Q2 23/24

Nov 19, 2024

Summary

Q2 margins improved sequentially despite lower revenue and volume, while H1 consolidated results weakened YoY. Growth plans hinge on commissioning new capacity, price recovery and delayed battery and DME demand.

Please note that this conference is being recorded. I now hand the conference over to Mr. Amogh Deshpande from Elara Securities Private Limited. Thank you, and over to you, Mr. Deshpande. Yes. Thank you. A warm welcome as we are going to discuss Balaji Amines Q2 FY 2025 results. It is our pleasure to be able to bring to you the management of Balaji Amines Limited, led by Mr. D. Ram Reddy, who is the Managing Director. With these words, I will now hand over the conference to the Balaji Amines management for their opening remarks, which shall be followed by a question and answer session. Over to you, sir. Thank you, Amogh. A very good evening and a warm welcome on behalf of Balaji Amines Limited to all of you who have joined us for this phone call to discuss the operating and financial performance for the quarter and financial year ended Q2 FY 2025. We appreciate your time and interest in our company's performance. I hope everyone had an opportunity to go through the financial results and investor presentation, which have been uploaded on stock exchanges. We are pleased to announce a steady performance in Q2 FY 2025. The industry environment has remained challenging, impacting our revenue streams, with volumes staying flat during the first half of the year. Despite these pressures, particularly from pricing, our EBITDA margins have improved by 110 basis points over the previous quarter. This positive growth is a direct result of our strategic focus on higher margin products, which has strengthened our overall profitability. Additionally, both the API and Agrochemical sectors have demonstrated strong potential for long-term growth, presenting promising opportunities as we move forward. We are pleased to announce the successful launch of our state-of-the-art methylamine plant at Unit IV on 10 November 2024. This advanced facility will provide us with a significant cost advantage over the competitors. We have successfully increased our annual capacity from 48,000 metric tons to 88,000 metric tons, representing a close to 100% increase. However, it is important to note that while the plant is already commissioned, it will take some time to reach optimal levels of capacity utilization. We anticipate achieving full utilization by financial year 2026 and 2027. Additionally, Unit I and Unit III have successfully achieved BIS certification for Morpholine, reinforcing our commitment to the highest quality standards. This accomplishment positions us as the only BIS-certified Morpholine manufacturer in India, further elevating our reputation for quality and reliability in the industry. With this, we move on to the updates and the progress of our critical projects reflecting our unwavering commitment to innovation, operational excellence, and value creation. The enhancement of our DMC Propylene Glycol plant with additional equipment is progressing as planned. A majority of the required equipment has already been delivered, and we anticipate commissioning within the current financial year. Efforts are underway to enable the production and pharmaceutical-grade Propylene Glycol by augmenting the existing DMC Propylene Glycol plant. The commissioning of this capability is also expected within the current financial year. The installation of the Dimethyl Ether is advancing steadily. We project commissioning by the end of this financial year or the first quarter of the next financial year. The company is undertaking modifications to the existing ethylamines plant at Unit I to enable the production of isopropylamines. With a planned capacity of 20 to 21 tons per day, this project will utilize most of the existing infrastructure. The plant is scheduled to commissioning in the next financial year. Speaking of the N-Methyl Morpholine plant, it is currently being developed at Unit IV with a capacity of 15 metric tons per day. We are in the final stages of detailed engineering and half of the required equipment has already been ordered. Civil works are expected to commence by the end of November 2024, with the plant anticipated to be operational in the next financial year. In alignment with the ESG commitments and carbon emission reduction goals, we have obtained the necessary approvals to establish a 20-megawatt solar power plant near MIDC Chincholi, Maharashtra. In the first case, we are setting up an 8-megawatt DC of 6-megawatt AC solar power plant expected to be commissioned within this financial year. This initiative will substantially reduce power costs across all our plants, further strengthening our sustainability efforts. We are also proposing to set up a new plant for the manufacture of NBPT with a capacity of 2,500 tons per annum. This project is scheduled to be undertaken in the next financial year. We are planning to establish a new acetonitrile plant at Unit III, MIDC, Chincholi, with a capacity of 60 metric tons per day. Discussions regarding the transfer of the latest technology aimed at reducing production costs are in the final stages. We expect to sign the agreement by the end of November 2024, and new equipment based on this technology will be integrated with the existing acetonitrile plant at Unit III. Balaji Specialty Chemicals Limited is making significant investments across a diverse range of products, which will enhance the portfolio and strengthen our market position. The products include hydrogen cyanide, sodium cyanide, 30% and 100%, Ethylenediaminetetraacetic acid, EDTA, disodium salt, benzyl cyanide, phenylacetic acid, triethyl orthoformate, and trimethyl orthoformate. In recognition of the scale of potential of this expansion, the Industries, Energy, and Labor Department, Government of Maharashtra, has granted Mega Project status to our Balaji Specialty Chemicals expansion under the Package Scheme of Incentives 2019. This project involves a proposed phased investment of INR 750 crores. I would like to reaffirm our commitment to maintaining a debt-free strategy, which continues to be a cornerstone to our financial approach. We ensure that we remain agile, resilient, and well-positioned to capitalize on growth opportunities while minimizing financial risks. We want to strategize on expanding our product range and investing in advanced manufacturing capabilities to set ourselves apart from competitors and seize a larger share of the market. We also believe that this approach will continue to serve us well as we move forward. Now, let me take you through the consolidated financial operational performance. Revenue from operations for Q2 FY25 stood at INR 356 crores as compared to INR 395 crores in Q1 FY25. Total volume stood at 26,335 metric tons for Q2 FY25 as against 28,071 metric tons in Q1 FY25. EBITDA for Q2 FY25 was INR 70 crores as compared to INR 74 crores in Q1 FY25. EBITDA margin for Q2 FY25 stood at 20% as against 19% in Q1 FY25. PAT for Q2 FY25 was INR 41 crores as compared to INR 46 crores in Q1 FY25. Diluted EPS for Q2 FY25 stood at INR 12.65 paisa per equity share as against INR 13.36 paisa in Q1 FY25. For Q2 FY25, amines volume stood at 7,660 metric tons, and amines derivatives volume stood at 8,685 metric tons, and specialty chemical volume stood at 10,046 metric tons. On standalone basis, we are a zero debt company. Revenue from operations Q2 FY25 stood at INR 336 crores as compared to INR 338 crores in Q1 FY25. EBITDA for Q2 FY25 was INR 64 crores as compared to INR 64 crores in Q1 FY25. EBITDA margin for Q2 FY25 stood at 20% as against 19% in Q1 FY25. PAT for Q2 FY25 was INR 40 crores as compared to INR 41 crores in Q1 FY25. Diluted EPS for Q2 FY25 stood at INR 12.37 paisa equity share as against INR 12.51 paisa in Q1 FY25. Now, coming to the consolidated performance for the H1 FY25. The revenue from operations for the H1 FY25 stood at INR 749 crores as compared to INR 857 crores in H1 FY24. EBITDA for H1 FY25 stood at INR 144 crores as compared to INR 164 crores in H1 FY24. EBITDA margin for H1 FY25 was at 19%. PAT for the H1 FY25 stood at INR 87 crores as compared to INR 104 crores in the H1 FY24. Coming to our standalone performance for the H1 FY25, revenue from operations in H1 FY25 stood at INR 664 crores as compared to INR 672 crores in H1 FY24. The EBITDA stood at INR 128 crores in H1 FY25 as compared to INR 109 crores in H1 FY24. Our EBITDA margin was 19% in H1 FY25 as compared to 16% in H1 FY24. PAT for H1 FY25 stood at INR 81 crores from INR 67 crores H1 FY24. The diluted EPS for H1 FY25 stood at INR 24.98 paisa as against INR 20.73 paisa per equity share in H1 FY24. We remain steadfast in our pursuit of excellence and are confident in achieving these milestones, thereby delivering enhanced value to our stakeholders. Now, I leave the floor for the question answers. Thank you. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on the 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 Rajiv Rupani, an individual investor. Please go ahead. Yeah. Good evening, sir. My first question is regarding DME. Sir, in the May concall also, you had mentioned about the gazette notification for blending of DME with LPG, and it has been, I think five months. So when do you think, do we get this gazette notification for blending of DME with LPG? It shows as of now, it has gone for the publication. So we are just waiting for the publication. Maybe by end of this month, the notification may out. Okay. And sir, once this DME plant gets commissioned, what kind of capacity utilization can we expect in the first year? Too early, Rajiv. It's a product first time in the country, an introduction as an alternate to the LPG, also first time in the country. It will take some time, and it is too early to assume any numbers or any capacity. But definitely, we feel that it should be a game changer. Okay. My next question was on DMF. Now that our new methylamines plant is commissioned, can we expect 100% capacity utilization for DMF? Also let us know- Definitely anti-dumping duty and exports. We are aiming for, if not 100%, at least 80%-85% capacity should be utilized for the rest of the year. We are trying our level best for the anti-dumping. Maybe for the next quarter, we'll have to initiate again for the anti-dumping if the price trend continuously grows like this. Okay. My next question is on the BSC Unit 2. Sir, last you had updated us that the CapEx will be in two phases, phase one and phase two. I would like to know, when does the phase one CapEx gets complete, and when do the plants get commissioned, and phase two timelines? You can take phase one exactly 11 to 12 months from today. The phase one will be completed. There will be two to three plants will be commissioned by exactly 365 days from today you can calculate. The phase two will be another 12 months from the date of commencement of the phase one. Okay. My next question is in BSC Unit 1. Sir, last time you had talked about de-bottlenecking, and by that, we would produce more quantities of piperazine and DETA instead of EDA. Can you update us on that and the capacity utilization in Unit 1? Yeah. That work is actually going on. Probably it may take another four to six months time, whereby, you will see not only piperazine and DETA, we are likely to get the additional new value-addition products like DETA also, we are likely to get. Most of the EDA will be consumed for producing these things. A lot of new things are happening, Mr. Rajiv Rupani. We will be varying in the next four to six months in the realistic figures. We will be adding one or two fresh equipments for the existing plant of the Unit 1, where we will get all these new products, like increased capacity of the piperazine, increased capacity of the DETA, then new addition of DETA and AEP also, much better quality AEP it is getting. Sir, is this taking longer than usual, the de-bottlenecking, because we have talked about this in the May con call also. See, there is a lot of new development happening, Rajiv. We do not want to take the hasty decision. We want to take the right decision. Whatever decision we take, whatever modification we do, it should be the latest as on the date of commissioning. That is the reason it is taking a little time. You will hear better only maybe in four to six months, the new things will happen. Thank you. I will get back into queue. Thank you. Thank you very much. Thank you. Next question comes from the line of Dewang Mehra with SKP Capital. Please go ahead. Hello, sir. Am I audible? Yeah, I am listening. Go ahead. Can you give us a guidance of what FY 2025 will look in terms of volumes? Are you seeing any sort of price increase which is visible across certain segments? Yeah, definitely. As of now, for the half yearly, if you take standalone basis, we have done 6%-7% volume growth when compared to the last year volumes. By end of the year, we expect minimum 10%-12% of the volume growths. As regards prices, you are well aware that last two quarters, prices were going down. Now, we expect, leaving one or two products, majority of the products are getting settled down with the reasonable prices. Maybe it's not in this quarter. Definitely, you will see the end of the financial year, you will see the actual realistic increased prices. Okay, sir. Got it. And sir, who are the primary target customers for MIPA and DIPA? In which industry do you foresee the highest demand? How we are going to fund our CapEx plan for both our Balaji Amines and our subsidiary company? See, MIPA, DIPA is within the same basket. The customers are into pharma and agro divisions. All these actually exist in the customer base only, who have required these materials. CapEx for this product, there will not be major because we will be using our Unit 1 ethylamine plant, which was old ethylamine plant, idle. Same equipment, same catalyst we are going to use. There will not be much, only there will be some storage and some modifications required in the clearances like environmental clearance and NGDB. Those things were already ahead of being. As regards specialty chemicals, we are having almost INR 750 crores CapEx totally lined up in the phase one and phase two together. Phase one, maybe about INR 300 crores-INR 400 crores, which will be met from mostly internal accruals. At the end of phase two, we may need INR 100 crores-INR 200 crores from the borrowing. Got it. Balaji Amines, all the expansions will be done from the internal accruals only. Okay, sir. Yeah. Last question. Methylamines plant has just been commissioned, right? How do you see it's going to impact our top line? Top line, you might have heard what I said just now in my opening remarks. Our existing capacity is 58,000 tons, which we are increasing to 88,000 tons. It will definitely take some time to get into the optimized level of capacity utilization. Maybe in the next year, we will see some 50%-60%, but we expect in 2026 and 2027, we should be in a position to utilize more than 70%-80% capacity. Okay, sir. Thank you. Thank you very much. You are welcome, Mr. Mehra. Thank you. Next question comes from the line of Mukul Deshpande from Insightful Investment Managers. Please go ahead. Yeah. Good evening. Thank you for the opportunity. A few questions from my end. Sir, we were at active discussions with the battery players for some chemicals like 2-P, NEP, NMP, and the others. Have we received any orders from their end? If not, then when is this being expected? If you could just tell me what the situation over there? Mukul, we are also worried on this because battery manufacturers, nobody has started as of now. We are hearing this for the last two to three years. We are hearing that today or tomorrow they will start. I thought that somebody said that in November one will start the actual manufacturing. But to my observation, nobody is going to start at least the first quarter of the financial year. We are fully ready. NMP is approved with two, three manufacturers who are going to use this, and even DMC is also approved, and we are going to be much better DMC with this Battery Grade implementation in the facility. We are ready. Only thing is, actually, they should start the manufacturing, then we will be doing that. Understood, sir. Sir, on DME, could you quantify the revenues and the margins at 100% capacity from this chemical? Which product you said here? DME, sir. Dimethyl Ether? Yes, sir. That is also too early, because we were expecting some 15%-20% originally, but that depends upon the situation as on the date we commence the production. During that time, how the market acceptance will come. We are well aware, whenever any product comes first time in the market, the buyer industry definitely will try to squeeze, will try to take the advantage of the new entrants. If you want to hear realistic margins, at least you will have to allow minimum six months to one year time to ascertain actual margins. Understood, sir. Sir, can you give an idea of what our second half might look like in terms of the specialty chemicals business? Has the Chinese dumping eased or reduced in the third quarter so far? When will we be back to our historical revenues and margins over here? As I said, we are really facing in one or two products, the major dumping from China. That is one was the DMF and NMP in the parent and EDA in Balaji Specialty Chemicals. We look to be going forward, NMP, once the Battery Grade thing starts, definitely there will be a good opportunity. DMF, since we are thinking of going to utilize the 80%-90%, there we may get some volume advantages even if it is the lower margins also. On a standalone basis, I feel that we should definitely reach, with the same prices also, INR 1,300 crores-INR 1,400 crores annual turnover. If the prices improve, our top-line also may improve towards INR 1,700 crores-INR 1,800 crores also. Understood, sir. Sir, some CapEx that we have allotted for each of those divisions as you've shown in the PPT, which is MIPA, DIPA, NMM, NBPT, and acetonitrile. Each of these categories, if you could quantify the CapEx numbers and the asset turns over here. As I said, some of the plants we are utilizing. If you talk about the MIPA, DIPA, we are not going to spend much. Only debottlenecking is happening. Acetonitrile, there may be INR 40 crores-INR 50 crores will be spending because most of the existing plant will be integrated with the new equipment. That's the reason you will not see much of the expenses there. NBPT and N-Methyl Morpholine. These two together may be about INR 70 crores, I'm telling approximately. INR 70 crores-INR 80 crores will be CapEx in that. Thank you so much, sir. You are welcome. Thank you. Next question comes from the line of Rajiv Rupani, an individual investor. Please go ahead. Yes, sir. I had a question on ACN. Sir, earlier, I believe we had the latest technology, and you were supposed to set the plant in Unit IV. But due to some issues, dumping by China, we did not go ahead with the plan. Now again, you are talking about the latest technology in your press release. Yes. I- We are modifying the existing plan. That's the reason I'm telling you. If you heard my answer to the other question, we are going to few of the equipment integrating with the existing ACN plant for the new technology, which can be faster than establishing a new plant. Okay. Sir, our competitor also has a 30,000 ton capacity, and the Indian demand is 30,000 tons. How does it look for us? I mean, we will export some and supply India? No, when I'm talking about the competitive price. Definitely I'll have my own share in the domestic market as well as international market share also. Okay. I am- We will be having definitely, see the technology, and I'm talking the technology and the consumption co-efficiencies will be definitely totally different from the competitors. I'm talking about not in the Indian, I'm talking about the international competitors. You will see once we commence that. Got it. Sir, my next question is, let's say after two years when the CapEx in the standalone and the subsidiary is complete, what kind of revenues do you expect to do after two years, two and a half years? There should be between INR 3,000 crores to INR 4,000 crores if the prices go to the realistic level. Suppose you know the acetonitrile used to sell at INR 170, INR 180 reasonable prices rather than high price up to INR 400 also, and lower price is INR 110, INR 120 also. If the product goes to the reasonable level, we can definitely touch the kind of capacities we are established. We should be in a position to reach INR 3,000 crores to INR 4,000 crores in two years from now. Thank you. Thank you. Thank you. Next question comes from the line of Rohit Sinha with Sunidhi Securities. Please go ahead. Yeah. Thank you for taking my question, sir. Just in continuation of your participant on this ACN side. Although we started this product quite a long time back and there were some, you can say, issues in the stabilization also of this product. But of late, we have been also looking at the prices which have corrected. So kind of a lower production was there from this product. Now, what has changed that we are adding up the capacity also, and obviously, what kind of demand outlook change in the last few months? See, you are well aware, Mr. Rohit, Balaji is a company that does not go for the manufacturing for the sake of numbers. That's the reason we were not very active in the ACN because the margins were very low, the competition for the international market was very high, and we were looking for an opportunity for the technology of the better, where we can get the better margins. Now we could achieve in our R&D, and the reason we are talking today, the new technology will give the advantage. We already having the plant, just adding few equipments, integrating, and we are going to launch this new technology with the latest pricing. Even you will see the quality of the product also will be like HPLC and all. Okay. Second question on our Morpholine side, as we have received that BIS mark on that. But already we are also adding capacity for one step forward product for Morpholine. Is it like going to impact in demand also for our new product, or we will continue to see good demand for Morpholine? See the third plant which we are talking today, used for the N-Methyl Morpholine, or part of the capacity can be also used for the Morpholine. Today our capacity is almost 10,000 to 11,000 tons. We have the capacity in both the plants together, and country's consumption is almost 9,000 to 10,000 tons. So looking into the next two years' growth, including the domestic and as well as international market, we are adding these capacities, whereby partly we will cater for the N-Methyl Morpholine customers and partly we will take care of the upcoming growth of the Morpholine in the country as well as international market. Okay. Just looking at the overall capacity which we have right now, a lot of capacities are about to commission maybe in FY 2026 or some would be coming by FY 2027 also. So after all these capacities coming into commercial stage, just wanted to know what kind of volume growth we are looking at for Balaji on standalone basis and on consol level for next two, three years. See current year, because the new capacities are only part, like I said, the DME comes in the end of the financial year. It may give very little. The reason I am talking about the 10%-12% on annual basis growth in the current financial year. But definitely after commissioning this, we will see the minimum 40,000-50,000 tons of the volume will be added into the total manufacturing in the next financial year. After commissioning this Dimethyl Ether and the other two plants. Okay. Sorry to maybe asking again on this DME product. I just missed out that what is the status right now on the DME side for blending. Are we- DME is getting ready to the commissioning. It will be ready maybe end of the year or maybe first quarter of the next year, you will see the product will out. In the meantime, the blending notification from the Bureau of Indian Standards, which is initiated with Government of India, is at final stage. It shows on the, if you go to the website, if anybody is listening, you can just go to the website of the BIS and click on the Dimethyl Ether situation. It shows that gone for the publication. It can because of the elections, the state, and the other activities in even international country level also. We expect minimum by end of this month, the notification should be out after publication. Okay. One last question on this DME only. Since we are already adding capacity for MA, on this full capacity, once this DME would be operational, would it require further addition of methylamine, or that would be sufficient, whatever we have added? No. There is no methylamine consumption in the DME. It is totally different. So it's nowhere related to the methylamine, sir. Dimethyl Ether is totally different. Okay. That's it from my side, sir. Thank you. Thank you, Rohit. Thank you. A reminder to all the participants, please restrict yourself to two questions. Our next question comes from the line of Anil Shah with Insightful Investment. Please go ahead. Yeah. I just wanted to ask a question on, are we not really doing a lot of CapEx in anticipation of things going the way they should? We did a large CapEx for DME in the hope that the alternate to LPG will happen. We are still waiting for the notification. We did similar CapEx for a lot of products, primarily for Battery Grade, but we are seeing that's getting delayed quarter after quarter. Now we have planned another INR 750 crores of CapEx in our subsidiary, which today is running at INR 3 crore EBITDA in the last quarter. I am not able to understand, where exactly are we headed in terms of. Obviously, I understand China dumping in multiple products. We have seen many other chemical companies also going through the same thing. Nobody has planned large CapExes on the hope of a few, either EV battery charging or the government doing something. We seem to be doing completely on that side only. If these things don't happen, we've seen what happens to our P&L and our profitability over the last two years. Can you just explain, sir, how- First of all, Anil Shah. Yes. First of all, you must understand what is going on around the country. You must understand the government policies, then you will not talk all these things. There are almost INR 15,000 crores investment at the project end in the EV battery. Do you think that these people not thought of anything? Government has spent on the PLI scheme a few thousand crores, they have allocated for this battery. That is number one. Number two, you are talking about the DME. Do you know how much we import today the LPG? More than 30% of the country's consumption is totally imported today, which goes in millions of tons. I'm not talking about I'm going the total country. If we think of catering surrounding districts, it's more than enough, my 100,000 tons. If I go to the commercial level, if we invest some more money on the small cylinders, which we are not presently concentrating, we are talking about only bulk. We are talking about only blending. If you go to the commercial, we have all surveyed, checked. There is more than 10,000 to 15,000 tons in the three districts. Consumption of the commercial LPG is there. If we cater to them, because government will not come in the way, if we cater this to the private. There is an aerosol requirement in the country, who are presently struggling for the various type of this thing and depending for the imports. That is on the DME. In fact, many people are thinking if this goes as a 20% blending, we need to go minimum another 10 plants like this on the various part of the country. If you Google what the government is thinking on the alternate for the LPG, alternate for the fuels, if you see the speeches of the honorable Cabinet Minister, Mr. Nitin Gadkari, you will understand all these things, what is happening around the country. Number two, you are talking about the specialty chemicals. Yeah. Did you hear what I said, what are the products? These are the products countries largely depending on those products. We are not producing, nobody is producing in the country like triethyl orthoformate, trimethyl orthoformate. We are struggling for the imports. During the COVID, there was an acute shortage of these products. There is a reason we have selected all these products. We are not doing any big borrowings. Simply sitting on the cash will not give you any results, right? We are doing the majority of the expansions from the internal accruals, looking into the future thinking of the government, future policies of the government, we have designed. Any product is not taken decision in single year. These are all taken a year or 2 years time for concluding the decisions for taking these products. Coming back to DME, sir. Since we have already, obviously, the CapEx is done. You are talking about COD by latest in the first quarter of next year. At optimum capacity utilization, what do you think will be the possibilities of an absolute EBITDA that we can make in that 100,000 tons capacity in DME that we have, sir? Mr. Anil, it is very difficult to assume. That is what you people are looking. Everybody, you will be very hurried. Before starting the plant, you want to know what is the EBITDA and what is the profit. But sir, if you have set up the plant, there would be some assumptions that we would have made also. We are just asking on what is that. That's all that we are asking. Where do you think on a rational basis that we can make? Let me finish, my dear. If I say today 30%, immediately you will ask me next quarter what happened to 30%. That's the reason I'm not in a position to tell you. So we are not asking for quarter, we are asking in a broad year, in a normalized year, and I'm presuming even next year. Broad year already given. It will be with the par with the existing investment. The EBITDA will be between 18%-20%. For all the investment what we are doing. On the DME side. Yes. Okay. Sir, battery chemicals now, we also believe that some of these companies are going to start their production very soon, probably in the next couple of months. All of them would- Did you visit them? Yes, sir. We visited them. Then how did you ask me why I am planning the expansion? The question to ask here is, sir, what is. They also would have given you. Do not waste our time and my time, my dear. Let us go realistic. If it is realistic, you should tell, no? Yes, what you have done then. That is what we are asking you from next year perspective, if these plants actually come in operations, then what is the kind of revenue that we as a company can provide to these people? And in the products particularly going towards battery chemicals. I will tell you. Sure. There are one main solvent, which is NMP. Yeah. Nobody is producing. We are only people producing in the country, which is required for all the batteries. Out of all these three, four people, there are two people who already approved the sample. Okay. In fact, they said that we will discuss and we will place the order in November. But when we verified, it is too early. Probably it may take minimum another four to six months time. Maybe in the first quarter of the next year only, the realistic commercial things will happen. That is one thing. Okay. Second thing, they call it as electrolytes. All the carbonates are required in the electrolytes, which are only couple of companies, not all the companies. Couple of companies are going to start this where we will be catering this. Third thing I will tell you, the government has allocated and there are one or two big companies have already jumped into these semiconductors. Again, same products. There are two, three products from our total basket are required in the semiconductor also. With the same little modification in the quality, more of the purity and more of the metal free is required. Assuming all these things, looking into all these things, we are ready with the capacities. We never expected that people will take two years, three years time for the commencing. For your information, there is a company's largest company going for the EV battery. They ask for the sample and price today, they not even started the land digging. When we went and verified the site, they did not start even the land digging, and they are asking for the price and sample. This is the situation with the battery manufacturers. The reason we are ready with the capacity, but we are waiting for the opportunity. Okay. Sir, other than these two, one being DME and the other obviously being more related to the battery chemicals. In general, are we now seeing a little bit more stability in end product pricing? Are we seeing the intensity of China's pricing pressure across the world easing a bit? Definitely, because there are few products. Okay. Like, see, China, other thing also you must aware that U.S. and Europe, they started putting the huge anti-dumping on the Chinese products. That is another additional opportunity to going around world like U.S. and Europe, where you will get the opportunities for these new chemical which we are talking today that like cyanide base, amine base intermediates. In addition to the India, we have an opportunities going around world. Yes, you are right that earlier, four to six months time because prices went rock bottom. Now we have started coming to the realistic. This month we have seen something but it may not be full up this quarter. But definitely next quarter onwards, we feel that the prices should come to the realistic levels. That will give an advantage to the companies who are having the readymade capacities. Thank you. Mr. Shah, please rejoin the queue for more questions. Next question, the last question comes from the line of Bhagwan Chaudhary with Shubh Capital, please restrict yourself to two questions. Thank you. Yeah, thanks for opportunity, sir. Most of question have been answered. Just one question I have. This is regarding that you had mentioned that DMA, the new capacity is coming with the new technology as well as the ACN also, you are coming with the new technology where you will be more competitive in terms of the pricing and all. How should we think that initial capacities which we are having, will those be obsolete? This is a right question I asked me. Number one, the DMA, that methylamine, new technology means as of now, all the plants, even we and whatever competitors are having, those are by nature you will get the three products: dimethylamine, monomethylamine, trimethylamine. Right. By default you will get it. For selling the If I'm not in a position to sell my monomethylamine, sometimes even though I do not have the DMA, I'll have to shut my plant. That was the situation even for the many people who are having that situation. In this new plant, we can produce single DMA, 100 tons, 110 tons per day. Without producing other two products. That is the beauty of new technology. What we achieved in ethylamines also, I said, this I was selling for almost one year. The triethylamine alone we can produce 50 tons, we are producing today without producing other ethylamines. The same thing will happen methylamine. If the DMA demand is there, we can operate our plant only for the DMA. That is the beauty of the technology. That's the reason I'm talking- Same is true with the other, monoethyl, monoamine, this. Acetonitrile. Monomethylamine. Yeah. Same is true with monomethylamine. If you want to produce the 100% monomethylamine, that is also possible for try. No. We can take plant can be, we can take them to the mode of natural. Like existing plants. Like that you can get all the three products. You cannot get the single amine TMA. Only DMA, which is having the demand for the years. So we have developed the technology, and we have implemented the technology. But the DMA's demand is more around the world. So the reason we thought that single DMA can be produced. We started that last 10 days. We started on the 10th. For your information, yesterday's production was 110 tons, only DMA. Got it. Do you think the initial, the earlier plant will also there be in existence and the requirement for other amines will be there, so that will also be functioning equally? Yes. You are right, sir. Got it. Thank you so much. All the best. Thank you. Thank you, Mr. Thank you. Due to interest of time, we have reached the end of question and answer session. I would now like to hand the conference over to Amogh Deshpande for closing comments. Thanks to all participants and special thanks to the Balaji Amines management for sharing their views on the company Q2 FY 2025 performance. We take this opportunity to thank Mr. Ram Reddy and his team once again. Would you like to make any closing comments, sir? Thank you. Thank you, Mr. Amogh. Thank you. I would like to thank you all the participants, all the investors, stakeholders who have shown the confidence on the company. I once again thank you all. I assure you, all the members, company will not let you down for the investment you made. The company will be with you. All the expansions, investments are made by giving the due thought. I once again thank you all the investors and participants. Thank you very much. Thank you. On behalf of Elara Securities Private Limited, that concludes this conference. Thank you for joining us. You may now disconnect your lines.