Zuari Industries Ltd — Q3 FY26

Zuari Industries Ltd Q3 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=szDserNyo4M Published: 2 months ago

0:02 2 seconds Ladies and gentlemen, good day and welcome to the Zari Industries Limited Q3 FY26 earnings conference call. As a 0:09 9 seconds reminder, all parts will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. 0:19 19 seconds Should you need assistance during the conference call, please signal an operator by pressing star then zero on 0:26 26 seconds attached phone. Please note that this conference has been recorded. I would now hand the conference over to Miss 0:33 33 seconds Dashni Desai from MU MUSG in time. Thank you and over to you ma'am. 0:40 40 seconds Thank you. Good afternoon everyone and I extend a very warm welcome to all participants on Q3 FY26 earnings 0:48 48 seconds conference call of Zari Industries Limited. Today on this call we have Mr. Atar Sahab, managing director, Mr. 0:55 55 seconds Nishant Dalal, Chief Financial Officer and Company Secretary, Mr. Yadendra Gohir. Before we begin this call, I would like to give a short disclaimer. 1:05 1 minute, 5 seconds This call may contain some forward-looking statements which are completely based upon our beliefs, opinions, and expectations as of today. 1:12 1 minute, 12 seconds These statements are not guarantees of our future performance and involve unforeseen risks and uncertaintities. 1:18 1 minute, 18 seconds With this, I hand over the call to Atas Sahab G. Over to you, sir. Thank you. 1:24 1 minute, 24 seconds Thank you, Dashini. and I welcome all the participants to this uh quarterly call. 1:29 1 minute, 29 seconds On behalf of Zo Industries Limited, I am pleased to be uh accompanied by Mr. 1:36 1 minute, 36 seconds Nishant Dalal CFO, Mr. Yadvindra, Goyel, company secretary, Mr. Jatin Jan, our deputy CFO 1:45 1 minute, 45 seconds and to give you an account of our quarterly performance. 1:49 1 minute, 49 seconds We commenced our crushing this season which usually starts in the third quarter. The earliest se commissioning 1:57 1 minute, 57 seconds in the crushing was commenced on 26th of October this year. 2:02 2 minutes, 2 seconds We also achieved the highest ever day crush which was 1.1 lakh quint. 2:08 2 minutes, 8 seconds We achieved highest ever K3 crush which was 67.28 lakh quintil. 2:16 2 minutes, 16 seconds In comparison, we had achieved 60.7 line lakh quintil last year. 2:21 2 minutes, 21 seconds The uh biggest highlight of this quarterly performance was that we achieved uh capacity utilization of more than 100%. 2:30 2 minutes, 30 seconds It is quite unusual in sugar industry. 2:34 2 minutes, 34 seconds But I'm very happy to report that our factory achieved more than 100% capacity utilization in the third quarter. 2:42 2 minutes, 42 seconds The sugar sales were a shade lower than the last year at 3.2 lakh winter and that was primarily because of the quota 2:51 2 minutes, 51 seconds that is given by the government but we made up for it uh by sugar realization which was up by about 6%. 3:01 3 minutes, 1 second Our power generation was also up by 6.7%. Ethanol production was up by 4.8%. 3:08 3 minutes, 8 seconds and ethanol sales were up by 17.7%. 3:13 3 minutes, 13 seconds So overall I would say uh we put up a robust performance in the SPE division of the company. 3:22 3 minutes, 22 seconds As far as our subsidiaries and joint ventures are concerned, our largest subsidiary Zari Intra World continues to 3:30 3 minutes, 30 seconds move ahead with its asset light DM model and by now we have achieved a gross 3:36 3 minutes, 36 seconds development value of 3,100 cr. We have also made a recent entry um into Bangalore. 3:46 3 minutes, 46 seconds As you are aware, we are pursuing uh DM projects in Hyderabad and in Kolkata. 3:51 3 minutes, 51 seconds Our flagship project which is sent Dubai project is now nearing completion. 3:58 3 minutes, 58 seconds The target was about 98% but we have done 93.4%. 4:04 4 minutes, 4 seconds We are now expecting to complete the project in all respects by the end of this financial year and commence the handovers by April of uh 26. 4:16 4 minutes, 16 seconds Simon India which is our engineering and construction company uh commissioned um the fifth evaporator project for ppl uh 4:25 4 minutes, 25 seconds in this quarter and the value contract value for this project was 55.5 crores it has now got orders of about 100 cr 4:33 4 minutes, 33 seconds that it is executing for various clients as I mentioned in my previous calls the 4:41 4 minutes, 41 seconds company is seeking to build deep uh technical capability And as part of that it is empaneling domain experts. It is 4:50 4 minutes, 50 seconds collaborating with global technology licensors as well as uh research institutions who have proprietary process technology. 5:00 5 minutes It is also embedding artificial intelligence in all aspects of its operations. 5:09 5 minutes, 9 seconds Zari NVN Bio Energy Private Limited which is our ethanol JV with NBN of uh 5:17 5 minutes, 17 seconds Europe commissioned its plant on 1st of January 2026 5:24 5 minutes, 24 seconds and we have locked in about 20,000 kilit of contracts 5:30 5 minutes, 30 seconds um which will take us through October and then hopefully we will have the next round of uh OMC tenders which will give 5:39 5 minutes, 39 seconds us the the revenues uh in the coming uh financial year. 5:46 5 minutes, 46 seconds We continue to maintain our strategic investments across our port portfolio and as you are aware we hold a sizable 5:53 5 minutes, 53 seconds stake in Chumbel fertilizers, Zari agrochemicals, a little bit in Paradi phosphate, 6:00 6 minutes uh significant stake in Texac and engineering and texacco infrastructure and holdings. The value of our listed 6:08 6 minutes, 8 seconds strategic investments as on the 31st of December 25 was 4,600 cr 6:16 6 minutes, 16 seconds and which was a shade lower than the previous quarter because of the market movement. 6:22 6 minutes, 22 seconds We continue to work on our deleveraging uh exercise excluding working capital. The gross 6:30 6 minutes, 30 seconds external debt of the company and its subsidiaries was 1,848 cr which was a shade lower than 1,863 cr for the previous quarter. 6:42 6 minutes, 42 seconds The inflows from Dubai project and an associate company are expected uh in the first quarter of the next financial year 6:50 6 minutes, 50 seconds which should help us uh uh repay major portion of the external debt. We are 6:57 6 minutes, 57 seconds also working on other plans to leverage the the balance sheet. 7:03 7 minutes, 3 seconds Looking ahead, I think the uh SAP increase that uh happened earlier this year has largely uh contributed to the 7:12 7 minutes, 12 seconds increase in sugar prices and we expect the sugar prices to remain stable and it is allowing us to offset the increase in 7:20 7 minutes, 20 seconds cost that took place. Ethanol prices have remained uh stagnant which has ne negatively impacted the profitability 7:29 7 minutes, 29 seconds and we have kept on saying this again that uh it is a high time that the government should reconsider and provide 7:36 7 minutes, 36 seconds an increase uh in the ethanol procurement prices which is very important for everyone. 7:43 7 minutes, 43 seconds The overall macroeconomic situation in ethanol market uh remains a concern. As some of you may have noted uh there is 7:51 7 minutes, 51 seconds seems to be significant over capacity in the ethanol industry and I think a resolution must be found out to deal 7:59 7 minutes, 59 seconds with it. On the real estate front, we are working on securing uh more DM 8:06 8 minutes, 6 seconds mandates uh in southern states and Kolkata. 8:11 8 minutes, 11 seconds We are also looking at uh as I mentioned earlier acquisition opportunities uh in 8:18 8 minutes, 18 seconds the sugar sector and last but not the least we continue to digitalize and implement uh digital 8:26 8 minutes, 26 seconds solutions across all our business uh verticles. 8:31 8 minutes, 31 seconds So with this background I now invite our CFO Nishant Dalal to please present the financial results of the company. Over 8:39 8 minutes, 39 seconds to you Nishant. Thank you sir and good afternoon everyone. I will begin by providing a brief overview of Zoari 8:46 8 minutes, 46 seconds Industries financial performance. So on a standalone basis the revenue of the company are up by 2% as compared to previous year K3 and are at 254.7 cr. 8:58 8 minutes, 58 seconds Similarly for the 9month period the revenues remain similar kind of levels. These are 727.6 cr marginally up by 1%. 9:08 9 minutes, 8 seconds On the Aida we continue to maintain the Aida and Aida for Q3 FI26 is 36.3 cr 9:14 9 minutes, 14 seconds versus 37.7 cr in the previous year. For the 9 month period it is 125.7 cr as 9:22 9 minutes, 22 seconds compared to 114.8 cr in the previous year. We continue to optimize our borrowing cost and they are coming down 9:29 9 minutes, 29 seconds quarteron quarter as well as yearly. So for the quarter there is a reduction of 3.5 K as compared to the previous year 9:36 9 minutes, 36 seconds Q3 and for the 9 month period the finance costs are down by 9.8 K the PBT before exceptional items is 4.5 cr for 9:46 9 minutes, 46 seconds the Q3 FI26 as compared to 2.6 cr in the previous year Q3 and for the 9 month 9:52 9 minutes, 52 seconds period it is 24 cr as compared to 4.2 cr in the previous year. The exceptional items for this quarter includes an 10:00 10 minutes impact of 2.8 81 cr on account of the new labor codes on a consolidated basis. 10:07 10 minutes, 7 seconds The revenue of the company are 301.5 cr for Q3 as compared to 274.1 cr in the 10:14 10 minutes, 14 seconds previous year. And for the 9 month period, there is a jump to 855.6 cr as compared to 793.3 cr in the previous 10:23 10 minutes, 23 seconds year. Similarly, the PBT before exceptional item for the Q3 is a loss of 18.6 6 cr as compared to 23.7 cr for Q3 10:33 10 minutes, 33 seconds of previous year and for the 9 months period the PBT before exceptional item stands at 154.9 cr as compared to 53.2 10:43 10 minutes, 43 seconds cr in the previous 9 month period and few updates on the subsidiaries and important subsidiaries and joint 10:49 10 minutes, 49 seconds ventures. So for Zari Infra limited the income has increased to 36.4 4 cr as 10:56 10 minutes, 56 seconds compared to 34.9 cr in the Q3 of last year. Similarly, Simon India which is the EPC arm of the group, their income 11:04 11 minutes, 4 seconds has increased to 24.3 cr as compared to 6.2 cr in the previous year Q3 period. 11:11 11 minutes, 11 seconds On the joint ventures, our oil tanking joint venture has seen a significant increase in the income to 7.4 4 cr as 11:18 11 minutes, 18 seconds compared to 5.5 cr for the quarter and it's primarily driven by the renegotiated rates for the uh tolling 11:26 11 minutes, 26 seconds facility with the OMC's. A snapshot of the performance of the subsidiaries and joint venture is already in the investor presentation and the detailed financials 11:35 11 minutes, 35 seconds are also there. I hope you got a chance to go through it. I now request the moderator to open the floor for discussion. 11:56 11 minutes, 56 seconds Thank you very much. 11:59 11 minutes, 59 seconds We will now begin the question and answer session. Anyone who wishes to ask question may press star and one on the 12:06 12 minutes, 6 seconds touchdown telephone. If you wish to remove yourself from question Q, you may press star and two. Participants are 12:14 12 minutes, 14 seconds requested to use hands while asking a question. Ladies and gentlemen, we'll wait for a moment while the question Q assembles. 12:30 12 minutes, 30 seconds The first question is from the line of Val from SNG Finance. Please go ahead. Yeah. Hi. Am I audible? 12:38 12 minutes, 38 seconds Yes sir. 12:39 12 minutes, 39 seconds Yeah. Yeah. So, thank you for the opportunity. Just two quick question from my side. The first one was in uh cane crushing business segment. So as we 12:48 12 minutes, 48 seconds see as we saw that uh this segment has uh delivered the highest ever uh highest 12:54 12 minutes, 54 seconds ever number in the Q uh Q3 at 67.3 at 67.3 billion versus 60.8 last year. So 13:03 13 minutes, 3 seconds just wanted to understand that can you help us to give a more clear picture with regards to the operational efficiency and agro uh economic factor 13:11 13 minutes, 11 seconds that have enabled this uh performance and uh how can we and uh how sustainable is this trajectory given on the 9 month 13:20 13 minutes, 20 seconds basis as we saw there was a decline in the volume. 13:26 13 minutes, 26 seconds See as I mentioned to you we have been working very hard on the kin development and kin procurement side. 13:35 13 minutes, 35 seconds In parallel we have also been working on improving our operational efficiency. 13:41 13 minutes, 41 seconds Historically plants like these will operate at 90% 95% availability. 13:48 13 minutes, 48 seconds But thanks to the continuous improvement that we have done, we have been able to operate it at more than 100%. In fact, 13:56 13 minutes, 56 seconds we breached the one lakh quintal crushing on several occasions uh in this quarters and now we are consistently running it at more than 100%. 14:08 14 minutes, 8 seconds I think the the main issue then becomes the uninterrupted supply of cane. 14:15 14 minutes, 15 seconds uh what you see in the 9 month figure is that in the previous year we had run the mill in the month of April itself 14:24 14 minutes, 24 seconds and about 12 days I think 17 or 17 17 days 17 days so because of that the 9 month figure for the previous year is 14:32 14 minutes, 32 seconds higher and this year the mill had closed uh by 31st March I think okay so um that's why the numbers are lower 14:42 14 minutes, 42 seconds there was a general shortage of sugar cane in Uttar Pradesh which had affected 14:49 14 minutes, 49 seconds everybody and we were also affected but we are hoping that we should uh better that performance it's been quite good so 14:58 14 minutes, 58 seconds far uh the Q3 has been quite good in fact currently also we are doing quite well um as we speak today we have set 15:08 15 minutes, 8 seconds another record in fact yesterday's performance of the mill is 1 lakh 11,000 quint Intel crushing which is again a 15:16 15 minutes, 16 seconds record uh 11% over capacity. So we are very hopeful that you know we will better our performance 15:25 15 minutes, 25 seconds um and we will continue to to double our effort in gain streamlining of cane logistics and can development. 15:36 15 minutes, 36 seconds Adding on to that if we talk about the general agonomics of this area. So if uh our mill is actually located in a very 15:43 15 minutes, 43 seconds strategic position where the availability of raw material is not a critical concern for us. So during this season it all depends on how quickly or 15:52 15 minutes, 52 seconds how more we can crush. For us we have been able to improve our cane payment cycle a lot over last 3 to four years. 16:01 16 minutes, 1 second As a result of which our availability and confidence of farmers in supplying the cane to the company is going up 16:08 16 minutes, 8 seconds every year. So this an increased you can say crushing of the company we are pretty confident that we will be able to 16:15 16 minutes, 15 seconds sustain it and it will make you can say improvement on yearly basis. Got it sir that was really insightful. 16:24 16 minutes, 24 seconds My next question was with regards to the ethanol segment. So the ethanol segment has saw a sales growth of 17.7% 16:32 16 minutes, 32 seconds yearonear in Q3 supported by 4.8% increase in the production. So what uh 16:39 16 minutes, 39 seconds can we expect or uh the utilization level are we targeting for FY27 and uh can you help us to give us a more 16:47 16 minutes, 47 seconds clear picture on the ethanol blending program uh program influencing the demand s uh stability. 16:56 16 minutes, 56 seconds So if we talk on our ethanol production, so we can say with great confidence that we have improved our ethanol utilization 17:05 17 minutes, 5 seconds and last year you can say last sugar season we achieved the highest ever can crushing days of 300 plus days. This 17:12 17 minutes, 12 seconds year also if we are looking at you can say sugar season of 25 26 or maybe let's say FYI 27. So we are operating our 17:21 17 minutes, 21 seconds plant in a manner that we have sufficient our captive malasses availability to operate the plant for at 17:29 17 minutes, 29 seconds least 300 plus days. Plus we also at times scout for opportunistic purchase of malasses availability during 17:36 17 minutes, 36 seconds offseason from the open market and if the economic setting will procure the malasses from outside also to improve you can sever operating days for ethanol. 17:46 17 minutes, 46 seconds Also if we talk about you can say ethanol blending program of the government. So given that there is almost 16.7% increase in FR in SAP of 17:55 17 minutes, 55 seconds sugar cane prices this year industry in particular was expecting that the government is going to increase 18:03 18 minutes, 3 seconds the prices of ethanol which has not happened so far although multiple representations have been made to the uh 18:10 18 minutes, 10 seconds ministry or today if we look at if 20% ethanol blending is concern is uh kept 18:18 18 minutes, 18 seconds as the benchmark then the general feeling is that there is sufficient capacities which are available in India so as to meet the 20% requirement of 18:26 18 minutes, 26 seconds blending. The going forward scenario of is that if we increase these 20% blending then only you can see 18:34 18 minutes, 34 seconds incremental capacity additions are expected and then the growth in ethanol sector probably in terms of quantity is 18:41 18 minutes, 41 seconds expected more say if we talk about given that the price of sugar cane has increased. So the critical parameter is 18:48 18 minutes, 48 seconds that in order to ensure the viability of even the existing uh sugar blending program the prices of ethanol have to be 18:55 18 minutes, 55 seconds reminerative so that the cost factors are you can say duly captured and it had been happening so until 2022 23 19:04 19 minutes, 4 seconds government had been consistently increasing the prices of ethanol whenever there was an increase in the sugar cane prices. 19:11 19 minutes, 11 seconds Now you can say probably it is expected and probably you can say it will take some time to for that analysis or 19:18 19 minutes, 18 seconds decision making to sink in so that the prices of ethanol are kept at a reminerative prices. It had been a the lending program had been a great success 19:27 19 minutes, 27 seconds for the government of India and it has really saved huge you can say forex uh outflows for the country and we expect 19:35 19 minutes, 35 seconds that some decision on a you can say sustainable basis uh to to attain the sustainability of the uh business model 19:43 19 minutes, 43 seconds some decision should happen on that regard. 19:46 19 minutes, 46 seconds Just to add to what Nant has said, as far as we are concerned, it is our stated objective to run our distillery to the maximum number of days in a year. 20:00 20 minutes If we take let's say 30 days uh for maintenance annual maintenance on the discary, it is our aspiration that we 20:08 20 minutes, 8 seconds should raise it at uh run the distillary for 330 days in a year. So that's why he 20:14 20 minutes, 14 seconds said twice that we plan to run it at 300 plus days. Now do we have enough 20:22 20 minutes, 22 seconds molasses uh from the crushing that we do? The answer is no. So we have to supplement it by buying molasses 20:29 20 minutes, 29 seconds externally which we have done successfully uh during the last couple of years and this year also we have done. So we are very confident that we 20:38 20 minutes, 38 seconds should meet our distillary operation base target and therefore the production should be quite good. The concern that 20:46 20 minutes, 46 seconds he raised was that the government has not increased the prices is a valid industrywide concern but we still are profitable. I think whatever prices are 20:55 20 minutes, 55 seconds there you know we still um are profitable. I see no concern there. The other concern is that the government has 21:03 21 minutes, 3 seconds put a stop at 20% or paused the blending at 20% currently 21:10 21 minutes, 10 seconds and we are all hoping that this uh blending percentage should be increased um because that's important not only for 21:20 21 minutes, 20 seconds us but for everybody else who has set up this capacity. 21:28 21 minutes, 28 seconds Thank you sir for uh answering all my questions patiently. That was really helpful. Thank you and all the best for the future. 21:36 21 minutes, 36 seconds Thank you. Thank you. Thank you. 21:39 21 minutes, 39 seconds The next question is from the line of Vun Masha from Baba Investments. Please go ahead. 21:46 21 minutes, 46 seconds Uh hi sir. Thank you for the opportunity. A couple of questions from my end. So the average sugar like realization improved the 5% Y in Q3 like 21:55 21 minutes, 55 seconds how do we see the pricing trends evolving in the near term especially with the government policies on exports and ethanol diversion like impacting the supply demand dynamics. 22:06 22 minutes, 6 seconds So wun if we look at you can say these demand supply dynamics I believe Indian sugar industry is very much well placed 22:14 22 minutes, 14 seconds we don't see a sugar glut in India which is going to have any negative impact on sugar prices I think isma estimates 22:22 22 minutes, 22 seconds uh say that sugar production is estimated at some 34.4 lakh million tons and diversion is 3.4 4 million ton that 22:30 22 minutes, 30 seconds leaves 31 million ton plus there is an expected ex export of 1.5 million ton so that will leave around somewhere around 22:38 22 minutes, 38 seconds 29 million tons of you can say sugar availability in India and consumption being around 28 29 million ton so India should close the closing stock should be 22:47 22 minutes, 47 seconds at similar level to the last years and if we look at latest trend you can say probably few trends which are emerging 22:55 22 minutes, 55 seconds since last month probably the 34.4 4 million ton of production is not going to be achieved. There may be a shortfall 23:02 23 minutes, 2 seconds of 1 and 1/2 million tons of sugar. So more or less you can say the closing stock somewhere being around 5 to 6 million ton in India for this sugar 23:10 23 minutes, 10 seconds season. So there is you can say no glut and last one month performance of prices if you look at so as more clarity is 23:18 23 minutes, 18 seconds emerging on the production side of the sugar. So there are there is a farming of the prices also of sugar which is visible since last one one and a half 23:27 23 minutes, 27 seconds months. So we we believe that the improved realizations which we are seeing they are supposed to sustain and 23:36 23 minutes, 36 seconds uh more or less they should be able we should be able to offset the increase in the cane prices which has happened in for this season and maintain our margin levels. 23:48 23 minutes, 48 seconds All right sir. And the second question is like uh on the power production we see that the power production has increased by 6.7% 23:57 23 minutes, 57 seconds Y like in quarter 3 but it has declined like 11.5% in 9 months. Similarly uh with KR it has improved in Q3 but 24:05 24 minutes, 5 seconds there's a decline in the 9 months. So what could be the reasons if you could elaborate were there any operational challenges behind this decline? Uh like 24:12 24 minutes, 12 seconds such as the cane availability or any grid demand like what could be like could you throw some light on that? We we got Wun. So I think we answered this 24:20 24 minutes, 20 seconds earlier because last year if we look at 9 month period so we had an opening crushing of 17 days 17 April 2020 for 24:30 24 minutes, 30 seconds the 9 months of FY25 were having operations but those 17 days were not available to in FY2526. 24:38 24 minutes, 38 seconds So it's because of that primarily you are 9 months numbers look a little skewed. However, if we compare on quarterly basis, you can see that both 24:47 24 minutes, 47 seconds power generation, power as well as sugar cane crushing everything is up and that should be able to you can say make up for the trend for this year. 24:58 24 minutes, 58 seconds Great sir any guidance in terms of like uh where can we see ourselves ending in Q4? 25:05 25 minutes, 5 seconds So operationally if we look at given that 67 lakh crushing is already there in Q3 and 90 days even if we operate 91 25:14 25 minutes, 14 seconds days if we operate our sugar mill properly and use 100% capacity so another 90 million tons of 90 lakh 20s 25:23 25 minutes, 23 seconds of crushing should be available with us all right sir great that gives some good visibility sir great thanks a lot sir 25:31 25 minutes, 31 seconds all the best thank you thank Thank you. 25:35 25 minutes, 35 seconds The next question is from the line of Sul Sha from Paris Investments. Please go ahead. 25:42 25 minutes, 42 seconds Yeah. Hi sir, good evening. So my question is on the Dubai project. So uh how much total value we can realize from 25:50 25 minutes, 50 seconds that and uh how much of that we can expect by next quarter. 25:57 25 minutes, 57 seconds So our Dubai project if we look at uh I think we are a we have already stated that Dubai project the completion is 26:05 26 minutes, 5 seconds expected by 31st March and the formal handover to the uh buyers is expected to start from April month onward. So if we 26:14 26 minutes, 14 seconds are talking about Q4 specific I believe until the project completion happens we don't foresee any funds coming from 26:22 26 minutes, 22 seconds Dubai they should from you can say Q1 of next year and we should realize I think earlier also in few of the calls we have 26:30 26 minutes, 30 seconds indicated we expect somewhere around 800 to 900 k of inflows which should come from Dubai project. 26:38 26 minutes, 38 seconds Yeah. So by uh Q1 uh my question was how much we can expect from that 800 to 900. 26:44 26 minutes, 44 seconds So Q1 and Q2 all together we can give you that visibility today exactly for Q1 we will not be able to state right now. 26:53 26 minutes, 53 seconds Okay. 26:54 26 minutes, 54 seconds Okay. And uh so in our real estate division we are currently having uh four projects ongoing but when we see our 27:02 27 minutes, 2 seconds numbers I mean uh even if we get 8 to 10% DM fees we are not seeing some meaningful revenues and profits from those. So I 27:10 27 minutes, 10 seconds mean by when we can see some meaningful uh revenue from uh this projects 27:16 27 minutes, 16 seconds see our plan for taking this DM business to mult is to take it to multiple fold. 27:23 27 minutes, 23 seconds Our target itself has been we had set ourself an internal target to do DM projects for at least 10,000 K in the 27:30 27 minutes, 30 seconds current financial year itself and when you see that those if we achieve those targets so even considering the 10% of 27:38 27 minutes, 38 seconds DME which you just stated it becomes a meaningful size and today if we talk about today you can say that development 27:46 27 minutes, 46 seconds or business development is going very actively on the DM project side as you can see we have just now signed up a 27:54 27 minutes, 54 seconds term sheet in the one of the biggest real market real estate market of India in Bangalore also and as we become more 28:01 28 minutes, 1 second and more prominent you can say that development of business development on GDV side will take a lot of impact. So I 28:09 28 minutes, 9 seconds think uh we are very positive and we keep it as a key growth area for our business and maybe it will take it may 28:17 28 minutes, 17 seconds take some time maybe few quarters but DM is going to be a very big component of our overall growth strategy. 28:25 28 minutes, 25 seconds Okay. Okay. Because so if we see our subsidiaries and our this quarter and quarter performance uh most of our 28:34 28 minutes, 34 seconds subsidiaries are making losses. So if you see sugar, power, ethanol, real estate, engineering, furniture. So 28:42 28 minutes, 42 seconds I mean if you could give us some road map for FI27, how shall we look at this? 28:47 28 minutes, 47 seconds Because uh I I seriously don't know which sugar power ethanol losses you are looking at. S remains you can say very 28:56 28 minutes, 56 seconds it's a core business souls industries and it gives almost 8 to 10% a bit margins for us. And when you look at the 29:04 29 minutes, 4 seconds subsidiaries part also so my smaller subsidiaries are all always profitable. 29:08 29 minutes, 8 seconds If you look at the snapshot of the subsidiaries performance there you may see you may see that zary fins zary insurance broking which are smaller in 29:17 29 minutes, 17 seconds business. Even Simon India Simon India Simon India probably has a small loss. 29:20 29 minutes, 20 seconds It's a small loss but it's a EPC company they are yet to book the revenue and which will get reflected in their income. So almost otherwise it's you can 29:30 29 minutes, 30 seconds say more of a operationally the even the subsidiaries are performance is pretty well it's more at the group level which 29:36 29 minutes, 36 seconds is a debt overhang on us which will take some time and uh then the picture will be completely different 29:45 29 minutes, 45 seconds so I was talking on the consolidated basis only seeing the presentation post interest and all in our results only we can see 29:54 29 minutes, 54 seconds most of them are in losses maybe that's because of the interest cost and everything I think so. 30:01 30 minutes, 1 second Okay. Okay. And sir, uh few days back I we saw one uh I mean uh Zari Agro's one 30:09 30 minutes, 9 seconds notification that they are entering into mining or something. So can you please throw some light as a promoter? 30:17 30 minutes, 17 seconds See they have they have uh just uh started to explore something um in mining but right now it is all very 30:27 30 minutes, 27 seconds initial exploratory and um nothing form as of now. 30:33 30 minutes, 33 seconds Okay. Okay. So my final question is on the len side. So I mean uh are we going to monetize any land I mean on the Goa 30:42 30 minutes, 42 seconds part and how much we still hold in Jari industries and zary agro? 30:48 30 minutes, 48 seconds Vishant will answer that question about the we hold almost 260 acres in zari industries and probably similar kind of 30:56 30 minutes, 56 seconds acres in zari agro also. Mhm. So the we have we are facing some regulatory challenges uh in Goa and uh there has 31:06 31 minutes, 6 seconds been a new law that has been passed which is restricting the land change in land use etc. So we are examining 31:14 31 minutes, 14 seconds various options you know various legal options etc and and therefore we are not 31:20 31 minutes, 20 seconds factoring it into our uh deleveraging plans as of now. 31:26 31 minutes, 26 seconds Okay. Okay. If I make squeezing one more question, sir. Yes. 31:32 31 minutes, 32 seconds Yeah. On the uh our other uh group company tax infra uh we are going to launch it in Q1 of uh next financial 31:41 31 minutes, 41 seconds year some big real estate project. So are we on track to uh do that? 31:48 31 minutes, 48 seconds I think this question is best answered by text or infra. I think there questions pertain to other listed 31:55 31 minutes, 55 seconds entities. it is best to ask them. But since you raised this question, my sense 32:02 32 minutes, 2 seconds is that uh their project is on track and it should be launched in the first quarter of the next financial year. 32:12 32 minutes, 12 seconds Okay. Okay. Uh that's it from my side. Thank you and all the best. Thank you. Thanks. 32:35 32 minutes, 35 seconds Thank you. 32:38 32 minutes, 38 seconds The next question is from the line of Navia Raj from HRG Capital. Please go ahead. Hello. Am I audible? 32:47 32 minutes, 47 seconds Yes ma'am. Yeah, thank you for the opportunity sir. 32:51 32 minutes, 51 seconds Uh sir, I wanted to ask that Zari Enian Bioenergy commissioned its plant in 32:58 32 minutes, 58 seconds January 2026, right? So how soon will this asset contribute meaningfully to consolidated revenues and margins and also what optic agreement are in place? 33:12 33 minutes, 12 seconds So if we talk about ZBPL so their plant got you can say commissioned from 1st January 2026 we had we did the complete 33:21 33 minutes, 21 seconds construction trial runs etc by 31st of December. So it will start generating the revenues from the current quarter. 33:29 33 minutes, 29 seconds If we talk at the meaningful contribution to the consolidation then let me highlight it. This is a joint venture of the company 50/50 joint 33:36 33 minutes, 36 seconds venture. So even the when it consolidation happens it will be a single line item consolidation and it will come through you can say their 33:45 33 minutes, 45 seconds share of profit or loss through joint venture. That way only it will come in our financials. on the offtake if you talk about then we have very recently I 33:54 33 minutes, 54 seconds think after 31st of December we have done a contract for supply of 2 cr liters of ethnos to institutional buyers 34:03 34 minutes, 3 seconds and that is probably take care of almost 50% of our capacity more and more when the fresh tenders from the OMC's come in 34:11 34 minutes, 11 seconds the current current quarter or maybe next quarter so we'll try to bid there and get you can say further allocations 34:19 34 minutes, 19 seconds Okay. Okay sir. Got it. And uh sir Sim uh Simon India completed orders 34:26 34 minutes, 26 seconds worth rupees 55.5 crores with 98.7 crores under execution. Could you 34:33 34 minutes, 33 seconds elaborate more on the pipeline visibility for FI27 and the sectors driving this demand? 34:42 34 minutes, 42 seconds I think right now we are just giving you the projects that are in hand which they're executing. As I mentioned 34:49 34 minutes, 49 seconds earlier in previous calls, we are just taking baby steps to reestablish our construction business. 34:58 34 minutes, 58 seconds We have started work in uh Paradi phosphates um in PPL Gua which used to be the Zwadi 35:07 35 minutes, 7 seconds agro plant earlier and in the Mangalore plant of MCFL which is also now merged 35:14 35 minutes, 14 seconds into Paradip. So all these places we are now working with uh their uh management 35:23 35 minutes, 23 seconds in trying to look at their capex plans and how we could assist them. We are doing a variety of things. We are doing 35:31 35 minutes, 31 seconds uh feasibility studies. We are doing uh initial engineering work then we are doing detail engineering work and 35:38 35 minutes, 38 seconds wherever possible we are doing uh EC work. The idea is to develop very deep expertise 35:47 35 minutes, 47 seconds in those areas where the group is already present which is the uh fertilizer segment where 35:55 35 minutes, 55 seconds we make ammonia, we make ura, we make dap, we make all kinds of NPK and uh as 36:02 36 minutes, 2 seconds part of the uh DAP plant we make phosphoric acid, we make sulfuric acid. 36:09 36 minutes, 9 seconds So you can say that Simon India is in that phase where it is really building those deep capabilities 36:17 36 minutes, 17 seconds on the one hand and on the other hand it is also seeing how it can do its work not in the traditional manner which used 36:26 36 minutes, 26 seconds to be very labor intensive but by extensive use of artificial intelligence. 36:32 36 minutes, 32 seconds So I think uh we will continue to take up projects but the real value will come 36:39 36 minutes, 39 seconds over a period of time when we have fully absorbed a the deep domain knowledge and b the AI part into our operations. 36:50 36 minutes, 50 seconds Okay. Okay. So got it. Thank you so much for answering all my questions and best of luck for future. Thank you. 36:58 36 minutes, 58 seconds Thank you. 37:00 37 minutes Thank you. A reminder to all the participants, you may press star and one to ask question. 37:08 37 minutes, 8 seconds The next question is from the line of Rajiv Jane from Arkin Investments. Please go ahead. Hello, I'm audible. 37:17 37 minutes, 17 seconds Yes sir. Yes. 37:18 37 minutes, 18 seconds Yeah. Uh thank you for giving the opportunity. So firstly you highlighted plans to secure robust DM mandates across Bangalore, Kolkata and Hyderabad. 37:27 37 minutes, 27 seconds So could you elaborate on the scale of these projects and their expected contribution to consolidated revenues uh for maybe over next 2 three years? 37:37 37 minutes, 37 seconds Typically these projects are between 750 to 2,000 crores. This is a range at which opportunities are coming to us and 37:46 37 minutes, 46 seconds the typical DM fee for these projects could be between 6 to 7% roughly 37:54 37 minutes, 54 seconds and uh as as Nishan said we have a stated objective of getting about 10,000 38:01 38 minutes, 1 second cr worth of gross development value worth of projects. we have reached a milestone of about 3,000 cr 38:10 38 minutes, 10 seconds um and let's see what we can do by the end of this year. But I think every quarter you will keep getting these updates. One discipline that we want to 38:17 38 minutes, 17 seconds follow is to keep updating the investors uh and market participants about the progress that we are making and 38:24 38 minutes, 24 seconds hopefully we'll see some progress. I think next quarter when we meet we may have some better news to share with you. 38:30 38 minutes, 30 seconds And one question that must be at the back of the mind of any participants is is that why is a company pursuing DM 38:37 38 minutes, 37 seconds mandates and why is it not buying land and why it's not doing JDAs which is the more traditional way of doing business 38:46 38 minutes, 46 seconds and this question I've answered um last year in one of the calls and I repeat that our our first focus is on in 38:54 38 minutes, 54 seconds completing our Dubai project and repatriating the funds we have already invested ed a lot of money into real 39:02 39 minutes, 2 seconds estate and that money has to be recouped and and brought back in the interim. Uh 39:08 39 minutes, 8 seconds one good way of growing the business and expanding our footprint is a DM model. 39:14 39 minutes, 14 seconds It's not easy. It it's very tough and challenging. You have to find a certain profile of partners who would be willing to cooperate and collaborate with you. 39:24 39 minutes, 24 seconds uh those who see value in associating with uh the uh uh Zoari brand. So our 39:31 39 minutes, 31 seconds company is looking at u such kind of people who can collaborate with us and we have seen some good results. The 39:40 39 minutes, 40 seconds company has been able to secure mandates in in Hyderabad, Kolkata and now recently in Bangalore. Um so you can 39:48 39 minutes, 48 seconds make some some estimates and some assumptions but I think the picture will keep getting uh clearer uh every quarter 39:57 39 minutes, 57 seconds and maybe uh in in in some later calls uh Nishant we should invite the CEO of 40:04 40 minutes, 4 seconds Zari in world also to participate and and provide firsthand information because he has been driving this development. Sure. 40:18 40 minutes, 18 seconds Understood sir. Uh thank you for elaborately answering to my question. Uh so my second question is uh so excluding 40:27 40 minutes, 27 seconds working capital external debt stood at around about 1,848 40:32 40 minutes, 32 seconds crores. So versus uh in Q2 it was 1,863 crores. So could you maybe elaborate on 40:41 40 minutes, 41 seconds the deleveraging road map uh including the timelines for repayment and expected inflows from Dubai and associated 40:48 40 minutes, 48 seconds companies like if you could throw I think I think Nishant has already elaborated. Nishant has mentioned uh did you mention the number? 40:57 40 minutes, 57 seconds Yes. Yes. 800 to 900 cr. So the number is between 800 to 900 cr from Dubai and there is a uh an expected inflow from Zari Agrochemicals of about 273 cr. 41:10 41 minutes, 10 seconds Yes. 41:11 41 minutes, 11 seconds So you add that up and that's a pretty substantial reduction in debt. That will happen throughout the next financial year. Yes. 41:18 41 minutes, 18 seconds Um and sooner the better is our endeavor but that will happen uh throughout the next financial year. 41:26 41 minutes, 26 seconds Understood sir. Un. All right, thank you. That's that's all from my side. 41:31 41 minutes, 31 seconds Thank you for the opportunity and all the best for the future quarters. Thank you. Thank you. 41:37 41 minutes, 37 seconds The next question is from the line of Rishi Gupta from Gold Stone Capital. Please go ahead. 41:45 41 minutes, 45 seconds Yes, sir. We can't hear you. Can you speak little louder please? 41:53 41 minutes, 53 seconds Congratulations. Hello. So, we can't hear you. Okay. 42:04 42 minutes, 4 seconds I'm sorry to interrupt. Sorry, your voice is not audible to us. Okay. Okay. 42:12 42 minutes, 12 seconds Hello refresh. Hello. 42:15 42 minutes, 15 seconds Hello. Are you So your voice is not audible. I just request you to speak little louder please. 42:22 42 minutes, 22 seconds Hello. Are you able to hear me now? Yeah. Now it's better. You can go ahead. 42:26 42 minutes, 26 seconds So Yeah. Uh I wanted to congratulate uh both the people and the outstanding 42:34 42 minutes, 34 seconds members on the floor that deliver provided and uh what about the IPO of Ji 42:44 42 minutes, 44 seconds infra uh how it will be because it will help in mocking up the fence and I read about uh 42:53 42 minutes, 53 seconds Ji agro has converted around 46% L in Goa. 42:59 42 minutes, 59 seconds We read about it. So could you throw some light on this like 900 cr you will 43:07 43 minutes, 7 seconds be 275 cr of the area and 900 cr from the budget we'll be able to leverage in the 43:15 43 minutes, 15 seconds next year and what about how it will be that is grow for IPO for J for 43:27 43 minutes, 27 seconds the first question about the IPO of uh Zari Intra World. I just want to place on record that there is no such proposion on the table. 43:37 43 minutes, 37 seconds We are not contemplating any IPO uh of Zari Intraorld. 43:43 43 minutes, 43 seconds We have already laid out a road map for repatriating the funds from our Dubai project. 43:53 43 minutes, 53 seconds And there is one question that you asked about Zari Agro. I think uh we are not aware of what you asked. Uh maybe you 44:01 44 minutes, 1 second should uh write directly to the company and and get the clarifications. 44:09 44 minutes, 9 seconds Okay. So uh business we see a growth of 20% next year. 44:19 44 minutes, 19 seconds Sorry, we we are we we are not making any uh statements about the growth of the business and what percentage of growth 44:26 44 minutes, 26 seconds that we will we have we are not making such forward-looking statements on on this call. Our endeavor right now is to 44:34 44 minutes, 34 seconds provide you a detailed account of our quarterly performance allow you an opportunity to compare our performance 44:42 44 minutes, 42 seconds with the previous quarter as well as the same quarter in the previous year. We have given you numbers and data for nine 44:49 44 minutes, 49 seconds monthly performance and there are some plans in the offing and particularly in relation to deleveraging which has been 44:57 44 minutes, 57 seconds um a very important point for investors on which we have provided uh updates. 45:04 45 minutes, 4 seconds Beyond this uh we are not uh giving any statements on what could be the future 45:11 45 minutes, 11 seconds growth in the top line or bottom line of the company and I think we would encourage that you stay connected with 45:18 45 minutes, 18 seconds us you follow the updates about the company the disclosures that we make from time to time 45:25 45 minutes, 25 seconds um as well as our 10our quarterly calls which will give you a decent insight about how we are tracking Thank you. 45:37 45 minutes, 37 seconds The next question is from the line of Pratik Sha from Investing Alpha. Please go ahead. 45:44 45 minutes, 44 seconds Hello. Yeah. Hi, sir. I hope I'm audible. Yes, please. 45:49 45 minutes, 49 seconds Yeah. Uh sir, Zari Agrochemical saw 21% of increase in value. So what synergies 45:58 45 minutes, 58 seconds are being leveraged across the fertilizer business and how does this strengthen your position in the uh agree 46:05 46 minutes, 5 seconds input sector I think this question is best uh posed to Zari agro chemicals 46:14 46 minutes, 14 seconds uh I don't think it is appropriate that we answer uh these questions we are Zari Agro is an associate company right uh we 46:23 46 minutes, 23 seconds do not manage Zari Agro chemicals we have an investment uh and that's it and I think uh you should ask this question 46:31 46 minutes, 31 seconds to Zari agrochemicals no problem sir uh I got it uh so okay that's it that's my from myself thank 46:40 46 minutes, 40 seconds you thank you that was the last question for the day I would now hand the conf it's 46:46 46 minutes, 46 seconds over to management for closing comments over to you sir so thank you everyone for joining this call we appreciate your participation. 46:57 46 minutes, 57 seconds If you have any questions, please feel free to reach out to us and our investor relation advisor MSGIR. Thank you everyone. 47:06 47 minutes, 6 seconds Thank you on behalf of Zari Industries Limited. That concludes this conference. 47:10 47 minutes, 10 seconds Thank you for joining us and you may now disconnect a lines. Thank you. Love you.