Meghmani Organics (NSE:MOL) Q1 2027 Earnings Call

0:00 Ladies and gentlemen, good day, and welcome to Make Money Organics Limited Q one FY twenty seven Conference Call. 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. Please note that this conference is being recorded. I now hand the conference over to Ms. Rashmi Goel from Aryans Capital Markets. Thank you, and over to you, ma'am. Thank you, Rashmi. Good evening, everyone, and thank you for joining us on our quarter one FY twenty twenty seven earnings call. I believe you have got a chance to go through the financial results and investor presentation uploaded on the stock exchanges and the website.

0:52 During the quarter, we operated in a challenging business environment where we saw softer demand across key export markets and domestic market as well. Customers buying behavior remain cautious due to continued macroeconomic uncertainties, resulting in a subdued offtake in both the segments. This, in turn, affected our capacity utilization and overall revenue performance during the quarter. While the demand environment remained soft, we remain focused on optimizing our product mix, executing disciplined pricing strategies and driving operational efficiencies across our manufacturing facilities.

1:49 Pursuing this disciplined approach, we were able to achieve and deliver a healthy improvement in profitability. On a stand alone basis, in quarter one FY 'twenty seven, revenue stood at nearly INR $5.23 crore, which is down by 12% Y o Y. Net profit for the quarter grew by 42% Y o Y to nearly INR 58 crore, and our EBITDA grew by 16% on Y o Y basis to INR 94 crores approximately. If we talk about the revenue mix in quarter one FY 'twenty seven, crop protection segment constitutes about 75% of the total revenue, while the balanced 25% was from the Pigment segment.

2:37 Now let us look at the segment wise performance. In Crop Protection segment, the production stood at about 8,880 metric ton and the capacity utilization for this segment stood at nearly 63%. Revenue and EBITDA stood at INR $3.91 crore and INR 77.8 crore, respectively. EBITDA margin for the segment was 19.9%. For Pigments segment, production stood at 3,233 metric tonnes, and the capacity utilization for the segment stood at 39%. The segment reported revenue of revenue and EBITDA of INR 131 crore and INR 15.9 crore, respectively. EBITDA margin for the segment was nearly 12.1%.

3:27 Moving to our Crop Nutrition segment. The segment delivered a positive contribution to both revenue and profitability during the quarter. We have further strengthened our product our offering with the newly introduced nano fertilizer products like Nano DAP, Nano NPK and Nano Zinc. These products complement our existing product portfolio and position as well as to participate in the growing adoption of next generation crop nutrition solutions. We remain optimistic about the long term growth prospects of this business and expect the positive momentum to continue over the coming quarters. In titanium dioxide, as communicated earlier, operation remains suspended due to commercial unviability arising from the elevated raw material cost and the weaker price realization following the withdrawal of antidumping duty.

4:25 As we have described earlier, one of the key raw material, which is based which is sulfuric acid, which is based on the sulfur, because of the macroeconomic factor, the prices of the raw material has increased tremendously, which is impacting the overall cost of the product and making it unviable. Because of this factor, for the time being, the operation remains suspended. If we look at our financial performance on a consolidated basis in quarter one FY 'twenty seven, revenue stood at nearly INR $5.42 crore, which is down by about 12%. And the net profit grew by 280% on a year on year basis to INR 48.2 crore, and our EBITDA grew by 46% on a Y o Y basis to nearly INR 97.9 crore.

5:14 EBITDA margin on a consolidated basis stood at 18% as compared to 10.9% in the corresponding quarter previous year. As of 06/30/2026, on a stand alone basis, our total debt stands at about INR $5.55 crore comprising of INR $4.74 crore in short term debt and INR 81 crore in the long term debt. Debt to equity ratio on the stand alone basis stood at nearly 0.31. On consolidated basis, our total debt stands at $7.32 crore, which includes INR $4.77 crore in the short term debt and INR $2.56 crore in the long term debt. Debt to equity ratio on consolidated basis stood at 0.46. In quarter one FY 'twenty seven, we have made a debt repayment of approximately INR 32 crore.

6:03 So to conclude, despite of subdued demand environment during the quarter, our focus on optimizing the product mix, disciplined pricing strategy and continued efforts to enhance operational efficiencies enable us to deliver a healthy improvement in profitability. While near term demand may continue to be influenced by the macroeconomic uncertainties, we remain confident in our long term growth prospects given our state of the art infrastructure, plant compatibility, diversified product portfolio and a strong geographic presence. With this, I hand over the call to the moderator to open the floor for questions and answers. Thank you. Thank you very much. We will now begin the question and answer session.

6:59 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 Rohit Sinav from Suniti Securities. Congratulations for good setup numbers. So some of your questions from the Pigment side, basically, although we have seen good improvement in the profitability of Pigment side, but the utilization remains quite low. So how as you have indicated on the PPD that because of the software demand, how we are seeing the demand right now? And would there be any possibility that we'll see better utilization level in this or it will remain more or less under INR 45 crores kind of level?

8:01 Thank you, Ruji. So for the particularly in the pigment segment, the utilization level might be in the more or less this range in terms of the percentage. From the overall revenue perspective, we whatever we believe, we believe that we will be somewhere in the range of INR $5.50 crores to INR 600 crores on annualized basis in the segment segment. But there will be compared to previous years, we have been working on various things to improve our operational efficiencies, which was which we were doing since last one year. And a lot of improvement has taken place and which is helping in terms of better operational cost reduction and which is helping to improve overall profitability in the Pigment segment.

8:58 Okay. So I mean, just any thoughts on how this demand would be looking at in the Q2 or Q3 or FY 'twenty seven per se in the pigments? As I mentioned that overall, as a year point of view, we believe we'll be in the range of about INR $5.50 crores to 600 crores in top line revenue. On maybe on one or two quarters, there might be some macroeconomical factors might be affecting a little bit. But on a yearly basis, we are confident. Just to add Rohit, because last year, Pigment was adversely impacted by the tariff. So from April 1, so now that hangover is over. So things have started improving, so it has started picking up.

9:50 Got it. Got it. Thank you. And secondly, on the crop protection side, as we had lower revenue in this quarter, So how again, here also, we will be looking at the volumes going forward? And would there be a better realization or better product mix, which will lead us to better margins in this segment? So, Ujji, as far as the crop protection segment is concerned, we are very optimistic from the growth perspective this year or over a period of next two to three years' time because we have been investing heavily on new registrations, new product development and which is going to drive the growth of this segment.

10:38 So maybe one or two quarters here and there, there might be some factors will be there because of the macroeconomical issues, which we all know. But on overall basis, we are very confident for the growth of this segment. Okay. Okay. Any number we can have on the volume growth or the margin side? So as we have been telling that on the top line basis, we'll be growing in double digit in the crop protection segment. At the same time, we focus on the profitability as well. So year as a whole, when we compare, there will be a double digit growth in top line and there will be healthy improvement in bottom line as well.

11:26 Got it. Got it. And sir, on the nano urea side, I think this quarter, we had some recent contribution from the would this be continue going forward? Or would you see any improvement or how this number would be looking like? Yes. So again, for the crop nutrition segment, where we have Nano urea is one of the key products, which we started with. We have added three more new nano based fertilizer, which is Nano DAP, Nano NPK, NanoZinc, and we keep on adding other nano based fertilizers in the segment. So we are very optimistic for this segment as well. We have been doing developmental activity not only in India, but globally into different markets.

12:14 In the few markets, we have started getting the orders, trial orders, and the results are very good, very encouraging results are there in the market. So we are very optimistic from the growth point of view for the crop nutrition segment as well. So it will keep on showing the growth quarter on quarter basis along with the Got it. Got it. Thank you. That's it from my side. I'll come back in queue. Thank you. Thank you very much. Thank you. The next question is from the line of Harshita Singh Ghania from Robo Capital. Please go ahead. Hello, I'm audible. Yes, Harshita. Yes. Thank you for the opportunity and congratulations on a great set of numbers, sir.

13:02 I just wanted to... Like, I'm new to the company, so I just wanted to clarify or, like, just ask a few things. So in the last call, I think, we have said that our peak revenue for Agrochem implies 2,500. For pigments, it is INR 700 crores to INR $7.50 crores. So just to get a clearer picture, in the Agrochem, we are including the NanoUrea in this. Is that right? I'm sorry, Harshita. We have not given such guidelines of INR 2,500 crore revenue for Crop Protection Division and INR $7.50 crore guideline for Pigment Division. We have not given such kind of guidelines. That is incorrect.

13:49 For the crop protection segment, we have been telling we'll be growing in double digit over a period of next two to three years' time. At the same time, we'll be maintaining the healthy profitability, which is industry averages in the range of 15% to 17%. We will try to be in this range or maybe above this range for the Crop Protection segment. For the Pigment segment, demand or the growth will not be significantly heavy because it's a little less growth oriented industry. Over there, we believe our revenue will be somewhere in the range of INR 500 crores to INR 600 crores. We are not doing any big CapEx in this segment. And we will try to improve the profitability compared to the previous years in the Pigment segment.

14:36 For the crop nutrition segment, again, we have been adding lot of new nano based fertilizers, lot of new products. So far, the base of the revenue is very, very small, but we have a very optimistic view and the kind of investment what we are doing in the developmental activity, we are very, very sure that it will drive healthy growth for the company with the better profitability. So, at these current levels then what would be our revenue generation at peak potential like when we are at optimum utilization for all the segments? So peak revenue so for this year, you are asking or overall you are asking? No, at optimum utilization.

15:24 So all the plants are at optimum utilization. So still there is a lot of gap. There can be much higher revenue for the agrochemical segment. In the pigment segment, we ourselves are not doing the full utilization as the market is under pressure. So that is the case. So we believe on the better utilization, which is nearly 85% to 90% utilization for the crop protection segment, we can do the revenue in the range of INR 2,500 crores to INR 3,000 crores. Okay. And for the pigments? For the pigment, as I mentioned, we are running in the range of nearly 40 to 50% range, where we'll be generating the revenue close to INR 500 crores to INR 600 crores.

16:15 We don't plan to increase our revenue by doing more utilization because the market is under pressure from the demand point of view, there is a overcapacity. So we look at the profitability rather than top line for the pigment segment. And sir, going forward in the year, can we expect similar margins to be maintained? Is this a sustainable level? As I mentioned, for the crop protection segment, industry average is in the range of 15% to 17%. So we will try to be in that range or try to be above that range for the Crop Protection segment. For the Pigment segment, we were at very low level in terms of the EBITDA margin, where we have been trying to improve the EBITDA margin somewhere in the nearly 10% range or we'll try to be a little higher than that.

17:07 This was one of the odd quarters, but we would like to improve the profitability. Okay. I think that's it from my side. Thank you so much, sir, and best of luck. Thank you. Thank you. The next question is from the line of Abhishek Jain from Chris PMS. Please go ahead. Thanks for opportunity and congrats with strong set of numbers in IIM time, sir. Sir, sir, my first question on the segment side, as you mentioned that your total revenue to be around 600 crores in the segment, and you are looking for the margin of around 10%. So will it be sustained in the second half as well, even that prices will start to go down?

17:57 Vijayakrishnan, as I mentioned, we will try to maintain our revenue somewhere in the range of INR 500 crores to INR 600 crores. From the profitability point of view, we have been taking some corrective actions at the operational level, which is helping to improve our overall cost and improve the profitability. As far as the realization is concerned, which is based on the market condition, there will be definitely pressure based on the raw material prices and the sales prices. But whatever corrective actions we have been taking, we will try to be somewhere near the 10% EBITDA margin range. Okay. And during this quarter, we have seen expansion of margin from 3% to 12%.

18:43 So what is the contribution of your operating efficiency? And what is the contribution of your price increase in overall expansion in EBITDA margin? Yes. So yes, definitely, about 5% to 6% is because of better realization and the balance is because of the better efficiency. And what is your expectation on the pricing front in the quarter two and the second half of FY twenty twenty seven? It is very difficult to predict in current scenario where every day we have been getting different news from the macroeconomic factor point of view.

19:31 If it would have been the stable scenario then we can predict it. But in current situation, it would be very difficult to predict. So we have been along with our team, we have always been taking the calls on regular basis based on the prices, based on the market conditions. So it's very volatile situation right now. Okay. Got it. And how is the current inventory position across distributors in Latin America, Europe and India? And has channel destocking completed? Or just we can go for the channel destocking in the coming quarter as well? So the good thing, be it to crop protection division or be it a pigment division, The good thing is there is not much inventory at the customer level or at the distributor level.

20:23 So they have been buying the material on the spot basis based on the requirement. So it is not building the inventory, which is a very positive sign. And we have been seeing healthy demand in both the segments. The only factor is the macroeconomic factor. It is keeping everything volatile. Otherwise, from a demand point of view, there is a reasonably healthy demand. Okay. So that means once that the prices will start to go down and the logistic prices will start to correct, then we'll see the healthy demand of these products and restocking really start, right, So both the things. So the prices will go down along with the decreasing in the raw material prices.

21:12 So if the raw material prices will go down, the sales price will go down. If the if it doesn't go down, then it will be more or less in this range. Okay. And my last question on the MR division of the few companies you are looking for, if you can throw some light over there. So as per the scheme, so we have filed scheme in April, and then we had now second motion application filed after getting approval from the secured and unsecured creditors. So now we are waiting for the next date of hearing from the NCLT. And after this amalgamation, what would be the impact on the top line EBITDA and the impact of the company?

22:00 Is it the EPS accretive or what is it? This is amalgamation of the two wholly owned subsidiaries. So whatever the consolidated financials you are looking, so it will be continuing that way. And this amalgamation, the accounting treatment will be pulling of interest matters, where every line item will get added to the MOL. So from the EBITDA business as usual, it will be continuing. So but it will be from the various synergies, which will be coming from the cost reduction or you can say smooth operations. So those benefits are definitely going to come. How much impact on the margin because of this?

22:48 Margins from the business perspective, no, it may be more from a cost reduction. So for example, in the multiple, you can say, clients, which we have, so it will not be there. So we have to close. So those type of costs will be down. So that will improve from the cost point of view and the compliance point of view. So it will bring more discipline to the operations. Got it, sir. Thank you. That's all from my side. Thank you. Thank you. The next question is from the line of Nipun Sharma from VLS Finance. Please go ahead.

23:41 Evening. Am I audible? Yes, Nipunji. So congratulations on a good set of results. My first question is regarding Nanouria. So in the last quarterly con call when we had a conversation, you said that you are planning to expand the basket of Nanouria for the future. So first of all, how is that going? And second of all, how much Nanouria sales happened in this quarter? So Nipunji, as we have informed, we have been expanding the basket for in this segment. We have got three new products in the basket now apart from Nano Urea. We have got Nano DAP, Nano NPK and Nano Zinc. So these are the three products which we have added, and we are in the process of getting approval in the different markets to expand this product sales as well.

24:38 Gradually, the sales of nano urea is picking up well in domestic market as well as in the global market, wherever we have been getting the registration. So far, I think from the volume perspective, we cannot disclose the volume for the nano urea point of view, but there has been relatively healthy growth. Okay. Good to hear. And any idea I mean, any guidance on how much this will contribute in the future? I mean, how much significantly this nano urea will contribute in the future? So from the future perspective, we have a very, very optimistic plan for this segment, nano fertilizer. So there'll be a couple of INR 100 crore revenue coming from this segment over a period of next two to three years' time.

25:34 Okay. Good to hear. And my second question is on Pigment. I mean, congratulations on having a good profitability for Pigment. And my question was that, is this profitability and the revenue from Pigment sustainable for the upcoming quarters? I mean, can we consider this as a quarterly run rate for FY 'twenty seven and the following financial years? So yes, Meghmani, as far as the top line for the Pigment segment is concerned, it will be more or less in this range on quarter on quarter basis. And as far as the profitability is concerned, this quarter was a little higher side. We would always try to be in this range, but it is a little more optimistic. But somewhere down the line, we would prefer to be near 10% EBITDA margin range for pigments.

26:23 And for revenue, this much amount of the quarterly run rate, can we consider this as an estimate for FY 'twenty seven? Yes. Okay. Okay. Good to hear. That's it for my side, and best of luck for your future endeavors. Thank you very much. Thank you. The next question is from the line of from Counter Tech Legal Investment. Please go ahead. Hello, sir. Thank you for the opportunity. So firstly, I just want to understand one of our peers, Kayser Petro Products, is able to, you know, convert byproducts or waste products of CPC blue pigments to fertilizers. So do they have, like, a process know how advantage over us, or do you know what's stopping us from, you know, selling byproducts like zinc phosphate or zinc sulfate?

27:20 So, Gupani, we also convert some of our products into fertilizer. So product to product, it differs. We also have a fertilizer as a byproduct in our pigment segment. And we have been doing this since many, many years, and we have been selling it. Okay. Great. And sir, second question was, given the inflationary raw material environment, are we seeing any consolidation happening across the pigment industry? So far, there has been reduction in the capacity utilization at different companies' level because of the higher cost and lower demand.

28:09 So some of the companies have reduced their capacity, which helps in maintaining the balanced supply demand, which is also helping a little bit to us. As far as the consolidation is concerned, because this industry is a little stagnant industry, I would say, so people are not going for consolidation or merger acquisition. All right, sir. Understood. Thank you so much. Thank you. Thank you. The next follow-up question is from the line of Abhishek Jain from Credit Suisse. Please go ahead. Sir, next question on the titanium dioxide.

28:56 So in the titanium oxide, basically, your plant will be suspended because of the higher of the prices. So just wanted to understand how much EBITDA you are losing because of this plant is at a closing rate right now? So I'm sorry, Abhijit, you mentioned how much EBITDA we are This is because of this suspended your production at Okay. This That's a matter. So for the Kilburn Chemicals, which is the Titanium Dioxide segment, on the first quarter, we had a negative EBITDA of nearly INR 3 crore. Nearly INR 3 crore. So overall, losses would be INR 10 crores to 12 crores on an annual basis if this plant will be continue to be suspended this year? Yes. That's correct. So because we have kept the operation suspended, so there has been a substantial reduction in the loss.

29:58 Okay. So annual basis, you would be able to make a consolidated margin of 15% to 16% on that INR2600 crores kind of the revenue, what you are targeting? See, 15% to 16% margin on an overall basis is very much high because somewhere for the agrochemical segment, we mentioned, we will try to be in the industry average, which is 15% to 17%. In the pigment segment, it would be somewhere in the 10%. So overall, we believe we will be in the range of about 12% to 13%. Okay. So if I'm taking that 16% margin of crop protection business and 10% margin of this pigment business and INR 10 crores, then my margin calculation is coming around 15%, 16%.

30:50 That's why I was asking. Yes. But at the same time, on a consolidated basis, there will be effect from the other pigment. Okay. And how much saving will be possible from the date repayment, sir? From what? In this cost saving because of the date repayment because this quarter, the interest cost has gone down. Yes. So on yearly repayment, we have around INR 130 crore this year, and our average debt cost is around 7%. So to that extent, it is going to be a saving in the finance cost. Got it. Thank you, sir. That's all from my side. Thank you. Thank you.

31:41 Ladies and gentlemen, anyone who wishes to ask a question may press star and one on the touch tone telephone. The next question is from the line of MOLDI, an individual investor. Please go ahead. Thank you, sir, for taking my question. I joined later. Maybe I am repeating the question. My question is regarding the finance cost. There is substantial reduction in the finance cost. So what has contributed that? And is it going to be the Hello? Yes. So there are two reasons to it. Actually, if you have seen the last year, there was a lot of volatility into the foreign currency.

32:27 So we have started taking that into the INR, while INR cost rate of interest are lower. And that is one reason MTM loss is not there. In the previous quarter as well as the last year, there was a MTM due to foreign currency. And second is the debt reduction, so which is now getting repaid. So to that extent, it is also reduction into the finance cost. So these are the two reasons. So we can say that this will be the trend going forward? Yes. Going forward, impact of MTM is going to be minimal. Right, right. At the same time, there will be continuous repayment because we are not going to do heavy CapEx for next one or two years' time. So as we are growing in terms of top line and bottom line, we'll be continuously reducing the debt.

33:25 Okay. Thank you. Thank you. The next question is from the line of Mohit from Shub Lab Research. Sir, my first question is our revenue has declined by around 12% Y o Y during this quarter. So if you can just give a ballpark number, how much of revenue degrowth was attributable to lower volumes versus pricing? I'm sorry, can you repeat your question? Sir, the 12% degrowth that we have seen this quarter Y o Y, so how much was attributable to volume degrowth and pricing growth, if you can bifurcate between volume and pricing?

34:14 Just a minute. Just a minute. So as far as the volume degrowth is concerned, So there has been reduction by nearly 17% volume reduction. Okay, sir. And can we assume that there was 5% realization growth? So we... So typically, what we did at Mohanji, because the market was more volatile, we were focusing more on the profitability and bottom line. So we keep on playing with the different product mix where we have a better profitability. And that's what the focus area was.

35:00 And that has helped though there has been reduction in the top line, there has been improvement in the profitability. As a company, definitely the top line growth is important. But at the same time, as a management, we look at more from the bottom line point of view. Got it, sir. No. This was very helpful, sir. Sir, my follow-up on this is, could you please help us understand which geographies contributed to most decline? It was more from the Latin America. Okay. Are you facing any competitive pressure there or it was just due to weather and the demand there that was that led in volume de growth? So basically, demand is there slowly gradually, but there was a pressure from the pricing point of view because of the global macro factor. There was an increase in the input cost.

35:55 And we always prefer to pass it on to our customer. And if there is any resistance to that, then we don't push too much to maintain our top line or increase our top line. We focus on the bottom line rather than that. So we prefer selling the product in the market where we have a better realization or we prefer selling the product, which has got better realization. Got it, sir. This was very helpful. And if you can give any outlook for the nine months coming, like would we be seeing the improvement going ahead? So Muji, we are very optimistic. So maybe this is one of the quarter one or two quarters might be a little difficult. But on the overall, as a year basis or looking at next two years, three years time line, we are very optimistic for the company for particularly crop protection and crop nutrition segment.

36:54 There will be a very healthy growth in top line and bottom line, where the pigment segment will be relatively stable in top line and we'll try to maintain better profitability. Got it, sir. Got it. Thank you. Thank you, Mr. Pucher. It was nice speaking to you and good luck for future. Thank you very much. Thank you. The next question is from the line of from Kalia from N. K. Please go ahead. Yes. Hi. Congrats on a good result. My query was actually about on the finance cost, which just got answered. I just wanted to know going forward, as you mentioned before, crop protection is going to go a lot. But on the pigment side, could you give some forward looking guidance?

37:49 So as I mentioned, pigment side, again, our focus is more on the profitability. So we don't want to just increase our top line and compromise on the bottom line. We would rather maintain the healthy top line with a better profitability. That is what the management saw. Right. So the trend we have seen in Q1 can be maintained in Pigments going forward? So the top line point of view can be maintained in Pigments segment. And the top line point of view, there might be a little plus or minus, but on overall basis, we'll try to maintain about nearly 10% EBITDA. Okay. Great, sir. Thank you so much. Thank you. Ladies and gentlemen, anyone who wishes to ask a question may press star and one on the touch tone telephone.

38:46 The next question is from the line of Ansharma, an individual investor. Please go ahead. Hello. Yes. Hello, sir. Can you hear me? Yes. I can hear you, Anshvi. Sir, I just wanted to know about the Titanium Dioxide. What is that you're looking forward for? As we have closed the operations, is there any communication from the industry or from the government? And what is that we can expect in coming time, coming quarters, you would rather say? So to be very frank, because the key raw material prices are has gone up extremely, extremely high, which we have never seen in the past, which is out of anyone's control.

39:32 And as far as the antidumping is concerned, we have been pursuing with the government department. But you might be knowing in the recent time because of the macro factor war situation, government even abolished the basic customs duty on various chemicals to support the domestic market and the domestic industry. So for the time being, there has not been any improvement as far as antidumping is concerned. So we are waiting for from the two factors point of view. One is the raw material prices getting normalized at the same time, antidumping duty getting back on track. So till the time we have decided to keep the operation suspended. So there is no time line or whatsoever for this until and until the things improve?

40:23 Or is there any guidelines or anything as such? To be very frank, from the raw material perspective, I give you the idea, let's say, the sulfur, which is a basic raw material, which is getting converted into sulfuric acid, which is a key raw material for the titanium dioxide. The normal price for this product used to be for this raw material used to be in the range of INR 4 to 5 It has gone to nearly in the range of INR 35 to 40. So there has been almost eight to 10x increase in the raw material price, which we have never seen in the past. So it is beyond anyone's imagine and control. And this is only for the domestic, sir? Or even the international market prices has gone up for the raw material, as you have said?

41:10 So overall, sulfur is a global commodity. I would say more than 80% of the sulfur is coming from the Middle Eastern region, which is impacted because of war condition and which has drive the sulfur price significantly high. So it is a global phenomena. And the sulfuric acid price, based on that, it is coming from sulfur as well as from some of the metal industry as a byproduct from copper and zinc. So depending on the market, sulfuric acid price varies, but it has also gone up significantly in the global market. Fine, sir. Anyway, thank you so much for your for the guidance, and I hope your company continues to perform well. Thank you so much.

41:58 Thank you. Ladies and gentlemen, that was the last question. I would now like to hand the conference over to the management for closing comments. On behalf of the management, we thank you for joining us today. We appreciate your trust and support on us. With this, we hope that we have been able to address most of your queries. In case of further queries, you may reach out to Mr. GS Chahan, Mr. Nishant Gyat, and we will connect with you offline. Thank you. On behalf of Aryan Capital Markets, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.