Ladies and gentlemen, good day and welcome to the Q3 and 9 months FY25 conference call of Privi Specialty Chemicals Limited. This conference may contain forward looking statements about the company which are based on the beliefs, opinions and expectations of the company as on date of this call. These statements are not guarantees of future performance and involve risks and uncertainties that are difficult to predict. 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. Shrikant Sangani, the Group Account Head from Strategic Growth Advisors Private Limited. Thank you.
Over to you sir.
Thank you Alaric. Good evening everyone. Thank you for joining us on the call. It gives me immense pleasure to welcome you all on the call backed by some good results posted by Privi Specialty Chemicals Limited. On this call we are joined by Chairman and Managing Director Mr. Mahesh Babani, Mr. R. S. Rajan, President, Mr. Narayan Iyer, Chief Financial Officer, Mr. Sanjeev Patil, Senior Vice President Strategy and our.
SGA team and IR advisor.
I hope that everyone was able to review our financial results and investor presentation which were uploaded on the stock exchange and on the company's website. The recording of today's earnings call and transcript will be uploaded on the company's website under IR section. The financial results, investor presentation press release are also available on the website. Please note there may be forward-looking statement during the course of the call and which must be viewed in aggregate.
With the risk that company faces.
Mr. Mahesh Babani will provide an overview on the company and after that. Mr. Narayan Iyer and Mr. Sanjeev Patil will take you through recent developments and operating and financial results. I would now like to invite Mr. Mahesh Babani MD to give quick overview.
to the company. Over to you, sir.
Thank you.
Thank you and good evening to everyone.
Despite the global headwind, our company has emerged stronger in the current quarter and indeed throughout the financial year. We are happy to inform you that we have achieved better margins driven by higher yields and better product mix. Going forward, we expect to continue and improve our time cycle which will result in higher productivity. I'm very happy to inform that our company has developed continuous processes for some key products which will bring down the cost of production. Our company has been working on enhancing the capacity of our flagship products with incremental Capex. This is based on multiple customer inquiries for long term tie up for these products. Due to project work related to the capacity enhancement, we took a planned shutdown which has resulted in slightly lower revenue for Q3 as compared to Q2.
As part of our business expansion strategy, we have initiated dialogue with some of our competitors to work with them as co-producers. Our company has streamlined the manufacturing of Galaxmusk, Prionyl and Camphor in which significant Capex was done in the past three years. I am also happy to inform that.
We have significant demand to adequately take care of these product capacities. As we have informed you, we follow a proprietary process for manufacturing pine-based on the response received from the market and the potential of this product. We have already increased this capacity too, which will be operational during the month of February. Our R and D continues to develop high value products, and on the recent development on one of our new molecule we are working on a specific building block which will be made from a renewable wood stock. Several new products are being developed based on the renewable feedstock. In the last quarter we announced the commissioning of a new greenfield product in partnership with Givaudan to manufacture complex ingredients. We are on track to achieve commercial production while ensuring growth. We are fully focused on sustainability.
We are pleased to report a significant improvement in our CDP score, our current goal rating from EcoVadis, which underscores our proactive efforts in aligning with the global best practices, reducing our carbon footprint and enhancing our ESG disclosures. Our company is serving to further improve our rating in the coming years. Our company has increased its share of green power thus making savings in cost at the same time strengthening our commitment to green energy. In closing, I will assure that our company is on track to deliver strong financials in coming quarters. Now I hand over this to Mr. Narayan Iyer for recent developments and operational.
Financial highlights over to you, Narayan.
Thank you, sir. Thank you, Mahesh Bhai, and good evening to all shareholders, investors, potential investors, and stakeholders of Privi. The quarter gone by has reaffirmed our belief and commitment to all of you that Privi is set for a good growth and poised to deliver good profit margins. So giving you detailed operational and financial highlights on the quarter three and the nine months which have gone by. Our total income stood at around INR 493 crores in the quarter three which is a growth of over 20% on a quarter on quarter basis compared to Q3 of 2023-24. EBITDA was at INR 150 crores which is a growth of about 20%. EBITDA margins stood at around 23% for Q3 financial year 2024-25. And we expect to maintain similar EBITDA margins going forward in the near future.
Profit after tax for the quarter was at around INR 44 crores as against INR 29 crores achieved in Q3 of financial year 2024. Overall the exports continues to contribute a good share of our revenue and in this quarter it was at 69%.
A broad synopsis of the nine-month.
Financials that we have reported, which is.
There on our website and at the stock exchanges. The overall total income stood at around INR 1493 crores which is a growth of about 16% for the comparable period. EBITDA achieved during this period is around INR 327 crores which is a growth of about 29% compared to the previous year. Same period EBITDA margin stood at around 21.9% as against 19.6% achieved in last year. Nine months, at the same time, and a profit after tax for the period was around INR 121 crores as against INR 63 crores achieved in the previous period. Exports in this nine months contributed to about 65% which is a very very healthy financial number that we have posted upon. With this I would like to now pause here and open the floor for further questions and answers. Over to the host and SGA to start the Q&A, Shrikant. All yours.
Thank you sir. We will now begin with the question and answer session. Anyone who wishes to ask a question may press star and one on their touch-tone 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 comes from the line of Sudhir Beda from Bheda Family Office. Please go ahead. Yeah.
Good afternoon, sir.
Hearty congratulations on solid strong set.
Of numbers sir, in the given environment.
Thank you.
Thank you.
Thank you.
Really appreciate it.
Yeah.
Sir, my question.
We have seen in Q3 that there.
It's a good growth YoY but slightly subdued kind of growth or degrowth. Slightly QoQ but however margin.
Has improved a lot.
150 basis point improvement in the margin Q1Q. So can you throw some light on this?
Sure. Thank you.
Beda-ji. As Mahesh Bhai explained during his talk, you know we are in the process of enhancing capacity for our flagship products. But to do that we had taken some planned shutdowns and as a result the overall volumes were lower, which has resulted into lower sales, and that's the reason. But this is only a temporary thing, a planned thing going forward, you know, all these efforts for expanding capacity will give you higher revenues and higher volumes to combine. As far as margins are concerned, as.
I said, we have improved the yields.
We are also making some of the process continuous reduce the other cost, and that's how you see improved, improved margins plus our other products. In terms of our product mix, it is in favor of high margin products and that is what is causing the margins to improve between the two, between the quarter last year and this year.
Thank you, sir.
My second question. This year, this particular margin also we have some small benefit because of a currency, you know, which is what has pushed it to a level which is slightly higher than what it normally would be, so we had some favorable currency and other benefits which is what has resulted in this slightly higher than what a.
Normal sustainable margin would be.
Sir, what is the outlook for FY25-26?
The kind of margin you have reported.
Is sustainable and the growth which you.
Have been reporting since many quarters, whether.
This kind of growth will continue.
We.
Are very bullish that we will surely.
Be able to maintain our original track record of minimum 20% growth for the year 2026. We are confident that we'll achieve this. Looking at the out of book position, we are fairly confident we'll achieve this.
Margin, sustainability of margin.
We'Ll be.
Able to maintain the margin or at least surely maintain this, if not improve this.
That's the good news.
You like operates in the environment.
Of contract which you do maybe long term or short term contracts for.
Raw material as well as finished goods.
Can you explain how you have entered into the contract for the?
Next year, and how you know this?
Kind of sales which you are projecting 20%-25% growth.
Seeing your contract, whether.
It is achievable or how it will.
Work as far as raw material and finished goods, sure.
As we explained all along, around 70% of our business is contracted business. And this is with large multinational companies. If I led companies as well as FMCG companies, they follow the calendar year. The good news is that we have around 70% of our business which has been already booked and which is what is giving us this confidence that we will be able to achieve our revenue numbers, you know what we have talked about. And similarly for raw material, we have secured raw materials.
Raw materials for the corresponding volumes of production, which is giving us confidence about the margins. So we are on a very good track, and that's how we see the whole year, and that's how has confirmed that you will be achieving this growth.
And sir, lastly now our sales to the European region is almost 35%-40%. And now we are looking for the new market like Africa and also we are looking at India.
How do we see this market?
Shaping up in the future?
Yeah, so the market within India as well as Africa, the per capita consumption there is so low that there are huge growth opportunities in both these segments in India and other parts of Asia as well as the African markets. We see significant growth there and we see upward 20% growth from these markets and 20%-25% growth from Indian market as well as African markets. So we see significant growth here and we are well placed to operate within these regions only. So we also have the logistic advantage of being within one of the fastest growing economies of the world as well as being close to Africa where we can service the demand increasing in Africa as well.
Great.
Thank you for the opportunity and all the best.
Thank you.
Thank you.
Thank you so much. A reminder to all participants, you may press star and one to ask a question.
The next question comes from the line of Manan Marlani from Kamakhya Wealth Management. Please go ahead.
Thanks for the opportunity.
My first question was since we.
Revised our orders in the month of December and January. So.
Like, what was the guidance from our customer side? What are the order books looks like and did we.
So, from any customer side, do we.
Have any price revision?
Hi Manan. Good evening. Just now what Mr. Mahesh Babani stated that we have good healthy order booking position for the year calendar year 2025. The customer outlook has been very positive during the course of his various meetings along with the business development team. We are very very bullish as far as the calendar year and the year 2025 2026 goes. A good healthy order booking position of 65%-70% as we speak about. That's why we are quite positive and bullish that our performance in the coming few quarters is also going to be healthy.
Any price revisions?
Yes, there is a price increase ranging from various products between about 7%-8% to close to about 10%.
It depends on product to product.
Okay.
So it will be applicable from Q4 itself.
Yes, the market generally quite a few of the sales of Q4 mirror those new prices with that.
Okay.
What's the update on the Camphor side of the business for pharma specifically?
So you know, we are in the process of, you know, shortlisting and supplying samples to the pharma companies and we're trying to get there. We are completing a lot of other regulatory compliances including preparation of Drug Master Files and all that, so it is a long-run process which would be there, you know, so FDA certification also is in progress and will take time to complete, of course, and in parallel we have initiated dialogue with many pharma companies, you know, so it's an ongoing process. You have to realize that you know, getting through the U.S. FDA route is a very long-drawn process, but you know, the longer you went, the better will be the fruits.
Okay sir, when you say 20% growth you mean by?
Yeah, it is a revenue growth that.
We are talking about.
Volume growth should.
Be around 15%, then roughly around there.
Yes, yes.
Okay.
And.
Last question would be.
Any Update.
On the QIP side?
You know, the short term CapEx.
Requirement would be met through internal accruals and debt, and the balance sheet is strong enough to support the additional borrowing one day. It may be planned in future based on how the requirements comes about. As you can see yourself, the profitability is quite good, and so is the cash flow. So therefore, we for the immediate requirement we're doing the CapEx based on our internal accruals and debt, and we will take a call on the fundraiser through QIP at an opportune time.
If need be.
Okay, last question.
Are we still integrating Privi fine sciences?
In this financial year, or it will take some time.
We will inform all stakeholders and shareholders at the appropriate time when it comes around and currently it is separate and we are only talking about Privi Specialty Chemicals Limited. As we.
This forum is for Privi Specialty.
So therefore.
Thank you so much.
I'll join the. Thank you.
The next question comes from the line of Nikhil Porwal from Perpetual Capital. Please go ahead.
Yeah, hi.
Thank you for the opportunity and congratulations to the whole team for the continued execution. Superb execution.
The first question that I have is.
Your gross profit margins are at all-time high. In my opinion I think you have just reached very close to 52%. However, other expenses have inched up significantly to around 16% or in tonnage it's come to INR 72,000 per ton. That's a sharp increase from last year. Anything on what led to the significant increase on other expenses?
Yeah.
So Nikhil, this particular quarter because of certain strikes in U.S. in various ports and also due to uncertainty in the sea voyage that is happening and all, quite a few of our customers had asked us to airlift a lot of material. Due to which in the other expenses you see a little bit of increase. That's predominantly a prima facie on account of the airfare expenses that we have incurred. However, the same have been recovered from the customers. And that's why you also see that an uptick around that. And it's a one-time, you know, addition to that because air freight is not that, you know, it is going to be on a continued basis or so.
Okay, so I mean there's an impact.
On both revenue and other expenses. The margins more or less would have been the same.
Perfect.
Your analysis is absolutely correct.
Okay, next question is also in your initial comments. I think Mahesh Ji mentioned about co-manufacturing arrangements with competitors. So anything on what is that about and what would be the quantum of that and for what products?
Listen, these are some extremely interesting opportunities, but please mind that you know we have already signed an NDA. We cannot be talking about this information about it in public. In due course of time you will of course get the good news and you know it should always be disclosed to our dearest shareholders. But at the moment we are at very critical stage and sensitive stage, so therefore we cannot be really discussing this. I appreciate your interest.
Thank you. Okay.
Okay.
Capacity utilization as per reported capacity in.
This quarter on an annualized basis we are already at 93%. Now with the debottlenecking exercises coming in place, I think it will kick in in the next couple of months. How do we look at the runway beyond FY26 where larger capexes would be required to support growth?
We are in the process of identifying and increasing our capacities apart from debottlenecking. Also, as mentioned in our previous call, we are looking at expanding some of our main products.
The flagship products of the company. Definitely the manufacturing efficiencies are also being improved on a continuous basis. So these along with the new product which being developed by the R and D is going to help Privi in this growth path beyond 26.
So, understand, you know, the growth is coming from various angles, and one angle is existing flagship products, wherein by debottlenecking as well as by making processes continuous, a lot of engineering work to enhance capacities there. But beyond that, we are looking to also add new products on which our R&D has been working all along. So those new products coming into play by end of this financial year, and they will start adding to the revenues, and going forward those products will be adding more and more to the revenues.
So for these new products, have you?
Already created the capacity?
Because I am of the opinion your.
Capacity was at around close to 50,000 tons and you all are sort of debottlenecking the CST a bit and also adding capacity to your flagship products.
No idea about other products so far.
So other products, other products we will be creating capacity. You know that's what, that's what we said that in terms of funding this Capex, we said that the internal accruals and debt would be sufficient. So new products, we will be creating capacities and you should take the overall capacity number with, you know, with a lot of thought and not a pinch of salt lot of thought because you know they are products which sell from $3.2 per product. We sell at $15, $75, $100 also. So numbers may not exactly give you the entire picture but we are getting into some high value and specialty products going forward. So those capacities will be created in the due course of time in this financial year itself.
Okay, one last question from me is to what led to the decline in business in North America and rest of?
The world in this quarter?
There was a year on year decline. Anything on that.
One?
Maybe because of additional demand from other countries we may have serviced it but I don't think it's significant. Loss of business has been there.
Okay, so it's rather rationing of capacity because you all are running short of that.
So yeah.
Because you know, you. It has nothing to do with, by the time the new president was not in place.
Don't worry.
Okay.
Okay, done.
Thank you so much and all the best.
Thank you.
Thank you. A reminder to all participants, you may press Star and one to ask a question.
The next question comes from the line of Archit Joshi from Nuvama Institutional Equities. Please go ahead.
Hi, good evening sir. Firstly, congratulations on a very strong quarter and also for winning all these consequential accolades. I have just one question regarding the margins that have been improving quite significantly over the past two quarters. I recall.
Speaking of margin range of somewhere between 18%-20% at the beginning of the financial year and we have now clocked a good 20% margin consistently.
I just wanted to check if there.
Is any pricing gain for a particular product? Maybe I was tracking the Camphor.
Index which has risen quite a bit.
In the last two odd quarters. So if you could also share your outlook if there's anything changing structurally with regards to any particular product like a musk or a Camphor and if this pricing that you're speaking of is by any chance sustainable at all? Thank you.
So let's go step by step. First and foremost, there is no pricing effect. Okay. As we have maintained that most of our products are sold under annual contracts. So the prices do remain the same. There is nothing that has come from pricing effect. Largely this is driven by two factors. First factor is the change in product mix. Don't let me give you all the names so that my competition and my customers wake up. But the change in product mix is one of the reasons why the profitability has improved and will remain improved. The second thing is a lot of internal steps that we are taking in terms of improving our efficiencies. We have improved the yields; we have reduced the consumption of power and steam. They're making, you know, the plants sweat much better than what they were.
So these are the factors which are being responsible and that's why we feel the trend is secular and it will continue going forward.
Yes, yes. I just have another follow up. I was also seeing a decent enough traction being the traction largely in the musk and specialty revenue segment that we publish in the presentation over the last three quarters. Maybe I think that number has pretty much stayed in the same band. So would this be the product mix explanation that you were speaking of?
Yeah, because you know, it was product. I mean the musk and other specialties.
We're on a low base.
You know, you have to appreciate that individually each product has grown but it is on a lower, much lower base.
And that is why, that is why.
You see its share going up.
You know.
Understood.
So, musk, I'm assuming that this will be Galaxolide musk and means that we probably must have ramped up quite well in that piece of the business.
Yeah, yeah.
We have not only Galaxmusk, but few other products along with that, you know, like Pillow Marant, you know.
Sure, sir, just one last bit if.
I can squeeze in. So your outlook on the camphor industry, how we are placed in terms of demand and pricing goods? That would be very helpful. Thank you.
All the best.
Yeah.
Thank you.
So, Camphor, I think we continue to.
I think, I think we will realize our advantage in this year and so on and it will continue to do full capacity in this financial year. So that's how we look at Camphor.
Thank you.
A reminder to all participants. Please press star and one to ask a question.
The next question comes from the line of Rohit Nagraj from B&K Securities. Please go ahead.
Thanks for the opportunity and congrats on a strong set of numbers. So first question is on the Givaudan JV. So where are we currently? We started sometime in early October, not only in terms of commercial production in terms of acceptance of the products and ramping up of the facility towards maybe the multiple set of products. So where are we currently and what is the roadmap that we are looking at from FY26 FY27 perspective?
Sure.
The commercial production has commenced for the joint venture. For the inauguration, we had a very senior team from Givaudan who traveled to Mumbai to do the inauguration. The commercial production has commenced and ramp up.
Up is on track.
But you have to realize that these are complex products and it takes its own time. So that's where it's on track.
It's on.
It's on what we had planned. It's on track.
Sure.
So we are on track in terms of whatever commitments that we have, you know earlier indicated in terms of revenue potential from this particular JV.
Right.
Yeah,
sure.
The second question in terms of individual geographies, if we can just.
I mean, we are obviously doing very well, but are there any factors which can be?
Which may impact the momentum going forward? Maybe it could be geopolitical issues or any other factors that can hamper the progress that we are seeing. Almost again substantiate that we have 70% of contracted volumes or contracted business which gives us visibility, but apart from that the 30% which is non-contracted. Whether there could be any potential issues in individual geographies. If you can just broadly give us a sense of that. Thank you.
Broadly, as was outlined, we are fairly confident and visible as far as the next few quarters are concerned with the good LV order booking position that our chairman and MD happened to mention for the year 2025.
70% of orders being there, balance 30% is more or less in spot market and the Indian market. We feel.
The geopolitical situation may not hamper too much as we talk today. In fact, we expect the growth to be in place.
Sure.
This is just the last couple of clarifications. One, I missed the 9 months exports number. Can you just tell me that?
Nine-month exports is about close to 65% as I spoke about in my financial letters.
Right, right. I just made that, and one last clarification in terms of the debottlenecking exercise that we are currently undergoing. What would be the incremental capacity that will be added to because of the debottlenecking?
I can't give a number because you know then I'm putting across my capacities but it is significant. We won't mention it otherwise. It is significant.
Sure.
So that will take care of the volume growth for at least the next one to two years, right?
Yes, of course. Yes, of course.
Thank you.
Got it. Thanks a lot and all the best, sir.
Thank you.
Thank you.
Thank you. A reminder to all participants, please press star and one to ask a question.
The next question comes from the line of Vanshika Gupta from JRK Stock Broking. Please go ahead.
Hi, good evening to everyone. So, sir, a couple of my questions have already been addressed. But, you know, coming to the raw material piece, I know 70%, you said, of your orders are confirmed. You know, your raw materials are secured. So I won't be talking about it in the near term, but more in the medium term. You know, the trade tariff that is being spoken about so globally with the U.S. and everything, do we sort of see some impact on any of our products or is that something that, you know, is that something we can discuss without naming the product or raw material, but just a broad overview?
So as far as raw material import is concerned, I don't think there is any change of tariff there. The second thing that you must also realize is that when we, when about 70% of our products are exported and to that extent the raw material also imported, so the unit 2, where most of our manufacturing happens and other units also, we have the export benefits. So the duties don't really to that extent matter, you know. For the unit 2 is actually an exported unit, so one doesn't have to pay their duties. And as far as export is concerned, we are not, we are not, we will not be so severely impacted by the, if at all there are any changes, the changes will be there for, I think apart from India, it could be there on other countries also.
So it's only, it's relative, you know. So I don't think differentially we will be suffering against any other country. So we really don't foresee any challenges there.
So I just wanted to clarify. So essentially if there is something that is, you know, put under trade tariffs, say we import it hypothetically from a third country and then export that product to us, we can simply pass on the cost of, you know, the tariff that is being put or something like that, that won't be an issue. That is what we're trying to conclude.
No, I don't think, I don't think we can make all those conclusions now. We'll face the situation as it comes. But as I said, differentially, there won't be any other country which is differentially benefited as compared to what India.
Where India is, you know so and.
I have one last question on the Capex I know that you spoke about, you know we want to discuss what Capex. If we can just broadly outline in terms of revenue growth how much Capex we estimate for 2026, 2027 going forward the next one or two.
Years that would be helpful.
Yeah.
So broadly we are looking at you know a CapEx of around close to INR 250-300 crores in the upcoming 15-18 months or so. In fact so this will.
So.
This will take care of all the debottlenecking, the capacity increases in our flagship products and immediate new products from R and all that.
One last thing, we are in a dynamic market so whenever we see an opportunity obviously we will be capitalizing on that, you know, so that is.
Yeah, so and one last follow up if you know the fixed asset turnover on your CapEx is approximately 1.5. Most chemical companies have done that. Is it that, is it higher? Is it lower?
It's just about there. It's about there only. We are also like.
So it's about there.
Thank you, sir, from my side.
Thank you so much.
I feel.
Thank you. Participants, you may press star one to ask a question.
The next question comes from the line of Raj Jain from Crystal Capital. Please go ahead.
Raj, please go ahead with your question and unmute yourself in case if you are muted.
Can you hear me properly?
Yes, yes.
Thank you for the opportunity.
Do we have, do we plan to enter new geographic developing like South Asia market or China?
Yeah, we do sell in these markets also.
Okay and one more is that also.
Can you give me some color on?
New products which we are planning to commence in coming quarters and R&D spending etc.
No.
I don't think we would like to, you know, awaken competition or other things in terms of giving out products. But we can only say that these are the products that we are getting into are unique products and they are high value, obviously high margin products, but giving names is sensitive. I think you will appreciate product.
Thanks a lot.
Thank you. Participants, you may press Star and one to ask a question.
The next question comes from the line of Nikhil Porwal from Perpetual Capital. Please go ahead.
Yeah, thank you. Again, one question is around debt level end of Q3. Anything on where was the debt at Q3?
We are, you know, maintaining our levels much below what we had stated and indicated to you, close to so about 1,000 odd crores or so.
Okay.
On the Working Capital cycle, as you know, the company looking at continuous process. I assume the cycle will reduce, and anything on where do we see that cycle in maybe FY26-27?
As indicated earlier by you know, with all the continuous sources and all expansions having come in place, the ideal level of a working capital cycle should be around 125 to 135 days. So we maintain that.
Okay.
Okay. Yeah.
Thank you.
Thank you.
Thank you.
Thank you.
Participants, you may press star in one to ask a question.
The next question comes from the line of Vinay Nagori from Fintegrity Wealth. Please go ahead.
I just wanted to understand. I joined the conference a little late so I may have missed this, but just wanted to understand what new Capex are coming live in the Q4, so the Galax and JV and what other products are we getting into and when will the capacity ramp up until when we can expect a decent.
Capacity. Sorry, decent capacity utilization for that.
Privi you're talking about.
Yeah, plus Prionyl also Prionyl and Amber Woody Extreme.
We are coming up.
Yeah, yeah.
So.
So let's talk about the JV first. I answered that question earlier. That JV has production already, commercial production already commenced and it is on track to achieve the numbers. What we have spoken about, that's about the JV. As far as the two product names that you mentioned about Prionyl as well as Amber Wood Extreme. So there again we are absolutely on track in terms of achieving those volumes. Capacities have been set up and volumes are on track.
The capacities have commenced for that as well. The production has commenced. And also what are the margins for these products?
If I start telling you margin.
So you know, margins are what should I say? Healthy. So that, that's about it. You know, we cannot be commenting more than that. But obviously we cannot get into a product unless we see margin there.
So.
But for margins we always look internal.
Absolutely.
So one more thing just wanted to understand. So the INR 250. We got a plan of INR 250 crores capacity expansion over the next 15-18 months. So is this something new or? Because we had mentioned the plan for menthol and other products. So that is going to come or is that going to come or is this something new?
This is. You missed off this point. Also our Chairman and Managing Director and myself, we have addressed that stating that these are all, you know, basically increase in the capacities of all our flagship products, certain debottlenecking, certain improvements, better manufacturing efficiencies. So for all of these you know to see the growth prima facie basis the various customer requirement and.
The products being looked for an increase in the growth we are going ahead with the Capex expansion for these new products will come online and for which you know we have already applied for BEC and the permissions etc. That will be the next phase of expansion, so this expansion that we are talking about of 250-300 Capex is to increase all our existing products and a few new products.
So, wish you all the luck. And just on now for the new Capex, it will be from internal accruals itself, or?
We'll be looking at debt as well.
It will be a mix of internal accruals and debt.
Okay, thanks a lot sir. Thank you.
Thank you. A reminder to all participants, you may press star one to ask a question.
Ladies and gentlemen, as there are no further questions, I would now like to hand the conference over to Mr. Shrikant Sangani for the closing comments.
Thank you.
Thank you everyone for joining us on this earnings call. We appreciate the time and showing interest in our company. Also would like to thank the management team for their precious time. In case of any queries you can get in touch with us or Privi team on their email id investors@privi.co.in. We look forward to meet you all over the next call. Thank you.
Thank you so much.
Thank you.
Thank you.
Thank you, everybody. Thank you, gentlemen. On behalf of Privi Specialty Chemicals Ltd., that concludes this conference. You may now disconnect your lines.