Finolex Industries Limited (FINPIPE) Q2 2027 Earnings Call Transcript

Ladies and gentlemen, good day and welcome to the Phenolix Industries Limited Q2FY202627 conference call. As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should we decision during the conference call, please signal an operator by pressing star and then zero on your touch-tone phone. I now hand the conference over to Mr. Arun Baird from ICICI Securities. Thank you and over to you.

Good afternoon, ladies and gentlemen. On behalf of ICA Securities, I welcome you all to the Q2-F527 Post-Search Control of Phineas Industries. From the management side, we have Mr. Udip Arirwar, managing director, and Mr. Chandran Verma, PFO. Now I hand over the call to Udip for your opening remarks, and then the floor will open for Q&A. Over to you, Udip.

Thank you, Arun. Good afternoon, ladies and gentlemen. Welcome to Phineas Industries earnings call for the second quarter, and the half-year ended 30th, September 22nd. We are pleased to have you with us today. May I remind everyone that this call may contain certain forward-looking statements based on management's current expectations, and the actual results may differ. All figures that we discuss on a call are on a stand-alone basis, unless we explicitly mention otherwise. Coming to the quarter 2 FY27 performance, the results are available with you. As you might have seen that during the quarter, we had a strong volume recovery with profitability remaining more or less flat due to higher material cost. During the quarter, sales volume grew 28% over year-on-year basis to 83,407 metric tons. As general, the stocking eased and the PVT prices also kind of stabilized during the quarter. Revenue from the operations grew 28%, which is in line with the volume, and it was stood at 1094 crores, mainly driven by the volume growth. PVT, as we said, the profitability remained plattish. PVT during the quarter was at 153 crores, as it is for 158 crores of quarter 2 sub by 26. Coming to the full half-year performance of the current year, for the first half, the strong second quarter is largely made up for the weak first quarter, but not to the full extent, and we see that the volume during the first half is 4% lower on a year-on-year basis. During the first half of Webby 27, our volume was 151,106 metric tons, as against 157,465 metric tons of the previous years. But this is primarily due to the quarter one lower numbers which we had. The revenue from operations grew during the first half 4% year-on-year to 1,978 crores. And this all is primarily due to the quarter-two volume growth and also slightly better realizations during the quarter-two period. For the full year, our profit before tax, PBT, rose 6% year-on-year to 300 crores as compared to 284 crores in the previous year, first half. On the liquidity The volatility front that continues to remain strong and we have a net-free cash flow of about 2,584 crores as on 30th of September, 2026. I want to take you through also some of the recent developments which are taking place in respect to the PVC and the PVC pipes market. One of the several reasons that we saw that the price stabilization at a slightly better level was the introduction of the minimum import price for suspension grade PVC raisin. However, the geopolitical developments, as we all are aware, particularly geopolitical developments in West Asia, they continue to remain uncertain. And with respect to the commercial supply and also with respect to the PVC supply, but we continue to, as always, monitor them very closely. But it's not only us, it is the industry-wide topic. On the business environment side, I think we all saw quite a lot of disruption in Q1, driven by the volatility in the prices, to a much more stable in Q2. As far as the PVC pricing is concerned, although there has been an increase, but the volatility was less. And we see that the quarter-to-volume recovery is happening across the organized industry that was largely driven by restocking by the channel. Traditionally, if you look at it, quarter-to is normally a softer quarter for us, for PVC pipes, as agriculture demand moderates due to the monsoon months. However, our volume growth this year, this quarter reflects the recovery from the price-light distortion which happened in the quarter one. If I try to look into the future a little bit, the recovery as we expected last quarter has begun to show in volume in our current months. What is also is that the second half of this year looks like January to May, which is the pre-monsoon window, which is seasonally our strongest period in terms of our volumes. And we enter into the second half of the year with a more normalized channel inventory and a stadia pricing environment. We remain, in the midst of all this situation, we remain cautiously optimistic, and our endeavour will remain focused on maintaining sustainable margin together with the volume growth over time. Thank you for your continued trust and support. We now open the floor for questions and answers. And with me also here is Mr. Chandran Verma, our CFO, to try and answer all the questions.

Thank you. We will now begin the question and answer session. Participants who wish to ask a question may press star and 1 on your touchtone telephone. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we'll wait for a moment while the question queue assembles.

We have the first question from the line of Siniha from Talrejas.

Please go ahead.

Hi, sir. Good evening, and thanks a lot for the opportunity. There's a couple of questions from mine. While your volume growth, you said, you know, was led by also these talking about what would be the reason for the margin suppression? Well, I understand that, you know, you also said that this was not a agree for the agree is quite missing. So it could not be product mixes, what I guess. But why, you know, margins are under pressure despite your, you know, romantic prices increasing and maybe some amount of entry gain. Could you give some color on that?

Yeah, Neha. Good afternoon. So, Neha, as you rightly pointed out, though we have registered a volume growth of 28%, we have seen a slight pressure on the margin side. Now, how it happens on the Q1? When you see, at the entry of the Q1, when you see the parameter prices have started to go out, go up at the higher direction, at that point in time, we are having procured certain inventory at the lower side. That got utilized during the Q1, but over the period in time. When we procured our inventory during Q1, and which has got effective consumed during Q2, that resulted in the pressure on the margin side. So, basically, it's a time lag where, as you know, price gets impact immediately, realising gets impact immediately, but there's a lag in the raw material price. So, that is the effect we are seeing during Q2.

Just an extension on the same question, what is the kind of a lag impact that we are seeing in terms of passing on the raw material prices, be it PVC or C-PVC?

So, as you know, Sneha, the fair size immediately gets affected in the market immediately, basically. However, as the margin remains always volatile in terms of our point in booking of the raw material prices and when it gets consumed. So, you know, our industry works in a different direction where realization will be, gets impacted immediately. However, the raw material depends upon at what price, at what point in time we are booked into.

Sure, understood. And could you just give me your TDC, EDC and VCM prices for the quarter?

Yeah, on an average basis, the PVC has been $771, and PVC, AVC, IELTA remain $1455 on the international market.

Thank you.

We have the next question from the line of Shravan Shah from Dolat Capital. Please go ahead.

Hi, sir. Thank you for the opportunity. A couple of things, sir. So, first, in the 1H, we have a 4% volume degrowth. We have explained that the Q1 loss got kind of a setup by the 2Q volume and that were channel restocking. So, given this, and then the last year Q4 also was a significant volume kind of a 1,200 odd ton. So, in this scenario, how do we see the volume for the full year?

Please, there are too many uncertainties right now in the marketplace on a geopolitical front, what is happening there, and you know how the growth prices have been moving up and down so much. So, we'll see, but as I said, our endeavor is always a profitable growth, and we will continue to drive in that direction.

But is it fair, given, or maybe you can help us with how the October till now, we are already in November, so October, how we have seen. So, is it fair to say we can still see a kind of a degrowth, maybe whatever, 1 or 2% for full year FY27? That's a fair estimate?

I would say October was a relatively good month as compared to the previous years, okay, and so if I look at it from today's perspective, if I take into account the October performance also, then year on year, I'm slightly on the greener side on a percentage basis, volume growth, yeah, and so that is the positive thing, But, at the same time, we would not like to raise expectations, yeah. So, let's see how this quarter goes. But, October was a good month.

Okay. And now, in terms of the margin, so far, 1H, we are at 11.7%. And, previously, we were kind of looking at sub-15 level. So, how and because why I'm asking this because in terms of the realization also if you look at from Q4 onwards, 1Q, 2Q, it is kind of a flat is marginal growth versus the kind of the PVC prices which has increased. So, how do we see the 3Q in terms of the price level and then on on coming to the margin level for our next the second half and then ultimately

So, as far as the PVC pricing is concerned, you know the minimum import price is still mid of January or third week of January. So, as far as the full quarter, quarter three is concerned, we don't see massive price erosion. In the PVC prices, if we look at the domestic demand supply, that's also slightly constrained. So, at this moment, as we stand today, I don't see any reason that there should be a huge downside on the PVC prices. And probably Chandan can comment a little bit more on the margin situation because he has better clarity on the cost.

So, Shavan, just to give you, reiterate our earlier commitment, where we have seen roughly around 14-15 rupees per kg of EBITDA margin for a year as a whole, we have estimated. And we are continuing to remain, our target remains same, and we are on track. So, on a full year basis, we are expecting EBITDA margin roughly around 15 rupees per kg on an average.

Okay, 15 rupees per kg, but in terms of the percentage, if we have to look, because that also depends on the

prices of the resin and the cost also. So, more or less, 14 to 15 percent. So, 15 percent around kind of EBITDA margin here as a whole we are expecting. Six months ended roughly around, we are having a 12 and a half something kind of thing, but here as a whole, 12 and a half to 13% and 14% somewhere around we will be ending up. Should be.

Okay. And then just a data point in terms of the CPVC share, fitting share and agree share for Q2.

So Q2, 8% generally remain the CPVC volume share in our overall volume, and fitting share roughly goes around 7% around.

Okay, and agree, sir?

Agree, so agree, non-agree, we are at the 60-40 around. Agree and non-agree, 60-40 for the Q2.

Okay, so fitting, sir, has came up from 11% in Q1 to 7% in Q2.

Overall, this is what I am talking about. Yeah.

Okay, I am specifically asking for the Q2. So, all the numbers that you said right now, that is for 1S or Q2?

No, 60, 40, agree, 8 to non-agree is the Q2, and 8% CPVC volume is for the Q2.

Okay, and the fitting?

Total pipe and fitting this year for the Q2 is 12%, or no, overall overall volume. 12%.

Okay. Okay. Lastly, sorry, on the same in terms of the case, I understand the same for last many, many quarters. We keep on saying the same thing in terms of this close to 2,584 crore. How we will be, because we are not even doing a much capex also, this 1H also, we have done just the 36, 37-0 crore. So, if you can reiterate when we will be going for a capex or expansion plans or in terms of the, I understand it is a board decision, but still the huge cases is there. So, something will be there in terms of rewarding to the shareholders or our stand will remain

The board will decide and that for maybe a next couple of quarters will remain the same

Yes, Ravan, so definitely the overall decision will come from the board, but having said that, in terms of your question regarding the KPEX, we have roughly planned for a KPEX of 150 odd crore. This includes more or less routine cases, and as we have been talking about, this will go for the further de-bottlinging in the process. So that we are on, so 150 crore plus board KPX spending is pipelined during the current FY 27.

Okay. Okay. Got it. Thank you, sir.

Participants who wish to ask a question may press star and one on your touchstone telephone. We have the next question from the line of Nirav from GC. Please go ahead.

Hello, sir. Is my voice audible, sir?

Yes, Nirav.

Sir, I have one question with regards to outlook. Sir, what we are seeing is that there is acute shortage of water and algino effect seems to be picking up. And our business is heavily dependent on agri. So, in light of this scenario, do you see a scenario wherein demand getting impacted? Because a lot of talukas by multiple state governments are being given relief by state governments. So, situation on ground seems to be really very, very tough. In light of this scenario, how do you see the demand panning out in H2, and especially for the agri-related portfolio? Thank you very much.

No, thanks, sir. I mean, your observation and your information is there. I mean, we all see this. We also see that the full impact of Arlenoa also has come in as yet. It is expected that sometime in November onwards we will see the impact and the water availability and the situation which you talked about, particularly in some states, is a little difficult. So, it has two effects. One is on the demand side, wherein you say that you move water to the place where it is available to the place where it is needed. So, there would be an increased demand of the pipe, but at the same time, there is also a little constraint on the farmer income. However, if we look at some of the other agri input indicators, for example, if we look at the new tractor bookings, which is up like putting 15 percent in major agri area, if we look at the two-wheeler bookings, the rural two-wheeler bookings, that's also a little bit on the higher side as compared to the previous years. So, that also gives a little bit of positive indicator to us that, yes, while there is a constraint in the market with respect to monsoon, only no effect, but should not have such a big impact from a cash availability point of view. And that's why I was saying in the earlier, responding to the earlier question also, not giving you a very firm indicator because all this volatility, although on the raw material side, but also on the demand supply, there's a little bit of uncertainty how everything will pan out. So, yes, the situation is like this. So, keep on watch on this.

Thank you very much.

Thank you. Participants who wish to ask a question may press star and 1 on your touchtone telephone. We have the next question from Ritesh Shah from Investec India. Please go ahead.

Hi, sir. Thanks for the opportunity. Sir, would it be possible for you to highlight what is our piping and pitting capacity right now, and where do we see this number, say, end of this year and end of next year?

So, we at Ritesh, our total capacity stands out to be 520,000.

This input pipe and fitting. So fitting would be how much out of this 5.2?

Fitting would be roughly around 95,000, roughly.

And how much is outsourced besides this?

Out of total fitting requirement, only smaller portion comes out from our in-house capacity, The rest comes from our third-party sources. So roughly, 40,000 is the total generally we produce in a year. So out of in-house, it roughly comes out to be in-house, and you want to separate from the subcon and in-house both or what?

Yes, sir. I just want to bifurcate it. So, 5.2 is piping. How much is fitting? You indicated 95. 95 is capped up?

520 include pipe and fitting booth. Number one. Correct. It includes fitting as well. So, out of that, fitting capacity roughly comes out to be 40KT in-house, and outsourcing roughly comes out to be 60,000 or something. Around 60,000.

Okay. And, sir, how should we look at this number, say, over next two years? How will this increase?

Yeah. At this moment, see, we are having a sufficient headroom to complete, because we have, currently, we are at the 67-68% utilization level. Right. So, we have the sufficient headroom for the current year and next year both. So, we are comfortably, we are good with the current capacity.

Right. And, sir, you indicated 150 crores of KPIX for FY27. What exactly is the end use?

So, Riches, see, as you know, we always keep talking in our earlier call also. So, there are a lot of debottlenecking exercises going on the company, where the low-capacity extruder will keep moving, and it gets replaced with the higher-capacity extruder. So, this additional capacity, if anything will come out to be, it will definitely come out after the next year towards the end of the next year. And rest of the, out of 150, rest of the is the routine CAPEX that we are, maintenance CAPEX is there.

Sure. So, my second question is on balance sheet. Is there any monetization which is still remaining with respect to land, or is it all done?

No, no. So, monetization in terms of the, we have the land capacity, we have the land parcel, we have the land parcel. In Massar, we have the land parcel. So, monetization, whatever is required to be done, which was the ideal plan in the King 4, that is done in the two years back. At this moment, we don't have any plan to get into this monetization of the existing land capacity.

Perfect. And, sir, last question, you indicated margins at 14% to 15%. This is, I would presume, it's for the full year. Is that assumption, right? Yeah, yeah, full year, full year. Yeah, so then what is it that will drive the margins in the second half? Like, are we taking a call on the product mix or PVC pricing, inventory gains? How should we better appreciate this?

Yeah, so, actually, you will see this year also our mix of agri and non-agri has gone up, right? So, currently, the current quarter, we are at the 60-40 level of agri and non-agri. As the ratio of non-agri will go in our overall portfolio and product mix, the realization and the per kg margin and overall margin will go up. So, that is how we are looking into the scenario at this moment.

Perfect. And so, just last question, are we witnessing any tailwinds with respect The reason I ask is government has already disbursed 7,700 crores. It's not a big number, but it's a decent enough number. So are we directly or indirectly benefiting out of it, or do we see any trickle that we will see benefits possibly say three months, six months out?

See, if you look at the total outlay which government had, and after which what has been released, is a smaller sum, okay? So, it also depends on how the states are doing. So, and you know that we do not have any direct business. We do all our business through channel partners, okay? So it is difficult for us to say what is the direct impact of this on our business, but certainly if there is more funds which are released by the state and the central governments, that will have an overall impact on the demand.

Sure. Thank you so much. All the very best. I'll join back with you.

Thank you. Thank you for your question.

Thank you. Thank you.

Just for the question, as we've been saying in our previous calls also, I mean, this is a decision which is a board decision and board will decide when and in what form and shape we want to deal with the cash available. Right now there is no such decision. This, whatever we have, continues to remain invested into different instruments and that's our position

We have a next question from the line of Rishabh Botarar from Systematics Group. Please go ahead.

Good afternoon, sir. I wanted to check our utilization levels in both the pipes and fitting business and the regime business.

If you look at it, overall, I would say the pipes, the overall utilization is about closer to 70%, 68%, I think, to be very precise. Yeah, during the quarter.

Yeah.

Resin would be slightly different because you know that we've got two lines for resin production. One is on EDC and one is on VCM. So VCM line traditionally remains non-operational due to our non-availability of raw material during monsoon, which is not a situation this year only, but this is the structural. It happens year on year. It is a structural in nature. So otherwise our utilization for the resin has been full. It is primarily more on the pipes and feeding side that we have a different utilisation depending on the plant location and this, but overall about 68 percent.

Got it. And any thoughts on expanding the network in regions where we are, we think, the opportunity lies, but we are lower in both regions, so that our utilisation of the plant.

Yes, certainly, sir. Thanks. There is a constant effort in this direction to increase market penetration and to have a better representation in underrepresented areas or underserved areas from the canolex brand perspective. So, that is a constant effort.

But that's not encapsulating in the higher utilization, I mean, that needs to be, if that is the case, if we are in the call.

I would also like to say that year on year also there is a capacity addition, which is happening with Chandan was just alluding to a little earlier, that year on year we keep doing the de-bottle leaking of this, and that's why we are in a situation like this. And here also you have to look at the capacity slightly differently. Because there is always, there is an implant capacity, and you produce pipes and fittings of different forms and shapes and sizes, right? So when you do changeover, there is also a capacity loss.

Got it. And what is the impact on the investment? And what's the yield we are getting on the investment which we are currently holding?

Chandran, the yield is on the investment.

Roughly around 7.5 to 8 percent on our portfolio.

Got it. Has there been appreciation of the LAN value which we were holding since we discussed of them? Can we have a picture on that front? And what is being used as there at this point of time? Is there any transaction which is happening on the related party funds in other group entities of the group on the LAN funds?

No, no, no. Refreshly we do not get into any related

Why I was asking so is, since we are not monetizing that cash in the sense either to inorganic growth opportunities or reward to shareholders, I mean, that cash has been lying on books since long. So, what was the need at that point of time to part off with that police whole land and not keep it with us for better the monetization going ahead?

Definitely, sir. Actually, this is the three years old event that you are trying to bring on the current quarter.

No, I am trying to bring, sir. I am trying to bring it.

It has not been utilized. At the same time, definitely the board has given the direction to go ahead with the monetization. That's why the decision has been taken.

But since then, sir, board has not taken any decision on the funds which is lying on the balance sheet, and investor or analyst have been frequently asking, and you have been, I mean, the board has been mentioning that we will take a call at the pay time. Some clarity should be given on the utilization of the funds. Either if there is no such need, why not reward this back to the shareholder? I mean, the promoter will also get rewarded, the minority will also get rewarded. This is the limited point which I am trying to make.

No, certainly, I mean, board has to take a call on this, and as you rightly said, that we saw the shareholders has to be rewarded, but if you look at our dividends also, we have been paying also very healthy dividends, yeah? So, shareholders are also getting rewarded that way, but yes, point in case on your...

I mean, internally, there should be some deadlines within three months or one year. We should pre-run something, either growth opportunity or your reward to shareholder. Special reward, not the regular reward, special reward. Thank you. Thank you.

Thank you. We have the next question, Raleen of Asim from Tam Capital. Please go ahead.

Yeah, hi. So, just one question. So, of course, I am just looking at your volume growth and revenue growth. Both are around 27 odd percent YOY for Q2. Now, both the growth numbers are mirroring each other despite the fact that EVC prices also would be up around 15 to 20 percent, at least on a YOY basis, if I look at it at a rupee level. Yet, ideally, the revenue growth should have been higher if volume growth is 27, 28 percent. So, what could explain that? Why are they two at the same level? Is there a mixed thing that you want to call out, or is there something else?

Ashim, so as you rightly pointed out, currently, in spite of the increase in the PBC prices, our revenue more or less becomes flat. Two reasons of it. First of all, you pointed out product mix, definitely. This is one of the scenarios where, in our case, the agree share of agree growth is higher than the non-agree share during the current Q2. Number one, and there are a lot of schemes and discounts we run in the market. So, definitely, the increase in the PBC prices always gets compensated with the scheme and discount that we run in the market. So, it's the impact of both the things. One is the product mix and channel schemes and marketing initiatives that we take.

Would the incentives, I think, be a larger explanation for this? Because I would assume that at least the agri-non-agri mix, roughly 60-40 was the case even in Q2 FY26, if I'm not mistaken.

No, no, no. It was a... How much was it? It was 56.44.

Pretty much around the same level, right? So, that's why I was thinking that is the... So, what would have dragged the realization? Would it be the incentive thing where you would have focused more on volumes? Would that be a real reason?

No, so, Ashim, sir, one is that overall volume we were seeing more of this in line with the last year, corresponding quarter of the Q2 of the last year. However, as we have been using things in absolute term and in terms of the product mix, the things always go into the, into different direction, as you see in terms of the percentage term, number one. Number two, yes, there are some schemes in this town which are not to be competitiveness. To gain the market competitiveness, we have to run a lot of schemes, and that is there in the Q2 as well, which was there in line with the Q1 also. It was there in Q1 and both the Q2 as well.

Would this also have had an impact at your EBITDA margin level, or would that be mostly your high-cost inventory reason that you gave earlier? Because even margins are down 400 bits.

Yeah, so largely, on a full-year basis, a half-year basis, our EBITDA margin in line with the last year for six months. So, it's largely on account of raw material prices, largely.

Actually, I was just looking at the Q2, Q2 level, but okay, I get the point. Okay, thanks from, that's it from myself.

Thank you. We have the next question from Rainer Ritesh Shah from Investec India. Please go ahead.

Hi, sir. Quick one. So, DGTR has recommended CVD on PVC from China. How are you reading into this?

This is, DGTR has recommended now the Ministry of Finance to comment on it. Okay. But I think if we do not know what would be the final decision, but if it happens, it probably would replace the MIP.

Sir, MIP, as per you, how much is it? 84, 85 rupees per kg?

No, MIP is that it is a CIF price, which is $7.67 per metric ton. So, any imports are not allowed. And the CBD, which you are talking about, is only, I think, only on the China region, one particular time. Correct. Yeah. And MIP is for all. That is right.

Okay. But is there any probability of MIP being reinstated? Like, is the industry case strong enough?

I don't know. The case is always strong enough at this moment, yeah. But it is up to the government to decide whether they want to have two tariff barriers. One is MIP and the other is CBD, at least on some country.

Sure. And, sir, would it be possible for you to give spot pricing for EDC, Ithlin and BCM?

I have been doing a little bit of yo-yo over the past few weeks. At this moment, it seems to be pretty much on the higher side. So, for example, EDC could be, depending on the origin and the availability, could be anywhere between $450 to $500, probably. VCM would be like $900 Yeah, that's right.

And, sir, will our average procurement cost, say, for Q3 be lower than spot? Like, are we covered for the entire quarter?

I would say more or less, yes.

Average procurement cost will be lower than spot?

No, we are covered for the quarter in terms of raw material requirements.

But it will be below the spot pricing, right?

And then you have a better handle on the number?

Yeah, in line of the, this will be in line with our current inventory price.

Sir, I'm asking the average procurement for the ships that we would have already unloaded, the pricing will be lower than what you indicated on spot basis for ADC plan and VCM, right?

No, that's what I'm saying. That will be in line with our existing inventory cost, not the lower one, more or less in line with the existing inventory price that we are having. So, we have not seen much spice in the price at this moment. Whatever the price that we booked in the during our last confinement, it is in line with it. Slightly increasing, definitely, yes. Not slightly increasing, but more or less in line.

Perfect. This is very helpful. Thank you so much, sir.

Thank you. Participants who wish to ask a question may press star and 1 on your touchtone telephone. We have the next question on the line of Pankaj from Kotak, New York. Please go ahead. Pankaj, your voice is not very clear. Can you repeat the question, please? Pankaj, if you come closer to the microphone.

Pankaj, can you hear us?

So, in terms of supply chain, from where are we sourcing? Has that changed due to this Middle East war? If you can help us with that.

Yeah, of course. I mean, the situation in Middle East has impacted supply chain for all petrochemicals, crude oil, petrochemicals, and down streams. So, we are also impacted, but the teams have done excellent work in re-establishing the supply chain from other parts, so that our production is not impacted.

And what is our total domestic sourcing? Sorry, total? Domestic sourcing, sir, of cane fruit.

Sorry, I did not quite get the question.

So, what is our domestic sourcing in terms of ADC or VCM?

ADC, VCM is 100% imported into India.

Okay. Okay. Thank you.

Thank you. We have the next question on the line of Asim from Dam Capital. Please go ahead.

Yeah, I just missed on the PVC VCM spread for Q2. How much was the number?

EDC, EDC spread Q2 for $55.

VCM, sir, not EDC.

$171.

That's $171 is the spread between PVC and VCM.

Yeah, based on ICIS international prices, as they quote Southeast Asia.

Okay, but that is the average for Q2, right? Not the current.

Average, average, average for two, yeah.

Okay. Okay, thanks. That's it for myself.

Thank you. Participants who wish to ask a question may press star and one on your touchtone telephone. Participants who wish to ask a question may press star and one on your touchtone telephone. As we have no further questions, I would now like to hand the conference over to the management for closing comments.

Thank you all for participating in this and taking interest in the company's numbers. I look forward to your continued interest in our company and continue to invest. I look forward to also coming back to all of you with our quarter three results. Thank you very much for participation.

Thank you all for your continued interest in the Phenolus Industries Ltd. We'll be looking forward to meeting you in the new review next quarter as well. Thank you so much.

Thank you. On behalf of ICICI Securities Ltd, that concludes this conference. Thank you for joining us and even now disconnect your lines.