Thank you so much. Good evening, everyone.

We thank you all for joining our con call on a Saturday afternoon. I'm happy to connect with you all to discuss the business performance of the company for Q3 FY26.

Let me first start speaking about the business environment. There have been challenging conditions which we witnessed in quarter two have continued during this quarter as well.

The current quarter was marked by challenging and uncertain business environment driven by muted customer offtake, pricing pressure, and tariff-related uncertainties along with incremental capacities of some of the products, especially in China. We remain focused on customer engagement, long-term growth, and operational discipline while maintaining the market share amid these evolving market conditions.

On positive note, the HALS business delivered robust YoY growth of 55% driven by a favorable product mix and higher contribution from cost-efficient higher-derivatized HALS polymers. With the commercialization of our new hydroquinone and catechol plant, we expect immediate margin benefit across the downstream products such as TBHQ and veratrole.

Let me speak on the standalone business performance on QoQ basis. On QoQ basis, the revenue moderated to 180 crores largely due to lower sales in certain established products.

The EBITDA and PAT margins are at 40% and 29% translating into an EBITDA of 72 crores and a PAT of 52 crores. The Q-on-Q decline in revenue was primarily led by softer volumes in some of our selected products which also led to temporary reduction in the contribution of our top four products.

Consequently, top four products contribution to standalone revenue declined to 75% as against 80% in the last quarter. Coming to the YoY comparison, on YoY, the sales declined by 21% during the quarter.

This revenue decline was primarily led by decrease in sales volume. The profitability margins impacted on account of change in product mix.

On nine-month YoY basis, the revenue declined by 10%, that is from 668 crores to 602 crores. The reduction in revenue was attributed to a loss of a key customer in one of our products in cosmetic section, also pricing pressure and lower offtake in eccem segment.

We believe we are well positioned to protect market share and drive sustainable growth over the long term. On consolidated business performance, on sequential basis, revenue moderated by 10% to 216 crores, and the conso EBITDA and PAT margins are at 33 and 21% respectively, which stood at 72 crores and 46 crores.

In the sales profile, the segment-wise, the performance chemical has been the largest with 72%, pharma agro at 21, and FMCG was 5%. The performance segment was most impacted with volume-led decline in sales across MEHQ and BHA.

However, please note we have not seen any domestic competition in these products. The FMCG segment witnessed volume decline in a product called as 4-MAP.

Key business developments: In the HALS business, volume showed steady improvement during the quarter driven by better demand traction and effective execution. The HALS business continued to grow sequentially supported by a healthier product mix and increasing contribution from higher-margin products.

Building on this momentum, this quarter marked a meaningful milestone for us as we achieved EBITDA breakeven in the subsidiary Clean Fino-Chem Limited. We are encouraged by the progress and remain confident in sustaining this momentum.

A little on capex update: The hydroquinone and catechol was commercialized in the month of December, and customer trials are ongoing. With commercialization of these products, we will have immediate moderation in raw material cost of both the end products, that is TBHQ and veratrole.

The commercialization of the hydroquinone plant and the expansion of TBHQ are strategically aligned with our purpose-driven growth and value optimization strategy and are expected to enhance existing product margins. Further capex timeline of Performance Chemical 2 is as per plan, and we expect to commercialize in Q1 FY27.

With our reworked process, we have sent newer samples to customer for our pharma intermediate DHDT. While the testing is underway, we expect to have clearer outcomes over the next coming few weeks.

During the last nine-month, the capital infusion in subsidiary has been 150 crores with now the total investment in subsidiary around 700 crores. On account of corporate governance, in line with our commitment to dividend payout policy, the company has approved an interim dividend of ₹2 per share.

We are also very happy to announce and welcome two new board members, Mr. Rajkamal and Mrs.

Pallavi Gokhale, as successors to our earlier retiring independent directors. With this, we continue to uphold the highest corporate governance standards.

With this, I conclude my opening remarks and look forward to the Q&A. Thank you so much.

Sir. Thanks for taking my question.

Sir, first question just pertains to the two capexes which we had mentioned. Now you have spoken about Performance Chemical 2 and 1.

Going back, of course, you were investing 1.5 billion in both of these projects. Just wanted to know, sir, according to your internal calculations, how much revenue do we expect both these projects to generate in '27 and '28?

Just as a broad outline. I know you have spoken about an asset turn of 2 for both these projects, but just '27, '28, just if some specifics could be given.

Typically, in these fluid market conditions, we would avoid giving any forward-looking statements, but to just pinpoint with the Performance Chemical 1, because of the prices reduction overall, at 100 around 80% capacity utilization, we are looking at a revenue of 260 crores, which was earlier 320-odd crores. Performance Chemical 2, we are still under capex phase, and the facility will only begin by May, June.

We expect, after teething issues, customer approvals, we should only see revenues in Q4.

Okay. Performance Chemical 2 will be commissioned by May, June, and then probably Q4 you'll get some revenue from there.

That, right?

Not full revenue. Of course, staggered revenues.

Staggered revenue. Sure, sir.

With regards to the hindered amine light stabilizer, just wanted to understand how much volumes and realizations are we targeting for '26 and '27? Now '26 is almost done, but how much volumes and realization in dollars are we targeting for '26 and '27?

To answer that point, for this year we are already at 2,000 tons of volume for nine months. You'll be happy to know that year on year we have reported a 55% growth in HALS sales for this particular quarter.

Right. Our target remains as typically with any new product which we are commercializing, at least around 60% of utilization over 2-year period.

Now HALS has been a different case because this is a totally new zone which we have entered into, but our endeavor continues to remain to stand by that guidance.

Okay. Just, sir, realization would be around $5, that range or $5, $5.50 or are we looking at a lesser realization?

Our blended portfolio realization for this quarter has been ₹425 a kg.

₹425 per kg.

Okay.

Correct.

Because predominantly, the sales has been driven by HALS 770.

Okay. Sure.

Just lastly, sir, just wanted to understand, you did spoke in your initial comments about probably losing a customer in the cosmetic segment. Just I missed that comments.

Was it in the performance chemical segment or what segment was that in?

FMCG segment where a product called 4-MAP, where we lost

a

customer in China, and due to secondary impact of tariff of our end customers in India, they have lost their business in United States, and hence we are impacted by them as well.

Sure. Thanks.

I have more questions, I'll come back in the queue. Thank you so much, and thanks to you.

Thank you.

Yeah.

Good afternoon, Siddharth. Thanks for taking my questions.

I got few. Let's go segment by segment.

First on the performance, you did mention two things. One, you said MEHQ and HALS as a lower volume, but you also mentioned that there was no competition in the domestic market.

At the same time in the opening remark, you said that China has started producing some of these molecules. Can you give us a complete road map on performance established molecule?

It is China which has got aggressive and hence we have seen MEHQ, BHA volume decline, or was it general demand slowdown? What's your take on MEHQ and BHA?

First, let me speak on MEHQ. The reason of price drop is because overall pricing of hydroquinone, which is in the old process, the conventional process to make MEHQ starts from hydroquinone.

Now, because the Chinese have lowered the prices of hydroquinone, all-time low price, and hence the conventional process of hydroquinone to MEHQ makes MEHQ also at a lower cost point. To attribute to this, we have no choice but to lower our prices of MEHQ to compete with these emerging players of hydroquinone-derived MEHQ in China.

That is point number one. Are we clear on this?

Okay.

We said that there is still no price decline. What you're mentioning, the price decline in MEHQ is yet to hit our P&L or it's already there in Q3?

It is already mentioned in Q3.

We have already taken cut in Q3.

We have taken that hit. We have reduced the prices because the endeavor was to keep volumes intact.

This has happened. BHA, no, there is nobody in China.

When I mentioned about domestic player, I was pertaining to the players which announced coming in MEHQ or BHA or guaiacol and 4-MAP. That is what I meant, that we have not seen any competition from these players.

There is no volume loss to these players is what I wanted to mention on the call.

Reason for BHA being slow for us, is it pricing driven or it is more volume driven unlike MEHQ?

It went lower mostly in quarter three. It is a very typical standard because the drop has happened in North America.

There was some tariff-related concern and also because a lot of customers prefer to have lower stocks at the end of December month. That impact is not as huge as the other products.

You mentioned about HQ and MEHQ value chain?

Yes, and 4-MAP.

And 4-MAP. Which hit our

customer in China and also indirect tariff which has hit our customer, and hence we are hit by them.

Got it. Now, we forward integrate MEHQ to make BHA.

Can that be possibility in China as well, now that they have started manufacturing MEHQ?

The possibility in China is very difficult to mention today.

I agree, Siddharth. I know it's very very open-ended, but have you seen any sign, is my question.

Sorry

for putting it

so open-ended.

No, nothing yet. There is nothing today.

Got it. Now coming to the FMCG, last quarter, you mentioned that probably the 4-MAP customer is also looking to backward integrate or it's purely the US thing which has hurt or the customer not going to backward integrate?

Sometime can he come back or that possibility is ruled out?

No, I mentioned even on the last con call and I'm re-repeating it again, that customer, I think, is dead. It's lost for us because they have backward integrated.

That remains for China. However, the Indian customers and the customers in other parts, the reason is because say our end product of 4-MAP is avobenzone.

Now, avobenzone from India has a tariff of 55% in the United States. All the Indian customers who are buying has slowed down dramatically because of this severe impact of tariffs from the US.

What is the revenue hit from the Chinese customer? We know that that is a permanent loss and remaining can come back?

It's difficult to answer customer-wise. Sanjesh, or product-wise or customer-wise, we are not comfortable sharing.

No, that's fine. I was just from modeling perspective to how much should I take as a recurring loss and how much is recoupable.

That's fine.

It's safe to anchor that you can take probably this quarter as a run rate going forward at a company

This quarter as a right run rate to look at, right?

Yes. We are not factoring in any further customer loss in this run rate.

Got it. Now, switching to HQ and catechol, HQ we will use obviously for TBHQ and the agro intermediate.

How much will be captive demand for HQ for us? That's number one.

Number two, catechol, what are we planning with that product?

Catechol, the current plan is to, of course, make our own in-house veratrole, which anyways we are making. We are also talking to companies within India who are buying catechol to make some of the derivatives, because there is no current production happening of catechol within India at the moment.

We are also talking to these customers within India whether we can have a contractual arrangement with them. That are the two applications, and also we are started to export.

We've recently got some orders from China to export catechol, and that you shall see starting from February itself.

Catechol largely goes into making vanillin. I think Camlin used to make it in a large quantity.

He doesn't make it anymore in India?

I am not aware what is happening with them, but I just think probably I have no comment on the competition, but I don't see a lot of catechol available in the market, and all is imported currently from China. If you see the import data, currently all the catechol is imported either from China or by Solvay.

This is a market which we want to capture first being the local player and giving services like just-in-time to the customers.

That's fair. On HQ, the entire HQ we will use in-house or we will also have HQ to sell in the market?

Oh no, we will have a lot of HQ to sell. Probably we will be only using about 15-odd percent for our own captive, and the balance will be sold in the market.

That is both international and local.

Got it. That's great, Siddharth.

I think I got all my answers. Just one comment on EBITDA.

I know you mentioned that it's quite fluid and uncertain time and you don't want to give any guidance, but at the start of the year you mentioned that 40% EBITDA margin at conso was something we were aspiring for. We have hit 33.

What should one look at an EBITDA margin for this year? At the conso level.

I know. I understand.

With the way the pricing are being driven by the Chinese, the way things are also with the tariffs, the uncertainties which we are seeing, it would be appropriate to wait for at least for a quarter to really understand where we stand. Probably in the next quarter or the end of the next quarter, we can have this discussion, please.

No, that's fine, Siddharth. Thanks for answering all those questions so patiently, and best of luck for the coming quarter.

Thank you, Sanjesh.

Hi. Good afternoon.

Thank you so much for taking my questions. Maybe just to start with the volume versus price breakdown of the revenues this quarter, if it's possible to share that, please, on a QoQ and YoY basis?

On QoQ basis, out of the 13% decline, majority is by volume decline. On YoY basis, out of the 21%, the volume decline is 19%, whereas the price realization is 2%.

Majorly, it's volume decline.

Got it. Thank you.

Just on HALS, on a sequential basis, what would the volume trajectory have been like, 3Q versus 2Q?

Abhijit, on sequential basis, we have witnessed 6% growth in volume. This quarter we have almost crossed 800 tons in volumes, almost 810 tons is the sales volume this quarter.

Just to add over that, the product mix has also improved, meaning 944 is now almost contributing 20% to the HALS portfolio.

Okay. On a revenue basis, how much would the growth have been sequentially in HALS?

Sequentially, 5-6%.

Revenue as well, is it? Volume as well as revenues?

Volume last quarter was 760 tons. This quarter, it's close to 810 tons.

Yes. Okay.

Just to understand, this tariff impact which is happening because of destocking, I guess, that primarily by customers. Across the major products that we have, what categories of customers are these exactly?

In MEHQ or I don't know, BHA, guaiacol as well. What categories are these, and are we seeing any maybe green shoots in terms of their demand in the new calendar year?

I think there are multiple factors there. I think there are some reasons are also impacting the sales in North America as well as in Europe also because their end product could also be impacted by competition from the Chinese.

Okay. That would have also led them to cut down their production, which implies that their offtake has also reduced, that is what completely impacts us as well, because if their contribution or their sales has reduced, purchases have reduced, so that impacts our sales.

That is one level. Of course, the second is with the uncertainty which remains on our products on tariff, the customers are very careful in deciding when to order and how much to order.

These are two impacts which we are seeing. Whether this will improve, I think with tariffs not going anywhere, so that impact of tariff still remains.

The prices which currently we are seeing in the chemical market segment, primarily led by the Chinese, is also, I think, might remain for the quarter or two. The impact would be at least continue for the next two quarters, if not more.

That's clear. I understood that.

Just last couple of ones from my side. One is with regard to this 4-MAP, as and when maybe demand comes back from the customers that have been impacted by tariffs, would that be adequate to sell out our full capacity despite the loss of the customer we've had, or would we sort of need to

No. No, whatever volumes we used to make for that customer, that volumes is lost.

Others might not be able to recover their volume as well as that volume. I think we would be seriously evaluating what can we do out of that facility, which, of course, we are working on, or making something interesting out of these products so that we can keep utilizing these facilities.

Got it. The last one from my side is actually regarding the promoter slide in the presentation.

The title says strong visibility on longevity of promoters' engagement in the business. Just wanted to seek your perspective on whether we should interpret that to mean that even after the expiry of the 3-year lock-in period, that there will not be any further OFS from the promoters, or any comment you could offer on that point?

Of course. Though there was a 3-year period or so, but of course, all of the promoters are equally engaged in the business and all want to work towards the well-being of the company.

In my view, there will not be any further dilution by the Boob family in the next couple of years.

I guess the lock-in was anyway for 3 years, I guess the question pertains to beyond that. Any thoughts beyond that as well?

See, it is a very subjective decision by the Boob family. I cannot really comment, but unlikely that they will even sell beyond 3 years.

Not in these markets, which I'm sure you understand. I think it can be a delayed process by them.

Got it. No.

Thanks. Really appreciate your frank answers, Siddharth.

Thank you so much, and wish you all the best.

Thank you so much.

Yeah. Hi, Siddharth.

Thanks for the opportunity. First question on the geographic break-up.

If I look at the Q3 numbers in specific, domestic demand slowdown probably was a bigger factor here. If I look at nine months, obviously China is also a contributor here.

Any thoughts from a demand offtake, both in the international markets as well as on the domestic side?

[cough] First let me understand the international. International, yes, definitely, both in Europe and US, we have seen decent decline closer to 15-16% in these markets.

As I mentioned right now, it is because of two factors. One is tariff, and other is whether they are being impacted by the global acrylic acid prices, which have come down and they are at its all-time low point.

If that is the reason, that is why the Europe and the sales are down. In terms of India, these were just campaign-related cycles, I think, which have moved or postponed, and it is a very customer-centric thing.

When these agchem cycles come back, probably these volumes will again come back. We have not lost the volumes.

I just want to repeat this. The volume is not lost.

It is postponed.

Sure, Siddharth. Just on the volume bit, is it largely the macro or is there a risk of the backward integration what we saw in 4-MAP also playing out in some of our leading products there?

See, the leading products, you have to understand these are performance chemicals. These are again, as I mentioned, these are performance chemical.

An acrylic acid is the biggest example where MEHQ, a 1,000 ppm MEHQ or a 2,000 ppm hydroquinone is used. A backward integration to these would not make any sense to the customer.

This was in a particular example of 4-MAP because avobenzone has 60% of the cost of raw material depends on 4-MAP, and hence it made probably logical sense for them to do so, but not in other segments.

Okay. It's largely the end product driven demand which is slowing down, and possibly maybe a couple of quarters and then there should be some leg up there.

Absolutely.

Another thing on the pricing bit, given what you shared on the China bit as well, the pricing in the overall, let's say, HQ value chain,

Right.

presuming these prices are what they are, let's say even 1 year down,

Right.

what will be your thoughts in terms of the cost economics for us or probably the pricing, and whether these margins probably can hover in this range only going ahead?

If everything remains the same, then this is what is going to happen. If your question is if prices of finished good is going to remain at this point, assuming the oil prices are also at low point, if this continues for two quarters, then the number remains the same over the next two quarters as well, right?

My question was more likely let's say three, four quarters out, the volume growth recovery comes back, but the pricing is what it is. Is there further sort of scope for us to probably improve our costing in terms of improving the margins, or probably though it's only the operating leverage which will play out on those fronts?

It will play out. We will try and optimize some of the costs.

These are initiatives which we are taking constantly on trying to improve the prices. Again, because these are so squeezed-out products for us that I don't see anywhere that we can do some magic and reduce the prices by 10%.

It'll be very marginal what I can do. Rest, the prices are currently driven by the world market itself.

Sure. Fair enough.

Just lastly on HALS, how has been the geographic mix now? You did mention the higher-end products are seeing some pick-up, which is driving the EBITDA breakeven as well.

How should we see That is

70% is domestic currently, Ankur. 70% is domestic, 30% is international.

You will start seeing as we move in quarter four and then subsequently in '27, this mix will start changing, and we expect the exports to quickly start ramping up.

We were waiting for some product approvals to come in from Europe and other countries, Yeah,

we have got some of these approvals, and in fact, in month of January also you will start seeing a lot of shipments happening in the United States. You will start seeing more action in the export markets.

Okay. That's it from my side.

Thank you, and all the best.

Thank you so much, Ankur.

Hi, sir. Thanks a lot for the opportunity.

Sir, first question on MEHQ. You did explain quite well as to how MEHQ prices have come off.

Sir, the entire letdown in HQ prices would also be a function of phenol prices coming off. Would it be right to assume that with phenol maybe pricing cycle going higher, HQ prices will also eventually be on the higher side and we will have the MEHQ prices also going upwards?

Is this a very transient situation? A slight extension to the same question, like you mentioned before, HQ also is used as a polymerization inhibitor.

Is there a downtrading that is happening from MEHQ to HQ, which might have added into this volume loss?

No. [laughter] Okay.

There are a couple of questions you've asked. Let me start by the last one.

See, these processes of interchangeability of performance additives, I'm sure people would have done this in the past, but these are now set rules of the game. I don't think those shift has happened that people have replaced MEHQ to HQ.

That has not happened, number one. Number two, yes, the phenol prices has come off, but I have seen this phenol prices couple of time in my 20-year of working career.

The prices of HQ and MEHQ which I am seeing today are the prices they are below 20-year low prices. What I'm trying to mention is just raw material play is not playing out.

There is also competition, and lower prices of hydroquinone is also pushing lowering prices of MEHQ, and hence we have to lower the prices to keep our volume up in these markets.

All right. Got it.

That's why the fluidity in the situation. I get your point.

Sir, secondly on the hydroquinone catechol plant that we have had, and I believe we did have plans to have better yields of HQ and catechol compared to the competitors. Where would we be in that learning curve, or have we already achieved that yield that we had expected earlier?

I can say that probably we are better than the competition, but we are still a little away from where we had expected to be. Probably all the endeavors, we are still trying to figure out how to reach at that point which we had anticipated.

Actually, we are in midpoint between the competition and the perfect scenario. We are actually in a midpoint, and probably in the next couple of months, we should reach the better yield process.

Sure. Understandably.

Sir, the same question on HQ and catechol. On a overall margin basis, would we be at par to what we're doing in terms of EBITDA margin or

[unclear]?

Yeah. No.

No. That's fine.

No, that EBITDA margins will not be at those extent. They'll be lower.

I think they'll be better than HALS, lower than the parent business. Again, they'll be midpoint.

With these current prices of hydroquinone which we are currently seeing, and because they are declined quite a bit, I think it is again a very fluid condition to mention really on the EBITDA front. Probably another quarter or so to understand where it all stabilizes, how our plants also stabilizes, and I think we will have some better picture.

Sure, sir. One last on HALS.

I believe in the previous quarter a few global majors had taken a price hike in HALS. Is the overall global situation in HALS improving by that price action that they had taken?

Anything that would like to comment on how margins and prices can be in HALS, let's say, 1 year down the line?

Those announcements were made, yes. We have also seen those public announcements, but they have not really translated into reality.

We have to just keep a wait-and-watch scenario. They have not been implemented by the competition yet.

Understood. The situation broadly is status quo on the total supply-demand dynamics of HALS, let's say.

Yes. We have to keep working and keep improving our wallet share, and that is what we are doing.

Despite of those low prices, I think the improvement has completely happened because of our improvement in our process efficiency and, of course, because these higher-grade HALS have also started picking up. I think this will keep improving over the next few quarters.

Understood. Sir, would it be fair to assume that our cost competitiveness in HALS will be better than our peers globally, or we are still in that learning curve to improve our yields or maybe cost to that extent?

See, it is very difficult to understand the competitive processes of the other competition and what are their yields and norms. What I believe is we are still not at the most optimum situation because, I think, we are still improving.

Like, if you can see between Q2 and Q3, also there is an improvement in the process efficiencies, and I believe there is still more scope for us. I think that is what makes a little difference that because these products are all created in-house, we have an ability to improve the process further, and the endeavor is to further improve this so that it'll start meaningfully impacting our EBITDA levels.

Got your point, sir. Thanks a lot for answering all the questions, and wish you all the best in these tough times.

Thanks a lot.

Thank you so much, Archit.

Yes. Sir.

Thank you so much for taking my question again. Sir, you explained very much detail about the HQ prices and how those prices are going down.

Now I understand that they're at all-time low. Just wanted your take on, sir, there's a lot of talk about this China anti-involution drive going on where they'll basically focus on getting back to market dynamics.

Do you expect, by any chance, this drive to basically at least gradually there'll be some uptick in those HQ prices and it'll help you gain pricing advantage?

See, I have also been reading a lot of articles, but I think it's better to see in reality than to make assumptions because what is said and what really happens is absolutely two different scenarios. All our costings and all our pricing currently we are based at the current market situation rather than speculating of any price increase from the Chinese competition.

Sure, sir. Okay.

Sir, just the next question. I understand both these 1.5 billion capexes which they have been a little bit delayed.

I understand tariff thing and you have explained that the situation is fluid. Now I just wanted to understand, sir, the Performance Chemical 1 at least must be ready.

Are we expecting it to generate revenue? By when do we expect in '27 for it to generate any revenue?

How much?

The plant started. Currently, we are using because there are teething issues, the product is slightly off-spec, but we are currently consuming all the products in-house.

Where I was importing, say, probably around 70-80 tons of hydroquinone per month, you would have seen that those imports have stopped completely. Same is the case with catechol, which we were importing to make our own veratrole.

These imports have stopped completely. All these current products are being serviced by our own subsidiary to the parent company.

That is point one. Point two is you'll start seeing sales starting in the month of February and, of course, gradually increasing in March.

Of course, we expect decent number coming in FY27.

Okay. Performance Chemical 2, sir, you're expect revenue only in the last quarter.

That's been a little bit delayed from that perspective, right?

Yes. I think we had anticipated that we will start the production in March, but now I feel, with the current scenario, we'll start by May.

There has been a 2-month, a 60-day delay, probably another 15-odd days for water trials and commissioning. There has been a quarter delay.

You're right.

Right. Sure, sir.

Thanks a lot for taking my questions. Thank you.

Thank you.

Hi, sir. Can you hear me?

We can hear you, Manish.

Hello? Yes, hi, sir.

Sir, I am a retail investor. I have I have written a mail to you as well.

Sir, what I understand from the lay man term as a lay man term that we have some loss from China because of some customers and we have some loss from US, right? That's the reason we have because of the tariff.

We are losing revenues. On on top of it, because of the Chinese competition, we are losing revenues, right?

We are hit from all the ends. Now, what do you what message do you give to a retail investor who have been invested in you since long?

When can we see the margin that we used to do around revenue growth that we had around 21 to 23 to come back?

Manish ji, thank you for your question. Of course, the endeavor for us is always to keep making more profits.

Alongside, the endeavor is also to regain our market share in the segments because it has taken us 20 long years to build these markets to retain these customers. The macroeconomics is something which is very difficult and which is beyond our control.

A tariff of 55% in United States was never anticipated. The overcapacities in China was never anticipated.

All this has led to margin reduction. However, the endeavor is to come up with new products, the endeavor is to de-risk from couple of products to more products, the endeavor is to keep performing and doing R&D and to get more and more products online so that the revenues build up keep happening.

The endeavor is to not lose a customer to a competition. These are some things which I as a promoter have to do to make sure that it's not a quarter business, but that we run for couple of years.

We have to look for a 5-year strategy in the company. With all this, yes, there has been a hit, but we are there.

We are healthy in terms of cash flow, company's still sitting on 500 450 crores of cash, the projects which we had mentioned have all happened within probably a less than a quarter delay, but all the capexes have happened at the project cost which we had anticipated despite of all these volatile times. We are trying our best.

I can only say that. Even our endeavor is to reach those profitability, but with the macroeconomics in hand, some things which we cannot control, we cannot control.

Right. Agree.

Sir, I have read about you a lot. I'm a great fan of yours, how you build up this company along with Boob family.

I respect that. I'm just coming from a retail point of view.

Many retailers, I have seen many friends of mine, everyone is scared what will happen next. Okay.

That's the reason I thought of asking you. Second, one more question that I want to ask you is, the trade deal that we had, right, as approved with Europe, that might help us, right, sir?

That might help us to negate some traffic or that might help us if you compare to China, China has some tariff if you see. China has some tariff in EU.

We not have that tariff. Do you see that playing around, and why Yes.

Oh, sorry, sir.

Yes, I agree with you. That would play.

Of course, I think this will only start in '27. I think it's still a lot of paperwork has to be done between the two countries.

You will not see anything on immediate basis. This will, I think, only start in '27.

The trade impact would have a 5.5% to 12% is the tariffs which we pay versus and also the Chinese. If those will come out, then, of course, it'll help Indian chemical industry for sure versus the Chinese, of course.

Yes, we have one, what do you say, positive hope for the FTA. Sir, why don't we capture the market of Australia?

Have you any plan to do that or Canada, by any chance? Because considering the condition going on, Canada is anti-US.

Sorry, sir.

No. Point is, sir, Australia or Canada, they don't have such acrylic acid plants.

Even for that matter, even India has only one acrylic acid plant. Plus all these blends of pet food industries where we supply, they are users, but they are not producers.

Hence, Australia is not a market for our products at the moment.

Sir. Thank you, sir.

All the best. We hope to grow with Clean Science, sir.

Thank you, sir.

Thank you so much, Manish ji.

Thank you all for spending time with us on Saturday. I understand it has not been a greatest quarter for us.

I think we've had a glitch in our quarter three also as well as in quarter two. I can only assure that we are working towards improving the margins, improving the revenues, bringing new products online as quickly as possible, trying to maintain our capex cycles, and I think we are trying to do as a team whatever best can be done.

I think that's all from our side. Thank you so much.