Ladies and gentlemen, good day and welcome to the Supreme Industries Q3 FY 2022 earnings conference call hosted by DAM Capital Advisors Limited. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing the star then zero on your touch tone phone. Please note that this conference is being recorded. I now hand over the conference to Mr. Aasim Bharde of DAM Capital. Thank you and over to you, Mr. Bharde. Thanks, Peter. Good evening, everyone, and on behalf of DAM Capital Advisors, I extend a warm welcome to all of you here for Supreme Industries Q3 results call. I would like to thank the management for giving us the opportunity to host them today. From the company's side, we have Mr. M.P. Taparia, Managing Director, Mr. P.C. Somani, Chief Financial Officer, and Mr. Rajendra Saboo, VP Corporate Affairs and Company Secretary. I will now hand over the floor to Mr. Taparia for his opening remarks and post that we can open the floor for Q&A. Thank you and over to you, Mr. Taparia. Thank you very much, dear friend. Thank you. I am M.P. Taparia, Managing Director of Supreme Industries Limited. I, along with my colleagues, Sri P.C. Somani, Chief Financial Officer, and Sri R.J. Saboo, Vice President and Company Secretary, welcome all the participants who are participating in the discussion of the unaudited stand-alone and consolidated financial results for the quarter and nine months ended 31 December 2021. The stand-alone results and the consolidated results are already with you. I'll be brief on the company product operating performance and other highlights. The company sold 91,364 tons of plastic goods and achieved net product turnover of INR 1,895 crore during the third quarter of the current year against sale of 111,584 tons of plastic goods and achieved net product turnover of INR 1,766 crore in the corresponding quarter of the previous year, resulting in volume degrowth of around 18% and product value growth of around 7%. The company sold 265,301 tons of plastic goods and achieved net product turnover of INR 5,160 crore during nine months of the current year against sale of 297,871 tons and net product turnover of INR 4,128 crore in the corresponding nine months of previous year, resulting in volume degrowth of about 11% and product value growth of about 24%. Total consolidated income and operating profit for the third quarter of the current year amounted to INR 1,948 crore and INR 369 crore as compared to INR 1,848 crore and INR 464 crore of the corresponding quarter of the previous year, resulting in consolidated income increase of around five percent and operating profit decrease of around 19%. Total consolidated income and operating profit for the nine months of the current year amounted to INR 5,227 crore and INR 985 crore as compared to INR 4,281 crore and INR 850 crore for the corresponding period of the previous year, recording increase of about 22% and 16% respectively. The consolidated profit before tax and profit after tax for the third quarter of the current year amounted to INR 314 crore and INR 246 crore as compared to INR 401 crore and INR 312 crore for the corresponding quarter of the previous year, resulting decrease of 22% and 21% respectively. The consolidated profit before tax and profit after tax for the nine months of the current year amounted to INR 826 crore and INR 645 crore as compared to INR 684 crore and INR 528 crore for the corresponding period of the previous year, recording increase of about 20% and 22% respectively. The business scenario of all the product segments of the company for the third quarter of the current year ended December 31, 2021 as compared to corresponding quarter in the previous year has been as under. Plastic Piping System business degrew by 25% in volume and grew by 1% in value terms. Packaging Products segment business degrew by 1% in volume and grew by 16% in value terms. Industrial Products segment business grew by 6% in volume and 26% in value terms. Consumer Products segment business decreased by 18% in volume and grew by 9% in value terms. The overall turnover of value-added products decreased to INR 665 crore during the current third quarter as compared to INR 758 crore in the corresponding period of previous year, resulting degrowth of around 12%. The company has cash surplus fund of INR 148 crore as on 31 December 2021, as against cash surplus fund of INR 331 crore as on 31 September 2021. Business outlook. The polymer prices were extremely volatile in the quarter. Starting November, PVC prices have dropped by INR 25, that is 15% per kilo. The prices of other polymer also swung wildly during the quarter. Such a swing in the prices has affected overall demand for the product. The products with demand were driven strongly by distributors. They have seen large-scale destocking in the quarter. Due to extended rainfall period in the quarter, the demand for agricultural infrastructure was also deferred. Due to supply chain disruption, the company had suffered degrowth in CPVC pipe system business. There was a steep fall in the sales of Plastic Piping System, furniture, and Packaging Products. Overall, the company's volume sales has gone down by around 18%. As the prices stabilized and on recovery path, the distribution channel has restarted functioning normally. The company expects good volume growth in the fourth quarter in most of its businesses. The company's progress in putting up a plant at Guwahati, Cuttack, and Erode is now moving. All these plants will be operational between April to August this year. The start was delayed due to supply chain disruption due to COVID-19 pandemic. The same is now ebbing down. Material Handling Division has shown 17% volume growth. Company continued to add new product range and deepen the market reach in this division. Furniture Division has shown 18% volume degrowth during the quarter, as the demand was quite weak. The Composite Cylinder has received encouraging response from Indian consumers, which expects a surge in demand from domestic sources and also from international market. The company is keeping itself ready to double its capacity from existing 5 lakh cylinders per annum to 10 lakh cylinders per annum at an existing plant site in Gujarat in a span of 8-9 months. The demand for Performance Packaging Films has shown 50% growth in volume, mostly from export market. Due to chip shortage, industrial component business has degrown in the quarter by 3.5% in volume. The company's raw material cost has gone quite high in Cross Laminated Film division. The revised increase in prices of company product have gone into effect with a time lag only by January 2022. This has affected the margin of the product segment steeply in the quarter. There was demand destruction in this segment due to look-alike competitor product with quite inferior properties. Company is confident that demand will revive for its product because the consumer will know the real value of look-alike products. Protective Packaging business has shown a degrowth of 10% in volume. The company envisaged CapEx plan of INR 521 crore for the current year, including carry forward commitment of previous year, is going smoothly. Company's initiative of launching of several new products and system in its various segments have been received positively. With the COVID-19 pandemic now moving toward endemic, the company is quite optimistic of good business growth in the fourth quarter and the coming year. This is a brief and overall summary for the quarter and nine months of the year under reference. Thank you for your patience. Now, I and my colleagues, Sri P.C. Somani and Sri R.J. Saboo, are available to reply to various queries raised by all of you. 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 your touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. In the interest of time and fairness to all participants, please restrict questions to two per participant. If you still have more questions, please join the queue afresh. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Sujit Jain with ASK Investment Managers Limited. Please go ahead. Hi, sir. Just wanted to check whether we've, you know, lost the market share and your commentary on CPVC that in terms of supplies there were supply chain disruptions. Would the other players also have faced the same thing? Thank you. No, we don't think that we have suffered any erosion of our market share. The market shrunk in the country itself, and supply chain disruption was relevant to our import of CPVC. The CPVC in India is very small quantity produced. The market in India is 15,000 tons per month. The local production is less than 1,000 tons per month. Most of the quantity are imported from Japan or USA. There was too much unexpected delay in vessels, in a ship to arrive to the port, which has affected the supply position with our company, and we believe the same thing must have happened with other companies also. Well, thank you. You are saying that, you know, the plastics industry, plastic pipes would have degrown by the extent of 24%-25%, and therefore you've not lost market share. Just to confirm. No, I told that we have net degrown in this quarter, but this is only by dealers who reduced their stocks. Now they have started now replenishing their stock. I will recover whatever quantity I lost. I'll recover in this quarter. Sure. Okay. Thank you. The next question is from the line of Rahul Agarwal with InCred Capital. Please go ahead. Yeah. Hi, good evening. Thank you so much for giving me the opportunity. Yeah. Two questions. Sir, two questions. One was, is there any inventory loss this quarter? Sorry? Was there any inventory loss booked in the quarter? In the quarter, there has to be some inventory loss. Correct inventory loss, we will calculate and give you in April only. Achha. Any approximate idea, sir? Not much idea because in November, December, when the demand of PVC pipe and fitting have eroded so much, our sale has gone down, so it could not have affected too much. The loss whatever is got there could not have come in our books of account. Now the PVC price has started going up. Got it, sir. Correctly, we can state to you in the month of April when we close the final account that for the whole year, what was the inventory gain or inventory loss. Last year, as you are aware, we gained INR 200 crore inventory. Yes, sir. This year, the third number will be known only in the month of April. Got it, sir. Sir, second question was on the volume decline. You were explaining that since you have degrown about 25% in the quarter, right, on plastic pipes. Your understanding is the industry would have also degrown with the same number? I can't say about the industry, but overall company was struggling to sell the goods. Company gave the scheme of INR 5 in the month of December and INR 4 in the month of January. They want to liquidate their stock. Imports are coming down. Definitely the demand has gone down with everybody. We will be getting the bookings of the other three public limited companies very shortly. We will know what is their position. We and Finolex are the largest player in PVC piping system in the country. Got it, sir. As of now in fourth quarter, you think the entire loss of third quarter will normalize or these volume are actually lost? We are able to capture the lost quantity. Okay. Any specific reason for Consumer Products to decline by 20%? Like, the demand was weak, you mentioned, but could you give some more color, please? Very poor demand in tier two and tier three towns. Maybe due to the buying power. Also the marriage season was also quite slow. There was no large marriage really taking place. No big hotels were functioning. Our furniture are sold in restaurant, hotels and in this decorator segment and all were going through a very tough time. Okay. Got it, sir. Thank you so much. I'll come back in the queue. Thank you. Thank you. The next question comes from Ritesh Shah with Investec. Please go ahead. Hi, sir. Thanks for the opportunity. Sir, two questions. One is on the volume decline, specifically for the piping division. You indicated around 25%-26% volume decline. Sir, would it be possible for you to give a monthly color on how the decline was? Because what we understood, November was bad because of rains. So if one had to understand, say, for October, November and December, just to understand how the demand has projected, how it has moved from November to December. That's one. Secondly, sir, you indicated that the channel inventory is very low. Sir, if you can help understand these two variables together to better understand the 26% volume decline, that would be great, sir. That's the first question. We lost the volume only in the month of November and December. October, the prices went up. October there was only small growth only. November our business of PVC pipe has gone down by 70% in one month alone. Simultaneously, along with that, the fitting sale also has gone down, the PVC pipe system. In these two months, and due to extended rainfall, the demand by the infrastructure companies were to lay the polyethylene pipe has been completely stalled. We had a loss in polyethylene pipe business, in PVC pipe system business and in CPVC system also we had a de-growth of 3%. Because the ships didn't arrive, so we could not supply the market the product what is required. Combined of all these PVC pipe and fittings, CPVC system and polyethylene pipe system, we had a de-growth of around 19,500 tons in that quarter. Sir, you indicated 70% volume de-growth for November. December was also de-growth? No, only PVC pipe. Only PVC pipe in one month. Okay. Sir, December was also decline? December decline really small decline. Overall decline was 19,500 tons in the Q3 three months. Correct. Sir, my second question is how should one understand the realization per kg and EBITDA per kg for plastic piping? It has improved beautifully on a sequential basis from INR 27 to INR 33. The realization has also increased on a sequential basis. Now, if one looks at the resin prices, is it a function that there was more element of sale in the first month of the quarter and then basically it declined very, very sharply? There was less sale of PVC pipe. Okay. There was less sale of PVC pipe. PVC pipe is a low value-added item. Correct. When the PVC pipe sale volume was lower, then overall value should become better, tonnage wise. Okay. Basically fittings proportion was higher, that's what you are indicating, because CPVC was also de-growth. Not fitting proportion. I said PVC prices demand was very low. The loss was 17,000 tons only in PVC pipe. Okay. Fine, sir. Sir, I'll join back the queue. Thank you so much. Thank you. The next question comes from the line of Bhargav Buddhadev with Kotak Asset Management. Please go ahead. Yeah, good afternoon team. My first question is that your value-added business share has declined to about 34% versus 39% in the second quarter. What has led to this decline in the share of value-added products? Cross Laminated Film business. Water business we have done in third quarter, have been removed. How much? In the last year, third quarter, in this year, third quarter, the margins were lower than 17%. Is it possible to highlight, sir, how much was the decline in the Cross Laminated Film business? It was around INR 150 crore rupee business. We did a business INR 150 crore rupees, but the margins were lower than 17%. Is it that? It doesn't qualify to be a value-added item. Okay. We haven't been able to pass on the raw material inflation in this business. Is that right? I indicated that we increased the price, whatever happened, the raw material price, but the increase took effect only from January this year. From January, can we expect double-digit margins in the packaging business? No. Double-digit it there even earlier, but now it will definitely go back to value-added item. This is what we expect. Okay. In the current quarter, it will go back to value-added business. Okay. Sir, you also mentioned that there was some competitor who came with a similar product, but inferior in quality. How should we look into that? No. They are coming up, but their price are 20%-25% lower. That is only a polyethylene film and moved through a roller to give a corrugation just like our film. The properties are nowhere near there compared to our property. Customer will realize that they are maybe getting it 25% cheaper, but it won't last. Okay. After all, they were there before we came also. They were there 30 years before. Okay. That time they were not doing corrugation. Now they are doing corrugation. They will be discovered. Okay. Customer spends money from their hard-earned income. No. Sir, just one clarification. You mentioned that PVC prices are on an up move, but as of now, the PVC prices in January have declined about INR 9 per kg, right? This month they have dropped by net INR 8 kilo. Okay. In first two months, they have dropped by INR 25/kg. This month up to 17 net after factoring all these schemes went down by INR 8. Okay. Now after 17th, the price has upward march. From now on, you think prices will go up? Already started. Already started. Okay. The PVC is structurally short worldwide. Okay. The price went very high, so they have to come to a proper level. In the drop only there is silver lining. With the lower prices, the demand will surge enough now. Price is dropping. 33 INR a kilo will be a great relief to all the customers of my product. Right. This reduced channel inventory in December, you think that was the channel had one of the lowest inventory for a long time in history? Is that fair to say? We believe that. Okay. Okay, great. I'll come back in the queue, sir. All the very best. Thank you. The next question is from the line of Sonali Salgaonkar with Jefferies India. Please go ahead. Thank you for the opportunity. My first question is regarding the current demand scenario. You mentioned that you expect across segments in Q4. What are the key drivers that you are looking out for? Any update on the channel inventory that you can see? Have they started replenishing it back to, say, the Q2 levels? All the demand factors, that is housing, agriculture, infrastructure, are in excellent shape. Now the price is coming down. Even the farmers are able to afford. The crops are very good. The rains have subsided. We anticipate good demand now coming from farmers. Infrastructure, the orders were there. They're all waiting for the prices to come down so that they can start placing orders. We started receiving orders already from the contractors. Housing and inventory is running quite well. You all are aware that housing is going through a good growth path, but because there was inventory in the pipeline, the inventory exhausted, so now the people are very desperate to get the product. Sir- As the time passes, we anticipate good demand growth month after month. Right. The inventory levels are back to Q2 levels? No, I can say that definitely inventory or whatever business we lost will recover in this quarter. I understand. Sir, and on the rural versus urban, how is the rural doing? Rural PVC pipe is no issue. That's all the issue I told about the furniture. Got it. Sir, my second question is, any guidance you would like to give in terms of volumes or margins or probably a sustainable level of revenue growth and margins that you see in the coming years? We can talk. We have already told on the TV also that this year we anticipate our turnover to be in excess of INR 7,500 crore. Our operating margin should be around 16%. Understood. Sir, anything on volume growth? Volume growth as on today, we'll be happy if we can reach the last year numbers. Got it, sir. Thank you so much. We had a big decline in the volume. Already 32,000 tons is less in plastic goods compared to last year, in nine months. Right. It's very difficult to recover the 32,000 ton in three months. Understood, sir. Thank you. Thank you. The next question is from the line of Sneha Talreja with Edelweiss Securities. Please go ahead. Thanks a lot for the opportunity, sir. My question was related to again the volume growth part. You also said there was a drop in agri demand. Could you quantify in general in Q3, what is the percentage of sales coming in from agri? I don't follow. We have no possibility to quantify what is the percentage of agriculture. No way. Uh- As all my investors are aware, our pipes we have sold agri pipe, they are being used in the housing. We have no way to quantify the percentage of agri segment. We are a small player in agri compared to housing. Our main business is housing and piping. We can largely believe that the drop in Q3 was majority because of the housing and infra led, you know, decline, not much from the agri point of view. We told the decline was in Piping System for three reasons. One was destocking. Secondly, extended period of rainfall, where the farmers and infrastructure people have deferred their demand. Thirdly, due to supply chain disruption, our CPVC Business has shown a degrowth. Okay. Led the volume degrowth. Right. Sir, I mean, you also mentioned that you've already started seeing increase in prices. So has that increase already been transmitted even by the domestic producers in the market? For example, Reliance and all have already started taking increase, or you expect that in the coming, you know, maybe, you know- They are up till now, but we know the market trend. We believe that from first February, the price will go up. Got that. Thank you very much. It's an open market indication. Open market, the goods we are selling at a discount is now selling at a premium. Oh, that's helpful, sir. Thank you. The next question is from the line of Girish Choudhary with Spark Capital Advisors Private Limited. Please go ahead. Hi, sir. Thanks for the opportunity. I have a question on your EBITDA margins again. On a per kg basis, we have seen a sequential improvement at the company level from INR 30 to around INR 34-INR 35. Sir, line is terrible. Your voice is garbled. Line is not clear. Please. One second, sir. Girish Chaudhary, just speak clearly, because there's some garbling happening. Oh. Is this better? Now better. Yes, please. Yeah, yeah. Shivanji, can you hear? Shivanji? Yeah, sir. Yeah, I can hear. We can hear very well. you hear? Please. Very well. Yeah, yeah. Okay. Sir, I had a question on your EBITDA margin. We have seen a sequential improvement at a company level from INR 32, INR 34, INR 35 per kg. This despite value-added products going down sequentially, and also you indicated there was an inventory loss. Overall we have seen a lower volume frequency. I think what drove this margin performance and also what would be a sustainable margin to look forward to in the coming quarters? No, no. We told for the current year, we are expecting 16% margin. The per kilo basis for a particular segment of the business of the company and plastic pipe, as I told, the business was lower of PVC pipe and fitting and where PVC pipe principally and polyethylene pipe, where the per kilo margins are always lower and those business have mostly shrunk. For the remaining business, the margin definitely will go up. I think this part I explained several already, very clearly. What more clarification I require? Somebody, can you understand what is more clarification required? No, no. This is the right answer because of the product mix. Since the PVC pipes have been sold very less and there's a volume degrowth. Other product of the piping division or other product division which are bringing better valuation has shown that the per kg improved EBITDA. Okay, got it. Sir, secondly, on your working capital, again we are seeing cash balance going down to around INR 150 crores from INR 300 crores. We just wanted to understand the reason for this despite the INR 300 crore EBITDA generation this quarter. Working capital went up so high because the business what we lost, we have prepared the product in our plants and from the market. We had a loss in business of around INR 350 crore. When the 20,000 ton quantum we sold less, it resulted into a loss in turnover of INR 350 crore. The INR 350 crore resulted as a finished goods in our godown. That's why our working capital requirement has gone up. We need to store the goods. There was no demand in the month of November, December. Got it. Lastly if you can just highlight the CapEx this quarter. Sorry? The money spent for your capacity expansion this quarter. Up till now we have invested INR 344 crore. We have paid for. Okay. In nine months we paid INR 344 crore. Okay. Got it, sir. Thank you. Thank you. Thank you. The next question is from the line of Sailesh with B&K Securities. Please go ahead. Good evening, sir. Thanks for the opportunity. My questions are pertaining to Supreme Petrochem. Sir, as per market data, significant expansion in PS and SM spread in Q3. We are yet to fully witness the spread improvement. What are the reasons, sir? Also could you please share the business- Can you please repeat your question because your words were not clear. Yeah. No, as per the market data, we have seen significant expansion in polystyrene and the styrene monomer spread in 3Q last quarter. We are yet to fully witness the spread improvement. What are the reasons, sir? And also if you could please share the business mix between spot and contract. What is the average contract period with the customers? I don't know. For the original equipment producer, we have got annual contract for supplying a polystyrene to them. For trade market, they buy daily basis as per their requirement. Business is around 45% with the original equipment producer, 55% with the trade market also and export. Okay. How the demand is there with the original equipment manufacturer for consumer appliances. Mm-hmm. The numbers are not before me, but we are getting requirements from all original equipment producers. All the non-brands, we have got annual contracts with them. Okay. Sir, how is the volume and pricing trends are now in fourth quarter? On polystyrene? Yeah, polystyrene EPS. Both are fully sold out. Okay. We are running plant fully and we are fully sold out also. Okay. My second question, in mass ABS, we are going for phase II of expansion. What is the total capital you are going to deploy, sir? And also in this new Yeah. Go to what total? Total capital you are going to deploy in mass ABS. Including working capital, we will invest INR 850 crore. Both the phases put together, sir? Both the line together with the working capital infrastructure. Okay. We will invest INR 850 crore up to March 2025 from now. Okay. We started investing money now. Okay, okay. What's the capacity utilization in 3Q, sir? And also if you could share the volume data for each of the product vertical in 3Q or nine months would be very useful. Polystyrene? Yeah, all the product verticals, EPS, PS. No, I don't have the data with me of each of the product with me. I don't have data of the product. You have capacity utilization number, sir. As I said, the plant is running fully and we are fully sold out. Okay. What the plant can produce, we are producing. Okay, sir. Yeah, thanks. Thank you. The next question is from the line of Rajesh Ravi with HDFC Securities. Please go ahead. Yeah. Hi, sir. I have a few questions. First on the channel inventory impact, which is there in Q3. What could be, you know, the impact, if you could quantify in terms of volumes? For channel demand growth? No, in our Plastic Piping System, we've got 1,247 distributors- Mm-hmm. throughout the country. Okay. Now, distributor also got many big semi-wholesalers and retailers. The destocking took place throughout the chain. Mm-hmm. Such a big drop in prices in such a short period. Mm-hmm. People were scared, and people were expecting that revenue is going to fall. PVC is going to crash further and further. Which happened also, that after the drop of November 7, INR 25/kg, the prices went on dropping up to January 17. They dropped further by INR 8/kg. Okay. Now the drop is stalled. There's no product available. The price in the open market started going up. We are getting full order now from my customers. Mm-hmm, mm-hmm. No issue. Okay. In January, are you seeing that demand numbers picking up? How has been the commentary for you in January? First half, I said to you, the same story, up to 17 January. Okay. Up till January 17, the situation has been. I'm talking for the quarter. No, no, understood. You're saying because prices have just now stabilized, you expect the things to recover and the lost channel inventory numbers should get back into the system. That's right. Okay. Also, could you quantify how much was the PVC price hike taken during the quarter? What was the price passed into the system? PVC prices started rising from the month of June 2021. Mm-hmm. It went up over a period by up to end October by INR 44 a kg. Mm. The INR 44 per kg now went down by INR 33 per kg. Okay. Now, as on 18th January, they are still higher by INR 11/ kg than the prices what they were there in the month of June 2021. Okay. No, no, I was asking more from the third quarter perspective, because your realization is impacted because of the product mix change quarter-on-quarter. So just wanted to understand like to like how much price change was there for the, you know, on a quarter-on-quarter basis in the PVC segment for you, your realization. We have taken you through the whole path of the PVC price change. It starts from July. The price went on increasing monthly two times, three times, went up to INR 44 a kg by end of October. Come first November, they started dropping. Mm-hmm. November 1 to January 17, they dropped by INR 33 a kg. Mm-hmm. Yet they remain INR 11 higher than what it was in the month of June 2021. Okay. Now there is no possibility of prices going down for time being unless the freight rates of goods arriving from Asia to India go down. Mm-hmm, mm-hmm. They are very, very high. Okay. One last question. freight. Okay. Sir, one last question on the Hello? Yeah, please. Yeah. One last question on the annual guidance, which you said that, you know, north of INR 1,200 crore EBITDA for the full year. That would imply that the fourth quarter number could be weak year-on-year versus because last year you have already achieved 510 crores of EBITDA. We said we have done INR 5,100 crore now in the nine months. Nine months, we did INR 5,275. No, no. EBITDA, consolidated EBITDA, you have done INR 510 crore. Sorry, in the March quarter last year, you have done INR 510 crore EBITDA. I remind, dear friend, that that was inventory gain of INR 180 crore. Okay. In the last year's fourth quarter, there was inventory gain of INR 180 crore. Okay. When I gave you the number for the full year with the operating margin, you can calculate now. Mm-hmm. When I say the profit can be around INR 1,200 crore. Mm-hmm. For the fourth quarter, it cannot remain INR 500 crore. Correct. It has to be lower than that. It has to be now. Already, EBITDA has come INR 850. Mm-hmm, mm-hmm. What I'm saying is that it may be INR 350 crore. Correct. Okay. Great, sir. I'll come back in queue. Thank you. Thank you. The next question is from Achal Lohade with JM Financial. Please go ahead. Yeah. Good evening, sir. Thank you for the opportunity. My question was, yeah, if we understand it correctly, till October, the demand was pretty good. November, December, there was significant deceleration. This is about plastic pipe segment, sir. Is it that the demand First, I correct you. Demand was not quite good. I said the prices went up in October by INR 20/kg. That's why October working, there was no loss. Right. October the demand was maintained. Because at such a high price, the demand started shrinking. There was no growth in October, but no de-growth also. November, December was a disaster. Right. Yeah, is it fair to say that the entire, I mean, the pressure on volume, for us is more, or is entirely because of the, volatile PVC prices? Or do you think there was a deceleration in the end demand as well ex-factory, sir? No, demand with my stockists were there. They could empty down the godown. My stockist could get their stocks. Okay. They could empty the godown in the two months. Right. Okay. Understood. Secondly, any guidance for FY 2023? Sir, you talked about FY 2022. Any color in terms of volume growth, margins you would look at on a normalized basis, assuming no further lockdowns or stable PVC prices? That we will be talking about in the month of April, not today. Okay. Understood. Thanks so much, sir. I'll come back in the queue. Thank you. Thank you. The next question is from the line of Abhishek Ghosh with DSP Mutual Fund. Please go ahead. Yeah, thank you for the opportunity, sir. Sir, last time when the PVC prices were quite high, you had mentioned that, you know, the agri demand could get impacted because of people opting for lower tonnage, lower dia pipes. Now, with PVC prices having corrected off, do you think that risk is gone out of the system? Any thoughts? We are optimistic. Okay. I told you, we are optimistic. We said whatever demand we have lost, we'll recover. Okay. Sir, the other thing is in terms of if you can broadly talk about your capacities in terms of individual segment if you all can give that. Sanjay, can you help there? Yeah. The capacity we said. Our opening capacity, which was there 697,000 metric tons. Unfortunately, all our new plants, the Assam, Odisha and Erode, all three have delayed from the 2023 and they will come into production, say, somewhere from March to August or April to August. The new capacity, what we were contemplating by end of this year, will get deferred to the June, July, August period. The downfill expansion, whatever we have made, it will result in hardly 8,000-10,000 tons capacity additionally during the current year. Our opening capacity, which was there 697,000 tons, will not go beyond 710,000 effective production capacity if you look at current year. With all these three new capacities, large capacities are coming up, consisting of 1 lakh tons per annum, will be in place only from August 2022 onwards. Okay. First half of FY 2023, you should be at least moving to something like 8 lakh tons per annum capacity broadly. Yeah. Once all these things are there, then yes. Okay. We don't anticipate further delay in the capacities coming on stream? No. Now everything is in line. Things are working well. Construction is in full swing. We believe the COVID pandemic may become endemic. If we are, if that part will go wrong, and if suppose COVID fourth wave, fifth wave come more severe than COVID level two, then we may go wrong again. Okay. Fair enough. Sir, if you can just talk about your whole, you know, because you are broadly, if you just see the current run rate, you are operating at, you know, broadly 50% utilization. Next year, another 1 lakh tons of incremental capacity will come through. How do you look at the utilization from a more two- to three-year perspective? What is an achievable number given the overall? I'm not talking about quarters from a two- to three-year perspective. Any thoughts? For the annual part, we can talk in the month of April next year. This year. Okay. Yeah. Fair enough. Please. Sir, the other thing is in terms of, you know, we are hearing lot of things around the whole BS-VI implementation, which was to get implemented sometime back, but again got pushed back. Sir, any thoughts on that from, in terms of- That was not applicable to our company. We make BIS product. No, I was more coming from the, sir, the competitive part because the competition, the unorganized, would have got weaker. Any thoughts from that perspective of, you know, in terms of- That market also, there is a market. They will live. Non-BIS and BIS, both will live together. Okay. Okay. There are cheaper products and there are people requiring a low application, then people will go for cheap products. They sell on kilo basis, INR 30, INR 70 kilo basis. That market will also continue to operate in this country, and all types of buying powers are there. Okay. We believe they will also run. We will also run. Not bad. Sir, just one last question. Again, when the CPVC prices were elevated, there was a lot of shortage of PVC material. That is why some of the smaller scale players were not able to procure that. You think that with the PVC price correction now and the availability improved, those players are again coming back into the system? Are you seeing that at the marketplace? We are not aware that they were not able to get the material. We are not aware. That was only news item. We were not aware. Okay, great. The player will play. They are in the business. Sure. Okay, sir. Wish you all the best. Thank you so much. Take care. Thank you. Thank you. The next question is from the line of Ritesh Shah with Investec. Please go ahead. Hi, sir. Thanks for the opportunity. Sir, you indicated INR 850 crores of CapEx till March 2025. Sir, can you please indicate how much of this CapEx is already done? How much of it basically will be for next year and year after? Corresponding to that, how actually the capacity will actually move on a year-end basis. I think you indicated around 800,000 tons of capacity on March 2023 basis. If you can give equivalent numbers for March 2024 and 2025, it will be great. No, there are two investments. We were already in the midst of INR 260 crore rupee investment in expanding capacity polystyrene and expanded polystyrene. No, yeah. Both will be operational by Supreme Petrochem, sir. That are your Supreme Petrochem, no? No, Supreme Industries. No, no. no. Supreme Industries, sir. Industry. Sorry, sir. Sorry, please. My apology, please. No problem, sir. Yeah. You asked what is the point we are asking at Supreme Industries? Sir, my question was, you indicated around a CapEx of INR 850 crore till March 2025. I wanted to understand- Yes, you are talking about Supreme Petrochem. When you gave number 850, then only I start talking Supreme Petro. Now you say it is Supreme Industries. Okay. Sir, for Supreme Industries, I think the number was INR 750 crores, if I remember it right. Is that number right? No. Supreme Industries. INR 750 crore Supreme Industries. No, no. Supreme Industries this year we have, we are making commitment about INR 520 crore rupees CapEx. We have made investment commitment, but we have invested up till now INR 344 crore rupees. That's what I told. I repeat same thing. Correct. Sir. Every year to continue the momentum of growth, every year we'll be required to spend about INR 350 crore further. Maybe even INR 400 crore. We can afford to invest now. Correct. Sir, just to get it right, FY 2022, INR 520 crores, of which we have done INR 344 crores. Next year, the number that we are looking at is INR 300 crores-INR 350 crores. Is that correct? No. As I told, INR 344 crore we have already paid for. Correct. December 20, done. Correct. Some more money will be invested in the January-March quarter also to build new plants at so many locations. The plants, as my colleague has told you earlier, will be operational by August 2022. Two. Correct. Correct. Sir, how much will be the capacity on March 2024 basis and on March 2023 basis? March 2023 basis only, you can talk now. March 2024 basis, there's no plan today. March, we can talk March 2023 basis. Maninder, can you tell March 2023 basis? Yeah. This I mentioned in my earlier answer. Our capacity of about 1 lakh metric ton for these three plants which are already under construction will come by August 2022. Our capacity by end of March 2023 should be in excess of 8 lakh metric ton per annum. Sure, sir. That's useful, sir. Great, sir. Thank you so much for the answers. Thank you. This helps. Thank you. Thank you. The next question is from the line of Madhav Marda with FIL. Please go ahead. Yeah. Hi, sir. Good evening. Thank you so much for your time. I actually did not want a specific number for volume growth in the future, but just any comments on, like, if you look at a two-year view for demand across our various end markets, like housing, agri, and the government projects around Jal Jeevan Mission, et cetera. If you were to just, what's your sense, sir, in terms of demand sentiment, if you take a two, three-year view, for the country, for the plastic piping niche? Thank you. We believe the economy should grow by 10% minimum by volume next year. It's too early to talk next year now. Because the pandemic situation is not very clear. Better we talk in the month of April. Okay. Got it. All right, sir. Great. Thank you so much. Thank you. The next question is from the line of Mohammed Mudassar, an investor. Please go ahead. Hello? Yes. Hello. Yes, sir. Sir, regarding Supreme Petrochem, sir, this new capacity of PS and EPS, which is going to come up in the next quarter or in Q1. As you said that PS and EPS are currently running at full capacity. Sir, can you just give us a view that it's how many years can it take for this new capacity to fill up? What will be the demand drivers and which industries are you seeing strong demand in? No. EPS, polystyrene, our new capacity is 90,000 tons. Yes, 90. Will be operational by June, July, this year. EPS also by that time. EPS we are going to add 30,000 ton new capacity. Sir, how much time do you think it will take to come to full utilization, like, in terms of like this current capacity is at operating full capacity? Once you start the plant, you can run the plant fully, depending on how the market develops. We'll be now moving more to export market, which we are now exporting lesser quantity. We'll move more to export the product. Okay. Let me see the situation, how the economy grows in our country in the year 2022-2023. The forecast is good. The economy may work better in the 2022-2023 compared with the current year. Sir, what would be the current ABS trading volumes, if it is possible? What is the arrangement between Supreme Petrochem and Versalis for this mass ABS technology, if that is possible to share? Versalis is our company. They are the licensors, we are the licensee. Sir, any royalty to be paid or what will be the arrangement? Sorry. Any royalty to be paid? No, no. We have to pay the license fee to them. Okay. What would that be if? Very classified information. Okay. Okay. Thank you. The next question is from the line of Rajesh Ravi with HDFC Securities. Please go ahead. Yes, Raj. Could you please enumerate segment-wise what will be the plastic pipe capacity by March 2023 basis the expansion? Similarly, industrial packing and consumers. Shall I? Plastic Piping Division, you see, with the capacity of this CPVC plant coming into place, the plastic piping would be around 575- Okay. Industrial Products, close to 85,000 metric tons. Which is 71 currently. Yeah. Packaging Products will be close to INR 90 thousand. Okay. Consumer Products, close to INR 35,000. 35,000, okay. Sir, is it possible like, what is the CapEx intensity for all these four segments like for every 1 lakh ton capacity in the plastic pipe, what sort of CapEx is required, broad numbers, and similarly for other three segments? CapEx depend on what product we are going to make. Mm-hmm. There's nothing like on tonnage basis. It depends on product to product. Some product may require less capital, some product may require more capital. Okay. That's it. We cannot quantify it. Per ton, how much CapEx required is not possible to say. Mm-hmm. Depending on product, we finally decide to put for. Okay. That will require. Okay. Sir, again, on the same CapEx front, like for INR 300-INR 400 CapEx, which you expect to spend annually, you know, that would potentially add what sort of capacity to your company every year? Capacity depends upon the brownfield or greenfield project. Mm-hmm. Because in greenfields you don't get the capacity, but then you have to spend more. What we generally says that our CapEx, new CapEx should give, once it is fully operational come into operation. Mm-hmm. About INR 1 to INR 1.5 to INR 2 rupees turnover. Against INR 1 invested- Okay. Right. 1.5-2 rupees turnover one should get. Okay, this is on fixed capital investment you are saying, 1.5-2x turn. Correct. Okay. Great, sir. Thank you for taking my questions. Thank you. Thank you. The next question is from the line of Keshav Lahoti with HDFC Securities. Please go ahead. Hi. Thank you. My question is already answered. Okay. Thank you. Thank you. As there are no further questions, I would like to hand the conference over to the management for closing comments. We thank you very much for very engaging question. We thank you for your patience. Thank you, everyone. Thank you, everyone. Thank you. Thank you. Thank you. On behalf of DAM Capital Advisors Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.