India Glycols (NSE:INDIAGLYCO) Q1 2027 Earnings Call

0:00 Ladies and gentlemen, good day, and welcome to India Glycols Limited q one FY twenty seven earnings call hosted by Incred Equities. As a reminder, all participant lines will be in 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. 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. I now hand the conference over to mister.

0:48 Thank you, and over to you, sir. Thank you. I would like to thank the management for giving us this opportunity to host the conference call today. From India Glycols management, we have mister Rupak Saraswat, chief financial officer mister Manoj Kumar Rai, chief executive director and COO of IDS Limited mister Akshay Bansal, executive director of End Nature Biopharma Limited, mister Anand Singhal, chief financial officer, mister SK Shukla, head of liquor business, and mister Ankur Jain, head of legal and company secretary. I would now like to invite mister Rupak to initiate the proceedings with his opening remarks, post which we shall open the floor for a q and a session. Thank you, and over to you, sir.

1:45 So thank you very much, and thank you, everybody, for joining us and hope all of you are enjoying your monsoons, and I'm sure a lot of you are in Mumbai are waiting to welcome Ganpati. So best wishes to all of you. And now what I intend to do is to start with two introductions. First is the gentleman, Mr. Gagan Kwatra, who will be handling Investor Relations for us. He has joined us. I'm sure his business will make us better prepared to deal with our investors and better answer your questions and be more responsive. He's had fifteen years of work experience in a number of organizations handling Investor Relations and consulting, etcetera, which includes Jubilant FoodWorks, LT Foods and prior to that, some consulting assignments that he did with KPMG.

2:39 The other gentleman I would like to introduce is Mr. Manoj Kumar Rai, who has joined as the Chief Operating Officer for the spirits and ethanol business. As you know, with the restructuring, his role becomes very important. So he's a stalwart in the liquor business. So and he will help us answer all the difficult questions that you have for this business. He's got twenty seven years of experience across engineering, consumer goods, entertainment and beverages. He's a BTech from IIT Delhi and a postgraduate in business management from IIM Lucknow. He joined from Allied Blenders and Distress, where he was the Chief Revenue Officer, led seven consecutive quarters of profitable growth. And we spent nineteen years with India in multiple roles.

3:27 And earlier, we've also worked with America, India, Sulzer, etcetera. So let's try taking the opportunity to introduce them. I'm sure you'll have an opportunity to interact with them today and more so going forward. With that, let me get started on a quick update on the business, And then we can talk a little bit about restructuring, a little bit about the segments and so on. So all in all, we've had a very strong quarter. So IDIA delivered a very strong start for 'twenty seven with a double digit growth in gross revenue, EBITDA impact, which was supported by a balanced portfolio and improved profitability. So we've had revenues of $11.29 crores, up 8.5% and a record EBITDA of INR 170 crores.

4:22 So our gross revenue is up 19%, net revenue of 19%, EBITDA up 13% and PAT up 32%. On the business restructuring front, we've got the NCLP approval. Effective date is to be communicated, and we are progressing the actions as per the plan. The business portfolio overall remains well diversified, and you can see that we've been improving our business, making it a better quality business in across businesses, and you can see premiumization and margin recovery all across. The spirits business recorded a revenue of INR $3.61 crores, up 5.3%, EBITDA growth of 14.2%, and the company retained a dominant share in UP and Utrakat while benefiting from premium product offerings in these areas.

5:16 In Chemicals, our revenues increased by 20.6% to $3.52 crores, driven by growth in multiple areas, which include bioglycol, green solvents as well as Performance Chemicals. Biofuels reported a revenue of INR $3.23 crores with EBIT increasing 19% year on year to INR 27 crores and EBIT margin at 8.4%. NH Biopharma reported its best ever quarter with revenue rising 65% year on year and EBITDA increasing 188%. So this growth has been supported by new acquisitions of customers, several nutraceutical launches, expansion of the nicotine business and in general, improved efficiency. The finance costs for the company declined by INR 25 crores in Q1 FY 'twenty seven from INR 45 crores in Q1 FY 'twenty six, and this is on account of debt reduction, which has been supporting the profitable growth as well.

6:17 Debt levels had reduced during the quarter with debt to equity ratio has also improved. And the proposed restructuring that we received the NLT approval is something that we are going to talk about a little more. So all in all, strong revenue and EBITDA growth, strong margin performance, business restructuring on plan. As far as portable spirit is concerned, the broader theme of premiumization and market leadership continues. On the chemical front, we've had a good growth across areas, and we talk about the factors subsequently. We recognize that our growth will come from new performance chemicals, which right now is small, but I think the pipeline is strong, and we expect it to continue to drive growth year on year.

7:06 As I mentioned, a very strong quarter for Innateur Biopharma and good progress with customers, etcetera. Just to give you a general thing that people generally ask us about is also the impact of the war. Now the war has impacted us in multiple ways, some good, some not so good. So it is both a combination of headwinds and tailwinds for us. As you know, crude spiked to a four year high, so which also meant that crude prices went up, which also meant that some of the chemicals that come into India from The Middle East, for example, glycols and some other petrochemical derivatives were affected not only in terms of supply, but also prices. The rupee hit a record low, but another factor which impacted business is the fact that freight really became even more determining than the prices itself.

8:00 So freights, which are for westbound cargoes have been very, very volatile, going up anywhere between five to 20x, which has been which impacted some of our businesses. So the impact has been that as far as crude is concerned, it had a positive impact on our ethylene oxide business because usually, we've talked about over the last three or four years that we had a disadvantage in terms of our bio based deal being slightly more expensive than Reliance's deal. Now this is something which was not the case fifteen years prior to 2021. However, this changed in the recent past. And for the few months that I'm talking about, we were either similar to Reliance's prices or slightly lower, which meant that we had greater offtake for specialty chemicals and greater penetration for some of the glycols, which we sell into India and so on.

9:01 And the impact on chemicals on the other side, because that several of our round tails, propylene oxide, for example, were either completely not available or were prohibitively expensive. So this adversely impacted our businesses in the oil and gas sector, where we were supplying specialty chemicals within India. And we also supply oil and gas materials to The Middle East, which essentially completely collapsed because there was no sale happening to that area. And also shipments to U. S, etcetera, became very difficult. So that was a negative impact, mainly impacting the Chemicals business. So all in all, high profitability, broad based revenue growth, breakout quarter for Innateur Biopharma, and we've maintained the momentum in Chemicals.

9:52 Another thing that we've been talking about is the fact that if you look at FY 'twenty two, we had an EBITDA margin of 11%. In 'twenty three, we became 13%. In 'twenty four, we became 14.2%. 25, 14%. FY 'twenty six, 16.4%. So the margin recovery story has been, I would like to say, based on the strategic plan that we spoke to you about for the last few years, managing our costs better, managing our feedstocks better, improving the quality of our business and getting into new areas, which drove both growth and profitability. So this is very heartening for us to note that, first of all, it has been consistent and stable. So there is sustained improvement in quality of the business as seen in these years. So that's a broader point I'd like to make.

10:42 Now coming to another important thing as we've got the approval from NCLT for the demerger. As you know, NCLT has now sanctioned the scheme of arrangement on 07/17/2026. And upon effectiveness, the Spirit, Biofuel and BioPharma undertaking transfer to dedicated resulting companies. So we start with India Glycols Limited as we have it now, and that is how we've been presenting ourselves. And this segregates into three different entities. One entity remains as such, which is India Glycols Limited, as such in the sense of name, which will continue to have bio based chemicals, fatality glycols, new performance chemicals, gases and any other new areas in the chemical space we may get into.

11:32 The other big one is Ideal Spirit Semtech, which will have the portable spirits business, both IMFL as well as Indian made Indian liquor, but it also will have the biofuels business looking at the synergies of the business, which is ethanol and the fact that a significant amount of ethanol that is produced is actually also required by the portable spirits business. The end nature biopharma business will continue to have what it has in terms of nutraceuticals and APIs. But the biopolymers business from within the chemical business will now be part of this entity. In order to make sure that our costs are managed well and the expertise to run these businesses are retained within the business, there are, of course, arrangements so that we can continue to manage them with the people that we have without adding too many different people and managing the overlaps in a good manner.

12:30 Now let me take a pause and request Anand Ji to quickly give you a very high level financial performance update. Thank you, sir. So the net revenue in IGL is spread for Q1 financial at INR 27 is INR $6.94 crores with the EBITDA of INR 120 crore, the margin is 17.3% versus 14.7% in Q1 financial year twenty six. So this is 14.7% growth in the EBITDA in India Glycols, the net revenue is INR $3.45 crores, up by 24% year on year. EBITDA is INR 40 crores, which is 12% up year on year basis, and EBITDA margin is 11.6%.

13:21 The India Biopharma net revenue is 90 crores, which is up by 53%. EBITDA is INR crores, which is almost about 100% year on year growth and EBITDA margin is 11.1%. So overall, if we compare the net revenue for the company as India Glycols on consolidated basis is INR $11.30 crore, which is up by 9%. EBITDA is INR 170 crore, which is up by 13% and EBITDA margin is 15% versus 14.3% in the Q1 last year. So overall, a tremendous growth and good, very good performance. Thank you, Anandji. Now considering that it is Friday evening and we are supposed to talk about segments, we will start with high spirits. So I would request my colleague, new colleague, Mr. Manoj Rai, to give us an update on spirits, which is obviously doing very well.

14:18 Well, that comment was on like to note. Thank you, and good evening to all of you. Well, when we look at the numbers first for IDM Spirits, an extremely healthy quarter. We bifurcated the IDM Spirits business into two parts. One is the main spirits business and the other is the BIO Fuel business. Spirits business had a net revenue of INR $3.71 crores with an EBITDA margin of about 22.9%, which is an improvement of INR $470,000,000. When I further bifurcate this into IMSL and non IMSL business, it's the IMSL business which shows promise. We have grown 26% year on year in terms of net revenue, doing 1,400,000 cases, which is a 55% growth over last year.

15:09 In the non IMSL business, our revenues have more or less remained stagnant. We are at INR207.9 crores with a volume of INR7.5 million, which is a six percent growth year over year. When I look at the DIO fuel business, it's a 7% growth in net revenue at INR323 crores with an EBITDA margin of 10.8%, which is an improvement of 50 bps. Now that's quarter one performance and if we have to look at how the business outlook for IGL Spirits stands out for the rest of the year. I think there are six or seven main pivots on which the outlook for IGL Spirits looks encouraging.

15:54 The first is, when we looked at the iron metal growth, you saw a 26 growth, particularly in geographies where we are operating, the industry or the segment where we operate has either declined or remained stagnant. So considering the kind of movement in the industry and our growth, we see a lot of promise. This is further going to get accelerated because there are quite a few launches planned. There are launches planned in the Diva Swifty segment. There are launches planned in the semi premium motor segment, which will improve our margins further. We would want to focus more on the white spirits business. If we look at the iron nickel category, it's the white spirits business, which is growing at the cost of care.

16:42 And we are strategically placed with our portfolio in this particular segment. We expect to value a higher share than the segment. There are many times when people build brands in the premium and the semi premium segment. Rather than building, we have entered into a strategic partnership with company where we've acquired brands from them and we do the distribution and marketing for them in these selected states. And you would be pleased to know that the kind of aspirations that we have in the premium whiskey segment as well as the single malt segment offers them. We are looking at doubling our volumes in the Amrut whiskey segment, the three whiskeys that we make with them.

17:27 And we are looking at a healthy 10,000 plus kind of a volume as far as the single malt is concerned in the states where we operate. The other big pivot through which growth would be driven for ideal spirits would be through geographical and channel expansion. Our bulk of the business currently is focused in three states, which is UP, Uttar and Delhi. We've just touched the tip of the iceberg in these states. These are big states in terms of the industry side, and we will look at deepening our penetration, not only through our existing portfolio, but also through other offerings that we have. Apart from this, there would be inorganic gains coming in from introduction of new brands and introduction into new states.

18:17 We are looking at defense giving us an all India footprint with the introduction of three to four new brands. While we see there are all the three brands that are approved and there is one on the NBN. We have had a long standing relationship with Baghari close to about fifteen years. And you would probably know that we are the only one in the country, which has exclusive facility for them in terms of spirit maturation. This reinforces our position of being a trusted partner as well as the fact that we can comply with world class manufacturing practices. The fact that we have captive high quality DNA and we have enough and more capacity available ensures that this gives us the cost advantage in the states that we operate and protects our margin.

19:17 We manufacture one of the best qualities of E and A, and we are one of the largest manufacturers, thus giving us consistent quality and sustainable cost leadership. What is heartening to also know that in The States where we operate in the non iron metal segment, despite a declining market where most of the big players in the markets have declined, we continue to maintain our strong position in both UP as well as Uttarakhand, primarily led by the fact that we have built brands in this non high metal segment, something which was unheard of in the past. One of our brands, Banti Bugji, you would have heard, has shared has received various accolades, including being appreciated by Linkup, Vocobicols as well as Tissue Vocobicols.

20:08 The fact that despite the increase in the number of players in the non iron metal segment, we continue to hold a dominant position as far as our shares in the market is concerned, speaks volumes about the kind of quality and the kind of brands that we have achieved and the strong marketing effort that goes behind this. All this naturally gives us a very encouraging outlook for FY 'twenty seven, and we expect to deliver an EBITDA in excess of INR 500 crores. Minimization, which I spoke to you about and continued growth in not only the operating states, but also the inorganic growth in the new states that we enter would eventually lead us to becoming a debt free company from '28 onwards, and we are targeting an EBITDA in excess of 100 crores in the next four to five years.

21:07 If we do this, we would probably be one of the top five companies in this country. So, Panshi, I hand over to you. Thank you, Niraj, for a very comprehensive update on the liquor business or rather the spirits business, including biofuels. I will talk a little bit about the India Glycols as per the new structure, which is essentially broadly known as the chemical business. So for the chemicals business, the net revenue at INR $3.32 crores was up 25% year on year with an EBITDA margin of 11.4%. And for the small gases business, it was INR 13 crores with an EBITDA margin of 23.1%.

21:56 Overall, this business had quite a good quarter, both in terms of volume and value terms. If you look at some of the core businesses, for example, green solvents of glycols and glycol the volumes were up 6%, the value was up 13% and gross margins close to 50%. For the Glycols business, value up 83% and similarly, very strong growth in gross margins. The Performance Chemicals business grew by 40%, which was lower than what we had targeted essentially for some of the reasons that I articulated. Exports suffered to Middle East as well as other countries and some raw materials became prohibitively expensive and supply chain disruptions, so which had flattish contribution.

22:43 We saw some growth in terms of geo sales that we sell to the joint venture as well. Now talking about going forward, it is a business that is very resilient, and we have a strategy on how we will build it. So in terms of looking at this business, we would be leveraging the fact that we are the largest supplier of bio based specialty chemicals in the world, combined with our joint venture. And we are the pioneer in manufacturer of bio based EIO glycol glycol ethyl and perhaps the only two scale supplier of these products in the world. I'm aware of one or two more people who've entered in that space, but none of them make, first of all, to this case and all these products.

23:29 So we see in terms of our drivers, one is our strength in process chemistry, product development, applications and partnerships. So a lot of our new value added chemicals are being driven by innovation and applications. We are potentially moving from product to good product, to differentiated products, to understanding applications, to solving problems, to collaborative projects, to strategic projects. And you can see that all across in terms of what we are doing. So we've entered several new spaces. For example, we became the first ever company to manufacture bio based amide. We started supplying small quantities and then for over a period of time, it will be a good opportunity to grow. Similarly, we also became the first company in the world to supply carbon smart ethoxylates and glycols, those small right now, but these are technologies for the future, and that is something we look at. Yes, we are building on supplying our green solvent business into various end applications like crop protection, food, pharma, personal care, etcetera.

24:29 As a part of our new strategy, a lot of our growth would be hinged on innovation that we do with good partners and also grow with them. For example, we will not necessarily become the supplier to every end consumer throughout the world, but we will definitely be partners of choice. And some of the names that I can with their permission say, we've got strong collaborative partnerships, not merely supply partnerships, BASF, Dow, L'Oreal, Unilever, Nibel and many others. So that continues. The other thing, I have some kind of aspirations to share with you. And the aspiration that we are looking at is to deliver an EBITDA of about INR 200 crores and sorry, an EBITDA of about INR 400 crores and the business, which is approximately INR 2,500 crores in the next four to five years, That's an asterisk. I mean, I would like to underline it again that, that's not a projection.

25:23 Now having said that, this is a plan that we've made product by product, customer and customer, and I'm quite confident that we should be getting there. And in addition to this, we are working on new technologies we have not built in because we are not in a position to grow numbers there. These new technologies are, for example, looking at utilizing carbon, producing viable low carbon footprint products, and some of them can be transformational. Considering that they have not matured right now and constrained to neither the deal, but we are doing not in a position to give numbers. But the reason I'm highlighting this is that we are building this business on the back of innovation, on the back of sustainability, on the back of strong partnerships.

26:09 Of course, some things succeed, some things take time. But given the fundamentals of what we are doing and given what's happening in the macroeconomic environment and the trust of sustainability, I'm sure this business is positioned to build on very well from here. So all in all, renewable materials is a strategic advantage, not just a credential, a point that I would like to emphasize. There is a structural shift towards specialty led portfolio, and this will keep on showing more in numbers. Performance Chemicals or value added chemicals is moving well, and we've got a strong pipeline and expect it to continue to become an important part of the Chemicals business. And I already spoke about innovation being something that we are genuinely doing very well and our collaboration with the people, which will help us drive growth.

27:00 Now coming to another interesting segment of Bharat, which is NHF Biopharma. So NHF Biopharma, as I mentioned, achieved its best ever quarterly performance at 83% of over 30% in the prior quarter. Thyoposugoside sales registered a robust growth of 26% over the prior quarter previous quarter, supported by a strong order pipeline, improved price realization. However, the raw material availability and pricing continues to be volatile and a challenge in Q2 as well. In nicotine, there has been growth and there has been capacity expansion. Nicotine sales grew 2x quarter over quarter, driven by customer conversions in Europe. Nicotine food processing operations, we also started in our Katipu plant, adding significant capacity.

27:50 And we continue to focus on strengthening our branded nutraceuticals portfolio through various strategic initiatives. So in short, when we come to Innate Biopharma, the story is there is sustained growth momentum. We've expanded in an important area, which is nicotine, both in terms of sales as well as capacity. We continue to focus on strengthening the branded portfolio. We are taking several actions, for example, new certificates, approvals, etcetera, for global market penetration, driving customer and product expansion. And the long term value creation will continue to happen through this disciplined allocation of capital. In terms of our aspiration for EBITDA, I think over the next four or five years, we are aspiring to do INR 130 crores to 150 crores EBITDA.

28:45 Now I underline this again. This is a call that we are having before the clarification of the businesses, and we are sharing our aspirations with you. And we are conscious of the fact that when we put up a number here, it is something that we will hold on to us. But again, this is an aspiration. This is not something that we are giving as a projection. Of course, it is not out of the blue. This is based on an exercise given by people. The world is so dynamic. There are so many things happening. But we did think that you wanted to ask us about what your aspirations are. So I will not qualify this as a plan or a projection. But yes, we are happy to share these aspirations. This is from my side. For some more on financial, Anandeep, would you like to say something? Otherwise, we will go out with the taking questions. It is already 04:30. I'll request for the Q and A session.

29:41 Thank you very much. We will now begin with the question and answer session. Anyone who wishes to ask a question, may press star and one on their touch tone telephone. 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 comes from the line of from NewGen Capital.

30:32 Please go ahead. Hello. Hi. Good evening. Am I audible? Yes. Yes, ma'am. Please go ahead. Yeah. So I had one question one question. It was regarding the portable Sorry. You are not Sorry to interrupt, ma'am. Your voice is not audible. May I request you to please use a handset? Hello? Is this audible now? Yes. Please go ahead. Yeah. So my question was regarding the guidance for portable spirits for the rest of this year and the next financial year. Yeah. So what's your question, ma'am?

31:21 Hello? Hello? Yes. Hello? We can hear you. Please proceed with your question. Also, my question is regarding the guidance for portable spirits for this financial year and the next financial year. You want the numbers or you want the the performance? Performance and numbers. So when I look at the EBITDA numbers, we've already shared that with you. We are looking at an EBITDA in excess of INR 500 crores, of which INR 120 crores is something we have already delivered in Q1.

32:10 When I look at the volume, we are looking at doubling our volume from what we delivered last year. The basis for this doubling of volume is, I told you, deeper penetration in these states, four states where we operate with a larger offering of brands, particularly in the dealer sweet tea segment, the rum segment and the semi premium vodka segment, which have healthy margins. This is at a time when the industry last year or for the last three years has been showing a CAGR of 4% to 5%. The outlook for next year, we expect to continue to grow in healthy double digits. Does that answer your question? Yes. Thank you.

33:03 Thank you. The next question comes from the line of Saket Kapoor from Kapoor Company. Please go ahead. Team, I hope I'm audible. Yes. Sir, thank you firstly for the opportunity, and congratulations, sir, to the team for very strong set of numbers and also deliberating on the fact on revamping the entire investor presentation and making it concise and also relevant for us by giving us segment wise numbers, our expiration, which which are all not present since... Till till the last presentation. So kudos to the team for doing a commendable job.

33:53 Hello? Yes. We can this is our question. Yes. Thank you. Sir, only on the NSU part, Rupo sir, if you could just explain to us what is in the annual going ahead in terms of the CapEx that we have planned for the current year? And you you have mentioned about the contribution for the first quarter. How is this going to scale up with the with the introduction of new products and the the customer engagement, which you just outlined? And what should we aspire for this NSU? What are the pillars? Some more color on the sales. So since you asked me to talk about aspiration, I will talk about aspiration.

34:42 Just one second. So the as far as CapEx is concerned, I do not expect a huge amount of CapEx happening this year. So there may be incremental CapEx, but we are talking about perhaps $5.10, maybe INR 15 crores, INR 20 crores based on the plans that we have right now. Now if we if Hello? So I'm... So it is not a very CapEx intensive model as of now. But as our businesses grow, we will continue to have modular expansions.

35:41 This is not a business where we expect suddenly a 400 INR 500 crores plant to be put up. Not right now, unless we are looking at some risk to technologies to be invested, but that I don't see happening for the next two years, maybe after that. And as far as the aspiration is concerned, this is dynamic as we work on these projects. We aspire to be 150 plus in this year. And we aspire that in four or five years, we see this business to be possibly a 700 crores, 600 crores to INR 700 crores business. But what is important is from a profitability perspective, we expect that a business which is let me just check what the margins are, which is close to maybe 16%, 17% right now.

36:31 We expect that by two thousand and thirty, fifty, we will do significant actions to improve the quality of the mix as well as pricing for the innovative product, and we expect newer feedstocks, which will be more viable. So I expect that by in five or six years, when I'm talking to you about the turnover of about this kind, our gross margins will be closer to about 30%. Okay. Yes, sir. Everything taken with pinch of call, sir. I I I can understand. Yes. Sitting here in an investment call is important for me to make sure that I Correct, sir.

37:23 Correct, So so, sir, as on date, can you give... You have the ballpark number of how much we have invested in in our MSU segment from the date of inception? See, there are in terms of the core plant expansions that we've done, we've not invested too much. We've used some of our existing assets. And as far as new plant additions is concerned, we are probably talking about INR 50 crores, 60 crores. Okay. And sir, I think in your presentation, we have I missed your point on the JV performance. So how have been the performance? I think the numbers are good there also.

38:10 So how how is the JV going to perform going ahead? And I think that some milestones will also be achieved this year in terms of we receiving some more more more payments. So some color on the same? Yes. The joint venture for the reasons that I mentioned to you has been doing well. So what has driven growth in the joint venture is the fact that the disadvantage on etenoptite pricing has been reduced because of the current scenario. So that has driven good growth. So compared to Q4, for example, the net revenue of the JV went up by 21%, which is very good. EBITDA also went up quite significantly in high double digits.

38:56 And compared to the last quarter, the growth is not as high numbers, but the JV is doing well, both from Kashipur as well as from products from Clariant that is held in India. And what we also see is there is a greater trust on exporting products made out of India into other Clariant customers worldwide. So in short, I think it is heartening for us to note that despite some of the toughest years that IZL had over the last three or four years for reasons that you well understand, the JV performance, by and large, has been on track. We all were very concerned when our ethanol prices went up. Our EO costs started to become less competitive to us. But I think actions in terms of improving the product mix, working closely with our customers, importing wherever required, trading in some areas and with a bit of good luck right now, I think the JV is doing quite well, not only for the quarter, but for the time that we've seen. Anand, would you like to add something?

40:02 Yes. Hello? Yes. Yes, sir. So for this quarter on on the daily front, I think so we have posted 21 crores property on the profitability front. So the... Sir, are these numbers sustainable going ahead? I think that this is a significant jump. If you take the last year, annualized number was for $46.47 crore. And q on q also, we have seen a good jump. Last year on year comparison is flat, but only wanted to understand the color and the nature as you mentioned just now that we we can expect the the the trend to continue. So that understanding is correct?

40:50 Prakis, look. Maybe I will not split too many here, but by and large, it is a fair assumption. See, if I get my number correct and Anand, you can correct me, the PAT number was closer to INR 19 crores for the same quarter last year anyway. So INR 21 crores this year is not something which is completely out of the blue or completely unexpected. Yes, there are just the fact that it has been a good quarter and there have been some tailwinds, which is fine. But I think there are reasons and I deliberately delve into saying that I'm not only talking about the JV performance for the quarter, but broadly to take an overall picture for the last four years, it's by and large been at the plan of perhaps better despite the significant headwinds that we faced.

41:41 So which I, you know, I I do take some consolations on. Right, sir. Thank you once again for a very revamped investor presentation. There there are a lot of inputs for us to ponder upon. And thank you for simplifying that very well articulated, sir. And all the best So which means that Gatin is doing a good job right from the beginning? Yes, sir. It's a commendable one. I must use the right word there, sir. It answers many of the questions. So I'm being on the lighter note, but that is me.

42:52 Thank you, Nakae. Thank you. Thank you. The next question comes from the line of Vignesh Ayer from Sequent Investments. Please go ahead. Sir, thank you for the opportunity. So my question is on the IBM Spirit segment. So two questions from my side. So firstly, sir, can you share the number for prestige and above segment, you know, specifically, if you could... In terms of what is the number of cases and what was the growth in that category specifically? Okay. I look at the IMF sales segment, we gave you a number of point 4,000,000.

43:42 Prestige and above is roughly zero five million. And this is almost double of what it was last year. Sorry, I missed the last part. Sorry. This is almost double of what it was last year in the same period. 500,000 is P and A and above. Okay. Prestige, then above is half of the total cases, and which is double of what you did last year is what you said. Right? Yes. Yes. Okay. And so can I get, you know, this this data you've shared for the first time as part of the presentation, I wanted to just understand for FY '26, what was the IMF and revenue, and what was the total number of cases?

44:29 If you could... If you have that number, I can share it. The... For IMF and the total number of cases was 3,400,000 for the full year. Okay. And what was the total revenue from IMF? The revenue, I will have to get back to you. I don't have it off the hook. Yes. Okay. There's some questions. I think directly to INDIAGLYCO, Glycols, we will get back to you with more detail. Yes. Perfect, sir. Perfect. Yeah. That's all from my side. Thank you. Thank you. The next question comes from the line of Akash Gupta, an individual investor. Please go ahead. Good evening, sir.

45:17 So I have very small very small two questions. So in your PPT, you know, in the first idea spirit segment, you said that the revenue is $3.71 crores, including other operating income. I assume that the target job work is included in that, and that was around INR 10 crores. Is that correct? That is one of the components. Yes. Okay. What are the what is the other components, sir? There are there are other sales, there are EMF sales, and and there is there is power sales from. Okay. All combined 10 crores? Yes. Okay.

46:03 So my other question is... So I was just going through this on on. So the five Yes. See. That you Raji, your voice is not clear. Is it better now, sir? Yes. So I was just going through the five Amrut's products that you have given, Macintosh whiskey, Macintosh fries, distilled grain fusion, single malt, and Amarantham. I assume the nature of partnership with Amrut is same across four four, where you'll be you'll be responsible for distribution and marketing of all five in select North Indian markets? In select North Indian market for the time being and we wish to extend it to some of the other markets, particularly in the East when we venture in those markets.

46:53 If you look at our presence, they are predominantly concentrated in the West and South. They have very insignificant presence in the North directly and the East. Okay. Okay. And would you be able to tell us how much is the royalty that you go to unlock? That is something which we cannot deliver on this. Okay. Okay. Right. Thank you so much, sir. Thank you, Akash. Thank you. Participants who wish to ask your question may press star and one. We have the next question from the line of Aman, an individual investor.

47:41 Please go ahead. Please unmute your line and proceed with your question. Hello? Hello? Yes. Please go ahead. Hello? Voice is not clear. I'm not able to hear your question properly. Sir, I want to know EBITDA quarter by quarter basis, half to quarter impact in the percentage comp.

48:29 December December 25, we are up to 10.26%. So mark negative five point one six and one point six nine June quarter, June 2016. Hello? Negative. No. You are you are comparing quarter by quarter the EBITDA. Yes, sir. I'm quoting... Comparing that and of course, in the CIG to interest and that will be Last quarter, means 03/31/2026, there was an income out of the dividend, okay, from the clearing, which was about 39.

49:28 So that's why in the last quarter, the EBITDA was about INR $20.03 crores. In the current quarter, since there is no dividend income because the whole dividend income comes So in the last that's why this quarter, we have this EBITDA of INR 170 crores. EBITDA growth 10% negative 5.161, 1.691. Okay?

50:42 So look, the strategy for the demerger broadly is multiple fold. First of all, the Portable Spirits business has gathered some scale, both in terms of volume as in profitability, and it is a consumer business. So the dynamics of a consumer business, as you would understand, are significantly different from a B2B business. And we thought that, that will bring us much more focus in that business one. Second thing is, both in terms of partners as well as investors, many people want much better clarity on what they're investing in rather than a mix up. So some people have an appetite to invest in consumer businesses. Some people have an appetite to invest in B2B technology businesses.

51:29 So Hello? That Hello? Sorry to interrupt, mister Hammond. I request you to please rejoin the queue for any follow-up questions. The last question comes from the line of Prathyam Ladha from Omni Management LLP. Please go ahead. I joined the call late, but sorry if my question has been all... Already answered. Just one question. There are a number of cases grew this year, but revenue didn't grow proportionately. So what was the reason? Like, when India is saying that we are moving towards the immunization, and in this other end, we see that volumes are growing much faster than even in news.

52:20 Good question. And, you know, he answers that and two reasons that. One is the brand mix and the other is the state mix. When you look at our mix, I told you we operate in three states. The more growth that we get from Uttarakhand, or that will for us, that has growth that higher growth that we get in Delhi does not order so well for us. That is question answered to one part of the question. The other is in terms of brand mix, our in the IMFL category, our mass premium segment grew faster. That's because we had new offerings in those segments. Going forward, in the outlook that I presented to you, I spoke to you about a couple of offerings in the dealer 60 segment. I spoke to you about an offering in the semi premium motor car segment, and I spoke to you about renewed focus on the white spirits business.

53:17 These are high margins, and that is how we will try and improve our margins going forward and as well as revenue. You'll find our revenue growth exceeding the volume growth in due course of time because of the premium mix. Okay, sir. Thank you so much for taking my question. Thank you. Thank you. We'll take one more question from the line of Amit Mishra from Daksham Capital. Sir, my first question is for FY '27, what percentage of revenue for total discrete will be coming from I and Apple?

54:09 Percentage of revenue coming in from IMF one would be in excess of 30%. Okay. And sir, what will be the EBITDA margin for INF1 and country liquor for this year? So if I were to answer that question for you, contrary to how most of the other investors feel, Okay.

55:08 Thank you. We'll take that as the last question. And I would now like to hand the conference over to the management for closing comments. Thank you, and over to you. Thank you very much all for your interest in our organization in India Glycols and your good wishes. Hopefully, we've given you a good picture for where we stand right now and the direction that we are taking way forward. And I also thank some of you who appreciated the positive improvements in our investor presentation, etcetera. Thank you for your feedback on this. We'll continue to take your feedback and become better. Thank you. Have a good day, and have a good weekend, everybody. Thank you very much. On behalf of Encred Equities, that concludes this conference.

55:59 Thank you for joining us, and you may now disconnect your line.