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

Ladies and gentlemen, good day, and welcome to the Q4 and FY '22 Earnings Conference Call of Shree Pushkar Chemicals & Fertilisers Limited. [Operator Instructions] Please note that this conference is being recorded. I now hand the conference over to Mr. Faraz Ahmed from Orient Capital, Investor Relations partner. Thank you, and over to you, sir.

Thank you, and welcome to the Q4 and FY '22 Earnings Conference Call of Shree Pushkar Chemicals & Fertilisers Limited. Today on this call, we have Mr. Punit Makharia, Chairman and Managing Director; along with Mr. Deepak Beriwala, CFO. This conference call may contain forward-looking statements about the company, which are based on the beliefs, opinions and expectations as of today. Actual results may differ materially. These statements are not the guarantees of future performance, and involve risks and uncertainties that are difficult to predict. A detailed safe harbor statement is given on Page 2 of the company's investor presentation, which has been uploaded on the stock exchange and company's website as well. With this, I hand over the call to Mr. Punit Makharia for his opening remarks. Over to you, sir.

Thank you, Faraz. Good evening, friends. Welcome to Q4 and FY '22 earnings calls of our company, Shree Pushkar Chemicals & Fertilisers Limited. Today on the call, I'm joined with Mr. Deepak Beriwala, our CFO; and Mr. Nitesh Pangle, our Company Secretary and Compliance Officer; and our Investor Relations partner, Orient Capital. I hope all of I hope all of you have got an opportunity to go through our financial results and investor presentation, which has been uploaded on the stock exchange as well as on our company's website. Friends, I will take you through the financial and operational performance of our company for Q4 and FY '22. Our total sales volume for the year witnessed a growth of 21% for FY '22 versus FY '21. And the PAT saw a growth of 94.6% for the period ending FY '22 to INR 55.6 crores in comparison to the same period in corresponding last year. For Q4 FY '22, our PAT grew at 34.5% over the corresponding quarters last year. We continue to monitor our real-time situation, and are flexible to adjust our response in light of our further inflammatory pressures. Despite extraordinary hurdles faced by the raw materials and the utility price exploration, we as well as supply chain distributions. We have weathered all the storms by remaining nimble and tightening our focus in order to build a high-quality company and unrivaled execution capabilities. The focus has been to ensure sustained and consistent volume deliveries to the customers, admitting the global uncertainties, which room in the previous quarters. Friends, despite the challenging global environment, the company remains poised to witness further uptick in volume and are optimistic of volume and realization growth for the coming year with better capacity utilization and just higher efficiencies. On a consolidated basis, overall Chemicals segment saw or grew revenue growth of 48% of FY '22 versus FY '21. For our fertilisers business, the overall revenue grew by 82%. The boost in revenue is because of the enhanced revenue from our subsidiary, Madhya Bharat Phosphates Pvt. Ltd as well as Kisan Phosphates Private Ltd. For FY '22, Kisan Phosphates reported a revenue increase of 78.9% to INR 125.20 crores with comparative revenue from fertilizers and animal health and nutrition feed. Similarly, Madhya Bharat Phosphates Pvt. Ltd reported a 224% increase in the revenue to INR 101 crores in FY '22. We look forward to the great momentum in our overall business in quarters to come. Since we have enough capacity, and are constantly increasing it as well as the fact that we are present across India with Kisan Phosphates catering to North India and Eastern territories, Madhya Bharat is catering to Central and Western India as well as Shree Pushkar, the holding company, is catering to the West and the South India. Because of our Pan-India distribution and presence in our products, we are certain that our volumes will rise significantly in the near future. Friends, now let me update you on the ongoing CapEx of our company. Unit 5 CapEx of INR 114 crores approximately has been completed. The dry trial runs with respect to the acid plant has been commissioned successfully, and the trial production has been started on 27th of March 2022. This shall further grow our dye intermediates volume and dye's interim volume with respect to the sulfur chemistry plan, the trial production is expected to commence within the next 2 months. The dyes intermediates plant CapEx is ready to start the commercial production, pending approval from the explosive department Nagpur, which is currently in the advanced stages of approval and is expected to receive approval at any moment. As soon as we will see this approval from the explosive department, the plant will begin its commercial production with immediate effect. The total CapEx plan is around INR 165 crores, INR 170 crores, which is totally funded through the internal accruals, out of which INR 114 crores is incurred on Unit 5, INR 28 crores is incurred on the acquisition of Madhya Bharat Phosphates, INR 21 crores is incurred on the Solar projects, and INR 5 crores is incurred on the event of our Unit 1. Finally, we are one of the few market players with both forward and backward integration capabilities. Our company has 8 locations across India, plus 1 more, which is of a Solar, and total is 9 locations and is progressively are highly regulated. And we are proud to tell you that we are still zero-waste company organization. With this friends, I would like to hand over this call to Mr. Deepak Beriwala, who is our CFO, and who will take you through the financial and operational highlights of Q4 FY '22. Over to you, Deepak.

Thank you, sir. Good afternoon, and a very warm welcome to everyone. Our total volume for Q4 FY '22 grew by 14%, and FY '22 grew by 21%. On FY '22 basis, volume in Chemicals grew by 24% to 27,547 metric tonnes. Fertilizers volume for FY '22 grew by 21% to 222,097 metric tonnes. For Q4 FY '22, total volume for Fertilizers segment stood at 65,976 metric tonnes, a growth of 11% year-on-year versus Q4 FY '21. On the revenue front, our revenue for Q4 FY '22 stood at INR 192 crores as compared to INR 140 crores in Q4 FY '21, a growth of 69% on a year-on-year basis. For FY '22, our revenue growth stood at 65% from INR 584 crores in FY '22, INR 354 crores in FY '21. Our consolidated EBITDA for the quarter stood at INR 19.3 crores for Q4 FY '22 as compared to INR 14.1 crores in Q4 FY '21, a growth of 37% on a year-on-year basis. PAT for Q4 FY '22 was at INR 14 crores versus INR 10 crores for Q4 FY '21, a growth of 35% on a year-on basis. EBITDA margin for Q4 FY '22 stood at 10%, and PAT margin for Q4 FY '22 stood at 7.3%. EBITDA for the FY '22 stood at INR 80 crores as compared to INR 43 crores in FY '21, a growth of 84%. EBITDA margin for FY '22 stood at 13.6%. PAT for FY '22 stood at INR 55.60 crores as compared to INR 29 crores in FY '21, a growth of 95% on a year-on-year basis. With this, we can now open the floor for discussion. Thank you, sir.

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

Yes. First of all, sir, congratulations on a very successful FY '22. Sir, my first question would be around Fertilizer division. So given that we are now standing at 590,000 tonnes, I would directionally try to understand what kind of volume that we can do this year? Last year, we did 222,000 at a utilization of 52%. So given that now Madhya Bharat must have also stabilized, what kind of volume growth can we expect in the fertilizer division?

See, with the total volume of SSP itself is around 525,000 tonnes annually, Shubham. Out of these quantities, still we are yet to start our Deewanganj plant, which we have not initiated up till now, which itself has a capacity of 132,000 tonnes. And -- plus additionally, Kisan Phosphates, which was at 1 lakh tonne till the last year. Now it has been made to 132,000 tonnes. So this 32,000 tonnes additional of Kisan Phosphates and 132,000 Madhya Bharat Phosphates, Deewanganj. So in totality, out of 525,000 tonnes. If you reduce this 32,000 as well as 132,000, then the remaining will be like 360,000 tonnes or so approximately of our SSP business. Out of this, we are hopeful that at least in this financial year, we would be achieving around 80%, 85% capacity, plus additional what we achieve of Deewanganj as well as the Kisan Phosphates. In totality, I personally believe that somewhere close to 3.75 lakh to 4 lakh tonnes of the quantity of SSP, we will be achieving in this financial year. Apart from that, overall, supply position in the market for the other products, like DAP and other things, are in support to our existing products of SSP. And we believe that around 3.75 lakh to 4 lakh tonnes of the quantity which will be achieving in this financial year.

That's great to hear sir. And sir, any time line with respect to -- and this KP expansion of 32,000 tonnes you would like to share?

Of Kisan Phosphates, you're talking about?

Yes. 32,000 in Kisan Phosphates, and Deewanganj 132,000. When can we expect this to start?

As far as the CapEx of Kisan Phosphates is concerned of 32,000 that has been completed. And just 3 days back, we had our PDI inspection. PDI is an agency who does an inspection on the behalf of the Department of Fertilizer Ministry of Chemicals and Fertilizers. And they give the report to the ministry. And on the basis of the ministry report and the approval from the ministry, we can start producing that additional quantity. But as far as the plant side is concerned, it is done from our side, and we are just awaiting their approval for which the inspection was done just 3 days back. And as far as the Madhya Bharat is concerned, Shubham -- Deewanganj plant we suddenly came to know that in 2016 prior to our acquisition, there was a closure from Central Pollution Control Board. And that process we have already initiated, and I hope that in the next 10 to 15 days, that closure should be lifted by CPCB. Once that is lifted, then immediately, we'll be starting the plant. We are trying our level best to capture this Kharif season as early as possible. As far as the technicality of the plant is concerned, it is completely ready to start with, except the CPCB closure order, which is to be lifted. And we are taking the support of our NCLT order also, which clearly states that all the earlier permission has to be restored and granted back. But all because of the process, the period, it is taking a bit of the time. We are quite hopeful that immediately, we received permission and approval from PDI in Kisan. And CPCB lifting of the revoking of the closure order, we should be immediately able to start the plant.

That's very encouraging. And sir, secondly, what would be the current realization for a tonne of SSP and the subsidy amount also for per tonne, can you share with us?

Subsidy is -- remains same as it is. It was done on 20th May 2021. And government has not increased any subsidy on the SSP, Shubham, right? On the adhoc basis, they have given some subsidies on the soluble NPKs and DAP. So as far as SSP is concerned, the subsidy has not been increased. So it is the same as it was in the earlier notification. But we have increased the MRP, also. We have increased our sales price, also. Now in totality, it's around INR 16 a kg, including subsidy.

Sir, but given that subsidy has not been increased, will this not hurt the demand of SSP compared to other fertilizers?

I don't feel up till now, Shubham, because since the season has just initiated, we are on the just beginning of the season of Kharif. In my personal opinion, I don't see that there should be any impact into the demand. Those are subsidy has not been increased, but because of the availability of other fertilizers, we should be getting good volumes. Of SSP.

Okay. And is there any issue with regards to availability of raw material for our existing engine?

As far as that availability is concerned, the price is a big fluctuation. And our company is having a sufficient stock of raw materials, still the sale of its August 2022. And yes, prices are a bit on a higher side.

Okay. So will we be able to meet our increase in realization with respect to increase in RM for the coming quarters?

Since whatever the raw materials we are holding, those are the earlier imports, somewhere in February or January. We have covered ourselves till August, Shubham. So we are still covered for further 3 to 4 months -- the 3 months of further season going to be there. So the balance quantity requirement, we are in a negotiation with the suppliers, we believe that there should be some correction into the pricing.

Okay. So one more last question before I come back in the queue. So sir, there was a recent announcement by one of our competitors in dye division. Basically, they closed their H-acid plan because they had the RM price has increased significantly, and they are unable to pass it on. So what's the current situation with regards to our plant, if you can detail around the same issue?

What you say is 100% correct, Shubham. As of now, the pricing of specifically into the H-Acid is very adverse, right? Because of the extreme sharp increase into the raw material prices and specifically into the energy cost, leasing of the H-Acid has become unviable. That is correct. Most of the competitors have closed down the plants Shubham. We have slowed down the production activities in relation to the adjacent plant. And as of now, we are not interested in selling H-Acid to the open market, rather we are using that H-Acid in our dyes production wherein we were able to capture more of the customers and more of the volumes of the dyestuffs. I believe that in coming a month or so or maybe less than a month or so, this price should be stabilized.

Okay. And lastly, one data point. So, because of this solar plant, how much cost savings are you expecting per unit?

For unit 1, we are already getting credits in our electricity bill as well as regard to the solar plant is concerned. And for Unit 5 I think we should be getting the credits from next month because there is an electricity meter, which is -- has been recently installed. And once that is verified by the department, then we should be getting the credit of those units also in our Unit 5 bill because this solar has been put up mainly for 2 units, Unit 1 and Unit 5, in which you Unit 1, we've already started getting the credits. in sum up together, the payback of our solar should be around 3 -- almost around 3.5 years, also. We are generating around -- how much are we? 3 lakh?

350,000 units per month.

We are generating around 350,000 units per month from the solar for our each unit.

Okay. So almost INR 3 crores to INR 4 crores, we can add every year to our EBITDA.

Pardon?

Almost INR 3 crores to INR 4 crores, we can add to our EBITDA?

Fully? Annually?

Yes.

No. No, it should be around INR 5 crores to INR 6 crores annually.

INR 5 crores to INR 6 crores. Okay.

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

Congratulations on a good set of numbers. So I had a few questions. Firstly, related to the Chemicals business. So in FY '19, we did a revenue of around INR 400 crores for the Chemical business, with volumes of around 20,000 metric tonnes. Am I right?

Yes. Maybe more than that. But you continue with your question.

And sir, this year, we've done revenues of around INR 260 crores with volumes of 27,000 tonnes. So what am I missing here?

Are you talking these figures on a stand-alone basis or on the consol basis?

Consol basis.

You're talking on a...

I'm only talking about the Chemical business. So [indiscernible]

Yes, as we mentioned before also, this INR 400 crores figure of 2019, if you remember also, this is a figure of almost 3 years before. Thereafter, we had closed down our -- one of our plant, which was totally revamped, which I mentioned in my first -- this introduction speech also that the entire unit was sent into the revamp. And then thereafter, in 2020, the total volume of the company went down from INR 450 crores to close to INR 350 crores. So there was a downfall of around INR 100 crores that is mainly due to that 1 plant we had switched off. And at that time, we had not much of the Chemical business. Now slowly and gradually, it is coming back to the normal. Therefore, in this particular financial year, we have done INR 267 crores of the Chemical business, and the fertilizer business total is INR 316 crores.

But on higher volumes, my revenue is the same. So that means there's a significant drop in realization.

I think that INR 400 crores figure, what you're saying, this includes our total bills of our...

Fertilisers and Chemicals.

Yes. This includes our total business of fertilizers and Chemical, not only the Chemical.

Sir. No, sir. In your presentation, you've given dyes and dyestuff revenue. So the total is around INR 335 crores.

You said, INR 400 crores. So said the total Chemical business is INR 335 crores or INR 400 crores?

So I think INR 400 crores is including assets and everything.

Yes. That's what I also said. But that includes our fertilizer business also. INR 335 crores includes our fertilizer business also of Shree Pushkar Chemicals. Anyway, what we will do that, we will just get out the exact data, what has been highlighted by you, and we will come back to you on this point.

Sure, sir. And sir, are cutback [indiscernible]

Was that INR 335 crores?

Yes. INR 335 crores Chemicals business.

Okay. So it was 2 -- in 2019, the Chemical business was INR 335 crores. Now it is...

INR 267 crores.

INR 267 crores. So her question is that why it has...

Because of Unit 1 revamp.

Unit 1 revamp.

No. Sir, but that means there's a drop in my realization, right? -- because our volumes have increased.

What were the volumes in 2019? Do we have right now? Then we'll get back to you with the proper numbers and what was the volume and price realization at that point of time. If I'm not wrong at that -- in 2019, the intermediate pricing was quite high. And thereafter, there had been a bit. But don't we will come back to you with the proper details and the exact reason for your question.

Sure, sir. Also, for as our Chemical capacity is of 14,000 metric tonnes, right, almost 14,000. But our volumes are 27,000 tonnes. So are we doing some trading also?

No. No, no. We don't have a trading business.

So how can our volume be higher than our capacity?

See. See. Our total capacity of the Chemical including the acid business, is much higher than that. And the sales quantity, what you see of 27,547. This includes the total Chemical volumes. And the quantity of 9,000 tonne, what you're talking is only for the dye intermediates. Please refer Page #19 -- sorry, 14 of our PPT. This clearly return is that this excludes our acid capacity.

And it includes [indiscernible] capacity.

There is a hashtag at the right-hand side bottom of the slide that this excludes acid capacity.

So how much would be a total capacity, including acid capacity?

[Foreign Language] I think, Madam, you give you a detailed question to our Investor Relations. We will come back to you because this needs to take out more details existing. But let me tell you that right now existing capacity of acid is around 40,000 tonnes, out of which we use some of the quantities in captive, also. This is excluding Unit 5.

Sir, what would be our capacity utilization in the Chemical business?

And that's for that, I think we just mentioned in our PPT? I'm I right or wrong?

We'll get back.

We'll get back to you with all the details, madam. We have to go through the other things. Because there is a total consol capacity of Unit 1, Unit 3 and Unit 5. Dye intermediates is separate, acid is separate. We have to give you the entire capacity slide, and we will ask our IR to give you the details.

Okay, sir, sure. Sir, now moving on to the fertilizer segment. Could you explain why on a stand-alone basis, our volumes are down 9% year-on-year.

Okay. Last year, we did 73,000. This 73,000 includes MOP also -- sorry, SOP also?

And 66,961 also include...

SOP also, and NPKs also. Ma'am this is mainly because of a certain grade of fertilizers for which the raw material was not available. See the last year figure of 73,244 tonnes, this includes our SOP business. This includes our NPK business as well as our business. And in the similar way also in '21, '22, 66,961 includes all 3 of these products. Let me tell you that as of now, regarding the NPKs and regarding the SOP there is an issue into the availability of the raw material, which I just said before also that there is an issue into the raw material availability of the DAP, MOP, urea. Because of these, there is a slowdown to the same figure production. So the quantity is mainly because of that. But otherwise, if you'll see that the SSP volume has gone up. SSP volume last year was [Foreign Language], I think it is mainly because of the raw material availability of MOP, DAP and urea.

Right, sir. And so our current capacity utilization in fertilizers is around 60%.

It depends on site-to-site. If you talk about Kisan Phosphates, it's around 80%. If you talk about Madhya Bharat Phosphates, that's only for Unit 2 because Unit 1 has not yet started it's around 55% to 60%. And similar lines in Pushkar also is around 60%, 65% or so.

So sir, we have enough capacity utilization to grow for the next 1 or 2 years. So why are we going ahead with the expansion in fertilisers segment?

For which site? Because, see, Deewanganj, we already have in our possession, and that asset is lying idle. It is always advisable that to start that asset, we are not putting up any new plant. As far as the Kisan Phosphates is concerned, we are just doing a balancing addition into our plant and machinery, so that this can be increased by 32%. We are not on any major CapEx as far as the fertilizer capacity creation is concerned.

The next question is from the line of [ Nina Tabnis ] from [ Southern Financial. ]

Congratulation on good results. I have 2 brief questions. So while going through the financial statements. I noticed something. And if you could just help me understand, are volumes in fertilizers segment seems to have dropped on, say, on a stand-alone basis, what could be the reason behind this drop?

See, basically, if you will see that there is a drop of 8.6% in our stand-alone basis, fertilizers business. And this has been mainly dropped in NPKs and SOPs. And which I just answered in the last question also, that this drop is mainly because of the nonavailability or the poor availability of its raw materials, which were not freely available because the raw materials required for NPKs and SOP is DAP, urea and MOP. And because of the acute shortage, which is continuing for the last year, fertilizer, key nutrients, prime nutrients is the drop into the volumes. But if you will see about the SSP business, there is an increase into the SSP.

Okay. Got it. So on the CapEx front, how are our plans lined up for FY '23, and even going further in FY '24? So are we aware of -- have we thought of expanding the SSP division? Or was there any CapEx imply [indiscernible].

No. No, no. It's like company has completed the CapEx of around INR 165 to INR 170 crores out of the internal approval, right? Now we do not have any such major plans of any major CapEx except few balancing equipment CapEx, which we are doing, and which we have done also like increasing capacity of Kisan Phosphate of SSP from 100,000 tonnes to 132,000 tonnes. That just required some of the balancing equipment investment, which we did. Where Deewanganj is concerned that we are not doing any major CapEx that unit is lying idle with us because since we bought through NCLT. So we got 2 units. Out of 2 units, we have already started on 1 unit. And the unit 2 is lying idle, which we are in the process to start this additional capacity line with us.

That is encouraging to your...

Yes. So first of all, we are not doing any major CapEx, whether it is a fertilizer or it's a Chemical. Our total focus as of now is on 3 major things. A, starting of the Deewanganj plant, which is capacity is lying idle. B, stabilizing and utilizing the total capacity of Unit 5, which is still yet to be done. Until and unless we make and feel these existing capacities fully stabilized, we will not be doing any major CapEx. We want to go on a consolidation phase for next few months and make the quality and other things properly stabilized at Deewanganj plant. Utilizing 132,000 tonnes capacity of our Kisan Phosphates, utilizing upmost capacity of Unit 5. Then post it is completely stabilized, then we will talk about the new CapEx. Until then nothing. [indiscernible]

Yes. Really appreciate the in-depth answer, and it's worth noting that the focus is really good for the next few months to consolidate the operations. Just one last macro question. What is your -- any idea about the availability of SSP in India, and the market size and the market share we can capture?

See, in fact, the total production in India as for the data available on the public domain is around 49 lakh tonnes of the product -- SSPs produced across India.

49 lakh tonnes. Am I getting that right?

Yes. Yes, 49 lakhs. close to 50 lakh tonnes. Out of 50 lakh tonnes, our share is close to 4.5% to 5% till the last year, it was there. And the government is giving a great focus on the domestic fertilizer as we have mentioned in our last -- earlier call. At 3 bags of SSP, 1 bag of urea is equivalent to 3 -- 1 bag of DAP. And accordingly, the kind of production capacity has been achieved, the kind of sales has been achieved. We see that in future at least SSP has got a good protection.

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

Congratulations on a very great set of numbers in these difficult times, in this high inflation times. Just wanted to know a couple of things that plant the new plant, the Unit 5, which we're going to start. It is I think [Foreign Language]?

[Foreign Language] And another the third one is our dye intermediate plant.

Which we were not able to do trading, which we were using captively.

No. No, no. This is altogether a new facility, what we have created for dye intermediate business Anshuman. So if you put all together, there are total 3 different plants at Unit 5, which we call as a Unit 5 is -- has got 3 different plants. Out of 3 plants, first plant of acid, which we already started on 27th of March. Another is sulfur chemistry plant, which is connected to the acid plant because the further process of the acid is the sulfur chemistry, right? That will take another 1.5 to 2 months more to get it streamlined into the production. And the third one is dye intermediate plant, which is completely ready to start with. We have taken the trials, also. We are only awaiting 1 explosive department permission, which is in advanced stage of -- we are expecting that we should be receiving any moment. Maybe today, in the evening, by May, maybe tomorrow or maybe it may take 10, 15 days more, also. We are rigorously following up with the department to obtain that permission. The day and the moment we get that permission, we should be starting commercial production of the dye intermediate plant also immediately. As far as the CapEx and commissioning is concerned, it is almost completed to the fullest of its extent.

Okay. [Foreign Language] some INR 500 crores to INR 600 crores top line, which we almost achieved this time, more than around INR 500 crores, around INR 550 crores. You had guided last time that after the Unit 5, we would be reaching somewhere around INR 750 crores?

Pardon? After Unit 5 we'll be reaching to? Please complete.

INR 750 crores to INR 850 crores. I just recollect something like that.

Sir, we still maintain the [indiscernible] Mr. Anshuman. I'm well aware that you have been connected with the company since 2015. You are the first early investors into the company. And you have been witnessing that. We have been always talking very consistently and steadily. And by virtue of your good wishes and the blessing of the god where we're achieving what we have been always -- the -- saying and committing. Now as far as the year '22, '23 is concerned, INR 584 crores close to a consol basis, we have already achieved. Now sir, I'm quite hopeful that for '22, '23, I think we should be easily able to do it around INR 800 crores to INR 900 crores. And the reason for me to come on these figures is this as follows. Let's say, close to INR 600 crores, we have already done so, though we have done specifically INR 584 crores. But that's for the sake of calculation, I'm talking for the sake of calculation, let's take it as a INR 600 crores we have done on a consol basis. Plus Unit 5 is yet to come. Unit 5 business is not there because we started our acid plant based on 27th of March, so just in 3 days, there is no sales generation of Unit 5. Unit 5 on a yearly basis should give us around INR 225 crores to INR 250 crores of the business annually. Plus, we are expecting Deewanganj to start, plus we are expecting 32,000 tonnes increased capacity of Kisan Phosphates, also. If you put us all these together, I'm quite sure that we should be able to get INR 800 crores to INR 900 crores of the revenue in this current financial year.

Sir, I think, sir, even more. Because INR 600 crores, we have done INR 250 crores from Unit 5, and rest from Deewanganj and this, should cross INR 850 crores.

[Foreign Language] Let us see what we are where we achieved. But my beauty is to give you the most conservative numbers, at least from my side. Because if you remember that last time also, we've been all this talking that in this financial year, we'll be doing close to INR 525 crores to INR 550 crores, whereas company have achieved almost close to INR 600 crores. Let us try and let us keep our efforts in a similar direction, so that we achieve your desired number.

Sir, and last question. When can we expect there any new announcement for [Foreign Language] we'll not be doing [Foreign Language] at the right time, I'll announce the new thought process going on.

Further I'm also completely thought process of what you said. But at this point of time, sir, my total -- that is also working, and we will definitely announce as the time comes. Until and unless I get my approvals from my Board, I will not be commenting on this subject. But yes, there is something cooking into the pipelines. And -- but for the next few months, I'm not saying months -- at least for the next few month, we are focusing on consolidation.

The next question is from the line of D.R. Varun from Stock Gems.

Congrats on the great set of numbers. Sir, I have a couple of questions. if we see that in the quarterly numbers, the sales are very good. But the margins are suffering. It's -- the operating margin are 10%. What can you guide for the next year, sir?

Sir, basically, there is a quite big pressure on the business, mainly because of steep increase into the energy cost. You need to believe it, sir. And the company consumes coal, if I talk about specifically, is in a range of around 3,000 tonnes a month. And coal has gone almost double. Rather it had gone more than double, also. But right now, it is double than -- in comparative with the last 6, 8 months' pricing. So sir, you can calculate yourself easily that if the company consumed 3,000 tonnes of coal right now, the pricing of coal is around more than INR 15,000 a tonne, which was earlier at INR 7,000 a tonne. So what is the cost increment into that. I think if taking into that account also, company has still maintained 9% PAT level on a consol basis. I believe it's a decent number the company is able to maintain. And yes, it has got a potential of -- rather 9.51%, sorry. Rather -- but I believe that the company has got potential of going at least 11.5% to 12% of the PAT level. But right now, the basic commodity pricing are very high. You know that very well, better than me.

Yes, sir. sir. And my next question is that Unit 5 commences on operation on all the 3 units. What are the demand of that product? And how are the energy costs going to affect in that product, also?

Can you repeat the question, Mr. Varun, please?

Sir, as the Unit 5 goes on full swing, Unit 5. And what are the margins that we will get there?

Sir, you should consider the similar kind of margins the company is achieving in the last 5 years.

And how is the demand of those products?

Sir, as far as the demand is concerned, we don't see any issues into that because Varun bhai, we are at the completion of -- we have already completed the plant. Now you are asking the question on the demand. This question you should have asked 2 years back when we conceived those projects.

Yes. Sir, demand, but the main thing is that deman...

We have confidence in our organization and into the market conditions or we would not have spent such a large amount of money. So demand was definitely -- is there, the market is there then only we have done it, [indiscernible] without pertaining the demand and other parameters?

Yes, sir. But today world, the environment is so changing that many problems come...

Which environment?

Especially the inflationary environment that changes.

Which environment?

Inflationary environment. Price rise.

[Foreign Language]

Sir, and my last question is that...

[Foreign Language] inflationary environment. Demand [Foreign Language]

[Foreign Language]

[Foreign Language] I'm not able to understand.

The next question is from the line of S.A. Narayan from Capricorn

I must congratulate you and your team for excellent performance in FY '22.

Thank you, Mr. Narayan.

I also admire your presentation that you have uploaded. It makes it easy to understand. You also become a net cash company for a couple of years now.

That's right.

Right Given all this, I have 1 observation. The company has earned EPS of INR 18 for the year, while the dividend for the year is INR 2. Normally, Punit, good companies have a fair dividend distribution policy, such as 1/3 for expansion, 1/3 for working capital they keep aside, and 1/3 for -- as dividend for shareholders.

Mr. Narayan, very good question. And I expecting...

Maybe you need to have a similar dividend distribution policy, what I thought. I must leave it to you.

Mr. Narayan is your question completed? Can I answer?

Yes. Yes. Yes.

Okay. It's a very good question, Mr. Narayan, and I was expecting the similar kind of a question. What you say is correct that company is having a good cash flow. Company has got capacity and capability of converting its EBITDA into the cash, company has spent close to INR 170 crores out of internal accrual in spite of spending INR 170 crores, still company has got no [indiscernible] investments of more than INR 50 crores or so on a stand-alone basis, on a consol basis of INR 70 crores. Then why only INR 2? My same question was more also to the Board. The same question what you asked me, I also asked the same similar kind of a question to the Board, Mr. Narayan. But thereafter, that was my personal wish and -- but after the new discussions into the Board, Board has approved a 20% dividend, and reasoning for this decision is that -- just before the 2 questions before, Mr. Anshuman Mehta asked me a question -- ask a question on the call. But what is next? So there are a few CapExes lined down in the pipeline, Mr. Narayan, which we are not announcing at this point of time. We are waiting for the right time and right approval for us to have it. And there are -- as I mentioned in the last con call also that company is already into a process of some inorganic acquisitions also, for which some bidding is going on. And apart from that, we are also in a process of evaluating and announcing a grassroot new expansions also. So company would be requiring its funds for the new growth also. And whatever the company has earned and retained, out of that some amount has been given for the dividend. But definitely, this is a suggestion. We will keep in your mind. And at least for our next Board meeting, we'll be -- I'll be fighting on behalf of you and other investors for getting it more.

The next question is from the line of Gaurav Sasda from Fortel Investments.

[Foreign Language] INR 1,000 crores revenue [Foreign Language] Are you looking for some acquisitions also in this [ FY '23? ]

The same lines what we had said in the last con call, I just replied in my last question. The company is in the process of some acquisition also, which I said that bidding is going on [indiscernible] is going on. I cannot talk much on that part at this point of time because we have signed the NDA also. And -- but yes, we are working on the same -- similar lines what we have said in the last con call.

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

Sir, firstly for the Chemicals segment, which are the key user industry which we are catering to, if you could throw some more light on this.

Basically, if we talk about our particular Chemical segment, like we manufacture dyestuffs for which we cater to mainly the textile industries as a user. And then we make assets also, which has got multiple and multipurpose uses for the various kind of industries, which we cater to all kind of industries because sulfuric and H-Acid is kind of a product, which is used by all the major industries. Then we are producing dye intermediates also, which is catering to all our competitors of dye also.

In this selling side, do we have long-term contracts with the customers? Or these selling of the chemical is totally on the spot basis?

Sir, as far the long-term contracts are concerned, they are -- we don't have any such long-term contract where the price is locked, right? There is always a clause as a variation that if there is a price increase of more than x percentage and all this -- it depends on various terms and conditions. But for your knowledge, we do not have any such long-term contracts where the price is calculated.

Okay. And the concentration of the customer set for the Chemical segment permanently, you're [Foreign Language] One of your customers contributes what percentage of the sales?

[Foreign Language]

[Foreign Language]

[Foreign Language] Because we -- our customer book is more than 1,000 customers, including fertilizers business also. And we do not have any such customers, which is the highest or we are depending on that particular kind of customers. [Foreign Language] 10% volume generate [Foreign Language] 15% volume [Foreign Language].

Sir, in case of fertilisers, mainly [Foreign Language]

[Foreign Language] Soluble fertilizer SOP. So it makes soluble into the water and used as a [indiscernible] [Foreign Language].

And raw material [Foreign Language]

[Foreign Language]

[Foreign Language]

[Foreign Language]

The next question is from the line of Suman, an individual investor.

Congrats, sir, on good numbers. And most of the questions have been answered by you. So yes, we are hoping for a good year ahead.

Suman, sir, there is no questions, right?

Yes. Yes, no questions.

In the interest of time, that was the last question. I now hand the conference over to Mr. Punit Makharia for closing comments.

Thank you, everybody. With the growth opportunities we foresee across all our segments and completion of our projects, we believe we are ready for next level of growth and also position -- well positioned to capitalize on this opportunity. Thank you, everyone, for joining us. I hope we have been able to answer all of your questions. In case you require any further details, you may please contact our Investor Relations, Orient Capital team. Thank you very much. Thank you.

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