Supreme Petrochem Limited (500405) Earnings Call Transcript & Summary

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

Thank you. Good evening, everyone, and a warm welcome to you, all of you. My name is Nupur Jainkunia from Valorem Advisors. We represent the Investor Relations of Supreme Petrochem Limited. On behalf of the company, I would like to thank you all for participating in earnings -- company's earnings call for the third quarter and 9 months of the financial year 2025. Before we begin, a quick cautionary statement. Some of the statements made in today's earnings call may be forward-looking in nature. Such forward-looking statements are subject to risks and uncertainties, which could cause actual results to differ from those anticipated. Such statements are based on management's beliefs as well as assumptions made by and information currently available to management. Audiences are cautioned not to place any undue reliance on these forward-looking statements in making any investment decisions. The purpose of today's earnings call is purely to educate and bring awareness about the company's fundamental business and financial quarter under review. Now let me introduce you to the management participating with us in today's earnings call and hand it over to them for opening remarks. We have with us Mr. Rakesh Nayyar, Executive Director and CFO; Mr. Dilip Deole, Chief Executive of Finance and Accounts; and Mr. D.N. Mishra, Company Secretary of the company. Without any further delay, I request Mr. Rakesh Nayyar to start with his opening remarks. Thank you, and over to you, sir.

Thank you, Nupur, and good afternoon, everybody. It's a pleasure to welcome you to the earnings conference call for the third quarter and 9 months of the financial year 2025. Let me start by giving you a brief overview of the financial performance for the third quarter ended 31st December 2024. The operating income for the third quarter was INR 1,405 crores and the total EBITDA was at INR 116.70 crores. The net profit after tax grew by around 5.5% to INR 71 crores with PAT margin at 5.08%. For the 9 months ending up to December 2024, our revenue stood at INR 4,484 crores with a total EBITDA of INR 443 crores. Total EBITDA margin stood at 9.75% for 9 months. The net profit after tax for this period was INR 284 crores, which increased by approximately 32% year-on-year with a PAT margin of 6.32%. On the operational front, the prices of our key raw material of styrene monomer were declining in this last quarter. They are, however, now getting stable, and this declining trend put some pressure on the margins during the quarter. For the quarter, company sales volumes of manufactured products increased by 21.1% on a year-on-year basis, while for the 9 months period, the sales volumes of the manufactured products increased by 13.7% year-on-year. The company remains debt-free with an investable surplus of INR 680 crores at the end of December 2024 and is continuing to invest in all its capital programs through internal accruals and reserves. On the capital expenditure front, the implementation of our first phase of Mass ABS project with capacity of 70,000 tonnes per annum is progressing well, and the mechanical completion is expected by end March of 2025 with commissioning scheduled for quarter 1 FY '26. With this, now I open the floor for questions-and-answer session. Thank you.

[Operator Instructions] The first question is from Aditya Khetan from SMIFS Institutional Equities.

Sir, my first question is, in this quarter performance, sir, we are witnessing some compression in your gross and operating spreads per tonne. Any particular reason, sir? And if you can also highlight what is the average spread of polystyrene and styrene during the quarter? I believe it is at around $200, $250 per tonne. If you can throw some light how are the spot spreads global and in India?

Since you know the spreads also, you must have seen also the styrene price trends and the styrene trends have been on the falling -- declining side from August onwards or early September onwards. The styrene prices fell around [Technical Difficulty] in the September to December quarter. And with the declining styrene prices, there were some pressures on the margins. That is one. And on the spot basis, today, the margins are $200 and $250, and that is -- that reflects into the Indian margins as well. But then the -- that is on a spot basis, what you are talking. But the raw material always comes at prices which are almost 4 to 6 weeks prior to the arrival of the cargo. So the lead on lag always impacts the margins.

Got it. Sir, just to clarify on to this, you mentioned that the styrene prices are on a declining trend as that is also reflected into the trend also. So sir, declining raw material prices should generally help to protect EBITDA per tonne? Or is it vice versa like?

No, it does not help when your prices are -- raw material prices are declining, meaning you are getting your raw material, which is at -- which was contracted earlier and when the prices were high. So naturally, when your cargo arrives there, which is at a higher price, whereas the selling prices are on a kind of a spot basis then.

Okay. Okay. Got it. Got it. Sir, any particular idea if you can give for the longer term, like for 2025 -- FY '26 and FY '27, what sort of EBITDA or gross spreads we could work on?

I can't give you any guidance on those, Aditya, because these are all -- the base spreads are all determined by the global deltas, what we are prevailing in the Northeast Asian countries, Southeast Asian countries. So it's very difficult to predict that.

Got it. Okay. Sir, on to the volume side, our earlier guidance holds of 7% to 8% volume growth. And what is the outlook in the export side also? Export volumes also earlier, I believe we have given some number. So that -- so does that number holds?

See, the last year, we did a turnover of the volumes of 325,000 tonnes. And we maintain that we should have a volume growth of around 8% for the full financial year. And so that we would be around -- doing around 350,000 tonnes this year.

Okay. And sir, on to the Mass ABS, sir, are we through with the sampling part? I believe that will start post the commissioning of the plant, March 2025. So just wanted to know how much time the sampling will take? And are we getting like some orders, preorders or the order book is starting to fill in right now?

We are -- we would be coming out with the product in the first quarter of FY '26. And our discussions with our -- some of our customers are already on with the help from our collaborators. So once the product is out, we are confident that we should be able to sell the product comfortably.

Okay. Okay. And sir, post this Phase 1, any idea when we will start the Phase 2? And apart from this, we were also looking to start the Haryana plant. I think we have planned some INR 800 crores of CapEx over there. Any idea, sir, you can give how this Phase 2 and that Haryana plant will phase out?

We are working on the Haryana plant because the pre-project [Technical Difficulty] So we expect that in the FY '26 towards the third quarter of FY '26, we should be starting the project -- virtual project implementation at the new site now.

Okay. And sir, Phase 2 of ABS?

Phase 2 of ABS also, we hope to start in the coming financial year.

[Operator Instructions] The next question is from Sailesh Raja from B&K Securities.

Two years back, we began trading ABS product with the intent of showcasing to the customers like Supreme Petrol is entering this segment even before the commercial launch. So was this trading focused on mass technology ABS product or the conventional ABS variant?

No, we are currently doing ABS compounds. And we also do some trading in ABS, but that is all the conventional technology ABS.

Okay. Okay. So you seem confident about ramping up capacities in 2 years' time Phase 1. So what feedback have you received, sir, following the trial runs of this Mass ABS technology product in terms of quality, specification, future?

See, the benefits of Mass ABS are already known and that has been -- and with the Versalis team, the meetings with our -- some of the prospective customers have already been done, and the customers are already very enthused about using the material. So we are confident that we would be able to market the whole quantity.

Can you give specific features, it is much better than the conventional one, sir? Cost side, yes, definitely, it is much, much better. But in terms of product features...

The Mass ABS has a better lot-to-lot consistency. It has a lower base color so -- and it is very efficient for coloring them. There is a better UV stability in this. There's a thermal stability in this. There are lower gel content in this, so that helps in improving the surface quality. There is a lower volatile organic compounds, which helps in reducing the order in the interiors. So it has also an improved thermoforming properties. So these are the inherent advantages of the Mass ABS. And that would certainly be the selling USP of Mass ABS.

Okay. sir, XPS product, it was launched in 2008-09 yet we have not surpassed INR 50 crores in sales. So despite this, we are expanding capacity by 1 lakh in 1Q and plans to add capacity at the Haryana facility as well. So during my discussion with the Chennai-based Supreme XPS distributor, we mentioned that we are primarily focusing on projects rather than the consumer market. On the project side, private projects like last year, Foxconn, Chennai, Bangalore, they have procured a significant volume from our Chennai XPS distributor, and we got very positive feedback. And distributors find it easier to convince any MNC Taiwanese and Korean players that they prefer using green products in their projects. However, on the government side, since we don't have ISA certification in our XPS, so that seems to be a barrier and PWD does not grant approval. So we suggested that company should step in to address this issue. And also, sir, what is our plan on both consumer side and project side to increase the scale of this business? How quickly we can ramp up to fully utilize the 1.73 lakh include capacity from current level of 50,000?

See, we -- as far as the government mandation is concerned, it is not there for any insulation. Unlike the mandations in the European or the Gulf or China, India does not have any mandation for using any insulation product, be it XPS or be it PU or be it any other product. Though we are working on that with the Bureau of Energy Efficiency and all that, but that still has not happened. As far as the standards are concerned, standards are in place now. And -- but then since there is no mandation and there is no mandation for using the standard product, the imported cargo would continue to come. If anybody wants to import with broader width of the XPS. Now the -- as far as the enrolling in the -- or approval by the PWD is concerned, we have already been cleared. Our material has already been cleared by the CPWD long back, and that is how in the central government projects, our product is used. As far as the various state governments are concerned for the PWD of the state governments, some of the state governments have also already approved our product, and it is there in the booklet of the PWD where they have the list of the approved materials. So that all is there. But then as I had said last time also, the smaller contractors in the -- when they do the individual housing, they hesitate using it because it is -- they don't want to use it or when they want to tell the owners that it will increase your cost, but they do not inform them the benefits of using this. But the bigger projects, they are architects, they are contractors, they are aware of this. They know what the benefits of using these are. So all the institutional products, they prefer using this product. So we are working on that, but then it's a big task and it is a long-drawn work for us.

Okay. Okay. But how quickly we can ramp up the full utilization level, sir?

So the -- we have hired a team also, which is doing the marketing in the smaller towns also. We are doing local roadshows, though we have done many in the past. But again, we are doing that. We are interacting with the various architectural colleges and all that to enlighten people about this product. And there are -- these are the steps which the company has taken and continues to take. So we hope that now in the near future, in the next 2, 3 years, we should be able to load the -- not only the current capacity, but also the expanded capacity. For those who you have used it, those who have experienced the product, they swear by it.

Sir, in the export business, roughly we are doing 45,000 metric tonne of sale. In last call, you mentioned that it is fully polystyrene. So in export sales volume, how much it goes for the XPS and for the other applications, sir?

You mean to say the application of the polystyrene, which we export?

Yes.

I won't have that number with me because we export to all kinds of -- to the OEMs also. We export to the XPS manufacturers also like in Italy and in Greece, we export to some customer who uses it for the XPS. But Turkey or Egypt or Bangladesh, they all buy it for the OEM segments. So it depends upon the country to country, customer to customer, but very difficult to give you this number at the moment, please.

Okay. In general HIPS commands better margin than GPPS. So for the XPS [indiscernible] supply more of GPPS or HIPS sir?

For XPS, it is GPPS.

Okay. Sir, how much volumes we have done, sir, in 9 months in exports?

I won't be able to give you that number that we are not -- we are giving only the consolidated numbers now, please.

Okay. Okay. Sir, one last question. In the SPC business, how many compounds that we currently make in our volume of 18,000 metric tonne. We are roughly doing around INR 250 crores, INR 275 crores of sale. What are the plans to increase?

The increase with the same, like if we are doing a PP compound in PP compound also depending upon the customer to customer, the application-based compound. So there are -- whether it is PP or PE or ABS or polystyrene of all the polymers or there are co-polymers also. So all the -- there are a number of compounds which we are doing. They are in small volumes also, they are in large volumes also. But then not necessarily that we are producing all the compounds at the same time. It depends upon the orders and the applications piece. So very difficult to give any definite number of compounds because we have the capability to produce all kinds of compounds now. But going forward, we will have all the sales, mainly focusing on ABS compounds because that is a big market now -- because in compound, as I said, we do it for the specific application, which is more like at times the -- if the requirement is large, we do a specific customization also. We not only develop the compound and we produce it and market it then.

How fast we can double our volume, sir, in the SPC business?

The SPC business with our ABS coming online, we should be able to grow it very fast. And I expect that in the next 1.5, 2 years, we should be able to double this -- the compound business.

[Operator Instructions] The next question is from Nitin Gandhi from Inoquest Advisors.

How do you expect the ramp-up of this utilization of MBS facility, which is starting now?

Sorry, can you repeat your question, please?

Yes, I'm sorry. Am I clear now?

Yes, yes.

Okay. So can you share some thoughts on ramping up the capacity after 1 or 2 quarters of MBS that 70,000 tonnes?

See, in India, as it is almost more than 50% of the ABS requirement is imported into the country. The Mass ABS or the emulsion grade ABS, they are finally the ABS. It's only that the Mass ABS is being produced with a different technology, a different process and has some inherent the attributes and benefits, which are in addition to the -- what the emulsion grade ABS is providing, like it has more better consistency. It has a better efficient coloring. It has lower gels, lower VOC. So they are the other benefits of Mass ABS. So demand being there, we don't see that there would be any issues in marketing the product. Already 140,000 tonnes or thereabout is imported. We are just adding only 50% of that.

That's right. And in Phase 2, we are adding the similar again, right?

Yes, yes, yes. So -- but by the time our Phase 2 comes, the demand in India would have further grown up also.

Right. And another question, which is a bit little out of box, but it's like there were some studies being conducted for ABS being used as a fuel for rocket engines and other things and also for 3D. Can you share some thoughts if you have something on that? It's more of a...

I am not the right person to answer that question, please.

[Operator Instructions] The next question is from Aditya Khetan from SMIFS Institutional Equities.

Sir, I have questions on to the Haryana expansion. Sir, I believe we have earlier mentioned that -- so one of the projects into that plant, we are expanding, that is the EPS 3D panels. And that you had also mentioned that has a potential revenue of around INR 100 crores. So sir, what would be the other projects like which are into the pipeline?

We will be doing derivatives of all polymers, which was the 3D panels. We had also talked about the sheeting business -- for sheeting of polystyrene, sheeting of ABS. And going forward, we had said that we will be -- that was the -- what we had announced then was also the XPS project. So downstream, there were 3 projects. And on the polymer side, we had announced polystyrene and EPS; with polystyrene and EPS, we would be trying to fit in and time it with the implementation of the styrene monomer of IOC.

Okay. And sir, what would be the expected turnover from the sheeting business?

Sheeting business will also be giving us almost INR 200-odd crores of the revenue.

Okay. Sir, my next question was, sir, considering if -- so polystyrene spreads are at $200 per tonne, so how much premium would the XPS spreads be or EPS spreads be?

No, EPS has nothing to do with the polystyrene spread. EPS has its own spread and EPS local competition is there because EPS imports are not there. And EPS is determined by not only the international price, but also by the local competition here. There are many players of EPS now. And as far as the XPS is concerned, again, XPS, there is the spread over $200 is the base price, but then XPS commands a better -- much, much higher margins on that. And Internationally, I wouldn't know that. I'm sorry, I have no information on that internationally on XPS price right now.

Okay. So sir, EPS also like would be at a premium so to polystyrene or that would be similarly?

That is a similar price. That is not at a premium.

Okay. So sir, this value-added grade, so when we say like -- so out of the total portfolio, so 35%, 40% is the value-added grades. And if polystyrene and EPS, both are commanding a similar spreads and these 2 businesses, I believe, is around 70% to 80% of the total top line. So the value-added grades, sir, which businesses we are talking of?

Polystyrene as many -- we have some value-added grades of polystyrene where our margins are very high, better than the normal grades. They are higher margins for us. So they are the value-added grades for us. Similarly, like you have flame retardant EPS and other value-added grades. So they are the ones. We don't count the commodity grades, then all our compounding business, the SPC business, that is all our value-added for it. Our XPS is a value-added product for us. They are around 38% to 40% business of ours is the value-added business for us. It is the business where we have [Technical Difficulty] than the normal grades.

Okay. Got it. Sir, in this quarter, so we had also seen this impact of rupee depreciation of 2% to 3%. Any impact, sir, like we have taken on the higher styrene imports?

That will be high. Styrene imports goes there, yes, that is the -- when you are making the payment to that extent, there is a foreign exchange hit on you, but we cover major part of our ForEx. And -- but then also then part of it gets recovered because the -- accordingly, the landed price of the product also goes up. So your selling price also goes up. And in the exports -- on the value-added part of the exports, you get better realization.

Got it. Got it. Sir, ex of ABS, what is the volume guidance for FY '26 ex of ABS?

Other than ABS, we expect we should be doing also next year around the same 7%, 8% growth next year.

[Operator Instructions] Next question is from [ Pritesh ] from Lucky Securities.

Sir, I have 2 questions. One, what is the consumption of Mass ABS today in the market annually?

So India, there is -- we are the first one to come out with the Mass ABS. So as of till date, India has been consuming only the emulsion grade ABS.

So whatever imports are happening in India, those are also emulsion grade?

They are also emulsion grade because the Mass ABS carries a premium as far as the other markets are concerned, so that nobody is importing here.

Okay. Do the customer need to be educated or the applications have to be first tested upon for someone to start using Mass ABS or they can straightaway start as plug and play?

Depending upon their application, they have to -- they only decide on which grade they want to use based on the properties of the grade. And rather once they start using it, they would find that it is beneficial to use this because it has better properties that way in terms of consistency, in terms of the UV stability or in terms of the lower gels, lower volatile organic compounds or higher melt strength and all that. So they would then prefer to use it later on.

And what's the premium over the emulsion grade?

In India, I don't know the -- once we start marketing, it will be certainly at the same price because everyone is importing from the -- currently using the emulsion grade. But I said that in the markets there in Europe, it carries a premium. In India, what happens is once we are in the market, then we will be able to decide.

Do you see a scenario where on the incremental usage of product is where the market will use? Or do you think market will go ahead and replace even in the existing?

Market immediately will start replacing it. Those who are importing, they will use it provided initially maybe that, yes, at the same price, if they're getting it, they will use it. And once they see the advantages of this, maybe they will give a better price also to us.

Okay. And my last question is, in your presentation, these compounds, the polymer compounds, out of 350,000 tonnes of your annual volume, how much is polymer compounds?

Polymer compounds in the -- they would be around 8% or so -- all together, the 8% polymer compounds and our XPS business.

Next question is from [ Gargi ] from Value Investments.

Sir, I wanted to understand that with the upcoming ABS product, do you expect the receivables, inventory, et cetera, the working capital cycle similar to the current business?

Yes, we expect the same.

Okay, sir. And secondly, if you can help me with the products in the SPC, the products that we make in this SPC segment. So what is the demand size of these products in India? And are there any imports happening of these products?

What we are talking is of the compounds, and they are -- their applications are many. And as and when the applications grow, the compound market will grow. In India, actually, there are both organized and unorganized players in the masterbatches and compounds but then the organized sector is there in the EV batteries, the electricals and electronics, the automotives, appliances. So that is where the compounds are used mainly. And also compounds are also used in the many other applications of like the freezers and all that, they are also used. So the -- there are compounds which are being used even in the silent pipes and some other piping and bathroom fittings as well, which are being made. So there is a growing market for compounds. And somewhat may be getting imported of the styrenics compounds may be getting imported because they are -- if they are not getting produced there and somebody wants it. So -- but the -- I wouldn't say that the -- any definite data is available on that.

Okay. So for this segment, what are the blended realizations for our company and the EBITDA?

For which segment you are talking about?

Sir, SPC.

I'm sorry, I won't be able to give you that information, please.

Okay. Sir, last question would be if you can just highlight from here on, are there any measures that can be taken to reduce some costs? So you have mentioned about power cost reducing. So a little bit more color on -- from here on, how much do you expect to reduce on the power as well as the freight cost? And any other, if you feel?

We have already done the maximum permissible solar power installation for our projects, what the guidelines provide us so that we have already done. And now with the -- after the ABS is implemented, so the additional power requirement for the ABS, we would also be going -- whatever is the permissible limit for the enhanced requirement, we would be implementing solar power for that also. So currently, based on our installed capacity -- installed solar power and our consumption, we have been able to save almost 25% of our power cost. And as far as when you say freight, the global freights are still very, very high, even if you one compares with the pre-pandemic freight rates and today's freight rates, for the markets, they are as high as 3x still. That is why the exports is now not very remunerative. The margins are very low and very tight in the export market. And that is a global trend. There actually, we cannot be doing anything there. We can't help that.

So sir, from here on, is it safe to understand that in terms of cost reduction measures, we are already operating at optimum level?

No, with the higher production, like I mean our ABS comes in, it is at the same location. Our fixed cost may not be going at the same level. Our fixed cost would be with regard to our administrative cost, the plant cost, the management cost there, they are all there. They won't be going up. So the fixed cost economics would always reflect in. And as far as the upgrading the plant, automation of the plant, more and more automation of the plant to reduce the cost, that is an ongoing effort, which will always go on.

Okay. Sir, one last question, if I can squeeze in. So raw materials, we are fully importing. So with the depreciation of rupee, what is the hedging policy?

We hedge. We hedge -- generally, we are always hedged to the extent of 50% to 75%, depending upon the dynamics of the dollar-rupee. But in any case, the depreciation impacting our cost is also built in our selling prices. So indirectly, we get hedged. And so whatever the quantities we export, we are also hedged there.

[Operator Instructions] The next question is from Krunal Shah from ENAM Investments.

I have one question. So in case of Mass ABS, how would the gross spreads be in comparison to the emulsion ABS?

Gross spreads. Gross spreads would be better because our operating costs should be lower since it's a continuous plant.

Okay. So my point was because in, say, other countries, Mass ABS sells at a premium. So I just wanted to understand if the cost of manufacturing it is also higher or lower?

No. The operating cost would -- because it's a continuous plant, it's a reactor produced product. And it's only when the -- if somebody wants anything extra to be done, then we will take a second stage. Otherwise, the natural ABS would be available here, and it is all reactor produced.

Okay. Okay. So the premium price globally for Mass ABS would be a reflection of the better quality of the product.

Better quality because of the better attributes which it has. So that gives it a better premium there.

Right, right.

That eventually should happen in India also.

Yes, true. Fair enough. And in terms of the growth, we have a 9-month volume growth of around 13%. Can you break it down across segments, which have seen good growth and segments which are lagging growth?

No all segments have done well for us. The -- I wouldn't say that any particular segment has done well. Yes, polystyrene has done marginally better than the others. But then otherwise, EPS has also done well and on the 9 months period, EPS has done well. PS has done marginally better than the others. Even XPS has done well. So all of them have done well, and we have done 9 months 13% growth. And across the board, we have -- if you see it, that's the growth we have achieved on all our 4 verticals.

[Operator Instructions] Next question is from Nitin Gandhi from Inoquest Advisors.

Sir, can you share some guidance for the Q4 vis-a-vis last year or vis-a-vis Q3, if you can share overall volume-wise, it will be helpful.

Sorry, can you repeat your question again?

For Q4, that's Jan to March quarter, whatever volume we are expecting, can you share some thoughts vis-a-vis Q3 or last year's Q4?

See, we -- as I said earlier, we should be doing around 350,000 to 355,000 tonnes of volume this year. And last year, we did 325,000 tonnes of volume. This, as I said, will give us a growth of around 8% plus. And we are going to be achieving this. I think there should not be any issue barring anything unforeseen if it happens in the coming quarter in the next 2 months, but we are on line to achieve this.

So that means on a Y-o-Y basis as compared to last year where we had 96,000, it will be a bit negative growth.

No, it should be the same kind of -- this quarter, we should be having the same growth because exports may not be there or maybe lower exports this quarter. So we should be at the same level.

So 96,000 will be repeated more or less, if not grow...

More or less, we should.

Okay. And now coming to little longer-term view, like we have seen almost 8%, 9% deterioration in margin over the last 3, 4 years. What do you think in that? And what can happen best for us so that we can clock that 13%, 14%, at least on a sustainable basis over 2 or 3 years? Is it possible? Or does it look still away from us with implementation of MBS and other value grade transition, which would happen like what developed countries use. Is it possible that we can back to those margins in 3 years?

What you are comparing is with the '21-'22, right. And the '21...

Deterioration constant.

No, but '21-'22 was an abnormal year. It was an aberration when the global deltas because of the freight rates, because of the post-COVID, many plants were shut down, some plants had accidents globally. So the deltas were very high and resulted in higher margins. But otherwise, historically also in the normal times also, the business has been in the higher 2 digits EBITDA. And secondly, EBITDA is actually a myth in the sense because the higher the raw material prices, higher the end product prices, the EBITDA goes down in terms of percentages. But then that's the way everyone looks at it. With the Mass ABS coming in and their volumes going up and with the second line of Mass ABS coming up, we expect that, yes, we should be this high single-digit EBITDA, which everyone sees around 9%, 10%, 8%, should be crossing to double digits then.

Even I was trying to reach at 13% only, not 17%, 18% of '21-'22.

[Operator Instructions] The next question is from Vipul Kumar Anupchand Shah from Sumangal Investments.

I have joined late, so I apologize if I'm asking any repetitive questions. So my question is regarding our new land acquisition in Haryana. So which products we are going to manufacture there? And what will be the capacity there?

What we are planning to manufacture there is polystyrene, expandable polystyrene and downstreams of styrenics, which includes the 3D boards from EPS and sheetings of polystyrene and ABS and also XPS, extruded polystyrene insulation board. So these are -- that will be the product profile of that complex and some other downstream may get added over a period. But then right now, that is what has been planned and announced. The CapEx for that site is estimated at around INR 800 crores. And the pre-project activities for that site are going on. We expect to start with the downstream units in the -- sometimes in the financial year '26. And then in phases, all the other projects will come up there.

What will be the capacity of that plant, sir, in tonnage?

It will be -- polystyrene would be 100,000 tonnes. EPS would be 50,000 tonnes and the 100,000 cubic meters for XPS. And for the 3D panels, it will be, again, 1 million square meters and similarly for the sheeting business.

So once fully completed, what type of asset turns we can expect from that plant, sir?

The asset turn from that plant would be in the region of almost 2.5 to 3x -- 2.5x, yes.

And with margin profile similar to our current products, sir?

No, with the downstream units being there, which are the more value-added products, the margin profile should change there then.

Change for better?

Yes, change for better.

That was the last question in queue. I would now like to hand the conference back to the management team for closing comments.

Thank you all for participating in this earnings con call. If you have any further questions or would like to know more about the company, please reach out to our IR managers at Valorem Advisors. Thank you.

Thank you very much. On behalf of Supreme Petrochem Limited, that concludes the conference. Thank you for joining us. Ladies and gentlemen, you may now disconnect your lines.