Ladies and gentlemen, good day and welcome to the Finolex Industries Limited Q2 FY 2026-2027 conference 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 and then zero on your touch-tone phone. I now hand the conference over to Mr. Arun Baid from ICICI Securities. Thank you, and over to you.
Good afternoon, ladies and gentlemen. On behalf of ICICI Securities, I welcome you all to the Q2 FY27 post-result call of Finolex Industries. From the management side, we have Mr. Udipt Agarwal, Managing Director, and Mr. Chandan Verma, CFO. Now, I hand over the call to Udipt for the opening remarks, and then the floor will be open for Q&A. Over to you, Udipt.
Thank you, Arun. Good afternoon, ladies and gentlemen. Welcome to Finolex Industries earnings call for the second quarter and the half year ended 30th September 2026. We are pleased to have you with us today. May I remind everyone that this call may contain certain forward-looking statements based on management's current expectations, and the actual results may differ. All figures that we discuss on the call are on a standalone basis unless we explicitly mention otherwise. Coming to the quarter two FY 2027 performance, the results are available with you. As you might have seen, during the quarter, we had a strong volume recovery with profitability remaining more or less flat due to higher material costs. During the quarter, sales volume grew 28% year-on-year to 83,407 metric tons, as channel destocking eased and the PVC prices also kind of stabilized during the quarter.
Revenue from the operations grew 28%, which is in line with the volume, and it stood at INR 1,094 crore, mainly driven by the volume growth. PBT, as we said, the profitability remained flattish. PBT during the quarter was at INR 153 crores as against INR 158 crores of quarter two FY 2026.
Coming to the full half-year performance of the current year, for the first half, the strong second quarter has largely made up for the weak first quarter, but not to the full extent, and we see that the volume during the first half is 4% lower on a year-on-year basis. During the first half of FY 2027, our volume was 151,106 metric tons as against 157,465 metric tons of the previous year. But this is primarily due to the quarter one lower numbers which we had. Revenue from operations grew during the first half 4% year-on-year to INR 1,978 crore.
This all is primarily due to the quarter two volume growth and also slightly better realizations during the quarter two period. For the full year, our profit before tax, PBT, rose 6% year-on-year to INR 300 crore as compared to INR 284 crore of the previous year first half. On the liquidity front, that continues to remain strong, and we have a net free cash flow of about INR 2,584 crore as on 30th of September 2026.
I want to take you through also some of the recent developments which are taking place in respect to the PVC and the PVC pipes market. One of the several reasons that we saw that the prices stabilization at a slightly better level was the introduction of the minimum import price for suspension-grade PVC resin. However, the geopolitical developments, as we all are aware, particularly geopolitical developments in West Asia, they continue to remain uncertain.
With respect to the raw material supply and also with respect to the PVC supply, but we continue to, as always, monitor them very closely. But it's not only us, it is the industry-wide topic. On the business environment side, I think we all saw quite a lot of disruption in quarter one, driven by the volatility in the prices, to a much more stable in quarter two. As far as the PVC pricing is concerned, although there has been an increase, but the volatility was less. We see that the quarter two volume recovery is happening across the organized industry that was largely driven by restocking by the channel. Traditionally, if you look at it, quarter two is normally a softer quarter for us for PVC pipes as agriculture demand moderates due to monsoon months.
However, our volume growth this quarter reflects a recovery from the price-led destocking which happened in the quarter one. If I try to look into the future a little bit, the recovery, as we expected last quarter, is beginning to show in volume in our current months. What is also is that the second half of this year looks like January to May, which is the pre-monsoon window, which is seasonally our strongest period in terms of volumes. We enter into the second half of the year with a more normalized channel inventory and a steadier pricing environment. We remain, in the midst of all this situation, we remain cautiously optimistic, and our endeavor will remain focused on our maintaining sustainable margin together with the volume growth over time. Thank you for your continued trust and support. We now open the floor for question and answers.
With me also here is Mr. Chandan Verma, our CFO, to try and answer all the questions.
Hi, good afternoon.
Thank you.
All the participants, welcome to Q2 earning call of Finolex Industries Limited. We invite all the questions from the participants, and you can go ahead, please.
Thank you. We will now begin the question-answer session. Participants who wish to ask a question may press star and one on your 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. We have the first question from the line of Sneha from Nuvama. Please go ahead.
Hi, sir. Good evening, and thanks a lot for the opportunity. Just couple of questions from mine. While your volume growth, you said, was led by also restocking and all, what would be the reason for margin suppression? While I understand that you also said that this was not a agri quarter, agri is slightly missing, so it could not be product mix is what I guess. But why margins are under pressure despite your raw material prices increasing and maybe some amount of inventory gain? Could you give some color on that?
Yeah, Sneha, good afternoon. Sneha, as you rightly pointed out, though we have registered a volume growth of 28%, we have seen a slight pressure on the margin side. Now, how it happens on the Q1, when you see at the entry of the Q1, when you see the commodity prices has started to go out, go up at the higher direction, at that point in time, we are having procured certain inventory at the lower side. That got it right during the Q1, but over the period in time, when we procured our inventory during Q1 and which has got effective consumed during Q2, that has resulted into the pressure on the margin side. Basically, it's a time lag where happen, as you know, price gets impact immediately, realization gets impact immediately, but there is a lag in the raw material price.
That is the effect we have seen during Q2.
Just an extension on the same question. What is the kind of a lag impact that we are seeing in terms of passing on the raw material prices, be it PVC or CPVC?
So, as you know, Sneha, the sales price immediately gets reflected in the market immediately basis. However, the margin remained always volatile in terms of our point in booking of the raw material prices and when it get consumed. So, our industry works in a downstream direction where realization will be gets impacted immediately. However, the raw material depends upon at what price, at what point in time we have booked into.
Sure, understood. Could you just give me your PVC, EDC, and VCM prices for the quarter?
Yeah. On an average basis, the PVC has been $771, and PVC, EDC, EDC remain $1,455 on an international market.
Awesome. Thanks. Thanks a lot, sir, and all the best.
Thank you. We have the next question from the line of Shravan Shah from Dolat Capital. Please go ahead.
Hi, sir. Thank you for the opportunity. Couple of things, sir. First, in the 1H, we have a 4% volume degrowth that we have explained that the Q1 loss got kind of set up by the Q2 volume and that too a channel restocking. Given this, and then the last year Q4 also was a significant volume, kind of a 102,000 odd ton. In this scenario, how do we see the volume for the full year?
See, this year, I mean, last year was a different scenario. This year it is a little bit different scenario. But yes, traditionally, the quarter four is a very strong quarter. And as I said in the opening remarks also, as we move into the year, we also see this January to May period of a relatively higher demand for us. So we will see how it plays out. There are too many uncertainties right now in the marketplace on a geopolitical front, what is happening there, and you know how the crude prices have been moving up and down so much. So we will see, but as I said, our endeavor is always a profitable growth, and we will continue to drive in that direction.
But is it fair, given, or maybe you can help us with the how the October till now, or now we are already in November, so October, how we have seen. Is it fair to say we can still see a kind of a degrowth, maybe of whatever 1% or 2% for full year FY 2027? That is a fair estimate?
October was a relatively good month as compared to the previous years. If I look at it from today's perspective, if I take into account the October performance also, then year-on-year, I am slightly on the greener side on a percentage basis, volume growth. That is the positive thing. But at the same time, we would not like to raise expectations. Let us see how this quarter goes. But October was good month, for sure.
In terms of the margin, so far, 1H, we are 11.7%, and previously, we were kind of looking at sub-15 level. Why I am asking this, because in terms of the realization also, if you look at from Q4 onwards, 1Q, 2Q, it is kind of a, let us say, marginal growth versus the kind of the PVC prices which has increased. How do we see the 3Q in terms of the price level, and then on coming to the margin level for next, this second half, and then ultimately the full year? How one can look at the margin?
As far as the PVC pricing is concerned, you know the minimum import price is till mid of January or third week of January. As far as the full quarter three is concerned, we do not see a major price erosion. In the PVC prices, if you look at the domestic demand supply, that is also slightly constrained. At this moment, as we stand today, I do not see any reason that there should be a huge downside on the PVC prices. Probably Chandan can comment a little bit more on the margin situation because he has a better clarity on the cost.
Shravan, just to give you, reiterate our earlier commitment, where we have seen roughly around INR 14, INR 15 per kg of EBITDA margin for a year as a whole we have estimated. And we are continue to remain, our target remains same, and we are on track. On a full year basis, we are expecting a EBITDA margin roughly around INR 15 per kg on an average.
Okay, INR 15 per kg. But in terms of the percentage, if we have to look, because that also depends on—
It depends on the PVC.
It depends on the prices of the resin and the cost also. More or less, 14%-15%, or 15% around kind of EBITDA margin year as a whole we are expecting. Six months ended roughly around, we are having a 12.5% something kind of thing, but year as a whole, 12.5%-13% or 14% somewhere around we will be ending up.
Should be.
Okay. Then, just a data point in terms of the CPVC share, fitting share, and agri share for Q2.
Q2, 8% generally remain the CPVC volume share in our overall volume. And fitting share roughly goes around 7% around.
Okay. And agri share?
Agri, non-agri, we are at the 60/40 around. Agri and non-agri, 60/40 for the Q2.
Okay. So, fitting share has came off from 11% in Q1 to 7% in Q2.
Overall basis I am talking about, on a 6%—
Yeah, yeah. Okay. No, I am specifically asking for the Q2. So, all the numbers that you said right now, that is for 1H or Q2?
So, 60/40 agri to non-agri is the Q2, and 8% CPVC volume is for the Q2.
Okay. And the fitting
Total pipe and fitting this year for the Q2 is 12% on an overall, full volume. 12%.
Okay. Okay. Lastly, sir, on the same in terms of the cash, I understand the same for last many, many quarters. We keep on saying the same thing in terms of this close to INR 2,584 crore. How we will be Because we are not even doing a much CapEx also. This 1H also, we have done just a INR 36-INR 37 odd crore. So, if you can reiterate when we will be going for a CapEx or expansion plans, or in terms of I understand it is a board decision, but still, the huge cash is there. So, something will be there in terms of rewarding to the shareholders, or our stand will remain the same, the board will decide, and that for maybe next couple of quarters will remain the same answer.
Go ahead.
Yes, Shravan. So, definitely the overall decision will come from the board. But having said that, in terms of your question regarding the CapEx, in this year also, we have roughly planned for a CapEx of INR 150 crore. This include more or less routine CapEx, and as we have been talking about, this will go for the further debottlenecking the process. So, that we are on. So, INR 150 crore plus odd CapEx spending is pipelined during the current FY 2027.
Okay. Okay. Got it. Thank you, sir.
Thank you. Participants who wish to ask a question, may press star and one on your touchtone telephone. We have the next question from the line of Nirav from GC. Please go ahead.
Hello, sir. Is my voice audible, sir?
Yes, Nirav.
We can hear you.
Sir, I have one question with regards to outlook. Sir, what we are seeing is that there is acute shortage of water and El Niño effect seems to be picking up. Our business is heavily dependent on agri. In light of this scenario, do you see a scenario wherein demand getting impacted because a lot of talukas are by multiple state governments are being given relief by state governments. So, situation on ground seems to be really very, very tough. In light of this scenario, how do you see the demand panning out in H2, and especially for the agri-related portfolio. Thank you very much.
No, thanks, sir. I mean, your observation and your information is there. I mean, we all see this. We also see the full impact of El Niño also has not been coming as yet. It is expected that sometime in November onwards, we will see the impact and the water availability and the situation which you talked about, particularly in some states is a little difficult. So, it has two effects.
Sorry.
It has two effects. One is that on the demand side, where you will say, did you move water to the place where it is available, to the place where it is needed? There would be an increased demand of the pipe. But at the same time, there is also a little constraint on the farmer income. Okay? However, if you look at some of the other agri-input indicators, for example, if you look at the new tractor bookings, which is up like 14%- 15%, in major agri areas. If you look at the two-wheeler bookings, the rural two-wheeler bookings, that is also a little bit on the higher side as compared to the previous years.
That also gives a little bit of positive indicator to us that, yes, while there is a constraint in the market with respect to monsoon, El Niño effect, but should not have such a big impact from a cash availability point of view. And that is why I was saying in the earlier, responding to the earlier question also, not giving you very firm indicator because all these volatility also on the raw material side, but also on the demand supply. There is a little bit of uncertainty how everything will pan out. Yes, the situation is like this. We keep an watch on this.
Thank you very much.
Thank you. Participants who wish to ask a question may press star and 1 on your touchtone telephone. We have the next question from the line of Ritesh Shah from Investec India. Please go ahead.
Hi, sir. Thanks for the opportunity. Sir, would it be possible for you to highlight what is our piping and fitting capacity right now, and where do we see this number, say, end of this year and end of next year?
We are, Ritesh, our total capacity stands out to be 520,000. This include pipe and fitting both.
Sir, fitting would be how much out of this 5.2?
Fitting would be roughly around 95,000, roughly.
How much is outsourced besides this?
Out of the total fitting requirement, only a smaller portion comes out from our in-house capacity. Rest comes from our third-party sources. Roughly 40,000 is the total generally we produce in a year. Out of in-house, it roughly comes out to be in-house, and you want separate from the subcon and in-house both or what?
Yes, sir. I just want to bifurcate it. 5.2 is piping. How much is fitting? You indicated 95. 95 is captive?
520 include pipe and fitting both.
Correct.
It include fitting as well. Out of that—
Correct.
—fitting capacity roughly comes out to be—
40 & 80.
40 & 80 in-house, and outsourced roughly comes out to be 60,000 or something. Around 60,000.
Okay. This helps. Sir, how should we look at this number, say, over next two years? How will it increase?
Yeah, at this moment, see, we are having a sufficient headroom to complete because currently we are at the 67%-68% utilization level, right? So, we have sufficient headroom for the current year and next year both. So, we are comfortably, we are good with the current capacity.
Right. Sir, you indicated INR 150 crore of CapEx for FY 2027. What exactly is the end use?
Ritesh, see, as you know, we always keep talking in our earlier call also, so there are a lot of debottlenecking exercises going on in the company, where the low-capacity extruder we keep moving, and it gets replaced with the higher-capacity extruder. So, this additional capacity, if anything, will come out to be, it will definitely come out after the next year, towards the end of the next year. Rest of the, out of INR 150 crore, rest of the is the routine CapEx that we are, maintenance CapEx is there.
Sure. Sir, my second question is on balance sheet. Is there any monetization which is still remaining with respect to land, or is it all done?
No, no. So, monetization in terms of, see, we have the land at Ratnagiri, we have the land parcel, we have the land parcel in Masar, we have the land parcel in Urse. So, monetization, whatever required to be done, which was the ideal plan in the Kingfour], that is done in the two years back. At this moment, we don't have any plan to get into this monetization of the existing land capacity.
Perfect. And sir, last question. You indicated margins at 14%- 15%. This is, I would presume it's for the full year. Is that assumption right?
Yeah, yeah. Full year.
Yeah. Sir, what is it that will drive the margin in the second half? Like, are we taking a call on the product mix or PVC pricing inventory gains? How should we better appreciate this?
Yeah, Ritesh, actually you will see, this year also our mix of agri non-agri has gone up. Right. So currently, the current quarter, we are at the 60-40 level of average non-agri. As the ratio of non-agri will go in our overall portfolio and product/ mix, the realization, the per kg margin, and overall margin will go up. So that is how we are looking into the scenario at this moment.
Perfect. And sir, just last question. Are we witnessing any tailwinds with respect to Nal Se Jal? The reason I ask is government has already disbursed INR 7,700 crore. It is not a big number, but it is a decent enough number. So are we directly or indirectly benefiting out of it, or do we see any trickle that we will see benefits possibly, say, three months, six months out?
See, if you look at the total outlay which government had, and out of which what has been released is a smaller sum. Okay?
Yes.
Yeah. It also depends on how the states are doing. And you know that we do not have any direct business. We do all our business through channel partners. Okay? So, it is difficult for us to say what is the direct impact of this on our business. But certainly, if there is more funds which are released by the state and the central governments, that will have an overall impact on the demand.
Sure. Thank you so much. All the very best. I will join back with you.
Thank you. Thank you for your question.
Thank you.
Participants who wish to ask a question may press star and one on your touchtone telephone. As there are no further questions from the participants, I now hand the conference over to the management for closing comments. All right, we have one question from Mr. Ritesh Shah from Investec. Please go ahead.
Yeah. Hi, sir. Thanks for the opportunity. Sir, how should we look at the cash on books? By when will we decide on what to do of the cash?
Hi, thanks for the question. As we've been saying in our previous calls also, I mean, this is a decision which is a board decision, and board will decide when and in what form and shape we want to deal with the cash available. Okay? Right now, there is no such decision. This, whatever we have, continues to remain invested, yeah, into different instruments, and that's our position as of now. No timeline is yet decided. Board will decide that.
Sure. Thank you. Thank you so much.
Hope I answered your question.
Yeah.
Thanks. Thank you. We have our next question from the line of Rishab Bothra from Systematix Group. Please go ahead.
Good afternoon, sir. Wanted to check our utilization levels in both the pipes and fitting business and the resin business.
If you look at it overall, I would say the pipes, the overall utilization is about closer to 70%, 68%, I think, to be very precise, yeah, during the quarter.
Yeah. Okay.
Resin would be slightly different because you know that we have got two lines for resin production. One is on EDC and one is on VCM. VCM line traditionally remains non-operational due to our non-availability of raw material during monsoon, which is not a situation this year only, but this is the structural. It happens year on year. It is structural in nature. Otherwise, our utilization for the resin has been full. But it is primarily more on the pipes and fittings side that we have a different utilizations depending on the plant location and this, but overall about 68%, as I mentioned.
Got it. Any thoughts on expanding the network in regions where we are, we think the opportunity lies, but we are slower in those regions, so that our utilization of the plant.
Yes, certainly. There is a constant effort in this direction to increase market penetration, and to have a better representation in underrepresented areas or underserved areas from the Finolex brand perspective. That is a constant effort.
But that is not capitulating in the higher utilization. I mean, that needs to be If that is the case, if we are in.
Yeah. I mean, I would also like to say that year on year also there is a capacity addition which is happening, which Chandan was just alluding to a little earlier, that year on year we keep doing the debottlenecking of this. Yeah.
Got it.
And that is why we are in a situation like this. And here also, you have to look at the capacity slightly differently, yeah.
Got it.
Because there is always, there is an inlet capacity, and you produce pipes and fittings of different forms and shapes and sizes, right? When you do changeover, there is also a capacity loss.
Got it. What is the yield on the investment you are getting currently? Sorry.
Put that operational aspects into the perspective. Yeah.
Got it. Got it. What is the yield we are getting on the investment which we are currently holding?
Chandan—
Sorry?
The yield on the investment.
Roughly around 7.5%-8% on a full year basis.
Got it. Has there been appreciation of the land value which we were holding since we disposed of them? Can we have a picture on that front? What is being used as there at this point of time? Is there any transaction which is happening on the related party funds in other group entities of the group on that land fund?
No, sir. Definitely, we do not get into any of the related party transactions other than the normal with the directors and all. There is no separate substantial related party transaction which can impact the operation of the company. No related party transaction.
No, no. Why I was asking so is, since we are not monetizing that cash in the sense either through inorganic growth opportunities or reward to shareholders, I mean, that cash has been lying on books since long. So what was the need at that point of time to part off with that huge whole land and not keep it with us for better monetization going ahead?
Definitely, sir. Actually, this is the three years old event that you are trying to bring on the current quarter.
No, I am trying to bring, sir, I am trying to bring—
No, no, sir.
—not in good light.
At the same time, definitely the board has given the direction to go ahead with the monetization. That is why the decision has been taken. Three years before is that event.
Correct. But since then, sir, board has not taken any decision on the funds which is lying on the balance sheet. And investor or analysts have been frequently asking, and you have been I mean, the board has been mentioning that we will take a call at appropriate time. Some clarity should be given on the utilization of the fund. If there is no such need, why not reward this back to the shareholder? I mean, the promoter will also get rewarded, the minority will also get rewarded, is the limited point which I am trying to make.
No, certainly, I mean, board has to take a call on this. As you rightly said that all the shareholders has to be rewarded. But if you look at our dividend chart, so we have been paying also very healthy dividends. Yeah. So shareholders are also getting rewarded that way. But yes, still taken on your—
I mean, I think there should be some deadline that within six months or one year, we should preach on something, either a growth opportunity or the reward to shareholders. Special reward, not the regular reward, special reward. Thank you.
Yeah. Thank you.
Thank you. We have the next question from the line of Aasim from DAM Capital. Please go ahead.
Yeah, hi. Just one question. I am just looking at your volume growth and revenue growth. Both are around 27% odd year-over-year for Q2. Both the growth numbers are mirroring each other despite the fact that PVC prices also would be up around 15%-20%, at least on a year-over-year basis if I look at it at a rupee level. Yet, ideally the revenue growth should have been higher if volume growth is 27%- 28%. What could explain that? Why are they two at the same level? Is there a mix thing that you want to call out or is there something else?
Aasim, as you rightly pointed out, currently, in spite of the increase in the PVC prices, our revenue growth is becoming flat. Two reasons for it. First of all, you pointed out product mix definitely. This is one of the scenarios wherein in our case, the agri share of agri growth is higher than the non-agri share during the current Q2, number one. There are a lot of schemes and discounts we run in the market. Definitely, the increase in the PVC prices always get compensated with the scheme and discount that we run in the market. It is the impact of both the things. One is the product mix and the channel schemes and marketing initiatives that we take.
Would the incentives thing be a larger explanation for this? I would assume that at least the agri, non-agri mix, roughly 60/40 was the case even in Q2 FY 2026, if I am not mistaken.
No, no. It was a—
How much was it?
—it was 56/44.
Pretty much around the same level, right? So that's why I was thinking that is the what would have dragged the realization though? Would it be the incentives thing where you would have focused more on volumes? Would that be a real reason?
No. Aasim, one is that the overall volume you are seeing more or less in line with the last year's corresponding quarter of the Q2 of the last year. However, as we have been mentioning in absolute term and in terms of the product/ mix, the things always goes into different direction, as you see in terms of percentage term, number one. Number two, yes, there are some schemes and discounts which in order to be competitiveness, to win the market competitiveness, we have to have a lot schemes, and that is there in the Q2 as well, which was there in line with the Q1 also. It was there in Q1 and both the Q2 as well.
Would this also have had an impact at your EBITDA margin level, or would that be mostly your high-cost inventory reason that you gave earlier?
Largely.
Because even margins are down 400 bps.
Largely, on a full-year basis, a half-year basis, our EBITDA margin in line with the last year for six months. It is largely on account of raw material prices, largely.
Actually, I was just looking at the Q2 level, but okay, I get the point. Okay, thanks. That is it from my side.
Thank you. We have the next question from the line of Ritesh Shah from Investec India. Please go ahead.
Yeah. Hi, sir. A quick one. Sir, DGTR has recommended CVD on PVC from China. How are you reading into this?
This is DGTR has recommended now Ministry of Finance to comment on it. But I think if we do not know what would be the final decision, but if it happens, it probably would replace the MIP.
MIP, as per you, how much is it? INR 84, INR 85 per kg?
No, MIP is that it is CIF price, which is $767 per metric ton. So any imports below that price are not allowed. The CVD which you are talking about is only, I think, only on the China origin, one particular country.
China. Correct.
Yeah. MIP is for all.
That's right. Okay. Is there any probability of MIP being reinstated? Is the industry case strong enough?
I don't know if the industry case is always strong enough at this moment, yeah? But it is up to the government to decide whether they want to have two tariff barriers. One is MIP and the other is CVD, at least on some countries.
Sure. And sir, would it be possible for you to give spot pricing for EDC, ethylene, and VCM?
Prices have been doing a little bit of yo-yo over the past few weeks. At this moment, it seems to be pretty much on the higher side. Okay? So, for example, EDC could be, depending on the region and the availability, could be anywhere between $450-$500, probably. VCM would be like $900-$950. Ethylene more like $1,200, $1,150, $1,200, depending on the availability, the day you book it, how you are able to get the shipments. Because of all this situation, geopolitical, the shipping rates have really changed dramatically over time. What is also very surprising is that as far as India is concerned, U.S. looks more competitive despite the long distance.
Sure. That's right. And sir, will our average procurement cost, say for Q3, be lower than spot? Are we covered for the entire quarter?
I would say more or less, yes.
Average procurement cost will be lower than spot?
No, we are covered for the quarter in terms of our raw material requirements.
But it will be below the spot pricing, right?
I do not know. Chandan, you have a better handle on the number?
Yeah, in line of the—
—this will be in line with our current inventory pricing.
Sir, I am asking the average procurement for the ships that we would have already unloaded, the pricing will be lower than what you indicated on spot basis for EDC, ethylene, and VCM, right?
No, that is what I am saying. It will be in line with our existing inventory cost, not the lower one, more or less in line with the existing inventory price that we are having. So we have not seen much spike in the price at this moment. Whatever the price that we booked in the during our last consignment, it is in line with it. Slightly increasing, definitely, yeah, not slightly increasing, but more or less in line.
Perfect. This is very helpful. Thank you so much, sir. Thank you.
Thank you. Participants who wish to ask a question may press star and one on your touchtone telephone. We have the next question on the line of Pankaj from Kotak Neo. Please go ahead.
Yeah, sir. Thanks for taking my question. Sir, in terms of supply chain, raw material supply chain, has that changed due to this Middle East
Pankaj, your voice is not very clear. Can you repeat the question, please?
Pankaj, if you come closer to the microphone, that would help.
Yeah, sir.
Pankaj, can you hear us?
In terms of supply chain, from where are we sourcing? Has that changed due to this Middle East war? If you can help us with that.
Yeah, of course. I mean, the situation in Middle East has impacted supply chain for all petrochemical, crude oil, petrochemicals, and down the streams. We are also impacted, but the teams have done excellent work in reestablishing the supply chain from other parts so that our production is not impacted.
What is our total domestic sourcing?
Sorry, total?
Domestic sourcing, sir. Of key inputs.
Sorry, I did not quite get the question.
No. What is our domestic sourcing in terms of EDC or VCM?
EDC, VCM is 100% imported into India.
Okay. Thank you.
Thank you. We have the next question on the line of Aasim from DAM Capital. Please go ahead.
Yeah, I just missed on the PVC, VCM spread for Q2. How much was the number?
PVC, EDC spread Q2, $455.
VCM, sir, not EDC.
INR 171.
That is INR 171 is the spread between PVC and VCM.
Yeah.
Yeah. Based on ICIS international prices as they quote Southeast Asia.
Okay. But that is the average for Q2, right? Not the current.
Average, average.
Average for Q2, yeah.
Okay. Thanks. That's it from my side.
Thank you. Participants who wish to ask a question may press star and one on your touchtone telephone. Participants who wish to ask a question may press star and one on your touchtone telephone. As we have no further questions, I would now like to hand the conference over to the management for closing comments.
Thank you all for participating in this and taking interest in the company's numbers. I look forward to your continued interest in our company and continue to invest. I look forward to also coming back to all of you with our quarter three results. Thank you very much for participation.
Thank you all for your continued interest in the Finolex Industries Limited. We will be looking forward to meet in the new FY next quarter as well. Thank you so much.
Thank you. On behalf of ICICI Securities Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your line.