Privi Speciality Chemicals (NSE:PRIVISCL) Q2 2027 Earnings Call

0:00 Ladies and gentlemen, good day, and welcome to Privi Specialty Chemicals Limited Q2 and H1 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 at the end of today's presentation. Please note that this conference is being recorded. From the management, we have with us Mr. Mahesh Babani, Chairman and Managing Director of the company Mr. R. S. Rajan, President of the company Mr. Narayan S. Iyer, Chief Financial Officer of the company Mr. Sanjeev Patil, Executive Vice President, Strategy and Biotechnology Ms. Ashwini Shah, Company Secretary and Compliance Officer.

0:57 And before we begin the conference call, I would like to mention that some of the statements made during the course of today's conference call may contain forward looking statements about the company, which are based on beliefs, opinion and expectations of the company as on date of this call. These statements are not the guarantees of future performance and may involve risks and uncertainties that are difficult to predict. I would now like to hand the conference over to Mr. Mahesh Babani, Chairman and Managing Director of Privi Speciality Chemicals. Thank you, and over to you, sir. Thank you, ma'am. Good evening, everyone. This is Mahesh Babani. Thank you for joining Privi Speciality Chemicals Q2 H1 twenty twenty seven earnings conference call.

1:49 I'm pleased to share that we have delivered our strongest ever quarterly performance, notwithstanding very adverse global headwinds. We have achieved our highest ever sales and profitability. At the same time, we have been continuing to build capabilities and will support the next phase of our growth. The performance reflects the strength of our underlying business, the relationships we have built with our customers and the investments we have made in our manufacturing capabilities. Over the past few years, our focus has been building a broader, more resilient and more differentiated specialty aroma chemical business. Reflecting our confidence in the business and our commitment to creating value for shareholders, the Board has declared the company's first ever interim dividend of INR 5 per share of face value of INR 10 for the financial year twenty twenty six-twenty twenty seven. We remain encouraged by the opportunities ahead while staying focused on disciplined execution.

2:51 With that, I would like to invite my team Mr. Rajan, Sanjeev and Narayan to discuss our operational development and the progress we are making across our expansion and product initiatives. Thank you. Thank you. This is Sachin Patel. Good afternoon to all the investors and investors. As Maheshwai mentioned, we achieved our highest ever quarterly total revenue of INR $7.73 crore and EBITDA of INR $2.12 crore. This performance has been delivered against a global backdrop shaped by global geopolitical uncertainty, changing trade flows and volatility in input and logistic cost. At the same time, customers continue to place strong emphasis on dependable supply and consistent quality.

3:45 For a global specialty aroma chemical supplier like Privi, these conditions reinforce the importance of operational reliability, diversified sourcing and process efficiency and close customer partnership. During Q2 and H1 of FY 'twenty seven, our operational priorities remain firmly focused on preparing Privi for its next stage of growth. This involves adding capacity in a measured manner, ensuring operational readiness, strengthening our product portfolio and building the capabilities required to scale efficiencies. Our Phase I program is designed to increase installed capacity from 48,000 metric tons per annum to 54,000 metric tons per annum, representing an addition of 6,000 metric tons per annum.

4:39 As of 09/30/2026, this project has been completed. We are on course for implementing maltol, ethyl maltol, ethyl bacillate that is musty and cyclopentanone along with other molecules planned as part of subsequent phases of expansion. Moving products to development, sampling, customer qualification and commercialization takes time. Each successful transition has the potential to broaden our portfolio and deepen our engagement with customers. At Privi, our joint venture with Juvedaan, we remain focused on scaling the existing business and building a stronger portfolio of higher value products.

5:26 The joint venture had achieved its first profitable quarter in Q4 FY 'twenty six and indeed in Q2 FY 'twenty seven, Privi has made profit. Our focus is now on building scale, improving consistency and supporting its continued development. Alongside these growth initiatives, we continue to prioritize reliable supply, disciplined raw material sourcing, process efficiency and operational excellence. These capabilities are particularly important in an environment where feedstock prices, logistic cost and geopolitical developments can change very quickly. By strengthening these fundamentals, we aim to maintain service reliability and customer confidence while continuing to invest in future growth.

6:20 To summarize, we are on track towards our five ks, one k plus vision. With that, I will hand over to Mr. Narayan Ayer, our CFO, to take you through our financial performance. Thank you. Am I audible now? Yes, Can I start with the financial thing? Yes, sir. Good evening to every one of you, and thank you, Maheshma, and thank you, Sanjeev for the insights and a warm welcome to all my investors in this Privi Speciality Chemicals Limited quarter two earnings call. I'm Narayan Nessahir, the Chief Financial Officer and I would like to give certain highlights with regard to the financial performance.

7:23 I'm pleased to report that quarter two for financial year twenty six-twenty seven was a record quarter in terms of both sales and profitability. This is an important milestone and reflects the strong operating momentum of our business and our company. Quarter two in financial year twenty six-twenty seven extended our strong operating momentum with a total income of INR773.16 crore, up 13.9% year on year and EBITDA achieved was Rs. 212.49 crores, up 16.66% and a profit after tax of R117.03 crores reflecting a 24.61 growth over the previous year.

8:17 These performances were supported by broad based demand across domestic and export markets, reflecting the resilience of our business model and our continued focus on achieving a higher profitable growth. In the previous year, out of the total revenue that we earned, an amount of INR9 crores was on account of state incentives received and during the current year an amount of INR1.62 crores have been received. We expect to receive more going forward during the financial year. All our expenses during the year have been under control and in fact has come down and as we compare as a percentage of sales, it was to 9.72%.

9:10 This has been possible due to the constant and focused monitoring of expenses and optimum utilization of our capacities, thereby reducing the fixed costs over a larger base. This has helped to ensure maintain our margins. Apart from this, the RNC as a percentage of sales has come down to about 52% as compared to 54% in quarter one and as against 51% for September 25 of the previous year. EBITDA margins remained a healthy 27.48% in quarter two of financial year twenty seven as against 26.1226.12% for the first year financial year twenty six-twenty seven.

10:03 Despite volatility in feedstock and trade costs and uncertain market conditions, we have been able to ensure to maintain our overall margins during this quarter and for the first half of the year twenty six-twenty seven. We continue to focus on operational efficiencies, disciplined expense management and improving the quality of our earnings by good product mix. We expect to maintain the momentum of growth in the near future and are working towards achieving our vision set about of the five ks, one k plus and are very confident of achieving the same by 2030. Profit after tax achieved during the quarter two was INR117 crores, which is up by about 25% year on year, while PAT for the first half year of INR2627 crores was INR201 crores, up by about 29% compared to the previous year.

11:09 Now coming to some of the balance sheet items, our balance sheet remains strong supported by healthy financial returns and prudent leverage of operations. As on 09/30/2026, our ROC stood at 24.30%, an improvement of two sixteen basis point year on year, while ROE increased by 134 basis point and we have achieved a figure of 26.34%. Our net debt to EBITDA ratio stood at 1.07x and our net debt to equity was 0.51. Together with our focus on cash generation, these metrics provide a sound financial foundation to support our planned investments while maintaining balance sheet discipline.

12:06 In absolute terms, our net debt as on 09/30/2026 was INR814.51 crores. Our working capital cycle has also come down to less than one hundred days during this quarter from the one hundred twenty four days which we achieved in the same period in the previous year. Our cash generated from operations for the first six months was INR445 crores showing remarkable improvement over previous year, mainly on account of higher profits earned during this year. Looking ahead, we will continue to allocate capital towards capacity expansion, new specialty products and operational improvements, while maintaining a strong focus on profitable growth and cash generation.

12:57 As discussed earlier by both Mr. Maheshwai and Sanjeev Patel, our capacity expansion program and the development of our specialty portfolio remains an important enabler for our long term growth ambition. We hereby reiterate that Privi is confident of achieving a growth going forward, and we expect to maintain the 20% growth overall in the coming years. Thank you, everyone. And with that, I would request the moderator to open the floor for questions. Thank you. Thank you very much. We will now begin the question and answer session. Participants are requested to use handsets while asking questions.

13:53 Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Krish Salud from Beer Growth AIF. Sir, can you please be a little more loud? Sir, we're not able to hear you. Sir, please. Hello? Am I audible? Fine. Now you're audible. Yes. Sir, based on our commissioning to debottlenecking plan that was going to commission by September 26, hasn't been commissioned? And what would be the utilization when we can see a ramp up in that particular debottlenecking expansion that we did?

14:55 Sure. The expansion has been completed. You can hear me? Expansion has been completed. The expansion has been completed. You will see part of it coming through in quarter three. The significant part would come in quarter four because that's when the new contracts really start, which are annual contracts. So we are very positive about those contracts. And you will see significant impact of that capacity utilization of almost 85% to 90% during that quarter for the expanded capacity also. So sir, we will be looking to expand a bit more debottlenecking capacity in Q4? No. The capacity expansion has been completed. Now I'm saying that the volumes will come in quarter four when we get the new contracts.

15:44 So in quarter four, you will find volume growth significant volume growth. Okay, sir. Okay. And sir, secondly, on the question was that what would be our asset terms and how are we looking to improve our asset terms further? I said turnover has already been has been improved and it is really doing well. And as informed, going forward with the new molecules coming in and the high specialty chemicals also setting up, we expect a better asset turnover going forward in the Phase two and Phase three also. But as we speak, our asset turnover is at 1.7 times on the fixed asset base, You in can see into ROCE, the ROCE is at 25%, almost 24.3, which is a reflection of how well we are using our assets, including both working capital as well as fixed assets, yes.

16:48 And sir, just one last question. Last quarter, I had asked you regarding what new kind of JVs and what you want to some understanding that we are working on two new partnership that we are signing and we are close to signing those partnership kind of agreements, strategic agreements to help them sign that agreements and what is the status for this thing? So we are working on those. It takes time, as you know, and it is work in progress. And in due course of time, we will inform you about those. But we are obviously working on the opportunities, and there are opportunities on hand. Okay. Okay. And sir, lastly, are we facing some raw material tension from the freight perspective because of still the extended warranty scenarios in the West Asia region?

17:38 As we always maintain that two third of our revenue, almost 70% of our revenue comes from non petroleum sourced raw materials. So we do not have significant impact of this war and the situation like that. Yes. Okay, sir. Thank you so much. Thank you. Thank you very much. The next question is from the line of Ram Aravan from iThought PMS. Go ahead.

18:26 Hello. Hi. Am I audible? Yes, yes. Yes, sir. Yes. So my first question is on the growth guidance that we have. So if I'm not wrong, for the past three, four quarters, we've been guiding about 20% growth, right? And so but H1 actually grew about like 15%. And if we have to reach 20% for the close of FY 'twenty seven, we would have to be growing way above 22% or 23%. So does the management still hold that 20% guidance? Yes, we still continue to maintain the 20% guidance. As you are aware, that normally the first half is lower than the second half for us and we are confident of showing a 20% growth on an annual basis. And we have always been reiterating that you have to look at us as a yearly numbers rather than only looking at quarter on quarter performance.

19:21 Right. And just to follow-up on that, any specific segments that you see the growth coming from? Apart from we know that finding is the largest segment, but apart from that, do we see any other specific segment where this growth is going to come from? As informed, the overall utilization of all our plants has been around the 85%, 90%. So we expect to maintain the momentum of growth in all. And Mr. Maheshpai will also add to See, our markets usage of aroma chemicals is increasing significantly. Lots of new things are coming, new people are using more and more fines. Africa market is growing. So for us, we supply to markets customers who supply to Africa. So the markets are really growing well and we hope to maintain the 20% target as committed.

20:17 So do you want to comment on any particular segments that this growth is coming from or We do not give any segmental guidance. But overall, we will be able to maintain that 20% growth. All right, sir. Understood. And the second question will be on the Phase II and Phase III CapEx plan. So can you just give us a timeline as to when we could see if it's finishing up and when will we see commercial production from for the chemicals that is going for this CapEx? Phase two will happen and it will be effective available for commercial product or commercial sales from second quarter second half of next financial year. So we are planning to complete everything by June and from September onwards because there will be tire production and all of that. So from second half of next financial year, we are looking to have additional revenues as well as margins from the new expansion.

21:19 Right. So is this for the sorcerol base derivatives or is that separate? That's correct. That's for sorcerol base derivatives, maltol, ethyl maltol, cyclopentanone and couple of first specialty molecules as well. All right, sir. All right. I'll get back on the queue if I have another question. Surely. Yes. The next question is from the line of Sudhir Bera from Bera Family Office. Happy congratulation to entire Privi team for hosting the outstanding results under the very volatile circumstances. Right now, we are experiencing in terms of high rate and also volatility in the market, European and US as well.

22:13 So for my first question is, sir, there is a slight bit of dip in the EBITDA. If we strip off the other income, there has been a slight dip in the EBITDA compared to last year. So is it a case where last year, I think you have said we have received some incentive CapEx based incentive. But what is the this year's position? Have we received the incentive or incentive is yet to come? Good evening, sir. As indicated, we have received in this first half only INR 1.62 crores as against INR 9 crores that we received in the previous year. We expect to receive more incentive going forward in the next six months or so, in fact. So the amount will be, I think, higher than what we have earned in the previous year. So that's one part.

23:07 Second, with regard to the percentage that you talked about, I tried to clarify in my speech, because if you remove the INR 9 crores, what was also considered as a revenue vis a vis the INR 1.62 this year. If you see the RMC as a percentage is about INR 52 in this quarter. And the previous year likewise, if we do, it comes to about 51%. As you know, 1%, 2% because of so much of CST and GTO coming from various bills, from various location, there could always be that factor that will come about in fact. However, we were able to ensure to maintain and improve the EBITDA margins on the other expenses because with the higher base that we have been able to do, we have been able to amortize the fixed expenses and that's how the EBITDA margins have improved in fact. And also conversion of EBITDA into PAD also has been improving, if you see for the last four or five quarters, which reflects that we use assets much better and also the interest cost also is coming down. So as a result between from EBITDA to PAT, also our conversion has improved significantly in the last four quarters.

24:24 Yes, sir. Yes. And EBITDA to cash has also improved because your Yeah. About it should be in the range of about 12 to 15 crores. Great. Great. Great, sir. And, sir, for the next year, what is your guidance for the year 2027, 2028 as far as revenue growth is concerned also if possible EBITDA guidance, if you can? So we have a very positive outlook.

25:12 We are confident of maintaining 20% or beating 20% to be honest. We are confident that we'll be able to be close to 4,000, maybe 3,750 or some numbers, but we are close to guidance what we are giving, 20% will be surely maintained. And we have got first cut from the customers that they going to buy more, and we are happy to say that our guidance is positive outlook. Also, we will be able to maintain the EBITDA margin where we are right now. So that is the guidance on the EBITDA. Great, sir. Great. Congratulations and all the best. Thank Thank you. Thank you very much.

26:16 The next question is from the line of Yash from Mavira Yes. Hi, sir. Thank you for the opportunity, and congratulations on a great set of numbers, sir. So my question is more from a macro perspective or industry perspective. So we have been hearing a lot about the various headwinds that the European markets are facing. So how as a company do you think we can benefit from this situation of the labor crisis, the energy crisis? So we always maintain that we touch your life every single day, and we are in products which we use on a day to day basis.

27:07 So to that extent, some of these crisis that we talk about may not affect us. And in terms of our future outlook, we see great opportunities coming forward because all those things that you mentioned create huge amount of opportunities for manufacturers in India who are compliant, who are quality conscious and who follow all the sustainability norms. As a result of that, Privi is well positioned to capitalize on all these opportunities, and that is why we are so positive about the future. And we have been delivering that. This first two first half, we have done a growth of 15%, and we are confident that end of the year, the growth will be 20%.

27:54 We see substantial opportunities coming on our way, and we are well positioned. We have created enough infrastructure to capitalize on that. Thank you very much. The next question is from the line of Mahima Gidwani from PhillipCapital PMS. Please go ahead. Hello. Thanks for the opportunity. Congratulations on the good set of number. My first question is on the freight cost. Do our contracted customers include fixed freight cost building, or can we pass through any adverse variation to the customers?

28:40 And also, are you experiencing any challenges in the CSP procurement due to disruption in the shipping rooms because of geopolitical situation? Okay. So answering the second question first, we are not seeing any challenges there in terms of procurement of our raw materials, okay? Now coming to the first question, I think Narayan will guide. So as far as the freight costs are concerned and passing it on to the customers, as informed in the earlier some of the investor calls, we learned from our mistakes in the past. And now definitely when we also enter into contracts, we ensure to have a quarterly pricing mechanism for the freight. So if at all there is a freight, which is exceeding and increasing drastically, definitely we are in a position to go back to our customers and ask for that increase or decrease whatever it may happen around.

29:37 Having said that and also reiterating that freight for us, you know, the disturbance has not been to that extent what others are facing currently in fact. Okay. Got it. Last from the margin profile of the new product that will be coming to the next year, so are the margin profile on this product in your level or or So we expect the margins to continue in the range at which we are right now, okay, for the new products coming up.

30:24 Okay. Thank you. Thank you very much. The next question is from the line of Nirav Gandhi from Sunidhi Securities. Please go ahead. Hello. Am Hello. I audible? Yes. Yes. Yeah. Thank you for the opportunity, sir. My first question is on other income. So we have seen a higher number in Q1 and Q2. So is there any specific reason for the same? Yes, sir. Evening, Neera. This is Narayan here to answer that. PRIVISCLE, our reason our exports are high and you know that dollar has been in our favor and being a net exporter, it always helps us around. So the other income PRIVISCL consists a major part on account of foreign exchange gains in fact.

31:23 Got you. The second question is regarding the EBITDA margins. So if we see Q2 FY twenty twenty seven with Q2 FY twenty twenty six, both these quarters have seen EBITDA margins in excess of 25%, 26%. So is there any seasonality in terms of EBITDA margins? Here also I explained and maybe a little different pattern. Last year, they said Q2, we were able to get that INR 9 crores of state incentive. So that's why that a little bit of EBITDA margins also improved on account of that. And we were also held with overall RMC prices used from the inventory. So that was the reason that we had this. And definitely higher volume of sales achieved in this quarter because this quarter normally is a better quarter for us as compared to Q1.

32:27 Yes, there is that what you are saying is right. It cannot be called a seasonality. But if you look at our last four, five financial year, quarter two has always been superior in terms of financial numbers. The one of the key reason for that would be that we often get second calendar year contracts with some of the customers. And that's where we and newer products come in, and that's how it results into better margins and better profitability. Right, sir. If you can share the volume growth numbers for Q2 and H1 FY twenty twenty seven, a rough guidance would be helpful. So broadly, Q2, there has been a growth of 4%.

33:15 And overall on H1, if you have to talk about last year vis a vis the current year, the growth has been in the range of about 77.5% or so. Right, sir. So that 4% in Q2 is on a year on year basis, right, growth? That's correct. That's And sir, revenues from Priviu joint venture, revenues and EBITDA? So as indicated by Mr. Sanjeev, in this quarter, we have achieved a sales of about INR28 crores with a positive PBT of about close to INR2 crores or so. And overall for first six months, we have achieved a sales of about INR 47 crores and a negligible loss of INR 0.02 lakhs or so in fact.

34:08 Sure. Yes. Thank you. That's it from my side. Thank you so much. Thank you. Thank you, Neera. Thank you very much. The next question is from the line of Nikhil Parwal from Perpetual Capital. Congratulations to the entire team for posting a strong set. My first question is on the working capital cycle. So in R and D, I think you're trending close to ninety days now. And this was at almost 160, three years ago. So are we at the bottom now? Or maybe we see a slight increase in coming times? Nikhil, you've done a good analysis, I should say that, thanks. And you've been always a good well vision, so have all the other investors. Yes, definitely, this time. So that's the reason in my speech also I muted it by saying less than one hundred days or so. You should on a long term, on an annual basis, expect a working capital cycle in the range of about 105 to 110, broadly.

35:17 Okay. And there's also a decline in your debtors. I mean, the receivables has declined versus March while the sales have moved up. So have have you changed some terms with your customers, or what is the reason for this? Sir, I have to say that, Privi stands for the quality on delivery time and expectations of the customers have been so good with us that they have been helping us in ensuring that the money is paid to us on time and in some cases, maybe a few days before time also. So that's the reason why you see receivables have come down in this first half.

36:03 Okay. Okay. And the next question is on to the expected deleveraging in PRIVISCL. I think you all are looking to convert the debt into an advance or something. I don't know. Has that already happened or is yet in process? See, it is in process, in fact. Is in process. It takes some time when we are talking with large multinational companies. Okay. Okay. Sure. Looking forward for strong performance in coming times. Best of luck. You. Thanks, Vikram. Thank you very much. The next question is from the line of Krish Salat from B. A. I just wanted to know more on the merger of Privi Fine Science and Privi Biotechnology.

37:15 And earlier two years back when we had decided that we are going to do this module, our plan was that Privi Fine Science can do around INR 100 crores of turnover by FY 'twenty five. But however, we still see that it's going around close to INR 68 crore of turnover in FY 'twenty six and around INR 34.28 crore of loss. So post merger, we can see some effect on our consolidated books and our view that those utilization and those ramp up can improve because the margin target was around INR 300 odd crores of revenue from that particular plant. Yes. You're right, Krish. We have given that guidance.

38:01 So it is waiting for some regulatory approvals. Otherwise, in terms of products, we are good, okay? But in terms of some regulatory approvals, we are facing some we faced some delays, which are now nearing completion so that next year, you will see significant improvement in these numbers. But what is important is that we have five different products, out of which four products are already being supplied to the top multinationals. We have not been able to expand the capacity because of the regulatory approvals that I'm talking about. So which would be in place during the next few months. And then next financial year, you will definitely see numbers which are closer to what you said. So sir, can you just give me some understanding what will be the utilization over there right now at what capacity and the product portfolio that particular capacity holds?

38:53 We don't normally give product names around that, but these are products based out of isobutylene and other things. And capacity utilization is as much as 85%, okay? We are not able to expand the capacity. Everything is ready, but there are some commissions which we are waiting for. Once those are in place, then the expansion will happen. So we'll conduct some debottlenecking or some additional capacity over there apart from the CapEx plan that we have given already. And those mainly we will capture the capital. That is correct. But then you require permissions for expanding capacity also from the Pollution Control Board and others, so which are the expected anytime now. Once we have those in place, then it will result into expanded growth.

39:46 Understood. And just a last understanding on that, capacity was around 6,000 NTPA? That's correct. So Krish, to answer you specifically, yes, the capacities are already put in place. That's what Sanjeev was trying to say. So we have about 6,000 tonnes of capacity, which is there, which can possibly give us a potential revenue of about $3.50 crores, which we've been talking about basis the prices that is there. Certain regulations, certain things which are in pipeline, we expected those bottlenecks to be resolved as we speak. And at the time the entire merger process happens, which we expect that it should happen before this financial year ending, we will be in a position to really go all out on manufacturing and achieve the so called 80, 85% of the capacities, so that our revenue from so called INR100 odd crores what we could achieve can go to the INR250 crores, INR300 crores market.

40:51 Okay. But currently also we are doing around 85% utilization, I guess, I heard it right, if I heard it right, why is the loss of around INR 34 crores at that level? The full capacity is not yet realized. That would be realized only when we get those permissions, and that's when it will breakeven and be in that. Okay, sir. Okay, sir. Thank you so much. I just want to understand. You very much. The next question is from the line of Anirud Sharma from Aecant Investments.

41:45 Am I audible? Yes, sir. So I just had a couple of questions. So first question is on the CapEx front. What is the total remaining CapEx and what is the expected commissioning timeline and incremental revenue potential that you are seeing from the ongoing projects? See, as mentioned by us and also indicated in the investor presentation, the overall outline for all the three phases put together was close to about INR1400 crores. The Phase one is already completed and some of the Phase two also we have incurred expenses. So broadly, as we speak, we expect INR1000 crores going forward to be spent on Phase two and Phase three.

42:37 All these three phases put together has the potential revenue to be generated of about close to INR 1,700 crores to INR 1,800 crores or so. Okay, sir. Understood, understood. And sir, additionally, how much revenue contribution can we expect from maltol, ethyl maltol and other specialty chemicals over the next two, three years, if you can give some indication on that front? So that's what I indicated, right? So the Phase II is going to be the maltol, intramaltol for cyclopentadone, Mr. Sanjeev Patel was saying. So this is the Phase two of expansion, which we expected to be completed next year between June and September, and the revenue contribution will start from October 27 onwards. We expect that entire Phase two to contribute about close to INR1000 crores of revenue once it is in full capacity of 12,000 metric tons.

43:33 And Phase three, as we are talking about where we indicated a broad CapEx of about INR400 odd crores, INR400 crores to INR425 crores, that will give an additional revenue of close to another INR450 crores to INR500 crores, broadly about that. So this INR1000 crores plus that INR500 crores of the specialty and the Phase one, which has the potential of generating about INR $4.50 crores. So if you add this up, all these three phases of CapEx will give us a revenue of about INR 1,900 crores and we expect this INR 1,900 crores to be completely in sync by 2030, it should allow our company to reach the INR 5,000 crore mark. Understood, sir. Understood. So that's it from my side, sir. Thank you for the opportunity.

44:22 Thank you. Thank you,. Thank you very much. Ladies and gentlemen, in order to ask a question, please press star and one on your touch tone telephone. I repeat, in order to ask a question, The next question is from the line of Dharminder Dhawe from GM Financial Limited. Please go ahead. Yeah. Thank you for the opportunity, and I'm congratulation on a good set of numbers, sir. Thank you. Yeah. I just... I wanted to know on the initial, how has been the response on the client for the next year contract? Are they worried? Are they confident of increasing the offtake from there? What is the sense on that?

45:13 No, this as you can understand, this is a big proprietary, so I'll be very guarded in terms of what I'm saying. But situation is extremely good. All is well and better. So we are seeing very positive outlook for the market and for more customers. Please appreciate, I cannot be more open than this at this point. All right. Okay, I got it. Afar, is this next year, this new capacity is coming on stream, so maybe probably near September, October 27. Are there any offtake tied up on this business as well? So we are working on all of that. So what the way we do it is, we during this one year that we will be putting up this project, we would be manufacturing these products on pilot basis and marketing I mean, and selling it to our customers so that in terms of quality, in terms of various other issues, those are all sorted out by the time the commercial production starts.

46:11 And the response is positive, very positive. Okay. So should I understand that approval cycle and everything is ongoing currently and then by the Absolutely. Absolutely. Understood, understood. That's it from my side. Congratulations. You very much. The next question is from the line of Privi from Equintus. Please go ahead. Hello. Hello.. Yeah. Yeah. Hello, sir. Thanks for the opportunity. So my follow-up is on your JV side. So you rightly mentioned that your, in this quarter, your JV has owned revenue of 28 crores, right? So on the full year basis, what kind of revenue can we expect from the JV?

47:07 So we are in the next so the JV, we are looking at two phases of expansion. One is already underway. And based on that, we see a revenue of around $2.25 crores and somewhere there, okay? And there is also a third phase on which we are right now working. We are doing some pilot studies. We are doing some facilities. If that is completed, then we about that guidance, we can give only after three months or more like six months because we are right now working on that in pilot. We are working on the economics and financials. So once that is in place, then we can go beyond INR $2.25 crores also. But surely, we are confident. So that INR $2.25 crores is the guidance for FY 'twenty seven, right? Yes.

47:54 FY 'twenty seven, 'twenty eight. FY 'twenty seven, 'twenty eight. Okay. And sir, my second question is on your CTO and GTO side. So that is being imported, right? So on that case, is there any concentration of the suppliers from being imported right now? Or it's diversified? It's very diversified sourcing, very diversified. Okay. Okay. Got it. So that's it from my side. Thank you. Thank you very much. As there are no further questions, I would now like to hand the conference over to Mr. Narayan Ayer for closing comments. Thank you. And on behalf of Privi Specialty Chemicals Limited and the management, I would like to thank everyone for taking the time to join us on this call.

48:51 It has been pleasure interacting with all of you, especially back with sound financial numbers put forth by the entire team of Privi. I look forward to be engaging with you all very soon. Meanwhile, I wish you and all your families a very happy Diwali and a wonderful New Year and compliments of the season. Thank you, everyone. Once again, have a great day. Good evening. Thank you very much. On behalf of Privi Speciality Chemicals Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.