DCW Ltd (NSE: DCW) Q3 2025 Earnings Call dated Feb. 17, 2025
Corporate Participants:
Saatvik Jain — President
Pradipto Mukherjee — Chief Financial Officer
Unidentified Speaker
Amitabh Gupta — Chief Executive Officer
Analysts:
Kunjal Agarwal — Analyst
Pujan Shah — Analyst
Unidentified Participant
Parag Patel — Individual Investor
Presentation:
Operator
Ladies and gentlemen, good day, and welcome to the Q3 FY ’25 DCW Limited Conference Call hosted by Arihant Capital. [Operator Instructions] And there will be an opportunity fot you to ask questions after the presentation concludes. [Operator Instructions]
I now hand the conference over to Ms. Kunjal Agarwal. Thank you, and over to you, ma’am.
Kunjal Agarwal — Analyst
Hello, and good afternoon to everyone. On behalf of Arihant Capital Markets, I thank you all for joining into Q3 FY ’25 Earnings Conference Call of DCW Limited.
Today from the management, we have Mr. Saatvik Jain, President; Mr. Amitabh Gupta, CEO; Mr. Sudarshan Ganapathy, COO; and Mr. Pradipto Mukherjee, CFO.
So without any further delay, I would hand over the call to Mr. Saatvik Jain for his opening remarks. Over to you, sir.
Saatvik Jain — President
Thank you. Good afternoon, everyone, and welcome to DCW’s earnings call for the third quarter of financial year 2025. I hope you all had the opportunity to review our earnings presentation and financial results, which have been uploaded to the exchanges and to our website.
The global chemical industry continues to navigate a challenging environment marked by geopolitical uncertainties, sluggish demand and pricing pressures across various segments. India, in particular, has faced significant headwinds due to an influx of lower-cost imports from China. The Chinese chemical industry operating at underutilized capacities has led to aggressive exports, keeping global chemical prices under pressure. India, lacking protective trade measures in certain segments has become a key dumping ground for various Chinese chemicals causing significant pricing distress.
That said, towards the end of Q3, we saw the Chinese government rolling out stimulus measures aimed at reviving its domestic economy, including supporting local governments and infrastructure projects. Over time, this is expected to increase China’s internal consumption and ease some of the export pressures that have been impacting global chemical markets. However, in the near term, the pricing pain due to Chinese imports remains a significant challenge for domestic manufacturers.
On the policy front, while provisional antidumping duty on PVC was recommended by the Ministry of Commerce in October, its implementation by the Ministry of Finance remains pending. This delay has resulted in continued dumping of PVC into the Indian market, further depressing prices in Q4. However, we continue to remain optimistic that the government will support the domestic industry from these unfair trade practices with the duty implementation in the near future.
Looking at the export market, demand for synthetic rutile remains sluggish throughout 2025, impacting both volumes and pricing. However, we have seen some improvement in Q4 with volumes picking up, albeit at lower realizations. Encouragingly, the outlook for FY ’26 appears to be more positive as the global market conditions gradually improve. Amidst these industry-wide challenges, DCW has remained resilient, focusing on execution, operational efficiencies and strategic growth initiatives.
Let me now walk you through our key performance highlights for the quarter. Despite weak global demand and pricing pressures, our capacity utilizations improved across all product segments with PVC and C-PVC operating at full capacity. For quarter 3, we achieved an overall capacity utilization above 80% across all our product categories. This is a testament to our strong operational execution and market positioning.
While realizations of most of our products remained under pressure, our revenue from operations grew by 19% year-on-year, driven by volume growth across our portfolio. Specialty chemicals, which continue to be the backbone of our growth strategy, remained stable and provided the much needed margin consistency. This segment achieved its highest ever sales during the first 9 months of this fiscal.
On the profitability front, we saw a turnaround in our EBITDA margin, both sequentially and year-on-year. This was backed by marginal improvements in our commodity business as well as strong volume growth in our specialty chemicals. Our specialty segment has been the key driver of bottom line stability, contributing to a 42% increase in EBITDA year-on-year.
On our capital expenditure, we remain committed to our long-term strategy, balancing expansion with financial prudence. Our alternative energy project is near completion with the first phase expected to be operational by end of this month and second phase by the end of March. This initiative is expected to bring significant cost efficiencies and enhance our sustainability efforts. Our C-PVC expansion project, which we announced in our previous earnings call, is progressing well. Construction is underway, and we remain committed to commission the first phase by September of this year. Our strategic focus on scaling our specialty chemicals business while optimizing our commodity operations is delivering results. With increased capacities and strong demand outlook, we expect this segment to drive our future earnings stability.
We are also executing our strategy of growth alongside debt reduction. Our long-term debt continues to decline year-on-year even as we add significant new volumes in our specialty business. This disciplined capital allocation is expected to enhance our bottom line through an improved margin profile and lower financing costs.
Looking ahead, we remain cautiously optimistic. While pricing pressures persist, the early signs of demand recovery in select segments and the structural improvements that we have made over the past few quarters provide confidence in our long-term trajectory. Despite the ongoing challenges, we have taken proactive steps to strengthen our business fundamentals, ensuring we emerge stronger as the market stabilizes.
With that, I request our CFO, Pradipto Mukherjee, to take you through our financials in detail. Over to you.
Pradipto Mukherjee — Chief Financial Officer
Good afternoon, everybody, and welcome to the earnings call. The revenue for the quarter gone by stood at 474 crores as against 398 crores in quarter 3 of last fiscal. That’s an improvement by 19% Y-o-Y. The EBITDA for the quarter also stood at 62-odd crores versus 23 crores — 24 crores in quarter 3 of — over quarter 3 of FY ’24, an increase by 160%. The revenue increase was predominantly driven by the specialty segment, both C-PVC and SIOP with the commercialization of the CapEx in quarter 4 of FY ’24 and quarter 1 of FY ’25, respectively. The other factors were export sales of synthetic rutile which finally saw some uptick, and we could conclude a sales of above 8 Kt for the quarter.
The EBITDA for the quarter from specialty segment grew almost 50% and clocked at INR48 crores. The commodity segment for the quarter had an EBITDA of INR14 crores versus a loss in the last fiscal. The major savings on the commodity EBITDA was from PVC due to positive BC and PVC spread and also from the caustic, where the realizations improved by 12% in-quarter three. Margin expansion — margin expansion was witnessed for the quarter and it stood at 13% against 6% in-quarter three of last fiscal.
On a Q-o-Q basis, the revenue was 3% down at INR474 crores, while caustic division clocked on higher revenues on back of higher synthetic sales. PVC and CPVC divisions were affected due to lower volumes. Now in both the segments, this was also coupled by lower realizations of CPVC by 7%. The EBITDA for the quarter stood at INR61.8 crores, which was around 49% higher than the last quarter, which stood at INR41.5 crores. While the Specialty segment remained steady at INR47.6 crores across both the quarters, the swing was in the commodity segment, which clocked a INR14.2 crore profit as against a loss of INR6 crore in the last quarter. This was again driven by the caustic prices of — increase by 11% and a better VCM PVC spread.
On a nine-month Y-o-Y, the company’s revenue stood at INR1,462 crores, which is a 17% uptick from INR1,250 crores. EBITDA stood at INR155 crores, up from INR125 crores, an improvement by 24%. The increase in the EBITDA from Specialty grew to INR143 crores in the nine months, up by 62% from INR88 crores in nine months of last year. While the commodity EBITDA declined to INR12 crores from INR37 crores last year, majorly due to caustic division, wherein there was a severe price correction in synthetic rutile by 32% and the caustic prices more or less remained flat with a negative bias. Interest cost for the quarter stood at INR16.25 crores, which is showing a gradual decline — declining trend with our scheduled repayment of term borrowings. The quarterly interest was lower by 10% Y-o-Y basis and 12% Q-o-Q basis. Term lending has been reducing and has reached a level of INR400 crores, reduction of INR410 crores in March ’24 despite an INR80 crores of fresh borrowings to support the CPVC, ongoing CPVC capex. The depreciation more or less remains same, inched a bit higher because of the capitalization of the CPVC and SIOP capex is concluded in-quarter four and quarter one respectively.
The PBT for quarter three and nine months stood at INR20 crores and INR28 crores, respectively. The company both at the quarter level and Nine-Month level has shown a significant increase in the profit before-tax. A Qo — the Y-o-Y quarter three, there was a loss of INR17 crores last quarter, which now clocked a profit of INR20 crores. And at the nine-month level, more or less it was breakeven last year. Now we have concluded a PBT of INR28 crores. The contribution from specialty, along with the reduction in the interest cost has significantly benefited the PBT of the company, thereby the profit allocable to all our shareholders.
Thank you. With this, we can have the floor open for question-and-answers.
Questions and Answers:
Operator
Thank you. We will now begin the question-and-answer session. [Operator Instructions] We have the first question from the line of Pujan Shah from Molecule Ventures.. Please go-ahead.
Pujan Shah
Hello. Yes, hello. Yeah, am I audible?
Kunjal Agarwal
Yeah. You are, please.
Pujan Shah
Yeah, yeah. Hi, sir. My first question would be on the CPVC side. So — so on the capex front, if we look on the historical side, the initial capex, what we have spent is around INR3 lakh per kit TPA. And now what we have been spending for the additional 30,000 capacity is around INR140 crores, which comes around INR46,000 crore. So do we — already we have a land parcel in Sao Buram. So why — is it the initial capex would be much higher and the upfront — the next upcoming capacity would be lower and what could be the on an average capex for each PPA if we wanted to understand?
Unidentified Speaker
We cannot really differentiate. When we put the plant for the first time, there were lot of utilities which has been factored for the future expansion. So you have to segregate what has been the capex that we have done on the utilities because that will support even the expansion, which has supported the first phase what we did now and the second phase what we are going on. So partly we will have the utilities, which are already we have spent money on that. That’s why you will see on paper, the capex for the further round of expansion is lower than what we have spent in the first phase. Also, the first phase also had a compounding capacity, which we are not going to add-in the second and third phase because we have the capacity available.
Pradipto Mukherjee
And just additionally to answer, I think last-time we had given a capex figure of INR125 odd crores, which was doubling of our CPVC capacity from 10,000 tonnes to 20,000 tons and also debottlenecking of SIOP. Now we have announced — our last announcement is for INR140 crores from taking 20 KT to 50 KT. So I think if you see the investments what we have done, I mean, just concluded capex, the next capex what we have announced is more cost-effective from a capital per ton of you know CPVC.
Pujan Shah
Okay, okay. Got it, sir. But do — in the initial phase, so we have a tie-up with, right? So is that agreement is a royalty agreement? What was the initial — and is that agreement still prevailing or is it now like what was the agreement with them?
Unidentified Speaker
The last — the first agreement was on a one-time technology transfer agreement, which has the guarantees in-place for 10 years. So as we talk now, we have the guarantees for the product quality for the first phase. The subsequent expansions, we have a royalty mode. There is a technology transfer fees, which has been kept at a lower side and we have a royalty payment based on the — the product that we are going to sell. So the model is slightly different because in the side, they were not open for a royalty agreement, so we have to pay upfront technology transfer agreement.
Pujan Shah
So as of now, what would the percentage of royalty we have been paying to that?
Pradipto Mukherjee
I don’t think we can diverge that at this juncture.
Pujan Shah
Okay. Okay, sir. And sir, on the soda ash part, so if we look into it, we have a machine impairment, which was impacting our sales and the profitability. So now if like if that was been expected in Q4, so do we feel that in coming years in next one to two year, we will achieve the same margins which we have been doing like around roughly around 12% 15% range. So what do you — what’s your thought on that? Because even few companies are also coming with the capacities as well as the global — global demand-supply dynamics are also are impacting. So how we have been looking at this division, soda ash.
Pradipto Mukherjee
See, soda ash, we have been presently operating at around 80% to 85% capacity for the last nine months and we will continue to do so for quarter-four as well. We would have our machinery in-place to support 100% production and sale going-forward from end-of-quarter one, okay. So that’s one part of the question. The second piece is that we would at a full steady-state as our internal assumption goes, would do an EBITDA of 18% to 20% at current prices. So industry has also been, you know, talking with the government in terms of supports pricing supports or there has been a PIP which MIP, which has also come in on the minimum imports into the country. I think there is lessoning with the government which is going on to have a support mechanism for the current prices, if not better for — after institution of ADD. So we think that the margin of 20% is quite achievable for us when we do the full production and we hope to achieve that in next year.
Pujan Shah
Okay. Okay, sir. Sir, coming on the caustic soda and synthetic ille, so understanding the part, can you just segregate because — so recently, we have seen uptick in the caustic soda and Chinese prices are very firm in terms of how saying that and the realization. What was the impact of synthetic which has been contributing and what could be the margin in synthetic rotile as of now?
Amitabh Gupta
Well, it’s Amitabh. Good afternoon, everybody. On the synthetic utile fund, we passed to a very bad phase, but things are much, much better for the year ’25, ’26. We have been able to book orders more or less to the extent of our current production and the prices are much better than what we were able to achieve during the year ’24, ’25. So I think synthetic utile business is going to be much better next year as compared to last year as compared to this year.
Pradipto Mukherjee
And secondly, just to address your point that we have also done a positive EBITDA for the quarter, backed by increase in prices of caustic and that has turned the segment from a loss — EBITDA loss to an EBITDA-positive. We’ve done a INR7 crore of EBITDA-positive for the quarter.
Pujan Shah
Yeah. But sir, as you rightly said that synthetic, you utile, we got that order book and we also get two years demand visibility. So what could be the EBITDA margins we could achieve in the synthetic excluding caustic soda, because we understand the variability of caustic soda.
Unidentified Speaker
Synthetic rotile historic margins has been in the north of 20%, okay. So there has been some demand disruption in the last year and the year under review, which has led to a decrease in our overall profitability. But this is a one-off. I feel that going-forward, we will be having that sort of a margin for this product, what has been the last 10-year average. However, we don’t expect a V-shape recovery. The recovery would be gradual. We first securing our contracts with the customers on a long-term and the pricing would only be reviewed based on the market prices prevailing.
Pujan Shah
And I agree. And my bookkeeping question would be on the debt side. So if we look in — look, the total debt, the cost is around — cost of debt is around 14% 15%, while our cost of debt what we have been saying in. So I’m not able to understand. So is that a differential due to — we are looking at the end mark or what’s the difference?
Pradipto Mukherjee
No, there is some working capital limits. So when you are considering a term lending balance outstanding versus the interest cost that will not match because of couple of reasons. We operate on our working capital lending, which is basically non-fund based to support our purchase for VCM, which is imported. Apart from that, since we have been maintaining a very healthy cash level in the balance sheet, around INR175 crores, we chose to keep that in the balance sheet. We are running a working capital borrowing line as well for — to address the uncertain situation and that’s exactly where the interest is bit high. But if you see on a yearly level or a Nine-Month level, the interest cost has been gradually coming down..
Pujan Shah
So as our repayment terms is around INR1 almost INR100 crores to INR130 crores in the coming years.
Pradipto Mukherjee
Yes.
Pujan Shah
So we’ll be the debt-free in the…
Pradipto Mukherjee
2.5 years time.
Pujan Shah
Yes, yes. Nice sir. And last question on the SIOP division. So if we look at the industry, can you just give a broad idea on the total India market size and the global and because we have been the Asia’s largest capacity out there and we have been dominant — have a dominant position. So we wanted to understand how the demand dynamics work-in this specific segment?
Pradipto Mukherjee
Well, the local demand is in the vicinity of about 20,000 to 25,000 tonnes a year, out of which we are selling almost 9,000 tonnes to 10,000 tonnes. Our major — our major sales are in the US market, which is a very good and steady market for us. And more or less, whatever is our production capacity, we are doing that. And now we are embarking on putting on the micronization plant, which will increase our sales and also will be a big value addition to the product. The price of this micronized product is almost 30% to 35% more than the normal price.
Pujan Shah
So total — if you look at the global, what could be the demand — total global demand and supply?
Pradipto Mukherjee
Global demand, it’s very difficult for us to predict because the China all sudden done is a major producer in the country — in the world and to get the data from them is impossible. So see we have been supplying to a few leading customers in the US and we have a long-term tie-up with them. India market is basically we operate at two colors, which is red and yellow. So there will be a different volume which is taken for the overall synthetic SIOP. But for red and yellow, as sir told that in India, it is around 25,000 ton, of which around 40% we are capturing as a company. For the US, there are a couple of customers with whom we have a long-term association and we don’t see any reduction in the volume there or rather we can expect a some increase in volumes.
Amitabh Gupta
Yeah. And one more thing I would like to add, maybe the volumes may not be very big, but we are introducing the black iron oxide, orange and brown in the market now. So our range is increasing. And of course, red has number of shades, yellow has number of shades, which we have got now.
Pujan Shah
And sir, regarding the tie-up with the Rockwood pigment, still it’s prevailing or what is the currently — what is the agreement?
Amitabh Gupta
You see, does not exist anymore. Rawkward sold it to Huntsman, Huntsman sold it to. So the things have changed hell of a lot. So doesn’t exist anymore in this business.
Pujan Shah
Okay. So we have a — we don’t have any long-term agreement with raw food. As of now, supplying — we are not supplying to raw food, right?
Amitabh Gupta
There is nothing like raw food anymore.
Pujan Shah
Okay, okay, got it. Okay. Yeah. And sir, do we feel a sustainable margin of 30% 35% EBIT margins in SIOP for next two years?
Unidentified Speaker
Sure. So I think it’s very difficult, sir, to give up a margin call for us given the geopolitics which is being playing out. We are hopeful that we will be able to maintain the margin of 30% to 35%, both in Asia OP and our CPVC segment.
Pujan Shah
Done, sir. I will get back-in the queue. Thank you, sir.
Unidentified Speaker
Thank you.
Pradipto Mukherjee
Thank you.
Operator
Thank you. We have the next question from the line of Morgan Koushik from Trinetra Capital. Please go-ahead.
Unidentified Participant
Good afternoon, sir. Thank you so much for taking my question. Sir, my first question is regarding like we are supplying into US markets. In the exports, like how much percentage of revenue comes from US markets? And is there any impact from tariffs?
Pradipto Mukherjee
Practically 40% to 45% of our production goes in the US market and well, so-far, Mr Trump has not announced any tariff on NDR. But I think…
Operator
Sorry, Mr. Koushik, your line on-mute. From your line.
Pradipto Mukherjee
Yeah. So-far, Mr Trump has not announced any specific tariffs for India not this project. So I think with this 10% increase in the tariff for China should help us a bit, but then let us only the time will tell. But frankly, we don’t envisage any drop-in the business in US because these are the long-term commitments which we have got and things should be steady as far as US markets are concerned.
Unidentified Participant
Okay, got it. Yes, sir. Sir, like CPVC, GDPC prices are coming down after to, few countries, like where right now like the major imports coming from any other countries apart from China and US?
Unidentified Speaker
Imports are coming from Japan, Thailand, USA. So imports from those countries have not really stopped because even when the duty was in-place on China and Korea, imports were coming from Thailand, Japan and USA and which is still continuing to come because that volume, we will have to break, but that it takes some time.
Unidentified Participant
When we can expect normalcies normalcy, sir?
Unidentified Speaker
You see, you are seeing only one-side because there is also a drop-in the input price because prices are reduced because there is also a reduction in your input cost, which is PVC. So technically, if you see our margins have more or less remained the same between the last quarter and this quarter despite the prices going down because the input cost also has gone down.
Unidentified Participant
Got it, sir. Sir, on that capex side, like CPVC Phase-3 expansions, like what kind of asset turn we can expect like what kind of utilizations like a ramp-up we can expect?
Unidentified Speaker
So we have announced a 30 KP increase in our CPVC capacity, that two in phases. The first phase what we are undertaking is the — from 20,000 tonnes to 40,000 tons. That’s around 20,000 tons increase in our production and consequently sales. The market is there obviously to place these volumes. However, the pricing as we discussed was under pressure. And we are hopeful that from each — from quarter three of next fiscal, we’ll be gradually placing the volumes.
Unidentified Participant
Got it, sir. Sure. Thank you. [Operator Instructions] We have the next question of the line of Parag Patel, an individual investor.
Parag Patel
Hello. Am I audible?
Pradipto Mukherjee
Yes, please go-ahead.
Parag Patel
Yes, thank you for opportunity. So given ongoing decrease in the, right, could you please elaborate whether it is a trend primarily driven by demand fluctuation or increase in from peers? Because already other peers are aggressively expanding. So what will be the demand outlook for the CPVC? Additionally, for-fee and CPVC become and prices is directly linked to the PVC?
Unidentified Speaker
I am not able to hear you boss. Can you please speak slowly and a bit clearly, please.
Unidentified Participant
Okay, sure. So as we told that APVC price is decreasing. So APVC price decreasing is mainly driven by demand fluctuation or competition aggressively pricing by the competitors.
Unidentified Speaker
Okay. I’ll pause it there. It is a combination of both. Number-one. Number two, CPVC prices are going down because PVC prices are also going down. Okay. Okay. So that’s why I have been saying that the overall margin has more or less remained the same. And there is also a demand weakness in the construction sector because as a product, PVC pipes and CPVC pipes tend to go in tandem. So there has been a decline in the PVC, CPVC demand in the construction sector, which has had some impact on the demand. But having said that, it is not that the prices you drop the price and you will sell. So the prices move-in tandem at the PVC price with a lag. So that will continue. Tomorrow if the PVC prices go up, even prices will go up. So on the UC side, on the usage side, what I’m trying to say is that higher availability will also result in higher demand coming. So there will not be a problem which we have seen in all the products. In fact, when Reliance came with their PVC capacity, the capacity was much more than the demand, but over the years, that demand opened up and it got consumed. So we don’t see any problem in placing the product, be it our capacity or be any other new capacity coming. There will be a lag for the demand to catch-up, but availability will definitely improve the demand.
Unidentified Participant
So could you please tell us what is the realization of the CPVC right now for us because…
Unidentified Speaker
CPVC is around INR130 rupees.
Unidentified Participant
Okay. So going-forward, we can see the deterioration in price — on directly linkage of the PVC and CPVC. Like many Chinese players are selling the CPVC is a of the 10,000 to 15,000 per tonne. So demand outlook will be similar to the India going-forward? So there will be sir…
Unidentified Speaker
Just let me try and-answer and address your question in a different way. See, the ADD which has come in CPVC is basically a fixed duty structure, unlike the previous anti-dumping duty, which was a fixed-price structure. So when you — when we say that it is a fixed duty structure, if the PVC prices go down, the prices of CPVC will also go down, but the spread will be available because of the ADDB there. Now secondly is the internal requirement of the country has gone bit slow or because the construction sector is working a bit lower, that has further had a bit of an impact in the CPVC. The total volumes requirement in the country on a steady-state is much higher than we and our peers in India put together, it is still an import substitution product. So either on the demand-side or on the margin side, we don’t see an impact further than what is prevailing as of now. Okay. However, the situation being very dynamic, things may undergo a change, but our visibility and our understanding says the margin will be more or less protected and there will be taker for our entire volumes. So as of now in the coming couple of years, we don’t see our things to deteriorate so-far as CPVC is concerned.
Unidentified Participant
Okay. So is there any — our quality differentiation then our peers that our quality is a matter for the CPVC than our peers. We have an for CPVC elected in gas.
Unidentified Speaker
We really will not be able to comment on our competitor’s quality. But what we can say is that we as an organization or manufacturer both of PVC as well as CPVC, which should give us a better edge compared to our competitor.
Unidentified Participant
Okay. Okay. This is from my side. Thank you.
Operator
Thank you. [Operator Instructions] We have the next question from the line of Morgan Koushik from Trinetra Capital. Please go-ahead. Can you hear us? This is the operator, Mr.Morgan. Yes, please go-ahead with your…
Unidentified Participant
Thank you, sir. Sir, cash position is INR173 crore as of Q3, like what about the debt position? And also please share our working capital side for this quarter, net payable receivables?
Unidentified Speaker
So our — our long-term debt or the term lending, as I told you, have come down sub INR400 crores. It is around INR395-odd crores with our scheduled repayments being on and INR130 odd crores being to be paid. I think in two, 2.5 years’ time, we will be able to pay-off the legacy debt. The debt, which has been recently taken to support the CPVC capex will have a five-year window. That’s a Five-Year — 10-odd debt which has been taken. On the working capital side, we have followed a discipline of having 80% of borrowings, I mean fund-based borrowings to the FDs, free FDs what we have and we are following that discipline quite comfortably. And third is we have some working capital non-fund based debts, which are LCs, which are rotational and are part of our creditors.
Unidentified Participant
Sir, what about that working capital days in terms of is there any increase on inventories?
Unidentified Speaker
So our inventories more or less remains the same. Our inventory days — see, historically as an organization, our DSO, I mean our datas outstanding is roughly 13 to 14 days at the organization level. Our creditor is around 90 days to 100 days. Our inventory was going up in terms of days because of the export volumes we were unable to place for synthetic predominantly. That for the last quarter, first time we had did a sale of 8,000 tonnes, which is equal to our production. So on an inventory days, it would be maintained at a quarter-on-quarter level and we hope that from next year onwards, the inventory days will also go down.
Unidentified Participant
Got it, sir. Sir, this renewable power projects, like how much cost-savings we can expect in terms of operational side?
Unidentified Speaker
See, when we calculated when we got into the project, it was looking very promising because the coal prices at that point in time was very-high, wherein we got into the project, the investment roughly would be around INR25 crores to INR30 crores and we expected at that point in time for the savings to come at an annual level of north of INR50 crores. I think now we anticipate the savings in the current price — the blended prices of power to be at around INR35 crores to INR40 crores.
Unidentified Participant
Got it, sir. Sir, this definitely has provided logistic — logistical advantages for exports and like if you could share like what kind of like cost-savings or synergies we are getting from this facility.
Unidentified Speaker
So I think we have all-weather port out there and that only helps to avail the sea route in transporting our materials like phostate and all the export materials. But having said that, if you are on other side of the other side of the — on the extreme side that also has a challenge in terms of reaching up to you know, I mean your sales would be limited only to the nearby customers if you have to reach up to other — but other customers, you have to pay more freight. So all-in all, it gets balanced out in a way. But we obviously have the advantage of the import, which helps us use that sea route for exports and as well as import actually.
Unidentified Participant
Got it, sir. So any planned strategic partnerships or acquisitions in the pipeline?
Unidentified Speaker
No, not at the moment. I think we are obviously evaluating an opportunity. But as of now, no, the expansions which have been announced are keeping us busy till at least next year. I think we would get into a drawing boat for next level of growth somewhere early next year next fiscal. Maybe H1 of next fiscal, we could — we could start forming up something for the next five years.
Unidentified Participant
Got it, sir. So we have this INR175 crore cash like is there any plan to utilize for future growth?
Unidentified Speaker
Obviously, that is one of the reason we are trying to repay the debt, as I told you in two years’ time, all the legacy debt will go off. We are also borrowing lower term-loan than our repayment because if you know, we have made an announcement to do a capex of INR140 crores, but have gone ahead in the market to fund only INR80 crores of that balance will be from internal accruals. And having said that, we are repayment is also INR130 crores, INR125 crore INR30 crores. That means we are reducing the debt and also enhancing our capacities. That’s what Mr Jain also told. We’re trying to grow, but also deleverage ourselves together and that culminates in a point of time when our debt more or less at FY ’27 level goes down to negligible amount on the term lending side. And we try and maintain the cash which is there in the balance sheet, which gives us opportunity for a bigger capex. But as of anything as an organization.
Unidentified Participant
Okay, sir, I have seen most of the companies in Q3 work who are exporting like to other countries, they are facing forex losses and like how we are managing our ForEx side, is there any MTM losses are there?
Unidentified Speaker
Yeah, there are because the forex or the IRR devalued significantly over the last one month and all of a sudden to be precise. But there — so we — for us as an organization, while we try to cover-up our imports, we keep the exports open. But having said that, the forex — there will be ForEx loss, but since we are onto import substitution as a company, especially in PVC, CPVC, the devaluation of dollar obviously will play operationally better for us. Import price parity of our FG, the prices of our FG will also go up to do an import price parity. So on an FX, you may find a loss, but at an overall profitability level, the valuation of dollar will not impact us because we are either exporting or an import substitution.
Unidentified Participant
Got it, sir. Thank you.
Operator
Thank you. We have the next question from the line of Pujan Shah from Molecule Ventures. Please go-ahead.
Pujan Shah
So, sir, on the recent capex of CPVC. So what is the debt cost as of now for the capex?
Unidentified Speaker
I beg your pardon. I could not get your question?
Pujan Shah
Yeah, yeah, sure. Just told it. So we took a borrowing of roughly around INR70 crores for CPVC capex, right? So yeah, so what could be the debt cost as of now what is the cost of borrowing?
Unidentified Speaker
Oh, the cost of borrowings. Weighted-average cost of all terms has been put together will be 9.5%.
Pujan Shah
9.5%.
Unidentified Speaker
I mean anything between a 25 basis-point share in there.
Pujan Shah
Yeah, got it. Got it. And sir, could you just state all the realizations each — for each segment excluding CPC because we know currently the CPC is realization of 130. Other than that, can you just stay down the caustic and all that realization ECU specifically?
Unidentified Speaker
So I mean, I mean, just to let you know, sir, that most of the commodity product prices are available in the market domain. We would obviously refrain from being very specific into the net realizations unless you insist because of — I mean, because I think that would be the only thing what we would like to reserve. You can drop us drop us a mail for any specific request. We’ll see if how well we can comfort it.
Pujan Shah
Sure, sure. Thank you. And sir, just understanding on one part on the — so on the INR125 crores of capex what we have done for the. So what would be the spend on debottlenecking of SIOP?
Unidentified Speaker
So what would be the —
Pujan Shah
So what would be debottlenecking capex spend for SIOP?
Unidentified Speaker
We’ve not spread-out that because the are linked utilities for that, but if I have to put a number on it, it would be around INR30 crores INR35-odd crores, but that specific if we cannot give it to you, because there are certain interlinkage utilities which we had also built-in that capex.
Pujan Shah
Okay, got it, sir. And sir, any incremental country we have been focusing because in the previous calls also we have been focusing on newer countries for exports.
Unidentified Speaker
So have you been focusing on — so we are still focusing on Europe as a country where we can — we can get-in. I think our CEO, Mr Amita Gupta also told that certain developments to our SIOP product, which we are planning to do, which gives us a very good, you know, opportunity to explore the US market with our SIOP product.
Amitabh Gupta
And frankly, we are adding our to the African market for the SIOP, SIOP okay and Europe well the things continue to be pretty bad as far as the economy is concerned, but then, like Southeast Asia and Middle-East and Africa, these are the places and I think we will have a reasonable presence in these markets and during the course of the next year.
Pujan Shah
Sure, sir. And just last question on the SIO would be on the micronization part. So if we understand — so our current — so our current capacities of — on a competition side, do we have any already setup plant by the competitors or we are the initial one to set-up this micronization plant? And what the — is it more on a cost-saving benefit or more on the product quality side?
Pradipto Mukherjee
No, no. Quality-wise, it is a final product, okay, the dispersion is much better in this product and that’s why the paint industry in some of their formulations, they prefer the micronized product. Right now in India, in any Indian manufacturer, they have — they don’t have any micronized product. But like international banks like, they have a micronized product. And I think this will add-up to our bottom-line as well as our volumes.
Pujan Shah
Okay, sir. And any outline of capex on that spend for specific…
Pradipto Mukherjee
Nothing significant in light of the previous expenditures what we have done, but it’s been premature, sir to comment on that. But nothing significant that we can assure you.
Pujan Shah
Sure, sure. Thank you so much. That that’s from my side.
Operator
Thank you. [Operator Instructions]As there are no further questions, I would now like to hand the conference over to the management for closing comments.
Saatvik Jain
Thank you everyone for joining the call today and hope you’ve been able to answer your questions. If there’s anything further, you can reach-out to our Investor Relations managers for any further clarifications. Thank you.
Operator
[Operator Closing Remarks]