Bodal Chemicals Ltd (BODALCHEM) Q3 FY23 Earnings Concall Transcript

Bodal Chemicals Ltd (NSE:BODALCHEM) Q3 FY23 Earnings Concall dated Feb. 14, 2023.

Corporate Participants:

Ankit Patel — Executive Director

Mayur Padhya — Chief Financial Officer

Analysts:

Aditya Khetan — SMIFS Institutional Equities — Analyst

Rohit Sinha — Sunidhi Securities — Analyst

Anand Venugopal — BMSPL Capital — Analyst

Saket Kapoor — Kapoor Company — Analyst

Vaibhav Badjatya — Honesty and Integrity Investments — Analyst

Presentation:

Operator

Ladies and gentlemen, good day, and welcome to the Bodal Chemicals Limited Q3 and Nine Months FY 2023 Earnings Conference Call. This conference call may contain forward-looking statements about the company which are based on the beliefs, opinions and expectations of the company as on date of this call. These statements are not the guarantees of future performance and involve risks and uncertainties that are difficult to predict.

[Operator Instructions] Please note that this conference is being recorded.

I now hand the conference over to Mr. Ankit Patel, Executive Director at Bodal Chemicals Limited. Thank you, and over to you sir.

Ankit Patel — Executive Director

Thank you very much. Good evening, everybody. On behalf of Bodal Chemicals Limited, I extend a very warm welcome to everyone for joining us on the call today. On this call, we are joined by our CFO Mr. Mayur Padhya; and SGA, our Investor Relations Advisors. I hope everyone had an opportunity to go through the financial results and investor presentation which has been uploaded on the stock exchange and our company’s website.

We will give you a quick overview of the recent developments in the chemical industry, and then Mr. Mayur Padhya will walk you through the operational and financial performance for the Q3 and nine months FY ’23. Global inflation is weighing heavily on the end market, like textiles, paper, pharma, plastic, agrochem, water treatment, etc. Consumption of end-user industries has been sluggish due to the overall slowdown in the global market. Uncertainty about the European market is further re-accelerated the demand scenario of the chemical industry.

The two major markets, the U.S. and European market have been slow for more than six months. Going to multiple headwinds from rising inflation to uncertain geopolitical scenarios. When it comes to China, the policy of zero COVID has slowed their economic growth for a while. While China’s growth slow which has affected the prices of key commodities around the world, including dyestuff and dye intermediates. We are India’s largest integrated manufacturer of dyestuffs and dye intermediates and hold a meaningful market share in the world. In today’s environment where Indian suppliers are emerging as preferred customers globally, we’ve been able to hold our leadership position.

Coming straight to the operational performance. Overall business performance for nine month FY ’23 has been weak, as the company’s total revenue stood at INR1,178 crores, a de-growth of 20%, due to the subdued performance of dye intermediates and dyestuff chemicals. The price volatility of key raw materials has affected many textile players in India. Resulting in sub-optimal capacity utilization, inventory destocking and slow exports.

Coming to dye intermediates. At present our intermediates like H-acid and vinyl sulphone pricing has been volatile, putting strain on the industry player. For nine month FY ’23, total revenue from dye intermediate chemicals stood at INR258 crores. H-acid and vinyl sulphone prices were near INR422 and INR263 per kg in the Q3 FY ’23. Being an integrated dyestuff manufacturer, we produced 25 dye intermediate products and over 40% of these intermediate capacity is captively consumed resulting in cost advantage for our dyestuff products.

The balanced capacity of dye intermediates is served in both domestic as well as global markets. Many intermediate manufacturers in India are still under pressure due to slow demand. Going forward, we can expect nominal improvement in the dye intermediate business. Coming to our dyestuff business, and application industries like textile, leather, paper and other stuff consuming industries have not been performing well during the last few quarters. All leading textile company are facing global headwinds which have curtailed outlook for the dyestuff products. The dyestuff business for nine month FY ’23 stood at INR442 crores.

Coming to basic chemicals, more than 50% of our basic chemical is captively used for dye intermediates. Our overall basic chemicals contributed around INR134 crores. Coming to the Chlor Alkali business. The chlor alkali business continues to perform reasonably well with the revenue of INR229 crores for the nine month FY ’23, driven by healthy volume uptick. During the quarter, the realization of caustic soda has been normalized, production were halted for three to four week due to the implementation of technology upgradation.

Our chlor alkali business will contribute meaningful business in the coming period on back of a technology upgradation. We foresee demand for caustic soda to remain healthy from FMCG, textile and paper industries, since very few players are present in North India. We have a — we will have a competitive edge towards certain extend. Coming to benzene derivatives and sulfuric acid projects. As highlighted in the earlier call, our main goal is to replace imports and capture business in the pharma and agrochemical spaces, where PNCB and ONCB are used.

We will be installing the capacity of 63,000 tons per annum of benzene derivatives. With Saykha Greenfield Project is perfectly well, and it’s expected to start by September 2023. Most of our subsidiaries have reported a weak performance due to soft demand, whereas Sener Boya in Turkey has reported a decent performance of INR56 crores of top line in nine months. In a medium to long-term view, the subsidiaries we have been making for business, however, in short-term, we are expecting a modest performance. Our priority would be to endure these headwinds and focus on starting the Saykha project at September 2023.

We have been moving up the value chain and working relentlessly towards diversifying the business from our core dyestuff and dye intermediate business to other specialty chemical products like benzene derivatives. Once we have visibility of demand of our product portfolio and new site is stabilized, we will restart the sulfuric acid project. Manufacturers and exporters in India are having a challenging time managing the overall cost. Over the years, chemical industry has been — has seen a transformation. Long-term story of India remains intact and chemical industry is poised to grow from here on. However, we expect overall demand to remain grim for the short period.

Thank you. And now I hand over the call to Mr. Mayur Padhya, to walk you through the financial performance.

Mayur Padhya — Chief Financial Officer

Good evening, everyone. The overall performance of the company has been muted for the quarter gone by. Our standalone performance for Q3 FY ’23 is average. Total revenue for Q3 FY ’23 stood at INR307 crores. EBITDA stood at INR25 crore in Q3 FY ’23. Net profit for the quarter stood at INR2 crores. Our standalone performance for nine months FY ’23 is ahead. Total revenue for nine months FY ’23 stood at INR1,156 crores. EBITDA stood at INR100 crore in Q3 FY ’23, sorry, nine months FY ’23.

Net profit for the quarter stood at INR29 crore, it’s a nine months ending INR29 crore. Our consolidated performance for Q3 FY ’23 is ahead. Total revenue stood at INR318 crore for Q3 FY ’23. EBITDA stood at INR27 crore for Q3 FY ’23 with a margin of 8.4%. Net profit for the quarter stood at INR2 crore for Q3 FY ’23. Our consolidated performance for nine month FY ’23 is as follows. Total revenue stood at INR1,178 crore for nine month FY ’23, this include export of 33% and domestic of 67%.

EBITDA stood at INR114 crore in nine month FY ’23, a de-growth of 37%. Net profit for the nine months stood at INR35 crore against INR70 crore of nine month FY ’22. Nine months FY ’23 performance of the key subsidiary was subdued except for Sener Boya. Sener Boya has reported a total income of INR56 crore and has reported noteworthy profitability.

Performance of other subsidiary has been lower than expected due to soft demand. Segment-wise performance on a consolidated basis for nine months FY ’23 is as ahead. Dyestuff revenue stood at INR442 crores. Dye intermediate revenue stood at INR258 crore. Basic chemical revenue stood at INR134 crore. Chlor alkali revenue stood at INR229 crores. TCCA revenue stood at INR17 crore for nine month FY ’23. Total production volume on a standalone basis for the nine months FY ’23 is as ahead.

Dyestuff reported 10,877 metric ton, dye intermediate reported 9,892 metric tons. Basic Chemicals stood at 1,16,870 metric tons. Chlor Alkali stood at 59,314 metric tons, and TCCA 726 metric ton.

With this, I conclude the presentation and open the floor for further questions-and-answer.

Questions and Answers:

Operator

Thank you very much, sir. [Operator Instructions] We take the first question from the line of Aditya Khetan from SMIFS Institutional Equities. Please go ahead.

Aditya Khetan — SMIFS Institutional Equities — Analyst

Yes, thank you for the opportunity. Is my voice audible?

Operator

No, it’s not clearly audible, Aditya. Could you switch to handset mode and talk, please. Aditya, are you still there?

Aditya Khetan — SMIFS Institutional Equities — Analyst

Hello. Now is it audible?

Operator

Yes.

Mayur Padhya — Chief Financial Officer

It’s better.

Aditya Khetan — SMIFS Institutional Equities — Analyst

Sir, my first question is on the dyestuff and dye intermediate volumes. Sir, for the quarter, what we are witnessing that the dyestuff volume has almost become half as compared to on Y-o-Y basis. Where in the dye intermediate volumes, they are still down by roughly around, you can say, 40%, 50%. So what is the basic reason for decline in so much like volumes in dyestuff and dye intermediate business? And also just adding to this only, so the TCCA volumes also like from 351 metric tons last year, it has fallen to around 134 metric tons. I just want to understand how is the demand shaping up right now? And why there is so much decline into the production volume numbers?

Mayur Padhya — Chief Financial Officer

Dye intermediate and dyestuff both our related business. Whenever dyestuff’s demand is solid at the same time dye intermediate demand will be there. So mostly, dyestuff is exported to Europe, America and the major other user is China. And presently, we witness that the U.S. is a bit soft. Europe very much slow and China is also facing issue because of zero COVID policy. So demand is very low compared to last year, and this has affected the production also.

So initially, we go on producing, but after one or two months, we found that take-up is not there from the market, and there is no reason to go on producing and block the funding inventory. So to the extent, we can fail to that extent we are producing now. So this is the main reason why dye intermediate and dyestuff is lower compared to last year. And this is not the Bodal specific scenario. Across the industry, if you have seen the result of other companies, there is also de-growth as far as volume and profitability, both is concerned.

As far as TCCA is concerned, over there, there is not much issue with demand in U.S.A., but there is the issue as far as availability of container for export. And some of our customer has agreed and they have arranged container from U.S.A. And to that extent, we are producing and exporting that quantity.

Another reason, see, earlier, particularly in summer season, there is a demand locally also available. But during the last quarter, here, we have winter. So local consumption is almost at a negligible level. So local supply chain was not available and local demand was not there. So here also, presently plant is working, but there was an issue of container availability. And that’s why we are not able to fully perform or fully utilize our capacity.

Presently, there is an order and factory is working. But as we have witnessed, there is no continuous production is possible. Now there is no issue as far as plant or setup of product is concerned, but issue is just related to market. Hope I have covered everything, whatever you have asked.

Aditya Khetan — SMIFS Institutional Equities — Analyst

Yes. And just want to know, so just now the demand is weak. So considering if the demand goes up and things become normalized. So can we expect the production volumes again to go back to that levels of quarterly run rate of 6,000, 7,000? And you also mentioned regarding the short-term pressures, and you also highlighted into the presentation that the short-term could be weak. So you’re referring for the next two quarters or for the next one quarter? Just wanted to know that.

Mayur Padhya — Chief Financial Officer

Presently for one quarter, after one quarter, what will be the scenario world over [Phonetic] that is difficult to predict. So when we refer to short-term, that is one quarter.

Aditya Khetan — SMIFS Institutional Equities — Analyst

It is one quarter. Okay. So next quarter also, we can expect a similar sort of production level and post that from Q1, we can expect an update.

Mayur Padhya — Chief Financial Officer

Current quarter, there will be somewhat better production, particularly chlor alkali product and basic chemicals. Because in last quarter, there was some extraordinary effect in chlor alkali because of the technology upgradation and capacity expansion implementation. So almost 70%, 80% of October get wasted rather utilized in this technology upgradation and we couldn’t manufacture for that month. So because of that, there was a lower production.

And in basic chemical, last quarter, November was a month, where we took an annual shutdown for government agencies, boiler inspection and somewhat the maintenance. So that disturbance won’t be there as far as current quarter is concerned. And there is a slight improvement in demand as far as dye intermediate and dyestuff. It’s not significant or considerable, but negligible or slight improvement is there. So we can witness somewhat better quantum in current quarter compared to last quarter.

Aditya Khetan — SMIFS Institutional Equities — Analyst

But do you think, sir — so this quantum of improvement in demand could again be offsetted because of the recent Turkey situation, because it is said that the Gujarat dye players are much impacted because of this, because — so the players were exporting to Turkey. So that improvement in demand could be offsetted from division?

Mayur Padhya — Chief Financial Officer

Maybe that time will say, but it is a really important issue for the whole industry because the maximum export from India of dyestuff is happening to Turkey. And because of this earthquake major consumer is being definitely affected. So there will be somewhat lesser demand. But out of the total export to world over from India, this can be about, say, 10% to 15%. So that will have somewhat negative effect.

Aditya Khetan — SMIFS Institutional Equities — Analyst

10% to 15% of overall exports of dyestuff goes to Turkey. Sir, what would be the — our contribution of exports to Turkey?

Mayur Padhya — Chief Financial Officer

Our contribution is about say, 10% to 15% of the total export that is happening from India to — it’s rather 15% to 20% contribution of Bodal.

Aditya Khetan — SMIFS Institutional Equities — Analyst

Okay. So sir, again next quarter our export volumes would again be impacted by another 20% of Turkey? Hello?

Operator

We’ve lost the connection for Aditya. In the meanwhile, we’ll move to our next question. That’s from the line of Rohit Sinha from Sunidhi Securities. Please go ahead.

Rohit Sinha — Sunidhi Securities — Analyst

Yes. Thank you for taking my question sir. So first thing, I would like to know that everyone right now is talking about reopening of China will benefit chemical sector, especially the commodity side. So how we are seeing this? And how and when it’s going to reflect in our numbers on standalone and also on the subsidiary side. Any take on that?

Ankit Patel — Executive Director

So the problem — the COVID problem that was going on in China, that definitely impacted the Indian players because of the disturbance within China, the overall demand for many input chemicals, commodity chemicals business impacted. So there were some exports that were available for Indian market. So that once came to back normal in China, I feel that those exports available to India will be less, that will have a less pressure on the Indian players.

Rohit Sinha — Sunidhi Securities — Analyst

Okay. Also as we are — I mean, this ties are very much linked with the textiles industry. So can we get what kind of revenue exposure we have to the overall textile industry? And maybe what kind of feedback you are getting from your customer in this industry right now in terms of demand?

Ankit Patel — Executive Director

The dyestuff being sold to the textile is around this year, it will be around INR300 crores.

Rohit Sinha — Sunidhi Securities — Analyst

Okay. INR300 crore is till nine months?

Ankit Patel — Executive Director

No, for the — the annual number.

Rohit Sinha — Sunidhi Securities — Analyst

Okay. For FY ’22, you are saying?

Ankit Patel — Executive Director

Yes.

Rohit Sinha — Sunidhi Securities — Analyst

Okay. And — I mean, in terms of customer feedback, if you can highlight it to what kind of scenario they are facing and…

Ankit Patel — Executive Director

There are definitely volume pressures when it comes to textile industry. I think the main reason being — Europe being the second biggest consumer globally is going to — because of the war and all this going through inflation and going through a lot of imbalancing. So the overall demand that is usually coming from Europe is not really happening, it is really impacted big time.

So due to that, the overall textile consumption, garmenting point of view or processing of the textile point of view has been impacted since last about two, three quarters. Going ahead, it really depends on what happens with the war, how early it settle down and how early European countries are able to get back to normal. So I think as for the textile feedback from textile buyers or players now is definitely — that the demand of overall textile products, I think, will be impacted for at least two, three more quarters.

Rohit Sinha — Sunidhi Securities — Analyst

Okay. And when you are talking about export side, I mean just wanted to clarify, in the presentation, the nine month figure for domestic and export percentage revenue has been more or less same, 67% domestic and 33% export, whereas there’s been significant volume decline in different segments. So how to interpret this data? I mean, how we have maintained the revenue mix into most…

Ankit Patel — Executive Director

[Technical Issues] Our total volume has decreased — total revenue has decreased, so export number has also decreased. But overall contribution to export and local has remained more or less same.

Rohit Sinha — Sunidhi Securities — Analyst

Okay. And…

Ankit Patel — Executive Director

So 33% is of — the current quarter’s number is 33%.

Rohit Sinha — Sunidhi Securities — Analyst

Okay. And one last question. In terms of your this upgraded — technology upgradation in chlor alkali. So what kind of volume increase we should be expecting? And how much margin benefit, if at all will be coming from there?

Ankit Patel — Executive Director

See volume, earlier we were producing about 185 metric ton per day. And that has increased to about 235 metric ton per day. And going ahead down the line, we can reach to about 260 metric ton, 270 metric tons per day. So earlier annual production was in the range of 55,000 metric ton to 60,000 metric ton, which we can go up to 90,000 metric ton. That is the production number I’m talking about. So capacity is almost 1 lakh metric ton. So almost a 50% jump in volume is, we will witness going ahead.

Rohit Sinha — Sunidhi Securities — Analyst

Okay. And it would be — I mean, the utilization level would be how much, I mean you were taking in a gradual phase or how we should see the utilization level?

Ankit Patel — Executive Director

Yes. As I mentioned see, in October, we have inaugurated the new plant. And by December, we have reached 235 metric ton. So going ahead within two months, we are expecting we’ll reach to about 270 metric ton per day. So down the line two, three months, we will reach to optimum capacity that is possible over there.

Rohit Sinha — Sunidhi Securities — Analyst

Okay. And for FY ’24, we’ll be operating at full execution?

Ankit Patel — Executive Director

Yes.

Rohit Sinha — Sunidhi Securities — Analyst

And how much investment was there in this process?

Ankit Patel — Executive Director

See in acquisition. Hello?

Rohit Sinha — Sunidhi Securities — Analyst

Hello. Yes.

Ankit Patel — Executive Director

Yes. Correct. So there is — we spend about INR150 crore as far as acquisition is concerned. And another about INR160 crore, we spent for this modernization and capacity expansion as well as some normal replacement capacity. So total about INR310 crores we have spent.

Rohit Sinha — Sunidhi Securities — Analyst

Okay. That’s it from my side. Thank you.

Ankit Patel — Executive Director

Yes.

Operator

Thank you. [Operator Instructions] The next question is from the line of Anand Venugopal from BMSPL Capital. Please go ahead.

Anand Venugopal — BMSPL Capital — Analyst

Yes. Thanks for the opportunity. Most of my questions were answered earlier itself. So just I have one quick question. Like, if you could explain how the market for dyestuff and dye intermediaries improves from year on assets?

Ankit Patel — Executive Director

We expect the market to be in the similar range of demand, which was there in the Q3 of this year. At the moment, it is going quite flat compared to in Q3. Moving ahead also, we feel that at least for another few months, we don’t see any major turnaround, but we are hoping that after three, four months, a good demand phase should come.

Anand Venugopal — BMSPL Capital — Analyst

Okay. So you have earlier mentioned that the Ukraine — the slowdown in Europe, U.S. and China has affected the dye intermediates and dye [Technical Issues] high cotton prices affected these two dye intermediates and dyestuff?

Ankit Patel — Executive Director

So the volatility in the cotton prices also affect the textile segment where, again, after cotton is being used, the dyes are used to process the fabrics. So the volatility and especially the higher prices of cotton, definitely affects the textile market, because already, there are some volatile demand coming from different regions of the world. At the same time, the input, which is cotton, if it’s very high in price, then it’s not really affordable or viable. So that definitely has an impact.

Anand Venugopal — BMSPL Capital — Analyst

Okay. All good. Thanks.

Operator

Thank you. Our next question is from the line of Saket Kapoor from Kapoor Company. Please go ahead.

Saket Kapoor — Kapoor Company — Analyst

Yes. Namaskar sir, and thank you for this opportunity. Sir, firstly, sir, if you could explain that historically, when have the dyestuff industry been in this kind of scenario? And how have the cycle returned? What are the factors that will give signals to the investing community that the dyestuff market has — the correction is done with?

And earlier, sir, was it a — the rally, which we saw in — the demand which was there two, three quarters ago, was it a supply side issue because of COVID, that was addressed by the Indian players and especially by you, the numbers which we have done for last year? If you could explain that — If you could explain the thesis there, what happened two, three quarters back and what is the situation today? And how will we understand when the reversal will start happening?

Ankit Patel — Executive Director

So a similar time, I would say was, I think, between 2008 and 2012, that is when I think the numbers of dye intermediates and dyestuff companies were impacted. I think there was a lot of volatility and margins are really low. The reasons were different during those times, China had come up with big capacities, that was about 15, 20 years for them into this industry of dyestuff and dye intermediates in the year today.

And so that there was a lot of pressure coming from China, and especially all the incentives that were offered to them were also very different. So their business model of producing in dye intermediates, especially was very favorable for them. There were incentives in double-digits. Electricity was used to be very cheap. The labor used to be cheap. At the same time, they had expanded very, very huge.

So — and here are also few players have expanded. So that was a period where there was an extra capacity that generated in the global market. So that created a lot of pressure on the margins, especially. But by around 2012, ’13, the environmental issues which are neglected in China came on the surfaces and that is why the capacities had to be restricted [Technical Issues] expected. So then that kind of balanced out the capacities globally since then dye intermediates and dyestuff businesses are doing quite consistent until this particular couple of quarters.

Last year, what I see is that it was a time when overall global scenario had come back to a normal post-COVID and COVID kind of was very minimized and it did not have any global impact in a large manner. So overall demand coming from entire world was very strong. And the feeling was — everything was kind of coming back to normal. I think overall demand for — I think almost everything on this planet was very strong.

So that was the reason why, I think, two quarters went really well. But since then, especially the war that has happened in Europe, which again, Europe is its second biggest consumer after U.S. So these products mean the textiles and paper and leather all these are ultimately consumer products. And so textile, especially has been going through volatile times and volatile demands. So that is really given the pressure.

And another pressure is that China because of this COVID increase internally in the country. There was a lot of products. Some areas were disturbed. And due to that, many products were not being consumed locally. So again, there was extra product available in many chemicals, which was to be exported and India again being second, third largest consumers in all these products. It was many, many quantities are available here. So that also kind of created a little pressure. So a little extra supply in some chemicals and the overall demand coming down, especially from textiles, that has impacted the current scenario.

Saket Kapoor — Kapoor Company — Analyst

So sir, China, this problem has generated as the imports from China. This is what the understanding is that the opening up of the Chinese economy has resulted in substantial amount of import of dyestuff and intermediates globally. So this is the correct understanding. As for the reason why our capacity are lying low, our utilizing levels are low? And also the demand structure, both sectors have played.

Ankit Patel — Executive Director

Sir, demand is affecting — so demand to demand is affecting and creating all these effects, because Chinese products like no producer wants to slow down their plants or shut their plant until they reach a very low point. So — and to reach that low point or to realize that low point it takes months. And by the time that low point comes, where there is too much of excess supply available or already being produced by that time markets really go down.

So that has happened right now, where there was a lot of product available from India and China, where the overall demand has really slowed down. So there was piles of inventories that been kind of created in China and India, which ultimately, the overall consumption was very low and demand was low. So that is the — so I think once a better demand or a normalized demand will come. And all these [Indecipherable] inventories will dry down, then I think we can go back to the routine time, routing margins.

Saket Kapoor — Kapoor Company — Analyst

Sir, two small points. Firstly, sir, on the ADD front, does these circumstances requires the need of an ADD imposition? Or are we in any process of going through it or the period is too short to go? And how — what have been the import from China to the country, sir? Any competitive number you can give?

Ankit Patel — Executive Director

Antidumping is a little difficult in this case because it is not a consistent imports. If you look at last six to 10 years data, then it’s been — there have been times when product has been actually imported from India to China. So antidumping — to try for an antidumping is a little difficult in this case because it doesn’t really make sense when the product is also exported back to China at times. And — yes.

Saket Kapoor — Kapoor Company — Analyst

Correct, sir. Correct. And import number, can you help, sir? Do you have — how much quantity have been imported in last two quarters vis-a-vis the competitive number just to get the impact of the same?

Ankit Patel — Executive Director

Just about additional 10%, 20%, 30% product that comes in from China, obviously, it comes because it’s offered at a very cheap price because we have talked because the demand is low. So they just try to continue that their financial cycles, they even sell it at loss. So a couple of times can come. And I would say about H-acid, vinyl sulphone monthly numbers would be around 1,000 tons, 1,500 tons. Those are the kind of numbers that’s probably imported from China to India.

Saket Kapoor — Kapoor Company — Analyst

Sir, if I come to a two point about one is about the caustic soda and then for dyestuff industry sir, we are also a consumer of soda ash, just to manufacture that dyestuff, its soda ash also act as a raw material?

Ankit Patel — Executive Director

No. So we do not produce soda ash. We consume soda ash. So we…

Saket Kapoor — Kapoor Company — Analyst

Yes. That is what my question is about. Please sir…

Ankit Patel — Executive Director

Yes. So we don’t produce it, but we buy soda ash in large quantities, we buy from a local markets.

Saket Kapoor — Kapoor Company — Analyst

Sir, what is our annual requirement of soda ash currently and how much it has gone down over this last issuing period?

Ankit Patel — Executive Director

Soda ash approximately — approximate consumption is around 12,000 tons to 15,000 tons a year for us. So monthly about 1,000 tons to 1,500 tons.

Saket Kapoor — Kapoor Company — Analyst

Okay. And that has also gone down significantly.

Ankit Patel — Executive Director

Yes. The prices were impacted again last year because of the overall demand of almost everything. Soda ash prices have really shot up. And also, at the same time, coal prices and a lot of input prices have gone up and the freight prices and everything. That’s why the prices of soda ash has really increased but it has stopped going up, and it is kind of soften up around 36, 37, 30 year levels.

Saket Kapoor — Kapoor Company — Analyst

Okay. So our consumption has also fallen in percentage to be…

Ankit Patel — Executive Director

Yes. Our concern has definitely fallen, because we are — our utilization is not a routine, which is around 70%, 80% in the intermediate space.

Saket Kapoor — Kapoor Company — Analyst

Okay. And what is the current utilization level for us, sir, for the dyestuff space domestically?

Ankit Patel — Executive Director

Yes. For the last quarter, utilization was very low. And dye intermediates, utilization was almost 43%. For dyestuff, it was 35%. And for Basic Chemicals, it was about 70%.

Saket Kapoor — Kapoor Company — Analyst

Okay. And any color you can give for the month of January, sir? How have been these three numbers? Any ballpark number for dyestuff, intermediate and caustic?

Mayur Padhya — Chief Financial Officer

See, dye intermediate and dyestuff. So there is a slight improvement. And as far as Basic Chemicals, there is a handsome improvement.

Saket Kapoor — Kapoor Company — Analyst

That is debottlenecking due to which you explained earlier?

Mayur Padhya — Chief Financial Officer

Dye that’s…

Saket Kapoor — Kapoor Company — Analyst

For caustic, you explained that there’s some changes you did?

Mayur Padhya — Chief Financial Officer

Yes. Caustic, there will be good improvement. Yes. Because the last quarter, last quarter one month was get wasted because of the implementation of the new technology. So such disturbance won’t be there in current quarter.

Saket Kapoor — Kapoor Company — Analyst

Yes, sir. And for dyestuff, you were telling something, sir, I interrupted you. Please complete the dyestuff part.

Mayur Padhya — Chief Financial Officer

Yes. Dyestuff and dye intermediate, there will be slight improvement we are expecting, but not in a major way.

Saket Kapoor — Kapoor Company — Analyst

Okay. Any number you can give us, some ballpark number, whether in the 40s or lower than what we have exited in December?

Mayur Padhya — Chief Financial Officer

So maybe about 5% utilization can get improved from the last quarter’s level. Not much.

Saket Kapoor — Kapoor Company — Analyst

And for the chlorine part, sir, I think we have geographically located in the state of Punjab, wherein which you explained that we had an advantage other than the western part of the country where there is a huge influx because of extra for chlorine production. So how have chlorine played a part in our ECU, sir?

Ankit Patel — Executive Director

Chlorine, especially for us, is not something that creates any challenges. Usually, in Gujarat, chlorine is a bottleneck when it comes to chlor alkali business. But we have four pipeline buyers. We also have one more new plant joining to our complex. So chlorine, in fact, we have more demand for chlorine than actually our production that is going to be.

So chlorine — and there are many turnout buyers also turn, meaning, we sell by cylinders also. So there is enough market and also a little bit growing market. So chlorine is not an issue for us. So what I mean to say is it realizes — it has a better realization than in Gujarat. So a couple of months ago, the chlorine market here was under a lot of pressure because cost it was very high.

So chlorine market went down to minus INR12,000, minus INR13,000 to the consumer per ton. At the same time, in North in Punjab, especially, the prices only went down to minus INR6,000. So that was a big delta.

Saket Kapoor — Kapoor Company — Analyst

And currently, what is the situation, sir?

Ankit Patel — Executive Director

Currently, chlorine is around 0. So it has been corrected to around 0 levels in both Western Gujarat and also in North.

Saket Kapoor — Kapoor Company — Analyst

Gujarat also sir that things have changed, because I think the lower caustic production is there also the utilizing levels have gone…

Ankit Patel — Executive Director

Yes. So chlorine prices here in Gujarat are around 0.

Saket Kapoor — Kapoor Company — Analyst

No. That is because of the lower utilization levels for the caustic soda manufactured because of lower demand that is [Speech Overlap]

Mayur Padhya — Chief Financial Officer

So whether was the realization of caustic goes down, the chlorine prices improve. So that’s how the trend is in time, it could be a little different because — so now the effort will be to increase the chlorine prices maybe INR2,000, INR4,000 a ton or something. Usually, they are successful in the chlorine, caustic prices are affected. But I think this time, it’s not that easy because overall demand is a little question mark, I would say in caustic, chlorine everything.

Saket Kapoor — Kapoor Company — Analyst

Sir, you mentioned about one new buyers for your chlorine product in the vicinity. So okay, could you just quantify when it — what — which sector is coming up? And if you could elaborate more on the same for the uploading demand offtake?

Ankit Patel — Executive Director

So they are installing a CPW plant, which is traditionally a chlorine pipeline by — for almost all the plants across India. And we have four CPW plans buyers next to us already. And this is the fifth one that is going to come up. They have already applied for the environmental clearance. And I think it will take about 12 months for them to set up the plant during the clearance instead of the plant. So — and they are talking about buying around 60 tons of chlorine per day by pipeline.

Saket Kapoor — Kapoor Company — Analyst

What products, sir, I missed your point. Very sorry. TW?

Ankit Patel — Executive Director

It’s called chlorinated paraffin wax. It is CPW, it mainly goes into making cables.

Saket Kapoor — Kapoor Company — Analyst

Power cables?

Ankit Patel — Executive Director

It goes into making cable.

Saket Kapoor — Kapoor Company — Analyst

Cables mean — in the cable industry, power cables and other [Indecipherable]

Ankit Patel — Executive Director

Yes.

Saket Kapoor — Kapoor Company — Analyst

Okay. And lastly, sir, how is the global setup for caustic soda, sir? I think so there was some mount burning of capacity for Europe earlier and also when we looked at the earlier reports from some major chloro manufacturer, they were guiding for deficit for the caustic soda going ahead, taking into account the demand. So how should one factor in — and I think this is 1 million ton capacity added for the country also has created some bit of flux there. So how is the export opportunity there for us for the caustic manufacturers in the country? And global setup, sir, if you could give where are the capacities down and how can the country take advantage of this?

Ankit Patel — Executive Director

So the important point here is China, which has about 45% to 50% of the global share. You used to have 45% to 50% about 10 years ago. They have hardly grown because of the thermal power plant set of requirements, because of the environmental issues, permissions, etc., they have not really grown in the chlorate industry in China. So that’s one point. Second, in the same period, India went from about 4% to 5% to about 9% of the global capacities.

So the largest shareholder, I would say, has not grown in India, which was forced after U.S., Europe, China, port and India had an opportunity to take a good growth, which already has happened. Like you said, one momentum is being installed. So that’s one thing. Europe is definitely declining even before this war scenario Europe definitely has been on a decline mode and there is not too much of a growth coming from growth.

U.S. is there — some older clients have also been stopped in U.S., but at the same time, they are also modernizing some of the newer plants. I would say they are going flat or maybe growing a little. So overall, India has really got this opportunity in the last five to eight years, which has taken some of these new demands that has come up, not all the growth that has come up that has given the opportunity to Indian players, which includes the local consumption that has come up. We’ve seen a lot of chemical, agrochemicals, textile paper, all this growth in a 10 years in India.

India has been able to take a lot of share ever, there used to be a lot of imports to India, but now the scenario is now there are exports. So there has not been imports of costing in a long time here. In fact, last about three quarters, there has been consistent exports, at least from this Gujarat area. So the scenario has definitely changed where imports have turned into exports. So, I mean, that is why it is going through such a strong cycle where there are export opportunities and local demand has been consistently growing.

Saket Kapoor — Kapoor Company — Analyst

Right, sir. And if I look at your financial numbers, sir, if you could give me an understanding of the forex impact for this quarter and also for the nine months, how has forex impacted your numbers?

Mayur Padhya — Chief Financial Officer

Forex has not impacted much as far as numbers because we hedge everything. So we don’t keep any forex exposure open. So there is a book entry, we need to pass as per accounting standard. Otherwise, there is a negligible impact to the result.

Saket Kapoor — Kapoor Company — Analyst

Book entry means, sir?

Mayur Padhya — Chief Financial Officer

See as per accounting standard, we have to follow certain rules and past accounting entry. So this is not an actual cash outflow, but we need to pass in detail. So you can understand separately by connecting…

Saket Kapoor — Kapoor Company — Analyst

So you are just speaking to mark-to-market at the MPM part.

Mayur Padhya — Chief Financial Officer

Yes, M-to-M part.

Saket Kapoor — Kapoor Company — Analyst

Yes. So what is the M-to-M part for the quarter and nine months, sir? And whether it is positive or negative?

Mayur Padhya — Chief Financial Officer

So I don’t have the exact number, but M-to-M part is a bit negative, but may not be more than INR1.5 crore.

Saket Kapoor — Kapoor Company — Analyst

Okay. For nine months?

Mayur Padhya — Chief Financial Officer

Yes.

Saket Kapoor — Kapoor Company — Analyst

Okay. And sir, employee cost going down is affecting because of the utilization levels? That is a variable part or any others, in a quarter-on-quarter, I think on a consol basis, the employee cost has also gone down.

Mayur Padhya — Chief Financial Officer

Yes. See, that is mainly because of the lower provision of commission to the promoter. That is the main reason. See, as per resolution, they are eligible for 7% of the profit of the company. But since the profit has lower, so we have not done any provision for the promoter. And that is the main reason there is a decline in employee cost.

Operator

Mr. Saket Kapoor may we request you to return to the queue. There other participants waiting.

Saket Kapoor — Kapoor Company — Analyst

Yes, madam. I will return to the queue.

Operator

Thank you very much. We’ll take a next question from the line of Vaibhav Badjatya from Honesty and Integrity Investments. Please go ahead.

Vaibhav Badjatya — Honesty and Integrity Investments — Analyst

Yes. Hi, sir. Thanks for providing the opportunity. Sir, you had earlier highlighted beautifully that how over a period of — over a decade or so, things have changed in the industry. So I just wanted to understand, it is quite apparent. The demand issue is quite apparent in the ante segment. But on the supply side, are you seeing things changing fundamentally in terms of Chinese supply are the Chinese guys coming up again internationally with full supply or increasing capacities, which can impact prices even when the demand returns to normal.

Ankit Patel — Executive Director

Just a couple of quarters back, we were doing quite okay when the incremental demand and pricing was very strong. So I don’t think any supplies have come back or anything. And I don’t think that a is Chinese taste of intermediates are going to come up aggressively. I think that is not going to happen. And locally, yes, there are some smaller capacities that have come up in the last two, three, four years because informed space went through a good thing is about seven and 10 years ago.

So some players try to do backward integration, some players try to come into this business because as doing very good. So some capacities have come up, but nothing major. I mean, if I put them all together, a few plants that have come on in last four years, that’s combined maybe go on to one of the last years. So it’s not that worrying or anything. But, yes, smaller [Technical Issues].

Vaibhav Badjatya — Honesty and Integrity Investments — Analyst

Okay. And can you help us understand for both vinyl sulphone and H-acid. Who are the top — maybe top one or top two players in China with really big capacity?

Ankit Patel — Executive Director

Which one is one of the largest. That’s one player. They are the largest player in terms of pre-active dyes, where vinyl sulphone and H-acid are used mainly. And another player is [Indecipherable] that’s another very large player, which is a lot of [Technical Issues]. So these two are the players, I would say, are the largest.

Vaibhav Badjatya — Honesty and Integrity Investments — Analyst

Got it. Okay, sir. And sir, lastly, on chlor alkali side, we see a lot of players who are producing hydrogen just that the nature of process. They have forward integrated into hydrogen to fed as well. So I just wanted your thoughts on that piece of forward integration. That’s why we have not done it yet? And do you have any plans for that?

Ankit Patel — Executive Director

No, I don’t think [Indecipherable] is there part of our growth plans, but definitely not at the moment, like you said, yes, it is a good integration forward intrusion from the hydrogen where there’s a good value addition of at that happens. So that is — yes, we can — there is also a sizable market in North India, which we can cater to. But it’s definitely not on the cards right now because we are committed to our Saykha project right now, where the benzene derivatives will be completed in a few months, and then we will try to get back to our sulfuric acid plants, which have already started, but then we had to stop because of this overall pressure situations.

So yes, that kind of — there are many integrated products from chlorine and hydrogen that can be that can be planned and that is part of our plans. But that will all come after our Saykha plans are executed and settled.

Vaibhav Badjatya — Honesty and Integrity Investments — Analyst

Got it. Understand, sir. That’s it from my side. Thank you.

Operator

Thank you. Our next question is a follow-up from the line of Aditya Khetan from SMIFS. Please go ahead. Aditya, please go ahead with your question. Could you please unmute your phone and go ahead with your question?

Aditya Khetan — SMIFS Institutional Equities — Analyst

Yes. Thank you for the opportunity. Sir, my question was on to the other expenses part. Sir, this quarter, we had — other expenses have gone up quite sharply, like as a percentage of sales, it has been around 29% to around 30%. So our average range used to be around 25%, 26%. So is there any specific reason? Because our gross margins have actually — so they have expanded on sequential and on Y-o-Y basis. But because of higher other expenses, the EBITDA margin seems to have been compressed. So can you explain this other expenses?

Mayur Padhya — Chief Financial Officer

So other expenses are majority are fixed overhead kind of thing. And if you look at the September quarter, then it was INR9.76 [Phonetic] crores. And during the December quarter, it was INR9.95 [Phonetic] crores. So there is not a major change, hardly 2%, 3% improvement is there. So — but the turnover is lower. So when you compare it with the turnover then you’ll find major changes there. But absolute number, there is no much change.

Aditya Khetan — SMIFS Institutional Equities — Analyst

Okay. So because of shutdowns, so have we taken some sort of one-off improve because there was a shutdown in caustic soda? So is there any sort of which we had booked in this quarter in other expenses?

Mayur Padhya — Chief Financial Officer

Yes. So [Indecipherable] extra expense, we have not booked anything. But as you have very well understood whenever there is a shutdown, fix our rate will definitely be there. So that will become a part of expense, and we are not capitalizing that. So thereby the percentage effect is higher.

Aditya Khetan — SMIFS Institutional Equities — Analyst

Sir, can you help me with that number of additional expense which we have incurred for the quarter?

Mayur Padhya — Chief Financial Officer

There is no specific. See as I mentioned, sulfuric acid plant was shut for about a month. So the rupee future, every year, we shut down it for a month. And caustic was not functional for about three to four weeks because of the technology upgradation. So that effect is there. So in caustic, sir, mainly salary sector at is INR1.5 crores and for sulfur it’s about INR50 lakhs. So roughly INR2 crores of expense kind of overhead, which is there, but there was no production linked to that. So we can say that much extra expense was there.

Aditya Khetan — SMIFS Institutional Equities — Analyst

Okay. Sir, just one last question from my side. Sir, when we look at the company’s history for the last 12 quarters, so even during the good times, the company hasn’t crossed EBITDA margins posted and currently in deep demand scenarios, we are expecting that numbers are still good. So sir, how do you see this seems to change like considering now then derive plant is coming up and caustic soda now happen?

So can you expect like a good demand, can we like cross somewhere around 15%, 20% EBITDA margins in one quarter? Is there anything like which we can build in some quarters? How we should look at it? Because the numbers have been very poor like for the last 12 quarters, despite having good demand also we have been much been able to make good EBITDA margins. If you can explain me in a brief how will be the strategy?

Ankit Patel — Executive Director

So like you mentioned last 12 quarters, we have also been focusing on when and why our numbers are impacted. So there are two factors. One, earlier we were dependent too much on the textile sector, which is again very volatile. Again, selling to textile is also a low-margin business sometimes in some products. So what we try to do with the acquisition of Coral, which is traditionally a high EBITDA business.

And second, going into some specialty derivatives, which has then been and also sulfuric acid complex, which is again a high EBITDA business. So the idea was to have a more diversified business portfolio more products, which are selling to more applications rather than just textile or some other applications, we depended on too much earlier.

So like you — if you see our share of revenue that comes from different businesses for us has been changing since the chlor alkali also again, when we go to — when you start our ICA plants, I think it will again bring in a significant revenue from there also, which is, again, will be a new sector for us with sales being done to aero chemicals, pharmaceuticals and specialty chemicals. So that is the idea. If our dye business is doing normal, if not too much demand, but you want a routine.

And if chlor alkali, like you are anticipating, does a high beta business and also our new business that is coming up as again, a strong EBITDA business. We can reach about 15% to 70%. That has been our goal since the last two, three, four years, we have been trying to create a INR2,500 crores plus revenue model where we want to try to beat EBITDA of around 15%, 16%.

Aditya Khetan — SMIFS Institutional Equities — Analyst

Okay. Thank you sir.

Operator

Thank you. Our next question is a follow-up from the line of Saket Kapoor from Kapoor & Company. Please go ahead.

Saket Kapoor — Kapoor Company — Analyst

Yes, sir. A very brief understanding, sir, firstly, at to the point, sir, about the promoter part that you were just explaining me. So last year, what was the total remuneration phase with the promoter entity set at route numbers can you share?

Ankit Patel — Executive Director

Yes. Last year, it was about INR11 crore. And this year we have not provided anything till date.

Saket Kapoor — Kapoor Company — Analyst

Okay. So INR11 crore constitutes around 7% of the PBD number?

Mayur Padhya — Chief Financial Officer

So that is the formula as per companies act, and as per formula, we are required to calculate and we can pay. So as per resolution, 3% is to our Chairman Mr. Suresh Patel and 2% each to Mr. Bhavin Patel and Ankit Patel.

Saket Kapoor — Kapoor Company — Analyst

Okay. 3% to the Chairman, 2% of the profit to the MD and the Joint MD?

Mayur Padhya — Chief Financial Officer

Yes, executive directors.

Saket Kapoor — Kapoor Company — Analyst

Executive directors.

Mayur Padhya — Chief Financial Officer

Yes. 2%, 2%.

Saket Kapoor — Kapoor Company — Analyst

Okay. And what is our dividend distribution policy, sir?

Mayur Padhya — Chief Financial Officer

So we are maintaining almost 14% [Phonetic] on dividends, but we don’t have a clear policy. But normally, we maintain about 10% of the profit, near to 10%.

Saket Kapoor — Kapoor Company — Analyst

But sir, to categorically sale when we can put forward a 3% payout of total profits to the promoter and 2% at the promoter entity this 10% payout to the minority shareholders, many there should be an equitable effect in that also. But anyway, that is the board prerogative and now people have to decide. But sir, coming to the capex part and the coal issue. How have the coal prices, I think, have declined considerably. So what have been our net coal requirements as a fuel, what are we using coal or gas, sir?

Ankit Patel — Executive Director

We are using coal, I would say, about 90% of our fuel is coal in all the plants. And earlier, you are right that coal prices are really skyrocketed and for the main common quality, the prices went to around INR11,000 per ton plus which is now correct to around INR9,000. And again, in the next 10 to 15 days, it is expected to be corrected, maybe up to INR8,000 also.

So that — this was definitely a problem in the last couple of quarters where our energy costs had really gone high. And now we are hoping we are expecting to coal being one of the main inputs. We are hoping that it will be — we’ll have to spend less on the coal, which will help some of the products which are under a lot of pressure in terms of margins. And in the quantities, I would say, at peak at the company level, we use about 10,000 tons per month.

Saket Kapoor — Kapoor Company — Analyst

10,000 tons per month. And sir, can you give a number to it, sir? Out of the fuel mix cost what would be the coal price is absolute number we spent on a monthly basis? So that would give us an understanding that…

Ankit Patel — Executive Director

If I use peak, if all plants are running, and now today’s price is around INR9,000. So if all the plants are running today, they had about 90% capacity utilization, then the company would be spending around INR9 crores per month.

Saket Kapoor — Kapoor Company — Analyst

Per month. Right. And lastly, on the capex part, sir, you mentioned about sulfuric acid plant, where we have to relook and we are waiting for better market to go ahead. How much have we spent as of nine months, sir? And what are we planned for this year? And also what is the maintenance capex we do, sir, on an annual basis? You mentioned about the caustic part segregating that.

Ankit Patel — Executive Director

Yes. For sulfuric acid plant, we have spent almost INR64 crores. And as far as maintenance capex is ranging from INR15 crores to INR25 crores for the company annually.

Saket Kapoor — Kapoor Company — Analyst

Okay. And what is the further capex we’ll do in this remaining three months [Foreign Speech]?

Mayur Padhya — Chief Financial Officer

For maintenance capex, I’m saying the annual number.

Saket Kapoor — Kapoor Company — Analyst

[Foreign Speech] And for the growth capex, capital expenditure, how much we are doing for — how much you have done for nine months? What is anticipated for the coming in this quarter? Total year, what is the projection?

Mayur Padhya — Chief Financial Officer

Yes. See, for the nine months, once again, almost INR250 crores we have spent. And another about INR120 crores, we will spend.

Saket Kapoor — Kapoor Company — Analyst

Okay. And can you give us the net debt number then of what net debt?

Mayur Padhya — Chief Financial Officer

Presently working capital is almost to INR340 crores and some debt is INR410 crores.

Saket Kapoor — Kapoor Company — Analyst

INR410 crores. Yes. Sir, so this INR370 crores, which we are spending is all — how much has been from the cash and what have been our other borrowing that has gone up? Just to have an understanding how the cash flow has been. And how have we utilized the funds, cash generation for the nine months?

Mayur Padhya — Chief Financial Officer

See, we have used internal accrual bill debt in the project is about INR80 crores, excluding the land part, which we acquired earlier. And going ahead, we will use almost INR30 crores to INR40 crores in the current year and another about INR40 crores in next year from the internal accrual.

Saket Kapoor — Kapoor Company — Analyst

And sir, this peak — the peak debt will be, sir, post the sulfuric acid plant coming up, what would be our peak debt?

Mayur Padhya — Chief Financial Officer

Peak debt would be around INR900 crore, around INR600 crores is [Indecipherable] and around INR300 crores-plus will be working capital. So it can be INR900 crores, INR1,000 crores.

Saket Kapoor — Kapoor Company — Analyst

Okay. So current INR750 crores levels, so it will go up to INR900 crores to INR1,000 crores.

Mayur Padhya — Chief Financial Officer

Yes. That will reach — will reach by the end of next financial year.

Saket Kapoor — Kapoor Company — Analyst

Okay. And this working capital is lying low sir, because of lower utilization level. This will also go up once your capacity start moving up as the demand moves?

Mayur Padhya — Chief Financial Officer

No. That will not move much because the internal…

Saket Kapoor — Kapoor Company — Analyst

Cash flow will improve.

Mayur Padhya — Chief Financial Officer

Yes, cash flow will improve. So that will get compensated against that. And even repayment will also start from the next year. So we may not reach to — we may restrict ourselves at about INR900 crores not [Technical Issues]

Saket Kapoor — Kapoor Company — Analyst

Okay. What is the repayment number for next year? And sir, what is the blended cost of funds, sir?

Mayur Padhya — Chief Financial Officer

Next year, it’s about — about INR55 crores.

Saket Kapoor — Kapoor Company — Analyst

Okay. Cost of funds, sir? You can give me blended costs? And also, if you can give me the breakup between working capital fund and the long-term which you have sourced for the projects?

Mayur Padhya — Chief Financial Officer

Blended cost at present is about 6%.

Saket Kapoor — Kapoor Company — Analyst

6% even after this interest hike, sir?

Mayur Padhya — Chief Financial Officer

Yes. Because we are doing about INR150 [Phonetic] crore of second grades in foreign currency, where the costing is around 4.5% to 5%.

Saket Kapoor — Kapoor Company — Analyst

Okay. And for the project one what is the long-term, we have but what rates are we tied up?

Mayur Padhya — Chief Financial Officer

That is changing every day, but averages out to 8% to 8.5%.

Saket Kapoor — Kapoor Company — Analyst

And lead banker also, sir last quarter?

Mayur Padhya — Chief Financial Officer

Sorry?

Saket Kapoor — Kapoor Company — Analyst

We lead bankers from whom the loan has been sold?

Mayur Padhya — Chief Financial Officer

Yes. For some loan, it’s HDFC, Union Bank, Exim and Indian Bank. And apart from this Axis Bank, ICICI, Kotak, they are working capital.

Saket Kapoor — Kapoor Company — Analyst

Okay. Yes. Thank you for all the elaborate answers, and thank you for the time, patiently sir answering. And all the best, sir, we hope for the better times and thank you, SGA for organizing and thanks to the management sir. Thank you.

Ankit Patel — Executive Director

Thank you.

Mayur Padhya — Chief Financial Officer

Thank you.

Operator

Thank you. Ladies and gentlemen, that was the last question. I would now request Mr. Ankit Patel for closing comments. Please go ahead, sir.

Ankit Patel — Executive Director

Thank you. With this, we conclude the call, and I would like to thank everyone for joining us today on this earnings call. If you have any further queries, you can connect us or SGA team, our IR adviser. Thank you.

Operator

[Operator Closing Remarks]