Shree Pushkar Chemicals & Fertilisers Limited (SHREEPUSHK) Earnings Call Transcript & Summary

Good evening, ladies and gentlemen, and welcome to Q2 and H1 FY '22 Earnings Conference Call of Shree Pushkar Chemicals & Fertilisers Limited. This conference call may contain forward-looking statements about the company, which are based on the beliefs, opinions and expectations of the company as on date of this call. These statements are not the guarantees of future performance and involve risks and uncertainties that are difficult to predict. [Operator Instructions] Please note that this conference is being recorded. I now hand the conference over to Mr. Punit Makharia, Chairman and Managing Director of Shree Pushkar Chemicals & Fertilisers Limited. Thank you, and over to you, sir.

Hello, and very good evening, everyone. Today on the call, I'm joined with Mr. Deepak Beriwala, our CFO; and Mr. Nitesh Pangle, our Company Secretary and Compliance Officer; and Oriental Capitals, our Investor Relations partners. Friends, we have uploaded our investor presentation and financial results on the stock exchanges and the company website. I hope everybody had an opportunity to go through the same. Now I will walk you through the industry updates followed by our financials and operational performance for Q2 H1 FY '22. As the situation is driving to normalcy and economic activities are picking up, we are also witnessing business uptick across our business segments. We have been able to increase our sales volume by 42% on a consolidated basis for H1 FY '22, and 75% on Q2 FY '22. Similarly, on consolidated levels, volume in chemical business grew by 38% for H1 FY '22. And for fertilizers, the volume grew was 43%. The boosting volume is also because of enhanced volumes from our subsidiary, Madhya Bharat Phosphate Private Limited, which we acquired last year. Since now, we have enough capacities and are continuously increasing our capacities simultaneously, and the fact that we are present across India with Kisan Phosphates catering to Northern and some part of the Eastern territories; Madhya Bharat Phosphates catering to Central and Western Indian territories; Shree Pushkar Chemicals & Fertilisers, which is a holding company catering to West and South India. We are confident of uptick in volume going forward because of the pan-India distribution network and presence in all our products across India. Now friends, let me update you on the ongoing CapEx of the company. Unit 5 CapEx has been almost done. Out of the total planned CapEx of INR 90 crores, we have already incurred INR 86 crores from the internal accruals and on the worldwide positioned construction and commercial production of the plant. We anticipate to start the dry trial runs of Unit 5 somewhere in the end of November and the trial production -- sorry, in this trial production in the month of December and the commercial production by the end of December or maybe the first week of January. We have also started work for the installation of 2 solar power projects for electricity generation, for internal consumption, under the open access team, which will decrease the power cost and increase the margin profits. Total planned CapEx of these 2 solar plants would be INR 21 crores. All will be funded through internal accruals of the total CapEx of INR 21 crores. We have already incurred approximately INR 10 crores till date. We anticipate these power plants will go online in FY '22 itself, and hence anticipate cost savings from FY '23 onwards. There are other few CapEx plans also in the insight, which we will speak at an appropriate time and we'll keep all of you posted for the same. Revenue for the quarter on consolidated levels grew by 77% as compared to the same period last year and compared to the -- and compared to the quarter back grew by 15%, showing positive recovery funds, not on a year-on-year basis, but sequential as well. On profitability front, our EBITDA stood at strong 16.4% and PAT margin was as high as 11.6% volumes. Operational efficiencies and cost execution led to the margin expansion. With increased revenue, we anticipate operating leverage payout, which should flow down to the bottom line going forward. Friends, now I hand over this call to Mr. Deepak Beriwala, who is our CFO, to take you through the financial and operational highlights for Q2 and H1 FY '22. Over to you.

Thank you, sir. Good evening, and a very warm welcome to everyone. As mentioned by Punit, we had a reset growth on the volume and volumes for H1 FY '22 grew by 42%. And for Q2 FY '22, it grew by 75%. This had an effect of Madhya Bharat sales volume of the Madhya Bharat were not present in H1 FY '21. Q2 FY '22 volumes for chemical business was 7,262 metric tonnes as compared to 4,605 for Q2 FY '21, a growth of 58%. On H1 FY '22, basis volume in chemicals grew by 38% to 12,786 metric tonnes. Fertilisers volume for Q2 FY '22 grew by 77% from 30,000 metric tonnes in Q2 FY '21 to 54,000 metric tonnes in Q2 FY '22. For H1 FY '22, total volume for fertiliser segments stood at 1,07,192 metric tonnes, a growth of 43% on a year-end basis. On revenue, our revenues from Q2 FY '22 stood at INR 136.1 crores as compared to INR 76.9 crores in Q2 FY '21, a growth of 77% on year-on-year basis. Revenue growth on Q-on-Q basis stood at 15% from INR 118.5 crores for the final project. For H1 FY '22, our revenue growth stood at 81% from INR 140.7 crores in H1 FY '22 to INR 254 crores in H1 FY '22. Our consolidated EBITDA for the quarter stood at INR 22.3 crores as compared to INR 11.5 crores in Q2 FY '21, a growth of 95% on year-on basis. EBITDA on Q-o-Q basis grew by 21% from INR 18 crore in Q1 FY '22. EBITDA margin for Q2 FY '22 stood at 16.4% as compared to 14.9% in Q2 FY '21, a growth of 150 bps and 15.6% for Q1 FY '22, a growth of 84 bps. EBITDA for H1 FY '22 stood at INR 40.8 crores as compared to INR 14.6 crores in FY '21, a growth of 179%. EBITDA margin for H1 FY '22 stood at 16%, a growth of 560 bps year-on basis. PAT for Q2 FY '22 stood at INR 15.7 crores as compared to INR 7.3 crores in Q2 FY '21, a growth of 115% year-on-year basis. On quarter-on-quarter basis, PAT grew by 18% from INR 13.4 crores. H1 FY '22 PAT stood at INR 29.1 crores as compared to INR 8.4 crores for H1 FY '21, a growth of 250 percentage. PAT margin for the quarter stood at 11.6% as compared to 9.5% for Q2 FY, a growth of 200 bps. For H1 FY '22, PAT margin grew by 551 bps at 11.4% absolute margins. With this, I open the floor for question and answer. Thanks.

[Operator Instructions] The first question is from the line of Shubham Agarwal from Aequitas India.

So my first question is regarding the Dye division. I wanted to understand what was the total revenue that we registered from the Dyes & Dyes Intermediates division? And what was our average realization for key product adjusted and renewal? And if you can also talk about how is the current realization of both the product? And what is the current capacity utilization across our plant?

Okay. In the Q2, this total Dyes & Dyes Intermediates, we have sold around INR 56.78 crores, in which the dye consists of around INR 28.08 crores and dye intermediate is INR 28.70 crores. So the total worth to be around INR 56.78 crores and the quantity distribution amongst these 2 segments is 19,000 -- sorry, 1,945 tonnes. And if you are asking about the ingredients, it's price realization for the dyestuff, it is working out to be in the range of INR 265, INR 270 a kg. And in intermediates, since it would be difficult to give us exact because as of now, I do not have ingredient volumes for H-Acid and Vinyl Sulphone, I have a consolidated sales volume of Vinyl Sulphone and H-Acid, which is 938 tonnes. And out of the total production of 2,600 tonnes -- sorry, out of the total production, 938 tonnes have been sold and the balance has been consumed internally for production of the dyes.

Okay. And what would be our capacity utilization for Q2?

I think as far as the dyes is concerned, it's around 70%, right? And around Dyes Intermediate, if we talk about -- no, this is sold, but we have consumed also. See, if you talk about the [ capital ] of intermediates, it would be around -- same around 72% to 73%.

Okay. So sir, at the back end of last quarter, maybe around September -- starting of September, we got news that Vinyl Sulphone and H-Acid prices have increased significantly. So I wanted to understand, given in that context, how is the outlook looking for this division going ahead? And also, if you can elaborate on the demand that...

That impact would be coming in Q3. Because we have seen that there is a price upward in terms of the raw material as far as in terms of the finished products also of H-Acid and Vinyl Sulphone, but that was somewhere visible by the end of September. But the effect of the sales would be restructured in this Q3.

Okay. Sir, given we might have also experienced increase in our raw material. And at the same time, our output product price has also increased. So do we anticipate increase in spread for our products this quarter?

Yes, this should be visible in Q3, Shubham. And what we see is that since we had certain old size inventories also. And over and above, we are easily able to pass on the price increase of raw materials to the service product, because you need to understand that there is a supply constraint because of the global logistic problems, because of the global energy problem, because of these 2 main defects, there is a supply constraint also. And on the Chinese wave, companies are facing a lot of issues because of the energy prices. This upsurge should be visible in Q3. Yes, there is a good demand of the products to what we produce, as well as the H-Acid and Vinyl Sulphone scale. The prices have gone to a reasonably good level. As of now to give you a bit more information, the Vinyl Sulphone relief is somewhere prevailing around INR 400, and H-Acid is around INR 600 to INR 635 a kg.

Fair enough. That's good. And when it comes to our raw material, are we facing any issues in terms of availability?

No. In terms of availability, we are not facing a very grave situation. We are not facing any system of a situation whereas we don't get a raw material and the plant gets closed, right? We have planned our inventories well in advance. And the company has got sufficient raw materials for -- the basic key raw materials. At least a few are till December end or a few also in January also. So we don't see any problems into that front.

And when it comes to Unit 5, so as you already mentioned in the opening remarks that commissioning may happen by first week of January. So what, in terms of demand, if you have some sense or is it an elaborate -- as to when we can ramp up to a meaningful capacity of this plant?

See, Unit 5 is extremely delayed beyond our expectations, but the delay has taken place -- the factors which were out of our control. And there is a project cost increase also, Unit 5 also, because of the vinyl increase prices that might have seen in some of the products. But anyhow, now we have covered all those things, and we are on the verge of starting the production. In November end we will be starting the dry trials, Shubham. And we believe that this trial production would be started in December. And we believe that January should be the period where we should have a -- available commercial production. And from January, almost slowly and gradually, we will ramp up the production capacity at Unit 5. And probably, we may get 1 month or 2 months of Unit 5 production in this financial year. But for the next financial year, we'll get in the total 12 months of the operation of a unit size. As far as the sales of the products that will be affecting Unit 5, we don't see any kind of a problem into sales and marketing of those products. That's not a good problem.

Fair enough. And also in the Fertiliser division, the numbers that was mentioned in presentation is reflected that -- the at stand-alone level, Fertiliser volume saw a significant decline, both Y-o-Y and Q-o-Q. So is there a specific reason that you would like to...

In fact, there is only the seasonal impact can be done, it is because in this season, this monsoon continued till a later period also. Now we believe that for this loss of the volumes, what has done in Q2 will be covered in Q3 and further in Q4 also. And especially in Maharashtra, yes, there is a degrowth into the volume. In Q1, we have sold around 18,000 tonnes of Fertiliser. And in Q2, it is only 8,000 tonnes of Fertiliser. So it has decreased by almost more than 50%. And we believe that from 15th of November onwards, the season would pick up in fertilisers. And we believe that this would be covered up in the coming times or so.

And what would be our average realization for Fertiliser? It is around 13,000, am I right?

Yes, close to 13,000, including the amount on the subsidy.

Okay. And again, also in Fertiliser division we are getting various new sales around demand supply mismatch in the country currently. So how are we placed in the current situation?

As far as Fertiliser is concerned, my personal belief is that because of the global supply issues and the global price increase, BAP is an acute shortage, right? And BAP has gone up tremendously high. And now the farmers have started accepting replacement of BAP as a SSP. If you see on the basis of the ingredients and if you see on the basis of the cost level also, 1 bag of BAP is equal to 3 bags of SSP and on bag of Urea, wherein if you put 3 bags of SSP and 1 bag of urea, to replace BAP, you get more ingredients in terms of the NP, NK. And as well as the cost-wise is concerned as of now the DAP pricing is around INR 1,200 a bag, wherein if we put these 2 different products in this specific quality, your cost of replacement of BAP is around INR 1,100. So otherwise, if you see that this INR 1,200 product is replaced by INR 1,100 product. So because of all these sorts of issues, the SSP is getting highly recognized and acceptable fertiliser in the whole country. And thanks to the government that they are also promoting view of this home driven industry. And if you see Kisan Phosphates, like we have achieved almost 90% of our production capacity. We did a business of around INR 60 crores in H1, wherein last year we did a total business of INR 70 crores for the whole year. So again INR 70 crores of the total business in the whole year, we do INR 60 crores of business in half year. So this is only dream of the [ Kisan ] also. So that there is a good time for the successive business thereafter.

Okay. And in terms of spreads, so the cost of raw material must have also gone up, right? In the current quarter, the margin also dropped slightly. So how do you see the spread trending from next quarter onwards in this segment?

Which period you're talking about? There is a decrease in the profitability?

The margin. So Q-on-Q, if I see the EBITDA margin in Fertiliser subsidiary dropped from 15.7% to 13.8%. So there was an almost 2% decline as far as EBITDA margin is concerned in your subsidiary, which is Kisan Phosphate and Madhya Bharat. So...

Let me go through the figures, what you are pointing at? Can you -- do you have that in front on us? You don't have that. Shubham, this point, I'm not having right now data in front of me, but surely, we'll get up to you on this part. But overall, I can tell you is that I think the drop is minor or major. The growth is minor or major.

It's a minor drop, 2% drop as of now.

There would be some high-priced raw material or some kind of a subsidy implement or something like that. So I don't think it's a major impact, remember that, but we tend to also -- will look into this and we'll come back to you.

Fair enough. And again, last question regarding raw material availability for Fertiliser division, are you taking any issue?

Not so major issue. In fact, rock phosphate is available at a price which we have covered it, if you will see that the stock level inventory levels in Q2 have gone up fantastically. The main reason of that is mainly because we have covered ourselves in terms of the rough phosphate almost till March 2022 onwards. So now the company has low phosphate till March in 2022, because of that inventory levels have gone up. And if you see the cash flow also, there is a big pressure on the cash flow because majority of the money is locked into the stocks, which we have covered in the future. As far as the sulfuric acid and control is concerned, supply is a bit tight, but it's available at a price and which we are covering it, and we have not started our plant even for a single day for the ones of the raw material.

And COVID is also not a concern for us.

See, concern is everything when the prices goes up. You have to only manage the things so that your plant doesn't get stopped. So there's a concern for everything, but you have to manage yourself. So we are -- this company is managing it well accordingly, so this plant doesn't get stopped.

Okay. And 1 last question regarding the Dyes & Dyes division. So do we see a possibility of capacity utilization increasing in second half through 80%, 85%?

It should be around 80%, Shubham. And that's a very practical figure on what can be achieved.

The next question is from the line of Sumesh Guleria from Green Portfolio.

Congratulations on a great number. My question is on the demerger part. So since we have grown significantly, and I think both the divisions, Fertilisers and Chemicals, we are doing extremely well. Can we expect demerger going forward in couple of years?

Sir, can you please repeat the question? I'm not able to follow your question, please come again.

Sir, my question is regarding demerger of Chemical and Fertiliser divisions going forward in a couple of years, next year?

I can't decide what would be the strategy down the line couple of years. It would be difficult for me to comment on this question. Because as of now, at least for 2, 3 years, we don't see any kind of a merger or demerger of this thing. Otherwise, if you'll see, then we've a subsidiary concern, we have 2 subsidiary concerns who are mainly into Fertilisers. So only we have one Fertiliser division in Pushker, that is our Maharashtra plan. So as far as Pushker is concerned, we do not have any such plans of demerging Fertiliser business as of now. Neither we have any plans for merging Madhya Bharat and Kisan into Pushker. The reason I will tell you, is that, because since we took over Madhya Bharat Phosphate from NCLT route, right? And therein, we have some asset loss of around INR 30 crores, INR 32 crores. First of all, we would like to take the opportunity of the tax benefits of that. And until that first time we do not have any benefit planning for merger or demerger.

[Operator Instructions] The next question is from the line of Anshuman Mohta, individual investor.

Congratulations for a wonderful set of numbers. I had a couple of queries. See what is -- how do we see the prices of H-Acid and Vinyl Sulphone going ahead. And the jumped-in prices, they have been recognized in the dyes itself or dyes prices have not gone up.

[Foreign Language]

[Foreign Language]

[Foreign Language]

[Foreign Language]

[Foreign Language] Dyes is a product which is used by the textile dye houses. And very honestly speaking, it is not immediate impact on the dyestuffs prices because of the increase of the raw material and the increase prices of H-Acid and Vinyl Sulphone, right? And dyes, we always have the advanced level for at least 2 to 3 months always in -- this gives us, because that goes as per the fashion trend in the society. Like for the winter color, we have to start working in summer. For the summer colors, we have to start working in winter. And this takes a bit time. But yes, somewhere in July, as well as when the prices started going high, at that time, the dyes revenues were not impacted. But now post September, if you see in October as well as in November also, even on the first of November also and on October 2 times, the prices are revised of the dyestuff. Earlier, the customers were a bit hesitant of the acceptability, but as and when the stock gets dried up, and the customer has to buy it. So now they are coming forward to buy at an increased price also. So it takes around 2 months' time, maybe it depends on customer to customer, to accept the volume -- to accept the increased price also.

So sir, we will see the impact of higher prices, better realization for dyes as well as etch H and Vinyl Sulphone in Q3, as per what we said for the last, Mr. Shubham. H-Acid and Vinyl Sulphone will get -- will we see a positive impact in the next quarter? And hike that we will see in the Q3 quarter.

Q3 [Foreign Language].

[Foreign Language].

[Foreign Language] Maybe partially of dyes and completely of intermediates.

Partially of dyes and completely of intermediates. Okay.

[Foreign Language] because of the customers already booked [Foreign Language].

[Foreign Language] PAT margins [Foreign Language] that was in the range of 9.5 to 10 [Foreign Language] which we have increased by 11 -- up to 11.5 or 6 [Foreign Language]. Is it because [Foreign Language] Unit 1 [Foreign Language] revamp [Foreign Language]?

[Foreign Language] individual impact [Foreign Language] whereas if you remember, I've been always saying in the past is that somewhere in this financial year, we'll be touching around INR 525. So now that is clearly visible also. [Foreign Language] the profitability terms also on consolidated basis company did around INR 29 crores in the complete full year of the last year. It is not only [Foreign Language] mix impact of the fertilizer business, better utilization also, some pricing benefit something about our [Foreign Language]. Since it's a completely versatile business, multibusiness, [Foreign Language].

So sir, [Foreign Language] regarding SSP. [Foreign Language] presentation mentioned that we have become a country's largest SSP producer.

No sir, we never said like that.

One of the Largest, one of the biggest...

One of [Foreign Language].

Sorry, sorry, sorry, one of the bigger producers of the country [Foreign Language]

[Foreign Language]

[Foreign Language]

[Foreign Language] those are money of government is also saved in terms of the subsidy. And the last [Foreign Language] majority of the requirement is met through the imports. So government is paying a lot of money as foreign exchanges also. Because of all these savings government is exercising more on the usage of SSP instead of DAP.

This is very bright for our future, like SSP production is more. Sir, SSP prices are -- what is the situation for SSP prices as compared to what -- 1, 2 quarters before, have the prices gone up?

Are the same, what it was the last year, the retail prices are the same wherein the government of India has increased the subsidy in the May 2021 where in it was before INR 2,343 before?

2,643.

INR 2,643. It was before INR 2,643, now it is INR 7,513. So the price increase has been taken care by the government in terms of subsidy.

So we are getting the subsidy. Is the subsidy coming in better times than before or is it still really impacted on this?

System [Foreign Language] government is giving rather a priority to the local industries in terms of the subsidy. The government is helping in promoting this SSP. Even the honorable minister is regularly taking meetings and asking the SSP producer and addressing their problems in a very positive way.

Sir, one last question. So unit 5 product line, we have not disclosed [Foreign Language].

[Foreign Language]

Once again congratulations on the set of numbers. What we have done the entire year, we have done in the first 6 months, so that is a great achievement.

Thank you.

[Operator Instructions] Next question is from the line of [ M. Rao ], an individual investor.

Congratulations on good set of numbers. My request is please arrange to post the concall transcript on the company's website at the possible shortest time.

Rao, please repeat the question. We couldn't hear it and understand you properly. I would request you to please repeat the question.

Please arrange to post the concall transcript on the company's website.

Okay, okay, okay.

In 10 to 15 days. Number two, as per your earlier answer, it seems we will be reaching 80% of capacity utilization in dyestuffs and dye intermediates that's the maximum what we can produce. And then when are you planning to go for expansion of dyestuff and dye intermediates?

Rao, on your first question to post the transcript on the company's website, do we do that?

We do post the transcript also. So we have like the transcript is still to get uploaded because there were some technical issues. But now, it has been resolved, so you'll be able to see it soon. But simultaneously we're also uploading the same on the stock exchange website also. So we will be able to find the transcript there also.

Okay, Mr. Rao?

Okay, sir.

And coming to your second question, we will be announcing our next CapEx post we start the commercial production of Unit 5. Till that period, we are not going to take any new expansions until and unless we start our Unit 5 production. Because if you see in last 3 -- in this last period, company has taken up a total CapEx of around INR 140 crores to INR 150 crores, including the overrun in the form of Madhya Bharat takeover and Solar and Unit 5. And this all amount around INR 150 crores has been met through internal approvals. So first of all, we would like to consolidate our Unit 5 operations, then only we will go for the further announcement of any expansion. Till that time, we would like to consolidate whatever we have done so.

And this margin -- percentage of margin, is it sustainable for the second half also at the same level? Or can we expect some more improvement?

Results are up till H1, you are saying is sustainable or not. Is it the question?

Yes, sir.

We'll be trying for the betterment of this H1. But since it is difficult to predict. But yes, we are sure that we'll try our level best to achieve something better than this.

The next question is from the line of [ Anil Ketan Shah ] from i-Wealth Management.

Congrats on good set of numbers.

Thank you.

Sir, I had a couple of questions. First, sir, if I remember correctly, when we are meeting before also. So you said earlier that broadly the dye intermediate, it's kind of on an average 15% EBITDA margin business. And dyestuff is closer to 17%, 18%. And in the current scenario, when the prices are going up, what would this margin would be, sir? On an average 2 extra projects are going live?

Sir, [Foreign Language] Company continuously EBITDA margins, profitability margins improve [Foreign Language] yes, there is a price control by the government. Government doesn't want you to make more than a specific profit of margins, right? And there are certain fluctuations also always available in the market, past [Foreign Language] this is a decent margin. It could be -- we are trying for the better one but [Foreign Language]. We will try for in the past, we have given 18% also. We'll be trying for that also.

Sir, on an average [Foreign Language]?

[Foreign Language].

[Foreign Language] that is little difficult to tell as of now.

[Foreign Language] that will be not correct on my part. I have to behave practically, right? And I have to talk conservatively. I cannot talk over the Board.

Understand. And sir, my second question was on Unit 5. So sir, once it starts in January. Sir, broadly, sir, maybe for FY '23, what kind of volumes you are expecting?

FY '23 [Foreign Language].

[Foreign Language] similar margins [Foreign Language]?

[Foreign Language].

Currently, sir, demand side, [Foreign Language], but we were reading something that a lot of freights thing and all this now easing out. So we -- in terms of imports and overall prices in China and even in India, are you all seeing there is some kind of 5%, 10% correction or it is still strong at your side and demand side?

[Foreign Language], Bangladesh, China everywhere the freight has gone up. Definitely, this situation is not going to remain forever. Things are going to get normalized. But personally, I don't see that these things would get normalized at least for the next 4 to 5 months. There are a couple of reasons behind it. A, the energy prices in China has not been resolved. It's going to take a bit longer time. China [Foreign Language] hopefully, somewhere next 5 to 6 months, things will come back to normalcy. But at least till February or March 2022, in my personal opinion, things will remain as it is where it is. Because [Foreign Language]. And what we feel on day-to-day basis into the industry is that still the raw material prices are going high. [Foreign Language].

[Foreign Language]

[Foreign Language]

[Operator Instructions] The next question is from the line of Forum Makim from Equitree Capital.

Congratulations on a good set of numbers. Sir, [Foreign Language]. Sir, what is your status on the warrants, has any [Foreign Language].

[Foreign Language]

And second is rise in borrowing, in short-term borrowings [Foreign Language]?

[Foreign Language] As per the warrant is concerned, company has already received 25% money from the promoter in Q2 itself, right? [Foreign Language]?

Yes, sir.

INR 33 crores [Foreign Language]. Basically, the rock phosphate [Foreign Language] now the rock phosphate has gone around $130 to $135. And as I told in this call itself in the beginning, [Foreign Language]. So we have opened few LCs for the raw materials. [Foreign Language] these are the LCs, which companies have opened on consol basis, even the Madhya Bharat also. [Foreign Language] plus we have covered ourselves in terms of raw materials till March.

Okay. Sir, [Foreign Language]?

[Foreign Language]

[Foreign Language]

[Foreign Language] You have to apply on the system. And if documents are clear and if everything has been done properly by your team, you will get it on the first come first serve basis.

[Operator Instructions] The next question is from the line of [ Ritika Gupta ], an Individual Investor.

I wanted to know what was the average price for H - Acid and Vinyl Sulphone in Q2 of FY '22?

[Foreign Language] [ Ritika ] we don't have as of now but I can give you an approximate idea based upon my knowledge. H - Acid would be in a range of around [Foreign Language]. As far as Vinyl Sulphone is concerned, Vinyl Sulphone [Foreign Language] subject to I go through and get -- just give you the exact number.

So we can see an increase of about 50% in the realization of each H - Acid and Vinyl Sulphone?

[Foreign Language] There are always certain commitments, which are to be supplied by the company even in this current period also in which we can't get back plus as I told before also, that the dyes [Foreign Language] and the company has almost 3 months of the dyes pending orders. So [Foreign Language] but yes, there would be a good amount of increase. But to get the -- frame the number is difficult.

Sir, what are the current realizations for dyestuff for this quarter, for the ongoing quarter?

I think current realization, there would be an improvement of around 25% to 30% range or so.

Okay. And sir, Madhya Bharat, I understand has done about INR 23 crores of sales in this quarter, right? In that range. What is like the EBITDA for Madhya Bharat?

Madhya Bharat EBITDA would be in the range of 11%, 12% or something like that. We have the numbers with us no? How much is that?

13.37%.

13.37% for H1 and 12.81% for Q2.

So what was -- okay, what was the absolute EBITDA for Madhya Bharat for Q2?

That's what I'm saying [ Ritika ]. In Q2, it is 12.81% EBITDA margins. And on H1 basis, it is 13.37% on EBITDA margins.

Okay. And what about the PAT?

PAT is range of 9 -- 10.02 -- 10.04% on H1 basis and 10.20% on Q2 basis.

And what kind of capacity utilization are you on in Madhya Bharat?

Madhya Bharat we should be in range of -- hold on -- it should be around 40%, 50%.

So how do we see this in H1?

Hold on. See what happens is in Madhya Bharat is that, in Madhya Bharat, 50% of the sale takes place through the Markfed. Markfed is a Madhya Pradesh government organization. They take the material on consignment sales basis. We dispatch them more, but whatever is sold till that period is only accounted in sales. Balance stock is kept into the godowns of Markfed but it is on the books of the company. So exact sales to capture on that particular day is bit difficult because it's -- because this sale is on a consignment basis. See, now you are saying that the sale of INR 23 crores, right? Actually, the dispatches are much more than this INR 23 crores.

Okay. But then it's sitting as inventory in my own book, right?

Yes, inventory is on to your book, but it is kept into the godowns of the market.

Okay. So what kind of sales do we expect from Madhya Bharat for the whole year?

Madhya Bharat, I expect somewhere close to INR 100 crores and Kisan close to INR 120 crores.

Do we want to revise the guidance that we've given for FY '22 and FY '23 considering there's a realization increase?

What's the guidance we have given?

Is INR 525 crores to INR 550 crores...

No. At least for FY '20, this current financial year, we would stick to the same number what we have been saying before because earlier those numbers we have -- whatever we have given, we have taken into the consideration at least 3, 4 months operation of Unit 5 also. Where in, I personally see that without Unit 5 operation, we will reach somewhere INR 525 crores. So we would like to be the same number what it was given.

Okay. Without Unit 5, you will reach INR 525 crores?

Without Unit 5, we should be INR 525 crores on consol basis. If you see that on this actual also, we have done without Unit 5, it is INR 250 crores.

Yes. So what kind of sales do you expect in Q4 from Unit 5?

Unit 5 [Foreign Language] right? Without Unit 5, we should be around INR 525 crores.

Okay. And what about FY '23, we will have Unit 5 also then and that's when we had given a guidance of INR 650 crores to...?

It should be about INR 775 or maybe INR 25 crores plus/minus.

Okay. And we will see -- sorry?

[Foreign Language]

Okay. And we will also see the cost savings from Solar of INR 6.5 crores from FY '23 onwards, right?

[Foreign Language]

And sir, Madhya Bharat, what kind of EBITDA margins do we expect at better capacity utilization?

Which company you said?

Madhya Bharat.

Madhya Bharat will remain in the same kind of profit margins. We know hardly a marginal -- but it would remain to the sale because it's a fertilizer business. This is a specific guideline by the government of India. And there's a price restriction by the government of India, so it should be in a similar range around 10% or so.

Thank you very much. I now hand the conference over to Mr. Punit Makharia for closing comments.

Thank you, friends. With the growth opportunity we foresee across all our segments and timely completion of our projects, we believe we are ready for the next level of growth and also well positioned to capitalize on the opportunity. Thank you, everyone, for joining us on call. I hope we have been able to answer all of your queries. In case you require any further detail, you can please contact our Investor Relation Adviser, OEM Capital. Thank you very much.

Thank you very much. On behalf of Shree Pushkar Chemicals & Fertilisers Limited, that concludes this conference. Thank you for joining us. You may now disconnect your lines. Thank you.