Ganesh Benzoplast Ltd (NSE: GANESHBE) Q1 2026 Earnings Call dated Aug. 13, 2025
Corporate Participants:
Unidentified Speaker
Rishi Ramesh Pilani — Managing Director
Amar Kabra — General Manager
Analysts:
Unidentified Participant
Anukul Singhal — Analyst
Vishal Pancholi — Analyst
Udit Sharma — Analyst
Sarvesh Gupta — Analyst
Rohit KothI — Analyst
Presentation:
operator
SA.
operator
Foreign Ladies and gentlemen, good day and welcome to Ganesh Binzu Plush Limited Q1FY26 earnings conference call. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing Star then zero on your touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Rishi Pilani, chairman and Managing Director. Thank you. And over to you, sir.
Rishi Ramesh Pilani — Managing Director
Thank you. Good evening everybody. This is Rishi Pilani. Thank you so much for joining us for the Q1 FY26 conference call. We will initiate the call by taking you through the business highlights for the period under review, after which we will open the forum for Q and A. So I hand over the mic to Mr. Amar Kabra who is our GM Finance and Taxation to share the quarter numbers with you. Yeah.
Amar Kabra — General Manager
Hi.
Amar Kabra — General Manager
Good evening everyone. So, Amar Kabra here. So I will present the numbers on console basis. During the Q1 of Financial 26, the company achieved a total revenue of 956 million as compared to 875 million for the corresponding quarter in the previous year with an increase of 9% y on y. During Q1 of financial 26, the consolidated profit after tax is 181 million adds against 164 million for the corresponding quarter in the previous year with an increase of 10% Y on Y. Console EPS increased to 2.52 in Q1 of 26 from 2.28 in last year. So with an increase of 11% YNY on standalone basis.
During the Q1 of financial 26, the company achieved a total revenue of 569 million as compared to 485 million with the corresponding quarter in the previous year with an increase of 17% YNY. During Q1 of financial year 26, the consolidated profit after tax is 140 million against 157 million for the corresponding quarter in the previous year. During Q1 financial 26, the chemical diesel turnover increased to 494 million from rupees 393 million in QN1 financial 25 with an increase of 26% Y&Y and the profit before tax for Q1 of financial year 26 increased to 71 million from 22 million in Q1 financial 25 with an increase of 223% Y&Y which is mainly on account of upgradation of system at plant level resulting in better yields and changes in raw material procurement.
Policies which resulted in improved cost effectiveness. So with that I have given the highlights for the result and now it’s a question and answer forum.
Questions and Answers:
operator
Thank you. We will now begin the question and answer session. Anyone who wishes to ask a question may press star in one on the Touchstone telephone. If you wish to remove yourself from the question queue, you may press char. And two participants are requested to use handsets while asking a question. Ladies and gentlemen, we’ll wait for a moment while the question queue assembles. Participants who wish to ask Questions may press shar n1 at this time. The first question is from the line of Anukul from Invet. Please go ahead.
Anukul Singhal
Yeah, hi sir, thanks for the opportunity. I had few questions first. The chemical business, which used to be very volatile, lumpy in the past, has started reporting steady numbers. So can we expect this run rate to continue going forward?
Rishi Ramesh Pilani
Yeah, looking at the current scenario and the changes that we made at the plant and the administration level, we expect that numbers should remain hopefully with continuous steady space.
Anukul Singhal
Are we planning to demerge this entity? Basically, if this number sustains?
Rishi Ramesh Pilani
Yeah. So we have recently around a week back approved, got approval from the high court and everybody regarding that old Morgan matter to go ahead. So what we are doing is that we are now for this year we are stabilizing the company like you can see. And then we will definitely look at what are the options like demerger into the chemicals.
Anukul Singhal
Understood. My second question is on the side that we saw a degrowth of 8% in the rental income. So you know, could you just let me know what was the primary reason for this and any guidance for FY26 and 27 for increase in rental yield.
Rishi Ramesh Pilani
So see, usually what happens is during the period of starting from approximately March to June, that’s the time when we take most of our tanks down for maintenance and repair. This year we carried out a very, very extensive maintenance and repair program, especially at JNPT. So we had at one given point of time almost 10 to 15 of our capacity that we were upgrading or repairing. So because of which there was some period we couldn’t rent the tanks out from April to June. But going forward, I think we should not see that happening.
Anukul Singhal
Understood. And sir, any guidance for FY26, 2010 for increase in rental yield, what we can expect.
Rishi Ramesh Pilani
What we expect is like what I always say that we expect that whatever since we are in JNPT, especially when we are 100% occupied. So we expect that the standard 4 to 5% year over year escalation of Pricing we should be able to demand from our customers.
Rishi Ramesh Pilani
There is scope for GOA to be split but yes, we are trying for that. Apart from that, JNPT and coaching already running at full capacity. So yes, normal growth, 5 to 6% you can assume for the year for overall elastic reason.
Anukul Singhal
Understood. So for 5 to 6% for FY26 is what I can assume. Understood, sir. So my last question is on the side like since the JV has been terminated and we still have the lease land, what kind of capex are we planning to do there? Have we considered any emerging sectors such as hydrogen and ammonia or any capex on the LPG side?
Rishi Ramesh Pilani
So yeah, while the JV has been. So JV has not been technically terminated as of now. So technically JV is not terminated as on date. But yes, BW has expressed that they would not like to go ahead with the project that has been declared. So we are looking at alternatives. We have plans in place to develop liquid storage and we are also discussing both ammonia and LPG storages of different scales with our customers. So I think by the end of this quarter we’ll have better visibility into at least what we want to start off with once the monsoons are over.
Rishi Ramesh Pilani
Obviously we’ll try to make the optimal mix which is a product which will give the highest return with the lowest cost. So that will work out and by the quarter end we’ll announce that.
Anukul Singhal
Understood, sir. Yeah, that’s it for mine. If I have any questions, I’ll follow back in the future.
Rishi Ramesh Pilani
Sure.
operator
Thank you. The next question is from the line of Vishal from VP Capital. Please go ahead.
Vishal Pancholi
Thank you. So Rishi, there are difficult times in our lives and companies and it has been really difficult during last six, nine months three things have happened. Defraud happened and then court case happened and then JV was called off. So if you. And it is good that you arranged the call. I thought there are a lot of management who just vanished during difficult times. But you came back and raised the call. Thank you for that. If you look back six months or nine months, what in your opinion is the reason of these things happening? We were not able to foresee these things and now we are not in a trouble.
But we have fallen back from our plan.
Rishi Ramesh Pilani
Yeah. See obviously the definition of business is adapting to change. So we are. We are looking at things did change there in April 2024. Yes, there was a fraud issue. But the good part is that the company was able to tackle it head on. And even as recently as about a month back, we’ve obtained an order from the court which basically confirms that the documents that were used and everything are fraudulent and they’ve advised all the statutory bodies not to act upon them and even the lenders. So obviously we are getting away that regarding the, the Morgan case, that was known all along that that case is on the company.
We’ve been fighting it for almost now close to 25 years. And obviously the prudent decision was taken in a way of risk mitigation to settle it out. Well, ideally it should be. It could have been lower, it could have been higher. But the management took a call that based on the risk that the company faced in case we lost the court case, it was better to settle. So these two were sort of on the horizon. Well, with bw, yes, it was unexpected that their board will decide that they would like to stick to their core shipping and not get into infrastructure suddenly, which was, which was not expected.
But, but then, but then the good part is that the land is retained by us. We did not transfer the land to the jv. So that was, that is good part on that. We did not transfer the land to the JV and lost the rights to the land. So you still hold about 11 acres of prime land in JNPT and the demand is there, the growth is there and whatever we do now, most will be on a hundred percent ownership of our basis instead of a JV where we are sort of 45 or 50 and the other party is 50.
So I think everything has its good and bad. So like if you look at the fraud case that happened after that, the old management was removed, the new management was put in place and you are, you are seeing the results for the chemical division over the last one one and a half years. So sometimes there are silver linings and that’s what we hope to grab on and grow them.
Vishal Pancholi
All Right, So if I remember correctly that while the land was allocated to us in 2022 and we always used to mention in the call that we will let you know about the development and what we will do with the land. So when we decided to go with lpg, I was baffled that you have the land, you have all the rights there. So can you now help me understand why did we go with LPG in a partnership rather than going alone, probably slowly building the liquid storage or doing something else on our own? What was the thought process behind going into a partnership?
Rishi Ramesh Pilani
See, it was very simple that I did not want to burden the GBL balance sheet with a loan because LPG projects are expensive. So without Having a short guarantee of throughput, which is not how generally terminals, LPG terminals are built. LPG terminals are built where you build the terminal and then you sell it out out with having some sort of a market demand assessment. So the reason we went for a partnership is because BW was assuring us minimum guaranteed revenues against the terminal. They were guaranteeing the debt that was supposed to be taken for the terminal.
And in addition they were, they had, you know, they are one of the biggest LPG companies in the world. So the supplies and everything was assured. So that’s the reason the JV was envisaged.
Anukul Singhal
So I mean basically why didn’t we go with the liquid storage thing where we could have scaled up slowly because you don’t need to build all the tankers at one go. Right.
Rishi Ramesh Pilani
So I mean see there was obviously there was lot of thought process behind going for liquid or for LPG and we thought that LPG would be a better choice in terms of diversification for the company into the gases field. And also because you were getting a minimum assured revenue with a company that is basically the largest LPG handler in the world. So it made sense for the company for its looking at its long term future prospectives that may or may not come up also, but may come up that LPG made more sense.
Anukul Singhal
The last question is, so if we look so 22 land was allocated to us, it’s been three years and for some reason we have not been able to do much. If we look forward three years, do you think that whatever it is, it is liquid or LPV or something else, we will see something happening and revenue being generated from the land?
Rishi Ramesh Pilani
Definitely. There’s no doubt in that.
Vishal Pancholi
Roughly two to three years is what we shall look at.
Rishi Ramesh Pilani
Yeah, so, so let’s say if you go for liquid then probably what you can start seeing is that probably you should have your phase one running in a year’s time or so. If you decide to go with LPG then probably two years more
Vishal Pancholi
and then.
Vishal Pancholi
You need to find a partner for LPG if. Because there’s a lot of step ups there.
Rishi Ramesh Pilani
So, so there are discussions that are going on for the LPG prod terminal also apart from bw. So we had sort of contacted, we had been in discussions with a few companies. We had chosen BW out of them so that when BW is not there then obviously the other companies re approached. But like I said that we are now carefully evaluating everything before taking a final call again because we don’t want to have the same sort of Situation again where we decide to go with somebody and then we don’t go ahead with somebody.
Vishal Pancholi
Right answer. Chemical division, are we planning to sell or it will stay with us.
Rishi Ramesh Pilani
So Chemical division, we are looking to grow it through a strategic partnership. But the timeline for that will not be within this year. Because we, whoever we’ve. Couple of people we’ve had very active discussions with, they have always mentioned that we’d like to see another six to eight months, at least a year maybe of performance to make sure that we want to enter with you. Having said that, that on our own, I think over the last one, one and a half years we’ve managed to do very good with the division. It’s now turning out steady turnover, steady profits unlike before when we used to have make or break kind of break even kind of scenarios.
So there, there, there is no urgent requirement for us to rush into making hasty decisions.
Vishal Pancholi
So this profitability is coming from our change in something or it is just because of commodity price has gone up and we are able to earn lot of money there.
Rishi Ramesh Pilani
No. So there have been a lot of changes made at the plant level to improve the efficiencies in the plant. There have been lot of changes made in our procurement policies to make sure that the way we were procuring raw materials before under the old management, those are streamlined. So because we are. So the pricing is very sensitive. So whatever pricing goes up and down in terms of commodity, the pricing adjusts itself. So it is not, it is not commodity pricing. It’s actually the efficiencies that have been brought into the system.
Vishal Pancholi
Okay. Thanks Rishi.
Rishi Ramesh Pilani
Thank you. Thank you.
operator
Thank you. The next question is from the line of Gaurav Shah from Arshit Gandhi. Please go ahead.
Unidentified Participant
Thanks a lot for opening, sir. So I have a question on jv.
Unidentified Participant
So sir, what is the amount all.
Unidentified Participant
The partners have invested in the JV till now and how we are going to deal with that?
Rishi Ramesh Pilani
So up Till now the JV company had 5 crores of equity from each of the partners. That is 2 partners. So totally 10 crores. Which is. So we are discussing in the process of how to now take that money back. Obviously a small part of it has been utilized in different activities of taking approvals etc. But majority of the money is still lying in the company. So that process is going on.
Unidentified Participant
So no amount is spent on the terminal yet, right? No, just equity contribution we are talking about, right?
Rishi Ramesh Pilani
Yes. Yes.
Unidentified Participant
Okay. And sir, do you want to share.
Unidentified Participant
Any particular reason why they opted off the jv? Any particular Reason?
Rishi Ramesh Pilani
Yeah, I explained. No. So their board, because of these what what was explained to us, we can only explain that to you, is that from what we have heard from them is that because of this global issues with shipping lines and all happening with the tariffs and all this coming in, their board has decided that they want to rather stick to their core facility with core strength which is shipping and focus on that rather than develop. So this would have been BW’s first on site infrastructure. So their board decided that it’s better we stick to our core strength which is shipping and invest money there rather than putting it on an onshore infrastructure.
Unidentified Participant
Okay, thanks a lot sir and all the best.
operator
Thank you. The next question is from the line of Udit Sharma from Invet Research. Please go ahead.
Amar Kabra
Hello, good evening. And audible.
Rishi Ramesh Pilani
Yes, yes, good evening.
Udit Sharma
Thank you sir for giving me opportunity and congrats for decent set of numbers. So I mean few of my question has already answered. I only have two questions. One is related to capex and one is related to JD with bw. So sir, I understand that we’ll get the rental growth every year in the range of 6 to 10%. Apart from that do we have any plan on the CAPEX side either on the LPG or lsp? Because see I understand that your Gova terminal is not fully utilized but over capacity is very low. So I don’t think that it will give you a very high number in terms of growth.
So that’s why I want to understand the if we have any CapEx because if we do the CapEx then only we can get the higher growth. So that is my first question on the CapEx side. My other question is like so the JV with BW is a long, it’s going from last two two and a half years, right? So do we have any clause like they will reimburse us some lease amount or some cost because they have clocked a land for last two two and a half years. So do I have anything like that? Do we have any liability to pay to us? Thank you.
Rishi Ramesh Pilani
So I’ll answer your first question that yes, CAPEX is planned. Like I already explained in my earlier answer that if we go ahead with a scaled down version of LPG or we go with liquid, in both cases yes we have planned capexes and hopefully by the end of this quarter we’ll have a final idea of what we want. We are going ahead in terms of CapEx. Regarding the reimbursement clause that you mentioned that no there is no such clause in the JV which was signed in November of 2023. So it’s been approximately 1.5 years that the JV was in force and there was no clause in it that if either of the partners walk out as or them that they have to reimburse anything to the other partner.
Udit Sharma
Okay sir, one, follow up on this. Like whatever capex will do in future that we are planning to do with internal accruals or like we’ll do any kind of fundraising or jv, what is our plan? Any, any broader level idea if you want to give.
Rishi Ramesh Pilani
So if it’s, if it’s going to be an LPG then definitely we’ll require funds. I’m not sure if it’ll be a JV or not, but definitely there will be some funding requirement because it will not be done through internal approvals. But if it’s just pure liquid, then mostly we will not require funds from outside.
Udit Sharma
Okay, sure. Thank you.
operator
The next question is from the line of Ketan Chera, an individual investor. Please go ahead.
Unidentified Participant
Hi. Thanks for the opportunity. My first question is with respect to the land that we have in JNPT where we were to build the LPG terminal. Now there must be some condition from the authorities, right? That you know, we must utilize the land. Land in so and so period. And you know, if not then is there a condition that you know, if you don’t utilize the land then we have to surrender the land back to the authorities, something like that.
Rishi Ramesh Pilani
So we have begun the land utilization. So as you know, the A class terminal sits on this land only the new A class terminal which was commissioned in 2023. So the land utilization has already begun.
Unidentified Participant
Okay, so then a part of the land we are not utilized as yet.
Rishi Ramesh Pilani
Yes.
Unidentified Participant
Okay. So I mean, so from that perspective there is no risk that we will lose a part of the land because we didn’t proceed with the plans that we had.
Rishi Ramesh Pilani
No, as of now we don’t perceive any such result.
Unidentified Participant
Okay. The other question I have is like, you know, we might have incurred some kind of expenses for this project, be it in terms of doing any work, capex approvals, etc. Etc. So what that amount would be and would be write that amount off or it’s already expensed out.
Rishi Ramesh Pilani
So whatever the JV company had made expenses, those are already sitting in the JV company’s books as expenses. So like I said, we had put in about 10 crore rupees together. Five. Five. And I think currently the JV company has about 9 crore rupees in it. So approximately 1 crore has been spent over the last one and a half years.
Unidentified Participant
Okay. So I mean I just was trying to understand is there some major amount that we need to write off in the Ganesh venture plus limited balance sheet or.
Rishi Ramesh Pilani
No. No we don’t.
Unidentified Participant
Okay. Okay. My last question is, you know, can we have some kind of a dedicated timelines for the chemical business? I understand that you’re trying to revive it and things like that and bring a partner and all, but say, you know, from a shareholders perspective, you know, how are you thinking for the value unlocking from a chemicals business side and with timelines? Because a lot of things have happened and I know of course the reasons in the background, but now a lot of things have been sorted out. So can we have some kind of a timeline going forward now?
Rishi Ramesh Pilani
See if you think of thinking about the shareholders we have managed to generate, I think close to Amar explained the year over year increase. If you look quarter by quarter, corresponding quarter, we had a PBT of 7.1 crores against 2.2 crore. So which is an increase of 223%. So definitely all this is being done for the shareholders. While I would. While I understand that you are looking for a firm timeline but like I said that for us to give firm timelines it’s very difficult because it’s a dynamic scenario and everything depends on how the chemical division fits into the overall goals of the company, of how it can contribute further, it can grow further, or does it make more sense to have it as a separate entity? Does it make more sense to have it as a.
To sell it out, to have somebody strategic invest into it. So those are a lot of dynamic things happening continuously with the chemical division. So as I said right now our first goal is to make sure that this profit that we are starting to generate in it, we maintain it, we continue it and then probably in about end of this year, which is in March of 2026 is after we have another one year performance under our belt is when we start making those hard decisions on what we finally want to do with it.
Rishi Ramesh Pilani
You can see the trend of this chemical reason like June to June. I will give you the example. Like in June 2022 there was a number of quarterly number of 3 crore, then 2.5 crore, then again 3 crores crore. But from last four quarter it’s making a profit of around in the range of 5 to 6 crore and this quarter 7 crore. So obviously there is an upward trend only in this chemical design in last five quarters. So yes there is a growth and we are. We are evaluating more and more options for that.
Unidentified Participant
Yeah, sure. No, I appreciate that and thanks. Thanks for that insight. My final question is now I think we’ve got about 100 odd crores on the balance sheet in terms of cash plus investment or thereabouts. And I think some of the money that we would have probably raised from some investors for the LPG project. Now what do we plan to do with those funds? Because I think from our core business we are anyways generating a decent cash flow on annual basis and we’ve got a good amount of cash lying on the balance sheet. So what do we plan to do with that cash now?
Amar Kabra
Yeah, so like I explained already that for we need to develop another about eight and a half acres of land in jnpt. So we have a envisage capex for that. So we are. We are looking to deploy the funds for developing that capex asap whichever way we decide to go on that. But definitely our goal is that once the monsoons are over we should be able to start construction in some form of the manner over there to deploy the funds.
Unidentified Participant
Sorry, you said to start construction but construction for what?
Amar Kabra
That’s what I’m saying. It’ll be either liquid or lpg. That’s what we are deciding right now. It’s in my earlier answers I’ve said right that by this quarter end we want to close that.
Amar Kabra
Maybe liquid, maybe ammonia, maybe chemical, anything lpg.
Unidentified Participant
Okay. Okay. Sure. Sure. Thank you. Thank you so much for all the clarifications and we should. All the best. Thank you.
Rishi Ramesh Pilani
Thank you.
operator
Thank you. The next question is from the line of service Gupta from Maximal Capital. Please go ahead.
Sarvesh Gupta
Good afternoon sir and thank you for giving the opportunity. So you know I understood that you will decide whether to go for LPG or liquid to utilize the land that we have at jnpt. But just few questions around that. So one is that you had it said 11 acres was in JD right. And then in the presentation somewhere it is mentioned that 4.5 acres you had got. So. So what is the total amount of land which is available at JNPT as of now?
Rishi Ramesh Pilani
No, please understand. 11 acres was the allotted land. Out of that approximately 3 acres we have already developed for GBL’s own A class terminal.
Sarvesh Gupta
Okay, so understood. And hypothetically if we just to understand so we have a sense of the. The gas side because you were earlier added some plans around that. But if so right now we have 2.83 lakhs as our capacity in kiloliters and JNPT and if we were to utilize this remaining 8 acres, how much more can be achieved? Of course it will be achieved over many years maybe. But how much more can we build?
Rishi Ramesh Pilani
Approximately 1 to 1.5 lakhs. KL around.
Sarvesh Gupta
Okay. So around 30 to 50% increase can happen.
Rishi Ramesh Pilani
Yes, yes.
Sarvesh Gupta
With the land. Okay. Okay, understood. That’s all from my side.
Rishi Ramesh Pilani
Okay. Thank you.
operator
Thank you. The next question is from the line of Gautam Gupta, an individual investor. Please go ahead.
Unidentified Participant
Hello. Am I audible?
operator
Yes.
Rishi Ramesh Pilani
Yes.
Unidentified Participant
Thank you for the opportunity. I just heard that you said that you will be closing this quarter. That whether we should go for LPG or lst. So ABS also developed their terminal in JNPA and that is also quite big. So do you think if we go forward with the LST then there will be demand for our lst?
Rishi Ramesh Pilani
Well, see the thing is that we are also in the process of assessing that. That we have done a TEV analysis from BDO to understand that what would be the exact demand in this region. So. So we have everything in mind. Because not only at another terminal coming up in jnpt, there is another terminal coming up in Jagadh of Jindals. The work is. From what we understand the work is going on there also. So obviously we are going to take everything into assessment to make sure that we have at least some tied up volumes before we make this decision.
Unidentified Participant
Okay.
Unidentified Participant
So that Jagger. Jagger code that you are talking about. That is the contract we got from JSW for 159 crores EPC contract.
Rishi Ramesh Pilani
No, no, no, no, no. That’s. That’s different. That’s different.
Unidentified Participant
Okay. So another question I wanted to ask. Are we looking into hydrogen and green ammonia? Because half of the annual report of Reliance Industries is filled with these two terms. And even Aegis also developed structured a 36,000 metric ton of the pilot plant of green ammonia. And they said they want to go full throttle on it because they got a good demand for it. What are your views on these?
Vishal Pancholi
Well, we have allotted land in a new area for ammonia tank. So that land is available with us. But like I said, see the way we operate is that we first would like to tie up with a customer. Make sure that we have demand before we. Before we start making investments. So our philosophy is a little different.
Unidentified Participant
One more question that I wanted to ask is since the JV already has gone called off. But if it would have continued and we did a turnover of 200cr a year supposedly. So how much did GBL you would have got from this.
Rishi Ramesh Pilani
You mean post tax or what do you mean? Because this was in a spv, so it would have to be jv, right? It would not be. You could not appropriate revenues to you.
Unidentified Participant
Okay.
Rishi Ramesh Pilani
It would be. So GBL was investing through its subsidiary and so was grbw. Okay, so what is the exact question? Like what?
Unidentified Participant
Ultimately, ultimately the profit to the extent of 45% which is our share that JV, that will be gate club into our.
Rishi Ramesh Pilani
Okay, that was.
Unidentified Participant
Thank you so much.
Unidentified Participant
Last question. In previous concourse you said because of some regulations we are not able to utilize a GOA plant. And you are still thinking and discussing what to do to fully utilize that. Can we change that plant to LNG or something else? Lpg that must be under the regulations.
Rishi Ramesh Pilani
No, no. It is not a question of regulations of goa. The Supreme Court has banned mining in GOA because it was a. Basically a bunkering terminal.
Rishi Ramesh Pilani
Okay, so.
Rishi Ramesh Pilani
So that was the reason. It has nothing to do with state regulation.
Unidentified Participant
So nothing can be done in terms of lng, lpg, cryogenic or something like.
Rishi Ramesh Pilani
So it’s like this. There is. We have not closed. In fact right now also there is some very, very active discussion going on with one of the big oil companies regarding utilizing that. That land. Because initially also it was with BPCL only. So those things are always going on. But. But you have to understand that GOA on its own is not a very heavy industrial state. So there is very, very restricted demand which we are obviously working with the agencies to see how we can capitalize on that.
Unidentified Participant
Okay, my last request is to kindly update the website and IR relations. Email id investors are not able to reach the company.
Rishi Ramesh Pilani
Investors.com investors gblinstra.com that should be working.
Unidentified Participant
I have tried reaching them 1012 times but I haven’t gotten any reply. Even the website, GBL website is not updated.
Unidentified Speaker
It’s working and it’s updated also.
Rishi Ramesh Pilani
You have to go to www.ganeshbenzoplast.com.
Unidentified Participant
Okay, I’ll check this.
Rishi Ramesh Pilani
Yeah, please.
Unidentified Participant
Once again, thank you so much.
Rishi Ramesh Pilani
Thank you.
operator
Thank you. The next question is from the line of Rohit Koti from Marsh Mellow Capital. Please go ahead.
Rohit KothI
Thank you for the opportunity. Just. I mean I couldn’t hear the answer last time clearly. So in JNPT, our current capacity in LST is 283,000 KL, right?
Rishi Ramesh Pilani
Yeah, approximately that. Yes.
Rohit KothI
Yeah. So and we have excess capacity available with the LPG project not happening. So if we set up an LC LST capacity there, what and we max out the land utilization there, what can.
Rishi Ramesh Pilani
The capacity go to approximately 1 lakh, to 1.25 lakh KL.
Rohit KothI
Okay, so we’ll be able to add around 30 to 40% of our existing capacity there.
Rishi Ramesh Pilani
Correct.
Rohit KothI
Understood. So just one clarification there. I mean when the LPG project was planned the utilization of the land seemed to generate us quite a large amount of revenues as compared to what is possible if you do lst. I mean is my understanding correct?
Rishi Ramesh Pilani
No. I see. Again we don’t look at things on revenue basis, we look at it on pat basis. That’s the way we evaluate our projects. So the pat differential is not, is not too substantial. The main differential was that there is a, that with LPG we could have tied up with assured revenues and profits to a certain extent with one of the largest LPG companies in the world. That was the main motivation behind it. In terms of profitability and all, you would not have a very big substantial difference between the two projects.
Rohit KothI
When you say profitability substantially the same I mean is broadly the same. Do you mean to indicate that the combined jv, the profit that we would have generated there would broadly be equal to what GBL would.
Rishi Ramesh Pilani
What I mean is GBL share of that profit.
Rohit KothI
Okay, so the, if so the combined LPG project profits would have been higher.
Rishi Ramesh Pilani
Correct. But then 55% would be their share.
Rohit KothI
No, yeah, understood, understood, understood. Okay, so the GBL share would broadly be the same if you had gone for LST or if you had gone for. Okay. And the attractiveness, I mean the attraction for the LPG project was the surety of the contract that we would have gotten via bw.
Rishi Ramesh Pilani
Yeah, that also for a certain, not the, for the full, all the throughputs but the almost one throughput they had assured us and the fact that they are the biggest shippers of LPG in the world, it was very likely that they would be able to get cargoes to our terminal.
Rohit KothI
Understood. Fair enough, thank you. So by this quarter end we would get a sense of what we would do with that remaining land, right?
Rishi Ramesh Pilani
Yes.
Rohit KothI
Okay, thank you. And sorry, one last question. If we do go for either of them, I mean what is the range of capex that would be required for this?
Rishi Ramesh Pilani
So if we go just for pure lst, the capex requirement would be somewhere in the range of approximately, approximately I would say close to 150 or 200 crores. But if we go for ammonia or if you go for LPG then be close to in the range of 800 to 900 crores.
Rohit KothI
Understood, thank you. That’s it for me. Thank you so much.
operator
Thank you. The next question is from the line of money scaler and individual investor. Please go ahead.
Unidentified Participant
Hi. Thanks for taking up my question. So when I look at the ppt, I find that the Cochin terminal had some plant modification last year. And because of which our volumes were impacted. So is that modification completed or is it still underway?
Rishi Ramesh Pilani
No, it’s done.
Unidentified Participant
Okay. So what is the expectation in terms of volumes as far as Cochin terminal is concerned?
Rishi Ramesh Pilani
For this year as on date, the terminal is 100% occupied.
Rishi Ramesh Pilani
Okay. So our volume should be greater than FY24 volume.
Unidentified Participant
Right.
Rishi Ramesh Pilani
Which were peak volumes.
Rishi Ramesh Pilani
Yes. Yes.
Unidentified Participant
Okay. All right. Thank you.
Unidentified Participant
Thank you.
operator
Thank you. The next question is from the line of Udit Gupta, an individual investor. Please go ahead.
Unidentified Participant
Good afternoon, sir.
Unidentified Participant
Sir, is the Morgan case closure complete in the court right now?
Rishi Ramesh Pilani
Yeah, it got. It got closed on August 7th. Yes.
Unidentified Participant
So that means that all the restrictions are now off like.
Rishi Ramesh Pilani
Yes. Yes.
Unidentified Participant
Okay. And sir, for the NBSP cases, have any other people withdrawn their cases or any progress on that front?
Rishi Ramesh Pilani
No, no, no. They haven’t withdrawn their cases yet. But the good part is that recently we were able to get a court order which in case of one of the NBFCs. Clearly the court has ruled that these documents are not proper. They are fraudulent. So no agency should be acting on these documents against the company.
Unidentified Participant
So that applies to all NBFCs.
Rishi Ramesh Pilani
It doesn’t automatically apply. But what we are hopeful for is that it sets the precedence for all the other NBFCs. Because the case is same.
Unidentified Participant
Right, Right. Get your answer. There was an exceptional item in this quarter, sir. What was it about?
Rishi Ramesh Pilani
This was some GST audit for dues for last five years. So this audit was done in this.
Unidentified Participant
Year not related to this BW or any of those?
Rishi Ramesh Pilani
No, no. There was a against. There was a gst audit for five years. So they removed some dues of 1925 lakhs again.
Unidentified Participant
Okay. And sir, I think you just spoke something about the compensation from bw. I could not hear that time. Sir, is there anything upcoming on that front?
Rishi Ramesh Pilani
See, we are in discussions with them that they should consider something. But there’s nothing signed as of now with them.
Unidentified Participant
No, get your point.
Unidentified Participant
And so for jnpt, I think there was a least anyone coming up. So when is that?
Rishi Ramesh Pilani
So the lease renewal tender was done and the LOIS are yet to be issued. But we are hopeful that they will be issued soon. So then we will retain the land for the next 30 years.
Unidentified Participant
Okay. And sir, will the cost of the lease or the payment that we need to do that. Is that going up?
Rishi Ramesh Pilani
Yeah, that will go up because the lease rentals will be reset to what? What JNPT expects to do this. But, but the good part is since we had the first right of refusal, so the land came back to us and then we are for next 30 years now at least the land remains with us.
Unidentified Participant
Then it’s been renewed for.
Rishi Ramesh Pilani
It’s not renewed, but the tendering process is done.
Unidentified Participant
Okay. And you have the right of first. So these lease payments need to be done on an annual basis or like annual basis?
Rishi Ramesh Pilani
Yes.
Unidentified Participant
And sir, does that mean that our costs will now go up and the margin will come down for the tanks?
Rishi Ramesh Pilani
See, the cost definitely will be revised upwards. Our expectation is that whatever cost gets revised upwards, we should be able to cover it within a year or two.
Unidentified Participant
By passing on the pricing, the price increase. Okay, but it could take a few quarters.
Rishi Ramesh Pilani
Yeah, I mean, because the. But because see, it’s like this, then it’ll be steady for the next 30 years. There’s only a 2% escalation after that every year. Yeah, year over year.
Unidentified Participant
So it could take some time to pass. Sir, one more small thing, sir. In the presentation that you have given, sir, it shows that the JNPT rental revenue has fallen in FY25 by around 3.4crore rupees from the last year before that.
Rishi Ramesh Pilani
I explained that in my first answer that this year between April to June, we had taken very extensive repairs work at JNPT terminal.
Rishi Ramesh Pilani
And last year this was due to that Cochin thing.
Unidentified Participant
No, no, I’m talking about only the JNPT rental revenue.
Unidentified Participant
Okay.
Unidentified Participant
Yeah, not the overall.
Rishi Ramesh Pilani
I’m saying that in the answer to my first question that this year between March to. Let’s say March to June, pre monsoon, we had taken up quite a few tanks for regular monsoon maintenance and other big sort of capex maintenance. So that. That during that quarter we were not able to really fully push the storage.
Unidentified Participant
So that is in 2024. Monsoon you’re talking about?
Rishi Ramesh Pilani
No, no, this now 225.
Unidentified Participant
25.
Rishi Ramesh Pilani
Yeah.
Rishi Ramesh Pilani
Okay.
Unidentified Participant
And so we can expect, like earlier used to say that the rentals are expected to go up by around 5% a year. So is that a reasonable assumption going forward?
Rishi Ramesh Pilani
Yes, that. That is what we expect. Yes.
Unidentified Participant
Okay. Thank you so much.
Rishi Ramesh Pilani
Thank you. Thank you.
operator
Thank you.
operator
Thank you.
operator
The next question is from the line of Artik Gora from Virea Capital. Please go ahead.
Unidentified Participant
Yeah, thank you for the opportunity. Just to reiterate from the previous discussion. You said the retendering of this GNPT land is done and you are confident of re getting the lease for other 30 years, correct?
Rishi Ramesh Pilani
Yes.
Unidentified Participant
Okay, just one question. This is my understanding that as per.
Unidentified Participant
The land use policy of ports, there.
Unidentified Speaker
Is some, you know, pre approved reason for which the land will be utilized. This is a nice question. Is it so that if you choose either NPG or nft, you have to seek a separate approval or something or you already have approval?
Udit Sharma
No. So basically both come under storage of liquids because LPG is also stored in form of a liquid which is liquefied petroleum gas.
Udit Sharma
Okay.
Rishi Ramesh Pilani
So it is required if we wanted.
Rishi Ramesh Pilani
To do some manufacturing activity there, we wanted to put container storage terminal, something which is not covered as a part of liquid storage, then yes, you would require a separate change of use.
Udit Sharma
Okay, got it.
Sarvesh Gupta
Thank you. Again, in my question, you are choosing to either do LST or lpg. Is the land parcel available because of scale issues or something? Is it necessary that you have to do either? Or can you, you know, demarket and do both in the same area available? I’m just understanding if there are any.
Rishi Ramesh Pilani
Reasons to choose one, we can do both. But only thing is in that case the LPG will have to be scaled down because of the distance requirements.
Udit Sharma
Okay, understood, I got the point.
Unidentified Participant
And just one last one. You know, with the kind of cash approval that we’ve been doing in a.
Udit Sharma
Very steady business on the lst part.
Unidentified Participant
Are we looking to maybe look at our dividend policy and pay out some dividend going forward? Just what’s the thing thought process of.
Unidentified Participant
The board on that?
Rishi Ramesh Pilani
Yeah, we are already talked on this issue because up to this Morgan issue we are not able to do that. But now, yes, this matter has been resolved and this year we are definitely going to think on that. And yes, we’ll go ahead with this dividend thing for this financial year.
Unidentified Participant
Okay, thank you for the answers and again, thank you for also doing the call.
Unidentified Participant
Despite all the challenges that we facing in the short term and all the.
Unidentified Participant
Best for the future.
Rishi Ramesh Pilani
Yeah.
Rishi Ramesh Pilani
Thank you.
operator
Thank you, ladies and gentlemen. We would take that as the last question for the day and I would now like to hand the conference over to Mr. Rishi Pilani for closing comments.
Rishi Ramesh Pilani
Thank you. I’d like to thank everybody for taking out time to join us for this call. If you have any follow up questions, please feel free to reach out to any of us. The website is www.ganeshbenzoplast.com and the email id is investors at the rate of gblinfra.com. thank you so much.
Amar Kabra
Thank you, everyone.
operator
Thank you. On behalf of Ganesh Benziflash Limited that concludes this conference. Thank you for joining us. And you may now disconnect your line.