India Pesticides Limited ($IPL)

Ladies and gentlemen, good day, and welcome to India Pesticides Q4 FY '26 Earnings Conference Call hosted by Dolat Capital Markets Private Limited. [Operator Instructions] Please note that this conference is being recorded. I now hand the conference over to Mr. Viral Shah from Dolat Capital Markets Private Limited. Thank you, and over to you, sir.

Thank you, Rutuja. Good afternoon, everyone. On behalf of Dolat Capital, I would like to thank the management of India Pesticides Limited for giving us the opportunity to host their Q4 FY '26 Earnings Conference Call. From the management team, we have with us Mr. Vishwas Swarup Agarwal, Director; Mr. D.K. Jain, CEO; and Mr. S.P. Gupta, Chief Financial Officer. Without further ado, I would like to hand over the call to the management for their opening remarks, post which we will open the forum for the Q&A session. Thank you, and over to you, sir.

Thank you, Mr. Viral. Good afternoon, ladies and gentlemen. I hope you and your family are doing well. I take the pleasure of welcoming you all to the quarter 4 FY '26 Conference Call of India Pesticides Limited. I trust you have reviewed the financial statements and earnings presentation uploaded on the exchanges and our website. FY 2026 has been a defining year for India Pesticide Limited as we continue to strengthen our operational foundation, expand manufacturing capabilities and deliver strong financial performance across business segments. A key milestone during the year was India Pesticides Limited crossing the INR 1,000 crore revenue mark for the first time, reflecting the company's strong execution capabilities and expanding market presence. Consolidated revenue of the year grew by 27.9% year-on-year to INR 1,078 crores, while EBITDA increased by 44.7% to INR 194 crores. With EBITDA margin improving to 18%, PAT for the year was INR 120 crores, reflecting a growth of 45.8% year-on-year. These results reflect our focus on operational efficiency, disciplined execution and strengthening our integrated manufacturing platform. Across the global agrochemical industry, business commissions have gradually improved compared to the previous year as channel inventories normalize and visibility improves across several international markets. At the same time, ongoing geopolitical tensions in the Middle East have resulted in periodic disruptions in global logistics and supply chain planning, leading customers to increasingly prototype dependable and diversified sourcing partners. Customers are increasingly prioritizing reliable supply partners with strong manufacturing capabilities, regulatory compliance and backward integration. India is steadily emerging as a preferred sourcing destination under the global China Plus One strategy creating long-term opportunities for companies with strong technical expertise and consistent execution capabilities. On the operational front, the company has witnessed strong volume growth across key product categories, reflecting improved capacity utilization and strong order execution. Domestic sales during quarter 4 FY '26 increased significantly to INR 183 crores compared to INR 118 crores in the corresponding quarter last year, largely driven by strong demand for herbicides and intermediates. Overall, the company achieved approximately 30% volume growth during the quarter, supported by higher production levels, efficient execution and sustained market demand across domestic markets. From a business perspective, IPL continues to maintain a differentiated position within the agrochemical value chain through its expertise in complex generic molecules, process optimization and backward integration. Our long-standing relationships with domestic and international agrochemical chemical counties continue to support growth across more than 35 countries. Store revenues contributed approximately 39% of total revenues during FY '26, despite temporary pricing challenges in select exported products arising from geopolitical developments. We continue to engage actively with customers across Europe, Australia, North America and South America to strengthen market presence and expand product opportunities. As part of our strategic growth initiatives, we continue to strengthen our manufacturing infrastructure and integrated operations during the year. Development work at Hamirpur facility progressed steadily and supporting infrastructure already established and operational blocks moving ahead as planned. The facility provides a significant pathway for future capacity expansion and incremental growth opportunities over the coming years. Additionally, we will commission an intermediate last was balance integration of one of our herbicides were using in-house indigenous R&D technology, supporting supply chain stability and improving cost competitiveness. Within the Formulation segment, the company continues to witness strong operational progress supported by expanding reach and improve utilization levels. Our formulation capacity has tied up to 10,000 metric tons, supported by our distribution network operating across 18 states through 24 depos. The integration of technical maturing with formation capabilities continues to provide operational synergies, better market responsiveness and strong customer engagement across domestic markets. Our commitment was the church and development remains centered to IPL's long-term strategy. [indiscernible] project engineering capabilities continue to support process innovation in yield improvement, cost optimization and development of new molecules enter intermediates. During the year, the company received multiple product registrations across domestic and international markets, strengthening the future pipeline and enhancing our ability to address evolving customer requirements across geographies. Looking ahead, we remain focused on scaling our manufacturing capabilities, strengthening backward integration and expanding our domestic and global presence. The company continues to evaluate growth opportunities across technical formulations and specialty chemistry will maintaining a disciplined and sustainable approach towards expansion with improving market conditions, ongoing strategic investments, increasing utilization levels and continued focus on innovation and operational access, we believe IPL is well positioned to sustain growth momentum and create long-term value for all the stakeholders. Thank you. Now I will hand over the -- will hand over the presentation to Mr. D.K. Jain. Thank you.

Thank you, Vishwasji. Good afternoon, ladies and gentlemen. I take this pleasure in welcoming you all through the Q4 FY '26 and yearly earnings conference call of India Pesticides Limited. At IPL, our priority during the year remained focused on strengthening operational efficiency, improving utilization levels and expanding integrated manufacturing capability. Despite external market challenges, we continue to execute our strategic road map with discipline while maintaining a balanced approach across domestic and export markets. Our focus on backward integration, process optimization and customer alignment continue to support sustainable growth and improve competitiveness across key product categories. During FY '26, we successfully maintained and strengthened our market position across several existing products, supported by strong domestic demand and improved export traction. Domestic sales during FY '26 increased significantly by more than 50% to INR 183 crores compared to INR 118 crores in the corresponding quarter last year, largely driven by strong demand for herbicide and intermediates. Exports remained stable despite selective pricing pressure in certain products arising from geopolitical factors. On an annual basis, we have achieved and exceeded our target revenue of INR 1,000 crores. Our revenue stood at INR 1,078 crores against INR 843 crores, Y-o-Y, showing an increase of about 28%. In terms of expansion, our capacity enhancement initiatives are progressing steadily in line with planned time lines. Development work at the Hamirpur facility continued during the year, we supporting infrastructure and operational blocks moving ahead as plant. The facility provides a strong pathway of our future capacity expansion and specialty product manufacturing. In addition, the commission enhanced capacity of an intermediate plant towards backward integration on Herbicides using in-house indigenous R&D technology. supporting our supply chain stability and reducing dependency on imports. From a business operations perspective, our formulation segment continues to witness strong traction supported by improved market reach and increased utilization levels. Formulation capacity has now scaled up to 10,000 metric tons enabling the company to better liberate its in-house technical capabilities and strengthen responsiveness towards domestic demand. We also continue to strengthen our distribution network across India, supported by 24 depots and over 340 sales personnel operating across key agricultural markets. Our commitment during research and development continues to remain central to IPL's long-term growth strategy. During the year, the company has received many registrations across domestic and international markets, strengthening the future product pipeline and market opportunities. Our in-house R&D and project engineering capabilities continue to support process innovation, cost optimization and development of differentiated molecules aligned with evolving customer requirements. Sustainability and community development continue to remain integral to our long-term vision. During the year, we strengthened our ESG initiatives across environmental management, renewable energy usage, waste management and operational safety standards. Our manufacturing facilities continue to remain globally recognized certificates across quality, environment and occupational health and safety standards. Through our CSR initiatives, such as Samagra Sudhar and Chuppi Tod; Halla Bol, we continue to support rural development, education, women and child warfare, health care awareness and community engagement programs across multiple regions. These initiatives reflect our commitment to our responsible growth and creating a positive long-term impact beyond business operations. Looking ahead, we remain optimistic about the long-term opportunities for the company supported by improving market conditions, increasing utilization levels and ongoing strategic investment across manufacturing and backward integration. With a diverse product portfolio integrated manufacturing value chain and continuous focus on innovation, our India Pesticides Limited remains well positioned to sustain growth momentum and create long-term value for all of our stakeholders. I now pass on to Mr. S.P. Gupta, our CFO, to take you through the financial details of this quarter. Thank you very much. Mr. Gupta?

Thank you, sir. Good afternoon, ladies and gentlemen. Thank you for joining the India Pesticides Limited conference call to discuss Q4 and FY '26 results. Taking you through the financial highlights for the quarter and full year. For Q4 FY '26, total revenue was INR 271 crores, reflecting a growth of 28.5% compared to INR 211 crores in Q4 FY '25. EBITDA for the quarter increased to INR 46 crores from INR 35 crores in corresponding quarter last year. registering a growth of 31.1%. Net profit for the quarter was INR 31 crores, reflecting a growth of 40.6% Y-o-Y with PAT margin improving to 11.3%. For FY '26, total revenue increased to INR 1,078 crores, as against INR 843 crores in FY '25, reflecting a growth of 27.9% Y-o-Y. EBITDA for the quarter -- for the year was INR 194 crores, registering a growth of 44.7%, while EBITDA margin improved to 18% from 15.9% in FY '25. Net profit increased to INR 120 crores as compared to INR 82 crores in previous year, reflecting a growth of 45.8%. The overall performance were driven by improved capacity utilization, strong domestic as well as over demand and operational discipline across the business. From a geographical perspective, domestic revenue during Q4 increased significantly to INR 183 crores as compared to INR 118 crore in Q4 FY '25, supported by strong demand for herbicide and intermediates. Export revenue was INR 84 crores during the quarter as against INR 89 crores in Q4 FY '25, slight decrease due to political issue in March '26. For FY '26, domestic revenue was INR 649 crore, while export contributed INR 408 crores, maintaining a balanced market mix across geographies. In terms of product mix, revenue from technical and formulations stood at INR 744 crores and INR 311 crores, respectively. On the balance sheet side, the company continued to maintain a strong financial position with disciplined working capital management and low leverage. Net working capital days improved to 223 days in FY '26 from 254 days in FY '25. While ROCE improved to 16.8%, CapEx budget for '26, '27 of India Pesticides INR 45 crores and 400% subsidy INR 90 crores. Funding for these CapEx will be mainly through internal accruals. This continued in presses on strengthening our product portfolio, cost optimization and disciplined capital allocation. We remain confident of sustaining growth momentum and delivering long-term value creation for all stakeholders. With this, we would be happy to take your questions. Thank you.

[Operator Instructions] The first question is from the line of Rahul Jain from Credence Wealth.

Congrats on good set up from us. A couple of questions from my side. So first of all, you did allude that demand continues to be good. So given the current environment and the cost inflation in terms of raw material trade, so what kind of price increases which we have taken till March and post March and at increased prices, the demand continues to be strong. So typically, this is due to the inventory running out? Or is it due to China also increasing pricing on various products now? If you can share some more insights on this.

Actually, China is also increased travel because of the overall geopolitical situation across the bar. The fines are slightly changing on a daily basis. But we also have discussed with our customers, and we have tried to pass on the cost differential to our customer, and we have been successful in convincing them for some of the products. And we feel that we should be able to maintain these prices in the coming months.

SP-8 So. What is the price percentage increase as an average on the entire portfolio basket?

Entire portfolio, it will be difficult to tell because some of the products, they have increased slightly more and some of the quarters, the increase is not that significant. because that depends upon the raw materials, which is getting involved in these technical products, and basically, what we feel that the sulfur based products have slightly increased more. So there, we have to discuss more with our customers, especially for the products where the culture-based products are used as the raw materials.

[indiscernible] volume growth which we have done, how much of it could be due to the new product contribution including contribution from the Shalvis block, which we started in last year and also the contribution from PEDA to call contribution, what was it like in FY '26? And how do we look for contribution from Shalvis block and also PEDA?

Shalvis is now we started one of our technical products. And though we started a bit late, but we have a contribution of about INR 4 crores to INR 5 crores of revenue from Shalvis this financial year. And of course, the volume increase has come from our intermediate PEDA and [indiscernible] side, which we introduced last year with this backward integration facility. And that has contributed significantly to our increase in the revenue as well as volume.

I understand in quarter 3 PEDA has done about INR 50 crores, INR 60 crores. So what was it like in quarter 4? And what is the expectation for this product going ahead in FY '27?

So FY '27, I think we will be utilizing the full capacity of the product because increased the capacity last quarter, which was commissioned only in March. So we hope that this year, we should be able to utilize fully. So this year also will be better than last year.

Give an incremental sales of about INR 150 crores, roughly, from this quarter?

It will be difficult to tell exactly the incremental number, but it will be certainly better than this year.

SP1. Sir, with regards to the Japanese partner scale-up, we have spoken about the gradual scale-up, we started in FY '24. FY '26 is supposed to scale up. So how do we at going as with regards to our Japanese partner sale?

That is going on well sir. Actually, we have -- we are having regular discussions which are on Japanese France. And they have given the forecast for this year and for the next year, which is almost 30% more than last year. And we are also discussing 1 more molecules with them. So we have already submitted the samples, and we are editing the feedback from them.

Last Question, sir. With regards to Shalvis, the 1 block which has started, what kind of contribution do you see that bloc given that you see a ramp-up this year. And also, you had planned a second Shalvis block to start somewhere in September, October '26.

Yes. See, Shalvis, we already have started at dial product which has given us a value of about INR 4 crores this year. But next year, I think we should be able to get at least INR 25 crores from that molecule, plus we are adding 2 more molecules this year. So they will also contribute significantly. So we expect Shalvis revenues to be in the range of at least INR 70 crores to INR 80 crores.

And the second block to start in October?

Yes, I'm assuming that that it will be operation by September, October. So including that, it will be around INR 70 crores to INR 80 crores, including the second block.

And the demand continues to be strong at the current pricing levels.

Demand is okay. I think demand, there is no problem on the account. There is not much of a variation in the price for these molecules.

The next question is from the line of Vidisha from CR [indiscernible] Stock Broking Private Limited.

I wanted to know, could you just repeat what was the revenue contribution from the new Shalvis facility?

It was INR 4 crores during the financial year.

Okay. And so in FY '27, you plan to commercialize additional 2 block. So what is the revenue contribution expected from that and which products will be manufactured?

No, that's for just now the answer. The revenue from the Shalvis facility will be around INR 70 crores to INR 80 crores in the financial year FY '27, including the new block that we are going to construct.

And sir, what kind of margins do you expect next year and working capital cycle?

Margins -- margin ranges, we have projected 18% to 20% EBITDA margin. So margin will be in that range only, and our net working capital has now improved to 223. There is a slight scope for further improvement, maybe by 10 to 12 days less by financial year '27. We have to keep higher inventory since now the demand is coming or customers, they are demanding a bit frequent interval. Earlier, they were giving us quarterly planning. Now they are buying on a spot basis. So we have to keep inventories slight at a higher level.

Okay. Understood, sir. And what is your CapEx plan for FY '27?

Our CapEx plan for India Pesticides is INR 45 crores. And for our 100% subsidiary, crores -- and mainly, it will be funded through internal accruals. We may take a small loan in our 100% subsidiary.

The next question is from the line of Naitik Mohata from Sequent Investments.

Sir, my first question would be for [indiscernible] the combined capacity that we had expanded last year, so that is about 8,500 metric tons, right? So what kind of utilization are we seeing from that facility right now?

The capacity inflation because this is a seasonal product, we may have to stop the plant for about 3 months period. So roughly, it will be around 70% to 75%.

Okay. So sir, the 3-month stock this comes during which quarter?

Normally, it will be from, you can say, August, September, October.

August, September, October -- so sir, so currently, I think post the antidumping on the product and the main season for the product being in a -- so are we seeing any imports for PEDA[indiscernible] . in India now, it is completely being catered by domestic players?

I think it is mostly catered by domestic player, maybe a small import will be there in very, very small quantity, Sometimes some people might have imported long back -- so they may be there. But otherwise, it is primarily by domestic production. At least that has been our contribution for making India effort that we have been able to replace this product totally from import.

So sir, for quarter 1 for this season, are you expecting some big ramp-up in our [indiscernible].

Now I think this capacity but we have now established that should be reasonably sufficient because [indiscernible] -- so it will help some rev for them also. So we should be able to completely cater the Indian requirement by indigenous production.

And sir, under the current increased raw material pricing that the industry is facing. So have we also taken any price increases for times products?

We have to take because the raw material costs have also increased so that price increase we have to take, and we have been successful. In some of these cases, our customers have agreed as the price differential. So that we are able to maintain the same ratio of margins, roughly.

The next question is from the line of Manish Badani from 361 Capital.

I just have 1 to 2 questions. So first question that I have is this [indiscernible], said that the info will be below or more long period average, I think around 94%. So how do you look at the situation? And given the vertical situation in the [indiscernible], so are you intact with your guidance of INR 1,000 crores revenue by FY '21? So these are the 2 questions.

Yes. I'll see -- we know that IMD has given a forecast of reduced rent [indiscernible] this season from 6% to 8%. But the previous history, what we have gone through, there was a new item in the papers that in the past also, there has been [indiscernible] where the rainfall was less, but the overall production did not get suffered. The overall production actually was slightly more than the previous year by 1% or 2%. so we feel that this 6% to 8% below normal rainfall should not significantly affect the overall production unless the rainfall is very, very diverse. -- and very scattered. Our there could be some effect of the El Nino has been talked about a -- so that effect is not very clear. Some people say that it can give a very high range, some day that it can give drought conditions. So that is very difficult to predict as of today. But on this, I think the overall production should remain intact.

Okay. Got it. And regarding the guidance that you have provided, the INR 3,000 crores kind of revenue by FY '27. So are you impact with that guidance? Or is there any kind of a change?

No, no. We are very much intact. And we have a plan to achieve this INR 3,000 crores by March 31. That plan is already in place, and we are working very rigorously on that plan.

The next question is from the line of Yogansh Jeswani from Mittal Analytics.

SP-24. Congratulations to the entire team on achieving INR 1,000 crores.

Your voice is not clear, please be a bit louder, please?

Is it better now?

Yes. Yes.

Yes. congratulations to the entire team for achieving the INR 1,000 crore milestone. And it's a very good set of numbers that we have reported -- so sir, just a couple of questions. On the Hamirpur expansion that we are explaining the 2 molecules that we want to start off in this year, are these totally new molecules from what we have in the current product basket, or are these similar to what we are already producing in Sandila.

No, there will be entirely new molecules, and we are not producing in our Sandila. They will be in addition to these molecules.

Sir, like how we have seen in past the molecules that IPL usually produces not many players in India, there are very few players globally. So are these 2 new molecules also something similar? Or are there enough producers operate in domestic market already?

Sir, I think even with these 2 new molecules, there are very few producers in India. And I think one of the products must be -- we will be the first to produce in India.

Got it, sir. So sir, if broadly, you can share what kind of market size these 2 molecules would have -- like you explained, you will be targeting INR 70 crores, INR 80 crores of top line from these molecules. But broadly, what would be the market size of these domestically and globally?

The market [indiscernible] of these molecules are relatively quite large. We are expecting hardly about, say, around 10% of the market share.

With INR 70 crores, you are saying?

Yes.

Or overall once you scale it?

Yes, about the INR 70 crores, we expect about 10% of the market size because this is the Herbicides side and it is being controlled by one of the multinationals. so we should be able to get around this number.

Got it. And this would be a domestic product, sir? Or these will be export?

Primarily, it will be for export. And we are setting with our central insecticide board authorities, whether we can introduce that in India.

Got it, sir. And second question would be on [indiscernible]. So like you were sharing that there are more players likely to come in for both these things. So are you seeing any competition coming in now? Or do you still see that the margins would be maintained for this season? Is that a broad guidance from your side?

The margins would be more or less same. We are not working on very high margins. So everybody who is going to produce, they will also have look forward for this range of margins. And of course, there are pretty large, the margins are slightly lower than our overall average. We are getting better margins in other products, but it is a volume-driven game, so we get good revenues in this.

Got you, sir. And sir, on your Sandila plant, what can be the potential of it given the small CapEx that we'll be doing again this year?

Because now Sandila site is more on full. There is no further space available for expansion. So this year, we would be putting up 1 intermediate and 1 technical product there. plus we will be augmenting the existing plants for all capacity additions or whatever the digital requirement to improve the overall efficiency. We will be having some facilities there. Hence, the defect is slightly low.

We are having some balancing equipment to some of our products to end the total capacity.

The next question is from the line of Saket Kapur from Kapur & Company.

Sir, as you have alluded in your opening remarks that exports were on the lower side because of the geopolitical setup. So currently, if you could just throw some more light, how did current business environment has shaped up for this current quarter and some more thoughts on the same.

The export was slightly less, actually, what happened last quarter because of our one of the major products is domestic-oriented. Hence, the domestic sales were dominating exports were slightly less I think a 5% less than the last quarter. And this quarter also, we feel it will be quite reasonable. We are going reasonably good in export also. So -- but the ratio between domestic and export would be filled to the last quarter.

And sir, taking into account the backward integration, the introduction of new products and the current setup, what is our expectation in terms of the the incremental turnover, increase in turnover or the trajectory that we are anticipating for the current year, including how will our margin shape up with the type of pressure we have on the -- if you could just give some more color on both these aspects.

Sir, we are expecting a revenue increase of about 15% to 20% as we have given the earlier guidance also. So that expectation we are having for this year. And for backward integration -- with backward integration, we are able to maintain our margin even though the other costs are slightly more, but the backward integration we are able to overall maintain our margins.

So EBITDA margin of 18% holds good, sir, for this year also?

Yes.

Okay. Sir, when we look at our capital work in progress, the closing balance is at INR 68 crores. And Guptaji, as you have mentioned, sir, that we will be spending INR 40 crore on stand-alone and INR 90 crore CapEx on the subsidiary what will we attribute this closing balance of INR 68 crores too, And when does this get capitalized?

Out of INR 68 crores, mostly -- for 100% subsidiary sales. India Pesticides base side has only INR 18 crores of CWIP, majority is in Shalvis. So once our second plant, it becomes an operation in Shalvis it will be capitalized. For our new this capital work in progress, some part may be capitalized in Q4 and balance will be capitalized in FY '27, '28.

Okay. And sir, for the borrowing part also, we find our -- noncurrent liabilities or the long-term borrowing, if I could use the term, at INR 31 crores. So we have drawn funds -- a long-term fund -- long-term borrowing already. And what is our blended cost of funds, sir?

We have taken term loan for our new 100% subsidiary. It is around INR 27 crores. And our cost is around 8% for this call.

Okay. And for our working capital, what is our blend -- cost of fund?

It will be slightly less since we are borrowing a lot of short-term fund against our FTR. So we are paying 50 basis point over FDR. So it will be, I think, blended will be around 7.2% to 7.3% for working capital.

And when is our credit rating due, sir? And what is the current rating?

Credit rating is a plus, and our rating will be to you in, I think, September only.

The next question is from the line of [indiscernible] [indiscernible] Stock Broking.

You had earlier guided for INR 3,000 crores revenue targets for FY '28, '29. On the road map for the Shalvis -- so now Shalvis, we can expect it to ramp up to approximately INR 200 crores by FY '28. Then your current facility can -- how much can it provide us its stake and we in the rest concern?

INR 3,000 crore turnover has been guided for financial year 31. Yes. By March 31, we expect to reach INR 3,000 crores -- and thereby, we have got plans already in place. In Shalvis, we expect the total revenue by March 31 to be about INR 1,000 crores. And rest, we will be generating from our existing plant at Dewa Road, Sandila and our formulation facilities.

Okay. So your existing plants can go up from currently INR 1,000 crores to INR 2,000 crores and the rest INR 1,000 crores from Shalvis. Is that understanding correct?

Yes.

The next question is from the line of Aditya, an Individual Investor.

Congrats on the good set of numbers. My question is that given this ban on Paraquat across India, do we have any products that we say this gap?

No, I don't think our product range has any product we can substitute [indiscernible]. I have a doubt we have to check because we have a Herbicides primarily used for the rice field -- so -- but we have to test whether it can be used for in place of [indiscernible]. We are not very sure.

[Operator Instructions] The next question is from the line of Ajay Desai, an individual investor.

Congratulations on great FY '26. Sir, my question is regarding the dividend policy of the organization because INR 0.75 than being paid -- and current year, with the kind of profitability we had, which is INR 120 crores, we would have given easily INR 2. So any policy, sir, that will follow as payout to the project?

We have a dividend policy, which is providing 5% to 15% of net profit. As you know, we have a lot of CapEx plan for our subsidiary and our turnover is growing. So we have to fund a lot of increased working capital through our internal accruals. So because of all these factors, we have taken decision to continue earlier dividend out.

The reason I'm asking you is because it gives the wrong message to the market. And effectively, you see EBITDA at 18% and our debt at a 0 level. Negligible debt, we would have easily taken debt and utilize it and future expansion also we can definitely build around some cost on the debt side. And then like SPO.

Sorry to interrupt you, Mr. Desai, that your voice is breaking. So we are enable to hear you clearly?

So now it is clear?

Yes, please go ahead.

From the business side...

We are not able to hear you, again, sir.

What I'm saying that we are -- from the business side, we are doing great. I strongly shared -- only from investors value creation point of view, we are lacking heavily. And sir, like [indiscernible], which happened at INR 296 still we are struggling at 50% price where there is a big -- and this was -- investors are suffering neither in not getting anything in terms of dividend not even getting anything in terms of value application. So you will have to give assets to the market. Otherwise, it's 5 years like from '21 to '26, investors losing money or not able to and when the market went through the roof, investors of India Pesticides could not get anything, sir.

Sir, this is a very difficult question while you asked because that depends upon the market conditions. We have considered the funds just because to overall increase the investor value in the sense that we don't take loan, but we try to improve upon our working and the revenues by internal approval. Taking that view, we have taken this decision and I think [indiscernible], if we see ultimately, the investor value will increase by converting funds INR 0.50 more or INR 0.25 more dividend will not significantly make investors very happy.

Sir, I think -- any way sir, I'll leave it up to you, you are a better judge, but then investor value creation should be one of the key responsibilities.

We are trying to increase the overall revenue. We are trying to increase the profitability. We are trying to invest, whatever the earnings we are investing. So that is the best way to increase the overall work at the company.

Sure, sir. But sir, then the SPO, it since was wrongly priced at $300 because post that hardly investors have been able to see that kind of evaluation. So probably the INR 700 crores taken out by the promoters was not a correct stuff. So any way, sir? I'll leave it up to you. We can look at buyback also and try to give some confidence to the market.

The next question is from the line of Saket Kapur from Kapoor & Company.

Sir, only a concluding question, given the current geopolitical setup in terms of severe disruption in the supply chain aspect, crude related and also in all aspects of the supply chain. How have -- are we insulated or -- if you could just give us some understanding, how is the space currently facing the [indiscernible] and prepared to face these challenges that will or may or may not attract to going ahead. If you could just give you a remark on the fence.

Sir, you are absolutely right. The situation from -- in terms of supply chain is very critical. We have done some long-term arrangements with some of our suppliers, who are able to bring the material to us in time, plus for the local suppliers where we don't keep long inventories, there, we are able to sustain because of the continuous supply, though at a slightly higher price. So -- and we have discussions with our customers to manage this increase in price. So that is how we are able to maintain. And we feel that in the coming quarter also, we will be able to do that. And the critical raw materials what are required for our long-term perspective that we have already arranged.

Thank you. Ladies and gentlemen, that was the last question for today. I now hand the conference over to management for closing comments.

Thank you very much for sparing the valueable time. If you have any further questions and queries, please do get in touch with our Investor Relations team. They will be happy to give you the information. Thank you very much once again, and have a good day.

Thank you. Ladies and gentlemen, behalf of Dolat Capital Markets Private Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.