Ladies and gentlemen, good day and welcome to Lords Chloro Alkali Limited Q2 and H1 FY 2027 earnings call. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Smit Patel from Adfactors PR. Thank you, and over to you.
Thank you. Good afternoon, everyone. Thank you for joining us on Q2 and H1 FY 2027 earnings conference call of Lords Chloro Alkali Limited. We have with us today Mr. Madhav Dhir, Executive Director, who will take you through company's operational and financial performance for the quarter and half year ended 30th September 2020. Before we begin, I would like to remind everyone that certain statements made during today's discussion may be forward-looking in nature and may involve risk and uncertainties. A detailed statement in this regard is available in Q2 and H1 FY 2027 results presentation uploaded on the stock exchanges and on the company's website. I now hand over the call to Mr. Madhav Dhir to begin the proceedings. Thank you, and over to you, sir.
Hi, thanks, Smit. Good afternoon, everyone. Thank you for joining us on Q2 H1 2027 earnings conference call of Lords Chloro. I have a small speech prepared, after which we can go into Q&A. I will just take you through first what we believe how our results was and a little bit of the analysis of the results. We entered FY 2027 with a continued focus on strengthening our performance and especially improving our cost efficiencies. In H1 FY 2027, we reported strong numbers similar to H1 2026, even though there were significantly lower product realizations. Caustic soda lye has been under pressure for the last quarter, as you may be aware. Even though there were lower product realizations, we have managed to give similar numbers. That is primarily because of the improvement in our cost efficiencies.
One of the more later developments during this quarter was that we have also sanctioned and commissioned 21 MW DC solar captive power with BESS. In total, our captive and group captive renewable energy has now increased to 47 MW DC. That constitutes around 40% of our total power is now coming from renewable sources, which is very likely the highest in any Caustic Soda manufacturing plant in India, and even maybe around the world. It is one of the higher end ones. It would make us a significantly low cost of green Caustic Soda to about 40% of our total energy needs. That has also meant that our power grid rate has reduced significantly, which the grid rate is at about INR 8.3, whereas captive power comes at about INR 2, and group captive power comes at about INR 4.5.
So, that is where the cost efficiencies are showing and coming through that even in lower realizations, we are doing significantly better than what you would expect us to be doing. It also means even though we are in commodity chemicals, the intent is to try to rationalize our EBITDA such that there is not big swings basis the realizations of Caustic Soda, and we are able to always deliver profitability come what may in terms of realizations of Caustic Soda. Our manufacturing unit in Alwar, Rajasthan also allows for us, because it is on 84 acres, allows for us to expand within this, and we are, as you are aware, having a INR 315 crore CapEx plan, of which approximately INR 150 crore was completed last year, and another INR 165 crore will be completed by July of next year at the latest.
Now, I just want to take you through a bit of the numbers, although you have all the numbers available with you. The total income stood at about INR 115 crore, which is the highest revenue that we have done in comparison to last quarter, or sorry, quarter FY 2026, which was at about INR 100 crore, means a year-on-year growth of about 14%, and that too on lower realizations. This is primarily because we were able to produce and sell far more Caustic Soda in terms of volumes, as well as the improvement in realizations of Chlorinated Paraffin Wax. In terms of volumes, we did about 23,000 tons of Caustic Soda Lye as opposed to 21,000 if you compare Q2 FY 2027 versus Q2 FY 2026.
For the first half, as I mentioned, total income was similar to H1 FY 2026, which is INR 222 crore this year versus INR 201 crore last year. That INR 20 crore is a marginal jump in terms of realization and is primarily due to the volumes. We will get a significant jump subsequent to the expansion plan that are yet to be commissioned, which will be happening around July of next year at most. Primarily March and at most July. Our EBITDA of H1 FY 2026 has registered a growth of about 10.36%, which is also significant. On the operational front, the volumes of Caustic Soda, as I mentioned, are above 9% year-on-year, and CPW is over actually 40% in terms of volumes. So, we have done a much significant growth in Chlorinated Paraffin Wax.
It is a new product for us, and we have been producing it for only a year and a half. So we have significantly managed to get our products sold in the market. Power and fuel expenses is something where we are trying to do our cost expense saving. So, for example, if you see power and fuel expenses declined to INR 37.79 crore despite the increase in sales of Caustic Soda and the production of Caustic Soda from INR 42 crore in just the previous quarter. So a quarter-on-quarter, sorry, my mistake, yeah, quarter-on-quarter, INR 5 crore reduction in power cost. This may actually increase coming next quarter. So we are doing well on that. Employee benefits have increased. This includes Diwali bonus. This includes, for example, the Give me a moment, sorry. High incentives and the variable employee benefits that we have over here.
The PBT has largely remained the same, about INR 28 crore for the first half of this year versus last year. I repeat myself, but even though it's due to much lower realizations, we've done fairly the same, even though the Caustic Soda realizations were much lower. The commissioning of the additional captive solar plant in September marks an important step because that will bring us to about 40% of our power coming from renewable sources and decrease the power cost significantly. We remain focused on capacity expansion, downstream integration plans, and the planned expansion of Caustic Soda and CPW. We are committed on the timelines that we had originally envisaged. Thank you for all the Investors and Analysts for their continued support and engagement with the company. We are now open to any questions that you may have.
Thank you very much. We will now begin the question and answer session.
Right.
Anyone who wishes to ask a question may press star and one on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Prisha Shah from Shah Family Office. Please go ahead.
Hi, sir. Good afternoon.
Hi, good afternoon.
Hello. Sir, I have a couple of questions. Firstly, starting with looking ahead, where do you vision Lords Chloro being there over the next five years, specifically in the terms of, you say, scale of operations and the product mix? Can you please put some color on that?
Yeah, sure. I think I would like to start by saying, next year itself, we are expecting to do a realization of at least INR 550 crore. That is primarily going to come from the expansion in Caustic Soda. Going forward within this, because if you are up and running with our new plant by July, we will only have nine months of sales, and possibly within the same capacity, about INR 550 crore-INR 600 crore is the revenue that we expect with the current CapEx plan that is already ongoing.
Besides this, post-July, our entire CapEx plan of INR 315 crore will be complete, which means any new cash flow that is generated by this business subsequent to July, which we expect to be at least INR 15 crore-INR 20 crore EBITDA on the more basic level that we are able to do even with these lower realizations, we will have at least a free cash flow of INR 80-odd crores to invest in other chemicals that we may seem appropriate at that time. What that means is that the growth will only grow much significantly quicker subsequent to the expansion plans being completed. Where do we see ourselves in five years? Where we see ourselves in five years is that we are not just a commodity chemical player. We already view ourselves as just not a commodity chemical player.
20%, 25% of our income now comes from Chlorinated Paraffin Wax, which we intend on increasing to a more significant level. Secondly, we have very large renewable assets on our books in comparison to other companies, which primarily do group captive structures in terms of getting renewable energy. Their power costs land at about INR 4.5 on that front. Whereas, because a significant portion of our assets, solar assets, are on our books, our cost of power is significantly lower at about INR 2, to a certain extent. We are actually far more than what we believe the market perceives us to be, which is just a commodity chemical player. We are a commodity chemical player with 25% income coming from Chlorinated Paraffin Wax and large renewable assets on our books.
Besides that, what we intend on growing to be within the next five years is a much more diversified chemical company, and definitely more towards specialty chemicals. We see ourselves having the appropriate cash flow available with us starting from July of next year to be able to diversify significantly into any specialty chemical that we may seem fit. We are in the research phase of identifying such chemicals that may be appropriate, and we will be able to announce something maybe later in the future by the time something comes through. I hope that answers your question.
Yes, sir, that answers my question very well. I have one more question. Thanks for the elaborate answer, though. I just wanted to understand, is the company evaluating any acquisitions or strategic partnerships to accelerate the growth going ahead, or the focus will only remain on the organic expansion? What are the other avenues of inorganic growth are you looking for?
We are very much looking into expansions through strategic expansions and/or acquisitions. Actually, what I mentioned earlier is that because we are going to have about INR 80 crore of free cash flow, any expansion or acquisition is open to us. Because let's say if I have INR 80 crore of free cash flow available, I can take, let's say, at least on a 30% equity basis, an INR 200 crore loan and acquire about an INR 250 crore-INR 300 crore company on a comfortable basis, on a very comfortable debt-to-equity basis. We are looking at that. For that matter, we are employing a company which does our research and development. Because we are a smaller company, we cannot do it on our own channel, but we do employ a company that does many research studies for us on various companies as well as various products.
But we are unable to identify, so we are keeping our head down only until we have our CapEx plans completed. As I mentioned, this INR 315 crore CapEx plan will end in July. Subsequent to which, we are doing a study prior to it, but subsequent to which we will be able to commit to a certain type of expansion or acquisition, very likely in this space of specialty chemicals, so that we can diversify away from the commodity chemical cycle. Although we already have diversified away from the commodity chemical cycle, if you see the other competitors on our scale, we are doing significantly better in terms of EBITDA and profit, primarily because we have invested so heavily in our renewable assets. So, I hope that answers your question.
Yes, sir, that answers all my questions. These were my only questions. Thank you so much.
Thank you.
Thank you. Next question is from the line of Saket Kapoor from Kapoor & Company. Please go ahead.
Yeah. Namaskar, Dhir Saab. Hope I'm audible.
Yes, please. Thank you.
Yes, sir. Thank you, sir. I hope sir, Ajay ji is also in the call, sir?
Not yet, actually. He has had some traffic issue. He's not on the call yet, but if you have any questions for him specifically, we can always add him. Yeah, yeah. We can always get you connected at another point.
Okay, okay. Firstly, I was just trying to understand, since he has been an industry veteran, what are the key current dynamics of the Caustic Soda industry? I think so particularly, India has been net exporter in the recent past for Caustic Soda.
Right.
[Non-English content] sir, [Non-English content] chlorine [Non-English content] negative [Non-English content] has also declined significantly.
Right, right.
[Non-English content] we are in a region, sir, [Non-English content] [Non-English content] chlorine [Non-English content] negative [Non-English content] [Non-English content] [Non-English content] because of [Non-English content] players [Non-English content]. I was just trying to get some sense [Non-English content] realizations negative [Non-English content] chlorine [Non-English content], [Non-English content] dynamic play [Non-English content] industry [Non-English content]. My second question, sir, [Non-English content] [Non-English content] our June [Non-English content] if we compare September quarter numbers, the realizations have moved up. When I see, even on the savings of power and fuel, the profitability is down by around 4-5 crore.
Right, right.
So, if you could just explain volume [Non-English content] [Non-English content] tonnage [Non-English content] June [Non-English content] September [Non-English content], and realizations [Non-English content] [Non-English content] dip [Non-English content]. [Non-English content] 2 points [Non-English content], sir.
[Non-English content] three questions [Non-English content]. I will start by your first question, and if I miss something, you can interject in the middle also. I can respond then. [Non-English content] first question [Non-English content], 6 million [Non-English content] India [Non-English content] production [Non-English content], that is about 6 million. We have become a net exporter. Reliance is likely to come next year. From 6 million, we will go up to 8 million, and Adani will also come the year after. We will go up to about 10 million. Now, every year, we have at least a growth of about 5% year-on-year in terms of production and in terms of consumption as well. So, very likely, that should be able to take into account the two productions that are going to come from that perspective.
Besides that, a lot of European capacity is also shutting down, and Reliance and Adani, whenever they do come next year or next to next year, they are also setting up depots in Europe to be able to sell Caustic Soda. Especially with this European and U.K. EU FTAs happening, it will open up the markets for us in a more significant manner in Europe and U.K. So, we are not too concerned with the new expansions that are coming in. India is a net exporter and will remain to be a net exporter. In the grand scheme of things, 100 million is approximately the total Caustic Soda production and consumption worldwide, which is also growing at 5%, which means every year, 5 million tons of production, or sorry, my mistake, consumption is being added.
The two plants that are going to come up will very likely be taken care of by those things. Considering that Europe is more so shutting down their capacities and China is relatively stable. In terms of production, consumption, India and worldwide seeming comfortable at the moment. Sorry, that was your first question with regards to that. I believe, what was your second question exactly again?
It was regarding the chlorine part of the story, sir. How is the chlorine realization behaving for your region also and I think so for entire industry?
Right. Right now, we are still at about between negative INR 2,000 to INR 0. In terms of chlorine in Alwar, which is significantly better than the Gujarat region. That is primarily because you mentioned [Non-English content] [Non-English content] competitors , so we are able to get better realizations for chlorine. Now, negative INR 2,000-INR 0 is actually significantly better than what it has been in the past. Gujarat is still relatively at about negative INR 5,000. So, chlorine realizations, although have improved from negative INR 4,000-INR 4,500 in our region to between negative INR 2,000 and INR 0. You know, basically, as and when Reliance and Adani come in, they are going to be making PVC. What would happen invariably is that all their chlorine will go into PVC, and it would mean that the chlorine market over time will improve.
If you see the U.S. markets, chlorine and caustic are equal players and equal members of their sale. Whereas in Indian Caustic Soda market, chlorine is a big laggard because the chlorine market is yet to develop in India, which is very likely going to develop over time. So, [Non-English content] current state [Non-English content] , between last quarter and this quarter, chlorine realizations have improved significantly, whereas caustic realizations have decreased significantly between last quarter and this quarter. Last quarter, there was a jump basis the war between U.S. and Iran. All commodities had gone up in pricing, whereas as and when the war is seeming to be consistent and long term, the commodity market has factored it in and fallen. So, that is what has happened in Caustic Soda lye as well.
[Non-English content] sir. Sir, [Non-English content] volume and realizations [Non-English content] compare [Non-English content] if we are looking at the decline in profitability Q1-Q2, so if you could just explain to us what has led to this decline.
Right.
I think employee costs, sir, [Non-English content] quarter [Non-English content].
हाँ।
INR 6.25 crore-INR 8 crore. Whereas power and fuel ka reduction significant hai. Even on top of that, realizations bhi improve hone ke baad hamare profits lower hain by INR 4 crore-INR 5 crore, INR 5 crore to.
Right. [Non-English content] cost of raw material consumed has gone up by about INR 6 crore. If you see last quarter, INR 30 crore versus INR 36 crore. That has been the biggest issue, and that is also primarily because of Chlorinated Paraffin Wax. [Non-English content] basically paraffin oil [Non-English content], and because of the war, paraffin oil, sulfuric acid, and these kinds of chemicals have gone up significantly. It is not likely that these prices remain elevated indefinitely. But for the moment, where we have lost out is the cost of raw material consumed. That is primarily [Non-English content] INR 6 crore [Non-English content] difference [Non-English content]. That is one major issue. Employee benefits, basically, we have our incentives given not on a quarterly basis, but on a half-yearly basis.
If we convert to a quarterly basis, [Non-English content] and it is variable in terms of EBITDA and profitability as well. Sorry, my mistake, it is only variable on EBITDA. That is where INR 1 crore, INR 20 lakhs has gone there, INR 6 crore has gone there. Whatever benefit that we have done in power and fuel has a significant has gone away in cost of raw material consumed, where the power and fuel charges will still go down, but this cost of material will also go down. We do expect significantly better results going forward. This was actually a very tough quarter, and if you are seeing the market, you might see that other competitors who are at our scale and their performance versus ours.
Sir, tonnages [Non-English content] What was the tonnage?
Yes, right. We did about 23,300 tons in this quarter of sales. This is the highest sales in terms of volume of Caustic Soda lye, as opposed to about we did in Q1 19,953.
Okay. What were the realizations for the first quarter and the second quarter? At the ECU, if it is, that could be better than-
I don't have the ECU available with me at the moment. You'll have to, because my CFO would have prepared those. I don't have the exact ECU available with me at the moment, but we can connect after the call, and I can have that shared with you through my CFO.
[Non-English content] sir. But when we look, sir, [Non-English content] purpose [Non-English content] Chlorinated Paraffin Wax [Non-English content], that is the value-added part, and that chlorine consumption [Non-English content] captive requirement [Non-English content], so currently what is the percentage of captive chlorine that we are using and how much we have to sell in open market?
Roughly about 150 ton [Non-English content] open market [Non-English content] [Non-English content] and 100 ton [Non-English content] [Non-English content] consumption [Non-English content] use [Non-English content]. CPW was put actually for a captive chlorine use case, and of late, CPW is actually doing really well for us because of this paraffin oil cost increase. Even the price of CPW has increased significantly. So, although it was initially planned as something where we could use our chlorine so that we don't have to sell negative in the market, it is actually turning out to be, in this specific scenario, a benefit to us.
But sir, that has not played for the second quarter. That means when we have-
It will play more so in this quarter coming up.
Okay, then price revision would be there. The realizations will move up for CPW. That is what you are
They are roughly the same, but we are able to get paraffin oil at a better price. As when the war started versus now, the paraffin oil pricing is a little better at the moment. Also, we had booked in a lot of paraffin oil contracts at a cheaper rate to which that and large quantities. So, we got lucky over there that we had booked in large quantities.
Okay. What are the sir EBITDA margin for CPW?
They actually really go up and down. [Non-English content] EBITDA margin strong, but it really depends on the time. EBITDA margins was not necessarily why, as you know yourself, they were not necessarily why we were going after CPW. The market of CPW is very much available in New Delhi and the north of India, and we are very close to that market. One, the market availability, and second, chlorine usage was the primary thing. But the EBITDA margin goes from 0%- 10% to even 20%, depending on your acquisition, the paraffin oil price, as well as the CPW price. It is again quite high fluctuation in terms of EBITDA margins.
Okay. Sir, lastly sir, [Non-English content] debt number [Non-English content], long-term debt is at around INR 110-
I am so sorry to interrupt. Saket, you may please hang up here.
[Non-English content] ma'am, I will.
Thank you so much.
If you have any questions after, please feel free to connect.
Ladies and gentlemen, a reminder to all the participants, if you wish to ask a question, please press star and one. Next question is from the line of [Mohil Shah from Etica Wealth]. Please go ahead.
Hi sir, a very good afternoon and thank you for the opportunity given. I just have a few questions on your Caustic Soda side. Given the cheaper imports for many players outside, what is the company's pricing strategy in this current market?
In terms of Caustic Soda, the realization has actually improved since last quarter. Last quarter is maybe the worst quarter in terms of Caustic Soda realizations in a very long time. Despite that, we managed to give similar numbers to what we had in H1 last year. The realizations have dropped, but subsequent to this quarter which has gone by, the realizations have improved. Where we are in Rajasthan, actually, we have an advantage of being away from the main competitive market of Gujarat, as well as being away from the ports. How Caustic Soda is priced, it is priced at the import-export price at par with the rest of the world. For example, if at the port or in Gujarat, Caustic Soda costs INR 32,000-INR 33,000, in Alwar or in the north, it will cost roughly about INR 36,000-INR 37,000.
That is the difference between the freight from Gujarat to the northern India. As the competition is less, our pricing strategy is always whatever the rate is in the world or whatever the rate is in Gujarat, plus around INR 4,000-INR 5,000, the cost that it takes for them to come to sell in the north of India. So that is our exact pricing strategy.
Okay. That was really, really helpful for me to understand. And one last question from my side. I just want to know what would be the key drivers for your products and volume growth in the next, say, two to three years?
Can you repeat that? Sorry, I missed that.
What would be the key drivers for your Caustic Soda demand and volume growth for the next two to three years? How will this demand come in, and how will we cater to it?
Right. As I mentioned earlier, we have about 300 tons of production right now. In July onwards, we will be about 360 tons. Not only that, we will have about, within the 360 tons, about 100 tons of flakes. Flakes is a product which can be sold on trucks as opposed to tankers. It can reach much further, and the freight cost of flakes is much lower, as you can imagine. Flakes is 100% Caustic Soda flakes, as opposed to lye, which is a liquid, 47%, which means 53% of the liquid in the tanker is water, 47% is Caustic Soda. Volumes growth from our front as a company can happen significantly in Caustic Soda flakes. It would allow for us to be able to sell anywhere around India at a much cheaper fraction and potentially even export, something that we do not do at the moment.
In terms of volume growth, besides the fact that we are at only about 300, 360 tons, we intend to take this company to about 500 tons of Caustic Soda, including flakes. Besides that, go into specialty chemicals, as I mentioned earlier on this call. That is going to be our primary focus to be able to diversify away from the commodity cycles. Although, as I mentioned earlier, we have significantly taken away from the commodity cycles by improving our cost efficiencies significantly.
Okay. That is it from my end. Thank you for the guidance given. Thanks a lot.
Thank you.
I can join the queue. Thank you.
Please.
Thank you. Next question is from the line of Shruti Sharma from Sharda Family Office. Please go ahead.
Hello, thank you for the opportunity. My first question is, once the 47 MW DC renewable energy portfolio is fully operational, what proportion of the company's total power requirement is expected to be met through renewable energy? Is the target of approximately 40% still on track?
Yes, that's right. Subsequent to the starting of this, which started in late September, early October, we are now at about 40% of all energy consumed through renewable sources. Very much on track, and now we are meeting that target. Now all our consumption, 40%, is through renewables. The intent is to be, in the next two years, at about 70%-80% renewable, actually. We have those targets on as well. As and when those contracts are finalized, they'll be available for We'll be obviously giving it to BSE and NSE once those contracts are finalized. But within two to three years at most, we'll be at about 70%-80% renewable.
Okay. Can you please provide an update on the 10 MW wind solar hybrid project, particularly regarding its current status and expected timeline for commencing power generation?
Right. Again, I just want to say that when I say I will be at 70%-80% of power consumption through renewable sources, that's primarily because Rajasthan allows for this policy at the moment. The other states in India do not allow for people to get to this amount of renewable level. In Rajasthan, 2x of contract demand is allowed in renewable. This is a forward-looking statement I have to mention. If the laws allow for us to do this, as they do at the moment, we'll be at 70%-80% in the next two to three years, unless there is any other change in law in Rajasthan, because there are no other states that allow for this to happen right now. Second, you asked about the 10 MW Continuum project. That is online.
We are already receiving power from last year on this basis, and very much part of our results already.
Okay. That was all for my side. Thank you. Thank you so much, sir.
Thank you.
Thank you. Next question is from the line of [Shalen] Shah from Shah Family Office. Please go ahead.
Yeah. Hi. Thank you for the opportunity.
Thank you.
My first question would be, how does company plan to utilize the Battery Energy Storage System to optimize power procurement and manage energy cost and ensure a reliable power supply to the company?
Right. For the moment, we only have about 1.45 or 1.5 MW of battery. It is very small and actually quite insignificant, and that's primarily because the law mandates for us to have this. Besides that, we don't have much battery, and this battery will not have any real consequential meaningful difference on our results or on our consumption of renewable power. This is not going to play a major role for us, actually, not at the moment at least.
But is company planning to implement BESS in future?
Yeah. In this one project, we have about 1.45, 1.5 MW of BESS. I can get the exact number later. BESS is not so significant in Rajasthan at the moment, because Rajasthan's policies only state that you need 5% BESS for your renewable power, which we are mandating by setting up whatever BESS is minimum required. Because hamari banking mein at this time jaati nahi hai, we don't need a very large quantity of BESS. BESS is not a significant generator of electricity. It's actually just a storer. So it's not required unless the state mandates for you to have the BESS. We are able to consume the power that we generate on the go, so we're not too concerned with having a significant amount of BESS at the moment. And we assume that BESS pricing over time will fall, as it does with all things.
We will not invest heavily in BESS until we find that there is a significant use case for that.
Okay. Second question would be like, what is the timeline to increase the Caustic Soda from 300 to 500 tons, as you said before?
We, from 300, will be at 360 tons by July of next year, as I mentioned. Between March and July of next year, we will be from 300 to 360. Subsequent to that, only one very large electrolyzer, about 120 to 140 tons, will take us directly to 500 tons. The timeline I cannot commit to at the moment. It would be forward-looking for me to commit, but the investment required for another 140 tons would be another INR 140 crore-INR 150 crore. Now, that investment can either go into increasing our Caustic Soda production, or it can go to significantly diversifying into specialty chemicals. We are yet to take that call as to which comes first. As I mentioned, we are comparing different companies, different products at the moment.
Although our EBITDA numbers are quite strong on Caustic Soda line, we may choose to diversify to only diversify away from the commodity chemical cycle.
Okay.
I can't commit a timeline. Sorry.
Okay.
Because they're still doing an analysis as to which way to go, specialty chemicals or commodity chemicals, and expansion. Depending on whichever comes first, the other will come, but it'll come on a later stage. That's all.
Okay. And sir, would it be funded through internal accruals or debt sort of thing for you guys?
Actually, we are very well poised to do any of those. We have the option of equity, debt, and internal accruals. I'll start by each of them. Internal accruals will be available to us July onwards as our CapEx plan completes. July onwards, we'll have at least about 80 odd crore of free cash flow to be investable in any business that we may seem fit, whether specialty or commodity. Second, debt. We are in a fairly good debt-to-equity level. We are well serviceable debt to EBITDA is also strong. The banks are very, very supportive to us. We're able to get more debt, but we may not necessarily choose to be over-leveraged either. The third is equity, because we, as promoters, have 75%, 74.75, I'm not exactly sure exactly the exact, but 74 point something odd percent.
It means that we can definitely leverage this equity to be able to significantly improve our chances of making a big investment into a new company or any other acquisition that we may deem fit. We have all three options actually available to us at this point. And I find that this point is a very big inflection point for this company going forward, because all our expansions, all our reduction in power costs, all are aligning at a time where we can really put our next best foot forward.
Okay, sir. Thank you, sir, for answering my question. It was really helpful.
Thank you.
Thank you. Next question is from the line of Ruchit Shah, an individual investor. Please go ahead.
Hi, am I audible?
Yes.
Hi. Sir, just wanted to ask a couple of questions with respect to remuneration policies, if we have anything specified. From optics point of view, there have been some concerns with respect to the remuneration as a percentage of the profits.
Right.
If you could just elaborate a little bit, because it would help clarify the optics.
Right. Basically, there have been remuneration policies that have been approved by the shareholders and the board members. Earlier, the policy was 4%, 5%, 6%. Now what we've changed it is we've capped it at 4%, actually. What the optics in terms of earlier, which was that it was increasing to a level that may not be appropriate, we have tried to cap it to some extent. In that sense, we have in the next financial year capped it to about 4%. I believe that is an appropriate thing to have done, seeing that our profitability has grown significantly between when Ajay ji and I have meaningfully joined the operations. If you see our company's trajectory from 2022 to now, the company's totally changed, and that's primarily because of my work and Ajay ji's work.
But understandingly, now that the trajectory has changed and the profitability has increased a lot, we are wanting to reduce these sort of incentives that may be due on those ROE and profitability. So we are in the process of reducing it and actually have done so, actually.
Oh, okay. Great. And if you could just elaborate a little bit with respect to how is it structured in the form of fixed versus since there has been a change in the policy, how is it with respect to fixed pay as well as the incentive with respect to performance?
I can have the exact remuneration policy available to use after the call. Just we can connect. I do not have it exactly with me, but I can tell you on the call itself that it has reduced, and going forward, the bonus payable as a part of the revenue has reduced significantly. But I can have the exact policy available to you, provided that it is appropriate for me to do so. The Board has already approved this.
Okay, sir. Thank you, sir.
Right. Thank you.
Thank you. Ladies and gentlemen, we will take that as the last question for today. I would now like to hand the conference back to the management for closing comments.
Thank you, everyone, and thank you for tuning in. If you have any questions pertaining to whatever we have missed out on, please connect with Smit. Smit from Adfactors is the first point of contact for any questions that we may have. Any answers that I gave with regards to the fact that the CFO will connect with you later or provide, please feel free to do so, and we will provide all details as necessary. Thank you for joining us on the call, and thank you to Smit for coordinating this call.
Thank you very much, sir. On behalf of Lords Chloro Alkali Limited, that concludes this conference. Thank you all for joining us today, and you may now disconnect your line.