Fairchem Organics Limited (FAIRCHEMOR) Earnings Call Transcript & Summary

Ladies and gentlemen, good day, and welcome to the Q3 and 9 Months FY '25 Conference Call of Fairchem Organics Limited. [Operator Instructions] I now hand the conference over to Ms. Nupur Jainkunia from Valorem Advisors. Thank you, and over to you, ma'am.

Thank you. Good afternoon, everyone, and a warm welcome to you all. My name is Nupur Jainkunia from Valorem Advisors. We represent the Investor Relations of Fairchem Organics Limited. On behalf of the company, I would like to thank you all for participating in the company's earnings call for the third quarter and 9 months ended of the financial year 2025. Before we begin, a quick cautionary statement. Some of the statements made in today's earnings conference call may be forward-looking in nature. Such forward-looking statements are subject to risks and uncertainties, which could cause actual results to differ from those anticipated. Such statements are based on management's belief as well as assumptions made by and information currently available to them. Audiences are cautioned not to place any undue reliance on these forward-looking statements in making any investment decisions. The purpose of today's earnings conference call is purely to educate and bring awareness about the company's fundamental business and financial quarter under review. Now I would like to introduce you to the management participating with us in today's earnings call and hand it over to them for their opening remarks. We have with us Mr. Nahoosh Jariwala, MD and Chairman; and Mr. Rajen Jhaveri, CFO of the company. Without any further delay, I request Mr. Rajen Jhaveri to start with his opening remarks on the financial highlights. Thank you, and over to you, sir.

Thank you, Ms. Nupur, and good afternoon, everyone. Welcome to our earnings call for the third quarter and 9 months ended financial year 2025. Let me first start off by giving you some of the key financial highlights, after which our CMD, Shri Nahooshbhai, will give you some of the operational highlights. For the third quarter under review, the revenue from operations stood at INR 114 crores, which declined by 23% on a year-on-year basis. EBITDA for the quarter was INR 8 crores, which declined by 61% with EBITDA margins reported at 6.87%. Net profit was INR 3.5 crores. For the 9 months ended, the revenue from operations stood at INR 417 crores, which declined by 10%. EBITDA was INR 38 crores, a decline of 20% with EBITDA margins reported at 9.21% and net profit was approximately INR 21 crores. I now request our CMD, Shri Nahooshbhai to brief you on the operational highlights for the period under review.

Good afternoon everyone. In the third quarter, our sales of finished goods declined by 23% in terms of volume and around 18% in terms of value vis-a-vis the previous quarter. We witnessed a marginal improvement in our EBITDA margins as compared to the previous quarter. However, it remains below normal due to the continued pressure on the raw material cost as well as the fall in the sales due to lower demand and lower realization. We encountered lower demand from the paint sector for linoleic acid, soya fatty acid, which impacted both our top line and bottom line. In September 2024, as we had discussed earlier also, the Indian government had raised custom duty on crude vegetable oils from 5.5% to 27.5%, sharply increasing our dimer production cost as regards to its raw material. In order to compete with the Chinese suppliers, we had to absorb most of the hike to retain our 2/3 domestic market share, which has impacted our bottom line in a substantial manner. With no import duty change for the fatty acid, we had to cut our raw material purchase and can only hope and wait for a policy reversal, which would take us back to the good old days. The silver lining, however, is that company continues to be upbeat on its value-added high-value product, isostearic acid, which has more and more companies have started giving us approval for the said product. The company expects to achieve higher volumes of the export of this product in continuously quarter-to-quarter basis. With that, I open the floor for a question-and-answer session.

[Operator Instructions] The first question is from the line of Nirag Shah from Exemplar Investments.

Can we have the Q3 as well as the 9-month figures of contribution of each of our major products, linoleic , stearic, dimer and isostearic individually to our revenue?

We cannot have separate contribution for each of the 4 main products, but I can tell you one thing, the share of these 4 main products in terms of -- as a percentage in terms of value during the quarter was nearly 78%. That includes our toco, minor toco business, linoleic business, dimer business. And the latest one to be added is isostearic acid. Our total sales share of these 4 products, prime products was 78%, because from a single raw material or a couple of raw materials, we are making multiple products. There is no separate contribution of each product.

Okay. So, for Q3, you are talking about 78%, right?

And the figure just now I gave you is for October, December quarter.

And for 9 months?

See, the figures for the previous quarter, the sales figures were 76%. And for the first quarter, the figures were 75%. So, it is averaging around 76% only for 9 months also.

Okay. And now since we are just 1.5 months away from closing this fiscal, so can we have the exact status of the new product and the new raw materials that we are talking about since last 1.5 years for which we have dedicated 30,000 metric tons per year capacity, I think. And when are we expected to commercialize the sales project?

Well, already the pilot plants, the samples we have started sending for pre-approvals to the potential buyers, but it will take its own time, because again, as I explained earlier, this is a product which we are going to make for the first time in India and hardly 3 or 4 companies are making in the world. So, we will have to move cautiously, keeping in mind its manufacturing cost and yields. Till we get those things absolutely in line, we won't be able to move forward. We are working on it.

But it is of approximate time line, means by FY '26 will we see the light?

Yes, yes. It should be. It should be. The way it is going, I feel that it should be.

And lastly, I would like to draw attention of the management to page number 30 of the company presentation released on 14 December 2024. In that, we had projected a revenue of INR 735 crores for FY '25 and INR 979 crores for FY '26. So current FY '25 target seems to be impossible now. So as far as FY '26 projection is concerned, is the management still hopeful that by any chance company can achieve even close to said FY '26?

The UP lagger is what it came up. It was something which is not under our control. We didn't visual that situation. Whatever the thing, what we projected was based on a normal market situation. Right now, in fact, if you see that our raw materials, what we buy attract 27.5% duty. And against that, if I want to import the finished product, the import duty is 7.5 %. So, we are fighting a losing battle.

That also we had already mentioned that this was the internal projection made by the company, and it doesn't hold good. At the bottom of that, we have already mentioned that it required an entire reworking kind of a thing. So, it doesn't hold good. That is what was mentioned in the presentation itself.

No, no. But internally, are we hopeful still of it?

Internally, it was made long back. Internally, it was long back before all these duty changes and lack of demand from paint sector, et cetera, came in. So, it was made long back.

But it was disclosed only last month, I think December.

No, because we made that presentation, we disclosed it.

The next question is from the line of Ritesh Poladia from Girik Capital.

Thanks for the opportunity. Just to continue on previous question on this internal projection. So, about the FY '26 of 23.8% EBITDA margin, if duty is normalized, then with the isosteric and this new product, are we expecting this substantial jump in the margin and that hold true?

Yes, everything depends on 2 things; one is that the duty thing with the differential is there. It becomes before, that is one thing. And second thing is the paint industry revives.

So from last year, the demand from the paint industry would be -- how much it would be down?

It is down substantially.

It's really down substantially.

In terms of volume as well as in realization also. Realization is holding on?

See from volumes only. See, value, we don't talk much because it is a relative.

30% drop in volume from Q2 to Q3 only. And Q2, again, itself was a further drop from Q1. So, there was a 30% volume drop between October, December quarter vis-a-vis previous quarter only.

Are you losing the market share in paints with the new players coming in?

We haven't lost any of our buyers. I mean, any of the big companies whom we are supplying, we have not lost. Similarly, the product, what we are making, people don't make product which is nearing our specifications. They make inferior grade of products.

Sure, sir. And for this new product also, this custom duty of vegetable oil, even that is applicable over there also or is it different?

It's a domestic raw material. We are talking about the new product which is under development?

Yes, sir.

That it's 100% domestic material. And so, it won't affect it in any way.

And the commercialization, can we expect in H1?

Sir, basically, what I have been always explaining, we are the first company in India doing it, third or fourth company in the world doing it. It's an R&D work. It's basically an R&D work. It's not an easy thing really to work on. We have been working on this since last more than 3, 3.5 years. So yes, the challenges do come. Many times when you do an R&D, you feel that, okay, you achieved certain things. But then when you try to scale it, certain issues do crop up. So those are because there is no technology available of this product. Otherwise, I can buy off the sales technology and start doing it. But we are very hopeful that we'll be able to do it in '26.

Sure, sir. On the new product itself, whatever samples you have sent according to you, they match the competitor profile or you are looking?

Quality wise, we are able to match. We have to -- at the same time, we have to keep 2 things in mind, what yields we get and what is our manufacturing cost. Yes. So, we are working on it. From pilot scale, we are working on it. We feel that it will be -- it is on par. We will be able to manufacture it at a competitive price.

The next question is from the line of Chirag from Budhrani Finance.

Sir, in terms of this custom duty, how is the process? Do we make any representation to the government or we will just have?

We have already made the representation. But you know now isolated representation from one company.

We are the only manufacturer of dimer fatty acid. So, in that case, it becomes very tough. If there is -- like as for example, if steel, I mean, which is a commodity where dimer doesn't manufacture, that association goes for the representation. In our case, it is not possible. But I mean, we have a feeling that some state things would change. That some state things would change. Government won't be able to continue like this forever.

Okay. Second thing is, sir, in the paint sector, new players are coming in.

Already our material is approved at Grasim also, and we are selling material to them.

Sir, since you said that the volumes are falling, so I am trying to understand that even from the new players and the old players put together, even yet the volumes are falling?

Yes, yes, yes.

The last, sir, what is the debt and cash on book, sir?

There is no long-term debt. There is a working capital against our receivables and inventory. As of now, the outstanding is against our inventory and receivables of, say, about INR 130 crores plus. Our draw -- actual draw is less than INR 50 crores as on date.

And cash on book, sir?

There is no liquid cash on book. This is undrawn -- drawing power is the approximately INR 60 crores, INR 65 crores. That is the amount which we can spend. We don't have any liquid surplus cash which we are investing from there, no.

[Operator Instructions] Next question is from the line of Siddharth Purohit from InvesQ Investments.

Sir, now that the entire quarter has already gone and we know the impact of the import duty on the raw material front, can we say that this is the level of gross margin that is what we will probably be comfortable with or there is more to see on the volatility?

As we will be able -- we will sell more and more of our isosteric acid, our EBITDA margins would go up.

Siddharth, there are 3 points in this. One is the adverse impact of the duty. Another is the paint demand. So, all these factors put together resulted into this kind of thing. So, these 2 negative factors, one by one if they reverse accordingly, that improvement would be there. And what is talking about is the positive from the isosteric acid, that new product which we have launched about 12 months back. And that is going reasonably well, and we hope further improvement from April 2025 next financial year. So that would -- if we assume that there are no changes in these 2 basic assumptions, which have negatively impacted this quarter, that positive impact of isosteric acid would be felt from April -- particularly from April 2025 onwards.

And sir, in previous call, probably we had mentioned in the isosteric acid business, the peak revenue potential at the current capacity is something around INR 150 crores. Is it correct? Or I mean, it is depending upon the scalability that we will revise it accordingly.

[indiscernible] what is the value of raw material. It should be, yes.

And who are the other who are probably supplying in India and --? And who would be the other people who are supplying to like a similar product or same product in India and who are we?

There is no one. For isosteric acid, whereas we are the fourth player in the world.

The remaining are in Europe and U.S. only.

Two in Europe.

Fair amount is kind of imported as of now in India?

Yes, yes, 100%. And India is a very small market. 90% of our production will go as exports.

Utilization in India is very good. It is mainly for export market in developed countries.

Sir, what would be the blended cost of dimer and linoleic acid as of now vis-a-vis?

Linoleic acid doesn't get imported. Linoleic acid doesn't get imported, dimer acid is imported.

So vis-a-vis our cost, what is the imported cost? What is the gap -- pricing gap as of now?

No, we see whatever the imported price, we have to match the price for selling. Otherwise, no one would buy from us. The people would import. That's exactly what we have been saying. That's exactly what we have been saying because imports are coming under 7.5% duty. And we have to match those, and our raw material comes at 27.5%.

So assuming there is a kind of further slowdown in, let's say, other economies and there is more dumping happening here, we'll have to...

Yes, it is happening from China.

Yes. So that's what I'm trying to understand that if, say, there is further dumping in our market and there is further pricing pressure on that, we'll have to take a price cut on that front also?

Yes, obviously, what can I do? Otherwise, I have to lose the market.

No one is going to buy at a high price from me. If they are able to get it lower price are into B2B segment. So, the price has to be competitive in business-to-business deal. The price has to be competitive only. And see, because our government has increased the duty, that doesn't impact the Chinese cost of production.

Absolutely. So, the current variables that probably will depend or probably improve for the company is the change in duty structure and probably the demand growth in paint sector. These are the 2 things that is going to probably change?

Yes. These 2 are the main things.

Sir, one more clarification. In previous call, we had mentioned that out of the 120,000 tonnes capacity, we have kept 40,000 aside for the new products and all. So, when we talk about new products, it is including isostearic acid and other new products, right?

No, no, excluding. Isostearic acid is covered in this 80,000. New products exclusively, 40,000 is the new product.

So, like now can you give like a ballpark figure what would be the potential market size for the new product that you are talking about that can be addressed? I'm not talking about revenue that you can do, but the potential market size that you'll be addressing?

Market share of that new product? See, we will be gradually reaching that 40,000.

So initially, we will put up a plant which might be hardly 10% or 15% of world's market.

No, the market size that you can cater in India or maybe from your plant?

That also would be more for exports. See, we are gradually shifting from low-value products to high-value products.

So, what basically I was trying to understand is that if we use the entire 40,000 tonnes that is available with us and meet 100% utilization, hypothetically, what could be the revenue that we can generate from that? That's what I'm trying to know.

It would be substantial, double. Sales would be double.

It is again high-value product.

High-value product. So, sales would be double, practically double.

We will be gradually reaching that optimum capacity, not in the first year itself.

So probably FY '27, '28 is what...

Creating a capacity, making a product which is of acceptable quality, but then the other 3 manufacturers are there in market. So, buyers won't dump those guys. I mean, we see to enter the market, this is going to be a gradual feature. Overnight, I cannot start functioning at 100% capacity utilization.

Like it is a simple assumption that you have to give 1,000 days for any new product to be stabilized in the market.

To see some material impact from that segment, it will take another 2, 3 years. Is it the fair assumption?

Yes. For sure.

[Operator Instructions] The next question is from the line of Riya Mehta from Aequitas Investments.

I just wanted to know how is the demand from cosmetic and other sectors going?

Cosmetic sector is doing fine. Our isostearic acid is finding application in cosmetic. We have started exporting to Europe, U.S. I mean, the 2 world's largest cosmetic market. We have started exporting that.

We have 90% export in isostearic, right?

Practically, not even 90%. You can say practically 100%. So, there are 1 or 2 small buyers in India.

And what would be the application for this apart from cosmetic?

It goes to manufacture lubricants, biodegradable lubricants. Not regular lubricants, only biodegradable lubricants.

Sure. And in linoleic acid, how is the demand there? And could you help me with making of paints?

And demand is not that good.

You already said there was a quarter-to-quarter basis, there was a 30% drop in volume.

Status of paints, right?

Mainly goes in [indiscernible]

Where does dimer go?

It goes in epoxy hardness. Anything you need to stick, it's the main raw material to manufacture. Dimer we don't see any drop. We are not seeing -- we are able to maintain the market share. In dimer, we are not making money because there is a dumping happening from China.

How much market share we would have in dimer?

Around 2/3.

2/3 market share. And who would be our competitor?

China.

Chinese suppliers.

And this would be a customer for dimer?

So, there have been quite a few customers.

Help me with the first top 2 sectors or top 2?

It won't be fair for me to do that.

But majorly paint companies only?

Dimer has a lot of application goes in, it goes in paint, it goes in epoxy hardness. It goes in glue, anything you need to stick, it goes.

[Operator Instructions]. The next question is from the line of Chirag from Budhrani Finance.

Just one thing I wanted to understand, this 22% duty that we are talking about, that is on the raw material that is required to produce linoleic and dimer acid, right?

Yes.

So there, we have an impact of the duty. And on the product side, in the dimer acid, we have the impact of Chinese imports, right?

Plus it has 7.5% import duty only.

No, no. What we are trying to say is while import raw material attracts 27.5% duty after this increase, before that, it was 5.5% only. The dimer acid import continues to attract the same duty of 7.5% only.

This import was there previously also previously also, right?

But previously, raw material was not this costly now. Raw material was carrying import duty of 5.5%. Then it became 27.5%. So, difference of 22% happened.

And on the other product, which is the linoleic acid, there we are seeing demand issues. So that is how?

Yes, yes.

The next question is from the line of Kevin Shah from [ G3 ]Investments.

Sir, in our presentation, you have mentioned that with no import duty change for fatty acid, we had to cut purchases of the raw material that you have cut that you're trying to source it locally now? Or how are we going about it?

No, no, we are sourcing it locally only, but they in turn have to import. The duty impact is set by them and then it is passed on to us. We are sourcing locally only.

So that is how it is going. Okay. Understood. And is there any price renegotiation that is possible or it's just not possible because we are operating at

I mean, renegotiation of 20% who is going to do. And if everything is B2B, nothing more renegotiation is possible. I mean you try to sell it at the highest possible price. And I mean, everyone will do that.

And sir, second question was that from April onwards, we see sort of meaningful ramp-up in isostearic acid capacity and...

Every quarter, every quarter, we expect increase in sales. More and more approvals are coming from different companies. So, I mean, quality-wise, everything-wise, we are stable. We have started -- in fact, last week only, we had lots of foreign visitors. We had visitors from 5 different countries. So, I mean, things are going on very smoothly in that. We are not worried. As regards isostearic, we are not worried.

Okay. And sir, the gross margin profile for isostearic would be more than double of what we do for dimer and linoleic?

It is a value-added product. That this is a value-added product. From one raw material, we are making multiple products, other products. And one of the core products -- one of the core products, we are making this further value-added products. And again, it results into multiple products.

So naturally, the margins would be much higher given the higher realization?

And obviously, there are just -- we are the fourth manufacturer in the world. So obviously, the margins are higher.

Should the situation be the same, there is no revision in the duty and plus, let's say, linoleic acid demand gets better maybe during the course of the year. And with the scale-up of isostearic, should margins get back to 12%, 13% levels for next year?

Yes, yes, easily.

That is what Nahoosh said in the beginning only. Isostearic acid, we are quite hopeful of increasing the margin.

And that should reflect in FY next year itself from April onwards where margins can meaningfully go up even if the revision doesn't happen still we can like around 12% to 15% EBITDA margin?

Yes, exactly.

You got it right.

[Operator Instructions] The next question is from the line of Riya Mehta from Aequitas Investments.

How much would be a ForEx gain for this quarter?

ForEx gain, there is no question of any ForEx gain or loss. It is a hypothetical thing. See, I'll tell you in case if you happen to know that is okay otherwise. Government is fixing the rates as far as shipping bills to be prepared at -- what rate shipping bill is prepared. And whatever is the prevailing rate, the government is fixing the rate well below that prevailing rate because they are periodically revising it. So generally, suppose assuming that we have made the shipping bill at INR 85, the current rate at that point of time could be INR 85, INR 60 or whatever. And then we are -- so by the time -- if rupee continues to depreciate, there will always be a ForEx gain. If rupee continues to appreciate against the U.S. dollar, there could be a potential ForEx loss. So in our case, since the rupee is gradually depreciating only, there will be -- every quarter, there would be a pace of some ForEx gain only.

Yes. So how much is the ForEx gain? I just wanted to know the quantum?

It will be very insignificant. Out of whatever we have in the results, whatever we have disclosed, whatever amount is in the other income, some part of that is ForEx gain.

And the 3, majorly, isostearic acid, which we are exporting, right?

See, earlier, our export was less than 10%. For the first time this quarter, again, our export has risen to 14% or 14% plus. And going forward, it will further improve. So, the share of export itself as a percentage to sales was quite minimal earlier till the September quarter, all the previous quarter.

I was saying that in the export, it is majorly isostearic acid or is there something else also which we are...

Majorly isostearic acid. There are other products also, but majorly isostearic acid.

So almost 10-odd percentage of revenue?

Out of 14% of our total sales, which is export, nearly 8% to 10% would be isostearic acid.

8% to 10% would isostearic acid?

Yes. For this quarter, we are saying that 14% is the export and balance 86% is the domestic sale. I'm telling rounded figures. Against this 14% export figure, 8% to 10% would be from isostearic acid and the balance would be from 2 other products.

Got it. And for the next year, how much do we expect isostearic to become?

Isostearic acid next year would be substantially higher than 10%.

[Operator Instructions] Our next question is from the line of Nitin Gandhi from Inoquest Advisors.

Can you share some thoughts on the isostearic acid? How do we plan to ramp it up? And next year, what would be the utilization and...

It's only we have to work on our marketing and getting product approval. Our capacity has already been installed. We have capacity, which is already installed. So that is no only. But now it is how fast we get the product approvals from foreign buyers. And you need to understand it goes in making of cosmetics where people take lots of trials. It is similar about what people do clinical trials, in pharmaceutical. So they take enough care. So that's the reason. It depends on the company. Yes, they are excited to find a new supplier that also from India. That they are really excited and they are working with us aggressively. But then whatever the pattern they need to follow, they need to follow. Like active buyers we have been working since 1 year. And still, we expect a 6-month period. It takes long to -- but once -- the beauty of this thing is once you get your approvals, then it goes on for long.

That's correct. But when they buy also, how much normally are they big enough to take away almost 40%, 50% of our capacity? What are their requirements?

It would be hardly 10% or 15% of world's market.

Right. But the buyer whom we are approaching...

We are working with more than 50 buyers.

We are not going to sell it to 1 or 2.

Okay. And so far, we have started with how many actual commercial supply...

Right now, we are working with 50.

Okay. Right now, we are working with 50 people.

Product is under different approval stages with around 50 buyers, out of which around 7, 8 we have started supplying.

So even if we say out of 50, even if 25, 30 comes, is it good enough for our full capacity?

Very good enough. Much more. Much more than what we need.

Right. And are there any plans to take it -- expand further after 2 or 3 years?

No, no, no. First to reach full capacity utilization. And similarly, we are working on a new product. We do that and afterwards, we'll think, not before that. So, nothing right now.

Right. And can you name the 3 other competitors?

Isostearic [indiscernible] globally.

They are all multinationals. [indiscernible] is the third one.

And their plant size is much bigger than ours, right?

Obviously.

The next question is from the line of Rohit from ithought PMS.

Just a few questions. Sorry, if these questions are very basic in nature. I'm just looking at the company after a long time. So, sir, of course, this raw material issue is a big issue for you. And as you said, these are things that will take their course of time. But is it fair to say that from this base, your margins will improve as your isostearic acid contribution goes up? Is that a fair understanding?

Yes. Absolutely.

Understood. And sir, the other new product, which you've been talking about, which you said there is 40,000 capacity that you will eventually have and where your revenues will be twice what is right now. So there, when do you start commercializing it? And where are you in that process?

As I explained earlier also, we are, again, the fourth company in the world doing it, breaking in such a new technology that none of the Indian companies is doing and hardly another 3 companies in the world are doing, it is not an easy thing. Please understand it is not an easy thing at all. Yes, I am dreaming I can do it tomorrow. It's just me just saying a time line that I'll do it by so and so date or so, maybe it's not really possible.

No, no. Of course, sir. No, no, of course. I totally understand it, sir.

Just lying. In that case, I'm just lying. It's not that we have already made the product where the quality is on par with whatever is available in the world. But in that process, I made the product, but then I had to make it at the right price. In that, my manufacturing cost has to remain as one part and second is my yields of that particular thing. Those 2 things are there. We are working on it. I won't rush in, because if I rush in and I have a wrong yield on anything, there will be such a massive cash loss that rectifying that would take time.

Manufacturing efficiency is the key, we are working on that.

See, I mean, money is not a problem for us. As rightly said, there is a 0 long-term debt. Today, from working capital, I can withdraw INR 60 crores, INR 70 crores, INR 75 crores, and raise another INR 175 crores, put up a INR 250 crores. That is not an issue.

No, no, sir, I understand, and I appreciate your candidness and honesty. Very few management exactly say it for what it is. But let me ask it in a different way. So, once you are confident of the product, as you explained, I think there is still some time for you to have confidence in terms of the yield and the cost, et cetera. So, let's say, once you are confident and once you are ready to take it to the customers, what is the process then? I mean, how much time does it take?

No, the first thing is, we have to put up the plant. We have already -- the plant has been designed. What we need to do is place the orders for the equipment. So, designing and everything is over, and permissions are over. Everything is there. Money is there. Everything is there. We are waiting for the right thing. Once we are confident about the manufacturing cost and yields, we'll go about it. And then putting up the project is 1, 1.5, 2 years, 1.5 years, and product approval cycle and everything another 1.5 years. I mean, by that time, within 3 years, once we decide to go ahead within 3 years, we'll be working at full capacity.

[Operator Instructions] As there are no further questions from the participants, I now hand the conference over to the management for their closing comments.

Yes. Thank you all for participating in this earnings conference call. I hope we were able to answer your questions satisfactorily and at the same time, offer insights into our business. If you have any further questions or would like to know more about the company, please reach out to our Investor Relations Managers at Valorem Advisors Mumbai. Thank you.

Thank you, everyone.

Thank you. On behalf of Fairchem Organics Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.