Ladies and gentlemen, good day and welcome to the Ion Exchange India Limited Q2 and H1 FY 2025 earnings conference call. 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 the star then zero on your touchtone phone. I now hand the conference over to Mr. Anuj Sonpal from Valorum Advisors. Thank you, and over to you, sir. Thank you. Good afternoon, everyone, and a very warm welcome to you all. My name is Anuj Sonpal from Valorum Advisors. We represent the investor relations of Ion Exchange India Limited. On behalf of the company, I would like to thank you all for participating in the company's earnings conference call for the second quarter and first half of financial year 2025. Before we begin, let me mention a short cautionary statement. Some of the statements made in today's earnings call may be forward-looking in nature. Such forward-looking statements are subject to risks and uncertainties, which would cause actual results to differ from those anticipated. Such statements are based on management's beliefs as well as assumptions made by, and information currently available to management. Audiences are cautioned not to place any undue reliance on these forward-looking statements in making any investment decisions. The purpose of today's earnings call is purely to educate and bring awareness about the company's fundamental business and financial quarter under review. Let me now introduce you to the management participating with us in today's earnings call and hand it over to them for opening remarks. We firstly have with us Mr. Aankur Patni, Vice Chairman, Mr. Vasant Naik, Group Chief Financial Officer, Mr. N. M. Ranadive, Group Head of Financial Planning and Risk Management, and Mr. Milind Turakhia, Company Secretary. Without any further delay, I request Mr. Vasant Naik to start with his opening remarks. Thank you, and over to you, sir. Thank you, Anuj. Good afternoon, everybody. It is a pleasure to welcome you all to the earnings conference call for the second quarter and first half of financial year 2025. For the second quarter under review on a consolidated basis, the company reported an operating income of INR 6,445 million, an increase of around 21% year-on-year. The EBITDA reported was INR 682 million, representing an increase of around 13% year-on-year. The EBITDA margin stood at 10.58% and net profit was INR 506 million, an increase of 19% year-on-year, while the PAT margin was around 7.85%. For the first half of financial year 2025, the company reported operating income of INR 12,120 million, an increase of around 20% year-on-year. The EBITDA reported was INR 1,326 million, an increase of around 21% year-on-year. The EBITDA margin stood at 10.94% and net profit was INR 954 million, an increase of around 26% year-on-year, while the PAT margin was around 7.87%. Going through the quarterly segmental performance on a consolidated basis, in the engineering division, the revenue for the quarter was INR 3,949 million, an increase of 26% year-on-year. The EBIT for this segment was INR 235 million, an increase of 21% year-on-year. The increase in turnover was largely due to the improved execution of several large EPC contracts, and this momentum is expected to continue in the ensuing quarters. The segment saw an improvement in order flow during the quarter. The domestic inquiry bank remains robust, and we are hopeful for the finalization of some large-value opportunities in the next few months. At the end of the quarter 2 FY 2025, the total order book for the engineering division stood at INR 3,580 crore. Moving to the chemicals division, the revenue for the quarter was INR 1,968 million, an increase of around 12% year-on-year. The EBIT was INR 522 million, an increase of 23% year-on-year. The segment continues to record improvement in both turnover and margins. The expansion of the Roha plant for the resin manufacturing is in advanced stage, and we expect the commercial production to commence in the first quarter of FY 2025, 2026. For the consumer product division, the revenue for the quarter was INR 691 million, an increase of 20% year-on-year. The losses for the quarter was INR 35 million as against INR 3 million loss in the same period of the previous year. This segment is experiencing consistent growth driven by greater market penetration and acceptance of the company's products. Our margins remain negative due to the ongoing investments in the infrastructure. Anuj, now we can take the question and answer. Thank you very much, sir. We will now begin the question and answer session. Anyone who wishes to ask a question may press star 1 on their touchtone telephone. If you wish to withdraw yourself from the question queue, you may press star 2. Participants are requested to use a handset while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Pratik Kothari from Unique PMS. Please go ahead. Yes. Hi. Thank you and good afternoon. First question on the chemical segment. This Roha commercialization, like you mentioned, is six to nine months away. See if you can talk about on ground, what are the preparations that you have made in terms of kind of ramping it up in terms of clients, et cetera. If you can talk about the preparation for the same. Pratik, we have been working on it for quite some time now, there is a continuous effort to make sure that once the plant gets launched, we would have a few customers who would be having long-term contracts with us. Also our teams on the ground have been working to establish a relationship with several other distribution channels across various geographies globally. We are quite confident that in a period of three to four years, as we have been talking about, we would be able to scale this new plant with that. Correct. Currently, I believe in terms of resins, our capacity utilization hovers between 65%-70%. Given that we already have capacity available, why doesn't this ramp up? Are these different products that we are trying at Roha, different customer segments? We have been looking at our current facilities, we've been working with different kinds of product mix, which is why you don't really see that the nameplate capacity being achieved, because the nameplate capacity is based on a particular kind of product mix. Whereas the actual mix which we try to work on is based on both the bottom line and the top line in consideration. When we go in for this new facility, there would be a slight change in the way that we approach some of the product segments where volumes are high. For the current product mix that we have, fair to assume that our current capacity is optimally utilized. Yes, we are using our current capacity quite well, Pratik. There would be an upside of 5%-7% or 5%-10% there, depending upon how we change the product mix. Of course, there are certain product lines within that capacity where we are still in the process of ramping up the volumes. On an overall basis, I would say that there is a space of maybe 5%-10% there. Correct. Fair enough. Sir, on the engineering part, I think after a while we have seen this ramp up, which all of us have been waiting for. Just some comments, what is going right? I believe our expectations were that going forward H2 or maybe next year was supposed to be much, much better than what we have seen over the last three, four, five quarters. Some comments there if you can. H2 would be better than what we have seen till now, at least that's our expectation. The revenue growth would happen. The executions of various contract is certainly on the way. In the coming years also, we would expect the improvements to continue as we also hope that our order book will continue to fill up in the second half and the months thereafter. As we've been telling you for the past two quarters about the impact which one particular project has been having on our bottom line. Barring that one adverse impact, overall, we are quite happy with the way that the revenue build-up is happening. We will probably expect roughly between 15%-20% growth during the current year on a full year basis. In terms of our inquiry bank and in terms of the various projects that we aspire to gain, the movement is pretty good there. Fair enough, sir. Thank you and all the best, sir. Thank you. The next question is from the line of Eshwar from ithought PMS. Please go ahead. Hello, am I audible? Hello. Yes, sir, you're audible. Please go ahead. Afternoon, sir. The question I had has already been answered, there's just one clarity I wanted. EMS Limited, which is our peer, they released their results a couple of days ago, and they have a margin of about 20%-30%. How have they achieved such high margin, sir? What is the difference between us and them? I just wanted clarity on that, sir. Thank you. I'm sorry, your voice is not very clear, and we cannot make out the full content of your question. Sir, can you hear me now? No, there seems to be some kind of an echo there. You're not very clear. Sir, can you hear me now, sir? Yes. Sir, the question I had was, I've been interested in your company. I've been tracking your company for a long time, but I'm new to this space, wastewater management. There's this one clarity I wanted. EMS released their earnings a couple of days ago, and they have a margin of about 25%-30% in the engineering business. How have they achieved such high margins? As they are our peers, they are in the same segment as us. What are they doing different? Can you please comment on that, sir? I think it's not fair for us to comment on what they are doing and how they have achieved their margins. What I can say is that, on a very broad level, that the business or the space, the segment of customers that they deal with and the nature of business which they are specifically in, is slightly different from what we do. However, to be fair, I am not fully aware of the content of their specific projects and how their margins are growing. Thanks, sir. Fair enough. That's the only question I had. Thank you. Thank you. Thank you. Before taking 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 Omkar, an individual investor. Please go ahead. Sir, am I audible? Yes, you are. Hello. Hello, am I audible, sir? You are audible. Yes, sir, you're audible. Please go ahead. Sir, thanks for taking my question. Sir, I personally feel the water sector is in sweet spot and future is looking very bright for water sector. What is the reason for which we are not winning big orders? We got couple of orders last quarter, INR 160 crore and INR 180 crore. That value is still lesser. My question is, how much more orders are we expecting, or at least give us some guidance or visibility for our business for next or specifically for this financial year? My second question, little bit regards to specifically for insiders selling, there Mahabir Patni and Bimal Jain, both are selling their shares in each quarter. Any specific reason for that? Despite being a future for this business is very bright, what is the reason insiders are selling the Ion Exchange shares? Let me answer the first part of your question first. The company's inquiry bank, you must have been tracking, it continues to be quite strong. We guide some quarters that our average conversion from the inquiry bank into the order book is roughly around 15%-20%. We are seeing a very healthy prospect in the future. We do hope that the inquiry bank as well as order book would both continue to prosper in times to come. Certainly, the future would be significantly better in terms of the revenues that we expect to gain from the business. The water and the wastewater segment being in the right spot, not just in India but globally, is very much something which we believe in. That's why the guidance that we have been continuously giving to our investors has been quite positive. As far as the sale by the two individuals that you mentioned, that's a individual decision. They have been investors in the company. They have been invested in the company. They have been part of the promoter group and management in various ways. That's been for a long time. While I cannot comment on the individual reasons for the sale, I do understand that they are making a very small portion of their shareholdings, what they are selling during the period that you mentioned. I would expect that it would be to monetize some of their holdings. Okay, sir. One small question. Sir, U.P. outstanding order is around INR 750 crore. Can we expect at least INR 150 crore quarterly run rate as we are entering into H2? As every con call, we are saying U.P. contract would get substantially executed by the end of this financial year. What is the exact run rate can we expect in U.P. contracts specifically? Well, the U.P. contract had an expectation of substantially more invoicing during the quarter, which has just gone, which is the second quarter. We do expect that in the coming quarters, the rate at which we are invoicing would improve significantly. However, since the execution of the contract is quite dependent upon the flow of funds which are allocated and approved for our contract, as well as the various approvals that we receive from the government. That is not, unfortunately, a very predictable thing. While we will certainly aspire to do as much as we can, we are not in a position to tell you exactly how much we would be executing during each of the months which follow. Sir, reason behind it, in quarter one, because of election period, we have not done that much execution. In quarter two, if I am not wrong, we have done INR 60 crore. I am just asking, is it possible to do at least INR 100 crore per quarter? Just roughly. I understand what you are saying. It is subject to the realization of the funds and everything. Can we expect H2 will be better for U.P. contract? Can I say, in other words, H2 will be much better than H1 for U.P. contracts visually? Yes. H2 will be significantly better than the first half. Thank you very much for asking my question, sir. Appreciate it. Thanks. Thank you. The next question is from the line of Pratik Kothari from Unique PMS. Please go ahead. Yes. Thank you again. Sir, a few clarifications. One on Sri Lanka. Any update progress there? Well, Sri Lanka, as we have been commenting for quite some time on this, there is a very slow progress on that contract. Further invoicing or execution is dependent on the funds which get allocated to the contract, whether through the intervention of Government of India or by the Sri Lankan government themselves. We've had some infusion of funds, which is coming primarily from the Sri Lankan government, and consequent upon that, we've been invoicing some small values. There is roughly around 10% or so of the invoicing which still remains to be made. We can only say that there is a significant degree of uncertainty about when the funds will get allocated to it and how much. As and when the flow of funds becomes good, we would be able to close the remaining portion of the contract at a very good pace. Correct. We had some exposure there in terms of what we had executed and yet to be received, I think a year or two back. Is that all settled or even that is still pending? No, as I said, there is only some amount of funds which are being allocated to the contract, and that also by the government of Sri Lanka. While we are quite confident about recovering the amount, but there is still some outstanding which is there. Correct. Fair enough. Sir, if you can, one is this Roha, the region plant expansion that we are doing. Anything on the membrane or the other chemical products, any projects that is currently undergoing or under plan? We've just expanded capacity on our membrane facilities. We are planning to expand that further. We will make an announcement once those plans take full shape. As far as chemicals, we have been announcing for some time that we would be setting up facilities in Odisha. As of now, those are plans which are still being reviewed further. Okay. Sir, last one. Are we disclosing margins or this one-off order impact that we have in our engineering business, which is kind of suppressing our overall margins? Are we disclosing what impact that is? Well, we've not really spoken about specific numbers. I can tell you that the impact of this on our engineering segment margins is significantly upward of 150 basis points. Okay. Oh, that's material. Fair enough. Okay. Sir, last, on the UP, you did speak about this fund flow government approach. Do you see a change in their priority of what needs to be done? These are some large ticket orders which are put out. It seems the pace is absolutely very different from what we were expecting earlier. In terms of when you speak to them Yes. Since we have teams deployed on the ground, we were hoping for a faster pace of execution right through. We have been in discussion and dialogue with the government to try and see ways and means of expediting the execution. These dialogues continue, but two of the very crucial impediments to faster execution is approvals which come from various parts of the bureaucracy, and also the fund flow which is allocated to the contract, which we have disclosed earlier. Election period, there was a little bit of a hiccup. Those things seem to have now been sorted. The indication during October was much better than what it was in the previous period. We hope that the pace would be significantly better in the second half, and we would be able to at least show a much better number. Fair enough. Sure. Thank you again. Thank you. The next question is from the line of Vikas Goyal, an individual investor. Please go ahead. Sir, my question is regarding your membrane division. Sir, what is total contribution in our engineering segment for the membranes, and what is current capacity utilization of our current capacity in terms of membranes production? Thank you, sir. Membranes. The revenue from the membrane division is not very significant as a part of our overall revenue numbers. We are running at roughly 60%-65% capacity level. As we mentioned on the call earlier, that we expanded capacity recently. The initial capacity what we have, we are close to around 95% utilization of that, 90%-95%, and we are rapidly moving towards increased capacity utilization for the expanded portion also. As I also mentioned earlier, that we are evaluating further expansion of the facility, the outlook for the future is extremely good. Sir, my second question is regarding your HydroLife in consumer segment. Sir, can you tell the marketing perspectives of this business of HydroLife? Well, we are seeing very good customer response to the product and we do expect that in the coming period, this is going to become one of our star products coming for the consumer segment. There is a lot of market building, which is where investments are currently being made. I'm sure that with growing awareness about the various benefits which the product offers, the future impulse will be significantly higher than what it is. Sir, my last question is regarding this semiconductor business. Are we getting some traction in this sector? Have we got any orders in this quarter for any semiconductor industry? We are working with quite a few of the prospects in the industry. As you would be knowing that several which have been planned and are at various stages of implementation, execution. We are certainly looking at the sector with a lot of interest, and several contracts are under discussion. Sir, my last question please, if you can answer. The quality of water in solar cell manufacturing and in semiconductor industry, it is same or what pure water. In solar cell or in semiconductor industry, sir. The requirement of water from each industry is very specific. They would define the quality which they are expecting, both on the input side as well as the way that the waste gets generated. Semiconductor industry, because we are looking at very high precision and very high purity environment, therefore the quality of water needs to be extremely good. Each of these would have their specific requirements as to how they want the purity of the water to be there. Semiconductors would probably have higher specifications. Thank you. Thank you, sir. Thank you so much. Thank you. Thank you. The next question is from the line of Jolyon from Amiral Gestion. Please go ahead. Hi, sir. Just two questions. First, on the working capital. Noted that receivables and inventory have actually increased, maybe from FY 2024. Maybe any commentary on that and where do you expect inventory and receivables to end of the year? That's my first question. Vasant, can I request you to give a commentary on working capital and receivables? Yeah, you mentioned about the receivables level. Actually, our EPC segment revenue is steadily increasing. That's why we are largely seeing an increase in the number of days of the receivables for the current year. We do expect as the engineering EPC invoicing picks up pace in the coming quarters, we may be seeing these levels at the year-end also. Just to clarify, when you say this level, as in the absolute same level or the same number of receivable days or inventory days? Could you clarify that, please? You can take the number of days, because the fourth quarter generally is the higher level of invoicing, so it would be appropriate if you take number of days. Okay, got it. I guess my second question is on the leadership transition. I noticed that CEO transitioned to the MD in October. I think there was a press release. Maybe you can give a bit of background on the new MD and maybe what we should expect in terms of any potential changes to the organization or the way it works. Yeah, that's my second question. Thank you. Mr. Indraneel Dutt had been appointed CEO of the company last year. As a natural progression, he has been appointed as MD this year. The two promoter families which have been involved in the business for a number of decades now, the four members from the two promoter families will continue to remain involved in the business and they continue to be on the board. However, in the interest of longevity and to bring a little bit of a separation between the promoter holding and the operational management of the company, it was felt that we should bring in professional MD and professional management into the picture. That's how Mr. Dutt has been inducted as the Managing Director. The rest of the organization continues to function as it was. We do expect that the company will continue to grow at a significant pace in coming times. We will be investing more and more high quality management professionals across the company to ensure that any gaps, if any, in any geography or any business, which is required to be filled in order to fulfill our long term aspirations of global leadership in this space. We would be taking those steps in times to come. Per se, there is no defined change in the style of management or in its approach. Okay. Just to a quick follow-up. The transition maybe happened only for one and a half months, but do we foresee any kind of change in the strategic vision of Ion Exchange or the way that we might conduct business, at least from the new MD's perspective? Yeah, just last thing on that. Well, we are looking at more aggressive growth in times to come. The aspiration of the company is to multiply the top line as well as bottom line several times over in the coming five to seven years. You will certainly see a slightly more, a higher pace of growth. We will see a higher degree of action on the international markets, that's a strategy which we have been advocating for quite a few quarters and years now. We will be looking at international markets for future growth. All right, sir. Thank you so much. Thank you. Thank you. The next question is from the line of Sameer from Aum Fund Advisors. Please go ahead. Yes, hi. Thank you for the opportunity. Am I audible? Yes, you are. Sir, I have two questions. One is on the chemicals business. This new facility at Roha, if you can just tell us what is the total CapEx that will be spent by the time this plant comes up, and what sort of fixed asset turnovers can we expect? Will margins continue to remain on the new product as well at the 25% EBIT level that you have? By when would you intend to hit peak capacity from the new plant? Well, we are expecting the plant to deliver somewhere around two to two and a half at this time. The total CapEx which is on the primary production facility is roughly INR 275 crore. We've been declaring over the last few calls about how the CapEx is going to be made there in an additional facility which is targeted to give us value additions on several other fronts which would aid the efficiency of production and several other matters. Unfortunately, we are not able to offer you a lot of technical details around that part of investment because it's one of the first times that something like this is being done anywhere. We would like to keep the public information on that limited at this stage. Hence, for the purpose of asset turn calculation, please take INR 275 crore. The projected number, as we just mentioned, is around 2.5 times. That is over a period of roughly four years. In terms of the margin profile, we do hope that the current margins can be maintained over at least the coming few months. It is dependent upon the movement of raw material prices, the foreign exchange fluctuation, the geopolitical scenario, the stability on various other fronts. Therefore, to give you a very definitive answer over a longer period of time is difficult. If things remain as they are, the margins are quite sustainable. For the new facility, we do expect to get a little bit of an advantage on the cost front. Therefore, we might get a benefit of that in the bottom line as well. Sir, would it be fair to sort of conclude that based on an INR 275 crore CapEx in a four-year timeframe, you could effectively look to double your chemicals business, which is currently at about an INR 800 crore per annum run rate, while maintaining margins? Of course, it is subject to several vagaries. You should be able to double your chemicals business in four years at pretty much the same current margins, subject, of course, to product mix and all of the factors that you mentioned. Yes, that is what the number would add up to because it is not just the resin business that we are talking about. We are seeing growth on the other fronts also. Yes. Right. My second question, sir, is on the consumer business. Now, while we say that this business is growing, it is on a very, very small base. We have seen over the last four or six quarters at least that this business on a very small base, the growth in percentage terms should have been much larger, where it is not the case. What are the issues that you are facing? Because we consistently see small losses from this business, and the sales ramp-up is not what one would expect, given that the other listed competitor is now showing very decent numbers on the purifier side. Can you just talk a little bit about if you are facing any issues, what those issues are in that business? How long will this marginal or small losses from this business keep happening every quarter? We are expecting this business to grow by roughly around 30% level by the end of the current year. The size of the business yet, it is in the range of around 10-11% of our revenues at the moment. It has been at roughly that level for quite a while. We do see that the current trends are quite favorable, and we are aspiring to reach a figure of INR 500 crore in the near future. The entire effort at the moment is not so much EBITDA-focused. It is more geared to reach a scale which is more meaningful for that business and for the company. That's why a lot of gross margins which the company, which that part of the division is being able to generate, we are redeploying in the consumer business in developing infrastructure for future growth. Sir, could you just elaborate a little bit? Are you increasing distribution, distributor? Are you going into new geography? Is there new product introduction? How are you going to achieve a INR 500 crore turnover in this particular business? We are investing in and developing capabilities in all the fronts that you just mentioned, and maybe a little bit more. As we grow from a level which was significantly lesser than where we stand today, we would need to build on all of these fronts and continue to provide outstanding product and services better than what the rest of the industry is doing. With that aspiration, there's a lot of investment going on. In the minds of our team, certainly the figure of INR 500 crore is not all that distant. We would, as I say, see roughly a 30% growth by the end of this year, and then we'll be building on a slightly larger base. Okay. Thank you. Thanks. The next question is from the line of Romil Jain from Electrum PMS. Please go ahead. Hello. Thanks for the opportunity, and congrats on the excellent numbers. Am I audible, sir? Yes, you are. Am I audible, sir? Yes, you are audible. Please go ahead. Okay. Yeah, my question is, one, on the order inflow. Can you just help me with the order inflow in H1 and what do you expect for the whole year? Sure. Vasant, can you please elaborate on the order inflow? Yes. The order inflow for the first half was around INR 726 crores. Okay. Normally H2 being better, what kind of inflows you are expecting on an annual basis? Well, it's very difficult to predict exactly what orders we will end up winning because there are a few large ticket contracts which are under discussion, and hopefully we will be able to, if those go as anticipated and in our favor, then we should be able to outperform the previous year's second half. Okay. Just as an observation, I think last few quarters, we've seen the order book in a range bound. Because there's a lot of work going on globally also, and we hear a lot of stuff on the water space. There doesn't seem to be a lot of incremental order inflow that is coming through. Can you give some idea of how the international order book within our space is performing, how aggressive we are and can this the bid pipeline has remained in this INR 8,000 crore kind of a band and similar is the order book. Can you just give some flavor on that side? The order book is also a function of the contracts which are getting executed because that portion of the order book would keep coming out of it. If you see a higher quantum of revenues which are being booked, it would require that much more of order inflow to keep the levels at the same pace. While we have seen marginal growth in the overall quantum, but the quarter-to-quarter order intake, just to give you an example, the Q2 of this year, we've got around the INR 570 crore or INR 580 crore of inflow of orders, which is significantly higher than the Q2 of the previous year, which was, I think, at around INR 490 crore level. Almost double of what we delivered in Q2 of last year. Secondly, on the chemical side. This chemical, roughly with the capacity coming in, I think our overall kind of revenue should double in coming years. I think we were also contemplating a further expansion in this segment. Post this, when are we expecting to start that work? If you can give some idea again on the present situation in the chemicals in terms of competition, volatility, if there is any, on the chemical side. As the margins would indicate, we are faring quite well against the overall competitive intensity. The global market and the Indian markets both would have several players who are active in the space of water treatment chemical. India has several of the global majors present in the space for several decades. Hence, when we look at a sustained profitability or an uptrend in the overall margin profile, that would indicate that we've been doing something right. A few of the things which we have outlined in the past, that our ability to keep the realization, sustain the realization at their levels to ensure an uptrend in margins is a significant indicator of our competitive ability. That's one side of the story. The consumable business in India has been growing at a decent pace. It's not a number which is anywhere close to the numbers that you see on the engineering front. The growth also would be roughly around the single digit or barely past the 10% level in most of the large ticket consumable chemicals. In that scenario, when you are doing a 15%, 16% growth year-over-year, would require both winning some extra customers and also substantial international growth. Our strategy is to maximize our international business in times to come, because that is just a much bigger headroom for giving the level of better load, as you just mentioned, in a short period of time. Okay. Sir, just one clarification on chemicals. I think we had acquired MAPRIL last year. Are the current quarter chemical numbers on a like-to-like basis, the 12% growth, sir, just to clarify? For the current quarter, yes, it is like to like. For the half, it is not like to like because in the previous year, we had just a few weeks in the first quarter for Mapril. Okay. Q2 and Q2 last year is comparable right now? Yes. Okay. Thank you so much, sir. Just one suggestion, request. If you can give some more granular details in the presentation, it would be very helpful to assess the business. Maybe more data on your international order book breakup between some segments, and also some geographical breakup and some order inflow data. Those things, if you could give, it would be really helpful, sir. That's all from my side. Thanks. The next question is from the line of Saket Kapoor from Kapoor & Co. Please go ahead. Namaskar, sir, and thank you for the opportunity. Yes, sir. Sir, what goes into the consolidation part in the engineering segment? These are the foreign order execution that we are executing because herein also, these are orders with no margins or very low margins, sir. If we take the quarterly number of INR 369 crore and INR 394 crore, that is the standalone number of INR 369 and INR 394 of consolidated number. Sir, what you are saying is that. What goes into the consolidation firstly, sir, yes. The margin contracts when we go for consolidation. Yeah. Right. We have several subsidiaries, not just international, but Indian also, and some of these are involved in providing support to the main business through manufacturing, through services, and through other elements of the business, where the margin additions may not be that significant. That is one of the primary reasons why you don't see a big jump on the bottom line. The international businesses, at various points of time, we have explained that they are a growing lot, and some of these operations have turned profitable, and they have started to do well. There are others which are still in the process of growing, and therefore, the investments in this have to be borne for a slightly longer period of time. That's broadly why the consolidation is not that much of a margin accretive. When we look at for the chemical segment, it is the MAPRIL acquisition only that contributes to the top line and bottom line? MAPRIL is a significant addition which you see there are some other additions also. MAPRIL is the most substantial one. Sir, for the U.P. project part and also the thrust of the government on this Jal Jeevan scheme, do you find that there is a change or the focus has slightly diverted with release of fund also becoming a key point of observation for almost every EPC company? What is the feedback as such when we hear other people, they are saying that the center funds are not being disbursed. The state portion is being disbursed. What is the feedback you people are getting? I'm talking specifically about the U.P. project also. What are the key bottlenecks and how do you see things shaping up? Well, elections were a major hiccup. We know that at the time of elections, a lot of the state machinery is bound to come to a much slower pace, if not a complete halt. That was one of the primary reasons why the first quarters and a large portion of the second quarter, we faced issues on various fronts, including fund allocation. The fund allocations have improved in October, for example, and during a part of September. We do hope that we will see more of this happening in the coming period of time so that we can carry out our execution at a faster pace. If you are asking me about a national view on the subject, then it is very dependent upon which specific state or geography that we are talking about. yes, it involves not just the center, but also the state and the various areas where we are allocating or deploying funds. My question was. On a very general level, there is an improvement there in the current month. What we can conclude is that the aberration in the UP project execution was because of the monsoon factor also, and also because of allocation of funds, but that things are now coming to more normalization from October onwards. That should be the conclusion as of now. Yes. October is significantly better. Yes. Correct. Right. Sir, thank you for all the answers, and all the best to the team. Thank you. The next question is from the line of Omkar, an individual investor. Please go ahead. Sir, what is the exit run rate can we expect in chemical business for quarter three and quarter four? In last both the quarters, quarter one and quarter two, the exit run rate in chemical business was INR 200 crores. You are saying we are at 70% of the capacity utilization. What is the exit run rate can we expect in quarter three and quarter four, as you said last time also, that there is still room for the chemical business to improve. I don't think I got your question completely. You said exit run rate. Yeah. Per quarter you are doing INR 200 crores of revenue in chemical business. My question is, what is the revenue are you expecting in chemical business in quarter three, quarter four? Are chemical business will be also better than quarter one, quarter two? We are at 70% of the capital utilization for the plant for chemicals. For the year as a whole, we are expecting to close on a standalone basis at roughly around 15%, and on a consolidated basis, a growth of roughly between 12%-14%. My question is that can we do better than INR 200 crores? As of now, in both the quarters, we have done INR 200 crores of chemical business. My question is, can we do better, INR 10, INR 20, INR 30 crores per quarter, more than INR 200 crores? We hope that we will be able to better that INR 199 crores, INR 197 crores, whatever we have done. Understood. Sir, as far as margin is concerned, we are at around 11% from both the quarters, and we said we will go back to that good trajectory where we are doing 12%, 13% or 14% in 2022, 2023. You said specifically as the quarter progresses, we can guide you more. What is the margin can we expect for the entire business, consumer, chemical plus engineering? Current margin, operating profit margin is at 11%. What is the margin can we expect? Can we reach 12%, 12.5% in quarter three, quarter four specifically? Because now already H1 is over, and we are last four months of these financial years. Sir, you are asking about the company as a whole, right? Yes. Operating profit margin, which is that we are at subdued around 11%. Last time we were at 11.3%, this time is around 10.8%. Average you can say we are at 11% for H1 for entire business. Can we expect our operating profit margin can go to 12% or 12.5%? Because in last con call also, you said from here on, the margin will definitely improve because that one of the contract was giving you the trouble and where the margin was going down. I am specifically asking operating profit margin for the full business, entire business. Unfortunately, the contract which you mentioned is still not executed, and we do expect that substantial pain from that would continue, and it could have a bearing not just on the engineering margins, but it would be substantially visible in the overall margins of the company. With that factor in, we hope that we will be able to maintain the margin percentage at around the last year's level. The improvement that we were hoping to bring because of operating leverage on higher revenues and all of that, unfortunately, that one contract is having a very significant bearing and therefore, we are likely to be at around the last year's margin percentage. Thank you, sir. Omkar sir, please fall back in the question queue for further questions. The next question is from the line of Sunil Kothari from Unique PMS. Please go ahead. Thank you. Thanks for the opportunity. Aankur sir, just one question, nothing to do with this current year trajectory. I would like to understand, looking at last past two, three, four years, our experience in this engineering segment, water related projects, our experience with Sri Lanka and our experience with U.P. For next three years, which are the areas where you will be focusing more on the business to grow? Which are the area where you would like to improve by not taking some projects which is troubling us? Which are the things which you'll be focusing on, and how you see next three years international and domestic opportunity for water segment, engineering segment? Thank you, Sunil. I think you got it spot on. The focus which we have is very much for the future. In spite of very tight discipline that we maintain, the nature of the work, which is EPC, and specifically when we enter the municipal infrastructure segment, there are unfortunately, uncertainties which do bring in new learnings. We are hoping that we will be doing significantly more business in the international market. Our experience in recent times has been pretty good. The orders that we are picking up from the international market are also extremely good, both from the top line as well as the bottom line perspective. That's clearly one area of growth that we are looking and we will continue to work more towards. The other area is to look at some of these sunrise industries, that is semiconductor space, the solar space, the biosimilar, the biotechnology space, and a lot of medium to large segment industries which are more aware and which require higher quality of water. Those are areas of interest for us. We are also looking at very select government projects, and certainly looking at larger sizes of individual contracts, which are concentrated in the nature of their execution. With all the learning that we've had in the recent times, I'm sure that we would be able to translate it into higher quality of contracts and bottom line. We are not going to completely step away from the infrastructure segment. It was never our focus, but we remain committed to delivering at least two or three large contracts from that space as well, while international business and industrial business continues to be our strength area. Thank you, sir. Ladies and gentlemen, due to time constraint, that was the last question for today's conference call. I now hand the conference over to Mr. N.M. Ranadive for the closing comments. Thank you all for participating in this earnings call. I hope we have been able to answer your questions satisfactorily. If you have any further questions or would like to know more about the company, we would be happy to be of assistance. We are very thankful to all our investors who stood by us and also had confidence in the company's growth plan and focus. With this, I wish everyone a great evening. Thank you. On behalf of Ion Exchange India Limited, that concludes this conference. Thank you for joining us and you may now disconnect your line.