Supreme Petrochem Ltd (NSE: SPLPETRO) Q2 2025 Earnings Call dated Oct. 23, 2024
Corporate Participants:
Rakesh Nayyar — Executive Director and Chief Financial Officer
Analysts:
Anuj Sonpal — Analyst
Aditya Khetan — Analyst
Sailesh Raja — Analyst
Dhruv Muchhal — Analyst
Nirav Jimudia — Analyst
Raman KV — Analyst
Presentation:
Operator
Ladies and gentlemen, good day and welcome to the Supreme Petrochem Limited, Q2 and H1 FY25 Earnings Conference Call. As a reminder, all participants’ lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. [Operator Instructions]. I now hand the conference over to Mr. Anuj Sonpal from Valorem Advisors. Thank you, and over to you, sir.
Anuj Sonpal — Analyst
Thank you. Good evening, everyone, and a very warm welcome to you all. My name is Anuj Sonpal from Valorem Advisors. We represent the lnvestor Relations of Supreme Petrochem Limited. On behalf of the Company, I would like to thank you all for participating in the Company’s earnings call for the second quarter and first half of the financial year 2025.
Before we begin, let me mention a cautionary statement. Some of the statements made in today’s earnings call may be forward-looking in nature, Such forward-looking statements are subject to risks and uncertainties, which could cause actual results to differ from those anticipated. Such statements are based on management’s beliefs as well as assumptions made by and information currently available to management.
Audiences are cautioned not to place any undue reliance on these forward-looking statements in making any investment decisions. The purpose of today’s earnings call is purely to educate and bring awareness about the Company’s fundamental business and financial quarter under review.
Now, let me introduce you to the management participating with us in today’s earnings call and hand it over to them for opening remarks. We firstly have with us Mr. Rakesh Nayyar, Executive Director and Chief Financial Officer and we also have Mr, Dilip Deole, Chief Executive of Finance and Accounts.
Without any further delay, I request Mr. Rakesh Nayyar to start with his opening remarks. Thank you, and over to you sir.
Rakesh Nayyar — Executive Director and Chief Financial Officer
Thank you, Anuj. Good evening, everybody. It’s a pleasure to welcome you to the earnings conference call for the second quarter and first half of the financial year 2025.
Let me start by giving you a brief overview of the financial performance for the second quarter ended 30th September, 2024. The operating income for the second quarter was INR1,506 crore, which has grown by approximately 18% on a year-on-year basis. The operating EBITDA was reported at around INR125 crores, reflecting a similar increase of approximately 18% year-on-year.
The total EBITDA margin stood at around 9.42% for the second quarter. The net profit after tax was around INR91 crore, which increased by around 17% year-on-year. ln the second quarter, the Company sales volumes of manufactured products increased marginally year-on-year to 81,566 metric tonnes. The prices of styrene monomer during the quarter ended September 2024 were range-bound.
For the first half of the Financial Year 2025, the operating income was INR3,079 crores, which has grown by 23% year-on-year basis. Total EBITDA is around INR326 crores, representing a growth of approximately 42% year-on-year. Total EBITDA margin stood at around 10.6% for this period. The net profit after tax is around INR112 crores, which increased by 44% year-on-year.
On the operational front in the first half, the Company sales volumes of manufactured products increased by 10.47% on a year-on-year basis to 1,74,813 metric tonnes. Domestic sales volumes increased by 17.6% year-on-year basis, to 1,57,702 metric tonne in this period. Exports remained subdued due to ongoing West Asian crisis and slowdown in Europe and Turkey, with exports quantity in first half of FY25 of 17,111 metric tonne, as against 24,184
Metric tonne in the corresponding period of the previous year.
On the capex front, the implementation of the first phase of Mass ABS project, with a capacity of 70,000 tonnes per annum is expected to be completed by March 2025. On the other update, the Company remained debt free with an investable surplus of INR886 crores at the end of September 2024, and the Board has recommended an interim dividend at the rate of 125% of INR2.5 per equity share on the face value of INR2.0 per share,
With this, now, I open the floor for questions-and-answers session. 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 Aditya Khetan from SMIFS Institutional Equities. Please go ahead.
Aditya Khetan
Yeah. Thank you sir, for the opportunity. Sir, first question is onto the volume side. Sir, in this quarter we had witnessed a sharp dip on sequential basis. Sir, is there any particular reason what has changed last quarter versus this quarter in your export geographies, and why there is a sharp dip in volumes?
Rakesh Nayyar
Sharp dip in volumes is essentially a seasonal factor, because once the monsoons sets in from the mid-June onwards, the –it’s a kind of a lean period where the demand from the OEMs as well as the non-OEM segments will go down. And the — generally from mid-June to mid-December, it is a lean period barring one month of the festivities before Diwali. And from mid-December to mid-June, again, they becomes a high-demand season for us. And that is the cause for the — when you look at the sequential thing, the demand is lower or the sales are lower in volumes. But if you compare it on year-on-year basis, then the domestic demand has grown. The export demand is subdued this year because of the slowdown in America, as well as in Europe and Turkey and also the West Asia crisis.
Aditya Khetan
Okay. And sir, are you finding any reason so whether these geographies has really bottomed out in terms of demand, and there is a good uptick which we can see [Technical Issues] or you still see that — so the pain will continue?
Rakesh Nayyar
See, as far as the export volumes are concerned, unless there is a strong demand comes from Europe or Turkey, and also till the time the West Asia crisis is on, the unlikely that the demand would be strong from these markets or the exports would be strong to these markets. But the exports to the other Asian countries or the African countries, they continue. It’s not that all Europe is dead, we still export to Europe, but then the volumes to Europe have come down.
Aditya Khetan
Okay, okay. Sir, my second question is on to the polystyrene spreads. Sir, we were checking the data that on spot basis, the Polystyrene and the styrene spreads have gone up. But sir, our data in — but sir, our reported numbers indicate that the spreads have actually declined. Sir, just wanted to know what is the deviation and what we are missing here.
Rakesh Nayyar
The Styrene prices have been more or less stable in the months of July, August until almost ends — the third week of September. Second half of September onwards there’s some dip. And the deltas are actually the normal deltas between — the spread between PS in the global market and the PS and SM deltas are standard deltas. There is no sharp deviation as far as we see the numbers.
Aditya Khetan
Okay. And sir, in last quarter, sir, you had mentioned that because of the higher ocean freight prices also, so Polystyrene prices were higher. In this quarter, sir, are you witnessing that benefit has gone or still this quarter, so the benefit was there from the higher PS prices?
Rakesh Nayyar
See, that was there for a while, but now the freights are coming down, they are becoming normal now.
Aditya Khetan
Okay. Okay. Sir, my next question is on to the Haryana land, which we had bought. Sir, we are doing a capex of INR800 crore, and I believe sir, earlier you had mentioned that the revenue potential could be around INR2,200 crores. Sir, any idea how much capex we had incurred as of now, and which are the projects we had commissioned over there?
Rakesh Nayyar
No, we have not commissioned any project there so far. We bought the land, we are doing the pre-project activities, including the environment clearances and environment impact assessment and other approvals which are needed. So, all that work is going on. It is a long-term process. It will take another — we presume six to eight months before we can really start the work there.
Aditya Khetan
Okay. And sir, our expansion of ABS and — [Speech Overlap]
Operator
I request you to come back for a follow-up question.
Aditya Khetan
Sure, ma’am.
Operator
Thank you. [Operator Instructions]. The next question is from the line of Sailesh Raja from B&K Securities Limited. Please go ahead.
Sailesh Raja
Sir, thanks for the opportunity, sir. Sir, in our latest annual report, under total energy consumption data, we have provided electricity consumption and fuel consumption. So, is this fuel consumption, it is used for generating power or any other production process also the fuel is used?
Rakesh Nayyar
Come again, I couldn’t get your question, please.
Sailesh Raja
Sir, in our annual report, [Speech Overlap] under total energy consumption data we have given, so we have provided both electricity consumption and fuel consumption.
Rakesh Nayyar
Yeah.
Sailesh Raja
So in this fuel consumption, it is used only for power generation or any other production process also it is used?
Rakesh Nayyar
Fuel generation is for the — fuel consumption is for the production purposes.
Sailesh Raja
Okay. Production purpose? Okay. Okay. So, in that case, power cost per unit comes around INR8.9 per unit, INR9.0 per unit, right sir, last year in FY24?
Rakesh Nayyar
Okay.
Sailesh Raja
So now with PDA agreement with TP Saturn and Tata Power, so we are saying 50% of the Maharashtra plant will be renewable, so in that case, how much benefit can come, sir?
Rakesh Nayyar
As far as our Maharashtra unit is concerned, because what numbers you are seeing is the combined numbers of the — for our both locations. But then if I see — [Speech Overlap]
Sailesh Raja
No, sir. I have taken only 90% of total consumption, unit consumption.
Rakesh Nayyar
Sorry?
Sailesh Raja
I have taken only 90% of unit consumption.
Rakesh Nayyar
Okay. [Speech Overlap] So the — [Speech Overlap] concerned, we would be — our power consumption costs going forward should go down by around 25% once the solar supply starts, which actually has commenced from this month.
Sailesh Raja
Okay, 25% sir?
Rakesh Nayyar
[Technical Issues]
Sailesh Raja
Okay, okay. So in that case, the maximum power cost will be only say INR70 crores at full utilization of 5 lakh tonnes, excluding the ABS. My understanding is right?
Rakesh Nayyar
You are saying that our maximum would be what?
Sailesh Raja
5 lakh tonnes excluding the ABS our maximum of power cost will be around INR70 crores, right sir?
Rakesh Nayyar
See, that is all linked to the production level. So, what will be the final number, I can’t tell you that, but then, based on the supply of solar, what we have agreed upon as per the agreements and the consumption, standard consumption at our Nagothane plant, based on our current production levels, we expect that our product — our electricity cost will come down by 25% with regard to Nagothane plant.
Sailesh Raja
Okay. Okay. Sir, my second question, we are investing INR800 crores in this Haryana green field. The potential revenue from this project is roughly around INR1,900 crores. So, we are getting into two new products that is Engineered Plastics and EPS 3D Panels, that’s one — [Technical Issues]
Rakesh Nayyar
[Speech Overlap] Your line is not clear. Mr. Raja, your line is not clear.
Sailesh Raja
Sir, you can hear me?
Rakesh Nayyar
Hello?
Sailesh Raja
Yeah, you can hear me now?
Rakesh Nayyar
Yeah, I can hear you now.
Sailesh Raja
Yeah. So, we are investing INR800 crores in Haryana greenfield projects.
Rakesh Nayyar
Yeah.
Sailesh Raja
The potential revenue from this project is INR1,900 crores. So, we are getting into two new products, one is engineering plastic and EPS 3D panel, that is 1 million square meter 3D panel. So you have mentioned already that some 3D panel, we can do INR100 crores of potential revenue. So what’s the potential revenue we can expect from this engineered plastics that is ABS, polycarbonate or PMMA?
Rakesh Nayyar
So, we have — we have not said engineered plastics there. We have talked about the units which should be there is the polystyrene, expandable polystyrene, extruded polystyrene, sheeting and 3D panels. So that, what you are talking about is the engineering plastics, that is — [Speech Overlap] that is the — that could be a compounding part of it, but not the engineering plastic unit as only polystyrene would be there and expandable polystyrene would be there.
Sailesh Raja
Okay, okay. Sir, can you just [Technical Issues] roughly give the product-wise potential revenue in Haryana plant, the PS sheeting, 3D panel.
Rakesh Nayyar
3D panel. You only have said that the INR100 crores.
Sailesh Raja
INR100 crores, yes.
Rakesh Nayyar
And the sheeting would also be close to INR150-odd crores.
Sailesh Raja
Okay, sir.
Rakesh Nayyar
And then the polystyrene, expandable polystyrene, they would be adding it to it. So, the total revenue would be in the region of INR2,000-odd crores.
Sailesh Raja
So EPS capacity — effective capacity will be 48,500 tonnes. So we can do roughly INR700 crores?
Rakesh Nayyar
You said 48,500 of what?
Sailesh Raja
EPS capacity.
Rakesh Nayyar
EPS capacity, we have said 50,000 tonnes for that.
Sailesh Raja
No, in that 1,500, it will go to 3D panel. So the saleable volume will be around 48,500.
Rakesh Nayyar
Okay.
Sailesh Raja
So, we can generate INR700 crores revenue from that?
Rakesh Nayyar
From there we can generate a revenue of around INR750 crores, yes INR700 crores or so.
Sailesh Raja
Yeah, okay. Thanks sir. And sir, a last question, sir, first half, we have achieved 17,000 tonnes in exports. So is it possible to achieve 40k sir, in this FY25?
Rakesh Nayyar
As of now, we are working on it because all depends upon the many factors today, one is the West Asia crisis, the secondly slowdown in America and also in Europe and in Turkey. So, we are working on the other markets where we have our existing clientele. So, we are targeting we should be near about there, but then can’t really with certainty say that what number we would be able to achieve.
Sailesh Raja
Okay. Sir, in terms of pricing, how competitive we are, sir, in exports market?
Rakesh Nayyar
So we are very competitive because not only the price run, because of our quality and the variety of grades which we can offer for different product at different applications, that is the — our USP as far as the exports are concerned.
Sailesh Raja
Okay, okay. So, what is the breakup, sir, between EPS and PS in exports?
Rakesh Nayyar
EPS is very minimal. It is mainly polystyrene.
Sailesh Raja
Okay. Okay, sir. Thank you, sir. Thanks for answering for all my questions. Thanks.
Operator
Thank you. [Operator Instructions]. Thank you. The next question is from the line of Dhruv Muchhal from HDFC Asset Management. Please go ahead.
Dhruv Muchhal
Yeah, sir. Thank you so much. Sir, first question is on the freight trades, container freight trades global. So, you mentioned they have come down. But if I look at the trend, it seems they are coming — they were still reasonably high during the quarter, and the trend probably seems to be still higher than when they started to increase, probably indicating that the scope is still a lot more.
So, how should — will it probably have some implications in terms of the economics or the spreads that we are probably currently earning, assuming the benchmark spreads remains the same. So, will it have some implications?
Rakesh Nayyar
What — When I said they have started coming down, if you look at — compare them with the first quarter of the current financial year, they have come down. And as far as our economics is concerned, generally the imports to India, they are from the Southeast Asian countries, mainly from Singapore, Taiwan and also the Far East that is the Northeast. So, if Thailand is there, as the Korea or Taiwan or Singapore, they are the major exporting countries to the country. The freight rates from these countries have not really gone up significantly and they are almost at the normal levels now thereabout.
So, I don’t see that there will be any impact on as far as our economics is concerned.
Dhruv Muchhal
Got it. Perfect. That helps. And sir, the second question is probably a bit macro is, if I look at across the polymer chains, global, which are global polymers, it seems the spreads are much lower than what they were say pre-COVID or around — much lower 2018, ’19 levels also. Two reasons it seems is because of China’s capacity addition across, and the global weak demand. But sir, particularly for PS, it seems the spreads are better than what they were historically.
So, is there any particular differential trend which is playing out in PS which is leading to such an outcome?
Rakesh Nayyar
The spreads of polystyrene are already normal, I won’t say they are very any –[Speech Overlap]
Dhruv Muchhal
Yeah. So, they’re normal, but if I look at some of the other products, if I look at some of the other polymers, they’re much lower because of multiple reasons. Yeah.
Rakesh Nayyar
[Speech Overlap] Yeah, moving on to the normal spread levels, and it’s essentially that the — there is a demand, particularly in India where there is a growth in demand of polystyrene, which was earlier very low. Now it is increasing with the increased demand from OEMs, and also the — some exports by the OEMs also. So that is adding to the — as far as India is concerned, we are holding on to that.
Dhruv Muchhal
But sir, you also get influenced by the global spreads right to a large degree? So I’m just trying to understand the — [Speech Overlap]
Rakesh Nayyar
Deltas in the Far East and the Northeast, South-East Asian countries, they are almost the same. There has not been any uptick there. There are the normal standard spreads there also.
Dhruv Muchhal
Yeah. So — [Speech Overlap]
Rakesh Nayyar
[Speech Overlap] what we’re seeing is the European and the American spreads. In Europe because many plants have shut down, the slowdown is there but many, many plants are operating at very uneconomical levels. So, there the spreads may be higher, but not in this part of the world.
Dhruv Muchhal
Got it. Sure. And sir would the spreads in, say, Southeast Asia and the Far East would be very different versus India on a benchmark level, on a specific product level? I understand you do various grades, and so that can be on a blended basis, it would be different, but if I have to you know, just pick a single grade and a single Southeast Asian grade on a like-to-like basis, would it be very different?
Rakesh Nayyar
No, it would not be, because the base pricing in India is also linked to the Southeast Asia spreads only.
Dhruv Muchhal
Okay, got it. Perfect. That makes sense. And sir, last question is, how differential are these economics when you’re looking at exports versus domestic for the same — for the same set of product, so does domestic fetch you a better — better margin or domestic or exports — [Speech Overlap]
Rakesh Nayyar
[Speech Overlap] Domestic is fast superior than the exports. At times exports give us better margins also, but in current circumstances in the current scene, the exports are lower than the domestic.
Dhruv Muchhal
And the differential is primarily because of the freight or is there something more to it?
Rakesh Nayyar
Yeah. Mainly because of the freight and also the competition in the sense that since the demand — there is a slowdown in European market or in Turkey. So the whole world which was earlier trying to supply to them and they are — whatever demand is there, everyone is trying to compete for that. So the size of the pie has gone down. So everyone is trying to have a share of that pie. So there is a competition there.
Dhruv Muchhal
Got it. Thank you so much, sir. Thank you so much, and all the best.
Operator
Thank you. The next question is from the line of Nirav Jimudia from Anvil Wealth. Please go ahead.
Nirav Jimudia
Thanks for the opportunity, I have few questions to ask. So first is, sir, when we compare our PS volumes, we produce some specialty grades of PS also, where we get some premium pricing as compared to the normal GP and HIPS. So if you can just help us understand that how has been those premiums over those traditional grades in H1 of FY25 versus FY24, have they shrinked [Phonetic] or the premiums have been maintained and because of which we have been able to slightly better-off in terms of the performance versus the splits prevailing in the Western world?
Rakesh Nayyar
You know, the premium products which we have, the — they again they have — there is a markup over the standard grades because of the different properties of the premium grades.
Nirav Jimudia
Yeah.
Rakesh Nayyar
So, when the spread for the normal grades is X, so, our markup was there and that’s, it’s obviously, so with the markup remains the same almost.
Nirav Jimudia
Okay. Got it.
Rakesh Nayyar
[Speech Overlap]. And the spreads have gone down of the normal grade. So if you look at the absolute number, the absolute number would also go down for the premium grades, but the markup is there. Markup is the same for us.
Nirav Jimudia
Got it.
Rakesh Nayyar
And today, for all the basket of all the products what we have, we are almost at the 40% value addition in terms of our basket of products now.
Nirav Jimudia
Got it. And sir, generally, these markups are close to, 15% 20% in terms of the — over the standard grades or are they slightly lesser?
Rakesh Nayyar
See, if the — we treat it as a premium product for us or a value-added product for us where the markup is 20% more than the normal standard grade for us. If the standard grade is X, the premium grade or the value-added grade would be 1.2 or X plus 0.2.
Nirav Jimudia
Got it. And sir, with the lot of MNC guys setting up their plants here in India, specifically on the OE side, does it mean that the demand for this premium grade should go up given the kind of qualities and the kind of new edge technologies which they bring along with them to India, is it possible that this 40% number can go up to 60%, 65% over a period of time?
Rakesh Nayyar
I don’t see that kind of a jump very frankly. Maybe, yes, another 5% to 7%, it may go up, because what I’m telling you 40% is for the total basket of all products put together as far as we are concerned. So there are EPS, there are compounds, there are other products also. So I see that as a — for the company as a whole, it could be up to 50%, maybe we’ll have the value-added products then.
Nirav Jimudia
Got it. On the full volumes of 5,22,000 tonnes whenever we get volumes –[Speech Overlap]
Rakesh Nayyar
No, the current volumes today.
Nirav Jimudia
Okay. On the current volumes. And out of this 40%, how much could be for PS? Any idea if you can give?
Rakesh Nayyar
I won’t have that number off hand right now.
Nirav Jimudia
No worries, sir. Sir, next question is on — I think this quarter, if I’m not wrong, our trading sales is slightly higher based on the numbers what I’m looking out. So generally, it used to be 21%, 22%, but is it at the same level or it has gone up slightly this quarter?
Rakesh Nayyar
Maybe 0.5% there or — here or there, but generally, we are around 22% to 23% of our total volumes, our total value — [Speech Overlap]
Nirav Jimudia
Got it. Sir, last bit from my side is, the capacity utilization for PS and EPS, if you can share. And along with it, are we working because you mentioned in the one of earlier participants that the exports of EPS was minimal. But is there a — is there a scope for developing some special grades for the EPAs, which can be specifically for the targeted export market and because of which our exports of EPAs could be also meaningful in our overall export share? Thank you so much.
Rakesh Nayyar
We are already working on the — on developing new grids for the European market and for the US market, because we are also expanding our EPS capacity. So we have to look at the exports market. And I think in the near-future, we would be exporting significant quantities of EPS to these markets. We are working on it.
Nirav Jimudia
Correct, correct, correct. So — and the capacity utilization number, if you can share sir.
Rakesh Nayyar
Capacity utilization for all products put together, we are close to around 80% for this quarter.
Nirav Jimudia
Got it. Sir, last if you may allow. If you can share the schedule of our expansions for EPS compounds as well as ex-PS. [Speech Overlap] The one which we are doing at Manali for compound rating from 25% to 75% and ex-PS one.
Rakesh Nayyar
No, Manali, we are not — Manali expansion is over. As far as the Amdoshi expansion is concerned, the EPS would be — the second phase would be over when the first quarter — last quarter of the current financial.
Nirav Jimudia
Okay.
Rakesh Nayyar
And as far as the components are concerned, there we are — we will — as I said earlier also, we will keep on adding plants on a need-based basis as and when we need more lines, they’ll keep on getting added there.
Nirav Jimudia
Got it. So effectively, our EPS capacity would be 1,48,000 kt or 1,48,000 tonnes?
Rakesh Nayyar
The effective capacity — effective capacity would be maybe 130,000 tonnes to 135,000 tonnes. The nameplate capacity would be 145,000 tonnes for us.
Nirav Jimudia
Got it, sir. Thank you so much, sir, and I wish the entire team all the best.
Rakesh Nayyar
Thank you.
Operator
Thank you. The next question is from the line of Raman KV from Sequent Investments. Please go ahead.
Raman KV
Hello, can you hear me?
Operator
Yes, sir.
Raman KV
Hello, can you hear me?
Rakesh Nayyar
Hello.
Raman KV
Excuse me, sir, can you hear me?
Rakesh Nayyar
Yeah, yeah, I can hear you.
Raman KV
Sir, I just wanted to know the update with respect to the upcoming Mass ABS plant. And historically, if one looks at the — the EBITDA margins have been declining. So, can you give me what’s the reason why the EBITDA margin are falling year-on-year basis? Like when — back in 2022, it, it was 18% and now it’s around at 9% or 10%.
Rakesh Nayyar
Mass ABS project would be completed by March 2025. And as far as your EBITDA margin is concerned, yes, ’21, ’22 margins were very high because of the very significantly higher spreads in the global market. Post-COVID, that was the year when there was a — the many plants had not started and the shipping rates are very high. So the global deltas are very, very high. So, that benefit we got.
Otherwise, we are currently in a normal delta scenario where we are at between 9% to 10%.
Raman KV
Okay. Thank you, sir.
Rakesh Nayyar
Thank you.
Operator
Thank you. [Operator Instructions]. The next follow-up question is from the line of Aditya Khetan from SMIFS Institutional Equities. Please go ahead.
Aditya Khetan
Yeah. Thank you, sir for the follow-up. Sir, my question is onto the EPS part. Sir, we know that EPS and the PS, so EPS is generally a premium as compared to PS. So, in terms of percentage like if suppose in PS, we are getting an X percentage of spread, so how much incremental we would be getting within EPS?
Rakesh Nayyar
No. There is no such differentiation now, maybe that EPS may affect in some markets or some application, it may rather fetch less than PS also.
Aditya Khetan
Okay, okay. And sir, one of the raw material to make EPS is pentane. So sir, my question is, so from where we are sourcing this pentane gas and how we are storing and handling it? And what are the current prices of pentane?
Rakesh Nayyar
We import, we source it locally also, and it is handled in ISO tanks, everything, and there are licenses to — for storage of this. So, as per the required legal requirements, the storage is taken care of in the specified tanks. And as far as the prices are concerned, I won’t have off hand at the moment. Maybe later on I can give it to you.
Aditya Khetan
Okay, okay. And sir, in terms of the percentage split of our topline, so you had mentioned earlier that 60% to 65% comes from PS, and almost around — so two-third comes from EPS. Any change in that sir, revenue contribution in this quarter?
Rakesh Nayyar
I said that two-thirds from PS, around that, one-fourth from EPS, and one-tenth from the other products as far as the manufactured slate is concerned.
Aditya Khetan
Okay. And sir, when our — whenever our ABS would come on-stream, how much potential revenue contribution it would make at peak utilization level?
Rakesh Nayyar
The line one would give us around INR1,000 crores-plus.
Aditya Khetan
INR1,000 crores plus? Okay. Sir, estimated capex for ’25 and ’26?
Operator
Sorry to interrupt you, sir. I request you to come back for a follow-up question.
Aditya Khetan
And just one last one if I may.
Operator
Yeah, sir. Go ahead, please.
Aditya Khetan
Sir, estimated capex, sir for FY25 and FY26?
Rakesh Nayyar
FY25, our capex is projected to be around INR380 crores.
Aditya Khetan
Okay. And sir, for ’26?
Rakesh Nayyar
’26, I don’t have the numbers right now, Aditya.
Aditya Khetan
Okay, sir. Thank you.
Operator
Thank you. [Operator Instructions]. The next follow-up question is from the line of Nirav Jimudia from Anvil Wealth Management. Please go ahead.
Nirav Jimudia
Sir, thanks for the opportunity, again. Sir, you mentioned that because of the special grades of EPS, which we’ve been developing for the Europe and the US market, does it also mean that this will also come on the same level of markup premiums over the standard EPS which we are currently selling, and that could help us some enhancement in our margins?
Rakesh Nayyar
It’s very difficult to say at this moment, Nirav, because we are — what they need, we are developing that and maybe now on the — maybe in the current financial year itself, we may start exporting that. And once we actually export and then we’ll — with the acceptability of the newly developed grades of EPS, then we’ll really come to know what kind of premiums we get, but we will be working on that.
Nirav Jimudia
Got it. And, if it is possible to give some understanding like, out of, let’s say, 17 kt of exports what we have done in H1, similar size, the opportunity for EPS could emerge when we will develop these sort of grades, not immediately, but eventually, whenever the customer acceptability and the confidence goes up, can EPS expect exports could also be meaningful similar to the PS volumes which we are currently doing on?
Rakesh Nayyar
See, with the — with the whatever capacity we have that’s for Polystyrene we have an effective capacity of 300,000 tonnes.
Nirav Jimudia
Correct.
Rakesh Nayyar
And again after expansion we will have as far as EPS is concerned, only around effective capacity of around 130,000-odd tonnes.
Nirav Jimudia
Yeah.
Rakesh Nayyar
So, we won’t be having volumes also to match exports of EPS with the same quantity of PS.
Nirav Jimudia
Okay.
Rakesh Nayyar
So the — of course the — so the numbers of EPS exports would be lower than the PS exports, but they would be significant.
Nirav Jimudia
Got it, got it. And sir, any understanding of the demand scenario in India, specifically on the PS and EPS side, you mentioned that with the new OEs being putting up a plant here, demand optically looks optimistic only over a period of time. So, let’s say if you can give some understanding about the current demand scenario for PS and EPS in India, and how it is looking in H2 of FY25, that would be very helpful.
Rakesh Nayyar
No, so the demand for PS is good in India, the — as far as domestic demand of PS, because of the OEM sector is strong, it’s only that in the non-OEM sector, there has been certain slowdown.
Nirav Jimudia
Okay.
Rakesh Nayyar
So, [Speech Overlap] sector has been strong. There has been a — in the — if I look at the overall first half of the year, the — as far as OEM sector is concerned, there is almost 30% growth in the OEM demand.
Nirav Jimudia
Okay. And that forms close to 75% to 80% of our overall volumes?
Rakesh Nayyar
No, it’s not 75%. It’s — we are also significantly present in the non-OEM market.
Nirav Jimudia
Okay.
Rakesh Nayyar
It’s just not the OEM market, though all OEMs are our customers, but then, we are significantly present in the non-OEM market as well.
Nirav Jimudia
What could be rough mix if you can share, sir, like in terms of OE versus non- [Speech Overlap]
Rakesh Nayyar
50%-50%. 50%-50%. Yeah.
Nirav Jimudia
Okay, that is 50%-50%. And sir, last time you mentioned that since we have done 1,75,000 tonnes of volumes in H1, possibly the earlier guidance was like we may touch something close to around 3,45,000, 3,50,000 tonnes of volumes. Is there any change in the guidance or on the upside or on the lower side, which you may [Speech Overlap]
Rakesh Nayyar
I, yesterday, in one of the interviews, I said that we may have 340,000 tonnes of volumes this year because of the slowdown in the export market.
Nirav Jimudia
Got it. Got it. Got it. But nothing — so, the demand in the domestic market continues to remain robust. So there is no — [Speech Overlap]
Rakesh Nayyar
Yeah. We are very bullish about the domestic demand.
Nirav Jimudia
Got it, sir. Thank you so much, sir, and wish you all the best.
Rakesh Nayyar
Thank you.
Operator
Thank you. The next follow-up question is from the line of Raman from Sequent lnvestments. Please go ahead.
Raman KV
Sir, I just want to know the guidance with respect to FY25. Hello?
Rakesh Nayyar
Guidance, I’m sorry, I can’t give you any guidance. I can only tell you about our volume growth.
Raman KV
Okay. Yeah, yeah. Even volume growth will be fine.
Rakesh Nayyar
Volume growth we would — now with the slowdown in the export market, so our volume growth could be around 5% to 6% over the previous year.
Raman KV
Okay. Thank you, sir.
Rakesh Nayyar
Thank you.
Operator
Thank you. [Operator Instructions]. As there are no further questions from the participant, I now hand the conference over to the management from Supreme Petrochem Limited for closing comments.
Rakesh Nayyar
Thank you all for participating in this earnings con-call. If you have any further questions or would like to know more about our Company, please reach out to our Investor Relations Manager at Valorem Advisors. Thank you so much.
Anuj Sonpal
Thank you.
Operator
[Operator Closing Remarks].