Aarti Industries Ltd (NSE: AARTIIND) Q3 2025 Earnings Call dated Feb. 03, 2025
Corporate Participants:
Nishid Solanki — Investor Relations, CDR India
Suyog Kotecha — Executive Director & Chief Executive Officer
Chetan Gandhi — Chief Financial Officer
Analysts:
Rohit Nagraj — Analyst
Vivek Rajamani — Analyst
Abhijit Akella — Analyst
Aditya Khetan — Analyst
Arun Prasad — Analyst
Surya Narayan Patra — Analyst
Kumar Saumya — Analyst
Jignesh Kamani — Analyst
Nitesh Dhoot — Analyst
Pratik Oza — Analyst
Bhavin Soni — Analyst
Ankur Bhadekar — Analyst
Kushal — Analyst
Presentation:
Operator
Ladies and gentlemen, good day and welcome to the Aarti Industries Q3 FY ’25 Earnings Conference Call. As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the call, please signal an operator by pressing star then zero on your touchstone phone. Please note that this conference is being recorded.
I now hand the conference over to Mr. Nishid Solanki of CDR India. Thank you, and over to you, sir.
Nishid Solanki — Investor Relations, CDR India
Thank you. Good morning, everyone, and thank you for joining us on RP Industries Q3 FY ’25 earnings conference call. Today, we are joined by senior members of the management team, including Mr. Suyog Kotecha, Executive Director and Chief Executive Officer; Mr. Chetan Gandhi, Chief Financial Officer.
We will begin the call with an overview on the developments for the quarter, followed by highlights on the financial performance, which would be provided by Mr. Kotecha. Post that, we shall open the forum for Q&A where the management will be discussing queries of the participants.
Just to share a standard disclaimer, certain statements that may be made in today’s conference call may be forward-looking in nature and a disclaimer to this effect has been included in the results presentation, which has been shared earlier and also uploaded on the stock exchange websites.
I would now like to invite Mr. Kotecha to share his perspectives. Thank you, and over to you, Mr Kotecha.
Suyog Kotecha — Executive Director & Chief Executive Officer
Thank you, Nishid. Good morning, everyone, and welcome to our earnings call for Q3. Before I commence, I would like to wish all of you a very successful and Happy New Year 2025. I hope you have had an opportunity to review the quarterly presentation that was upload on the exchanges over weekend.
Overall, we reported resilient performance with sequential improvement in EBITDA in Q3 FY ’25. While pricing pressures impacted margins despite strong volume growth, we proactively addressed this through cost efficiencies, product diversification and geographic expansion. Volumes in the non-energy business grew by 14% Y-o-Y and 8% Q-o-Q, while the growth in the energy business came in at 10% quarter-on-quarter basis.
Our growth in energy business actually could have been better, but for a large-volume bulk shipment, which got spilled over from late December to early-January. In the non-energy business, we are seeing a volume-led recovery both on Y-o-Y as well as on Q-o-Q basis.
However, pricing pressure continues across various product chains, especially in agrochemical intermediates. End-use applications like dyes, pigment, polymer additives continue to exhibit positive demand trends. We also believe inventory levels for agrochemicals have normalized in most end-markets now. And further, in order to diversify our product base and to augment our utilization levels, we are engaged in the development of new products, especially within the value chain where we recently expanded our capacity.
Additionally, we are also pursuing backward integration into select downstream products to enhance our margin profiles and ensure better control over cost and supply. Polymer and additives continues to be on the recovery path. Despite some uncertainty surrounding 2025 demand due to potential US policy changes, we remain focused on increasing our market-share in the global markets, especially in the US and Japan for Polymer and segment. The pharma business has sustained the positive trajectory following the recovery in FY ’24.
Coming to energy business where MMA remains a key part of our product portfolio, we are diversifying our solution offerings and customer-base to adapt to the evolving market. The big gasolines and cracks in Q3 impacted boosting economics. However, we anticipate improvement in Q4. We have also established our bulk shipment capabilities to serve larger clients more efficiently and are expanding our customer-base in US, Europe as well as Middle-East.
The broader geographic reach is now helping us mitigate regional slowdowns and is supporting sustainable growth. As indicated in previous communications, the ramp-up of MMA volumes will be gradual but consistent. Our numbers show healthy improvement in Q3, giving us optimism for the future. We are also focusing on a solution-based approach, leveraging our expertise to optimize performance and positioning MMA as a high fuel additive. These efforts fueled by our commitment to growth and innovation will position us well for long-term success in this evolving market.
Recently, we also had two other major developments, which I would like to highlight. We signed two renewable energy power purchase agreement for solar and hybrid power with and. With this, AIL’s renewable share in total power purchase is expected to exceed 75% by Q1 FY ’27 and will also accrue significant savings in power cost. One of the contract will start delivering within this calendar year versus the second one is expected to start in Q1 FY ’27 timeframe.
The second major development, re-sustainability and Recycling Private Limited and RP Circularity Limited, a wholly-owned subsidiary of AIL have joined hands to establish transformative first-of-its-kind India joint-venture company for driving the development of plastic material recycling facilities, which will use advanced chemical recycling technologies. This partnership is committed to achieving the resource recovery capacity of 500 tonnes per day-by 2030 and will focus on chemically recycle the difficult to recycle plastic waste materials into niche and high-value chemical compounds which have good demand potential.
Coming to financial performance, revenues for the quarter were at INR2,035 crores, 14% higher on Q-o-Q basis, while 8% higher on Y-o-Y basis. EBITDA grew by 17% Q-o-Q to INR236 crores. Growth was primarily led by volumes, operating leverage and product mix improvements. PAT was reported at INR46 crores. This was impacted by high finance costs due to ForEx mark-to-market loss of INR23 crores on a long-term ECB loan arising due to rupee depreciation. It may be noted that this impact is due to the accounting practices, while the actual outflow would happen over a period of nine years. Also, given the fact that company is a net exporter, the depreciation in rupee should actually benefit the company in the coming quarters.
Coming to capex and capacity expansion projects, broadly our capacity expansion, it is aligned with the growing market demand. Our projected capital expenditure for FY ’25 remains unchanged. As we had mentioned in the last quarter, INR1,300 crore to INR500 crores with over INR380 crores got spent in Q3 and about INR1,020 crores in the nine-month year till-date timeframe.
Let me run-through the updates in respect of key capacity expansion projects and sort of initiatives. Our plant expansion from 30 to 45 KTPA got commissioned this quarter is expected to yield benefits now in the subsequent quarters. Our expansion of ethylation facility from 8 to 10 KTPA to about 25 to 30 KTPA and also got commissioned this quarter. This expansion enhances our ability and flexibility to utilize the overall ethylation capacity for diverse range of ethylation and propyration-based products, while also enabling the scaling up of production volumes within the value chain. Ramp-up of both of this capacity will continue through Q4 and going-forward.
The MMA capacity expansion to 200 KTPA had already been completed, positioning us to be the market-leader and also increase our share in this high-growth segment. MMA capacity can also be expanded further if required with minor investments and we will remain agile to-market shifts and address that opportunity. Additionally, various projects in Zone 4, our new greenfield sites are being executed in phased manner and the commissioning is expected gradually through FY ’26.
We are pleased to announce that our new pilot plant at Zone 4 has already begun its commercial operations. It will play a crucial role in fueling new product development and allowing us to innovate and diversify our offerings going-forward. Overall, we have room to scale-up several production chains without incurring significant capex. Higher asset realization offers a significant upside potential and we remain focused on achieving scale in each of our value chains to realize gains from operating leverages.
As shared in the last meeting, let me reiterate that we are on-track and confident to meet our guidance shared for both short-term as well as mediate term. Our focus is on sustainable mid to long-term growth targeting roughly 20% to 25% CAGR EBITDA over three to five years time-frame. And we continue to leverage RNG to explore new products, seek long-term partnership, implement our cost-improvement initiatives and targeting high-growth sectors such as circularity, battery and electronic chemicals.
That will conclude my initial remarks. I will now request the moderator to open the forum for a question-and-answer session. Thank you.
Questions and Answers:
Operator
Thank you very much. We will now begin the question-and-answer session. Anyone who wishes to ask questions may press star and one on their touchstone telephone. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use handsets while asking questions. Ladies and gentlemen, we will wait for a moment while the question queue assembles.
The first question is from Rohit Nagraj from B&K Securities. Please go-ahead.
Rohit Nagraj
Thanks for the opportunity and congrats on good volume recovery as well as absolute EBITDA expansion on a sequential basis. Our first question is on MMA. Just to understand what would be the threshold spreads of gasoline or gasoline crude at which NMA becomes more competitive and at the same time, MTB becomes more acceptable as a fuel? Thank you.
Suyog Kotecha
So on MMA front, we had mentioned in the last conference call that anything where NAPA gasoline differential remains in two-digits, we still have a play. I think in the last quarter, actually see the gasoline spread were still continue to remain under pressure. They were at roughly 9.5 levels and we were able to still deliver certain volumes to the market. So I guess that is an indication of our competitiveness of this product in the market when it comes to octane boosting. As we are seeing Jan, we are already seeing improvement in gasoline spread and that should enable the competitiveness of this product against some of the other boosting products even more in the Q4 and the going-forward timeframe.
Rohit Nagraj
Just a clarification on this, what would be the price differential between MMA and MPV now?
Suyog Kotecha
It’s — it’s ever-evolving both products, the price variation is there almost on sort of month-on-month, quarter-on-quarter basis, but roughly you can assume that MMA at any point in time would be roughly 1.8x to 2x of MTB pricing.
Rohit Nagraj
Okay, fair enough. My second question is, so we have — and we have commissioned the or ethylation capacity. How are we going to source the ethylene oxide and what is the kind of commitment that we have from Reliance in terms of incremental requirements?
Suyog Kotecha
So your question was on ethylation capacity and?
Rohit Nagraj
So effectively we’ll need ethylene oxide, if I’m not wrong for the capacity to operate. So in terms of sourcing of the same incrementally, how are we placed to get it from Reliance in terms of commitments or the volumes, incremental volumes that we’ll require.
Suyog Kotecha
No, I think I would like to correct you there. We don’t need ethylene oxide for our ethylation capacities. We need ethylene for which we have a pipeline supply and we have security in terms of supply where we have a long-term contract with our — with our suppliers.
Rohit Nagraj
Sure. That’s it from my side. Thanks a lot for answering the questions and all the best.
Suyog Kotecha
Thank you.
Operator
Thank you. The next question is from Vivek Rajamani from Morgan Stanley. Please go-ahead.
Vivek Rajamani
Hello. Thank you, sir, for the presentation and for the opportunity. Two questions from my end. Firstly, in terms of the pricing pressures that you mentioned, could you give some more color in terms of how it’s moved if you compare two quarters back and what you saw in 3Q and potentially what you’re seeing quarter-to-date? That’s the first question.
Nishid Solanki
So overall on the pricing pressure, frankly, I think things haven’t evolved significantly. I think the overcapacity situation that we have in many of our product chains, especially in China is a mid to long-term problem and that will take some time to resolve. And so no major incremental changes when it comes to quarter-on-quarter movement, especially in some chains like PDA, right, or even for that matter, some of the chains which are linked to NCB and nitro toll wheel where Chinese capacity remains pretty robust. There we continue to face pricing pressure.
As you go more downstream on intermediates, again, where the capacity situation is — overcapacity situation is quite significant. There also the pricing pressure remains quite robust. But as I had mentioned in the previous call, I think we’ve got used to the new reality. Based on our competitiveness, we are able to retain or increase market-share in many of our value chains. And that’s how we are addressing this pricing pressure. As the demand picks up and the capacity utilization at a global level start getting better and this will go off and that should enable higher profitability percentage across the portfolio.
Vivek Rajamani
Thank you, sir. That was very clear. The second question was on MMA. I think you mentioned that you’re focusing on customers in the US, EU, EME and Israelis regions. Could you just give some more color in terms of the progress being made in getting some of these larger refineries on-board? And just as an extension to that, you mentioned also that you have a bulk shipping capability that you put in-place. So just wanted to better understand, once you have some of these longer-term customers in-place and you have these new capabilities, how would that affect your margin profile vis-a-vis the spot margins and you know-how quickly do you think you’ll be able to kind of get some of these benefits going into fiscal ’26? Thank you.
Suyog Kotecha
So I think on the first part of that question, we have had some successes during last quarter. Our exports to US have gone up where we have been able to develop a couple of strategic customers for this product. I think you guys would be able to see that through our export data anyways. And so that’s one region where we’ve got success. I think Middle-East continues to remain one of the market, which was the first market which we have scaled-up and our efforts continue to develop European and Southeast Asian market for this particular product. And that’s on the overall geography as well as the customer diversification.
I think from a pricing point-of-view, we have better understanding now in terms of what kind of pricing models and what kind of pricing strategies work, which are linked to ultimately downstream economics for refineries and oil and gas traders. And as we evolve those pricing models, the margin profile will also become more stable in the mid to long-term kind of timeframe. And in Q3, as I mentioned, despite significantly lower gasoline spread, we were able to produce and push-out more material compared to Q2 and that is what is giving us confidence that the growth potential for this product remains pretty robust. However, at the same time, I do want to highlight that given the nature of the business, it does take time to crack new markets and new customers. And that’s where we are saying that the ramp-up in the overall volume will be gradual and not a one-off event.
Vivek Rajamani
Okay, sir, just one small clarification. The capability on the bulk shipping, that would come through from Q4, correct? It wasn’t there significantly in Q3.
Suyog Kotecha
No, in Q3 itself, we have done some bulk shipments. So the capability got established. Of course, is getting optimized as we speak. As we do more-and-more such bulk shipments, our ability to optimize the overall supply-chain cost that the product does require very special capability to enable sort of long-distance bulk shipments and we are optimizing on that capability, which will reduce our operating cost of doing this bulk shipments. And that benefit might come in Q4 and onwards timeframe, but the capability itself got established in the Q3 itself segment.
Vivek Rajamani
Sure, sir. Thank you so much and all the very best.
Suyog Kotecha
Thank you.
Operator
Thank you. Next question is from Abhijit Akella from Kotak Securities. Please go-ahead.
Abhijit Akella
Yeah, good morning and thank you so much. So on the plastic recycling project we have announced a short while back, the 500 tonnes per day of peak capacity, could you please help us understand what sort of revenue and maybe EBITDA margin potential this might entail?
Suyog Kotecha
So overall on the RE Aarti Private Limited, a JV between RESL and Aarti Circularity, I think let me do a step-back first. In the last couple of calls, we had stated our intent from a long-term strategy point-of-view to focus on certain strategic bets. I think circularity was one such theme and that’s the context in which Aarti Circularity Limited got established and it’s 100% owned subsidiary of AIL Circularity Limited.
For Aarti Circularity Limited as an entity, we are looking at multiple opportunities in sustainability, circularity and recycling space. One of the most promising opportunity was in advanced chemical recycling of plastic waste and that is where we thought you know, our partnership made a lot of sense and the JV with RESL got established. From a — the JV just got incorporated one big pack. I think JV is in the process of establishing its own business plan and come up with concrete numbers.
From an aspiration point-of-view, both partners have stated their aspiration to complete 100 TPD in first 18 months timeframe and 500 TPD by 2030. I think the exact revenue potential and profitability potential, we would come back at a later-stage as the JV does its own business planning exercise. The only point I will make is from an opportunity size point-of-view, it’s huge, right? If you look at the amount of plastic waste that gets generated in the country, we are talking about hundreds of KTs, right, per month.
And just at a Hyderabad facility, which RESL operates, I think they handle anywhere between 8,000 to 10,000 tonnes per day of waste. And even if you take 10%, 12% conservative plastic in that we are talking about 800 to 1,000 tonnes per day of plastic waste getting aggregated on a daily basis at one site itself. And they have these sites across the country, across international locations. So from an opportunity point-of-view, we remain very excited.
We are focused on making the technology work. There is no at-scale player today in the country, which does plastic waste recycling using chemical recycling technology. And we are focused on getting that technology proven and once it’s proven, then the scale-up happens in a modular kind of fashion. So, Abhijit, I’m not giving you the exact top-line, bottom-line number at this stage. But as the JV completes its business planning exercise over the course of next few months and fine-tune the technology, we’ll come back with more details.
Abhijit Akella
Sure. Thank you. My other question was on the financials. The gross margin seem to be significantly lower on a sequential basis, but offset by a decline in other expenses, quite a sharp decline. And in that context, I was just wondering, you’ve articulated this cost optimization plan in your presentation, INR100 crores INR150 crores — INR150 crores to INR200 crores, sorry. So just wondering how much of that is already done and how much is still left to be done in the context of the numbers we are seeing year?
Suyog Kotecha
Yeah. No, I think we continue to remain on-track in terms of our overall fixed as well as variable-cost reduction plans. I think we are kind of, 30% 40% there in terms of that journey. I think it still remains a lot of work to be done, but we are confident of completing that exercise, as I had mentioned in the last call-in the next sort of 12 to 18 months kind of timeframe and that’s on the cost initiatives.
On the gross margin, I just want to highlight that I think between — given I think there are large-volume shipments now and some of them also get sort of slipped from 1/4 to another quarter. So rather than looking at quarterly gross margin level would ideally encourage to look at sort of at least a Nine-Month or a longer-term timeframe margin average numbers, they are better indicative of business performance. And one additional issue, which was peculiar to Q3 was in Q2, because our MMA volumes had dropped quite significantly, there was certain buildup of analyne, which is a key raw-material for MMA, which was — which happened at a relatively higher-cost, which got liquidated in Q3. So that also had partial impact on gross margins.
But in an overall sense, I think if you look at a Nine-Month gross margin levels, they are potentially a better indicator of company’s business performance versus quarterly gross margin numbers.
Abhijit Akella
Got it. Thank you. Just one last thing, if I may. Just on the — sorry, the — yeah, the specialty Chemicals project and the Zone 4 greenfield that we’ve been articulating, if it’s possible to share any further color on these in terms of product category or addressable market size, how easy it is for us to capture that in that market. That would really help us understand or appreciate the opportunity a little bit better. Thank you so much.
Suyog Kotecha
So Zone 4, you know, as we mentioned, this is now sort of advanced stages of execution and will get commissioned. There are multiple blocks within zone 4 and they will get gradually commissioned over the course of next 12 to 15 months. The first block of pilot plant already got commissioned. The next block, which will get commissioned is actually multipurpose plant and a calcium chloride plant. And then the remaining blocks, which are dominantly in value chain will get commissioned till sort of Q1 FY ’27 kind of timeframe.
If you look at the potential product portfolio in that zone, broadly it’s focusing on three value chains. One is the chlorotolveen value chains, chains and for the chlorination value chains. I think in the three value chains, we have a roughly product portfolio of anywhere between 25 to 30 products because we will go significantly downstream compared to restricting ourselves at a base molecule level itself. So we have a product portfolio of roughly 25 to 30 products, which will cater to predominantly, I think three end-markets, agro, pharma and dyes are the three large end-markets which we are targeting through this 25 to 30 products. We have region product mix significantly compared to what was originally envisaged two years back.
And in that context, now the domestic export split of that product portfolio is expected to get revised. We have a higher domestic target is sort of 60-40 kind of a split when it comes to domestic export because many of these products are currently imported in the country. There is no other large player who manufactures these products, especially as we go more downstream of chloropulsion and. And the overall configuration of that zone itself, we have made it in a such a way where it’s kind of a fungible and flexible.
So our total capability to produce in terms of number of products would be far higher, but we could select the product depending on the margin profile and the demand profile at particular given timeframe. So the overall zone kind of becomes a little bit multipurpose kind of an asset. So the product end-market and the domestic export ratio will keep varying. But broadly speaking, given all the changes made in the configuration of the zone, we feel pretty confident of achieving commercial utilization in the first one, 1.5 year kind of timeframes.
Abhijit Akella
Thank you. That’s very helpful. I’ll come back-in the queue for more.
Operator
Thank you. Next question is from Aditya Khetan from SMIFS Institutional Equities. Please go-ahead.
Aditya Khetan
Yeah. Thank you sir, for the opportunity. Sir, just a couple of questions. Sir, first is onto the nitrotoluene. Sir, volumes have declined both on Y-o-Y and on quarter-on-quarter basis. Any particular reason, sir?
Suyog Kotecha
So I think we’re going through the commissioning exercise and that because it this was a brownfield expansion and not a greenfield expansion, we had to manage the shutdown of the asset accordingly and that’s — that has some impact on the capacity utilization numbers that you’re seeing for Q3 specifically. As we move forward into Q4, you will definitely see ramp-up in the anti-chain capacity utilization numbers.
Aditya Khetan
Okay. And sir, on to the agrochemical side, you had mentioned that the pricing pressure still persists. If you can highlight, sir, how much percentage of the product portfolio we are having competition from China or which segment like in agrochemicals only we are witnessing erosion of margins.
Suyog Kotecha
So look, I think ag chem the situation is potentially aggravated, but I think in our segmental portfolio, you also have now domestic export split across most of our business segments. And in that context, if you see, you know, energy business, for example, it’s more of a market development exercise rather than a competition with China. So that’s part of the portfolio is a different challenge compared to a pricing pressure from China. Ag, yes, especially both global as well as the domestic market, we do end-up competing with China given their significant capacity over there.
I think in the dice pigments printings market, 75% of our market actually comes in the domestic market. Only 25% is export. Even within that now with high orback getting acquired by Indian entity, we expect our share of domestic market to go up for that particular end-market where our ability to compete with China is much, much better.
Now pharmaceuticals, 99% is domestic, you know so the pricing sometimes does get linked to import parity pricing from China, but still from a management of customers and overall market dynamic point-of-view, we are relatively better-positioned. Polymer and additives is one segment where we do end-up competing with China head-on because 85% of our business in that segment comes from exports. And so the entire dichlorobenzene chain and the PDA chain where bulk of the volume ends up going to Western market, especially in US and Japan.
That’s where we do face pressure from China. But there also we have established certain strategies to counter that pressure. But that is one segment where we are exposed to Chinese competition quite significantly. I hope that covers broadly the five segments which cover more than 90% of our product portfolio.
Aditya Khetan
Then on to the capex figures also, so we have reduced it from INR1,200 crores to around INR1,000 crores. So which are the areas like we had to so cut the capex?
Suyog Kotecha
We haven’t reduced the capex number. So INR1,000 crore number that I talked about INR1,020 is for nine months. I think overall year, we are retaining exactly the same guidance as we had talked about last-time, which is INR1300 crores INR1500 crores, we will end-up spending that amount of capex. So there is no one particular area where we have optimized on the capex. I think zone 4 reconfiguration that we have done, we still — we still maintain the overall capex guidance for Zone 4.
There are certain debottlenecking initiatives internally within our existing manufacturing sites where we have put relatively higher hurdle rates right now. And because of that, there might be some optimization on the capex front. But broadly, the number remains what we had committed to in the earlier quarter conference call, which is INR1300 crores INR1500 crores for this financial year.
Aditya Khetan
Got it. Got it. Sir, on to the PNCB business segment, sir, we have heard from the government that they have banned low-quality imports and domestic low-quality also of paracetamol. So does this give fillip to our PNCB business higher-volume growth or higher margins in any in any sense?
Suyog Kotecha
Well, look, I think we — it’s a very robust domestic market, which is continuing to grow in sort of strong double-digits. As I said, in that segment, 99% of our product goes into domestic market and any initiatives that government takes to strengthen our downstream customers will definitely help us both from demand and margin standpoint. It is a — it’s a globally competitive on a net basis, as a country, we are an importer in PNCV. Country does import the same quantity of PNCV every year. And in that context, the pricing does get set to some extent linked to import parity. But — but as a segment, you know your initial hypothesis is right that both the demand as well as margin profile remains quite robust in that segment.
Aditya Khetan
Okay. But sir, like so banning of imports of paracetamols, so that should definitely benefit PNCB. So we are expecting like some higher-volume growth like earlier we had grown by almost around 10% to 12%. So with this move, you think like this growth can accelerate to, 15% 20%?
Suyog Kotecha
Look, I think India, again, as a country is also net exporter for not only PNCB, but also for downstream chain, right, the likes of PAP and paracetamol. So I think maybe what you are characterizing there may not fully reflect into that story. If we had been import dependent on a downstream chain, then that could have given significant boost. But as a country, because we have significant downstream capacity and we also do decent amount of exports for both PAP and paracetamol and that will not have very significant impact.
From our point-of-view, I think if you look at our capacity utilization levels, then we are roughly around 75-odd percent kind of capacity utilization numbers for MCB. And in the coming financial year, we expect to ramp that up to 80% plus kind of levels. That’s the kind of volume growth we are seeing in that value chain.
Aditya Khetan
Got it. Sir, just one last question, sir, on to the MMA business, we note that the spreads have fallen to some depressed level. So we are witnessing a recovery. Sir, post the normalization when — so whenever the spreads will come by first-half of ’26, do you see any further levers or fundamental changes which are happening, which could improve the spreads or like it will only come to the normalized level.
Suyog Kotecha
Look, I think you know the spread of downstream sectors are linked to variety of factors which are frankly beyond AI’s domain. We are talking about gasoline NAFTA spread, which have its own dynamics linked to refinery market globally and to large extent geopolitics as well, right. What we remain focused is to ensure that we are able to place the volumes irrespective of the market situation, of course, market situation does have significant impact on both demand and margin.
But given our penetration levels when it comes to overall Octane booster market globally, especially compared to some of the other booster, our penetration levels are significantly low. So our first and primary focus remains on how do we get more customers, how do we penetrate into more regions and how do we create multiple business models to serve these new customers in new geography. That will remain our primary focus.
What is giving us confidence increasingly is that even in suppressed market, we are able to place volumes to a decent degree. And that’s what is giving us optimism that we should be able to ramp-up our capacity utilization numbers over the course of next few quarters.
Aditya Khetan
Just one clarification on capex, sir, you said that INR1,200 crores. But in the presentation, I believe, sir, it is mentioned INR1,000 crore for ’26 complete versus for FY ’25, it is around INR1,300 crores. Just a clarification, you mentioned INR1,200 crores for ’26 also.
Suyog Kotecha
Chetan, why don’t you…
Chetan Gandhi
Okay. So the capex for this year, the Nine-Month capex is around INR1,020 crores for financial — nine months financial year ’25. We are on-track in terms of the guidance given of around INR1,300 crores INR1,500 crores of capex in this financial year, which is FY ’25. As regards FY ’26, the capex would be a number which will be a bit lower than INR1,000 crores. So that is how the capex numbers are going to be there. I guess this clarifies the question.
Aditya Khetan
Okay, sir. Yeah.
Operator
Thank you. Next question is from Arun Prasad from Avendus Spark. Please go-ahead.
Arun Prasad
Good morning. Thanks for the opportunity. So my first question is on your long-term guidance of INR1,800 crores EBITDA. Can you just approximately indicate what is the revenue for this INR1,800 crores EBITDA?
Suyog Kotecha
What was?
Chetan Gandhi
The equivalent revenue.
Arun Prasad
Revenue — top-line for this equivalent corresponding to this EBITDA.
Suyog Kotecha
So that’s — that number of EBITDA is based on EBITDA assumption of 14% to 15%, right? So you can back-calculate the revenue on the basis of that. And Arun, as I had mentioned previously, we like to focus on absolute EBITDA and not necessarily give revenue guidance because bulk of our raw materials are linked to crude, right, benzene analyline, which are two of our largest raw materials. The pricing is linked to crude and depending on how crude behaves, I think our top-line can vary significantly. And that’s where we sort of — that’s where I think our intention always is to talk about absolute EBITDA of crores where we have lot more control versus talking about top-line.
Arun Prasad
Correct. No, the reason I’m asking is for this kind of 15% EBITDA margin and our — obviously our overall gross fixed assets will be close to INR9,000 crore INR10,000 crores. So the asset turns comes to be around 1 to 1.2. So is this the normalized asset turns which on which we’ll be working for the future projects as well?
Suyog Kotecha
Sir, I think as a management, we are focused on improving ROIC, not necessarily I think asset turn is one of the metric, but I think what we look at more and continue to sort of have initiatives to improve is our ROIC number and ROC numbers. And as we have indicated in our mid-term guidance, our objective is to hit 14% 15% kind of ROC and ROIC numbers. And I think we remain quite confident of hitting those numbers in our three-year plan.
Arun Prasad
Okay. Okay, because if asset turns remain same and margins also remain same, then expansion in ROCE won’t be coming. So something has to give in, right, to get a better ROCs.
Suyog Kotecha
No, if you look at the overall asset block point-of-view, I think after the Zone 4 commissioning from next year onwards, our actual capex will see tapering of numbers, right? We are at INR300 crores to INR500 crores right now will go down to INR1,000 crores next year and the capex subsequent to bank will be linked to the growth opportunities that we are pursuing. But on existing product portfolio, there is a tapering of capex. At the same time, lot of the growth both in top-line and bottom-line, significant chunk of that is coming from existing assets. So if you put all of that together and we feel based on our bottom-up plan that we put together for the next three years, 14% to 15% kind of ROCE numbers on EBITDA of INR1,800 to INR2,200 is doable.
Arun Prasad
Understood. My second question is more on the near-term. So on the tariffs, sorry, I joined late, if I missed, can you please help explain within our portfolio, who will be the — I mean what — which category or which products or which chemistry will be the winners or losers in the — in your account for the status because there will be winners because we will be competitive more against these countries against which US is putting tariff. There will be losers because these countries will be dumping those products, which they couldn’t sell years and they will be dumping somewhere in the other export markets. So how should we look at this overall scenario with respect to our portfolio, our portfolio.
Suyog Kotecha
So as you yourself answered this question, Arun, partially, I think the scenario is mixed and I think it’s very early to have a definitive perspective. I think we are still looking at evolving market landscape and how these tariffs play-out in the global market. At a very superficial level, if you look at it, I think broadly two of our segments, polymer and additive is a segment where we have significant exposure to US market, I think could ideally see tailwind because there we compete against China for most of our products going into US market. And the second is where some of the intermediates like ICEMBA, where we are a major supplier of those intermediates, could see some tailwind because there also one of the prominent end-market is US and not only tariffs, but also regulatory levers could also play a role in terms of growth of these came molecules.
But as we say that, if you do sort of peel the onion two, three levels deeper, I think there will be repercussions of these tariff barriers onto other markets, right, as the competition intensity in other markets may increase as people try to push their capacity and that could have implication when it comes to pricing and margins in some of the other markets. Also, how people react to US tariff itself could have an impact on the overall demand profile within the US market. So on a superficial level, that’s what I could answer at this stage. But I think all of us need to wait-and-watch to see how overall scenario plays out to really assertain the impact of the latest initiatives taken by US government.
Arun Prasad
Okay. Okay, understood. Finally on rupee depreciation, if rupee will depreciate for that, we should be on a rupee basis, we should be seeing higher realization or this will get somehow discounted on the pricing itself. Is the demand good enough to realize this no dollar strengthening now?
Suyog Kotecha
So I think I’ll answer question on that two front. One, in general, rupee depreciation from a long-term business growth point-of-view is beneficial for AI given we have a significant export exposure. From a business standpoint, rupee depreciation definitely helps us. And the second part of that question is, what’s also important is the relative depreciation against Chinese, right? I think we don’t have to necessarily look at only INR, USD depreciation, but we also have to look at relatively Chinese currency depreciation versus INR. And that is where the real competitive advantage comes around. We are sort of closely evaluating both.
I think from a USD point-of-view, we have actually depreciated and that will help the business going-forward. But if you look at relative depreciation of Chinese currency, then the depreciation quantity is actually lot smaller, which means the Chinese have also depreciated their currency. And given especially now the tariff issues that have got launched into last few days, we have to closely look out for how Chinese currency behaves over the course of next few months and that will potentially a assertain how much it will sort of benefit or not benefit AI.
Arun Prasad
Understood. Thanks for answering all the questions. All the best.
Suyog Kotecha
Thank you.
Operator
Thank you. Before we take the next question, we’d like to request participants to please limit your questions to two per participant. Should you have a follow-up question, we request you to rejoin the queue.
The next question is from Surya Narayan Patra from PhillipCapital India. Please go-ahead.
Surya Narayan Patra
Hello. Yeah, thanks for this opportunity, sir. My first question is on the base business, excluding of the MMA. Hello. Am I audible?
Suyog Kotecha
Yeah, you’re audible.
Surya Narayan Patra
Yeah, okay. So in the base business, we have seen obviously there is a kind of a pricing pressure and all that and a consistent drag in the recent quarters. But the recent month data points indicating obviously there is an improvement. But if you can give some sense of what is happening there in the base business, what is the kind of volume value mix is changing? And also within that, how qualitatively the product mix changing? And how should one think going ahead about it? So if you can give some sense of that would be helpful, sir.
Suyog Kotecha
So on the base business, Surya, the pricing levels have stabilized, right? As I mentioned in the last quarter, potentially, you know, they’ll obviously remain at a level which we do not like, but at least they have stabilized. And now what we are doing is trying to get the volume gains back, which is helping improve the base business portfolio. As we get our asset utilizations up and volumes back, we are also able to optimize the product mix to ensure that we are diverting capacity where we are expecting better margin profiles. And that will start to play-out in the next few months.
For example, in ethylation where we have 25 to 30 KTPA capacity, we have ability to produce variety of ethylation and propylation-based products. So at the base situation levels, once we are able to reach a certain levels, then we start playing the product mix game, which is where we are able to optimize profitability much better. And that the same scenario will get repeated across value chains.
Our first priority is to get the utilization to a certain respectable levels. And once we start hitting that, then try and optimize product mix to ensure that we are further able to optimize on the on the margins from a product mix point-of-view. The base pricing upgrades itself, I think they will come when they come, right, as the demand in the overall global market catches up with the capacity, at that point in time, the base pricing upgrades itself will come, but we are not banking on it right now.
Surya Narayan Patra
Okay. So that means in a way the gross margin pressure what we have been seeing so-far, at least even if the price remains at these levels, because of the improving product mix, we are going to see an uptick definitely in the subsequent quarters?
Suyog Kotecha
Ideally, yes.
Surya Narayan Patra
Okay. Second point is on the MMA business, sir. So you have said couple of things. You said that there was a bulk shipment that has been delayed and deferred to the following quarter. That is one. And despite that, this quarter number — volume number is one of the best so-far in a way export is concerned. And also simultaneously, you have indicated about new customers getting added to this business. So then going ahead and this quarter also witnessed the spreads — lower spreads between the NATA and the existing gasoline. So given all these things, it looks like that next following quarters, obviously, there is a seasonal uptick that we will see, but much beyond that seasonal uptick that we should see in terms of the volume and the overall business in M&A. Am I right saying so?
Suyog Kotecha
So I think two clarifications. One, if you’re looking at the capacity and utilization trend chart that we now provide as part of our analyst presentation, it talks about production number, not about sales numbers, right? So when we said that one of the bulk shipment got delayed from late December to early Jan. However, that volume will be captured in the production number shown in that slide because their production number not sales numbers. That’s one clarification.
Surya Narayan Patra
Okay.
Suyog Kotecha
The second part of your question, yes, I think as we see a stabilization of or improvement in gasoline trend, ideally it should encourage more-and-more customer to try out our product or people who are sort of using our product, increase the volume in terms of usage of this product. And that remains our focus areas. And at the same time, we want to be transparent in communicating that the gasoline NAFTA spreads that we saw post starting of Russia-Ukraine war for 18 to 24-month kind of time-frame, they’re unusually high, right? I think we don’t expect the market to go back to these levels of gasoline spread. If you look at last 10 year, last 15-year historical average gasoline spread numbers, then that is potentially a more indicative of where market could stabilize. And our objective is to make this business work and thrive at those gasoline differentials as well.
Surya Narayan Patra
Sure, sir. One last bookkeeping data point, the same question. See, can you give what is the overall export number for the quarter and in the previous quarter, sir?
Suyog Kotecha
Chetan?
Chetan Gandhi
You want the export number for the company as a whole?
Surya Narayan Patra
Yeah. So that is the data point that we have been sharing. So last quarter also that I missed it. So if you can share last two quarters.
Chetan Gandhi
Yes, export for this quarter was roughly around half of — it was almost around INR1,000 odd crores.
Surya Narayan Patra
Okay, this is INR1,000 crores that I should take, sir.
Chetan Gandhi
Yeah, for the quarter.
Surya Narayan Patra
Okay.
Chetan Gandhi
Yeah. And for the previous quarter, it was fairly a similar number.
Surya Narayan Patra
Okay. So despite the — despite the MMA seeing a kind of quite spike this quarter, our export numbers are remaining same. Is that right?
Chetan Gandhi
Yeah.
Surya Narayan Patra
Okay. Sure, sir. Yeah. Thank you.
Suyog Kotecha
Surya I think I would just again reiterate that I think the kind of shipments we are doing on MMA front are very large-value shipments and that’s why I’m again highlighting that the bulk parcel shifting from December to Jan does tweak this number quite significantly.
Chetan Gandhi
Surya I just want to recorrect one number. On last quarter, the export numbers were roughly around INR900 crores and this quarter around INR1,000 crore — INR1,009 crores, just to be clear.
Surya Narayan Patra
Okay. Sure, sir. Thank you. Thank you. Thanks very much. Wish you all the best.
Operator
Thank you. Next question is from Kumar Saumya from Ambit Capital. Please go-ahead.
Kumar Saumya
Hi, sir. Good afternoon. Sir, just couple of questions from my side. In the recycling business, do we have any indication, what is the capital commitment that we will be putting in that JV?
Suyog Kotecha
Sorry, can you please repeat your question?
Kumar Saumya
Yeah. So is there any indication to you, what is the capital commitment that we will be putting in that JV with our JV partner?
Suyog Kotecha
So for the first year, both partners put together have committed INR100 crores, INR50 crores each into the joint-venture.
Kumar Saumya
Okay. And this will be the capacity that you are indicating that you’ll be doing in next 18 months?
Suyog Kotecha
Yes.
Kumar Saumya
Okay. And sir, secondly, the Zone 4 expansion, is it this — are we sticking to a similar outlay, key, INR15 billion for Phase-1 and then we’ll be coming up with about 40 45 kt capacity. So are we holding on to that earlier guidance or have we changed that internally?
Suyog Kotecha
No, so I think I answered this partly in one of the previous questions. I think the entire Zone 1 reconfiguration that we have done, I think we have built the ability to produce — I mean, in the earlier presentations, you would have seen we had a Phase-1 product and Phase-2 products. Phase-1 were mostly chlorotolveen and downstream and Phase-2 were actually diechlorotolvenes and downstream products. What we have done is within the existing capex, we have built-in flexibility and ability to produce both of these chains in one-go, right?
So that means the absolute capacity of individual molecules might go down, but our flexibility to produce any of the OCT PCT downstream or DCT downstream product is there in the existing capex itself, which allows us to select the products where the margin profile is best. That’s how I think we are planning to scale-up and commercialize Zone 4, treated more like a flexible multipurpose block versus a dedicated chemistry block because given the market volatility, it gives us lot of flexibility to optimize the utilization levels as well as margins.
Kumar Saumya
Got it. Sir, lastly a bookkeeping question. How much of our ECB loan is unhedged?
Chetan Gandhi
So I would have an exposure of around $140 million, which will be majorly unhedged. But this is something which will have a repayment of almost around nine years.
Kumar Saumya
Got it. Thank you, sir. That will be helpful.
Operator
Thank you. Next question is from Jignesh Kamani from Nippon Mutual Fund. Please go-ahead.
Jignesh Kamani
Just on the MME side, as you mentioned highlighted that our Q-o-Q revenue — our volume growth is around 10 percentage, while if you take our production data, our volume growth was around close to around 78 percentage. So around 65% to 70% deviation is purely because of the bulk shipment which move-in early-January or we are building up inventory also for the upcoming good demand?
Suyog Kotecha
No, we are building inventory as well. It’s a combination of delaying shipment as well as buildup of inventory of final products.
Jignesh Kamani
Understood. So can you help — how is the — you can say volume — can say production volume growth in-line y-o-Y on nine months?
Suyog Kotecha
So I think on a nine-month basis, if you look at MMA, at least at a production level, we were roughly at 59 KT for the previous financial year versus this year Nine-Month — first-nine months, we are roughly at 88 KT. So that is the kind of growth we are seeing from a production point of.
Jignesh Kamani
Okay, understood. Thanks a lot.
Operator
Thank you. Next question is from Nitesh Dhoot from Dolat Capital. Please go-ahead.
Nitesh Dhoot
Hello? Thanks for the opportunity. So with regards to your SPV investment, so here Aarti Industries is transacting with a company where Mr. Gogri, the promoter of Aarti Industries, has a pre-existing interest. So if you could just clarify how much is the promoter stake in Brazil Green energy? And any specific reasons why Aarti Industries couldn’t directly have an investment in Brazil given green energy instead of Mr. Gogri having an investment?
Suyog Kotecha
No, so I think these two are separate matters. I think what we are doing as Aarti Industries Limited is we are looking at a group captive opportunities to purchase renewable power compared to the power that we are currently purchasing from the grid. And for that a formal process was run for both solar as well as hybrid and the both parties, Clinmax and were selected based on that formal process. Wherever we got leased a rate in terms of per kilowatt-hour over a 15 to 20-year kind of supply agreements.
And I would not comment on Mr. Gogri’s personal investments at this stage. But the only thing I can tell at this point in time, it’s a competitive process run to select the partners for group captive projects and that’s the outcome of it. The supply that is going to come from Clean Max hybrid group captive is going to be significantly larger. I think the supply that’s going to come from Brazil is dominantly solar, which will also come in a much faster timeframe within this calendar year itself. And both projects put together will deliver significant cost-savings to AIL as part of their power cost-saving initiatives.
Nitesh Dhoot
All right. Thank you.
Operator
Thank you. Next question is from Pratik Oza from Systematix. Please go-ahead.
Pratik Oza
Yeah, hi, sir. Thank you for the opportunity. Just wanted to understand what’s our hedging policy? And given that the rupee is depreciating and it might depreciate further, so the MTM loss which we saw of INR23 crores, can you explain the same amount of number in Q4?
Chetan Gandhi
So on the hedging policy, I mean, if you look at it, we are a net exporter. So our exports is almost around INR4,000 plus crores every year. So one of the way to look at hedges from a long-term perspective is that you keep some part of the liability open. Unfortunately, the accounting principle prevails, which says that the benefit which you get on the exports over a longer period of time is not to be recognized. However, in case of the liabilities, the same has to be — the variation has to be accounted in the — on the day it happens or at. So which is where it is. So from a structural perspective, the rupee depreciation despite keeping an ECB open, it will benefit us over a long-term perspective. There will be a quarter-on-quarter depending on the rupee depreciated with some benefit available in the top-line in which you could be visible.
As regard to your second question in terms of the impact which could come in the subsequent quarter, yeah, I mean, we’ve seen December quarter-ending at a rate of 85 or 265 or something. We’ll have to see in terms of at what rate the quarter — the March quarter will end. So the open exposure of around $130 million will be kind of revaluated or revalued basis the delta differential between the December and March quarter and appropriate account for that will be the. It’s more of a practice which will be followed, which has been followed year-after year and should continue to be there.
Pratik Oza
Okay.
Operator
Thank you. Next question is from Bhavin Soni from Anand Rathi. Please go-ahead.
Bhavin Soni
Hi, am I audible?
Suyog Kotecha
Yeah.
Bhavin Soni
Hi, sir, I just wanted to wanted some more light on the gross margin. So how much would be the effect of buildup and how much would be the effect of if you have taken any pricing hit on MML for pushing volume because there is some pricing adjustment strategy mentioned in the PPT.
Suyog Kotecha
Yeah. So I think both of these are linked to each other. I think more representative gross margin numbers is potentially in the range of, I think 13% odd kind of a range, EBITDA margin and that correspondingly sort of getting converted into gross margin numbers. But difficult to segregate the impact because both are linked with each other. Other. I guess in Q4, you will get a much better handle of the gross margin numbers as the inventory impact of analys has taken care in the Q3.
Bhavin Soni
Okay. Lastly, just from an industry perspective, like if you could just highlight on global capacities in MMA and NTBE and like, would MMA going-forward take much share from NTV or no?
Suyog Kotecha
So I think both are frankly not comparable. MTB, we are talking about if my understanding is right, more than 30 million tons of global capacity versus MMA global capacity remains significantly less than 1 million tonnes, right? So I think difficult to compare them. MTB has been around for decades and very well-established product to be used as versus MMA is a challenger and recently started in last few years. And both have their own — their own pros and cons, but given the penetration level and the recency that we have on the MMA, we feel confident of scaling up that business over the next few years.
Bhavin Soni
Okay, thanks.
Operator
Thank you. Next question is from the line of Ankur Bhadekar [Phonetic] from ULJK Financial Services. Please go-ahead.
Ankur Bhadekar
Hi, sir. Thank you for the opportunity. So a couple of questions from my side. My first question was, we are seeing a good volume growth in nitrochlorobenzene. So is this volume improvement mainly due to better nitric acid availability or is it like the result of a structural increase in-demand.
Suyog Kotecha
No, it’s a — it’s a combination of both. I think, yes, we do face nitric acid supply challenges, you know, given the kind of supplier portfolio that we have in the country. But I would say the increase that you’re seeing is a combination of both increased reliability as well as increased demand from downstream segments. I think we discussed this in some of the previous question. One of the major downstream use of NCB, especially PNCB is into paracetamol. And as the consumption in that segment goes up, the demand for PNCB in the domestic market also goes up.
Ankur Bhadekar
Okay. So my second question was how complex are the products that we are going to manufacture in the fluorochemical space in terms of like number of reactions or process chemistry or R&D? Like if you could provide some light on that part?
Suyog Kotecha
So difficult to answer the question at a generic level. I think the only thing I can say is that all of our new product development that are happening, they are relatively complex, which involve at least four to six chemistry steps before we reach the final product step, right? So from starting with a bulk product like NCB or a DCB or a PDA or NT, which is which is what we call sort of bulk chemicals. From that four to five reaction steps downstream is where we are doing most of our new product developments.
Ankur Bhadekar
What would be the margin profile of those products like on an average, can you give some like ballpark number?
Suyog Kotecha
Again, would vary product-by-product, right, the multiple, we’re talking about 25 30 different products. So it is difficult to generalize the answer. But in general, as you have more steps in terms of reaction steps as we go through the manufacturing process, the margin profile should ideally improve and look better than bulk chemicals.
Ankur Bhadekar
All right. That’s it from my end. Thank you so much.
Operator
Thank you. Next question is from Kushal [Phonetic] from Shah Securities. Please go-ahead.
Kushal
Thank you for the opportunity. My question is in terms of what is the profile of firstly? And secondly, in the last con-call, we talked about we are also providing a solution-oriented business in these particular molecules. So could you explain what is the kind of solution we provide to our customer and how difficult it is to replicate that solution for someone — some other player.
Suyog Kotecha
I think the solution, you know, varies depending on the — depending on the nature of the customer. In some cases, it could be supply-chain complexities, ability to handle large-volume cargoes over a large distance while maintaining the quality of the products. In some cases, it could be a formulation for a specific customer depending on their sort of product portfolio available and what properties they are looking to meet in their end cargoes. So I think the nature of the solution we provide varies depending on the customers and that we are targeting.
Kushal
Thank you for the answer. And my second question was on what kind of polycent profile does monometal have? Does it increase the polycent of the fuel? And also could you compare it with the other kind of boosters that are available in the market like as a customer, why would I use aluene over some other boosters? What are the benefits of it?
Suyog Kotecha
So I think from a pollution profile, there is no adverse impact on our customer. And usually this product is blended at less than 1% to 2% in the final fuel component. So the overall impact is significantly lower. The true USC of this product is the higher octane number, right? So we are talking about octane number, which is 400 plus kind of a range versus a conventional gasoline will typically have run-in the range of 90 odd numbers and that is the USP of this product because of which we are able to create different solution profiles for our customers.
Kushal
Thanks for the answer. I have heard that certain geography has banned this kind of product. So do we anticipate that the current or positions where we export it can ban it in future?
Suyog Kotecha
No, we do not anticipate that. I think that is also a little bit misunderstood in the global market. Sometimes the ban is also linked to ability to handle the products, right? So as we educate more-and-more countries port operators and customers on how to handle these products, we are able to scale-up usage of this product. The fact is the countries like you know, US or the countries like in the Middle-East are able to use this product suggest that the product is commercially deployable in most of the gas againstle globally.
Kushal
I’m thankful for the answers. That was very deep explanation. Thank you.
Suyog Kotecha
Thank you. Next question is from Abhijit Akella from Kotak Securities. Please go-ahead.
Abhijit Akella
Yeah, thank you so much for the follow-up. Just a couple of quick bookkeeping questions. One is on the net-debt number for the end-of-the December quarter, if you could please share that. And second on the tax-rate, given we’ve had a kind of a tax benefit throughout the year, what sort of numbers should we work with for fiscal ’25 as well as ’26?
Chetan Gandhi
Yeah. So tax-rate — I’ll take the tax-rate question first. The tax-rate in this year, considering the lot of projects are getting commercialized and there’ll be some IT depreciation benefit will continue to remain the way it is current. So it will be marginal negative at or closer to zero. Next year, it should be between more like a low single-digit kind of stuff at least at this point of time, that is what I’ve been surging. On the debt numbers, we are fairly similar to around INR3,600 crores of debt broadly around that on-net debt basis.
Abhijit Akella
Sorry, that was INR3,300, right?
Chetan Gandhi
Currently at INR3,600 crore.
Abhijit Akella
INR3600 crore. Thank you so much, sir. All the best.
Operator
Thank you very much. That was the last question. I would now like to hand the conference back to the management team for closing comments.
Suyog Kotecha
Thank you. Thank you. Thank you everyone for taking your time to join us on this conference call. I think the company is much stronger with renewed, bigger on excellence, innovation, passion and remination. As a global partner of choice, which is our vision, we will continue to serve and expand our robust client base, while ensuring sustained value-creation for our shareholders by optimizing our assets and venturing into newer business opportunities.
I hope we have been able to address all of your queries. If you have any further question, feel free-to contact our Investor Relations team and we will do our best to address them. We look-forward to connecting with all of you again in the next quarter. Thank you. Thank you once again.
Operator
Thank you very much. On behalf of Aarti Industries Limited, that concludes the conference. Thank you for joining us. Ladies and gentlemen, you may now disconnect your lines.