Gujarat State Fertilizers & Chemicals Limited (NSE: GSFC) Q3 2025 Earnings Call dated Feb. 11, 2025
Corporate Participants:
S. K. Bajpai — Senior Vice President, Finance and Legal and Chief Financial Officer
Analysts:
Nirav Jimudia — Analyst
Vaibhav Seth — Individual Investor
Love Gupta — Analyst
Vivek — Individual Investor
Saket Kapoor — Analyst
Presentation:
Operator
Ladies and gentlemen, good day and welcome to the Gujarat State Fertilizers and Chemicals Investors Conference Call hosted to discuss Q3 FY ’25 financial performance. This call is hosted by Anurag Services LLP on behalf of GSFC. From the management, we have Mr SK Bajpai, Senior Vice-President of Finance and Legal and CFO; Mr S.V. Varma, Executive Director, ABN HRS; and other senior management members from 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. I now hand the conference over to Mr S.K SK, Senior Vice-President of Finance and Legal and CFO from GSFC. Thank you, and over to you, sir.
S. K. Bajpai — Senior Vice President, Finance and Legal and Chief Financial Officer
Okay. Thank you. So we are pleased to welcome you to the earnings conference call of GSFC. We appreciate your participation in the GSFC quarter three post conference call. I trust that you have reviewed our findings and other presentations that have been posted on our website as well as to the stock exchanges. The company demonstrated strong revenue growth, improved efficiency, higher production and strategic product mix optimization, reinforcing its competitive position in fertilager and segment in-quarter three and nine months for financial year ’24-’25. If we see consolidated figures for quarter three and nine months, top-line growth of 40% Y-o-Y in Q3 and 6% in nine months. PBT increased by 16% and PAT increased by 13% Y-o-Y in Q3. Consolidated Nine-Month Y-o-Y PBT was lower by 1% and PAT by 4%, but from a standalone point-of-view, nine months Y-o-Y PBT was up by 3% and PAT by 2%. If you see production and sales of suppliers, output rose by 23% Y-o-Y in Q3 around 77,000 metric ton and 18% Y-o-Y. In nine months, that is 198,000 metric tons. Sales volume also increased by 25% in Q3, 1.254 lakh metric ton and 5% in nine months, that is 75,000 lakh metric ton. Basically due to negative cost economics of DAP production, company imported 1.27 lakh metric ton of DAP around INR758 crores of DAP to satisfy Indian DAP requirement. However, imported DAP did not provide any margin to the company. The company also faced challenges, challenging cost environment due to rising prices of essential our materials such as sulfur sulfuric acid and P205, the P205 prices in Q3 had from $948 per metric ton to $1,060 per metric ton. Additionally, the significant depreciation of INR that has also impacted production and imported cost. Spread declined from $674 per metric ton in-quarter three last year to $588 per metric ton in the current quarter, reducing profitability in this segment. However, the company effectively mitigated these cost pressures by optimizing its product mix towards more profitable fertilizers and industrial products and increasing capacity utilization. Further, reduction in natural gas prices 10% in-quarter three Y-o-Y and 1% in nine months Y-o-Y provided some relief, helping to offset the rising cost of other raw materials. Subsidy rates for P&K fertilizers were lower on nine months Y-o-Y basis, but the company successfully navigated the situation by boosting production and sales volume, ensuring operational efficiency and statistically positioning its product in key markets. India coming quarter 44-25 with conditions reported for rubi crops across major states, the country is called for another strong harvest season. However, the fertilizer industry faces challenges due to price constraint, global supply conditions and subsidiary structures — impacting production and imports. The company’s focus will be on optimizing sales opportunity and ensuring strategic stock placement for the upcoming three season. Considering the market dynamics and planned annual shutdown of key fertilizer plants such as ammonium sulfate, ammonium, sulfate, ammonia and energy revolved exercise in case of urea, we have a target to book sales in the range of 3 lakh to 3.25 lakh metric ton in-quarter four. In the industrial product segment, the demand of our major industrial products from various application sectors is likely to remain stable to form during the next quarter. However, for major industrial products is likely to be affected by cheap Chinese imports. Overall, the company expects stable demand and turnover in the Products segment in the coming quarter. As you are aware, we are debt-free organization with a strong balance sheet and robust liquidity position. This financial is supported significantly by the government’s proactive approach in ensuring the timely disbursement of subsidies. We have received subsidies for imported P&K for up to December ’24, while the subsidiary for Indigenous P&K and UREA have been received up to the second and third week of January ’25, respectively. The organization is adhering to its strategic objectives. With regard to capital expenditure, it is anticipated that sulfuric acid 5 project and urea II revamping project will be operational at the end of current fiscal year. I would like to express my gratitude for your patience in listening to my overview. Yes, we will now commence the question-and-answer session. Thank you.
Questions and Answers:
Operator
Thank you. Thank, sir. We will now begin with the question-and-answer session. Anyone who wishes to ask a question may press star N1 on the touchstone telephone. If you wish to remove yourself from the question queue, you may press star N2. All participants are requested to use handsets while asking for a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question comes from the line of Nirav Jimodia from Anvil Wealth. Please go-ahead.
Nirav Jimudia
Yeah, good afternoon, team. Sir. I have few questions to ask. So sir, based on your opening remarks like on the fertilizer side, we have clocked close to around 23% manufacturing volumes and if we include trading, I think it is close to 25% volume growth. So sir, is it possible to A, break-down the PBIT what we have clocked on the fertilizer segment in Q3 between how much we have done on the manufacturing side and how much on the trading side, A? And also if you can share like with now urea revamp project getting close to commissioning, was urea profitable in Q3 of FY ’25 and with this commissioning of the urea plant, what sort of improvement we could see in per tonne margin for urea?
S. K. Bajpai
Our output rose by 23% in bio buy. Yeah. So in the quarter three, there was output in comparison to quarter two because of the availability of USA from the government side. But APS at unit and ammonium sulfate at HO or unit, we have increased the capacity and for production was higher. As far as profitability is concerned, we generally do not save the profitability product-wise because of this some other CD2s and all. So whatever we have presented in our publication and the investor site, that is available.
Nirav Jimudia
Correct. But sir, on the urea side, if you can share whether it was profitable in Q3 and with this revamp project getting close to commissioning, what sort of improvement we could see on the EBITDA per metric ton? Because if I’m not wrong, our per metric ton could see 0.70, 0.75 per metric ton. I think currently we are close to around 6.5 and with this revamp, we could go close to around 5.8, 5.85. So what sort of benefits could accrue to us with this urea plant getting revamped?
S. K. Bajpai
Yeah, India, there is a little margin available. There is no problem as such and the plant is slated to be commissioned in the coming quarter. And then after we come to know-how much energy reduction will be there, but we are sure that whatever now set-up is set-up by the government, we will be achieving this.
Nirav Jimudia
Correct. Sir, generally, if we see last Q4 also in terms of the fertilizer demand specifically for our AS and ASP, it’s generally weak and if I’m not wrong, last year, you mentioned that we have to offer some sort of discounts also in order to place our volumes. I think what we have reported in terms of PB8 for this quarter is close to around INR2,500 a ton in the fertilizer segment combining everything, all the volumes. So if you can share that how is the situation in Q4, whether still we have to provide some sort of discounts in Q4 to place our volumes or the intensity of discounts would be lesser and we could report a better profitability because last year in Q4 fertilizer segment has a loss. So if you can share your views here.
S. K. Bajpai
Actually profitability in the quarter two was basically due to the additional — this dividend received around INR100 crores that has boosted the profitability of the company in-quarter two, which is not available in-quarter three.
Nirav Jimudia
No, sir, I’m talking about Q4 to Q4 of last year. So like the upcoming quarter of Q4, where because of the seasonality issue, last year Q4 you mentioned that we have to offer some sort of discounts in order to place our volumes. So like how would be the intensity of discounts in this Q4 because last Q4 because of this discounts and everything, we had to suffer the losses on the fertilizer side. So if you can just help out with this.
S. K. Bajpai
No, in the quarter-four, I don’t foresee any discounts will be there. So we have the limited stock and that has been a strategically placed in the market and we have taken the shutdown during the lean season of the fertilizers sector as a whole, the quarter-four, we have taken shutdown of various suppliers plants like urea, APS, ammonium sulfate. So whatever suppliers we are having in the stock and retail production during the quarter-four, we are specifically placing and I don’t see our marketing department does not foresee any increase in the discount. So profitability will be remaining same as in the quarter three. So if we correctly remember, quarter-four last year was not a very good quarter, around INR25 crores of profit was reported in-quarter four last year. So this year we can expect the better performance in-quarter four.
Nirav Jimudia
Got it, got it. Sir, second question is on the HX plant, which we recently commissioned in October. So if you can share your views on the same like how much the production and sales in Q3 and possibly if you can share the profitability or the EBITDA contribution from this particular product would be very helpful.
S. K. Bajpai
Yeah, the circuit plant is now stabilized after initial travel — taking travel and now it is stabilized at the rated capacity of 20 metric ton per day. So earlier we are having the one plant, HX one crystal plant that is having the capacity of 10 metric ton per day. So totaling we are getting 30 metric ton per day capacity. So there is no problem as such now and we are regularly getting this capacity even some times are the 100% capacity also. As far as profitability of this product is concerned, we are quite comfortable. I cannot show the exact number because it is just the initial stage and we are searching the market and getting the substitution to penetrate in the market, but we are quite comfortable in the contribution side also because as you know, in the the spread is reduced like anything and there is hardly any contribution. So we are seeing the contribution like production of to at a plant.
Nirav Jimudia
Correct, correct. And sir, given the kind of the spreads and the prices you have mentioned in the presentation for caprolactam, with current level of benzene prices of close to $950 to $1,000 a ton. Hypothetically, is like the prices of above $1,700 would help us to start making profits on the side or the breakeven price for us is slightly higher than that.
S. K. Bajpai
So breakeven is just about $1,600 if we can say the, we will breakeven. So little improvement in the caprolac ton pricing will us breakeven in the.
Nirav Jimudia
Got it. And sir, last question on the sulfuric acid side. Sir, if we just do some maths and in terms of our production of ACE and other products in this quarter, I think our quarterly requirement of sulfuric acid comes to close to around 1,75,000, 180,000 tonnes. So given the kind of price increases we have seen on the sulfur side and sulfuric acid prices also and being used in the ammonium sulfate fertilizer. Do we have some leeway in terms of passing on these cost increases in the market or we have to absorb this cost and we can’t pass-on these cost increases to consumers.
S. K. Bajpai
Largely sulfuric acid is — we are producing in the unit where we benefit in ammonium sulfate. So the requirement of sulfuric acid in, which is met by our own production, which is quite competitive. And sometimes we are having the requirements, it is fulfilled by the long-term arrangement with the parties. So whatever the increase in the sulfuric acid prices there in the market, our production of ammonium sulfate or ammonium phosphate sulfate is not impacted. Additionally, we are going to capitalize sulfuric acid plant and after that, we will be having the additional capacity, what is the capability we require to produce ammonium sulfate. So we can go in the market and sell our product after getting the production from sulfuric acid five plant.
Nirav Jimudia
Okay. Sir, last question from my side, like given the kind of profitability what we have seen on the industrial product side, are there any cost measures being initiated at the company-level given the kind of current prices of and other products or let’s say, are we introducing any other new products, which in a way could help us to again come into the profits from the losses what we have been reporting on the industrial product side.
S. K. Bajpai
Yeah, we are taking two, three steps. One-step we are importing anon because Anon is imported, is cheaper than our own cost of production in the Anon Ban plant, which is very old plant. So we are replacing anon from the anon bul plant by the imported alone. It is quite cheaper so that it provides a little cushion in the production cost. Second alternate that we are reducing the production and diverting this asset to asset plant. So that much lesser is available for the market. So that’s two, three measures we are taking, but otherwise it is mainly of dependent upon the international parting of Beljin and the and we cannot do much. Till the time we have the positive, we should be continue the production.
Nirav Jimudia
Got it, sir. Thank you so much and wish you all the best.
S. K. Bajpai
Thank you.
Operator
Thank you. The next question comes from the line of, an Individual investor. Please go-ahead.
Vaibhav Seth
Yeah, good afternoon, sir. My name is. I’m little individual investors. My question is regarding — there are two questions. One is for EPS. As per the result, it is reported that EPA raise on 31st December ’24 is 13.03, right? Yeah. Can we expect for the quarter-four result EPS around INR16? And second question is, sir, where as per the government circular issued in the year of 2023 regarding various corporate action, when shall we expect that kind of corporate apart from the dividend, which you are giving 30% of the net profit? Thank you, please, sir. Answer.
S. K. Bajpai
The EPS is reported annualized Nine-Month is INR17.22, so which is surpassing your expectation of 16% what-if I correctly heard from your question. So I’m achieving that the EPS what you are expecting from the company. I do not understand the second question. Can you please repeat?
Vaibhav Seth
As per the circular from the government in the year of 2023 for announcing various kind of corporate actions regarding bonus, buyback and all that kind of corporate protections.
S. K. Bajpai
Yeah, Gujar government is there and at appropriate time our Board is taking the appropriate decision like you have seen.
Vaibhav Seth
We are hearing the same month since two years. So when can we expect sir?
S. K. Bajpai
This is not I can say this is beyond my equality. It is ultimately the Board and the Gujar government Chief Secretary is our Chairman. So they will take the appro protection.
Vaibhav Seth
Lastly when I talk to the runout sir, he has also answered the same way. Within 12 months, they will decide it, but it’s been nearly two years. No has been taken regarding bonus and buyback. Dividend you are giving 30% as per the circular, that is okay.
S. K. Bajpai
We have the robust expansion plan as you know that two, three plants we are going to capitalize within the next six months. So there is a lot of INR500 crores is required to be paid to the suppliers. So this is one of the main reason why considering the dividend payment or any other bonus or any other measures what you are expecting from the company. But after this, the — after year-end, I think the capitalization will be over and that at the time of making the dividend payment the board will take the suitable this year.
Vaibhav Seth
Means 31st March 25 or 26 hello.
S. K. Bajpai
Yeah, yeah. 26.
Vaibhav Seth
Yeah. So after that there will be no expansion in pipeline, right?
S. K. Bajpai
Yeah, they are pipeline. So one to project, we will be capitalizing in the this ’25 and project we will be capitalizing in the second-half of ’25. So I think that afterwards, we will look our cash position and the Board will decide effectively.
Vaibhav Seth
Okay. Thank you.
Operator
Thank you. A reminder to all participants, you may press star and one to ask a question. Thank you. The next question comes from the line of Lav Gupta from Counter Silicule Investments. Please go-ahead.
Love Gupta
Hi. So my question was also regarding this Gujarat government issue order. And like by when can we expect an statement or an like indication of buyback or a bonus share-based on the order.
S. K. Bajpai
That our lady replied that because of our capex plan, robust capex plan, we require some money to be expended for the growth of the company and after one year or so and all of our expansion — current plan are executed and then after Board will decide to take election in the ’26.
Love Gupta
Okay, got it. Thank you.
Operator
Thank you. The next question comes from the line of Vivek [Phonetic], an individual investor. Please go-ahead.
Vivek
Good afternoon, sir.
S. K. Bajpai
Good afternoon.
Vivek
My question was also regarding the buyback regarding the Gujarat government’s notification, you are our voice and I think you should take our voice to the Board also that many investors are asking the same questions regarding the April ’23 notification of the government of Gujarat regarding buyback. Sir, with regard to this, I’ll further add, you have told that INR500 crores need to be paid. There are certain capital expenditures, but I’ll bring your notice to the fact that we have investments of around INR7,000 crores, and further cash and bank balance of INR2,500 crores. So that is a happy amount, sir. And as per your voice, only INR500 crores need to be paid to the expansion portion. So again, I’ll request that we investors should be rewarded by the Gujab government’s notification issued in April ’23, sir. So I think you should take our voice to the Board also.
S. K. Bajpai
Yeah, certainly I take note of your suggestion and I will personally assure you to take your voice to the — our top management and the Board suitively. So yes, sir.
Vivek
We believe that the investment amount is very heavy. We are a manufacturing industry.
S. K. Bajpai
Yes, whatever expenditure we are incurring it is also for the growth of the company and you will reap the benefit for future days to come. It is not for the — anybody else. So whatever expenditure, it will provide the quite a lot of efficiency booster to the company and the profitability will be increased by that.
Vivek
Right, sir. But then I’m talking about the investment portion, not the expenditure on the fixed asset portion. Investment portion is also very heavy, sir. So please take our voice to the Board, okay, sir.
S. K. Bajpai
Sure, sure, sure.
Operator
Thank you. Participants, you may press star and one to ask a question. The next question comes from the line of Saket Kapoor from Kapoor Company. Please go-ahead.
Saket Kapoor
Yeah,, sir, and thank you for the opportunity. Sir, firstly, as you outlined to the fact that the current capital work-in progress is to the tune of INR500 crore INR500 crores. So if you could just elaborate as we see in our investor presentation on Page number eight, it has been mentioned that the solar plant and the urea II revamping project will be capitalized by March. And I think so the sulfuric acid one would be done by the first-half. This is all that we envisage towards the INR500 crores to be capitalized.
S. K. Bajpai
Yeah, Balmor project is there, that is GIPCL 75 megawatt solar power plant. So there is an investment of INR50 crores equity participation and we will be getting 37.5 megawatt of cheaper power and that is also expected in the first-half of the next financial year.
Saket Kapoor
So if you could just elaborate, firstly, the efficiencies or the benefits on the cost front that the urea revamping and the solar power addition will add to? And also the volume and the — and the bottom-line getting positively impacted by the project.
S. K. Bajpai
So as you — as you see, urea 2 revamping project is for the meeting the energy of the government. So while it is reducing the energy norms by 0.5 kilo. The deduction of the cost will be there for the company also. So I cannot just now in a position to give exact financial benefit. But roughly what I remember is it will be impacting INR30 crores to INR35 crores of the cost-reduction in the urea plant. And as a sulfuric acid for five plants, plant 198,000 and 98,000 tonne per annum so this you know the sulfuric acid price in the market, it is very aggressive. So whatever the captive consumption we are using the sulfuric acid half of or one-third of the production of the sulfuric acid pipe, the rest will be available in the market to sell and there is a good margin. As far as solar power and this solar power at Charanka is concerned, it is for 15 megawatts. So it cost will be INR3 to INR4 per unit. So it will be in replacement of the costly power generally purchased from the JV or electricity boards. So that will be the cheaper power available to the company. Also 75 megawatt GLPCL with our share is 37.5 megawatt. So that solar — due to solar power, this cost will be also around INR4 to INR5 per unit. So presently the cost per power is INR8 to INR9 rupees per unit. So that will be the benefit company will be getting in the coming years.
Saket Kapoor
So just to put it in nutshell, there will be INR30 crore saving annually for the urea revamp project that will have a one-time benefit of INR30 crores.
S. K. Bajpai
Now this is the continuer because if energy will be a common feature. So this will be a continuous feature.
Saket Kapoor
And how much have we invested, sir in this revamping project? Total investment.
S. K. Bajpai
INR450 crores.
Saket Kapoor
INR450 crores. And this investment has gone over a period of how long we have been taken to deploy this INR450 crores?
S. K. Bajpai
Two years.
Saket Kapoor
Three years.
S. K. Bajpai
Yeah.
Saket Kapoor
Okay. And sir, pertaining to the sulfuric acid part, what is sir our currently — current quarterly requirement of sulfuric acid? And with this plant being commissioned, how will our captive utilization and the — our selling into the open-market will be what percentage?
S. K. Bajpai
So whatever the requirement project we are having we are purchasing 300 metric tons per day. So 40% of this capacity of the new sulfuric acid plant will be available-for-sale. So that is for new sulfuric acid.
Saket Kapoor
Okay. So we will be vertically-integrated in terms of our requirement for sulfur will be now met from our own in-house generation.
S. K. Bajpai
So our generation and the long-term purchase agreement with the other parties. So that is also available at a very competitive rate, not at-the-market prevailing rate.
Saket Kapoor
As all investors and the stakeholders have been pointing out towards every individual who is invested or has keen interest believes for the right intrinsic value and the right enterprise value for our organization like Gujar State Fertilizer, which itself is a gold mine in terms of the assets its hold, both the operational assets as well as the financial assets. So we have always seen in past also that government generally hire agencies or the right set of the right set of people who can carve-out or suggest the right medium by which value can be created for organisations as many, many old organization like ours which have many legacy cost holdings and other aspects, which can be unlocked and value-creation can be done in the most beneficial way for both the promoters and the non-promoter entities. So our suggestion to the Board would be to set an agenda by which this value-creation exercise can be done where the optimum use of the assets, both the — both the financial asset as well as the physical operational effort can be done to create the right value for the investing communities. This would be the clear motto, sir. We as an organization have been have been for the country as a — as a provider of the continuity for fertilizer, we have also played a key role in the Artman — Artman Vharash part of the story. But your investors have been lacking behind in terms of the value-creation. So there is some gap that needs to be addressed and that — that we feel we investors feel need to be done by the right set of people and not currently to undermine your importance, sir, but there are many various things which are needed to be addressed by the right state-of-the team. So we request the — your good self and the other Board members kindly address our issue to the Board members and also to our Chairman since we are on a recorded line. So this would be giving — there should be good opportunity to carve-out the right value, the right intrinsic value for investors at large. I hope the management will take care of its — of what it owes to its investors, sir. And we hope for the continuity of the call. And I think some work, more work should be done in terms of better putting more inputs in the in the — I think so the investor presentation. We should look at our competitive — comparative data input by other competitors in the market and better destination of the same should be done. These are my basic understanding, sir. And I hope for better time, sir. Thank you.
S. K. Bajpai
Yeah, thank you. I noted your suggestion.
Saket Kapoor
Yeah.
Operator
Thank you. Participants, please press star and one to ask a question. The next question comes from the line of Nirav Jimodia from Anvil Wealth. Please go-ahead.
Nirav Jimudia
Yes, sir, thanks for the opportunity again. Sir, two, three questions. So one, currently see we are producing close to around 80,000 tons of caprolactam. So for this HX plant of 10,000 metric ton, how much would be used for our captive use?
S. K. Bajpai
Let’s. It is one-to-one actually okay 9,000 to 10,000 metric ton per annum capacity of the asset sulfate plant. So that will be reduced from the caproductum availability.
Nirav Jimudia
Got it. And sir, also if you can share in terms of our total capex for this 198,000 tonnes of sulfuric acid plant, which is getting commissioned this financial year. And also if you can share like last-time you mentioned that the new 198,000 tonnes of phos acid and sulfuric acid plant will have a capex of around INR1,500 crores. So of that INR1,500 crores, how much we have spent till now and the plant which we are going to commission by March ’25, how much is the total capex and how much we have spent till now.
S. K. Bajpai
Actually, there are two, three questions you have asked this sulfuric acid pipes project that will be having around INR250 odd crores of that is in Baroda. So we are putting the facility to meet the requirement for production of ammonium sulfate. Yes. Second question, what you have asked the is in a sulfuric acid plant of INR1,500 crores that is still in the detail engineering for stage. So there is no much expenditure till now, but till the time we receive the detail engineering done and the equipment is order, then only the expenditure will take place. Your question was in the 31st March, what will the expenditure? It is around INR200 crores we will be required to release the fund in the two months.
Nirav Jimudia
Got it. So the INR500 crores capex what you mentioned, which needs to be spent of that INR200 crores will be by March and INR300 crores will be spent in next financial year, right?
S. K. Bajpai
Next quarter or the first-half of the ’25.
Nirav Jimudia
Correct. But that doesn’t include that INR1,500 crores of capex or not?
S. K. Bajpai
That does not include.
Nirav Jimudia
Got it. And sir, last question is like if with the commissioning of this sulfuric acid fire plant of 198,000 ton, our total capacity of sulfuric acid will be now close to around 1 million ton. Hello.
S. K. Bajpai
Just give me a moment any but this one.
Nirav Jimudia
And sir, given the kind of our quarterly production for the fertilizers, how much is our quarterly requirement of phos acid?
S. K. Bajpai
See, phos acid requirement of there two places Borona and the planted Tika where we require around 400,000 of solution to run the plants at capacity level and is lesser it is around 180 180,000 tons of solution. So both caps, here we have our own plant of PA in Varada, I think we want to establish it that is there.
Nirav Jimudia
Correct, correct. So this 1,98,000 would further bring down our requirement of phosphoric acid once the detailed engineering and everything is complete, right?
S. K. Bajpai
Yeah.
Nirav Jimudia
And sir, last question from my side is on the rock phosphate side for our phosphoric acid. So are we in the process of getting some long-term contracts or investing in some of the mines outside India whereby our requirement of rock phosphate gets addressed or something of that sort, are we in any discussions with any of the suppliers whereby that requirement could be taken care of?
S. K. Bajpai
Yeah, we are scouting for this wrap-up of it and we have made a visit our executive team along with MD. MD and visit Dubai to show that and Phosphate and other suppliers, major suppliers we have spoken to and we are quite hopeful our phosphate availability is certain and there will not be any problem. However, at appropriate time, we will execute the.
Nirav Jimudia
Thank you so much and wish you all the best.
S. K. Bajpai
Thank you.
Operator
Thank you. Ladies and gentlemen, that was the last question for today. I would now like to hand the conference over to the management for the closing comments.
S. K. Bajpai
Okay, thank you for the patient listening and we hope that we have given the satisfactory reply to all the call followers and thank you once again for joining the call.
Operator
Sir, ladies and gentlemen, on behalf of GSFC Limited, that concludes this conference. You may now disconnect your lines.