IG Petrochemicals (NSE:IGPL) Q2 2027 Earnings Call

0:00 Ladies and gentlemen, good day, and welcome to IG Petrochemicals Limited Q2 and FY 'twenty seven Earnings Conference Call. This conference call may contain forward looking statements about the company, which are based on the beliefs, opinions and expectations of the company as on date of this call. These statements are not guarantees of future performance and involve risks and uncertainties that are difficult to predict. As a reminder, all participant lines will be in a listen only mode and 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 Mr.

0:47 Pramod Bandhari, Chief Financial Officer, IG Petrochemicals Limited. Thank you, and over to you, Mr. Bandhari. Good afternoon, ladies and gentlemen. Happy Doctor. It's a special occasion I thought to first issue today. Thanks for joining this conference for Q2 H1 FY 'twenty seven earnings call of IG Petrochemicals. Joining me today is the HJ, our Investor Relations adviser. Our financial results and investor presentation have been uploaded to the store machine and also available on the company's website. I hope you had the chance to go through them. I will begin with a short overview on the industry and then take you through IGPL operating and the financial performance for the quarter and half year ended September 2026. In terms of industry overview, the first half of FY 'twenty seven was mixed period because in India, the infrastructure is spending, manufacturing activity and healthy industrial demand continue to support our downstream industry.

1:43 As a result, the Indian chemical industry remains resilient or gradually moving up from cyclical weakness towards the most global At the same time, on both Sorry to interrupt you. We lost your order in between. Can you repeat the last few sentences one second, please? Global commodity chemical market remained competitive with oversupply continued to weigh on the prices and profitability. At the same time, ongoing tension in The Middle East created a near term uncertainty, particularly among the energy prices, supply chain and the logistics. This kept the price of key raw materials, including also joining with several other key raw materials or intermediate products across the value chain volatile during the period.

2:32 These developments are also enhancing sourcing preference and with the customer placing greater value on the assured delivery, consistent quality and reliability of supply. With near term volatility may continue, our long term view on the India chemical industry remain positive. Rising demand rising domestic demand shift in the global supply chain, infrastructure growth and favorable government policies continue to provide a strong foundation to the sector. In terms of competitive the fundamental of our business have continued to serve us well. IGPL is the largest producer of phthalic in India and among the world's largest producer of phthalic. This position has been built over the several decades on the manufacturing excellence, operating efficiency, product quality and customer reliability.

3:21 Our customer network across key end user industries is concentrated primarily within 200 to 300 kilometer radius of our manufacturing facility. This proximity improves supply chain efficiency, deepen the customer engagement and contribute to the stable demand. Equally important is our low cost manufacturing base, continuous operating improvement and efficient plant management and disciplined cost control has kept us among the lowest cost producer in the industry, helping us to navigate market cycle more effectively. In terms of business and operational update, turning to our performance, IGPL has delivered a very strong quarterly performance, achieving its highest ever quarterly revenue, along with the sharp improvement in the profitability compared to the corresponding quarter for previous year.

4:08 This was primarily driven by the better realization, while volume remained slightly lower as operations are carried out at a marginally below full capacity. For H1 FY 'twenty seven, the company sustained this strong momentum and delivered significant growth in revenue and soft improvement in the profitability. We achieved this performance despite the raw material price volatility, geopolitical uncertainty and uncertain demand from end user industry. At the same time, we continue to invest in the equipment, upgrade and maintain our plant to the extent for our long term competitiveness and improve operational efficiency and support the future growth. In terms of growth initiatives, our greenfield plasticizer plant commenced production on 09/30/2026, with an initial capacity of 75,000.

4:57 Plant we expect to start contributing meaningfully in the next few quarters. The facility will manufacture a broad portfolio of plasticizers, which include BOP, EGI and PGD, PGI, BP, get into wide places of plasticizers. Several of these products experienced a healthy domestic demand. Our particular focus will be on BOP and DI and P, which will find the application in the wireline cable industry. We see this business as an important extension of our value chain, one that add to our product portfolio and offer robust long term growth potential. We also had expanded our capacity of the BP from approximately 8,000 ton to 12,000 ton through debottlenecking. Over the next four to five years, we expect this product line to contribute meaningful to our overall performance and the balanced revenue mix.

5:44 Sustainable and green initiative as a part of that is part of our long term strategy guided by our commitment to environment and economy. The CBD plant has been completely set up and expected to commence operation by end of December. It will support the renewable energy generation and create a sustainable diversified revenue stream. Together, this project broaden our business opportunity and reinforce our commitment to sustainable industry practices. Along with these growth initiatives, we remain focused on improving efficiency across our manufacturing network. We continue to integrate solar power and other renewable solution to our efficiency to reduce the overall carbon intensity and optimize our energy cost. We're also progressing with the phased replacement of conventional fuel cell as LR support diesel with battery gas. We expect it to transition to improve efficiency and lower operating costs and reduce the emission.

6:37 These efforts support our long term growth objective of building a future ready manufacturing platform that balanced economic performance with environment friendly. Looking ahead, we remain cautiously optimistic by near term environment may remain volatile. Ramp up of our plasticizer plant, our expanded leading capacity and upcoming CVG plant position us for the next stage of growth. Net by the net cash positive balance sheet and strong market position, we continue to focus on operational efficiency, deeper customer relationship and more diversified business. We will also remain disciplined in allocating allocation of our capital as we pursue sustainable profitable growth. We capitalize on the opportunity as the market continues evolve.

7:22 In the closing, would like to thank the other investors for their continuous trust and we remain committed to creating long term value for them. Now coming to the financial performance for the quarter. Q2 FY 'twenty seven complete delivered the highest ever quarterly performance with the revenue rising 63% to INR $7.70 crore. Our revenue contribution from non price business stood at INR 68 crore during the quarter. Gross profit was INR $2.32 crore, doubling from INR 150 crore compared to the Q2 FY 'twenty six. Gross profit improved to 30% compared to 24%. EBITDA for the quarter rose sharply to INR 144 crore compared to INR 27 crore in Q2 FY 'twenty six. EBITDA margin was down 18% compared to 5.8% last year for the same quarter. Profit profit compared to INR 1 crore in Q2 FY twenty twenty six.

8:12 From the half year, company delivered strong half yearly performance because Q1 was equally efficient and 46% to 1,392, driven by the improved realization. Contributions from long term business stood at a 117 per half year. Sir, sorry to interrupt you once again, but there is some network issue. I will need to reconnect your line. Please bear with me, sir. Participants, please stay connected while we rejoin mister back to the call. Ladies and gentlemen, thank you for your patience. We have line from mister reconnected. Sir, go ahead. Sorry for that. There is disconnect. I am now taking the call from landline.

8:58 You will be able to hear it clearly. The company delivered a strong half yearly performance, revenue rising 46% from INR $13.19 crore driven by the improved realization across all product segments. Revenue contribution from the non paid business stood at INR 117 crore for first half year. Gross profit increased to INR440 crore, is more than doubling of INR216 crore in H1 twenty six. EBITDA for the half year was up to INR264 crore compared to INR40 crore for the six months for the previous year. EBITDA margin improved to 19 compared to 4.2% last year. Profit after tax stood at INR 161 crore compared to INR 7 crore loss for H1 twenty six. For September, the net cash position was INR 150 crore. Net cash means the debt minus the cash minus the debt compared to INR 70 crore.

9:46 The board, in view of the excellent operating performance, has declared an interim dividend of 100%, which is the 10 per share on the face value of share of INR 10 for the financial year twenty six-twenty seven. With this, I would like to conclude the presentation and open the floor for question and answer. Thank you very much. We'll now begin the question and answer session. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. First question is from the line of Manan Shah from Navneet Family Office. Please go ahead.

10:36 Yes. Hi, am I audible? Yes. Go ahead. Yes. Hi, sir. Thank you for the opportunity, and congratulations for a great set of numbers. Sir, firstly, if you can just provide some data points in terms of what was our utilization of volume and what were the spreads that we enjoyed in the quarter gone by and what are the spreads going on currently? So I think in terms of the quantity, generally don't provide direct quantity, but compared to the last quarter, it has improved by 15% to 18%. It was around 40%, near by 40% for the last quarter. This quarter, it was more than 47%. Okay. And in terms of spread? In terms of the spread, I think the spread has been volatile between 300 to 400 to four fifty. So every time it was a different spread, but on an average it was between 300 to 400 spreads in the market and we make around $101,100 dollars over and above that.

11:30 Right. And are these spreads sustaining currently as well? I think right now the spread is between in the market is 300 to 400. It was 100 to 200 around for six months of last to last six months. Basically, it keep on changing between $150 $300 So right now, it is on $300 to $350 So it's also a result of the geopolitical issues. First, in the supply of the raw material, there is very limited supply and everybody is operating at 60% to 70% of the plant. So I would not like to commit specifically on the sustainability of this type of spread. Having said that, we are operating we were operating actually three plant, now we started the fourth plant. So we expect that even if we expect moderate with the fourth plant and the DP increase our production and the plasticizer, which has started just recently, we'll be able to maintain the healthy margin.

12:24 Spread is a function of demand supply in the market, which may range between 200 to 400. Okay. So then, sir, in the second half, can we expect better utilization or better volumes then? Yes, definitely. Okay. And what we understand from the paint companies as well that they have seen some six to 8% sort of a volume growth in the industrial side. Are you seeing better demand from that customer segment for us? And apart from that, are there any other customer segments or from where you are seeing better? From our point of view, paint, pigments, plasticizer and EPR, all four segments are doing well. And there are a lot of new segments, which has come up like the Specialty Chemical, Agrochemical, the UBR, PVC that are doing well. Overall, I think we are very comfortable with the growth in demand in domestic market.

13:22 There may be some plus and minus, but right now, I think the supply is not in line with demand because there is a constant in the availability of the raw material. Across the globe, everybody is focusing on the gas oil, gasoline and LPG. So while crude oil demand has gone down, crude oil production and demand has gone down for short period of time, but it has been replaced by the other suppliers. However, the feedstock, which is specifically impacted because of geopolitical issues in the state of Homura and the Red Sea, that you can't restore it because you can't set up a plant in one or two years or six months. Of course, crude can be flown from other places. So that restriction or restricted supply remain the key reason where the prices of all the fleet stock across the globe has gone up and similarly the final product has gone up.

14:16 Right. Sir, lastly, on the inventory side, now given the volatility of the crude, I believe your RM prices would also be quite volatile. So, in such a scenario, how are we managing the inventory and the passing of the volatility in the RM prices? Generally, we are keeping a very minimum inventory, both for the final product and the raw metal side. And generally, whenever we have a sourcing and we book it... Whenever we have a proper sourcing of raw material, we try to book 80 to 85% of sales in line with the procurement. So through this way, 80 to 85% of volatility, we try to avoid. Okay. And how do we see the ramp up of the plasticizer plant for the second half? Plasticizer has just started.

15:06 Some teaching issues are there, which is being sorted out. So I believe that it will give around 1,500 to 2,000 per month going forward. And, say, it's a 10 to 15,000 for for a period up to maybe 20,000 up to the March. And next year, we see it will cost 40, 50,000 ton annualized basis. Okay. And would that give you the opportunity to start the PA five as well? PA4, four plants are right now operating. PA5 will in line with that will be beginning the operation. Thank you. I'll get back in the queue and then Generally, I'll PFIF is the name of the plant. PFIF is operating. Some other plants are shut down. So it's not that PFIF is shut. So we keep actually three to four plant operating and one of the plant are under maintenance regular maintenance shutdown, change in catalyst, etcetera.

15:59 Okay. Okay. Understood. Thank you. I'll get back in the queue and happy Diwali. Happy Diwali. Thank you. Next question is from the line of Ria Mehta from Equiras Investments. Please go ahead. Thank you so much for the opportunity, and congratulations on this great Ria, sorry to interrupt. Your voice is echoing. Can you speak through the handset, please? Sure. Am I audible? Yeah. Yes. Thank you. Yeah. So congratulations on the set of numbers. So my first question is that as in when our plasticizers will ramp up, we will have to start our PSI. And with PSI coming in, do you see that incremental volume which we will have to sell out in trade market? Do we absorb or do you see pricing to be reduced because of incremental supply which you'll get out of PFI?

16:51 So right now, I think the guidance which we have given for this year is around two lakh tonne, plusminus 3% to 4%, which we are in track. But I think next year, 'twenty seven, 'twenty eight, there will be an increased marginal 8% to 10% in the PA. Having said that, overall increase may be higher, but I think 30,040 tonnes of the PA will be consumed between the DEP and the plasticizer. So net net available to us to sell in the domestic market remain in the range of 2 lakh to 2 lakh 15 Got it. Got it. So 15,000 will be the incremental on the. And we were mentioning about some issues at the. So are there any approval issues on more on the technical side?

17:38 And how are these contracts from plasticizers? Are they long term, short term? How do we see? Right now, I think we've just started. There are two, three batches which has come up. There are some quality which need to be checked, and then we provide the sample. So really we will start from end of mid of November, end of November the supply to the customer. We will gauge about the quality and other issues by the end of this quarter. So actually right now the supply being planned is 1,000 ton to 1,500 ton. So we are not planning for the big, big supply coming up in next six months. However, that will be the testing period and decision period to decide which type of processes we need to produce, what is the supply we need to do and what are the customers we need to target. Next year we are planning between 40,000 to 50,000 ton, depend upon which type of plasticizer, but our focus will remain only on the DP and DIFP which is getting into the cable industry.

18:36 The demand is growing at 15% to 20%. Got it. So we are seeing that out of 75,000 of max we will be doing this 40, 50,000, right, next year? Yeah. It will take two year. Probably next year, it will not be full. Probably next to next year, you will be able to have around between 60 to 75,000, you know, maybe higher. So it all depend upon the customer penetration and the demand growth. So I will not like to comment today. Probably next quarter, I will be in a better position to tell you what will be the 2728. Of course. Of course. Just in terms of duration, how are you seeing the demand supply for plasterizers and especially the ones that you want to go into? And expecting the pricing also?

19:22 I think plasticizer today the margin is good in line with Telic and the demand is growing at 5% to 6%. IGPL with the new plant started with top three player in India. We will have some inherent advantage of supplying of Thelic, balance all product to alcohol, IVA, IVA, we are buying from the market. We will have a good facility, which will have a one lakh ton up to 75 to start with and then we can go up to one lakh ton of the capacity, which will eventually will add around INR 1,000 crore to INR 1,200 crore of the gross revenue. Net revenue will be, because it will be using the Telic, will be around INR500 crores to INR600 crores. So with all four to five plants operating and the classes as an adding net INR500 crores, we believe the revenue at the peak should be between INR300 crores to INR3500 crores.

20:10 Got it. Got it. So this will be around at INR $5.28 or INR $5.29, right, where we will see the INR It twenty may earlier also, but I do not like to comment because today if you count the revenue, it can cross with the even four plant and part classes because the prices are very high. I expect prices will moderate and then based on the total prices, this is the revenue expectation. Got it. Got it. And in terms of our nonpharmic business, the APA, etcetera, etcetera, how do we see the margins for them? I understand they are made from byproducts, but just wanted to understand that after considering the respective sacrifice and margin, what kind of margins you're giving? So meleic, we are producing the meleic from wash water. Typically, what you sell is EBITDA, which may be 3%, four percent lower because it is coming as a byproduct, it's own raw material, which is being used. There are some processing which is required to extract from wash water the mellic. So typically it was INR 21 crore of the mellic for the last quarter because the prices of mellic was high and typically INR 14 crores, 15 crores was the average for earlier quarter, this quarter 2021.

21:19 But we have increased the production of DP and we touched the revenue of around INR 39 crores to INR 14 crores for last quarter. Benzio gas remained in the range of 1 crore to 2 crore. So basically, about Deep is also contributing to our other revenue, including apart from the Benjug acid. So this quarter, apart from the interest and the investment income, we have achieved around INR 75 crore of the other income Got it. From other products. Right. Right. And in terms of when I talk about Malik, we were all trading at a discount to highly prices. The The situation is same, which was there earlier, and how do make the money there? It is actually...

22:05 Prices have gone up in line with Thallic, but still, it is available at a discount to Thallic. So, Thallic is between 150 to 160, Thallic is between 180 to 190. However, from the base when the price was INR $70.80, it is now INR $151,160. Thallic which was INR $181,190. So prices have gone up, but still in terms of the overall competitive pricing of Telic and Malik, Malik is still 10% to 15% lower than Telic in the market. Got it. And in terms of availability of OX, while you're mentioning there are lot of lower capacity functioning to prepare o x, just wanted your take on... If we take, for example, start our plan five within going to this demand, or do you think availability of raw material will damaged for us?

22:57 I think availability of raw material of works is not a challenge for the entire industry because, generally, it is coming from China, Taiwan, Korea, which is not impacted because of the state of Homura and all that. So challenge is not of the availability of raw materials, challenge is the pricing, whether you would like to buy the raw material at such a high price. Will you be able to pass on that price to the final customer? And what if market case changes? So that was the reason everybody was cautious and operating at optimum level to the extent they will be able to sell, they are buying the raw material and converting into the final product. So availability of OS is not a challenge, but of course the pricing is high because I mentioned earlier in my communication that all feedstock of petrochemicals are at nearly one or two or five year high.

23:44 The prices have gone up quite significantly. And second, the logistic cost across the globe itself have gone up by two to 3x. So that has impacted the overall petrochemical feedstock pricing. So typically, OX is freely available in the market if you wanted to buy, of course, but it is costly. Got it. And going forward, consider a scenario where war ends, etcetera. How is the demand supply scenario during those days? I think if the war ended, the demand will be more robust, more better because some of the final downstream industries, are not able to supply to these areas like Middle East and all that side. And there is some impact on The U. S. Also. So overall, when the vast end, the overall demand is expected to further improve, of course there will be a moderation in the pricing of both the raw material as well as final product.

24:37 Got it, got it. Thank you so much. I'll join back in queue for further questions. Thank you. Thank you very much. Next question is from the line of Jiten Parman from Aurum Edge. Please go ahead. Yes. Good afternoon and congratulations for an excellent set of numbers. And wish you all a very happy festive season, happy winter and happy Diwali. Thank you. Couple of questions. I couldn't get because I think the line was sketchy. What was the capacity utilization you mentioned across our plants? So basically, we for the last quarter, we were operating three plants. So it was 45,000 to 47,000 tonnes and recently started the fourth plant. So when I talk about capacity utilization, we are talking about capacity utilization of the existing plant which we are operating.

25:32 The plant which we are operating capacity utilization is between 90% to 91%. The plant which was not operating, we don't count it in the capacity utilization. Fair enough. Fair enough. Okay. Now in these numbers, we have shown excellent EBITDA margins. Are there any entry gains in this? If yes, what is the percentage? I think less than 2%. It is because what happened is as such we don't count separately inventory gain, but when the last quarter ended, then the inventory gain was already taken into account in the last quarter because the prices have already reached to one fifty, one sixty level. And then it has gone to one seventy level. But in the auditing and the accounting, we take cost or realizable value, which is less. So it is being valued at a lower side of the of the cost of realization value.

26:27 And it seems it is already high. So there are chances of inventory gain captured in this very, very small. You understood my point now? Because last quarter when there was a good gain because the lower cost inventory was there and prices has gone up. So last quarter prices were already high. And that's what makes this performance also commendable. So now you did mention some share of renewables power also. Again, I think that time the line was catchy. Again, we couldn't get that. So if you can I I will repeat it? So typically, we are using LSFO and diesel and the government electricity. Now we got the connection of of natural gas. So we will be replacing around 70% to 80% of the fossil fuels with the natural gas.

27:15 Of course, there were some challenges for the last to last quarter because the government has come down to the industry by 10%, 20%, 30%. Now everything has been normalized, and we are losing maximum amount of the natural gas. And going forward, it will be the case. It is not only the green in terms of, but overall in terms of costing also, it's a 10% lower than the LSFO cost. Perfect. And any thought on basically using renewables, basically, like solar and We are already using we are already using the solar at our plant of. Already using for last four years, where it is net of from our existing bill. However, in the plus side, which has started recently, we are right now evaluating various options for using the solar.

28:00 Perfect. Perfect. And we have got a a fairly good balance sheet, and, you know, the protect cycle is also going through. I mean... And you did mention that, you know, at normalized prices, you can do 3,000 to 3,500 crore of revenue. Yeah. So when when would we look at... You know, I... And I think that could happen, you know, maybe next year or something. Is there any thought on, you know... And your presentation also mentions, you know, exploring adjacent downstream chemistry. So is there any thought of any future CapEx cycle? Yeah. Right now, I think focus is on stabilizing our class. We continue to explore various opportunities, but it will not be right for me to discuss in this forum because it has not been discussed with the management and not approved by the board.

28:54 So whenever we are finalizing, we are planning various downstrips and looking at other chemistry. But we we are very cautious, and we wanted to get into any chemistry when we are 100% sure about replacement of the the import and creating a long term value. And we are very particular about IRR. If IRR is less than 15%, we are not going. We are very clear on that. Correct. So we will be going... We are looking... Evaluating various opportunity, but it has to fit into all our criteria of minimum 15% IRR. This much is the CapEx. This is the revenue it should add. So we are evaluating. I think now the time has come for us to look forward for the other chemical and chemistries in the downstream as well as the new chemistry. We are evaluating it once it is finalized, approved by the Board, we will discuss it.

29:39 Perfect. Perfect. Yes, I think that's all from my side. Thank you so much and wish you again a very happy Diwali. Thank you. Thank you. Next question is from the line of Madurati from Countercyclical Investments. Please go ahead. Sir, thank you for the opportunity. Sir, firstly, if you can help me understand where are we in the cycle because our spreads are on the higher end, and it seems that they will be on the higher end for the time being. So so can you just help us understand that with this refinery getting affected in the Middle East region and the global utilization have improved to 65, 70%. So can we maintain or how long do we expect to... Can we sustain these spreads of $35,400?

30:26 So I would not like to comment on the spread. I will just comment about the capacity utilization and how much production we can make. The spread is a range of demand is depend upon the demand and supply and the geopolitical matter. Right now, it is between 300 to 400. Historically, it was between 150 to 200. Right now, it is around 300 plus, and we are trying to make maximum utilization of that. I expect spread over the next four to five years has to be there between 200 to $2.50 to $300. Because if it is not, most of the plants in the Europe, America, and Southeast Asia, because their conversion cost itself is a $150. So it will become unrivaled. If somebody said the plant of Tenet today and margin is less than 200 or $250, it will be making losses at EBITDA level.

31:15 So so it's for me to comment whether what is the right margin, it is not right. Based on demand supply and if you set up the new plant, 200, two fifty is the cutoff. So I believe in the long term, you will get that margin average from last five to ten years. Got it. And, sir, if we if we were to understand the industry capacity utilization and how much capacity might have gone out of the market that may not come for the next one or two years due to some kind of disruption. How would we... Yeah. If you can help us understand on that. So I think because right now what is situation going on in The Gulf, Iran, US, then Russia and other things, then Israel.

32:01 So capacity going out of, I think all the refineries in the global market are focusing to supply the basic fuel, which is gas oil, gasoline, and LPG. If there is extra capacity available, then they are getting into downstream and ensuring that the... To the extent of they require, they will be able to get that feed for petrochemicals. So some capacity which is in The Middle East and supplying, like, natural gas and all that and supply some feedstock, that has been impacted to the large extent. So all the petrochemical feedstock prices, if you look at, it has up by 30 to 60% in last six month. So when it will be resumed or normalized, I think some of the damage which is done in the Middle East side, it will take six month to one year to restore because if there is a bombing or some fighting at some refineries, which I heard, I'm not sure how much time it will take to recover. But anything which is going to get normalized, it will take six month to twelve months.

32:59 It's not going to be in a hurry. To the extent, whatever is the capacity utilization based on the feedstock available, it will continue to remain safe. Got it. And sir, also one question was, sir, we have an investment property of more than 200 crores on our books that is in Middle East, sir. So first question was, has that been affected? Or No. And sir, how do we expect The company in The Middle East, that property is in Europe, and it is up for sale. That's already put up in the sale, and probably next six to nine months, we will be able to realize the entire money. So is there any leads on that, or we are just expecting that that could get monetized because What happened is the property with the commercial one, which has been completed, and we appointed a agency to sell that property.

33:44 Because we have purchased this for the purpose of setting up of maleic and redhead plant in Abu Dhabi in... Along with the JV with the. But after completion of detailing and basic engineering, we realized that they are not able to match the pricing. I thought today it's a good time because if you set up in Abu Dhabi, today's enrollment is is backfire. But when we set up that office and all that, now we have decided to sell off that office and agency has been appointed. I think in the next six to nine months, it will be sold off. Got it. So so with so much cash on our books, is there a possibility for IGPL to go and acquire one of our competitors who is very debt heavy distressed in a distressed scenario, either they are Bahir or running a plan. Is there a possibility of that? So I think there are two ways. I understand, and I agree that there are good amount of cash. That is the reason we have declared the the interim dividend of 100%, which is 10 rupee, which is 30 crore.

34:42 Of course, that is very miniscule amount compared to the overall cash in the balance sheet. We are looking for various opportunities for acquisition of the company in downstream chemistry. Competitor, I think it will not be possible because if you acquire the company, the CCI will not approve because combined, they will have capacity of 80% in the Indian market. So we may look at various opportunities, but I'm not sure about the competitor. They are facing some challenges. I think let's wait for the right time. Got it. So just one final clarification. Sir, you mentioned that the two lakh volumes that we are expecting in FY twenty seven, we will expect in FY twenty eight as well even though the plasticizer volume scale up. Right now, the volume based on the six month, I expect between one eighty to two lakh ton because q one was really lower.

35:32 Now we just started the fourth plant also. So it will be... I expect between one eighty five to one ninety five, the volume for the year. Next year, I'm expecting... Because the volume will be high for production of Telex, but around 20 to 25,000 ton of Telex will be consumed in the plasticizer and d p. So net net available for sale will be maybe two ten to 15. That is what I mentioned. Production will be high, but what is available for sale is lower. That is what I've been. Got it. And, sir, even prices have increased in line with in line with pricing? Or Correct. How is that? Of prices as of today is very good. Got it. Sir, that was from my end. Thank you so much and all the wish.

36:18 Thank you. Thank you very much. Next question is from the line of Manan Shah from Nomnit Family Office. Please go ahead. Yes. Hi. Thanks for the follow-up. Sir, based on the numbers of our peer, it seems they are unable to ramp up or sell enough in the domestic market. So are you seeing lower volumes from them? And is that help... Helping you in any way? Why you wanted me to comment on competitor? Think No, I'm not asking you to compare. I'm just asking you it Volume, the only way to ramp up your I think, their sales is also similar to what we have. We were operating at three plant and 14,000 to 15,000 tonnes and they were operating at certain capacity, volume is expected to be 10,000 to 11,000 tonnes.

37:12 I don't know about what is their financial performance, how it has changed. But I think because of The U. S. Facility and the interest burden and debt position that may have impacted the performance. Otherwise, it's the same market, similar customer. There is no reason to have a different performance. Understood. Sure. Thank you. Thank you very much. Ladies and gentlemen, we will take that as the last question. I'll now hand the conference over to Mr. Pramod Bandhari for closing comments. Thank you very much for attending this conference. And since the festive season has started, we will appreciate your time and interest in the company. If you have any questions, please get in touch with us or contact our SGA.

38:01 On the behalf of all the team member, I wish you very happy Diwali and Danteres and compliments for the festive season. Thank you very much. Bye. Thank you very much. On behalf of IG Petrochemicals Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines. Thank you.