Ladies and gentlemen, good day, and welcome to DCM Shriram Limited Q1 FY25 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 star then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Siddharth Rangnekar from CDR India. Thank you, and over to you, sir. Thank you, Vishal. Good afternoon, and welcome to DCM Shriram Limited's Q1 FY25 earnings conference call. Today, we have with us Mr. Ajay Shriram, Chairman and Senior Managing Director, Mr. Vikram Shriram, Vice Chairman and Managing Director, Mr. Ajit Shriram, Joint Managing Director, Mr. Aditya Shriram, Managing Director, Mr. Amit Agarwal, CFO, and Mr. Sanyog Jain, Deputy CFO of the company. We shall commence with remarks from Mr. Ajay Shriram and Mr. Vikram Shriram. Members of the audience will get an opportunity to post their queries to the management following these comments and during the interactive question and answer session. Before we note, please note that some of the statements made on this call could be forward-looking, and a note to that effect has been included in the conference call invitation that has been circulated earlier and is also available on the stock exchange website. I would now like to invite Mr. Ajay Shriram to give us a brief overview. Over to you, sir. Thank you, Siddharth. Good afternoon, everyone. Thank you for taking out time and joining us today to discuss the company's performance based on our Q1 financial year 25 results. I'll commence with views on the industry dynamics and our strategic direction, following which Vikram will share the financial perspective. The global economy has become more resilient and is growing at 3.2% despite facing geopolitical conflicts, high interest rates, and climate challenges. There can be uncertainties arising in future as the economic and geopolitical events unfold. India continues to maintain economic momentum, and with policy continuity, the growth is set to further accelerate. The Union Budget has laid out the growth agenda with focus on agriculture, employment, research and development, and infrastructure, among other areas. We have aligned our strategy to focus on creating growth opportunities in businesses through capacity, capability, technology, new products, and value addition. In order to address economic uncertainties, we continue to work towards making our operations more cost-effective, efficient. The initiatives that we have outlined are backed by a healthy balance sheet and are in line with our plan. Sustainability is a core element of our philosophy, which is well integrated into our operational and strategic pathways. Water and energy conservation are the core elements of our sustainability journey, along with social upliftment. I shall now move to the discussion on industry perspective across our business lines. First is the chemical business. Globally, the supply chain of caustic is balanced, and the prices are stable, although on the lower side. There was an interim price uptick in the month of March 2024, led by maintenance shutdowns in the U.S. that are now back in operation. India witnessed capacities coming online this quarter of more than 1,200 tonnes per day, including ours, taking the industry capacity to more than 6 million metric tonnes per year. Indian industry continues to operate at a healthy rate of about 80%, excluding the recent capacity addition. This is resulting in an oversupply of caustic as well as chlorine in the market and therefore lower ECU. India continues to be a net exporter of caustic this quarter as well. Our performance has been better both year-on-year and sequentially, mainly led by reduction in energy prices and higher volumes due to capacity addition. Prices have also been better during the quarter. We commissioned the 850 tonnes per day capacity in May 2024. The capacity ramp up will be gradual, given the oversupply in the domestic market. The 120 MW captive power plant also got commissioned in June and has started contributing to a better cost efficiency. We are positive on the caustic and chlorine outlook over the medium term, given the steady growth in the consuming industry. Our hydrogen peroxide plant has started trial runs and is expected to be commissioned shortly. Epichlorohydrin plant will start trial run in the second quarter of this year. As this round of CapEx is nearing completion, we are actively working on starting activities on chlorine and on epoxy and other downstream products, including chlorine downstream. Vinyl. Global demand for PVC in key economies is still sluggish. International PVC prices have firmed up mainly because of elevated sea freight due to the container shortages and the ongoing Red Sea issue. The domestic demand for PVC in India is robust and estimated to have grown by about 17% in this quarter in the wake of agriculture and construction activity. PVC imports in India account for about 68% of the demand and has grown by 21% in Q1 financial year 2024. Pricing improvement has been further supported by softening trend of input costs, especially energy costs. The prices have reversed back gradually once the increase in ocean freight reverses. Sugar and ethanol. Global sugar demand and supply for sugar season 2023-24 is expected to be balanced with a surplus of 1 million metric tons, similar to that of the last season. Indian sugar season 2023-24 is expected to end with a stock of about 8 million metric tons, as compared to about 5 million metric tons in the last season. The increase in the stock is mainly attributed to restriction on sugar exports and limitations on diversion for ethanol production. Diversion of sugar to ethanol in current season is 2.5 million metric tons versus about 4 million metric tons last year. Our cost of production has gone up due to increase in cane prices by UP government and adverse climatic conditions. While the price of sugar had increased, they are still not commensurate with the increase in the costs, leading to margin pressure. On the ethanol front, Government of India is committed to its 20% ethanol blending target by 2025. For ethanol supply year 2023-24, there has been good progress in ethanol blending, with current blending rates at 12.7%, despite restrictions on sugar-based ethanol. The grain-based ethanol has surpassed sugar-based ethanol, led by maize as the feedstock. There is a need to have more rational and consistent government policy for sugar as well as ethanol, which balances the feedstock, supports the farmer, the industry, as well as the consumer. Sugarcane crushing capacity expansion at Loni and the CBG plant at Ajbapur Sugar Unit are moving as per agreed timelines. Fenesta Building Systems. The broad performance in the business remains encouraging, with strong aggression in order booking. The elections in the first quarter had an impact on the real estate activity in the country, which slowed the growth momentum in the business. We are expanding across geographies and SKUs. The business is investing in newer revenue platforms and capacity enhancements in order to deliver a healthy momentum on an expanded base. Now moving on to the agri businesses, which comprise of Shriram Farm Solutions, fertilizers, and the Bioseed business. First, Shriram Farm Solutions. SFS has maintained its growth momentum, and its top line has grown in double digits. This growth is driven by all the business verticals, namely seeds, crop protection, and specialty plant nutrients. During this quarter, we have launched six new products in crop protection and specialty plant nutrition verticals, out of which two are from our own R&D and are first-time launches in India. The growth focus of the business is led by our own R&D collaborations and exclusive arrangements to bring new age products and global technology to the Indian farmers. Then, fertilizers. The urea business environment continues to be stable. Our business performance has been lower because of maintenance shutdown taken in the current quarter. The gas prices are similar to the last year. We continuously focus on improving efficiencies, including energy consumption. Bioseed. India operations continue to expand with help of novel hybrids for key crop, crops that we have introduced over the last few years. International operations have contributed well, too. We have a robust pipeline of products, and with that, we are expecting to grow the business going forward. I will now request Vikram to take this forward by covering the financials. Vikram, over to you. Thank you. Good afternoon, everyone. Our financial performance during Q1 financial year 25 was in line with our expectations. Chemicals and vinyl businesses saw improvement by a supportive cost environment. Sugar and ethanol businesses' margins were under pressure due to cost increases that were not commensurate with the increases in market prices. Shriram Farm Solutions and Fenesta Building Systems businesses continue to grow and deliver. The CapEx in chemicals business is nearing completion. The 850 TPD caustic capacity and 120 MW captive power plant have been commissioned during the quarter. We are confident of adding scale, newer product platforms, and bringing further improvements in our cost structures. I will now highlight the financial performance of Q1 FY25. The net revenues, net of excise, in this quarter were INR 2,876 crore as compared to INR 2,780 crore in the previous year. The increase in revenues is mainly driven by chlorovinyl segment despite moderation in sugar business. Accordingly, PBDIT stood at INR 274 crore, which is up by 49% year-on-year. Coming to chlorovinyl. The revenue in chlorovinyl segment increased by 15%, and PBDIT was at INR 177 crore as against INR 33 crore last year. The chlor-alkali business revenues were up 18% year-on-year, and PBDIT was up at INR 133 crore as compared to INR 36 crore last year due to higher volumes and significant savings in energy costs, led by 44 MW renewable energy and lower coal costs. ECU was slightly down by 2% year-on-year, however, were up by 8% quarter-on-quarter. Vinyl business revenues increased by 6% year-on-year, and PBDIT was at INR 44 crore versus -INR 3 crore last year. Volumes of both PVC and carbide increased. PVC prices were up by 4% year-on-year, and carbide prices were down by 14% year-on-year. The input cost reduction during the quarter versus last year and sequentially, this has led to the better earnings. Further, there was a one-time positive impact of INR 16 crore each in chemical and vinyl businesses on account of reversal of electricity duty on auxiliary consumption of power in our power plants. Coming to sugar business. Sugar business revenues were in line with last year. Domestic volumes were also similar, while sugar exports were nil this year as against 200,000 quintals last year. PBDIT has decreased by 57% year-on-year to INR 38 crores on account of higher cost of production, mainly attributable to increase in SAP in the state of UP and adverse climatic conditions and lack of exports of sugar this year. Ethanol volumes have increased to 413 lakh liters, representing 15% increase year-on-year. The domestic sugar prices were at INR 3,900 per quintal, an increase of 6% year-on-year. Fenesta Building Systems. Fenesta Building Systems has reported a growth of 7% year-on-year. PBDIT slightly moderated to INR 36 crores as compared to INR 40 crores in the last year on account of higher fixed costs incurred due to setting up of newer revenue platforms and enhancing capacities, and also due to higher sales promotion and business development expenses. Order book was up by 20% year-on-year. Shriram Farm Solutions revenues increased by 15% year-on-year, supported by both volumes and prices across the verticals. PBDIT for the quarter came in at INR 20 crore as against INR 11 crore last year, despite higher marketing spends directed towards strengthening the Shriram brand and higher R&D expenditure. In the fertilizer business, the revenues declined by 13% year-on-year due to lower volumes, owing to maintenance shutdown taken between quarter four 2024 and quarter one 2025. PBDIT was at INR 23 crore, similar to last year. There was a one-time net impact of INR 15 crore positive on account of reversals of provisions. Fixed expenses were higher as a result of maintenance shutdowns. Outstanding fertilizer subsidies this year were INR 133 crore, as against INR 83 crore in this period last year. Bioseed. Bioseed's revenue is stable. PBDIT has improved to INR 29 crores from INR 23 crores last year by better product mix and prices. On our overall, our net debt as on thirtieth June 2024 is INR 1,459 crores, as against INR 926 crores as on thirtieth June 2023, and 1,434 crores as on thirty-first March 2024. With a strong balance sheet and healthy cash flows, we continue to evaluate adjacencies in our core businesses to strengthen and enhance our portfolio and look for other opportunities for growth and cost savings. That concludes my opening remarks, and I would like to request the moderator to please open the forum for the Q&A session. Thank you. Thank you very much, sir. We will now begin the question and answer session. Anyone who wishes to ask questions may press star and one on their touchtone phone. If you wish to withdraw yourself from the question queue, you may press star and two. Participants are requested to use only handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. Participants, you may press star and one to ask questions. The first question is from the line of Pratik Tholiya from Systematix. Please go ahead. Yeah, hi. Thanks for the opportunity, and congratulations on a decent set of numbers. So just a couple of questions. Firstly, in the chemicals, so you said almost 200 TPD of additional capacity has come in, which I think 850 is belongs to you itself. And in the presentation, actually, you mentioned there is a good demand from end user industry. So if you could just, you know, talk a little about which end user industry is really seeing this kind of demand, and by, you know, in how many quarters can we expect the entire additional capacity to get fully absorbed? Yes. So in chemicals, actually, for caustic soda, as you well know, it is used across a wide variety of industries, including textiles, paper and pulp, alumina, other organic, inorganic chemicals. So it's sort of linked with GDP demand. If GDP is growing well, then the caustic demand also is expected to grow. So we are very optimistic that while there is some overcapacity in the short term, in the medium term, this capacity will all be absorbed comfortably. Okay. Actually, with this whole logistics issue, I think the cost also would have gone up for import, anyone who's importing caustic. So, what would be the imported caustic price again? Does that mean that Indian industry would slightly be better off, so our prices should also, the domestic price should also catch up with the imported price? So, Pratik, one, the imported prices are around $450, and, frankly, the, the imports are not very significant. If you see, in the Q1, only about 40,000 tons of caustic got imported. So there is, no significant advantage, coming as of now from, from exports, because see, the point is, it's the freight. Freight is not being used either by the importer or the exporter. Sure. Sure. Okay. And, sir, secondly, I see that, in the sugar business, we've, you know, kind of, seen a sharp decline in the profitability, while sugar prices have also moved up. And, I mean, so just trying to understand whether it is the sugar business which has seen lower profitability or whether there is something, you know, in ethanol, because C heavy, I think, would have been last part of it would have been C heavy ethanol. So because of that, there is this hit. If you could just, you know, explain within the sugar, what has... Within the sugar division, whether it is the sugar segment or the ethanol which has got hit. So as mentioned in the opening remarks as well, it is primarily in the sugar business, not ethanol. So sugar got impacted, one, because there were no exports. Last year, same quarter, we had exported about 200,000 tons. And the cost of production went up, and the selling price increase was not commensurate. So that is the key reason. And the, you know, the increase in SAP was about INR 20. So it's primarily, to answer your question, it's primarily in the sugar division, the sugar business. Sugar. Right. Okay. Got it. So but, I'm not sure, because some of the other competitors have not been, you know, experiencing a similar sort of mix. I was just pretty sure. Any specific costs other than the MSP and the FRP have also gone, maybe the recovery rates are lower, or something like that? I didn't get your question. No, I was just, you know, some of the other competitors of, you know, in the same businesses in UP, have not really highlighted a similar sort of cost pressure which you have experienced in this quarter. So other than the INR 20 MSP and zero sugar exports, are there any other reasons which has led to a drop, significant drop in the sugar profitability? See, one is this, the other is this recovery has been lower, and that has been across UP. Most of the mills, and especially in our region, the recovery also has been lower, so that also led to a little higher cost. That's right, sir. Lastly, Fenesta also again over here, I'm seeing margin compression of almost 400 basis points, YOY. Can you just explain what has really happened over here? So see, one, if you look at contribution margins, they have been largely intact. Now, I've again mentioned in the, in the opening remarks, the, growth, the revenue growth has been, lower than what we would have expected because of elections. And therefore, what we, witnessed was that, although our retail business grew even quarter-on-quarter, however, the B2B business, which is largely to builders, the institutional segment, that, has, I mean, I would say that has degrown. Although sequentially it has, although year-on-year it has grown, but sequentially there's been a degrowth. So that is the reason I think, which is temporary. It should get corrected maybe, you know, we're still seeing some impact, but it should get corrected over the next one, two months. The other thing is on the fixed cost, which, as we mentioned, you know, it's like investment. We have been investing for future growth. So we bought, we had two new factories which came up in last year, and we also had sugar business which was set up. So all these add to the fixed cost along with the sales and business development cost. I think once we, the revenue catches up, then it should be fine. ... Understood. And so, did you say that project business was down, so, does it mean the project vertical has a higher margin than retail? No, the retail business was a higher margin, but then ultimately it is a mix. So if the volumes don't catch up, then obviously it will have an impact on the amount that is available to cover the fixed cost. Okay. Understood. That's it from my side, sir. Thank you, and wish you all the very best for the future. Thank you. Thank you. A request to all the participants in the conference to use their handsets so that we can have optimum audio quality in the conference. A reminder to all the participants, you may please press star and one to ask questions. The next question is from the line of Aman Madhav from Unifi Capital. Please go ahead. Yeah, thanks for the opportunity. My question was on the caustic volume growth. Can you give some sense, where we have grown our volumes? Is it on, domestic part or export side, this quarter, for the new capacity? Yeah. Yes, so it is, largely on the domestic front that we have grown, and exports as well, we have grown. So it's been on both, in fact. Exports for us, including lye and flakes, last year in the same quarter was, 0.92 million metric tons. This time it is 0.12 million metric tons in this Q1 FY25. So we have, we have grown on both domestically and exports. Okay. And, can you mention the key countries where we are exporting as of now? It's largely going to the Middle East, Africa, and the Southeast Asian countries. Okay. Okay. Got it. And, is there a sense on, how much time it will take to ramp up the new capacity to optimum utilization? It will take more than a year, or by the end of this year, we should be able to do? Look, I think we are, our entire team is focused on these efforts only to ramp up the capacity. We are, I think we are seeing a steady growth in demand as well. So, we do expect that, towards the end of the year, we will reach... towards the end of the financial year, we will reach, significant capacity utilization, and by next year, we will be able to reach optimal capacity utilization. Okay, sir. Okay. And, on the cost side, it is energy cost has come down. Is there any decline in the salt prices for us? Salt is only about 15% of the cost. So yes, there has been a decline, but, the major impact comes from the energy cost center. Okay. Fair. On the ethanol side, how are you managing the feedstock availability for non-sugar, whatever we need? Are we able to, you know, get the raw materials at a price where we can generate decent margins? So how are we managing it? One, we are currently running on maize, and we have a team which is procuring. We are procuring at a reasonable price and which is giving us reasonable margin. Okay, got it. On the epoxy, you mentioned that, you know, we'll plan it now. So are we at the stage where we can give some guidance, how are we thinking about the business, or is it too early? So, we, I think it is something which is being actively considered by the board, and once the board takes a final decision on it, we'll be able to share that publicly. Okay, sure. Thank you so much. That's it for us. Thank you. Thank you. Participants, you may press star and one to ask questions. The next question is from the line of Jignesh Kamani from Nippon Mutual Fund. Please go ahead. Yeah. Hi, sir. Just on the issue realization, you mentioned that it increased around 8%, QoQ. We can't hear you. Can you kindly be a little louder, please? Yeah. You can hear me now? Yeah, yeah, yeah. Yeah. Just on the issue realization, you mentioned it increased around 8% QoQ because of the stabilization in the prices and, lower, you can say, the power cost. Now, with the capacity coming up for you and, you can say, industry around closer on 1,250 TPD, do you think there will be pressure on the ECU or current level is sustainable and you can say, as the volume growth in the industry is also happening demand-wise, it can gradually improve from current ECU? Will there be pressure on ECU going forward? So, it's, of course, difficult to predict, prices going forward. As we've shared, there has been significant capacity, addition in the industry in the last two years. The capacity, of the industry is now, more than 6 million tons per annum. So we do expect, that in the short term, you know, it will be range bound. The prices are, you know, on the lower side compared to earlier. But again, in the medium term, we expect with the robust, demand growth, that prices will move up. Understood. And second thing, on the in-house chlorine consumption, which you can say additional capacity coming up, what is our plan to increase the in-house chlorine consumption? And what is currently our percentage of the in-house chlorine, chlorine consumption? So along with our caustic soda expansion, we have also, we are expanding epichlorohydrin, so that will consume, you know, a healthy amount of chlorine as well. We have expanded aluminum chloride, also at our Bharuch site. That again, is the capacity ramp up is going on, and we are consuming chlorine over there. So, so along with captive consumption, for us, a very important part is our pipeline customers, and their, their growth journey and our growth journey has been in parallel over the last 20 years. So they are valued customers of ours and in a way are the backbone, you know, for us as well. So we look at it as captive consumption along with pipeline consumption. So the two put together, you know, we will be close to 55% chlorine consumption, and the remaining will be sold in the market. So, just to enter, purely our captive excluding pipeline, what is currently, and say, once all the capacity of the derivative will be up in place towards the end, then what will be the captive consumption can go to? Could you kindly repeat the question, please? So right now, what is our pure captive consumption excluding- Sir, there is an audio disturbance from your line. Okay. Could you please use your handset? Sure. So what is the pure captive consumption excluding pipeline? Because pipeline will carry, still carry the negative realization depending of the chlorine price movement. And once our epichlorohydrin and other derivative product will also commence in next two year and then above, what will be our in-house chlorine consumption, sir? In Kota, we have a PVC and stable bleaching powder as well. So in Kota, captive chlorine consumption is close to 30%, and in Bharuch, our captive chlorine consumption will be close to 20%. What it will increase once all the derivative capacity of Epichlorohydrin and other will be utilized? This is including those capacity additions. But in parallel, we are also evaluating other chlorine downstream opportunities, as was mentioned in the opening remarks. Once the board approves those, those will also be commissioned in due course. Understood. Thanks a lot. Thank you. Thank you. Participants, you may press star and one to ask questions. The next question is from the line of Parth Vasani, an individual investor. Please go ahead. Yeah, thank you for the opportunity. My first question is regarding the ECH. When are we expecting it to get commissioned, any tentative date? ECH. So, towards the end of this quarter, we will be ready with the trials for the plant, and early next quarter, the plant will be commissioned. Okay. And by when do we expect it to reach optimum? So typically, the process is for ECH, we have to get approvals from the customers. So after the plant is commissioned, that process of approvals from the customers will begin. So we expect that towards Q3 and into Q4 of this financial year, the plant will be running steadily, but the ramp up will still take some time. So a lot of the material benefit we expect will come in the next financial year. Okay. And one bookkeeping question that I have is, you consume coal in our power plant, so that comes under the power and fuel cost, or it goes into the raw material cost in the P&L? Power and fuel cost. Power and fuel cost contains the coal that we purchase for running our power plant, right? Yes. Okay. Thank you. Thank you. All the best. Thank you. Thank you, sir. The next question is from the line of Rohan Gupta from Nuvama. Please go ahead. Hi, sir, good evening, and thanks for the opportunity. Hi. Sir, first question is, further in chlorine downstream. So even the current plan which you have, you mentioned 55% max, including the pipeline, we will go in a captive consumption, 45% kind of number still has to be sold outside, which still remains a larger number, given that in chlorine, many more capacities are also coming. So over next 3 to 4 years, if we, do we have plans and, internal strategy to go to 100% kind of chlorine internal consumption? And if so, then what kind of investment you think that will be required? Apart from Epoxy, which other, product line you will be evaluating? So, to answer your question, yes, we are evaluating other chlorine downstream opportunities of various sizes and scales, so it would not be appropriate to comment on it until we have the approval from the board. But definitely, we are evaluating those actively, and directionally we will look to increase our captive chlorine consumption. It might not reach 100%, because we do, we do want to remain in the market as well, but it will be, you know, we will be increasing it continuously. Okay. Sir, last year, many of the industrial chemicals plant were facing disruption and under pressure because of China. So your chlorine consumption and was also would have also been impacted. How is the scenario now? Has the chlorine demand picked up? And, in the current ECH realization improvement, I think it is primarily driven by caustic soda only. So chlorine prices still remains negative or lower, and when you expect them to improve? Yeah, so, the chlorine prices, Rohan, continue to be negative. And, in terms of... See, what we are seeing is, that chlorine demand in the country over the next 2-3 years, we see it, improving, right? With lot of chemical facilities coming in downstream, we are also going to do a lot of downstream, and we are seeing a lot of chemical capacities coming in, which will be consuming more and more chlorine. So, I feel this margin should improve over the period will take time. So you're saying that chlorine still will remain negative, and ECH may remain under pressure unless we see chlorine going into positive or a sharp improvement in caustic prices? I'm not too sure why should ECH get impacted? ECU, ECU, I think. You're talking about ECU. Sorry, ECU. Sorry. Yeah, yeah. Sorry. Yeah. So yes, to that extent, ECU may have an impact, definitely. And that is the reason we have been saying that for next few quarters, we do see the ECUs to be suboptimal. But what is important is that on cost side, we have taken steps ourselves in terms of investing on improving cost and efficiency, and the energy costs are lower, which we expect to remain sustainable, and therefore, we should see reasonable margins. Okay. Actually, my next question is on our seed business. So this year we have heard that there has been a shortage of seed availability, especially in cotton, with the lower growing by the farmers. So but we have seen growth and even further margin expansion in our business. So, do we also face any challenges in terms of the lower availability of seed and some outlook on that business for the current year? Availability. Cotton seed market. Yeah. So see, the cotton seed, even on the demand side, there has been issues because the acreage of cotton seed, cotton planting has been lower this year. Significant fall in the acreage of the cotton seed. So, We understand that from some of the competitors which have mentioned that there is the non-availability of cotton seed in the market, though demand is strong. So that's what I just wanted to clarify from you, that because you have shown growth as well in seed business. So we have not, at least I can talk about our company, we have not encountered that. And what we understand from the industry is that the planting has been lower. So there has been no shortage. So that is one. And our performance has been good, primarily because of the product mix, and we are seeing good realizations for the seeds. Okay. That's it largely from my side. On ethanol business, you mentioned that it's because of your capability to procure the raw material, grain base, at a competitive pricing that is giving you a still positive margin or profitability in ethanol. Otherwise, ethanol would have been under pressure. So just wanted to know that, I mean, you say basically procurement area wide benefit you have within your nearby 30-40, 50 km, whatever. Is there or any other benefit or there is surplus availability of raw material in your area that is driving the profitability in ethanol? Because otherwise we are hearing that the current grain prices and all, ethanol is under pressure and not making money. See, Rohan, I'm not too sure about the competition, but as far as we are concerned, because maize-based ethanol prices also had gone up. We are procuring from, you know, in the most competitive or most efficient way, I would say. It's not competitive, it's more about procuring efficiently at the right time, and which is helping us with reasonable margins. It can be better, but they are reasonable. So can you give us a catchment area for maize or the procurement of grain for our refinery? So it will come from, let's say, MP, Bihar, partly UP. Oh, so all across. I mean, nothing like that within or maybe 30 kilometer, 40, 50 kilometer catchment area, nothing like that? No. Okay. Thank you, sir. Thank you. That's it from my side. Thank you. Thank you. We'll take the next question from the line of Vignesh Iyer from Sequent Investments. Please go ahead. Thank you for the opportunity, sir, and congratulations on great set of numbers. So my first question would be, sir, I wanted to know what is our total, you know, electricity that is, power and fuel that is consumed for the quarter coming from captive consumption, I mean, coming from captive power, sorry. Majority of our power is captive. Okay. I mean... Sorry, go ahead, please. Sorry, say again. Oh, yeah. So that includes the 120 MW that has been commissioned in June? I mean, would that 120 MW create a surplus-type situation in quarter two? No, it doesn't create a surplus. It's about balancing the various power sets we have. So once we, the 120 MW has been put up, once all the capacities that we are bringing in, once all of them are fully operational at 90% capacity utilization, so we will be fully integrated on power, right? But as of now, yes, we will see which set is more efficient and run the sets accordingly. So 120 being the most efficient set, will have the maximum utilization. And maybe another set, we have that capability because, you know, we have sets of 50 MW, 15 MW. We'll see whichever is efficient, we will reduce the load on that set. Okay. I mean, so this 120 MW, what is the nature of the power, I mean, the plant that is commissioned? So it is a thermal power plant. The raw material is fossil-based, so that is coal and lignite, and also biomass-based. So it's a combination of these fuels. ... Mm-hmm. Right. So also, if I get it right, I mean, say, in a non-rainy time, you'll probably prefer for a renewable power since it is, you know, more efficient and less cost compared to having to use coal, right? If I get it right, the idea is that. No, I'll just put it this way, that we already, we already have a contract to get 44 MW of renewable power. But when you look at it on a 24-hour basis, because you can't get renewable power 24 hours. So on an average, we get about 24, 25 MW of renewable power based on banking and getting it back. So we are already using renewable power. We are exploring, can we get more renewable power also? But the coal-based power plant also, especially 120, the new one, that price is also very competitive in terms of cost of production of power. Okay. Okay. Got it, got it. Right. Also, sir, coming on the PVC side of it, how has the price panned out in July, as compared to June? Actually- Okay, go ahead. So the current prices are around INR 84,000-INR 85,000. The international prices also have come off. So let's say in June they were around $980. Currently, they are about $910 per metric ton. And domestic prices are around INR 83,000, INR 84,000, INR 85,000. Okay. And all, all this movement from May to June and June to July is, has been primarily because of trade only, right? Yes. Oh, okay. Okay. Right, sir. That's all from my side, and all the best. Thank you! Thank you. You may press star and one to ask questions. The next question is from the line of Dipika, an individual investor. Please go ahead. Hello? Yes, ma'am. Hi. Please proceed. Hi. Good afternoon, sir. So my question is relating to the power cost. Would you be able to quantify what are the cost savings due to power in the chemicals business this quarter? So it's difficult to give you that number right away. Maybe you can contact us separately through investor relations, and we will give you the details. Okay. Okay. And what would be the outlook for the chemicals business for the remaining part of the year? So, like we've shared earlier as well, in the last year or so, the chemicals industry at an overall level has been under pressure. Yeah. But now we are seeing that there should be a bottoming out, so we expect it to be, you know, steady or gradually improve in the coming quarters. Okay. And do we expect exports to open, or we have no comments on that for sugar? For sugar right now, there are extensive talks taking place with the government for allowing exports, because as said in the opening remarks, last year, our sugar stock on thirtieth of September was 5 million tons, and this year it's going to be between 8 and 9 million tons. So we are trying to push for exports, and our constant dialogue is on with the government, the old government and the new government. Okay. Thank you. Thank you. Thank you, sir. Participants who wish to ask questions may press star and one now. The next question is from the line of Aditya Sen from Robo Capital. Please go ahead. Hi. Thank you for the opportunity. Sir, until when do we expect to commercially commence the hydrogen peroxide and the ECH plant? And, what would be the optimum revenue potential from both the plants? Yeah. So, as we mentioned, the trials for hydrogen peroxide plant have begun, and we expect the hydrogen peroxide plant to commission in this quarter itself, which is Q2. And for epi, epichlorohydrin, we should commission the trials in this quarter, which is Q2, and commercial production should start in the Q3. Maybe early Q3, we should start commercial production. Okay. And, what would be the revenue potential for both the plants? See, for epichlorohydrin, as I mentioned earlier, epichlorohydrin, so it takes time to stabilize and to get, you know, the confirmations from the customers. We may not see very significant revenue coming or significant contribution to bottom line coming in this financial year, and most of it will happen in the next financial year. Hydrogen peroxide, my sense is, if you look at second half of the year, we should have close to about 40%-50% capacity utilization. Okay. Okay, thank you for that. And, regarding that 850 TPD caustic capacity that we commissioned in May 24, 2024, so, that led to a dip in the overall capacity utilization. So for the entire year, FY 25, what capacity utilization do we see in this segment? So, see, the point is, as you, you've seen, the overall production has gone up, given the additional... It'll all depend how much capacity we utilize, depending on market conditions and the new capacities coming in. Okay. So we do expect that the additional capacity that has come, that is about 850 TPD, for, let's say, second half of the year, we should reach close to about 50% or 40%-50% there as well. ... Thank you, sir. So the participant has left the queue. Anyone who wishes to ask questions, may press Star and One on their touchtone phone. The next question is from the line of Shantanu Naik from HDFC. Please go ahead. Hi, sir. Congrats on good numbers. I wanted to ask, what would be the ECU pricing for this quarter? Sorry to interrupt. Your audio is not clear. Hello? Sorry. Yes, sir. Please proceed. Hi, sir. Congrats on good numbers. So I wanted to ask, what would be the ECU pricing for this quarter? ECU, ECU. So it's always hard to predict the pricing going forward. Current ECUs are in the INR 27,000-INR 28,000 rupee range, and we expect it to be range bound or improve gradually. Okay. Second question is, what would be the current contribution of chlorine derivatives in our revenue? So if there would not be any general number which applies to all. It is a case-to-case basis, so anytime we evaluate any product, we look at it giving a healthy return, and then we move forward with those decisions. Okay. But still, any ballpark figure in your mind? So as I said, it will depend, product to product, so it's hard to give a number, like that in general for chlorine downstream. Okay. And, I just wanted to ask, as, I have been looking at the margins for, SFS, verticals, so why they are on decline in sequentially? Any specific reasons for them? That is because of seasonality. And I don't think there is a decline, frankly. But sequentially, if you see, March is not the season or March quarter is not the season for that business, so that's not representative either. Naturally, the margins are not declined, for that business, sequentially. Hmm. Okay. Okay, but if we see, previous year were 11, previous quarter were 11, before that, it was 14. So, I mean, I was just confused on that, so I asked. No, I think these are more specific questions, so maybe we can... We have to go vertical by vertical. As in, you can connect with our Investor Relations department, and they will give you the details. Sure, sure. Thank you. That's from my side. Thank you. Thank you. Thank you. You may press Star and One to ask questions. Participants who wish to ask questions may press Star and One now. The next question is from the line of Aditya Singh from Robo Capital. Please go ahead. Hi, thanks again. I got dropped accidentally. So I was asking that because of the addition of 850 TPD caustic capacity, the total capacity utilization got down. So for the full year FY25, where do we see the capacity utilization for this segment, caustic soda? So, as I mentioned, that, in the second half of the year, the expanded capacity, we should see a 40%-50% capacity utilization. The existing capacity, which is close to about 1,800 tons per day, we should be utilizing about 80%-85%. That's all right. Thank you. That helps. Thank you. 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. Over to you, sir. Thank you. Ladies and gentlemen, thank you very much for your participation in our earnings conference call. We continue to be guided by our philosophy of growing through capacity, capability, technology, new products and value addition. Further, with our commitment towards the environment and society, we keep sustainability integrated into our business practices. We strive to create long-lasting value for our stakeholders, along with delivering better earnings and growth. Thank you very much once again for participating in our conference call today. Thank you. Thank you, members of the management. Ladies and gentlemen, on behalf of DCM Shriram Limited, that concludes this conference. We thank you for joining us, and you may now disconnect your lines. Thank you.