Gujarat Alkalies and Chemicals Limited (GUJALKALI) Q2 2027 Earnings Call Transcript

Ladies and gentlemen, good day, and welcome to Pichrath Alkaline, Alkaline and Chemical Limited Q2FY27 Earning Conference Call. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for it. Should you need assistance during the conference call, please signal an operator by pressing star, then zero on a touch-tone telephone. Please note that this conference is being recorded. I now hand the conference over to Mr. Raju from Antiques Talks Broking. Thank you, and over to you, Mr. Raju.

We have the Outputs and Director, Mr. President, Mr. President, Mr. President, Mr. President, Mr. President, Mr. President, Mr. President, Mr. President.

Your voice is cracking, I hope.

Reju. Yeah.

Thank you, Mr. Diju. Welcome, all investors and participants. I will now request our Managing Director, Srimati Avindga Singh, to make opening the part for the investors.

Good morning, ladies and gentlemen. First of all, warm greetings to you, all of you, for the festivities of Diwali and the Gujarati New Year. Thank you for joining us today for the Q2 and H1 F527 earnings conference call of Gujarat Alkalees and Chemicals Limited. I am pleased to share that the first half... of this financial year has marked a significant improvement in our operating and financial performance. Progress is especially encouraging because it reflects not only favorable realizations in several products, but also the impact of actions we have been taking around portfolio optimization, energy management, market diversification, and operational efficiency. Let me begin with the financial performance. For Q2FY27, our standalone revenue from operations stood at about 1,358 crores, compared with 1,083 crores in the corresponding quarter last year. EBITDA increased to 222 crores from 133 crores, while CBT increased to 102 crores from 13 crores. DAT increased to approximately 79 crores from 16 crores. Our EBITDA margin on total income improved to 15.74% compared with 11.6% in Q2 of the previous year. For the first half, revenue from operations was 2,602 crores as compared to 2,188 crores in corresponding first half of previous year. EBITDA was 451 crores compared with 258 crores in H1 last year, and PBT increased to 212 crores from 23 crores same time last year. Similarly, the PAT increased to approximately 130 through 3 crores from 24 crores. The H1 EBITDA margin improved from 16.95% from 11.45% in the corresponding period. Importantly, our external sales revenue of $1,334.79 crore in Q2 and $2,559.63 crore in H1 present our highest quarterly and half-yearly sales in the last two decades. The improvement in Q2 was primarily supported by better realizations and a more favorable product and market mix. Domestic sales increased by 29% year-on-year, while exports increased by 14%. We expanded the export footprint for phosphoric acid, caustic soda prils, and methylene dichloride, and strengthened chlorhytholene sales in the US, UK, and Europe, and commenced exports of benzaldehyde to the United States. We are also pursuing long-term commercial arrangements in selected product categories. We saw meaningful pricing improvement across several product groups, including chlorotoline, anhydrous aluminum chloride, phosphoric acid, hydrogen peroxide, and caustic soda. This demonstrates the benefit of our diversified product portfolio and our increasing focus on value-added products and premium markets. On the manufacturing side, Some plants did face plant shutdowns, grid disturbances, feedstock constraints, and operational issues. However, the chlorotoline production increased substantially as utilization ramped up. Our focus remains on improving plant reliability, stabilizing recently commissioned assets, and spreading the existing asset base more effectively. Energy remains one of the most important drivers of competitiveness in the chloroalkali business. I am pleased to inform you that renewable energy accounted for approximately 55% of our power consumption in Q2 compared with 38% in Q2 last year. For the first half, renewable contributions increased to approximately 57% from 38%. The average S1 power rate reduced to 7.09 per unit from 7.6 per unit in the corresponding period. Our renewable energy program remains central to our strategy. The investor presentation outlines an ambition to move beyond 70% RE greening over the next two years, with existing solar and wind capacity complemented by projects involving AVRN, Cleanmax, and... This should progressively help us reduce exposure to grid power volatility while also advancing our sustainability objectives. We are also encouraged. Joint Ventures, GSTL, Nalco, Alkiris, and Chemicals, Private Limited. During Q2, GNAZ sales grew by approximately 14% and EBITDA by approximately 19%. For H1, sales increased by 27%, EBITDA increased by 73%, and PBT moved from a loss of 36 crores in H1 F526 to a profit of 8 crores in H1 F527. Improvement was supported by higher production and sales, improved realization, and lower financing costs, among other measures. Alongside improvement in current operations, we continue to invest selectively in projects that strengthen integration, product mix, Several projects are under implementation, including cell element replacement and the 200-TPD caustic soda flaking facility at The H, targeted for December this year. A 120-TPD HCL synthesis unit, targeted around January 27, and chlorotoline downstream projects. Longer duration initiatives under implementation, including food grade phosphoric acid expansion. Our approach to capital allocation is disciplined. We are increasingly looking beyond capacity addition and focusing on asset productivity, downstream integration, energy efficiency, product differentiation, and sustainable returns on the capital employed. Strategic Transformation Programme, Project R1, remains central to our journey towards a stronger and future-ready GACL. It has three pillars. Long-term growth and diversification and digital transformation. We have articulated an aspiration of becoming a 10,000 crore-plus revenue company with EBITDA margins above 20% by FY2031. This remains a medium-term aspiration rather than near-term financial guidance, and its achievement will naturally depend on market conditions, project execution, energy and raw material prices, and the chemical cycle. Another encouraging indicator is return on capital employed. Annualized ROCE for H1 FI27 has improved to approximately 8.52% compared with 1.87% for FI26. Our focus will be on making this improvement sustainable through higher asset utilization, better margins, and disciplined capital allocation. Finally, as we look to the second half of the year, our focus remains very clear. Operational reliability. Renewable energy integration. Value-led market growth, timely project execution, and improving returns from our asset base. We remain mindful that chemical businesses are cyclical and that commodity prices, energy costs, raw material costs, and geopolitical developments can influence short-term performance. Nevertheless, we believe the actions we are undertaking are making GACL increasingly diversified, resilient, and competitive. Thank you once again for joining us today. My colleagues and I will now be happy to take your questions.

Thank you. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and 1 on the touchstone 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 will wait for a moment while the question queue assembles. The first question comes from the line of Saket Kapoor from Kapoor & Co. Please go ahead.

Yeah. Namaskar, madam, and namaskar to the entire team.

Namaskar.

I hope I'm all right.

Yes. Yes.

Thank you. Yes. So, firstly, ma'am, thank you for giving us this opportunity to participate, and we hope for the continuity. And the presentation is also very elaborate, and it is very exhaustive. Firstly, ma'am, if you could just give us some idea of how the utilization levels have been for the first half, and also if a split can be flooded between the quarter one and quarter two. And how is that going to shape up with the type of, I think, the cell membrane changes, efficiency changes that we are anticipating, how should H2 be shaping up in terms of utilization?

Yes.

Yes, Mr. Saab Hai. Any other question from your side so that we can?

Okay, so secondly, regarding the uses of chlorine as a captive, and how have the chlorine realizations been currently, and what are the current dynamics that are shaping up that will give us an understanding of how the chlorine realizations may shape up for the remaining part for H2. Ma'am, in your opening remark, you did mention about renewable mix going up to around 70% in the period of time which you have mentioned. But overall, when we look at our Q12 number, I think so the power and fuel costs on a consolidated basis have gone up from 370 crores to 421 crores. So what aspects have led to this increase and what kind of reduction are we anticipating? I think you mentioned about rupees 7.7 units per unit currently, so what would that be when the entire renewable basket will come into operation? These are my first set of questions, ma'am.

Okay.

Thank you. Yeah, yeah.

Starting with the first question, Satyajji, was about overall capacity utilization for the plants. Right now, we are at an average of about 92%, and our plant utilization, specifically, if you would analyze the chlorotoline plants, the utilization has ramped up to approximately 90% since last. Here, same time, same period, which was the plant which was inaugurated last year, and this year we will be planning to add our chlorothaline downstream units as well. Regarding the other plants, as I've mentioned in my opening remarks, there were certain grid disturbances and plant shutdowns. So the overall capacity utilization is slightly spontaneously lower as compared to previous year, but the plants with products with higher realization have broadly done well. Coming to the second point about chlorine realization. Our chlorine realization as of now and the integration percentage is close to about 45%, which we hope to increase further by the units that are going to be commissioned this year, including the HCL synthesis unit. And another HCL synthesis unit for which the board has given us the principal approval would be coming next year down the line. About power fuel and cost, you find a slight increase in this actual H1 F527 as compared to our budget. But overall, as compared to H1 F526, there is a 57 Pesa reduction. And if you see the main reasons... Are that this particular quarter, there were certain contributing factors like rise in the discom power rates by about 45 pesa, and there was a delay in commissioning of our long-term RE of AVRN. However, we tried to make up for it by sourcing short-term RE, which we continue to procure as a backup strategy, and we increase our share of RE. In the overall power mix substantially. Thank you.

Yes, ma'am. Thank you, ma'am. If I may add that the general performance has been satisfactory, and as you mentioned in your opening remarks, that we have been posting now profits even after the interest in the depreciation part. So what is the outlook currently for Jinal going ahead and are we done with the stability part of it? And secondly, also with the project of hydrogen hydrate, how are the aids currently and whether we are in the midst of the stabilization of this project also, if you could just throw some more light. And when we look at our Q1 versus Q2, that is the June versus September, if we let off the other income, the profitability is on the lower side. So, other than the power and fuel part, what other factors are attributable to the lower profit on a sequential basis?

Coming to GNAIL, as I've already mentioned, the performance of GNAIL has improved substantially as compared to the last year, and quarter on quarter, there is consistent improvement. We have several steps to ensure that the running of the plant is as far as possible at an optimal capacity utilization. The Q2 sales of renal itself due to around 23% and the EBITDA around 19%. As far as the outlook is concerned, we find that with the stabilization of the plant running at optimum capacity, in higher caustic soda and hydrogen sales and improved caustic realization, we hope that we will sustain this performance over the years. Coming to your second point regarding hydrazine hydrate, as you all know, hydrazine hydrate is statistically important for GACL, because GACL is India's sole producer, and the technology has been developed indigenously. We are focused on market development, improving utilization and operating performance. The ramp up will take time. And therefore, we would prefer to evaluate the business over a longer operating horizon rather than on the basis of one or two quarters. Regarding Q1 versus Q2 profitability, both the quarters you would appreciate had very challenging market scenarios and geopolitical developments. Our team has been very resilient and dynamic in... Expanding to diverse markets and has focused on products other than caustic to shore up our margins.

The profitability per se,

you could say that the impact of the power cost and the fact that it was a low wind period has slightly affected our percentage in terms of profitability, but in terms of absolute numbers. If you see that the EBITDA has probably been consistent.

Ma'am, for the chlorine realization, can you explain to us how has chlorine realization impacted the ECU for us?

Okay. I request my ED commercial to give you more details, Mr. Paliwan.

Hi, Sakeet. Good afternoon. If you really look at on chlorine re-ealing sites, there is a positive outcome during the quarter. The chlorine prices have been substantially negative, which has improved significantly during the quarter to maintain the ECU levels.

Okay, sir. Can you quantify for our benefit how the trend has been? Sorry for interrupting, Mr. Kapoor.

Thank you. Thank you. A reminder to all the participants, please restrict yourself to two questions. A reminder to all the participants that you may press star and one to ask a question. The next question comes from the line of Nirav Jumudiya from Anvil Wealth. Please go ahead.

Yeah, good afternoon, team, and festival wishes to the entire team of Gujarat Alkali. So, ma'am, two questions. The first is on the chlorine side, you mentioned that currently our internal consumption is 45%. So, just wanted to understand from you, like, apart from the value-added products, what we produce, what is the pipeline sales for the chlorine and how much chlorine we sell to the outside customers? Along with it, if you can also share that with the projects being outlined by you, how this chlorine consumption would look like? Because the utilization of caustic soda plant depends more on the sale and consumption of chlorine. So if you can share your thought process. On the chlorine part, that would be very helpful. And my second question is, our value-added products, apart from caustic soda, contributed close to around 61% of... Sales in second quarter. So if you can just highlight what were the most profitable products for us and which were the products which were impacting the profitability and what we are doing in terms of improving our operating costs there. Also, if you can share that out of the reported EBITDA of 450 crores, what you mentioned for H1 FY27, how much was the contribution from the value added products in terms of the EBITDA numbers? Thank you so much.

Thank you, Niravji. First of all, coming to the question on chlorine utilization, like I mentioned, right now the utilization is 45 percent. The pipeline sales are about 150 TPD right now, and the tunnels per day that we sell, like the outside sales to customers, is about 700 to 750%. The chlorine integration we plan to improve by our project pipeline. Like I said, we have the HCL synthesis unit that is coming this year, another one to be commissioned in the next year or two, and the phosphoric acid plant. This percentage is likely to go up to almost 75% once our entire CAPEX pipeline, which involves the chlorine integration plans, would be commissioned. Our aim is to reach the 75% in the next two to three years. The second question was, which are the profitable products in this quarter? Many of our products were able to command substantial margins over this. Quarter, mostly it was chlorotoline. As well as the chlorotoline group was able to command a strong pricing uplift as compared to the previous year same quarter, almost 100%. Then phosphoric acid about 44%, hydrogen peroxide 31% improvement over the previous quarter. And the entire caustic soda group was about an additional 10%. The third question was about improving the operating costs. Like I said, Project HAWAAN, the strategic transformation exercise, is focused on attacking each component and ensuring we focus on improvement of our efficiency, overall energy efficiency, as well as various aspects of procurement, production, plant operations. But the primary focus is on power. Currently, the power average cost is close to 6.95 per kWh, and the share of RE power is 49%, which we plan to improve to 60% by March 27, and the power cost is likely to reduce to 6.18 per kWh. And the long-term... Planning by FY30 is to increase the share of RE to 80% and reduce the power cost to less than 6 rupees. And the last question was about the exact share of value-added products in H1 EBITDA. It would be very difficult to break up the EBITDA product-wise and give an exact number to the value-added figures. You could refer to our investor presentation for more details. Thank you.

Perfect. Thank you so much and I'll join back in the key.

Thank you.

A reminder to all the participants that you may press star and one to ask a question. The next question comes from the line of Resham Jain from VVD Asset Managers. Please go ahead.

Yeah, hi. Good afternoon. So, I have this question on Coftech market per se, given that The large capacity is coming up. What we saw in the last many years is that there has been excess chlorine and chlorine used to have negative realization. Right now, with the large capacity coming up in the industry, probably the chlorine consumption would increase a lot. So, are you seeing any material change in the way the caustic soda prices versus the protein prices behave in the past versus future?

Yes, sir, do you have any question you can again mention? So, we will, together we will answer. Yeah, yeah.

The second question is with respect to the chloromethane segment. Given that there is a lot of refrigerant capacity coming up because this is the last year of quota 27, how are you seeing the chloromethane market shipping up in India? So, those are the two questions from my side.

Rishabh, thank you for your question. I am requesting E.D. Commercial to give you the details.

Yeah. Hi, Rishabh. As regards to your question on upcoming capacity on Caustic Sora and how we are balanced, And so we are equally focusing our strategy and our cost structure to... Take over the competition and the coming future. And accordingly, we have been integrating our chlorine-based product portfolio as well as chlorine integration on cost side. As you heard about the power side, we are trying to optimize the power mix. And this is all going to change the entire industry scenario. Besides this, we are also diversifying our product shift with the various markets, with the long-term arrangements. So, this is what the overall market we see on the Cossack-Seller side. Chloromethan side, what you have mentioned is R22 phasing over but at the same time if you look at On R132, there are many capacities which are upcoming, and this is what we have seen recently, this is going to increase the consumption of the, especially on the methadine chloride, which is a major component of the chloromethine products. So, as of now, it looks to be a promising product portfolio in this current market conditions.

Thank you. Just one follow-up on the previous question which I asked the first question. Given that last few months we have seen some positive realization of chlorine, that's why I specifically asked, is there anything specifically changing in the industry because we have not seen chlorine becoming positive for a while?

Yeah, so as you might see that there are, as an industry per se, that downstreams of the chlorine are getting increased, and that's how that the merchant sales are impacted in the market, and therefore the improvement in the chlorine per se is on the bright side. Okay, got it. Okay, thank you, sir.

All the rest. Thank you.

Thank you. The next question comes from the line of Vipal Kumar Anup Chansha from Sumangal Investments. Please go ahead.

Mr. Shah, please go ahead. Mr. Shah, please unmute yourself and go ahead.

Since there's no reply, are you there, Mr. Shah? Since there's no reply from the line of Mr. Shah, I will be promoting next. That is Nerev Jamudia from Anvil Wealth. Please go ahead.

Yeah, ma'am, thanks for the opportunity again. So, ma'am, just a clarification on the power side, what you mentioned, you mentioned that currently our average power cost is 6.95 per unit, but in the opening remarks, you mentioned two figures, which were like 7.09 and 7.6, so if you can just clarify on this. Secondly, on our overall power consumption, let's say, when we analyze Gujarat Alkali's on a standalone basis, my number suggests that we could be consuming close to around anywhere between 200 to 200 megawatts of power. So if you can share your thoughts here, like today we are at 49% for renewables. What are the other power mix in our power consumption metrics? And lastly, ma'am, on the incremental revenue, what you mentioned by FY31, so you mentioned some of the projects which will be commissioned in December as well as January and some more in over next one, one and a half years. So, if you can just help us understand, out of this 5,000 crores, how much could materially be contributing over next one and a half, two years, and what sort of likely capex which will be incurring in order to achieve these sales?

Thank you. Your first question about the power cost, what I mentioned in my opening remarks was specifically Q2 and H1, whereas 6.95 is our projection for the entire year on an annualized basis. So, I think that addresses your query regarding power cost. The other was about our approximate contribution in the power mix. Like I said, 79% is RE. Can you go to the slide? And the DISCOM power, including the captive that we have from GNAL, is approximately 56%, which is about 112 megawatt. And, sorry, this was the budget. I will go to the H1 figures. The actual H1 F527, till now, the mix is like this, 43%, and 81 megawatt is DISCOM plus GNAG. Short-term RE is 52 megawatt, and is about 28%. And we have our own existing RE assets, in terms of our wind farms, which is about 29% and 53 megawatt. So, as you can see, our entire dependence on the grid and the captive is still about 43%. And the aim is to commission more long-term RE in form of captive SPVs and reduce the dependence on the grid power significantly. That is the long-term strategy. Coming to your third point on the CapEx and how much of it is coming this year. I specifically mentioned the plants that were to be commissioned this year, which was the 200 TPD caustic flaking unit, the SEL synthesis unit, and also the other efficiency improvement projects like replacement of cell LMC, which also involves considerable capex. We have a chlorotoline downstream. We fund units which are going to be commissioned by March 27. This is what is planned in this financial year. The next financial year, 28, we are planning our electronic-grade hydrogen peroxide plant to be commissioned around January of 28. In FY29, we have planned our boilers, as well as. Our KOH expansion at Corroda, food grade fosforic acid second plant at The H. So this is broadly our project pipeline and the timeline as you had asked for. Thank you so much, ma'am.

Thank you.

The next question comes from the line of Raysham, Jain from VVD Asset Managers. Please go ahead.

Yeah, thanks for taking my question again. So, if you can just highlight about the caustic export opportunity, I saw some of the European... Manufacturing monthly production numbers and the inventory which they are carrying, it seems that both are continuously coming down. So, what kind of opportunity are you seeing in the plastic market, export, plastic exports?

So, as you have rightly mentioned that the European, quite a few capacities are phasing out, and The European market is being now the import dependent largely from the Asia and U.S. industries. So if you look at India's positioning in coming days as world number three producers, and accordingly our focus is also on the exports on various countries, and the globe is one of our key targets to capture those markets. So, we see quite a good possibility of European exports from India, and even not only liquid, but also in solid forms as well.

Ken, what was your first half exports of Caustic in terms of growth?

Can you repeat again? What is? The first half, Caustic exports, what was the growth number for you?

So growth numbers keeps on changing right now, considering our tapestry utilization and available Caustic and depending the prices. So, as of now, broadly, I can say, in liquid forms, we are exporting almost about 5KT every month on an average basis or annual basis, maybe around 60,000 tons. And on about solid exports, this is almost about 10,000 tons to 12,000 tons a month.

Okay, and you are saying this is increasing? The second question is with respect to the renewable energy, you mentioned about the renewable energy, but are you also installing batteries along with renewable energy or it is pure simple

renewable energy only right now without battery?

So, we are currently investigating the renewable energy with battery operated. That is into the class. However, the details will be given when we reach to a certain level of...

Okay, okay, understood. Because you mentioned about 6 rupees, that's why I said, because renewable energy, solar with battery, actually can happen below 6. So, that's why I specifically asked whether are you evaluating the same.

A certain dependence on grid power will continue, that will have to be taken out of, as we increase our share of RE.

Okay, understood. Thank you. Okay. Thank you. Thank you.

Thank you.

The next question comes from the line of Vipul Kumar, Anoop Chansha from Sumangar Investments. Please go ahead.

Thanks for the opportunity. So my question is, is it possible to share the volume and tonnage for each product? And my second question is, when we reach 75% of chlorine integration, two to three years down to line, what type of profitability increase we can expect at EBITDA level per ton, all other things being equal? Thank you.

I think the volume and tonnage for each product is a detail which we can share maybe separately, but as far as percentage is concerned, it is already a part of our investor presentation, the percentage of share of each product in the revenue. The next is once chlorine integration of like 75% is our target for the next two to three years, I don't think we can give you a figure of EBITDA per stunt as a specific guidance we would not like to give. However, if you see our strategic objective is to reach a revenue of 10,000 crore plus by 2031, and EBITDA of over 20% is what is our larger goal as a company which we are striving towards under Project AMA. Thank you.

So what type of capex will be requiring to reach that, and how are we

going to fund that capex?

Right now, I specifically elaborated on our approved TAPEX plans, which the board has approved, and the projects which are in the pipeline. We can give a specific number for that, and it is also pretty a part of the investor presentation, including the timeline. However, we would not like to comment on a specific figure right now. We are in the process of identifying products for diversification. And we have our partners, Karni, which is preparing our growth strategy. There will be products identified and requested approvals from the board would be taken for CAPEX for each of these projects and would be shared with our investors.

Sir, what will be the funding mix? That was my question. We are not generating enough cash to undertake such large expansion projects.

Sir, the funding will be from a mix of internal accruals as well as borrowing. Certain initiatives what we have already taken will also contribute to the increase in the cash generation over the next one, two years. So, based on that, at the appropriate time, a mix of internal accruals and borrowings will be undertaken, so that we improve the return on capital employed also.

Okay, sir. So, I'll drop you a mail regarding individual quantity in tonnage for each product. So, I request you to reply that. Thank you very much. Thank you.

Thank you. A reminder to all the participants that you may press star and one to ask a question. The next question comes from the line of Saket Kapoor from Kapoor and Company. Please go ahead.

Thank you for the follow-up opportunity. Questions are pertaining from the cash flow activity. We find that we have made further investment to the tune of 32 crore, 33 lakh for our joint venture and associates. So, what is this pertaining to? Is it the efficiency part or are we undertaking any further capacity augmentation there? And the other questions are also pertaining to our balance sheets, wherein we find that our, under the current Glad to see you. Other financial liabilities and our other current liabilities both have increased significantly. The other financial liabilities are up from 74 crore number for March to 251 crore. Whereas the other current liabilities has moved up from 70 crore to 105 crore. So if you could just explain to us on these three briefing line items, the textbook supply.

Yeah, Mr. Kapoor, regarding your first question of the investment of 32.33 crores, so that investment is towards our share of equity contribution in the special purpose vehicle with CleanMax Pure Energy for the renewable power projects of 62.7 megawatt. Now, coming to your second question relating to increase in the other financial liabilities. So basically, that is a liability towards dividend payment. And that has contributed as well as an increase in the purchase of capital goods, so liability towards that to sundry creditors for capex. And as far as other current liabilities are concerned, the increase is attributable to the TDS what we have to pay on dividend as well as increase in the GST payable because of the increase in our sales realizations.

Right. And one more question, just follow up to it. Our closing capital work in progress is to the tune of 134 crores. And when we look at our cash flow, we have done the property plant and equipment purchases of 118 crores. So, for H2, how much are we going to more do the capex, and what should be the closing balances, and relatively, if you could give us some understanding, what will be the closing debt number?

Actually, that will depend upon the project cash flow as well as the internal cash accruals. So, at this point of time, it is difficult for us to give a number on the likely capex at the end of the year as well as the borrowing.

Okay, and on the capitalization front, we have a closing balance of, say, around 233.

Yeah, so that will actually, you see, as the projects get commissioned, the number will come down. Also, definitely, there will be some new additions for the other projects which are under implementation. So, difficult to give a precise number to it. Nevertheless, if you require, we can do an estimate and share as per our disclosure requirements.

One small point, sir, post the September quarter exit, how was the current realization or the ECU shaping up if we take the exit off? The September and the current business dynamic. And we are also hearing of two large private corporates coming up with the huge facilities of Caustic Soda in the near term or in the medium term. So what is our thought process in terms of this kind of facility adding to the existing market and our strategy going by? These are my two closing remarks and I thank once again the team for giving us this opportunity and we hope for the continuity. Thank you.

Saket, answering your second question, I have already answered one of the investor questions earlier or so. So, the large capacity which are coming, while as GSL, we are focusing on our cost and market penetration and improve efficiencies. So, that would be the sole way to, you know, handle it. And we see a brighter opportunity in the global markets, and that's how that market is going to get balanced due course of time.

And on the realisation front, sir, how are the current market realisations post the exit of September 4th?

Current market realisations are better than Q2, especially if you are talking about the caustic soda. However, the energy costs in fact are there. Precisely, a number to be given may not be appropriate this time.

And our utilization are at optimum. We are running the plant, both the age as well as the woroda unit at optimum level.

Relatively better than Q2, you can say.

Relatively better than Q2.

Hello? Yes. You said that you are relatively better than Q2.

You said levels are better than Q2. Yes. Okay. Thank you. Thank you to the entire team, and thank you, Madam, for giving us this opportunity. Thank you. We hope for continuity, and thank you. Namaskar. Namaskar.

Thank you.

Namaskar.

Thank you, ladies and gentlemen. As there are no further questions, we have reached the end of question and answer session. I now hand the conference over to management for closing comments.

Thank you very much. I express my thanks on behalf of Gujarat, Alkalese and Chemicals Limited to all the investors who have participated, who have taken time to discuss with us. Thank you very much. I also thank ANTIQ team and Coruscant team for arranging this conference for us. Thank you very much.

Thank you. On behalf of Antique Stock Broking Limited and Gujarat Alkese and Chemicals Limited, that concludes this conference. Thank you for joining us, and you will now disconnect your lines.