Jubilant Ingrevia Ltd (JUBLINGREA) Q4 FY23 Earnings Concall Transcript

Jubilant Ingrevia Ltd (NSE:JUBLINGREA) Q4 FY23 Earnings Concall dated May. 16, 2023.

Corporate Participants:

Pavleen Singh Taneja — Director, Investor Relations

Shyam S. Bhartia — Chairman

Rajesh Srivastava — Chief Executive Officer and Managing Director

Prakash C. Bisht — President and Chief Financial Officer

Analysts:

Harsh Shah — Dimensional Securities — Analyst

Naushad Chaudhary — Aditya Birla — Analyst

Siddharth Gadekar — Equirus Capital — Analyst

Jainis Chheda — Spark Investment Advisors — Analyst

Rohit Sinha — Sunidhi Securities — Analyst

Nitesh Dhoot — Prabhudas Lilladher — Analyst

Dhruv Muchhal — HDFC Mutual Fund — Analyst

Rahul Veera — Abakkus Asset Manager — Analyst

Tarang Agrawal — Old Bridge Capital — Analyst

Presentation:

Operator

Ladies and gentlemen, good day, and welcome to Jubilant Ingrevia Limited Earnings Conference Call for the Fourth Quarter and Financial Year ended March 31, 2023. [Operator Instructions]

I now hand the conference over to Mr. Pavleen Taneja, Director, Investor Relations, Jubilant Ingrevia Limited. Thank you, and over to you, sir.

Pavleen Singh Taneja — Director, Investor Relations

Thank you, Tanvi. Good evening, everyone. Thank you for being with us on our quarter four and financial year 2023 earnings conference call of Jubilant Ingrevia Limited. I would like to remind you that some of the statements made on the call today could be forward-looking in nature, and a detailed disclaimer in this regard has been included in the press release and results presentation that has been shared on website. On the call today, we have Mr. Shyam Bhartia, Chairman; Mr. Hari Bhartia, Co-Chairman; Mr. Rajesh Srivastava, CEO and Managing Director; Mr. Prakash Chandra Bisht, CFO, Jubilant Ingrevia Limited; and Mr. Arvind Chokhany, Group CFO, Jubilant Bhartia Group. I now invite Mr. Shyam Bhartia to share his comments.

Shyam S. Bhartia — Chairman

Thank you, Pavleen. A very good evening to everyone. Thank you for joining us on Q4 and financial year 2023 earnings conference call of Jubilant Ingrevia Limited. We are happy to announce that during the year, FY ’23, our Specialty Chemicals business grew 29%, Chemical Intermediates business plays highest ever volume of Acetic Anhydride and gained higher market share globally. However, Nutrition business has — have faced headwinds for Niacinamide, leading to lower volume as well as lower price realization. EBITDA in FY ’23 was lower mainly on account of higher energy prices and challenging market situation of Niacinamide business.

During the quarter, though our Specialty Chemicals business recorded a higher revenue and Chemical Intermediate business have placed higher volumes of Acetic Anhydride year-on-year. However, overall revenue was lower due to price of Acetic Acid leading to lower price of Acetic Anhydride and headwinds we continue to face in Niacinamide business. Though EBITDA during the quarter for Chemical Intermediate business improved year-on-year, however overall EBITDA performance impacted due to challenging market situation of Niacinamide and some of our Specialty products meant for Agrochemical customers.

We firmly believe that challenges faced in Niacinamide business in some of the products in our Specialty Chemical meant for Agrochemicals are of short-term nature, and business is confident to regain volumes, revenue and profitability as market situation improves. Our endeavors towards growth plan remains undeterred through our structured growth capex, and we are confident that driving robust growth in future. This growth will be led primarily through our Specialty Chemicals and Nutrition business segment.

We are also glad to share that the Board has recommended a final dividend of 250%, that is INR2.5 per equity share of the face value of INR1 each for FY ’23. This shall result in cash flow of — cash outflow of INR39.8 crores. During the year, Company has already declared an interim dividend of 250%, that is INR2.5 per equity share of INR1 each and the total dividend for FY ’23 works out to be 500%, that is INR5 per equity share of INR1 each amounting to INR79.6 crores of cash outflow.

With this now, I hand over to Rajesh to discuss about the business in detail.

Rajesh Srivastava — Chief Executive Officer and Managing Director

Thank you, Mr. Bhartia. Very good evening to all of you. At the outset, let me welcome you all for joining us today for Q4 and FY ’23 investor call of Jubilant Ingrevia Limited. I sincerely hope that you and your loved ones are keeping very well. Let me now take you through the financial and operational performance of Jubilant Ingrevia Limited for the fourth quarter and financial year 2023.

For the year FY ’23, our revenue was lower over last year, mainly due to lower price of Acetic Acid, leading to lower price realization of both Acetic Anhydride and Ethyl Acetate and due to headwinds we faced in Niacinamide business. While our Specialty Chemical business revenue maintained healthy growth of 29%, we have also been successful to improve our market share of Acetic Anhydride by placing significantly higher volume over last year.

Overall, in FY ’23, our EBITDA was lower, mainly due to high energy costs, including coal prices, lower performance of Niacinamide, and normalization of Acetic Anhydride market situation as compared to last year. Revenue during the quarter was lower on year-on-year basis due to lower price of Acetic Acid, leading to lower sales price realization of Acetic Anhydride and Ethyl Acetate and lower demand of Niacinamide leading to lower volume as well as lower price realization.

EBITDA during the quarter was down on year-on-year basis, mainly due to lower performance of Niacinamide and the headwinds phased in Specialty Chemical business, mainly from Agrochemical customers. However, Chemical Intermediate segment EBITDA improved on year-on-year basis due to better price realization of Acetic Anhydride. We have started witnessing improvement in demand of Niacinamide, while we expect improvement in demand of Agrochemical customers to normalize by end of Q2 FY ’24.

On the energy cost front, we have arrested by increase in cost to great extent, supported by lower coal prices as well as improving operational efficiencies both in generation as well as in conjunction. Further, our plans to reduce overall energy cost by sourcing power at Gajraula from grid, which will start by end of Q2, and from renewable sources, which will materialize during next financial year or on the track.

Now, let me take you through the updates on all our three business segments. Specialty Chemicals, our Specialty Chemical business during FY ’23 has recorded revenue growth of 29% over last year, mainly due to higher volume sales of both existing as well as new products. However, EBITDA for the year was lower over last year, mainly due to higher energy costs during the year and lower demand of Agrochemical customer during H2.

During the quarter, revenue of Specialty Chemical was lower year-on-year basis and EBITDA for the quarter was lower year-on-year basis, mainly due to lower demand from Agrochemical customers, leading to significant drop in price realization of some of our products meant for agrochemical end use.

We continue to see positive traction in demand of our CDMO products. In view of this during construction of our new GMP facility, we have taken a conscious decision to upgrade the capacity, which though have delayed our GMP plant, however, will benefit us in longer-term. We have commissioned both our cGMP plant in Bharuch and Non-GMP plant in Gajraula now. Our new cGMP multipurpose plant in Bharuch will help us to facilitate our global pharmaceutical clients’ new development program and will position Jubilant Ingrevia Limited as a leading partner of choice to innovators within regulated markets.

Our multipurpose Non-GMP plant at Gajraula will further aid us to structurally shift more towards value-added Specialty Chemical business. This multipurpose product facility has been engineered to handle multistep complex chemistries and will expand Company’s foray into value-added derivatives of both Pyridine and non-Pyridine based products.

Nutrition & Health Solutions, our Nutrition business has recorded 28% lower revenue during FY ’23 over last year and EBITDA was impacted significantly mainly due to severe headwinds we have faced during the year due to Avian and Swine flu in US and EU regions, leading to lower volume and significant price erosion of Niacinamide.

During the quarter, revenue of Nutrition business was lower — were also lower year-on-year. However, sequentially, volume has started improving, while price remained under stress during the quarter. Business has started witnessing the improvement in demand as well as improvement in price of Niacinamide in the present quarter.

As mentioned by Mr. Bhartia, we firmly believe that the challenges faced in this segment are of short-term in nature and business is confident to regain volumes and revenue and profitability, along with improvement in market situation. Our efforts towards increasing our presence of Niacinamide in food and cosmetic end use segment is yielding positive results, and in view of this, we have approved the capex to build new cGMP compliant facility, which will produce about 3,000 tons per annum cosmetic grade of Niacinamide. This capacity will be ready during the quarter April to June 2024.

In addition, our development work on bringing up new cGMP compliant facility for food grade Vitamin B4 is going on track. We expect to approve this capex sometime during July to September quarter this year. Both the above initiatives will reduce our high dependency on global feed market and will provide consistency to our Nutrition business.

Chemical Intermediates, our Chemical Intermediate business has recorded lower revenue during FY ’23 over last year, mainly due to lower prices of Acetic Acid leading to lower price realization of Acetic Anhydride and Ethyl Acetate. We continue enhancing our market share of Acetic Anhydride both in domestic as well as international market.

Chemical Intermediate business EBITDA for FY ’23 was lower than last year, mainly due to normalization of prices which was better during last year due to better market situation of Acetic Anhydride. During the quarter, revenue of Chemical Intermediate was lower year-on-year basis, mainly driven by lower price of Acetic Acid leading to lower price utilization of finished products.

EBITDA during the quarter was higher on year-on-year basis due to higher volumes. Overall outlook of Acetic Anhydride market appears to be stable, with global demand continues to grow in several end use segments. During the quarter, we have been successful in bringing new customers for Acetic Anhydride, mainly in Europe region, which will ensure good utilization of newly-added capacity of Acetic Anhydride. We would continue rationalizing our sales of Ethyl Acetate and Specialty Ethanol to niche customers only to optimize our margins.

Other financial details. The Company was under the old tax regime during FY ’23, and the ETR is 29.6%. Net debt at 31st March was INR312 crore and net debt-to-EBITDA ratio was at 0.54 times on the basis of trailing 12 months EBITDA. The net working capital percentage and number of days of working capital for Q4 FY ’23 on the basis of trailing 12 months turnover were at 17% and 62 days, respectively. The capital expenditure during quarter was INR146 crore and for FY ’23 was approximately INR481 crore.

Outlook and growth capex plan. The Specialty Chemical business, though, we expect short-term impact in demand from Agrochemical customers for some of our Specialty Chemical product, and we expect demand to normalize during H2 this year. Our Niacinamide business is already witnessing improvement in global demand, and accordingly, we see price is also moving up. Our next new capex plan is going on track, and we continue to focus on improving our revenue mix from Specialty and Nutrition business segment.

And with this, I would like to conclude our opening remark. We will now be happy to address any question that you may have. Thank you.

Questions and Answers:

Operator

Thank you very much. We will now begin the question-and-answer session. [Operator Instructions] The first question is from the line of Harsh Shah from Dimensional Securities. Please go ahead.

Harsh Shah — Dimensional Securities — Analyst

Hi, good afternoon, sir. Sir, first question is on Specialty Chemical division. So the price reduction, which we have seen, is it more related to demand slowdown or have you also seen like additional supply coming into the market? And what would be the inventory situation right now?

Rajesh Srivastava — Chief Executive Officer and Managing Director

So in Specialty Chemical, the Agrochemical customers demand was under pressure, so therefore, we saw the price realization was lower, and also, the — some of the products like Pyridine, the prices have been under pressure. Therefore, the performance of Specialty Chemical was lower than last year and last quarter.

Harsh Shah — Dimensional Securities — Analyst

By how much percentage have the realization been impacted?

Rajesh Srivastava — Chief Executive Officer and Managing Director

Very difficult to do the exact percentage, but yes, there has been significant reduction in price realization, because difficult to give you product-wise.

Harsh Shah — Dimensional Securities — Analyst

No, maybe on a blanket basis in both Chemical Intermediate as well as Specialty Chemical.

Rajesh Srivastava — Chief Executive Officer and Managing Director

No, Chemical Intermediate, the price realization has been as per the Acetic Acid prices. So there has not been any deterioration of price. Our margins also have been good. So Chemical Intermediate, there was no challenge.

Harsh Shah — Dimensional Securities — Analyst

Okay. And do we continue to hold any inventory in our book, which was bought at a higher price that still needs to get sold and whose impact is yet to be recognized in the books?

Rajesh Srivastava — Chief Executive Officer and Managing Director

No, no, no, we are not carrying. So this performance is not because we are carrying high inventory, this performance was because globally, Agrochemical demand was lower. So other suppliers have been supplying at much lower price to liquidate their material, but this is not the case for us. We are not carrying any extra inventory.

Harsh Shah — Dimensional Securities — Analyst

Okay. And sir, what would be the volume growth for Q4 and also for full financial year FY ’23 across all three segments?

Rajesh Srivastava — Chief Executive Officer and Managing Director

Volume growth, in terms of Chemical Intermediate, we have grown to the extent of 7% to 8%. In Specialty Chemical, in quarter four, our volume has been almost flat. We have not grown. In Nutrition business, as you know, our volumes have degrown from last year. But sequentially, from Q3, we have grown our volume in Niacinamide.

Harsh Shah — Dimensional Securities — Analyst

Okay. And sir, there has been slightly — there has been increase in the other expenses. Could you explain what could that be?

Prakash C. Bisht — President and Chief Financial Officer

So the increase in the other expenses, primarily over last year, is on account of this year’s higher freight expenses, the higher warehousing charges, and higher processing charges. Over the last quarter, the increase is mainly the above three factors, which is freight, warehousing charges, and processing charges. In addition to that, higher consumption of stores and [Indecipherable]. So these were the reasons for which the other expenses are higher.

Rajesh Srivastava — Chief Executive Officer and Managing Director

They are general in nature. They are mostly in general in nature.

Prakash C. Bisht — President and Chief Financial Officer

Most specific [Speech Overlap] these are general expenses.

Harsh Shah — Dimensional Securities — Analyst

And just last question. So since this is the realization of many of our products, key products has come down, be it Nutrition or Specialty Chemical and Chemical Intermediates, are we changing our guidance of revenues? Because the guidance which we have given, the prices of all these products are much higher than what they are now. So do we stick to the same revenue guidance or do we want to bring that down in terms of absolute number — revenue of the incremental capex?

Rajesh Srivastava — Chief Executive Officer and Managing Director

No. So if you see, there is no fundamental change which is happening. This is — as Mr. Bhartia also said, I also said, both these — what is happening in the market is short-term in nature. This is not going to last long. We are already seeing improvement in Niacinamide market situation, and we are very hopeful that H2 even Agrochemical market should start improving. So I don’t think we are doing any change in our guidance for capex.

Harsh Shah — Dimensional Securities — Analyst

No, not the capex, but the revenue that you’ll be generating from this capex? This guiding or doubling of the revenue. So with the prices coming off —

Rajesh Srivastava — Chief Executive Officer and Managing Director

There is no change much. There is no much change because we have given you guidance based on what realistically we will do. We have not given guidance, which is very hypothetical. It’s more realistic guidance we have given.

Harsh Shah — Dimensional Securities — Analyst

All right, all right. Thank you so much. I’ll join the queue.

Operator

Thank you. The next question is from the line of Naushad Chaudhary from Aditya Birla. Please go ahead.

Naushad Chaudhary — Aditya Birla — Analyst

Hi, thanks. Two clarifications. Firstly, in Specialty business, what percentage of revenue comes from ag chem and is it entirely from the [Indecipherable] or do we work on any innovative molecules here in Specialty?

Rajesh Srivastava — Chief Executive Officer and Managing Director

So ag chem is contributing to almost 37% to 38% up of our Specialty Chemical revenue. And these are mostly the value-added derivatives, which we supply to large Agrochemical companies. We are not supplying any innovative molecules.

Naushad Chaudhary — Aditya Birla — Analyst

Okay. And in terms of the margin and EBIT run rate, this used to generate INR60 crores, INR70 crores, that has come down to about INR40 crores. Do you believe the next two quarters is difficult to guide on this or do you think this could be a bottom and sequentially you should see an improvement at least on the EBIT side in this division?

Rajesh Srivastava — Chief Executive Officer and Managing Director

I can fairly assume this is the bottom we are touching. We have to have improvement from here. May not be immediately, but as I said from H2 will be definitely coming back to the normal situation.

Naushad Chaudhary — Aditya Birla — Analyst

And what all things should have to happen for the improvement from here on? Would that be from the price or would it from the raw material side? What should help from here on to improve this profitability?

Rajesh Srivastava — Chief Executive Officer and Managing Director

Just — I mean, if the demand improves in Agrochemical, our products are very well suited, customer will buy, and of course, we will sell the product, as we have been doing it earlier. The fundamentals are same.

Naushad Chaudhary — Aditya Birla — Analyst

Okay. And these all — our Specialty largely are spot business or do you work on a contractual sum?

Rajesh Srivastava — Chief Executive Officer and Managing Director

No. So we do — as we explained earlier also, we always have the annual volume confirmation of the customers and we discussed the volume dispatches every quarter. So we know – we have the visibility of volume, but if the market situation changes, the customer can change his volume in between also. So we don’t know clearly what volume he’s asking during the year.

Naushad Chaudhary — Aditya Birla — Analyst

Okay. Sir, in specialty, see, there is an operating deleverage challenge, but do you also — are you also experiencing the pricing pressure as well?

Rajesh Srivastava — Chief Executive Officer and Managing Director

Yes, because the demand is lower, of course, the pricing pressure is there.

Naushad Chaudhary — Aditya Birla — Analyst

Okay, understood. And you expect this to improve from second half of this?

Rajesh Srivastava — Chief Executive Officer and Managing Director

Yes, yes.

Naushad Chaudhary — Aditya Birla — Analyst

Okay, okay. All right, all the best. Thank you so much.

Rajesh Srivastava — Chief Executive Officer and Managing Director

Thank you.

Operator

Thank you. The next question is from the line of Siddharth Gadekar from Equirus Capital. Please go ahead.

Siddharth Gadekar — Equirus Capital — Analyst

Hi, sir. Good evening. So first on Specialty Chemicals. We had just highlighted that our volumes were flat Y-o-Y in Specialty Chemicals. And if I look at the revenue numbers, they have increased 5% Y-o-Y. So what am I missing here in terms of, like is that a realization decline, volume decline or what explains the margin profile in this quarter?

Rajesh Srivastava — Chief Executive Officer and Managing Director

So sometimes this revenue also depends on the product mix, which you sell during the quarter, right? So it’s difficult to say that. So what we said that, yes, the revenue has increased, but volume has been flat, so — because of product mix. We have almost 40 products to sell. So depending on which product mix, sometimes it happen.

Siddharth Gadekar — Equirus Capital — Analyst

Sir, secondly, in terms of Agrochemicals, can you just point out which products actually have seen a slowdown that has impacted our performance?

Rajesh Srivastava — Chief Executive Officer and Managing Director

So Agrochemical, Pyridine, and some Pyridine derivatives because we have mainly Pyridine, Pyridine derivatives, which we are selling to Agrochemical customers.

Siddharth Gadekar — Equirus Capital — Analyst

No, the end Agrochemicals, if you could highlight which are the Agrochemicals which have seen them.

Rajesh Srivastava — Chief Executive Officer and Managing Director

Yeah, the biggest one is Paraquat, Diquat, which is produced out of Pyridine, and there are many host of products where we supply.

Siddharth Gadekar — Equirus Capital — Analyst

Okay, got it. Sir, and lastly, in terms of our capex, we have removed our capex slide from the presentation. Is there a change in our capex guidance or anything?

Rajesh Srivastava — Chief Executive Officer and Managing Director

No, actually, for so many quarters, we have been just repeating the same picture, so — and that we did because we formed a new company, we wanted much better communication, but I now don’t want to confuse you guys. But there is no change in our guidance, as I said earlier. It’s just that we made our presentation much more cleaner. But of course, if there is any clarification question like you are asking, there is no change in capex.

Siddharth Gadekar — Equirus Capital — Analyst

So sir, what should be the capex for FY ’24 and ’25 then?

Rajesh Srivastava — Chief Executive Officer and Managing Director

So ’24, ’25 or ’23, ’24?

Siddharth Gadekar — Equirus Capital — Analyst

FY ’24 and FY ’25, for the next two years.

Rajesh Srivastava — Chief Executive Officer and Managing Director

Okay, FY ’24, FY ’25. So FY ’24, I think we have a guidance of almost INR700 crore cash outflow and FY ’25 should be close to INR600 crore, as we said earlier, if you see our earlier presentation.

Siddharth Gadekar — Equirus Capital — Analyst

Okay, sir, got it. Thank you.

Rajesh Srivastava — Chief Executive Officer and Managing Director

Thank you.

Operator

Thank you. The next question is from the line of Jainis Chheda from Spark Investment Advisors. Please go ahead.

Jainis Chheda — Spark Investment Advisors — Analyst

Good evening, sir.

Rajesh Srivastava — Chief Executive Officer and Managing Director

Good evening.

Jainis Chheda — Spark Investment Advisors — Analyst

My question is more to do with the power cost, which has gone up substantially [Indecipherable] from FY ’21 and FY ’22 and also there is a jump in the other expenses. So can you help us understand how the power costs are likely to move in coming two to three years and how will it impact the profitability?

Rajesh Srivastava — Chief Executive Officer and Managing Director

So if you see the quarter four, our energy costs are close to normal situation, of course, a little higher, but it is — it used to be very high in Q1, Q2, Q3. But we have arrested it, as I said. One is that coal prices have come down. Secondly, we have done a lot of efficiency improvement. And also, if you see our consumption profile in efficiency improvement, we have improved. So I think there is not much now in terms of very high cost of power and fuel. But of course, we are working further to optimize our energy cost. But yes, FY ’22 has been very high as you have seen that.

Jainis Chheda — Spark Investment Advisors — Analyst

Yeah. So on a steady-state basis, what will be the power cost as a percentage of sales [Indecipherable] ratio that you can [Indecipherable]?

Rajesh Srivastava — Chief Executive Officer and Managing Director

Again, percentage become very difficult because, in our case, sometimes revenue becomes difficult to explain because of raw material prices. But on an average, if you see last year, we have been close to 18% of our revenue on our energy cost. So that percentage keeps changing. Right now, I think in Q4, it is close to about 23%, that’s what I said that maybe a little bit more improvement will be close to our normal situation.

Jainis Chheda — Spark Investment Advisors — Analyst

Okay. And in terms of the Nutrition business, what is the outlook for FY ’24 and for next five years and for next three years as well?

Rajesh Srivastava — Chief Executive Officer and Managing Director

So for three years, it is very difficult to confirm, but I can only tell you that in Nutrition business, the situation we can see today is improving both in terms of price as well as demand. So we are happy to say that, of course, this quarter, we will have lag. But by end of this quarter, our situation is coming much, much better than what we have been earlier.

Jainis Chheda — Spark Investment Advisors — Analyst

Okay. So in your previous [Indecipherable] that around 20% EBITDA in Nutrition business, which has collapsed. So what will be a sustainable number is what we are trying to understand?

Rajesh Srivastava — Chief Executive Officer and Managing Director

I think we hope that, H2, we should be in a position to catch up.

Jainis Chheda — Spark Investment Advisors — Analyst

Okay. Handy comments, sir.

Rajesh Srivastava — Chief Executive Officer and Managing Director

Thank you.

Operator

Thank you. The next question is from the line of Rohit Sinha from Sunidhi Securities. Please go ahead.

Rohit Sinha — Sunidhi Securities — Analyst

Hello. Yeah, thanks for taking my question, sir. One is that, how we are seeing this Chinese market before and after the reopening of economy, which all we are talking about, and how it is now increasing our business segments?

Rajesh Srivastava — Chief Executive Officer and Managing Director

I missed your part. You’re asking about Chinese market?

Rohit Sinha — Sunidhi Securities — Analyst

Yeah, yeah, how the Chinese markets are actually influencing our business and how mainly it has influenced before and after the reopening of its economy?

Rajesh Srivastava — Chief Executive Officer and Managing Director

So we have been saying that few products, like Niacinamide or maybe some base products of Pyridine, where we have some competition from China, and of course, there — if China gets aggressive, we get impacted. But most of our other products like CDMO and other Specialty derivatives, there is hardly any competition we face, and in Chemical Intermediate, there is no competition from China. So I don’t think there is much impact in these businesses. But some products like Niacinamide, we have competition in China. Pyridine, we have competition in China. So we see if China becomes aggressive, then of course, we see the impact in price reduction.

Rohit Sinha — Sunidhi Securities — Analyst

Okay. So any change we have seen in the last few months especially, I mean, already, we are seeing kind of pressure in Pyridine and Niacinamide. So any improvement as of now or still it is a same situation?

Rajesh Srivastava — Chief Executive Officer and Managing Director

Yes. So Niacinamide, I already said that improvements are happening now. Niacinamide, we can clearly see the improvement both in demand as well as pricing. And China has really come out of material, so obviously, situations are improving.

Rohit Sinha — Sunidhi Securities — Analyst

Okay. Okay. And sir, one thing that — what are the factors or measures which should help us in sustaining the margin in Specialty Chemical despite the volatility in the Acetic Acid prices or raw material led the price be up or down, but we should at least manage to hold somewhere average margin in the segment. Or it may be — again, the question that we are looking at absolute EBITDA growth or EBITDA margin improvement in that segment?

Rajesh Srivastava — Chief Executive Officer and Managing Director

No, Specialty Chemical is not that situation. You can say Chemical Intermediate, I can agree with you that depending on Acetic Acid, our margin percentage may vary. But yes, in Chemical Intermediate, we continue to see our EBITDA improvements because of volume growth. Coming back to Specialty Chemicals, we have more or less stable margins in most of the product, but sometimes when the market situation like we have now, which is not only for us, it is for the global, then it becomes difficult to hold the prices and we have to compete with the market, and that time we have to really see our margins going down. But in Specialty, it doesn’t happen that raw material prices goes up, so our margin will go down.

Rohit Sinha — Sunidhi Securities — Analyst

No, just because this quarter, obviously, we [Indecipherable] a different kind of pressure, but that is where I was indicating that it should not be coming again going forward as I think we were also saying that this should be a bottom-out kind of situation for this.

Rajesh Srivastava — Chief Executive Officer and Managing Director

Yeah, yeah.

Rohit Sinha — Sunidhi Securities — Analyst

Okay. And one last question, if I can squeeze in. In power cost, as earlier [Indecipherable] was also indicating that how we are placed going forward. As we are seeing that, therefore, on quarter-on-quarter, we are improving on power cost. So how we are now placed with the coal dependency and are we still looking the opportunity for renewable sources? I mean, putting up our plant and — or looking for sourcing that renewable?

Rajesh Srivastava — Chief Executive Officer and Managing Director

Overall power — overall coal prices have come down, as you know, so overall cost has come down. But in Gajraula, we see some positive results in terms of our contract volume supplies, some volumes have started coming, so that is why you see improvement. Coming back to further improvement, as we have said in our speech also, in Gajraula, now we are also going to get connectivity of grid, so of course, our power cost will further reduce. And also, we are working on sourcing the renewable energy, which is solar and wind combined. That something will happen after a year or so, maybe one-and-a-half year, so that we are not committing for this year. But yes, we are working, which will long-term give us the benefit starting next year onwards. But currently, I think situation is very much in control, both because the overall market price of coal has come down and government have eased a little bit of supplies of contracted coal in the Gajraula.

Rohit Sinha — Sunidhi Securities — Analyst

Okay. Okay, thank you. Thank you, and best of luck, sir.

Rajesh Srivastava — Chief Executive Officer and Managing Director

Thank you.

Operator

Thank you. The next question is from the line of Nitesh Dhoot from Prabhudas Lilladher. Please go ahead.

Nitesh Dhoot — Prabhudas Lilladher — Analyst

Hi, team. Thank you for this opportunity. So my first question is on the Specialty Chemicals, on the CDMO side. So we had a couple of contracts totaling INR270 crores that was to be executed over a three-year period. How much are we targeting to execute in FY ’24 from this contract? And if you can provide a revenue guidance for CDMO facilities overall for FY ’24.

Rajesh Srivastava — Chief Executive Officer and Managing Director

So that contract, which we had informed you, is happening as contract volume. There is no change. Of course, what happens in these customers, sometimes the volumes you dispatch in one quarter and then second quarter, the volumes does not go. So quarter-on-quarter may vary, but on an annual basis, whatever we have customer has asked for is happening. There is no change.

Nitesh Dhoot — Prabhudas Lilladher — Analyst

Okay. So any number that you can ascribe for the CDMO revenue potential at optimum utilization. Any number that we can work with?

Rajesh Srivastava — Chief Executive Officer and Managing Director

So earlier also we have said that the new GMP facility, which we have just commissioned, is going to add up the revenue in our CDMO business, and that revenue, we will — which will normalize coming up in the H2 of this year because plant is picking up in capacity, and of course, H2 onwards, our CDMO revenue also will go up.

Nitesh Dhoot — Prabhudas Lilladher — Analyst

Okay, okay And sir, where have we reached on our Diketene derivatives plant utilization, and if you are maintaining our 70% utilization guidance for FY ’24 there?

Rajesh Srivastava — Chief Executive Officer and Managing Director

Yes, we are very close to 65% of our utilization. We are hoping that it will continue to improve in going quarter.

Nitesh Dhoot — Prabhudas Lilladher — Analyst

Okay. Sir, on the Chemical Intermediate side, where would we be on the capacity utilization of the CI segment for Q4 and for FY ’23 as a whole, and I mean, separately for Acetic Anhydride and Ethyl Acetate, if possible?

Rajesh Srivastava — Chief Executive Officer and Managing Director

On Acetic Anhydride, other than this new plant, which we have just commissioned, I think we are operating at 85% to 90% capacity, and that is the reason we brought this new capacity. And this quarter, I mean, the current quarter will be our first quarter where the new capacity will be sold. And of course, we have a plan to slowly gear up on volume gradually. So we have a plan in the next one-and-a-half to two years to use this entire capacity, which is about 50,000 tons. So quarter-on-quarter, we will have improved volumes from this capacity.

Nitesh Dhoot — Prabhudas Lilladher — Analyst

So in a couple of years’ time, you’re looking at a full utilization there?

Rajesh Srivastava — Chief Executive Officer and Managing Director

Yeah, we always hope — we always say that, but it also depends on demand like in last plant, we said that this will take two to three years, but fortunately, because of market condition within a year, we could utilize the capacity. So you never know, we always give a guidance, which we can definitely do it. So yes, in couple of years, we will be in a position to utilize this capacity.

Nitesh Dhoot — Prabhudas Lilladher — Analyst

Okay. So have we already seen a base EBITDA number for the segment at INR59 crores, INR60 crores with the pricing and the spreads normalization that has happened for the older capacity? Or I mean — or do we expect further spread compression coming up?

Rajesh Srivastava — Chief Executive Officer and Managing Director

Unless there is a very severe market headwinds we face, I don’t think there will be change in this base profile. You never know in commodities, something very drastically happens, you don’t know. But in normal situation, I think we should be seeing similar level or better because our volumes are going to be better.

Nitesh Dhoot — Prabhudas Lilladher — Analyst

Sure. Sure. Sir, one question on the management change. So Mr. Anil Khubchandani’s exit at a time when the Company is in the middle of executing a large capex, especially on the Specialty Chemicals side. So anything to read into this or if you can give some color on this?

Rajesh Srivastava — Chief Executive Officer and Managing Director

I don’t think there is much to read about it. I mean, it’s a market where he found his next inning better somewhere else. We decided to move on. Of course, it’s not a good situation for us, but we have our success in pipeline so strong. The people — our structure is such that the below we have all the business heads who are taking business. Anil was responsible for Specialty Chemical business, which is consisting of three or four smaller business units. Those business unit heads are already at place. They are taking care of their business. I am already there, and there is now a new head for a leadership point of view. So I don’t think there is anything to be read more in this. But yes, anybody leaves the company, there is a situation where we don’t see — feel good about it. Pricing, and from business continuity point of view, I don’t see any challenge as of now.

Nitesh Dhoot — Prabhudas Lilladher — Analyst

So one last question, if you can just squeeze in before I come back in the queue. So sir, how are we confident of the impact on the Specialty Chemical side? And when we say that this is a one-off one quarter impact. If I draw parallel from what we’ve experienced over the last year or so and what we initially perceived to be a short-term impact in case of Nutrition segment or in case of the coal issues on the Specialty Chemical side, so I mean, how are we so confident that this challenge will go away in a quarter’s time?

Rajesh Srivastava — Chief Executive Officer and Managing Director

No, so we are also looking at the market, you are also looking at market, I’m also reading that Agrochemical market situation should improve in H2. If you read anywhere, any company in terms of Agrochemical performance, everybody is saying that H1 is going to be tough, H2 has to improve, and that’s how we can envisage. I don’t think I’m saying anything new.

Nitesh Dhoot — Prabhudas Lilladher — Analyst

Okay, sir.

Operator

Sorry to interrupt you. I would request you to please come back in the queue. I request all the participants, please limit your questions to two per participant, so that the management is able to cover all the questions from the participants in the queue. The next question is from the line of Dhruv Muchhal from HDFC Mutual Fund. Please go ahead.

Dhruv Muchhal — HDFC Mutual Fund — Analyst

Hi, sir. Thank you so much. Sir, a question similar to the earlier ones. On the Spec Chem, sir, the last two years, a decent part of the growth in Spec Chem was driven by Agro. I get data from your presentation that your agchem revenues — Agro agchem revenues where Agro and Specialty revenues have moved from about INR300 crores to about INR700 crores in the last two years, FY ’21 to ’23. And now that we are hearing all about China recovering back, normalizing and all those things, our revenue growth was also coinciding a lot with the disruption, which has happened globally. So I’m just trying to understand, is there something which was some kind of one-off benefits that one should be aware of when you’re thinking about degrowth in the future?

Rajesh Srivastava — Chief Executive Officer and Managing Director

So I don’t think we had in — if you see, regularly, for last seven, eight quarters, our performance of Specialty Chemical has been improving both in pharma and agro. And this time in this quarter, we have seen a very, very poor demand from agrochemical customers, and therefore, there is a performance gap, but I don’t see that this is something which is changing our regular performance of Specialty Chemical business.

Shyam S. Bhartia — Chairman

See, we — just to add that, we hear from our customers that, from H2, the demand will be normal. And that is why we feel that the customers who we are supplying the material, their excess stock of Agrochemicals line with them because of lower demand of Agrochemicals in Brazil and US, therefore, they feel that this excess production which we have with them will be used by North America and Brazil and Europe. So therefore, we strongly believe that listening to our customers that, from H2, the demand should be normal.

Dhruv Muchhal — HDFC Mutual Fund — Analyst

Got it. Sir, I was just trying to dissect it because there is a lot of news flows that China is now back to normal versus what it was in the last two, three years. So this is not because of China recovering, this is more about [Speech Overlap]

Shyam S. Bhartia — Chairman

No, no, this is not because of China because our Agrochemical companies in US and Europe, they have surplus production line with them on the finished Agrochemicals, because of lower demand of Agrochemicals in Brazil and in US mainly and in Europe. Therefore, they — as soon as they are going to [Indecipherable] stock levels will come down, they will start buying again. What we hear from our customers, there’s nothing wrong with Chinese.

Dhruv Muchhal — HDFC Mutual Fund — Analyst

Got it, sir, Perfect. Yeah. Sir, the second thing is on Pyridine. Now, based on a basic understanding, Pyridine also find a lot of application in some of the newer molecules. Probably — I mean, you might not directly be linked to it, but indirectly, your products might go or some other competitor’s products might be going — Pyridine products might be going. So I’m just trying to understand your earlier comment that Pyridines are — your products or Pyridine products are largely into generic. Just wanted to get some better understanding there because [Speech Overlap]

Shyam S. Bhartia — Chairman

See, the Pyridine products are used in various uses and including — and the new uses of these products are in electronic products, like in the electronic circuit board also it is being used. So I’m just saying that it is new uses of product is coming in, but the demand increase — overall demand increase is not — is about 3% to 4% only. New users are coming, which is a higher value pricing, but of course, the total demand is growing only at 3% to 4%.

Rajesh Srivastava — Chief Executive Officer and Managing Director

In case of Pyridine, if you see that all the new product development, which we are doing, we are taking care of many industries, so there are a lot of derivatives, which you are planning. And every year, we are launching four, five new derivatives. So Pyridine, for us, we say Pyridine, but there are almost 35, 40 products which we regularly sell, which are used for pharma, agro, electronic, personal care, all those uses.

Shyam S. Bhartia — Chairman

And just as a comment I’m telling you, that in Pyridine, 40% of Pyridine is used internally by us. So it is important for you to understand that we are also making intermediate. New intermediate means new captive consumption goes up. So we are adding value. Our objective is to add value to Pyridine in next three or four steps and then meet the requirement rather than selling Pyridine.

Dhruv Muchhal — HDFC Mutual Fund — Analyst

Sure, sir. Got it. Sir, [Indecipherable] question. If you have a lot of intermediate — I mean, inter-segment consumption, ideally, that should have knocked off in the intersegment revenue reporting, but that does not happen, probably I’ll take that offline. [Speech Overlap]

Shyam S. Bhartia — Chairman

Pyridine-based intermediates, which are used in Agrochemicals, the demand for this was less, so our sale was less. So now that demand will become normal, then our sales will go up.

Dhruv Muchhal — HDFC Mutual Fund — Analyst

Yeah. Sir, the second question is, on the capex for FY ’24, you mentioned INR700 crores. I believe large part of your announced — the capex that you had earlier in the presentation mentioned is committed capex, the large part is done in the end of FY ’23 or probably commissioned in early FY ’24 — 1Q FY ’24. So what is this capex now for INR700 crores, if you can probably mention the key projects?

Rajesh Srivastava — Chief Executive Officer and Managing Director

Okay. So if you see our last presentation, the key capexes are this Non-GMP multipurpose, which is going on. We have expansion of our Vitamin B3 into cosmetic grade, which is now going on. We have plans to approve Vitamin B4 food grade capex, then we have plans to add one more GMP facility. All that what we have said earlier in our last presentation is still prevailing. And we have said INR700 crore this year is still prevailing. So there’s nothing changed. If you see last year, last presentation, you will find everything.

Dhruv Muchhal — HDFC Mutual Fund — Analyst

Okay. Because a lot of these projects were not to-be-committed. So probably they have converted to committed now, is it?

Rajesh Srivastava — Chief Executive Officer and Managing Director

Yeah, yeah, yeah, yeah. Of course. So quarter-on-quarter, we keep taking decisions on those capexes which are ready with design, development, everything. So it takes time. First, you develop a product, then you pilot it, then you design it, then you take a call of capex approval. So of course, we take it gradually, not all together.

Dhruv Muchhal — HDFC Mutual Fund — Analyst

Sure.

Rajesh Srivastava — Chief Executive Officer and Managing Director

Quarter-on-quarter, we will take decisions.

Dhruv Muchhal — HDFC Mutual Fund — Analyst

And sir, last question on the food grade Acetic Acid. It’s about a year now. So how is the ramp up? I think in the last call, you mentioned it takes a year or so about — to get the approvals and one. So it’s already a year now.

Rajesh Srivastava — Chief Executive Officer and Managing Director

So food grade Acetic Acid very much on place. We have a good product, quality product GMP plant being audited by customer now and volumes are picking up slowly. So of course, this is a product which is low volume, low pack size, going to food customer. We can’t expect a large tanker load, but it is picking up very well. So it will pick up. Of course, it will take a little time to gear up in the customer segments to catch up the volume, but very well done in terms of facility being audited by customers. So we are well placed. It’s doing well.

Dhruv Muchhal — HDFC Mutual Fund — Analyst

Sure, sir. Thank you so much, and all the best. Thanks, sir.

Rajesh Srivastava — Chief Executive Officer and Managing Director

Thank you.

Operator

Thank you. The next question is from the line of Rahul Veera from Abakkus Asset Manager. Please go ahead.

Rahul Veera — Abakkus Asset Manager — Analyst

Hi, sir. Good evening.

Rajesh Srivastava — Chief Executive Officer and Managing Director

Good evening.

Rahul Veera — Abakkus Asset Manager — Analyst

Sir, the plants that are coming online and the opex is where the demand for the segment is only going to improve in H2. What is the probability for the overall consol EBITDA to degrow next year?

Rajesh Srivastava — Chief Executive Officer and Managing Director

Next year means FY ’25?

Rahul Veera — Abakkus Asset Manager — Analyst

Yeah, ’23 over ’24.

Shyam S. Bhartia — Chairman

’24 over ’23?

Rahul Veera — Abakkus Asset Manager — Analyst

Yeah.

Shyam S. Bhartia — Chairman

So far, we are confident that the EBITDA of 2024 will be better than ’23.

Rahul Veera — Abakkus Asset Manager — Analyst

Okay. And what is the operating cost coming from on the new plant, sir, at the opex level? And if they are working at 10%, 15% utilization, given the demand scenario. I believe there will be a large cost that will come in the opex, sir.

Rajesh Srivastava — Chief Executive Officer and Managing Director

Not all plants are 10% to 15% operating. Most of the plants we start with full operation. Of course, during the year, the volumes will start picking up. But once you start the plant, you have to start full plant. We can’t operate [Speech Overlap].

Shyam S. Bhartia — Chairman

I can only tell you that our cGMP facility and also Non-cGMP facility, from H2, it will be 100% utilized. 100% means, about 85% will be utilized.

Rahul Veera — Abakkus Asset Manager — Analyst

Okay. And given the current prices of the Specialty Chemicals, even at 85%, will it break even?

Shyam S. Bhartia — Chairman

No, no, cGMP, they will be — this will be a CDMO. cGMP is mostly pharma. So it’s not agro basically.

Rahul Veera — Abakkus Asset Manager — Analyst

Okay, okay. And for pharma, the demand is still maintained?

Rajesh Srivastava — Chief Executive Officer and Managing Director

Yes, it’s still there.

Shyam S. Bhartia — Chairman

So cGMP is pharma. And non-cGMP is also agro and pharma — to the extent of pharma also. But demand for Agrochemicals from H2 is going to be normalized. So from H2, all our plants are going to be used by at least 85% because that is why we put our plants because there is a demand for our products. And we are confident that we will use 85% of the capacity.

Rahul Veera — Abakkus Asset Manager — Analyst

So I’m just trying to understand, like if we take the sequential EBITDA degrowth from Q2 to — Q3 to Q4, it’s almost been like a INR50 crore degrowth.

Rajesh Srivastava — Chief Executive Officer and Managing Director

But that sequential EBITDA degrowth is not only Specialty Chemical. If you see nutraceutical, we have significantly dropped in EBITDA. That is the major issue. That is improving now. So you will see overall performance going to be better.

Rahul Veera — Abakkus Asset Manager — Analyst

Right. But sir, overall, if you see continue the same argument again, given the current prices of Pyridines or even the opex that will come from the new plants, EBITDA, in my view, even if there’s an offsetting factor of power savings or offsetting factor of Niacinamide improvement on the Nutritional segment, there should be an EBITDA degrowth.

Shyam S. Bhartia — Chairman

No, see, our performance on Specialty Chemicals, from H2, it is going to be totally normal. Plus, the new plants will add to the additional sales that will give us leverage rather than deleverage. So — firstly. Secondly, on Chemical Intermediates, our — because of our new Acetic Anhydride plant starting, our overall sales will be better. Now, on Niacinamide, we have given — we have already told you that we expect the situation in Q1 has improved substantially, that Q2 we expect to be better. And going forward, we expect the situation to be normal as we use to operate normally. Last year was a very unusual situation. So basically, in H2, if you see, it was very, very low. H1 year was also reasonably okay in Niacinamide.

Rahul Veera — Abakkus Asset Manager — Analyst

Sure. Sir, just one last question from my end. I wanted to understand what will be the incremental depreciation or interest costs that will come for FY ’24?

Prakash C. Bisht — President and Chief Financial Officer

So it will be in the range of INR20 crores to INR25 crores on depreciation.

Rahul Veera — Abakkus Asset Manager — Analyst

Okay.

Prakash C. Bisht — President and Chief Financial Officer

And about — interest will be in the range of INR15 crores to INR20 crores.

Rahul Veera — Abakkus Asset Manager — Analyst

Incremental?

Prakash C. Bisht — President and Chief Financial Officer

Yes.

Rahul Veera — Abakkus Asset Manager — Analyst

Okay. Okay, fair point, sir. Thank you. Thank you.

Operator

Thank you. The next question is from the line of Tarang Agrawal from Old Bridge Capital. Please go ahead.

Tarang Agrawal — Old Bridge Capital — Analyst

Hi, good evening. A couple of questions from me. If I were to look at your Nutrition business, what will be the indicator that you think help this business move up? I mean, last one year, we’ve seen a significant compression in this business, because of market dynamics. So are you — what are you seeing now, which is leading you to the believe that Q1 situation is improved and it should consecutively move up?

Shyam S. Bhartia — Chairman

So — see, last year, there was two factors. One is the Avian flu in Europe and the Avian flu in US. So if you see, this Avian flu reduced the total requirement of the [Indecipherable] and supplier was [Indecipherable]. So the prices also went down. But now the Avian flu effect is gone, and now the situation is normal. And we strongly believe and we have seen in the market today both the volumes and the price going up, what we are telling you what we are seeing in this quarter. So we expect the H2 performance is likely to be good in Niacinamide both on volumes and price. What I am — we are telling you that we are seeing that is not that we expect.

Tarang Agrawal — Old Bridge Capital — Analyst

Sure, sure.

Shyam S. Bhartia — Chairman

We have stated that.

Tarang Agrawal — Old Bridge Capital — Analyst

Got it. And sir, given all this market has been under pressure last year. Are there significant inventories that are there?

Rajesh Srivastava — Chief Executive Officer and Managing Director

No, so as Mr. Bhartia said that, in the beginning, it was the impact of flu for two, three quarters, but then last one-and-a-half quarters, we have been facing the liquidation of inventory. So therefore, the prices were under pressure. But now the inventory is almost gone, it’s normalized, and then only we are seeing the market situation coming up. So there is no inventory in the pipeline.

Tarang Agrawal — Old Bridge Capital — Analyst

Got it. Sir, second question is basically, if I look at your Specialty Chemicals and Chemical Intermediates business, the indexation of both these businesses to pharma is reducing. I mean, percentage of revenues coming from pharma for both Spec Chem and Chemical Intermediates, that’s successively gone down. So I understand, Agrochemicals grown. But is there any specific development in the pharma segment that you all are seeing, which is —

Rajesh Srivastava — Chief Executive Officer and Managing Director

So let me tell you both. First, we start with Chemical Intermediate. Chemical Intermediate, pharma, mainly is paracetamol and ibuprofen. In that market, we have a very strong market share. And whatever market growth is happening, we are also growing. Now, in Chemical Intermediates business, in Acetic Anhydride, there are multiple uses where the growths are happening. Like, for example, in — Agrochemical is only one part of it. There are other products, which are also growing. So obviously, where the market will grow, we have — we will also grow. So there is nothing wrong happening in pharma. It is just because the other end uses are growing better. Obviously, our volumes will also go better.

And the same is happening in Specialty Chemical. There is not a bad or something going down. In fact, in pharma, we are adding capacity. As you know, we have added GMP, we are going to add capacity in GMP. So as much we will add capacity in pharma, we will have the growth in revenue from pharma also. And at the same time, there is a growth happening in Agro also. So there is no fundamental change, which is happening. If the demand is going a little higher in Agro, we will do there equally better.

Operator

Thank you. We’ll take the last question for today, which is from the line of Siddharth Gadekar from Equirus Capital. Please go ahead.

Siddharth Gadekar — Equirus Capital — Analyst

Yeah. Sir, just on the food grade Acetic Acid. So how do we look at the utilization for FY ’24 and FY ’25?

Rajesh Srivastava — Chief Executive Officer and Managing Director

FY ’24, we see that we will be in a position to utilize approximately 50% of the plant.

Siddharth Gadekar — Equirus Capital — Analyst

Sir, secondly, in our Specialty Chemical again, now what we are looking in the market is that this quarter will be a peak destocking quarter where even domestic Agrochemical companies have lowered their production. So is it fair to assume that the revenue contribution amongst Specialty Chemicals in first quarter will be lower versus last year or how should we look at it? So even our profitability will be lower in the first quarter?

Shyam S. Bhartia — Chairman

See, we expect the demand to pick up slowly and will get normal by the H2. So the total — it’s not that total demand is not there. Total demand is less than the normal demand that we were getting from our customers — really international customers. So I think we — what we hear from them, what we hear from our customers, that demand will, of course, gradually go up, but ultimately, it become normal in H2.

Siddharth Gadekar — Equirus Capital — Analyst

So just specifically from the next quarter, given that we are almost 45 days into the first quarter, so we would be having a fair sense of how things are because what I understand is that the entire margin deterioration or the volume decline that has happened would have happened after 15th or 20th Feb, that is where we have seen that impact in the global market. So now given that we are 45 days into the quarter, is it fair to assume that even first quarter would be on similar lines or it could be better than this or worse than this?

Rajesh Srivastava — Chief Executive Officer and Managing Director

Yeah, first quarter also is in the similar lines so far. But we have to — we still have half of the quarter.

Siddharth Gadekar — Equirus Capital — Analyst

Okay, sir.

Rajesh Srivastava — Chief Executive Officer and Managing Director

And so far, we are seeing the same situation, yes.

Siddharth Gadekar — Equirus Capital — Analyst

Okay, thank you.

Operator

Thank you. As this was the last question for today, I would now like to hand the conference over to Mr. Pavleen Taneja for closing comments.

Pavleen Singh Taneja — Director, Investor Relations

We thank you all for joining this call today. We hope we have been able to answer your queries. For further clarification, I would request you to contact me. And thank you once again for your interest in Jubilant Ingrevia Limited. [Operator Closing Remarks]