Please note that this conference is being recorded. I now hand the conference over to Mr. Manish Mahawar from Antique Stock Broking. Thank you and over to you, sir. Thank you, Ritija. I welcome all the participants to the 2Q FY 2023 earnings call of Dhanuka Agritech. From the management, we have Mr. M.K. Dhanuka, Managing Director, Mr. Rahul Dhanuka, Chief Operating Officer, and Mr. V.K. Bansal, CFO on the call. Without any delay, I would like to hand over the call to Mr. Dhanuka for opening remarks. For which we will open the floor for Q&A. Thank you, and over to you, Mr. Dhanuka. Thank you, Manish. Good afternoon, ladies and gentlemen. Myself M.K. Dhanuka, Managing Director of Dhanuka Agritech Limited. I hope all of you are well and keeping safe. Thank you for joining us in the conference call for results of Q2 FY 2022-23 of Dhanuka Agritech. I have with me Mr. Rahul Dhanuka, Chief Operating Officer, and Mr. V.K. Bansal, CFO of the company. Dhanuka Agritech is a leading agrochemical company in India, focusing on branded sales in the market. The company's strength lies in manufacturing and marketing of formulated products. The product portfolio is spread across insecticides, herbicides, fungicides, and plant growth promoters. Dhanuka Agritech is working with the vision of transforming India through agriculture. Our belief is that when we transform the lives of farmers by enhancing their productivity and quality, in turn enhancing their income, we are making a small contribution in transforming India. We work in all major crops in India and have implemented the best-in-class technology to ensure a smooth and efficient supply chain. Dhanuka have a pan-India presence through its marketing team and warehouses in all major states across India. With 3 manufacturing units and 41 warehouses across India, we cater to around 6,500 distributors and dealers and around 80,000 retailers. Through this extensive network, Dhanuka reaches out to approximately 10 million Indian farmers with its product, with its products and services. Dhanuka has more than 1,000 technocommercial staff, supported by a strong sales and marketing team to promote and develop new products. Dhanuka's strong R&D division has world-class NABL-accredited laboratory, as well as an excellent team for new product registration and development. Dhanuka has international collaboration with 10 leading global agrochemical companies from U.S., Japan and Europe, which helps us to introduce the latest technology in India. This year, the rainfall has been very uneven, and although the overall rainfall is above average, east and north region has suffered from very less rainfall, whereas south and west has seen unprecedented rains, resulting in flooding in many regions. Coming to the financial performance for quarter two of FY 2022-23, the revenues from operation stood at INR 542.9 crore in Q2 FY 2022-23 versus INR 438.82 crore in Q2 of FY 2021-2022. EBITDA stood at INR 97.52 crore in Q2 of FY 2022-2023 versus INR 82.16 crore in Q2 of FY 2021-2022. Profit after tax was at INR 72.02 crore in Q2 of FY 2022-2023 versus INR 63.37 crore in Q2 of FY 2021-2022. The zone-wise percentage share of turnover for Q2 FY 2022-23 is as under. North India, 26%. East India, only 8%. The growth and the top line has suffered majorly in each zone because of the deficit in rainfall. West zone, 37% and south zone, 29%. Product category-wise share of turnover for Q2 of FY 2022-2023. Insecticides, 37%, fungicides, 21%, herbicides, 31%, and others, 11%. The Board of Directors of the company in its meeting held today has approved the proposal for the buyback of 10 lakh equity shares of the company for an amount not exceeding INR 85 crores at a maximum price not exceeding INR 850 per equity share of INR 2 each. The buyback is subject to all applicable statutory approvals. We are happy to inform that company has set up the Dhanuka Agritech Research & Technology Center at Palwal, Haryana on 6-acre land equipped with all laboratory facilities and a training hall with a capacity of 100 farmers. The R&D center will also be able to facilitate the demonstration of package of practice of various crops as per the season for increasing their quality, yield, and income. The Honorable Chief Minister of Haryana, Shri Manohar Lal Khattar Ji, has very kindly given his consent to inaugurate our R&D center at Palwal on November 4th, 2022. After the initiation of the export department in September, we have started receiving queries from international markets for our current product portfolio, and we expect these leads to be used for export of products coming from the Dahej plant as well. Further, we are ready for launching our new range of biological products in the month of November with an initial portfolio of six products. These products are currently being sourced from the best third-party vendors in the industry. Setting up of Dahej plant is progressing as per the scheduled time, and we are expecting production to start from March end 2023. The company has obtained the registration certificate in CIB&RC under Section 9(3) for the product Decide 31% WG for the control of various insects in chilli and launched the product in Q2. We are getting very good response, and unfortunately, we were not having the technical, which was not planned, and we could not able to supply the material in the market as per demand. I'm happy to inform that the company was awarded in ABSA 2022 in the category The Most Innovative Campaign on Horticulture. Further, myself received Zee Business Award for the contribution in agriculture sector, conferred by the Honorable Shri Manohar Lal Khattar, Chief Minister of Haryana, at MDU, Rohtak, on 15th September 2022. The Ministry of Agriculture has issued notification restricting use of glyphosate through pest control operators only. The industry associations are approaching to the state governments to discuss the effects, implementation, strategies, and challenges of implementation of this order. Being India's leading agrochemical company, we are at the forefront of introducing digital solutions and innovations, streamlining policies, and collaborating with various entities to boost the integration of technology across business segments. In the same endeavor, we have tried to boost our reach through online farmer interactions and aggressive use of TV advertisements for all our key products. We are focused on expanding our market coverage through our network of distributors and our digital platforms, where we engage with the end consumer. Also, Dhanuka has tied up with upcoming online platforms like AgroStar, DeHaat, Gramophone, and Plantix for online sales of Dhanuka products through their platform. We consider ourselves responsible towards securing the farmer's welfare and preserving food security of the nation. We continue to strengthen our association with the Farmer Producer Organization, that is FPOs, Krishi Vigyan Kendras, KVKs, and other critical institutions to increase our business expertise and boost our market presence. Thank you very much for your kind attention. We would now take the questions from you which you may have. Thank you very much. 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 the touch-tone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Viraj Kacharia from SiMPL. Please go ahead. Yeah. Hi, thank you for the opportunity, and congratulations on a good set of numbers in the challenging environment. Just had few questions. First is on the overall sales growth, for the quarter and for the first half. If you can just provide some perspective in terms of, you know, how is the volume price mix being for us? You know, and a related question is, you know, if I look at the contribution margins last quarters, you know, it's been trending considerably lower and, this despite the share of ITI increasing in overall mix. I think in the first half, it's close to 50% of overall revenue mix, and it's the highest in last 3-4 years. In that sense, just want to understand, you know, how should one understand the overall contribution margin behaving for us in next couple of years for us? That is one. Second question is largely in terms of operating costs, which we have kind of been able to manage it much better, despite the challenges in terms of the RM headwinds. In which areas or avenues we've kind of been able to contain the costs? Your first question is with regard to the value and volume growth. Am I right? Yeah. Relatedly on the contribution margins. You see with regard the volume, there is a difference of around 7% value growth. The value growth is more than 23% and the volume is more than 16%. Sorry, it didn't. Your voice was not clear. Can you repeat that if it's possible? You see the difference of value and volume is 7%. The volume growth is 16% + in quarter two. Okay. Of 24%, volume growth is 7%, and then rest is value. The value growth is around 24%, and volume is around 16%. Okay. Sure. Your second question was regarding the ITI index. We have introduced a new molecule besides Cornex and Zanet and Terminal. We are getting very good response in three molecules out of four. That's why the ITI index has increased to- Fourteen point five seven percent. 14.75%, in comparison to 9.8% last year. We have around 50% growth over last year in the innovation turnover index, and we do hope that we will be able to get a much larger share of these molecules in the coming year. Definitely if the size share will increase, then definitely it will have impact on the margins also. Actually my question was, you know, typically the new products, you know, the contribution margins in new products is always higher. I mean, while they take time to mature and, you know, invest in the initial years, one typically invest a lot in, you know, brand building and all. Maybe the contribution at the EBITDA level is not much, but in terms of contribution level, the margin in the new products is always higher. In that perspective, you know, if we see the increase in share of ITI, despite that, you know, our contribution margins in the current quarter has seen a moderation. You know, we've seen almost 300 basis points moderation in gross margins compared to last year. Any perspective you can share, you know, what is? Given this is purely under recovery of RM or the base business itself has seen an erosion in terms of margins, you know, any perspective you can share? How should one look at gross margin behaving for next, you know, couple of years? Right. Your question is absolutely okay. You see the impact on gross margin largely on account of the liquidation of high value inventory. As you know, the price was increasing on material in the month of April, May, June. After that, the declining trend was started. There is a hit on the margin on account of the liquidation of high value inventory. To some extent of on account of the product mix. In the quarter two, percentage share of the institutional sales and the bulk sales has also increased from, say from 2%-5%. Because of that hits in the gross margin, and that will continue in Q3 as well this year. Going forward, after you see the next year or, you know, in couple of years, our gross margin, see, we should be able to maintain around 35%-36% gross margin level, we should be able to maintain. You are right that in new molecules which are under Section 9(3), the margin levels are always higher. In Section 9(4) molecules or me-too product, the margins are lower. This year we have lost 4 products. Terminal is one product which is a me-too product, and that's why the share in ITI index for Terminal is higher. Since it is not a Section 9(3) molecule, margins in Terminal were lower. That is the reason that overall it has also impacted the margins. Again, sorry to harp on this, and this is just a follow-up on the contribution margin. You know, historically, we've done close to 37-38% or, you know, there have been years where we've gone above 40% also in terms of contribution margins. You know, when you say, I understand this year we had an impact in terms of high-cost inventory. If you have to look at next 3-4 years, you know, your communication is that it's should be around 35%-36%. Just trying to understand where is the disconnect. I mean, as share of ITI improves over a period of time, this should in a way kind of aid your overall contribution margins. But what you're saying is, you know, it will still largely be around 35%-36%. Just trying to understand the disconnect. Yeah, you see, when we are introducing new molecule, margin is good, but at the same time, our new introduction we were introduced 4 years, 5 years ago, we are losing certain margin. Overall, we are, you see, confident to deliver gross margin around 35%-36%. 38%, yes, we delivered in the past 30% or 39%. At times it is because of the when the trend is increasing side. If the price is increasing a particular year, that particular quarter we can deliver much more because we always get the advantage of the carryover inventory that point of time. But largely on a sustainable basis, we I think the 35, 36 appears to be realistic. Okay. In terms of operating costs, which, you know, elements we are seeing savings or, you know, lower cost inflation, you know. Again, last couple of years, both in terms of employee costs and other expenses, you've done a very good job in terms of containing this cost, you know. Just trying to understand how we've gone about achieving those savings. If you can elaborate. You see, in terms of cost, I think, after COVID, this year was an absolutely normalized year. Therefore, an increase was there. I think, this particular year, we'll be able to maintain our cost in terms of the same percentage going forward. Okay, fine. I'll come back in the queue. Thank you. Thank you. Thank you. Participants who wishes to ask a question may press star and one. The next question is from the line of Yogesh Tiwari from Arihant Capital Markets. Please go ahead. Thank you, sir. I had a question on China. There are some news of disruption due to lockdown in China. Just wanted to understand if there's any supply chain disruption from China and like we had in Q1, and what would be the exposure to China in terms of percentage? This is my request to the operator. The voice is not very clear. Can you do something to make it better? Mr. Tiwari, the thing is, you have kept the handset nearby to you. Can you please keep it on a distance? Because it is sounding muffled. Am I clear now? Hello. Yes. Yeah. It's better in terms of clarity, but if you could be louder. Is it better now? Yeah. Yeah. My question was on China. There were news of lockdown in China. Is there any supply disruption similar to what we had in Q1? What would be your exposure to China in terms of percentage? Okay, the supply disruption in China is actually a new norm, and we have now seen it happening in 2020 in COVID. That continued in 2021 and 2022 also. Every month the disruption has showed up itself in a different form. Now the supply disruption is not a Chinese factor alone. The supply disruption is because of logistics, because of the supply chain disruption at the back end in many manufacturing units, availability of key basic materials. Many things are impacting the supply chain in different forms. A new update on China every morning, sometimes talking about disrupting microchips or sometimes disrupting iPhones or sometimes disrupting chemical plants is, you know, we have to take that in stride. Normally, this means a delay of 15-20 days and nothing else. Is this delay leading to increase in cost for the company? Could you repeat that? Just to repeat, as you told that there's a delay of 15-20 days for raw materials from China, so is this leading to any cost increase because of this delay? No. Cost increase, I don't think so is much there because of the delay. It is the opportunity loss it sets in. Okay. My second question is on the upcoming season. How do you see the demand for the upcoming season, given there was erratic rains and uneven rains? How do you see the demand? This widespread rains across the country has actually elevated the groundwater as well as the soil moisture. This is really favorable for the favorite crop, wheat right now. We are quite hopeful of wheat acreages going up significantly across the country. Demand of oilseed means that the mustard acreages will also remain high. These are the two crops certainly going to take up space. In South India, Kharif paddy acreages were lower, which now due to availability of water, should come up aggressively in South India as well as in East India. Crop damages in Kharif prompts the farmer to go for his earnings protection through Rabi planting. We are hopeful of Rabi planting and Rabi acreages to be overall higher. Okay. In the last quarter, basically in the last 15 days of September, there was heavy rains and flooding in North India, basically, Uttar Pradesh. We have a huge exposure in North India. Were there any sales affected because of this erratic flooding in the last half of Q2? Erratic rains, especially if heavy, then they do impact the consumption at the farmer end. The spray opportunity is lost. That is one. Standing water in the fields means that the further spray opportunity, even if the rain has stopped, gets impacted. Yes, this heavy rain has certainly impacted consumption for the farmer and for the industry. Sorry to interrupt you, Mr. Tiwari. May we request you to please rejoin the queue? We have participants waiting for their turn. Yeah, sure. Yeah. Thank you. Thank you. Participants, in order to ensure that the management is able to address questions from everyone, kindly limit your query questions to two per participant. The next question is from the line of Keshav Garg from DSP Investment Managers. Please go ahead. Yeah. Hi, good afternoon. A few questions. First one is on inventory levels at the industry level for agrochemicals. What is your sense, given that the Kharif season has not pan out as expected, how are the inventory levels and the situation currently at the marketplace? I would feel that the inventory levels will be substantially higher, relatively higher for sure, both at the channel as well as the industry end. Industry would be holding relatively higher inventory. Okay. What is the situation for us at Dhanuka? In channel we normally don't hold high inventories, but at our end, yes, our inventories are relatively higher. Okay. Got it, sir. You think, because of the better outlook of Rabi, things should get normalized in six months or some of the molecules may get used only in the next Kharif season now? Some of the molecules are very Kharif specific, but as of now, I don't see which one would be impacted. In fact, most of the products which are specific are Rabi specific. Kharif products will still have opportunity in Rabi also. Most of the Kharif products will have Rabi opportunity in South India as well as in East India. Okay. Understood. Sir, the second part is on the technical plant at Dahej. You mentioned that from March 2023 onwards, it will commission and production will start. Any more further insights on it compared to what you were envisaging, let's say 6 months or a year back, is the overall in terms of expectation of the kind of product you were thinking about manufacturing and any other opportunity which is emerging there? Actually this plant will open up many opportunities in the new world order and huge traction on China Plus One overall chemical demand. We are banking on all that traction around us. As of now, our narrative is that we start production, we go live in March and then play from there. Okay. Perfect. Thank you, sir. I'm done. Thanks. Thank you. You're welcome. The next question is from the line of Rohit Nagraj from Centrum Broking. Please go ahead. Yeah. Thanks for the opportunity and congrats on a good set of numbers. Just first question is, in terms of the high cost inventories which impacted our 1H performance. Have we exhausted all the inventories and now we have come to the low cost inventories in Q3? Thank you. Actually it is not because you see the declining trend is continuing. You see the inventory which was procured in the month of June, largely liquidated, but whatever we procured in July or in August, it still there is a declining trend. In the quarter three there will be impact of the high inventory as well. All right. Second question is in terms of exports. We have recently started in the month of September our export unit. Have we started seeding the market based on the products that we plan to manufacture in our new facility or the products where we have got inquiries from the export market? Have we started say sending the samples and getting those approved before the commercial supply start? Thank you. We are exploring the export markets from all these angles. We are really hopeful to catch some elements there very aggressively and more so once our technical plant comes up. All right, sir. Got it. Just one clarification on the guidance. We have said that revenue guidance will be double digit growth and as I understand the EBITDA margins will be at the same level as it was last year. Effectively our top line growth will also reflect at absolute EBITDA level growth as well. Is the assumption right? You see in terms of percentage there will be a decline in EBITDA margin. Okay. Fair enough. Got it. Thank you so much, sir, and best of luck. Thank you. The next question is from the line of Anurag Patil from Roha Asset Managers. Please go ahead. Thank you for the opportunity. Sir, for our Dahej plant, is there any upward revision in the total project cost? Not significantly. Earlier we were expecting we will invest till March around INR 210 crore. Now, as per our estimate it is going to be INR 225 crore. Okay. Sir, what will be the revenue potential of this plant? Very broad number will be fine. Yeah. What will be the revenue potential from this plant? You see we are working on it. We'll share in the next quarter call. Okay, sir. Okay. Sir, one last question. What is our glyphosate revenue contribution? Is it material enough to affect us? No. Glyphosate contribution in our portfolio is hardly 2%. As such, there are two parts to it. One, the contribution in our portfolio is hardly 2%. Two, the order doesn't stop us from selling glyphosate, so we continue to sell, and as we see it, and as we interpret it, we'll continue to sell going forward also. The regulation doesn't stop us from selling. The regulation only says that it is to be used by PCO. This is an ecosystem which the state government are working on, industry is providing all the required support to the state government to create a PCO network and ecosystem so that the farmer, Indian agriculture is not deprived of glyphosate application. Just to add to it is another dimension. You know, this could be an example of how two different departments work, but eventually will converge. The recently, GM mustard has been approved, genetically modified mustard, and the genetic modification there in the mustard is weed control. Weed control by application of glyphosate. So that opportunity very much exists. The scientific community acknowledges that, so it is there to stay. It is only that the relevant ecosystem has to come together to make it move. Okay, sir. That's it from my side. Thank you very much. Thank you. The next question is from the line of Rohan Gupta from Nuvama Wealth Management. Please go ahead. Yeah. Hi, sir. Good evening. Good evening, Rohanji. Hi, sir. Good evening. Sir, first, one clarification. You mentioned the volume growth for the quarter is 16%, right? While the balance 7% is price-led growth. Right. Sir, is it that the price increase has been much higher and much sharper given the increase in chemical prices? Or, it is that, in our value-added product basket or specialty product basket, the price increase has been very limited and most price increase has been in a generic product category? Yeah. The price increase mainly happens in generic category. As shared earlier, the prices for the specialty molecules are fixed usually for one year. In one year, the price is not increased, but unfortunately, because of the devaluation of rupee, our imports are in dollars, so ultimately our costing increased because of the Forex losses. That is the reason that it has impacted the margins. Apart from the high cost inventory, the increasing of the dollar rate has also impacted the margins of the company. Okay. Sir, second question is on our buyback. I understand, and you have also earlier mentioned that the company will be on a CapEx mode, given this Dahej plant and how you want to go ahead in terms of adding the capacity and also have shown your intention to cater to the sports market. Given that, you still have decided to go ahead with the buyback of up to INR 38 crore. I thought that the company may go slow on this distribution of income to the shareholders. Don't you have any aggressive CapEx plans over the next couple of years beyond this INR 300 crore CapEx which we are already putting in the manufacturing? Apart from investment in Dahej unit, immediately we don't have any plans because for the bio division and the export division, we don't need any CapEx. Except Dahej, for immediate CapEx plans are not there. Every year we are going to basically earn profits of around INR 200 crores. That way, we don't need any funding, and we will be able to manage our CapEx from the internal accruals only. Okay. Sir, just third and last from my side is significant increase in receivables from March to September in the first half. There's been significant increase in receivables, which is there any particular delays from the dealers we are seeing or why such a sharp increase in receivables or it's from I guess only that delays because of the poor monsoon in the current year. To kind of repeat that. Sir, we have seen that your receivables has gone up significantly from March to September from almost INR 280 crore. Sorry. Operator, Mr. Gupta is not at all audible. Mr. Gupta, may I request you to please speak a little bit louder? Sir, is it better now? Yeah. Okay. Sir, I was saying that there has been significant increase in receivables in debtors levels in first half. Any particular reason for that? You see, there was basically cash flow was little tight in the Q2 because of which the debtors level increased. You see all the outstanding is within control, which means the collection is better now in November and December we are expecting a good collection. By the end of Q3, debtors will be in line with the growth of the company. Okay, sir. That's it from my side. Thank you. Thank you. The next question is from the line of Anika Mittal from Invest Research. Please go ahead. Hello. Good evening, sir. Good evening. I have only one question. Can you provide the overall Indian agrochemical company's outlook towards the ongoing energy crisis in Europe, due to which many agrochemical companies in Europe had been curtailing their production. Sir, how are you seeing this situation? Will this situation benefit the Indian agrochemical companies, and how are we seeing this as an opportunity, not only in terms of exporting to Europe, but also to other territories where earlier Europe was exporting? Your question kind of trailed off for me. I understand you're asking about the opportunities, but in reference to what? Correct. The opportunity due to energy prices in Europe. Yes. Yeah, got that. Due to energy prices in Europe. Yeah. You know, Europe is in a completely different situation. It has various challenges to deal with right now in terms of energy required for keeping the houses warm and in terms of their own food supply coming from Ukraine and Russia, which were the large suppliers of wheat and sunflower for sure, but a lot of other food items as well. Europe has to struggle through their food supply, their fuel supply and for running their chemical plants, both in terms of basic raw material as well as the energy. This does open up opportunities in many ways for Indian agriculture as well as Indian chemical manufacturers. Yeah. Yet this is still opening up. These dimensions are still opening up. This is not very clear as to how this opportunity will shape up. Certainly India will have a big role to play, both in terms of global food security and supplying basic raw material and key manufacturing chemicals for food for pharmaceutical as well as for agrochemicals. Okay. Thank you, sir. That's it from my side. Thank you. The next question is from the line of Ayush from Nuvama. Please go ahead. Hi. Am I audible? It is better, Mr. Ayush, if you can speak a little louder. Sure. Is it better now? Yes, please go ahead. Yeah. Firstly, congratulations on a good set of numbers. My question goes back to the gross margin decay issue. We've seen sixth consecutive quarter of gross margin decay. Firstly, early on in the call you alluded to some mixed change towards in STCs. Sorry. Oh, in bulk sales. I'm sorry you're not audible. Just give me one second, please. Yeah. Is it better now? Hello. Can you speak a little louder, Mr. Ayush? Is it better now? Yes. Please go ahead. My question is for the gross margin. We're seeing a sixth consecutive quarter of gross margin decay. Early on in the call you alluded to some mix change towards bulk sales and institutional sales. I mean, I would just like to understand how that or the quantum of impact that it may have going forward on the gross margin. Secondly, on the Raichur plant which is coming up, if the bulk of the plant is for captive consumption, can we not see some gross margin advantage coming from that? Thirdly, how are we placing ourselves when it comes to exports? I'm really sorry to bunch up all my questions, but would appreciate if you could take them. You see, the impact on gross margin is basically because of two, three reasons. I've already shared the major impact in this financial year first half is because of the high price inventory liquidation, one. Second, the impact of the rupee depreciation and product mix. As far as the share of the increase in institutional sales and bulk, the impact is not significant. The overall impact could be 20-30 basis points in the full first half of this financial year. Right? Okay. Yes. Second question is regarding captive consumption of the Rabi- Of the Dahej plant. Yeah. Right? Yeah, that's correct. Yes, sir. We cannot share this thing now because we are evaluating and making this program. Probably we'll be in a better position to share this thing by the end of the June con call to be held in the month of February. Sure, sure. All right. Thanks a lot, sir. Bye. Thank you. The next question is from the line of Viraj Kacharia from SiMPL. Please go ahead. Thanks for the opportunity again. Just had two questions. First is on the export part. You know, so you said in the early part of the call, sir, that you have started receiving inquiries. So both in terms of existing portfolio where you're seeing inquiries, I mean, where are we in the registration of those? You know, just trying to understand that come March 2023 when we are commercializing the production, we would be having the registrations for these in place or the registrations will be owned by the customers. Just trying to understand, you know, where are we in terms of registration both for this. Then second is in terms of the pipeline for new products for exports. How is that taking shape? Right. That's absolutely a very industry-specific and insightful question, I would say. Registration has three dimensions mostly. There are countries and export opportunities where registration is not required or based upon Indian registrations, we get access to those markets. To begin with, we are exploring these markets where the registration process is not long-drawn or complex. Our easy registration markets where we have applied for registrations, and we'll get probably access to those markets in next few months. Those will be our next targets. Third one, we are working on the investment and registration in different countries, which we will expand towards the end of this financial year. These are the three ways in which we are exploring the export market. We already have opportunity with some of our existing products, existing formulated products as well, with which we are going for the export market access. Meanwhile, we are working for developing products and formulations and recipes relevant for export market, and we are working on that aggressively. Okay. For exports, I mean, what we understand, the larger part of the focus was on technicals rather than like, formulations. I think what you're saying now is, we are kind of looking at exporting formulations in totality, so, I mean, what changed? Just trying to understand. What? Come again? What? I think what you mentioned right now is that we're looking at exports of formulations largely other than. I think earlier communication was largely in terms of exports of technicals. Right. This is very interesting. As we ventured into exploring the markets for technical grade, what we discovered is there is huge opportunity available to us for export of formulations also. For which we already have capacity as well as capability. We are just leveraging that. Okay. Irrespective of the AI, you know, we can actually look to scale up exports in a material way. I mean, just commercialization of the AI itself doesn't restrict us in terms of scaling up the formulation piece, right, for exports? That's right. That irrespective of the AI, we have a play in export market is what we realized and understand. Yet the export market, which is more of a B2B market, we will certainly need specific levers to stay strong where the AI comes into picture. Our in-house production are some of the key levers which we'll use to get bigger in exports. Formulation export, we feel, and still we are discovering, is not long-term or independently sustainable without a technical backup. We are still learning. Okay. Usually, you know, when we talk about formulation exports also, typically these are to distributors in, say, countries which have less regulatory barriers or these are primarily to the MNCs. I mean, just trying to understand so that. Because the idea was to, over a period of time, to leverage the relationship which we have with some of the MNCs and, you know, eventually cater to them for the tech specialty molecules. At this stage, I would just say that export is a good opportunity. We have just recently learned and are getting into it. Okay. Sure. Yeah. Good luck. Thank you. Thank you. Thank you. you. The next question is from the line of Yogesh Tiwari from Arihant Capital Markets. Please go ahead. Thank you. Am I clear, audible? Hello. I would request Mr. Tiwari to speak little bit more louder. Is it okay now? Hello. Yes. Please go ahead, sir. Yeah. Thank you for the opportunity again. Just wanted to understand on glyphosate. I understand it is only 2% of the revenue, but the prices had gone higher in the last few quarters. Are the prices still higher, or is there any correction you can see in glyphosate? For last three months prices have been correcting down south, yeah. The prices have been moving downwards. Sure. The other one is on a patent which we have received and the commercialization is in 2023, the herbicide which has a base in metribuzin. It would be helpful if you can, you know, share what would be the opportunity from this patent. What are the demand dynamics in India for metribuzin? The patent that we have received is for a herbicide, and it will find its application in sugarcane. Given the current global scenario, sugar prices are up, and also sugarcane farmer has external opportunity. These are the two specific dimension which will keep sugar markets buoyant, and our product will find huge opportunity in space in weed management in sugarcane. That is where we see to have a play. Yes, but this will be like domestic focus. Yes, sir. Mostly domestic focus, yes. Most of our focus is domestic, yes. Okay. Lastly, on the insecticide portfolio. If I look at the split, this time, the proportion of insecticide has declined compared to the same period last year. Is there any softening of demand related to insecticides in India? No, not really. I would say that it was due to heavy rains that the insecticide application did not find adequate opportunities, which also translated conversely into more of herbicide consumption, thereby both in absolute terms as well as relative terms, insecticide having come down. This is just a, you know, specific rain-dependent pattern, and this is not a long-term pattern in the Indian market. Sure. Thank you. You're welcome. Thank you. The next question is from the line of Rohit Nagraj from Centrum Broking. Please go ahead. Yeah. Thanks for the follow-up. Just one question in terms of the CapEx and buyback. We have INR 225 crore of CapEx for the Dahej in FY 2023. There'll be INR 85 crore of buyback and maybe INR 15- INR 20 crore of maintenance CapEx. Effectively INR 325 crore of investment. Just wanted to know how we are planning to fund this entire investment based on the current cash on hand and the cash flows that we'll receive in the second half. Thank you. You see, in terms of the Dahej, investment of INR 225 crore to be happened in the year 2021-2022 and 2022-2023. Effectively in the year 2022-2023, it would be around INR 160 crore, and rest was happened in the year 2021-2022. With regard to the investment of the Dahej and the buyback, that will be managed from internal funds, plus you see we are holding, say, in the beginning of the year, treasury around INR 300 crore. Out of treasury plus internal funds for this year, that will manage. Right. Got it. Thank you so much. Thank you. Ladies and gentlemen, this was the last question for today. I would now like to hand the conference over to Mr. Manish Mahawar for closing comments. Thanks, Sujata. On behalf of Antique Stock Broking, I would like to thank the team of Dhanuka Agritech for providing us an opportunity to host the call. Dhanuka, would you like to make closing comments, sir? Yeah, sure. First of all, I would like to thank all the participants to participate in this conference call organized by the Antique Stock Broking. To summarize at last, Dhanuka continues to demonstrate our ability to overcome challenges and emerge stronger despite uncertain business environments. We will aggressively roll out new formulations in the upcoming quarters and would ensure that it reaches to the consumer. I reassure our shareholders that we are committed to the task of transforming the landscape of agriculture in India and will play an integral role in rewriting the future of a better and new India. Recently, Dhanuka has started a campaign, India Ka Pranam Har Kisan Ke Naam. We presume that the farmer has not got that respect which he is entitled to because he is working hard in the field in 50-degree temperature and zero-degree temperature. Because of his hard work, we are able to get the food and we are not only self-sufficient in food now, but we are in a position to export. A lot of countries are suffering for the shortage of food supply. Recently, we heard about Lanka and now in Europe also the inflation rate has crossed 10% more than that. We are thankful to our farming community, and I salute them that because of their hard work, we are able to get the food. This corporate theme, India Ka Pranam Har Kisan Ke Naam, we basically made an ad which we are playing on various TV channels and newspapers and magazines, et cetera. We hope that this will continue in times to come. Wishing you all the health and safety. Thank you very much. Thank you. On behalf of Antique Stock Broking, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.