Godavari Biorefineries (NSE:GODAVARIB) Q1 2027 Earnings Call

0:00 Ladies and gentlemen, good day, and welcome to Godavari Biorefineries Limited Q1 FY 'twenty seven 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 the presentation concludes. Please note that this conference is being recorded. I now hand the conference over to Mr. Pachi Ambre from MUFG Investor Relations. Thank you, and over to you, ma'am. Thank you, Sumit. Good morning, everyone, and welcome to Godavari Biorefineries Limited Q1 FY twenty seven Earnings Conference Call. Today, on the call, we have Mr. Sameer Sumaya, Chairman and Managing Director Director Mr. Adi Sinha, Deputy General Manager, Investor Relations and Finance to provide insights on the operational and financial performance.

0:56 Before we begin the call, I would like to give a short disclaimer. This call may contain some of the forward looking statements, which are completely based upon our beliefs and expectations as of today. The statements are not a guarantee of our future performance and involve unforeseen risks and uncertainties. With this, I would like to hand over the call to Sameer sir for his opening remarks. Over to you sir. Thank you. Good morning everyone. Thank you for joining us today for the Q1 FY twenty seven earnings call of Godavari Biorefineries Limited. We appreciate your continued trust, engagement and interest in our company. At the outset, let me briefly set the broader global context. The global operating environment continues to remain dynamic with geopolitical developments, volatility in energy and raw material markets and evolving trade flows creating challenges across industry.

1:54 In these past few months, we were transported into a world where fossil resources have become scarce, higher oil prices, and this underscores the fact that the work we are doing is even more relevant today, especially in the geopolitical context that we see. At the same time, the transition towards supplier based and sustainable alternatives continue to gain momentum as businesses are increasingly focusing on energy security, supply chain resilience and more sustainable solutions. Global supply tightness is also reinforcing the importance of reliable captive private production and supply with increasing preference for dependent and supply partners across local and export markets. In India, the successful rollout of V20 and the continued policy focused on higher ethanol blending are supporting the long term demand outlook for renewable fuels.

2:47 The government has come out with new draft guidelines for E85 and E100 to be used as a fuel. This will lead to market and reflects the government's ability to be more self reliant in energy. A key milestone during the quarter was a successful commissioning of a 200 kilometer per day grain based distillery at Samivari, taking our total distillery capacity to 800 kilometers per day. This furthers our goals of being an integrated biorefinery model, where we can combine bio based chemicals, sugar and ethanol with flexibility to respond to the changing market conditions and capture opportunities across the value chain. Having an additional feedstock of maidgrain gives us additional flexibility to manage volatility in product prices, feedstock costs, sorry, climate effects and possible policy changes.

3:43 The prices of sugar have increased in the past few weeks. The prices of ethanol from sugarcane juice has remained the same over the past few years. So we will continue to look at the economics of sugar and ethanol as we make our choices of diversion. In this context, we are evaluating the addition of 160 kiloliters per day of fungible capacity within the existing 800 kiloliter per day capacity. If there is a payment to more sugar in the coming season, there will be fermentation and distillation capacity that will be available for this grain to ethanol conversion. You may need to only add equipment for Don't recall where I got disconnected, so I'll just start somewhere in the middle. Innovation also continues to be an important part of our efforts to build future growth platforms.

4:32 During the quarter, we secured a Japanese patent for our novel anti cancer molecule and filed an application with the CTFCO for preliminary efficacy trials for our triple negative breast cancer molecule, with trials expected to commence from Q3 FY 'twenty seven subject to government regulatory approval. This marks a significant milestone in translating our R and D efforts into potential clinical application. Overall, the quarter saw encouraging momentum in our bio based chemicals business, progress in strengthening our ethanol platform and continued advancements in our innovation led growth initiatives. We also secured an Indian patent for a cost effective process to manufacture branched alcohol, further strengthening our intellectual property portfolio.

5:17 Going forward, we will continue to focus on scaling specialty chemicals, improving product mix and further strengthening the competitiveness of this business. As mentioned earlier, our efforts of debottlenecking the chemical business are showing significant improvements in sales and EBITDA. We expect this trend to continue and are seeing good market demand. We have therefore decided to invest a further INR25 crores in debottlenecking our capacity to be able to further meet the growing demand for our bio based specialty chemical business. Looking ahead, we remain focused on growing our bio based chemical business through debottlenecking, a stronger contribution from higher value products and improved operating efficiency. In ethanol and sugar, we will continue to leverage an integrated and fungible platform to respond to market opportunities while progressing on our next stable capacity and innovation initiatives.

6:08 Overall, we remain focused on disciplined execution, improving profitability and building a more diversified and resilient business. With that, I would like to now hand over the call to Ashish Sinha, who will take you through the financial performance in greater detail. Over to you, Ashish. Thank you, sir. Good morning, everyone. Let me take you through the key financial highlights for the quarter. For Q1 FY twenty seven, revenue from operations stood at INR $5.57.9 crores, up by 4.6% year on year, while total income stood at rupees $5.59.9 crores, representing a growth of 4.9%. EBITDA stood at INR 2.6 crores compared to INR 6.5 crores in Q1 FY twenty six, with margin at 0.5% against 1.2% last year.

7:04 Profitability was impacted by elevated inventory carrying cost and higher raw material prices. The bio based chemicals business delivered a strong performance with revenue growing 19.4% year on year to INR $1.68.7 crores and EBITDA increasing 53% to INR 19.2 crores. EBITDA margin expanded to 11.4% from 8.9% supported by favorable product mix and the benefits of the debottlenecking initiatives. The integrated sugar cogeneration and ethanol segment remain under pressure. Revenue was INR $3.70 compared to INR $3.82.8 crores in Q1 FY twenty six, while EBITDA loss widened to INR 14.6 crores from INR 4.5 crores.

8:02 This was primarily due to challenging feedstock conditions and higher manufacturing costs, although improved sugarization provided some support. At the confluence level, the lower operating profitability along with higher depreciation resulted in a net loss of INR 19.3 crores compared to INR 15 crores in Q1 FY twenty six. Overall, while the sector saw near term pressure, We remain focused on improving operating efficiency, strengthening margins and maintain financial discipline. We believe the initiatives undertaken across our business will support an improvement in operating performance as we progress through the year. Increase sugar generation, creating a more favorable environment for our integrated sugar and ethanol platform.

8:59 Now we can open the floor for the discussion. 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 touch tone telephone. If you wish to remove yourself from the question queue, you may press star session. The first question is from the line of Santoshethi from LGC Capital. Please go ahead. Good morning, sir. Good morning. So sir, could you just give us an update on the commercialization roadmap for DME and the bioethanol and when these platforms could start contributing meaningfully to the business?

9:55 I'll talk to you about one by one. DME, as we said last time, is in the pilot trials. The pilot trials are progressing well. But from a time line of when we will know how the pilot trials conclude will be by March 2027. So that will be a good time to know how they have been completed and what the scale up idea of that can be. At this time, the pilot trials are continuing as planned. I think that's the first one. On the biobutanol, we we are seeing essentially one development is the use of biobutanol as the chemical feed... Chemical intermediate where we have secured an MOU with Syntomol.

10:40 We continue to seek out more customers to do that. At the same time, in our country in India, there's recently a call from the government to look at pathways to make butanol for supplementing the fuel energy security and transition. So we are also engaging there. So we will continue to keep you updated as we go forward. From a technical standpoint, this is this is there, but we are looking at the market as it comes to customers of butanol, biobutanol as a chemical intermediate, and are quite interested in exploring the opportunity the government forward to look at biofutanol as this green transition road map.

11:30 That's great. Just another question. On the candidate, what would be the next major milestones from here, and how are you evaluating the potential for an out licensing opportunity? For the drug discovery for breast cancer, that's what you asked? Yes. So from... On the, like, TNBC, the candidate side. So so, you know, if I go back to the last last milestone that we did was the successful completion of the safety trial. The next step was to apply to the government CDSCO with the approved to get approval for the preliminary efficacy trial. So in this past, this currently in July, we have filed for just, I mean, last week, we have filed the application for the CT SBO. This itself is one milestone.

12:26 The next milestone we expect will be the permission from the CDSTO to start this preliminary trial. We are hoping for we get these permissions by the end of this third quarter FY 'twenty seven. That's the next milestone we expect. Thank you. The next question is from the line of Tananjeb Bhaguni of Kemi. Please go ahead. Hello, sir. Yes. Good morning. Good morning, firstly. Thank you for taking the time. I just want to understand how big is this opportunity for this molecule?

13:13 Is it something which we are doing a lower lower place in the world just to understand how big can this opportunity be for us? So, you know, triple negative breast cancer, breast cancer comes in a few forms and triple negative breast cancer has the most difficult prognosis globally. So therefore, this is a very large market. But then the way of drug discovery goes, first, it is preclinical trial when trials are done on cell lines and later on on small animal models. After that, it goes into clinical, which is safety, then preliminary efficacy. And if preliminary efficacy is successful, large scale clinical trials and then a business into the market provided you get approvals and good efficacy results all the way through at each step of the way.

14:09 As a company, we have completed the preclinical and the Phase three in clinical. We are now going to the next step of preliminary efficacy. Hoping that those results are favorable, It is the point at which we will then look at out licensing the molecule of finding partners for the same because we are not a pharmaceutical company with either a national or a global footprint. We are research driven. At that time, we will look to out licensing. But assuming it is successful, it is a very large unmet... It is a large market to be met for treating triple negative breast cancer. Sure. And so would we require more funding to fund this r and d or expansion in this?

14:57 So with our estimate of taking it to preliminary efficacy is about 20 crores over the next two to three years. So we do believe that we have the resources for this purpose within the system. Okay, sir. So no no no damages. Right? And, secondly, this is new CVG policy which has come out. Is that something which we are looking at or any benefit along those lines? You know, sir, back to what I said in the opening remarks that in this geopolitical environment that has happened over the last year and a half and further in the last three to four months, we as a country and as a planet suddenly find ourselves transported to a time where fossil resources have become scarce.

15:48 This is something that we were talking about even before that this may happen, not for geopolitical reasons, but what we were talking about development. But now this issue suddenly has... As if you have gone fast forward to sales in that time. As a result of which, the government is looking at the green trans... In transition with greater urgency, which is that that butanol's call has also come, and you're seeing the CPG also come. And you will also see, assuming a DME private price are good, then you can see that because that is an LPG substitute. So for... And CPG is a CNG substitute. So we are thinking that all opportunities in the green transition, whether it be in chemicals across the world or in energy in India, are very exciting to look at. So, yes, we have lot of Precipitate available, and present is a feedstock for CPG.

16:49 So we will look at all these transitions as we go forward. So, yes, of great interest. And, sir, just lastly, this year's ethanol tendering, let's say, last year's was 1,000 liter LPD. Would we be expecting much more than that? I mean, question is best asked to the one No. But any any India is a rapidly growing large economy of the world. The economy is growing and this consumption for mobility across the nation, whether it be petrol or diesel is also growing at equal to or higher than the country's GDP growth rate.

17:35 So we definitely look at a ethanol at the same levels of blending, I think there is E20 with the growth in fuel consumption, there will be an increase. In addition, the government has issued draft guidelines for E85 and E100. So and companies such as some of the auto companies have launched a flex fuel engine. So we definitely should see higher ethanol demand going forward. Okay. Fine. But no, like, specific numbers or anything like that? May not know the answer to that question. I see. And, sir, are you seeing... Because just trying to understand, are there any risks we are foreseeing coming up in in the moment? So, we were... And we remain very focused on looking at climate effects because there was a prediction of El Nino.

18:32 So we are very focused. Our areas are Maharashtra, Karnataka that we examine, and we look at rainfall in our area of operation as well as dam level. Because the dams are what provide us water during the entire year and the rainfall is what helps the soil immediately. So one is this canal irrigation and other is rainfall. I would like to say in the last three to four weeks, a lot of the initial water, I mean, the rain issues have been addressed at least in these regions. Dam levels have improved compared to the very low levels they were a month ago, and rainfall has been there. So that was a risk. It continues to be something that we are looking at, but the last few weeks have definitely addressed some of those fears that we have.

19:23 Otherwise, you know, the world is in complete volatility. We are looking at the geopolitical change, which we may not have been able to predict. And... But so overall, I would say that it underscores our integrated model because we have a model of making multiple products, food that is sugar, ethanol, and biochemicals. And now we have added sugarcane and maize and rice as feedstocks. So it gives us a great opportunity because we have optionality to move between sugar and ethanol or use more maize or also switch in terms of ethanol where we want to put our products, we also can make EMA, we are supplying to other markets ethanol lending program and also chemicals from ethanol. So I think it is good to have optionality to be able to address risk and to address the growth opportunity that we're seeing in grow... In the green transition..

20:27 This is really helpful. Thank you so much. Thank you, and best of luck. Thank you. Ladies and gentlemen, as a reminder, if you wish to ask a question, please press star and one on the touch tone telephone. Reminder, anyone who wishes to ask a question, press star and 1 on the touch tone telephone. The next question is from the line of from WealthMind Securities Private Limited. Please go ahead. Hi, sir. Can you just throw some light about the progress of DME? And when these revenues can be realized over a period of time and what kind of progress you are making? Because last quarter and all, there was a focus and announcements with respect to DME.

21:14 What kind of progress you made with respect to DME is concerned? Yes, sir. Thank you for the question. What I just mentioned to one of the other person who asked the same question was that DME is a great product in this green transition. We are in continue to be in pilot trials. The pilot trials are proceeding as planned. Final results of how the pilot trials have done will come latest by March 2027. Only after the success of those pilot trials, we will be able to talk about what the commercial possibilities are. But as of now, the pilot trials are going as scheduled.

22:00 We expect results latest by March 2027, and the government's initiative to go for the green transition, DMA, becomes equally and more important. Okay. And sir, with respect to the business focus is concerned, what is your core focus area going to be in the next couple of quarters and the next couple of years time? So our core focus is the integrated biorefineries, in which we can convert agriculture feedstock into food, fuel and chemicals and materials. So we will continue to look at diversifying feedstock and diversifying products across this and create greater optionality to deal with the volatility in the market and take opportunities for growth as our customers seek to have more green feedstock and also reliable supply chains.

23:01 Also in drug discovery, we remain committed to take this drug into, know, test it in terms of preliminary efficacy and if that is successful, to find out licensing partners for this molecule. Thank you, sir. Best wishes for all your endeavors. Thank you. Thank you. And just to add, you know, the Biorefineries Chemical, we are seeing great opportunity there. In the first quarter of this past compared to the quarter before, we have seen a good increase from INR 141 crores to INR 169 crores, and we are anticipating in this coming quarter INR 190 crores of business. And we are looking to invest about INR 25 crores to further debottleneck this because we are seeing great demand from our customers in India and overseas for this green bio based chemicals. So we are seeing a great opportunity in taking this forward. And all this growth in the business that will come from debottlenecking will come from bio based specialty chemicals.

24:13 Thank you. The next question is from from Neva Securities. Please go ahead. Good morning. Thank you so much for the opportunity. My first question was on chemical business. The chemical business has seen a significant improvement in profitability. How should we think about the sustainability of the current margin profile and what could be the steady state margin potential? So, Pierre, look, thank you for the question. You know, the debottlenecking that we did last year is what has showing the change now in this year. So whenever we do a debottlenecking, there is a time it takes once you do the debottlenecking then to enter the market.

25:01 So if we were at INR 141 crores in quarter one FY 'twenty six and we are at INR 169 crores now and expecting to be INR 190 crores in this current quarter, this shows that, a, we have done the debottlenecking and we will and we are now being able to take the debottlenecking into the market. So that's one first point. We definitely see this as a continuing business and a growth opportunity. Because of this growth opportunity, we are looking to invest INR 25 crores in further debottlenecking, and we anticipate that to be completed by early next financial year.

25:47 And therefore, we further expect that business to grow to a quarterly business of about INR $2.40 crores per quarter once we complete the debottlenecking and enter the market. And just And definitely, we see this as sustainable and growing market opportunity. And just want to add, the growth in the bio based chemical would come from the bio based specialty chemicals. Okay, sir. Got it. Got it. Sir, secondly, with tighter sugar with ethanol economics, how would you prioritize sugar versus ethanol production production? And how valuable is this additional feedstock flexibility in optimizing these economics?

26:35 So that, thank you again for this question. It looks like you, you know, you you you heard us well. You know, what our thought process would be, you know, it's it's mostly monitoring the Hello, sir. I had asked about the sugar versus ethanol production and about the additional feedstock flexibility. Thank you for waiting, Thomas. Sorry for the inconvenience. So No worries, sir. No worries. Yeah. No. This is very... You know, we closely looking at the prices of the sugar and the ethanol from sugarcane juice, and we will look at also the government policy in the allotments of the state.

27:25 Now in this event, we are also therefore looking that in case we choose to divert more sugarcane juice to sugar, then we will automatically have some sugarcane fermentation and distillation capacity free. So, therefore, we are exploring the addition of a one sixty kiloliter per day maze preparation... Grain preparation facility so that we can take advantage of the idle sugarcane distillation and fermentation capacity that will be available. So therefore, we are this... So two things. Changing sugar economics makes us look at how we divert and use sugar capacity, and at the same time, having flexibility of maize and facilities in the old sugarcane facility will make us look whether we should quickly debottleneck the maize preparation facility.

28:30 Overall ethanol capacity remaining the same of 800 kiloliters per day, but an ability to have better capacity utilization of both the sugar and the ethanol facilities leading to higher business. Did that answer your question? Yes. Yes. It definitely does, sir. So lastly, could you throw some light on outlook for e 20 and beyond? Demand growth and how you how you expect the ethanol sales mix to evolve? So e 20 has been running in India for about one and a half years now, and the rollout has been successful for this entire period. In the last few months, the government announced draft guidelines for e 85 and e 100, and certain auto companies have also launched flex fuel vehicles.

29:27 So taking and looking at the geopolitics of fuel requirements for India, India's growth prospects, farmer income security, and addressing climate, we see a long term impact of e 20 and higher rollout to be very positive. And so because with e 85 and e 100, these tools will find their way into the market, and overall, the transition will take place. Okay, sir. Thank you so much for the opportunity, and all the best for the future. Thank you. Thank you. Thank you. The next question is from the line of Soham from Virgini Capital. Please go ahead. Hello..

30:18 Yeah. Please go ahead. Could you please share the inventory of this portal? Can can you please repeat the question? Hello? Hello, Tom. Please go ahead. Hello, audible. Hello? Yeah. Yeah. Better. I was asking, could you please share the closing sugar inventory of this quarter end? It's about 65,000 tons of sugar. 65,000 tons. Okay. And one more question, like, given the current sugar prices environment, how do you expect the existing inventory to be monetized over the coming years? Like, should we expect any inventory gain or margin expansion?

31:16 I think, you know, basically, what these stocks are there in our system, Some of it is in long term contracts and some of it is open. So that's one answer to you. Secondly, we will have to... Definitely, the sugar prices, the industry has always wanted in higher MSP and in terms... In response to increasing in prices over the past few years and sugar prices remaining static. So the increasing sugar prices are there. They certainly will improve the economics of the sugar sector going forward. How that unfolds in the next year, we will see when we come to know closer to the season.

32:02 Okay. Okay. Thank you so much, sir. Thank you. The next question is from the line of Singh from ROS Capital. Please go ahead. Hello. Hi, sir. Good afternoon. So I just had a couple of questions. So how are you looking at the growth trajectory for the bio based chemicals business for the next twelve to eighteen months, so particularly after the strong performance in quarter one? So as I mentioned, in this current quarter, we are hoping to get the sales of about $1.90 crores over and above last year... Last quarter's, meaning what the reported quarter's numbers of $1.69 crores.

32:48 So that's what we are expecting in this coming quarter, and we expect that business to sustain. That's point one. We are looking to invest 25 crores to further debottleneck the bio based specialty chemical sector because we are seeing good demand growth in India and across our export markets. With the... When that implementation will be complete in the beginning of financial year 2028, we expect that full market penetration, that business to be around $2.40 crores per quarter per quarter. So then going up from the $1.90 to $2.40, and all of that coming in bio based specialty chemicals.

33:34 And we continue to see opportunities in this sector, and so we will keep updating you as we go along. That helps. So could you give us some color on expected timing for the next phase of distillery expansion and a potential return from the proposed one sixty k as the refundable capacity? No. I... Right now, as we said, we are... What we previous... I think, Tomya had asked a question. How do you look at that? We are examining the opportunity that if the diversion of sugarcane juice to sugar is lower than what we had done last year, and that leaves us with idle distillery capacity in the sugarcane sector in... You know, as compared to higher sugar capacity utilization.

34:27 We want to take advantage of that by simply building what we call front end maze preparation devices so that after that maze is prepared, it goes into the into the current commenters which are fungible. So we, you know, we can update you as we go along. We are seeing this opportunity, and we want to see that we can capture it as quickly as possible. Oh, that helps. That's all from my side. All the best. Thank you. Thank you. The next question is from the line of Soham from Ujjani Capital. Please go ahead. Hello. Am I audible, sir? Yes. Actually, right now, you just said that you have 65,000 of inventory.

35:14 So can you just give a rough estimate, like, how much do you have for long term and open market? Like, the ratio of of that 65,000? 15,000. You know, I'm I'm not exactly sure. I can make a statement, but I don't have the number in front of me. The long term contracts may be in the range of fifteen to 20,000 out of that 60,000. 60,000. To 20,000. Okay. Thank you, sir. But I'm I'm not exactly sure. I want to state that, but, you know, you... Yeah. Okay. Thank you. Thank you. The next question is from the line of from AAS Capital. Please go ahead. Hello, sir. I have a few set of questions.

36:03 So the first one being, how are you seeing the operating cash flows evolving as the business mix improves? And do you expect the recent improvements in gross margins to sustain to FY twenty seven? So I'm gonna ask you to repeat both your questions separately. Can you please do that? Sure. How are you seeing the operating cash flows evolving as the business mix improves? So, you know, definitely in the chemical sector, we are seeing the gross margins improve and sustain. And therefore, the cash flows we are looking to put in for that 25 crores of debottlenecking expansion, which once done, we expect that to further improve. So that's a straight reply to your question.

36:55 What was your second question? And do you expect the recent improvements in gross margins to sustain through FY twenty seven? So in the chemical sector, we certainly do. In the in the sugar, so may the ethanol they have also implemented, so that will also improve the business going forward. We are definitely seeing the ethanol blending program of the government to continue. May ethanol, grain ethanol has played a dominant part in this current tender, so we expect that opportunity to also be there. We will have to also look at the monsoons and the planting to see how the... Those margins play out in the coming season. Okay, sir. Thank you. And my other question would be with the ancillary expansion and other investment underway, how should we think about the leverage trajectory and finance cost over the medium term?

37:52 So as as we say... As we said now, we've already invested in the the green based facility. Currently, we are looking at, as we said, a 25 investment into the bio based chemicals business, which we are talking about debottlenecking. We will have better ideas as to the debottlenecking of the green based front end facility as we go along. We... That's... So we will... So we are looking at broadly keeping debt levels similar or or or or a slight change, not major changes in the overall debt equity structure. Okay, sir. Thank you. Thank you for the opportunity.

38:40 Thank you. The next question is from the line of from DD Capital. Please go ahead. Hello, sir. Thanks for the opportunity. I have few questions with me. First, in fact, during the global supply tightness, like, are you seeing stronger customer interest in GBF bio based chemicals? And, like, could this be translated into a more meaningful export opportunity going forward? Definitely, we are seeing greater interest. Customers are looking now also at supply chain reliability as we go forward. And because of the oil price changes or fossil changes, which are much higher, the gap between the fossil and the green has narrowed.

39:31 So we are definitely seeing greater interest, which is reflecting in our greater business in this last quarter and the business that will happen in this quarter, and which is what is encouraging us to make the debottlenecking so that by next year, we have further increase in business. So we are definitely seeing much greater interest in bio based specialty chemicals abroad and at home. Great. Great, sir. And my second question is that, like, how should we think about capital allocation over the next couple of years, particularly, like, with respect to growth CapEx, then, like, deleveraging and further investment in the business? We are immediately looking at investing in the bio based specialty debottlenecking.

40:23 You already seen the EBITDA of the last quarter. We we... You know, so we definitely think that we can sustain that investment with our numbers. We are also, as I said, quickly looking at if we can front end the maze preparation devices given that the distillation and fermentation structure for the higher capacity would be available. So we are looking at what I will call quick wins in the new environment. As we will see opportunity coming for DME or in the biobutanol space for biobutanol. For example, the government of India has announced their call to look at opportunities for putting up these facilities.

41:12 So we will explore options as we go along. Right now, we are focusing on the debottlenecking of our waste chemicals and also on front end investments for quickly debottlenecking, what I will call, maze preparation devices. And, of course, we remain committed to spending 20 over the next thirty thirty three months on drug discovery to take it through the safety trials. Okay, sir. Understood. That's all from my side. All the best, sir. Thank you. Thank you. Ladies and gentlemen, that was the last question. I would now like to hand the conference over to mister Sami, so may I have for closing comments? So thank you, everyone, for your interest today. We remain committed to the green transition.

42:06 We are seeing great opportunities in bio based chemicals where customers seek transition to a lower carbon economy and are wanting supply chain confidence in this. The fossil price increase has transported us into a world where that scarcity is appearing to be more real. So the interest in our customers and the government for the green transition in India appears to be stronger. We are also very happy. We commissioned our 200 kiloliter per day maze slash grain to ethanol project. In the light of the new economics that we see in this sector, we are also looking at further adding maze front end capacity so we can be more flexible and have greater optionality in optimizing our product mix and creating best value for us. We have applied to the CD SEO for our drug discovery preliminary efficacy trials.

43:08 We are hoping that in q three, we we start our trial subject to government regulations. So it's been very interesting for us, and we thank you for your support as we go forward. Thank you very much. Thank you. On behalf of MUSG Investor Relation, that concludes this conference. Thank you for joining us, and you may now disconnect your