Q1 2027 Gujarat State Fertilizers & Chemicals Ltd Earnings Call

August 13, 2026

Speaker #1: Ladies and gentlemen, good day and welcome to the Gujarat State Fertilizers & Chemicals Q4 and Q1 FY27 earnings conference call. This call is being hosted by Anurag Services LLC on behalf of GSFC Limited.

Operator: Ladies and gentlemen, good day and welcome to the Gujarat State Fertilizers & Chemicals Limited Q1 FY27 earnings conference call. This call is being hosted by Anurag Services LLP on behalf of GSFC Limited. Representing the management, we have Mr. S. K. Bajpai, Senior VP and CFO, alongside other senior executives. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touchtone phone. Please note that this call is being recorded. I now hand the conference over to Mr. S. K. Bajpai, Senior VP and CFO, GSFC Limited. Thank you, and over to you, sir.

Speaker #1: Representing the management, we have Mr. S. K. Bajpai, Senior VP and CFO, alongside other senior executives. 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.

Speaker #1: Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touch-tone phone. Please note that this call is being recorded.

Speaker #1: I now hand the conference over to Mr. S. K. Bajpai, Senior VP and CFO, GSFC Limited. Thank you, and over to you, sir.

Speaker #2: Thank you, Shruti. Good afternoon, everyone, and thank you for joining us today. On behalf of Gujarat State Fertilizers & Chemicals Limited, I welcome you to discuss our performance in Q1, financial year 2026–2027.

S. K. Bajpai: Thank you, Stuti. Good afternoon, everyone, and thank you for joining us today. On behalf of Gujarat State Fertilizers & Chemicals Limited, I welcome you to discuss our performance in Q1 financial year 2026-27. I hope you had a chance to review the financial results, media release, and investor presentation available on the stock exchanges and also on our company's website. If we see consolidated financial performance, sales have increased by 64% from INR 2,184 crore to INR 3,583 crore. PBT is also increased by 11% to INR 205 crore, and PAT is increased by 14% to INR 159 crore. In case of quarter over quarter, the sales has been increased by 36% to INR 3,583 crore. PBT is increased by 214% to INR 205 crore, and PAT is increased by 204% to INR 159 crore. Q1 26/27 has been a strong quarter for GSFC, marked by several important milestones.

Speaker #2: I hope you had a chance to review the financial results, media release, and investor presentation, which are available on the stock exchanges and also on our company's website.

Speaker #2: If we see consolidated financial performance, sales have increased by 64%, from ₹2,184 crore to ₹3,583 crore. EBITDA has also increased by 11% to ₹205 crore, and PAT has increased by 14% to ₹159 crore.

Speaker #2: In the case of quarter-over-quarter, sales have increased by 36% to ₹3,583 crores. EBITDA has increased by 214% to ₹205 crores, and PAT has increased by 204% to ₹159 crores.

Speaker #2: Q1 2026-2027 has been a strong quarter for GSFC, marked by several important milestones. We achieved our highest-ever Q1 revenue of ₹3,581 crore, driven by record Q1 fertilizer sales of ₹2,947 crore, representing year-on-year growth of 65% and 82%, respectively.

S. K. Bajpai: We achieved our highest ever Q1 revenue of INR 3,581 crore, driven by record Q1 fertilizer sales of INR 2,947 crore, representing Y-o-Y growth of 65% and 82% respectively. Our industrial product segment sales of INR 635 crore and EBIT of INR 116 crore were the second highest for any Q1 to date. Profit after tax increased by 15% Y-o-Y to INR 161 crore, reflecting the company's ability to deliver profitable growth despite a challenging operating environment. Our performance was supported by effective crisis management, agile operational planning, optimization of product mix, and proactive pricing actions, enabling uninterrupted operations and supply continuity amid heightened global uncertainty. Now we discuss about the fertilizer segment performance.

Speaker #2: Our interested product segment sales of ₹635 crore and EBIT of ₹116 crore were the second highest for any Q1 to date. Profit after tax increased by 15% year-on-year to ₹161 crore, reflecting the company's ability to deliver profitable growth despite a challenging operating environment.

Speaker #2: Our performance was supported by effective crisis management, agile operational planning, optimization of product mix, and proactive pricing actions, enabling uninterrupted operations and supply continuity amid heightened global uncertainty.

Speaker #2: Now we discuss the fertilizer segment performance. The fertilizer segment registered a robust operating performance, with sales volume increasing 17% year-on-year to 5.26 lakh metric tons, supported by higher manufactured and traded DAP sales.

S. K. Bajpai: The fertilizer segment registered a robust operating performance, with sales volume increasing 17% Y-o-Y to 5.26 lakh metric tons, supported by higher manufactured and traded DAP sales, and Government's DAP special package, which helped offset international price variations. However, the quarter was also characterized by unprecedented inflation in key raw material prices arising from evolving geopolitical developments. Sulfur prices increased by 231%, ammonia by 144%, natural gas by 38%, and P2O5 by 30% on Y-o-Y basis, resulting in compression of fertilizers EBIT margin from 8.49% to 4.09%. Industrial product segment performance. It has delivered an excellent performance with 15% growth in sales and more than fourfold increase in EBIT, supported by higher caprolactam sales and significant improvement in caprolactam margin spread. Despite volatile global market and supply chain disruptions, the company maintained operational resilience through disciplined execution and timely business decisions. Financial position and CapEx plans.

Speaker #2: And the government's DAP special package, which helped offset international price variations. However, the quarter was also characterized by unprecedented inflation in key raw material prices, arising from evolving geopolitical developments.

Speaker #2: Sulfur prices increased by 231%, ammonia by 144%, natural gas by 38%, and P2O5 by 30% on a year-on-year basis, resulting in compression of the fertilizers EBIT margin from 8.49% to 4.09%.

Speaker #2: The interested product segment delivered an excellent performance with 15% growth in sales, and more than a four-fold increase in EBIT, supported by higher capital income sales and significant improvement in capital engine spread.

Speaker #2: Despite volatile global markets and supply chain disruptions, the company maintained operational resilience through disciplined execution and timely business decisions. Regarding our financial position and capex plans, we continue to maintain a strong balance sheet with no long-term debt, healthy net worth, and adequate liquidity.

S. K. Bajpai: We continue to maintain a strong balance sheet with no long-term debt, healthy net worth, and adequate liquidity. Government of India's outstanding support on release of fertilizer subsidy has kept the working capital levels at optimum levels. As of date, the company has received subsidy dues up to third week of 26 July. This provides the foundation for the company to execute our growth roadmap through strategic CapEx initiatives, including the Ammonium Phosphate Sulphate capacity enhancement project and the phosphoric acid and sulfuric acid projects at Sikka, which will further strengthen our integrated operations and support sustainable long-term value creation. We talk about outlook for Q2 2026/2027. Looking ahead, the revival of monsoon during July has improved the demand outlook for the agri input sector ahead of the busy season.

Speaker #2: The Government of India's outstanding support on the release of fertilizer subsidy has kept the working capital levels at optimum levels. As of date, the company has received subsidy dues up to the third week of July.

Speaker #2: 2026. This provides the foundation for the company to execute our growth roadmap through strategic capex initiatives, including the APS capacity enhancement project and the phosphoric acid and sulfuric acid projects at SIPCA.

Speaker #2: This will further strengthen our integrated operations and support sustainable long-term value creation. If we talk about the outlook for Q2 2026-2027, looking ahead, the revival of the monsoon during July has improved the demand outlook for the agri-input sector ahead of the rainy season.

Speaker #2: At the same time, geopolitical developments, including the Russia-Ukraine conflict and tensions in the Middle East, continue to create uncertainty around the availability and pricing of critical raw materials and finished fertilizers.

S. K. Bajpai: At the same time, geopolitical developments, including the Russia-Ukraine conflict and tensions in the Middle East, continue to create uncertainty around the availability and pricing of critical raw materials and finished fertilizers. Evaluated input costs, particularly for sulfur and phosphoric acid, are expected to influence industry product mix, with demand likely to remain skewed towards DAP. Against this backdrop, GSFC remains focused on optimizing its product portfolio, strengthening operational efficiencies, and maintaining prudent inventory positioning. The caprolactam margin spread is expected to remain stable to soft in the near term amid continued volatility in crude oil prices and geopolitical uncertainties in the Middle East. This could impact feedstock economics and exert some pressure on margins across the caprolactam Nylon value chain. On the demand front, melamine is expected to witness an improvement in both domestic and export markets. Export demand for HX Crystal is expected to remain consistent.

Speaker #2: Evaluated input costs, particularly for sulfur and phosphoric acid, are expected to influence the industry product mix, with demand likely to remain skewed towards DAP. Against this backdrop, GSFC remains focused on optimizing its product portfolio to strengthen operational efficiencies and maintain prudent inventory positioning.

Speaker #2: The capital income engine spread is expected to remain stable to soft. In the near term, EBIT continued volatility in crude oil prices and geopolitical uncertainties in the Middle East.

Speaker #2: This could impact feedstock economics and exert some pressure on margins across the capital income nylon value chain. On the demand front, Valamine is expected to witness an improvement in both domestic and export markets. Export demand for HX Crystal is expected to remain consistent.

Speaker #2: While domestic demand is likely to remain stable, demand across other interested products is also expected to remain steady, providing stability to the overall segment outlook.

S. K. Bajpai: While domestic demand is likely to remain stable, demand across other industrial product is also expected to remain steady, providing stability to the overall segment outlook. I will now turn over the call for questions and answers. Thank you. Hello, Stuti.

Speaker #2: We now turn over the call for questions and answers. Thank you. Hello, Shruti.

Speaker #1: Yes, Sir. We'll start with the question-and-answer session.

Operator: Yes, sir. Shall we start with the question and answer?

Speaker #2: Yeah, yeah, please.

S. K. Bajpai: Yeah. Please.

Speaker #1: 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 their touchtone telephone.

Operator: 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 their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use answers for asking questions. Ladies and gentlemen, we will wait for a moment while the questions are assembled. The first question is from the line of Saket Kapoor from Kapoor & Company. Please proceed.

Speaker #1: If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to proceed with their questions by asking a question.

Speaker #1: Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Saqib Kapoor from Kapoor & Company.

Speaker #1: Please proceed.

Speaker #3: Yeah. Namaskar, Bajpa ji. Hope I'm audible.

Saket Kapoor: Yeah. Namaskar, S.K. Bajpai. Hope I am audible.

Speaker #2: Yeah, namaskar. We are audible. Please proceed.

S. K. Bajpai: Yeah. Namaskar. You are audible. Please.

Speaker #3: Yes, sir. Although it is in the format that we compare year-on-year inflationary trends and profitability, if you could give us some sense of how we exited the March quarter in terms of the price trends of RM, and then the consequent quarter of June.

Saket Kapoor: Yes, sir. Sir, although it is in the format that we compare year-on-year inflationary trends and profitability, if you could give us some sense of how we exited March quarter in terms of the price trends of RM and then the consequent quarter of June. Sakhi, how are they shaped up? I think there are not that significant in that aspect than what it is compared on a year-on-year basis. Currently, how are things shaping up, especially for the RM basket?

Speaker #3: So the key, how was that shaped up? I think they are not that significant in that aspect. Then what is it compared on a year-on-year basis?

Speaker #3: And currently, how are things shaping up, especially for the RM basket?

Speaker #2: Yeah, thank you, Saqib. Actually, quarter four, if you see, it was not a normal season for the fertilizer segment. So quarter four last year was dull, and there is a lot of improvement in the sales as well as PBT and PAT.

S. K. Bajpai: Yeah. Thank you, Saket. Actually, Q4, if you see, it was not a normal season for the fertilizer segment. Q4 last year was dull, and there is a lot of improvement in the sales as well as PBT and PAT. It is more than triple the figures. If you see the figures of the PBT and PAT, it is three times higher than the last quarter. At the same time, raw material prices continue to inflate, and this is a disturbing trend as far as fertilizer segment is concerned. Sulfur prices have been now more than $1,000 a metric ton in the international prices market. P2O5 $1,700. It is again a jump of around $350 or $340 per metric ton. Ammonia also, it is a little bit slowdown in the ammonia pricing. Other than that, natural gas is again increased in Q1.

Speaker #2: It is more than triple the figures. If you see the figures of the PBT and PAT, it is three times higher than the last quarter.

Speaker #2: But at the same time, raw material prices are continuing to inflate, and this is a disturbing trend as far as the fertilizer segment is concerned.

Speaker #2: Sulfur prices have now been more than $1,000, as per international market prices, and P205 is at $1,700. It is, again, a jump of around $350 or $340 per metric ton.

Speaker #2: Ammonia—also, there is a little bit of slowdown in the ammonia pricing, but other than that, natural gas has again increased in Q1.

Speaker #2: Actually, in quarter four, there was a this harbours closure impact and the there was a panic type situation. So whatever inventory we were having, that was utilized in the quarter four, but the raw material pricing impact actually came in the first quarter of the quarter four.

S. K. Bajpai: Actually, in Q4, there was this Hambach closure impact, and there was a panic type situation. Whatever inventory we were having, that was utilized in Q4. But the raw material pricing impact actually came in the first quarter of Q4. Anyhow, we have dealt it very nicely. Whatever product we can produce which are economically viable, that we have switched over from the basket where there is negative contribution or negative margin.

Speaker #2: But anyhow, we have dealt with it very nicely. And whatever product we could produce, which is economically viable, we have switched over from the basket where there is negative contribution or negative margin.

Speaker #3: Thanks. So at the exit of Q1, RM prices—you mentioned sulfur is now up to $1,000. What was the average for our June quarter?

Saket Kapoor: The exit of Q1 RM prices you mentioned about sulfur is now up to $1,000. What was the average for our June quarter?

Speaker #2: It is around $900, $800 to $900 because if you see in the rupee term, it is around $82,000 per metric ton. On an average in the quarter one, because we purchased from the Reliance and Naira or wherever we are getting the sulfur, but today it is ranging around more than 1,15,000 rupees per metric ton.

S. K. Bajpai: It is around $800 to $900 because if you see in the rupee term, it is around INR 82,000 per metric ton on an average in Q1, because we purchase from Reliance Industries Limited and Nayara or wherever we are getting the sulfur. But today it is ranging around more than INR 115,000 per metric ton. It is continuously increasing. That is a very dangerous trend. We are approaching the international market also for the sulfur. If we get one or two segment at the appropriate pricing level, we are trying for that.

Speaker #2: So it is continuously increasing. That is a very dangerous trend. So we are approaching the international market also for the sulfur. If we get one or two segments at the appropriate pricing level, we are trying for that.

Speaker #3: Okay. And sir, if you could just give us some impacts of the increase in RM prices on, say, June exit and today—how are those going to affect the margin profile for both the segments?

Saket Kapoor: Okay. Sir, if you could just give us some impact of the increase in the RM prices on, say, June exit and today, how are those going to affect the margin profile for both the segments? I think so we had done 4% EBIT on the fertilizers. That is a low number and we can understand the factors that have led to it. I think so the performance from the IP was better because of the better caprolactam spread. Factoring the current inflation trend and the RM prices and also in consideration with finished one, how are margins likely to trend going ahead?

Speaker #3: I think we had about 4% EBIT on the fertilizer segment. That is a low number, and we can understand the factors that have led to it.

Speaker #3: And I think the performance from the IP was better because of the better capital income spread. So, factoring in the current inflation trend and the RM prices, along with the contribution from the finished one, our margins are likely to trend going ahead.

S. K. Bajpai: As you know that in the case of urea and DAP, the government has provided the full subsidy, so there is no danger of any price rise. Even if the natural gas prices increased, we get the subsidy in the urea. As far as DAP is concerned, a special package is announced by the government, in which whatever the import cost is there, we are getting 4% margin over the imported price. So in case of DAP and urea, we are fully covered. Other than that, whatever fertilizers are there, that is a danger because where the sulfuric acid is used, that gives us a real uncomfort. So we are switching from product to product. We are also arranging some ammonium sulfate type product, which is not viable in India to produce. So we are getting it imported from the other countries, which is reasonably good price.

Speaker #2: As you know, in the case of urea and DAP, the government has provided the full subsidy. So there is no danger of any price rise.

Speaker #2: Even if natural gas prices increase, we get the subsidy in urea. As far as DAP is concerned, a special package has been announced by the government, in which, whatever the import cost is, we are getting a 4% margin over the imported price.

Speaker #2: So in case of DAP and urea, we are fully covered. Other than that, whatever fertilizers are there, that is a danger, because where the subsidy tacit is used, phosphoric acid is used. That is what gives us real discomfort.

Speaker #2: So we are switching from product to product, and we are also arranging some ammonium sulfate-type product, which is not viable to produce in India.

Speaker #2: So we are getting it imported from other countries at a reasonably good price. So that is the way we are managing.

S. K. Bajpai: That is the way we are managing.

Speaker #3: Right, sir. Just the concluding part. So with respect to the market-linked fertilizers, sir, exactly where is the demand risk to it, or what are the definite RM increases, ad hoc or ad hoc prices—is there demand destruction?

Saket Kapoor: Right, sir. Just concluding part. So with respect to the market-linked fertilizers, sir, exactly there is a demand risk to it? Or what are the Definitely RM increase ad hoc or have hoc prices is a demand destruction. But when we say that it is alarming, it is alarming in respect of cost of production and the selling price, or for the demand aspect also, and we are unable to pass on the RM increase to our finished prices?

Speaker #3: But when we say that it is alarming, is it alarming with respect to cost of production and the selling price, or for the demand aspect also? And are we unable to pass on the RM increase to our finished prices?

Speaker #2: Yeah, this is a difficult question, but as far as my oversight goes, there is no demand problem. It is only the cost factor which is not comfortable, not just for GSFC.

S. K. Bajpai: Yes, this is a difficult question, but as far as my oversight goes, there is no demand problem. It is only the cost factor which is not comfortable, not for GSFC only, all the fertilizer companies who are producing NPKs and ammonium sulfate and APS type product, and mainly due to the sulfur pricing. So if the sulfur pricing can be curtailed, that would be the solution. But demand, there is no demand problem as such in the market. My marketing head is sitting here. He will tell further what is the demand in case of phosphatic fertilizers.

Speaker #2: All the fertilizer companies who are producing NPKs and ammonium sulfate and APS-type products, and mainly due to the sulfur pricing. So if the sulfur pricing can be curtailed now, that will be the solution.

Speaker #2: But demand, there is no demand problem as such in the market. And my marketing head is sitting here; he will tell further what is the demand in case of phosphatic fertilizers.

Speaker #3: Thank you, sir. The demand destruction, to some extent, is definitely there. That we have seen in the All India picture of fertilizers. Going forward, we assume that sulfur prices will be more or less at the same level, or there is a slight tightening also considered, considering the upcoming seasons and other sulfur requirements.

[Company Representative] (GSFC): Thank you, sir. The demand destruction to some extent is definitely there. That we are seeing in the all India picture of fertilizers. Going forward, we assume that the sulfur prices will be more or less at the same level, or there is a slight tightening also considered, considering the upcoming seasons and other sulfur requirements. The main thing what we impacted was the monsoon thing, the pessimistic forecast what we have seen in both IMD and Skymet. But this situation has improved a little bit in July, and now the deficit is much more reduced. We are seeing a little bit of positivity there. That's all from my side.

Speaker #3: So the main thing what we impacted was the monsoon, the pessimistic forecast that we had seen from both IMD and Skymet. But this situation has improved a little bit in July.

Speaker #3: And now, the deficit is much more reduced, so we are seeing a little bit of positivity there. That's all from my side. Okay.

Saket Kapoor: Okay. Sir, now with respect to, I think so, the CapEx part. We had mentioned about the commissioning of that train modification for APS at Sikka unit. What is the current update on the same, and how are we going to benefit? I think so, it will then give us more flexibility for the product profile depending upon the market condition, if I'm not wrong.

Speaker #3: And sir, now with respect to, I think, the capex part, we have mentioned about the commissioning of that train modification for APS at the SICCA unit.

Speaker #3: So what is the current update on the same and how are we going to benefit? I think so I think it will be then give a more flexibility for the product profile depending upon the market condition if I'm not wrong.

Speaker #2: Yeah, actually the commissioning of the DAP train to be converted for fungible production of APS or DAP is more or less on schedule. And within a month or two, we will be commissioning that line.

S. K. Bajpai: Yeah. Actually, this commissioning of DAP train to be converted for renewable production of APS or DAP is on schedule more or less, and within a month or two, we will be commissioning that line. It is a temporary phase that the sulfur pricing is high. As soon as we get the source of sulfur at a reasonable level, I think APS and again, all the NPK grade of fertilizer will be produced at our Sikka unit. We will be commissioning our line and we are simultaneously arranging and finding out the way how we can produce ammonium phosphate sulfate. DAP as such is imported, so there is no scarcity of DAP and urea. But we are finding out the way how we can produce the other phosphatic fertilizers at our Sikka unit.

Speaker #2: It is a temporary phase that the sulfur pricing is high. As soon as we get the source of sulfur at a reasonable level, I think APS and again, all the NPK grades of fertilizer will be produced at our SICCA unit.

Speaker #2: So, we will be commissioning our line, and we are simultaneously arranging and finding out the ways how we can produce ammonium phosphate sulfate and DAP, as such is imported.

Speaker #2: So, there is no scarcity of DAP and urea. But we are finding out the way how we can produce the other phosphatic fertilizers at our SICCA unit.

Speaker #2: So in the long run, we are also proposing to put up a phosphoric acid, sulfuric acid project at SICCA. The tender has already been received by us and we will be opening the tender and finalizing it in a short time.

S. K. Bajpai: In the long run, we are also proposing to put a phosphoric acid, sulfuric acid project at Sikka. The tender has already been received by us, and we will be opening the tender and finalizing it in a short time. Other than that, there are so many other projects going on. Yesterday in the board meeting, we got the approval also. But we will disclose only after the finalization of technology tie-up and the financial model. So you have to wait for three months. In the next quarter, I think I will be in a position to disclose much more products which are taken up by the GSFC.

Speaker #2: Other than that, there are so many other projects going on, struggling in the board meeting. We got the approval also. But we will disclose only after the finalization of technology tie-up and the financial model.

Speaker #2: So, you have to wait for three months, in the next quarter. I think I will be in a position to disclose much more about the products which are taken up by GSFC.

Speaker #3: Okay. That is in the fertilizer segment only, or the industrial chemical also?

Saket Kapoor: Okay. That is in the fertilizer segment only, or the industrial chemical also?

Speaker #2: No, it is both mixed because in the H we have the acquired the as big land as in the fertilizer Nagar Baroda unit. So we will be it will be having a integrated complex like thing.

S. K. Bajpai: No, it is both mixed, because in Dahej, we have acquired as big land as in the Fertilizer Nagar Baroda unit. So it will be having an integrated complex like thing. It will be having some fertilizer and also the industrial product.

Speaker #2: It will be having some fertilizer and also the industrial product.

Speaker #3: Okay. So that will be a big impetus for growth and profitability going forward.

Saket Kapoor: Okay. So that will be a big impetus for growth and profitability going in.

Speaker #2: Yes, yes, yes, yes.

S. K. Bajpai: Yes.

Saket Kapoor: Okay. Lastly, sir, when we do the peer comparison in the space, if we eliminate the urea and the DAP part of the story where we have the blessing of the government, in terms of profit margins. In other NPK and the APS, which are the private players wherein we are competing? And sir, do Shree Pushkar Chemicals also have the similar product profile? And if the marketing team person can apprise me on the same, and we compete with them on the same product profile, or they are different than our line of business?

Speaker #3: Okay. Lastly, sir, when we do the peer comparison in this space, we should eliminate the urea and the DAP part of the story, where we have the blessing of the government in terms of profit margins.

Speaker #3: In other NPK and the APS, which are the private players wherein we are competing? And sir, does Shri Pushkar Chemicals also have a similar product profile? If the marketing team person can apprise me on the scene—do we compete with them on the same product profile, or are they different from our line of business?

Speaker #2: Well, basically in the NPK segment, we are producing ammonium phosphate sulfate 20, 20, 0, 30. And the ammonium sulfate at the fertilizer complex. Other than that, there is one NPK grade 9, 0, 9, 24, 24 we are producing.

S. K. Bajpai: Basically, in NPK segment, we are producing ammonium phosphate sulfate 20-20-0-13, and the ammonium sulfate at the Fertilizer Nagar complex. Other than that, there is one NPK grade, 09-24-24 we are producing, and 10 and 12 that we are importing and making it available for the farmers. But what other companies are doing and what our competition is with the other companies I don't think that there is any demand of our product in the market. Because as such, the demand has gone down drastically because of the pricing impact on the NPK grade rock fertilizers. I don't foresee any demand threat as far as fertilizer is concerned.

Speaker #2: And 10 and 12, that we are importing and making available for the farmers. But what are other companies doing, and what is our competition with the other companies?

Speaker #2: I don't think that there is any demand for our product in the market, because as such, the demand has gone down drastically due to the pricing impact on the NPK grade rock fertilizers.

Speaker #2: So I don't foresee any demand threat as far as fertilizer is concerned. And actually, in the Rabi season, I personally feel that we have to be ready for as much fertilizer production or fertilizer import as can be done by the company.

S. K. Bajpai: Actually, in Rabi season, I personally feel that we have to be ready for as much as fertilizer production or fertilizer import can be done by the company, so that there should not be any scarcity in the field in the Rabi season.

Speaker #2: So that there should not be any scarcity in the field in the WCU.

Speaker #3: Okay, sir. I missed your comment. Are you talking about lower demand or higher demand, or about how the demand placement is, when you are mentioning the competition part?

Saket Kapoor: Sir, I missed your comment. You are talking about lower demand or higher demand or how is the demand placed. When you are saying that for the competition part, I was just trying to make sense in our NPK and APS, who are our key competitors in the same region. I missed your point completely, sir.

Speaker #3: I was just trying to make sense—in our NPK and APS, who are our key competitors in the same region? So I missed your point completely, sir.

Speaker #2: Okay. So, my marketing head will reply.

S. K. Bajpai: Okay. My marketing head will reply.

[Company Representative] (GSFC): Hello.

Speaker #4: Hello.

Speaker #3: Yes, sir, tell me.

Saket Kapoor: Please tell, sir.

Speaker #2: Sir, particularly you will understand that in these current two months, there is an availability constraint of various fertilizers because most of the fertilizer companies are operating at not a 100% level.

[Company Representative] (GSFC): Sir, particularly you will understand that in these current 2 months, there is availability constraint of various fertilizers. Because most of the fertilizer companies are operating at not 100% level. So that is now, I think, there is a scarcity of the product is going on. Even we are having some products limited to extent because farmers are asking that product, and they are not available in plenty. So even the phosphoric acid, the raw materials what we are sourcing, they are also not easily available. So the demand is definitely going to be strong in the current quarter. We are also coming new season, the Rabi season is really strong in the northern states, so that will definitely gearing up for the further higher sales. But the constraint is the availability. We need government support for that. Because the viability is a question.

Speaker #2: So that is—now, I think there is a scarcity of the product going on. Even we are having some products limited to an extent because farmers are asking for that product, and they are not available in plenty.

Speaker #2: So even the phosphoric acid raw materials, what we are foreseeing, they are also not easily available. So the demand is definitely going to be strong in the current quarter, and we are also coming into the new season. Rabi season is really strong in the northern states.

Speaker #2: So that will definitely gear us up for higher sales going forward. But the constraint is availability, so we need government support for that.

Speaker #2: Because the viability is a question.

Speaker #3: Got it, sir. So all our NPK and the APS part are also not market-driven. Are there gaps in the selling also, or are those market-driven?

Saket Kapoor: Correct, sir. So all our NPK and the Ammonium Phosphate Sulphate partners also are not market-driven. There are caps to the selling also, or are those market-driven? The selling?

Speaker #3: The selling?

Speaker #2: No, no. Most of the NPK grades of fertilizers, the MRP is more or less controlled by the producers. But it is not profitable because we cannot increase the prices at the same rate as the increase in raw material prices.

S. K. Bajpai: No. Most of the NPK grade of fertilizers, the MRP is more or less controlled by the producers. But it is not profitable because we cannot increase the prices as per the same rate what the increase in the raw material prices. So that is the main reason, because the farmer should also afford to purchase at the level where they can afford. Some other companies, they might be having some other process, so they are selling at a cheaper rate or that is also one problem. But NPK grade of fertilizers, the market pricing is open, but only the subsidy part, the government fixed the subsidy per ton, so that we are getting from the government.

Speaker #2: So, that is the main reason, because the farmers would also be able to purchase at the level where they can afford. And some other companies, they might be having some other process.

Speaker #2: So they are selling at a cheaper rate, and that is also one problem. But for NPK grade fertilizers, the market pricing is open.

Speaker #2: But only the subsidy part—the government fixes the subsidy part. So that we are getting from the government.

Speaker #3: Got it, sir. Okay, sir. We will wait for Q2 and then the update from the new projects—the timeline and all other details, as alluded.

Saket Kapoor: Correct, sir. Okay, sir. We will wait for Q2 and then the update on the new projects, the timelines and all other details as alluded. All the best to the team, sir. Thank you.

Speaker #3: And all the best to the team, sir. Thank you.

Speaker #2: Thanks. Thank you, sir.

S. K. Bajpai: Thanks. Thank you, sir.

Speaker #4: Thank you. Thank you, sir.

[Company Representative] (GSFC): Thank you. Thank you, sir.

Speaker #1: Thank you. Before we take the next question, we would like to remind participants that you may press star and one to ask a question.

Operator: Thank you. Before we take the next question, we would like to remind participants that you may press star and one to ask a question. Participants who wish to ask a question, please press star and one now. The next question is from the line of Neeraj from Anvil Wealth. Please proceed.

Speaker #1: Participants who wish to ask a question, please press star one now. The next question is from the line of Mira. Mira, please proceed.

Speaker #3: Yeah, good afternoon, sir. I have two questions. So, sir, first is on the fertilizer side. Like you mentioned, the MRPs are generally fixed by us and they can't be increased in tandem with the increase in the raw material cost.

[Analyst] (Anvil Wealth): Yeah, good afternoon, sir. I have two questions. First is on the fertilizer side, like you mentioned that the MRPs are generally fixed by us and they cannot be increased in tandem with the increase in the raw material cost. Just want to understand from you that, like the cost in terms of phosphatic, sulfur, and everything have gone up. Are you getting any sense from the government in terms of increasing the subsidy portion for NPKs for the upcoming Rabi season so that at least we can cover up the cost increases part? If you can just update on the same.

Neeraj Jamodia: Yeah, good afternoon, sir. I have two questions. First is on the fertilizer side, like you mentioned that the MRPs are generally fixed by us and they cannot be increased in tandem with the increase in the raw material cost. Just want to understand from you that, like the cost in terms of phosphatic, sulfur, and everything have gone up. Are you getting any sense from the government in terms of increasing the subsidy portion for NPKs for the upcoming Rabi season so that at least we can cover up the cost increases part? If you can just update on the same.

Speaker #3: So, just want to understand from you that, like, the cost in terms of phosphoric acid, sulfur, and everything has gone up. Are you getting any sense from the government in terms of increasing the subsidy portion for NPKs for the upcoming Rabi season?

Speaker #3: So that at least we can cover the cost increases part, if you can just update on the same.

Speaker #2: Yeah, neither. You are absolutely correct. Because every six months the government changes this—announcing the subsidy for the next six months. So, the declared subsidy will expire in September, and with effect from 1st October, new subsidy rates will be announced by the government.

S. K. Bajpai: Neeraj, you are absolutely correct. Because every six months government changes, announce the subsidy for the next six months. So if the declared subsidy will expire in September and with effect from 1 October, new subsidy dates will be announced by the government. So we are hoping that considering the raw material price increase, there must be some increase in the subsidy. So that will solve a lot of problems of the NPK grades manufacturers.

Speaker #2: So, we are hoping that, considering the raw material price increase, there must be some increase in the subsidy. That will solve a lot of problems for the NPK grade manufacturers.

Speaker #3: Correct, correct. And sir, when we see our volumes, what we have clocked in Q1, any guidance you would like to give in terms of the overall volumes we can do for FY27?

[Analyst] (Anvil Wealth): Correct. And sir, when we see our volumes, what we have clocked in Q1, any guidance you would like to give in terms of the overall volumes, what we can do for FY27?

Neeraj Jamodia: Correct. And sir, when we see our volumes, what we have clocked in Q1, any guidance you would like to give in terms of the overall volumes, what we can do for FY27?

Speaker #2: As per budget, we have I think more than 22 lakhs metric ton we have budgeted and we will be now the there is a good rent started in the July.

S. K. Bajpai: As for budget, we have, I think, more than 22 lakh metric ton we have budgeted. And there is a good rain started in July, and I think we will clock more than 22 lakh fertilizer sales at the end of the year.

Speaker #2: And I think that we will clock more than 22 lakh fertilizer sales at the end of the year.

Speaker #3: Correct. And this includes the trading portion also, right?

[Analyst] (Anvil Wealth): Correct. This includes the trading portion also, right?

Neeraj Jamodia: Correct. This includes the trading portion also, right?

Speaker #2: Yeah, yeah. Right.

S. K. Bajpai: Yeah.

Speaker #3: Correct, correct. Sir, also on the fertilizer side, our sulfuric acid plant started on January 26, and on a month-on-month basis, we have seen an increase in sulfur prices.

[Analyst] (Anvil Wealth): Correct. Sir, also on the fertilizer side, our sulfuric acid plant started in 26 January. Every month basis, we have seen an increase in the sulfur prices, but the sulfuric acid prices are increased on a spot basis. Has that benefit of increase in the sulfuric acid prices when we sell some portion of the sulfuric acid in the market has benefited us this quarter? If yes, if you can just help us understand that.

Neeraj Jamodia: Correct. Sir, also on the fertilizer side, our sulfuric acid plant started in 26 January. Every month basis, we have seen an increase in the sulfur prices, but the sulfuric acid prices are increased on a spot basis. Has that benefit of increase in the sulfuric acid prices when we sell some portion of the sulfuric acid in the market has benefited us this quarter? If yes, if you can just help us understand that.

Speaker #3: But the sulfuric acid prices have increased on a spot basis. So, has the benefit of the increase in sulfuric acid prices when we sell some portion of the sulfuric acid in the market benefited us this quarter?

Speaker #3: And if yes, could you help us understand that?

Speaker #2: Yeah, you are right. Because we have four sulfuric acid plants in GSFC, and because the sulfur price was very high, it was difficult.

S. K. Bajpai: Yeah, you are right because we have four sulfuric acid plant in GSFC. Because of the sulfur price very high, it was difficult, but still we are operating all the four plants. Because this production of sulfuric acid, we get the steam, which is required in the process for production of fertilizers and industrial products. Otherwise, we have to use natural gas from the boilers, and that steam is very costly. So we are producing all the sulfuric acid and selling at market, even if there is no much contribution gain in the sulfuric acid sale. But it is the requirement of the company to generation of steam and to be utilized in the process.

Speaker #2: But still we are operating all four plants. And because of this production of sulfuric acid, we get the steam which is required in the process for production of fertilizers and industrial products.

Speaker #2: Otherwise, we have to use natural gas for the boilers, and that steam is very costly. So we are producing all the sulfuric acid and selling it at market.

Speaker #2: Even if there is not much contribution again in the sulfuric acid sale, it is the requirement of the company for the generation of steam and to be utilized in the process.

Speaker #3: Got it, correct. Sir, second question is on the chemical side of our business. So I think from the last two to three quarters, we have seen stability in our profitability from the chemicals business.

[Analyst] (Anvil Wealth): Correct. Sir, second question is on the chemical side of our business. I think from last two, three quarters, we have seen a stability in our profitability from the chemicals business. Just wanted to understand from you how much of this number is sustainable given the fact that the prices of most of the products, what we manufactured, are on an elevated level. Apart from us, there is virtually no producer of those products into India. If you can help us understand the chemical portion much in detail, that would be helpful. Also, our melamine production and sales was virtually nil this quarter. What was the reason for that, and how we are looking for the balance part of FY27?

Neeraj Jamodia: Correct. Sir, second question is on the chemical side of our business. I think from last two, three quarters, we have seen a stability in our profitability from the chemicals business. Just wanted to understand from you how much of this number is sustainable given the fact that the prices of most of the products, what we manufactured, are on an elevated level. Apart from us, there is virtually no producer of those products into India. If you can help us understand the chemical portion much in detail, that would be helpful. Also, our melamine production and sales was virtually nil this quarter. What was the reason for that, and how we are looking for the balance part of FY27?

Speaker #3: Just wanted to understand from you—how much of this number is sustainable, given the fact that the prices of most of the products we manufacture are at an elevated level and, apart from us, there is virtually no producer of those products in India.

Speaker #3: So, if you can help us understand the chemical portion in much more detail, that would be helpful. Also, our melamine production and sales were virtually nil this quarter.

Speaker #3: So, what was the reason for that, and how are we looking at the balance part of FY27?

Speaker #2: Yes, actually, due to this crisis in the Middle East and Russia-Ukraine, there is a lot of volatility in the market, not only on the raw material side but also in the chemical sector, like caprolactam, melamine, and other products.

S. K. Bajpai: Yes. Actually, due to this crisis in the Middle East and Russia, Ukraine, there is a lot of volatility in the market, not only in the raw material side, but also in the chemical sector, like caprolactam, melamine, and other products. Some of the products, China has banned the export. As soon as the flow of the material is stopped by China, the prices move up. As far as caprolactam is concerned, if you see the benzene-caprolactam spread, it is ranging more than $800 presently. That is a comfortable level for the caprolactam. Our benzene prices also increased by 38%, but still there is a contribution and we are producing the caprolactam. As far as melamine is concerned, due to the higher energy rate, 38% increase in the energy rate also.

Speaker #2: And in China, some of the products, China has banned the export. So as soon as the flow of the material is stopped by China, the prices move up.

Speaker #2: As far as capital lactam is concerned, the if you see the benzene capro spread it is ranging more than 800 dollars presently. So that is a comfortable level for the capital lactam.

Speaker #2: Our benzene prices also increased by 38%. But still, there is a contribution, and we are producing the caprolactam. As far as melamine is concerned, due to the higher NG rate, there was also a 38% increase in the NG rate.

Speaker #2: So that molten urea is used in the melamine production, and the melamine production cost is not met because a lot of Chinese cheap imports are available in India.

S. K. Bajpai: That molten urea is used in the melamine production, and that melamine production cost is not met because a lot of Chinese cheap imports are available in India. We have approached Government of India for anti-dumping duty or some minimum support price. Let us see how government comes out with that.

Speaker #2: So, we have approached the Government of India for anti-dumping duty or some minimum support price. Let us see how the government comes out with that.

Speaker #3: Correct. Sir, last question from my side: any update on the measures being suggested by BCG? Last time, you had updated that they are working on various initiatives which could be helpful in the short term and the medium term.

[Analyst] (Anvil Wealth): Correct. Sir, last question from my side. Any update on the measures being suggested by BCG? Last time you have updated that they are working for various initiatives which could be helpful in the short term and the medium term. If you can help us understand some list of suggestions, if they have suggested to us and what could be the annual benefit coming out of these measures. Also, if you can share what is the cash on books as on 26 June. Thank you so much.

Neeraj Jamodia: Correct. Sir, last question from my side. Any update on the measures being suggested by BCG? Last time you have updated that they are working for various initiatives which could be helpful in the short term and the medium term. If you can help us understand some list of suggestions, if they have suggested to us and what could be the annual benefit coming out of these measures. Also, if you can share what is the cash on books as on 26 June. Thank you so much.

Speaker #3: So, if you can help us understand some of the suggestions they have given to us, and what could be the annual benefit coming out of these measures?

Speaker #3: Also, if you can share what is the cash on books as on June 26. Thank you so much.

Speaker #2: Yeah. Actually as per this BCG assignment is concerned it is on continuous basis for a longer period. So whatever projects we are investing for in SICCA or DAHEJ or some process improvement in Baroda complex polymer unit and fiber in it, all the presses they are making the study and they they are coming with the suggestion in the and after the discussion we will put the proposal to the board for approval.

S. K. Bajpai: Yeah. Actually, as far as this BCG assignment is concerned, it is on continuous basis for a longer period. Whatever projects we are envisaging in Chika or Dahej or some process improvement in Baroda complex, polymer unit and fiber unit, all the places they are making the study and they are coming with the suggestion. After the discussion, we will put the proposal to the board for approval because it requires a lot of investment. BCG study is going on. However, we can share that, yes, during the quarter, we have gained some INR 20 to 25 crore by BCG suggestions, and we have implemented those schemes in our Baroda complex.

Speaker #2: Because it requires a lot of investment, a BCG study is going on. However, we can share that, yes, during the quarter we have gained some ₹20 to ₹25 crores by BCG suggestions, and we have implemented those schemes in our Baroda complex.

Speaker #3: Got it. This is predominantly on the chemical side?

[Analyst] (Anvil Wealth): Correct. Predominantly on the chemical side, this is?

Neeraj Jamodia: Correct. Predominantly on the chemical side, this is?

Speaker #2: No, this is on an overall basis. There are so many things which might not be seen by us, so they come in because they have wider knowledge across the globe. So, their expert comes to our plant, they see, and suggest how to improve the consumption norms and all this.

S. K. Bajpai: No, this is overall basis. There are so many things which might not be seen by us. So they come and because they have the wider knowledge across the globe. So their expert comes to our plant and they see and help to improve the consumption norms and all this. So due to that small scheme we are implementing and we are gaining out of it.

Speaker #2: So, due to that, we have implemented small schemes and we are gaining out of it.

Speaker #3: And this number ideally should go up every quarter as those measures are getting implemented, right?

[Analyst] (Anvil Wealth): And this number ideally should go up every quarter as those measures are getting implemented, right?

Neeraj Jamodia: And this number ideally should go up every quarter as those measures are getting implemented, right?

Speaker #2: Yeah, I expect so.

S. K. Bajpai: Yeah, I expect so.

Speaker #3: Perfect. Sir, last thing—cash on books as on June 26, including the investments we have in liquid funds and other government companies.

[Analyst] (Anvil Wealth): Perfect. Sir, last thing, cash on books as on 26 June, including the investments, what we have in liquid funds and other government companies.

Neeraj Jamodia: Perfect. Sir, last thing, cash on books as on 26 June, including the investments, what we have in liquid funds and other government companies.

Speaker #2: Actually, due to the import of fertilizers and the lean season in quarter one, there was a lot of cash crunch across the industry.

S. K. Bajpai: Actually, due to the import of fertilizers and the lean season Q1, a lot of cash crunch was there across the industry. Because as you know, the DAP subsidy will be under the specific scheme of the government that will come after 6 months. A lot of cash is stuck there. We have also procured some certain material because as per our expectation, the material prices are still increasing. So we carry the inventory so that there should not be any scarcity of the fertilizer in the Rabi season. As a strategic planning, we have deployed our funds in procurement of raw materials and finished goods in the fertilizer segment. Yes, you can say there is no cash surplus in June. There was INR 500 crore borrowings at the end of 30 June.

Speaker #2: Because, as you know, the DAP subsidy will be under the specific special scheme of the government that will come after six months, so a lot of cash is stuck there.

Speaker #2: And we have also procured certain materials because, as per our expectation, the raw material prices are still increasing. So we carry the inventory so that there should not be any scarcity of fertilizer in the Rabi season.

Speaker #2: So, as a strategic planning measure, we have deployed our funds in procurement of raw materials and finished goods in the fertilizer segment. So, yes, you can say there is no cash surplus in June.

Speaker #2: So there was a Rs. 5 crore, Rs. 500 crore borrowings at the end of 13th June.

Speaker #3: Correct. So if you can share the outstanding subsidy portion, that also would be helpful—just to understand how much is currently blocked in terms of the subsidy portion.

[Analyst] (Anvil Wealth): Correct. Sir, if you can share the outstanding subsidy portion that also would be helpful, just to understand how much it is currently blocked in terms of the subsidy portion.

Neeraj Jamodia: Correct. Sir, if you can share the outstanding subsidy portion that also would be helpful, just to understand how much it is currently blocked in terms of the subsidy portion.

S. K. Bajpai: It is around INR 500 crore is outstanding. We are getting subsidy regularly from the government that is a good time and we are taking up as a fertilizer industry, we are taking up with the government about this cash crunch and government is kind enough to release the subsidy timely. Because of the raw material price increase, there is a heavy subsidy burden on the government, so we can understand, but we are getting the subsidy timely.

Speaker #2: Yeah, it is around 500 crores rupees is outstanding. So we are getting subsidy regularly from the government that is a good time and we are taking up as a fertilizer industry we are taking up with the government about this cash crunch and government is kind enough to release the subsidy timely.

Speaker #2: So, because of the raw material price increase, there is a heavy subsidy burden on the government. So we can understand, but we are getting the subsidy timely.

Speaker #3: Perfect, sir. Perfect. Thank you so much, sir, and wish you all the best.

[Analyst] (Anvil Wealth): Perfect, sir. Thank you so much, sir, and wish you all the best.

Neeraj Jamodia: Perfect, sir. Thank you so much, sir, and wish you all the best.

Speaker #2: Thank you Nilo.

S. K. Bajpai: Thank you, Neeraj.

Speaker #1: Thank you. Before we take the next question, we would like to remind participants that you may press star and one to ask a question.

Operator: Thank you. Before we take the next question, we would like to remind participants that you may press star and one to ask a question. The next question is from the line of Saket Kapoor from Kapoor & Company. Please proceed.

Speaker #1: The next question is from the line of Sakir Kapoor from Kapoor & Company. Please proceed.

Speaker #3: Just a small modification, sir. My adult son, who is also a shareholder, Suresh Kapoor, would like to speak on the same lines. Kindly permit him, sir.

Saket Kapoor: Just a small modification, sir. My brother who is also a shareholder, Suyash Kapoor, would like to speak on the same line. Kindly permit him, sir.

Speaker #3: The next voice is Mr. Suresh Kapoor.

S. K. Bajpai: Yeah.

Suyash Kapoor: The next voice is Mr. Suyash Kapoor.

S. K. Bajpai: Yeah, please.

Speaker #2: Yeah, please.

Suyash Kapoor: Hare Krishna, sir. Thank you for giving me this opportunity. See, sir, I wanted to know about this, is there any buyback policy? Because our book value, keeping into account, book value is approximately near about INR 310 to INR 320. Keeping into account the asset building exercise which has been done for the prolonged, say, 10 years or 15 years, the company continuously building its asset. As far as market capitalization is concerned, and enterprise value of the company is concerned, the enterprise value, I suppose, will be in the range of INR 5,900 crores, whereas the book value of the company will be taking into account the asset of INR 16,000 crores, which the company has paid out INR 13,000 crores. Correct me if I am wrong. If you can share your views, what is your buyback policy? When it will be the opportune time to go for a buyback, sir?

Speaker #3: Hare Krishna, sir. Thank you for giving me this opportunity. See, sir, I wanted to know is there any buyback policy, because our book value—keeping into account book value—is approximately near about ₹310 to ₹320, keeping in mind the asset-building exercise which has been done over the prolonged, say, 10 years or 15 years. The company has been continuously building its assets.

Speaker #3: But as far as market cap is concerned, and enterprise value of the company is concerned, the enterprise value I suppose will be in the range of ₹5,900 crore, whereas the book value of the company will be taking into account the asset of ₹16,000 crore, which the company has paid out ₹13,000 crore—if correct me if I'm wrong.

Speaker #3: So, if you can share your views—what is your buyback policy, and when would it be an opportune time to go for a buyback, sir? If you could kindly share your views.

Suyash Kapoor: If you can kindly share your views.

Speaker #2: No, presently we have no such scheme in the buyback. We are focusing on project execution, and whatever development takes place, it will be in the interest of the shareholders. In the future years to come, by investing this heavy investment in the new projects, the return will be passed on to the shareholders in due time.

S. K. Bajpai: No, presently we have no such scheme in the buyback. We are focusing on the project execution and whatever the development takes place, it will be in the interest of the shareholders. In the future years to come, by investing this heavy investment in the new projects, that return will be passed on to the shareholders in due time.

Speaker #3: Second question sir if you can be kind enough to answer regarding ammonium nitrate and use of that in mining industry because one of your peer that is I'm referring Deepak Fertilizer he is also a listed company they earn from tan that try ammonium nitrate so if you can share your views if the company is planning in this regard of developing this type of explosive products so that it can be used in mining like company like NMDC can also have a tie up in that regard if you can share your views like just like Gujarat Alkali is having a tie up with NALCO so if you can please share your views.

Suyash Kapoor: Second question, sir, if you can be kind enough to answer regarding ammonium nitrate and use of that in mining industry. Because one of your peer, that is I am referring Deepak Fertilisers, it is also a listed company. They earn from TAN, the technical ammonium nitrate. If you can share your views if the company is planning in this regard of developing this type of explosive products so that it can be used in mining, like company like NMDC Limited can also have a tie-up. In that regard, if you can share your views. Just like Gujarat Alkalies is having a tie-up with National Aluminium Company Limited. If you can please share your views.

Speaker #2: Yeah, actually, presently we do not have this TAN in our product line, and there is no proposal for producing TAN because already, if some other companies—my peer companies—are producing it, then we are going for such products which are not presently produced in India.

S. K. Bajpai: Yeah, actually, presently we are not this TAN in our product line, or there is no proposal for producing TAN. Because already if some other companies, my peer companies are producing, then we are going for such products which is not presently produced by India. So all the import substitution we are going ahead. So we are not competing with the Indian companies. So our intention of the government then to become self-sustained policy. So "aap nirbhar bana ne ke laksh me" we are going ahead with the product producing, which is not presently produced in India. Like fertilizer-

Speaker #2: So, all the import substitution we have, we are going ahead. So, we are not competing with the Indian companies. So, our intention of the government and becoming self-sustained policy, so we are going ahead with the products producing which are not presently produced in India.

Speaker #2: Like

Speaker #3: Sir, lastly, if you can please accommodate my last question. I appreciate the effort taken by GSSC and the team at Gujarat Alkali, also by investing in GIPCL and utilizing green energy or renewable energy to reduce the cost of production. Now, the government is focusing on this Gobardhan initiative—to utilize CBG, compressed biogas. So, is the company planning in this regard to reduce its cost further? If you can be kind enough to answer that question, please.

Suyash Kapoor: Sir, last if you can please accommodate my last question regarding I appreciate the effort taken by GSFC and the team of Gujarat Alkalies also by investing in GIPCL and utilizing green energy or renewable energy to actually reduce the cost of production. Now the government is focusing on this GOBARdhan, that to utilize CBG, compressed biogas. Is the company planning in this regard to reduce its cost further? If you can kind enough to answer that question, please.

Speaker #2: Yeah, in that scheme earlier, we had executed it somewhere in Banaras with the NDDB or somebody, but presently I do not know what is the liability of that particular project.

S. K. Bajpai: Yeah, in that scheme, earlier we had executed somewhere in Banaras with the NDDB or somebody. But presently, I do not know what is the viability of that particular project. But presently, there is no such scheme with us for under GOBARdhan production.

Speaker #2: But presently, there is no such scheme with us under Gobardhan production.

Speaker #3: Okay, sir. Now my brother will ask.

Suyash Kapoor: Okay, sir. Now my brother will ask.

Speaker #2: Yeah.

Speaker #3: Yes sir. Thank you. Thank you for all the answers sir and I'm done with I'm yes I'm done with the questions and that's it sir.

S. K. Bajpai: Yeah.

Suyash Kapoor: Yes, sir. Thank you for all the answers, sir.

S. K. Bajpai: Yes, thank you.

Suyash Kapoor: Yes, I am done with the questions.

S. K. Bajpai: Thanks.

Speaker #3: Thank you. Yeah.

Suyash Kapoor: That is it, sir. Thank you. Yeah.

Speaker #1: Thank you. Participants who wish to ask a question, please press star and one now. To ask a question, please press star and one. As there are no further questions from the participants, I now hand the conference over to Mr. S.K. Bajpe from GSFC Limited.

Operator: Thank you. Participants who wish to ask a question, please press star and one now. To ask a question, please press star and one. As there are no further questions from the participant, I now hand the conference over to S. K. Bajpai from GSFC Limited. Thanks for closing comments. Over to you, sir.

Speaker #1: Thanks for closing comments. Over to you, sir.

Speaker #2: Yeah, yeah. Thank you very much for the delightful questions, which I hope we have answered to the satisfaction of the investors.

S. K. Bajpai: Yeah. Thank you very much for the delightful questions, which I hope that we have answered to the satisfaction of the investors. Again, I thank you for joining this conference.

Speaker #2: And again, I thank you for joining this call. Thanks.

Operator: Thank you. On behalf of GSFC Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.

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