Supreme Petrochem Limited has informed the Exchange about Transcript of Earnings Conference Call of Supreme Petrochem Limited under Regulation 30 of SEBI (LODR) Regulations, 2015 held on 23/01/2024.
SUPREME PETROCHEM LTD
Regd. Office: Solitaire Corporate Park, Building No. 11, 5th Floor, 167, Guru Hargovindji Marg, Andheri-Ghatkopar Link Road, Chakala, Andheri (East), Mumbai-400 093. INDIA CD : 91-22-6709 1900 Fax - 022 - 40055681 • CIN : L23200MH1989PLC054633 Website: www.supremepetrochem.com • Email: corporate@spl.co.in
Ref: CFAlCS/86/AGM_35/2023-2024
January 25, 2024
SSE Limited Phiroze Jeejeebhoy Towers, 1 st Floor, Dalal Street, Mumbai - 400 001 Script Code - 500405
Dear Sir/Madam,
National Stock Exchange of India Ltd Exchange Plaza, Sandra Kurla Complex Sandra East, Mumbai _ 400 051
Scrip Code - SPLPETRO
Sub: Transcript of Earnings Conference Call of Supreme Petrochem Ltd
('The Company')
Ref: Regulation 30 of Securities and Exchange Board of India (Listing Obligations &
Disclosure Requirements) Regulations, 2015 ('Listing Regulations')
Please refer to our letter dated January 17, 2024 wherein we had informed you that the Company is conducting Virtual Conference Call with Investors/Institutional Investors on January 23,2024.
Please note that the said conference call as scheduled was held at 04:00 PM (1ST) on January 23, 2024. In this regard, pursuant to Regulation 30 of Listing Regulations, please find attached Transcript of the call with the Investors/Institutional Investors.
This is for your information and records.
Thanking you
Yours faithfully,
F~U~:LT~OCH.EM LTD
fD~/l}!Y
COMPANY SECRETARY
Certificate No. INAAACS7249C2F228
Supreme Petrochem Limited
Q3 FY24 Earnings Conference Call
January 23, 2024
Moderator:
Ladies and gentlemen, good day and welcome to Supreme Petrochem Limited Q3 FY24
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 after the presentation concludes. Should you need
assistance during this conference, please signal an operator by pressing "*" then "0" on your
touchtone phone. Please note that this conference is being recorded.
I now hand the conference over to Mr. Anuj Sonpal from Valorem Advisors. Thank you and
over to you, sir.
Anuj Sonpal:
Thank you Lizann. Good evening, everyone and a very warm welcome to you all. My name is
Anuj Sonpal from Valorem Advisors. We represent the Investor Relations of Supreme
Petrochem Limited.
On behalf of the company, I'd like to thank you all for participating in the company's earnings
call for the Third Quarter and Nine Months of Financial Year 2024.
Before we begin, let me mention a short cautionary statement. Some of the statements made
in today's earnings call may be forward-looking in nature. Such forward-looking statements
are subject to risks and uncertainties, which could cause actual results to differ from those
anticipated. Such statements are based on management's beliefs as well as assumptions
made by and information currently available to management. Audiences are cautioned not to
place any undue reliance on these forward-looking statements in making any investment
decisions. The purpose of today's earnings call is purely to educate and bring awareness about
the company's fundamental business and financial quarter under review.
Let me now introduce you to the management participating with us in today's earnings call
and hand it over to them for opening remarks. We have with us Mr. Rakesh Nayyar -
Executive Director and CFO; Mr. Dilip Deole - Chief Executive of Finance and Accounts; Mr. D
N Mishra - Company Secretary.
~~
/.fg u:.~.r$\~~ \ ~"", /!!.J. q . ~ , C'p y.<1 'tl:.ti ' -. i :' -?' -, j 15),,.,..,'- ~'/; ;.";" ...... " ' ,~ 411" I\' [,",>' !
L t\
,,'!
J
1
Without any further delay, I request Mr. Rakesh Nayyar to start with his opening remarks.
Thank you and over to you, sir.
Rakesh Nayyar:
Thank you Anuj. Good evening, everybody. It's a pleasure to welcome you to the earnings
conference call for the third quarter and nine months of the financial year 2024. The
operating income for the quarter was INR1187 crores, which was about 0.6% over the last
year. The operational EBITDA is about Rs.95 crores with a margin at 8%. The total EBITDA with
other income is 110 crores. The net profit after tax was at Rs.68 crores.
On the operational front:
Main raw materials styrene monomer prices were within the range during the quarter. The
company's sales of manufactured products during the quarter grew only marginally at 1.7%.
However, over the nine months period, the quantity sold increased by 12%. During the
quarter our Chennai EPS plant was non-operational for about 15 days due to cyclone, which
caused heavy rains and floods in early December. Cyclone resulted in damage to some items
of the fixed assets and some parts of the raw material, finished goods and stores and spares.
The insurance company has initiated the surveying process and has appointed surveyors and
this is all in progress.
For the nine months year up to December 2023, our revenues stood at Rs.3691 crores, which
are down by 5% over the last year, for the same period. The operating EBITDA was INR292
crores with margin of 7.9%. The total EBITDA with other income is Rs.340 crores, PAT is
INR215 crores. Company continues to remain debt free with an investable surplus of Rs.793
crores at the end of December 2023.
With this, now I open the floor for questions-and-answers session. Thank you.
Moderator:
Thank you. Ladies and gentlemen, we will now begin with the question-and-answer session.
The first question is from the line of Neeraj Jamodia from Annual Research. Please go ahead.
Neeraj Jamodia:
Sir, I have two, three questions to ask. So, first is on the industry volume growth for
polystyrene in Q3, because as we see that our volume growth was just 1.7% on Y-o-Y basis.
So, was it because the user industries within our target segment was not doing well, or was it
because of the imports coming to India, which has impacted our volumes?
Rakesh Nayyar:
During the quarter, the polystyrene market was flat and it is not because of the imports,
imports are marginally down as compared to the last year. This is more because of industries,
who are consuming our materials, the demand from their side was low. From OEMs, the
appliance manufacturers the demand for the current year is down by almost 5% as compared
2
to the previous year. Whereas beginning of the year, the kind of ideas what we got from the
OEM manufacturers that they would grow by almost 8% to 10%. But then right now the
demand from them till December end was less by 5%, compared to last year.
Neeraj Jamodia:
Got it. And sir within the appliance which of the segments were not doing welilike, because
we cater to refrigerators, we cater to AC. So, within this user segment, which of the segment
was impacted the most?
Rakesh Nayyar:
Both the segments are down. The ACs are down and as well as the refrigerators are down.
The washing machine segment was alright, but then again, the growth is not as anticipated.
Neeraj Jamodia:
Got it. And so, is it safe to assume that because our exports would have grown, we were able
to show the volume growth and our domestic volumes predominantly would have suffered in
these nine months?
Rakesh Nayyar:
The nine months period if you see that the domestic volumes have gone up only by around
4%. It is the export volumes which have gone up and that has taken our total volume growth
to 12% during the year.
Neeraj Jamodia:
Got it sir. Sir second question is, if you can just break it down the total sales like this quarter,
we had done something around 1188 crores. So how much was the trading sales out of these
total sales?
Rakesh Nayyar:
We have about 1/4th of our sales as trading sales. And 76% or thereabout is our manufactured
product sales.
Neeraj Jamodia:
Got it. And this would be similar for 02 as well, last quarter, preceding quarter?
Rakesh Nayyar:
At the company level that's it. Around 76% to 77% is manufactured sales and 23% to 24% is
the trading sales.
Neeraj Jamodia:
Got it sir. And sir last question before I join back again. Sir you mentioned in one of your
presentation slides that we have entered into an agreement with Tata Power to supply the
renewable power for our Amdoshi plant which would start operating from 01 of FY25?
Rakesh Nayyar:
Yes.
Neeraj Jamodia:
And if we see our last year balance sheet our power cost was close to 64 crores. So, since this
supply of power commences from them, what sort of cost savings we are anticipated on our
entire volumes, because currently we are at 70% but this 50% I presume would be on the
3
entire capacity of three lakh tonnes of polystyrene. So, what sort of cost savings in power we
are anticipating?
Rakesh Nayyar:
So, what we have said is that, of our total requirement up to 50% of our power consumption
will be based on the renewable power at our Nagothane project, that is Amdoshi plant. Part
of which 12.5 megawatt is what we will be sourcing from through this SPV, and we also have
installed solar panels on rooftop of our warehouse and that would give us another around
one megawatt. So, that will take care of 50% of our power there. And on average roughly one
saves almost 30% of the power today as compared to what we pay. Around 30% to 40% there
will be savings on unit we will consume through the solar power generation.
Neeraj Jamodia:
Got it. So, probably a situation could be that, even though we are at 100% utilization our
absolute cost basis our power cost won't move up from the 60, 65 crores range. Some
ballpark understanding?
Rakesh Nayyar:
Maybe, I'll have to do my calculations on that basis which I haven't done it so I really can't tell
you at this moment.
Moderator:
Thank you. The next question is from the line of 5ailesh Raja from B&K Securities. Please go
ahead.
Sailesh Raja:
Sir, my question is related to the investments that we are doing in Haryana. So, could you
please talk about the revenue potential of all the products put together if we take prevailing
realization and also what is the payback period we are expecting from this 800 crores
investment?
Rakesh Nayyar:
Once all the projects are implemented and the full capacity they would generate at current
prices, the revenue close to 1900 odd crores. And once the investments are made and the
plants are operational, we assume that our simple payback should be in less than five years.
Sailesh Raja:
Okay. So, usually our payback it won't be more than three, four years, right?
Rakesh Nayyar:
I'm telling you less than five years, I really can't tell you whether three or four, but we
estimate it will be less than five years for us.
Sailesh Raja:
Okay. Sir, again in Haryana project, we have given separate number for EPS and EPS 3D
panels. So, for the 1 million square meter, how much quantity of EPS is recovered, the entire
EPS capacity like 50K that we are creating in Haryana that will go for 3D panel?
Rakesh Nayyar:
No, because what we are starting in the down streams is just to promote the usage of 3D
panel in the construction that give; jDsl!I,ation, comfortable living and which was not catching
y;;rC'?~~,~, ',:;;; ~-:?~!
,
I
4
on in India. So, we have decided that we will go downstream at that location, because there
are extreme weather conditions in North, we are talking about 1 million square meters of 3D
panels there. Which on a three shift basis this will be bigger capacity, but then we are not in
the downstream business. To promote the application or the particular use we are entering
into it now. The consumption in this is very small for this one million square meter of 3D panel
the consumption could be around 1500 tonnes only of EP5.
Sailesh Raja:
Okay. So, where it is exactly used sir what is the penetration in the industry in terms of, if you
could just talk about the current opportunity sir?
Rakesh Nayyar:
EP5 panels are like you have a wall made of EPS. It is jacketed with an iron mesh and then it is
sprayed with the concrete and it becomes as solid as a concrete wall and you can work on it
and plus they are lightweight, you get insulation, it is termite free also, and because they are
light weight they are kind of also the seismic resistant.
Sailesh Raja:
So, along with iron mesh we will be supplying?
Rakesh Nayyar:
Sorry?
Sailesh Raja:
Along with iron mesh we will be supplying this product or how it is?
Rakesh Nayyar:
Yes, will be sourcing the wire and then that machine will make the mesh and the jacket the
whole block ofthe EPS which will be a wall essentially like a prefabricated wall.
Sailesh Raja:
In current facilities we don't have this 3D panel capacity?
Rakesh Nayyar:
We don't, but then globally this is used in a big way and in India some people have started but
their quality was not good, so has not been very successful though a housing colony has been
made using this material by one of the industrial houses for their workers and staff. So, we
want to promote this application that is why we are implementing it up North, keeping the
weather conditions there in mind this will be very ideal product there.
Sailesh Raja:
So, what is the potential revenue if we do 1 million square meters?
Rakesh Nayyar:
For the quantity what we have mentioned, this will be about 100 odd crores only.
Sailesh Raja:
Okay. What about the spread sir?
Rakesh Nayyar:
Sailesh Raja:
Okay. Sir can you please talk about this PS, engineering plastic product and where exactly it is
used. What is the future business potential could you please talk about that?
Rakesh Nayyar:
What we have talked about the engineering plastics and PS which is, engineering plastics are
all ABS, PC or PMMA. So, these sheets replace glass, particularly in the internal partitions not
the external wall glass because of the sunlight, but then internally wherever the glass is used
they replace that, you can use in the cabinets, kitchen cabinets, bathrooms, signage, display
shelves. So, this is to replace that.
Sailesh Raja:
Similar like SMMA product?
Rakesh Nayyar:
It is not similar to that, SMMA was a polymer only but it is actually processing from the
engineering plastics will be converting them into sheeting, which will be used like a glass only
inside the house, in a office you have internal partitions where a lot of glass is used. So, the
advantage of this is when a glass breaks it can hurt you because small, small pieces come out
but in this case that kind of a damage is not there, plus they are little lightweight.
Sailesh Raja:
Okay. So, is there any competition here sir in this product particularly?
Rakesh Nayyar:
There are currently some small manufacturers out there in central India and in North India
also there is one small manufacturer is there, but they are typically doing only the polystyrene
but we are looking at other engineering plastics also.
Sailesh Raja:
Okay. How fast we can fill this capacity 12000 tonnes?
Rakesh Nayyar:
Over a period of time, and there is an export potential also for this.
Sailesh Raja:
Okay. Sir the phase two capacity addition in EPS and XPS, so that will be completed by this
June sir?
Rakesh Nayyar:
No EPS is being done, that will be completed by December of this year. XPS is taking time,
because there are some changes we are making in the product itself in terms of the sizing etc.
and all the equipments are being re-Iooked at, and that will take little time.
Sailesh Raja:
Okay. Any exports opportunity XPS, in the long term?
Rakesh Nayyar:
XPS export opportunity is only in the neighboring countries possible but not other places
because it's a lightweight product, the freight cost itself will be very high.
Moderator:
Thank you. The next question is from the line of Aditya Khetan from SMIFS Institutional
6
Equities. Please go ahead.
~~E ;!-;
.. ~~;;'~:
)
~".0..
.::\~~
,"
. .; ~-; ":70
*
~.,
.
'{{LIMB \
Aditya Khetan:
Sir, my first question was onto the volume side, this quarter we had witnessed almost a 13%
drop in volume. So, on quarter-on-quarter basis, I believe the festive demand was good and
there was no big reason so we could portray such a big dip in volume sequentially. Is there
anyone off like or what is the big reason like for this volume drop?
Rakesh Nayyar:
The festive season is over by the third week of October itself by when the supplies are already
made to the processors. And November and December are the lean months always. If you
look at the year-on-year, last year also in this quarter, we have sold similar quantities only,
because after the festive season is over the demand always goes down. And particularly also
the OEMs generally shut down or they also slow down and their inventory building only starts
from January onwards. So it's not really comparable on a Q-on-Q basis, but on a year-on-year
basis, the volumes are all in-line.
Aditya Khetan:
Okay. So, this volume drop is majorly because so from the polystyrene side or EPS side?
Rakesh Nayyar:
So, all the products because the OEMs use both. And it is not only the OEMs even the other,
the packaging industry or household industry. So, generally these two months are always lean
after the festival. If festival is early in October, middle then the full quarter itself would be a
lean period because after the Diwali is over the sales are always lower.
Aditya Khetan:
Got it. Sir onto the polystyrene spreads. So, when we were looking at some of the numbers,
this quarter spreads were good and that is also reflected in your numbers also and despite to
these different volumes, you had maintained your gross price per kilo on quarter-on-quarter
basis. But sir when we look on a nine monthly basis, the numbers are quite bad like we are
standing at Rs.24, Rs.2S per kilo gross spread, which is almost a 30% decline on Y-o-Y basis.
So, we are standing at a near bottom in terms of spreads and all and despite like increasing
imports from China and from the domestic side, still we can maintain these numbers, cross
spreads and EBITDA spreads?
Rakesh Nayyar:
In the last call also I mentioned the current financial year the deltas as compared to the
previous year are low, they have reduced by almost $30 to $40 deltas globally and the delta
which are there they actually should go up now. If I look at the pre COVID levels also, these
deltas are on the lower end of those times.
Aditya Khetan:
Okay. So, we should not see like further like so, despite increase in competition. So, we should
be able to maintain at least this spread and there is also a chance to improve?
Rakesh Nayyar:
Yes, these deltas are maintainable and when the demand grows the delta will also improve.
7
Aditya Khetan:
Got it. Sir, if possible if you can share some of the capacity utilization figures. So, for
polystyrene and EPS till nine monthly sir what is the utilization which we are running, our
polystyrene and EPS plant?
Rakesh Nayyar:
Both our polystyrene, EPS, the SPC all are around 70% at the moment.
Aditya Khetan:
And sir, we were also looking to expand this SPC capacity by 25,000 tonne so by this fiscal
end, so that is on track?
Rakesh Nayyar:
Some of it is on track we had said it will be expanded in stages and some of that we shall be
using for the ABS purposes and it will come later once the ABS is online and then they will be
put up.
Aditya Khetan:
Got it. Sir one last question, we are witnessing that the competition in India has gone up as
compared to last year. So, the companies like INEOS also are expanding and there has been
also a big competitor which plant was shut down in 2020 they've also got some approvals to
start the plant into a newer side. So, do you think so, all these things as a risk in the near term
and if these capacities come up, so we should be able to like maintain our market share?
Rakesh Nayyar:
The approval as per my understanding of the news item which you are referring to with
regard to the new site of the unit which shut down in 2020 is not for polystyrene, that is for
engineering plastic as a compounding and all that of engineering plastic.
Aditya Khetan:
So, that will not affect?
Rakesh Nayyar:
No, that won't affect. And as far as the expansion by the other player is concerned, there is
scope and there is enough room for everybody because considering given a 5% growth in the
demand, by the end of the decade, the Indian polystyrene demand should be around 450,000
tonnes. So, some quantity we will continue to export and considering their expansion
considering our expansion there is enough scope for both of us.
Moderator:
Thank you. The next question is from the line of Rohit Ohri from Progressive Shares. Please go
ahead.
Rohit Ohri:
Hi, sir two or three questions. The first one if you can share the rationale for setting up this
property in North India in Haryana.
If you can share that since we have around 337 acres of
land in Nagothane and around 14, 15 acres in Chennai?
Rakesh Nayyar:
See, North is a big market, almost 40% of the volumes of PS and EPS for these products is in
the Northern India. And, secondly in future the styrene monomer plant of Indian Oil
Corporation is also coming up near Panipat. So, considering the raw material sourcing
8
availability and likely market growth North, we thought that there should be another growth
center for us. One we have in South, one we have in West and we should be now in North. So,
this is the rationale for our moving to North now.
Rohit Ohri:
Sir this would probably be the first kind of a plant which we will have for styrene monomer
with IOC comes up by 26, 27. So my question was, that what percentage of imports are there
for Supreme Petrochem as of now, maybe from the different geographies Dubai, Turkey,
Korea, Japan?
Rakesh Nayyar:
The styrene monomer is not produced in India at all. So 100% of styrene which we use is
coming from overseas only. 100% of styrene is imported into India. See the first plant of
styrene which is coming up is of IOC which you rightly said is likely to be commissioned by
March 27, maybe if not March 27 by end of calendar 27. So, the styrene availability is one
issue, the growth of market up North. And also like we are talking of XPS there or 3D both
because of the extreme weather conditions. There they are a good market and carting that
from West to that part of the country freight cost itself makes it expensive for others, so all
those rationales are there for us to think of setting up a growth center up North.
Rohit Ohri:
Okay. Sir my next question is related to if you can share the approximate inventory losses,
maybe for the quarter or maybe the nine months gone by?
Rakesh Nayyar:
For the quarter we have no inventory losses.
Rohit Ohri:
Okay. So going forward you anticipate that there will be inventory gains maybe in the next
quarter or up in quarter?
Rakesh Nayyar:
No, we had said that in the beginning itself, that the styrene prices were range bound. And we
expect that they should continue to be that unless there is some big upheaval in the Gulf and
something else happens in the external environment globally. We don't see the prices to be
moving very sharply up or down.
Rohit Ohri:
Sir but with these issues that are related to the Red Sea, and the shipping cost or the freight
costs going up, do you think that there should be some sort of an' uptick which might come in
the selling prices for Supreme Petrochem?
Rakesh Nayyar:
We have mentioned in our presentation also that the Red Sea issue has caused some issues
with our exports because the freight rates for exports to Europe, Turkey, North America are
going up, which is slowing down exports there for us now.
9
Rohit Ohri:
But the prices, the selling prices do you expect that they should start picking up, because last
time, I know it's not comparable with the COVID scenario. But similar kind of a scene was
there in that situation.
Rakesh Nayyar:
No, right now the freight rates will go up, but then the time which will take will be also very
high, the containers availability will reduce, the shipping availability, shipping space
availability will reduce because the cycle is now longer. And then the consumers in Europe or
in Turkey or in USA, they should be willing to pay the extra freight, which I don't know how it
will shape, but as of now our exports they have got affected in the last quarter because of this
reason.
Rohit Ohri:
Okay. So our last question is, so we are having somewhere around 800 odd crore of cash. And
when these will be put to utilization maybe in the next two, three years, what sort of internal
targets or what sort of approximate ROC are you looking at, for the next three years or maybe
four years down the line?
Rakesh Nayyar:
ROCE, we aim that we should be upwards of 20% that is what our aim is.
Moderator:
Thank you. The next question is from the line of Neeraj Jamodia from Annual Research. Please
go ahead.
Neeraj Jamodia:
Sir, can you just walk us through the time line for commissioning for ABS line. So, when is that
getting commissioned?
Rakesh Nayyar:
That should be ready by the end of this calendar.
Neeraj Jamodia:
Okay. And sir how the procedure of customer approval works here, because ABS being a mass
market and there are very niche segments within the ABS like medical devices or somebody
was talking about through various news articles that even on the EV side there's a significant
opportunity as the weight of the battery needs to be reduced and where polymers like ABS
could come handy. So, how we are moving towards our ABS line?
Rakesh Nayyar:
We shall be starting our seed marketing of the mass ABS shortly. There is BIS applicable to the
ABS now in India. So we have already approached the BIS and we hope by the end of the
quarter we should have the BIS approvals and that is when we will be starting our seed
marketing of the product and that will help us one, test the market for this and help us also in
seeking our customer approvals once we are ready with our product.
Neeraj Jamodia:
Right. And sir like how we have moved in terms of polystyrene in terms of developing those
higher grades. Similar would be followed here also because there's a difference in the
production process of the traditional ABS as well as the mass ABS so does our ABS also find 10 r . ,: , . r: .,,~ (~,-,,,' ';e'",
, '/;;',
ij·,~~ .... : ~:<~\ ~~)
replication in all those areas where the conventional ABS is used or our would be more of a
particular demand segment which we will be targeting on?
Rakesh Nayyar:
About 95% of all the users or applications where the conventional ABS is used, the mass ABS
can be used in those applications. It's only because ours will be a mass ABS, so you can't really
customize if you want smaller lot of sales, somebody wants very small quantity of a super,
super high impact where because they do compounding they can add some more HRG there
to give that kind of an impact. So-for that we will have to do the compounding at the second
stage for us and so that 5% what our mass ABS will not directly meet with compounding we
can also take care of that 5%. So, we will be able to meet all 100% of applications.
Neeraj Jamodia:
Got it sir. Sir second question is on our master batches. So, is it possible to share that out of
our total manufactured sales, what could be the proportion of the master batches?
Rakesh Nayyar:
The total, I can only tell you that of the total revenue of manufactured products, our master
batch compounds, they are around 9%.
Neeraj Jamodia:
Okay. And sir if you can just help us understand more on this like, where were we before four,
five years in terms of the master batches and where we are in terms of the value addition
which has happened, because it's very scattered market and there are a lot of niche
applications also here. So, in terms of let's say our nearest competitor, to whom we compete
on how much of the product profile we are able to match in terms of the demand servicing?
Rakesh Nayyar:
It's not that, see the market is very big. So, there is no immediate or a nearest competitor for
this, everybody has their own customers and the kind of niche one creates or the grades and
recipes one develops. And last presentation also I said that we are moving more and more
towards the compounds business. And we are considering that we should move up the value
chain and like there are filler master batches, which we stopped doing many years back and
we don't produce it ourselves anymore now. Similarly, even in other master batches also we
are trying to move up the value chain and compounds.
Neeraj Jamodia:
Correct. Sir any idea about the size of the master batch market in India, value wise or let say
volume wise?
Rakesh Nayyar:
We have no idea about, it's a very fragmented market actually.
Neeraj Jamodia:
Yes, correct so that's why I just.
Rakesh Nayyar:
Very fragmented market and large players are only two or three which are there. There are
many, many small players in this business.
11
Moderator:
Thank you. The next question is from the line of Aditya Khetan from SMIFS Institutional
Equities. Please go ahead.
Aditya Khetan:
Sir my question was on to the export side. Sir last two to three quarters we had witnessed so
good exports momentum across 16% of our total volumes versus the earlier range of 7% to
8%. So, this quarter also like so, despite your slowing volumes and also despite of 15% to 16%.
Rakesh Nayyar:
Your voice cracked Aditya can you repeat your question please?
Aditya Khetan:
Sir, my question was onto the export side. So, for the last two to three quarters we had
witnessed a good export momentum. So now with this recent issue of the Red Sea and also
the export demand is coming down. So are we witnessing this run rate to like go down from
this level?
Rakesh Nayyar:
See, last quarter there was a setback, some small setback we had in terms of the freight cost
and all that in the month of December. And it continues currently in January also. So we are
exporting more in the Asian market or the Gulf market where we don't have to cross the Red
Sea, but then the volume wise there is a possibility that in this quarter we will be exporting
less quantities as compared to the previous three quarters. But, I presume that once the Red
Sea issue is settled, then as and when it is settled, we should be able to go back to the same
levels what we are doing and what we have done in the last three quarters.
Aditya Khetan:
Okay. And sir also on to the volume guidance like we had given a guidance of almost around
13% to 14%. So, despite like slowing volume momentum we are maintaining that for full fiscal
FY24?
Rakesh Nayyar:
Yes, I had said that we would be exporting a total volume of around 50,000 tonnes this year.
And as of now, it looks like we would be nearing that because of this slowdown we may be
closer to 45,000 or so, we should we still be able to do it. But I don't know how things shape
up in the next two months. But then based on the numbers we have and the orders we have I
presume that we should be able to do close to 45,000 tonnes this year.
Aditya Khetan:
Okay. And the overall volume guidance also sir: So that should also be impact?
Rakesh Nayyar:
We should be doing almost 10% to 12% over the last year.
Aditya Khetan:
Okay. And just one last question, sir onto the EP5 side you had mentioned that the capacity
expansion has been completed or is it still going on the phase two?
Rakesh Nayyar:
No, phase two is still going on and I said by the end of this calendar we hope to complete that. ,~
Moderator:
Thank you. Ladies and gentlemen, that was the last question. I now hand the conference over
to the management for their closing comments.
Rakesh Nayyar:
Thank you very much gentlemen for attending this cali for us. Thank you.
Moderator:
Thank you members of the management team. Ladies and gentlemen on behalf of Supreme
Petrochem Limited, that concludes this conference call. Thank you all for joining us. You may
now disconnect your lines.
13