environmental regulations increasing cooling demand 7:47 7 minutes, 47 seconds and the transition toward lower GWP refrigerates. 7:50 7 minutes, 50 seconds In this evolving landscape, HFC32 has emerged as one of the most important next generation refrigerant for residential and light commercial air conditioning applications. 8:01 8 minutes, 1 second The global HFC32 market is estimated at around 380 KT in 2025 and is expected to 8:09 8 minutes, 9 seconds grow to nearly 485 KT by year 2030 reflecting a healthy CGR of approximately 5%. This growth is being 8:18 8 minutes, 18 seconds supported by a combination of strong regulatory tailwinds and rising global cooling demand. From an India perspective, the opportunity remains 8:27 8 minutes, 27 seconds extremely compelling. India's HFC32 demand is currently estimated at around 22 to 23 KT and is expected to nearly 8:36 8 minutes, 36 seconds double to 45 to 50 KT over the next 4 to 5 years. This growth is primarily driven by the strong expansion of the domestic 8:43 8 minutes, 43 seconds room air conditioner market which is expected to grow at approximately 16 to 17% chr. As a part of this strategy, we 8:51 8 minutes, 51 seconds have already announced a capital expenditure plan of approximately rupees 495 crores. This includes 405 crores 8:58 8 minutes, 58 seconds towards HFC 32 and approximately rs 90 crores towards other value added flow related products. This 495 k will be 9:06 9 minutes, 6 seconds used towards setting up a 20,000 metric tons peranom downstream florinated products manufacturing facility at our 9:13 9 minutes, 13 seconds existing kadaloo site. The project is progressing well and remains on track for the commissioning by Q3 in the year FY27. 9:22 9 minutes, 22 seconds What gives us even greater confidence is that a substantial portion of this upcoming capacity is already supported by long-term customer contracts. 9:31 9 minutes, 31 seconds Collectively these contracts account for nearly 65% of the proposed capacity providing strong demand visibility even before the commissioning of the plant. 9:41 9 minutes, 41 seconds We believe our competitive advantage in this segment comes from multiple structural strengths including assured in-house availability of hydrofluoric 9:49 9 minutes, 49 seconds acid, strong backward integration, long-term customer relationships, operational expertise in florine chemistry, integrated infrastructure and proven project execution capabilities. 10:01 10 minutes, 1 second Beyond the currently announced expansions, we continue to actively build a broader pipeline of high margin florine based products and technologies. 10:10 10 minutes, 10 seconds Looking ahead, our strategy includes further strengthening our solar grade DHF position through an additional plant capacity of 20,000 tons uh metric tons 10:19 10 minutes, 19 seconds peranom. We also aim to further strengthen our backward integration capabilities through the expansion of HF and sulfuric acid capacities to support 10:26 10 minutes, 26 seconds our HFC32 production. In addition, we are actively focusing on electronic grade chemicals, battery material applications, high performance 10:35 10 minutes, 35 seconds fluoropolymers, specialty fluorochemicals in organic fluorides and other advanced florinated chemistries to cater to emerging high growth and high 10:43 10 minutes, 43 seconds profitable sectors. At the same times, we continue to strengthen our sourcing ecosystem and supply chain resilience for critical raw materials such as 10:52 10 minutes, 52 seconds postpartium carbonate through diversification of suppliers across multiple geographies. 10:59 10 minutes, 59 seconds We believe this approach will help us ensure long-term supply security and support scalability of our downstream 11:06 11 minutes, 6 seconds fluochemical operations. Going forward, our focus remains on expanding our high performance neurochemicals portfolio, 11:13 11 minutes, 13 seconds strengthening backward integration capabilities, and enhancing our R&D efforts, executing our plant capex initiatives, 11:22 11 minutes, 22 seconds improving operational efficiencies and reliability. 11:25 11 minutes, 25 seconds We believe these strategic initiatives will further strengthen Tantra's market position and support sustainable long-term growth in revenue and profitability. 11:35 11 minutes, 35 seconds Despite the evolving geopolitical environment, particularly in the western Asian region, we remain confident about the overall business outlook supported 11:43 11 minutes, 43 seconds by our strong order visibility across key product segments, ramp up in solar grid, DHF revenues, long-term supply arrangements with global customers and 11:52 11 minutes, 52 seconds downstream expansion projects currently under implementation. Before I conclude, I would now like to hand over the call 11:59 11 minutes, 59 seconds to our chief financial officer, Mr. Ravi who will take you through the operational and financial performance of the company for Q4 and FYI 26 in greater 12:06 12 minutes, 6 seconds detail. Following that we'll be happy to take your questions. Thank you. 12:13 12 minutes, 13 seconds Thank you Mr. Gupta and good afternoon everyone. Let me take you through financial performance and key operational development that took place during Q4 and FI26. 12:24 12 minutes, 24 seconds I'm pleased to share that our company has achieved highest ever quarterly and full year revenue from operations of 12:31 12 minutes, 31 seconds rupees 193 crores and 711 crores respectively driven by improved realization and volume growth. Our 12:39 12 minutes, 39 seconds revenue from operations had grown up by 27% year on year from 57 crores in FI25 12:46 12 minutes, 46 seconds to 71 crores in FI26. Quarter on quarter our revenue from operations had grown up 12:52 12 minutes, 52 seconds by 11% from 173 crores in Q3 to 180 crores in Q4 of FI26. 12:59 12 minutes, 59 seconds Our operating AITA had decreased by 17 crores year on year from 129 crores in FI25 to 112 crores in FI26. In 13:09 13 minutes, 9 seconds percentage terms, our operation is 16% of the revenue when compared to 23% in FI25. 13:16 13 minutes, 16 seconds FI25 was an exceptional year in terms of margins and realizations. Despite normalization in margins during FI26, we 13:25 13 minutes, 25 seconds continue to maintain healthy profitability levels while simultaneously investing for future growth. 13:32 13 minutes, 32 seconds Going forward, we expect operating emitter models to remain rent around 15 to 18% from existing line of business. 13:41 13 minutes, 41 seconds Our profit after tax decreased by 18 crores from 8 crores in FI25 to 70 crores in FI26. In percentage terms, our 13:51 13 minutes, 51 seconds PAT is 10% of the revenue when compared to 16% in FI25. PAT remains due to lower 13:58 13 minutes, 58 seconds operating profit and higher depreciation arising from recent capex. 14:04 14 minutes, 4 seconds Operationally, our plant continued to perform well during the year. The sulfuric acid plant operated at 101% 14:12 14 minutes, 12 seconds capacity utilization while the hydrofluoric plant operated at around 95% utilization levels reflecting strong 14:20 14 minutes, 20 seconds demand and efficient operations. In the specialty fluid segments utilization stood at around 41% and we expect 14:28 14 minutes, 28 seconds utilization levels in this segment to improve progressively as demand for valuated products scale up over the 14:35 14 minutes, 35 seconds coming quarters. I would like to highlight that we improved our working capital cycle by 8 days to 91 days in 14:45 14 minutes, 45 seconds FI26 reflecting our continued emphasis on operational efficiency and disciplined working capital management. 14:53 14 minutes, 53 seconds Our balance sheet and return ratios continue to remain healthy with return on equity at 19% and return on capital employed at 20%. 15:04 15 minutes, 4 seconds Overall, the company delivered record revenues, maintained healthy return ratios, improved operation efficiencies, 15:12 15 minutes, 12 seconds and significantly strengthened its long-term growth pipeline. With long-term customer contracts already in 15:19 15 minutes, 19 seconds place, ramp up of solar DHF revenues and commission of new downstream capacities over the next few quarters, we remain 15:27 15 minutes, 27 seconds confident about the medium to long-term growth outlook of the company. With this we would now like to open the floor for question and answer. Thank you. 15:40 15 minutes, 40 seconds Thank you very much sir. Ladies and gentlemen, we will now begin with a question and answer session. Anyone who wishes to ask a question may enter star 15:48 15 minutes, 48 seconds and one on the touchstone telephones. If you wish to remove yourself from the question queue, you may enter star and two. Participants are requested to use only handsets while asking a question. 16:00 16 minutes In order to address questions from all the participants, please restrict your questions to only two questions per participant. You may then return to the question queue for follow-ups. 16:10 16 minutes, 10 seconds Participants, we'll wait for a moment while the queue assembles. 16:16 16 minutes, 16 seconds The first question is from the line of H Sha from MK Global. Please go ahead. 16:22 16 minutes, 22 seconds Thank you sir for the opportunity. I have a couple of questions. Uh so the first question is what was the segment wise capacity utilization for FI26 and 16:31 16 minutes, 31 seconds where do we see the growth coming from in next 2 to three years 16:39 16 minutes, 39 seconds yeah as mentioned in my speech see our sulfuric acid plant has the capacity of 16:47 16 minutes, 47 seconds sulfuric acid plant is 101% and HF plant is 95%. 16:54 16 minutes, 54 seconds And going forward we will be able to fully increase the capacity demand and grow and inh addition to that 17:03 17 minutes, 3 seconds what Mr. Rabi has mentioned that the growth will come from the other inorganic fluid chemicals as well. 17:14 17 minutes, 14 seconds Okay. Thank you. And the final question from my side is that what is the status of Kota for R32 and for for which we are doing KEX. 17:24 17 minutes, 24 seconds The Kota H will be decided in 2027 and it rest the government. So but the uh 17:32 17 minutes, 32 seconds you know it will be decided in 27 but we have got a clean EC to manufacture this. 17:37 17 minutes, 37 seconds So we are going ahead and if you want the details on Kota I think uh I I can give it to you. You want details? 17:47 17 minutes, 47 seconds Yes sir. 17:49 17 minutes, 49 seconds See the whole Kota is arising out of an international agreement among various countries and this is the Kota which will be decided at the national level as 17:57 17 minutes, 57 seconds indicated by the government in its latest office memorandum of 1 Fate 2026 which will be that uh memorandum. So 18:05 18 minutes, 5 seconds India's HFC kota which we estimate will be in the range of 115 to 125 KT peranom kind of thing and uh approximately this 18:13 18 minutes, 13 seconds kota will be available with the government of India out of which the existing install capacity is around 50,000 tons and as per the office 18:21 18 minutes, 21 seconds memorandum uh of 1 April 2026 the government of India has decided uh they have informed that they will be 18:29 18 minutes, 29 seconds proportionately issuing the kota in calendar year of 2027 7 based on the production capacity. This is very 18:37 18 minutes, 37 seconds clearly written in that office memorandum. A will be applicable from January 2028 1st January 2028 onwards 18:44 18 minutes, 44 seconds and the next calendar year 2027 would be for free year for production and supply of HFC32. 18:51 18 minutes, 51 seconds We have also received the environment clearance and consent to establish the plant. You all know this. Also if you see the latest of this memorandum of 1st 18:58 18 minutes, 58 seconds April 2026 as issued by the government of India in the last month it speaks about the same thing. So as for the memorandum in which the clause number 19:06 19 minutes, 6 seconds three is clearly mentioning and implementation of an appropriate framework permitting HFC production after taking into account the production 19:15 19 minutes, 15 seconds it is capacity of the operational units as 112028 as per the HFC space down schedule of 19:22 19 minutes, 22 seconds the MRI protocol. This is I am quoting from the office memorandum this slide. 19:27 19 minutes, 27 seconds So in the clause you know it is a self-explanatory clause and you can understand the meaning of easily you know the production capacity of the 19:35 19 minutes, 35 seconds operational units. We would not like to comment anymore on this. Also the clause number six you know part two says that 19:42 19 minutes, 42 seconds any additional HSC production capacity already granted EC for controlled application shall not be allowed to commence production beyond 31st December 2027. 19:53 19 minutes, 53 seconds In line with the freeze obligations under the Kali agreement, we believe that the government is encouraging new players and manufacturers to ensure that 20:01 20 minutes, 1 second the domestic market is served with the products domestically produced bharat in the spirit of making India and which can 20:09 20 minutes, 9 seconds be you know uh also you can extrapolate uh you know the Chinese if you see in 2003 their AC penetration was very less 20:17 20 minutes, 17 seconds about 6 and a half%. which is now almost 65% air conditioning penetration in China and India today stands at about 8% 20:25 20 minutes, 25 seconds air conditioning penetration. So you can see the growth which is expected to come in the air conditioning sector for which all the refrigerant gases will be an 20:34 20 minutes, 34 seconds important and critical uh you know part of it. So the demand is going to grow almost to four five six folds and India 20:41 20 minutes, 41 seconds also has to decide where the gas will come from. They want don't want to depend on the other countries as other countries also have a limited production. So we have to make ourselves 20:50 20 minutes, 50 seconds a bar and make in India kind of initiatives. So we are working towards that and that is why this HFC 32 plan we 20:56 20 minutes, 56 seconds have we are planning to commission by Q3 of 27. 21:02 21 minutes, 2 seconds Okay sir. This is very clear. Thank you for this and that's it all from my sir. Thank you. Thank you. Thanks. 21:09 21 minutes, 9 seconds The next question is from the line of Rohit Nagraj from 361 Capital. Please go ahead. 21:16 21 minutes, 16 seconds uh thanks for the opportunity and good to know that you're doing a sizable capeex. So again a little bit delving on the R32 capacity. So you've talked about 21:25 21 minutes, 25 seconds the quotas you've talked about approximately HFC kota of about 110 120,000 uh given that uh the incumbents 21:35 21 minutes, 35 seconds are trying to reach that particular mark uh how are we confident that our capacity will also be uh given certain 21:43 21 minutes, 43 seconds kota and at what percentage level of operations will we be breaking even if we say that our capacities will be 21:51 21 minutes, 51 seconds available till say 2037 And just two a light questions to this uh in terms of uh both uh flu power and 22:00 22 minutes sulfur sourcing uh how are we placed given that we need to backward integrate the entire facility and also you mentioned that 65% customer commitments. 22:11 22 minutes, 11 seconds Are these from the domestic markets or from the exports market? And does it signify that 65% of 20,000 capacity 22:19 22 minutes, 19 seconds means 13,000 capacity is already being you know probably taken by the customers in terms of some commitment. Thank you. 22:27 22 minutes, 27 seconds Okay. So three questions you have asked. 22:31 22 minutes, 31 seconds The first is about the kota that the internal people are going to towards that. The second is about the prosper and the sulfur sourcing for the new 22:38 22 minutes, 38 seconds project right how we are integrated. The third is the contracts which we have right these are the three questions. Am I right? So the first question I've 22:46 22 minutes, 46 seconds already explained when harsh asked I have detailed the office memorandum I have quoted you know the office memorandum clearly states this and 22:54 22 minutes, 54 seconds implementation of I'm quoting like clause number three implementation of an appropriate framework permitting HSC 23:02 23 minutes, 2 seconds production after taking into account the production capacity of the operational units as on 1 2028 as per the HSC phase down schedule of the multi protocol. 23:15 23 minutes, 15 seconds Correct. So I don't want to uh har more on this. You it is more of more of it is self-explanatory. You guys can 23:23 23 minutes, 23 seconds understand this. Uh I think you all have access to this uh office memorandum. It is a public document of 1 April 2026. So 23:31 23 minutes, 31 seconds please go through it and I don't want to detail and I'd like to leave it to the government. Right? So that is answer to the question number one. Number two we 23:39 23 minutes, 39 seconds are tied up for flowar for and we generally have annual contracts for flowspark. So floor availability is not an issue. Flow spar if you see calculate the world's flow per mines and the 23:48 23 minutes, 48 seconds availability it is available for next 90 to 100 years. So that is not an issue. 23:53 23 minutes, 53 seconds Sulfur due to west Asian crisis it has been grow the price is going up but the availability is there. So we are getting sulfur but the prices have gone up. So 24:01 24 minutes, 1 second but we are tied up for it and for donkeys numbers of years we have been sourcing slowb bar for our production of hydro uh sulfuric acid plants. So sulfur 24:10 24 minutes, 10 seconds is not an issue. And the third uh thing will be we'll be putting up a new we have plans to put up a new 30,000 tons 24:17 24 minutes, 17 seconds of AHS for this R32 upcoming R32 because HF applications are also right we are also working on few other downstream 24:24 24 minutes, 24 seconds products our current HF customers are also there which we don't want to starve and lose that market and then 32 demand is also there for HF will be required 24:33 24 minutes, 33 seconds for captive use for HMC 32 so that will also be there so we we have plans to secure that whole thing so that answers your 24:41 24 minutes, 41 seconds The third is out of this 20,000 tons 13,500 tons we have tied up with contracts. So broad level if you ask me 24:50 24 minutes, 50 seconds about uh 70% 75% is exports 70 75 to 80% is exports 15 to 20% will be domestic. 25:02 25 minutes, 2 seconds Got that sir for answering. Yes. Thank you. Thank you. 25:07 25 minutes, 7 seconds Yes sir. Second question uh in terms of the uh revenues you have already asked three questions. 25:14 25 minutes, 14 seconds Uh sure I'll come back in the queue. No worries. 25:16 25 minutes, 16 seconds Yeah no no no please please ask please sir. I was just joking. 25:21 25 minutes, 21 seconds Yeah. So how much revenues did we get from our parent Anupam in FI26 25:28 25 minutes, 28 seconds and how does the pricing for the same works? Is it a trans? I'll ask Mr. Malcani to answer this. 25:36 25 minutes, 36 seconds Yeah, it is in 2526 it was around 9 cr bill. So it is 1.2%. It is 1.2% of the 25:43 25 minutes, 43 seconds total revenue and it is at the armsen price only. 25:48 25 minutes, 48 seconds Sure. Uh just a light question to that I was coming to is u in terms of our future products or segments. Uh would 25:56 25 minutes, 56 seconds there be any overlap between our parent and us or would there be clear distinction that there will be certain segments where we only will be operating 26:04 26 minutes, 4 seconds and there will be certain segments where see uh it is very clear we are very we have made complete distinction on the product list on the flooring downstream 26:12 26 minutes, 12 seconds and other things. So there's a complete uh you know distinction what they will do and what we will do. So there's no overlap nothing. 26:20 26 minutes, 20 seconds Perfect sir. Uh thanks a lot. I'll come back in the queue. All the best. Thank you. Thanks for your question. Thanks. 26:26 26 minutes, 26 seconds Thank you participants. If you have any questions, you may enter star and one on your handsets. The next question is from the line of Shat Dutkar from Aquarius. 26:36 26 minutes, 36 seconds Please go ahead. 26:38 26 minutes, 38 seconds Hi. So good afternoon. Uh so the first question is on the AHF. We mentioned that we'll be setting up another 30,000 tons of AHF capacity. So that is 26:47 26 minutes, 47 seconds included in the 495 kit. So that will be over the number of years. No sir that is not included. In fact we are going to announce it in next uh few months that 26:56 26 minutes, 56 seconds 30,000 tons of capacity because first time this company is doing such a big project you know uh KPEX of 495 KES. So 27:04 27 minutes, 4 seconds we want to streamline that first and meanwhile once we see that insider and we'll announce in two three months we'll announce that's our plan. 27:12 27 minutes, 12 seconds Uh so secondly can you just comment on the domestic HF demand supply given that even our peers have commissioned large 27:20 27 minutes, 20 seconds capacities. How do we see the merchant market and what is the merchant demand of HF today and how do we see that growing ahead? 27:28 27 minutes, 28 seconds The merchant demand is divided into three segments. One is the steel and the glass segment which is which goes for surface treatment. The other is for 27:37 27 minutes, 37 seconds specialty products which goes into florination and hochemicals and other sectors. The third is the solar grade segment. So if you combine all of these 27:46 27 minutes, 46 seconds the total market as of today uh in terms of uh AHF I'll tell you because there are various concentrations of HF which 27:54 27 minutes, 54 seconds goes into this. So about uh 24 25 KT is the demand for uh uh about 15 KT in AHF 28:02 28 minutes, 2 seconds terms will be demand for AHF for solar grade about 15 to 18 KT for surface treatment and similarly about 10 KT 28:11 28 minutes, 11 seconds maybe for the other uh uh this uh uh you know specialy products which uh uh for agro pharma and other applications. So 28:20 28 minutes, 20 seconds broad level if you see the total will be around 40 KT or AHF demand in the Indian market as of now out of which solar is 28:28 28 minutes, 28 seconds growing at a tremendous pace. Steel is growing at a 5 6% growth and the permanent agro are again at 6 7% growth 28:36 28 minutes, 36 seconds but the solar is growing at a tremendous it is going to you know uh eight times in next 5 years that is the six six to 28:44 28 minutes, 44 seconds eight times. Yeah, because today the solar capacity is about 36 gawatt and which is expected to go to around uh 200 28:53 28 minutes, 53 seconds uh two about 200 gawatt 216 gaw that's the plan in next 5 years for the solar player so you can see the demand going 29:01 29 minutes, 1 second up almost you know almost 78 times in terms of realization what is the difference between solar grid and the 29:09 29 minutes, 9 seconds normal AHA and in margin solar gives us about 15 to 20 rupees per kg extra realization than the normal merchant grade industrial grade of HF. 29:21 29 minutes, 21 seconds Okay. Uh got to the cost cost about 3 to four rupees or 5 rupees 29:28 29 minutes, 28 seconds maximum would be the uh cost for making uh from industrial gate to solar gate. 29:34 29 minutes, 34 seconds So our uh you know the margins improve by around 10 to 15 rupees per kg in case of solar. 29:41 29 minutes, 41 seconds Okay. Uh so on chloromthanes how are we looking at sourcing chloromthanes? Uh will it be from our neighbor chemlast or 29:48 29 minutes, 48 seconds we are looking at alternative sources also? 29:51 29 minutes, 51 seconds Templast uh I don't know how much capacity but uh there is a production in India at the level of almost 425 or 29:58 29 minutes, 58 seconds 430,000 tons of methyline dchloride MDC in chloromains and the demand today stands at about 310 to 320,000 metric 30:08 30 minutes, 8 seconds tons. So that leaves about 100 100,000 tons of over supply in domestic market from the production plus imports are 30:15 30 minutes, 15 seconds also available from China, Europe, both the places. So I don't think there'll be any challenge in metal in that unit. 30:23 30 minutes, 23 seconds Just one last question on the turn to the question Q sir Mr. 30:29 30 minutes, 29 seconds Thank you so much. The next question is from the line of Akash Dada from Invest Capital Services. Please go ahead. 30:37 30 minutes, 37 seconds Yeah, thank you for the opportunity. Uh, so my first question is uh why did the gross margins decline in FY26 versus FY25? 30:48 30 minutes, 48 seconds In FY25, we had a very good Q unusual Q where the realizations were 30:56 30 minutes, 56 seconds also cost was also less. So we had a very good we have reported 31:02 31 minutes, 2 seconds 30 crores profit in three itself. Okay, a very good critic that is the reason but apart from that the prices of sulfur 31:12 31 minutes, 12 seconds has increased in FI36 used to be around 35 kg in FI25 increased up to 38 to 40 31:22 31 minutes, 22 seconds kg and average consumption rate I'm saying and which is also further increased during this quarter 31:31 31 minutes, 31 seconds okay that is so that is margin gross margin and net income margin has come down. 31:39 31 minutes, 39 seconds Yeah. So this is these are the main reasons and in addition to that if I want to add in that then in Q4 there was 31:46 31 minutes, 46 seconds also this MM loss of around two and a half to three cr due to the depreciation of rupees against the USC on 31st March 26. 31:53 31 minutes, 53 seconds Okay. And in addition to that during 25 26 we lost the production of around 70 K of HF due to unplanned maintenance and 32:01 32 minutes, 1 second bottleneck due to distriation column in our old HF1 plant but now this plant is operational at 100% capacity. So we'll 32:09 32 minutes, 9 seconds get more production compared to last year's and additionally the depreciation was also higher by rupees 7 crores due to setting up of the solar gra during 32:17 32 minutes, 17 seconds the 2526. So these are the four to five reasons which led to reduce in the uh profitability compared to FI24 to 202425. 32:28 32 minutes, 28 seconds Got it. Got it. And so uh given the impact of Middle East war uh on the raw material prices, could you provide an update on extent of increase in the raw 32:37 32 minutes, 37 seconds material prices? Additionally, how much margin compression are we factoring in due to this? And to what extent uh are 32:45 32 minutes, 45 seconds these cost increases increases being passed on to the customers? 32:51 32 minutes, 51 seconds See uh margin remains probably in the same range. Uh uh uh what a such the margin remains probably in the same 32:58 32 minutes, 58 seconds range that we have been able to pass the cost increases to customers not at one time but in phase man. So ultimately you 33:06 33 minutes, 6 seconds know uh with the lag there's a lag in increasing the prices and a lag in decreasing the prices. So ultimately it remains the same. So margin probably we 33:13 33 minutes, 13 seconds are expecting to remain same percentage margin this year also but with the last quarter of getting 32 uh revenue I think the margins may increase by 3 4%. 33:25 33 minutes, 25 seconds Okay, got it. And uh one last question. 33:28 33 minutes, 28 seconds Uh what is the solar grade DHF growth outlook over next 3 to 5 years? And uh why only Tanfac is the manufacturer in 33:37 33 minutes, 37 seconds India? Like no other player is uh coming in this uh segment. Just want to understand the market outlook on this. 33:45 33 minutes, 45 seconds First answer, first question your first question was what is the growth outlook for next five years? So I explained as as an earlier participant he asked this 33:54 33 minutes, 54 seconds question. So today the capacities are 35 36 gawatt which are expected to go to 216 gawatt in next 5 years which gives 34:02 34 minutes, 2 seconds us a multiple of seven times. So today the market stands at around 24 KT 24 to 25 KT in DH of tons which is going to go 34:11 34 minutes, 11 seconds up to almost 150 KT in next 5 years. So you can see it is multiple of almost six and a half seven times which is 34:20 34 minutes, 20 seconds expected. Now so second question is why only tant track is doing there. See the in merchant grade uh the industrial 34:28 34 minutes, 28 seconds grade there is lot there are lot of impurities. Now this solar is is used to etch the solar vapors right to generate electron collection in the chip to 34:37 34 minutes, 37 seconds maximize the efficiency. So maximize efficiency. So if there are minimal metal impurities then the efficiencies will be better. So now the uh 34:45 34 minutes, 45 seconds requirement by the solar photo voltage these companies are below all impurity is below 10 ppb parts per billion. So 34:53 34 minutes, 53 seconds which is not easy to achieve. There's a technology involved. There are a lot of you know closed loops and other things are involved. So it is as good as a USDA 35:02 35 minutes, 2 seconds plan something like CGFP procedure and there is a capeex involved you know 50 to 70 K rupees you have to invest to get 35:09 35 minutes, 9 seconds this technology done right. So uh there are whole lot of and there's a learning experience involved. So we have been trying this for last 2 years and finally 35:17 35 minutes, 17 seconds we were able to achieve this last year only in last calendar year and that's how we have been able to achieve the quality of 10 ppb for all uh less than 35:24 35 minutes, 24 seconds 10 ppb impurities and that is why today tanfac is the only uh manufacturer who is doing this. Yeah. 35:32 35 minutes, 32 seconds Got it. Got it. Uh thank you for the opportunity. Yeah I will join back the queue. Thank you. Thank you. 35:38 35 minutes, 38 seconds Participants with questions may enter star and one on the handsets. The next question is from the line of Rohit Nagaraj from 361 capital. Please go ahead. 35:49 35 minutes, 49 seconds Uh thanks for the followup. Uh so first question uh on the R32 what could be the probable cost of 35:57 35 minutes, 57 seconds production uh including the operating expenses? 36:02 36 minutes, 2 seconds uh see uh difficult but I'll give you just an approximate figure uh in it will be 36:09 36 minutes, 9 seconds between 240 to say 280 range per kg right right got that uh and second 36:17 36 minutes, 17 seconds question in terms of kex so we have indicated about 500 cr of kex which will be for f27 36:26 36 minutes, 26 seconds what is the plan beyond this and uh given that we have those 3,000 plus cres of long-term contracts. Uh how are we likely to go ahead with capex? 36:36 36 minutes, 36 seconds Will there be any material debt which we need to get or probably some kind of a QIP that we are looking at? 36:44 36 minutes, 44 seconds See this uh uh project we are going ahead uh R32 and uh we have some bigger 36:51 36 minutes, 51 seconds projects lined up and the uh you know the products are ready in our labs and uh we have to just send it to customers for approval sake. So we have a 37:00 37 minutes long-term plan of going into high performance fluoropolymers, high performance floral chemicals also. There are inorganic fluorides also. There are so many products, battery chemicals 37:08 37 minutes, 8 seconds also, electronic uh chemicals also. So these are the four segments where we are going ahead in future. So there are 37:15 37 minutes, 15 seconds products which we are working on. So depending on the you know our internal acruals and our financial uh you know uh 37:23 37 minutes, 23 seconds placement at that time we will see how much debt we have to take or we go for another fund raise or something. So I 37:30 37 minutes, 30 seconds can't comment today on that for the future. Sure. Uh thanks a lot sir. All the best. 37:38 37 minutes, 38 seconds Thank you. The next question is from the line of Ano Hara from Interglobe Services. Please go ahead. 37:45 37 minutes, 45 seconds Uh hi thank you for the opportunity. My question is around the solar grade DHF. 37:49 37 minutes, 49 seconds We've won orders approximately,50 crores and we have a capacity of 20,000 metric tons peranom at present. So does 37:57 37 minutes, 57 seconds do these orders book out our complete capacity for the next 3 years or how or do we have additional capacity available for the time base? 38:05 38 minutes, 5 seconds Yeah, this are till FY 29 next three and a half years and it books out of 20,000 capacity it moves around 85% of capacity of the year every year. 38:17 38 minutes, 17 seconds Okay. Okay. Thank you. And and in the presentation it was mentioned that we plan to set up additional 20,000 metric tons of solars at DHS. So when do when do you think the plant will go live? 38:29 38 minutes, 29 seconds Yeah. So if you see for we for HF for before that we need to go for the HF plant that we may announce after two three months and we may just for we can 38:38 38 minutes, 38 seconds start after four months. So simultaneously we will go for this solar grid also. So within uh 11 to 12 months the HF and your solar grid plan not to 38:46 38 minutes, 46 seconds come together. So we can consider June 27. 38:51 38 minutes, 51 seconds Understood. And and you mentioned earlier basically for the R32 capacity we've already sold out approximately 70% 38:58 38 minutes, 58 seconds of our capacity. I couldn't get the number uh earlier. 39:02 39 minutes, 2 seconds Yeah, 65% we are booked today and there are some people we are trying to block another 15 to 20% more. So most likely 39:10 39 minutes, 10 seconds another 805% will be completely sold off before the plan comes online. Um understood and and could you just uh 39:18 39 minutes, 18 seconds could you just give me a brief color like you mentioned basically the price increase and decrease is passed on passed on in a gradual manner and 39:25 39 minutes, 25 seconds currently also the price raw monthly price are continuously increasing. So um so at present what percentage of the cost through are we able to pass on to 39:34 39 minutes, 34 seconds the consumer let's say compared to 6 months ago because the sulfur and floor spa prices have been increasing for the 39:40 39 minutes, 40 seconds last 6 to9 months. So compared to that what what stage have we researched in pass through of prices? 39:48 39 minutes, 48 seconds Oh definitely yeah as though there is a significant increase in close per and uh not close per sulfur and close and close 39:55 39 minutes, 55 seconds par logistic cost we have been able to pass on but definitely there is a leg of around 30 to 40 days. So that's only we 40:04 40 minutes, 4 seconds are running on that otherwise we are able to pass on 100% to our customers. 40:11 40 minutes, 11 seconds It comes with a lag. So increasing also has a lag and decreasing also has a lag. So ultimately it balances out. Correct. 40:18 40 minutes, 18 seconds Yeah. This is a 30 to 45 day. That's this is what I wanted to know. So it is in phase manner. Certainly you cannot increase at one time because you are 40:25 40 minutes, 25 seconds contracted with customers and all these things here. 40:27 40 minutes, 27 seconds Correct. And and and this will be applicable for all the R32 orders also that we have signed that will start from January next year. 40:35 40 minutes, 35 seconds Yeah. Those are formula based contracts. So absolutely no issues. Okay. Okay. Thank you. Thank you. All from my end. 40:44 40 minutes, 44 seconds Thank you. The next question is from the line of meet Ga. Please go ahead. 40:50 40 minutes, 50 seconds Hi. Thank you so much sir for the informal questions. Uh I wanted to check uh like what would be the payback period 40:58 40 minutes, 58 seconds and the potential returns from the proposed HFC project. uh see payback period for the proposed HFC 41:08 41 minutes, 8 seconds project we expect it will be less than four years that's given the current scenario and current 41:16 41 minutes, 16 seconds high demand for the product and good railway station we expect payback will be less than four years 41:25 41 minutes, 25 seconds okay and for the planned capex how are you planning to raise funds uh over here in this case 41:32 41 minutes, 32 seconds So for that particularly for this total capex uh 405 cr rupes is for the R32. So 41:39 41 minutes, 39 seconds we are planning to raise around 400 crores out of which 100 cr rupes will be from the promoters as a by way of the 41:47 41 minutes, 47 seconds pre preferential allotment and remaining 300 cr rupes by way of qip and term debt. 41:55 41 minutes, 55 seconds Got it sir. Thank you so much. That's it from my side. 42:00 42 minutes Thank you. to ask a question you may enter star and one we have the next question from the line of sedat katkar 42:08 42 minutes, 8 seconds from aquirus please go ahead uh hi s so there's one question on these kotaas so with in our discussion could 42:17 42 minutes, 17 seconds you make us understand that the kas will be given driven by gas wise kotaas or will it be on a HFC which is converted 42:26 42 minutes, 26 seconds to GWP basis kota she's US has gone on the GWP based quotas, CO2 42:34 42 minutes, 34 seconds based and China is on product based kota. So looking at our parallels drawing more 42:41 42 minutes, 41 seconds with China, you know, government should go with the Chinese concept but I'm not sure. It lies with the government. I 42:48 42 minutes, 48 seconds can't comment more on that. It lies with the government. Yeah. 42:53 42 minutes, 53 seconds So secondly, on our R32 contracts, uh you just mentioned that these are formula based. So what would be the 43:00 43 minutes profit margin that we have assumed in in these formulas for the contracts? 43:05 43 minutes, 5 seconds Uh difficult to comment on this uh this confidential as of now. 43:09 43 minutes, 9 seconds Yeah. Uh but there's a decent sign significantly good margins. I I I just want to say that significantly good margins. I can't give a number. 43:20 43 minutes, 20 seconds Okay. Thank you. 43:21 43 minutes, 21 seconds So payback is coming less than four years you know as the CFO has indicated. 43:25 43 minutes, 25 seconds So you can understand the margins you know kind of. 43:29 43 minutes, 29 seconds Okay, thank you participants. If you have any questions at this time, you may enter 43:37 43 minutes, 37 seconds star followed by one. Our next question is from the line of Nitesh Dud from Anandrati. Please go ahead. 43:44 43 minutes, 44 seconds Uh thank you team uh for the opportunity. Uh my question is uh is you know on the R32 contracts that we have 43:52 43 minutes, 52 seconds signed. So they're actually contingent on securing the production kota and not securing the EC. Right? So the question 43:59 43 minutes, 59 seconds is whether these agreements are actually legally valid as of now. Uh and I wanted to check you know what is the what is this complete my question. 44:11 44 minutes, 11 seconds Yeah. 44:11 44 minutes, 11 seconds Uh so just wanted to check uh you know what is the penalty exposure if the supplies can't be delivered. So if uh you know if say Tanac misses the 44:19 44 minutes, 19 seconds contracted supply timelines due to uh kota nonallocation or for any other reason uh what are the you know what are 44:26 44 minutes, 26 seconds the damages or the penalty obligations across you know across these agreements and uh you know have these have these 44:34 44 minutes, 34 seconds been quantified and disclosed as you know as a contingent liability there. 44:39 44 minutes, 39 seconds See these contracts are in good intentions with good intentions. So there's no penalty clause due to this or anything. The only once we start the 44:48 44 minutes, 48 seconds production and then the quantity clauses start if we are not able to supply from my production or they are not able to buy vice versa also is sue right that if 44:57 44 minutes, 57 seconds they are also not able to buy the contracted quantity they will also be get penalized so it is a vice versa and equivalent 45:03 45 minutes, 3 seconds mutual contract uh so no just to clarify I mean whether these have penal contracts on both side 45:12 45 minutes, 12 seconds that is if you're not able to supply whether you'll be penalized and if you can quantify. 45:16 45 minutes, 16 seconds No, see there are you asked two things we are not able to supply because of Kota. So that that penalty is not there in the clause. 45:26 45 minutes, 26 seconds Number two, once we come into production, so then there is a penalty clause. If I am not able to supply, you know, suppose I have a contract of say 45:34 45 minutes, 34 seconds 5,000 tons and I'm able to supply only 4,000 tons, then for,000 tons I will pay. But suppose he doesn't buy 5,000 tons, he buys only 4,000 tons, then they will also pay to us for,000 tons. 45:45 45 minutes, 45 seconds It's me. Perfect. So, so which means that the kota the kota contingency has been uh you know considered in the you 45:53 45 minutes, 53 seconds know in the agreements or the loss that you have signed. Yes. 45:59 45 minutes, 59 seconds If there's no then there's no obligation. 46:04 46 minutes, 4 seconds So if there's no kota right? So okay. Uh secondly u you know on the kota order that you've quoted you know that also 46:12 46 minutes, 12 seconds clearly mentions that you know the limits on production are as per what is described or what is prescribed under the ODS rules and the kegali amendment 46:20 46 minutes, 20 seconds right so even if players have the capacity the countrywide limits will not be exceeded. uh now you know if we see 46:29 46 minutes, 29 seconds the incumbents SRS GFL Naven uh they have uh you know both HCFC baselines from 201910 and an active production 46:38 46 minutes, 38 seconds running through the 202426 window which are the two key requirements for securing the quotas as per the Montreal 46:44 46 minutes, 44 seconds protocol. Now their announced HFC capacities you know if we aggregate you know whatever the incumbents have 46:51 46 minutes, 51 seconds announced uh that suggests that the you know that the country's total permissible production kota under the kegali will uh you know will be largely 47:00 47 minutes if not fully consumed by these you know these incumbents alone. So with no HCFC baseline and with no HFC production in 47:08 47 minutes, 8 seconds 2024 26 observation period uh you know the quotas that we're talking about uh you know we would need more uh 47:15 47 minutes, 15 seconds clarification on how do we feel that you know we'll be allotted quotas is it like you know purely on the basis of the ECS 47:22 47 minutes, 22 seconds that we have secured or there is any uh any other indications from the government that we have to go ahead with this project. 47:31 47 minutes, 31 seconds See uh uh uh you are asking questions the same question is appearing again and again. This is the third time answering 47:38 47 minutes, 38 seconds it. So it is the clause number three. It is self-explanatory which says that the implementation of an appropriate 47:45 47 minutes, 45 seconds framework permitting HSC production after taking into account the production capacity of the operational units as on 47:54 47 minutes, 54 seconds 112028 as per the HFC's face down schedule of the Montreal protocol. Now if you want 48:02 48 minutes, 2 seconds to ask the exact numbers and all these things I think government is the right uh you know party to ask all these questions. uh we are not in a position 48:10 48 minutes, 10 seconds to comment on any of these right so that's what my final say I'll not comment more on no so my my question uh you know I well 48:18 48 minutes, 18 seconds understood your point but my question is just uh you know to check because uh you know I would not like to comment on that yeah this 48:26 48 minutes, 26 seconds yeah whoever is expanding whoever is doing what other people are doing I cannot comment on that please 48:34 48 minutes, 34 seconds but uh but but you feel that you know this order sufficiently says that only production and capacity is important or is it like you know within the framework 48:41 48 minutes, 41 seconds of the kegali rules which also say that there is a con with our plan we are going ahead with our plan of 20,000 48:49 48 minutes, 49 seconds metric tons and we are halfway through it and our capacity will be commissioned probably in October end of November 48:55 48 minutes, 55 seconds early November Q3 of 27 so that's we are confident of it 27 is a free year we'll 49:02 49 minutes, 2 seconds come to know about the uh freeze in 1 2028 and we are very confident with the government that uh you know as per the 49:10 49 minutes, 10 seconds order they will behave as what the order says. All right. Thank you so much. 49:17 49 minutes, 17 seconds Thank you. The next question is from the line of Rajesh Gupta from SBI. Please go ahead. 49:24 49 minutes, 24 seconds Yeah. Uh thank you for the opportunity sir. Uh my question is on the border perspective at 495 rupees capex. What 49:33 49 minutes, 33 seconds kind of revenue we see over the next 2 three years on that? 49:38 49 minutes, 38 seconds So this out of 495 crores for this RP is around 405 cr and this gives us a 49:46 49 minutes, 46 seconds revenue of around 92,000 rupees revenue every year. 49:54 49 minutes, 54 seconds Okay. And uh looking at your further expansion plan in other related products, what is the company's vision 50:02 50 minutes, 2 seconds in next four five years in terms of the growth? uh if you can just share on that. 50:09 50 minutes, 9 seconds Yeah definitely. Uh so if you see uh in the with the proven execution of the 50:16 50 minutes, 16 seconds solar grid there are three to four uh growth drivers for that. With the proven execution of solar grid DHF we are as we 50:23 50 minutes, 23 seconds as our CEO has mentioned we are planning to go for the setting up of the new HF and solar grid facility and we are also 50:30 50 minutes, 30 seconds poised to for into electronic grade DHF for application in semiconductors. We are also planning to enter into future 50:37 50 minutes, 37 seconds sustainable rapid gases like HFOS and high performance fluoropolymers. So the above will lead us to participate in 50:44 50 minutes, 44 seconds various new age applications and achieve a diverse portfolio and for that our R&D is continuously getting strengthened 50:52 50 minutes, 52 seconds leading to development of high-end and high margin products. Yes, but definitely we will go for the expansion after this uh R32 project is over. But 51:01 51 minutes, 1 second to answer your question, yes uh next 3 to five years we will invest another 500 to 700 cr. But currently we will go one by one project only. 51:11 51 minutes, 11 seconds As you see one year past three years history also we go by one by one project only. First uh this hydrochloric acid 51:19 51 minutes, 19 seconds after the 100% capacity utilization of HF plant we went for the solar grid. 51:24 51 minutes, 24 seconds Same way we will we are going for the R32 and once this capacity utilization maximum capacity utilization is there after that only we'll go but yes uh 51:33 51 minutes, 33 seconds pipeline is there for all these product which I mentioned product segments I hope this answers Mr. Yeah. Yeah. 51:44 51 minutes, 44 seconds Yeah. Yeah. Thanks. So basically the 700 C r for the current year and 900 code incremental which means that the peak 51:51 51 minutes, 51 seconds will reach 1,600 cr rupes plus kind of revenue in next in next two three years. 51:57 51 minutes, 57 seconds Yeah. FY28 I think we should be close to around uh 2,000 crores 1 1600 to 2,000 crores because the new HF plan would 52:05 52 minutes, 5 seconds also be operational at that time. But uh we keep on we have a big pipeline of products. So our aim is to get to almost 52:13 52 minutes, 13 seconds uh 3,00 to 3,500 crores in next 5 years. Okay. Okay. Thank you sir. Thank you. 52:22 52 minutes, 22 seconds Thanks. 52:23 52 minutes, 23 seconds Thank you. Participants with questions may enter star and one. The next question is from the line of Rohit 52:30 52 minutes, 30 seconds Nagaraj from 361 Capital. Please go ahead. 52:34 52 minutes, 34 seconds Yeah. Uh thanks for the opportunity. So uh no question just one suggestion. uh the way our parent gives out uh a table 52:44 52 minutes, 44 seconds of LOI and contracts if we can also provide the same uh it'll make uh you know the future projections relatively 52:52 52 minutes, 52 seconds better from an analyst perspective. So just a position of that whatever uh contracts that we have and in terms of the life of it and whether those are 53:01 53 minutes, 1 second already commissioned or likely to get commissioned uh it would be really helpful if you if it we are bound by some confidentiality 53:09 53 minutes, 9 seconds agreements uh due to which we cannot disclose the names of the customers till a certain time. So that is why we have not disclosed names of some of the 53:17 53 minutes, 17 seconds customers. the customers where we were not bound we have already announced their names and uh sure we can provide a table kind of thing in future that's not 53:25 53 minutes, 25 seconds an issue thank you so much sir thank you ladies and gentlemen if you 53:32 53 minutes, 32 seconds have any questions you may enter star and one now 53:44 53 minutes, 44 seconds as there are no further questions from participants I now and the conference over to Mr. Absel Malcani for closing comments. 53:52 53 minutes, 52 seconds Thank you everyone for joining us today and for your continued interest in 10 with our strong order visibility, 53:59 53 minutes, 59 seconds ongoing capex initiatives, long-term customer relationship, backward integration strength and focus on operational excellence. We remain 54:06 54 minutes, 6 seconds confident about our long-term growth journey. Thank you once again for your participation and continued support. We look forward to facing with all of you 54:14 54 minutes, 14 seconds continually going forward. We hope we have been able to answer all or most of your questions. For any followup queries, please feel free to reach out to our partner SGA. Have a great time. 54:26 54 minutes, 26 seconds Thank you. 54:28 54 minutes, 28 seconds Thank you very much. On behalf of Tanpac Industries Limited, that concludes this conference call. Thank you all for joining us and you may now disconnect your lines. Thank you.