Dhanuka Agritech (NSE:DHANUKA) Q1 2027 Earnings Call

0:00 Ladies and gentlemen, good day, and welcome to the Dhanuka Agritech Limited Q1 FY twenty seven fourth results conference call. 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. Please note that this conference is being recorded. I now hand the conference over to mister Manish Mahabhar from DHANUKA. Thank you, and over to you, sir. Thank you, Sumit. On behalf on behalf of NH Stock Broking, warm welcome to all the participants on the 1Q FY twenty seven earnings call of Dhanuka Agritech. Today, we have leadership team represented by Mr.

0:45 Nkil Dhanuka, Chairman Mr. Rahul Dhanuka, Managing Director and Mr. VK Bansal, CFO on the call. Without further ado, I would like to hand over the call to Mr. Nkil Dhanuka for opening remarks. Thank you. Over to you, Dhanuka. Thank you, Manishi. Good afternoon, ladies and gentlemen. Myself and K Dhanuka, chairman of Dhanuka Agritech Limited, and I welcome you all to the Q one FY twenty six twenty seven earnings conference call. I have with me Mr. Rahul Dhanuka, Managing Director and Mr. VK Bansal, CFO of the company. As you are aware, Dhanuka Agritech is among India's leading agrochemical companies with a long standing commitment towards advancing Indian agriculture through technology led crop solutions.

1:41 Over the years, we have built a strong 10 India franchise with deep farmer engagement and a differentiated product portfolio and a robust distribution network. Today, we reach more than 10,000,000 farmers across India through approximately 6,500 distributors and over 80,000 retailers. Supported by four manufacturing facilities and 41 warehouses. We continue to strengthen our ability to deliver products efficiently across key agricultural markets. A key differentiator for Dhanuka has been our consistent focus on introduce... Introduction of innovative and globally relevant chemistries in the Indian market.

2:34 Our partnership with 10 leading multinational agrochemical innovators from Japan, Europe, and The United States continue to provide us access to advanced technologies in differentiated solution for Indian farmers. Our two r and d centers supported by NABL accredited laboratories and a strong regulatory and product development team remain focused on product registration, formulation development, and strengthening our future growth pipeline. The agrochemical industry witnessed a significantly challenging first quarter of FY 'twenty six-'twenty seven.

3:21 Across the sector, revenue growth remained under pressure due to delayed monsoon onset in several key agricultural regions, which postponed slowing activities and led to reduction in product demand from first quarter to the subsequent month. Industry estimates indicated modest revenue growth, while profitability remains under pressure owing to weaker domestic demand and price competition. You are well aware that in the month of June, we had 40% shortfall in the range, and by the end of July, it came down to 15% shortfall.

4:06 So even 1% shortfall in the rainfall impacts the sowing areas and the overall growth of the crops. In addition, the sector continued to face challenging... Challenges arising from elevated raw material and logistics costs during the quarter. Several companies attempted price increases during initial months of the season to offset higher costs linked to geopolitical tensions in West Asia. However, weak market demand limited the sustainability of such highs. Against this backdrop, I would like to share that Dhanuka delivered a subdued operational and financial performance during the quarter.

4:59 The revenue from operations for q one FY twenty six twenty seven stood at rupees $49.04 61.93 crores as compared to rupees $5.28.29 crores in q one of FY twenty five twenty six, registering a degrowth of approximately 12.56%. EBITDA for the quarter stood at rupees 55.01 crores and corporate after tax stood at rupees 36.30 crores. Our balance sheet and cash generation continue to remain strong, providing us the flexibility to invest for future growth by overcoming the short term headwinds and turbulence.

5:47 The zone wide contribution to turnover for q one FY twenty six twenty seven was North contributed 36%, East contributed lowest 9%, West contributed 37%, and South contributed 18%. Product category wise, share was insecticide contributed 25%, fungicides contributed 14%, herbicides contributed 42%, and others contributed 19%. While the first quarter was impacted by delayed seasonal demand, pricing pressure and external uncertainties, we believe these are largely cyclical changes challenges.

6:39 The long term growth drivers of the Indian agrochemical industry remain intact, and we remain optimistic about stronger momentum in the coming quarters. The shareholders of the company in the forty first Annual General Meeting held today at 11AM considered the final dividend of 100%. That is rupees 2 per equity share having face value of rupees 2 per share, and the result for the dividend will be declared within due course. The company already rewarded the shareholders with a buyback of 5 lakh equity shares at the rate of rupees 1,400 per equity share absorbed in rupees 70 crores.

7:27 Further, it is to inform you that the company has acquired land at Nagpur, Maharashtra for setting up a new manufacturing plant. This is in the Bouti Bourri zone of Nagpur, the industrial area. The total estimated outlet for the project is expected to be up to rupees 200 crores. The proposed capacity of the plant will be 23,000 metric ton per annum. It is expected that the site will be operational by April 2028. We are pleased to inform you that in the upcoming months, we are planning to launch five new products consisting of one liquid fertilizer, three fungicides, and one herbicide.

8:20 At Dhanuka, we continue to believe that sustainable business growth must go hand in hand with farmer prosperity and national food security. Our continued engagement with agriculture universities, and other scientific institutions remains an important part of our pharma education and technology dissemination effort. Thank you very much for your kind attention. We would like now like to open the floor for questions. Thank you. Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and 1 on the test room telephone.

9:09 If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use handsets while asking your question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of from. Please go ahead. Hi, sir. My question is about the products which we had acquired from Bayer. And have we expanded our distribution reach in other countries? And we had appointed some customers also in five countries, and we were planning for more expansion. And you had also mentioned that these are the some real challenges which we are facing.

9:55 So just wanted an update on this one. So we have acquired and its variants and tried them in all in its variants from Bayer for global markets. And as we speak, we have already established some customers in various markets and already business started with them. Whereas in some markets, we have yet to establish our distribution setup, which is ongoing as we speak. Also as we speak, the Executive Director of International Business, Harsh, is traveling to these markets in US and Brazil, meeting with customers existing as a risk perspective. Okay.

10:40 And sir, in terms of revenue, could you please tell us how much would these products contribute to the top line in FY twenty seven? As of now, we are not sharing the number of how much Tridamenol and NitroVelica will be sharing in FY twenty seven. But, yes, we'll address this query separately. Okay. So the next question is the products we introduced in the last years, like, MicroSuper and Verdol. So how much do the new product launches contribute towards the top line? And has that ratio increased over the years? And, also, I wanted to know the thought process when you introduce new products.

11:28 What are the management's internal target for the return ratios and margins which they would like to command? And does it differ from segment to segment? Right. So what we track our performance on new product introduction is through innovation turnover index, and we have maintained a healthy innovation turnover index. Last year, it was about 13.89%. And Verdour, which is a biological calcium... Sorry, not calcium. It's a biological bionutrition for various crops. We introduced late last year, sometime in September, and we have seen good traction for Verdour in the first quarter of this year.

12:20 There was no significant movement last year. MicroSuper was introduced the year before. That was in FY '25. MicroSuper was introduced in q one FY '25. It did it did really well in FY '25. It has been extremely well in FY '26 also. And this year, q one also, MicroSuper has received good traction across the geographies and across cereal crops, pulses, sugarcane, and even horticulture crops. Okay. And so just, like, the second part of my question would... Is it possible when you when you introduce a new product and some internal management, let's say, targets for the return ratios or the margins which you would like to command, and would it differ from segment to segment?

13:15 Yes. It differs from segment to segment since at Dhanuka, we introduced new patented products also, new chemistries from various J makers, Japanese partners, and their premixes. They fall in a premium category, and we command a different margin on those products. Nutrition products also mostly have a differentiated and a premium margin. Micro super and world are both would fall in some... In the same category. We introduced various me to products and co marketing products also time to time, which would normally fall in a lower margin category as compared to 9.3 products on Nutrition. We benchmark a healthy 20% margin minimum for any new introduction, But mostly nine three and nutrition would have significantly higher, more than double sometimes.

14:07 Okay. And so may I ask you Sorry to interrupt, mister Please rejoin the queue for more questions. Ladies and gentlemen, you are requested to restrict your question to two per participant. The next question is from the line of from Bank and Triadvisor P and S. Please go ahead. Hello, Please go ahead. Hi. Am I audible? Yes. Hello. Yeah. Yeah. Thank you for taking my questions. Sir, my my first question was, what is the update on the GST notice that we had received a couple of months back?

14:54 Yeah. You see, the... We have already appointed our as consultant. So we started whatever, so that is in under consideration. It will take a little more time. And are we confident that the the order will be in our favor? Sure. Sure. Sure. Now these these molecules are categorized in the that category of. So currently, the... As far as the 5%. So we are sure we'll run that this absolutely. There's no doubt about it. Okay. Great. Great. That's what I need to hear. And the second question was two parts. One was, are we looking to sign more deals in the international market like we did with fire? And will it also help feed our Dhanuka plan capacity?

15:41 Right. Thanks for that question. As you are aware, Dhanuka is a debt free company. We have a strong balance sheet and has been like that for many years. So, yes, we are scouting out for good inorganic growth opportunities, including product portfolio. Leveraging our capabilities in the hedge plant is always an expanded option. Yet our strength in Indian market, market access, as well as capabilities to manufacture, synthesize products in the age, altogether are various dimensions across which we explore acquisition. Okay. Okay. And, sir, this plant, is it going to be a formulation plant, or is it going to be a technical plant like this?

16:27 This is going to be a formulation unit. Alright. Alright. Thank you so much. I'll get back in the queue. Thank you. The next question is from the line of Dhanuka from DSP Asset Manager. Please go ahead. Thank you, sir. My first question was regarding the guidance cut that we have done in the PPT for FY twenty seven. I just wanted your thoughts on why such a steep cut, especially on the top line growth front. So as you can obviously see the movement of Monsoon and its impact from various angles, I think so this is where we estimate our best position to be. We are still pretty hopeful of the growth that will come in Q2 and Q3.

17:20 And yet, it is absolutely appropriate that we project a clear picture to our investors. Got it. But, I mean, it's safe to assume that second quarter so far has also not seen a larger growth given that we had some benefit of the base as well last year's same quarter. That's right. Alright. Okay. Secondly, on the new facility, the 23,000 tons facility, 200 crores CapEx for a formulation unit seems a little high, isn't it? Like, how do you arrive at? It is high. I can't say it. Because because... No.

18:06 No. So why? Because for the technical plan, we had set up a bit extended roughly about $25,300 odd crores. Usually, the thought is that formulation plant about $60.70 odd crores is something that we do, and we expect a 70 times asset on the formulation plant. That's why I just wanted your thoughts on the same. We are imagining this plant to be significantly automated plant, cutting down on labor dependencies, making this plant of global standard in terms of both safety and efficiency. So with that automation in mind, we are expecting initially a relatively higher CapEx. Okay. But I'm guessing given that it's a new tank, some part of the 200 crore would go for setting up the utilities and everything.

18:55 Yes. It will be. Got it. Got it. And, yeah, if it turns, we should think about it at, like, seven, eight times. I think so. This is probably not the right time for me to come on the SSN part, but I think we will be able to come back and address this towards once the, you know, project details and everything are deeply finalized, which is probably late last q four. Got it. Okay. Dhanuka, if you could just give us the split for the the HR side revenue EBITDA and the product revenue and royalty for first quarter. You see, in terms of the age, the turnover last year, it was around 16 crore. This year, it's around 6 crore. In terms of EBITDA, last year, EBITDA was negative 3 crore. This year, it's less than 1 crore.

19:46 Okay. Sir, sir, sorry. Could you repeat the revenue number again? Revenue is 26 versus 60. Okay. Okay. Okay. Got it. And for Bayer product? Bayer product revenue is not actually coming in our books in the quarter one. Okay. And the royalty? Royalty is significantly lower as compared to last year. It is around four score. Alright. Okay. Sir, just few thoughts and just one last question. On your thoughts on... Do we have any threshold on how much do we plan on expanding on these their products to set up a distribution network in the export market?

20:47 As of now, not not on that front. Alright. Okay. Thank you. Thank you for the opportunity. That's all. Thank you. The next question is from the line of from TriNet charge at Emeritus. Please go ahead. Hello. Am I audible, sir? Yep. Thank you so much for the opportunity. Most of my questions are already answered, but a few questions from my side. After this audit program began, how would you categorize inventory level at distributors and retailers? Are inventory broadly aligned with the primary sales, or do you see any stocking or re shopping trend emerging? And this you are seeking for which window?

21:39 Correct. This year, sir, quarter one, quarter two. Quarter one, quarter two. So... Okay. Now as you are aware that last financial year ended with significant increase in prices and a fear of nonavailability, so there was probably some front loading in the market in the beginning of the year. As the season is progressing, we don't see either way stocking or destocking happening. Our business is progressing on the go as per the market demand, and inventory rotation is happening normally. So I I don't foresee any stocking or destocking by end of quarter two, either way. Okay.

22:28 And recently, we have launched many products and upcoming also, we will have many products. So could you please share how much of the q one revenue came from products which were launched over last two years or last three years? And what contribution you expect from these products over the next two to three years? I really not pulled out this part of the data. Yeah. But as far as I can't confirm, it's around eleven months percent, which is the conclusion of this the last few years introductions. Got it, sir. Thank you. Thank you. The next question is from the line of from Securities.

23:13 Please go ahead. Thank you for the opportunity. Q one was supposed to be a decent quarter, I think, in general, because of price increase and the industry might have got benefit of some low cost inventory that we would have carried for for the current season from q four. But it does not seem to be so. So some more details from you on how q one panned out actually and how is the situation on... In q two on ground would be very helpful. Yeah. So q one for us, and I believe industry general is herbicide heavy.

24:03 We decide heavy for soybean, cotton, various other crops across large parts of the geography, including the space... These were some of these states which were, like, worst impacted in one Sorry to interrupt, sir. Sorry to interrupt, Your voice is not audible. Your voice is cracking a little bit. I'm sorry. Tell me, Sumit, is it better now? Yes, sir. Please go ahead. Thanks. I'll take that part. So Rajasthan, Gujarat, Madhya Pradesh, Maharashtra, import cotton and soybean markets, they took a major beating in terms of rainfall, especially in the month of June.

24:51 And in some pockets, farmer had to even go for re sowing. That is where herbicides for Dhanuka have taken a change. And that's how about, you know, that's reflected in our q one performance. In terms of south, so the sentiments have not been good. The rainfall has not been good in June as well as in July. Going to q two, July, while various districts and some office have seen excessive rainfall, large part of the country remains deficit in rainfall, and that's how July is moving. Of course, July has done better than June. Yet, what we see is a difficult quarter.

25:39 Okay. Sir, senior revenue breakdown segment wise, herbicide declining by around 25 percentage, understandable. But in a season of herbicide heavy consumption wise, fungicide sales up 11%. Fungicide sales is 40%, not 11%. No. So y o y growth. Ah, okay. I I didn't get your question. The fungicide sales was up 11% year on year in q one. Generally, q one is a herbicide placement season, and insecticide fungicide takes a back seat for q... Because the sales are generally higher in q two.

26:28 But why is fungicide sales also up 11% this quarter? This is very interesting. Some in a very specific fungicide, a very special Japanese fungicide has a special traction in dry season in horticulture crops. Now high horticulture prices, for example, tomato, coker bits, etcetera, gave traction for these two products, and that's why fungicide has grown in q one. Whereas you are... Eventually, right, q two is a fungicide quarter. So which molecules would these be? Or which In the sodium? Sodium Conica. And Conica.

27:14 And genetic as well. Okay. And just last question for mister Dhanuka. Sir, generally, in a weak quarter, have... In general, you have very tight control on cost. And at this time, against the 12% revenue decline, your other expenses are flat. So, is there any one off in this quarter or, I mean, we are not able to control it this time? We are able to control them. They are flat. You see, it's very difficult to maintain the expenditure of same same level. Because you see, all the expenses, many expenses are basically incurred in anticipation of this year. Their planning is done significantly ahead of this year. Right?

28:00 So expense are easy because of price control are are flat in terms of percentage or more, but in absolute value, almost same. Similar. Okay, sir. I'll go back to the queue. Thank you. The next question is from the line of from. Please go ahead. Yeah. Hi, sir. So my question is regarding if you could, you know, break up the revenue growth in terms of volume value. Yeah. You see, in terms of value, volume growth, it is almost similar. Value in negative by 12.56, and volume is around same 12.79. Okay. So so the the value put was was partially led by the increase in the input cost. Right?

28:57 It's almost same. Similar value of volume, there's hardly any difference. No. No, sir. So so so, sir, my my my question was that the price growth that we are seeing in this quarter, so that was driven by the price hike, and that is led by the input cost inflation. Is that correct? You see, price hike happened in the month of June. It it could not sustain. From the May, it started declining. And June, significant decline in many molecules. In July, further decline. That was artificial. You see increase sort of artificial... Well, artificiality in the war. So that was only in April. From May, that seems on reverse. Understood. But but still in your books, but it it is saying that the price growth of over 12%. So just wanted to understand if the price growth of growth of over 12%, then why we haven't got the benefit in terms of the low cost inventory and the the gross margin improvement. So that's, like, that's the point I don't understand.

30:03 Since the price growth is 12%, no growth in price. Okay. I'm saying... Yeah. Understood, sir. And, sir, in in in in terms of, you know, their revenue, I think last time you had mentioned that the India business, their product issues and got transferred to to Dhanuka's name. So just want to understand if we have booked any revenue for that product in India market or, like, that revenue was mailed in this quarter? In India market, the revenue was booked in the previous year itself. It was started on the last year. Okay. So this this... Yeah.

30:49 So you see the Yes. So sir of the product coming quarter two. Quarter one is very nominal, sir. It's a product for grape. So grape season is starting the second quarter. So major turnover will come from bioproduct, April, in the month of September. Understood, sir. Understood. Thank you, sir. That's all from my end. Thank you. The next question is from the line of from. Please go ahead. Hi. Very good evening, sir. Thanks a lot for the opportunity. Sir, I have two questions. First thing, the expansion that we are considering in Nagpur is despite having enough land in the hedge, I would assume. And you have given out the reasons for, you know, considering Nagpur as a geography for the new expansion and while having enough plan in the. Sir, any any plans further for having certain assets coming in place or anything of that sort on the on the land piece?

31:57 Because I think there are just two plans, I believe, that they are running. And, also, the land parcel that you've got in, does it have enough room for expansions other than this 23,000 tons of capacity that we are adding? That would be my first one. Thank you. Right. So the age we are setting has been set up as a chemical synthesis facility in notified chemical zone of GIDC, and this space is committed towards chemical synthesis. Chemical synthesis, as you are already aware, is completely different technologically, utilization of facilities and utilities, requirement of technical human resource capabilities is very different. We do not wish to overlap the two in terms of formulation facility overlapping with the chemical synthesis facility.

32:58 That's why this is being set up outside of the DHANUKA land in a separate. As you are also aware that formulation facilities are relatively easily scalable. As we set up this facility with automation, this would have further expansion opportunities. At Dhanuka, we have in recent past introduced more and more low dose environment friendly products. So I feel that setting up... Providing the farmer with a smaller pack size of really potent and efficient products will will be... Will take a major leap with this facility. Sir, the the Nagpur expansion, does it have more space for accommodating other assets also? Yes.

33:49 It has opportunity for scaling up. Got it. Sir, second one on one of the media interactions, I think Dhanuka Agritech mentioned that this year, we will probably have more biological products, which were pretty much absent in the last year. And I think that number was indicated to the extent around one thirty odd gross. And now if I just do the math, the the single digit top line growth that you are talking about, roughly around a 100 to one fifty odd gross thing on the overall revenues, and it seems to be offsetting the incremental revenue coming in from biological. So is it safe to assume that we'll we'll basically, we are looking at a flattish year on crop protection volumes for FY twenty seven. Is that the right reading?

34:36 We are looking at a small single digit growth, I would say. Yes. Okay. Noted, sir. Thank you. That's it from me. All the best for the next quarter. Thank you. Thank you. The next question is from the line of Rohit Nagar from three sixty one Capital. Please go ahead. Yes. Thanks for the opportunity. So just carrying on the question on biology sales, how has been the progress during the current quarter given that last year, base quarter, there was a ban and showed no sales were observed. So how has been the progress during the month of July or q three? Thank you. So out of three products, we have already introduced two, and one more is in the pipeline to be introduced pretty soon. So probably by August end, we'll be launching the third one also.

35:31 We have already received all the regulatory approvals, and most of the states, we have received the sale permission also. So we'll be going ahead with that. In addition to that, we'll introduce two more nutrition biological category products in this financial year. So the second question is on the project. Now given that this is gonna be a formulation facility, I'm sorry, I missed the earlier part in terms of what is the timeline for the project? And are there any specific benefits from the Maharashtra government to put up this project in Lahore region? Thank you. We are looking at this plan getting commissioned in q four FY twenty eight, and we have certain CGST benefits from the Maharashtra government also.

36:31 Right. That's it from my side. Thank you, and all the best, sir. Thank you. Thank you. The next question is from the line of Himanshu from. Please go ahead. Thank you, sir, for taking my question. So again, sir, harping on the CapEx, the new CapEx, basically. So maybe if you can, like, have some sort of, like, quantification in terms of the benefits which you are going to get from that project, number one. And secondly, how should one think about the CapEx numbers for '27, '28, and '29? CapEx plan for 2728 is Hello sir?

37:23 You see in terms of this, the CapEx would be around 100 rule plus. And the age will communicate later. Okay. And this we are going to incur in FY '28 or '29? 2026... 2728. $272,800 crore. Hello? Yeah. Got it. And so second question is, Raji, if you can, like, again, give a breakup of the revenue decline between volume and price for this quarter, as well as for the last quarter, if that is available with you?

38:20 That is not available with me, but this quarter is almost similar. The top line negative in terms of value 12.56, volume which is around 12.7. Okay. So there is So the Sorry sir? There is hardly any difference between value and volume. Okay. Okay. Got it, sir. Got it. Thank you, sir. Thank you. Thank you. Ladies and gentlemen, anyone who wishes to ask a question, may star and one on the touchtone telephone.

39:06 The next question is from the line of from HSBC. Please go ahead. Thank you for the opportunity. Again, on the biostimulant side, when all of this problem started, there were some expectations that the smaller or the organized players would kind of lose market share to the bigger players who do business in a more organized way. So now that you are mentioning that most of the production point, I mean, of the products would be back into the game over the next one or two months and were already introduced. Would you notice... Are you noticing any trends in terms of the smaller players kind of moving away from the market? And is it more, you know, possibility for the organized players to capture market share? Right. The design of the regulation is absolutely in track with our forecast that the smaller players and the unorganized players would probably not have enough space to operate.

40:01 Since the government started approving products late last year and many new introductions have happened over time, what is important to see is how it is implemented, how it is executed on ground, both by the central and the state governments. So various state governments are taking a very stringent view of which products and which players they approve to introduce, which kind of... It strengthens the point that the smaller and the unorganized player will have relatively lesser room to operate. So I think so it it will go in the right direction and favorable direction for us. So already in the two q, would you expect that the market shares that you or the other of an STS, they have a larger market share?

40:49 And what is... Okay. And what would you... Your expectations in terms of, you know, what kind of revenue you are expecting from the biostimulants category for for this financial year? Yeah. So since, you know, we are almost reworking the biostimulant category as almost a fallback option also in terms of how we can leverage that. And in this stress condition, how can pharma take benefit of these products? We are kind of reworking that and probably give you more details later. Okay. Sure. Second question is on the DHANUKA plant. You mentioned that the revenue in this quarter was 26 crore. Is that right? Yeah. Absolutely. So I think last year, we did almost about 50 crores, right, in FY '26.

41:34 And now that you have done 25 crores, what would be your guidance on the revenue for for the FY '27? For the age? Yes. Guidance is around 65 crores. For full year. For the full year. Despite you having done already 25 crores in in one q itself. Yeah. Because that is the start of the season. So initially, you get the, basically, demand from the market. So later on in that later part of the year, demand is not there. So in the third or fourth quarter, the demand will be less. Okay.

42:21 And are you expecting to be breakeven at the EBITDA level in this year on the day chart? Yeah. The EBITDA, we have breakeven appears to be difficult. They are trying hard, but I think it's difficult that will be around... In the range of around negative four five CR. Difficult to Okay. And possible to also share the guidance on the payer products for FY '27? Payer product, you see, in India business, are already aware in the part of balance sheet. In terms of the other, I see work is going on. We are already, see, incorporating two companies, one in Brazil and one in Europe.

43:08 And some distributor have wondered, I think, sugar is now difficult to share. But not a very significant portion will come in in our balance sheet this year. Not significant amount of money will appear in this year. Okay. Understood. One last question. You mentioned that the the swing trend was weaker for for one q. But now that we noticed in the the soybean progress, the soybean for soybean and cotton have improved meaningfully. Right? That's right. So soybean, I think you have a, you know, very successful product by the brand name first two years back, which suffered last year. But then with the recovery in this soybean, sowing, and also on the cotton side, can some of the products that you have in portfolio benefit in two q and some of the loss that you face in once you put the reverse?

44:01 So these products have a particular segment, which is mostly in first fortnight of July, but preferably in second fortnight of June. So, no, I don't think so. But then these, we decide, would have a play opportunity for now. Okay. Understood. Thank you, all the best. Thank you. Thank you. The next question is from the line of from Dhanuka Agritech Limited. Please go ahead. Hi, sir. Thanks for the opportunity again. I just had one question. Because of this monsoon deficit, one thing that we see is that the sowing is lower compared to last year.

44:47 Just wanted to also understand, do you also have some stress at farmer level? And would you think that they would not want to spend so much money on crop protection this year? Well, we kind of thought this, you know, even when prices are going up significantly towards March end. But as things would turn out on one side, March, vegetable prices went down for a while, but then April, May, and early June also saw significant uptick in vegetable prices and thus significantly increased consumption of horticulture products also. I think so it is both ways. If the acreages would be slightly lower, then the farmers who are less with more acreages would have more opportunity to invest because commodity prices would be ranging higher.

45:44 So the demand supply balance, how that appears is something we are also watching. What will certainly be impacted is where irrigation is available versus where irrigation is not available. So where irrigation is available, which is almost 60% of the Indian agriculture, would certainly have higher consumption as well as higher investment in crop protection as compared to where irrigation is not available. Their farmer will go for low cost or no no spray options. Got it. Got it. Very useful. Very useful. And second was that although monitoring is in deficit, have been reports that the reservoir levels have been quite healthy. Despite this, when we see that this has been lower, you mean that it has been delayed. Right?

46:33 It is not as if the acreage has reduced. I'll respond to that in two parts. First of all, please do share with me the list of those reservoirs which are healthy so that I can talk to my team also. In my understanding, the reservoir health is significantly depleted, and, you know, we are still paying for more rains. Yes, sowing has caught up in certain pockets where it has rained well in July. And the acreages, sown acreages have become healthier to that extent. Got it. Got it. Thank you so much, sir. Wish you all the best. Thanks. Thank you. Ladies and gentlemen, that was the last question. I would now like to hand the conference over to the management for closing comments.

47:26 Once again, I would like to thank all our investors, analysts, business partners and stakeholders for their continued trust and confidence in Dhanuka Agritech Limited. We remain committed to building a resilient innovation driven chemistry forward and farmer focused organization that creates sustainable long term value for all stakeholders. India Thank you, and goodbye. Until next time. On behalf of Dhanuka Agritech Limited, this concludes this conference. Thank you for joining us and you may now disconnect your lines.