Supreme Petrochem Limited (500405) Earnings Call Transcript & Summary

Ladies and gentlemen, good day, and welcome to the Supreme Petrochem Limited Q2 and H1 FY '26 Earnings Conference Call. [Operator Instructions] Please note that this conference is being recorded. I now hand the conference over to Ms. Purvangi Jain from Valorem Advisors. Thank you, and over to you, ma'am.

We represent the Investor Relations of Supreme Petrochem Limited. On behalf of the company, I would like to thank you all for participating in the company's earnings call for the second quarter and first half of the financial year 2026. Before we begin, let me mention 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 belief as well as assumptions made by and information currently available to the management. Audiences are cautioned not to place undue reliance on these forward-looking statements in making any investment decisions. The purpose of today's earnings conference call is purely to educate and bring awareness about the company's fundamental business and financial performance for the quarter under review. Now let me introduce you to the management participating with us in today's earnings call. 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. Without any delay, I request Mr. Rakesh Nayyar to start with his opening remarks. Thank you, and over to you, sir.

Thank you, Purvangi. Good afternoon, everyone. It's a pleasure to welcome you to the earnings conference call for the second quarter and first half of the financial year 2026. Let me start by giving you a brief overview of the financial performance for the quarter ended 30th September 2025. On a stand-alone basis, the operating income for the second quarter is INR 1,100 crores as against INR 1,500 crores in the previous year. Reduction in the top-line is mainly due to lower raw material prices, which during the quarter prevailed in the peak of USD 850, USD 950, about USD 1,150 in the corresponding quarter in the [Technical Difficulty] The total EBITDA including other income stood at INR 86 crores and net profit after tax is INR [ 48 ] crores. For the first half of the financial year 2026, the operating income is INR 2,487 crores. The total EBITDA is INR 216 crores with total EBITDA margin of 8.69%. The net profit after tax stood at INR 129 crores. Company's sales volumes of manufactured products stood at 76,962 metric tons and for the first half stood at 1,70,826 metric tons as compared to 1,74,813 metric tons in correspondent period of the previous year. Actually, there is a [Technical Difficulty] first half of the year. The volumes and margins were impacted due to extended monsoon leading to demand for cooling devices such as air conditioners and refrigerators, deferment of purchase due to advanced intimation of GST rate reduction, subdued economic activity across major economies, changed trade flows due to trade barriers in the form of tariffs imposed by the U.S.A. and a decline in styrene monomer prices, which current prices at about USD 800 per metric ton, down from around USD 940 metric ton at the end of June 2025. This also led to the destocking by the processors. On a positive note, I'm happy to share that ABS plant in technical collaboration with M/S Versalis SPA with a capacity of 70,000 metric tons per annum has commenced commercial production. The integration of Xmold Polymers is also [Technical Difficulty] company continues to remain debt free, and all capital expenditures funded through the internal accruals as of 30th of September 2025, we maintained an investable surplus of INR 522 crores. The Board has recommended an interim dividend of 125%, that is INR 2.50 per equity share of face value of INR 2 each. With this, I conclude [ my opening remarks ]. Now open the floor for question-and-answer session.

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

Sir, just a couple of questions. Sir, first on the volume side, I missed your initial remarks. Like have you mentioned like what was the reason for a big dip in volume? Apart from the GST cut and all those reasons, is there anything structural change in demand you have seen, and you see like this would pick up in the coming quarter? Any commentary, sir, on this side?

As I explained, the demand is cut down because of the extended monsoons, which led to the damp sale of cooling devices like air conditioners and refrigerators, leading to the lower lifting by the OEMs and air conditioning manufacturers. Secondly, there is a trade flow -- change in the trade flows also with the tariffs put by U.S.A., the supply flow has changed. The countries where we were exporting, there are the other nations because they are unable to export to U.S.A. or processed goods are not going to U.S.A. So everybody is in the global market now to sell their material also. So there is a competition there as well. And also that there is -- automatically, the processors generally avoid stocking material when there is a continuous fall in the raw material prices. So this fall with this -- in the styrene monomer prices also led to the some account of -- some amount of destocking by the processors.

Okay. Okay. So sir, this lower styrene prices, has this been fully reflected in this quarter or we could see further weakening of realizations because it is a pass on. So next quarter also, we could see muted realization?

See, the styrene monomer is a global event. India does not produce a single kg of styrene monomer. So the global events impact styrene monomer, the global demand supply, crude prices, everything is going to determine the price of styrene. As of now, now styrene is ruling for the last 2 weeks at about $800. If this level continues, so maybe starting from December onwards, it will be a normal thing then.

Okay. Okay. Sir, on the ABS side, as we have started the Phase 1. Sir, is there any change on the guidance? I think earlier, we have stated so 20,000, 25,000 tonnes, we will be doing by this fiscal. And any thoughts sir on second phase? Are we planning to complete that by FY '27?

No. The second phase we had said we will complete by FY '28. And as far as so far, it remains the same. There's no change in that. And as far as the ABS is concerned, because that was based on the earlier that we would start our plant by June. But now the plant got delayed and the trials are on still with the processor. The testing is going on with various processes. So the guidance would change on that. The -- I think, I will be not able to give you the exact number, but it should be closer to maybe 15,000 tonnes or so in this year then.

Got it. Sir, this lower volumes in this quarter, I understand you have mentioned like it is a monsoon period. So there are high chances so that it could be recouped in the next quarter. Again, we could be back to that 95,000 to 1 lakh volume run rate.

See, the third quarter is always a weak quarter post Diwali, post festival. So it only -- the third quarter starts picking up only towards the end of November or December only. And the fourth quarter is always the best quarter that way. So in the next from say, around from December to March in those 4 months, if the demand is good from the OEMs, yes, we should be able to recover.

The next question is from the line of Nirav Jimudia Anvil Wealth.

Sir, I have a few questions to ask. So sir, first is on the styrene part. Like as we see that Chinese have become more self-sufficient in their styrene capacities as against their earlier reliance on imported styrene. Has this led to the start-up of additional capacities for PS and ABS in China? And that's why we are seeing some compression in the spreads? Or is it a general demand issue globally? Also add to it, like the other benzene value chains have not been doing well like capro or phenol or rest of the products. So has styrene -- with the styrene being more of a stable commodity over the last so many quarters, do those additional capacities have put pressure on starting up the further capacities of PS and ABS in China? Your thoughts here, sir?

See, China has become self-sufficient in styrene monomer. They have put up large capacities, rather 2 million tonnes of additional styrene capacity is coming up very shortly. It's in -- maybe in the next quarter, they would be on stream also. And with that 2 million tonnes, China would be 100% self-sufficient as styrene monomer. But they also have large downstream capacities, which they have implemented for polystyrene and ABS. But then they are more than the export of the polymers, they are actually in the export of the processed goods. And with the trade barriers, they are unable to export the processed goods. And currently, as we are told that China is running all their polymer plants at 50% to 60% capacity utilization. So with the large buildup of capacities in China, there is always a threat of imports coming in. If they are unable to utilize it for the processed goods, then maybe, yes, any time that imports can happen from there, they will be aggressive in exports. That threat currently continues.

Got it, sir. Got it. Very helpful. Sir, second is on the Xmold part. Like last time you mentioned that the capacity is close to around 15,000 tonnes, which with 5,000 tonnes they expanded, I think, Q4 of FY '24. So if you can share what's the status there in terms of the utilization for first half A and B? Are they also doing some expansions over and above those 15,000 tonnes?

So they are not doing any expansion above 15,000. Right now, we are only setting up all their systems because they were a small company. We want to bring them in line with our processes, like they never had an ERP, and we just finished installing an ERP SAP system there also. And we are changing the product mix there. So the -- that work is in progress. It will take another 4 to 5 months before we can say, yes, we are now in line -- they are in line with our mindset.

Okay. Got it. And sir, any numbers on the utilization part you can share? Is it possible?

As far as capacity utilization is concerned, we -- the first half of the year, we have operated at almost close to 79%. In the last quarter, our capacity utilization was low. We were closer to 72% or so only. And that is it.

Got it. Sir, next question is, we have seen the volumes falling in second quarter vis-a-vis last quarter last year. So was this predominantly the fall in volumes for polystyrene or also the EPS volumes were also impacted?

No, it is all the volumes because even EPS goes into the packaging of the durables and with the extended monsoons, even in the construction, the activity has been slow. And the -- as far as the fish boxes are concerned, where EPS is used extensively, there also the demand has come down.

Got it. Got it.

So the volumes are impacted both in PS and EPS.

Got it, sir. And sir, last question is, since you mentioned in your opening remarks that there was a pool in the styrene prices, was there an element of inventory losses in Q2, a? And if you also can share the trading sales for second quarter?

See, when the prices fall that is bound to happen. But then it's a dynamic thing. We are -- the materials keep on coming. They are moving out always. So to quantify the numbers, it's a long exercise and we haven't -- to put an exact number on the inventory loss is very difficult. But yes, that kind of an impact is there.

Okay. And sir, if you can share the trading sales for second quarter?

The total number, trading would be closer to 22%.

The next question is from the line of Sailesh Raja from B&K Securities.

Sir, my first question in August 2025, Europe, they have imposed provisional antidumping duty on ABS originating from South Korea and Taiwan, which together it accounted for around 2.2 lakh tonnes annually. So this volume is expected to redirect it to Middle East or any other Asian market. Do you see any impact -- do you see any changes in demand and supply scenario in India, sir? Can you please talk about that?

India, see, the -- already sufficient imports were coming because the demand in India was close to 300,000 tonnes. And in the FY '25, the imports were close to 160,000 tonnes. And currently, also the -- until the -- in the first half of the year, we see that the imports have been almost in the -- in line with what was imported last year. There is no additional imports or as what you're saying because of the antidumping duty imposed by Korea -- on the Korea by Europe, we don't see that impacting any additional imports coming into India.

Okay. Sir, can you please give the split between -- within the ABS imports, the general-purpose ABS and stick grades, what is the mix? Can you please share it?

No. I'm sorry, I don't have any breakup of general purpose or -- but generally, the ABS comes in mainly either for molding or for extrusion purposes. There are different grades for molding. And within that, yes, specific applications have different grades. But then I don't have a breakup of that.

So where we will be targeting, sir, general purpose or specific grade, like, ABS. We have lot of...

We are both in -- we will be in both in molding as well as in extrusion. And our grades would be -- it will be more defining the application, which -- for which application, which grade will go. So once all the grades are in the market and once the trial or the testing has been done by the processors and the OEMs and molders, then we will be able to give the full slate in the market then.

Okay, sir. Sir, on the compound side, currently, we are producing around 18,000 to 19,000 tonnes annually, and we are planning to expand capacity to 75,000 tonnes. And Xmold also, we have around 15,000 tonnes of capacity. And with this R&D capability of Xmold, so how much do you think it will accelerate us to ramp-up our Supreme Petro capacity of around 75,000 tonnes? Does that lab really help us in expanding the -- our compound capacity? Or do you think it is completely different? Could you please talk about that? And also, we attended the exhibition recently and one of the player, Sudarsshan Polymers and Compounds, they indicated that EBITDA margin in this business is 13% and which could decline to 9% in 2, 3 years because a lot of players are adding capacity, particularly players like Kingfa, they are coming out with significant capacity. So how we are going to address that? What is our plan? Could you please talk about that?

See, the 75,000 tonnes is what we have planned, which will be increased in stages. And currently, we have installed 20,000 tonnes for ABS compounding, and that has just now become operational. And as far as the margins are concerned, it actually depends upon what kind of a compound you are making, which niche area you are there. So to generalize that it will be 9% or 13%, it's very difficult because there are compounds where the margins are as high as even 15% or 20% or maybe more even. So this is -- to average it out is one thing, but then again, the margins depend more in compounding business, what niche you are in and what kind of compounds you are doing and what recipes you have developed. So I wouldn't comment on the margins part that what would be the margins eventually because I know that the margins can always be better than even 9% and 13%.

But whatever Kingfa is making that those grades are available with us or?

I'm not aware of what they are making because they are into many things. And what we are doing is, again, some niche areas we are doing it where they may not be there.

Okay. Sir, as Mr. Nirav mentioned that in China, they are adding a lot of capacity downstream products particularly this polystyrene EPS and compounds also we are seeing domestic a lot of expansion is happening and EPS particularly, if you see there in one company, Epack, they are also adding capacity in EPS around 50,000 tonnes. So given these developments, so how do you see the overall demand and supply evolving for the entire styrene chain over the next 2, 3 years? Do you anticipate margin pressures here or we can with stick -- different stick grades we could be able to still perform better? So if you see -- basically, where I'm coming from this question is if you see excluding the Haryana plant, do you still expect to achieve 6.5 lakh tonnes of volume, including 1.4 lakh tonnes of ABS and we do INR 15 per kg of EBITDA that is INR 1,000 crores in the normalized market scenario? Or do you see a risk to risk assumption?

See, as far as China is concerned, they are not expanding any -- we haven't heard of any more expansions or any new capacities of EPS coming in. Even last 2 years, we have not heard any new EPS capacity coming up in China. All EPS capacities were set up many years back. And they're currently operating those capacities at 50% to 60% only. And historically, in the last few years also, they have been operating at those levels only. The smaller or unviable plants there may get mothballed, that is a different story. But then currently, we haven't heard of any new capacities coming up. As far as India is concerned, again, we aren't aware of any expansion of EPS capacity happening in India apart from whatever has been in the pipeline. There is only one small player, I know who is expanding or who is actually setting up. Others, we haven't heard. And in India, there is an excess capacity of EPS today. Because of that, the margins where there have got squeezed. But as is the nature, over the years, somebody will sell out, somebody will shut down. So currently, the margins will remain under pressure because of the competition in India. There are no imports of EPS, hardly any imports come as far as EPS is concerned.

Okay. Sir, by 4Q, do you expect our split to be normalized?

See, unless otherwise the geoeconomic situation changes currently, the -- very difficult to say when because the -- until otherwise, the China's exports of processed goods start as far as to U.S.A. is concerned, the utilization of polystyrene or EPS or EPS capacities of the other Asian countries, that gets normalized. It's very difficult to predict when will it get normalized. But we expect that in the last quarter of the current financial year by then it should stabilize. But because that is a season in India also and styrene prices, crude prices would have also -- would be stabilized by then.

So, how much volume we are targeting, sir, this year?

We are targeting, but then with these kind of situations globally, whether what happens is difficult to say, but I can suffice to say that we will be doing certainly better than last year. But by what percentage with the decline in the volumes in the last quarter and all that, very difficult to predict. Even in the month of October, we don't see any major improvement in volumes. The OEM lifting in India is also slow.

[Operator Instructions] The next question is from the line of [ Vipul Kumar Shah from Sumangal ] Investment.

Sir, I missed your opening remarks. So what are the styrene prices now and what they were same period last year?

Currently, the styrene prices are around $800 per tonne. Last year around this time, the styrene prices were close to $1,100.

And what was the same last quarter, sir?

End June, the prices were $940.

And sir, for the second line of ABS, what will be the CapEx? And what will be the capacity of that line?

That line will be 70,000 tonnes and the CapEx would be around INR 300 crores.

INR 300 crores. So in view of our reduced cash generation, will we have to resort to the borrowings to fund that CapEx?

No. In my opening remarks itself, I have said that we will be meeting all our CapEx from internal accruals.

The next question is from the line of Rahul Agarwal from Ikigai Asset.

Sir, one question and then a couple of clarifications. Firstly, you shared your view on what's really happening on the downstream side for China. And because they are running at lower utilization because processed goods are not able to get exported to U.S., that has to be seen from a PS perspective. Could you similarly delve a bit deeper on to the ABS side of this? Do we see a lot of ABS imports from China as well? Because my sense is it's more Taiwan and Korea who import into India. But purely from a pricing perspective on ABS and incremental ramp-up of your Phase 1, how do you look at business going forward for ABS for the industry overall and then specifically for Supreme Petro?

The ABS imports are currently happening only from majority, almost 95% of imports into India that comes in from Taiwan -- mainly Korea, Taiwan and then around 5-odd percent from Thailand. So the 95% of imports, they come from these 3 locations. China imports of ABS are not there at all. At the moment, it is not there. And rightly, as -- since they have large capacities coming up there, large capacities are getting built up in China. Going forward, the threat remains.

So they are essentially building up ABS capacity is what you mentioned?

They are currently building some ABS capacities, but that is all meant for their own use for the processed goods because they import also ABS. But then if they are not able to export the processed goods, which eventually I'm sure they will be doing it. But if they are unable to do it, then yes, the threat remains.

Got it. Fair point.

China has built large capacities of all polymers. It is just not the ABS or EPS, but they have built large capacities for all polymers. So that -- if they are not processing it, then that will continue to realize.

Just to put on a number here, and my sense was 12 million tonnes of global ABS and PS capacity, each of them and about 4 million tonnes for China. Is that correct? Are these numbers correct?

4 million tonnes of what you said?

ABS capacity in China?

ABS capacity in China is currently close to 9 million tonnes. The global capacity -- the global installed capacity of ABS is around 17 million tonnes, of which around 9 million is in China, 8 million tonnes is the worldwide capacity and of which the current demand of ABS is close to 11 million, 11.5 million tonnes only. And China currently imports with all their capacities coming up, if one takes into account that China would still need to import closer to 1 million tonnes of ABS.

Got it. Got it. And similar thing for polystyrene, I mean, how much would that be for China capacity right now and the world capacity?

The world capacity of polystyrene is again close to 12 million tonnes. And China has around 4.5 million tonnes or so, thereabout the capacities there.

Got it, sir. And a couple of clarifications. You said the Phase 2 for the ABS plant starts in fiscal '28. That basically means production starts somewhere end of '28 and then we see sales in fiscal '29. Is that what you mentioned?

We are saying that by the FY '28, the second line would be ready. And once since the product profile would have already been in the market with the line, so that shouldn't take long to be fully, fully operational then.

Right. So it should -- like it should see some revenues into fiscal '28 itself is what you meant?

Somewhat maybe otherwise in '29, fully, it would be there.

Got it. And similar question on the trading sales. When you mentioned 22%, that 22% is of the total top-line, is it?

Of the top-line.

Okay. So when you give the volume number in the presentation, which is manufactured volume, that doesn't include any trading volume, right?

No, that doesn't include any trading volume.

Okay. And for the 70,000 tonnes of Phase 1 ABS, which you have done, which I think also costed about INR 300 crores, INR 350 crores. What would be the peak revenue or a peak EBITDA number like 3, 4 years out at 100% utilization? Basically, I'm trying to calculate the return on capital. So just wanted to understand the peak [indiscernible] of that.

[ Even ] the project is not INR 300 crores investment in the Line 1 because that also has some element of the infrastructure utilities for both the lines and everything. So it is around INR 600 crores for us, the Line 1. And the asset turnover ratio of both the lines put together would be it is 2.

Okay. Okay. And what kind of EBITDA should we assume here like percentage or tonne or whatever?

[indiscernible] I can't give -- with the global spreads, what you will see that, based on that, one can work out. But we -- once let us settle and once the product is fully in the market and our plant is fully running, then real EBITDA numbers would be known to us.

The next question is from the line of Pratik Singhania from SageOne Investments.

Sir, taking forward the previous participant question, so majority of the capacity, like you said in Korea, Thailand, Indonesia, have been set up keeping China in mind because this capacity is far more access in comparison to their local demand. Now with China coming up with their own capacity of ABS, reliance of import coming down, do you think that this import pressure from Korea, Thailand and -- Indonesia, Thailand, this will remain static for India as a whole and this could eventually lead to a lower normalized spread for ABS?

See, they had capacities. China has set up, but they already were exporting now to some other locations or to the U.S.A. and the trade barriers are there. But once these trade barriers are out, those pressures will also not be there. But as far as Korea is concerned or Thailand is concerned, their imports have not increased into India. And despite the trade barriers being in place for the last couple of months. So I don't see that as far as ABS is concerned, there will be any major impact.

Okay. So then -- so basically, then this reduction of the spread is predominantly with respect to the fall in the styrene prices rather than majorly coming from the import pressure of the volumes coming into India. Is that correct to assume?

The styrene is not the concern. The concern here is the import of ABS. And ABS last year was 160,000 tonnes. And till the first 6 months also, it is in line with the last year's imports.

Okay.

There is no extra imports which have come in and the local players have also sold their quantities, it means.

Got it. And how is the booking market with respect to the importers booking like any -- like 2, 3 months trend that we have with respect to further imports, how it would increase or like it's the same?

That nobody can know which trader is importing or which trader is placed an order. That is not -- that's not in the marketplace, I mean, with that information.

Okay. And sir, with respect to pricing your product, will it be safe to assume that your product will price a 3%, 4% discount to your competition since we want to increase our market share now? And secondly, with respect to your engagement with the processors, how has been the acceptance from the processor side with respect to melt flow index and characteristic and uniformity of your product getting into the mold? Any feedback from them?

As far as the pricing is concerned, the -- it's a market strategy. So whatever our market team feels good to penetrate into the market and then we will take the decisions at the right time. And as far as the feedbacks are concerned, we are receiving some feedbacks, and we will be accordingly making those changes to meet the market expectations.

Okay. And we will be also selling the color...

Sorry, for each application, every processor has their own requirements. So we have to fit in their requirements into the -- our grades and all that, that we are working on that.

Okay. And typically, what is the product -- this time line to get it approved from the OEM because obviously, the product is processed at the processor level, but it has to get approved by the OEM. So a typical time line, say, if you want to get into any automobile or say, household consumer durable goods. So the OEM product approval, SKU approval time lines would be?

I would say anything between 3 to 6 months.

Okay. And we will be selling the colored as well, right, the colored ABS apart from the natural grade and the white wide grade?

Yes, we will be selling. We'll be selling compounds of ABS also and the natural ABS as well.

The next question is from the line of Amit Agicha from HG Hawa & CO.

Sir, is it true that our CapEx cost is one of the lowest for any new plant that has been put up? And what is the comparable to someone putting up a plant in China also? This is for the ABS plant.

Amit, I won't be able to comment on that.

Second question is, sir, are we facing any kind of competition from honeycomb industry, particularly in our thermocol products?

From which industry you said?

Honeycomb industry, which is made from paper?

No, no. We haven't seen any competition from there so far, no.

Okay. And sir, one more thing is that [indiscernible] place as well as our Patalganga -- sorry, the North India Haryana plant is concerned, when we will be able to come into production there? We had previously stated...

No, no, no we as far as -- because we have gone there because of the styrene monomer availability from IOC, which IOC had announced, but IOC's plans to set up their styrene plant has also got delayed. That's what we understand from them, from the market also. And earlier, they were talking of by '27, '28, now we gather it is by '29. So we are not putting in our money there at the moment till their plans are very firmed up and we know that, yes, their styrene would be available to us.

The next question is from the line of Shreya Banthia from Oaklane Capital Management LLP.

I have a question regarding the ABS margin. When we ask, we know that right now we [Technical Difficulty].

I'm so sorry to interrupt in between. Ma'am your voice not audible. As there is no response, we will go ahead and invite the next participant. The next question is from the line of [ Vipul Kumar Shah from Sumangal ] Investment.

Sir, regarding this ABS line, so we'll be selling downstream products, or we'll be selling to the processors? We'll not...

We will be selling to the processors.

We'll not do any downstream products, right?

We will be only doing compounding of ABS. And otherwise, we'll be selling ABS only.

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

Sir, you had mentioned that ABS imports are quite sticky, around 1.6 lakh tonnes, we could conclude for this fiscal also. So sir, if this is the argument, then sir, the domestic capacity addition done by you and other players because the demand is sir, so that is around 3.5 lakh tonnes only. And if we exclude 1.6 lakh tonnes again, so we could be sitting at 2 lakh tonnes again demand. So how come the domestic players would be selling their inventory?

See, till now, Aditya, our product was not in the market. I said that first 6 months, the imports which have come, they are in line with the last year's exports. But by then, our material is not in the market. Once our material is tested, tried by the processors and approved by the OEMs, then automatically, those imports will go down then.

Okay. Okay. Any differentiation, sir, you can highlight like so better quantity or what is superior like compared to imports which are coming in?

See, all the emulsion-grade ABS, they are yellow-ish color. They are like dark cream-ish color, whereas we are a white color ABS. And with that, your pigments coloring, all that is reduced. Our -- the consistency is better because it is all reactor produced material. It is not batch processes. So there is a consistency in the material there. So that -- this is the advantage. Then as far as the order is concerned, that is the minimal order, there is 0 order in it as compared to the emulsion grade there. Then the thermal stability is very -- there's a high thermal stability in mass ABS, whereas emulsion has generally the moderate thermal stability.

Okay. Okay. And sir, this asset turnover of 2x, like earlier, sir, so we were investing INR 950 crores in ABS and expecting a INR 2,000 crores sort of a top-line. Some 2 years back, we had given this number. Now sir, that has been reduced to INR 1,800 crores. So this is because of the lower prices, current prices are lower that we have factored in.

I said twice, so INR 600 crores and INR 300, INR 350 crores for the second line. So this will come to the same number. But as far as styrene price going down and the top-line coming down, they are all a matter of calculation. But otherwise, the asset turnover would be more or less remains at 2 only.

Got it. Got it. And sir, just to clarify the point on special compound polymer, sir, our current capacity installed, that is around 60,000 tonnes. Is this the right figure, sir?

No. That's not the right figure. Right figure would be where we are currently at -- effective purchase -- around 55,000 -- 50,000 tonnes.

50,000 tonnes. Okay. So 15,000 from Xmold, 25,000 earlier we had and 20,000, sir, we had expanded just now, ABS compounding.

No, no, no I'll tell you. 25,000 plus 20,000 and 15,000, 60,000, including Xmold. You're right, 60,000 with export.

The next question is from the line of Pratik Singhania from SageOne Investments.

With respect to the CapEx that this industry is putting almost like INR 1,500 crores to INR 1,600 crores in ABS has been put by the industry after such a long time in the ABS in India. So any protection that you may see from the government with respect to antidumping duty on any -- like if any country is like doing a spoil with respect to dumping ABS in India, anything because loss of profit is also one of the criteria, which can be used upon for this antidumping duty. So anything which is expected or you might like, anticipate a scenario in, say, next 12 months or so that would be required.

Pratikji [Foreign Language] existing players [Foreign Language] antidumping application or anything which has to be made for safeguard or any protection that has to be initiated by the existing players because I wouldn't have the data to support this request if I go to the government today because we are just entering. I don't have any historical data, even the current data is insufficient. So I will not be the right person to answer this question. But yes, if the existing players make this move, we are there to support.

Sure. Great. And second question, sir, with respect to this China adding so much capacity. Normally, Chinese wants to be the lowest cost producer of any goods over the world. And since the technology which you have adopted makes you with respect to the lowest cost producer with respect to ABS. So like any -- like what is your view with respect to China not preferring your route of manufacturing ABS versus they going for a continuous process-based process for setting up this such a big expanded capacity that they have done in last 2, 2.5 years, your view, sir?

China is also going in for mass ABS now. China, I know Versalis only has set up a plant for their -- it's in the process there, which is for almost 450,000 tonnes or so. So they are -- already that is in there. Then there are other plants also there. So there, I think close to almost 1 million tonnes of mass ABS plants would be there in the -- whatever is in the pipeline now there.

Okay. 1 million tonnes is in the pipeline and they already...

Nobody knows the exact numbers about the China, very frankly. But the Versalis is just -- is given to one guy, one company, 450,000 tonnes. And of that, I think 2 lines are already -- 1 line is already operational there.

So this will be which company, sir?

I won't have the name readily available, but then yes, we can get that name. I have it somewhere, but I don't remember the name. It's there.

Ladies and gentlemen, that was the last question for today. I now hand the conference over to the management from Supreme Petrochem Limited 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 or our operations, please reach out to our Investor Relations Manager at Valorem Advisors. Thank you so much. Thank you.

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