Thank you very much. We will now begin with the question-and-answer session. We will take our first question from the line of Mr. Vivek Rajamani from Morgan Stanley.

Sir, two questions from my side. Firstly, if you could just give a little bit more color in terms of why the volume numbers were lower on a Q-on-Q basis? Which segments were, relatively weaker compared to the last quarter and what kind of trends you've been seeing in the quarter so far? And the second question was with respect to yo ur EBITDA guidance, which you've obviously maintained, but just wanted to get your sense in terms of the trends that you're seeing and in terms of the conversations that you're having with the customers, how confident are you of achieving something closer to the high end? Or do you think you would rather have to wait to see how the recovery shapes up before some of these things start to get a bit more clearer?

Yes. This agrochemical segment is under pressure. So volumes in that segment are getting impacted. Whereas on the discretionary side, dyes, pigments, and other segments, there we are seeing good traction as far as demand is concerned. For FY'25 guidance, there will be a lot of factors which will determine whether we will be on the higher end or lower end. It will remain on how the volume grows up when this demand goes up as well as our commissioning of our projects and the stabilization of those facilities. So as of now, I think we are not able to narrow down the guidance. And as we move forward, I think we'll be able to do so in coming quarters as far as the next year's guidance is concerned.

Sure, sir. Just one quick clarification. The fact that agrochemicals is under pressure is well reflected in the lower Nitro Toluene volumes. If I could just clarify the lower NCB volumes is also purely accumulated? Or is there something else as well over here?

Yes. So nitric acid pressure was also there during th is quarter, so that has also partially impacted volumes. And some of the NCB product also goes in agro and pharma. So that impact was also there.

The next question is from the line of Rohit Nagraj from Centrum Broking.

Good to see the sequential recovery. So firs t question is again on the discretionary and nondiscretionary segments – which geographies are seeing po sitive traction and which in all geographies are still reeling under pressure, if you could just tell us from the exports perspective?

We make this intermediate going into a different geography and then the finished molecules are made in – mainly in U.S. and Europe as far as agrochemicals are concerned, and there is export across the globe from that. So it'd be difficult to know what will be the impact on geographical factor as far as agrochemicals are concerned. But overall, on an an nualized basis, we had about 11% North America, 6% Europe and 4% in China, 3% Japan and rest of the world, 28%. So that was the geographical composition, which was given in our presentation also.

Sure. Sir, second question is in terms of the capex . So this year, we had a slightly lower capex of INR1,300 crores. We had expected INR 2,500 crores to INR 3,000 crores of capex for two years. Now we have raised it to INR 1,600 crores to INR 1,800 crores for FY'25. After that, the similar run rate will continue? And in FY'25, which in all will be the major projects which are what added to this capex?

Yes. This is in respect of our existing product line, which we see as zone 1, 2 and 3. All those projects, we expect to get fully commissioned in FY'25, such as acid phase2 then ethylation expansion at Dahej site and Nitro Toluene expansion at Jhagadia and some other specialty chemical debottlenecking some expansion will get commissioned during th e FY'25. And othe r major spending will be in our new site at Jhagadia, where mu ltipurpose plant and entire Chloro Toluene and downstream product plants are being put up.

Sure. And FY'26 similar run rate would be continued?

FY'26, no, we have not yet fully finalized the numbers. I think that will be maybe in the next couple of quarters, where we'll be able to give a clearer guidance on the capex for FY'26.

Our next question is from the line of Abhijit Akella from Kotak Securities.

In this quarter, we have seen a significant increase in gross margins on a quarter-on-quarter basis sequentially, I'm saying. But at the same time, there is a significant increase in the other expenses also December quarter versus March quarter. So could you please just help us understand what might be driving that? Is it basically the freight cost increases that are being passed on?

Yes. So you're right, Abhijit. The increase in the other expenses is majorly or primarily on account of the freight cost increase, which is passed on to the custom er. But in addition to that, the product mix, and a bit of margin improvement across the existing businesses has also helped in terms of improving the gross margin.

Okay. So this is a good run rate for operating expense or other expenses to trend off of for the year ahead?

So other expenses, I mean, if you look at the fixed overhead, the fixed overhead virtually would not increase substantially, barring some 5%, 7% of infl ation increase, it will be virtually constant or similar. The other expenses also include a component of variable costs such as freight and production costs such as effluent treatment or power, labor also. So that would be linked with volume. But excluding those variable components, which are linked with volume, the fixed overhead will virtually be similar.

Understood. And just on the volume front, one was just to understand the quarter-on-quarter revenue increase this quarter, has it come primarily from th e long-term contract we've just signed because the production volumes are actually down across all cate gories? So that was one thing. And then if you could please just also share the PDA volumes for the quarter.

Yes, the volumes were our regular volumes as well as long-term contract volumes were also there.

PDA was at 523 tons per month.

The next question is from the line of Rohan Gupta from Nuvama.

Sir, couple of questions. Sir, first is on the Q-on -Q sequential growth. Though it is encouraging to see the Q-on-Q growth, but what we have indicated earlier that there is a recovery across the segment and end user industry maybe only except agrochemical. Ho wever, it is still kind of muted in terms of volume growth also on Q-on-Q and even on -- revenue is also quite like Q3 number. So just wanted to understand that the sequential recovery which you were talking about and the indicated EBITDA target which we have earlier indicated, are we on track for that? Because it doesn't seem like the Q4 recovery for our company is so strong to achieve those numbers for FY'25.

I mentioned agrochemical has remained softer. So that has given the impact on the volumes as well as some nitric acid issue also had impacted the volumes in Q4. But now that is getting stabilized and as you know, more volume grew in discretionary segment and also stabilization on agrochemical side, we'll see that continuous quarter-on-quarter volume increase in FY'25.

Sir, you mentioned that agrochemical still remains challenging and that's what you also mentioned in the recent interview, will we see that in first half , agrochemical still remain s challenging. So despite that, you are confident about the volume growth over all for the company and also if you can restate your guidance what we are looking for FY'25?

Yes. Agrochemical first half will be challenging. But I think in the second half, I think we should see a good recovery in agrochemical. And also some of our expansion also will kick in Q2 and Q3 of this year. So that will also help us in increasing the volumes.

Sir, in terms of capex number, you mentioned FY'25, you're looking some INR 1,700 crores, INR1,800 crores capex. Am I right on that?

Yes, it was INR1,500 crores to INR1,800 crores.

Okay. Sir, if you can just give further breakup in terms of the overall capex INR 1,500 crores to INR1,800 crores? Also can you give some guidance for FY'26 capex number if it will be similar towards FY'25? And overall INR 3,000 crores to INR 3,500 crores which we are planning to invest in the next 2 years, the likely investment of it, in which segment we will be looking at, if you can share those numbers?

Yes. This year, a substantial port ion will be going in our new site expansion and other Zone 1, 2, 3 expansions will be more on completion of that. So I think more than 50% will be going in our new site as far as FY'26 is concerned, the numbers have not been fine-tuned, but it will be upward of INR 1,000 crores for sure, but then exact number, we'll have to still fine tune.

Sir, new site that, if I remember, that is mainly for Chloro Toluene, right? Or you have also identified some of the products to be manufactured on the new site also from the existing portfolio?

There will be a multipurpose plant also will be put up there. So there will be some of this multipurpose plant may be linked to some of the existing value chain or Chloro Toluene or some stand-alone product also. So we'll first time have multipurpose plant also on the ground at that location.

Okay. So it's not like that the entire 50% expansion on new site will be only for the Chloro Toluene, some part of that will be existing product basket as well, including MPP?

Yes. The MPP will have product coming from variou s channels, products coming from existing lines or the Chloro Toluene or the new stand-alone.

Sir, is it possible for you to give a breakup in terms of end user industry for FY'24, which has just completed, I mean, segmental like how much from agrochemical and pharma or maybe polymers, if you can give a broad breakup?

This agro and pharma were around 35% and discretionary around 65%, and 35%, 65% kind of a number was there between discretionary and non-discretionary.

And with discretionary, where we still continue to see the strong growth while agro only can see the recovery in second half.

Yes.

The next question is from the line of Ankur Periwal from Axis Capital.

First question on working capital side. If you can highlight while on receivables, we have seen an absolute reduction but inventory and overall working capital in terms of number of days remains slightly higher. So your thoughts there in terms of outlook?

So on the working capital on inventory, there were couple of products which were to be shipped out in March, and it just got shipped out in April. So some matter related to that. Otherwise, it should be higher. Secondly, when you're looking at the day comparisons, I would request you to look at the numbers vis-à-vis the quarterly revenues and not the annual revenues because the average pricing for the second half was a bit more than what was there in the first half on the input and a couple of other input cost components.

Sure., sir. Secondly, on the capex side, while we did mention INR 1,500 crores to INR 1,800 crores and if I hear you right in the opening remarks, you did mention some bit of this capex will be for revamp of the existing project, so just any broad thoughts in terms of what could be the potential revenue that we are looking at here? And how much of this capex will be going into replenishment?

No, the capex basically is for, the second ethylation block and Nitro Toluene, which is an ongoing capex and Acid phase2 and some specialty chemical block. So there are ongoing expansion for our current product range that is where the major volume increase will happen in this year and also, further volume increase will happen in FY'26 from this existing product line at our current locations.

Sure. sir, let me rephrase my question. Whatever capex we are doing, INR 1,500 crores to INR 1,800 crores FY'25, all of this will be productive capex either in terms of revenue or in terms of backward integration benefit?

Yes, virtually, I think, except some normal maintenance capex, but this is not significant.

Sure and sir, lastly, on the nitric acid part, you allu ded to a shortfall of the supplies there and hence slightly slower volume growth. If I remember it righ t, we had signed up a longer-term contract there, right, for nitric acid supplies. So if you can just share your comments why the disruption in supply and how do you see that playing out?

Actually, our supplier is putting up a larger facility, and that will come up in FY26. So currently, we are getting material from other existing sites. And we have contracts. So accordingly, we could get a good volume. But still, overall, there was some disruption, which had a partial impact.

Okay. So FY'25 will further see disruption or possible disruption because of this supply issue? Or how do you put this at that?

Yes, the suppliers; our major expansion is going to come in FY'26. So in FY'25, some other nitric acid capacities may come up in India, that's what also is expected. So that kind of can mitigate some sort of any disruption happening.

Sure. So '26 onwards, it should be fairly straightforward in terms of supply?

Yes.

The next question is from the line of Archit Joshi from B&K Securities.

I have a couple of questions. So first one, just the way we have kind of given a guidance for FY'25, the lower end, and the higher end of the EBITDA guidance span – would you be able to venture a number with respect to the peak EBITDA that we can achieve from the existing assets that you have, excluding the upcoming capex in Chloro Toluene and the multipurpose plant? Could there be a range that you can guide?

Yes. I think another additional 10% to 15% should be possible. So more towards INR 2,000 crores kind of a number should be possible from ongoing existing location expansion.

Sure, Sir, my second one was with respect to the NT and ethylation plant. I think both of them are going to be key contributors to both the contracts that we have recently gotten into. Would you be able to share the highlights of what we did with t hose 2 contracts in FY'24 if you can substantiate that also with the commissioning of these two facilities in FY'25 for which the capex is ongoing, would the entire volume be assumed to be diverted towards these 2 new projects that we have signed? So I was just trying to understand how the volumes will shape up with the new facility commissioning.

Yes. This second contract, which was announced out of the 2, which was INR 1,500 crores for the next 4 years is not connected to ethylation and those product lines. The first one, which was an agrochemical intermediate that is coming from that Nitro Toluene and ethylation line. So there, we expect increase in sales from this year partly and the next year onwards, it will give a full year impact. As the first one, INR 1,500 crores, I think, it is an ongoing, so in that already the ramp-up has taken place.

Sure, sir. Wherein, I was trying to understand how much from these 2 contracts, I mean the first contract size was close to INR 1,500 crores, your s econd contract and the first one was close to INR 330 crores. How much would have we done in FY'24?

FY'24, I think it was below INR100 crore as some agrochemical impact had taken place. But this year, we expect more around INR250 crore or so.

And sir, the second one, the INR 1,500 crores one?

So that is running on a regular basis.

The next question is from the line of Rishi Kothari from Pi Square Investments.

My question was more or less addressed on the segment front. But I just wanted to get an idea as to what exactly other industries that we are looking to diversify in places further in terms of chemical? Are there any some attractions in terms of other industries that you're looking at to diversify our product?

Other than the chemical industry?

No, in chemicals industry itself in terms of segment, let's say, we are into agrochemicals and dye in the segment and all that, so in terms of segment bifurcations.

So basically, we are very well diversified on agro, pharma and dyes, pigments, energy sector and all. In addition to that, we are looking at the sunrise sectors, which are more also going in this battery storages and all that or circularity of chemicals or biochemistry and all that. So that is another sector which we are looking. But as of now, we have not started investing in any of them, yes, but they are on our radar and also at various developmental stages. So we'll be going into those product line also in the coming years.

The next question is from the line of Surya Patra from Phillip Capital India Pvt. Ltd.

Sir, my first question is on this MEA and the N itro Toluene capacity, which is likely to be commissioning this year. So could you say what is the exact timeline that you're anticipating? and any progress on that in terms of the contract with any customer for those products that you have already signed or anything on that front, if you can give some clarity about it?

So that means the utilization and the demand visibility about those facilities are that is there and if it is, it is coming from which segment if you can share, sir?

It's mainly in agrochemical segment. This ethylation blocks are mainly going into agro.

Okay and so these are also of the kind of a more downstream product where the margin visibility would be more than 25%?

Yes. If you take it from base molecule, yes, it will be of those kinds.

Okay. My second question was about the margin trend for the value-added product, what you have been indicating, sir? So like 25% to 30% kind of margin for the downstream product that you have been talking. So from the initial time period when you have started talking about it, from that particular point, we have seen significant changes in the cycle. The prices, let's say, have moved down significantly and now started recovering and all that. So the up-cycle, down-cycle both we have played out from that initial point. But still, you are maintaining your margin expectation in the similar rate. So from where is that confidence coming? Is it because of the spread generally, what you enjoy on those products? So that is why you are confident about maintaining the margins of beyond '25 for the downstream product or it is something else that you are getting confidence from?

No, we have a basket of products. So some of the products, there may be pressure. So on an average, this value-added product will give you a 25%, 30% range as EBITDA margin in that.

Okay. Sir, just an extended question to this. These R&D initiatives, that you have taken, let's say, with a deeper focus on the product development and research and development. So you have set up your Navi Mumbai plant, Navi Mumbai R&D center in FY'21 and I think now already 2 to 3 years is already passed? So what is the kind of progress on that front? and what achievement that you have seen from those initiatives? And what is the current R&D spend per annum if you can give some clarity and some future visibility out of those initiatives, that would be really helpful?

Yes, this entire Chloro Toluene range that is all in-house because we'll be adding a lot of new chemistry in that photochemistry, ni trilation, hydrolysis and grignard chemistry. So a lot of different chemistries, the products will be coming up in this entire Chloro Toluene range and also in a multipurpose plant. So all those products R&D has been done in-house from this new R&D centre. In addition to that also, I mentioned on this sunris e sector, there also we are in touch with the global major companies as well as start-ups for developing newer product back-end manufacturing and development for them also. So those R&D also is happening at new center.

Okay. So this is the point that I wanted to understand. So basically, like the collaborative research aspects with the potential customer for the new product opportunities. So generally, when we are talking about multipur pose plants, UMPPs, customer manuf acturing opportunities and the value- added products in the specialty chemical, all that, see generally, these projects are backed by ready contracts with the innovator or something like that. So here, as you are saying that you have already started working on those fronts. So any progress in terms of alliances that you have already seen, but possibly when the commercial opportunity will be fructifying then you'll be announcing. So anything on this front, sir?

Yes. Various products are at different levels. Some at R&D, somewhere near where we have supply pilot quantities and all that. So different projects ar e at different stages and we see good opportunities on those going forward. So those product lines, it wi ll be not China plus One. It is India first because this newer product line, the customers might prefer India as a source, as a priority. So we see a good opportunity on tying up with those kinds of businesses.

Sure, sir. Just last one question from my side, sir. In fact, if we see the FY'24 performance, in the domestic market, obviously, we have seen an 11% decline, while supported by the supply contract, exports are positive. But in terms of the volume, so I think if the prices, we know that large part of the domestic sales would be, may not be towards the downstream product, it could be the initial value chain-based product. Still, we are seeing revenue declining by 11% only, while prices have corrected significantly. So that means whether we have seen a volume growth in the domestic market for FY'24?

No, actually, the price also depends on the raw materials. If you see the second half, the raw material prices of benzene and all were higher. So that also kind of reduced impact, when we talk about the sales number. So some of that increase is because of the raw material price increase also.

Okay. But whether any concern that is there about the domestic market in terms of volume progression or decline, sir?

No, ultimately, even sector-wise, it is basically a global impact because as we have mentioned earlier also, a lot of our products which are going in domestic ultimately end up being exported. So it is a global market on a back end, which is giving the im pact. So domestic consumption for it will be only around 25%, rest will be direct or indirect export.

Okay. So domestic may not have that relevancy then.

The next question is from the line of Sabyasachi Mukerji from Bajaj Finserv Asset Management Company.

Sir, my first question is this morning on TV interview you mentioned about 20% to 30% volume growth for FY'25 versus, I believe, in the last call, Q3 earnings call, you mentioned somewhere around 20% volume growth. So question A is, what gives you confidence on, let's say, up in the range from 20% to 30%? And second question is from which quarter do we see this growth coming? Because Q4, we saw weak tepid volumes, so Q1 is, again, I think, will be on the similar lines? Or do we see volume uptick from Q1 onwards only?

Yes. Actually, our earlier guidance was 20% to 25% in the last con-call, so that we have increased to 20% to 30% as a range. And the volume growth will ha ppen from this Q1 FY'25 itself, we expect the volume to grow and quarter-on-quarter, we expect volume to grow this year.

Oka, and Q2 onwards, and when the new projects get commissioned, the volume growth will be far superior than what we are witnessing now. Is that a right assumption?

Yes,. From Q2 onwards, this may project also. So second half volu me growth will be substantially more.

Okay. That's good to hear. Chetan bhai, I have a question for you. You mentioned in the presentation as well that the increased freight cost during quarter 4 due to Red Sea disruption had caused some effect. So if I look at Q3 to Q4, the other expenses have gone up by 19%, almost INR 268 crores to INR 319 crores and whereas we had a 7% decline on sequential volume decline, could you quantify what was the impact, the freight cost this quarter?

So the freight cost increase gets substantially passed on to the customer. The volume decline is only for those few select products, for certain products, for example, like Nitro Toluene also -- PDA, we do have volume increase. So we've got a very large product basket and there has been volume increase across some of the other products as well.

No, but still, I mean, what kind of freight cost, I mean, increased freight cost that we ended up paying, I mean INR 50 crores is a large number, right? I mean, from Q3 to Q4, if I just look at the absolute delta in other expenses.

Yes. So that freight cost increase is something which we have to bear, and we pass it on to the customer.So on a value basis, the component is relatively smaller. If I look at comparing it to a turnover and it gets passed on to the customer as a part of; like similar to ot her input costs, this also gets passed on to the customer

Okay and you also mentioned there is some; if I look at the other expense bucket, the fixed overheads generally quarter-on-quarter basis should remain largely similar and on a year-on-year basis, it will follow some inflationary growth. So out of this total, let's say, INR 260 crores to INR 300 crores of quarterly other expense, What portion would be fixed and what portion is variable broadly?

So the variable component would be somewhere in the range of around 40%-50%. I still have to see down some numbers, but yes, beyond that, 40% to 50% could be variable. So it's not just the freight, there will be a lot of other components which is linked to production, which could be there like effluent treatment and other things.

The next question is from the line of Nitin Agarwal from DAM Capital.

Yes, it will both import substitution as well as export. So more towards a 50-50 kind of a mix.

Okay. And sir, with respect to whatever has been happening in China in terms of increased capacity, especially on the agrochem side of intermediates and AIs, I mean, does any of these calculations change for you or any of the business case has changed for any of these products, especially from export perspective?

Not significantly.

Okay. And sir, lastly, although you touched upon it, for the INR 1,450 crores, INR 1,700 crores EBITDA guidance that you gave for next year, this should be what a back-ended guidance in a sense, we'll see much, much stronger H2 and H1? And what would the split be like 40-60, 30-70? How should we look at that?

Yes, I think it will be more 40%-45% and 55%-60%.

The next question is from the line of Aditya Khetan from SMIFS Institutional Equities.

Sir, first question is on to the agrochemical dema nd outlook. As you have mentioned that for this quarter also, the demand has been lower only and we are standing into like May and June of this calendar year, so you are expecting like demand will remain muted for this calendar year complete or like improvement is expected from next quarter?

Yes. Basically, it will be generally, this will be always product specifics. So somewhere the demand will pick up in this quarter, next quarter, and all. And some of them which are annual bases, where the demand pickup will be more happening in calendar year '25. So it will a bit more product specific, but by end of the year, things would get normal. So calendar year '25 should be near normal for all the products.

Okay. Sir, on to the nitric acid supply disruption issue, sir, is it possible to quantify how much volumes have been impacted because of this nitric acid issue?

Absolutely it will be difficult. But the Nitro Chloro Benzene and all, we have seen some decline, so that is where some impact was seen.

Okay. Sir, my last question is on to the dicamba intermediate. Sir, is it possible to give out the revenue figure for FY '24? And what is the utilization level this operated on?

So say that demand for that agro is struggling. So the hydrogenation part is where we can utilize, but the last part, which is more of a dedicated plant, there has not been a very significant volume for this quarter.

Sir, first on the MMA contract, which we had announ ced in Jan, the INR 6,000 crores contract. Can you just quantify how much revenues have been booked in FY'24? And how much incremental revenue we are expecting in FY'25?

It has started from the quarter. So the entire FY'24 wi ll be difficult to get the number in that sense. But first quarter, the impact has started coming in.

So incrementally, how much revenue should we expect from this contract on a Y-o-Y basis?

Y-o-Y, this is 50% to 60% at least.

Okay and sir, from the second contract, what was the contribution in FY'24?

Below INR100 crores because the subsequent impact of the demand came up.

And in FY'25, do we expect it to go to INR 300 crores or it will be below INR 300 crores?

I think it will be more towards around INR 250 crores for FY'25.

Okay. Sir got it and then lastly for Chetan bhai. So what should be the tax rate that we should work with for FY'25 and '26?

Our tax rate for FY'25, FY'26, I believe it should be around 15%, maybe around 12% to 15% or 12% to 16%.

The next question is from the line of Rohit Sinha from Sunidhi Securities.

As we are seeing price realizations are down significantly. So once we see any significant improvement there. So how we will be seeing the price negotiation with our customers basically, how are the contracts aligned, including our long-term as well as the short-term contracts?

Certainly, in all the long-term contract we have structured pricing in place, whereas contracts which are more of a quarterly; orders which are more on a quarterly basis, there the prices may have some inherent movement also, up and downside. But on long-term contract are more generally on a raw material-plus basis.

Okay. And on all these short-term contracts, basically, when they are due for negotiations?

They're quarterly basis. Generally, short term will be quarterly basis and long term will be multiyear. Some contract may happen on an annual basis also, but they are very limited relatively.

Okay. And secondly, just a clarification on this Deep ak Fertilizers contract. So I think that was close to INR 8,000 crores contract for a span of 20 years when it was announced. So which I guess we're assuming that it will be equally distributed to th ese 20 years or maybe you can say, INR 400 crores kind of annual revenue. Since you are mentioning that there is some disr uption and only after FY'26, we will see smooth volume there. So does that mean that there could be more than, say, INR 400-plus crores kind of annual revenue only post FY'26 or it would be a max kind of revenue and only you that INR 400 crores or INR 450 crores, it can be fluctuated as per our demand also?

Yes, obviously, it will be fluctuating with dema nd. The supply side, there is major expansion, is expected. The nitric acid also once their capacity comes up and it will also help us in whenever our ramp-up takes place. So it will be kind of a ramp up also in the turnover for that side also.

The next question is from the line of SimranJeet Singh Bhatia from Almondz Global Securities.

Sir, I just want to understand what will be your de bt profile? I mean what will be the debt reduction going forward in the upcoming years? And second, how you see the EBITDA margin trend, not for FY'25, but for next couple of years, like '26, '27 or next till '26, '27? Will we see the margins coming back to 20%-plus in the upcoming years?

So on the debt, as you're aware, there has been significant capex projects which are underway. So debt reduction from the overall basis, I don't think so will be there. We are trying to optimize the working capital. I guess that is also visible over the last couple of years' performance where the working capital days have been reducing, plus debt as a number is also a function as to how the working capital and the cost related to working capital such as the input and other cost prevail. So on an absolute basis, I'm not expecting debt numbers to reduce, but there will be efforts in terms of optimizing the working capital days, which could pot entially provide some optimization of debt, but the debt will be a bit higher than what it is currently right now.

Okay. And sir, when we are seeing the margins coming back to 20% or 22% plus, not in FY'25, it's not possible to see but any guidance for the upcoming 2 or 3 years down the line?

As we had mentioned earlier that Chloro Toluene range these are more value-added products, so structurally, there the EBITDA margin is higher. So with those products coming in line on a weighted average basis, combined EBITDA also as a percentage will increase from FY '26-'27 onwards.

The next question is from the line of Abhijit Akella from Kotak Securities.

Sir, just on the clarification on the MMA long-term contract. So if I recall correctly, last quarter, you had indicated we expected about INR 900 crores for FY'24 from that contract ramping up to INR 1,500 crore in FY'25. So just to check whether that they were still the number we should work with or has there been any deviation on that?

I think that's what kind of number matched also. We say 50% to 60% increase. I think that's what is mentioned here.

Yes. We sell to the other customers also. So there will be volume increases for other customers also.

Next question is from the line of Rohit Nagraj from Centrum Broking.

Just one question. What would be the cost of debt currently and next year is it expected to be on similar lines?

The cost of debt should be around 7.5%, 8%. It depends on the combination of different products. From next year perspective, I believe the interest rates have largely peaked out while I'm not expecting interest rate to sharpen down or reduce significantly, sharply in this year. I believe, the cost of debt should fairly remain similar.

Ladies and gentlemen, that was the last question for today. I would now like to hand the conference over to the management for closing comments.

Thank you everyone for taking out the time to join us on our Q4 FY24 earnings conference call. Hope we have addressed all your queries. If you have any further questions, please feel free to contact our Investor Relations team, and we will address them. We look forward to connecting with all of you again in the next quarter. Thank you once again.

Thank you. On behalf of Aarti Industries Limited, that concludes this conference. Thank you for joining us. You may now disconnect your lines.