Note: This is a preliminary transcript and may contain inaccuracies. It will be updated with a final, fully-reviewed version soon.
Gujarat Narmada Valley Fertilizers and Chemicals Limited (NSE: GNFC) Q4 2026 Earnings Call dated May. 19, 2026
Corporate Participants:
D. V. Parikh — Executive Director & Chief Financial Officer
Rajesh Pillai — Company Secretary and Compliance Officer
Nitin Patel — Executive Director
Tejas Shah — General Manager of Marketing
Analysts:
Unidentified Participant
Nirav Jimudia — Analyst
Presentation:
Operator
Ladies and gentlemen, Good day and welcome to Gujarat Narmada Valley Fertilizers and Chemicals Ltd. GNHC conference call for Q4FY26 earnings hosted by Anurag Services LLP on behalf of GNFC Ltd. From the management we have Mr. D.V. Parikh, Executive Director and Chief Financial Officer. Mr. Nitin Patel, Executive Director, Mr. P.K. Porohit, Executive Director, Mr. Rajesh Pillai, Company Secretary and Compliance Officer and other senior members of the management. 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 Mr. D.B. Parekh, Executive Director and CFO GNFC Ltd. Thank you. And over to you Mr. Parik.
D. V. Parikh — Executive Director & Chief Financial Officer
Thank you. Thank you. Mr. Anuj for organizing and Mr. Renju for being moderator. I hope I am audible.
Unidentified Participant
Yes.
D. V. Parikh — Executive Director & Chief Financial Officer
Okay. Thank you. On behalf of GNFC, we warmly welcome to all participants on this Q4 and FY26 conference call. The company has shared yesterday the results, press release as well as investor presentation. Fair coverage is given on all the aspects though we’ll take up any points of question or observation during the question and answer session. For the information of all, the company has completed 50 stable years on 10th of May 2026. On this journey except for one year the company has been profitable all throughout the years except one year which is year 2014 and 15.
In a competitive world this is a recognizable record. As on its way to stable years of operation it has provided path of prosperity to various stakeholders. On this occasion we start with good country level contribution during FY26. Especially during Q4 of FY26 when the war emerged, the country had two issues before it. One is the availability of design exist fuel issue and second is requirement from higher ammonium nitrate. In view of the war there was disruption in the logistics where the company came forward and supported on both this.
My colleague Mr. Patel will cover more on this. Now coming to the operating performance, the quarter four performance in terms of chemical volumes has been better. Whereas there is some impact of war in case of India which is recouped to some extent. By utilizing the facility of technical grade area on a quarter four versus quarter four basis the chemical is down but the fertilizer has been up on FY to FY basis the numbers are not comparable in terms of Production and sales because Baruch had the annual turnaround.
If you talk about the physical performance and chemicals in specific, there are two chemicals which have seen the impact in terms of volume. One is acetic acid and second is methanol. There is in case of acetic acid we had certain internal catalyst related issues because of which the volume was capped, production volume was capped which did not result into the sales volume. Therefore, whereas in case of methanols methanol, the cost economics did not work out given the very high gas price even though oil prices have been hovering high so we could not use even our oil based methanol plant, sales volume more or less has tailed production volume.
There is an inverted relationship which is noticed between acetic acid and methanol where acetic acid prices have tapered down whereas the methanol prices have gone up. So this inverted relationship has affected to some extent that cost economics of acetic acid as well. While the overall volumes were capped due to shutdown impact, the SOAP is better mainly due to relatively lower input cost which has been having a substantial impact on a full year basis. Whereas on a quarter four sequential quarter basis as well as year on year basis there are strong realizations which happen.
In case of chemical in spite of the competitive headlines which were particularly noticed in case of annual and tdi, the company not only survived but did better during the year. In case of fertilizer, the revision both in edi, fixed cost as well as energy norms are yet to happen and this is overdue as the losses are widening in case of fertilizer segment coming to the financial performance. As is apparent, the revenue on a quarter on quarter basis improved by 11% on a yor basis by 7% full year is not comparable whereas PAT has improved on a full year basis by 35% to 797 crore with 1065 crore of PBT.
Main reasons driving this profit is the better realization case of chemicals mainly in Q4, both sequential Q4 and YY Q4, whereas on a full year basis it is mainly the impact of benign raw material prices which are in relative terms benign. In terms of whether There are any one timers or not, there are one timers of around 30 crore in Q4 and around 80 crore on a full year basis. If we compare the full year basis of a previous year we are higher in terms of one timer gains by around 50 crore. So one time which we have 30 crore last year which is 80 crore this year on a full year basis company continues to generate strong operating cash flows as is Apparent from the cash flow statement.
Considering all this board has in generous and declared a dividend 210% which is 21 rupees per share which is historically the second highest dividend in its history of 50 years. On the balance sheet front with internal accruals it is becoming healthy and ready. With CAPEX pipeline accumulating, the new projects identification will have clarity by end of this calendar year for taking it through the investment table grid decisions Due to the war in the early late February and early March it has impacted slightly the volume of TDI as well as NIM area and like I said the NEEM area is compensated with technical grade area because of the overall facility available.
In terms of segment, the improvement is mainly driven by chemicals. The other segment represents mainly the IT division where there is an improvement in revenue of around 20% and the profit has doubled from 17 crore to 35 crore. For the capex, there is an update which we have covered in the investor presentation that we had earlier plan of JV with himios. Now we are talking to them about licensing for additional capacity. So that dialogue is on with INEOS. Now I am handing over the session back to moderator for further interactions with the stakeholders.
Thank you very much.
Operator
Speaker, should we open the line for questions?
Rajesh Pillai — Company Secretary and Compliance Officer
Yes Riji, you may proceed.
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 and one on the Touchstone telephone. 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’ll wait for a moment while the question queue assembles. The first question comes from the line of Nirav Jamudia with annual wealth. Please go ahead.
Nirav Jimudia
Yes sir. Good afternoon and thanks for the opportunity, sir. First of all, congratulations on a very good set of numbers. Sir, few questions I have. The first is so when we see our raw materials like which are very very critical in terms of our production which are like methanol which you have covered in your opening remarks along with oil which we procure from the oil marketing companies for our ammonia production as well as benzene and todine. So how are we placed in terms of the availability of them, especially the oil part which we purchase from the IOC for our ammonia production.
So if you can share your views here in terms of how we have been in Q4 and how are we in terms of Q1 and Q2 for our availability of raw materials.
D. V. Parikh
Okay. And I covered this question on behalf of materials although they are better placed. If I’m missing anything, I’m requesting my click from materials to supplement. See, in case of oil there is no issue we have faced even after the hormones issue came up. So IOCL has been consistently supplying the required materials in terms of oil as a feedstock. As far as trolling and benzene is concerned, our contract which was there for procurement of tolling benzene expired sometime end of financial year and we have got a short term extension on those contract.
Considering the war situation. However, we are not facing any issue in terms of its availability so far. Although the prices have spiked because of the war situation, we are still not having any issue in terms of availability. Now I hand it over back to our materials team for further comments.
Nitin Patel
Yeah, good evening already. Our Executive Director, Mr. D.V. Parikh has appraised that as far as the supplies of oil benzene toluene is concerned, we are not facing any issues on front of availability till date. And whatever the requirement is there, it is coming on a consistent basis.
Nirav Jimudia
Correct answer about the methanol part because it is not viable to produce in India. Given the higher gas prices, how we have been able to secure methanol and since the Iran war has begun, I believe that there could be an availability issue coming from Iran also. So how we have been able to source effectively the methanol part and for how many months we are covered for.
D. V. Parikh
Okay, I will.
Nitin Patel
Yes, please sir,
D. V. Parikh
May I cover?
Nitin Patel
Yes sir.
D. V. Parikh
Okay. See methanol. First of all you are right, it has gone through a volatility and that has affected the cost economics of acetic acid. So offlet what the company is doing is it is evaluating whether it is viable to produce acetic acid or source from the market for manufacturing the further downstream called ethyl acetate. So we are following both. If wherever we get the methanol beyond below the viable price, we procure methanol in case it is not working out. We also keep a channel open for sourcing acetic acid.
So this way we keep the customer, we serve the customer demand and also try to optimize the contribution level.
Nirav Jimudia
Got it, sir. Second, what I could see is that the oil cost for us during the quarter 4 was more or less similar to Q3. In fact it was slightly lower than what we have incurred for Q3. So if you can help us explain like what is the formula on which IOC gives us the oil A and B? How could we see this cost for oil to us in Q1 or probably Q2? If you can just give the roadmap of the oil cost to us. That would be very helpful.
D. V. Parikh
As far as Q4 and I will explain this and thereafter we hear from materials as well. As far as oil prices for sequential quarter basis is concerned, there is a reduction in the oil prices. Regarding your question, I will also tell you about what is the reduction. There is a net reduction of 3,000 rupees on a sequential quarter basis. On a per metric term sequential quarter basis. Now coming to the question on how it looks like in Q1 as well as Q2. See there is a volatility and there is a sharp volatility as compared to March there was a significant difference in April.
However this keeps on changing and doing a prognosis on that based on how far the war is going to continue and what exactly is going to happen to the straight from where most of the material comes to the straight or foremost is anybody’s guess. So on future Q1 Q2 we are unable to exactly answer your question because that’s a prognosis for the future and hard to make prediction
Nirav Jimudia
Correct. But like let’s say from March to April, how much was the increase? A and B On what formula basis does IOC gives us? Like it is based on a monthly basis or it is fixed on a quarterly basis. So what is the formula here?
D. V. Parikh
Okay, the broad contours of the formula we can give it has a trailing impact in terms of like monthly. There is a cutoff monthly date of the previous month and thereafter it considers 30 days and it has a benchmark index with various elements being added for import duty etc. So this is. These are the broad contours of the formula with ioc. Regarding your question on what exactly has been the increase in April versus March. This is something which is sensitive information. But still if Aman can give a broad idea I request Nirmesh Vaidesai to comment if you can.
Nitin Patel
If you look the oil prices prevailing in the month of March and oil prices prevailing in the month of April 26th there was a significant difference or significant rise in the month of April on account of higher indices worldwide.
Nirav Jimudia
Correct? Correct. Got it sir. So if you can share the production numbers for ammonia both from oil root and gas route, WN, CNA and melt and TDI for FY26ammonia
Unidentified Participant
Oil route was close to 3 lakhs metric ton base route was 3,60,000. I am Nathan Patel, Executive Director. CNI was 1,47,000 WNA 4 lakh 30,000 approximately and TDI around 57,000.
Nirav Jimudia
Okay sir. An melt and formic acid.
Unidentified Participant
Formic acid was close to 34,000 and an melt was close to 1 lakh 70,000.
Nirav Jimudia
Okay sir, you covered in your opening that there could be an issue with reference to the acetic acid. But let’s say apart from acetic acid, are there any other products where we could see production problems? Or let’s say production difficulties with reference to the availability of raw materials or so if you can share that. With reference to what we have produced in FY26, is there any product from our product basket where we can still optimize in terms of the production in FY27,
Unidentified Participant
We have closed FY26 with no curtailment of any production. Productions were at peak and at optimized level going forward. It all depends on war situation, how quickly it resolves and what is stored in future. It is very difficult to predict as my colleague has explained. For example.
Nirav Jimudia
Correct. Correct. And sir, out of this 1 lakh 47000 tons of CNF produced, how much it was sold in the market?
Unidentified Participant
Around 45%.
Nirav Jimudia
45% was sold in the market. Okay? Correct. And any ammonia was available for sale in the spot market or entirely it was used for our captive production.
Unidentified Participant
Entire ammonia was used for downstream captive production.
Nirav Jimudia
Okay. And there was no need to purchase any ammonia from the outside market, right?
Unidentified Participant
That’s right.
Nirav Jimudia
In
Unidentified Participant
Q4 we haven’t got
Nirav Jimudia
It correct. So next question is on the annealing part. So when you see our presentation, like India imports substantial volume like to the north of 2 lakh 50,000 tons. And we have been the only player. So just wanted to understand like why over the years we haven’t expanded the capacity. And if you can correlate this with like the etiquette which we have hired. So are there any suggestions from them in terms of any expansion for the annealing part or why we not been able to increase the capacity of aniline given benzene is available in abundance in India.
So what was stopping us for expanding the capacity of aniline?
Unidentified Participant
First I will cover the technical part, then Mr. Tejas will cover the market part. And then Farikh Sahib will summarize about any link question. So far as aniline is concerned, the cost of hydrogen is important.
Nirav Jimudia
Okay.
Unidentified Participant
Hydrogen is one of the raw material along with CN and benzene.
Nirav Jimudia
Okay, Benzene.
Unidentified Participant
I am buying hydrogen. I am producing from the fuel oil
Nirav Jimudia
And
Unidentified Participant
I have to compete with the Chinese producers who are producing the coal from coal, the required hydrogen and capacity of scale. I have a limited capacity. Chinese plant have more than seven or eight times a single location capacity. So scale matters and there is there is a import dumping in the market which I will ask Tejas to cover and basically on a standalone we are not viable in any link so we are doing the job work job work of some other companies on a fixed margin basis. Tejas
Tejas Shah
Tejas sir, as Executive director Nitin Bhai said it is right there is huge dumping from the China although there is an anti dumping duty which is minimal from vanha it is $37 and other than Vanha it is $121 because Vanhua and all other big players have a huge MDI plant and Aniline is an intermediate product in MDI production. So when the MDI market is slightly down they dump the dump the Aniline in Indian market. So suit it is very difficult to compete with the Chinese China market Annealing. So that’s why we have not enhance our capacity because Chinese Anilin is very cheap.
Nirav Jimudia
Perfect. Perfect. Got it, got it. The next question is on the TGU part like you highlighted and you alluded that TG production was slightly better in Q4. So if you can share here that how much we have produced in Q4 and FY26A and B let’s say as against our Rated capacity of 1 69,000 tonnes how much maximum we can produce a TGU in a year. And why is TGU so much important from India’s point of view like aren’t there are any substitutes for TGU which can be replaced on. So these are few sub points on tg.
Unidentified Participant
See I will ask from production point of view I am Nitin Patel. Normally my breakup is that around 20% of the total UEA production I can produced from industrial ammonia oil based ammonia as a tgu. Now subsequent to war startup war starting we immediately increased the TGU production at the cost of NEEM urea because country wanted tgu. We are the only manufacturer apart from GSSC which has a small quantum and little inferior quality than us. BS6 engines need diesel exhaust fuel so entire logistic was on the verge of collapsing and we rose to the occasion and we simply doubled our DGU production for the month of March and we are still continuing on that keeping little bit deficit on the NEEM urea compared to the target given by Department of Fertilizer and our this initiative was well appreciated by Ministry of Heavy Industries, Automobile Industry association of India as well as Department of Fertilizer.
So this is all about the TEU in general the capacity of 1 69,000 is an average capacity which I spoke about. It largely depends on shutdown of the urea plant which we take once every two years and also in between interruptions if any in urea plant.
Nirav Jimudia
Correct. We produced more
Unidentified Participant
Than more than 2 lakh 10,000 in FY26.
Nirav Jimudia
So let’s say today 10,020. So let’s say the urea production hypothetically should be or should be 1 million tons so that we can get 20% permissible limit to produce TG is the right way to understand this?
Unidentified Participant
No. My urea reassess capacity is 6 lakhs 37,000 and I close by a deficit of around 15,000 to that figure. And the rest was TGU.
Nirav Jimudia
Correct. Got it. So perfect. The next question is on let’s say the cold based boiler like last time you updated us that it was supposed to start in. So what is the update there? When. When it is going to start? A and B with the current gap increase between the gas and the coal prices, what is the current estimate in terms of the benefit in rupees per metric ton of savings which could accrue for the TDI production?
D. V. Parikh
Okay, I’ll answer this question. The coal based CCPP as we call it in our presentation was to start sometime in April. That the lump sum 20 contractor faced certain delays and they have revised the date now for synchronization sometime in the third week of June and for the performance guarantee test run to make it available on a full stream basis. It is sometime in the third week of August 26th. So this is on the likely commissioning of. Regarding the cost differential, gas prices are going up, so are the prices of coal have also gone up.
Our last estimate was to get in of around 10 to 12 crore per month which was the saving potential. So we maintained that the CAT should really accrue once it is up and running given the escalated prices of gas and coal.
Nirav Jimudia
And this should start accruing to us from H2 of FY27, right?
D. V. Parikh
Yes.
Nirav Jimudia
So last question before I joined back in the queue. Like any update on the fixed cost revision for and revision of energy consumption norms like you highlighted in your remarks that it has been now a long view. So where are we currently in terms of both these aspects?
D. V. Parikh
No, there is no particularly update in terms of formal communication. Okay. Although we keep on approaching department from time to time. But the the update to us is energy norms are under approval and the fixed cost revision is still at discussion stage.
Nirav Jimudia
Okay. Okay. And sir, one more clarification. Like our entire product basket, what we produce, the sales happens on a spot which is like whenever the prices changes in the international market we revise that or are there any contracted volumes also?
Tejas Shah
I’m Tejas sir, we are doing the variable price contract. Whatever the prices are changes along with the international market that will be effective to the customers upward or downward.
D. V. Parikh
Correct. A small portion of this we do through very short term contract as well. And that is what is the policy structure of the company also. But by and large this contract extend a month or three months at the most.
Nirav Jimudia
Got it. Perfect. Thank you so much sir for giving me all the details and we surely.
Operator
Thank you. Next question comes on the line of Rohit Sinha with Sunny the securities. Please go ahead.
Nirav Jimudia
Thank you for taking my question. Sir, a couple of questions from my side. One is, I mean we have seen price increase in lot of chemical products recently. So just wanted to check that how much we have in how many products we have taken in the kind of price hack and where we have faced challenges in terms of taking any price hike and how much of that benefit of increasing price was reflecting in Q4 number and possibly how much we would be expecting in the Q1.
D. V. Parikh
Okay, I will answer on an overall basis first except formic acid everywhere in chemical there is a positive realization on a sequential quarter basis. And the higher realization like we said has contributed both on sequential and yoy basis to this profitability as far as individual product pricing is concerned. I will request our marketing colleague to respond.
Tejas Shah
Mr. D.V. Parikh has said except formic acid although we are getting, we got good realization in Q3 compared to Q4.
Nirav Jimudia
Even Q4 compared to Q3? Yes,
Tejas Shah
Q4 compared to Q3.
Nirav Jimudia
So in any, I mean broader number, if you can highlight about the percentage where we have seen, I mean like 30, 40% on average
Tejas Shah
Product to product. But if you see the range it is from 6% to 28%.
Nirav Jimudia
Okay. Okay. And similarly for the fertilizer side, how how the pricing revision we are expecting going forward Because I guess we haven’t seen anything as of now. So probably can we expect fertilizer division to turn positive in coming quarter or it will still remain at the EBITDA level and still remain in the similar range
D. V. Parikh
In fertilizer there is an under recovery like we covered. And till the time norms are revised both for fixed cost and energy, we see almost no chance in case of urea, in case of the complex fertilizer we do earn because of this nutrient based pricing at a contribution level.
Nirav Jimudia
Okay, okay. And just one last question on this capex towards the ammonium nitrate and so how that is progressing for us and how we are seeing the market overall for this ammonium nitrate going forward for FY 2728.
D. V. Parikh
See both these three projects actually Ammonium nitrate, zinc nitric acid and ammonia expansion are going on track. There is a slight minor delay in case of weak nitric acid of around two and a half months. The rest are all on the stream. As far as the price prognosis is concerned, I will request marketing to respond on this.
Tejas Shah
As far as the ammonium nitrate is concerned, CAGR is around 6 to 7%. So slowly all the capacities chamber even Deepak fertilizer and GNBCs are coming up with their plants. Slowly all the capacity will be absorbed presently around 4 lakh. 4.5 lakh import is there in ammonium nitrate. Based on the domestic capacity increase, there will be no import in the future and domestic production will be absorbed in the market.
Unidentified Participant
And I am Nathan Patel, if you know the public news recently government of India has announced that coal based chemicals would be a priority. There is a package announced and coal India has a very ambitious target for the mining. And for mining the explosives are required. And for explosives ammonium nitrate will be consumed. So going forward, as Mr. Tejas told looking to CAGR and ambitious thrust by government of India for self sustenance on cold route. We do not expect any issue in absorbing the additional volume produced by us.
Nirav Jimudia
Got it? Got it. And so if you could help us with the price trend in last two, three months of this ammonium nitrate.
Tejas Shah
Ammonium nitrate prices in the Q4ammonium nitrate price was increased just because there was an increase in ammonia price. International ammonia price and the presently price is stable. Whatever they had the peak level and we are observing the market import is less at present just because of Russia and Ukraine conflict. Because mostly import is coming from the Russia. So presently price is good in M nitrate.
D. V. Parikh
So on a quarter, on quarter basis there is a 20% improvement in the ammonium nitrate prices.
Nirav Jimudia
And. And that is currently sustaining at higher side.
Unidentified Participant
Yes.
Nirav Jimudia
Okay. Okay. That is from my side. Thank you.
Operator
Thank you. Thank you. Next question comes from the line of Aman Kotari with Equitas Investments. Please.
Unidentified Participant
Thank you. Congratulations sir for the wonderful set of results. So first question that I have is, can you just give us an idea on the chemicals that will feel limited operationality in Q1? Because methanol is a challenge that we’ve been facing. So are we facing difficulties in production of let’s say acetic acid methanol and also I think ethyl acetate is where we use glacial acetic acid. So are these three products being affected? If you remember I am Nitin Patel. If you remember our CFO has already covered this issue in the opening, opening remark and in the first question in Q1 the gas prices are high so methanol production is not viable.
At the same time we are exploring both the options for our downstream that is at a threshold to buy methanol for for captive production of acetic acid or to buy acetic at a threshold price for the captive production of ethyl acetate. And so currently as you mentioned TDI and toluene both have seen price increase. But can you just give us an idea on what the improvement has been in quarter one on the spread? Because I think at the end of the year we were almost at a three year high in terms of the spread.
Rajesh Pillai
Aman, this is Rajesh here, company secretary and I would request the all the investors because this con call is for the Q4 as well as for FY25 26. So I request all the investors to please limit their questions to that quarter because Q1 it’s a price sensitive information we will not be able to provide such details.
Unidentified Participant
Okay. So this quarter we have also seen an increase in the loans and advances. So from 565 we have gone to roughly 2400 crores. So can you just give us an idea of what this increase has been?
D. V. Parikh
So this is an interface change. When the investment profile changes from one source to another source this is the difference. So we also invest in intercorporate deposits. Okay. For surpluses. So this change in amount reflects that as well.
Unidentified Participant
And it has been done for a strategic purpose.
D. V. Parikh
See for the time being till the time our capex cycle is over we park with the best yield to the extent possible. So these are the decisions which are based on yield base for temporary surpluses.
Operator
Mr. Kothari, are you done with your questions?
Unidentified Participant
No, just the last question on my side before I join the queue again. Do we have any plans for buyback? Currently is there anything on the table that we would consider?
Rajesh Pillai
As of now we have nothing in the pipeline. So it will be all decided and we will inform to the investors and manage shareholders as and when the situation arrives.
Unidentified Participant
Okay and just the last question I think that come out that government is coming looking to come up with a new urea investment policy. So in that case if there is a policy that comes out in support of setting up domestic urea manufacturing facilities is it something that the management would consider? It depends upon what are the details of the
D. V. Parikh
Policy. So without knowing the details of the policy it is premature to comment. And second is we love to compare it with the other investment opportunities which is available. In general. Normally what happens is this is a regulated kind of business segment.
Unidentified Participant
Yeah. And
D. V. Parikh
Chemical is more or less an unregulated one. So our experience so far has been like you see in the segment results also we make good money in unregulated markets. Unregulated, not so govern in terms of caps on profit. At times we lose, at times we gain. But this is how it operates. It does not remain parallel into losses. So when it comes to fertilizer we have to evaluate the BPM of the scheme as and when announced. Got it. Thank you sir. I’ll just join back in the queue.
Operator
Thank you. Next question comes from the line of Nirav Chimoudia with an wealth. Please go back.
Nirav Jimudia
Yes sir. Thanks for the opportunity. Sir, you mentioned that there was a one time income of 80 crores in FY26. So what was it all about and how much we have booked in Q4 of FY26 out of this 80 crores
D. V. Parikh
Q4 has 30 crore of one timers. When we talk about one timer basically it is like sort of insurance receipts which are there. Government of India has settled the freight rates effective 2122 till 2324. So that income is also part of that. Mainly it comprises of these two. When we talk about 30 crores and when we talk about 80 crores. Like last time it was already 50 cr. This time it is 80 cr. So I’m sorry, last time it was 38 cr and this time it is 80 cr. So there is a net difference of 145 crores or so in terms of income.
One timer income. And again this represents mainly the insurance receipt and escalation. Escalation of fertilizer freight rates, area freight rates. Aside from this we had one time income on disposal of catalyst dust of wheat nitric acid plant and some penalty on account of the CCPP delay which is the power plant delay at the hedge.
Nirav Jimudia
Apart from the raw material issue which may come or which may not come for our production schedule. Are there any planned shutdowns which we are planning for next year?
Unidentified Participant
We have a planned shutdown in April 27th.
Nirav Jimudia
Okay. Okay, perfect. Sir, next question is on the ammonium nitride. So the production numbers what you just gave us is. Is it also includes the byproduct and melt which we get from A and B production or that is separate.
Unidentified Participant
Yeah, yeah. It’s a total.
Nirav Jimudia
Okay. Okay. And how much? Generally we get a byproduct out of AMD fertilizer.
Unidentified Participant
My direct synthesis has a 50,000 and rest is by product.
Nirav Jimudia
Okay. Okay, perfect. So next question is on when we see on a quarter to quarter basis like there was a 300 crore improvement in the EBITDA between Q3 to Q4. So if you can just highlight which of the products have contributed to this improved performance in order of their contribution, that would be very helpful.
D. V. Parikh
So you want the major product which contributed to this performance.
Nirav Jimudia
Correct, Correct. Improved performance.
D. V. Parikh
Okay. So one is tdi, second is ammon nitrate and third is technical grade urea. So these are the products which have contributed to the improved performance during Q4 on a sequence and quarter basis.
Nirav Jimudia
Okay, perfect. And the last question from my side last time you have explained us about some cost saving measures which could accrue to us in FY27 based on etcetera’s. Recommendations. So now with the 3 months or 4 months passing through between our last conversation. So are there any further measures being directed or given by or suggestions given by Katikarni which now could be safely implemented by us? Or there could be some further cost saving initiatives. Anything which you can share.
D. V. Parikh
Okay. See when they were appointed there was a saving number which we discussed. Overall there is some delay in the overall realization as well as indication from their side which they also acknowledge. As far as approval is concerned, there are certain proposals which are made and which are in the process of approval. Once that is done, the number would be woven but then it will start gradually shipping into 26, 27. As far as last year is concerned, there is some shame on account of oil which has happened due to their effort.
So all the numbers would be reconciled one day with them when the assignment is about to be over. So let all the initiatives as of now take place and different initiatives will give different kinds of savings, different intensity. So we will reconcile at the end of the the assignment. But some saving has already approved and that saving to some extent has arisen in case of predominantly the oil.
Nirav Jimudia
Perfect sir. Perfect sir. Last, last bit from my side, like slightly on a technical part. Sir, you explained us about the enemy part like hydrogen as well as CNN benzene are the key raw materials for aniline. So just wanted to understand how is. So let’s say from my understanding point of view, like first nitrobenzene is produced and then the aniline is produced when we go through this synthesis process. So. And what I believe is that even nitrobenzene There is good demand from even the rubber, chemicals and other other industries.
So if you can just explain me the technical part in terms of where the nitrobenzene comes in this production process and how much nitrobenzene we produce on
Unidentified Participant
An angle. Nitrobenzene, rightly you explained it is an intermediate and it is reacted with hydrogen to produce the aniline and CNA plus benzene are used to synthesize the nitrobenzene. Nitrobenzene has a limited market. Bulk goes for captive aniline production. I’ll ask Tejas to say a few words about nitrogen market.
Tejas Shah
Yes, you are right. Nitrogen is used in rubber chemicals. We are supplying to the rubber chemical manufacturers. But our most of the nitrobenzene goes to the annulin production. We have a market and we are selling nitrobenzene as an intermediate product.
Unidentified Participant
Close to 13% is going for cell and rest is going for captive.
Operator
Thank
Nirav Jimudia
You so much sir and wish you all the best.
Unidentified Participant
Thank you.
Operator
Thank you. Next question comes from the line of AM Lotha with Samarthi. Please go.
Unidentified Participant
Hello. Hello. Am I audible? Sir,
Rajesh Pillai
You are audible. You are audible please.
Unidentified Participant
Mr. Barik, I’m waiting. Since last 15 minutes as this Neeru Zamodia of annual research has asked as many as 30 questions to you. At least one participant should be allowed two questions only at a time and we should be asked to again rejoin the queue. Number 1 second second person who had spoke he had also asked as many as 10 questions. What is. What is the type of the caller is going on? Sir, no company allows more than the two questions at a time. So other other person who joined the cube can get the opportunity to ask the question.
Sir, we acknowledge your concern and you make people to understand that no one should allow to ask more than the question at a time so the other participant can get the time. That is my point of view, sir.
Rajesh Pillai
Okay, sir, we have taken the point of your point and we will implement
Unidentified Participant
All. He started at 4:00 and second up to the 4:30 again he is rejoin that queue and he has taken lot of asking each and everything. Each and everything. What is he doing? Are he forting the company on the this Concord? Concord.
Rajesh Pillai
Okay, Sir, I request you to kindly ask your question please sir.
Unidentified Participant
Yes sir, I thank you sir. Thank you very much. Many congratulations on the different set of numbers. So my question is that. My question is number relating to that plant capacity utilities of the overall capacity is on the plant of the this TDI acetic acid and all other plants which are companies running at the what capacity the plants are running at a peak capacity capacity utilization in case of acetic and most of the plants is above 100%. So far as TDI is concerned it is close to 80% worldwide the operating factor for TDI is close to 80%.
Because of the complexity and challenges in operation and maintenance of the plant and nature of the material which is to be handled. So we are close to global benchmark even for T TDI in spite of many many issues which we are facing at times in our thanks. Congratulations. Congratulations. TDI is our bread and butter and if we are operating plant at 80% how the TDI prices are remunerative to the company
D. V. Parikh
In last quarter. Yes this we had a good pricing prices current quarter also the prices are how softened down but still better.
Unidentified Participant
Okay sir this another thing sir second question the one time 80 crore. This is additional income or extraordinary income which is pertaining towards.
D. V. Parikh
I’ll explain again. First of all the net difference on a year to year basis absolute amount is 80 crore but the net difference is 50 crore because last year anyway around 38 crore were there. Okay now coming to coming to the factors which have contributed to one timers Like I explained we had an insurance receipt of around 28 crore. We have settled escalation media freight claim of 15 crore. And we also had some realization on account of catalyst dust of weak nitric acid plant. And the fourth one is related to some penalty recovery for the delay in the project of CCDP
Unidentified Participant
Okay sir my last question. Sir this 2400 crore is shown in advances. Excellent. Which I could gather from the conversation that it is inter corporate launch it is given to PSU companies or the private sector company. Sir. Yes. What is the interest rate they are rating to the computer
D. V. Parikh
Around 7.25.
Unidentified Participant
Intel corporate is 7.25.
D. V. Parikh
Yes
Unidentified Participant
But no in the nowhere in the world Intercorporate loans are being given at 7%. If it is
D. V. Parikh
Yes
Unidentified Participant
Okay then it’s all like because it is amount then it’s all right Sir I thought. We thought it is to the any private sector it is Intercorporate loans is ranging no our
D. V. Parikh
Company. Our company governance doesn’t allow loaning to private sector like that. It is only our own arm where we can draw for the real capex needs in time to come. So you are. You are free to ask any other question. Sir
Unidentified Participant
On the last question Sir Acetic acid prices.
D. V. Parikh
Acetic
Unidentified Participant
Acid present and ethyl acetate prices they are correlated so just I wanted the acid. What is the trend of the acidic acid prices and trend of ethyl acetate
Tejas Shah
Presently as far as the international trend is concerned the acetic acid as well as ethyl acetate trends are in reducing trend. Both the prices, international prices are. Both international prices are reducing trend.
D. V. Parikh
I will cover for. I will cover for a full year basis. Practically if you see the full year last year and this year practically there is no major change. We had a realization where it has not changed even by thousand rupees in both the products taken together.
Unidentified Participant
Okay. But
D. V. Parikh
If you see quarter to quarter because of this kind of disruptions there there is an upheaval in the prices. But on a full year basis that is less than thousand rupees per metric ton difference.
Unidentified Participant
Okay, thank you sir. I will rejoin the qf.
Operator
Thank you. Next question comes from the line of Poet Sinha with Sunizi Securities. Please go ahead. Yeah.
Nirav Jimudia
Just one question, sir. On the capex side, how much the overall
Operator
Capex would be there for FY27 and 28?
D. V. Parikh
The capex for FY27 is going to be around 2,800 crores. And for 28 if you can share 28 we would be in a position to tell in quarters coming. Because as we finalize the rest of the capex and come up in terms of its schedule we will come to know better.
Nirav Jimudia
Okay. Okay. And. And this ammonium nitrate, nitric acid and ammonia plant will be finally coming up by FY28 early. Okay? Yeah.
D. V. Parikh
The next year these are going to come up.
Nirav Jimudia
Okay. All the three ammonia
D. V. Parikh
Expansion, the le, nitric acid, ammon nitrate, mil. All are going to come up by next year. And this year the CCPP is going to be operational by quarter two. Got it, sir. That’s it. From my side. Thank you.
Operator
Thank you. Ladies and gentlemen, as there are no further questions we have reached the end of question and answer session. I now hand the conference over to Mr. D.V. Parikh Executive Director and CFO GNFC Limited for closing comments.
D. V. Parikh
Thank you very much for attending the call. To all the participants and on behalf of gnfc we welcome further questions if any through our investor services s. And please stay in touch. Thank you very much. With this I hand over the call to our company secretary.
Rajesh Pillai
Thank you, sir. I, on behalf of the participants and senior members of the company thank all the investors for joining this call. And I express my Sincere gratitude to Mr. Reju as well as Mr. Anuj of Anurag Services for conducting this call. Thank you.
Unidentified Participant
Thank you.
Rajesh Pillai
Thank you.
Operator
Thank you. On behalf of GNSC limited That concludes this conference. Thank you for joining us. You may now disconnect your name.