Moderator:
Ladies and gentlemen, good day and welcome to the Q2 & H1 FY27 Earnings Conference Call
of Apcotex Industries Limited.
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 you need
assistance during this conference call, please signal an operator by pressing “*” followed by
“0” on your touchtone phone. Please note that this conference is being recorded.
At this time, I would like to hand over the conference to Ms. Purvangi Jain from Valorem
Advisors. Thank you and over to you.
Purvangi Jain:
Thank you. Good afternoon, everyone and a warm welcome to you all. My name is Purvangi
Jain from Valorem Advisors.
We represent the investor relations of Apcotex Industries Limited. On behalf of the company,
I would like to thank you all for participating in the company's Earnings Call for the 2nd Quarter
and first half of the Financial Year 2027.
Before we begin, a quick cautionary statement:
Some of the statements made in today's con call may be forward-looking in nature. Such
forward-looking statements are subject to risks and uncertainties, which could cause actual
results to differ from those anticipated. Such statements are based on management's beliefs
as well as assumptions made by and information currently available to the management.
Audiences are cautioned not to place any undue reliance on these forward-looking statements
in making any investment decision. The purpose of today's earnings conference call is purely
to educate and bring awareness about the company's fundamental business and financial
quarter under review.
Now, I would like to introduce you to the management participating with us in today's Earnings
Call and hand it over to them for their opening remarks.
We have with us Mr. Abhiraj Choksey – Vice Chairman and Managing Director, and Mr. Vivek
Thakur – Chief Financial Officer.
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Without any delay, I would now like to hand the call over to Mr. Vivek Thakur for his opening
remarks. Thank you and over to you, sir.
Vivek Thakur:
Thank you, Purvangi. Good afternoon, everyone. It is a pleasure to welcome you all to the
Earnings Conference Call for the 2nd Quarter and First Half of Financial Year 2027.
I hope you had an opportunity to review the Financial Statements and Earnings Presentation
which have been circulated and uploaded on our website and the stock exchange.
Let me provide you with a brief overview of the Financial and Operational Highlights for the
period under review:
For the 2nd Quarter of Financial Year 2027, operating revenues stood at Rs. 499 crores. This
registered a growth of 48% year-on-year. This was supported by a 7% increase in sales volumes.
Export volumes also witnessed a recovery during the quarter, reversing the decline seen in
Quarter 1 of FY27.
Operating EBITDA stood at Rs. 58 crores, registering a growth of 44% year-on-year. This was
driven by modest volume growth and enhanced contribution margin following strategic price
adjustments. EBITDA margins stood at 11.69% compared to 12.06% in the corresponding
quarter of the previous year.
Profit after tax for the quarter stood at Rs. 35 crores. This reflected a growth of 38% year-onyear with PAT margins of 6.98%. Despite the moderation in profitability compared to previous
quarters, our overall business performance has remained strong. It was supported by sustained
volume growth and strategic pricing actions.
For the first half of FY27, operating revenues stood at Rs. 1025 crores, registering a growth of
44% year-on-year. Operating EBITDA stood at Rs. 175 crores, registering a significant growth of
121% year-on-year with EBITDA margins expanding by 599 basis points to 17.12%.
Profit after tax stood at Rs. 114 crores, reflecting a growth of 156% year-on-year. PAT margins
have improved to 11.11% from 6.25% earlier.
The period marked our strongest ever half-yearly financial performance with record EBITDA,
profit before tax, profit after tax. This strong performance was supported by volume growth,
improved margins and our ability to effectively navigate market conditions. During this quarter,
other expenses have risen a little bit.
This was driven by higher rate costs from geopolitical supply chain disruptions. While these
macroeconomic pressures persist, we have successfully offset a significant portion by passing
these costs through to the market. Alongside our financial performance, we continued to make
progress on our strategic expansion plans.
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With the execution of Rs. 210 crore CAPEX projects at our Valia facility have remained largely
on track.
During this quarter, working capital requirements continued to remain elevated due to higher
input costs. This resulted in increased inventory values as well as receivables.
We also continued to maintain a net cash positive position as of 30th September 2026,
reflecting our financial strength.
Overall, our performance during the period reflects the strength of our operations and our
continued focus on profitable growth.
With this, now I open the floor for question-and-answer session. Thank you.
Moderator:
Thank you very much. We will now begin the question-and-answer session. We will wait for a
moment while the question queue assembles. We will take our first question from the line of
Aditya Khetan from SMIFS Institutional Equities. Please go ahead.
Aditya Khetan:
Thank you, sir, for the opportunity to ask a couple of questions. Sir, when we look in this
quarter, obviously onto the gross margin side, we are witnessing a pain, barring last quarter of
exceptional gains, even like we are standing at some four-quarter low in terms of gross. What
changed in terms of cost? Was it because of higher cost we had built and the prices
subsequently went down, we had to book some inventory losses? And secondly, export
volumes like you mentioned that have been recovered in this quarter. Because, sir, barring
what we understand that the geopolitical tensions are still there and even freight and container
availability still remains an issue. So, what has led to this jump in export volumes? Was it the
customer uptake was quite strong in export market and you had got the containers or what
has led to this jump in volumes in exports?
Abhiraj Choksey:
Thanks. Thanks, Aditya. So, I will take it up. This is Abhiraj Choksey. So, one is, yes, certainly
gross margins have been lower. As you know, in our business when prices are very high, of
course, Q1 was an exceptional quarter. As I had mentioned in the Q1 meeting as well, a couple
of our competitors were shut. Thanks to our better risk management, we were able to keep
our plants running. So, the margins that we were able to get in spite of very high raw material
prices were very healthy. In this case yes, a combination of reasons. One is, of course, just the
prices being very high. So, as a percentage, it seems that gross margins are low.
There were inventory losses as well this quarter because the first two months of the quarter
the prices were coming down and then, of course, they went back up again. But net-net, for
this quarter, we probably have close to 1.5% of inventory losses. So, that would have perhaps
the gross margins or the EBITDA margins may have been better by about that much.
Another big reason is, of course, as I said, we were able to get some of the exports back. Of
course, the MENA region remains tight. But compared to Q1, I would say the availability of
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ships, and all has actually improved a little bit, not to the UAE, but to Saudi, for example, from
the West Coast, we are able to do it. But specifically, not to the UAE, but UAE also, we are being
able to get some ships going into Fujairah. So, certainly things have improved somewhat
compared to Q1. So, that has been the reason of exports. We have also got orders from other
markets that were I think we have been more aggressive. And maybe that is one of the reasons
to have gross margins a little lower is we have also been more aggressive. But we are quite
happy with the results because the two other parameters, which is EBITDA per ton, which I
know we do not talk about, but EBITDA per ton is much better in Q2 of this year compared to
the corresponding period of the last year. Even though EBITDA margins as a percentage may
be a little lower. And the second thing is ROCE. So, return on capital remains very healthy in
spite of these lower gross margins and slightly lower EBITDA margins. So, that is what we have
been focusing on and ensuring that our volumes are protected and some growth at least
happens in in this difficult time. I hope that answers your question.
Aditya Khetan:
So, my next question is on to the nitrile latex. So, in terms like where are we standing in terms
of a cycle, in terms of prices, like are export prices firming up? And globally, what is the
situation? Has the oversupply coming down or still maintaining at those levels? Because we
have been hearing some capacities in Indonesia and Malaysia shutting down. So, has that been
consistent or new capacities are also building? Do you have any sense on to the nitrile latex
side? And on to the volume side, where are we standing today?
Abhiraj Choksey:
Yes. So, first of all, we are running at close to full capacity in nitrile latex, number one. As I
mentioned last quarter also. Last quarter was a blip. We had really good margins on nitrile latex
in Q1, when I am saying last quarter Q1. Q2 normalized a bit, but it is definitely much better
than it has been in the last three years. Let me put it that way. I know somebody in the call will
at some point ask me, what about the investment decision of nitrile latex? And I think we are
still waiting. We had a board meeting yesterday, and we have not taken a call on the nitrile
latex further expansion yet because Q1, as I mentioned earlier, was a little bit of a blip. So, if
you remove that, we still want to see a couple of more quarters of consistently recent margin.
And then we will take a call on how and what to invest in. As I said, we have most of it ready.
We will have to kind of just add reactors. So, at the current moment, we are going and focusing
on the projects for the solid NBR, which will come on stream early next year, early in the next
financial year. And also our other synthetic latex, SBR latex plant in Valia, which will come on
stream perhaps in the 2nd Quarter of next year, it looks like right now. So, our focus is that.
I think in the next couple of quarters, we will probably decide on the nitrile latex expansion.
But we are waiting to see how the margins are in the next few months. It has definitely
improved. Capacity utilization has improved. But I mean, there is an overcapacity, right? What
was created in COVID, we are still living with that. You are right. Some of the smaller capacities
have shut down, or older capacities have shut down. But it is still an overcapacity in the market
today.
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Aditya Khetan:
Got it. So, just one last question. So, what would be the sustainable margins and factoring
inventory losses you have mentioned? And what do you see going ahead? What could be the
sustainable inventory? Onto the gross and EBITDA.
Abhiraj Choksey:
So, frankly as I said, for me, EBITDA margins as a percentage is just one number. And we do not
always just focus on that. The main number for us is ROCE. And even if EBITDA margins, let me
explain. Like this quarter, EBITDA margins are around 12%, depending on how you calculate
them. But Vivek, correct me if I am wrong, right?
Vivek Thakur:
Yes.
Abhiraj Choksey:
So, obviously, ideally, we would want it closer to 15%. But we are quite happy with the 12%
given the high cost of raw materials today and the high selling prices as well as a result. Because
we are getting fairly healthy EBITDA per ton margins and therefore fairly healthy ROCE. So, we
want to ensure we are competitive in the marketplace and we do not lose out on volumes in
this difficult period. So that is something that we are wary of. And so the focus is right now on
volumes, even if it means a little bit lower gross margins.
Aditya Khetan:
Got it, sir. Thank you. That is it for me.
Moderator:
Thank you. Next question is from the line of Farokh Pandole from Avestha Fund Management.
Please go ahead.
Farokh Pandole:
Hi, Abhiraj. My first question was you mentioned that in the initial comments that some pricing
was instituted in the quarter. And you also mentioned that raw materials were obviously at a
high level at this point. So, is it fair to assume that the increases that we have taken will affect
in the next quarter and thereby we can expect maybe on that score at least a slightly better
operating margin?
Abhiraj Choksey:
Yes, partly true because last quarter one of the things also was inventory losses. We had some
inventory losses when prices started coming down in July and August. So, that, as of today, at
least October-November we have seen a price increase again as the situation has worsened
and everyone knows what is happening with oil. So, oil has gone up further. So, partly you are
right that some of that will be recovered. However, this quarter is still only one month old. So,
we would have to see how the rest of the quarter plays out. But again, as I said to the previous
caller, Aditya, that one is percentage margins, but the focus for us is also on volumes, EBITDA
per ton and ROCE. So, those are three other parameters that we also monitor closely.
Farokh Pandole:
Sure. And the second question on the NBR expansion that we are in the midst of. How much
of the Rs. 210 crores has been spent already and how much remains to be spent with respect
to our net cash position is the question. And also, when we say early next financial year, what
could you give us some sort of roadmap as to when are we planning to commission and what
sort of ramp up can we expect beyond that on utilization?
Page 5 of 12
Abhiraj Choksey:
As I mentioned earlier, our goal is about April ‘27. So, we are on track right now on April ‘27.
And the utilization will slowly ramp up over maybe two to three years, obviously, till we get to
full capacity utilization. We hope earlier, but our thinking is two to three years.
Farokh Pandole:
Okay. And on the CAPEX?
Abhiraj Choksey:
Yes, on the CAPEX, I would say we have another, Vivek, we make maybe Rs. 140-150 crores to
go in terms of outflow of cash.
Vivek Thakur:
So, out of Rs. 220 crores, about Rs. 65 crores we have spent and Rs. 155 crores is to be outflown
by next year, till the time of project completion and sometime thereafter. Just to add to what
timelines of completion, I think we had two projects, SBR also. SBR may get into subsequent
quarter, but NBR will happen as it was mentioned in April.
Abhiraj Choksey:
Yes.
Farokh Pandole:
Great. Thanks a lot and all the best for the current quarter.
Moderator:
Thank you. Next question is from the line of Karan from Credent. Please go ahead.
Karan:
Hi. Good morning. Congratulations on the great set of results. My question to you is, firstly, I
wanted to know in the synthetic latex segment, which industries have started doing better?
Which industries can you see have done better in the last 6 months or 12 months?
Abhiraj Choksey:
Frankly, we are in synthetic latex segment, we are in sort of 5 industries largely we cater to.
The one that has done really well for us is construction. That continues to grow. And when I
say construction, there are some specialty applications like includes repairs, waterproofing,
including oil drilling applications. All that is within the construction industry for us. So, that has
done extremely well in the last 6 to 12 months. I think for us paper has also done quite well.
And then, of course, textiles is decent. Tires is okay. The one that has been a laggard for us is
carpets because we are dependent on large Middle East and North African customers. And
even our domestic carpet manufacturers are dependent on some of those markets and the
Western markets. So, overall, that is where we have seen a volume loss. Various reasons, first
the US tariffs, then the war, high ocean freight rates. So, really everything has hit us there, you
know. But in spite of that, now things have, at least this quarter, look a little better than the
last quarter.
Karan:
My second question was on NBR. So, considering that freight rates have been up for the entire
year as of now, there is significant geopolitical turmoil all across the world. At a global level,
how do you see NBR looking, considering you are the sole producer in India, and this is entirely
imported. So, how do you see this industry evolving over the next 3-4 years?
Abhiraj Choksey:
As far as the final applications are concerned there are various rubber products from
automotive to various industrial applications, LPG hoses. So, the growth in India, in the long
Page 6 of 12
term, I do not know about 6-12 months, but if we look at 4-5 years, we see very good growth
in this particular segment. We are well positioned to sort of capture that growth. That is why
this capacity expansion that we are doing in NBR. There was obviously an issue of dumping.
That was a concern and we had been working with the government. Of course, anti-dumping
has not worked out, but nonetheless, in the meanwhile, these kinds of higher ocean freight
rates have helped us to some extent for sure. But I think we are also looking at our own costs
and ensuring that we are with or without any dumping or high ocean freight rates, this project
will have a good ROC and will be a good returns project for the company.
Karan:
I have just one added question on that. Of the three segments that we have, synthetic latex,
NBR and nitrile latex, which one has the highest margin currently?
Abhiraj Choksey:
You know, obviously nitrile latex would be percentage-wise lower. I think NBR, I do not have
the exact numbers right now. And when you say currently, I do not know which period you are
talking about. But if I were to take first half, I would say NBR margin is probably slightly higher
than the synthetic latex also, but both are very good.
Moderator:
Thank you. We will take our next question from the line of Jasdeep Ahluwalia from Clockvine
Capital. Please go ahead.
Jasdeep Ahluwalia:
Hi sir, thanks for taking my question. Sir, what has been the volume growth in synthetic latex
business in 2nd Quarter and first half?
Abhiraj Choksey:
Synthetic latex segment in 2nd Quarter and first half?
Jasdeep Ahluwalia:
Excluding nitrile latex, I am asking, in the SBR business?
Abhiraj Choksey:
I do not know if we give those separately. Vivek, do we generally give those numbers?
Vivek Thakur:
No, we do not give segment wise volume numbers.
Abhiraj Choksey:
Let us talk about overall volume growth is what, 7% for the quarter, right
Jasdeep Ahluwalia:
Yes, that data was there in the presentation. Thank you. Sir, also on the synthetic latex side,
are there any new product launches planned which could open up large addressable segments
for you in the coming years?
Abhiraj Choksey:
There are one or two. For example, battery binder is something we are working on. I do not
know if it is going to be a very big segment. It may be a niche small segment for us. So, we are
developing products for the battery industry. As I said, over the last few years, we have
developed some products for the oil drilling industry and I think there are a few more that we
could do. So, we are doing that. Some products for the textile industry and some products for
the paper industry. So, it is largely the industries that we are in today, but I would say different
applications. In some cases, we are doing some innovative products to reduce costs. Some bio-
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based products, so more bio-based raw materials being used in conjunction with the
petrochemicals that we use, of course. We will not be able to replace it 100%. So, those are the
kinds of things that we are doing in the synthetic latex segment.
Jasdeep Ahluwalia:
Got it, sir. And, sir, what is your view on the volume growth in the synthetic latex business in
the next three to five years?
Abhiraj Choksey:
We were quite bullish. Look, again, it depends on this. I will give you an example. In synthetic
latex, as I said, we have five different industries. So, the carpet industry is what has been kind
of a laggard for the last six months for us in terms of volumes and I explained why to the
previous caller. But overall, I would say under normal circumstances, we see most of these
industries growing in our part of the world for a couple of reasons. One is our population is
growing. Per capita GDP is growing. Southeast Asia is growing. And then the second issue is
substitution from Europe. In a sense, European competition, which was supplying to Middle
East, North Africa have typically not been able to compete with Asian competitors like ours.
So, we are gaining market share there as well. So, I would say both in India and this region
where our main focus is for Apcotex, the MENA region, the Southeast Asia region, I think we
see a good growth potential for all these segments.
Jasdeep Ahluwalia:
So, can you give a range of volume growth that you expect for the overall business for the next
three to five years?
Abhiraj Choksey:
I would say 20-30% over GDP. So, 10-12% a year is what we expect. On average, yes. Some of
it may be lower. Construction is a higher growth segment. Carpet is a lower growth segment.
But on average about 10%, I would say.
Jasdeep Ahluwalia:
10% CAGR for the next three to five years is your estimate as of now?
Abhiraj Choksey:
Yes.
Jasdeep Ahluwalia:
Got it. So, thank you. That is all from my side.
Moderator:
Thank you. Next question is from the line of Neeraj Paswan from IncredEquity. Please go ahead.
Neeraj Paswan:
Yes. So, sir, I just wanted to know if you can provide the sales volume of our different segments
for this quarter and last year’s same quarter?
Abhiraj Choksey:
Unfortunately, we do not give sales volume numbers by segment and all of that because while
we would be happy to be quite transparent with our investors and analysts, but for proprietary
reasons, we do not want some of this information to go out into the open.
Neeraj Paswan:
Okay, sure. Just one other question. I just wanted to understand it, we are importing bulk of
our raw material inputs like styrene monomer. We are importing this chemical. So, IOCL is
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putting up a capacity of this product. So, have we been in contact with them for the domestic
supply of raw material, any kind of files or something like that?
Abhiraj Choksey:
Yes, look, yes, yes, of course. We are buying butadiene from IOCL, so we are very much in touch
with them regularly. I think the styrene project is still a while away, and I do not think it is going
to be enough for the entire country. If it makes sense for us commercially, then, of course, we
would be looking into it. But as of now, they have not started any commercial discussions or
any of that. I think they are still a while away before the styrene project.
Neeraj Paswan:
Okay, sure. Because I was reading that this capacity was going to come around 2026-2027. So,
maybe it is delayed. I will just look up the latest thing and we will connect again.
Abhiraj Choksey:
Certainly not 2026-2027.
Neeraj Paswan:
Okay, thank you.
Abhiraj Choksey:
Thanks.
Moderator:
Thank you. We have a question from Suchit M, a shareholder. Please go ahead.
Suchit M:
Good afternoon, everyone. Sir, my question is only related to these two quarters, that is Q2
and Q3. The data for the last five years, Q2 and Q3, forget Q1 and Q4 that are outstanding. So,
Q2 and Q3 are in a sequential quarter basis. Please note, sequential, not year-to-year. It is
coming as negative. So, is there some strategy from your side that management is working for
the long term to make this possible? Please note, this is only what I am trying to say, sequenceto-sequence.
Abhiraj Choksey:
I am trying to understand your question. It is a valid point and we have never analyzed it this
way. When you say negative, what is negative?
Suchit M:
Sir, let me give you an example. Last time, I was just giving you a hypothetical. We have
revenue, EBITDA and PAT. Three of the columns. Just a general question. Let us take revenue
is 100, EBITDA is 50 and PAT is 20. Now, in Q2, revenue is somewhere around 50. This EBITDA
is 30 and this PAT is somewhere around 15. And same in Q3, it is like that. Q3 decrements from
Q2. I am not saying it is a business cycle, I am saying it. That is what I am asking this question.
Abhiraj Choksey:
You are saying that between Q2 and Q3, all these three numbers, revenue, EBITDA and for the
last five years, Q3 has been lower than Q2.
Suchit M:
Let me give you an example. Q1 will always perform very well. I think for a decade it has been
working very well. Q2 decrements with Q1. Then again, Q3 decrements with Q2. Then Q4 is
highly very good. That is what I am saying. So, I do not know why two quarters is extremely like
in the sequence-to-sequence only.
Page 9 of 12
Abhiraj Choksey:
First of all, great analysis. I have never looked at it this way or we have never looked at it this
way. We will certainly look at it. Of course, I know between Q1 and Q2, there is a drop. And I
will explain why. And that generally does happen because of the monsoon season in India. First
of all, 65% to 67% of our sales is India-based. And some of the large industries that we are
catering to like construction, tires, to some extent carpet also, the sales in Q2 are a little lower.
The demand, let me put it, not sales. Demand is a little lower. So, Q2 is generally, what would
you say, seasonal, cyclical issue. So, Q1, Q2, I think that is the explanation. But Q2 to Q3, I will
have to look into this. I do not know, frankly. I have never looked into this. And we will look at
the last five years' numbers. There is no good reason for that to happen. But we will certainly
look into it.
Suchit M:
But, sir, you already mentioned one thing in the previous day. Every analyst for being my
decade-long shareholder, that is not an issue. The problem is, sir, the numbers are going yearto-year. But what happens, if you perform Q1 extremely very well, like in 100%, and now the
sequences can drop drastically. See, please note, negative means not a drop in profit or
something. It is just that percentage drops. And today I saw that scenario again, back again. So,
let me, what I will try to do, the best option is to give the management team this data, from
my side as a data analyst. So, I will do it on volunteer basis and I will send it across to you, your
investor team.
Abhiraj Choksey:
We will definitely send it to Q3. But again, as I have always said, sorry, what is your name, sir?
Suchit M:
Suchit.
Abhiraj Choksey:
So, Mr. Suchit, as I have always said, for us, and there are many businesses, right, not just us,
but if you look at the paint business, paint business is cyclical. Quarter 2 is always lower than
quarter one. So, to some extent, we have that issue also because of the monsoon. Similarly,
cement business, similar, right? So, we do not look at Quarter-on-quarter very closely. For us
as management and I would urge all our esteemed investors and analysts to also, and
shareholders to also look at the bigger picture, look at annual numbers and how they are
growing. Quarter-on-quarter, because of the nature of our business, and it is just not the
monsoon, because we are so dependent on oil prices and how they behave, we could have
large inventory gains, large inventory losses. We could have lower percentage margin EBITDAs.
All that is fine. Look at the longer, I mean, that is the Quarter-on-quarter nature of our business.
So, please do not only focus on the results, look at the overall picture. However, we are happy
to look at your analysis.
Suchit M:
See sir, yours is always good in the decade, annual. Annual is always performing. But I have
seen a certain year, like in 2022 or ‘23, I do not know exactly, but I do not have the data, since
I had not come prepared with that sheet yesterday I kept in my house. So, what I would figure
out, somewhere around in 2018, the company did perfectly in the positive region, coming
across it. So, it is okay. I will send out the analysis. That is not an issue.
Page 10 of 12
Abhiraj Choksey:
Send it out and then we will reply to you if we have any findings.
Moderator:
Thank you. The next question is from the line of Aditya Khetan from SMIFS Institutional
Equities. Please go ahead.
Aditya Khetan:
Thank you, sir, for the follow-up. I have two questions. Sir, our upcoming Rs. 210 crore
expansion, what would be the breakup of funding? Like how much would be from internal
accruals, how much would be from debt? And sir, adding on to this, any sense like this
expansion of synthetic latex and NBR, as compared to our traditional basket, are there any
some new grades? Although I understand the broad category is same but any sort of new
products we are developing and is there some scope for better per kg as compared to the
traditional basket or even the products and grades are the same?
Abhiraj Choksey:
Oh, for sure. No, no, that is our endeavor, right? To constantly develop products that would
give us better margins than our traditional basket. So, more niche, more specialty and we have
already done some of that over the last few years. So, if you overall see the results of the
company have been reasonably good compared to in the last year, for example. Part of the
reason is these kinds of products, and we will continue to develop that both in NBR and
synthetic latex.
And to one of the previous callers, I gave some examples of certain products like in oil drilling,
in battery binders, in specific niche paper applications where we are developing customized
products. However, it will be a lower volume of the total volume. So, while it may help increase
the margin, it will not be a major game changer that margins are suddenly going to go up by
50% because of some one segment that we have entered into. That kind of issue, that kind of
story is not there today.
Aditya Khetan:
Got it. Sir, also the end user side, like you mentioned, so carpet sector is struggling. Also, sir,
when we look even other sectors like paper side, the order of loads have been muted. Even
paper sector is struggling with overcapacity. If you can broadly classify which other sectors are
facing pain, which other sectors are good. And secondly, you mentioned that there is also some
volume loss from the carpet side. Any extent or number you can mention like how much
volume loss we have faced from the segments?
Abhiraj Choksey:
Again, we don’t give segment wise numbers but broadly there has been a reasonably good
volume loss in the Q1 especially when the war started, Q2 has been better. I think Q2 we have
not had any volume loss compared to Q2 of last year for carpet also. We may be like sort of
break-even or no growth, but we have managed to get some of it back, sometimes from other
regions as well by again dropping prices we have been able to get from some regions. So, we
have done all of that. But broadly, I would say construction has been strong. Inspite of the
overcapacity in the paper industry, the demand of the final paper is okay, right? So, we are still
getting good paper volumes for our product into the paper segment overall. But yes, are the
paper industry within them, there is overcapacity. It is going up.
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Aditya Khetan:
So, the pain point largely remains on to the carpet side as you mentioned earlier.
Abhiraj Choksey:
For six months, yes.
Moderator:
Thank you. Next question is from the line of Om Prakash Dhoot, an individual investor. Please
go ahead.
Om Prakash Dhoot:
Abhiraj Ji, Namaskar. Can you hear me? Yes, Dhoot Ji. Namaskar. You have again given good
results in adverse situations. Congratulations for that.
Om Prakash Dhoot:
My question is: are the plants running on full capacity?
Abhiraj Choksey:
One or two plants are running at full capacity and one or two, I would say, very high-capacity
utilization. Like NBR plant is running at full capacity utilization for the last one and a half years,
last one and a half, two years maybe. And in the next six months they will run with full capacity
utilization. And the other plants are running at 80% and 90% like that so once our NBR and
synthetic latex will come at least we will get the capacity for the growth for the next two to
three years.
Om Prakash Dhoot:
Thank you, sir.
Abhiraj Choksey:
Thank you, Om Prakash Ji. Thank you for your support.
Moderator:
Thank you. As there are no further questions, I now hand over the call to management for
closing comments. Over to you, sir.
Vivek Thakur:
Thank you everyone for your time to attend the conference call today. We hope that we will
meet your expectations during the subsequent result session. We wish you all a very Happy
Diwali and look forward to meeting you all. Thank you.
Abhiraj Choksey:
To All - a very Happy Diwali and Prosperous New Year. Thank you.
Moderator:
Thank you, members of the management team. On behalf of Apcotex Industries Limited that
concludes this conference. Thank you all for joining us today. You may now disconnect your
lines.
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