Note: This is a preliminary transcript and may contain inaccuracies. It will be updated with a final, fully-reviewed version soon.
EPIGRAL LTD (NSE: EPIGRAL) Q4 2026 Earnings Call dated May. 02, 2026
Corporate Participants:
Kaushal Soparkar — Executive Director
Rakesh Agrawal — Chief Financial Officer
Analysts:
Unidentified Participant
Nipun Sharma — Analyst
Unidentified Participant
Unidentified Participant
Unidentified Participant
Unidentified Participant
Presentation:
Kaushal Soparkar — Executive Director
Created a level of infrastructure for sizable growth from year on. And simultaneously we are working on new projects as well so we can have a consistent year over year momentum. Our team is optimizing current projects to drive steady growth and deeper integration while deploying capital with discipline to create value for our stakeholders. I now hand over call to Mr. Rakesh Agrawal who will take us through the financials.
Rakesh Agrawal — Chief Financial Officer
Thank you Milind. Let me take you through Q4 numbers. In Q4 we witnessed volume growth of 15% compared to previous quarter resulting in overall plant utilization above 80%. This resulted in a highest ever revenue of rupees 736 crore. A growth of 22% compared to previous quarter. Revenue contribution from derivatives and specialty business stood at 54% compared to 52% in previous quarter. EBITDA increased by 64% to rupees 169 crore compared to 103 crore in the previous quarter. EBITDA margin improved to 23% on account of normalized level of raw material cost and improved in overall utilization of plant.
PAT stood at 82 crore versus 39 crore in previous quarter. PAT margin stood at 11%. Now if we discuss full year revenue dropped marginally by 1% to 2542 crores on account of drop in volume of around 4% in the year. EBITDA issued at 567 crore compared to 711 crores in the previous year. EBITDA margin for full year stood at 22%. PAT stood at 330 crore which includes one time benefit of 81 crore on account of reduction in deferred tax liability. So if we exclude that then our PAT will be rupees 252 crore compared to rupees 357 crore in the previous year.
ROCE stood at 16%. If we exclude capital work in progress of rupees 451 crore then our ROC stood at 17%. Net debt to EBITDA stood at 0.9 as on 31st March 26th compared to 0.7 in the previous year. Our net debt stood at 508 crore versus 489 crores in the previous year. During the year we spent around 394 crore on the ongoing capex and we have generated around 436 crore from the operations. With this we can now open the floor for questions.
Operator
Thank you. We will now begin the question and answer session. Anyone who wishes to ask a question may press Star and one on their Touchstone telephone. If you wish to Remove yourself from the question queue. You may press star. And two participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question comes from the line of Priyank Cheddar from Vallum Capital. Please go ahead.
Questions and Answers:
Unidentified Participant
Hi Milindanki. Always great performance. First question on what was the realized ECU for the quarter for which we have achieved this performance on the caustic soda and what’s the current trending ecu? And you made a comment that you think that the supply chains will remain disrupted for long. What does it mean for the caustic soda players like us? What can be the elongated ECU that we should think of it along with? If you can touch upon the prices of other derivatives where we are involved, how has they moved and how are they moving in the current quarter?
That’s first question.
Kaushal Soparkar
Yeah. Thank you Priyank. So see current quarter, quarter four, we have ended with the ECU of around 30,000 rupees. And that has been there and in quarter. Currently the ECU because of the war situation had gone up. Like caustic soda, prices have increased by almost 30, 35% compared to what it was before war then. But because of the bit cooldown as well, the price has also come down. So current ECU would be ranging somewhere around 37 kind of 37,000 rupees kind of thing. And considering the war situation, what we witnessed is that the whole cycle of the chemical segment starting from crude to chemicals has been upset.
Even the shipping line has been offset. And, and also on the shipping lines things are not moving, I mean smoothly. And also the war which is going on, there is no clarity whether how things will be moving smoothly. So considering the situations stabilize as well, like if there is a pause in the current situation, then also it will take at least four to five months of time for things to stabilize for the realizations of all the products to come down. So. So that’s what we are expecting. And. And again in the other derivatives as well we see the prices have gone up in line with the raw material prices.
And again depends on how the things shape up in the war situation that will ultimately translate this. But again considering how generally things, I mean even if it ends, it will take time to stabilize and it’s not going to happen in a immediate basis.
Unidentified Participant
Got it. So if I have to just reflect back on past nine months performance and this quarter has been significantly way better than the past nine months. If you can just summarize what has been the key problems that that we faced in last nine months. How are we shaping up as this quarter goes by in terms of the utilizations of caustic soda we went down to a level which did not make unit economics. And now when the utilizations are picked up what is the current utilization for each of the products as well as if you can just briefly touch upon what went wrong or maybe what were the headwinds in last nine months and what are the current tailwinds that we are witnessing in this going quarter.
Kaushal Soparkar
So see Priyank, if we look at like the full year performance of the company, the first half of the company we were down in terms of volume because of the two things. One, we were having a major maintenance that generally happens once in a eight year. So that maintenance was over from October onwards. And also because of the prolonged monsoon plus there was too much volatility into the PVC which is raw material for cpvc the demand was bit impacted. But again once the monsoon ended in October we saw a demand pick up from mid of November in CPVC as well.
And and also on the caustic soda side the major maintenance was done. So the plant that we were running at 67 70% utilization levels after the November has been running in the range of 78 to 80, 83 85% utilization levels. So that’s where you can say quarter four. I mean even from mid of November we were running at optimum for both. I mean the whole plant put together and even the quarter four has been the optimum in terms of all the plant capacity utilizations. So currently, so currently things are on the optimum side and we expect FY27 to be on a better side and heavy will have a volume growth.
So that’s what we are expecting for FY27
Unidentified Participant
Becomes a new normal as things were to do with respect to internal to epigram.
Kaushal Soparkar
Priyank. But see the thing is war is still there and definitely it impacts in some of the other way. It’s our product basket mix where we have set of chemicals in both the segments and that’s where we are more resilient even in this situation. So definitely it looks good. But if the war does not escalate and it does not impact too much into the key raw materials then we are confident. But again we will have to factor in the not too much. I mean we will have to factor in the war impact as well. So that is something which is not very clear for to anyone.
Unidentified Participant
One last question on the unit economics. Again given the energy cost is one of the key raw material for say caustic soda players say around 50, 55%. And that energy escalation leads to caustic soda prices going up. When it comes to Epigrel and for industry, can you throw up on a comparable with respect to how much would be the green or renewable energy share within our energy source and how are we incubated versus global escalations in their energy mix versus the Indian industry players?
Kaushal Soparkar
See in that way energy cost has also gone up because of the war. So that has also gone up in the range of around 15%. But again in caustic soda if you see it’s also the supply chain which is bit impacted globally because of the crude impact where the ethylene is not available and the PVC plants are running at lower utilizations and that’s where it impacts the caustic soda production as well. So it’s a combination of things which is driving the prices. So that is not just one thing. And in terms of like what we see in terms of caustic soda, as I said, the war is still there or the issue is still there.
So it will take time for us to for it to stabilize. And in terms of like wind solar energy in our total production, in total power consumption it is currently somewhere around 8 to 9% for epigrel. And as we are further expanding into the further addition of wind solar of around 19.5 megawatt. So once that commissions and reaches at optimum level then around 15% of our power requirement will be coming from the wind solar hybrid power plant.
Unidentified Participant
And what would be this number for the industry, Indian industry caustic soda players
Kaushal Soparkar
I would not have that number on hand. But that scheme, this is a scheme, very good scheme from the government of Gujarat and many other states have implied. So I guess every company is trying to take a benefit of it. So right now it will be on a lower side. But I’m sure that down the line the usage of this will definitely increase
Unidentified Participant
Anything. Lastly on say FY27 as we start what would be your broader guidance in terms of volume growth aspirations? And we are looking ahead for a capacity additions also in the following six months. What can be a peak EBITDA North Star target that you can think of it as for the prices that are prevailing. Any, any, any thoughts on this?
Kaushal Soparkar
See I would avoid giving any number but in terms of volume growth we are targeting around 10% to 12% of volume growth from here on and definitely considering the growth expectations from the various products that we are into barring the war does not impact too much. We are confident to grow with the volume growth of 10 to 12%. And so that is what I can guide. I mean I won’t be able to guide much better than that. But yes, on that basis definitely FY27 looks much better than FY 2026 based on that because the volume growth that 10% will be from the capacities of like of a higher value products compared to what we are there.
So that will drive the value growth as well.
Unidentified Participant
May I add one more element on this? Just on the chlorine consumption, what would be the internal chlorine consumption that would go. That would reach as a percentage after the. What is the current mix and what would this reach after the expansion?
Kaushal Soparkar
Current chlorine captive consumption is around 75%. And as we are commissioning our ECH and CPEC capacity in the quarter two of FY27 and it will run at lower utilizations initially because it will take time to ramp up that facility. So maybe in FY28 once we kind of reach to the optimum utilization levels at that point of time we expect this 75% chlorine captive consumption to reach around 90, 95% captive consumption.
Unidentified Participant
Wonderful. All the best. Thank you for all the answers.
Kaushal Soparkar
Thank you, Priyank.
Operator
Thank you. The next question comes from the line of Nipun Sharma from VLS Finance. Please go ahead.
Nipun Sharma
Good evening everyone. Can you please confirm if my audio is clear on your end?
Kaushal Soparkar
Yes, it is clear.
Nipun Sharma
Okay. So congratulations on a good revenue growth for this quarter. My first question being on the CVC facility that I believe it is being commissioned in March 2026. I believe so. So, so what are your plans for the CVC products? I mean what would be your target customers? What would be your target market? And if you are planning to, you know, have a brownfield capacity expansion for the same existing facility and as well as the competitive landscape. So would you please comment on that?
Kaushal Soparkar
You’re talking about the CPVC or chlorotolumes.
Nipun Sharma
Chlorotolume.
Kaushal Soparkar
Yeah. So chlorotolumes we commissioned in March 2025 and you can see we have passed through, I mean in terms of the process of getting approvals and testing from the customer side. And that’s where the capacity, or you can say the revenue increase on a month, on month basis. And so that’s where we are targeting for. So FY27 will see a sizable contribution from the chlorotolins. And further as we go in FY28, we should be able to reach optimum utilization levels. This majorly goes into the agrochemical and pharmaceutical segments.
So basically the companies who are into specialty chemicals and making. Making the final product for the agrochemicals we sell to them. So it has been, you can say we have passed through the whole process and all the testing process. So now it’s the time to ramp up in terms of. Because here the volume will increase staggeredly. It’s not going to increase in one chunk. So that’s what we have witnessed already in the quarter four and we expect that to happen in the quarter one as well. Quarter one, I mean from quarter one as well.
So FY27 should be contributing a sizable number maybe once the one or two quarter goes. We might be able to give you a number of that once we have that sizable number into the P and L.
Nipun Sharma
Okay, sure. And what would be the optimum capacity utilization for the chlorotode facility?
Kaushal Soparkar
So optimum would be in the range of 70, 75% utilization level which we expect to reach in FY28.
Nipun Sharma
Okay, and my next question being for as. As I’ve seen in your FY26 revenue growth, it was. It was a little bit of a greasy growth because of a 4% sales volume degrowth in FY26 I believe. And I think it is majorly on account of first half of FY26 due to some factors including the unfavorable monsoon conditions which impacted the sales of ECH as well as cpvc. So could you think so that if such unfavorable monsoon condition happens in the future. So how would you mitigate such risk? Because it is also known that 2026 is going to be major year for El Nino as well as.
Or even if the unfavorable monsoon condition repeats in any upcoming years like it did last year. So how would you mitigate such a risk?
Kaushal Soparkar
See what you said is true for the last year, but it was not just because of the monsoon. There were many things in last year which were impacting the raw material prices which were impact which were ultimately impacting the final. I mean the finished good prices as well. So you were seeing that last year there was anti dumping duty and BIS were expected in the pvc. So because of that there were volatility in the prices. Plus prices of the PVC was also dropping which were impacting the CPVC prices.
And also the real estate market was bit subdued post the election of 2024. So all the things have now end because there is a clarity on the Ad there is clarity on bis. Monsoon has ended. And also the real estate market has been picked up after that. So it’s not just one particular thing. And generally also Q1 and Q2 will be a quarter where it’s a monsoon. So demand for that product, it will be lesser compared to what it will be in Q3 and Q4. So but considering just one, one factor, it will not impact to an extent what we saw in FY26.
So that’s where we are confident that FY27 should be better than FY26 in terms of the volume.
Nipun Sharma
Okay. Okay. And one question being that. Could you please provide the average price realizations for your products for hydrogen peroxide, CPVC and ECH as compared to last quarter? I mean third quarter of FY26.
Kaushal Soparkar
It’s difficult to give all the numbers together. Maybe we can take this offline.
Nipun Sharma
Okay, sure. Sure. Thank you for answering my questions. And best order for your future endeavors.
Kaushal Soparkar
Thank you.
Operator
The next question comes from the line of Kiran Naik from Modi Fincap. Please go ahead.
Unidentified Participant
Thank you for giving me an opportunity. So can we expect revenue for 27. 5% better than 26.
Kaushal Soparkar
Sorry, FY27.
Unidentified Participant
27 revenue growth. 5% better than 26 revenue growth.
Kaushal Soparkar
Can you tell me what is 5%? I mean, I didn’t get it.
Unidentified Participant
Better 26 revenue growth. 27% better would have been growth than 26.
Kaushal Soparkar
The FY26. FY27. Because see, the FY26 year put together, our chloralkali production was impacted. Even the CPVC was impacted because of the muted season. So that’s where we see that revenue and the volume growth will come in FY27 based on FY26. And that’s where we are expecting the growth to add to the value growth as well.
Unidentified Participant
EBITDA margin also Same level for 27.
Kaushal Soparkar
I would defer giving any guidance on the EBITDA margins. But what we have achieved so far, we would be maintaining in that range.
Unidentified Participant
Thank you, sir.
Operator
Thank you. The next question comes from the line of Rakesh Nair, an individual investor. Please go ahead.
Unidentified Participant
I’m
Operator
Sorry to interrupt. Rakesh, you’re not quite audible. Could you be a little louder please?
Unidentified Participant
Hi. Hi. Is it audible?
Unidentified Participant
Yes. Yes.
Unidentified Participant
Yeah. Congratulations for the good set of numbers. And my question is, can we expect further growth in next quarter and coming quarters? And what is the. What is the impact of this US war on our company revenues in future?
Kaushal Soparkar
See, the war situation is there and because of that there is an escalation in in raw material prices as well as finished good prices. So that’s where we are. So that’s where we think even in that basis we will have a bit of a volume growth in FY27 unless the war escalates too much and it disrupts the market all together in terms of demand. So otherwise if we consider does not consider that situation, then we can expect a volume growth in the range of 10 to 12% in FY27 and that will eventually drive the value growth.
And it’s always better to see things on a year put together basis rather than seeing quarter on quarter because one particular quarter or two quarters there might be an off season for a few products and there might be might be an off season for another products. It’s always better to look at a year as a put together rather than looking quarter on quarter.
Unidentified Participant
Okay, and what is the trend of PVC crisis in upcoming months?
Kaushal Soparkar
So CPVC prices had gone up in line with the PVC prices. So again considering current situation how things are, it will go in line with this it the CPVC prices will go along with the PVC prices again there also it’s too much volatility in the PVC prices so it’s difficult to give any specific number as of now.
Unidentified Participant
Okay, thank you, thank you very much for your answer.
Operator
Thank you. The next question comes from the line of Resham Jain from VVD Asset Managers. Please go ahead.
Unidentified Participant
Yeah, hi. Congratulations on good set of numbers. So I have a couple of questions. So the first one is with respect to the overall profitability in this quarter. So what I’ve understood is that there has been a good price increase in the month of March and is there inventory gains also sitting in this quarter’s profit given that you might already have inventory and prices have gone post that versus the current spreads which you might be enjoying.
Kaushal Soparkar
Yeah. So thank you Risham. So what you said is true. But again see the prices had started escalating over a period of time once the war was announced and then the thing started going up. But if you see on a quarter four basis then in one or two products and that too might be for last five or ten days, we would have got the benefit of a higher price because for every product you have some set of product, I mean the contracts or you can say order placed at the starting of the month. So if you actually put together, I mean if you remove the marginal benefit, quarter four has not received any much of the benefit of in terms of escalation of the prices because this was announced around the 20th of February, starting of the March.
Whereas you, I mean one would have already booked the orders for that month. So barring some sort of the very spot or like one week ahead of orders, it’s not impacting. So that’s where you see the ECU of caustic soda has been around 30,000 and all other products also it’s marginally here and there nothing major movement. So whatever Q4 numbers happen, it’s not majorly because of the escalation price of the war. Escalation in the price of the war will be reflected in the quarter one. So again because of the product basket that we are into, where 60% of our product basket is something which is goes into the basic things and where the demand is still intact even at elevated prices.
So we are better off compared to the situation that. And again there is a 40% of our product basket where the elevated price is a bit of restricting the demand. So there the volume will be bit lower. So there is the balance. So because of this product basket, or you can see the mix of products that we have, we are more better off compared to being into the product basket where the demand directly gets impacted when the prices go up. So to put it short, the price increase because of war will be majorly reflected in Q1 and not in Q4.
And considering current spreads also it is almost normalized situation because of the, you can say volatility, any increase in the raw material prices is passed on to the raw finished good prices. And because. And also we are also being cautious in terms of wherever the order is has to be placed. So that way we are being cautious and not hurrying too much in terms of where we would land up in a inventory loss kind of thing.
Unidentified Participant
Understood? Understood. Yeah. And the second part is the overall volume. Are you seeing any as you mentioned, desta also. But overall volume, how you are seeing from the Indian market as well as on the export side,
Kaushal Soparkar
See company put together, we hardly have around 4 to 5% of exports and that too it’s to the euro. So and again on the domestic side, as I said, there are set of chemicals where the demand is intact even at the elevated prices because it goes almost into everything. There are set of products where the volumes will be low because the inventory cost has gone up, that has pushed the finished good prices. So that’s where even everyone is cautious, including us and even our customers are cautious. So that’s where you can say there’ll be a kind of a of a quarter where there was a volume bit low compared to what it was in a normal case.
Otherwise as the things have better off compared to what it was at the starting of the April we see the growth is picking up from the from the May onwards. But again as the time goes, it will be better because time is too uncertain to confirm on anything in terms of how things will be going.
Unidentified Participant
Understood. One final one is with respect to chlorotolin, what is the current utilization level? And given that this product is imported largely because of rupee dollar and all, are you seeing any positive traction in chlorotoluen?
Kaushal Soparkar
So chlorotoluen, as I conveyed earlier in the con call, it is this has year put together, has been a year where almost, you can say seven to eight months has been gone in terms of getting approvals and testing with the customers. Now we see the volume pick up in terms of the from the customers. But again here the demand pickup will be gradual. So if we look at FY26, the volume has been almost lower to give any number. So I guess FY27 will be a year where we will have a sizable contribution and the plant should be somewhere around 40%.
But again it will be difficult to give a absolute utilization level as of now because it was very minuscule. Maybe once we cross half of this FY27 it will be better to give some sort of good number or give us a sizable number. And in terms of. Because of.
Unidentified Participant
Yeah, yeah, sorry, Sorry, go ahead.
Kaushal Soparkar
So yeah, your second question. I missed it.
Unidentified Participant
Yeah, I know. You are answering about the demand conditions. Given that rupee dollar and all import substitution, it could have been better off. Right. Last six months. And on the traction side,
Kaushal Soparkar
Yes, basically is something which medially goes into the agrochemical and the pharmaceutical segment. So we were seeing a kind of a bit uptick from the January in terms of the orders. It was increasing. But current uncertainty, which is there because of the war situation that has impacted bitcoin in terms of volume. So it’s not a normal month which we were already witnessing in January, February and March. But again, as things are pulling it off, at least for the time being, that we expect the volume growth to happen from the May onwards again.
Okay, perfect. Thank you and all the best. Thank you.
Operator
The next question comes from the line of Subanshu from Sharma and Family. Please go ahead.
Unidentified Participant
Hello. Am I audible?
Operator
Yes, yes.
Unidentified Participant
Yeah. So my first question will be around the new chemistry. Has. Has it been delayed indefinitely now?
Kaushal Soparkar
Sorry, I didn’t get you.
Unidentified Participant
There was supposed to be a new green chemistry being planned, right? Is this now Delayed indefinitely or what is the state? Haven’t heard anything on this.
Kaushal Soparkar
So you are asking about the expansions that we are planning, right?
Unidentified Participant
No, you were mentioning a new green chemistry you were planning into, right? I think we have been talking it about in some quarters. It was supposed to happen in last financial year but there hasn’t been any announcement till now.
Kaushal Soparkar
So see not any green chemistry in capex. What we are doing is we are already doubling our capacity of CTVC and EC so that is expected to get commissioned in the quarter two of FY27 and we are working on the new chemistry to further for further expansion. So that is under process with the management and once it is freezed we will be announcing that maybe in a couple of months.
Unidentified Participant
Okay. Because this I think has been under discussion for quite some time. The new chemistry that we’re planning and we haven’t heard about has been more than a year. So like why is this taking so long?
Kaushal Soparkar
There is no green chemistry as such we are talking about.
Unidentified Participant
Sorry. Okay, Greenfield, I think there’s a confusion. You’re planning a new greenfield project, correct?
Kaushal Soparkar
Understood, Understood, understood. So you are talking about the new land that we are planning for in terms of the CapEx. So yes, that is still under under evaluation because we earlier we were targeting around, I mean we were evaluating many projects out of that we have selected few, I mean one of them and then we are further doing due diligence on that and so once that is done we will definitely announce but it is going to take time because it’s a big project so we are not going to be in a hurry to just to announce it for the sake of it.
Unidentified Participant
Okay, so when can we expect it? Is it. Will it be announced this year, next year or. No, we cannot commit on it.
Kaushal Soparkar
So we this will be announced this year as well. This year only because see we are always, if you look at history as well, we have always done a capex and once that CAPEX is almost on the verge of completion we announced the next one. So we go step by step in a gradually in terms of announcing and completing the projects. So we are on that stage. So definitely I’m sure that we will be physically on something and announcing this year so that we can have a consistent growth beyond FY29, FY30 onwards.
Unidentified Participant
Sure. On the CPVC and ECH capacity. So once it is commissioned, how will the ramp up look like can be the expected utilization levels by let’s say the end of this Fi Q4 27.
Kaushal Soparkar
So once we get commissioned in Q2, so the ramp up will be gradual. It will start maybe around 15, 20% and then gradually every quarter that capacity utilization should go up. And maybe in FY28 we should be able to reach at optimum utilization levels.
Unidentified Participant
So when you say optimum, what is that number? Around 80% or no?
Kaushal Soparkar
Yeah, so for like CPVC it will be around 75% and for ECH it will be around 80%.
Unidentified Participant
Okay. And I think you mentioned that for quarter four, 26 this quarter, both CBVC, both CBVC and ECH were running at optimum capacity. So was they running at this much? Only 75 to 80%?
Kaushal Soparkar
Yeah, it will be somewhere around. So it will be somewhere around optimum level. So around 65, 70 and 80% kind of things.
Unidentified Participant
That’s nice to hear. I think last quarter it was 50% and it has gone up quite a bit. So what was the realization for ECH? This is last quarter Q4,
Kaushal Soparkar
So realization for ECH has also increased compared to what it was in Q3, but marginally not like too much.
Unidentified Participant
Okay. And I think I’m hearing chloromethanes had gone quite a bit up. Is that true or specific? Chloroform I’ve been hearing a lot.
Kaushal Soparkar
So that was in line with. That was in line with all the products. Every product has gone up. It’s not just one particular chloromechane. Every product relation has gone up in line with the raw material prices.
Unidentified Participant
But that was usually
Kaushal Soparkar
Visible in quarter one and not in quarter four.
Unidentified Participant
So I’ve been hearing like 50%. There’s been hike. Is that the correct range or no?
Kaushal Soparkar
Yeah, it would be around that.
Unidentified Participant
Okay, so chloromethane is like, is this the highest product line that has gone or is there something else also where there is like price inflation?
Kaushal Soparkar
Every product has seen an increase in pricing in line with the raw material prices. So it’s not one specific product which has gone up. Every product the price has gone up in line with the raw material prices.
Unidentified Participant
So I’m trying to gauge certain, let’s say a percentage jump, like the top end number we might expect. What could it be like 20%, 15% or how is that average number looking out for us?
Kaushal Soparkar
See, as I said earlier, we can expect a volume growth of around 10% in the FY27. Now in terms of value growth, it will be difficult to give you any kind of specific guidance. We would avoid that.
Unidentified Participant
What about for this quarter? Q1, right. You already have some idea on the current prices. Will that be a fair assumption? 15 to 20% topping growth for Q1 FY27.
Kaushal Soparkar
As I said earlier, we would avoid giving any guidance in terms of giving numbers on quarter, on quarter or even on the year on year basis.
Unidentified Participant
Sure. Yeah. I have one question on chlorine consumption. I think you mentioned that internal consumption which will reach 95, 90% by Fi28 when you know all things are running at optimal capacity. So is it entirely internal concern with respect to Epigril or when we say 95% consumption
Kaushal Soparkar
That is a combination of internal as well as the pipeline customers.
Unidentified Participant
Okay, so will we expand the costly soda capacity to have more chlorine in future or that will not be needed?
Kaushal Soparkar
As of now we have not that in plan and if required we might. But as of now we don’t have that in planning to increase the capacity.
Unidentified Participant
Okay, got it. And I think one last question on the interest cost that I see among the previous calls, we are guided, I think for 4550 cr for the entire year it is significantly higher at 72 cr. What might be the reason for the entire year that it’s considerably higher. Also I think the debt was repaid a little bit, so should have been a little bit lower. So what’s the main reason behind it?
Kaushal Soparkar
So it was majorly because of one of the loan that where we had a mark to market impact. So it’s just a market impact which has been there the interest cost put together. Otherwise what you said is true that that has gone down. So in line with that the interest cost will be low. But it’s just mark to market impact because of the loan that we had taken where we have a foreign exchange derivative.
Unidentified Participant
Okay, okay. Can you expand a little bit on. On that we how are we exposed to it? Like I want to understand in which other microenvironments will this interest cost go up in future? Is it because of the INR depreciation or why is that happening?
Kaushal Soparkar
Oh, it’s an INR depreciation. So our currency if you look at since last one and half two years time, it has depreciation depreciated more than the generally what it happens in the historical. Historically it has depreciated by around 3% or 2 and a half percent. But since last one and a half year because of many global reasons it has depreciated more. So that is the reason because of which we have to take mark to market impact.
Unidentified Participant
So we have borrowings in foreign currency. That is why it is happening. That’s the primary reason.
Kaushal Soparkar
Yeah, it’s an instrument where it is the derivative swap has been done in terms of foreign exchange. So that’s where it has been there. So it’s a mark to market as of now.
Unidentified Participant
So anything we do it, can anything be done to prevent this from happening in future or this can again happen in in future if INR depreciates similarly.
Kaushal Soparkar
See we are doing. Our finance team definitely takes care of it and they are looking avenues to mitigate that. So we are working on that and we will be finding a solution for that. But again it’s not something major. It’s a mark to market impact. And even if the currency depreciates from here like in the range of 2 to 3% then it’s not going to impact too much.
Unidentified Participant
Yeah. I also wanted to understand when these environments happen like this happened, like this year, it depreciated more. I just wanted to gain some idea that there will be an impact on the finance cost. But what you’re saying that this should not be happening at this level in future, Right? Let’s say the concept at 10% but we are seeing a 35% increase in our finance cost. So we might want to look into it.
Kaushal Soparkar
Yeah. So we have considered when we take such products, we have evaluated based on that where we can reduce the cost of finance. But again there was too much volatility in the currency. No one had expected. But we understand that and definitely will take care of that.
Unidentified Participant
So that’s it from my side.
Kaushal Soparkar
Sorry,
Unidentified Participant
Yeah, that was my last question. Thank you. Thank you.
Operator
Thank you ladies and gentlemen. That was the last question for today. I would now like to hand the conference over to the management for the closing remarks.
Rakesh Agrawal
So in conclusion, I would like to convey that we are moving in line with our strategy and our expansion plans and diversification in terms of multi product catering, various industries. We are targeting consistent growth. I would like to thank you all for joining us here, here today. Please feel free to reach our IR if if there are any unanswered question. Thank you everyone for participation.
Operator
Thank you sir. Ladies and gentlemen, on behalf of MK Global Financial Services Limited that concludes this conference call. Thank you.