Thank you, Swapnali. Good evening, everyone, and thank you for joining us on Rossari Biotech Limited's Q1 FY2027 earnings conference call.

We have with us Mr. Edward Menezes, Promoter and Executive Chairman; Mr.

Sunil Chari, Promoter and Managing Director; and Mr. Ketan Sablok, Group Chief Financial Officer of the company.

We will begin the call with opening remarks from the management, following which we will have the forum open for a question-and-answer session. Before we start, I would like to point out that some statements made in today's call may be forward-looking in nature, and a disclaimer to this effect has been included in the earnings presentation shared with you all earlier.

I would now like to invite Mr. Edward Menezes to make his opening remarks.

Over to you, sir.

Sorry. Thank you, Mitesh.

Good evening, everyone, and thank you for joining us on our earnings conference call. It is a pleasure to have you with us today as we discuss our operational and financial performance for the first quarter of FY2027.

We commenced FY2027 on a strong note, delivering our highest ever quarterly revenue and EBITDA, with consolidated revenue growing 28% year-on-year. The performance was supported by healthy momentum in the domestic business and the continued expansion of our international presence.

Despite a dynamic operating environment, our diversified portfolio, extensive market research, and disciplined execution enabled us to deliver growth across our business segments. Innovation remains central to our long-term strategy.

The new R&D center commissioned in the previous quarter is progressively ramping up, bringing our research, product development, and application capabilities together on an integrated platform. The facility is strengthening collaboration across teams, accelerating new product development, and supporting the faster scale-up and commercialization of differentiated technologies across end-user industries.

Within our core HPPC segment, we continue to broaden our presence across higher-value applications and strengthen our portfolio of specialty solutions. Our focus remains on expanding in areas such as personal care, pharmaceutical applications, agrochemicals, and performance chemicals, while leveraging our formulation expertise, application capabilities, and expanded manufacturing platform.

The improving utilization of our ethoxylation capacities, together with a growing pipeline of new products, provides a strong foundation to scale this business further. During the quarter, we also strengthened our textile specialty chemicals portfolio through the launch of a dedicated fiber chemicals division, expanding our capabilities across the fiber-to-fiber value chain.

Supported by our application-driven R&D platform, deep formulation expertise, and manufacturing capabilities, the division enhances our ability to offer integrated, value-added solutions and expand our addressable market within the textile industry. We remain encouraged by the long-term opportunity in the agrochemical sector, supported by increasing demand for advanced formulations, sustainable agricultural solutions, and productivity-enhancing inputs.

With established capabilities across agro surfactants, emulsifiers, and adjuvants, we are well positioned to address evolving industry requirements through innovation-led specialty chemicals solutions. As we progress through FY2027, our priorities remain focused on fully leveraging the capabilities across the past few years, accelerating new product development, and enhancing operational efficiency.

Supported by a healthy balance sheet, an integrated manufacturing platform, and an expanding innovation pipeline, we remain confident of delivering sustainable and profitable growth while creating long-term value for all our stakeholders. With this, I now invite Mr.

Sunil Chari to share additional perspectives on our business performance and strategic priorities. Over to you, Chari.

Thank you, Edward-ji, and a warm namaste to everyone. As we approach the sixth anniversary of our listing, it is encouraging to reflect on Rossari's journey from an annual revenue base of around ₹600 crore to a business that has reached close to ₹700 crore in this quarter.

The scale-up has been achieved through one of the most challenging periods in the company history, encompassing the COVID-19 pandemic, unprecedented supply chain disruptions, raw material volatility, and geopolitical uncertainty. We believe we have navigated these challenges well, even as we continue to invest in capabilities, expand our portfolio, and strengthen the overall business platform.

While the business has achieved significant scale, margins remain below their normalized potential. We have already initiated several measures to address this, including the monetization of our non-core assets, rationalization of lower-margin businesses, improvement in product mix, and tighter cost discipline.

As these initiatives progress over the next one to two years, alongside optimal utilization across our expanded capacities, we expect a meaningful strengthening in EBITDA performance. This quarter witnessed strong growth across each of our core business segments, with HPPC, TSC, and AHN business all growing by around 28% YoY.

Notably, the HPPC business crossed ₹550 crore quarterly revenue milestone, reflecting the increasing scale and depth of our presence across key applications and end-user industries. Our international business maintained its positive momentum, with exports growing 21% year-on-year during the quarter.

The performance was supported by increasing wallet share with strategic partners, the addition of new customers, and wider acceptance of our specialty solutions across key overseas markets. We remain focused on deepening our presence in existing geographies, while selectively expanding into markets that offer attractive long-term potential.

During the quarter, we further strengthened our presence in Southeast Asia through a greenfield blending plant in Thailand. This facility will enhance our ability to offer customized formulations, respond faster to local market requirements, and improve supply chain efficiency.

It also provides a platform to progressively expand our product offerings across the region. We are also making progress on our proposed initiative in Saudi Arabia.

The opportunity is significant, supported by access to globally competitive raw materials and a well-developed petrochemical ecosystem. This remains an important strategic step towards strengthening our long-term strategic footprint, enhancing supply-side competitiveness, and creating a scalable platform to serve regional and global markets.

Despite the prevailing geopolitical uncertainty, our conviction in the long-term potential of this initiative remains intact. Alongside these initiatives, utilizations across the capabilities created over the past few years have improved steadily and supported our performance during the quarter.

Our priority now is to drive optimal utilization, strengthen the product portfolio, and enhance operational efficiencies. Together with a robust R&D platform and a healthy pipeline of new products and applications, these efforts will enable us to scale our core B2B operations, improve returns from the existing asset base, and reinforce our competitive positioning.

On the domestic front, the institutional and consumer business continue to operate in a relatively subdued environment and weighed on overall profitability during the quarter. As part of our broader strategy to sharpen our focus on the core B2B business, we are evaluating the rationalization of select non-core businesses and assets.

These actions are aimed at simplifying the portfolio, redeploy capital and management bandwidth towards higher-return opportunities, and improving the overall quality of earnings. Looking ahead, we remain confident about the opportunities before us.

The scale achieved across our core businesses, improving utilization of our expanded capacities, a growing pipeline of new products and applications, and continued progress across international markets provide a strong foundation for the next phase of growth. Our priorities remain centered on disciplined execution, margin improvement, and generating stronger returns for the business platform we have built.

Thank you once again for your continued support. I now invite Ketan to take you through the financial highlights.

Thank you, Mr. Chari, and good evening, everyone.

Let me take you through the financial highlights for the quarter ended June 30th, 2026. In Q1 FY2027, revenue from operations stood at ₹697.2 crore, registering a growth of 28% YoY.

This marked our highest ever quarterly revenue, supported by healthy growth across the HPPC, textile specialty chemicals, and the animal health businesses. EBITDA for the quarter stood at ₹80.6 crore, representing a growth of 18.7% YoY and making our highest ever quarterly EBITDA.

The EBITDA margin stood at 11.6% compared to 12.5% in the corresponding quarter last year. The margin profile continued to reflect the impact of the institutional and consumer business, along with the prevailing product mix and cost environment.

Excluding the institutional and consumer businesses, our core B2B operations delivered EBITDA of ₹85 crore, registering a growth of 13% YoY, with an EBITDA margin of approximately 14%. This reflected the underlying strength and resilience of our core portfolio.

PAT for the quarter stood at ₹35.1 crore, representing a growth of 4.5% YoY. In our institutional and B2C businesses, we are taking calibrated steps to optimize costs and to improve the operational efficiency.

While growth in these verticals remained flat, year-on-year losses have moderated, driven by our focus on improving product mix, enhancing the operational efficiency, and maintaining cost discipline. As discussed earlier, we are taking steps to simplify the business portfolio and sharpen our focus on the core B2B operations.

During the quarter, we completed the sale of our Andheri office as part of our ongoing monetization of non-core and underutilized assets. We will continue to evaluate opportunities to monetize other such assets in a calibrated manner, with the objective of releasing capital, improving balance sheet efficiency, and directing resources towards higher-return areas.

Utilization levels across our manufacturing capacities improved during the quarter, contributing to the growth in revenue and EBITDA. Our focus now is on driving these assets towards optimal utilization, improving the product mix, and generating stronger operating leverage from the investments made in the past few years.

Our balance sheet remains healthy, supporting strong liquidity and a comfortable leverage. We continue to focus on improving working capital efficiency, strengthening our cash generation, and maintaining discipline in capital allocation.

These measures, together with the ongoing portfolio rationalization initiatives, are expected to support progressive improvement in profitability and return ratios. As we progress through FY2027, our priorities remain focused on optimizing asset utilization, enhancing operational efficiency, strengthening the cash flows, and delivering sustainable and profitable growth.

Thank you, everyone, and I would now request the moderator to open the floor for questions.

Good evening, sir. Thank you for the opportunity.

My first question was regarding the EBITDA margin, as from the last four, five quarters no major growth has been there in the margin. In the last quarter, it has been 11.6%.

What do you expect specifically which segment or in which way it will be growing margin?

Divyansh, if you see the EBITDA margins, we are currently at about 11.6%, close to what we did in the last quarter and slightly lower than our last year's margins. I think now as these capacity utilizations start improving over the next few quarters and years, I think we should be seeing a relative improvement in these margins.

Also, as we talked in the opening remarks, we are working towards optimizing our product portfolio and the product mix. A lot of the low-margin businesses, we are trying to slowly exit out of them.

Also the new areas that we are looking at, which include segments like pharma and aroma and such other areas, will go a long way in improving these EBITDA margins. I think at least for the next couple of quarters, we should just wait and see how the margins improve, because now we also have a lot of pressure in terms of the pricing, the raw material volatility.

All these aspects have to be looked at. On a longer-term basis, I've given you an idea how we are looking at improving the capacity utilization and the margins.

Okay. Another question was like the products which were innovated in the last two to three years, how they are contributing in the current quarter, in the current last few quarters in their revenue?

Sorry, I couldn't understand.

I am saying that the products which are innovated in the last two to three years, how much they are contributing in total revenue?

Some of the products that we introduced in the last year like NNMO and spray-cooled powders, yeah, some of them have started contributing in this quarter. Also, some of them also had sales in Q4 of last year.

I think as we had said that some of these investments that we've done, it will take us close to about two to three years for the capacities to start getting fully utilized and the new products to come on stream.

Starting the biosurfactants, the NNMO, the spray-cooled powders, the fiber finishes that we've introduced, as well as the vitamin premix plant which has become operational. All these have started contributing very handsomely to the top line.

Sir. Thank you.

That's it from my side.

Hello. Am I audible, sir?

Yes, thank you. Thank you so much for the opportunity.

A couple of questions. Firstly, sir, on the revenue growth part, I think last call you'd guided for around 15% sort of revenue growth in FY2027, but in Q1 itself I think you've registered a growth of around 28%.

Given the fact that now we have the capacities and now the ramp-up of utilization will begin, how should one look at the overall growth for FY2027, sir? Hello?

Hello, Disha. Can you hear me now?

Yeah.

Yeah.

Yeah. Miss Disha, yeah, good afternoon.

This is Sunil Chari. Regarding, the ramp-up, if you see our sales has grown consistently higher, and this is also due to the new capacity and new products which have come in in the expansion.

A lot of capacities have just, become operational in the last quarter end, and we should see a ramp-up. Given also during the the volatility and uncertainty in the market, it is very difficult to predict anything today.

Nobody can predict what can happen in the war, what is happening to the geopolitical. Now, the freight prices have gone up, we had contracts which were already signed, and the freight prices went up, and now everything looked okay, and then again the war started and the freight prices again have shot up now.

We've taken some, some with the new freight pricing which came in last month, we had taken the the new orders at that price considering that freight, and that has gone up. I think on a whole, we are looking, at a at a good growth this year.

It is very difficult to hazard a guess on how much we can do, but we are very confident and very very bullish on our prospects. We are also seeding in in seeding in, new new territory, for example, the the Thailand plant, it took took away a lot of time, energy, and money, to start last year in the last quarter.

Then now there's also a lot of pre-operative expenses coming in from our Saudi Arabian venture, which should give us take take, a couple of years to mature. We continue to invest for the future and continue to look at areas to rationalize our return on capital employed and return on equity, yeah.

Right. Fair enough, sir.

Sir, also on our margins, obviously we're seeing a lot of raw material volatility. Are we facing any challenges to pass that on?

No, to pass on that raw material pricing is no worry at all. Otherwise, you see where the crude has gone from where and where our raw materials have gone.

We have been able to pass on. What happens is up and down creates a lot of uncertainty in the mind of buyers, and also the freight become one major component because of the insurance cost and of the vessels and all, and the unavailability of vessels.

This is costing us some degree of margin loss for us.

Sir, now given the recalibration of this B2C portfolio, also we're exiting some low margin, from here on I think you should see margins improving. I think below this, we should not see margins...

Once it happens, you will see. Once you see the exit of some businesses which we are working very hard, you will definitely see the margin improvement.

Sir, this 11.6% that we've done in the first quarter, that should now be the base, right? We don't see margins going below this level.

Will that be a fair assumption?

We are expecting the same thing also. Has Ketan-ji and Edward-ji joined back?

Yes, sorry.

Good. Now over to you, Ketan-ji and Edward-ji.

I think these level of margins you can expect to be the base

level. Fair enough, sir.

Just the next thing on the Thailand plant. What has been the contribution in the first quarter, what utilization are we currently at, and what sort of revenue can we see at peak utilization?

The Thailand plant has just gone on stream end of last quarter, slowly it's getting ramped up. It's a small formulation unit, the basic aim for this plant was to get us closer to our customers in Southeast Asia.

We are slowly ramping up this facility, and the first quarter revenues from this plant were about ₹2 to 3 crore. I think this will slowly start ramping up in the subsequent quarters.

Currently, it's only working on some of the textile products, but maybe a few quarters down the line, we also are aiming at doing some AHN products and some other HPPC molecules also on a longer-term basis.

The investment in this plant is just ₹10, 15 crore, it's not a very big plant or we cannot expect too much out of that plant. It's not big.

Okay. Sir, what's with the Saudi Arabia greenfield facility we're planning?

Could you just elaborate a bit more on what sort of capex are we looking at, when will it come online, what product and segments are we looking at?

This is just still we are doing a survey and trying to formalize some raw material feedstock allocations, some land allocations. This is still work in progress, and nothing has been finalized.

As soon as we finalize something, we'll announce to all our investors and to public at large.

Fair. Sir, just on your pharma business, how do we expect this scale-up to be, what sort of contribution are we looking at from this business for this year on and the next year going ahead?

Because this business has higher margins, right? The increasing contribution will help us improve our margins as well.

Ketan sir,

yeah. This business, the pharma business, we've started a few products in this quarter,

but

it's slowly going to start ramping up. As in pharma, in terms of the compliances, it's a little long drawn process.

We have started working on that. We just have a separate team who is working on all the compliance activities both at the plant and at the customer end.

Our target is by the end of Q2 or Q3, we should have most of the compliances done, and then we should see a ramp-up of the pharma business.

Second half will be a...

It could be a revenue potential of close to ₹30 to 50 crore.

For this year?

Yeah.

Okay. Sir, just in terms of our margins going ahead, in terms of the steady-state margin that we're looking at once we recalibrate the entire B2C business and we monetize the non-core assets and once our utilization is stabilized, what sort of steady-state EBITDA margins can we see going ahead, say two, three years down the line?

If you see today, shorn of that business also, the base business margins are at anything between 14% to 15% depending on the year and the quarter and the product mix.

Our

aim is that once we recalibrate the whole business mix, the product mix, we should have steady-state EBITDA margins at around 15% at least once these steps that we are taking materialize.

In two years down, can we see this margin level?

Yes, that's the plan.

Just the last question, what sort of export revenue do we see for this year and any sort of percentage of export revenue we target? No,

we don't target any specific number, but if you see, this quarter we've done about 160 odd crores, about 23%, 24% of our total revenue comes out of the export basket. This percentage has remained the same, while the absolute number has gone up.

Compared to the Q1 of last year, the export growth is almost 20%, 21%. Our target is to keep growing the export business while the domestic business is also growing, generally the percentage remains around between 23%, 24%, 25%.

Fair enough. Thank you so much, sir.

I'll get back in the queue. Wishing you all the best.

Thank you.

Hello. Am I audible, sir?

Yes, yes. Yes, audible.

Sir.

Thank you, sir. Sir, I might sound a bit repetitive, because I joined a bit late.

We were looking to exit the B2C business, and I would like to know what are the investments we have so far in the B2C business and what kind of debt is that business carrying?

See, the investment in the B2C business is our institutional and the consumer business and the private label business. Now there's no separate investment.

These are all core assets, multiple assets, especially in our Silvassa plant which cater to various other businesses also. In terms of debt, if you ask me, our total debt in this business would be close to about 50 odd crores.

Okay. I'm trying to get into an understanding whether if we exit the business, where do we land up as an EBITDA margin and what kind of debt is relieved out of it?

That's my question to figure out.

In terms of EBITDA margins, if you see, it will release at least 2% to 3% EBITDA. Shorn of this business, we are close to about 14%, in some years we're even 15% of the EBITDA margins.

That's the kind of margin improvement that will happen.

Yeah. Just to be clear, we are looking to exit both the B2C as well as the institutional business, right?

No, no,

no. Out of that, we will exit the B2C business which is now currently part of the entire portfolio, but the institutional cleaning products, that business we will continue to have.

That's the more profitable business within our portfolio, because that's the core cleaning chemical business for us. That will remain, while the consumer part of that business will move out.

Even the institutional business is taking a lot of debt for us, unlike the core business.

Because it has that consumer business tagged along with it.

Okay. Thank you so much.

Thank you. Sorry, some of the questions may be repetitive, I couldn't join earlier.

A couple of questions from my side. One, for this quarter, what is the pricing growth and what is the volume growth, because there's a lot of volatility in the pricing?

Just wanted to understand how much of the growth is coming from the volume in this quarter to understand what is the growth in underlying, that's number one. Number two, now that EO availability is getting struggled, we have added a lot of capacity, what are we trying to do to see that we keep growing consistently in a scenario where assuming that the EO availability will remain challenged for some time, what are the growth levers do we have for it?

To answer the growth levers, yeah, yeah, Ketan-ji, continue.

Yeah. On the price and the volume growth that you asked, the YoY growth in terms of volume versus price, the volume has grown by about 10%, and the rest of the growth has mostly come out of the higher pricing.

Got it, got it. What are the measures we are taking to drive the growth in the absence of EO availability?

Yes, Sanjesh-ji, I will answer this question. There's a lot of new products which we have now implemented, which includes the trace minerals, the vitamin premixes, the enzyme premixes in animal nutrition, also a lot of esters.

NNMO is now gaining traction, and there are also products which are NMM and NFM which have gained traction. Esters especially, which is non-EO, has gained a lot of volumes.

If you see agro, in spite of the lean agro season, agro has part ethoxylate, but there is also a lot of non-ethoxylate raw materials in an agro formulation. That has even grown over last year.

There has been healthy growth in spite of the markets being very slow. This is there.

The pharma, which is a higher value, I think we did more than ₹50 crore last year, and this year we should do ₹70, 75 crore in pharma this year. These are all driving the new products.

We are also looking at when we react EO with say a lauryl alcohol ethoxylate. When a lauryl alcohol ethoxylate is two mole lauryl alcohol ethoxylate, then the EO component is less and the non-EO is more.

What we try to do is we try to find formulations where there is less EO and higher non-EO component. That is how we've been able to drive the growth and use our capacities.

That's clear,

that's clear. What kind of growth can this bring, because EO was an established product, there was decent amount of demand for EO in India.

Now that we are moving out of EO and trying to create a new volume there, what kind of growth can we anticipate there?

I think we are expecting more EO by the end of this year, hopefully December ke pehle aa jayega. We should see a good amount of growth, because a lot of capacities which you installed, even in areas where there is no EO requirement, that will ramp up in the current financial year.

We should see a healthy growth, Sanjesh-ji, this year. Got it,

got it. One question on the margin, ex of the retail, if I look at the institutional margin, last year we did what, 16% margin, we are now at 13.6%, 15.8% to 13.6%.

Now, is it because there is a delay in the price increase, or it is just because we are doing EBITDA per kg same, how should we see profitability in a scenario of rising price increase for us?

To add here, the EBITDA per kilo would be a better area, but also we have had a lot of volatility in buying our raw materials, and also in the freight calculations. The freight went down in the last few weeks, and again it has just shot up.

In the orders which we are executing now, which we took in the last four weeks, the freight has gone up now substantially. Also the non-operative cost where we are going into newer geographies, we are adding a lot of efforts, for example, also in the Saudi Arabian part where these are costs which are seeding costs which are pulling down the margins.

We should see a gradual ramp-up. Our focus is as a company, we should be 15% plus EBITDA margins.

At the consolidated level or for a core level?

Consolidated. Now we will only talk about consolidated levels, sir.

Only at the consolidated level. Very clear.

Sanjesh, just to add to what Mr. Chari said, that certain raw material prices in this quarter were really shot up.

For us also in terms of planning out our RM purchases was a big challenge. At least I can say in one raw material greatly impacted in this quarter in terms of the pricing.

In anticipation that the prices will further go up, we did slightly larger block of purchase, but then the market changed the other way. That also impacted in this quarter.

I think that was a one-off case that has happened, and we are now back to the old pricing of that raw material. Then that's the business dynamics which you will see happening, especially in the current scenario, with the global geopolitics is happening.

That has also impacted in this quarter.

One follow-up question here. This quarter around, when we were speaking to a lot of chemical companies, the chemical companies which were focused on domestic business did quite well because everybody was looking for a raw material security, there was an inventory gain, the spreads went out on a PPB basis.

If I look at our numbers, that trend really is not showing up. What have we missed, because other companies which are heavily dependent on domestic-focused business are doing really well in Q1?

Sanjesh-ji, to add here, more where there is single raw material kind of single product, like more of the companies who make, if I add even soda ash or if I add acetic acid, the companies like this who make single molecule, they made good amount of money. With specialty chemicals, a lot of raw materials for us had the raw material brunt which we took.

That is something where, for example, in this product which Ketan-ji is talking about is phenol. We only took a hit in the last quarter of ₹5 crore only in phenol, because shipments from China were promised, we contracted at a price, the shipments got delayed somewhere, and it came nearly one month later.

Then in the meanwhile, we had to buy from the market to supply to our customers, and those were at very high prices. This caused a lot of issues in the last quarter.

I think hopefully we are over that now.

Got it, got it. How should we see, now that EO availability there is an increasing visibility, what is the growth we are looking for FY2027 and '28 from an EBITDA and PAT perspective?

Ketan sir?

Yeah. This year, Sanjesh, I will still stick to a 15% kind of growth, something which we have spoken of even in our last call.

Even though this quarter has been a stronger quarter for us, but given the way things are happening globally, it's becoming a little bit difficult for us to now even predict our numbers on a quarterly basis. On an annualized basis, I think we would stick to our earlier estimates that we shared of that 15% kind of top-line growth.

Should '28 be better with the increased availability of EO?

Yes. Yes, '28 should be better, hoping that the availability of EO will come on stream by the end of this calendar year, and then we'll have a full year next year in FY2028 with additional EO.

Got it. One last on the capital deployment.

What is the capex we are looking for the India entity, and have we started spending anything on the expansion in the KSA, or that's on the hold given the West Asia crisis?

No. In India, currently we slowed down on all the capex spends.

We are not doing very calibrated spend on new capex. Only certain new products or new molecules that are in R&D, we will go ahead with that, which includes some of these pharma molecules and aroma chemicals, etc.

Otherwise, no large spend are intend this year, and the next year would be to ensure the spend that we've done, we start utilizing them well in capacity. In the KSA front, I think very initial kind of spends have happened.

These are more in operational and exploratory, pre-operational kind of expenses. Our intent for KSA still remains the same, even though given the current situation.

We are pretty much bullish on our project there. We are talking to a lot of partners in terms of suppliers, project consultants.

A lot of these discussions are happening, and also some deep discussions are happening with the ministry there at the KSA, and they are very keen that we partner with them and with the raw material suppliers and set up the downstream products ASAP. Our plan for KSA remains the same.

Got it, got it. No, that's very useful, Chari.

Thank you, Ketan, and I wish you best of luck for the coming quarters.

Thank you.

Thanks for the opportunity, and congrats on good operating performance. Sir, first question again, apologies to dwell on the KSA front.

Once we finalize the investment, from that particular point in time in terms of announcing the investment and commercialization of the project, starting production, what could be the gestation period that we are looking at? Thank you.

1 and 1/2 years. Rohit, namaste, Chari bol raha hoon.

1 and 1/2 years should be the one for us to start the first kilo of production once we do the announcement.

Right. Here, initially, we'll be targeting only ethoxylates, or will there be any other chemistries that also we are simultaneously looking at?

No, both EO and non-EO products, both. Wherever we find, when we start the production, benefit in having higher margins or higher realizations, we'll go.

It's a project which is a mix of EO and non-EO. Right,

right, got that. Sir, second question in terms of the financials.

One in terms of the interest cost has certainly increased and has been increasing over last few quarters. What is the kind of debt that we are currently having and average cost of that debt, given that during this quarter we've spent almost ₹11 crore on interest expenses?

Thank you.

Ketan sir? Yeah.

Rohit, on the debt profile, this quarter our net debt is about ₹248 crore. This was in March, this was about ₹280 crore, we come down slightly on the net debt position.

As regards interest, the interest cost is higher in this quarter because the capexes have got capitalized, and some of the interest that was there in the earlier year, last year and part of the year before that, was capitalized. Now since the capexes have come on stream, the project has started delivering, the interest cost is now coming in the P&L.

That's also why the interest cost is higher. I think now going forward, the finance cost should be at close to this ₹9 to 10 crore kind of a run rate.

Sure, sir. Sir, the office space that we have sold, where have we recognized, and how much has been the money that we have received from the same?

These have been recognized in other income. Last quarter, Q4, we sold off our Kanjurmarg office.

It was close to ₹20, 24 crore, I think around that number. This quarter, we have sold our Andheri office, there we sold it for about ₹10.5 crore.

Our other income for this quarter has been ₹3.2 crore,

is there any... Because here only the profit element comes, yeah.

Right, profit, okay.

Because this office, the current office was in Unitop's name, and when we'd done the consolidation, we had revalued all the assets. This was revalued five years back at that current market price, hence you see a lower profit on that.

Correct. Just one last clarification on the B2B business.

I think last two to three years, we have invested materially in terms of the marketing, distribution network. Currently, would those investments be continuing, or we have stopped those investments and will just try to consolidate, earn more revenues from the investments that have been made?

Thank you.

Here to answer this question, Rohit, we'll have to continue to be present in the market. For example, exhibitions, customer visits, customer interactions, this will definitely have to be continued, because we are looking at scaling up Rossari to double from here, more than double from here in four years.

That will continue to happen. We will not stop seeding just to show a little higher EBITDA margin.

Perfect. Thanks a lot for answering all the questions, and all the best.

Hope to hear soon from the KSA announcement. Thank you.

Thank you.

Thank you.

Thank you.

Hello. Hi.

Am I audible?

Yes. Hi.

Thanks for the opportunity. I just wanted to know, we'll be having some visibility over the EO supply, right?

Will there be some margin improvement in terms of, let's say, gross margins whenever we get the supply? That's my first question.

Margin improvement will depend on the EO pricing at that time, but margin improvement also will depend on the product mix which we have at that time. Definitely we will look at growing the gross margin profile, but the EO pricing is controlled and based on the world EO pricing, and in India we have a sole supplier.

We do not have the opportunity to negotiate on our EO price which we get, but the supplier is a very reputed corporate, and they're very fair in pricing to make us competitive globally.

Got it, got it. No, I was asking this because most of our EO plants are being used for non-EO purposes as well, right?

Will there be some margin improvement based on some product mix or something like that?

If you see, our EO capacity now is practically 100% utilized, except for a small addition in the batch reactors. There's more in the non-batch, which is continuous ethoxylation, which is the MDA plant, where we had a major investment, and that ramping up should happen in the next 12 months.

We should definitely see a higher margins there.

Got it. Okay.

Thank you.

Thank you. I thank all of you for joining our earnings conference call.

I hope we have been able to answer all your questions satisfactorily. Should you need any further clarifications or would like to know more about the company, please feel free to contact our team or CDR India.

Thank you once again for taking the time to join us on this call, and have a good day.