Good evening, ladies and gentlemen, and welcome to the Gujarat Narmada Valley Fertilizers and Chemicals Limited Q3 FY26 earnings conference call. This conference is being hosted by Anurag Services LLP on behalf of GNFC Limited. From the management, today we have on the call Mr. D. V. Parikh, Executive Director and CFO; Mr. Nitin Patel, Executive Director; Mr. P. K. Purohit, Executive Director; Mr. Rajesh Pillai, Company Secretary and Compliance Officer; and other senior members from the management. 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 this conference call, please signal an operator by pressing star, then zero on your touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. D. V. Parikh, Executive Director and CFO, GNFC Limited. Thank you, and over to you, sir. Thank you. Thank you, Anurag Services, for holding the call, and good afternoon to everybody, all the participants on the call. I'm joined, like it is already informed, by my colleague, but there are two other colleagues from marketing. One is Mr. Tejas Shah, who is from marketing industrial product, and the second is Mr. V. B. Bhalara, who is from fertilizer marketing side. So any questions on the marketing side, they will take up the questions. I'll give you the broad overview of the business conditions during the quarter three. As far as fertilizer segment business is concerned, it has been stable. There is slight improvement in the NBS rates, so complex fertilizer did well. Urea also did well in terms of the volume. On the chemical side, it did better on the volume front, which is offset by the pricing pressure in case of most products except TDI during the quarter three. As far as global and geopolitical issues are concerned, the uncertainty on methanol still continues, which is the main feed into acetic acid. There are price uncertainties and volatilities, including the part of availability, which is there in case of methanol. Going on to the segment performance, the losses in case of fertilizer have come down. This is mainly because of the unfavorable subsidy freight rates, which are booked last quarter, which is not there during the current quarter, aside from the volume of urea. Chemical, more or less, barring for around INR 2 crore difference in terms of the segment is same. Others, there is a marginal change of INR 3 crore. So if we account for the kind of other income, which is normally received during quarter two, which is showing up under the other income, the operational income has improved, mainly driven by the volumes in chemical as well as fertilizer. During the last board meeting, there are certain capacity-building CapEx also, which are approved. One is the capacity building for the fifth boiler, which is at the Bharuch. Expected CapEx is roughly to the tune of INR 480 crore-INR 500 crore. Current is the estimate. Once we appoint the PMC and detailed exercises done, we'll come to know about the final value of the CapEx on this. Another is to save on the power cost. There is another CapEx, which is done for the extra line from DGVCL, GETCO, which will enable to valorize green power as well as provide stability to the existing operations. On the balance sheet side, there are no major changes, and working capital has been quite under control because of the subsidy flow. The subsidy outstanding as of the quarter is roughly INR 302 crore. In terms of other assets and liabilities, there are no other major changes. On the project side, all the four projects are on stream except that of CCPP, which is expected to commission sometime by end March or early April, which is expected to give a net inflow in terms of the contribution. At gross level, it is around INR 110 crore. At net level, it is going to generate around INR 82 crore net of its relevant direct cost. The rest of the project, like Ammonium Nitrate Melt, additional capacity for ammonia, as well as Weak Nitric Acid are on stream. There is a slight delay in case of weak nitric acid, which is recoupable because the critical path activities are not affected. So this is the update on all the projects taken together of INR 2,800 crore worth of CapEx. As far as projects under consideration are concerned, there are two projects which are there in the public domain, and the examination of which is expected to get completed either in the next quarter or subsequent quarter, after which we will decide about the further progress direction on those CapEx. So the rest of the things, we have already shared in the public domain in terms of investor presentation, and results are already on the exchange aside from the press release. So with this, I sum up my introductory remarks and now hand the call over back to the organizer. 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 their touch-tone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants, you are requested to use 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 a question. We have the first question from the line of Nirav Jimudia from Anvil Wealth. Please go ahead. Yes, sir. Thanks for the opportunity. Good afternoon to everyone. So I have a few questions to ask. So first is on the TDI. When we see the global markets, I think we have seen price improvements in China also and the European Union side. Predominantly, the Europe, Covestro, BASF, everyone have raised the prices. So I just wanted to understand from you that when we see our quarterly presentation, our realization in Q3 was close to around INR 168. So if you can share your thoughts in terms of when can we align with the price increases taken by the global players here in India? And also, if you can help us explain, as there is an anti-dumping duty also in place anywhere between $200-$300 depending upon the country of origin, so are we getting any benefit of those anti-dumping duties in terms of the price realizations? That's it. These are the two questions? No, no, sir. There are plenty, but I thought I should first start with the TDI part. Okay. So on the pricing part, you are talking about catching up with the pricing, which is elsewhere outside India. So all the pricing is done on an import parity basis based on the indexes available to us because that's the way to keep transparency in the pricing, and that's the way to field questions from any customer. So this is how GNFC operates. It takes its price, calculates the import parity price, and prices the products. At times, it is at premium. At times, it is at discount. For the premium and discount during the quarter, our colleague, Mr. Tejas, will respond on that. The second question is on the anti-dumping duty. Anti-dumping duty, just yesterday, we came to know is extended for another five years on the TDI. So anti-dumping duty is also taken into consideration for the purpose of arriving at an import parity. More, I will request Tejasbhai to respond on this. Hello. I'm Tejas. You are right. You have seen the data from January onwards, the prices are in improving trend on a global level. Yes, you are right. We have also improved our prices from January onwards. For Q3 is concerned, the prices were suppressed just because of the weak demand, global weak demand. And as Mr. D. V. Parikh said, we are keeping our prices based on the import parity and whatever the TDI receives at Indian ports. Correct. Sir, if you can help us understand, what will be the market of TDI here in India? And we have capacity of close to around 66,000-67,000 tons, put together both the lines. So if you can share in terms of the imports which are coming to India. TDI, our market share is around 60%, and the rest is import. If you see the total TDI consumption in foam, it is around 100,000 tons. 10,000-15,000 is going into the system houses, and 100,000 is flexible foam that is produced. 60,000 we are selling in the Indian market. As far as the last year, 2024, 2025 is concerned, we have the hedge plant shut down for the four months. So in 2024 to 2025, we sold the TDI around 50,500 metric tons in the whole year. At present, we are going ahead, and at present, our sales up to Q3 is 30,000. Correct. Correct. Sir, also, if you can share your thoughts with respect to this trade deal which has happened with FTA, with E.U., and with U.S., is it possible for us to do some exports of TDI into those markets where now we can be some competitive? Because now we have seen even Chinese appreciated by 8%-9%. So that could enable us to have some pricing advantage into those geographies. First, we have to see what are the advantages we are getting because, as I mentioned, the Indian market is growing at the 10% CAGR. Our total production is 65,000-70,000 tons. Our production, it will be very easily absorbed in the Indian market. Yes, we have to see the geographical changes because in the international market, we have to compete on a global level for the pricing front. Correct. Sir, also, if you can share, are there any of our products which were in the export tax rebate where China has removed close to around export tax rebate on around 200, 250 products? So are there any products of ours which qualify under that list? Our acetic acid is falling under that. So we hope the acetic acid prices will be improved in the Indian market. Correct. And even methanol is removed from that list, right, if I'm not wrong? Yes, but we are not manufacturing methanol at present. Correct. Correct. Correct. Sir, second question is on if you can share the production of ammonia in Q3 both through gas and oil route. I am Nitin Patel. The production of ammonia in Q3 was 175,000 roughly. The breakup is around 60% is gas and rest oil-based. Okay. And sir, also, if you can share the production numbers for WNA, CNA, AN Melt, and Formic Acid. WNA is around 1 lakh. 76,000 ammonia. 2? 1,750. Ammonia. Okay. Roughly. Roughly ballpark. WNA both plants put together is 77,000 and 41,000, one and two respectively. Okay. CNA was? Sorry. WNA 77 and 33 respectively. CNA is around 8,401, 8,502, 9,603, and 12,000. Total 39,000. Total around 38,000-39,000. Correct. And for AN Melt and Formic Acid, if you can help? Yes. Formic acid is 9,300. And AN melt is 116,000 roughly. Sorry, how much, sir? 1,16,000. For nine months, right? For nine months. Nirav, I just want to correct the TDI sales figure up to December. It is 47,610. Okay. So possibly in Q3, we would have produced close to around 32,000 tons, if I'm not wrong. Not in Q3. Q3, we produced 16,000 metric tons of TDI. Got it, sir. Got it. Sir, your thoughts on, A, the benefits on the operating cost? Last time, you mentioned that Kearney was appointed, and they were about to guide us in terms of the savings in the operating cost. So when can we start seeing the benefits of those measures being told by them to implement? Okay. Kearney has initiated its engagement since last October. So far, they have worked on a few proposals where there are savings, but these savings are going to happen once the negotiation part mainly is completed. There are part savings which have already happened, but unless we sign off those contracts with the supplier, this saving is going to get reflected only thereafter. Out of the total value which Kearney has represented at board level as well to us, the total is between INR 260-300 crore. Certain part of that has been locked. The clear locking is in respect of the renewable power purchase agreement, which is to the tune of roughly INR 5-7 crore. The rest is under the majority of other savings are under contracting, which are yet to be signed off. We will be in a position to definitely say about annual savings once this contract is signed off. Correct. But safe to assume that whenever everything is in place, we could save close to around INR 250 crore-INR 300 crore, what you mentioned? No, that is the claim they are making. Okay. Okay. We are yet to sign off as it progresses. Okay. Okay. Correct. Any management consultant will make a claim of a certain amount. Some of the initiatives do materialize, and some do not. Finally, management will certify how much is the actual saving which is flowing into the books of account. Correct. Sir, last two questions before I again join back. So one on the fixed cost revision. You mentioned that it should be expected by June 2026. So has the exercise completed, and it's now only upon the ministry to give the final decision on the same, or are further rounds of meetings to be held up to decide on the same? As far as industry and company is concerned, there are no further rounds of meetings which are happening. This is a decision which is within the government, and the respective departments have to take appropriate positions on that. Correct. Correct. Sir, last question is on any shutdowns we have planned for quarter four or, let's say, for FY27, any of our products which may be going for a maintenance shutdown in Q4 or, let's say, anything which is coming up in next financial year? As far as I, Nitin Patel, as far as Q4 is concerned, no shutdown is planned. Next major annual shutdown is being planned in 2027. That would be in Q2. You're talking about financial year. Financial year 2027, right, or calendar? Correct. April 27th. It should be in the next year itself. Got it, sir. Got it. Thank you so much, sir. I'll join back in the Q4 for other questions. Thank you. A reminder to all the participants, you may press star and one to ask a question. We have the next follow-up question from the line of Nirav Jimudia from Anvil Wealth. Please go ahead. Yes, sir. Thanks for the opportunity again. Sir, one question on the downstreams of nitric acid. So we have seen that many of the players have put up their nitric acid plants like Deepak Nitrite. Even Deepak Fertilisers is also expanding. Chambal is also coming up with their own WNA CNA plant. So your thoughts on, A, with the ammonia prices going up, has there been a commensurate increase in the prices of nitric acid and whether we are thinking in going into the further downstream of nitric acid like calcium nitrite or potassium nitrite? Okay. Our nitric acid three, which is the investment which is expected to come by June 27, has a clear downstream under AN melt. So a substantial portion of that is going to be consumed under melt. And there would be some portion available for merchant sale to the tune of roughly 70,000 out of 203,000 metric tons per annum. So that will be sold in the market. And we have planned for the commercial sale of that and not the further downstream of weak nitric acid for this 70,000 metric tons as of now. Okay. Correct. Sir, second question is on the CapEx part. Last quarter, you explained that out of INR 2,800 crore of CapEx split between all the four CapExes which are currently undergoing. If you can help us understand how much we have spent till December 2025 among each of them, that would be very helpful. project-wise detail, we will provide to the Company Secretary. He will share with you offline if it is okay. Fine. Fine. No worries, sir. No worries. But sir, totally, if you can share how much we have spent till December, that also would help, sir. Around INR 1,000 crore. 1,000 crore is spent. Okay. Okay. Sir, last question is on the boiler part. You mentioned that that has now been taken up as a project with INR 480 crore-INR 500 crore of capital investment. So is this a coal-based boiler which would be replacing some of our existing feeds, or would it help for further the downstream projects which we are currently undergoing, or any sort of annual savings which it could accrue to us? Okay. Yes. This is going to be a coal-fired boiler. There will be varying kind of calorific value of coals that can be used. The specifications will be designed by the PMC who is going to be appointed. Obviously, because currently, we have a boiler called a pulverized boiler, and we are going with a boiler called CFBC boiler which has more efficiency. If our current boiler is operating between 1%-75%, this boiler is expected to have an efficiency of around 83%. Obviously, there is a business case for it, but we are installing this boiler for the purpose of primarily reliability aside from the financial saving which is coming as a bonus part to it. Correct. So when this would be coming to the operations, when it would be installed, and the benefits should start accruing to us? Okay. That is something we will let you know once the PMC is appointed and detail engineering exercise is done. Perfect. Perfect. Sir, last in terms of our ammonia requirement, so we require ammonia for most of our Q4. May I give your answer to your question? The payments part which you asked on the existing CapEx is INR 1,000 crore, okay? But the actual commitment is already done up to INR 2,600 crore. It is like in the nature of giving contracts. Contracts are done. The payments are to the tune of INR 1,000 crore. Perfect. Perfect. Okay. We have, let's say, LSTK contract out of INR 1,420 crore. INR 1,100 crore, an odd amount is already with an LSTK contractor. INR 357 crore is for AN melt with Toyo. Around INR 330 crore worth of CapEx is for AMUGL, which is new ammonia loop. And for the coal-based, we are going to end a little below INR 600 crore of CapEx. The approved CapEx is INR 613 crore. 13 crore. Correct. Correct. Correct. Sir, on the ammonia part, the ammonia is required in various products of our product basket. So is the production through oil route sufficient enough currently to meet the requirement, or do we need to purchase some ammonia also from the outside market? See, we are expanding the ammonia production by ammonia make-up loop, which would be to the tune of 50,000 tons per annum. Correct. There would be a requirement of ammonia for downstream new projects. So with capacity increase, around 35,000-40,000, we will have to buy from the market. And with both buying from the market, 35,000-40,000, and ammonia capacity expansion, our ammonia requirement for all downstream projects would be fulfilled. Correct. Correct. So currently, also, we may be buying some ammonia from the market. Currently, depending upon the need, I will say the volume is very less. Correct. Correct. Correct. And sir, just a last clarification, for Ethyl Acetate, we also require Ethanol as one of the raw materials? Yes. Ethanol is one of the raw materials. Correct. Got it, sir. Thank you so much, and wish you all the best. Thank you. A reminder to all the participants, you may press star and one to ask a question. We have the next question from the line of Atharva Bhide from ICICI Prudential Mutual Fund. Please go ahead. Yeah. Thank you for the opportunity, sir. Just two questions. One on volumes. One, you explained that, of course, TDI, we can operate at full capacity. So that volume will be there. At an aggregate level, how much kind of volume growth we should expect in the coming year, that is question number one. And secondly, as the previous participant also mentioned, and you also mentioned, on two of our key products, TDI and acetic acid, there is some kind of positive movement on global prices. So on domestic prices, have they shown similar movement already? One, you mentioned since January, it has been. But on acetic acid, has that flown through, or it is not yet visible in the domestic market? That is the matter. Thanks. Price for volume and price. I will brief you about the pricing part of the acetic acid and TDI. Yes, you are right. From January onwards, in both the products, there is a positive movement as far as the pricing is concerned, along with the global market. On the volume part, there is expected volume increase from TDI because the kind of hiccup which we have seen this year, it is expected to improve the reliability going forward. The focus of management is not only to realize the 50,000 capacity there, but even the announcement for which the SLAC is already built up. From 2027 onwards, the volume increase is already in the public domain for both weak nitric acid and ammonium nitrate melt. There are going to be cost advantages to improve the profitability because of two things. One is the capacity-building CapEx other than the growth CapEx which we briefed about. Secondly, is the exercise which is being undertaken for the existing operations transformation. Now, how much of that is realized, we will keep on briefing during quarterly calls. Thank you. A reminder to all the participants, you may press star and one to ask a question. As there are no further questions from the participants, that concludes the question-and-answer session. I now hand the conference over to Mr. D.V. Parikh, Executive Director and CFO, GNFC Limited, for the closing comments. Thank you, and over to you, sir. No worries. I'll request our Company Secretary, Rajesh Pillai, to conclude the session. Thank you, sir. I would like to thank all the participants and the senior executives of the company for joining this call today. I would also express my sincere gratitude to the moderator as well as Anurag Services LLP for coordinating this conference. Thank you. Thank you, management members. On behalf of GNFC Limited, that concludes this conference. Thank you for joining with us today, and you may now disconnect your line. Thank you.