Godavari Biorefineries Ltd (NSE: GODAVARIB) Q3 2025 Earnings Call dated Feb. 10, 2025
Corporate Participants:
Samir Somaiya — Chairman & Managing Director
Ashish Sinha — Assistant General Manager (Investor Relations & Finance)
Analysts:
Prachi Ambre — Moderator
Prathamesh Sawant — Analyst
V. Rangan — Analyst
Sakshi Trivedi — Analyst
Dhruv Muchhal — Analyst
Sahil Vohra — Analyst
Pratik Tholiya — Analyst
Devang Mehra — Analyst
Presentation:
Operator
Ladies and gentlemen, good day and welcome to Godavari Biorefineries Ltd. Q3 and 9 months FY25 earnings conference call. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the 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 Ms. Prachi Amre from Orient Capital. Thank you. And over to you, ma’am.
Prachi Ambre — Moderator
Good afternoon everyone For Godavari BioRefine Edition Limited Q3 and 9 month earnings conference call today. On the call we have Mr. Sameer Soumaya, Chairman and Managing Director and Mr. Ashish Sinha, Assistant General Manager, Investor Relations and Finance. Before we begin the call, I would like to give a short disclaimer. This call may contain some of the forward looking statements which are completely based upon our beliefs expectations as of today. fThe statements are not a guarantee of our future performance and involve unforeseen risks and uncertainty. With this, I would like to hand over the call to Sameer sir for his opening remarks. Over to you, sir.
Samir Somaiya — Chairman & Managing Director
Thank you. Thank you, Prashi. Good afternoon ladies and gentlemen. On behalf of Godavi Biorefineries Ltd. I extend a warm welcome to all participants on our Q3 and 9 month financial year 25 financial results discussion poll. I hope you’ve had the opportunity to review our financial results and investor presentation which have been uploaded on the stock exchange and on our company website.
We use the IPO proceeds to pay down the term debt of rupees 240 crores. During the quarter we will see the benefit of this repayment in terms of reduced interest and principal payments. From the current quarter onwards. We remain committed to strengthening our business as we progress on our journey to growth and operational excellence. We are continuing to diversify our revenue stream with a strategic focus on bio based chemicals and strengthening our ethanol division through the exploration of multiple feedstocks. At the core of this transformation are our three DSR registered R and D centers. Supported by a team of more than 50 dedicated research professionals. The biochemicals and ethanol segment is poised to become a key driver of our future expansion reinforcing our vision of building a sustainable innovation led biorefining business. We have taken significant strides in our commitment to operational excellence and sustainable growth.
One of the key highlights this quarter has been the successful debottlenecking at a bio based chemicals unit enabling US to expand 1, 3 Duran glycol production capacity from 120 tons per month to 200 tons per month at full utilization. This expansion reinforces a strategic focus on high value bio based chemical segments and we will be further debotting other chemical capacities in the coming quarters to meet rising market demand. Another key highlight for this quarter is an exclusive India License agreement with Catalyx Inc. For the conversion of ethanol into biogutanol and other higher alcohols. This agreement enables us to convert up to 30,000 metric tons per annum of ethanol. Godabri will be in the first phase constructing and operating a state of the art facility to design to produce 15,000 metric tons of biobutyrol and higher alcohol annually, marking a significant milestone in the company’s commitment to decarbonisation and sustainability.
Our distillery division performed strongly contributing to 39% of revenue in Q3 FY25 driven by the government’s decision to resume full scale ethanol blending. With strong market traction anticipated, we are further strengthening the segment through our investment in a new dual feed 200 kilolitres per day corn grain fungible with our sugarcane based distillery. This facility will not only significantly enhance our long term ethanol production capacity but will also be designed as a dual speed fungible unit allowing for greater flexibility and efficiency in production and simultaneously mitigate climate and policy risk.
This quarter we encountered headwinds including a reduced sugar release quota and a delay in commencement of sugarcane crushing due to directives from the Karnataka Government for improving sugar recovery. In January 25th the government has allowed a million ton export of sugar from India. This has improved sugar prices and will help the industry that was facing pricing pressures in the last quarter in the sugar sector.
Amidst these challenges, revenue from operations grew at 12% year on year to approximately 447 crores in Q3FY20 compared to 398 crores in Q3FY24. EBITDA stood at approximately 40 crores with a margin of around 9% while PAD stood at roughly 6 crores for the quarter. With a debottlenecking of chemical capacity, licensing of the technology to make more bio based chemicals, placing an order for corn grain based ethanol plants and paying down our debt.
We are well on the path of driving efficiencies, optimizing costs and ensuring long term sustainable growth. I would now hand over the call to Mr. Ashish Sinha to discuss financial performance.
Ashish Sinha — Assistant General Manager (Investor Relations & Finance)
Thank you sir. Good afternoon everyone. We are pleased to report revenue from operation of 447crore for Q3 of FY25 reflecting a 12% year on year growth for the nine month period of FY25 revenue stood at approximately 12.91crores making a 20% increase over the previous year. EBITDA for the quarter three of FY25 was 39.6 crores with a margin of approximately 9% while the nine month EBITDA stood at negative rupees.
One crore PAT of the quarter was 5.8 crore and for the nine month period it stood at negative Rs. 95 crore with a PAT margin of 1.3% for the quarter this quarter the Sugar practice in North Karnataka were asked to start the season in mid November. This delayed start to the silver peak crushing season impacted our financial performance for the quarter. However, we remain resilient and forward looking.
The debottle of chemicals along with planned future investments in bio based chemicals and ethanol position us strongly for sustainable growth. It is important to note that some of our business segments are single in nature leading to quarterly valuations in performance. As such, the financial results for this quarter may not be fully indicative for our annual performance.
On a positive note, we have significantly reduced our debt by utilizing proceeds from our ipo. This strategy deleveraging aligns with our vision of enhancing free cash flow, strengthening our balance sheet and enabling future investment in energy and bio based chemicals. We remain committed to long term value creation and are confident in our ability to deliver stronger performance in the coming quarters. Thank you. So we can start. We can open the floor for the Q and A.
Questions and Answers:
Operator
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press Star and one on their Touchstone phone. If you wish to remove yourself from the question queue you may press star and 2. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles again. If you wish to register for a question please press star and 1. Our first question comes from the line of Prathamesh Sawant from Mirai Asset Capital Markets. Please go ahead.
Prathamesh Sawant
Thank you sir. Thank you for the opportunity. So just one quick question. Just wanted to understand what percentage are distillery capacities sugar based and what percentage is grain based? And in conjunction to that, what will be the impact you are seeing on the molasses or sugar based distillery given the recent hike in the FRPS and relatively lower hike in the sea Heavy Anonymous.
Samir Somaiya
Hi, thank you Pradamesh. I’m just going to ask you to repeat that question. What percentage of our distillery capacity is and then I did not hear Clearly.
Prathamesh Sawant
Okay, so what percentage of our distillery capacity is grain based and what percent is, you know, sugar molasses based? So given that we are seeing FRP increase for two consecutive years and a relatively lower increase on the sea heavy prices of ethanol, just wanted to understand your impact on the distillery business margins.
Samir Somaiya
So thank you for that question. Currently our distillery capacity is 570 kilolitres per day. Entirely based on feedstock coming from sugarcane which is sugarcane juice during the season and B molasses in the off season. We have placed an order for 200 kiloliters per day. Of that we are targeting for commissioning from Q4 of this current financial for the current, sorry coming financial year which is fy 26. So that hopefully answers your question on the capacities. The second question is the effect of the increase in FRP vis a vis A. You know, in fact, as far as sugar cane juice or B molasses is concerned, the prices have remained the same. The industry is requesting the government to look at increasing the prices of ethanol derived from sugarcane juice and from the heavy molasses in line with the increases of the FRP maize. But repeating the point, the reason we are investing in a maize splashed rain based facility is to diversify a participate greater in the market of the ethanol blending program and also provide ourselves an additional feedstock to mitigate against climate and policy risk.
Prathamesh Sawant
That I got it. But the overall vis a vis last year, do you think what kind of. If you can quantify what will be the negative impact on the margins with no revision on this. Also because you know, since production this year has also been lower, so we’ll see lower amount of sugar diverted towards ethanol. So we can probably will be seeing lower capacity utilization for the distillery factories. So overall, what do you see the negative impact on margins for this business?
Samir Somaiya
So I would like to answer your question in two ways. The first is last year, that is in FY24, the government had suspended the ethanol blending program from sugarcane juice that affected our overall capacity utilization of the facility both in terms of sugarcane crushing and as well as ethanol production. This year the government has restored the program of lending from sugarcane juice. So as far as Godavari is concerned, we are going to see better on a daily basis of the production of sugarcane as well as the ethanol produced at our facility. So although an increase in cane juice, sorry in sugarcane prices and not a corresponding increase in ethanol so produced is going to affect margins, the overall benefit of producing sugarcane ethanol in a baser in a higher manner is going to compensate for the same. So I’M talking generally not with exact numbers.
Prathamesh Sawant
Okay, thank you. Thank you.
Operator
Thank you. Participants, you may press Star and one to ask a question. The next question comes from V. Rangan, an individual investor. Please go ahead.
V. Rangan
Good afternoon sir. I saw the results but I am not happy with the results in the sense that Your issue was about 373 or 62 and the market has punished you because all the public issues were above the mark. And our company, I feel that the promoters have taken nothing left on the table for the investors. And that is what I see as I see that as a nine months turnover it was 1075 crores last year. This year more than 1298 crores. But still your profit actually 78 crores and it has gone to 97 crores and you have paid about 306 crores actually as a lo. And what is it going to be the when you complete all the expansions as of today, I think there is no point in going for expansion like that. This is what I see. And what is the how much megawatt is there for with us and how did install capacity of the sugar plant? Everything. And what is the current price of ethanol? I mean the what the government is giving and what is a when it be going to be a turnaround? Actually in the next two years it will take and interest is also as a percentage is very high. Please answer all these questions. Thanks.
Samir Somaiya
Thank you for the question. I would like to if you’re asking what is the when is the turnaround going to happen? Is that the question? I would like to say with the IPO the turnaround is happening as we speak. In the last quarter the IPO was done and the principal term debt was reduced by about 240 crores.
The reduction in interest and principal repayments will happen from this current quarter onwards. The second point is that right after the IPO we sped up the investments in debottlenecking of our bio based chemical capacity. We have just late last month announced the 1,3 butylene glycol that has happened and in the next coming quarters we will see further debottlenecking of bio based chemicals which will reflect an improvement in the EBITDA of the segment as we keep coming in the coming quarters.
As far as the business of the sugar ethanol segment is we are a seasonal business and because of the delay in starting of our season as recommended by the government of Karnataka, we could not start the season as planned. We will see performance in our sector. Quarterly performance changes depending on the season in which we operate. So you will see performance also changing by quarter. Particularly in Q4 of any financial year. We do see the numbers reflecting the greatest seasonality in terms of our operations.
With the investment of bio based, sorry, grain corn based facility that we are now investing in. You will also see that our ethanol business will work with a multi feedstock, dual feedstock to mitigate climate risk. So all this we are making a transition into participating greater in the ethanol blending program of the government of India. We are working towards a multi feedstock system and also increasing capacity of grain bio based chemicals. I would request you to look at us as a transition in this business and you will see the performance as we go forward.
Prathamesh Sawant
Installed capacity of sugar and ethanol plant and megawatt. How much? Megawatt is itself sufficient. So how much?
Operator
Mr. Rangan, may we request to return to the question queue for follow up questions please. Thank you. The next question comes from the line of Sakshi Trivedi from SNK Capital. Please.
Sakshi Trivedi
Hi sir. Thank you for the opportunity. I have a couple of questions. Firstly, how are your three R&D centers contributing to the future innovation and are there any new bio based chemical products in the pipeline? My second question would be can you provide an update on the current production capacities for ethanol and sugar? Additionally, what is the company’s total gross profit block as of today and how much further capitalization is planned on.
Samir Somaiya
So our RNB facilities, thank you Sakshi for the question. We are innovation led by refining company. We have more than 50 scientists working across our three R&D centers working for a pipeline of products and co creating solutions for customers as the world tries to move towards a lower carbon footprint. The main research that we do is done in our R and B facility near Mumbai. And then we do greater research for our products when we do at slightly larger scale or pilot scale both in our facilities in Maharashtra and Karnataka. Our strategy is to look at creating bio based chemicals which are specialty in nature which are derived either from the ethanol or from the sugarcane bagasse based footprint. And that’s what we are creating a pipeline of development and products as we go forward. So that answers part A of your first question. Go to part B of your first question. What are the possibilities that we are looking to do? We have just debottlenecked one of our products 1,3 butylene glycol in late January. In the next coming quarters we will continue to debottleneck the capacities of our other existing specialty chemicals. And you will see the performance of that as the quarters come on that’s the second part. In terms of a large new capacity being created. We have signed an agreement with a US firm Catalyx Incorporated for investing in a biobutanol facility and higher alcohol which we will plan to commission in Q2 of financial year 27. That’s my second part of your first question. Your second question was what is the gross block? It is 1245 crores. And are we looking to invest more? We are looking to invest in the dual feed corn grain based facility of 200 kilolitres per day which is targeted to commission in H2 of FY26 and to be more specific, Q4.
Sakshi Trivedi
Okay sir, like you have answered all the questions very well. I have a follow up on the financial side. Could you share details on the company total borrowing and the expected interest expense going forward?
Ashish Sinha
What’s the second question?
Samir Somaiya
Interest going forward?
Ashish Sinha
In terms of the debt. So as at December 24th the debt stands at 405 crores. Now in terms of interest cost so from the IPO proceeds we have made a prepayment of rupees 240 crores. So that will lead to the interest saving to the extent of 24 crores. Along with that our external credit rating has been improved. So earlier it was stable and improved to triple P plus. So we are expecting and requesting the banks to reduce the interest cost further. In addition to that we are taking interest submission loan of the of the dual fit project grain based ethanol to the exchange of 119 crores. That will at a rate of 5.4% Approximately. So that will add to the cost. So this will of course lead to the saving in the interest cost.
Sakshi Trivedi
Okay. Okay. So one last question from my side. It’s related to your Capex plan. So can you give more insight about those and like what are the three, three key areas of investment and how do you see contributing these contributing to the growth and operate operational efficiencies.
Samir Somaiya
So three aspects Akshi. We are transitioning. Three. Sorry, three aspects Akshi. Our aim is to do our investments and transition our business into the ethanol program as well as the bio based chemicals program. These are the two things. Ashish has just explained that we will be investing in creating a corn grain based facilities to increase our participation in that program and also mitigate against climate and policy risk. So that’s one. The second one is that we have licensed the technology and if I’m repeating myself, please hear me out. That is to make biobutanol and higher alcohol which will be targeted for commissioning in Q2 FY27 the other investments that we’ll do are de bottlenecking in existing bio based specialty chemical capacity where we are seeing a stronger demand going forward.
Sakshi Trivedi
Thank you so much sir. Sorry for the repetition. Thank you so much.
Samir Somaiya
You’re welcome.
Operator
Thank you. A reminder to all the participants, if you wish to register for a question please press star and one on your Touchstone phone. Our next question comes from Dhruv Muchchal from HDFC amc. Please go ahead.
Dhruv Muchhal
Yes sir. Thank you so much for the chance. First question was on the biobutanol technology. So what is the capex that will be required for the 15,000 ton plant? And if you can probably share some thoughts on the market for this product, how is it currently, how it can scale and how the technology gives you a differentiating edge in terms of entering this market.
Samir Somaiya
So thank you for the question, Dhruv. We have just licensed the technology from Catalyx Incorporated. Our engineering teams are currently working with each other to get an accurate estimation of the plant. I would like to answer that question probably in the next meeting when we will have a much better estimate of that cost. The second question that you said is what is the market for this product? The market for this product is there are many companies globally which have articulated a path towards the net zero. Butanol as such is a large molecules that is being consumed world over. The biobutanol is interested to these customers primarily because it helps them go towards the path to net zero. So this is the opportunity we see. We are working and talking to customers in Europe and all over the world and they have already articulated a desire to buy the products that we will do to make sure that the risk is properly managed. We are planning to implement in phases. We will first implement this at 15,000 tonnes. It is a combination of biobutanol and higher alcohol which we are confident of selling. And then after we do that we will look to expand to 30,000 tons. The technology itself, biobutanol is made with various technologies. We have done an assessment of this technology and found this to be the best technology currently of biobutanol that we found. And it is because of its cost leadership of this technology in the field of biobutanol that we have chosen.
Dhruv Muchhal
This is helpful. Probably we will understand more as it evolves. So the second question is on the ethyl acetate market, how is the market currently and near term? How do you see it evolving?
Samir Somaiya
Thank you again for that question. Our view on ethyl acetate is that it is a commodity chemical Our strategy going forward is to increase our business in bio based specialty chemicals. We do not. So we will basically maintain our position in ethyl acetate. There is separately a segment of bio full bio based ethyl acetate where acetic acid and ethanol are both green. Ethanol anyway is green. So we will look forward to growing business.
Dhruv Muchhal
Just from the spreads perspective for this quarter, how are they and are there any improvements you’re seeing in the current quarter
Samir Somaiya
For which product?
Dhruv Muchhal
For ethyl acetate.
Samir Somaiya
Ethyl acetate, we are seeing that these spreads remain, you know, same.
Dhruv Muchhal
Okay. Broadly similar QOQ Y basis.
Samir Somaiya
That’s right.
Dhruv Muchhal
Sure sir. Thank you. And all the best. Thanks.
Samir Somaiya
Thank you very much.
Operator
Thank you. The next question comes from Sahil Vora from Ms. Associates. Please go ahead.
Sahil Vohra
Good afternoon sir. Thank you for the opportunity. I have a few questions. Firstly, can you elaborate on the impact of the reduced sugar relief quota on your revenue and profitability? How do you expect this to play out in the coming quarters?
Samir Somaiya
Thank you Sahil for that question. I think the reduced sugar quota for the quarter has resulted in the lower sugar sales for the quarter and therefore it would mean a lower cash flow for that quarter leading to an increase in inventory compared to what we would have anticipated. The release of the sugar export quota by the government of India by 1 million tonnes has actually improved the market sentiment which was under pricing pressure of sugar in the last quarter. We do, and in that sense, since the pricing is, you know, the pressure has gone down, we would be selling the sugar that we would not have sold in the last quarter, in the coming quarter at prices that would be similar to or better than they were in the last quarter.
Dhruv Muchhal
And why was pressing delayed in the quarter? If you could please.
Samir Somaiya
That was a recommendation by the government of Karnataka and the recommendation was based on anticipating that the recovery of sugar would be better if the season starts started later and therefore the season. So there was a recommendation or advice from the government of Karnataka to start in mid November and we did so and our recoveries are better than they were in the previous season.
Sahil Vohra
Okay, understood sir. My next question is how is the ongoing sugarcane crushing season processing and what key trends are you observing in terms of yields, recovery rate and the overall light production?
Samir Somaiya
Thank you again for that question. So currently our sugar cane crushing is going strong. We are seeing and the recovery is better than the corresponding period of last year. So this is a question on the current scenario. We are also seeing lower yields of sugar cane as we harvest the cane right now and effect on what that would do on the Overall crushing will be more possible to see in March to see what is the effect of the lower yields as we see forward.
Dhruv Muchhal
And sir, how do you see this impacting your sugar segment’s performance in the coming quarter?
Samir Somaiya
Overall You’re talking of the current quarter. You mean this Q4?
Sahil Vohra
Yes,
Samir Somaiya
I think the Q4 normally for us is a strong quarter. The effect of lower yields will have to be seen in terms of what happens on the ground. And that will be better told when we see it in March. What is happening? It would be too early to predict right now.
Sahil Vohra
Okay, fair enough. And how significant is the exclusive agreement with Catalycing Incorporated and what is the expected revenue contribution from this initiative?
Samir Somaiya
So the. Thank you again for that question. The exclusivity is for manufacturing in India. I want to just specify that, it is very good because India is one of the places where the biobase industry is strong. And we look at India as a base to which we can sell globally, for which we have global rights. The revenue expected at 100% capacity utilization would be in the order of 250 crores, which we will probably hope to achieve in the second year of operation.
Sahil Vohra
Okay. Okay, got it. Sir, if I can ask one more question. I just have one last question. In the last quarter you highlighted strong demand in sectors like fragrances with products like 1, 3 butylene glycol and ethyl vinyl ether. Which other segments within bio based chemicals are expected to see strong demand and what initiatives are in place to further expand this segment given that there are hardly any regulatory challenges for the same.
Samir Somaiya
So thank you again for that question. We are seeing strong demand across the sector in bio based chemicals and that is the reason we have debottlenecked bunzybutylene glycol itself right now. And we are doing the same with debottlenecking other places where we are seeing strong demand, but we are generally seeing an increased demand across this space.
Sahil Vohra
Okay, sir, thank you so much for the detailed responses and all the very best. That’s it from everyone.
Operator
Thank you. A reminder to all the participants, if you wish to register for a question, please press star and 1. The next question comes from Pratik Tolya from Systematics. Please go ahead.
Pratik Tholiya
Yeah, sir, thanks for the opportunity. Just wanted to know what is the export quota that you have been allotted?
Samir Somaiya
Our export quota over the 1 million tons is about 5,400 tons.
Pratik Tholiya
5,400 tons.
Samir Somaiya
That’s right.
Pratik Tholiya
Okay. And sir, are we going to export it or are we going to trade it for a domestic quota?
Samir Somaiya
We will export the same. We have already contracted and starting and some of it is already being sold.
Pratik Tholiya
And sir, at what price are we for? Have we contracted
Samir Somaiya
Better than local prices is what I will say.
Pratik Tholiya
Okay. And some currency depreciation also here will help, right?
Samir Somaiya
That’s right.
Pratik Tholiya
Okay. And so just globally, how are the, you know, how are the situation with, you know, global sugar prices? If you could just throw some light on how Brazil is performing right now and where do you see the global prices trending?
Samir Somaiya
Thank you for the question, but I am not exactly, you know, I think the global markets are very volatile and climate related issues and geopolitical issues often have an influence on global commodity prices. So I would not like to comment on where the market is headed based on these reasons.
Pratik Tholiya
Okay, sure sir. Thanks. That’s it From my side. Thanks and wish you all the very best.
Operator
Thank you. The next question comes from Devang Mehra from SKB Capital. Please go ahead.
Devang Mehra
Thank you for the opportunity, sir. So I have a couple of question. So sir, which segment do you expect to overtake other in terms of revenue contribution and how do you see the overall revenue breakup evolving over the next five years?
Samir Somaiya
Thank you for that question, Devang. With the debottlenecking of chemicals, the investment in, sorry, the licensing of biobutylar and higher alcohol, we clearly see the bio based chemical business growing. Similarly with the investment in a maize grain based distillation facility, we see the ethanol sector also growing. In the immediate Future which is FY26, we will see the ethanol business take a larger place. FY26, FY27. With the investment of debottlenecking chemicals as well as in the biobutyanol licensing facility, we will start seeing that business also growing from FY start with FY26 itself and continuing to grow FY27 and onwards. Sugar making of sugar we considering right now to see primarily as static. So both the businesses of bio based chemicals and in ethanol we will grow immediately. The ethanol will grow and then chemicals will also grow long term.
Devang Mehra
Okay, sir, got it. So I just want to understand which segment contribute to exports and what is the company’s strategic focus for exports going forward. Additionally, any updates on government consideration consideration of allowing limited export of specialty sugar and its potential impact on our on our business
Samir Somaiya
See exports, our strategic option is to work and co create solutions with customers in various end use segments such as fragrances such as skin care, such as coatings such as adhesives across the board. So that is a Strategic direction our bio based chemicals will go. I would also like to add that India is also growing well and from being the fifth largest economy in the world, it will soon become the third largest economy in the world by the turn of the decade. So we are also seeing good growth in these sectors in the country. So our is to create solutions from bio based chemical solutions which are required by Indian and global customers in that path towards the lower cuff for footprint.
When it comes to sugar it depends on government policy which is reflected on the government looking at the availability of sugar in India. Availability to meet the ethanol blending program and then make available sugar for export. So as the government will open a window for export we will at that time participate in that as we always have been strategically bio based chemical ethanol when the government policy allows after meeting the needs of the nation.
Devang Mehra
Okay sir, got it, got it. And so my next question is like our debt has been reduced from 650 crore to 450 crore. So what would be our like target debt level and do you see like any further deleveraging going forward?
Samir Somaiya
So Ashish had specified earlier that we have reduced our debt using the IPO proceeds and debt has been reduced by 240 crores. We will borrow more money under the interest subvention scheme to put together our grain based ethanol facility. And so that’s there. And there will be a normal principal repayments on existing debt that will have a balance of further debt coming down. So it will be a combination of new borrowing for the ethanol program. What we’ve already reduced by the proceeds of the IPO would be a normal principal repayment on the existing debt and combined with that any needs of working capital that may come along.
Devang Mehra
Okay, so got it, got it. And so my last question would be.
Operator
Sorry to interrupt. The line for the current participants has dropped from the queue. We’ll move on to the next question. Next question comes from the line of dhruv Motech from HDFC AMC. Please go ahead.
Dhruv Muchhal
Yes, thanks for the follow up. Sir, just a question on for the three months, for the quarter and for the nine months if you can split the volume growth in the bio segment between ethyl acetate and exethyl acetate.
Samir Somaiya
I’m sorry, I did not hear your question.
Dhruv Muchhal
For the biochemical segment between the ethyl acetate and non ethyl acetate for the third quarter and for the ninth.
Ashish Sinha
So against the total revenue of
Dhruv Muchhal
If volumes is possible because the revenue can have lot of raw material price fluctuation.
Samir Somaiya
On the volume side I will get back to you on that for the revenue side. So for the three months, the revenue from the Italian architecture is to the extent of 60 crores. Specialty bio based chemicals. And for the 9th month it is approximately 180 crores of ethyl acid.
Dhruv Muchhal
Okay. And this is same for last year was.
Samir Somaiya
So the last year is to the extent of 230, 240 crores near about.
Dhruv Muchhal
For nine months. And for the quarter.
Samir Somaiya
For the quarter. I have to get that to you.
Dhruv Muchhal
Okay. No, thank you. Thank you so much.
Operator
Thank you. Ladies and gentlemen, in the interest of time, we’ll take that as a last question on behalf of Orion Capital. That concludes this conference. Thank you all for joining us. You may now disconnect your lines.