Ladies and gentlemen, good day and welcome to the Privi Speciality Chemicals Limited's Q4 and FY 2026 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 touch-tone phone. From the management, we have with us Mr. Mahesh Babani, Chairman and Managing Director, Mr. R. S. Rajan, President, Mr. Sanjeev Patil, Executive Vice President, Strategy and Biotechnology, Mr. Narayan S. Iyer, Chief Financial Officer, Ms. Ashwini Shah, Company Secretary and Compliance Officer. Before we begin the conference call, I would now like to mention that some of the statements made during the course of today's call may contain forward-looking statements about the company, which are based on the beliefs, opinions, and expectations of the company as on the date of this call. These statements are not the guarantees of future performance and involve risks and uncertainties that are difficult to predict. I now hand the conference over to Mr. Mahesh Babani, Chairman and Managing Director of Privi Speciality Chemicals. Thank you, and over to you, sir. Good evening to everyone, and thank you for joining us today. I would take this opportunity to take you beyond our strong FY 2026 performance. I would like to inform you about Privi's position today and strength of the foundation that we've built for the future. Over the past years, we have strategically transformed Privi into a more resilient, diversified, and forward-looking specialty aroma chemical platform. Today, our company is far better positioned than ever before, supported by our robust diversified portfolio, deep customer relationships, strong R&D and innovation, and notable global footprint that allow us to navigate external uncertainty and with confidence. With that, I hand over my team, Rajan, Narayan, and Sanjeev, and Ashwini to answer all the investor questions. Thank you. Sanjeev. Thank you. This is Sanjeev here. Good evening to all. I believe that you all have had a chance to go through our financial results and investor presentation. I will briefly take you through the operational performance for the quarter ended March 26 and the entire year as well. The industry tailwinds remain firmly intact. Demand for fragrance and flavor ingredients continue to grow, driven by rising consumption, trend for premium products, and increasing focus on wellness and personal care. In addition, global supply chain are undergoing a structural shift with customers increasingly looking for reliable, high quality, and compliant partners, a space where your company Privi is strongly positioned. Operationally, the quarter reflects steady execution across all key priorities. We continue to see consistent traction across our core aroma chemical portfolio, supported by steady demand from global customers. At the same time, our efforts towards increasing contribution from downstream and value-added products are progressing well, and this is gradually reflected in the overall mix. From a manufacturing standpoint, plant utilizations remain healthy across major product lines. Our teams continue to focus on operational excellence through process optimization, yield improvement, energy efficiency initiatives, and debottlenecking programs across the plants. These initiatives have helped us improve throughput while maintaining strong cost discipline. On CapEx front, we are on track to complete the first phase of our CapEx expansion by 28th June 2026. Total installed capacity will increase to 54,000 metric tons per annum after this phase of expansion. We are now entering a calibrated ramp-up phase and expect these additional capacities to be commissioned progressively over the coming quarters in line with strong demand visibility across key products. In parallel, phase II of our multi-specialty aroma chemicals project is progressing as planned. These investments position us well to drive the next leg of growth with phase and meaningful contribution to both revenues and profitability ahead. The joint venture with Prigiv. In quarter four, Prigiv turned the corner and reported profits for the first time. Further, additional CapEx of INR 50 crore is being implemented based on the equity infusion by Privi and Givaudan in the ratio of 51 and 49%. Going forward, the joint venture will gain further traction on growth and robust profitability. Overall, our focus remains on driving volume growth in core products, improving product mix through higher share of value-added products, and maintaining cost discipline and operational efficiency. As we enter the next phase of growth, we remain focused on disciplined execution, strengthening our product mix, and driving operational excellence. We believe this approach will allow us to deliver consistent, profitable growth while continuing to create long-term value for all our stakeholders. With that, I hand over to our CFO, Mr. Narayan Iyer, for the financial details of the company. Good evening to all, and thank you, Sanjeev, and a warm welcome to all of you. We are pleased to report strong financial performance for the financial year 2025- 2026, delivered in a dynamic and evolving macro environment. Our performance reflects strong execution, disciplined cost management, and the continued strength of our diversified product portfolio. Our performance for the quarter and the financial year 2025, 2026 highlights our ability to protect profitability across cycles and reinforces our confidence in the structural strength of our operations and the organization. Let me give you a glimpse on the key highlights for the year 2025- 2026. We have reported strong growth despite subdued market. A 22% revenue growth on a year-on-year basis was what we have achieved during 2025/ 2026. We have delivered a 25%+ margins consistently across all quarters and for the financial year 2025- 2026 on the EBITDA numbers. We expect to sustain a 20% + EBITDA margins going forward, which is driven by operational efficiencies, improved product mix, and increased capacities, which is coming over in the next few quarters. Our JV with Prigiv is also shaping up very well, we expect meaningful contribution in the coming years. The good news is that Prigiv has earned profits in Q4 on its own, we expect to maintain and improve on the same going forward. Additionally, during the year, we continued to make progress on the proposed merger of Privi Speciality Chemicals Limited, Privi Fine Sciences Private Limited, and Privi Biotechnologies Private Limited with the parent company. This consolidation is aimed at simplifying the group structure, enhancing operational synergies, improving scalability, and creating a more integrated platform for future growth. We are also pleased to share that the company has recently received an observation letter with no objection from both the stock exchanges, namely BSE and NSE, marking an important milestone in the merger process. We shall now go ahead filing with the NCLT the scheme, and we expect the approval final coming from NCLT during the financial year 2026-2027. Coming now to the financial key highlights. I will touch base on the quarter four results first and then go to the year at large. During the quarter four, the total income achieved by the company was INR 725.70 crores with a growth of 15.29% on a year-on-year basis. EBITDA achieved during the said period was INR 184.41 crores, registering a growth of 25.09% on the previous year. EBITDA margins achieved was 25.41% for the quarter, and we expect the company to maintain such similar margins going forward. Profit after tax for the quarter was a strong INR 95.66 crores as against INR 63.57 crores achieved during quarter four of 2024- 2025. Coming to the annual numbers for the financial year 2025- 2026. The overall income achieved by our company was INR 2,582.92 crores as against INR 2,121.84 crores achieved last year, indicating a growth of 21.73%. EBITDA achieved during the year was INR 665.45 crores as against INR 474.15 crores in the previous year, indicating an increase of 40.35%. EBITDA margins achieved was 25.76% for the year 2025- 2026, as against previous year's 22.35%. Profit after tax for the period was INR 327.54 crores as against INR 187 crores in the previous year, indicating an astounding increase of 75.16%. During the year, the total volume of sales achieved was about 42,389 metric tons, which indicates an increase of 6.5% over previous year's volumes achieved. My dear friends and shareholders, the overall growth of our company was driven primarily by volume growth, price increase, and an improved product mix. This growth was supported by sustained demand across key end user industries and an increasing traction in our specialty and value-added product segments. While input costs remained relatively stable during the year, we continued to focus on operational efficiencies, cost optimization initiatives, and improved capacity utilization, which supported the margins. We have been able to bring down the manufacturing and other administrative expenses, which has enabled to improve the EBITDA margins further during the year. Now, coming to the balance sheet numbers. As a company, we continue to maintain a very prudent capital structure. I'm happy to inform that due to the excellent management and constant monitoring and focus, we have been able to bring down our overall working capital cycle to 117 days during the year 2025-2026. Our net debt as of March 26 stood at INR 876 crores. This is of course, net of cash and surplus money deployed in mutual funds with a net debt- to- EBITDA ratio of 1.33%, reflecting our focus on maintaining financial flexibility while supporting growth investments. Our net debt- to- equity ratio was a very healthy 0.62%, reflecting good generation of profits. As you may have noticed, we continue to improve our ROE and ROCE, which during the year we achieved a number of 22.05% and 22.42% respectively, thereby reaffirming our visionary Chairman's vision that going forward, the company's ROE and ROCE is poised to be in excess of 20%. During the year, we generated healthy cash operating cash flows of INR 550 crores, maintaining a comfortable liquidity position. Our capital allocation, our focus remains on investing in high return growth opportunities, particularly in expanding our speciality chemicals portfolio, enhancing the backward integration and improving operation efficiencies. In line with our commitment to shareholder returns, the board has recommended a dividend of INR 10 per share for financial year 2025- 2026, with a dividend payout of 100% of the face value of the share, which reflects our confidence in the business outlook and cash flow generation going forward. Looking ahead, we remain confident in our ability to deliver sustainable growth. Our strong balance sheet, robust cash flows, and disciplined capital allocation strategy position us well to capitalize on emerging opportunities while navigating external uncertainties. With the planned capacity expansion of existing products and the introduction of new specialty products, we have established a clear roadmap and are on track to achieve the vision, the foundation of which was laid by our visionary Chairman, Mr. Mahesh Babani, of the INR 5,000 crores of revenue and INR 1,000 crore plus in the EBITDA numbers over the next three to four years, which represents a growth of about 2x. With this, I would like to conclude the presentation as of now and open the floor for questions and answers. Thank you. Over to you, the moderator. 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 withdraw 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 Sumant Kumar from Motilal Oswal. Please go ahead. Yes, sir. My question regarding the gross margin. We have seen a significant dip in gross margin sequentially. Any specific reason for that? Yeah. Sumant, as you know, our business is so structured, that 70% of our, you know, revenues come from export, and most of that are through contracts. You know, in the fourth quarter, and if you see historically also, that's why there is an overlap of, you know, sometimes the raw material contract getting into the fourth quarter. That is first quarter for the calendar year. Because of this overlap, sometimes you have this kind of situation. As we always say that you should judge maybe on an annualized basis. This trend you will find in the last few years also. If you look at the last few years also, you'll find a similar trend because the way the prices move for the annual contracts for both raw material and finished goods, such an overlap and distortion can happen. That's only part of the thing, and you should look maybe always on annualized basis. Regarding CapEx, in Q3 FY 2026, you have given all the timeline of CapEx. That CapEx plan intact or any changes? It is intact. Thank you so much, sir. It is intact. We are confident of showing a growth of 20% in the coming year, and we are hopeful we'll also be able to maintain similar EBITDA margins. Does that answer your question, Mr. Sumant Kumar? Hello? Thank you. The next question is from the line of Rohit Sinha from Sunidhi Securities. Please go ahead. Thank you for taking my question and congratulations for good set of numbers, sir. Thank you. First question is, first question, sir, on the guidance side, as we are looking at a 20% kind of growth and 24% kind of margin or similar kind of margin, although we have got the approval of the merger of our Privi Fine Sciences and other business, does we take into account this number also in on this 20% growth, or it would be purely from the existing business only? Rohit, thank you. The numbers are, you know, appreciated. The 20% growth that Mr. Mahesh Babani talked about is on the standalone basis as it is today. As and when the scheme of merger happens, then of course we'll be consolidating it at that time. Got it. Got it. Secondly on, just wanted to know how we should see the engagement with the MNCs, during this tough time of war, and how the spot customers behave during this time, and how we are looking at, going forward in the coming quarters? Spot customers, you know, we have to I mean, these are all very delicate questions, you know. This also recorded. We have very healthy relationship and very transparent relationship with our customers. They are also able to see that the changes which are happening, I mean, these are changes which are, you know, once in a lifetime kind of impact that is there. Because of our transparency and trust, you know, we are able to pass on, and it is accepted from our customers. I don't see any reason that we will not be able to pass on the price increase. We are confident that we'll be able to pass on the price increase. Because you see, I would just tell you, I'm not saying I'm the most competitive, but I am definitely in the league, and people do have confidence by paying 1% or 2% higher, Privi is a better supplier. We have that confidence that people will pay up. We do have customer relationship so strong that when we sell a basket, you know, we make sure that the customer has a happy ending and a good smile on his face. We do somewhere, we have extra margins, we do give something cheaper. As a basket, we are keeping our customers happy. That's our strength. You know, we have 75 products, 15 more in the pipeline, 10 more under development. 100 products from one doorstep is a great strength to have. Great. Great. On the yield side, as we have invested around INR 50 crore for the CapEx, is it towards more towards the revenue improvement or it would be on the margin improvement? I mean, anything on the backward integration kind of angle? There's no backward integration here. The thing is, we are bringing in new additional products and additional revenues. In fact, this year we expect almost INR 130 crores of sales instead of INR 55 last year. We hope we are working in a bigger direction to see at least in next three, four years, we should be at least INR 300 crores. Revenue -revenue and, with decent margins obviously. Great, sir. Great. One last question from my side. As our working capital days now stands at around 117 days, do we see any increase in this number due to the current situation or it will more or less remain in the similar level? Even if it increase, it won't be more than 3%-4% because of, you know, we have to be, when you increase prices, person makes late payments. I mean, even if it increase, it won't increase more than 5% or something like that. 3%-5%. We are confident we will be able to manage this situation. We always want to see a happy customer. A smile on his face keeps our day and keeps our balance sheet very alive. Got it. Got it, sir. That's it from my side, sir. Thank you and best of luck. Thank you. Thank you. Thank you, Rohit. Thank you. The next question is on the line of Rohit Nagraj from 360 ONE Capital. Please go ahead. Thanks for the opportunity and congrats on a very strong set of numbers. First question is on the raw material sourcing side. If you could give us a flavor as to how are we protected in terms of inventory, of the current sourcing situation? On the entire aggregate raw material basket, what is the kind of cost inflation that we have observed over the last couple of months? Thank you. Sure. There are two categories of raw material we can say. One is the renewable raw material for which we have annual contracts. Based on those annual contracts, typically we hold about one and a half to two months of inventory. Then there is always inventory in transit because most of these are shipped from Europe or from U.S. You have another one month of inventory there. We are covered for almost a quarter for regular raw material which are contracted. The other raw materials, you know, we are covered for about thee months in stock and another two to three months in pipeline. That's the way we plan our raw materials. For non-binding based products, whenever we get into annual contracts, that typically six-monthly contract. We keep and maintain visibility for those many months, you know. That's the way we function and that's how we try and, you know, mitigate the risk of the volatile situation what we are facing right now. We position our contracts as per the raw materials in hand. We don't take too many contracts. If we reduce our market share with some contracted customers if we see contracts are overburdened. We maintain a fine balance. We keep our eyes on the ball to maintain the fine balance between customer relationship and sales. Sure, sir. Got that. Second question in terms of the FY 2026 top line growth of 22%, if you could give us a broader understanding how much was driven through volumes, pricing and the product mix. That will be very helpful. Thank you. Rohit has indicated. Yeah, sure. Six point- It is about 6.5% on account of volume growth, and the balance is on account of the product mix and about 8% odd increase in the prices, in fact, you know. Sure. Just to clarify, was there any material benefit from the Forex gains during last year? Definitely because we are a net exporter per se, there is some amount of Forex gain that has happened in 2025- 2026. I think, we are reported as close to about INR 14 crores or so. Sure. Got that. Which falls under other income. Yeah. Thank you. Thank you. Got it. Got it. Thank you. Yeah. Thank you. The next question is from the line of Ram Arvind from iThought PMS. Please go ahead. Hi. Am I audible? Good, sir. Uh- You're audible. Yes, you are. Hello. Am I audible? Now there is a slight echo in your voice. Mr. Ram Arvind. Hi. Am I audible? Yes, please go ahead. You are audible, sir. Yeah, thanks for the opportunity. The question I had was specifically on the new products that they're gonna be coming about, which is the Ethyl Maltol and cyclopentanone. I wanted to know if the phase two and phase three of CapEx is taken into consideration for, specifically for these products, or is it, or is the phase two and phase three going to be for the existing products? That'll be my first question. Okay. Shall I answer the first question, then we'll come to the second question? Yes. Yeah. We are working, and these projects are already underway. As you will know, typical projects of this size do take 12 months to 15 months for implementation. We are at very advanced stage in terms of detailed engineering. The, you know, structural design, equipment design, procurement in for some equipments has started. Other equipments, we are still in that phase of detailed design. All the three products projects are in full swing. Right. Sir, could you give any timeline as to when these products might be commercialized? We are targeting to do by the end of first quarter of next financial year. By June of next financial year we are targeting to complete these projects, mechanical completion as we call it, so that we can start taking the trials and typically within months' time after those trials, we are in the business of commercial production. Right. Just to follow up on Cyclopentanone specifically, like do we have to wait for certain approval periods for this molecule, like to some of the clients who we are going to be selling it to? Will we have any approval period for this? Yeah. We, as we always have been saying that, you know, when we develop a product, we do it in the lab and then in the pilot and our lab samples are approved. Customers are aware of this product and they have seen our samples, approved those, you know. We are doing that homework simultaneously. Okay, sir. The second question was to do with the furfural. Where do we see the timeline of this furfural backward integration? Like, could you give some timeline? Will this fall in the CapEx plan of phase II and phase III, or is that completely separate? Yeah. This is, this is, we will first establish the finished goods and then we will go for backward integration. In the meanwhile we are trying to get into contracts for buying furfural from outside agencies. If you want me to, you know, talk about the timeline for furfural, it will be post, I would say two years or, you know, it is only after two years that we will get into that particular act. Okay, sir. Any time around FY 2028- 2029 we can expect furfural? Yeah, yeah. You can expect that project to be there. Yeah. Correct. That's correct. All right, sir. Lastly, just one thing on the biotech side, which is. There have been mentions of biomass conversion, right? Biowaste into value-added products. Yeah. Could you just talk a bit more on this? Yeah. Yeah. We continue to work. This is a very complex technology, so we continue to work on that. Right now we are working on setting up a demonstration plant which has a size, which has a capacity which is, you know, significant. That demonstration plant is being put up with a CapEx of around INR 70 crore-IND 75 crore, which will then, you know, do this thing on few tons per day basis so that, you know, we have products coming out of that plant and all the three products will happen simultaneously. Energy conservation will happen and lot of data will be available, you know. That demonstration plant project is also underway right now. We are at a stage at which we are doing the, we have done the basic engineering. We are in the process of doing the detailed engineering work for that. This is separate from the Ethyl Maltol and Maltol projects, is it? Oh, yeah. The biowaste products. Yeah, it is completely separate. Okay. Yeah. That's correct. That's correct. That's correct. Yes. Just on a final note, what could be the end capacity figure, like let's say after all these three phases of CapEx is done? Okay. Yeah. I have the answer. Yeah. Yeah. After all the first three phases of CapEx expansion, as also mentioned in our investor presentation, Privi will have on its own about 72,000 metric tons of capacities. Right. The timeline for this, sir? It is somewhere around 28 June, optimistically. Maybe September 28, more realistically, I would say that. Okay. Thank you very much, sir, and all the best. Thank you. Thank you. Thank you. The next question is from the line of Rohan Mehta from Ficom Family Office. Please go ahead. Hello, sir. Am I audible? Yes, please. Yes. Perfect. Thank you so much for the opportunity, and congratulations on a good set of numbers. The 2025 annual report, you know, references a lot of molecules, including Sylvamber, amber silk, as well as Privalite and Privacolorite. Should we read this as a deliberate shift towards, A, a deeper value chain integration and also structurally higher gross margins going forward? Also in terms of I wanted to understand what is the commercialization timeline for these products and how do these factor into your FY 2027 revenue and capacity utilization? Yeah. I will, you know, pass the first part of margins because, you know, obviously you can realize that it is very important for us to, you know, maintain that confidentiality. These products are already being commissioned right now. One of them is already commissioned and the other ones will be commissioned during the course of this financial year. I would hesitate to give you margins and all that, you know. You have summarized it well, so that's where it stands. Sure. Sure. Thank you. My second question is on raw material and fuel alongside logistics outlook for FY 2027. Given the recent volatility in crude prices as well as in overall energy and fleet cost, could you give some sense of, you know, when it comes to your fuel source, what part of your fuel source is currently crude linked, and how are you mitigating that risk? Secondly, when it comes to CST and GTO sourcing, how comfortable are you when it comes to sourcing these? Should we think about any margin headwinds from input cost in FY 2027, or are you comfortable on that front so far? I think we answered this question partially earlier that, you know, 70% of our revenue does come from contracts that we already made, and those are in place. In terms of shipping, you know, time, there could be a delay. I mean, to say that there is no delay at all is not correct. There will be a delay, but that's about a week or two, and we are well covered for that because we always maintain the stocks which are mentioned in the earlier answer. We maintain that stock and, that's how we try to mitigate the risk of such an, you know, event that is, black swan event, like this war. That's where we stand. About the raw material pricing and everything, Mr. Babani already told you that, you know, we are having very good relation with the customers, and it's a very transparent relationship. It's built on huge amount of trust. Therefore, you know, wherever it is, you know, it makes a case for us to get a higher price, we do get that. Yeah. Sure. Sure. Thank you so much for the opportunity. Wishing you all the best. Thank you. Thank you. The next question is from the line of Mann Ashar from Growth Sphere Ventures. Please go ahead. Hi. Hi, Sanjeev ji. Hi, Babani ji. Congratulations for great set of numbers and pleasure to hear from you once again. Thank you. Yeah. Sir, actually, I have three, four questions. I'll start with my first. Sir, realizations for us actually tend to be in the range of INR 560-INR 590 per [kg kind of region. As we are saying that it has increased approximately by 6%-8% this year. How do we see this moving, considering that we have 70% of our revenue as exports, which is actually dollar denominated, hence you would be getting some sort of Forex benefit out of it as well, and you are moving towards higher value products. How should we model this around and how should we see the quality of business going ahead around the pricing? Yeah. Two things. You know, one is that, yes, as the rupee or dollar appreciates against rupee, there would be slightly higher realization. You have to always remember when you do the P&L part that our raw materials also, 70% of our raw materials are imported. To that extent it does get balanced, and also we have some amount of, you know, Forex data on that. There is obviously a benefit of rupee weakening or rupee depreciation, but it is only calibrated, you know. It is not something that everything comes to us because we also import raw materials. That's answering your question about pricing. Realization will go up. If you see the trend for the last three years, it has been or even five years you can take, it has been steadily going up, barring couple of years in between. It is going up, from about INR 450 to about INR 525 to INR 600, in the last financial year. It is, it is going up. Going forward, we have both categories of products, you know. We have majority of the products would be higher value products. Cyclopentanone obviously is not a product which is of high value, although very good margins, but, in terms of its pricing it is lower. You, you will find growth going forward definitely in this number, you know, but it will be calibrated. Got it. Got it. Sir, second question that I have, considering the crude oil has gone bonkers and due to that GTO prices have also increased a lot. Sir, for us, we have majority of our capacity benchmark to CST and the raw material for CST sort of a waste product that is basically imported from Western countries. Yeah. Considering that our end value is increasing and we have sort of a non-linked crude raw material of some quantity. Do we expect the gross margin, which has increased by, I think, 150 odd basis points this year, increase in next or probably next to next financial year, by any chance? No. I think you should consider, we always play safe. We will assume that the gross margin remains at similar level. What we actually do, you know, and that's what defines Privi, is that we always look internally and try to improve the efficiencies, you know. That's what we have done in the last quarter, and we will continue to do that and improve our efficiencies and improve our margins. Got it. Sir, for the new products, right, Maltol and Ethyl Maltol Cyclopentanone. If you can explain to the investors what is the actual benefit to Privi for basically making these products, because as far as we have known, these products are basically imported to India, and now there is some CBAM norm is also coming. Could you explain a bit in depth as to what would actually be going on in the industry for CBAM norms and how is Privi differentiated in these new products? If you really look at it, you know, it is strategically similar to what we have been doing so far, that is converting a waste into wealth. You know, that's what we define internally. Like we do CST, which is a waste into value-added aroma chemicals. Similarly, we will be starting with furfural, which is made from waste, that is corn cob, and go all the way from making, buying corn cob to adding value to make, you know, these flavor chemicals and a speciality molecule. That's the way we have positioned ourself, you know. When we are getting into this vertical, which will be ultimately valued up to INR 1,000 crores in revenue, we are fully backward integrated, and we will be the only one of that type. We also have a proprietary technology for making Cyclopentanone. Based on this, we are differentiated from what others do. Got it. Got it. This would also be export focused, right? As some, as CBAM norms have come live, that would actually help us against our peers. Yes. You're right. Got it. Got it. Sir, last question for me is, if we see standalone margins of Privi as a entity, they are actually 27%-28% kind of a range. As in the speech you said that now Privi has also started to become profitable. Can we expect the Privi total or the or the consolid margins to tend towards what standalone entity is quoting at right now? Not exactly 2027-20 28, but the direction towards it. Yes, there will definitely be an improvement in the consolidated margins going forward now that Privi is also, you know, turning itself to a positive. Got it. Got it. That's it from my end. Congratulations again for great set of numbers and all the very best for the year ahead. Thank you. Thank you. Thank you. Thank you. The next question is from the line of Prateek Shrivastava from Nivesh Wisdom. Please go ahead. Hello, sir. First of all, again, congratulations on a great set of numbers. Thank you. Sir, my question, I just have little more follow-up on the raw material, especially on the gum turpentine. At least from the, what I know from that, you know, China is the global dominant supplier with around 60% to 70% of world's gum turpentine. Is that also our supplier for GTO? No. Okay. All right, so at least we have de-risked our pipeline from that, right? Yeah. When we say, sir, China Plus One. Do we have any, like, new customer who has moved away from Chinese suppliers to us? You know, you see Mr. Babani's interview in the morning on CNBC. He actually has, you know, really nicely stated that we were born out of China Plus One. It is now fashionable to say China Plus One, but the necessity of having an alternate supplier for aroma chemicals arose, you know, many decades back, and that's how Privi came into being. In terms of, you know, acquiring new customers, as it is, you know, I think all the F&F companies as well as majority of FMCG companies which buy aroma chemicals, we are supplier to them. They are more than happy to have a source which is independent of Chinese source. In even in case where we are saying China Plus One strategy, we never forget about getting back to basics, and I explained in the previous question that we would be fully backward integrated. You know, that is what gives us the strength. It's not just that we depend on China Plus One, but it also make us very strong in terms of being fully backward integrated to get into the products that we are getting into. To add to what Sanjeev is stating, I'll literally say that we are indeed China Plus One. You know. On a lighter note, because we are backward integrated, we are definitely China Plus One now. Great. Great. Great to hear that, sir. My second question is on this amalgamation of this proposed merger between these, you know, this, PSPL and PDPL into PSPL. Any timeline for NCLT approval? As indicated in my opening remarks, we expect that to happen by this financial year. Maybe it can come in the third quarter of this year is what internally we are targeting, in fact. Got it. Thank you. Thank you so much. Thank you. Thank you. The next question is from the line of Mehul Panjwani from 40 Cents. Please go ahead. Sir, thank you so much for the opportunity. Pardon me because I'm new for this company. Sir, are the new specialty projects which we are which are in pipeline and also the Prigiv expansion, I mean, all these would translate into revenues in FY 2023, all of them? I heard that Prigiv is already contributing. I think Mr. Babani explained in the previous questions that, in the current financial year, Prigiv will give about INR 130 odd crore of revenues, and as against INR 55 or somewhere, in the current financial year. The other specialty molecules are still, the projects are being implemented, and you will find revenues coming from those in the next 18 months or so. From 18 months onward. Right. Thank you so much, sir. Another question is about margins. The EBITDA margins, I think I heard that are sustainable about 25%. That's correct. okay. Yeah, it's 25%. We will endeavor to stay there. Right. Great, sir. Sir, last question about the partnership with the multinationals. Can you please share elaborate a little bit on what are we working with these guys? That is a JV that we talked about, where Mr. Babani also mentioned the numbers. It is purely manufacturing certain high-end speciality chemicals exclusively for our JV partner, Givaudan SA. Right. There are two more, right? It's only Givaudan? Only one. There is only one JV. The other companies are 100% subsidiary of the parent company. All right. Okay. Okay, sir. Thank you so much. Thank you. Welcome. Thank you. The next question is from the line of Karan Talwar from DAM Capital. Please go ahead. Yeah. Hi, sir. Thank you for taking my question. Sure. Congratulations on a good set of numbers. Just a couple of, one from my side. We are seeing that in this quarter, apparently our other expenses and power together have declined both sequentially as well as year-over-year, despite having a strong revenue growth and the prevailing disruption in West Asia, which should have typically increased your freight and logistics cost. Could you please help us understand what has driven this decline? Yeah. On the first part, the power part, you know, I will give all the credit to our engineering team who has been working round the clock in terms of saving steam and power. It's, you know, therefore, overall fuel cost has come down. We continue to work on that, you know. We have a program, which is called as ProMax, wherein we keep on working on, you know, utilizing whatever is the residual steam that is left, we try and get value out of that. That's how we have brought down the cost of power and steam. Going forward, you will see this trend continuing. These improvements come very slow and steady, but certainly, you know. On the second part of controlling expenses, I think we have Hawk here, you know, CFO, who has been controlling all the cost and I would leave the rest to Narayan. Yeah. There has been a constant monitoring and an endeavor, and we have been able to ensure that some of the contracts that we enter into with various CHAs and freight forwarders, the prices have been, you know, very definitely concisely and precisely negotiated, and you are able to see the better results out of that, in fact. Our endeavor has always been, as also mentioned by me in my, you know, initial speech, that it's a conscious decision of the entire management effort of bringing down and keeping all the expenses under control. That's what you would see that it has helped in improving and increasing the EBITDA margins over the previous years. We will continue striving for that. That's helpful, sir. Secondly, on the EBITDA upside, like you mentioned from the current portfolio. Now, with the current mix, how should we think about, you know, the remaining levers for EBITDA effect, expansion from here? What I mean to say is, have the benefits of probably product mix optimization from your pipeline and the operational efficiencies, have they been largely captured or can we see some meaningful upside from here on as well? Yeah. To answer, you know, the EBITDA margin should remain at these levels. This is our endeavor. You know, at the end of the day, I happened to mention in my earlier thing also that we are manufacturers of chemicals and we are not magicians. There could be a particular limit up to which we could, you know, strive and get the EBITDA margins going up. With the scale of operations that we are looking at, you know, absolute numbers you will see that it keeps growing around. Margins we should be in a position to sustain. That's helpful, sir. Would you want to throw some light on if you are in any active discussions with other MNC players like you did with Givaudan? Are there any others in the pipeline as well? Any discussions that you'd like to highlight? Discussions are always on, you know, at this stage it is too premature for us to say anything. At the appropriate time, we will be, you know, bringing the same to the world outside, you know. Perfect, sir. Just last from my end. What will be the state incentive for this year for this fiscal? Sorry, could you repeat the question? What would be the state incentives that we may get from in this year? Which year? From- 2025, 2026 or. For 2026 as well as for 2027. See, last year around, the financials, which has been audited, on an average, we have received about, close to INR 30 odd crores as state incentives from both the Gujarat as well as Maharashtra government. Of course, this has been offshoot of, a couple of years. Going forward, we expect, as we have stated, you know, that, these are incentive schemes basis, Maharashtra government and state government of Gujarat are mentioning, and we should be in a position of getting 50% of the GST, amount on sales made in the state, within the local state in fact. We should be in this range only around. Understood, sir. Thank you so much and all the best. Thank you. Thank you. Thank you. The next question is from the line of Sajal Kapoor from AntiFragile Thinking. Please go ahead. Yeah, thanks for the opportunity. I have two questions. Yeah. First, you have spoken about biotechnology, enzymatic chemistry and renewable feedstock as the strategic priorities. What I want to understand is the economic crossover point for which product categories or molecules do you believe bio-based routes are or can realistically achieve cost parity or cost superiority versus, you know, conventional petrochemical synthesis over, let's say, next three years? What are the key bottlenecks still preventing wider commercial adoption today? Okay. I will, I'll answer this question. The very purpose of putting a demonstration plant is to, you know, assess in detail the overall economics. As we stand here today, we do see merits in biotechnology route and adding value to that. What is it that PBIL does differently? Majority of work that is going on in biotechnology right now is about making 2G alcohol, you know, or a fuel. Whereas what we are doing is actually a refinery where we have multiple products, you know, which are of significantly higher value than alcohol, which can at best get you price of INR 105, INR 107 for a 2G alcohol particular. We are looking at more higher value products, which is what makes these economics plausible. Having said that, the technology is very complex, and that's why we are putting a demonstration plant, which will come up in the next probably 12 months or so. Once we operate that demonstration plant continuously, we will establish these results, you know. One of the reasons why these plants do turn out to be economic unviable is the CapEx cost. While on operating basis, most of the bio-waste is available at throw prices, but it is what you do with it, in terms of, one, adding value to it, which is what we are doing. On the other hand, the CapEx that is required is significant, you know. That's how the return on capital has to be, you know, well calibrated, which is the reason why we are going for a demonstration plant. It's a very cautious approach. Cautiously very optimistic, but cautious nevertheless. Does that answer your question? Yeah. What I was trying to get from my question was the economic crossover point. Because if you see historically, new manufacturing paradigms, and biotechnology, enzymatic chemistry, in aroma and fragrances is a new paradigm. They only scale when they start to outperform the incumbents on both the cost as well as the performance, because you need to achieve both the cost parity, if not superiority, as well as at least at par performance or better performance at using a newer sort of manufacturing paradigm. I was just trying to frame my question from that perspective. Are we likely to get there in the next three years or so? No, we are definitely likely to get there because as I said, one of the key parameters there is the what kind of products you are making. When you make premium products, you know, you definitely make the economics turn in your favor. That's what we are doing. This, if we get there in three years, this will be a kind of a paradigm shift in the chemicals manufacturing because the whole world, many, many materials are currently, they haven't got any alternate synthesis route other than, you know, the feedstock based on the fossil fuels. If you could crack biotechnology at scale, keeping the economics and the performance at par, then I think it can be a game changer. Yes, indeed. It would be for sure. Let me give you a example. There are two large companies in our space who have succeeded on six or seven products in this space. On six, seven molecules which are large, you know, $30, $40, $50. Our challenge is coming when we are doing this, we are confident that about the five molecules we are launching, three of them are below $10 or below $5, but they are one of the items which is few percentage of that volume is at $90, $80, $70. We want to multiply so much that we don't mind selling it at $50. We are having a lot of challenges in assessing the market, so we've been meeting all the customers. In fact, how will the elasticity of demand span out if we launch it at $45? Everyone is confident the market will multiply multifold if we launch it. We produce right now only a few kilos or maybe 10 kls, and we are in the process. In the next couple of years, we'll produce few tons and then take a market research and then launch it, because we don't want to put, you know, any shareholder money to risk. Once we are sure of it, we'll go full swing. Exactly. Three, four years. This is beyond 5,000, beyond 5K story. We are working, the top team of Privi is working beyond 5K. 5K, the team is different, and beyond 5K, the team is different. No, thank you for thanks so much for this comprehensive response. A very sensible thinking, I must appreciate. Look forward to all the execution in the coming years as well. Thank you so much. Keep our fingers crossed we'll surely succeed, and it's our endeavor to do this. That's it. We want to bring something good molecules on Earth so that we will be, you know, making a significant name in the world markets. Our expectation is to reach beyond the expectations one can imagine. Absolutely. Amazing to hear that. Thank you so much for all the responses. Many thanks. Thank you. Thank you. Thank you. Thank you. Ladies and gentlemen, that was the last question for today. I would now like to hand the conference over to Mr. Narayan Iyer for closing comments. Thank you. On behalf of Privi Speciality Chemicals Limited, I thank all of you investors, shareholders, and every person there attending this call and listening to the perspective from the management of Privi. Thank you everyone and looking forward to keep interacting with all of you going forward. Mr. Mahesh Babani wants to say something. I would really thank the person who asked that question so that my other shareholders also could listen what we are doing. Right. what impossible things we are trying to do. Thank you for that. On that positive statement and sentence by Mr. Mahesh Babani, our visionary Chairman and Managing Director, we at Privi, the management team, say goodbye as of now. [Foreign language]. Thank you. Thank you. Ladies and gentlemen, on behalf of Privi Speciality Chemicals Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.