GHCL Ltd

NSE:GHCL

Ladies and gentlemen, good day, and welcome to the GHCL's Q4 FY '25 Earnings Conference Call hosted by Emkay Global Financial Services Limited. [Operator Instructions] Please note that this conference is being recorded.

I now hand the conference over to Mr. Meet Vora from Emkay Global Financial Services Limited. Thank you. And over to you, sir.

Thank you. Good evening, everyone. Thank you for joining us on GHCL's Q4 FY '25 Results Conference Call. I would like to welcome the management and thank them for giving us this opportunity to host them. We have with us today Mr. R. S. Jalan, Managing Director; Mr. Raman Chopra, CFO and Executive Director of Finance; Mr. Manu Jain, General Manager, Investor Relations and Finance.

Before we begin this call, I would like to point out that some statements made in this call may be forward-looking, and a disclaimer to this effect has been included in the earnings presentation shared with you earlier.

I shall now hand over the call to the management for their opening remarks. Thank you. And over to you, sir.

Thank you, Meet. Thank you very much. Welcome to GHCL's earning conference call for the fourth quarter and year ended 31st March, 2025. Our results and investors presentation had been uploaded on the stock exchanges. Joining me today are Raman, ED, CFO, and Manu from Investor Relations.

We witnessed a strong operational performance amidst a challenging and evolving external landscape. At GHCL, our philosophy continues to be anchored on driving excellence across the value chain, right from procurement and production to marketing and distribution.

Our production volume during the quarter were largely in line with the previous quarter, supported by slightly better sales volume. Our continued focus on efficiency and cost optimization yielded meaningful savings during FY '25, enabling us to deliver better margin over FY '24 despite pricing pressure caused by increased imports. These efforts have translated into a resilient financial outcome.

Let me now offer a brief overview of the market environment. On the global front, Western economies continues to grapple with weak demand for soda ash, primarily due to subdued consumer spending and muted business confidence. In contrast, China witnessed robust demand growth of 10% in FY '23 -- I would say calendar year '23 and 18% during calendar year 2024. This strong momentum, however, has now began to moderate. The global macro setup has been marked by rising uncertainty and volatility, influenced by recent imposition of tariffs by the United States. These events have had broader implications on global trade dynamics, economic activities and market sentiments.

In contrast, Indian soda ash market remained relatively strong and registered around 5% growth during FY '25 over the previous year. However, owing to the subdued demand in Western economy, India witnessed higher influx of lower price imports, leading to softer price realization compared to the previous quarter.

While the near-term outlook remains sensitive to global development, we believe that structural tailwinds are in place to support domestic demand over the medium to long term. Specifically, the imposition of duty on imported solar glass will promote local manufacturing along with government increasing focus on renewable energy. These sectors are likely to fuel incremental demand for soda ash in India.

Amidst this dynamic backdrop, GHCL remained focused on its core strength to ensure optimum outcome. We are confident that our strong fundamentals and disciplined execution places us in a solid position to benefit if macro economic conditions improve.

With respect to our growth plan, execution remains on track. Our greenfield soda ash project and the new salt field project in Gujarat represents long-term strategic investments and that will deliver significant operational and financial gain over the next 3 years.

Commissioning of our vacuum salt and bromine project remain scheduled for FY '26. We expect these projects to begin contributing to our growth from FY '26, while enhancing our product portfolio and competitive positioning. These initiatives have been thoughtfully designed to reinforce GHCL's performance across market cycles and to establish a long-term growth trajectory. We are very bullish on what we are doing. We are setting up projects which will give us benefits in medium to long term. We have achieved significant operational efficiencies in FY '25.

While challenging time is transitionary, these actions will be permanent. We remain committed to creating suitable value for all our stakeholders through strategic foresight and consistent execution. Thank you for your continued trust and support in GHCL.

I'll now hand over the call to Raman to walk through the financial highlights.

Thank you, sir. Good evening, everyone, and a warm welcome to our earning call for the fourth quarter and year ended 31st March, 2025. We reported strong results on the back of operating excellence, innovation and cost control measures. This has resulted in better margins and higher profitability.

GHCL has very consistently delivered on performance parameters. As I share financial highlights with you, I wish you to bring in certain insights into how we maintain this momentum.

Revenue for the quarter came in at INR 807 crores as compared to INR 840 crores in the corresponding quarter of the last year, at INR 807 crores compared to Q3 of this year. The operating revenue was affected by global scenario and cheaper imports into India, putting pressure on our realizations. As we progress into FY '26, we'll see contribution coming from our vacuum salt and bromine initiatives, which truly is a testament to how we have leveraged low incremental CapEx to create a positive value addition delta.

EBITDA for the quarter stood at INR 244 crore compared to INR 201 crore in Q4 of last year and INR 259 crore in Q3 of this year. EBITDA margin came in at strong 30.2% compared to 23.8% in Q4 FY '24. For the full year, EBITDA came in at INR 966 crores, which is an increase of 7% year-on-year.

Our margins remained resilient due to higher production, operational efficiencies and innovation resulting in reduction in input costs. I'll highlight here that it is by design that we are able to focus on profitability through adverse and normal cycles alike due to prudent approach to business and operations management.

PAT from the -- PAT from for the quarter increased to INR 152 crore from INR 125 crore in the corresponding quarter of last year and INR 168 crore in Q3 of this year. For full year, our PAT came in at INR 626 crores, which is an increase of 9% over last year.

Also for the full year, we generated INR 725 crore in cash profit after tax. Out of this, we spent INR 311 crores on growth CapEx, INR 114 crores on dividends to shareholders and INR 101 crores on repayment of loans, while the working capital increase and others were a nominal INR 17 crores, resulting in a net cash generation of INR 182 crores.

We have a strong balance sheet with cash and investment of INR 1,080 crores as at the year end. This is a strength that we have always maintained and forms the basis behind our execution on CapEx and operational excellence. The business runs on a lean working capital cycle, and together with proactive management of liquidity, we are able to stay financially agile. The business has an attractive headroom for growth, and I believe with our announced and planned initiative, that we are on the right path.

With this, I conclude my comments and would now request the moderator to open the forum for questions and answers. Thank you.

[Operator Instructions] The first question is from the line of Aditya Khetan from SMIFS Institutional Equities. Please proceed.

Sir, my first question is, so when we look like -- this quarter margins have been relatively better when we look on Y-o-Y basis.

Hello? Sorry to interrupt, sir. It seems like the management's line has got disconnected.

No, no, no, we are listening. No, no, we are listening.

Okay. Okay.

Yes, Aditya, go ahead.

Yes, sir. Sir, my question was, sir, we had seen that the margins have been relatively better when we look on Y-o-Y basis, and this is largely because of the lower raw material cost. Any idea, sir, you can give in terms of cycle today where we are in terms of the soda ash? And how you see demand outlook going ahead? And also with new capacities in Inner Mongolia of soda ash coming in, has that capacities being well absorbed by the market?

Yes, Aditya, there are 3 questions in what you have just asked. One is that margin is better and how do we look at that going forward. Like in my opening remarks and my CFO's opening remarks, we have said that our major strength is on the operational excellence. In spite of a very challenging year last year, we have been able to deliver the better results primarily because of the operational excellence. And that will be a kind of a situation we'll continue and this journey we'll continue.

In terms of the outlook for the market, I have already said in my opening remark things are uncertain at this point of a time. You know that geopolitical situations are uncertain at this point of a time. China demand is also -- is slowing down. And so overall, at this point of a time, in a shorter period of time, it is very difficult to say how the situation will pan out to be.

Your third question was Inner Mongolia. Inner Mongolia has been absorbed in the '24-'25 itself. The volume has been there in the last year, and that has been absorbed because of the 18% demand growth in China, which happened in '24-'25 -- in calendar year '24.

Got it. And sir, in terms of cycle -- like I believe because of the decline in prices of soda ash, I believe the cycle has been tilted downwards. Any idea, sir, like when we look in the last 10 years, when we are -- so where we are standing in terms of the cycle?

Aditya, if you look at last 10 years, 15 years of the data, I can only tell you how the situation has been happened in the last 14 years, 15 years. In that, what we have seen is that soda ash prices on an overall basis has gone up around 7% to 9% broadly, right, 7% to 9% on a CAGR basis, okay. And EBITDA per tonne has also gone up.

In terms of this situation, which is currently where are we at this point of cycle, very difficult because of geopolitical situations. And therefore, I would not like to comment on that, how -- whether on the -- what stage of the cycle we are.

But if you look at -- there are 2 things I just want to highlight again and again. See, what is our strength? See, market dynamics will keep on changing, sometimes good, sometimes situation will be different. However, our excellence or the demonstration which we have done as a management is operational excellence. And in spite of such a challenging period of last year, '24-'25, we have been able to give a better result than the '23-'24.

Got it.

With that, our journey will continue forward.

Got it. Sir, on to the bromine and salt. How is the work going on? Since we have acquired that land, are we able to get the desired quality of salt and bromine like what was required? And how are we planning to tap the customers in this space?

See, in terms of bromine, we are doing this bromine, current bromine, which is likely to be commissioned in FY '26, is on the existing salt field, and that project is going as per the schedule. Likely production, means commercial production, will start in third quarter. Vacuum salt also likely to be in the third quarter, and that is also happening on the current plant what we have.

So these are the 2 investments which are under implementation, and that will get -- the benefits will start coming in FY '26.

Got it. Sir, just one follow-up on this. Sir, recently in 2025, some new salt players have also entered the market. How you see the competitive intensity going ahead? So we have also done -- we have also outlined a INR 350 crore CapEx into the Zara Zumara plant. How do you see competitive intensity? Once our plant production also starts to kick in, how things will behave?

See, Aditya, this Zara Zumara which you mentioned, this is a new greenfield -- new area which has been allotted to us for normal salt, which will be used for our own internal consumption on the new plant which we are setting up, including some of the volume will be coming to the current location also. And this will definitely have an advantage over what we are buying from the market because this will be our own source.

Okay. So that would be captively used. Okay.

Correct. Correct.

The next question is from the line of Madhav Marda from FII.

Just wanted to understand on a couple of areas. One was, could you give us some sense on how much new capacity of soda ash is expected to come in the next 2 years in different markets, including China, U.S., Turkey, et cetera? So if you could give us some sense there? That's my first question.

See, a couple of things, Madhav, which is happening because of this geopolitical situation and because of the demand being -- all those projects are getting now reworked and are getting delayed.

Even yesterday also, we got a feedback that in China some of the plants which were supposed to commission in next year has been kind of postponed. One of the plants, which was a Poland plant, which has also announced to be closed. So all this change -- because of the economic situation some of the change is happening. And enough capacity has been built in '23 and '24.

But still, I think if you look at globally, in spite of such a low demand, still you require roughly around 2 million tonnes of extra volume. Even if you take 2%, 2.5% of the global growth, you require 2 million tonnes of the soda ash extra every year.

Okay. Okay. So currently, you're saying even if there was a project which is very advanced in the construction, there's no new expected commissioning in the next 12 months globally?

Sorry? Madhav, can you repeat your question?

No, I'm saying if there was any project which was in very advanced stages, there is no new capacity expected to come online in the next 12 months?

I'm sorry, Madhav, I'm not being able to hear you properly.

No, I'm asking some projects might have been very advanced in their construction. Do you expect any new plant to be commissioned in the next 12 months globally, any soda ash new plants which can come in the next 12 months?

Yes, roughly around -- yes, 2 million, 3 million tonnes of the plant -- 2 million definitely will be coming if we look at across the globe.

[Indiscernible] China and others.

China will be roughly around 1.1 million tonnes and other China -- rest of the world will be around 0.9 million. So roughly around 2 million tonnes.

2 million tonnes. Okay. Got it. And then also wanted to check on your outlook for soda ash pricing in the coming year. Any sense in terms of how the pricing could trend given there has been some demand softness and I think some bit of extra exports of soda ash from markets such as U.S. into Asia? So do you expect some softening on soda ash prices in the next few quarters?

Madhav, like I said, it is very difficult at this point of a time to kind of predict what will happen. But yes, like I said, China is softer. Globally, Europe is also softer. Even U.S. demands are also not picking up. So the prices will be softer.

Okay. Got it. And the last question was on the -- there was a minimum export price which was in place in India. I think that is up for revision next month, if I'm not wrong. So any views on that? Do you expect that to be re-implemented? Or how could that policy continue?

See, Madhav, we -- definitely, the industry will apply for the extension of that, and we will definitely try that gets extended. But in a real sense, the major benefit out of that minimum support price, I don't know whether any major benefit has been accrued because of that. Industry is also trying for the ADD, anti-dumping duties. Application has been filed. The matter is under investigation. So the industry's focus will be definitely to get some government support on that.

The next question is from the line of S. Ramesh from Nirmal Bang Equities.

Congratulations on your results in such a tough environment. So when you mentioned that China had absorbed the entire capacity in Inner Mongolia, are you basing that on the full utilization of that 5 million tonnes which has been started in Mongolia? Or was it operating at just 25%, 30%, which is what we had heard last time? So what is the capacity that has been absorbed in terms of the installed capacity there?

So Ramesh, definitely, as per our understanding, they were almost fully utilized during the last year. And like I said, last year, they have a huge demand from the solar and lithium carbonate, and -- 18% demand growth on such a big number. And because of that, they have been able to absorb the entire quantity.

However, this year, '25, the demands are a little softer and maybe slightly negative could also happen because of the geopolitical situation. So that could lead to some kind of a surplus in China.

Okay. So in terms of your fourth quarter performance, it looks like you've been able to improve your gross margins. So is there any carryover of low-cost inventory? Or have you been able to get some improvement in your higher-value products? How do you explain this improvement in gross margin?

I have already said, Ramesh, in my opening remarks that operational excellence, there are a lot of innovations, a lot of, what you call, optimization of our resources, efficiency of the plant. These are the things which were the highlight of '24-'25. And because of that, we have been able to generate -- in spite of such a challenging pricing pressure, we have been able to deliver the better price. It is not because of the low-price raw material. It's primarily because of the efficiency in our system.

Okay. So in terms of your plan to expand your soda ash capacity, given the current excess capacity and the pricing pressure, you don't have any second thoughts in terms of the timeline? You may still go ahead. Is there any thoughts in terms of possibly staggering there in terms of execution? Or would you stick to the current timeline and allocate capital for that?

See, Ramesh, like I said, we are very bullish on what we are doing. We are really bullish on what we are doing and the way we are doing, okay? Our ability to have the best capital investment or the lowest capital investment per tonne of soda ash, our operational excellence, and these are the things which are permanent in nature.

The market dynamics will be slightly up and down, and this will be transitionary. And therefore, our understanding is these projects are all long-term projects. We are talking about 100 years of -- these projects get set up -- or the life cycle of these projects are 100 years.

I think in terms of the overall plan for the company, we would like to be proud of what we are doing in terms of operational excellence or the way we are spending the capital. On the second side, we are also allocating the capital on the area, like I said, bromine, vacuum salt. Those allocations are also being done to kind of optimize on that area also. So we will continue to kind of focus on our investments.

Okay. On the Indian demand, if you look at the end-use segments, automobiles are facing a slowdown. So do you see that reducing the pace of growth in soda ash demand this year? How do you read the different segments of growth in India for soda ash?

See Ramesh, I'm looking at the other way around. If you look at the solar glass, we are seeing the solar glass there is a huge demand which is likely to happen in '25-'26, and major benefit will be coming in '26-'27, okay?

A lot of new -- you know that in the solar government has given the ADD advantage, the duty of 10% has been re-imposed, and a lot of new investments are getting -- Borosil is investing, Visaka is investing, Reliance is investing. And there is a likely significant demand of -- is coming. And frankly speaking, this -- even if you look at like your normal glass, normal glass also are doing good in India. Even detergent is also -- there's 3% to 4% of the growth in detergent because of the rural population's growth or the urbanization which is happening.

So my sense is -- 15 years, 20 years if you look at the growth of -- 5% was a very normal growth. So we are looking at growth more than this 5% going forward.

The next question is from the line of Nasir Hussain from Fintrek Research Advisors Private Limited.

I just wanted to know what are the volumes that we have sold for FY '25?

See Nasir, in terms of the volume, I have already said in my opening remarks that the volume was in line with what was the last quarter. And if you look at as compared to the last year also, our numbers was in line with the -- slightly better than the last year.

Could you just give a number figure, sir, if possible?

Nasir, number we specifically don't talk. I can only give you the sense of what -- the number growth. In the FY '24 versus '25, our growth in the volume is around 9%.

Yes, that will help. And in terms of capacity utilization, we should be above 95%. Is that right...

Yes.

On an annual basis?

Yes, yes.

Just another question. So our expansion into -- sorry, our commissioning of vacuum salt as well as bromine, are they on schedule? Or is there going to be any delay? Could you throw some light on that?

That -- as I've just said that it is likely to be in the third quarter of '25-'26, and they're going as per the schedule.

Both of them, vacuum salt as well as bromine?

Yes. Yes, yes, as per...

Okay.

Both of them.

The next question is from the line of Akshay Kothari from Envision Capital.

Sir, could you attribute the reasons why our CapEx per tonne is one of the highest? I understand it's a greenfield capacity. So just wanted to understand, would there be more scope of expansion above 11 lakh tonnes in the same plant?

Yes, Akshay, our ultimate vision of that location is 2 million tonnes.

Okay. Okay. And sir, can you...

[Indiscernible] demand.

Sorry?

I said that growth of that going up to 2 million will be gradual. It will happen depending upon how the demand takes place. Gradually, we will do it.

Okay. And 4,500 would be spent for first 5,50,000 and then 2,000 additional for the next 5,50,000. Is that right?

The total number...

It's around INR 6,800 crores.

INR 6,800 crores. And out of that, roughly around as you rightly...

4,200...

INR 4,200 crores in the first phase and the balance will be the second round.

Okay. And sir, can you just give a brief about how much is the U.S. overcapacity at this point of time? If you have any numbers, it would be great.

See, U.S. capacity is always -- or U.S. production always largely depends on the export, because they are consuming only around 40%. 40% of their production they are consuming themselves, and the balance 60%, they are exporting. And their major market is primarily Southeast Asia, Middle East and South America and things like that. India -- also they export some quantity to India as well.

So at this point of time, in terms of the overcapacity, I would say that I will not be able to call that as an overcapacity, that they continue to sell this product, and depending upon various markets, they keep on kind of doing the export to those markets.

So is it because the Chinese capacity has come online? So China is importing less from U.S. Is it like that?

China has not been importing anything from U.S. in the historically, except in the FY '24. Some volume had gone to China, which had got -- now not likely to go this year.

[Operator Instructions] The next question is from the line of Saket Kapoor from Kapoor & Co.

Sir, firstly, when we look at our P&L line item other expenses, we find a sequential increase from INR 127 crores to INR 140 crores. So what explains this 10% Q-on-Q increase?

Saket, there are 2 part of it. One part is that because if the volume goes up, proportionately many costs goes up. And the second is that some of the -- quarter-on-quarter what happens is some of the cost gets provided in the last quarter, and that is the -- if you look at on a year as a whole, you will find that our costs are similar to last year.

Raman will brief you.

Saket, if we look at -- like Mr. Jalan said, for the year as a whole, our costs are higher by INR 13 crores, INR 14 crores. That is purely relating to volume increase and some CSR, a couple of crores. So that is that, nothing beyond that.

On a quarter-on-quarter basis, year-end provision that we have to do. And 2 areas where the cost is slightly higher, one is insurance and one is ForEx. Because last quarter, there was some refund of around INR 3 crores in insurance. So that impact is there, which is not there this year -- this quarter.

Last quarter, there was a ForEx gain of around INR 2 crores. This quarter, there is a dent of around INR 2 crores. So that INR 4 crore extra delta is there. So these 2 impact is around INR 7 crores, INR 8 crores. Other than that, it is normal year-end provision that are there. I hope I'm -- I've covered both year-end as well as...

Yes, Ramanji. Ramanji, INR 311 crores is the CapEx that we have done. Can you provide the breakup, [Foreign Language]?

Just a second. I'll just open that. Yes. I'll give you a brief overview. On the growth CapEx, we have spent around INR 180 crores. That covers greenfield, vacuum salt, bromine and Zara Zumara. And then on the existing plant, the remaining figure has been spent, of which largely is seawater pipeline and compressor. And some expenditure has been done on salt [indiscernible].

Okay. And Jalanji, you mentioned that the benefits for MIP has not been accrued, I think some statement on that. So can you please elaborate how have MIP helped the industry as a whole and company also? And also how are the imports been for this quarter and for the year?

See, overall -- MIP, I just said, the benchmark price which has been set up there, that is -- okay, one advantage definitely we got is that it has become a floor price. However, the prices overall is slightly better than the MIP price, okay? That is number one.

In terms of the import, overall this year, it's slightly lower than the last year. I think roughly around 30,000, 40,000 tonnes is lower than the last year.

Okay. 30,000, 40,000 tonnes. But taking into account the scenario which you are currently penciling in, in terms of the lower demand outlook for the current financial year, do you think that the pressure will again be reemerging going ahead in terms of more imports? I think some capacity in U.S. is also expected, around 5 million tonnes, to be commissioned next year in the natural soda ash. So what should be your understanding?

I don't think 5 million tonnes capacity is getting add up next year. It will take another 3, 4 years of time. And the second is that in terms of the outlook going forward -- see, please understand on one side, there will be a demand growth also in India. Even if you take the number of 5%, we require 200,000 tonnes of extra volume.

Right. So that is [indiscernible]...

So obviously, we will have all those kind of a competitive advantage to kind of taper down on the import. Let's see how the situation pans out, but our efforts will always be to kind of not lose any volumes.

Okay. Two concluding remarks, sir. You mentioned that from Q3 onwards, our both the growth projects of vacuum salt and bromine will come. Then for the first half, we are almost flat in terms of any incremental volume benefit because everything is now flown into the system in terms of the volume. That understanding is correct, sir?

Sorry. Can you repeat it?

Sir, [Foreign Language] from Q3 only our vacuum salt and bromine projects will get commissioned, and we are running at optimum capacity utilization level. So for the first half, we do not see any volume growth. The first half looks flat in terms of we getting any volume growth.

I think so. Yes, you're right.

Okay, sir. And lastly, sir, we also made provision for some INR 50 crore for our new office. Have we anything on the same? What's the timeline we have set for that?

Yes, we are taking an office in Ahmedabad, a new office in Ahmedabad. And the work is going on that. And last year, I think we've spent INR 20 crores on that.

20 crores already we have spent?

Yes.

Right. Last point was, sir, you have always been cautious and being guiding us as per the market position is, sir. Taking into account the Chinese part of the story where they are the dominant player, sir, can we take into account that the EBITDA numbers which we have been displaying for the last 4 quarters, that we have been very consistent, that can be -- given the [ variability ], that can be a base on it? Or we can -- there is also a chance of the same declining? I think so given the current price scenario, what should investors be penciling in going ahead, sir?

I think, Saket, I have already very clearly articulated on this, that the way the global economic situations or the geopolitical situation is there, anything predicting will be very tough at this point of time.

And I have already said that our strength lies on excellence. What we can do, we are doing the best. You have seen -- you are our investor for a long period of time. You have seen that we have demonstrated our ability of, what we call, cost optimization, efficiencies in every area, be it production, procurement, utilization, plant efficiencies, plant -- all those things. And we will continue. And that's a permanent benefit which we get.

In terms of the market outlook, it can be kind of ups and down. But definitely, this benefit which we are accruing is the ultimate value driver for any organization, and that we are continuously doing.

Congratulation to the Board for declaring 120% dividend, maintaining the dividend payout, taking into account -- looking after all your stakeholders as has been the vision been.

The next question is from the line of S. Ramesh from Nirmal Bang.

So when you refer to the demand from solar panel glass, while the potential is there, last year in the Soda Ash Conference, it was mentioned there is a lot of excess capacity for solar panels and photovoltaic cells that's already built in China. So to the extent that there could be a time lag in terms of the incremental demand for soda ash material, whether it's in India or overseas, what is the actual consumption of soda ash in solar glass that you can share with us in FY '26 and '27 for additional glass manufacturing for solar panels, if I may ask?

See Ramesh, if I can say at this point of time, currently, the plant which is already running, there is around 11,000 tonnes of the soda ash demand per month, okay? And that will likely to be doubled in '26-'27. That means we are talking almost around 1.23 lakh tonnes of extra volume coming in '26-'27. Because the plant which has already been announced by the various stakeholders in India, that extra demand of 1.23 lakh tonnes will be coming in '26-'27.

Some of that, maybe 50%, will be coming this year, '25-'26, and the balance will be coming in '26-'27.

Okay. And in terms of capacity rationalization and your own thoughts on inorganic acquisitions, do you see a lot of -- or do you have any line of sight in terms of any soda ash capacity closing down globally? And are you looking at acquisitions based on your current cash flows and internal generation?

See Ramesh, in terms of -- in Poland, there is a plant of 6 lakh tonnes which has already been announced to close, okay? And like I said, some of the plants which was likely to be commissioned or which were under the planning, including the U.S., are all getting postponed.

So therefore -- of course, we have not heard any other plant to be closed. But I have also said the Chinese prices, which at this point of a time, are below the cost. So obviously, that will hit their bottom line also, and ultimately, that will lead to kind of either their lower capacity utilization or new capacity not coming in. So this balance out will happen.

And any thoughts on inorganic acquisitions?

Not, Ramesh, because we are not looking at any acquisition outside India. And I've been just told -- I don't know whether -- to what extent -- this U.K. plant, one of the competitors of ours, they have also announced to close 4 lakh tonnes -- or they have already closed this plant.

Ladies and gentlemen, I take that as the last question. I would now hand the conference over to the management for closing comments. Over to you, sir.

Thank you very much. Like I said in my opening remarks, we'll continue to our journey on excellence, and we really believe that we are doing what we are supposed to do in terms of the operational excellence. We have done a good job in '24, '25, and we'll continue this journey. Your support will definitely encourage us to do this journey going forward.

Thank all of you for your support.

On behalf of Emkay Global Financial Services Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.