Pyramid Technoplast Ltd (NSE: PYRAMID) Q2 2025 Earnings Call dated Nov. 14, 2024
Corporate Participants:
Bijaykumar Agarwal — Chairman & Managing Director
Jaiprakash Agarwal — Chief Financial Officer
Unidentified Speaker
Analysts:
Dipesh Sancheti — Analyst
Saket Kapoor — Analyst
Pratik Dedhia — Analyst
Unidentified Participant
Presentation:
Operator
Hello everyone and welcome to Pyramid Technoplast Limited Earnings Call for Q2 FY’25. We have with us on the call today Mr. Bijaykumar Agarwal, Managing Director; and Mr. Jaiprakash Agarwal, Whole-time Director and Chief Financial Officer.
I must remind you that the discussion on today’s call may include certain forward-looking statements and must be therefore viewed in conjunction with the risks that the company faces. I would now like to hand over the call to the management, post which we’ll open the floor for questions. Thank you, and over to you, sir.
Bijaykumar Agarwal — Chairman & Managing Director
Hello friends, a very good afternoon, everybody, and thanks for joining us. So I know the result is not what is expected. But in spite of our volume increase, the top line remains flat. We’ll come down to it later on. First, let me run down on what we have achieved, what we have done, and what we are planning to do. So let me have a — share the progress made in Q2.
As we continue to focus on growth, innovation, and operational excellence, our efforts are aligned with our long-term vision and I will walk you through the key developments and financial performance.
So now overall, the HDPE drum segment contributed around 47% of the total revenue followed by IBC segment at 33% and MS Drum saw an increase in its contribution reaching 12%, while other operating income accounted for 7% of the total revenue. Our H1 revenue stood at INR267 crores with an 8.5% margin and our balance sheet remains healthy. Despite a dynamic market environment, we have successfully navigated and are on track to meet our growth targets.
Let me run you through all the initiatives and segment-wise what we are doing. So MS Drum. This segment has truly outperformed with an impressive 44% growth in volume year-on-year, leading to a 45% increase in revenue for quarter two FY’25. This strong performance underscores the effectiveness of our capacity expansion strategy, which has grown from 30,000 to 50,000. We remain committed to scaling our operations further with plans to boost MS Drum capacity to 90,000 units per month.
By quarter three [Foreign Speech]. We can’t hear you. Let me just run down through it and then we’ll have a discussion. Is that fine? So additionally we are preparing to establish another unit that is unit 8 in Wada where we’ll start with the production process. For HDPE drums, while we are operating at near-full capacity — full of optimum capacity and achieved a growth of 4% year-on-year volumes during quarter two FY’25. And good news is that we have completed the construction of — extension of Unit-7, therein we will add polymer production and that should start from next month. So polymer production at Unit-7 is set to commence by next — from next month as I said, the additional capacity will be added at Unit 8 in Wada. And IBC segment saw a growth of 7% in terms of volume, but it was somewhat impacted by pricing pressure due to fluctuating raw-material cost and some competition. The IBC production at Unit 7 is operating at more than 50% and as I mentioned earlier, we will want to [Technical Issue]. So now — so the key part of this strategy is our ongoing expansion by the — at Unit 6, Unit 7 and Unit 8, which will result in 30% increase our increase in our total capacity by the end of FY’26.
To give a clear picture of our expansion plan, we will achieve the following expansions at Unit-6 and Unit-7 in Baruch and eight in Maharashtra as the HDPE drums will increase by 25% to around 32,530 metric tons per annum, IBC capacity will increase by 25%, 29% to 540,000 units and MS Drum capacity will increase by 55% to 16,720 metric tons. We are focused on operational efficiencies and are taking specific steps towards margin expansion also. We have revised the capex budget for the current financial year to INR90 crores, which will include a INR50 crore for captive solar plant. We have already incurred INR34 crores in H1 FY’25. For FY’26, we have allocated INR20 crores to INR30 crores for expansion at Unit 6, 7, and 8. We are shortly commencing construction of our first recycling plant also near — which is located in Baruch, which is expected to be completed by May 2025, which will again give us an edge over others and plus it will help in improving our margins. This will entail an investment of around INR8 crores to INR10 crores and will allow us to recycle 10,000 tonnes of plastic annually, reducing our dependence on virgin material. This project is expected to have a payback period of around 2.5 to 3 years.
Raw material costs currently constitute around 80% of our overall expenses and this will largely reduce our dependency, thereby making margins more sustainable and providing additional revenue through sale of excess material. And for cost optimization through renewable energy, we are also happy to share that we are investing in green energy, which is progressing well. Our 15.25 megawatt solar plant set to give — set to be live by around Feb or March in 2025 is expected to reduce our annual power cost by approximately INR8 crores to INR10 crores. Not only this, our margins will improve, but it also underscore our commitment towards sustainability.
So as we drive these expansions and innovations, our focus remains on building a future that is both profitable and sustainable to grow — to invest in backward and invest in our forward expansion. With our strategies and progress, we are confident in our ability to scale operations, integrate sustainability, and expand capacity.
We are on track to meet our goals and deliver last — lasting value to our stakeholders. Now I’ll welcome you all with your all good questions. Let us answer all your questions now. Thanks to your team.
Questions and Answers:
Operator
Thank you, sir. [Operator Instructions] We have the first question from Mr. Dipesh Sancheti. Please go ahead, sir.
Dipesh Sancheti
Good afternoon, sir. Can you hear me here?
Bijaykumar Agarwal
Yeah.
Dipesh Sancheti
[Foreign Speech]
Bijaykumar Agarwal
[Foreign Speech]
Dipesh Sancheti
You were going to mention about what happened this quarter. That is what we all are I think waiting for, so we want to hear it from you first, then I can ask you other questions.
Bijaykumar Agarwal
So majorly, see, volume-wise we have already — we have grown, but the pricing will remain flat because there was — we saw a little — some fall in the selling prices also. And at the same time, we wanted to capture the market share. This is our — the time here to capture the market share furthermore, so we have been acquiring customers, new customers have been acquired on board. So there was few prices corrections we had seen.
Dipesh Sancheti
So this was basically because of the pricing pressure.
Jaiprakash Agarwal
[Foreign Speech] Our products only, but [Foreign Speech] was a one-time cost,[Foreign Speech] your products [Foreign Speech] quarter give your production capacity, [Foreign Speech]. This is not. Yeah. I would say, I would say acquiring cost. So once the customer is onboard, so you can realize very. [Foreign Speech] sale will be selling to survive here many customer be able to IBC will.
Dipesh Sancheti
Sale [Foreign Speech] be approximately flat, but there hasn’t been very —
Bijaykumar Agarwal
[Foreign Speech]
Dipesh Sancheti
[Foreign Speech]
Bijaykumar Agarwal
[Foreign Speech]
Dipesh Sancheti
Okay.
Bijaykumar Agarwal
The new Polymer Drum capacity has now we have installed the capacity. [Foreign Speech] we are starting with the expansion of Polymer Drum business where we are setting up one big machine — two machines right now. And coming months we have a spare capacity available. So we’ll keep on adding Polymer Drum business there.
Dipesh Sancheti
Okay. So when should we expect this because on slide 2 may [Foreign Speech], when is your capacity and how much by how much it is increasing? Slide 7, sorry, page number 7. So HDPE drums and all this by FY’26 [Foreign Speech] capacity, 55%, 29%, and 25%?
Bijaykumar Agarwal
Yeah. First will be completed. So construction-wise, we are on track. So we’ll keep on adding machines. The first phase investment will be done and it will start reflecting in FY’26.
Dipesh Sancheti
Okay. So even the commercial — by capacity increase, even the commencement will also happen, right?
Bijaykumar Agarwal
Exactly. Correct.
Dipesh Sancheti
Okay. [Foreign Speech]
Bijaykumar Agarwal
[Foreign Speech]
Dipesh Sancheti
Sorry, sir, [Foreign Speech].
Bijaykumar Agarwal
[Foreign Speech]
Dipesh Sancheti
Okay. [Foreign Speech]. What is the order book right now?
Bijaykumar Agarwal
[Foreign Speech]
Jaiprakash Agarwal
We have a healthy order book. So once we onboard a customer, customer remains with us for a long, long-time. So it doesn’t go. So it is an initial cost to acquire a customer. But once the customers are onboard, it is a recurring business. This is how we progress.
Dipesh Sancheti
So all this capacity will be used for existing customers only, right?
Bijaykumar Agarwal
[Foreign Speech] And this quarter we see a lot of coming up with some chemical industry. [Foreign Speech] In fact, we have started onboarding Maharashtra customer now onwards so that once our units start, we’ll just transfer the customer from our supply the customer from Wada unit not from Gujarat unit. [Foreign Speech].
Dipesh Sancheti
Okay, so existing factories, [Foreign Speech] just now directly acquired, the cost of putting a factory and instead of the cost of acquiring a factory, but the better [Foreign Speech].
Bijaykumar Agarwal
[Foreign Speech].
Dipesh Sancheti
Okay. And Jai, you mentioned something about virgin plastic. I mean you’re not — you are not going to use virgin plastic, you have to put. If you can just specify more and will that happen for both the plants?
Jaiprakash Agarwal
Yes, yes, it will happen. So what is — so now new thing is coming up that you will start using recycled material. So recycle what we are planning to do is we will procure HDPE waste from the market, we will clean it, we will convert that into HDPE and start producing material with that. So we’ll add a new segment in the customer base also, plus we can use that material in our existing system also and plus we can sell the spare capacity of HDPE, the chips manage the material that we manufacture, we can sell it outside out. So this is just a beginning.
Bijaykumar Agarwal
[Foreign Speech].
Jaiprakash Agarwal
This is just a beginning. And once we have brought a control of all systems, then this market is very big. I can vouch for it.
Dipesh Sancheti
So just transfer.
Operator
Can you join back in the —
Dipesh Sancheti
Sure. I’ll join in the queue. All the best, sir. I’ll join in the queue.
Operator
Thank you. We have the next question from Mr. Saket Kapoor. Sir, please go ahead.
Saket Kapoor
And thank you, sir. [Foreign Speech]
Bijaykumar Agarwal
[Foreign Speech].
Jaiprakash Agarwal
So to acquire customer, we just gave a good benefit off of it. So we have onboarded them. Now we can recover going forward in quarter-on-quarter basis, we can come to the realistic.
Bijaykumar Agarwal
[Foreign Speech]
Saket Kapoor
[Foreign Speech]
Bijaykumar Agarwal
[Foreign Speech]
Saket Kapoor
[Foreign Speech]
Bijaykumar Agarwal
HDPE Drum [Foreign Speech]
Saket Kapoor
[Foreign Speech]
Jaiprakash Agarwal
We have our own ERP system. So it basically has combined with all the units, we get all the live updates, real-time updates. Whenever we want to see, we can see everything it has been integrated with all the process like just say sale of product [Foreign Speech] up from and then we keep on doing a physical verification to see the effectiveness of the system. This is how we are going to and every system is integrated with future.
Bijaykumar Agarwal
[Foreign Speech]
Saket Kapoor
[Foreign Speech].
Jaiprakash Agarwal
Going forward, we have taken a note and it is a very good note that you have given us. So we will keep on reducing this time gap, which has increased. So in coming months, you will see that results will be much faster than what has come right now.
Saket Kapoor
[Foreign Speech] Thank you.
Jaiprakash Agarwal
Thank you.
Operator
We have the next question from Mr. Pratik Dedhia. Please go-ahead, sir.,
Pratik Dedhia
[Foreign Speech] purchase cost price INR94 or selling price, [Foreign Speech]
Bijaykumar Agarwal
[Foreign Speech] [Foreign Speech]
Pratik Dedhia
[Foreign Speech].
Bijaykumar Agarwal
[Foreign Speech]
Pratik Dedhia
[Foreign Speech]
Bijaykumar Agarwal
Lastly.
Pratik Dedhia
Okay. [Foreign Speech]
Bijaykumar Agarwal
IBC capacity [Foreign Speech] 40% 50% [Foreign Speech] INR67 crores [Foreign Speech]
Jaiprakash Agarwal
Next year, we should be installing news. This is what our traction and we have already ordered and it will come on time and by that time — by the time demand will come, we will be ready with the in Gujarat.
Pratik Dedhia
Yeah. Okay, got it. And Jai, customers, [Foreign Speech]. Clearly KEE, a one-time discounter or [Foreign Speech].
Bijaykumar Agarwal
[Foreign Speech]
Pratik Dedhia
Next quarter [Foreign Speech].
Bijaykumar Agarwal
[Foreign Speech]Okay, [Foreign Speech]. Thank you.
Operator
Thank you. We have the next question from Mr. Path Kotak. Please go ahead, Path.
Unidentified Participant
Hi, Bijaykumar. Hi, Jai. Sir, just want to understand like business model you’ve mentioned many times in the past from a cost-plus basis per [Foreign Speech] product, right? So ideally [Foreign Speech] margin have you maintain. So [Foreign Speech] quarter say margin each other.
Bijaykumar Agarwal
IBC [Foreign Speech] profit coming back again. [Foreign Speech] MS Drum capacity, [Foreign Speech] IBC [Foreign Speech].
Unidentified Participant
And Jai, yes, sir, my competitor mentioned [Foreign Speech] I’m sure it’s some new guy who’s put up a capacity, right? How serious is this competition because like the ROCs that we are making is absolutely amazing. So the other time [Foreign Speech].
Jaiprakash Agarwal
[Foreign Speech].
Unidentified Participant
Yes, sir. Perfect. I think just wanted to take clarification. Wish you luck for the coming quarters. Thanks.
Operator
Thank you., we have the next question from Mr. Bagwat. Please go ahead, sir,
Unidentified Participant
Okay,, sir, thanks for the opportunity. May a question sir., revenue guidance INR600 crore for financial year ’25. So how much guidance could to achieve next two quarters may for financial year ’25?
Jaiprakash Agarwal
I think we have the full-year to [Foreign Speech] INR570 crores INR575 crores it. Are as Polymer drum, the India expansion of [Foreign Speech] complete [Foreign Speech] next month onwards, we are coming up with commercial products.
So from there, we will start getting additional volumes from Polymer drums., we still have a spell capacity to onboard capacity expansion [Foreign Speech]. So we think that there will be a next six months will be very good for us.
Bijaykumar Agarwal
[Foreign Speech] INR50 crore-plus. [Foreign Speech].
Unidentified Participant
Okay, sir. And sir, your second question from capex of [Foreign Speech] next month [Foreign Speech] commission [Foreign Speech]. So like we can utilize the capacity by or immediately we can utilize the full capacity.
Bijaykumar Agarwal
The immediate capacity is total new or does whether it would be capacity or?
Unidentified Participant
Okay, sir. Then sir, of long-term guidance with INR1,000 crore that by FY27, are we hopeful of achieving of that?
Jaiprakash Agarwal
Also say INR1,000 crore t[Foreign Speech].
Unidentified Participant
Okay. [Foreign Speech].Okay. [Foreign Speech].
Bijaykumar Agarwal
But at the margin, [Foreign Speech] solar plants.
Unidentified Participant
Okay. Solar Plants [Foreign Speech]. So financial year ’25 [Foreign Speech].
Bijaykumar Agarwal
[Foreign Speech]
Unidentified Participant
Okay. And going ahead, sir, like 10% to 11% [Foreign Speech] sector margin, right?
Bijaykumar Agarwal
[Foreign Speech]
Unidentified Participant
Okay. Sir, may question after, actually from I based portfolio management company here. I’m actually business for a better understanding. Yeah, opportunity here [Foreign Speech] manufacturing units visit [Foreign Speech]?
Unidentified Speaker
[Foreign Speech]
Unidentified Participant
Okay.
Unidentified Speaker
[Foreign Speech]
Unidentified Participant
Okay. Thank you so much, sir.
Operator
[Operator Instructions] Have the next question from Mr. Priyang Parik. Please go-ahead.
Unidentified Participant
Thank you, [Phonetic], for the opportunity. Sir, just wanted to understand on per unit EBITDA for all three segments.
Unidentified Speaker
So you can say four Polymer Drums per ton. But unit-wise only when I have product-wise [Foreign Speech]
Unidentified Participant
[Foreign Speech] product-wise so Polymer Drum per tonne, MS IBC [Foreign Speech] per unit.
Unidentified Speaker
You have to per kg [Foreign Speech].
Unidentified Participant
Per ton per kg anything
Unidentified Speaker
[Foreign Speech] Okay MS Drums may. MS Drum is 57 56 or INR85K selling price.
Unidentified Participant
29 car, okay. And IBC may.
Unidentified Speaker
IBC are coasting restaurant. Those are.
Unidentified Participant
Okay. And sir, historically [Foreign Speech] is this increasing, decreasing how it is.
Unidentified Speaker
[Foreign Speech] manufacturer for 45,000 customers who done any.
Unidentified Participant
Understood. So [Foreign Speech] historically behind [Foreign Speech] minimum savings.
Unidentified Speaker
[Foreign Speech].
Unidentified Participant
Okay, understood, understood
Unidentified Speaker
[Foreign Speech]
Unidentified Participant
Okay. So, sir, next quarter onwards, if possible up per segment EBITDA if that can be given that would be very helpful. And because one of our competitor gives segment-wise EBITDA.
Unidentified Speaker
[Foreign Speech]
Unidentified Participant
Okay. Yeah. Thank you. That’s it from my side.
Operator
Thank you. Participants who wish to ask a question.
Unidentified Participant
Hello?
Operator
Yeah, Mr [Phonetic], go ahead.
Unidentified Participant
Yeah, Sir, [Foreign Speech] CapEx, [Foreign Speech] outlined KI. So I think so capital work-in-progress INR31 crores closing balance. So how much sir have we spent and where we have spent and H2 mean or currently.
Unidentified Speaker
[Foreign Speech]
Unidentified Participant
[Foreign Speech]
Unidentified Speaker
Well, look at INR35 crores expense also guy INRR55 crores.
Unidentified Participant
Sir, solar plant Lagara, yeah, [Foreign Speech] capacity care is a payback [Foreign Speech].
Unidentified Speaker
[Foreign Speech] Okay, [Foreign Speech] language 60%.
Unidentified Participant
60%. Yeah. Okay, sir, yes, but we have done — we are looking for new customers in the chemical industry or we have onboarded them. So can you give some more color of which segment and what kind of potential they offer going ahead? Can you please come closer to the mind, sir.
Jaiprakash Agarwal
Yeah. So majorly the customer base is chemical segment. So in this quarter only, we see a lot of traction coming up from chemical. Prices have improved for the chemical industry. Demand is coming for them from Europe and US so that is why we have been onboarding customers.
The new customers from also we have onboarded, we have already — we have already started supplying from our Gujarat units. So as soon as the Mahawar Maharashtra unit will commence, we will shift all our Maharashtra customers from that will again improve our margins, plus we will have a spare capacity to win in Gujarat.
So that Gujarat industry will fulfill there. So this is the idea right now. So that we — once the Vada yield start, we will have a customer base from day one. We will not end up wasting no time with that.
Unidentified Participant
[Foreign Speech] H2, EA broader number-one seasonality of factor we apply H2 may better offtake.[Foreign Speech].
Unidentified Speaker
Future goals like in [Foreign Speech] go ahead. Seasonal business or other seasonal business. Okay. So this is [Phonetic]Anklan at which is after [Foreign Speech], BMO sir, a suggestion that submission opening remarks to JSR there at properly encrypt presentation to Kapi or Sir Hamlo Joom.
Zoomout to be conduct.[Foreign Speech]
Unidentified Participant
Yeah, sir. It may be signal disconnect for there _ presentation and all the for us to be the asset.
Unidentified Speaker
[Foreign Speech]
Unidentified Participant
Okay.. Or sir, visit Karag, Jasa Madam, update [Foreign Speech] to participate is that all better again. Sir, sir. Sir Agar Amlok, Do sir set here. I guess [Foreign Speech] baking two development capex oga or plant we is the both the locational [Foreign Speech] recycling, we are recycling the plant we say it was just says that this business we are getting into it. So adding a new vertical in our business and this recycling business is less. It can be — right now we are just getting into SGP. We can go into numbers of PPE, polyethylene, many kind of recipe and various kind of grades available, which can be explored. Yeah. So we are on-track with development with future expansion also product development also and adding new verticals.
Jaiprakash Agarwal
So we have been exploring all the opportunities and soon you will get so we are not looking for a small quarter-to-quarter. We are setting about long-term and many, many decades to do. This is the idea behind what we are doing right now.
Unidentified Participant
And sir, last point is on the capex major Apne unit 6, 7, 8 or 9 [Foreign Speech]. Good, could I explain a [Foreign Speech] say care revenue per drum. After presentation, I page number, her unit [Foreign Speech] my capex to the [Foreign Speech] this is what I explained [Foreign Speech] exactly, especially unit 6, 7 K civil work for adding one-line each of 200 liters. So exactly some of the channel.
Unidentified Speaker
150 liter have machine 8% revenue. We have 20% of machine like I you 20% of revenue scan the 5 times overall capacity. Total revenue, half your revenue is this figure for the DIY 40% capacity per to 30% [Foreign Speech] 3 times over 8 because the. So three times this is [Foreign Speech] VA plan.
Unidentified Participant
Sir, [Foreign Speech] market-share product may. [Foreign Speech] organized play, keep an unorganized or [Foreign Speech].
Unidentified Speaker
[Foreign Speech] percent market-share lately. HDPE may be executive figure 20% market share. Maybe 30% 35% cash cost among the exact figure going to[Foreign Speech].
Unidentified Participant
Okay, My sSeel Drum join — MS Drum is same CG sir.
Bijaykumar Agarwal
My Steel. MS Drum will be doing.
Unidentified Participant
Okay, sir, [Foreign Speech].
Unidentified Speaker
Direct competition.Direct competition. [Foreign Speech] capacity can sir okay market-share or volumeterm.There must be around four or 5,000 tons of MS Drum both capacity, both as business.
Jaiprakash Agarwal
They are the pioneers of this industry. We are catching up. We have our own share of market share, they have their own market share. So we have a healthy relationship. It’s a competition and also healthy relationship. We are getting the share of the market. This is what idea is.
Unidentified Participant
I join the Queue, sir, [Foreign Speech].
Operator
[Operator Instructions] We have a follow-up question from Mr Dipesh. Please go-ahead.
Unidentified Participant
Firstly, thank you for joining us. I mean [Foreign Speech]. So thank you,. Sir, was there any risk of inventory loss because generally prices niche [Foreign Speech].
Unidentified Speaker
Inventory lossenings.
Unidentified Participant
Inventory lossing.
Unidentified Speaker
[Foreign Speech] of many customers is long door care customer care. The Maharashtra competition [Foreign Speech], they are transport [Foreign Speech]. So many also customers [Foreign Speech], Maharashtra, Mahara plant [Foreign Speech], whose customer provision developed customer pricing ahead.
Regular customer come over that what should be ring.
Unidentified Participant
In general — not business case out, because we just say raw-material prices [Foreign Speech] fluctuate. I mean what the conversion — general conversion price INR20 INR25 — sorry, INR25 plus crores. Man, is a raw material. So we are already booking the price with the customer
Unidentified Speaker
[Foreign Speech].
Unidentified Participant
Okay. Great. Or sir, general [Foreign Speech] convergence charges, INR25 budding it.
Unidentified Speaker
[Foreign Speech] customer for be transporter will like a income. We can their own chemistric right.
Unidentified Participant
[Foreign Speech] So Maharashtra plant here in-plant so we are able to.
Unidentified Speaker
The Maharashtra plant, Maharashtra plan Gujarat [Foreign Speech] or.
Unidentified Participant
Silva Same. Right.
Unidentified Speaker
Maharashtra is coming up there.
Unidentified Participant
Okay. So we are — we will be able to cover the entire of Maharashtra and Gujarat, right or are we able to even go to Rajasthan.
Unidentified Speaker
[Foreign Speech] So main customer name, export, SME export with Japan export we here because freight cost also is a very-high proportion, right? We feel about a market up to market. Freight cost both are there.
Unidentified Participant
Okay. So the Augly [Foreign Speech], some expect Rajasthan [Foreign Speech] or other states may.
Unidentified Speaker
Shika or [Foreign Speech].
Unidentified Participant
Mainly manufacturing have or chemical industries have a higher of the concentration of cluster of margins. Right. And after this PCR, especially that post-consumer recycle that rule which has come. So Maharashtra as well as Gujarat, [Foreign Speech] recycled plants are Jaga.
Unidentified Speaker
Recycled, Central. Paham Gujarat, Maharashti, actually start with EPR.
Unidentified Participant
Okay. Do see care capacity okay, EPR?
Unidentified Speaker
Capacity or maybe small like I had this is very good use but I start to make machines in 500 per hour machines okay. No, that place is already acquired. There is a standalone new product we have purchased, construction work has already started and it is scheduled to commence from May-June 2026, FY25.
Unidentified Participant
Great, great. All the very best, sir. And we are long-term investors. So definitely we’ll stick with you to all things. And we are hoping that we’ll get that INR900 crores to INR1,000 crores and we’ll surpass it, I’m sure. Thank you. Thank you. Thank you. All the very best.
Operator
Thank you all. [Operator Instructions] I think we have a follow-up question from Mr Sakeet. So you can go ahead after.
Unidentified Participant
I heard. See, sir, [Foreign Speech], they’re going to give you profitability curvey [Foreign Speech]. This may improvement or predictability last year. That means [Foreign Speech] business may [Foreign Speech] margin key sustainability, yeah, I’m business. [Foreign Speech] had.
Unidentified Speaker
From a minimum [Foreign Speech].
Unidentified Participant
So yeah, [Foreign Speech]
Unidentified Speaker
Number June quarter 26 car, 25 car. That solar of the solar repeat made okay. Q1 onwards in Q1.
Unidentified Participant
Okay, Q1 onwards employee incremental margin or volume [Foreign Speech] Advantage first-quarter. The IBC.
Unidentified Speaker
Hopefully by that time we will give you more good news that we are coming up with new location, keep fingers crossed.
Unidentified Participant
Okay. But sir, H2 is volume expansion from H2 maybe, [Foreign Speech] EA quarter maybe.
Unidentified Speaker
Polymer Drums volume growth IBC polymer MS, next quarter.
Unidentified Participant
So here quarter bottom quarter area earning case, said is with quarter two [Foreign Speech] cash bottom we asked only to upward hopefully sir or with the troops sir, [Foreign Speech] continued again, sir? Okay, sir. Thank you, sir. Thank you.
Operator
I pass over quick questions. I would just like to hand over the call to the management in case you have any closing remarks.
Bijaykumar Agarwal
Yeah. Dear all friends, thanks for joining and thanks for keeping faith on us. We have been doing all our best what we are doing. We have been running this for 24/7 and we are setting up our goal for the long time, the long-term goal, wherein we are doing all our investment is its backward integration as well as forward integration.
We are adding capacity also. We are looking at a sustainable also wherein we are touching all the big, big companies who wants all kind of this sustainable in future that sustainable environment. So we have been doing all that necessary things which our competition might not be doing.
So this is what I can say. And hopefully from next quarter onwards, you will see good results coming up. And as expected onlines, thanks for joining. Thank you so much.
Operator
[Operator Closing Remarks]
Jaiprakash Agarwal
Thank you. Thank you, Bijay