Privi Speciality Chemicals Ltd (NSE: PRIVISCL) Q3 2025 Earnings Call dated Feb. 13, 2025
Corporate Participants:
Shrikant Sangani — Group Account Head from Strategic Growth Advisors Private Limited
Mahesh P Babani — Chairman & Managing Director
Narayan Iyer — Chief Financial Officer
Unidentified Speaker
Analysts:
Sudhir Bheda — Analyst
Manan Madlani — Analyst
Nikhil Porwal — Analyst
Archit Joshi — Analyst
Rohit Nagraj — Analyst
Anshika Gupta — Analyst
Rajil jain — Analyst
Vinay Nagori — Analyst
Presentation:
Operator
Ladies and gentlemen, good day, and welcome to the Q3 and Nine Months FY ’25 Conference Call of Pravi Specialty Chemicals Limited. This conference may contain forward-looking statements about the company, which are based on the beliefs, opinions and expectations of the company as on-date of this call. These statements are not guarantees of future performance and involve risks and uncertainties that are difficult to predict . 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 Srikant Sangani, the Group Account Head from Strategic Growth Advisors Private Limited. Thank you, and over to you, sir.
Shrikant Sangani — Group Account Head from Strategic Growth Advisors Private Limited
Thank you,. Good evening, everyone. Thank you for joining us on the call. It gives me immense pleasure to welcome you all on the call, backed by some good results posted by the Privi Specialty Chemicals Private Limited. On this call, we are joined by Chairman and Managing Director, Mr Mahesh Bawani; Mr R.S. Rajan, President; Mr Naran S. Ayer, Chief Financial Officer; Mr Sanjiv G. Patil, Senior Vice-President, Strategy; and our SGA team and IR Advisor. I hope that everyone was able to review our financial results and investor presentation, which were uploaded on the stock exchange and on the company’s website. The recording of the today’s earnings call and transcript will be uploaded on the company’s website under IR section. The Financial results, investor presentation, press release are also available on the website. Please note there may be forward-looking statements during the course of the call and which must be viewed in aggregate with the risk that company faces. MR. Mahesh Bawani will provide an overview on the company and post that, Mr Narand, I here and Mr Sanjay Patel will take you through recent developments and opening and financial results.
I would now like to invite Mr Mahesh Babwani, CMD, to give a quick overview of the company. Over to you, sir.
Mahesh P Babani — Chairman & Managing Director
Thank you. Thank you and good evening to everyone. Despite the global headwind, our company has emerged stronger in the current quarter and indeed throughout the financial year. We are happy to inform you that we have achieved better margins driven by higher yields and better product mix. Going-forward, we expect to continue and improve over-time cycles, which will result in higher productivity. I’m very happy to inform that our company has achieved — develop continuous processes for some key products, which will bring down the cost of production.
Our company has been working on enhancing the capacity of our flagship products with incremental capex. This is based on multiple customer inquiry for long-term tie-up for these products. Due to project works related to the capacity enhancement, we took a plant shutdown which has resulted in slightly lower revenue for Q3 as compared to Q2. As part of our business expansion strategy, we have initiated dialogue with some of our competitors to work with them as co-producers.
Our company has streamlined the manufacturing of Galaxmas, and Camphor in which significant capex was done in the past three years. I’m also happy to inform that we have in — we have significant demand to adequately take care of these product capacities. And as we have informed you, we follow a proprietary process for manufacturing panel. Based on the response received from the market and the potential of this product, we have already increased this capacity too, which will be operational during the month of February.
Our R&D continues to develop high-value products and on the recent development on one of our one new molecule, we are working on a specific building block, which will be made from a renewable foodstock. Several new products are being developed based on the renewable feedstock. In the last quarter, we announced the commissioning of a new greenfield products in partnership with to manufacture complex. We are on-track to achieve commercial production. While ensuring growth, we are fully focused on sustainability, we are pleased to report a significant improvement in our CDP project score.
Our current gold rating from, which underscores our proactive efforts in aligning with the global best practices, reducing our carbon footprint and enhancing our ESG disclosures. Our company is starving to further improve our rating in the coming year. Our company has increased its share of green power, thus making savings in cost, at the same time strengthening our commitment to green energy. In closing, I will assure that our company is on-track to deliver strong financials in coming quarters.Now I hand over this to Mr Naren for recent developments and operational and financial highlights. Over to you, Naren.
Narayan Iyer — Chief Financial Officer
Thank you, sir. Thank you,, and good evening to all shareholders, investors, potential investors and stakeholders of. The quarter gone by has reaffirmed our belief and commitment to all of you that Privi is set for good growth and poised to deliver good profit margins. So giving you a detailed operational and financial highlights on the quarter three and the nine months which have gone by, our total income stood at around INR493 crores in the quarter three, which is a growth of over 20% on a quarter-on-quarter basis compared to Q3 of ’23 ’24. EBITDA Was at INR115 crores, which is a growth of about 20%. EBITDA margin stood at around 23% for Q3 financial year ’24-’25 and we expect to maintain similar EBITDA margins going-forward in the near-future. Profit-after-tax for the quarter was at around INR44 crores as against INR29 crores achieved in Q3 of financial year ’24. Overall, the exports continues to contribute a good share of our revenue. And in this quarter, it was at 69%. A broad synopsis of the Nine-Month financials that we have reported and which is there on our website and in the stock exchanges, the overall total income stood at around INR1,493 crores, which is a growth of about 16% for the comparable period. EBITDA achieved during this period is around INR327 crores, which is a growth of about 29% as compared to the previous year, same-period. EBITDA margin stood at around 21.9% as against 19.6% achieved in last year’s nine months at the same time. And a profit-after-tax for the period was around INR121 crores as against INR63 crores achieved in the previous period. Exports in this bank contributed to about 65% and which is a very, very healthy financial number that we have posted upon. And with this, I would like to pause here and open the floor for further questions-and-answers. Over to the host and SGA to sign the Q&A. Srika, all yours.
Questions and Answers:
Shrikant Sangani
Thank you, sir. We will now begin with the question-and-answer session. Anyone who wishes to ask a question may press star and one on their 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 will wait for a moment while the question queue assembles. The first question comes from the line of Sudhir Bheda from Family Office. Please go-ahead.
Sudhir Bheda
Yeah, good afternoon, sir. And Hati, congratulations on solid strong set of numbers, sir, in the given environment. Thank you.
Mahesh P Babani
Thank you. Thank you. Really appreciate it.
Sudhir Bheda
Yeah, sir, my questions are like we have seen in Q3 that there is a good growth Y-o-Y, but slightly a subdued kind of growth or degrowth slightly Q-on-Q. But however, margin has improved a lot 150 basis-point improvement in the margin Q-on-Q. So can you throw some light on this?
Narayan Iyer
Sure. Thank you, Bedajeep. As explained during his talk, we are in the process of enhancing capacity for our flagship products. But to do that, we had taken some planned shutdowns. And as a result, the overall volumes were lower, which has resulted into lower sales and that’s the reason. But this is only a temporary thing, a planned thing. Going-forward, all these efforts for expanding capacity will give you higher revenues and higher volumes to come back.
As far as margins are concerned, as I said, we have improved the yields. We have also been making some of the process continuous, reduce the other costs and that’s how you see improved margins. Plus our other products in terms of our product mix, it is in favor of high-margin products and that is what is causing the margins to improve between the two quarters — between the quarter last year and this year.
Sudhir Bheda
Great. Thank you, sir. My second question,
Narayan Iyer
This year — this year, this particular margin also, we have some small benefit because of currency, which is what has pushed it to a level which is slightly higher than what it normally would be. So we had some favorable currency and other benefits, which is what has resulted in this slightly higher than what a normal sustainable margin would be.
Sudhir Bheda
And sir, what is the outlook for FY ’25, ’26, the kind of margin you have reported is sustainable and the growth which you have been reporting since many quarters, whether this kind of growth will continue.
Narayan Iyer
We are very bullish that we will surely be able to maintain our original track-record of minimum 20% growth for the year ’25-’26. We are confident that we’ll achieve this. Looking at the order book position, we are fairly confident we’ll achieve this
Sudhir Bheda
And margin, sustainability of margins because currency is again
Narayan Iyer
We’ll be able to maintain the margins or at least surely maintain this, if not improve this.
Sudhir Bheda
That’s a good news, sir. And you like operates in the environment of contract which you do maybe long-term or short-term contracts for raw-material as well as finished goods. So can you explain how this — you have entered into the contract for the next year and how you kind of sales which you are projecting 20%, 25% growth, seeing there your contracts, whether it is achievable or how it will work as far as raw-material and goods are concer.
Mahesh P Babani
Sure. So as we explained all along, around 70% of our business is contracted business and this is with large multinational companies, FLF companies as well as FMCG companies, they follow the calendar year. So the good news is that we have around 70% of our business, which has been already booked and which is what is giving us this confidence that we will be able to achieve our revenue numbers, what we have talked about.
So — and similarly for raw-material, we have secured raw materials and raw materials for the corresponding volumes of production, which is giving us confidence about the margins. So we are on a very good track and that’s how we see the whole year and that’s how Saab has confirmed that you will be achieving this growth.
Sudhir Bheda
And sir, lastly, now our sales to the European region is almost 35% 40% and now we are looking for the new market like Africa and also we are looking at India. So how do you see this market shaping up in the near-future?
Mahesh P Babani
Yeah. So the market within India as well as Africa, the per-capita consumption there is so low that there are huge growth opportunities in both these segments in India and other parts of Asia as well as you know, the African markets, we see significant growth there. And we see upward of 20% growth from these margins and 20% to 25% growth from Indian markets as well as African markets. So we see significant growth here and we are well-placed to operate within these regions only. S
So we also have the logistic advantage of being within one of the fastest-growing economies of the world as well as being close to Africa where we can service the demand increasing Africa as well.
Sudhir Bheda
Great. Thank you for the opportunity and all the best.
Mahesh P Babani
Thank you.
Narayan Iyer
Thank you.
Operator
Thank you so much. A reminder to all participants, you may press star and want to ask a question. Thank you. The next question comes from the line of Manan Malani from Kamakia Wealth Management. Please go-ahead.
Manan Madlani
Yeah, hi, sir, thanks for the opportunity. Sir, my first question was since we revised our orders in the month of December and January, so like what was the guidance from our customer side, what are the order book looks like? And did we — so from any customer side, do we have any price revision.
Narayan Iyer
Hi, Manan, good evening. Just now what Mr Mahesh stated that we have good healthy order booking position for the year calendar year ’25 and the customer outlook has been very positive during the course of his various meetings along with the business development team. And we are very, very bullish as far as the calendar year and the year ’25 crore 26 crores. A good healthy order booking position of 65% to 70% as we speak about. So that’s why we are quite positive and bullish that our performance in the coming few quarters is also going to be healthy.
Manan Madlani
Any price, sir?
Narayan Iyer
Yes, there is a price increase ranging from various products between about 7%, 8% to close to about 10%. It depends on product-to-product
Manan Madlani
, okay. So it will be applicable from Q4 itself.
Narayan Iyer
Yes, marginally, quite a few of the sales of Q4 will have a new prices that.
Manan Madlani
Okay. And what’s the update on the side of the business for pharma specifically?
Narayan Iyer
So we are in the process of you know, short listing and supplying samples to the pharma companies and we are trying to get there. We are completing lot of other regulatory compliances including preparation of files and all that. So it
Mahesh P Babani
Is a long-drawn process, which would be there. So FDA certification also is under progress and will take time to complete, of course. And in parallel, we have initiated dialogue with many pharma companies. So it’s an ongoing process. You have to realize that getting through the USFDA route is a very long-term process, but you know the longer you wait, the better will be the fruits.
Manan Madlani
Okay. And sir, when you say 20% growth, you mean by value growth or improved?
Narayan Iyer
Yeah, it is a revenue growth that we are talking about.
Manan Madlani
So volume growth should be around 15%
Narayan Iyer
Roughly around about that. Yes, yes
Manan Madlani
Okay and sir, last question would be any update on the QIP side?
Mahesh P Babani
So the short-term capex requirement would be met through interim accruals and debt and the balance sheet is strong enough to support the additional borrowing. One day may be planned in future based on how the requirement comes about. As you can see yourself, the profitability is quite good and so is the cash-flow. So therefore, therefore, we — for the immediate requirement, we are doing the capex based on our internal and debt and we will take a call on the fundraise through QIP at an opportune time. If need be.
Manan Madlani
Okay. Last question, are we still integrating PV fine signs in this financial year or it will take some time.
Unidentified Speaker
We will inform all stakeholders and shareholders at the appropriate time when it comes around fact. Currently, it is separate and we are only talking about PV Specialty Chemicals Limited as we
Mahesh P Babani
— yeah, this forum is for PV, so therefore, please.
Manan Madlani
Okay, fair. Thank you so much. I’ll join back-in the queue
Narayan Iyer
. Thank you.
Operator
Thank you. The next question comes from the line of Nikhil Purwal from Perpetual Capital. Please go-ahead.
Nikhil Porwal
Yeah, hi. Thank you for the opportunity and congratulations to the whole team for the continued execution — superb execution. The first question that I have is your gross profit margins are at all-time high in my opinion. I think your just breached very close to 52%. However, other expenses have inched up significantly to around 16% or in tonnage, it’s come to INR72,000 per ton. That’s a sharp increase from last year. Anything on what led to the significant increase on other expenses?
Unidentified Speaker
Yeah. So Nikhil, in this particular quarter, because of certain strikes in US in various courts and also due to uncertainty in the — in the sea voyage that was happening around, quite a few of our customers had asked us to airlift a lot of material due to which in the other expenses, you see a little bit of increase that’s predominantly a prima facy on account of the air-freight expenses that we have recovered. However, the same have been recovered from the customers and that’s why you also see that I have figure out that one-time.
And it’s a one-time in a addition to that because airfreight is not that it is going to be on a continued basis or so.
Nikhil Porwal
Okay. So I mean, there is an impact on both revenue and other expenses. So if you eliminate that the margins more or less would have been the same.
Unidentified Speaker
Perfect. Your analysis is absolutely correct.
Nikhil Porwal
Okay. Next question is also in your initial comments, I think mentioned about co-manufacturing arrangements with competitors. So anything on what is that about and what would be the quantum of that and for what products?
Mahesh P Babani
These are some extremely interesting opportunities but please mind that we have already signed an you know NDA, we cannot be talking about this information about in public. In due course of time you will of course get the good news and you know it will always be disclosed to our nearest shareholders. But at the moment, we are at very critical stage and sensitive stage. So therefore, we cannot be really discussing this. I appreciate your interest. Thank you.
Nikhil Porwal
Okay. Okay. Capacity utilization as per reported capacity in this quarter on an annualized basis or already at 93%. And now with debottlenecking exercises coming in-place, I think it will kick-in the next couple of months. How do we look at the runway beyond FY ’26, where larger capexes would be required to support growth?
Narayan Iyer
We are in the process of identifying and increasing our capacities. Apart from bottlenecking, also as mentioned in our previous call, we are looking at expanding some of our main products in the flagship products of the company course, definitely manufacturing efficiencies are also being improved on a continuous basis. So this — these along with the new product, which is being developed by the R&D is going to help Privi in this core path beyond.
Mahesh P Babani
So understand the growth is coming from various angles. And one angle is existing flagship products wherein by debottlenecking as well as by making processes continues, lot of engineering work to enhance capacities there. But beyond that, we are looking to also add new products on which our R&D has been working all along. So those new products will come into play by end of this financial year and they will start adding to the revenues. And going-forward, those products will be adding more-and-more to the revenues.
Nikhil Porwal
So for these new products, have you already created the capacity because iron of the open in your capacity was at around close to 50,000 tonnes and you all are sort of debottlenecking the CST a bit and also adding capacity to your flagship products and no idea about other products so-far.
Mahesh P Babani
So other products — other products we will be creating capacity. That’s what we said that in terms of funding this capex, we said that the internal accruals and debt would be sufficient. So new products, we will be creating capacities. And you should take the overall capacity number with lot of thought and not the pink salt, lot of thought because there are products which sell from key dollars to products we sell at $15, $75, $100 also.
So numbers may not exactly give you the entire picture, but we are getting into some high-value and specialty products going-forward. So those capacities will be created in the due course of time in this financial year itself.
Nikhil Porwal
Okay. One last question from me is, so what led to the decline in business in North-America and rest of the world in this quarter. There was a year-on-year decline. Anything on that?
Mahesh P Babani
Hi. Maybe because of additional demand from other countries, we may have serviced it, but I don’t think it’s significant loss of business has been there.
Nikhil Porwal
Okay. So it’s rather rationing of capacity because you all are running short of that.
Unidentified Speaker
So yeah, trying rightly. You analyze rightly because you know you, you it has nothing to do with by the time the new president was not in-place, so don’t worry.
Nikhil Porwal
Okay, okay, done. Thank you so much and all the best.
Mahesh P Babani
Thank you.
Operator
Thank you. A reminder to all participants, you may press star and one to ask a question. Our next question comes from the line of Archit Joshi from Nuvama Institutional Equities. Please go-ahead.
Archit Joshi
Hi, good evening, sir. Firstly, congratulations on a very strong quarter and also for winning all these consequential. I have just one question. Regarding the margins that have been improving quite significantly over the past two quarters, I recall Ayaji speaking of a margin range of somewhere between 18% 20% at the beginning of the financial year and we have now clocked a good 20% margin consistently.
I just wanted to check if there is any pricing gain for a particular product maybe. I was tracking the index, which has risen quite a bit in the last two odd quarters. So if you could also share your outlook, if there is any anything changing structurally with regards to any particular products like a musk or a pamper? And is this pricing that you’re speaking of is by any chance sustainable at all? Thank you.
Mahesh P Babani
Okay. So let’s go step-by-step. First and foremost, there is no pricing effect, okay, as we have maintained that most of our products are sold-on the annual contracts, so the prices do remain same. So there is nothing that has come from pricing effect. Largely, this is driven by two factors. First factor is the change in-product mix. Now don’t let me give you the name so that my competition as my customers wake-up. But the change In-product mix is one of the reasons why the profitability has improved and it will remain improved. The second thing is the lot of internal steps that we are taking in terms of improving our efficiencies. We have improved the yields, we have reduced the consumption of power, steel, we are making plants sweat much better than what they were. So these are the factors which have been responsible and that’s why we feel the same. The trend is secular and it will continue going-forward.
Archit Joshi
Sure, sir, I was also going to answer your question. Yes, yes. I just have another follow-up. I was also seeing a decent enough traction being the traction largely in the must and specialties or revenue segment that we published in the investor presentation. Over the last 3/4, maybe I think that number has pretty much stayed in the same band. So would this be the product mix explanation that you were speaking of?
Mahesh P Babani
Yeah, because it was product — I mean the and other specialties were on a low-base, you have to appreciate that. Individually each product has grown, but it is on a much lower base and that is why — that is why you see its share going up, you know.
Archit Joshi
Understood. So mask, I’m assuming that this will be galaxylide must and means that we probably must-have ramped-up quite well in that piece of the business.
Mahesh P Babani
Yeah, yeah. And we have not only, but few other products along with that like or another.
Archit Joshi
Sure, sir. Just one last bit if I can squeeze in. So your outlook on the camper industry, how we are placed in terms of demand and pricing both? That would be very helpful. Thank you and all the best.
Mahesh P Babani
Yeah. Thank you. So camfor, I think we continue to — I think we will realize our advantage in this year and more and it will continue to do full capacity in this financial year. So that’s how that’s how we look at. T
Operator
Hank you. A reminder to all participants, please press star N1 to ask a question. The next question comes from the line of Rohit Nagaraj from B&K Securities. Please go-ahead.
Rohit Nagraj
Thanks for the opportunity and congrats on a strong set of numbers. Sir, first question is on the that is JV. So where are we currently? We started sometimes in early October from on in terms of commercial production, in terms of acceptance of the products and ramping-up of the facility towards maybe you know the multiple set of 40 products. So where are we currently? And what is the roadmap that we are looking at from FY ’26, FY ’27 perspective?
Mahesh P Babani
Sure. So the commercial production has commenced for joint-venture, okay. For the integration, we had very senior team from to travel to Mumbai to do the. The commercial production has become. And ramp-up is on-track, but you have to realize that these are complex products and it takes its own time. So that’s where it — and it’s on-track. It’s on what we had planned, it’s on-track.
Rohit Nagraj
Sure. So we are on-track in terms of whatever commitments that we have earlier indicated in terms of revenues, potential from this particular JV?
Mahesh P Babani
Yeah, yeah.
Rohit Nagraj
Sure. Sir, second question, in terms of our individual geographies, if you can just throw some light, I mean we are obviously doing very well. But are there any factors which can be, know, which may impact the momentum going-forward, maybe it could be geopolitical issues or any other factors that can hamper the progress that we are seeing almost — I mean again substantial that we have 70% of contracted volumes or contracted business, which gives us visibility. But apart from that, the 30% which is non-contracted, whether there could be any potential issues in individual geographies. If you can just broadly give us a sense of that. Thank you.
Narayan Iyer
Yeah. Rohit, broadly, as was outlined, we are fairly confident and visible as far as the next few quarters are concerned with a good healthy order booking position that our Chairman and MD happy to mention for the year ’25. We had 70% of orders being there, balance 30% is lower and is in spot market and the Indian market. We feel the geopolitical situation may not hamper too much as we talk today in fact, and we expect the growth to be in-place.
Rohit Nagraj
Sure. This is helpful. Just last couple of clarifications. One, I missed the Nine-Month exports number. Can you just tell me that?
Narayan Iyer
Nine-Month exports is about close to 65% as I spoke about in my — in my financial letters.
Rohit Nagraj
Right, I just made that. And one last clarification in terms of the exercise that we are currently undergoing, what would be the incremental capacity that will be added to because of the deboxing,
Mahesh P Babani
So I can’t give a number because then I’m putting across my capacities, but it is significant. We won’t mention it otherwise. It is significant.
Rohit Nagraj
Sure. So that will take care of the volume growth for at least for the next one to two years, right?
Mahesh P Babani
Yes, of course. Yes, sir. Thank you.
Rohit Nagraj
Got it. Thanks a lot and all the best, sir. Thank you.
Mahesh P Babani
Thank you.
Operator
Thank you. A reminder to all participants, please press star and one to ask a question. The next question comes from the line of Banshika Gupta from JRK Stock Broking. Please go-ahead. Hi, good evening to everyone. So sir, a couple of my questions have already been addressed. But coming to the raw-material piece, I know 70% you said of your orders are confirmed, your raw materials are secured.
Anshika Gupta
Hi, good evening to everyone. So sir, a couple of my questions have already been addressed. But coming to the raw-material piece, I know 70% you said of your orders are confirmed, your raw materials are secured. So I won’t be talking about it in the near-term, but more in the medium-term or the trade tariff that is being spoken about so globally with the US and everything, do we sort of see some impact on any of our products or is that something that if there’s something we can discuss without naming the product or raw-material, but just a broad overview?
Mahesh P Babani
No. So as far as far as raw-material import is concerned, I don’t think there is any change of tariff go there. The second thing that you must also realize is that when we — when about 70% of our products are exported and to that extent, the raw materials are also imported. So the unit two where most of our manufacturing happens and other units also, we have the export benefit. So the duties don’t really to that extent matter because whatever we — for the unit two is actually an unit, so one doesn’t have to pay their duties.
And as far as export is concerned, we are not — we are not — we will not be so severely impacted by the — if at all there are any changes. Those changes would be there for I think apart from India, it could be there on other countries also. So it’s only — it’s relative. So I don’t think differentially we will be suffering against any other country. So we really don’t foresee any challenges there.
Anshika Gupta
No. I just wanted to clarify, sir, essentially, if there is something that is put under trade tariff, say we imported hypothetically from a third — from a country and then export that product to US, we can simply pass-on the cost of the tariff that has been put or something like that, that, that won’t be an issue. That is what we’re trying to conclude.
Mahesh P Babani
No, I don’t think I don’t think we can make all those conclusions now. We’ll raise the situation as it comes. But as I said, differentially there won’t be any other country which is differentially benefit as compared to what India where India is, so
Anshika Gupta
Okay. And I have one last question on the capex. I know that you spoke about we won’t be able to discuss what capex. If we can just broadly outline in terms of revenue per crore, how much capex we estimate for ’26, ’27 are going-forward the next one or two years, that would be helpful.
Narayan Iyer
Yeah. So broadly, we are looking at a capex of around close to INR250 crores to INR300 crores in the upcoming 15 to 18 months or so on tracking. So this will. So this will take care of all the debottlenecking, the capacities of increase in our flagship products and immediate new products of R&D and all that.
Mahesh P Babani
But understand one last thing. We are in a dynamic market. So whenever we see an opportunity, obviously, we will be capitalizing on that. So that you be sure.
Anshika Gupta
Yeah. Yeah. So and one last follow-up. If the fixed asset turnover on your capex is approximately 1.5, most chemical companies have done that. Is it that? Is it higher or is it lower?
Mahesh P Babani
It’s just about only. We are also like other.
Anshika Gupta
Thank you thank you, sir from my side. Thank you, sir.
Mahesh P Babani
Thank you.
Operator
Thank you. Participants you may press time one to ask a question the Next question comes from the line of Raj Jain from Crystal Capital. Please go-ahead. Raj, please go-ahead with your question and unmute yourself in case if you are muted.
Rajil jain
Can you hear me properly?
Operator
Yes. Yes.
Rajil jain
Thank you for the opportunity. Do we have — do we plan to enter any newer geographies, geographies like South Asia market or China?
Narayan Iyer
Yeah, we do sell-in these markets also.
Rajil jain
Okay. And one more is that also can you give me some colors on new products which we are planning to commence in coming quarters and RLB spending, etc.
Unidentified Speaker
So no, it will — I don’t think we would like to awaken competition or other things in terms of giving out products, but we can only say that these are the products that we are getting into are unique products and they are high-value, obviously high-margin products, but giving names is sensitive. I think you will appreciate.
Operator
Thank you. Participants you may press star and one to ask a question the next question comes from the line of Nikhil Porwal from Perpetual Capital. Please go-ahead.
Nikhil Porwal
Yeah. Thank you again. One question is around debt level end of Q3. Anything on where was the debt at Q3
Narayan Iyer
We have. We are, you know, maintaining our levels much below what we had stated and indicated to you close to so about 1,000 odd crores or so.
Nikhil Porwal
Okay. And on the working capital cycle, as you know, the company is looking at continuous process, I assume the cycle will reduce and anything on where do we see that cycle in maybe FY ’26, ’27?
Narayan Iyer
As indicated earlier by — with all the continuous sources and all expansions having come in-place, the ideal level of a working capital cycle should be around 125 to 135 days. So we maintain that.
Nikhil Porwal
Okay, okay. Thank you.
Narayan Iyer
Thank you
Operator
Thank you participants you may press time one to ask a question the next question comes from the line of Vinay Nagori from Fintegrity Wealth. Please go-ahead.
Vinay Nagori
I just wanted to understand, I joined the conference a little late. So I may have missed this, but just wanted to understand what new capexes are coming live in the Q4, so this is JV and what other products are we getting into and when will the capacity ramp-up until when we can expect a decent capacity — sorry, decent capacity utilization for that?
Unidentified Speaker
For, you’re talking about?
Vinay Nagori
Yeah. PV plus also, Neal and Extreme we are coming up.
Mahesh P Babani
Yeah, yeah. So let’s talk about the JV first. I answered that question earlier that JV has the production already — commercial production already commenced and it is on-track to achieve the numbers what we have spoken about. That’s about the JV. As far as the true product names that you mentioned about as well as Amberwood extreme. So there again, we are absolutely on-track in terms of achieving those volumes.
Capacities have been set-up and the volumes are on-track.
Vinay Nagori
So the capacities have commenced for that as well, the production has commenced. And also what are the margins for these products?
Mahesh P Babani
If I tell you margin for this will come this year. So margins are what should I say, healthy. So that’s about it. We cannot be commenting more than that. But obviously, we cannot get into a product unless we see margin there. So but for margins, we always look internal.
Vinay Nagori
So absolutely. Yeah. And sir, one more thing, just wanted to understand, so the INR250 crores, we’ve got a plan of INR250 crores capacity expansion over the next 15 to 18 months. So is this something new or because we had mentioned the plan for menthol and other products. So is that is — that is going to come or is that going to come or is this something new?
Unidentified Speaker
This is — you missed off this point also. Our Chairman and Managing Director and myselvi had addressed this, stating that these are all a basically increase in the capacities of all our flagship products, certain debottlenecking, certain improvements, better manufacturing efficiencies. So for all of these to see the growth facil basis the various customer requirement and the product look for increase in the growth, we are going ahead with the capex expansion for these.
Those new products will come in time and for which we have already applied for the EC and the permissions, etc., that will be the next phase of expansion. So this expansion that we are talking about of 3500 capex is to increase all our existing products and a few new products in front.
Vinay Nagori
So wish you all the luck. And just want to announce for the new capex, it will be from internal accruals itself or we’ll be looking at debt as well.
Unidentified Speaker
It will be a mix of internal accruals and debt.
Vinay Nagori
Okay. Thanks a lot, sir.
Unidentified Speaker
Thank you. T
Operator
Hank you. A reminder to all participants, you may press time one to ask a question. Ladies and gentlemen, as there are no further questions, I would now like to hand the conference over to Mr Srikan Sangani for the closing comments.
Shrikant Sangani
Thank you. Thank you everyone for joining us on this earnings call. We appreciate the time and showing interest in our company. Also would like to thank the management team for their precious time. In case of any queries, you can get-in touch with us or team on their email ID investors at the rate previe.co.in. We look-forward to meet you all over the next call. Thank you.
Mahesh P Babani
Thank you so much. Thank you, everyone.
Narayan Iyer
Thank you.
Mahesh P Babani
Thank you, everybody.
Operator
Thank you, gentlemen. On behalf of Privi Specialty Chemicals Limited, that concludes this conference. You may now disconnect your lines.