Ladies and gentlemen, good day, and welcome to NOCIL Limited Q4 FY 2025 earnings 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. This conference may contain forward-looking statements about the company, which are based on beliefs, opinions, and expectations of the company as on the date of this call.
These statements are not the guarantee of future performance and involve risk and uncertainties that are difficult to predict. 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 the management. Thank you, and over to you, sir.
Thank you, Aviradh, and good morning, everyone. I would like to start by expressing my appreciation for your presence today. Joining me are Mr. P. Srinivasan, our Chief Financial Officer, and our investor relations advisors from SGA. I hope you have all received our investor presentation. If not, it is available on both the stock exchanges and our company's website.
Before we delve into the financial performance, I want to start by providing an update on the previously announced INR 250 crore rubber chemicals capital expenditure at our Dahej facility. This project is presently on track and is primarily aimed at enhancing production capacities or capabilities of our TDQ antioxidant product portfolio.
The new plant with expanded capacity at Dahej will leverage our years of R&D and technology expertise to produce TDQ through a more advanced and greener process. Now coming to the company's financial performance for Q4 Financial Year 2025.
During this period, revenue from operations stood at INR 340 crores, reflecting a 7% sequential growth. Volume also saw a 4% growth compared to the previous quarter, with growth in the domestic and export markets. On the annual performance front, the domestic business saw a flattish growth held back by low-priced imports. However, on the international business front, for the second consecutive year, our international business clocked double-digit growth.
The current macroeconomic landscape is quite dynamic, particularly with the evolving tariff situation in the U.S.A., which adds uncertainty to assessing its potential impact. While the initial assessment does indicate opportunities, we need to be cautious under the current environment.
During the quarter, our pricing remained largely in line with raw material cost movements. However, we continue to experience pricing pressure due to aggressive dumping by rubber chemical manufacturers from China, Korea, and the European Union.
In response, we have filed a petition for the imposition of anti-dumping duties, and the authorities are assessing the situation. Imposition of anti-dumping duty along the lines of our filed petition accounts for around 40% of our overall business. Turning to the Indian tire industry, the outlook remains positive over the medium to long term, with a projected CAGR of 4%-6%.
This growth is driven by replacement demand and a robust automotive sector, supported by increased government infrastructure spending and other favorable policies. Additionally, in the current year, favorable monsoon forecast, along with rising export demand, is expected to support the overall demand.
Our continued focus on sustainability-driven operational excellence through various initiatives across the organization is enhancing our efficiency, and we expect this to gain traction in the coming year. We are also quite positive about the progress being made in our R&D regarding our new products.
On the market front, amid ongoing challenges, our focus remains on strengthening our core, expanding customer approvals, and growing our market presence. We continue to focus on our strategic priorities of enhancing global reach, deepening customer relationships, leveraging our wide portfolio, and establishing supply reliability for long-term success.
We recognize that our recent performance has not met our own aspirations. However, with all the initiatives, both internal and external, that are underway, we are confident to build on our growth path. That is it from my side. I now invite Mr. P. Srinivasan to provide an overview of our financial performance.
Thank you, Mr. Anand, and good morning to everyone. Let us run through the consolidated financial highlights. On the sales volume, the sales volume for Q4 FY 2025 is at 132, taking a base of Q1 FY 2020 at 100. Coming to the revenue, as Anand said, the revenue from operations for Q4 FY 2025 stood at INR 340 crores as against INR 318 crores in Q3 FY 2025.
For the annual performance of FY 2025, the net revenue from operations stood at INR 1,393 crores as against INR 1,445 crores recorded in FY 2024. Volumes for Q4 FY 2025 grew by 4% on a quarter-to-quarter basis.
For FY 2025, volumes on an annual basis grew by 4% as compared to FY 2024. Coming to the operating EBITDA parameters. The operating EBITDA parameters for Q4 FY 2025 stood at INR 34 crores as against INR 24 crores in Q3 FY 2025, with EBITDA margins at about 10.1%.
For the annual performance of operating EBITDA, they stood at INR 137 crores as against INR 195 crores in FY 2024, with margin standing at 9.9% in FY 2025. The PBT parameters. The PBT for Q4 FY 2025 stood at INR 26 crores as compared to INR 19 crores in Q3 FY 2025. For the financial year FY 2025, the PBT stood at INR 115 crores as against INR 180 crores in FY 2024.
On the profit after tax, the PAT, the profit after tax for Q4 FY 2025 stood at INR 21 crores as compared to INR 13 crores in Q3 FY 2025. For the financial year, the profit after tax stood at INR 103 crores as against INR 133 crores.
On this particular aspect, during this year, as we have seen from September quarter, there is a deferred tax credit on account of the change in the LTCG or long-term capital gains tax structure and appropriate load has been reflected in the financial results. With this, we would like to open the floor for question answers.
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on the touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two.
Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Nitesh Dutt from Anand Rathi. Please go ahead.
Yeah. Hi, team. Good morning, and thank you for the opportunity. My first question is that in FY 2025, the single-digit volume growth is despite the double-digit export volume increase. What is the issue on the domestic market volumes there?
Because I believe on an overall basis, the import numbers into India are increasing. Have we lost any market share? Do we have any capacity constraints in any of the key growth products there? If you could just give some color around this.
Yeah. Thank you, Nitesh. First, the last point that you made, there isn't any capacity constraint on any of the products that we have because we continue to debottleneck and expand once we have exploited the debottlenecking element.
Coming to the first part, like we have mentioned, it's been more flattish growth, so it's slightly on the positive, but I would consider this as flattish from a domestic point of view. Quarter to quarter, this situation tends to change.
Maybe there could be a shift in market share plus or minus here and there, but I see it more as a transitionary effect rather than something of a more set market share issue. But like we have mentioned, the domestic market, and you also pointed out that there has been increasing imports, especially with demand and restrictions on some of the other markets.
Right. Because volumes continue to be muted at low single-digit numbers overall, despite the multiple customer engagement initiatives that we've highlighted in the past. Even on a three-year basis at CAGR, we are at negligible overall volume figure and on a negative 3% revenue growth given the price decline. Just trying to understand how to look forward maybe the next couple of years, how can it look like?
Yeah. From a market outlook, we still expect the demand to continue being robust enough, so there is no reason to feel, at least at the domestic level, there is no reason to really feel any negative outlook. But the international market, again, is kind of going through a bit of uncertainty, so we will have to see how that plays out a bit.
But we are quite positive. Like I mentioned, we see that there is a pricing pressure that continues because with impact on raw materials, especially in the last few quarters, it seems to be kind of a moving piece. But the volume growth should come back.
Sure. Coming onto the OpEx side, what I see is there is an improvement quarter-on-quarter. So maybe if you can just elaborate a bit more there. Also I see the per kg operating expenses getting normalized to where it was, say, in FY 2024 or the earlier part of FY 2025, while it increased significantly in the last two quarters for reasons that were given out previously. So is the Q4 number just getting back to the normal per kg OpEx, or is there more improvement likely in the upcoming quarters?
Yeah. Nitesh, good morning. Srinivas here. So we are making conscious effort to improve the per kg optimization or efficiency parameters. Our effort will be always on. It is not that we should see this as the end of the story. We will make a conscious effort to improve further quarter over quarter.
There have been initiatives taken by the management internally to look at every aspect of operational cost and to see how to maximize our potential. So that endeavor or that effort will always be perpetual in nature. It will not be a stop-gap arrangement. It is an ongoing thing.
Right, sir. I know the prices of the key raw materials, like aniline, nitrobenzene, et cetera, those have reduced during Q4. That does not seem to reflect on the raw material cost per kg. Is it because we were sitting on higher cost and entry that the gross margins were under pressure even in Q4?
Yes, in a way, you're partially right. There is some element of legacy cost which is kicking in, and that can be seen if you see the financials, the stock change debit this quarter. Definitely the previous quarter's element has kicked in.
What has happened in Q4 was a very sharp drop, which was not witnessed before. Given that, and we had some plans to perform at a particular operating rate, unfortunately, the demand didn't pick up the way we wanted it such, and therefore, there is a legacy cost kicked in in this quarter.
All right. Got it. Just one last before I get into the queue. On the gross spreads, in the absence of any anti-dumping duties or any protectionist measures around the domestic market, will the current gross spread possibly be the way forward or do we see a meaningful improvement over the next couple of years? If yes, what could be driving this going forward?
Yeah. Given the current circumstance, we still see that there could be a minimal improvement going forward, especially with some of the legacy costs as well as some of the operational efficiency measures that we're taking. In the current environment, there should be a slight improvement.
All right. Thank you so much for answering the questions. I'll get back in the queue. Thank you so much.
Thank you.
Thank you. The next question is from the line of Aditya Khaitan from SMIFS Institutional Equities. Please go ahead.
Yeah. Thank you, sir, for the opportunity. Sir, my first question is that you mentioned to the earlier participant regarding the domestic demand remained robust. But sir, when we look the outlook for the next two years for the tire sector in the domestic market, that continues to remain subdued only around 4%-5% level growth.
It is anticipated, which is lower as compared to the last two years between FY 2024 and 2025. So what is the confidence that we are getting like we could outperform the industry? Is there any sense the Chinese players would reduce their dumping? Is there any sort of such indications you are getting, which is why you are saying the domestic would remain robust?
Okay. Aditya, domestic, you're right, is expected to be around the four-ish type of growth is what some of the outlook figures that we hear. We don't expect that at the domestic, given our current market share we have, we're quite in a dominant market share position. Our growth should somewhere be around the market growth. So domestic growth is always around that, assumed at that level. The stronger growth will come from the export markets.
Okay.
Yeah.
Sure, sir. Sir, on the export market also, we were targeting geographies like the U.S., Japan, Malaysia, Thailand. Any sort of a geography you are expecting to outperform in the next 1-2 years, which has been subdued over the last 1-2 years?
No, it's a mix in all the markets. We are in different stages in all the markets. And we expect traction going into this year also in those markets. Nothing specific. Only there will be opportunities depending on how the tariff plays out. But that's something we will have to wait and watch.
Got it. Sir, this quarter, with the reduction in gross margins and with the improvement in volume, sir, it seems like the product mix has declined. So earlier, sir, we used to say that it has been around 15%. Sir, what is the level now, the product mix or the value-added segment?
Yeah. Aditya, good morning. Srinivasan here. I think on the product mix, yes, there were some challenges and we have the specialty chemicals which we normally expect a 15% range. This quarter there was slight dip. So that changed the whole equation differently. But in the coming years we will see some corrections happening.
Got it. Sir, any indication on the Chinese and the Korean market, how much is the surplus today and till when this can continue to dump in Indian markets?
To address it very differently, today what is happening is, if you see the last 2 years, IRSG, the International Rubber Study Group consumption pattern. China used to be about 35% of the global rubber consumption. But now what we are seeing, it is about 40%, 42%. So the exportable surplus per se has marginally reduced, is what we believe.
However, because there is a slowdown in their growth aspect, that reason the availability came up. But having said that, we personally believe, yes, the surplus will be there, but it will not further deepen. Maybe it will be around the same level as what we expect.
Okay. Sir, just one last question. Sir, in terms of the EBITDA spread when we look. So we are standing in, so the levels today which had been reported, it is similar to the 2014 numbers. Sir, that time, anti-dumping duty was there. Sir, this time the duty is not there. So any indication that this can improve or this could be the new normal in terms of numbers?
I think if you look at 2013, 2014 or 2012, 2013, if you look at that, at that time, I think our operating EBITDA was about 4%. So compared to that, we are now around 10% or 10.5%. So which means there is a definitely improvement on the technological front that is playing out.
However, the challenges this quarter cannot be seen only on an isolated quarter basis. This is a trend which is happening. And this quarter got also extremely impacted by the legacy cost also. So to that extent, the EBITDA reported number was much lower. Maybe If you are having a current cost thing, probably it will be doing better.
Got it. Thank you.
Thank you. Participants who wish to ask questions may please press star and 1 at this time. The next question is from the line of Praveen Kumar from Aequitas Capital Advisors. Please go ahead.
Yeah. Hi. Thank you for the opportunity. I had a couple of questions. The first one was on the data that you had presented on rubber consumption. If I look at the last 3 years in terms of the overall global rubber consumption data, there seems to be it has gone up from 29.9- 31.5, which is roughly a 5.3% kind of an increase.
Whereas your own volumes during the last 3 years, they have increased by around 2.2%. So I am referring to the earlier comment by the management on saying that market share gains or losses could be transitioning nature, and we do not see anything structural.
But if I look at a three-year story, there, even the global rubber consumption has gone up by as much as 5.3, whereas your volumes have grown at much slower rate. Could you provide some color on this? Why do you think that despite this difference, that it is transitioning nature and not some structural change that has happened to you?
Actually, if you look at, I think you are looking at a three-year horizon. I think the last three years has been a very challenging period in terms of a falling pricing market situation. That's number one. But I think if you look at the last six years data, that is more representative. I think what the index is showing is about 108, maybe 29 or 27, maybe. Yeah, about 28% growth in absolute terms in rubber consumption, whereas we have grown in those periods 34%.
Yeah.
That's more representative, I think, yeah.
Just to add, Praveen, I think if the details are not on that slide, but if you look at the details of rubber consumption, the growth is driven by rubber consumption in China. Outside of China, the growth is much lower. That's also one of the contributing factors there.
That's useful to know. Are you suggesting that while rubber consumption in China drove the global growth, the supply from there increased at a much faster pace, and that's been one of the reasons?
Yeah. Clearly, exports from China with all the excess capacity have been overflowing into multiple markets. That's also playing out in the Indian market.
Actually, just to one caveat to the earlier question was actually the reason to also look at the last three years rather than the last six years is that you have added capacity during this time, which came on stream about three to four years ago. This last three to four years might be more useful to look at once you have added the capacity. Because six years ago, you were operating at a much lower capacity, right?
Yes. Six years ago, we were at a lower capacity. Yeah.
We were just building the capacity.
No. The real question is that you added capacity, but did you find it harder, given the changing environment, to be able to actually place that capacity? That's the real question, right?
Yeah. Praveen, I think we have also in one of the earlier calls, we had actually, maybe if you go back a few quarters, we had actually mentioned that within a certain time frame, we wanted to really see that these capacities are utilized fully.
But given the uncertain environment and all the environment that's changed in the last few quarters, we were not able to really clearly put a finger on when we can really even forecast this utilization of the capacity. So that has played out, as you rightly said. Yeah.
Understood. In addition to the earlier question was, I think earlier in this call as well as one of the earlier calls, you had referred to dumping from China, Korea, as well as E.U. What surprised us in particular was the reference to E.U., because in earlier years, we hadn't heard much of this.
I mean, in multiple meetings with the management and multiple calls, you had mentioned that our cost structure is competitive even vis-à-vis the Chinese players. So it was a bit surprising to learn that even the E.U. manufacturers, who we perceive them to be at a weaker cost structure compared to us, they are able to dump in India and actually impact us. Could you give some color on that?
Actually, to clarify, the whole idea is in this player who is a leading supplier, he sets the pricing benchmark. Others do get influenced, and they also follow a similar benchmark. What we have seen today is EU has also followed that similar benchmark, and hence we have no other option as to the rules we have to initiate that.
Because if someone is selling at X price, say by China, and EU is also following that around X plus something, and if it is attracting that anti-dumping rules, I think they get initiated. That's all the case is.
Understood. Last question was on, again, I know that we have given all the uncertainties, we have stayed away from guidance. We are also adding capacity too in some of the products where we had capacity constraints earlier. I understand that. Just from a broader capacity utilization perspective, as well as I think both are interlinked.
Also the EBITDA pattern kind of a perspective. I mean, we seem to be very subdued compared to many of the earlier years. Just wanted to get a broad sense that where do you see. I mean, I'm not asking for the next 2 or 3 quarters or something. I'm talking about the next 3- 5 years or more maybe. What I wanted to understand is how do you see this playing out?
How do you see us emerging from this and getting to maybe the levels of some of the earlier years? Just wanted to add to that, is that going to be more at the mercy of the largest Chinese players, or we have some actions which we are taking to counter that?
Yes, Praveen sir, there are multiple perspectives to this. I think your question is also more defined from a medium to long-term view. Clearly, from a domestic market point of view, with our supplier reliability and the many years of connect and engagement with customers, we're quite positive that we will continue to grow with the market and have even creeping growth in market shares as we go from year to year.
That's one part of it. The other is there continues to be a very positive reception for NOCIL in the international markets. A combination of our past history, supplier reliability, that tends to help us, and being one of the sizable large players outside of China, outside of Europe. So that will continue to play out.
Because we see that the demand per se for some of these products will continue to grow, that is also the reason that we take a call that we can expand and do it by working on technology, working on efficiencies, do all these initiatives internally to be able to be stronger to compete in the global marketplace.
It is a combination. There is also work being done on the innovation and sustainability piece that will possibly give us a competitive edge going forward. These are the multiple factors that we are working on. Outlook medium to long term continues to remain positive, and that is why we place the trust in that direction.
Okay. Thank you.
Thank you.
Thank you. The next question is from the line of Muskan Tulsoki from BNK Securities. Please go ahead.
Hi, sir. Thank you for the opportunity. My first question is, you mentioned in the presentation that there is an improvement in product mix. This pertains fully to the latex segment?
Sorry, can you just repeat your last part? What was that?
You mentioned in latex segment, the non-tire segment.
Oh, latex. Sorry.
No, actually, what we said is, I think the question was one of the participant raised a question why the overall spread also came down is what they were concerned. We had a product mix change and what we wanted to clarify is the 15%, generally the specialty chemicals business, which is a portfolio. In this quarter, we saw some slight corrections, modifications come down and that's why the overall things changed to better. That's why the cross margin spread also came down a bit.
Okay. What was the map mix this quarter and how do we see it improving in the coming years?
The latex business this year, after a couple of years of not doing so well, has improved in the current year. We see that it will definitely not go back to those COVID era, but it will continue to develop in a similar manner that it's been doing in this year. So it's positive.
What was the mix? I didn't get the mix for this quarter.
Mix in the sense the latex part of our business? Have we given out any mix?
No, we have not given.
No, we have not put out any mix, Muskan, on this.
Okay. Sir, can you please share geography-wise exports mix? Like you were very positive on U.S. markets with lot of uncertainties regarding anti-dumping duties. So how are the dynamics changing and do we see enough scope to expand our presence in U.S.?
Yeah. Our spread, let me not put any percentage number to it, but we have always had a larger presence in Asia than in Europe and the U.S. I think in one of the previous calls, we've also shared how our volumes had increased in the U.S. compared to the previous years. This situation does present an opportunity because we do have approvals, we have customers and they can move their purchase shares a bit up and down.
Everybody is kind of watching the situation currently because there is still a lot of not clarity on exactly what will be the duties charged for different products. People are waiting for some clarity to come. But like I said, we see there is opportunity but we need to be cautious about it.
Okay, sir. Sir, in this scenario, assuming dumping continues, will it be a better strategy to focus on volume growth so that our fixed costs can be met rather than holding up the volumes and not reduce the realization to some customers?
Yeah. At the end of the day, Muskan, it is a judicious mix. Or you call it a flexible pricing approach or whatever you like to term it as. That is the approach. The objective is to fill up the volumes for the capacities that we have. That's clearly something that we see will happen going forward. Yeah.
Okay, sir. Thank you.
Thank you. Before we take the next question, we would like to remind participants that you may press star and one to ask a question. The next question is from the line of Aditya Khaitan from SMIFS Institutional Equities. Please go ahead.
Thank you, sir, for the follow-up. My question was on to the new expansion which we are going after vigorously. Considering the current capacity is also underutilized only. We are operating at 65%-70%.
How much time this capacity will take to reach peak utilization, and does this new expansion, considering weaker demand scenario, make sense to expand into this business? Or we should be looking out for new ventures or new businesses wherein there could be high return on capital which we could foresee? Any thoughts on this, sir?
Aditya, like we had mentioned, some of these products are while the overall utilization level is at the range of 60+. For specific products, we are fully utilized, and that means that there is an opportunity to grow.
We have sometimes not pushed hard enough because due to capacity and how much we can supply. But for a product like this, we felt the need that there is a demand. That's how specifically we take calls to expand capacity. We are quite positive that this should gain traction going forward, yes.
Okay. And sir, can we share the import volume, say, for this quarter compared to last quarter?
Can you just repeat yourself, Aditya? Sorry.
Sir, the import volume for accelerators and antioxidants compared to last quarter. Import volume data, if you have.
Import volume data. Let me just see that, Aditya.
Okay. Thank you, sir.
Just a minute. I will just get back to you. Just one minute. Okay, just trying to see whether the data is already updated or not.
Got it, sir. One last.
If I see most of the volumes, it is almost, I would say similar levels, not increased. It is almost similar levels.
Okay.
In some cases it has decreased, but many of the cases it is always at the same levels.
Got it. Sir, just one last question. Sir, in the presentation we have mentioned we have a product basket of 20-plus products. Earlier, sir, we used to mention we are having a product basket of 23-plus. Sir, why is this difference is there?
It's 20-plus. See, we are not specific exactly. We are not saying 23 or 24 or something like that. It's a 20-plus. That's all we are saying. See, what we are trying to give a message is, compared to other players who are generally offering not more than 10 products at any point of time, we are one of the, I think probably the only player in the entire world to offer 20-plus.
Okay. Thank you, sir.
Thank you.
Thank you. The next question is from the line of Praveen Kumar from Aequitas Capital Advisors. Please go ahead.
Yeah. Hi. Thanks for the opportunity again. Just a couple of quick follow questions. One was on the anti-dumping duty. See, in the last few years, there was one ADD which was approved by the DGTR, but I think at the ministry level it was denied.
This time around, again, there is an investigation ongoing, I guess. What do you think about the strengths of the current case, and do you think the operating environment has changed enough for this application to be considered more seriously, both at the directorate level as well as the final ministry level? Thank you.
Praveen, there are one clarification. In the earlier anti-dumping recommendations, which was done in 2021 and 2022, it was for four products. The main ministry, the Directorate General of Trade Remedies under the Ministry of Commerce approved it. They found merit in the case. But at a higher level, at the central government, most of the products were rejected.
Almost 75% of the applications were rejected at that point of time. That's the story which is. That's the past. What we have seen is the climate has slightly changed this time when we are going for it.
Almost most cases are getting approved. That is what we understand today when we see the statistics. Secondly, when an authority is initiating a case, it means it finds prima facie merit in this case or a petition.
They find substance in the so-called dumping practices, and therefore they are initiating the case. As it stands today, they have initiated the case, which means the investigation process has started. It will take its normal course of time before they conclude.
At the conclusion post then, they will come out with the final finding, whatever the quantum of duty applicable, not applicable, how much, et cetera. That's just calculations which they do. If it is recommended, then the central government, through the Ministry of Finance, approves in the form of a customs notification.
Understood. We should expect another 9- 12 months at least, that kind of timeline?
I think something has got initiated in December, something has got initiated in March. I mean, we hope not more than 9 months. Within 9 months, that time we should get some findings coming.
Understood. Second question was on the newer products, right? I think we have been logging on to the company's earnings calls for the last several years. While there has been reference to R&D and looking at new products several times, it's been mentioned in the presentation as well as in the calls and meetings.
However, we are yet to see any substantial contribution from that in terms of new product introduction. Just wanted to get your thoughts on how do you see that panning out in terms of contribution in the coming years, in the medium term, right? What, if at all, have you changed internally to focus more on that? Do you see the need for that, and how are you planning that? Yeah.
Yeah. Praveen, you're right. We have been also speaking about our R&D capabilities in the last few years, and it pretty much has played a significant role in the development and growth of NOCIL, not only from indigenization of products, patented technologies, as well as process efficiency.
On the one hand, what we are also seeing now is in terms of the opportunities for innovation, the opportunities that customers have, the appetite. Domestic large players are open to trying new things.
That's been a certain pivot. Yeah. We have kind of also aligned to this new pivot, and we're quite hopeful that we should have given the timeline, typically in the industry we operate, it takes time because there's a lot of application testing that goes on. These things, and if there is innovation, it takes even longer. That process is underway.
We are quite positive that apart from all the contributions that are happening on indigenization as well as process efficiency and patents, we will see also newer products that will come about. I mentioned in the conference today also in my opening address that we are quite positive with the progress being made here, and hopefully we will have something in the near future.
I appreciate that. Just wanted to get a sense of, several larger and other companies have, in various other segments, they have targets or publicly stated or internal targets on how much contribution they want to see from new products in the next X number of years.
Do you have some internal targets like that in terms of Because it is useful to understand that R&D contributing to efficiencies and what you have stated, newer technology, et cetera, but from an outside and from an investor perspective, to see the fruits of that coming to the top line and bottom line. Right? Are there any internal targets you can share on what you look at to get a contribution from these newer products?
I see the spirit of what you are trying to really ask, and let me try and respond from that point of view. While we have always stated that our specialty today is around close to 15%, I am sure this number, our goals internally is to significantly increase this number. I do not want to put any specific target, but I think there is a scope for significant improvement on that front.
Okay. Understood. Thanks for the answer.
Thank you. Thanks, Praveen.
Thank you. Participants who wish to ask questions, may please press star and one at this time. We would like to remind participants that you may press star and one to ask a question. As there are no further questions, I would now like to hand the conference over to the management for closing comments.
Thank you. Thanks, Avirath, and thank you everyone for taking the time and being here with us today. I hope we have been able to address all your queries. For any further information, please kindly get in touch with me or Strategic Growth Advisors, our investor relations advisors. Thank you for your time once again, and have a nice day. Thank you.
Thank you. On behalf of NOCIL Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your line.