Meghmani Organics Limited (MOL.NS) Q2 FY2026 Earnings Call Transcript & Summary

Ladies and gentlemen, good day, and welcome to Meghmani Organics Limited Q2 FY '26 Earnings Conference Call hosted by Arihant Capital Markets Limited. [Operator Instructions] Please note that this call is being recorded. I now hand the conference over to Mr. Ayush Chaturvedi. Thank you, and over to you, sir.

Thank you, Shurti. Good morning, everyone. We thank Meghmani Organics' management for providing us the opportunity to host the company's Q2 earnings call. From the management, we have today Mr. Ankit Patel, Chairman and Managing Director; and Mr. Nishant Vyas, Investor Relations. Without taking further time, I would like to invite Mr. Patel for his opening remarks, post which we can have a Q&A session. Over to you, sir.

Thank you, Ayush-ji. Good afternoon, everyone, and thank you for joining us on our quarter 2 FY '26 earnings call. I believe you have got a chance to go through the financial results and investor presentation uploaded on the stock exchanges and the website. Before we move to the quarterly and half yearly financial performance review, I would like to share a few recent developments in the company. I'm pleased to share a new milestone Meghmani has achieved. We have been successfully certified for 3 globally recognized management system standards, which is ISO 20400 for the sustainable procurement guidance, ISO/IEC 27001, which is information security management system, ISO 37001 for anti-bribery management system. This certificate reaffirms our strong commitment to ethical governance, data integrity and responsible business practices across all the functions. I'm also pleased to share that we have embarked on our sustainable reporting journey, reflecting our commitment to environment, social and governance principles. Sustainability is now an integral part of our core values and corporate strategy. As a testament to this commitment, we will be publishing our maiden sustainability report next month. Moving to our quarterly performance review during the review. During the quarter, we witnessed headwinds arising from the U.S. tariff creating pressure on our export volumes in both the segments. However, our strategic focus on enhancing the product mix, broadly stabilizing raw material prices and our disciplined execution has enabled us to navigate this quarter effectively. On the product mix side, apart from technical registration, we are equally focusing on formulation business, which are not just the conventional formulation, but our new combination formulations. This contribution from the new formulation business is gradually increasing quarter-on-quarter, resulting in improved profitability. On a stand-alone basis, in quarter 2 FY '26, revenue stood at INR 558 crores and EBITDA stood at INR 70 crores, up by 5% and 71% Y-o-Y, respectively. Our profit after tax grew to INR 43 crores against a profit of INR 9 crore in the corresponding quarter previous year. This was on the back of improved product mix and broadly stabilized raw material prices. If we talk about the revenue mix in quarter 2 FY '26, Crop Protection constitutes about 79% of the total revenue, while the balance 21% comes from the Pigment segment. Now let us look at the segment-wise performance in the quarter 2 FY '26. In Crop Protection segment, the production stood at about 10,136 metric tons and the capacity utilization for the segment was at about 72%. Revenue for the segment stood at INR 443 crores, which is up by 11% year-on-year basis, and EBITDA for the segment increased by 73% year-on-year basis to INR 75 crores. EBITDA margin for the segment stood at nearly 17%. For Pigment segment, production stood at 3,759 metric tons and capacity utilization for the segment stood at about 45%. Segment reported revenue and EBITDA of INR 115 crore and INR 4 crore, respectively. EBITDA margin for the segment stood at 3.5%. For the half year ended 30th September, the revenue was up by 22% to INR 1,150 crore compared to INR 944 crore in the corresponding previous year. EBITDA grew by 173% to INR 151 crore compared to EBITDA of INR 55 crore in the corresponding previous year. And the profit after tax grew to INR 83 crore against a profit of INR 2 crore in the corresponding previous year. In the Crop Nutrition segment, along with the domestic field activities, we are conducting extensive field trials of our products across various countries, and we have already secured registration in a few markets. To further strengthen our market position, we'll be introducing a few more products in this financial year. In the Titanium Dioxide segment, we continue to cater to the various industries like ceramics, rubber, paint, plastic, textile. However, this segment's profitability in the quarter is getting impacted mainly because of 2 factors. The first factor is the price realization is still not improving even after the antidumping duty has come. Second thing is the raw material price have gone up drastically, increasing our input cost. So because of these 2 factors, the Titanium Dioxide segment is still under pressure. On a consolidated basis, in quarter 2 FY '26, revenue stood at INR 577 crore and our EBITDA stood at INR 52 crore, which is up by 6% and 70% Y-o-Y basis, respectively. Profit after tax stood at INR 12 crore against the loss of INR 9 crore in the corresponding quarter previous year. And on the half year basis, consolidated revenue and the EBITDA stood at INR 1,191 crore and INR 119crores, respectively, which is up by 24% and 27%, respectively. Profit after tax stood at INR 24 crore against a loss of INR 26 crore in the previous year. As of 30th September 2025, on a stand-alone basis, our total debt stands at INR 597 crore, comprising of INR 454 crores in short-term debt and INR 143 crore in long-term debt. And on a consolidated basis on the total debt stands at about INR 836 crore, which is -- which includes INR 479 crore in short-term debt and INR 357 crores in long-term debt. Till 30th September, we have made the debt repayment of approximately INR 90 crore. So to conclude, our strategic focus on enhancing our product mix is building positive results. This has enabled us to navigate this quarter effectively despite of the headwinds arising from macroeconomic uncertainties. Lastly, our long-term growth prospect remains intact given our state-of-the-art infrastructure plant capability, wider product range, geographical reach and the strong team. With this, I hand over the call to the moderator to open the floor for questions and answers. Thank you.

[Operator Instructions] The first question is from the line of [ Prit from Wealth Finvisor ].

Sir, the question I have, Ankit, is related to titanium dioxide. In your last talk at -- I think you mentioned that the prices have inched up to somewhere around INR 190 to INR 200 a kg or something of that sort, right?

Yes.

So can you first share some trends on what those current prices is looking like?

Thank you, Prit bhai. After that -- our last quarter's conference call, there has been further pressure on the pricing front. There has been a reduction in the price realization. Chinese have started even further reducing the price and dumping in the market. At the same time, the inventory which was expected to be liquidated, that has got extended. One of the main reasons is the rain season got extended. And because of the rain season got extended, the consumption pattern in various industries got impacted, which has led to the pressure in the consumption and the market of titanium dioxide.

Okay. Understood. So what is the guidance going forward? I feel, Ankit, based on the past calls, I think the idea was that by Q3, this would have started stabilizing and started becoming at least break-even, if not losing money and Q4 will start making money, right?

Yes.

Now based on the way you see things on the ground, how do you assess this going forward? What should we pencil in? What should we expect now?

So 2 factors has come in after the first quarter. So one of the major factor is the input cost. The key raw material prices have shot up drastically. And that has created a problem as far as the cost of the product is concerned. That is one factor. And the second thing is the realization factor of the product, which I already mentioned that the realization is still not improving even after the antidumping duty. So these 2 factors are creating a major problem. We hope that this situation will not last for long. Raw material price should go down going forward. At the same time, the realization should gradually as the demand will improve, realization should also improve.

So do you have any sense that by when do you think this will happen, say, by Q4, by next year, Q1? Any indicative sense?

It would be very difficult to gauge that because in the past, whatever we have informed looking at the market potential, currently, because of the global macro factors, things are very volatile, and it is a little difficult to predict when the things will start improving. We hope that this should improve within a period of next 2 quarters.

The next question is from the line of [ Mohit ] from Subh Labh Research.

Ankit bhai, my first question is again on titanium dioxide only. So what I understand from reading is probably Indian Paint Association has reached out to High Court of Kolkata requesting an ADD removal. So what's the status? Is it removed? Or is it in the interim? Is it still there? If you can throw some light, your understanding about the same?

Yes. So after the antidumping duty came in the month of May, Indian Paint Association opposed it in Kolkata High Court. And unfortunately, the decision came in their favor. But it is still the antidumping is not being removed completely. The decision has gone back to the DGTR, the governing body for the antidumping duty, and they need to rework and correct the lapses in the process of approving the antidumping duty, which DGTR has already started doing it. And in the meantime, antidumping duty, which is already announced, will continue to be collected by the customs department till the final judgment from the DGTR comes.

Understood. So you're saying in the interim, the duty remains, but if, let's say, tomorrow, there's a removal, I mean, there's a chance of removal probably tomorrow. I mean, when the DGTR again comes back with their decision?

Logically speaking, there is no chance of removal because at the first date, they only announced the antidumping duty. And if they remove then they -- it will be negative on their part that what detailing they did. So there were -- all the things were very, very clear, but certain things, the lapses were there in the system, which they are making it correct. We believe that over a period of next 2 to 3 months' time, that should be taken care of. And then there will be a final notification, which hopefully should be in the favor of the manufacturing industry of TiO2.

Understood. Understood. Ankit bhai, my second question is again on TiO2. And pardon me if my assumption is wrong, but it seems that we are a little conservative for the TiO2 pursuit at a time when ADD can help us gain significant headway in the sector. So because the volumes or -- so the sense we get is probably we want to do this business profitably in the coming times. But it seems that if we can forgo profit in short-term to gain wallet share -- higher wallet share, that seems to be a better strategy. I mean, that's my assumption. But if you can help us with your thoughts and opinion also on this -- because it's already, I think, 6 months since the duty is there, but we are not unable to see any material client will. I'm not talking about revenue in the segment, but at least bigger client wins, account additions, some ball rolling in the segment, Ankit bhai.

Mohit-ji, you're absolutely correct. That should be the right strategy, and we were working on that ground only. But while going ahead with that ground, one of the key raw material prices started going up drastically and it has increased significantly and which impacts the more we make, more we sell, the loss is even higher, which was not expected. This is not the normal scenario of what we have been seeing. And that is the reason we have become a little more conservative. So what you are saying is correct.

Understood. Understood. When do we expect this raw material price correction, Ankit bhai, is there -- I mean, at the end, are we seeing something -- some softening there?

Definitely it should start softening because the raw material price, which we are seeing is not a sustainable pricing level. It should improve. And when it will improve? Very difficult to say. But we believe that over a period of next 2 quarters, things will be back to normal.

Getting your point. Getting your point. Ankit bhai, my last question is again on TiO2. And I'm asking this with a very limited understanding of the technicality of the product. Since we have got this ADD opportunity, and there are bigger players in the industry, some Australian and some Chinese players in India. Is it not a good time to look for a technical tie-up where we can also gain some product market and we can reach out to the bigger players -- the bigger paint players in the industry so that it gives us a lasting advantage in the sector to start with?

So Mohit-ji, when we meet as an industry, be it the Indian producer or the global producer, everyone is looking at India from the growth perspective that titanium dioxide, highest growth will happen only in India. Currently, the market is somewhere in the range of 450,000 tonnes to 5 lakh tonnes. It is expected to grow significantly, significantly because we have got 140 crore people, the consumption pattern is very high. And so that will drive the growth of titanium dioxide business significantly. But the current time, when the timing is tough, when the realization profitability is a little challenging for everyone, not only in India, but globally and China level also, people go a little cautiously. If the market is good, if the time is good, there will be a lot of many opportunities arising out of it. But in a tough time, you have to hold a little tight, you need to maintain the position. And we believe that the good time will come very soon. No doubt about it. We have been working and we have been talking with a few companies. And -- but the market -- once the market will start improving a little bit, then there will be interest by the companies.

Getting it. Very helpful, very helpful. I'll join the queue back. And good set of numbers Agrochemical segment, Ankit bhai.

[Operator Instructions] The next question is from the line of Ayush from Arihant Capital.

So this goes out to Mr. Patel. So if you could then also -- so we saw that in the Crop Protection production volumes have declined slightly, but the EBITDA is still showing quite a significant bump. So if you could throw some light on what's driving this volume decline? And is this coming in the EBITDA bump coming in from deliberate portfolio management? Or are we missing something?

So Ayush bhai, particularly in the Crop Protection segment, we have been evaluating internally the product-wise profitability. And based on the market condition and the profitability, we play with the product portfolio and the strategy. So there has been change are in the strategy as far as the product portfolio is concerned, which we keep on doing regularly, looking at the market condition and the growth potential. And because of that, the low-value high-volume product has gone down and the high-value, low-volume product where the profitability is a little better have been given priority. So this has led to decrease in volume and improving profitability.

Excellent. Secondly, on the working capital front, we see quite a significant surge in the trade receivables. So if you could throw some light on that, like are we -- why is it getting so stretched? I believe we are at around a 50% bump from March '25 levels.

So yes, the receivable period was around 97 days, which has gone to 126 days. Again, as Crop Protection business, it is high credit-oriented business. the more we go aggressive, more we do the business, receivable period goes up. At the same time to manage the working capital, we have started working on the inventory reduction. Over there in the inventory, we have started -- we have reduced the inventory days by nearly 18 days. At the same time, the payable period, we have increased by almost 10 days. By doing this, the net working capital days has remained more or less in the same range.

All right, sir. So last one on the innovation momentum and the new product launches. So if you could share or indicate what sort of EBITDA margins these new products have vis-a-vis the legacy portfolio? So as to we'll be able to track the anticipated margin improvement on a medium- to longer-term scale?

Ayush bhai, compared to the conventional old product and the new product, we normally don't differentiate or disclose the profitability criteria, the margins. So it is a confidential matter.

The next question is from the line of Keshav from Counter Cyclical.

So Mr. Ankit, my question also pertains to the titanium dioxide. It is proving to be a really expensive misadventure for the shareholders that whatever improvement we are seeing in the agrochem business, all of it is going down the drain in the titanium dioxide. The hope was antidumping duty, then the hope was that let the channel inventory go away, but it seems that it is an endless journey of losses. So in your best judgment, when do you foresee this division breaking even? And if not, then is there any deadline that if we are unable to turn around this division by this time, then we can -- then we will shut it down or divest it or it is like a government company, it will keep on making losses for eternity and there is no such deadline. It will just -- it's an endless journey of losses.

Keshav bhai, I understand what you are saying. Definitely, we are not a government company. We are a private company. And whatever as a company, as a management, we have informed to the shareholders that has not gone into right direction, be it antidumping, price realization, utilization of the plant growth. So we understand the thing is we have been working on various other things. But rather than giving you the wrong promise, as a company, as a management, we will be taking the right call, looking at the market condition for the growth potential of the segment. We will not like to unnecessarily spend and waste money whatever we earn from the other division. There is a clear strategy, and we have been working on it, how to reduce the loss, how to improve the profitability, everything. And the right actions is being taken right now. And we are very positive as far as the growth potential of the company is concerned. So a point very well taken. I understand what you are saying. But believe me, I don't want to give you the wrong assumption or wrong judgment when we'll be able to turn it around. We have been working on it, but somehow the time is not correct, and that is creating the problem for us. But whatever the right strategy we have been working, we'll be letting know the investors at point-to-point -- time-to-time basis, sorry.

The next question is from the line of Rahul Jain from Credence Wealth.

I'm sorry, Ankit bhai, because of a previous call extension, I joined a bit late. So pardon me if I'm repeating the question. So we have done very well on the Agrochemical side, and I just heard a couple of minutes back with regards to you talking about going for high-value but low-volume kind of products. So if you can elaborate more in terms of the reasons for the success in Agrochemical division and that too at a time when the overall industry is having some issues here and there, whether it's domestic or exports, including the erratic rainfall, which has caused a lot of problems on the domestic front. So just to understand what has helped us to report such a good performance on the Agrochemical side?

Rahul bhai, the Agrochemical segment, we are also facing challenging period because in overall Agrochemical segment for us, almost more than 80% revenue comes from the export market. And we have been -- everyone knows about the global macro factors and the U.S. tariff-related issues, which is not just impacting the business for the U.S. market point of view, but there are -- there is already an indirect effect on a lot of other markets also. So as a make money, we are also one of the players where we also face this kind of problem. But we have been working on one thing where we are focusing more on formulation business, where the realization is a little better than the technical field. This was going on since many, many years as a strategy. And in the future also, we'll be increasing our formulation product portfolio to have a better price realization. That is one thing. As far as the Indian market is concerned, no doubt the extension of the rain has created a major problem for us, about 15% to 20% revenue comes from the Indian market. So we are not that much impacted because of the extension of the domestic rain. But yes, there has been some impact, no doubt about it. So provided the domestic season and the global macro factor would have not impacted, we would have done a little more better than this. But because of this factor, we are at this level.

Sure. So within exports, which is roughly 70% and 80%, how much is technical and how much is formulation?

Approximately 2/3 is the technical, 1/3 is the formulation.

Sure. And on the technical side, so any kind of green shoots which are visible in -- see, volumes and demand had picked up in last 2, 3 quarters. But I understand there was no pricing changes in terms of the uptick. So any kind of green shoots which are visible to you, which tells you that things are gradually still better, improving and probably you could see some much better times maybe a quarter down the line?

So the good thing is previous 2 years were very, very tough time where there was a lot of inventory in the global market. The good thing is this year, that inventory has wiped out and there is a good demand, no doubt about it. Whenever we speak to different markets, various customers, we get the same feedback, there is not heavy channel inventory. It's a routine inventory, which is a very positive thing. And globally, the demand is also very good. So people are continuously buying. That is a positive thing. But at the same time, the global macro factors and the tariff-related issues is creating a problem where customer is not going very aggressively. They go very step-by-step cautiously. And -- but going forward, demand will continue. That is a very good thing. And once the demand will continue going forward, there will be a little improvement in price realization. It will not be a great increase in the price like what we have seen from the year '20 to '22. That was one of the scenario, but there will be a little improvement in price realization in the next year. That's what we feel.

Okay. And within technical, any -- I know -- and I'm not asking for product names, but if you could give us some hint in terms of is it like certain products are doing much better for us typically?

So I would say, it's a cycle for each product. Sometimes a few products do good, sometimes other products do good. But we have got a quite fragmented product range, a good amount of product portfolio now, which we were not having before 5 years. And because of this expanded product range and the formulation, we have been able to gain market share. We have been able to realize product price a little better. So that is being going on. And this strategy we'll continue to work on.

Sure. Just one last question, if you allow me. Sir, with regards to the new product, again, not asking specifics in terms of margins or anything else, but suppose you have a product basket of INR 100 today, say, on the technical side. What proportion of that would be coming from new products which you have introduced, say, in last 3 years?

Frankly speaking, you know we don't disclose such kind of things different how much revenue we have been getting for product-wise and new product and the old product. But going forward, the growth will happen from the new products only, definitely. We will not be expanding the capacity in the old products. Wherever there is a higher profitability only, we'll be focusing on those products.

The next question is from the line of Sunil Jain from Nirmal Bang Securities.

Yes. This is more related to TiO2. So we are incurring around EBITDA loss of around INR 25 crores each quarter. Are we taking any step to reduce this as the things are not in our favor? And what type of step we are taking?

Sunil bhai, yes, definitely, as a management, we have been working continuously to reduce the loss and come to the profitability. In the past, whatever actions we have taken, so far, we have not been that successful. In the current market scenario also to reduce the cost because the raw material input cost has gone up drastically and the price realization is still not improving. So we are going a little cautious. We are not going very aggressive. If we go more aggressive, then the loss will increase. So we want to reduce the loss. So because of that, we are going a little cautious.

So in current scenario, this is what the minimum loss which company has to incur?

We are working on it. We hope that in the third quarter, there will be a reduction in the loss.

And can you talk about nutrition product, any development or anything which you can share? Or there is an improvement in the revenue and also marginal improvement in EBIT in that particular segment. If you can talk about what you are seeing in the next second half?

So as far as the Crop Nutrition segment is concerned, we are very, very bullish in this segment. In the next 2 years, it will drive significant amount of growth. We have been introducing a lot of new products in this segment. At the same time, being the new concept, nano urea and other products being the new concept in the market, we have been doing a lot of field activity. And this, we are not doing only in the Indian market, we have been doing into global various other markets. And we have got a few registration in different markets. We have started getting the trial orders from those markets. Once the trial order will be successful, there will be repetition volume, repeated order with a higher volume will be there. And so -- and number of products also, we have been increasing in the same product range. So we are very bullish for the Crop Nutrition segment, and that will show the tremendous growth going forward in next 2 to 3 years' time.

So in this quarter, we see that there is a sharp jump in the revenue, though the revenue total overall is not so great, but from INR 14 crores to INR 23 crores. So was there any specific order which you had supplied to international market of nano urea?

So yes, not only in the international market, but also in the domestic market. As I have told that we have been doing a lot of field activity, demonstration so -- and registration activity. Now we have started getting registration and positive response from various markets. And leading to that, there has been increase in the order book, which will -- which is driving the revenue growth. And going forward, there will be improvement in profitability also.

So nothing one-off in this quarter revenue of this nutrition business, it's a regular business?

Yes. So there has been improvement, no doubt about it. Because the base is small, absolute value looks small. But going forward, we believe that there will be a significant amount of growth happening. So just to -- we are very bullish. So next financial year, '26, '27, we would like to take the revenue in the 3 digit. So -- and we are very optimistic that we will be able to do it.

[Operator Instructions] The next question is from the line of Rudraksh from ithought Financial Consulting.

I wanted to get an understanding on the CPC Blue segment of ours. Like how are the pricing and volume trends in that segment?

Yes, Rudraksh-ji, particularly in the CPC Blue and Green segment. Again, for that business for us, more than 75% of the revenue comes from the export market. And U.S., Europe are the 2 major markets for us. And because of the U.S. tariff-related issues, there has been impact in demand from the U.S. market point of view. There has been some impact in the European market also. And because of that, there has been reduction in volume as well as revenue. We hope that there will be very soon trade deal between India and U.S. if that happens, in that case, there will be reasonably good demand going forward. But still, as far as the growth potential concern for pigment blue and green, it is relatively stable business. There will not be significant growth potential. We would like to run this business at optimum level.

Understood, sir. And when you say, sir, that Europe and U.S. have affected our business, in volume terms, what kind of percentage are we thinking about?

So volume terms, you mean that growth in the volume?

Yes, degrowth in the volumes that we would have suffer [ indiscernible ].

There has been reduction by to the tune of 15%.

Understood, sir. And has that also resulted in any price reduction?

I think the prices are running at the bottom level. So it is not going down any further. So prices are more or less in the same range.

And would that be around INR 350 to INR 400 per kg? Is that a correct observation?

You can say that, yes.

[Operator Instructions] The next question is from the line of Ayush from Arihant Capital.

So my question now is on the product pipeline. We had around 780, 790 registrations as of March '25. So if you could indicate what sort of expansion we can see going ahead? What sort of products are in the pipeline? And if you could also share what's the next 2, 3, 5 year going to look like for the Crop Protection segment?

Yes. Ayush-ji, there will be continuous growth happening in the Crop Protection segment. And to grow in this segment, we need to keep on investing into new products, new registration development and everything. So as a pipeline of the growth potential, we have lined up -- up to 2029, we have lined up new product range, new registration, data generation, everything in various markets. So that will continue. And every year, we'll keep on adding in this segment. So going forward, for the next 4 to 5 years period, we see double-digit growth happening every year on a year-on-year basis. So we'll see significant growth happening in Crop Protection segment going forward.

And this will largely be driven by new products?

Largely driven by new products, yes.

Okay. Okay. So on that now, if -- are we targeting a particular segment like herbicides or are we filling in our portfolio gaps? So if you could throw some more light on how the bigger picture looks like for the portfolio, how it could pan out? And what sort of products we could see coming up?

So as far as the strategy of the product selection is concerned, we look at 2, 3 different point of view. One is from the market growth potential point of view, and there should not be many, many players looking at that product. That is one of the criteria we look at it. At the same time, the chemistry and manufacturing capability point of view, whether we will be able to make it, how backward we can go for that product. So technicality point of view, whether we can handle this product or not. So these 2 factors we keep in mind. And looking at that, it can be anything. There is no specific that we only look at a few products. It can be anything.

Okay. So not targeting any particular segment like herbicides or fungicides, okay.

No.

Got it. So yes, now shifting gears to TiO2 now. So we see that it's a strategic project and it potentially it can become quite big. Initially, we are facing some teething issues. Of course, but if you could share with us if you have any contingency plans, like what is the plan A, B, C? What can we do in the immediate future to sort of mitigate the pain that we are encountering? And also on a medium- to longer-term, do we have similar plans to get into backward integration so as to please manage the margins, own the whole value chain or get into the other segments like enhance the phthalocyanine range. So if you could -- yes.

So particularly in the Titanium Dioxide segment, we did the project selection based on the growth potential, market demand point of view. significant import was coming and the Make in India policy, we selected this project. And going forward also, there is a tremendous growth in the product demand point of view in India. So based on that, we selected, it was getting aligned to the Pigment segment also. Unfortunately, the market scenario has not been very positive. One of the factor is that China dumping the product, not only in India, but globally in this market. The main reason is Chinese real estate market has gone down drastically. That led to very less demand of titanium dioxide in China. And then Chinese companies started dumping in U.S., Europe, Latin America, India everywhere. Again, in Europe, antidumping came. U.S., there is extra tariff. In Latin America, Brazil is one of the market over there also, there is antidumping duty. So it was getting restricted day by day for Chinese companies to sell, where to sell the product. So India being the nearest and the most growth potential market, they started dumping on into Indian market. Over -- in India also, we brought in antidumping duty, but it came relatively less compared to other markets like Europe and LatAm and all. So for them, it becomes more easier to dump the product in Indian market. Now we have been working on a few strategies. First of all, how to reduce the loss and improve the operability with better realization. That is the first priority. Backward integration here doesn't work, because the raw materials are very, very basic. So we are not planning to go for the backward integration. Forward integration also, we are not looking at it because the markets are paint, ceramic, textile, rubber. So we are not looking at the forward integration also for the time being. So if you ask me the road map going forward strategy A, B, C, I'm sorry, as of now, backward and forward integration strategy is not there. Improve the operation and reduce the loss is the first target. And we have been working on a few other options. So far, there is no significant improvement in those strategies. If there will be some improvement going forward in those strategies for the betterment of the shareholders, investors, we'll be announcing in the market.

Sure. That was very helpful. So I understand that going ahead, the prime focus and the prime growth driver is going to be the Crop Protection segment, and largely it's going to be the new products that are going to drive the growth ahead. Excellent, sir.

As there are no questions from the participants, I now hand the conference over to the management for the closing comments. Over to you, sir.

On behalf of the management, we thank you for joining us today. We appreciate your trust and support on us. With this, we hope that we have been able to address most of your queries. In the case of further queries, you may reach out to Mr. G.S. Chahal and Mr. Nishant Vyas, and they will connect with you offline. Thank you.

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