Epigral (NSE:EPIGRAL) Q1 2027 Earnings Call

0:00 Ladies and gentlemen, good day, and welcome to Epigral Limited's Q1 FY 'twenty seven Earnings Conference Call. As a reminder, all participant lines will be in a 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 Arya Patel, MK Global Financial Services Limited. Thank you, and over to you. Thank you, Abhirat. Good evening, everyone. Today, we are here for EPIGRAL Limited's Q1 FY twenty twenty seven earnings conference call. We would like to thank the management for giving us the opportunity to host the earnings call. On this call, we are joined with Epigral's management, represented by Mr. Muralik Patel, Chairman and Managing Director Mr. Kaushal Subpartar, Executive Director Mr. Rakesh Agrawal, Chief Financial Officer and Mr. Milan Koteja, Investor Relations and Strategy.

0:58 I would now like to invite Mr. Mohit Patel to initiate the proceedings with his opening remarks, post which we'll have an interactive Q and A session. Thank you and over to you, sir. Thank you, Ada. Good evening, everyone, and welcome to the call to discuss EPIGRAL's quarter one FY 'twenty seven performance. I believe you had an opportunity to view the earnings presentation that was released earlier today. Quarter one FY 'twenty seven presented a highly challenging operating environment across all the segments, including chemical. The ongoing waste Asia conflict directly impacted the cost structure for both raw materials and finished goods. Furthermore, severe disruptions to shipping lines led to the transit delays and the logistical constraints.

1:45 The market volatility made business execution difficult. However, we are seeing a visible recovery compared to operational level, and we expect the macroeconomic environment to stabilize and improve as we move forward. Even against this volatile backdrop, Epigral demonstrated a resilience, delivering a revenue growth of 15% and EBITDA margin of 25%. This performance was driven by the increased sales volume and improved realization. This growth was primarily on account of diversified product basket of the company. Our diversified product portfolio provided a critical resilience in this challenging quarter.

2:32 While certain segments faced headwinds, our alternative product lines set into the offset this impact and the subject of our overall growth momentum. We firmly believe that as we further diversify, it will enable us to deliver consistent growth over a longer period of time. Our ongoing capacity expansion projects for Epigral Limited and the CPVC rating are progressing as per time line and within budget. With demand for both the products projected to maintain a double digit CAGR over the coming years, our enhanced infrastructure is perfectly positioned to capture India's expanding market and drive performance. I'm also pleased to announce that our Board has approved a strategic CapEx plan for two new projects.

3:24 We are entering into the epoxy resin and formulation with a capacity of 125,000 tonnes per annum and setting up a multipurpose plant. Epoxyribene and formulation is a critical material used for high performance and quality driven application. As India grows, the demand for high quality infrastructure development, automobile, renewable energy, electronics is increasing rapidly and leading to the growth in the demand for epoxy resin. This move is strategically significant for the company as a material required for manufacturing epoxy resin, including epichlorohydrin and the caustic soda are already produced within our integrated manufacturing complex.

4:10 More than 50% of the raw material value for the proposed projects will be sourced internally, further strengthening our integration advantages and operational efficiency. In tandem, the company is setting up a multipurpose plant to manufacture downstream products of the epichloroietin and the chlorotolium. This facility is aimed at addressing the growing domestic demand for pharmaceutical and hydrochemical intermediates and water treatment chemicals in India. In line with our phased development approach, we are also establishing a pilot plant facility for both epoxygenase and formulations and the NPP multipurpose facility, which is expected to be operational by quarter two FY twenty twenty seven.

4:57 This pilot facility will help validate product quality, optimize manufacturing processes and facilitate early customer approvals ahead of full commercial scale operation. This strategic expansion marks our forward integration into the advanced materials and the specialty chemicals segment while further strengthening our integrated content. This investment reflects our ongoing commitment to building a highly integrated manufacturing platform and diversifying our portfolio to deliver long term stakeholder value. I now hand over the call to Mr. Rakesh Agrawal, who will take us through the financials. Thank you. Year on year revenue increased by 50%, 15% to INR $70.09 crores compared to INR $6.15 crores in Q1 'twenty six. On an account, in sales volume and also because of the increase in realization.

5:54 EBITDA in absolute terms increased by 10% to INR 179 crore compared to INR 163 crore in Q1 'twenty six. EBITDA margin stood at 25% versus 25.7% in Q1 'twenty six. PAT grew by 25% to INR 99 crore versus comparable adjusted PAT of INR 79 crore in Q1 'twenty six. In fact, in the corresponding previous quarter, we have announced a profit of INR 160 crores that includes INR 81 crores on account of the deferred tax adjustment. So after adjusting the PTT of INR 79 crores, we have complete. ROCE stood at 16% as on June 30 versus 24% as on 06/30/2025 due to dropping earnings for trailing twelve months and also because of sizable capital working progress.

6:45 If you remove capital working progress, then ROC stand at 18% for q one twenty seven. Net debt to EBITDA stood at point 8% as on June 30, which is point six as on 06/30/2026 on account of lower earning for trailing twelve months and also debt increase. We we have spent rupees 62 crores on CapEx in q one twenty seven. Our net debt stood at rupees 474 crores versus 439 crores as on 06/30/2021. With this, we can now open the floor for questions. Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question, may press star and one on the touch tone telephone.

7:30 If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we'll wait for a moment while the question queue assembles. The first question is from the line of Neeraj Jamuria from Anvil Wealth. Sir, a few questions. So first on the Epoxy side, let's say, you can help us explain that capacity announcement is predominantly for the LER or it also includes the value added products? So this capacity which we have announced, this is including LER and value added products in the population as well, yes.

8:21 Okay, okay. But predominantly, this 150,000 tonnes of capacity would in result can produce up to 150,000 tonnes of LER. That's the right assumption to make? 125,000 tonnes, which we have announced. No, Eylea will be a little bit lower price, but it is a mix of all products including Eylea, this capacity. Got it. So our plan is very clear, 50% of the epichlorohydrin you would like to consume in house and 50% we will sell continuously in the market. Correct. Correct. Correct. And when we convert data expansion of new CapEx of epiglurizing. Perfect. This total capacity of the company will be... Eventually, it's around one lifetime. So out of 50%, we would like to consume in house in the and its derivative, and remaining 50% we will sell in the market.

9:17 Perfect. And when we convert ADR into value added products, predominantly the additional raw material required would be bisphenol, right, and not the ECH? Right. Perfect. Sir, just continuing here, where do you see the markets moving for the Epoxy over the next three, four years? And if you can also help us understand which of the user industries would be driving this growth? Also, if you can help us explain what's the current market size for epoxy resin divided between ADR and the value added products? Yes. So the epoxy market, as we know, it will be majorly consumed in India, specifically in the windmill blades. It It will go into automotive industry. It will go into construction industry. And then again, it has applications in various other downstream products, which are yet to grow in India.

10:13 And considering current situation, the demand for epoxy to our estimate is around somewhere around two lakh 50 to three lakh tonnes and which we expect to grow in a double digit percentage from year on. So considering that, the additional supply that will come from us, I guess, it will easily absorb in the market considering the way India is going for all the quality kind of products, and that's where the demand for this should go up. Perfect. So what would be our focus? Then more point, we are also expecting because in Europe, all the chemicals plant are difficult to survive. So we believe that eventually it is going to be exported from India once the agreement is done. So we are at par with other Asian players.

10:58 And and being at a very logistical point of view, we are near to Europe, So we consider that Europe is also going to be a big market going future once the FDA agreement is done with India. Correct. I was just coming to that point. So what would be our competitive advantage here? So because we have a backward integration in terms of ECH as well as the caustic soda, so the competitive advantage would be more based on the lowest cost production of LER or would it be based on the differentiated products, which is generally required for the export market? It is going to be both as a backward integrated as well as we will have a mixed portfolio. We will start with basic product, and eventually, we will go into the specialty.

11:45 That's the priority as of now. But... Yeah. Correct. And according to your best estimate, like, in terms of the value added products, how much is the approval time from the customers? Because there, the customers are generally stickier in terms of the materials from where they are purchasing on. So considering that point, where do you see the approval cycles from the customers, specifically from the value added portfolio? So that's a very good question. Must have seen in my presentation, I mentioned about the pilot plan. Correct. We are dedicating a pilot plan, and we will take approval of the customers wherever it is required. But, you know, in epoxy related market, not all applications require a customer approval wherein anyone, and it takes time. Certain applications, it is taking time, but not all applications. So definitely, initially, once we start a plan, we will start with basic thing, and eventually, we'll go into the specialty.

12:48 But we are setting up a pilot plan just to make it efficient once we commission both the plant epoxy as well as our existing multipurpose plan as evaluated product of EPIGRAL as well as chlorotridine. And so we can able to use once we commission it before that we are able to use and produce all the all the batches and the products and and the customer trials and approvals is done well in place based on our past experience. We do not want to delay that. So that's why we have invested in last six months in the pilot plant, which is going to be commissioned by September this year. So we have enough time for the pilot facility to commission product to product application wise and by the time we commission our both the projects.

13:38 Perfect, perfect. The second question is on the chlorotolines. So where are we currently in terms of the product placement in the market? I mean, are we selling the base products of ring chlorination where OCT, PCT, 34 DCT are the products which forms there? Or are we also doing photo chlorination and the cyanation products, which have a slightly complex process and a better realization. So where do you see this business moving over next one or two years in terms of going into the complexity of process and hence the profitability part? So yes, it's a good question, Suneetu. And I think we learned from our past couple of years' experience about the chlorotolium because it took us a lot of time to take tour because of we don't have the pilot facility for the trial that is which customers of pharmaceuticals and that is hypochemicals, which takes their approval from their CDMO customers.

14:39 And that we realized, and I think this time, because we plan our expansion, we would like to set up a pilot plan, as I mentioned. And and that is the reason. And definitely, as you mentioned, the OCT, PPT or any dichlorotolium derivatives, which we are planning as a photo chlorination. We would like to go downstream as much as possible as the intermediate. And based on our learning of last two years, we have identified a couple of products which has a much higher potential than what we have set up a plant in the first phase. So definitely, existing product portfolio of chlorophyllic, we are expanding along with epigluridine derivatives, which is used for the water treatment chemicals intermediate, which are currently imported directly into the end application, which also wanted to cover in our existing multipurpose plan also. Correct. So the base products of chlorotolines are currently getting sold.

15:36 It's like going into those complex processes and the products now based on this pilot plant, we would be moving ahead with those products sooner. Yes. And as you stated, our eventually, our goal is to target probably next three years' time, our target is to reach once the multipurpose plan will be commissioned, our target is to reach also derivatives, specialty product portfolio, which we are producing in multipurpose plant along with the chloroform derivative. We wanted to close to around 500 per revenue we would like to target. That's our first phase, first milestone you would like to achieve it. And this should be in FY '29 or it could be sooner then? Yes, it could be in FY 2029 because in FY 2028, we are targeting to complete the NPP. So the ramp up will happen gradually, so maybe FY 2029 or FY '30.

16:33 Perfect, perfect. Sir, last big question. So what were our ECU realizations for first quarter? And if you can also share for Q4 of FY 2026 would be very helpful. So Q1 FY 'twenty seven, the ECU was around $35,000 $36,000 Okay. And for the fourth quarter? Fourth quarter, it was around 38,030 thousand? Yes, three-zero. Okay, fine. And last, if I can just squeeze on, what were the capacity utilization for caustic soda, ECH, CMS and CPVC business for Q1? So caustic soda, it will be having around 75%.

17:18 ECH was around again, around 70%, 75%. ECH CPVC was around 50%, 55%. Fluoromethane was around 100%. Okay. And peroxide? Around 85%, 90%. Perfect. Thank you so much and wish you all the best. Thank you. Thank you. The next question is from the line of Rohit Sana from Suniti Securities. Please go ahead. Yes. Thank you for taking my question, sir. Some of my questions are already answered. Just a couple from my side. One is out of the INR 600 crore CapEx, can you give us the breakup for this I mean, how they're focusing in NPPs project?

18:09 Rohit, it will be difficult to give the breakup as we we... As in announcement, we have kept the combined. Okay. Okay. Fair enough. And just wanted to understand as we are adding our ECH capacity, I mean, doubling our ECH capacity from 50 to 50,000 to 100,000. And here, for as well as MPP would be requiring ECH. So just after these, as you are saying that 50% would be consuming internally, would that be enough? I mean, for all these one twenty five thousand epoxy and MVP, I mean, 50% would be available for sale, or would there be further you can take on them? Or from the In the NCP plan, which is other than epoxy application, the quantity requirement of epigral is not that big.

19:11 So, definitely, we will continue on our customers, which we have gathered so far. We will continue going forward also. So, definitely, as I mentioned, 50% of the EPIGRAL will remain for the existing customer, which we are gathering right now. Got it. Got it. And, sir, Epoxidation, we're adding margins for overall combined business will remain in that 22, 24% kind of range which we were guiding earlier or any changes in that? Definitely, Epoxy is... You know, if you say compared to... It's a high turnover in terms of volume gain compared to other products what we have in the basket. But, definitely, EBITDA margin will be much lesser because if you see the... Compared to the investment, the ratio of turnover in the is almost four times, which is almost three times higher than what we have... We are having right now in our existing portfolio.

20:18 So definitely, EBITDA margin in terms of percentage, definitely, it is coming lower. But in terms of the absolute value, I think it is it is substantial value for the company. And just to add to that, we are... I mean, whenever we evaluate project, our focus is ROCE. So in that way, Epoxy, even with that kind of margins fits in the ROCE bracket that we generate target for. Fair enough. Fair enough. And just a last question on the CapEx of this INR 600 crore, at peak level, what kind of return revenue would be generating? A peak? Combining both the project. Combining both the project, the peak can be in the range of 1,000 to 1,500 a year.

21:07 Got it. Sorry, my mistake. Mistake, 1,300 to 1,500 a year. Okay. 1,300 to 1,500. Fair enough. That's it from my side. Thank you and best of luck. Thank you. The next question is from the line of Abhinav Mandovra from Equitas Investments. Please go ahead. Yes. Thanks for the opportunity. My first question was regarding the current closing realizations for Q1 and current. And you mentioned ECU realizations for cost is in the range of 34,035 thousand. What are the current realization as of today? And since the situation has prolonged, do we see caustic inputs coming in and any supply side disruption happening around that? Hello? Sorry, can you repeat your question? Your volume was bit low.

21:58 Yes. Yes. Yes. Yeah. My first question was regarding the chlorine realizations for q one and currently. And for EC realizations for q one, you mentioned 35,000 range. What are the current EC realizations? And since the war has prolonged, do you see caustic being imported and any disruption happened over there? The chlorine realizations have been in the range of around 1,000, negative 4,000. And the issue for the quarter was quarter one was around 35,000. And we considering current when the things have pulled off a bit, the issue currently also has been in the range of around 31,000, 32,000. Okay. And what are the current PVC prices?

22:48 Sorry? So currently, there was an MIP which came last... Yesterday, and the PVC prices have increased. So it is around $85.84. So does this create a negative impact because this will be a new floor? And could you help us with the impact on the PVC? So PVC is a raw material for the CPVC application. And normally, if you see the major difference was coming from globally, it is coming from a carbide based PVC. A carbide based PVC, which is made out of coal that is having a lower price than the ethylene vein PVC. So I think because of the MIT major effect was on the carbide based PVC, not on the ethylene based PVC. So we use ethylene based PVC, so I don't think so.

23:36 Is there any major impact? But I think it is supporting of people who consume PVC, which compared with our CPVC, they don't understand sometimes. We cannot manufacture CPVC from the carbide based PVC. So that's why it is easier to convince our customers because because of the MIC. So we can pass on the entire incremental price. Right? Not immediately, but, yeah, gradually. But it it it helps us to convince our customers in the CPVC industry that we cannot compare with any kind of PVC as a CPVC application. It only for... If we can manufacture good quality of CPVC only from the ATM based PV. Got it. Also, in the caustic space, we've seen a lot of capacity addition across the last couple of years, across a lot of players, and majority of it was exported to a couple of places.

24:33 Now since there is a lot of supply chain problems, do you see that the domestic space, there is lot of competition given that your capacity utilization has also decreased to 75? Yes. That is true. You are right. What we have forecasted our CPVC growth, which was not came compared to last year and this year. But normally, we are expecting because now the CPVC pricing and the PVC pricing, the difference is not big in a huge way. So majority of the applications, which is used for the PVC also are converting into the CPVC application, not only for the hot water pipe application. So the volumes, we should see now the increase in the current financial year and going forward also.

25:23 But, yes, you are right that as a CPVC growth because of the PVC fluctuation was so high in last six months. So there is a effect in terms of inventory of purchasing from the... All the customers of pipe. So they are controlling their the CPVC or the PVC inventory in a controlled way, and that's why the consumption has also affected. And the and the plant is also running little lesser capacity. But we see normally the current quarter also because of the monsoon season. This is always the case in a... Throughout the year. You know, if you see the sales will start from quarter three and quarter four is a major two quarter considered as a CPVC for the major growth in in the country.

26:09 Right. So my question was mainly for caustic. So caustic also, we've seen a lot of capacity additional of volume, capacity utilization, data use. So I just wanted to understand because last couple of years, our capacity was building costing, which was getting up, like, quoted, which because of current war, like, scenario, supply chain is disrupted. So could you help me in the caustic space? So caustic, believe, you know, because of the the ways of alumina expansion is happening in the country. So we believe we are going to be net import of caustic continuously in India. In respect to the capacity addition will happen gradually, which people have announced in the past.

27:01 So so I don't think so India will be surplus. Definitely, once the plant is commissioned, and that plant is also going to commission in a gradual way. So as as our... Based on our past experience, irrespective, you know, wherever the caustic expansion happens, definitely, you will face a challenge for a couple of years. But, eventually, as the country is growing there in terms of the application, in terms of the consumption, in terms of the downstream application, in terms of daily use, as well as in the admin application. So we don't find that it is... Eventually, that whatever capacity we are adding, eventually, in the future, it will be absorbed. So Good. Definitely, for the short term, we face the issue, but not in the long term. Got it. And in terms of Epigral,, etcetera, etcetera. So do you think this will also be a domestic substitute or, like, ECS, we would also be trying to export this?

28:03 No. This is definitely right now our long term goal and approach is is to capture our customers in India only because, you know, India's market is growing continuously because, mainly, it is used in infrastructure based application, and that is growing even in the renewable energy. Windmill is also growing. So our target long term is that... But, you know, if once we commission the project, because, you know, certain size of the project does not make sense to set up because when we set up a project, we keep all within the mark, in the mind that we are doing it for next three to five years period, you know, once we commission the project. So, initially, if we might need to export and and and the situation in Europe, as I mentioned in the past, that is is a little tight, and and there is a possibility, and we are going to be at par with other Asian players also once the FDA agreement done in Europe.

29:03 So initially, we might export, like, other products which we have done in epigluridine in the in the in the other product also. So same time, you know, initially, we will export, but, eventually, this is going to be better to the domestic Indian market only. Got it. And what are the current ECS realizations? Current ECS realization is is almost close to around, you know, $1.80 to $1.85 rupees. Yeah. So the prices have reduced. It was around 200 to 10, right, earlier? Yeah. It is compared to all the products which was there during the war time, it has gone to peak. That has reduced. And again, now, you know, it has gone down to one seventy five levels, and I think it is now going up again to one eighty five to one ninety level.

29:54 So it is going up and down based on the situation in the global scenario right now, ups and down based on the oil price and the logistic cost. And how much will be your power integration currently, and what is our foresight going forward? So we are very clear. You know, we are not going to invest further in the battery power plant. Whatever we are going further, the energy requirement is going to be catered from solar and wind hybrid agreement, which we are doing with the different suppliers on a long term basis. So we already have a 20 megawatt hybrid arrangement with one particular agency. Now we are doing... Already we did another contract of 20 megawatt and going future as and when our energy requirement will increase, we will add more and more solar and wind in the future.

30:41 So there is no no great advantage to set up a capital power plant at this moment of time, where the government has given a great advantage by doing a long term agreement with third party. And you can reduce your cost as good as your captive power plant. Got it. Got it. Thank you so much. I'll get back in queue for further questions. Thank you. Thank you. Thank you. The next question is from the line of Harshita Senganya from Robo Capital. Please go ahead. Hello. Am I audible? Yes. Yes. So congratulations on a great set of results. So just to get a clearer understanding, so from the 600 kuros CapEx, you're adding, like, around 1,300 to 1,500 p... Peak revenue... Peak revenue.

31:27 So would that take a, like, total peak potential to, like, around, say, 4,000 to 4,500 kuros? Is that the correct understanding? Seeing we are, like, close to 2,500 crores and... 2,500 crores, and we have, like, done quite good utilization. No. See, when we are at I mean, last year, we ended with 2,500 CR at that point of time, we have still capacities that can be ramped up. Plus, along with that, we have commissioned the capacity. So like chlorotoliums, caustic soda, CPVC, existing capacity can further contribute in FY 'twenty seven. Along with that, we have we are expected to commission our initial capacities of ECS and CPVC in a couple of months. So that will further add. So if I put together that numbers of the epoxy resin and the MPP over a period of time, we should land up somewhere around 500,000 CR once all the plants reach optimum level.

32:30 Okay. And so in the PPT, you have mentioned that the addressable market is going at 10 to 13%. So do we expect the company to, like, go at a faster rate or at a similar rate? See, we always aspire to go at the range of 20%. That's the internal target or even higher than that. So definitely, we would like to do that. But on... If you ask me then on a, like, three, four years period, we can go in the range of 15% to 20% CAGR. So one year can be here and there because of x y z reason. But the way India demand is growing and the plant that the capacity that we have, eventually plant will ramp up, and we can have a CAGR growth of 15% to 20% for next five years. And this is on the top line or in the bottom line? We target for both top line and bottom line.

33:18 Okay. Great. I think that's it from my side. Best of luck. Thank you. Thank you. The next question is from the line of Sakshi Trivedi from Sanko Mutual Funds. Please go ahead. Hi. Good afternoon, everyone. My question is regarding MPP projects. Like, we have we are known that we are going to announce and other things. So how it is... MPP project is... How it is different from Epoxy and FR? Sorry. Your question is that how MPP is different from Epoxy and? FR. Like, what is the end user use or what type of product we are going to do in NPP project? In NPP, you know, we are targeting all chlorotrovil derivatives and the epiglorohydrin derivatives, which is mostly in the water treatment chemicals, which are used in the pharmaceutical intermediate and the agrochemical intermediate.

34:15 And epoxy resin and the formulation is mainly going into the infrastructure based activity, including renewable energy and the automobile also, and the coating application also. So this is two different end use application and the customer base. Okay. And second thing you have talked about, like, current EBITDA margins is around 25 to 26%. And after commissioning of Epoxy, it will be reduced. Then how much estimated margin we are expected from the 600 kuru project? See, it is difficult to give a number in terms of margin as I mean, in terms of the epoxy, it's of a lower margin, but higher fixed, so our ROCE will be intact. So what I can tell you is that going forward, or we would always target to have an ROCE around 20%, so we are targeting for that.

35:08 Rather than giving guidance on margin, I can tell you that ROC, are targeting in the range of 20%. Okay. Okay. And, like, currently, we have seen so much uptown in ECH while doing selling prices or higher listing prices as well. So what is the, like, projection for future? Like, are we expecting margins as per board approval or something different for lower margins? Actually, when we... Whenever we consider projects, we don't consider based on the current situation because this is abnormal situation. The current prices and the situation which is going on in the world, which is not going to sustain for a long term point of view. So always when we consider a project, we always calculate based on the pre war situation, what was the normal situation, and based on that, we can see the project, and what is approving based on that data and number.

36:04 Okay. Okay. Got it. That is from my side. Thank you. Thank you. Thank you. The next question is from the line of Manish Badane from three sixty one Capital. Please go ahead. So thank you for the opportunity. So my question is on the Epigluride trend. So as the Indonesia is implementing the B50 biodiesel standard and as the glycerin is the byproduct of the biodiesel. So given that glycerin is a byproduct, so how do you see this impact to the glycerin prices? So your question is regarding the biodiesel? Or My question is regarding the diesel in prices. As a EPIGRAL, think, is in diesel in the by product of the biodiesel.

36:51 So if the... They are moving from the Indonesia moving from the b 40 to b 50. So given that they are moving to b 50, so biodiesel will increase. So as the supply of the diesel also increase. So want to understand, like, like, how you are expecting the issues that will be? So to be very honest, you know, this is helping in terms of this is based on the power reasons. This is based on the palm oil base. Of majority of the product, which is coming on the palm oil byproduct coming out from the biodiesel. So in the current situation where the crude oil price is not stable, and because of that, the propylene price is not stable. So propylene is a competition with glycerin.

37:37 So definitely, it has been the current situation. The way the crude oil price is fluctuating, the glycerin price has not fluctuated that much. But at the same time, logistic plays also a major role. So logistic costs have improved... Include... Increased continuously in all the products globally because of the cruel price in the current scenario. So that much effect has come on the glycerin, but there is nothing to do with the current situation in the glycerin price. You know, the part is a policy and based on the glycerin decides which way it is moving at palm the plantation of the palm oil and how is the production is coming out in every year based on that glycerin is moving rather than moving in a...

38:26 Moving along with the along with the propylene or the crude oil base. Yeah. So this is completely different. There is no relation with the crude oil and the current situation. Oh, no. No. I'm not asking about the crude oil. So my... Okay. What what I'm asking is that as a of of the of the biodiesel, glycerin is a raw material for the ECF. Right? So if the glycerin... If the biodiesel is in the high production, sort of the supply will increase. If the supply will increase, then the price of the glycerin will correct. And if the price of the will correct, so the will also get correct. So that is what I have. K? Are you expecting the will have a pressure on the realization front? So that is true to some extent, but it is not only these sectors which affect the glycerin price. You know?

39:16 Sometimes the the palm oil price also equally... And then the people... You know, it is like when you are calculating your energy cost, you are... You know, you will need to take care of your byproduct also. So people are considering the pricing of both the product in a same way. You know, you can't neglect byproduct. That's why it's free of cost or something. So whenever... Palm oil is also placed... It's... You know, it is also very important factor in the designing the price of PC. Not only if if you said, you know, it is a byproduct only, so you can neglect in terms of the cost, which which is not the case. But you are right in your understanding that this is a byproduct when there is a pressure. It is true, but normally, now the glycerin demand is globally depend on the season.

40:06 It is also increasing, and sometimes it is down. So it depends on... There are a lot of other factors also deprive the price of glycerin, not only as a byproduct, you know, it is deciding factor. Okay. Got it. Got it. Thank you so much for the second question. Thank you. The next question is from the line of Prathy Khoza from Systematics Group. Please go ahead. Yes. Thanks for the opportunity. Just one question for. So your voice is not clear, Prati. We can't hear. No. So my question was the question was on CapEx.

40:54 So for FY '27, I guess the CapEx is around 42. So what would be the CapEx for FY '28? FY '28, I think the CapEx will be in the range of 400 CR. So 27 and 28,400 crores. Yes. And the tax rate would be around 25%? Yes. That's right. Got it. Yes. Thank you. Thank you. Thank you. The next question is from the line of Poojan Shah from Molecule Ventures. Please go ahead. Mister, Hello. May we request you use a microphone to ask a question? Sure. Sure.

41:50 Hello? Yes,. Yes. Okay. Okay. Yeah. So first question would be on the other EPIG side. So we are spending around INR 600 crores. So how much will be for the internal and how much will be... Will take the debt? So around 60%... 40% will be from the internal, 60% would be from the debt. Okay. Got it, sir. And just to understand the current current scenario of the CPVC side, we have seen a quite a volatility in PVC. So just to understand, one of first is how we are able to procuring the raw material because ethylene base... So we have seen the major of... Majority of the facility of EDC are built out of MiraLeast, and that has been impacted. And that's where the price has been spiked.

42:43 And so just want to understand how is the current situation currently, and are we able to procure the availability? Obviously, facing some issues on the procurement of PVC that is impacting the ultimate impact on CPC. Yes. So what you said is true. Things were a bit volatile in the full quarter and especially in April and May, but things had a bit stabilized then once the it was kind of a piece of But again, because of the situation which is happening in the market, the situation is, again, the prices are going up. But again, current prices are going up because of the MIP. So I guess, overall, because of this, there should be a stability in the price.

43:28 And I guess, if I look at from a long term perspective, this will kind of bring a stability and it will be good for overall market put together. So we are positive on this rather than thinking on the other way around. Right. And so just to understand on the current realization of CP, what is the current realization is pertaining right now? And what is the hike we are expecting after increasing the PVC price due to MIP? That thing has been already factored. Currently, the CPVC prices will be in the range of 115,110. So again, now the again, how much the price will go up? Because I the impact might come because of the issue in the globe West Asia, where it's crudely been betting. But again, time will tell. It's too early to comment how things will pan out in the coming next two months.

44:20 So what I'm asking Just just to answer your question, you know, the Italy based PVC price was already on the higher side than the MIT was declared. So I don't think so any major impact will come on the CPVC pricing. Because it's a But in the last year, you know, it will affect only the coal based PVC, which people are using for the PVC application. Got it, sir. Got it. Because why I'm asking the similar question is because the PVC in the previous cycle when the oil was spiked, the prices were inch up to $10.05 or $10.10. I think that was the pricing which was being inched in the PVC. And there was a sudden fall to 75. So in that meanwhile, we might have hold some inventory, which might be beneficial.

45:11 But ultimately, right now, the prices have been spiking up and CCV is not. So that might be shrinking our EBITDA margin a short term period. So that's why my question was in a similar range. It's it's too... I mean, difficult to look at numbers on a quarter to quarter basis or on month to month basis. Year put together in this side or that side, things get stabilized and we'll end up at the reasonable kind of complete level margin. Yes. And last question would be on the CPC because also demand is pretty weak right now, and we were expecting in q two that the demand might be revived. But but what is... What has been happening is the industry is facing additional capacity from.

46:01 Obviously, they have started, and, obviously, we will start our own facility as well of 75,000. So how do you think the situation will pan out for FY twenty seven in the CPU side? See, in India, when the companies are expanding, definitely, is a for some point of time. But this this customer approval and and enhancement of the plant is also... It is taking some time. It is not that easy. So to ramp up and to reach that optimization, it will take time always whenever people are expanding their capacity. And same time, as I mentioned, in India, it is continuously growing. So eventually, this capacity will be absorbed in India. And based on that, people are expanding the capacity of the PCDC.

46:49 Yes. But you are right that in... For some point of time, there is an overlapping end and and the over over over capacity will be there. But in the long term, we are very positive in terms of the growth of the the infrastructure which is happening in India. Got it, sir. Thank you so much, and all the best for the current year. Thank you so much. Thank you. The next question is from the line of from Equities Investments. Please go ahead. Mr. Mandobra, your line has been unmuted. Please go ahead with your question. Yes. My question was regarding demand supply and pricing scenario for our hydrogen peroxide and chloromethane.

47:36 And second follow-up was, why has the caustic current utilization have been reduced from previous quarters? No, no. This is normally, we are running at full capacity only because of some technical issues, we might reduce the capacity in terms of hydrogen peroxide or the chloromethane plant. But, yes, major variation in terms of the gas price and the methanol price, it is happening right now because of the war situation, methanol prices are very fluctuating, and hydrogen peroxide is we are generating as a co product along with the chloroalphae, but most of the other competitors, are producing from the natural gas. So because of that, there is an uptake in terms of the hydrogen peroxide currently because of it is directly related to as a complication, it is largely related to the gas consumption.

48:29 That's it. A major issue in terms of the consumption at this moment of time. Okay. Thank you. The next question is from the line of Rohit Nagraj from three sixty one Capital. Please go ahead. Yes. Thanks for the opportunity and congrats on sequentially good performance. Just one question on the chlorotonians front. What is the total CapEx that is envisaged on the project? We did some CapEx for the base chlorotolines, and now we are expecting forward integration into value added products. So what is the total CapEx and what could be the overall ROC requirement just to understand that there would be possibility that some of the base chlorotolines would be used for...

49:16 I mean, captively consumed for forward integration. So overall basis, what is the total CapEx and what is the ROC that we are expecting? So in terms of CapEx that in gross volumes, we have done CapEx around two fifty PR. And again, once the plant reaches at optimum level, the revenue would be in the range of 300 to $3.50 CR. And again, once the multipurpose plant commission and that starts ramping up, that all put together, we should end up in the range of $708,100 here kind of top line. Okay. So this is the consolidated top line including the previous project and the New York entity CapEx?

50:03 Yes, yes, yes. And hereto, our expectation is the 20% to 25% margins and probably a gestation period of three to four years to reach the peak utilization? Yes. So the estimated margin would be in the range of 20 to 23% kind of things. And again, once we commission the plant, it will take time to ramp up, maybe one point five or two years' time to reach the optimum level duration levels. Ladies and gentlemen, we will take that as the last question of the day. And I now hand the conference over to the management for closing comments. Good evening, everyone. In conclusion, I would like to convey that we are moving in line with our strategy through our expansion plans and diversification.

50:55 In terms of multi product catering various industries, We are targeting consistent growth. I would like to thank you all for joining us here today. Please feel free to reach our IR if there are still any unanswered questions. Thank you, everyone, for your participation. Thank you. On behalf of EPIGRAL Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.