Privi Speciality Chemicals Limited (PRIVISCL) Q2 2027 Earnings Call Transcript

Ladies and gentlemen,

good day and welcome to Privy Specialty Chemicals Limited Q2 and H1 FY27 earnings conference call. As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions at the end of today's presentation. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touchstone phone. Please note that this conference is being recorded. From the management, we have with us Mr. Mahesh Babani, Chairman and Managing Director of the company, Mr. R. S. Rajan, President of the company, Mr. Narayan S. Iyer, Chief Financial Officer of the company, Mr. Sanjeev Patel, Executive Vice President, Strategy and Biotechnology, And before we begin the conference call, I would like to mention that some of the statements made during the course of today's conference call may contain forward-looking statements about the company which are based on beliefs, opinions, and expectations of the company as on date of this call. These statements are not the guarantees of future performance and may involve risks and uncertainties that are difficult to predict. I would now like to hand the conference over to Mr. Mahesh Babani, Chairman and Managing Director of Privy Specialty Chemicals. Thank you, and over to you, sir.

Thank you, ma'am. Good evening, everyone. This is Mahesh Babani. Strongest ever quarterly performance, notwithstanding very adverse global... At the same time, we have been continuing to build capabilities and will support the next phase of performance, reflects the strength of our underlying business, the relationships we have built with our customers, and the investments we have made in our manufacturing capabilities. Over the past few years, I am a chemical business. Reflecting our confidence in the business and our commitment to creating value for shareholders, the Board has declared the company's first-ever interim dividend of Rs. 5 per share of face value, Rs. 10, for the financial year 26-27. We remain encouraged by the opportunities ahead while staying focused on discipline execution. With that, I would like to invite my team, Mr. Rajan, Sanjeev, and Narayan to discuss our operational development and the progress we are making across.

As I mentioned, we have achieved our highest ever quarterly total revenue of Rs. 773 crore and EBITDA of Rs. 212 crore. This performance has been delivered against a global backdrop shaped by geopolitical uncertainty, changing trade flows, and volatility in the input and logistic cost. At the same time, customers continue to place strong emphasis on dependable supply and consistent quality. For a global speciality, Aroma Chemical suppliers like previous...

Thank you to everyone of you, and thank you Mahesh Ben, thank you Sanjeev for the insights, and a warm welcome to all my investors in this previous Speciality Chemicals Limited quarter 2 earnings call, and Narayana Isaiya, the Chief Financial Officer, and would like to give certain highlights with the I am pleased to report that quarter two for financial year 26-27 was a record quarter in terms of both sales and profitability. This is an important milestone and reflects the strong operating momentum of our business and our company. Q2 in financial year 26-27 extended our strong operating momentum with a total income of Rs. 773.16 crore, up 13.9% year-on-year. An EBITDA achieved was Rs. 212.49 crores, up 16.66%, and a profit after tax of 117.03 crores, reflecting a 24.61% growth over the previous year. These performances were supported by broad-based demand across domestic and export markets, reflecting the resilience of our business model and our continued focus on achieving a higher profitable growth. In the previous year, out of the total revenue that we earned, an amount of rupees 9 crores was on account of state incentives received, and during the current year, an amount of 1.62 crores have been received. We expect to receive more going forward during the financial year. Our expenses during the year have been under control and, in fact, has come down, and if we compare as a percentage of sales, it works to 9.72%. This has been possible due to the constant and focused monitoring of expenses and optimum utilization of our capacities, thereby reducing the fixed costs over a larger base. This has helped to ensure, maintain our margins. Apart from this, the R&C as a percentage of sales has come down to about 52% as compared to 54% in Q1 and as against 51% for September 25 of the previous year. EBITDA margins remained a healthy 27.48% in Q2 of financial year 27, as against 26.12% and 26.12% for the first year of financial year 26-27. Despite volatility in feedstock and trade costs and uncertain market conditions, we have been able to ensure to maintain our overall margins during this quarter and for the first half of the year 26-27. We continue to focus on operational efficiencies, disciplined expense management, and improving the quality of our earnings by good product mix. We expect to maintain the momentum of growth in the near future and are working towards achieving our vision set about of the 5K, 1K+, and are very confident of achieving the same by 2030. Profit after tax achieved during Q2 was 117 crores, which is up by about 25% year-on-year, while packed for the first half-year of 26-27 was Rs. 201 crores, up by about 29% compared to the previous year. Coming to some of the balance sheet items, our balance sheet remains strong, supported As on 30th September, 2026, our ROC stood at 24.30%, an improvement of 216 basis point year-on-year, while ROE increased by 134 basis point, and we have achieved a figure of 26.34%. Our net debt to EBITDA ratio stood at 1.07x and a net debt to equity was 0.51. Together with our focus on cash generation, these metrics provide a sound financial foundation to support our planned investments while maintaining balance sheet discipline. In absolute terms, our net debt as on 30th September 2026 was Rs. 814.51 crores. Our working capital cycle has also come down to less than 100 days during this quarter from the 124 days which we achieved in the same period in the previous year. Our cash generated from operations for the first six months was 445 crores, showing remarkable improvement over previous year, mainly on account of higher profits earned during this year. Looking ahead, we will continue to allocate capital towards capacity expansion, new speciality products, and operational improvements while maintaining a strong focus on profitable growth and cash generation. As discussed earlier by both Mr. Maheshwai and Sanjeev Patil, our Capacity Expansion Program and the development of our speciality portfolio remains an important enabler for our long-term growth ambition. We hereby reiterate that Privy is confident of achieving a growth going forward and we expect to maintain the 20% growth overall in the coming years. Thank you, everyone, and with that, I would request the moderator to open the floor for questions. Thank you.

Let's go for a moment while the question queue assembles. First question is from the line of Krish Salot from Veer Growth AIS. Please go ahead. Sir, can you please be a little more loud?

Hello, am I audible now?

Sir, we are not able to hear you. Just next. Hello, am I audible?

Yes, sir, based on our commissioning, So, the bottlenecking plant that was going to be commissioned by September 26th hasn't been commissioned, and what would be the utilization when we can see a ramp-up in that particular de-bottlenecking expansion that we did?

Sure. The expansion has been completed. Can you hear me? The expansion has been completed. You will see part of it coming through in quarter 3, but a significant part would come in quarter 4. Because that's when the new contracts really start, which are annual contracts. So, we are very positive about those contracts. And you will see significant impact of that capacity utilization of almost 85 to 90 percent during that quarter for the expanded capacity also.

So, sir, we will be looking to expand a bit more de-bottlenecking capacity in Q4?

No, the capacity expansion has been completed. Now, I am saying that the volumes will come in quarter 4 when we get the new contracts. So, in quarter 4, you will find significant volume growth.

Okay, sir. Okay. And, sir, secondly, on the question was that what would be our asset turns and how are we looking to improve our asset turns forward?

The asset turnover has already been improved and it is really doing well. And as informed, going forward with the new molecules coming in and the high speciality chemicals also setting up, we expect a better asset turnover going forward in the phase 2 and phase 3 also. But as we speak, our asset turnover is at 1.7 times on the fixed asset base, in fact.

You can see into ROC, the ROC is at 25% almost, 24.3%, which is the reflection of how well we are using our assets, you know, including both working capital as well as...

And so, just one last question. Last quarter, I had asked you regarding the new kind of JVs, and you had given us some understanding that we are working on two new partnerships that we are signing, and we are close to signing those partnership kind of agreements,

So we are working on those, it takes time as you know, you know, and it is work in progress and in due course of time we will inform you about those. But we are obviously working on the opportunities and there are opportunities on hand.

Okay, okay. And sir, lastly, are we facing some raw material tension from the fried perspective because of the extended war-seech scenarios in the West Asia region?

As we always maintain that two-third of our revenue, almost 70% of our revenue comes from non-betholium source raw materials. So we do not have significant impact of this war and the situation like that.

Thank you very much.

Ladies and gentlemen, in order to ask a question, please press star and one on your touchtone telephone. I repeat, in order to ask a question, please press star and one on your touchtone telephone. The next question is from the line of Ram Aravind from iThought BMS. Please go ahead.

Hello. Hi. Am I Aravind?

Yes, sir.

Yeah, so my first question is on the growth guidance that we have. So if I'm not wrong, for the past three, four quarters, we've been guiding about 20% growth, right? And so, but H1 actually grew about like 15%. And if we have to reach 20% for the close of FY27, we would have to be growing way above 22% or 23%. So does the management still hold that 20% guidance?

Yeah, we still continue to maintain the 20% guidance. As you are aware, that normally the first half is lower than the second half for us, and we are confident of showing a 20% growth on an annual basis. And we have always been reiterating that you have to look at us as in yearly numbers rather than only looking at quarter-on-quarter performance.

Right, and just to follow up on that, any specific segments that you see the growth coming from? Apart from, we know that pinene is the largest segment, but apart from that, do we see any other specific segment where this growth is going to come from?

As informed, you know, the overall utilization of all our plants has been around the 85-90%. So we expect to maintain the momentum of growth in all, and Mr. Maheshwai will also add to that.

See, our market's usage of aroma chemicals is increasing. Significantly. Lots of new things are coming, new...

Comment on any particular segments that this growth is coming from?

We do not give any segmental guidance, you know. But overall, we will be able to maintain that 20% growth.

Okay, sir. Understood. And the second question will be on the Phase 2 and Phase 3 CapEx plan. So can you just give us a timeline as to when we could see this finishing up and when will we see commercial production for the chemicals that are going for this KTX?

Phase 2 will happen and it will be effective available for commercial sales from second quarter, second half of next financial year. So we are planning to complete everything by June and from September onward because there will be tired production and all of that. So, from second half of next financial year, we are looking to have additional revenues as well as margins from the new expansion.

Right. So, is this for the purpural-based derivatives or is that separate?

That's correct. That's purpural-based derivatives, maltol, ethylmaltol, cyclopentanol, and a couple of speciality molecules as well.

All right, sir. All right. I'll get back on the queue if I have another question. Surely.

Thank you very much. The next question is from the line of Sudhir Bera from Bera Family Office. Please go ahead.

Yeah, good afternoon, and I think congratulations to entire preview team for hosting the outstanding results under the very volatile circumstances. Right now, we are experiencing in terms of high rate and also volatility in the market, European and U.S. as well. So, my first question is, sir, there is a slight bit of dip in the EBITDA. If we strip off the other income, there has been a slight dip in the EBITDA compared to last year. So, is it a case where last year, I think you have said that we have received some incentive, CAPEX-based incentive. But what is the this year's position? Have we received the incentive or incentive is yes to come?

Good evening, sir. As indicated, we have received in this first half only 1.62 crores, as against 9 crores that we received in the previous year. We expect to receive more incentive going forward in the next six months or so, in fact. So, the amount will be, I think, higher than what we have earned in the previous year. So, that's one part. Second, you know, with regard to the percentage dip that you talked about, I tried to clarify in my speech, because if you remove the 9 crores, what was also considered as a revenue vis-à-vis the 1.62 this year, if you see the RMC as a percentage is about 52, In this quarter, and the previous year, likewise, if we do, it comes to about 51%. As you know, 1-2%, because of so much of CST and GTO coming from various bills, from various locations, there could always be that factor that will come about, in fact, you know. However, we were able to ensure to maintain and improve the EBITDA margins on the other expenses because, you know, with the higher base that we have been able to do, we have been able to amortize the fixed expenses, and that's how the EBITDA margins have been improved.

And also, also conversion of EBITDA into PAD also has been improving, if you see, for the last four or five quarters, which reflects that we use assets much better, and also, also the interest cost also is coming down. You know, so as a result, between from EBITDA to PAD, also our, you know, conversion has improved significantly in the last four quarters, you know.

Yes, sir. Yes, sir. And EBITDA to cash has also improved because your cash from operation has gone to 360 level, which is very good.

Yes, sir. Yes, sir. Yes, sir. Yes, sir. Yes, sir.

Yes, sir. So, can you quantify what is the balance outstanding incentive which we are likely to receive in the next two quarters?

The amount should be in the range of about 12 to 15 crores.

Great, sir. And, sir, for the next year, what is your guidance for the year 27-28? As far as revenue growth is concerned, also, if possible, EBITDA guidance, if you can see.

So, we have a very positive outlook. We are confident of maintaining 20% or beating 20%, to be honest. We are confident that we will be able to be close to 4,000, maybe 3,750 or some number, but we are close to guidance what you are given.

20% will be with the margin where we are right now.

Congratulations and all the best. Thank you.

Thank you very much. Ladies and gentlemen, in order to ask a question, please press star and 1 on your touchtone telephone. I repeat, in order to ask a question, please press star and 1 on your touchtone telephone. The next question is from the line of Yash from Mavira AMC. Please go ahead.

Yeah, hi, sir. Thank you for the opportunity and congratulations on a great set of numbers, sir. Sir, my question is more from a macro perspective or industry perspective. So, we have been hearing a lot about the various headwinds that the European markets are facing. So, how as a company do you think we can benefit from this situation of the labor crisis, the energy crisis and stuff?

So, you know, we always maintain that, you know, we touch your life every single day, and we are in products which we use on a day-to-day basis, you know. So, to that extent, you know, some of these crises that we talk about may not affect us. And in terms of our future outlook, we see great opportunities coming forward because all those things that you mentioned create huge amount of opportunities for manufacturers in India who are compliant, who are quality conscious, and who follow all the sustainability norms. As a result of that, PB is well positioned to capitalize on all these opportunities and that is why we are so positive about the future and we have been delivering that, you know, this first half we have done a growth of 15% and we are confident that end of the year the growth will be 20%. We see substantial opportunities coming on our way and we are well positioned, we have created enough infrastructure to capitalize on that.

Understood. Thank you. Thank you so much. And also, are you experiencing any challenges in the CST procurement due to disruption in the shipping rooms because of geopolitical situation?

So, answer is the second question. First, we are not seeing any challenges there in terms of procurement of raw materials. Okay. Now, coming to the first question, I think Narayan will guide you.

So, as far as the freight costs are concerned and passing it on to the customers, as informed in the earlier some of the invasive calls, you know, we learned from our mistakes in the past, and now definitely when we also enter into contracts, we ensure to have a quarterly, you know, pricing mechanism for the freight. So, if at all there is a freight which is, you know, exceeding and increasing drastically, definitely we are in a position to go back to our customers and ask for that increase or decrease, whatever it may happen at all. Having said that, and also reiterating that freight for us, you know, the disturbance has not been to that extent what others are facing currently, in fact.

Thank you very much. The next question is from the line of Nirav Gandhi from Sunidhi Securities. Please go ahead.

Hello. Hello. Am I already there? Yes. Yeah. Thank you for the opportunity, sir. My first question is on other income. So, we have seen a higher number in Q1 and Q2. So, is there any specific reason for the same?

Yes, sir. Good evening, Nirav. This is Narayan here to answer that. Primafici reason is that our exports are high, and you know that the dollar has been in our favor, and being a net exporter, it always helps us around. So, the other income, Primafici, consists of a major part on account of foreign exchange gains, in fact.

Sure, sir. The second question is regarding the EBITDA margins. So, if we see Q2 FY27 with Q2 FY26, both these portals have seen EBITDA margins in excess of 25-26%. So, is there any seasonality in terms of EBITDA margins?

Here also, you know, I explained in maybe a little different pattern. Last year, the said Q2, we were, you know, able to get that 9 crores of state incentive. So that's why that a little bit of EBITDA margins also improved on account of that. And we were also held with overall RNC prices used from the inventory. So that was the reason that we had this, and definitely higher volume of sales achieved in this quarter, because this quarter normally is a better quarter for us as compared to Q1.

Yes, there is that, what you are saying is right. It cannot be called a seasonality, but if you look at our last 4-5 financial year, quarter 2 has always been superior in terms of financial numbers. One of the key reasons for that would be that, you know, we often get second calendar year, you know, contracts with some of the customers, you know, and that's where we, and newer products come in, and that's how it results into better margins and better profitability.

Right, sir. And if you can share the volume growth numbers for Q2 and H1 FY27, a rough guidance would be helpful.

In Q2, there has been a growth of 4%, and overall on H1, if you have to talk about last year vis-à-vis the current year, the growth has been in the range of about 7 and 7.5% or so.

Right, sir. So that 4% in Q2 is on a year-on-year basis, right? Growth. That's correct.

That's correct.

And, sir, revenues from Preju joint venture, revenues and EBITDA?

So, as indicated by Mr. Sanjeev, in this quarter, we have achieved a sales of about 28 crores with a positive BBT of about close to 2 crores or so. And overall, for the first six months, we have achieved a sales of about 47 crores and a negligible loss of 0.02 lakhs or so, in fact.

Sure. Yeah, thank you. That's it from my side. Thank you so much.

Thank you.

Thank you, Nirav.

Thank you very much. The next question is from the line of Nikhil Purval from Perpetual Capital. Please go ahead.

Yeah, hi. Good evening, everyone. Congratulations to the entire team for posting a strong set. My first question is on the working capital cycle. So, Narayanji, I think you're trending close to 90 days now, and this was at almost 160 days, three years ago. So, are we at the bottom now, or maybe we see a slight increase in coming times?

Nikhil, hi. You've done a good analysis. I should say that. Thanks. And you've been always a good well-wisher. So are all the other investors. Yes, definitely this time. So, that's the reason in my speech also I mutated by saying less than 100 days or so. Or you should, on a long-term, on an annual basis, expect a working capital cycle in the range of about 105 to 110 days, you know, broad game.

Okay. And there's also a decline in your debtors. I mean, the receivables have declined versus March, while the sales have moved up. So, have you changed some terms with your customers, or what's the reason for this?

Sir, I have to say that, you know, PREV stands for quality, on delivery time, and expectations of the customers have been so good with us that they have been, you know, helping us in ensuring that the money is paid to us on time, and in some cases, maybe a few days before time also. So, that's the reason why you see receivables have come down in this first half.

Okay. And the next question is also the expected deleveraging in Brazil. I think you're looking to convert the debt into an advance or something. I don't know. Has that already happened or is it yet in process?

See, it is in process, in fact. It is in process. It takes some time when you are talking with large multinational companies.

Okay, okay. So, you are looking forward for strong performance in coming times. Best of luck.

Thank you. Thanks, Rikad.

Thank you very much. Ladies and gentlemen, in order to ask a question, please press star and 1 on your touchtone telephone. I repeat, in order to ask a question, please press star and 1 on your touchtone telephone. The next question is from the line of Krish Salot from Weezeroth AIS. Please go ahead.

Hello, sir, and thank you for taking our question again. I just wanted to know more on the merger of PV Finance and PV Marlott Technology. And the earlier two years back when we decided that we are going to do this merger, our plan was that we find science can do around 100 crores of turnover by F525, but however, we still see that it's going around close to 68 crores of turnover in F526 and around 34.28 crores of loss. So, post-merger, we can see some effect on our consolidated books, and how are we seeing that those utilization and those ramp-up can improve? Because the maximum target was around 300-odd crores of revenue from that particular plant.

You are right, Krish. We are given that. So it is waiting for some regulatory approvals. Otherwise, in terms of products, we are good. But in terms of some regulatory approvals, we face some delays, which are now nearing completion so that next year you will see significant improvement in these numbers. But what is important is that we have five different products, out of which four products are already being supplied to the top multinationals. We have not been able to expand the capacity because of the regulatory approach that I am talking about, which would be in place during the next few months. And then next financial year, you will definitely see numbers which are closer to what you said.

So, sir, can you just give me some understanding, what would be the utilization over there right now, and what capacity and the product portfolio that particular capacity holds?

So, we don't normally give product names around that, but these are products based out of isobutylene and other things, and capacity utilization is as much as 85%, okay? We are not able to expand the capacity. Everything is ready, but there are some permissions which we are waiting for. Once those are in place, then the expansion will happen.

So we will conduct some green bottle necking or some additional capacity over there, apart from the APEX plan that we have given already. That is

correct, but then you require permissions for expanding capacity also, you know, from the Pollution Control Board and others, So, which are expected anytime now, once we have those in place, then it will result into expanded growth, you know.

Understood. And just one last understanding on that, the capacity over there will be around 6000 MPPA?

That's correct. So, Krish, to answer you specifically, yes, the capacities are already put in place. That's what Sanjeev is trying to say. So, we have about 6000 tons of capacity which is there, which can possibly give us a potential revenue of about 300-350 crores, which we've been talking about, basis the prices that are there. Certain regulations, certain things which are in pipeline, we expected those borderlines, those bottlenecks to be resolved as we speak. And by the time the entire merger process happens, which we expect that it should happen before this financial year ending, Today, you know, we will be in a position to really go all out on manufacturing and achieve the so-called 80-85% of the capacities so that our revenue from so-called 100 crores, what we could achieve, can go to the 250-300 crore market.

But, sir, currently also we are doing around 85% utilization. I guess I heard it right. Why is the loss of around 34 crores at that level?

You know, the full capacity is not yet realized. That will be realized only when we get those permissions, and that's when it will break even and be in that.

Okay, sir. Thank you so much. That's one of the understandings. Thank you.

Thank you very much. Ladies and gentlemen, in order to ask a question, please press star and one on your touchstone telephone. I repeat, in order to ask a question, please press star and one on your touchstone telephone. The next question is from the line of Anirudh Sharma from Akant Investments. Please go ahead.

Good evening, sir. Am I audible? Yes, sir. I just had a couple of questions. So, the first question is on the CAPEX front. What is the total remaining CAPEX and what is the expected commissioning timeline and incremental revenue potential that we are seeing from the on-point project?

See, as mentioned by us and also indicated in the investor presentation, the overall outline for all the three phases put together was close to about 1,400 crores. The phase one is already completed and some of the phase two also we have incurred expenses. So broadly, as we speak, we expect the thousand crores going forward to be spent on phase two and phase three. All these three phases put together has the potential revenue to be generated of about close to 1700 to 1800 crores or so.

Okay, sir. Understood. Understood. And, sir, additionally, how much revenue contribution can we expect from maltol, ethyl maltol, and other specialty chemicals over the next 2-3 years, if you can give some indication on that front?

So, that's what I indicated, right? So, the phase 2 is going to be the maltol, ethyl maltol, furforol, cyclopentanol, what Mr. Sanjeev Patil was saying. So, this is the phase 2 of expansion, which we expected to be completed next year between June and September. And the revenue contribution will start from October 27 onwards. We expect that entire phase 2 to contribute about close to 1,000 crores of revenue once it is in full capacity of 12,000 metric tons. And phase 3, as we are talking about, where we indicated a broad capex of about 400-425 crores, That will give an additional revenue of close to another 450 to 500 crores. Broadly about that. So, this thousand plus that 500 of the speciality and the phase one, which has the potential of generating about 450 crores. So, if you add this up, all these three phases of KPX will give us a revenue of about 1,900 crores, and we expect this 1,900 crores to be completely, you know, in sync by 2030. It should allow our company to reach the 5,000 crore mark.

Understood, sir. Understood. So, that's it from my side, sir. Thank you for the opportunity.

Thank you.

Thank you, Eka. Thank you very much. Ladies and gentlemen, in order to ask a question, please press star and one on your touchtone telephone. I repeat, in order to ask a question, please press star and one on your touchtone telephone. The next question is from the line of Dharmendra Dave from JM Financial Limited. Please go ahead.

Thank you for the opportunity and congratulations on a good set of numbers, sir. Thank you. Just I wanted to know on the initial, how has been the response on the client for the next year contract? Are they worried? Are they confident of increasing the offtake from there? What is the sense?

As you can understand, this is a bit proprietary, so I will be very guarded in terms of what I am saying, but the situation is extremely good. All is well and better, so we are seeing very positive outlook for the market and for more customers. Please appreciate, I cannot be more open than this.

All right. Okay, I understand. And of course, since next year, this new capacity is coming on stream, maybe probably near September, October 27th. Are there any off-take tied up on this business as well?

So, we are working on all of that. So, the way we do it is, during this one year that we will be putting up this project, we would We will be manufacturing these products on a pilot basis and selling it to our customers so that in terms of quality, in terms of various other issues, those are all sorted out by the time the commercial production starts, you know, and the response is positive, very

So should I understand that approval cycle and everything is ongoing currently and then by the time? Absolutely. Understood. That's it from my head. Congratulations.

Thank you very much. The next question is from the line of Bevesh, Charnani from Equintis. Please go ahead.

Hello, sir. Thanks for the opportunity. So, my question is on your JV side. So, you rightly mentioned that in this quarter, your JV has earned a revenue of 28 bills, right? So, on the full year basis, what kind of revenue can we expect from a JV?

So we are, in the next, in the JV, we are looking at two phases of expansion. One is already on the way, and based on that, we see a revenue of around 225 crores and somewhere there. Okay, and there is also a third phase on which we are right now working. We are doing some pilot studies, we are doing some feasibilities. If that is completed, then about that guidance we can give only after three months or more like six months, you know, because we are right now working on that in pilot. We are working on the economics and financials. So once that is in place, then we can go beyond 225 also. But surely, we are confident.

So the 225 is the guidance for FY27, right?

Yeah, yeah.

Okay. So, my second question is on your CTO and GTO side. So, that is being imported, right? So, on that case, is there any concentration of the suppliers from this being imported right now? Or it's diversified?

It's very diversified sourcing. Very diversified.

Okay, okay. Got it. So, that's it from my side. Thank you.

Thank you very much. As there are no further questions, I would now like to hand the conference over to Mr. Narayan Iyer for closing comments.

Thank you. And on behalf of Preview Specialty Chemicals Limited and the management, I would like to thank everyone for taking the time to join us on this call. It has been a pleasure interacting with all of you, especially back with sound financial numbers put forth by the entire team of Privy. I look forward to be engaging with you all very soon. Meanwhile, I wish you and all your families a very happy Diwali and a wonderful New Year and compliments of the season. Thank you, everyone, once again. Have a great day. Good evening.

Thank you very much. On behalf of Privy Specialty Chemicals Limited, that concludes this conference. Thank you for joining us and you may now disconnect your lines.